HF 2337

1st Unofficial Engrossment - 87th Legislature (2011 - 2012)

Posted on 04/03/2012 09:09 a.m.

1.1A bill for an act 1.2relating to the financing of state and local government; making technical, policy, 1.3administrative, and clarifying changes to taxes on individual income, sales 1.4and uses, property, aids to local governments; modifying property tax refund 1.5payments; reducing and eliminating the state general levy; modifying various 1.6taxes and tax-related provisions; providing income tax, sales tax, and property 1.7tax exemptions; modifying tax increment financing authorities; setting the 1.8levels of the cash flow account and the budget reserve account; appropriating 1.9money;amending Minnesota Statutes 2010, sections 6.91, subdivision 2; 38.18; 1.1040A.15, subdivision 2; 69.011, subdivision 1; 69.021, subdivisions 7, 8; 88.51, 1.11subdivision 3; 103B.245, subdivision 3; 103B.251, subdivision 8; 103B.635, 1.12subdivision 2; 103B.691, subdivision 2; 103D.905, subdivisions 2, 3, 8; 1.13116J.8737, subdivisions 5, 7, 8, 9; 117.025, subdivision 7; 127A.48, subdivision 1.141; 138.053; 144F.01, subdivision 4; 162.07, subdivisions 3, 4; 163.04, 1.15subdivision 3; 163.06, subdivision 6; 165.10, subdivision 1; 272.03, by adding 1.16subdivisions; 273.032; 273.11, subdivision 1; 273.13, subdivision 21b; 273.1398, 1.17subdivisions 3, 4; 275.011, subdivision 1; 275.025, subdivisions 1, 4; 275.065, 1.18subdivisions 1, 3; 275.077, subdivision 2; 275.71, subdivision 4; 276A.01, 1.19subdivisions 10, 12, 13, 15; 287.08; 287.23, subdivision 1; 289A.20, subdivision 1.204; 289A.31, subdivision 5; 290.0677, subdivisions 1, 2; 290.0681, subdivisions 1, 1.213, 5, 10; 290A.04, subdivision 2h; 297A.61, subdivision 4; 297A.67, subdivision 1.227, by adding a subdivision; 297A.68, subdivision 5; 297A.70, by adding 1.23a subdivision; 297A.815, subdivision 3; 297G.04, subdivision 2; 353G.08, 1.24subdivision 2; 365.025, subdivision 4; 366.095, subdivision 1; 366.27; 368.01, 1.25subdivision 23; 368.47; 370.01; 373.40, subdivisions 1, 4; 375.167, subdivision 1.261; 375.18, subdivision 3; 375.555; 383B.152; 383B.245; 383B.73, subdivision 1.271; 383E.20; 383E.23; 385.31; 394.36, subdivision 1; 398A.04, subdivision 1.288; 401.05, subdivision 3; 410.32; 412.221, subdivision 2; 412.301; 428A.02, 1.29subdivision 1; 430.102, subdivision 2; 447.10; 450.19; 450.25; 458A.10; 1.30458A.31, subdivision 1; 465.04; 469.033, subdivision 6; 469.034, subdivision 2; 1.31469.053, subdivisions 4, 4a, 6; 469.107, subdivision 1; 469.174, subdivisions 1.322, 8, 10, by adding subdivisions; 469.176, subdivision 1b; 469.177, subdivision 1.331; 469.180, subdivision 2; 469.187; 469.206; 471.24; 471.571, subdivisions 1, 1.342; 471.73; 473.325, subdivision 2; 473.629; 473.661, subdivision 3; 473.667, 1.35subdivision 9; 473.671; 473.711, subdivision 2a; 473F.02, subdivisions 12, 1.3614, 15, 23; 475.521, subdivision 4; 475.53, subdivisions 1, 3, 4, 5; 475.58, 1.37subdivision 2; 475.73, subdivision 1; 477A.0124, subdivision 2; 641.23; 641.24; 1.38645.44, by adding a subdivision; Minnesota Statutes 2011 Supplement, sections 1.39116J.8737, subdivisions 1, 2; 124D.4531, subdivision 1; 126C.40, subdivision 2.11; 276.04, subdivision 2; 289A.02, subdivision 7; 290.01, subdivisions 19, 19a, 2.219b, 31; 290.091, subdivision 2; 290A.03, subdivision 15; 291.005, subdivision 2.31; 295.53, subdivision 1; 297A.68, subdivision 42; 297A.75, subdivisions 1, 2, 2.43; 297B.03; 469.1763, subdivision 2; 477A.011, subdivision 20; 477A.013, 2.5subdivision 9; 477A.03, subdivision 2a; Laws 2008, chapter 366, article 5, 2.6section 34, as amended; proposing coding for new law in Minnesota Statutes, 2.7chapter 471; repealing Minnesota Statutes 2010, sections 273.11, subdivision 1a; 2.8275.025, subdivisions 1, 2, 4; 276A.01, subdivision 11; 276A.06, subdivision 2.910; 290.0677, subdivision 1a; 290.92, subdivision 31; 473F.02, subdivision 13; 2.10473F.08, subdivision 10; 477A.011, subdivision 21; Minnesota Statutes 2011 2.11Supplement, sections 275.025, subdivision 3; 289A.60, subdivision 31. 2.12BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.13ARTICLE 1 2.14INCOME TAX 2.15    Section 1. Minnesota Statutes 2011 Supplement, section 116J.8737, subdivision 1, 2.16is amended to read: 2.17    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms 2.18have the meanings given. 2.19(b) "Qualified small business" means a business that has been certified by the 2.20commissioner under subdivision 2. 2.21(c) "Qualified investor" means an investor who has been certified by the 2.22commissioner under subdivision 3. 2.23(d) "Qualified fund" means a pooled angel investment network fund that has been 2.24certified by the commissioner under subdivision 4. 2.25(e) "Qualified investment" means a cash investment in a qualified small business 2.26of a minimum of: 2.27(1) $10,000 in a calendar year by a qualified investor; or 2.28(2) $30,000 in a calendar year by a qualified fund. 2.29A qualified investment must be made in exchange for common stock, a partnership 2.30or membership interest, preferred stock, debt with mandatory conversion to equity, or an 2.31equivalent ownership interest as determined by the commissioner. 2.32(f) "Family" means a family member within the meaning of the Internal Revenue 2.33Code, section 267(c)(4). 2.34(g) "Pass-through entity" means a corporation that for the applicable taxable year is 2.35treated as an S corporation or a general partnership, limited partnership, limited liability 2.36partnership, trust, or limited liability company and which for the applicable taxable year is 2.37not taxed as a corporation under chapter 290. 3.1(h) "Intern" means a student of an accredited institution of higher education, or a 3.2former student who has graduated in the past six months from an accredited institution 3.3of higher education, who is employed by a qualified small business in a nonpermanent 3.4position for a duration of nine months or less that provides training and experience in the 3.5primary business activity of the business. 3.6 new text begin (i) "Qualified greater Minnesota business" means a qualified small business that new text end 3.7 new text begin is also certified by the commissioner as a qualified greater Minnesota business under new text end 3.8 new text begin subdivision 2, paragraph (h). new text end 3.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 3.10    Sec. 2. Minnesota Statutes 2011 Supplement, section 116J.8737, subdivision 2, is 3.11amended to read: 3.12    Subd. 2. Certification of qualified small businesses. (a) Businesses may apply 3.13to the commissioner for certification as a qualified small business for a calendar year. 3.14 new text begin In addition, the application may request certification as a qualified greater Minnesota new text end 3.15 new text begin business under paragraph (h). new text end The application must be in the form and be made under the 3.16procedures specified by the commissioner, accompanied by an application fee of $150. 3.17Application fees are deposited in the small business investment tax credit administration 3.18account in the special revenue fund. The application for certification for 2010 must 3.19be made available on the department's Web site by August 1, 2010. Applications for 3.20subsequent years' certification must be made available on the department's Web site by 3.21November 1 of the preceding year. 3.22(b) Within 30 days of receiving an application for certification under this 3.23subdivision, the commissioner must either certify the business as satisfying the conditions 3.24required of a qualified small business new text begin or a qualified greater Minnesota business new text end , request 3.25additional information from the business, or reject the application for certification. If 3.26the commissioner requests additional information from the business, the commissioner 3.27must either certify the business or reject the application within 30 days of receiving the 3.28additional information. If the commissioner neither certifies the business nor rejects 3.29the application within 30 days of receiving the original application or within 30 days of 3.30receiving the additional information requested, whichever is later, then the application is 3.31deemed rejected, and the commissioner must refund the $150 application fee. A business 3.32that applies for certification and is rejected may reapply. 3.33(c) To receive certification new text begin as a qualified small business new text end , a business must satisfy 3.34all of the following conditions: 3.35(1) the business has its headquarters in Minnesota; 4.1(2) at least 51 percent of the business's employees are employed in Minnesota, and 4.251 percent of the business's total payroll is paid or incurred in the state; 4.3(3) the business is engaged in, or is committed to engage in, innovation in Minnesota 4.4in one of the following as its primary business activity: 4.5(i) using proprietary technology to add value to a product, process, or service in a 4.6qualified high-technology field; 4.7(ii) researching or developing a proprietary product, process, or service in a qualified 4.8high-technology field; or 4.9(iii) researching, developing, or producing a new proprietary technology for use in 4.10the fields of agriculture, tourism, forestry, mining, manufacturing, or transportation; 4.11(4) other than the activities specifically listed in clause (3), the business is not 4.12engaged in real estate development, insurance, banking, lending, lobbying, political 4.13consulting, information technology consulting, wholesale or retail trade, leisure, 4.14hospitality, transportation, construction, ethanol production from corn, or professional 4.15services provided by attorneys, accountants, business consultants, physicians, or health 4.16care consultants; 4.17(5) the business has fewer than 25 employees; 4.18(6) the business must pay its employees annual wages of at least 175 percent of the 4.19federal poverty guideline for the year for a family of four and must pay its interns annual 4.20wages of at least 175 percent of the federal minimum wage used for federally covered 4.21employers, except that this requirement must be reduced proportionately for employees 4.22and interns who work less than full-time, and does not apply to an executive, officer, or 4.23member of the board of the business, or to any employee who owns, controls, or holds 4.24power to vote more than 20 percent of the outstanding securities of the business; 4.25(7) the business has not been in operation for more than ten years; 4.26(8) the business has not previously received private equity investments of more 4.27than $4,000,000; and 4.28    (9) the business is not an entity disqualified under section 80A.50, paragraph (b), 4.29clause (3). 4.30(d) In applying the limit under paragraph (c), clause (5), the employees in all 4.31members of the unitary business, as defined in section 290.17, subdivision 4, must be 4.32included. 4.33(e) In order for a qualified investment in a business to be eligible for tax credits, the 4.34business must have applied for and received certification for the calendar year in which 4.35the investment was made prior to the date on which the qualified investment was made. 5.1(f) The commissioner must maintain a list of new text begin qualified small new text end businesses new text begin and qualified new text end 5.2 new text begin greater Minnesota businesses new text end certified under this subdivision for the calendar year and 5.3make the list accessible to the public on the department's Web site. 5.4(g) For purposes of this subdivision, the following terms have the meanings given: 5.5(1) "qualified high-technology field" includes aerospace, agricultural processing, 5.6renewable energy, energy efficiency and conservation, environmental engineering, food 5.7technology, cellulosic ethanol, information technology, materials science technology, 5.8nanotechnology, telecommunications, biotechnology, medical device products, 5.9pharmaceuticals, diagnostics, biologicals, chemistry, veterinary science, and similar 5.10fields; and 5.11(2) "proprietary technology" means the technical innovations that are unique and 5.12legally owned or licensed by a business and includes, without limitation, those innovations 5.13that are patented, patent pending, a subject of trade secrets, or copyrighted. new text begin ; and new text end 5.14 new text begin (3) "greater Minnesota" means the area of Minnesota located outside of the new text end 5.15 new text begin metropolitan area as defined in section 473.121, subdivision 2. new text end 5.16 new text begin (h) To receive certification as a qualified greater Minnesota business, a business must new text end 5.17 new text begin satisfy all of the requirements of paragraph (c) and must satisfy the following conditions: new text end 5.18 new text begin (1) the business has its headquarters in greater Minnesota; and new text end 5.19 new text begin (2) at least 51 percent of the business's employees are employed in greater Minnesota, new text end 5.20 new text begin and 51 percent of the business's total payroll is paid or incurred in greater Minnesota. new text end 5.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 5.22    Sec. 3. Minnesota Statutes 2010, section 116J.8737, subdivision 5, is amended to read: 5.23    Subd. 5. Credit allowed. (a) A qualified investor or qualified fund is eligible for a 5.24credit equal to new text begin : new text end 5.25 new text begin (1) new text end 25 percent of the qualified investment in a qualified small business new text begin ; or new text end 5.26 new text begin (2) 40 percent of the qualified investment in a qualified greater Minnesota business new text end . 5.27Investments made by a pass-through entity qualify for a credit only if the entity is a 5.28qualified fund. The commissioner must not allocate more than $11,000,000 in credits to 5.29qualified investors or qualified funds for taxable years beginning after December 31, 5.302009, and before January 1, 2011, and must not allocate more than $12,000,000 in credits 5.31per year for taxable years beginning after December 31, 2010, and before January 1, 5.322015 new text begin 2012, and must not allocate more than $14,000,000 in credits per year for taxable new text end 5.33 new text begin years beginning after December 31, 2011, and before January 1, 2015 new text end . Any portion of a 6.1taxable year's credits that is not allocated by the commissioner does not cancel and may be 6.2carried forward to subsequent taxable years until all credits have been allocated. 6.3(b) The commissioner may not allocate more than a total maximum amount in credits 6.4for a taxable year to a qualified investor for the investor's cumulative qualified investments 6.5as an individual qualified investor and as an investor in a qualified fund; for married 6.6couples filing joint returns the maximum is $250,000, and for all other filers the maximum 6.7is $125,000. The commissioner may not allocate more than a total of $1,000,000 in credits 6.8over all taxable years for qualified investments in any one qualified small business. 6.9(c) The commissioner may not allocate a credit to a qualified investor either as an 6.10individual qualified investor or as an investor in a qualified fund if the investor receives 6.11more than 50 percent of the investor's gross annual income from the qualified small 6.12business in which the qualified investment is proposed. A member of the family of an 6.13individual disqualified by this paragraph is not eligible for a credit under this section. For 6.14a married couple filing a joint return, the limitations in this paragraph apply collectively 6.15to the investor and spouse. For purposes of determining the ownership interest of an 6.16investor under this paragraph, the rules under section 267(c) and 267(e) of the Internal 6.17Revenue Code apply. 6.18(d) Applications for tax credits for 2010 must be made available on the department's 6.19Web site by September 1, 2010, and the department must begin accepting applications 6.20by September 1, 2010. Applications for subsequent years must be made available by 6.21November 1 of the preceding year. 6.22(e) Qualified investors and qualified funds must apply to the commissioner for tax 6.23credits. Tax credits must be allocated to qualified investors or qualified funds in the order 6.24that the tax credit request applications are filed with the department. The commissioner 6.25must approve or reject tax credit request applications within 15 days of receiving the 6.26application. The investment specified in the application must be made within 60 days of 6.27the allocation of the credits. If the investment is not made within 60 days, the credit 6.28allocation is canceled and available for reallocation. A qualified investor or qualified fund 6.29that fails to invest as specified in the application, within 60 days of allocation of the 6.30credits, must notify the commissioner of the failure to invest within five business days of 6.31the expiration of the 60-day investment period. 6.32(f) All tax credit request applications filed with the department on the same day must 6.33be treated as having been filed contemporaneously. If two or more qualified investors or 6.34qualified funds file tax credit request applications on the same day, and the aggregate 6.35amount of credit allocation claims exceeds the aggregate limit of credits under this section 6.36or the lesser amount of credits that remain unallocated on that day, then the credits must 7.1be allocated among the qualified investors or qualified funds who filed on that day on a 7.2pro rata basis with respect to the amounts claimed. The pro rata allocation for any one 7.3qualified investor or qualified fund is the product obtained by multiplying a fraction, 7.4the numerator of which is the amount of the credit allocation claim filed on behalf of 7.5a qualified investor and the denominator of which is the total of all credit allocation 7.6claims filed on behalf of all applicants on that day, by the amount of credits that remain 7.7unallocated on that day for the taxable year. 7.8(g) A qualified investor or qualified fund, or a qualified small business acting on their 7.9behalf, must notify the commissioner when an investment for which credits were allocated 7.10has been made, and the taxable year in which the investment was made. A qualified fund 7.11must also provide the commissioner with a statement indicating the amount invested by 7.12each investor in the qualified fund based on each investor's share of the assets of the 7.13qualified fund at the time of the qualified investment. After receiving notification that the 7.14investment was made, the commissioner must issue credit certificates for the taxable year 7.15in which the investment was made to the qualified investor or, for an investment made by 7.16a qualified fund, to each qualified investor who is an investor in the fund. The certificate 7.17must state that the credit is subject to revocation if the qualified investor or qualified 7.18fund does not hold the investment in the qualified small business for at least three years, 7.19consisting of the calendar year in which the investment was made and the two following 7.20years. The three-year holding period does not apply if: 7.21(1) the investment by the qualified investor or qualified fund becomes worthless 7.22before the end of the three-year period; 7.23(2) 80 percent or more of the assets of the qualified small business is sold before 7.24the end of the three-year period; 7.25(3) the qualified small business is sold before the end of the three-year period; or 7.26(4) the qualified small business's common stock begins trading on a public exchange 7.27before the end of the three-year period. 7.28(h) The commissioner must notify the commissioner of revenue of credit certificates 7.29issued under this section. 7.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment for new text end 7.31 new text begin taxable years beginning after December 31, 2011. new text end 7.32    Sec. 4. Minnesota Statutes 2010, section 116J.8737, subdivision 7, is amended to read: 7.33    Subd. 7. Revocation of credits. (a) If the commissioner determines that a 7.34qualified investor or qualified fund did not meet the three-year holding period required in 8.1subdivision 5, paragraph (g), any credit allocated and certified to the investor or fund is 8.2revoked and must be repaid by the investor. 8.3(b) If the commissioner determines that a business did not meet the employment 8.4and payroll requirements in subdivision 2, paragraph (c), clause (2) new text begin , or paragraph (h), new text end 8.5 new text begin clause (2), as applicable new text end , in any of the five calendar years following the year in which an 8.6investment in the business that qualified for a tax credit under this section was made, 8.7the business must repay the following percentage of the credits allowed for qualified 8.8investments in the business: 8.9 Year following the year in which Percentage of credit required 8.10 the investment was made: to be repaid: 8.11 First 100% 8.12 Second 80% 8.13 Third 60% 8.14 Fourth 40% 8.15 Fifth 20% 8.16 Sixth and later 0 8.17(c) The commissioner must notify the commissioner of revenue of every credit 8.18revoked and subject to full or partial repayment under this section. 8.19(d) For the repayment of credits allowed under this section and section 290.0692, 8.20a qualified small business, qualified investor, or investor in a qualified fund must file an 8.21amended return with the commissioner of revenue and pay any amounts required to be 8.22repaid within 30 days after becoming subject to repayment under this section. 8.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 8.24    Sec. 5. Minnesota Statutes 2010, section 116J.8737, subdivision 8, is amended to read: 8.25    Subd. 8. Data privacy. (a) Data contained in an application submitted to the 8.26commissioner under subdivision 2, 3, or 4 are nonpublic data, or private data on 8.27individuals, as defined in section 13.02, subdivision 9 or 12, except that the following 8.28data items are public: 8.29(1) the name new text begin , mailing address, telephone number, e-mail address, contact person's new text end 8.30 new text begin name, and industry type new text end of a qualified small business upon approval of the application 8.31and certification by the commissioner under subdivision 2; 8.32(2) the name of a qualified investor upon approval of the application and certification 8.33by the commissioner under subdivision 3; 8.34(3) the name of a qualified fund upon approval of the application and certification 8.35by the commissioner under subdivision 4; 9.1(4) for credit certificates issued under subdivision 5, the amount of the credit 9.2certificate issued, amount of the qualifying investment, the name of the qualifying investor 9.3or qualifying fund that received the certificate, and the name of the qualifying small 9.4business in which the qualifying investment was made; 9.5(5) for credits revoked under subdivision 7, paragraph (a), the amount revoked and 9.6the name of the qualified investor or qualified fund; and 9.7(6) for credits revoked under subdivision 7, paragraphs (b) and (c), the amount 9.8revoked and the name of the qualified small business. 9.9(b) The following data, including data classified as nonpublic or private, must be 9.10provided to the consultant for use in conducting the program evaluation under subdivision 9.1110: 9.12(1) the commissioner of employment and economic development shall provide data 9.13contained in an application for certification received from a qualified small business, 9.14qualified investor, or qualified fund, and any annual reporting information received on a 9.15qualified small business, qualified investor, or qualified fund; and 9.16(2) the commissioner of revenue shall provide data contained in any applicable tax 9.17returns of a qualified small business, qualified investor, or qualified fund. 9.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for businesses requesting certification new text end 9.19 new text begin starting on the day following final enactment. new text end 9.20    Sec. 6. Minnesota Statutes 2010, section 116J.8737, subdivision 9, is amended to read: 9.21    Subd. 9. Report to legislature. Beginning in 2011, the commissioner must 9.22annually report by March 15 to the chairs and ranking minority members of the legislative 9.23committees having jurisdiction over taxes and economic development in the senate and 9.24the house of representatives, in compliance with sections 3.195 and 3.197, on the tax 9.25credits issued under this section. The report must include: 9.26(1) the number and amount of the credits issued; 9.27(2) the recipients of the credits; 9.28(3) for each qualified small business, its location, line of business, and if it received 9.29an investment resulting in certification of tax credits; 9.30(4) the total amount of investment in each qualified small business resulting in 9.31certification of tax credits; 9.32(5) for each qualified small business that received investments resulting in tax 9.33credits, the total amount of additional investment that did not qualify for the tax credit; 9.34(6) the number and amount of credits revoked under subdivision 7; 10.1(7) the number and amount of credits that are no longer subject to the three-year 10.2holding period because of the exceptions under subdivision 5, paragraph (g), clauses 10.3(1) to (4); and 10.4(8) new text begin the number of qualified small businesses that are women- or minority-owned; and new text end 10.5 new text begin (9) new text end any other information relevant to evaluating the effect of these credits. 10.6    Sec. 7. Minnesota Statutes 2011 Supplement, section 289A.02, subdivision 7, is 10.7amended to read: 10.8    Subd. 7. Internal Revenue Code. Unless specifically defined otherwise, "Internal 10.9Revenue Code" means the Internal Revenue Code of 1986, as amended through April 14, 10.102011 new text begin February 14, 2012 new text end . 10.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 10.12    Sec. 8. Minnesota Statutes 2010, section 289A.31, subdivision 5, is amended to read: 10.13    Subd. 5. Withholding tax, withholding from payments to out-of-state 10.14contractors, and withholding by partnerships and small business corporations. (a) 10.15Except as provided in paragraph (b), an employer or person withholding tax under section 10.16290.92 or 290.923, subdivision 2, who fails to pay to or deposit with the commissioner a 10.17sum or sums required by those sections to be deducted, withheld, and paid, is personally 10.18and individually liable to the state for the sum or sums, and added penalties and interest, 10.19and is not liable to another person for that payment or payments. The sum or sums 10.20deducted and withheld under section 290.92, subdivision 2a or 3, or 290.923, subdivision 10.212 , must be held as a special fund in trust for the state of Minnesota. 10.22(b) If the employer or person withholding tax under section 290.92 or 290.923, 10.23subdivision 2 , fails to deduct and withhold the tax in violation of those sections, and later 10.24the taxes against which the tax may be credited are paid, the tax required to be deducted 10.25and withheld will not be collected from the employer. This does not, however, relieve the 10.26employer from liability for any penalties and interest otherwise applicable for failure to 10.27deduct and withhold. This paragraph does not apply to an employer subject to paragraph 10.28(g), or to a contractor required to withhold under section 290.92, subdivision 31. 10.29(c) Liability for payment of withholding taxes includes a responsible person or entity 10.30described in the personal liability provisions of section 270C.56. 10.31(d) Liability for payment of withholding taxes includes a third-party lender or surety 10.32described in section 270C.59. 10.33(e) A partnership or S corporation required to withhold and remit tax under section 10.34290.92, subdivisions 4b and 4c , is liable for payment of the tax to the commissioner, and a 11.1person having control of or responsibility for the withholding of the tax or the filing of 11.2returns due in connection with the tax is personally liable for the tax due. 11.3(f) A payor of sums required to be withheld under section 290.9705, subdivision 11.41 , is liable to the state for the amount required to be deducted, and is not liable to an 11.5out-of-state contractor for the amount of the payment. 11.6(g) If an employer fails to withhold tax from the wages of an employee when 11.7required to do so under section 290.92, subdivision 2a, by reason of treating such 11.8employee as not being an employee, then the liability for tax is equal to three percent of 11.9the wages paid to the employee. The liability for tax of an employee is not affected by 11.10the assessment or collection of tax under this paragraph. The employer is not entitled to 11.11recover from the employee any tax determined under this paragraph. 11.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for payments made after June 30, new text end 11.13 new text begin 2012. new text end 11.14    Sec. 9. Minnesota Statutes 2011 Supplement, section 290.01, subdivision 19, is 11.15amended to read: 11.16    Subd. 19. Net income. The term "net income" means the federal taxable income, 11.17as defined in section 63 of the Internal Revenue Code of 1986, as amended through the 11.18date named in this subdivision, incorporating the federal effective dates of changes to the 11.19Internal Revenue Code and any elections made by the taxpayer in accordance with the 11.20Internal Revenue Code in determining federal taxable income for federal income tax 11.21purposes, and with the modifications provided in subdivisions 19a to 19f. 11.22    In the case of a regulated investment company or a fund thereof, as defined in section 11.23851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment 11.24company taxable income as defined in section 852(b)(2) of the Internal Revenue Code, 11.25except that: 11.26    (1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal 11.27Revenue Code does not apply; 11.28    (2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal 11.29Revenue Code must be applied by allowing a deduction for capital gain dividends and 11.30exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal 11.31Revenue Code; and 11.32    (3) the deduction for dividends paid must also be applied in the amount of any 11.33undistributed capital gains which the regulated investment company elects to have treated 11.34as provided in section 852(b)(3)(D) of the Internal Revenue Code. 12.1    The net income of a real estate investment trust as defined and limited by section 12.2856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust 12.3taxable income as defined in section 857(b)(2) of the Internal Revenue Code. 12.4    The net income of a designated settlement fund as defined in section 468B(d) of 12.5the Internal Revenue Code means the gross income as defined in section 468B(b) of the 12.6Internal Revenue Code. 12.7    The Internal Revenue Code of 1986, as amended through April 14, 2011 new text begin February new text end 12.8 new text begin 14, 2012 new text end , shall be in effect for taxable years beginning after December 31, 1996. The 12.9provisions of the act of January 22, 2010, Public Law 111-126, to accelerate the benefits 12.10for charitable cash contributions for the relief of victims of the Haitian earthquake, are 12.11effective at the same time they became effective for federal purposes and apply to the 12.12subtraction under subdivision 19b, clause (6). The provisions of title II, section 2112, of 12.13the act of September 27, 2010, Public Law 111-240, rollovers from elective deferral plans 12.14to designated Roth accounts, are effective at the same time they became effective for 12.15federal purposes and taxable rollovers are included in net income at the same time they are 12.16included in gross income for federal purposes. 12.17    Except as otherwise provided, references to the Internal Revenue Code in 12.18subdivisions 19 to 19f mean the code in effect for purposes of determining net income for 12.19the applicable year. 12.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 12.21    Sec. 10. Minnesota Statutes 2011 Supplement, section 290.01, subdivision 19a, 12.22is amended to read: 12.23    Subd. 19a. Additions to federal taxable income. For individuals, estates, and 12.24trusts, there shall be added to federal taxable income: 12.25    (1)(i) interest income on obligations of any state other than Minnesota or a political 12.26or governmental subdivision, municipality, or governmental agency or instrumentality 12.27of any state other than Minnesota exempt from federal income taxes under the Internal 12.28Revenue Code or any other federal statute; and 12.29    (ii) exempt-interest dividends as defined in section 852(b)(5) of the Internal Revenue 12.30Code, except: 12.31(A) the portion of the exempt-interest dividends exempt from state taxation under 12.32the laws of the United States; and 12.33(B) the portion of the exempt-interest dividends derived from interest income 12.34on obligations of the state of Minnesota or its political or governmental subdivisions, 12.35municipalities, governmental agencies or instrumentalities, but only if the portion of the 13.1exempt-interest dividends from such Minnesota sources paid to all shareholders represents 13.295 percent or more of the exempt-interest dividends, including any dividends exempt 13.3under subitem (A), that are paid by the regulated investment company as defined in section 13.4851(a) of the Internal Revenue Code, or the fund of the regulated investment company as 13.5defined in section 851(g) of the Internal Revenue Code, making the payment; and 13.6    (iii) for the purposes of items (i) and (ii), interest on obligations of an Indian tribal 13.7government described in section 7871(c) of the Internal Revenue Code shall be treated as 13.8interest income on obligations of the state in which the tribe is located; 13.9    (2) the amount of income, sales and use, motor vehicle sales, or excise taxes paid or 13.10accrued within the taxable year under this chapter and the amount of taxes based on net 13.11income paid, sales and use, motor vehicle sales, or excise taxes paid to any other state 13.12or to any province or territory of Canada, to the extent allowed as a deduction under 13.13section 63(d) of the Internal Revenue Code, but the addition may not be more than the 13.14amount by which the itemized deductions as allowed under section 63(d) of the Internal 13.15Revenue Code exceeds the amount of the standard deduction as defined in section 63(c) of 13.16the Internal Revenue Code, disregarding the amounts allowed under sections 63(c)(1)(C) 13.17and 63(c)(1)(E) of the Internal Revenue Code, minus any addition that would have been 13.18required under clause (21) if the taxpayer had claimed the standard deduction. For the 13.19purpose of this paragraph, the disallowance of itemized deductions under section 68 of 13.20the Internal Revenue Code of 1986, income, sales and use, motor vehicle sales, or excise 13.21taxes are the last itemized deductions disallowed; 13.22    (3) the capital gain amount of a lump-sum distribution to which the special tax under 13.23section 1122(h)(3)(B)(ii) of the Tax Reform Act of 1986, Public Law 99-514, applies; 13.24    (4) the amount of income taxes paid or accrued within the taxable year under this 13.25chapter and taxes based on net income paid to any other state or any province or territory 13.26of Canada, to the extent allowed as a deduction in determining federal adjusted gross 13.27income. For the purpose of this paragraph, income taxes do not include the taxes imposed 13.28by sections 290.0922, subdivision 1, paragraph (b), 290.9727, 290.9728, and 290.9729; 13.29    (5) the amount of expense, interest, or taxes disallowed pursuant to section 290.10 13.30other than expenses or interest used in computing net interest income for the subtraction 13.31allowed under subdivision 19b, clause (1); 13.32    (6) the amount of a partner's pro rata share of net income which does not flow 13.33through to the partner because the partnership elected to pay the tax on the income under 13.34section 6242(a)(2) of the Internal Revenue Code; 13.35    (7) 80 percent of the depreciation deduction allowed under section 168(k) of the 13.36Internal Revenue Code. For purposes of this clause, if the taxpayer has an activity that 14.1in the taxable year generates a deduction for depreciation under section 168(k) and the 14.2activity generates a loss for the taxable year that the taxpayer is not allowed to claim for 14.3the taxable year, "the depreciation allowed under section 168(k)" for the taxable year is 14.4limited to excess of the depreciation claimed by the activity under section 168(k) over the 14.5amount of the loss from the activity that is not allowed in the taxable year. In succeeding 14.6taxable years when the losses not allowed in the taxable year are allowed, the depreciation 14.7under section 168(k) is allowed; 14.8    (8) 80 percent of the amount by which the deduction allowed by section 179 of the 14.9Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal 14.10Revenue Code of 1986, as amended through December 31, 2003; 14.11    (9) to the extent deducted in computing federal taxable income, the amount of the 14.12deduction allowable under section 199 of the Internal Revenue Code; 14.13    (10) for taxable years beginning before January 1, 2013, the exclusion allowed 14.14under section 139A of the Internal Revenue Code for federal subsidies for prescription 14.15drug plans; 14.16(11) the amount of expenses disallowed under section 290.10, subdivision 2; 14.17    (12) for taxable years beginning before January 1, 2010, the amount deducted for 14.18qualified tuition and related expenses under section 222 of the Internal Revenue Code, to 14.19the extent deducted from gross income; 14.20    (13) for taxable years beginning before January 1, 2010, the amount deducted for 14.21certain expenses of elementary and secondary school teachers under section 62(a)(2)(D) 14.22of the Internal Revenue Code, to the extent deducted from gross income; 14.23(14) the additional standard deduction for property taxes payable that is allowable 14.24under section 63(c)(1)(C) of the Internal Revenue Code; 14.25(15) the additional standard deduction for qualified motor vehicle sales taxes 14.26allowable under section 63(c)(1)(E) of the Internal Revenue Code; 14.27(16) discharge of indebtedness income resulting from reacquisition of business 14.28indebtedness and deferred under section 108(i) of the Internal Revenue Code; 14.29(17) the amount of unemployment compensation exempt from tax under section 14.3085(c) of the Internal Revenue Code; 14.31(18) changes to federal taxable income attributable to a net operating loss that the 14.32taxpayer elected to carry back for more than two years for federal purposes but for which 14.33the losses can be carried back for only two years under section 290.095, subdivision 14.3411, paragraph (c); 14.35(19) to the extent included in the computation of federal taxable income in taxable 14.36years beginning after December 31, 2010, the amount of disallowed itemized deductions, 15.1but the amount of disallowed itemized deductions plus the addition required under clause 15.2(2) may not be more than the amount by which the itemized deductions as allowed under 15.3section 63(d) of the Internal Revenue Code exceeds the amount of the standard deduction 15.4as defined in section 63(c) of the Internal Revenue Code, disregarding the amounts 15.5allowed under sections 63(c)(1)(C) and 63(c)(1)(E) of the Internal Revenue Code, and 15.6reduced by any addition that would have been required under clause (21) if the taxpayer 15.7had claimed the standard deduction: 15.8(i) the amount of disallowed itemized deductions is equal to the lesser of: 15.9(A) three percent of the excess of the taxpayer's federal adjusted gross income 15.10over the applicable amount; or 15.11(B) 80 percent of the amount of the itemized deductions otherwise allowable to the 15.12taxpayer under the Internal Revenue Code for the taxable year; 15.13(ii) the term "applicable amount" means $100,000, or $50,000 in the case of a 15.14married individual filing a separate return. Each dollar amount shall be increased by 15.15an amount equal to: 15.16(A) such dollar amount, multiplied by 15.17(B) the cost-of-living adjustment determined under section 1(f)(3) of the Internal 15.18Revenue Code for the calendar year in which the taxable year begins, by substituting 15.19"calendar year 1990" for "calendar year 1992" in subparagraph (B) thereof; 15.20(iii) the term "itemized deductions" does not include: 15.21(A) the deduction for medical expenses under section 213 of the Internal Revenue 15.22Code; 15.23(B) any deduction for investment interest as defined in section 163(d) of the Internal 15.24Revenue Code; and 15.25(C) the deduction under section 165(a) of the Internal Revenue Code for casualty or 15.26theft losses described in paragraph (2) or (3) of section 165(c) of the Internal Revenue 15.27Code or for losses described in section 165(d) of the Internal Revenue Code; 15.28(20) to the extent included in federal taxable income in taxable years beginning after 15.29December 31, 2010, the amount of disallowed personal exemptions for taxpayers with 15.30federal adjusted gross income over the threshold amount: 15.31(i) the disallowed personal exemption amount is equal to the dollar amount of the 15.32personal exemptions claimed by the taxpayer in the computation of federal taxable income 15.33multiplied by the applicable percentage; 15.34(ii) "applicable percentage" means two percentage points for each $2,500 (or 15.35fraction thereof) by which the taxpayer's federal adjusted gross income for the taxable 15.36year exceeds the threshold amount. In the case of a married individual filing a separate 16.1return, the preceding sentence shall be applied by substituting "$1,250" for "$2,500." In 16.2no event shall the applicable percentage exceed 100 percent; 16.3(iii) the term "threshold amount" means: 16.4(A) $150,000 in the case of a joint return or a surviving spouse; 16.5(B) $125,000 in the case of a head of a household; 16.6(C) $100,000 in the case of an individual who is not married and who is not a 16.7surviving spouse or head of a household; and 16.8(D) $75,000 in the case of a married individual filing a separate return; and 16.9(iv) the thresholds shall be increased by an amount equal to: 16.10(A) such dollar amount, multiplied by 16.11(B) the cost-of-living adjustment determined under section 1(f)(3) of the Internal 16.12Revenue Code for the calendar year in which the taxable year begins, by substituting 16.13"calendar year 1990" for "calendar year 1992" in subparagraph (B) thereof; and 16.14(21) to the extent deducted in the computation of federal taxable income, for taxable 16.15years beginning after December 31, 2010, and before January 1, 2013 new text begin 2012 new text end , the difference 16.16between the standard deduction allowed under section 63(c) of the Internal Revenue Code 16.17and the standard deduction allowed for 2011 and 2012 under the Internal Revenue Code 16.18as amended through December 1, 2010. 16.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 16.20 new text begin December 31, 2011. new text end 16.21    Sec. 11. Minnesota Statutes 2011 Supplement, section 290.01, subdivision 19b, 16.22is amended to read: 16.23    Subd. 19b. Subtractions from federal taxable income. For individuals, estates, 16.24and trusts, there shall be subtracted from federal taxable income: 16.25    (1) net interest income on obligations of any authority, commission, or 16.26instrumentality of the United States to the extent includable in taxable income for federal 16.27income tax purposes but exempt from state income tax under the laws of the United States; 16.28    (2) if included in federal taxable income, the amount of any overpayment of income 16.29tax to Minnesota or to any other state, for any previous taxable year, whether the amount 16.30is received as a refund or as a credit to another taxable year's income tax liability; 16.31    (3) the amount paid to others, less the amount used to claim the credit allowed under 16.32section 290.0674, not to exceed $1,625 for each qualifying child in grades kindergarten 16.33to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and 16.34transportation of each qualifying child in attending an elementary or secondary school 16.35situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a 17.1resident of this state may legally fulfill the state's compulsory attendance laws, which 17.2is not operated for profit, and which adheres to the provisions of the Civil Rights Act 17.3of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or 17.4tuition as defined in section 290.0674, subdivision 1, clause (1). As used in this clause, 17.5"textbooks" includes books and other instructional materials and equipment purchased 17.6or leased for use in elementary and secondary schools in teaching only those subjects 17.7legally and commonly taught in public elementary and secondary schools in this state. 17.8Equipment expenses qualifying for deduction includes expenses as defined and limited in 17.9section 290.0674, subdivision 1, clause (3). "Textbooks" does not include instructional 17.10books and materials used in the teaching of religious tenets, doctrines, or worship, the 17.11purpose of which is to instill such tenets, doctrines, or worship, nor does it include books 17.12or materials for, or transportation to, extracurricular activities including sporting events, 17.13musical or dramatic events, speech activities, driver's education, or similar programs. No 17.14deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or 17.15the qualifying child's vehicle to provide such transportation for a qualifying child. For 17.16purposes of the subtraction provided by this clause, "qualifying child" has the meaning 17.17given in section 32(c)(3) of the Internal Revenue Code; 17.18    (4) income as provided under section 290.0802; 17.19    (5) to the extent included in federal adjusted gross income, income realized on 17.20disposition of property exempt from tax under section 290.491; 17.21    (6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E) 17.22of the Internal Revenue Code in determining federal taxable income by an individual 17.23who does not itemize deductions for federal income tax purposes for the taxable year, an 17.24amount equal to 50 percent of the excess of charitable contributions over $500 allowable 17.25as a deduction for the taxable year under section 170(a) of the Internal Revenue Code, 17.26under the provisions of Public Law 109-1 and Public Law 111-126; 17.27    (7) for individuals who are allowed a federal foreign tax credit for taxes that do not 17.28qualify for a credit under section 290.06, subdivision 22, an amount equal to the carryover 17.29of subnational foreign taxes for the taxable year, but not to exceed the total subnational 17.30foreign taxes reported in claiming the foreign tax credit. For purposes of this clause, 17.31"federal foreign tax credit" means the credit allowed under section 27 of the Internal 17.32Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed 17.33under section 904(c) of the Internal Revenue Code minus national level foreign taxes to 17.34the extent they exceed the federal foreign tax credit; 17.35    (8) in each of the five tax years immediately following the tax year in which an 17.36addition is required under subdivision 19a, clause (7), or 19c, clause (15), in the case 18.1of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth 18.2of the delayed depreciation. For purposes of this clause, "delayed depreciation" means 18.3the amount of the addition made by the taxpayer under subdivision 19a, clause (7), or 18.4subdivision 19c, clause (15), in the case of a shareholder of an S corporation, minus the 18.5positive value of any net operating loss under section 172 of the Internal Revenue Code 18.6generated for the tax year of the addition. The resulting delayed depreciation cannot be 18.7less than zero; 18.8    (9) job opportunity building zone income as provided under section 469.316; 18.9    (10) to the extent included in federal taxable income, the amount of compensation 18.10paid to members of the Minnesota National Guard or other reserve components of the 18.11United States military for active service, excluding compensation for services performed 18.12under the Active Guard Reserve (AGR) program. For purposes of this clause, "active 18.13service" means (i) state active service as defined in section 190.05, subdivision 5a, clause 18.14(1); or (ii) federally funded state active service as defined in section 190.05, subdivision 18.155b , but "active service" excludes service performed in accordance with section 190.08, 18.16subdivision 3 ; 18.17    (11) to the extent included in federal taxable income, the amount of compensation 18.18paid to Minnesota residents who are members of the armed forces of the United States 18.19or United Nations for active duty performed under United States Code, title 10; or the 18.20authority of the United Nations; 18.21    (12) an amount, not to exceed $10,000, equal to qualified expenses related to a 18.22qualified donor's donation, while living, of one or more of the qualified donor's organs 18.23to another person for human organ transplantation. For purposes of this clause, "organ" 18.24means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow; 18.25"human organ transplantation" means the medical procedure by which transfer of a human 18.26organ is made from the body of one person to the body of another person; "qualified 18.27expenses" means unreimbursed expenses for both the individual and the qualified donor 18.28for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses 18.29may be subtracted under this clause only once; and "qualified donor" means the individual 18.30or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An 18.31individual may claim the subtraction in this clause for each instance of organ donation for 18.32transplantation during the taxable year in which the qualified expenses occur; 18.33    (13) in each of the five tax years immediately following the tax year in which an 18.34addition is required under subdivision 19a, clause (8), or 19c, clause (16), in the case of a 18.35shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the 18.36addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (16), in the 19.1case of a shareholder of a corporation that is an S corporation, minus the positive value of 19.2any net operating loss under section 172 of the Internal Revenue Code generated for the 19.3tax year of the addition. If the net operating loss exceeds the addition for the tax year, a 19.4subtraction is not allowed under this clause; 19.5    (14) to the extent included in the federal taxable income of a nonresident of 19.6Minnesota, compensation paid to a service member as defined in United States Code, title 19.710, section 101(a)(5), for military service as defined in the Servicemembers Civil Relief 19.8Act, Public Law 108-189, section 101(2); 19.9    (15) international economic development zone income as provided under section 19.10469.325 ; 19.11    (16) to the extent included in federal taxable income, the amount of national service 19.12educational awards received from the National Service Trust under United States Code, 19.13title 42, sections 12601 to 12604, for service in an approved Americorps National Service 19.14program; 19.15(17) to the extent included in federal taxable income, discharge of indebtedness 19.16income resulting from reacquisition of business indebtedness included in federal taxable 19.17income under section 108(i) of the Internal Revenue Code. This subtraction applies only 19.18to the extent that the income was included in net income in a prior year as a result of the 19.19addition under section 290.01, subdivision 19a, clause (16); and 19.20(18) the amount of the net operating loss allowed under section 290.095, subdivision 19.2111, paragraph (c). new text begin ; and new text end 19.22 new text begin (19) to the extent included in federal taxable income, 46 percent of compensation new text end 19.23 new text begin received from a pension or other retirement pay from the federal government for service new text end 19.24 new text begin in the military, as computed under United States Code, title 10, sections 1401 to 1414, new text end 19.25 new text begin 1447 to 1455, and 12733, not including any credit received in previous years for credit new text end 19.26 new text begin allowed under section 290.0677, subdivision 1. new text end 19.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 19.28 new text begin December 31, 2012. new text end 19.29    Sec. 12. Minnesota Statutes 2011 Supplement, section 290.01, subdivision 31, is 19.30amended to read: 19.31    Subd. 31. Internal Revenue Code. Unless specifically defined otherwise, "Internal 19.32Revenue Code" means the Internal Revenue Code of 1986, as amended through April 14, 19.332011 new text begin February 14, 2012 new text end . Internal Revenue Code also includes any uncodified provision in 19.34federal law that relates to provisions of the Internal Revenue Code that are incorporated 19.35into Minnesota law. When used in this chapter, the reference to "subtitle A, chapter 1, 20.1subchapter N, part 1, of the Internal Revenue Code" is to the Internal Revenue Code as 20.2amended through March 18, 2010. 20.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 20.4    Sec. 13. Minnesota Statutes 2010, section 290.0677, subdivision 1, is amended to read: 20.5    Subdivision 1. Credit allowed; current military service. (a) An individual is 20.6allowed a credit against the tax due under this chapter equal to $59 for each month or 20.7portion thereof that the individual was in active military service in a designated area after 20.8September 11, 2001, and before January 1, 2009, while a Minnesota domiciliary. 20.9    (b) An individual is allowed a credit against the tax due under this chapter equal 20.10to $120 new text begin $240 new text end for each month or portion thereof that the individual was in active military 20.11service in a designated area after December 31, 2008, while a Minnesota domiciliary. 20.12    (c) For active service performed after September 11, 2001, and before December 31, 20.132006, the individual may claim the credit in the taxable year beginning after December 31, 20.142005, and before January 1, 2007. 20.15    (d) For active service performed after December 31, 2006, the individual may claim 20.16the credit for the taxable year in which the active service was performed. 20.17    (e) If an individual entitled to the credit died prior to January 1, 2006, the individual's 20.18estate or heirs at law, if the individual's probate estate has closed or the estate was not 20.19probated, may claim the credit. 20.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 20.21 new text begin December 31, 2012. new text end 20.22    Sec. 14. Minnesota Statutes 2010, section 290.0677, subdivision 2, is amended to read: 20.23    Subd. 2. Definitions. (a) For purposes of this section the following terms have 20.24the meanings given. 20.25    (b) "Designated area" means a: 20.26    (1) combat zone designated by Executive Order from the President of the United 20.27States; 20.28    (2) qualified hazardous duty area, designated in Public Law; or 20.29    (3) location certified by the U. S. Department of Defense as eligible for combat zone 20.30tax benefits due to the location's direct support of military operations. 20.31    (c) "Active military service" means active duty service in any of the United States 20.32armed forces, the National Guard, or reserves. 20.33    (d) "Qualified individual" means an individual who has 21.1    (1) either (i) served at least 20 years in the military or (ii) has a service-connected 21.2disability rating of 100 percent for a total and permanent disability; and 21.3    (2) separated from military service before the end of the taxable year. 21.4    (e) "Adjusted gross income" has the meaning given in section 61 of the Internal 21.5Revenue Code. 21.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 21.7 new text begin December 31, 2012. new text end 21.8    Sec. 15. Minnesota Statutes 2010, section 290.0681, subdivision 1, is amended to read: 21.9    Subdivision 1. Definitions. (a) For purposes of this section, the following terms 21.10have the meanings given. 21.11(b) "Account" means the historic credit administration account in the special 21.12revenue fund. 21.13(c) "Office" means the State Historic Preservation Office of the Minnesota Historical 21.14Society. 21.15(d) "Project" means rehabilitation of a certified historic structure, as defined in 21.16section 47(c)(3)(A) of the Internal Revenue Code, that is located in Minnesota and is 21.17allowed a federal credit under section 47(a)(2) of the Internal Revenue Code. 21.18(e) "Society" means the Minnesota Historical Society. 21.19 new text begin (f) "Federal credit" means the credit allowed under section 47(a)(2) of the Internal new text end 21.20 new text begin Revenue Code. new text end 21.21 new text begin (g) "Placed in service" has the meaning given in section 47 of the Internal Revenue new text end 21.22 new text begin Code. new text end 21.23 new text begin (h) "Qualified rehabilitation expenditures" has the meaning given in section 47 of new text end 21.24 new text begin the Internal Revenue Code. new text end 21.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 21.26    Sec. 16. Minnesota Statutes 2010, section 290.0681, subdivision 3, is amended to read: 21.27    Subd. 3. Applications; allocations. (a) To qualify for a credit or grant under this 21.28section, the developer of a project must apply to the office before the rehabilitation begins. 21.29The application must contain the information and be in the form prescribed by the office. 21.30The office may collect a fee for application of up to $5,000, based on estimated qualified 21.31rehabilitation expenses new text begin expenditures new text end , to offset costs associated with personnel and 21.32administrative expenses related to administering the credit and preparing the economic 21.33impact report in subdivision 9. Application fees are deposited in the account. The 22.1application must indicate if the application is for a credit or a grant in lieu of the credit 22.2or a combination of the two and designate the taxpayer qualifying for the credit or the 22.3recipient of the grant. 22.4    (b) Upon approving an application for credit, the office shall issue allocation 22.5certificates that: 22.6    (1) verify eligibility for the credit or grant; 22.7    (2) state the amount of credit or grant anticipated with the project, with the credit 22.8amount equal to 100 percent and the grant amount equal to 90 percent of the federal 22.9credit anticipated in the application; 22.10    (3) state that the credit or grant allowed may increase or decrease if the federal 22.11credit the project receives at the time it is placed in service is different than the amount 22.12anticipated at the time the allocation certificate is issued; and 22.13    (4) state the fiscal year in which the credit or grant is allocated, and that the taxpayer 22.14or grant recipient is entitled to receive the credit or grant at the time the project is placed 22.15in service, provided that date is within three calendar years following the issuance of 22.16the allocation certificate. 22.17    (c) The office, in consultation with the commissioner of revenue, shall determine if 22.18the project is eligible for a credit or a grant under this section. Eligibility for the credit is 22.19subject to review and audit by the commissioner of revenue. 22.20    (d) The federal credit recapture and repayment requirements under section 50 of the 22.21Internal Revenue Code do not apply to the credit allowed under this section. 22.22 new text begin (e) Any decision of the office or the society under this subdivision may be challenged new text end 22.23 new text begin as a contested case under chapter 14. new text end 22.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 22.25    Sec. 17. Minnesota Statutes 2010, section 290.0681, subdivision 5, is amended to read: 22.26    Subd. 5. Partnerships; multiple owners. Credits granted to a partnership, a limited 22.27liability company taxed as a partnership, S corporation, or multiple owners of property 22.28are passed through to the partners, members, shareholders, or owners, respectively, pro 22.29rata to each partner, member, shareholder, or owner based on their share of the entity's 22.30assets or as specially allocated in their organizational documents new text begin or any other executed new text end 22.31 new text begin agreement new text end , as of the last day of the taxable year. 22.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 23.1    Sec. 18. Minnesota Statutes 2010, section 290.0681, subdivision 10, is amended to 23.2read: 23.3    Subd. 10. Sunset. This section expires after fiscal year 2015 new text begin 2021 new text end , except that 23.4the office's authority to issue credit certificates under subdivision 4 based on allocation 23.5certificates that were issued before fiscal year 2016 new text begin 2022 new text end remains in effect through 2018 new text begin new text end 23.6 new text begin 2024 new text end , and the reporting requirements in subdivision 9 remain in effect through the year 23.7following the year in which all allocation certificates have either been canceled or resulted 23.8in issuance of credit certificates, or 2019 new text begin 2025 new text end , whichever is earlier. 23.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 23.10    Sec. 19. Minnesota Statutes 2011 Supplement, section 290.091, subdivision 2, is 23.11amended to read: 23.12    Subd. 2. Definitions. For purposes of the tax imposed by this section, the following 23.13terms have the meanings given: 23.14    (a) "Alternative minimum taxable income" means the sum of the following for 23.15the taxable year: 23.16    (1) the taxpayer's federal alternative minimum taxable income as defined in section 23.1755(b)(2) of the Internal Revenue Code; 23.18    (2) the taxpayer's itemized deductions allowed in computing federal alternative 23.19minimum taxable income, but excluding: 23.20    (i) the charitable contribution deduction under section 170 of the Internal Revenue 23.21Code; 23.22    (ii) the medical expense deduction; 23.23    (iii) the casualty, theft, and disaster loss deduction; and 23.24    (iv) the impairment-related work expenses of a disabled person; 23.25    (3) for depletion allowances computed under section 613A(c) of the Internal 23.26Revenue Code, with respect to each property (as defined in section 614 of the Internal 23.27Revenue Code), to the extent not included in federal alternative minimum taxable income, 23.28the excess of the deduction for depletion allowable under section 611 of the Internal 23.29Revenue Code for the taxable year over the adjusted basis of the property at the end of the 23.30taxable year (determined without regard to the depletion deduction for the taxable year); 23.31    (4) to the extent not included in federal alternative minimum taxable income, the 23.32amount of the tax preference for intangible drilling cost under section 57(a)(2) of the 23.33Internal Revenue Code determined without regard to subparagraph (E); 23.34    (5) to the extent not included in federal alternative minimum taxable income, the 23.35amount of interest income as provided by section 290.01, subdivision 19a, clause (1); and 24.1    (6) the amount of addition required by section 290.01, subdivision 19a, clauses (7) 24.2to (9), (12), (13), and (16) to (18); 24.3    less the sum of the amounts determined under the following: 24.4    (1) interest income as defined in section 290.01, subdivision 19b, clause (1); 24.5    (2) an overpayment of state income tax as provided by section 290.01, subdivision 24.619b , clause (2), to the extent included in federal alternative minimum taxable income; 24.7    (3) the amount of investment interest paid or accrued within the taxable year on 24.8indebtedness to the extent that the amount does not exceed net investment income, as 24.9defined in section 163(d)(4) of the Internal Revenue Code. Interest does not include 24.10amounts deducted in computing federal adjusted gross income; 24.11    (4) amounts subtracted from federal taxable income as provided by section 290.01, 24.12subdivision 19b , clauses (6), (8) to (15), and (17) new text begin , and (19) new text end ; and 24.13(5) the amount of the net operating loss allowed under section 290.095, subdivision 24.1411, paragraph (c). 24.15    In the case of an estate or trust, alternative minimum taxable income must be 24.16computed as provided in section 59(c) of the Internal Revenue Code. 24.17    (b) "Investment interest" means investment interest as defined in section 163(d)(3) 24.18of the Internal Revenue Code. 24.19    (c) "Net minimum tax" means the minimum tax imposed by this section. 24.20    (d) "Regular tax" means the tax that would be imposed under this chapter (without 24.21regard to this section and section 290.032), reduced by the sum of the nonrefundable 24.22credits allowed under this chapter. 24.23    (e) "Tentative minimum tax" equals 6.4 percent of alternative minimum taxable 24.24income after subtracting the exemption amount determined under subdivision 3. 24.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 24.26 new text begin December 31, 2012. new text end 24.27    Sec. 20. Minnesota Statutes 2011 Supplement, section 290A.03, subdivision 15, 24.28is amended to read: 24.29    Subd. 15. Internal Revenue Code. "Internal Revenue Code" means the Internal 24.30Revenue Code of 1986, as amended through April 14, 2011 new text begin February 14, 2012 new text end . 24.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 24.32    Sec. 21. Minnesota Statutes 2011 Supplement, section 291.005, subdivision 1, is 24.33amended to read: 25.1    Subdivision 1. Scope. Unless the context otherwise clearly requires, the following 25.2terms used in this chapter shall have the following meanings: 25.3    (1) "Commissioner" means the commissioner of revenue or any person to whom the 25.4commissioner has delegated functions under this chapter. 25.5    (2) "Federal gross estate" means the gross estate of a decedent as required to be 25.6valued and otherwise determined for federal estate tax purposes under the Internal 25.7Revenue Code. 25.8    (3) "Internal Revenue Code" means the United States Internal Revenue Code of 25.91986, as amended through April 14, 2011 new text begin February 14, 2012 new text end , but without regard to the 25.10provisions of sections 501 and 901 of Public Law 107-16, as amended by Public Law 25.11111-312, and section 301(c) of Public Law 111-312. 25.12    (4) "Minnesota adjusted taxable estate" means federal adjusted taxable estate as 25.13defined by section 2011(b)(3) of the Internal Revenue Code, plus 25.14(i) the amount of deduction for state death taxes allowed under section 2058 of 25.15the Internal Revenue Code; less 25.16(ii)(A) the value of qualified small business property under section 291.03, 25.17subdivision 9 , and the value of qualified farm property under section 291.03, subdivision 25.1810 , or (B) $4,000,000, whichever is less. 25.19    (5) "Minnesota gross estate" means the federal gross estate of a decedent after (a) 25.20excluding therefrom any property included therein which has its situs outside Minnesota, 25.21and (b) including therein any property omitted from the federal gross estate which is 25.22includable therein, has its situs in Minnesota, and was not disclosed to federal taxing 25.23authorities. 25.24    (6) "Nonresident decedent" means an individual whose domicile at the time of 25.25death was not in Minnesota. 25.26    (7) "Personal representative" means the executor, administrator or other person 25.27appointed by the court to administer and dispose of the property of the decedent. If there 25.28is no executor, administrator or other person appointed, qualified, and acting within this 25.29state, then any person in actual or constructive possession of any property having a situs in 25.30this state which is included in the federal gross estate of the decedent shall be deemed 25.31to be a personal representative to the extent of the property and the Minnesota estate tax 25.32due with respect to the property. 25.33    (8) "Resident decedent" means an individual whose domicile at the time of death 25.34was in Minnesota. 25.35    (9) "Situs of property" means, with respect to real property, the state or country in 25.36which it is located; with respect to tangible personal property, the state or country in which 26.1it was normally kept or located at the time of the decedent's death; and with respect to 26.2intangible personal property, the state or country in which the decedent was domiciled 26.3at death. 26.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 26.5    Sec. 22. Minnesota Statutes 2010, section 297G.04, subdivision 2, is amended to read: 26.6    Subd. 2. Tax credit. A qualified brewer producing fermented malt beverages 26.7is entitled to a tax credit of $4.60 per barrel on 25,000 barrels sold in any fiscal year 26.8beginning July 1, regardless of the alcohol content of the product. Qualified brewers may 26.9take the credit on the 18th day of each month, but the total credit allowed may not exceed 26.10in any fiscal year the lesser of: 26.11(1) the liability for tax; or 26.12(2) $115,000. 26.13For purposes of this subdivision, a "qualified brewer" means a brewer, whether or 26.14not located in this state, manufacturing less than 100,000 new text begin 250,000 new text end barrels of fermented 26.15malt beverages in the calendar year immediately preceding the calendar year for which 26.16the credit under this subdivision is claimed. In determining the number of barrels, all 26.17brands or labels of a brewer must be combined. All facilities for the manufacture of 26.18fermented malt beverages owned or controlled by the same person, corporation, or other 26.19entity must be treated as a single brewer. 26.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for determinations based on calendar new text end 26.21 new text begin year 2011 production and thereafter. new text end 26.22    Sec. 23. new text begin REPEALER. new text end 26.23 new text begin (a) new text end new text begin Minnesota Statutes 2010, section 290.0677, subdivision 1a, new text end new text begin is repealed. new text end 26.24 new text begin (b) new text end new text begin Minnesota Statutes 2010, section 290.92, subdivision 31, new text end new text begin is repealed. new text end 26.25 new text begin EFFECTIVE DATE. new text end new text begin Paragraph (a) is effective for taxable years beginning after new text end 26.26 new text begin December 31, 2012. Paragraph (b) is effective for payments made after June 30, 2012. new text end 26.27ARTICLE 2 26.28SALES TAX 26.29    Section 1. Minnesota Statutes 2010, section 289A.20, subdivision 4, is amended to 26.30read: 27.1    Subd. 4. Sales and use tax. (a) The taxes imposed by chapter 297A are due and 27.2payable to the commissioner monthly on or before the 20th day of the month following 27.3the month in which the taxable event occurred, or following another reporting period 27.4as the commissioner prescribes or as allowed under section 289A.18, subdivision 4, 27.5paragraph (f) or (g), except that: 27.6(1) use taxes due on an annual use tax return as provided under section 289A.11, 27.7subdivision 1 , are payable by April 15 following the close of the calendar year; and new text begin . new text end 27.8(2) except as provided in paragraph (f), for a vendor having a liability of $120,000 27.9or more during a fiscal year ending June 30, 2009, and fiscal years thereafter, the taxes 27.10imposed by chapter 297A, except as provided in paragraph (b), are due and payable to the 27.11commissioner monthly in the following manner: 27.12(i) On or before the 14th day of the month following the month in which the taxable 27.13event occurred, the vendor must remit to the commissioner 90 percent of the estimated 27.14liability for the month in which the taxable event occurred. 27.15(ii) On or before the 20th day of the month in which the taxable event occurs, the 27.16vendor must remit to the commissioner a prepayment for the month in which the taxable 27.17event occurs equal to 67 percent of the liability for the previous month. 27.18(iii) On or before the 20th day of the month following the month in which the taxable 27.19event occurred, the vendor must pay any additional amount of tax not previously remitted 27.20under either item (i) or (ii ) or, if the payment made under item (i) or (ii) was greater than 27.21the vendor's liability for the month in which the taxable event occurred, the vendor may 27.22take a credit against the next month's liability in a manner prescribed by the commissioner. 27.23(iv) Once the vendor first pays under either item (i) or (ii), the vendor is required to 27.24continue to make payments in the same manner, as long as the vendor continues having a 27.25liability of $120,000 or more during the most recent fiscal year ending June 30. 27.26(v) Notwithstanding items (i), (ii), and (iv), if a vendor fails to make the required 27.27payment in the first month that the vendor is required to make a payment under either item 27.28(i) or (ii), then the vendor is deemed to have elected to pay under item (ii) and must make 27.29subsequent monthly payments in the manner provided in item (ii). 27.30(vi) For vendors making an accelerated payment under item (ii), for the first month 27.31that the vendor is required to make the accelerated payment, on the 20th of that month, the 27.32vendor will pay 100 percent of the liability for the previous month and a prepayment for 27.33the first month equal to 67 percent of the liability for the previous month. 27.34    (b) Notwithstanding paragraph (a), A vendor having a liability of $120,000 or more 27.35during a fiscal year ending June 30 must remit the June liability for the next year in the 27.36following manner: 28.1    (1) Two business days before June 30 of the year, the vendor must remit 90 percent 28.2of the estimated June liability to the commissioner. 28.3    (2) On or before August 20 of the year, the vendor must pay any additional amount 28.4of tax not remitted in June. 28.5    (c) A vendor having a liability of: 28.6    (1) $10,000 or more, but less than $120,000 during a fiscal year ending June 30, 28.72009, and fiscal years thereafter, must remit by electronic means all liabilities on returns 28.8due for periods beginning in the subsequent calendar year on or before the 20th day of 28.9the month following the month in which the taxable event occurred, or on or before the 28.1020th day of the month following the month in which the sale is reported under section 28.11289A.18, subdivision 4 ; or 28.12(2) $120,000 or more, during a fiscal year ending June 30, 2009, and fiscal years 28.13thereafter, must remit by electronic means all liabilities in the manner provided in 28.14paragraph (a), clause (2), on returns due for periods beginning in the subsequent calendar 28.15year, except for 90 percent of the estimated June liability, which is due two business days 28.16before June 30. The remaining amount of the June liability is due on August 20. 28.17(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's 28.18religious beliefs from paying electronically shall be allowed to remit the payment by mail. 28.19The filer must notify the commissioner of revenue of the intent to pay by mail before 28.20doing so on a form prescribed by the commissioner. No extra fee may be charged to a 28.21person making payment by mail under this paragraph. The payment must be postmarked 28.22at least two business days before the due date for making the payment in order to be 28.23considered paid on a timely basis. 28.24(e) Whenever the liability is $120,000 or more separately for: (1) the tax imposed 28.25under chapter 297A; (2) a fee that is to be reported on the same return as and paid with the 28.26chapter 297A taxes; or (3) any other tax that is to be reported on the same return as and 28.27paid with the chapter 297A taxes, then the payment of all the liabilities on the return must 28.28be accelerated as provided in this subdivision. 28.29(f) At the start of the first calendar quarter at least 90 days after the cash flow 28.30account established in section 16A.152, subdivision 1, and the budget reserve account 28.31established in section 16A.152, subdivision 1a, reach the amounts listed in section 28.3216A.152, subdivision 2, paragraph (a), the remittance of the accelerated payments required 28.33under paragraph (a), clause (2), must be suspended. The commissioner of management 28.34and budget shall notify the commissioner of revenue when the accounts have reached 28.35the required amounts. Beginning with the suspension of paragraph (a), clause (2), for a 28.36vendor with a liability of $120,000 or more during a fiscal year ending June 30, 2009, 29.1and fiscal years thereafter, the taxes imposed by chapter 297A are due and payable to the 29.2commissioner on the 20th day of the month following the month in which the taxable 29.3event occurred. Payments of tax liabilities for taxable events occurring in June under 29.4paragraph (b) are not changed. 29.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes due and payable after new text end 29.6 new text begin June 30, 2012. new text end 29.7    Sec. 2. Minnesota Statutes 2011 Supplement, section 295.53, subdivision 1, is 29.8amended to read: 29.9    Subdivision 1. Exemptions. (a) The following payments are excluded from the 29.10gross revenues subject to the hospital, surgical center, or health care provider taxes under 29.11sections 295.50 to 295.59: 29.12(1) payments received for services provided under the Medicare program, including 29.13payments received from the government, and organizations governed by sections 1833 29.14and 1876 of title XVIII of the federal Social Security Act, United States Code, title 42, 29.15section 1395, and enrollee deductibles, coinsurance, and co-payments, whether paid by the 29.16Medicare enrollee or by a Medicare supplemental coverage as defined in section 62A.011, 29.17subdivision 3 , clause (10), or by Medicaid payments under title XIX of the federal Social 29.18Security Act. Payments for services not covered by Medicare are taxable; 29.19(2) payments received for home health care services; 29.20(3) payments received from hospitals or surgical centers for goods and services on 29.21which liability for tax is imposed under section 295.52 or the source of funds for the 29.22payment is exempt under clause (1), (7), (10), or (14); 29.23(4) payments received from health care providers for goods and services on which 29.24liability for tax is imposed under this chapter or the source of funds for the payment is 29.25exempt under clause (1), (7), (10), or (14); 29.26(5) amounts paid for legend drugs, other than nutritional products and blood and 29.27blood components, to a wholesale drug distributor who is subject to tax under section 29.28295.52, subdivision 3 , reduced by reimbursements received for legend drugs otherwise 29.29exempt under this chapter; 29.30(6) payments received by a health care provider or the wholly owned subsidiary of a 29.31health care provider for care provided outside Minnesota; 29.32(7) payments received from the chemical dependency fund under chapter 254B; 29.33(8) payments received in the nature of charitable donations that are not designated 29.34for providing patient services to a specific individual or group; 30.1(9) payments received for providing patient services incurred through a formal 30.2program of health care research conducted in conformity with federal regulations 30.3governing research on human subjects. Payments received from patients or from other 30.4persons paying on behalf of the patients are subject to tax; 30.5(10) payments received from any governmental agency for services benefiting the 30.6public, not including payments made by the government in its capacity as an employer 30.7or insurer or payments made by the government for services provided under general 30.8assistance medical care, the MinnesotaCare program, or the medical assistance program 30.9governed by title XIX of the federal Social Security Act, United States Code, title 42, 30.10sections 1396 to 1396v; 30.11(11) government payments received by the commissioner of human services for 30.12state-operated services; 30.13(12) payments received by a health care provider for hearing aids and related 30.14equipment or prescription eyewear delivered outside of Minnesota; 30.15(13) payments received by an educational institution from student tuition, student 30.16activity fees, health care service fees, government appropriations, donations, or grants, 30.17and for services identified in and provided under an individualized education program 30.18as defined in section 256B.0625 or Code of Federal Regulations, chapter 34, section 30.19300.340(a). Fee for service payments and payments for extended coverage are taxable; 30.20(14) payments received under the federal Employees Health Benefits Act, United 30.21States Code, title 5, section 8909(f), as amended by the Omnibus Reconciliation Act of 30.221990. Enrollee deductibles, coinsurance, and co-payments are subject to tax; and 30.23(15) payments received under the federal Tricare program, Code of Federal 30.24Regulations, title 32, section 199.17(a)(7). Enrollee deductibles, coinsurance, and 30.25co-payments are subject to tax. new text begin ; and new text end 30.26 new text begin (16) payments for laboratory services to examine and report results for a biological new text end 30.27 new text begin specimen that is collected outside the state. The entity claiming the exemption is required new text end 30.28 new text begin to keep adequate records demonstrating that the specimen was collected outside the state, new text end 30.29 new text begin so that the commissioner can ensure that the correct amount of tax is paid. new text end 30.30(b) Payments received by wholesale drug distributors for legend drugs sold directly 30.31to veterinarians or veterinary bulk purchasing organizations are excluded from the gross 30.32revenues subject to the wholesale drug distributor tax under sections 295.50 to 295.59. 30.33 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for gross revenues received from new text end 30.34 new text begin laboratory services provided on or after July 1, 2013. new text end 30.35    Sec. 3. Minnesota Statutes 2010, section 297A.61, subdivision 4, is amended to read: 31.1    Subd. 4. Retail sale. (a) A "retail sale" means any sale, lease, or rental for any 31.2purpose, other than resale, sublease, or subrent of items by the purchaser in the normal 31.3course of business as defined in subdivision 21. 31.4    (b) A sale of property used by the owner only by leasing it to others or by holding it 31.5in an effort to lease it, and put to no use by the owner other than resale after the lease or 31.6effort to lease, is a sale of property for resale. 31.7    (c) A sale of master computer software that is purchased and used to make copies for 31.8sale or lease is a sale of property for resale. 31.9    (d) A sale of building materials, supplies, and equipment to owners, contractors, 31.10subcontractors, or builders for the erection of buildings or the alteration, repair, or 31.11improvement of real property is a retail sale in whatever quantity sold, whether the sale is 31.12for purposes of resale in the form of real property or otherwise. 31.13    (e) A sale of carpeting, linoleum, or similar floor covering to a person who provides 31.14for installation of the floor covering is a retail sale and not a sale for resale since a sale 31.15of floor covering which includes installation is a contract for the improvement of real 31.16property. 31.17    (f) A sale of shrubbery, plants, sod, trees, and similar items to a person who provides 31.18for installation of the items is a retail sale and not a sale for resale since a sale of 31.19shrubbery, plants, sod, trees, and similar items that includes installation is a contract for 31.20the improvement of real property. 31.21    (g) A sale of tangible personal property that is awarded as prizes is a retail sale and 31.22is not considered a sale of property for resale. 31.23    (h) A sale of tangible personal property utilized or employed in the furnishing or 31.24providing of services under subdivision 3, paragraph (g), clause (1), including, but not 31.25limited to, property given as promotional items, is a retail sale and is not considered a 31.26sale of property for resale. 31.27    (i) A sale of tangible personal property used in conducting lawful gambling under 31.28chapter 349 or the State Lottery under chapter 349A, including, but not limited to, 31.29property given as promotional items, is a retail sale and is not considered a sale of 31.30property for resale. 31.31    (j) A sale of machines, equipment, or devices that are used to furnish, provide, or 31.32dispense goods or services, including, but not limited to, coin-operated devices, is a retail 31.33sale and is not considered a sale of property for resale. 31.34    (k) In the case of a lease, a retail sale occurs (1) when an obligation to make a lease 31.35payment becomes due under the terms of the agreement or the trade practices of the lessor 31.36or new text begin ; new text end (2) in the case of a lease of a motor vehicle, as defined in section 297B.01, subdivision 32.111 , but excluding vehicles with a manufacturer's gross vehicle weight rating greater than 32.210,000 pounds and rentals of vehicles for not more than 28 days, at the time the lease is 32.3executed new text begin ; or (3) for rent-to-own or lease-to-own used vehicles where the lessee may new text end 32.4 new text begin purchase or return the vehicle at any time without penalty, at the time each payment is new text end 32.5 new text begin made under the terms of the agreement new text end . 32.6    (l) In the case of a conditional sales contract, a retail sale occurs upon the transfer of 32.7title or possession of the tangible personal property. 32.8    (m) A sale of a bundled transaction in which one or more of the products included 32.9in the bundle is a taxable product is a retail sale, except that if one of the products 32.10is a telecommunication service, ancillary service, Internet access, or audio or video 32.11programming service, and the seller has maintained books and records identifying through 32.12reasonable and verifiable standards the portions of the price that are attributable to the 32.13distinct and separately identifiable products, then the products are not considered part of a 32.14bundled transaction. For purposes of this paragraph: 32.15    (1) the books and records maintained by the seller must be maintained in the regular 32.16course of business, and do not include books and records created and maintained by the 32.17seller primarily for tax purposes; 32.18    (2) books and records maintained in the regular course of business include, but are 32.19not limited to, financial statements, general ledgers, invoicing and billing systems and 32.20reports, and reports for regulatory tariffs and other regulatory matters; and 32.21    (3) books and records are maintained primarily for tax purposes when the books 32.22and records identify taxable and nontaxable portions of the price, but the seller maintains 32.23other books and records that identify different prices attributable to the distinct products 32.24included in the same bundled transaction. 32.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for leases entered into after June new text end 32.26 new text begin 30, 2012. new text end 32.27    Sec. 4. Minnesota Statutes 2010, section 297A.67, subdivision 7, is amended to read: 32.28    Subd. 7. Drugs; medical devices. (a) Sales of the following drugs and medical 32.29devices for human use are exempt: 32.30    (1) drugs, including over-the-counter drugs; 32.31    (2) single-use finger-pricking devices for the extraction of blood and other single-use 32.32devices and single-use diagnostic agents used in diagnosing, monitoring, or treating 32.33diabetes; 32.34    (3) insulin and medical oxygen for human use, regardless of whether prescribed 32.35or sold over the counter; 33.1    (4) prosthetic devices; 33.2    (5) durable medical equipment for home use only; 33.3    (6) mobility enhancing equipment; 33.4    (7) prescription corrective eyeglasses; and 33.5    (8) kidney dialysis equipment, including repair and replacement parts. 33.6 new text begin (b) Items purchased in transactions covered by: new text end 33.7 new text begin (1) Medicare as defined under title XVIII of the Social Security Act, United States new text end 33.8 new text begin Code, title 42, sections 1395, et seq.; or new text end 33.9 new text begin (2) Medicaid as defined under title XIX of the Social Security Act, United States new text end 33.10 new text begin Code, title 42, sections 1396, et seq., are exempt. new text end 33.11    (b) new text begin (c) new text end For purposes of this subdivision: 33.12    (1) "Drug" means a compound, substance, or preparation, and any component of 33.13a compound, substance, or preparation, other than food and food ingredients, dietary 33.14supplements, or alcoholic beverages that is: 33.15    (i) recognized in the official United States Pharmacopoeia, official Homeopathic 33.16Pharmacopoeia of the United States, or official National Formulary, and supplement 33.17to any of them; 33.18    (ii) intended for use in the diagnosis, cure, mitigation, treatment, or prevention 33.19of disease; or 33.20    (iii) intended to affect the structure or any function of the body. 33.21    (2) "Durable medical equipment" means equipment, including repair and 33.22replacement parts new text begin , including single patient use items new text end , but not including mobility enhancing 33.23equipment, that: 33.24    (i) can withstand repeated use; 33.25    (ii) is primarily and customarily used to serve a medical purpose; 33.26    (iii) generally is not useful to a person in the absence of illness or injury; and 33.27    (iv) is not worn in or on the body. 33.28    For purposes of this clause, "repair and replacement parts" includes all components 33.29or attachments used in conjunction with the durable medical equipment, but does not 33.30include new text begin including new text end repair and replacement parts which are for single patient use only. 33.31    (3) "Mobility enhancing equipment" means equipment, including repair and 33.32replacement parts, but not including durable medical equipment, that: 33.33    (i) is primarily and customarily used to provide or increase the ability to move from 33.34one place to another and that is appropriate for use either in a home or a motor vehicle; 33.35    (ii) is not generally used by persons with normal mobility; and 34.1    (iii) does not include any motor vehicle or equipment on a motor vehicle normally 34.2provided by a motor vehicle manufacturer. 34.3    (4) "Over-the-counter drug" means a drug that contains a label that identifies the 34.4product as a drug as required by Code of Federal Regulations, title 21, section 201.66. The 34.5label must include a "drug facts" panel or a statement of the active ingredients with a list of 34.6those ingredients contained in the compound, substance, or preparation. Over-the-counter 34.7drugs do not include grooming and hygiene products, regardless of whether they otherwise 34.8meet the definition. "Grooming and hygiene products" are soaps, cleaning solutions, 34.9shampoo, toothpaste, mouthwash, antiperspirants, and suntan lotions and sunscreens. 34.10    (5) "Prescribed" and "prescription" means a direction in the form of an order, 34.11formula, or recipe issued in any form of oral, written, electronic, or other means of 34.12transmission by a duly licensed health care professional. 34.13    (6) "Prosthetic device" means a replacement, corrective, or supportive device, 34.14including repair and replacement parts, worn on or in the body to: 34.15    (i) artificially replace a missing portion of the body; 34.16    (ii) prevent or correct physical deformity or malfunction; or 34.17    (iii) support a weak or deformed portion of the body. 34.18Prosthetic device does not include corrective eyeglasses. 34.19    (7) "Kidney dialysis equipment" means equipment that: 34.20    (i) is used to remove waste products that build up in the blood when the kidneys are 34.21not able to do so on their own; and 34.22    (ii) can withstand repeated use, including multiple use by a single patient, 34.23notwithstanding the provisions of clause (2). 34.24 new text begin (8) A transaction is covered by Medicare or Medicaid if any portion of the cost of new text end 34.25 new text begin the item purchased in the transaction is paid for or reimbursed by the federal government new text end 34.26 new text begin or the state of Minnesota pursuant to the Medicare or Medicaid program, by a private new text end 34.27 new text begin insurance company administering the Medicare or Medicaid program on behalf of the new text end 34.28 new text begin federal government or the state of Minnesota, or by a managed care organization for the new text end 34.29 new text begin benefit of a patient enrolled in a prepaid program that furnishes medical services in lieu new text end 34.30 new text begin of conventional Medicare or Medicaid coverage pursuant to agreement with the federal new text end 34.31 new text begin government or the state of Minnesota. new text end 34.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 34.33 new text begin June 30, 2012. new text end 35.1    Sec. 5. Minnesota Statutes 2010, section 297A.67, is amended by adding a subdivision 35.2to read: 35.3     new text begin Subd. 7a. new text end new text begin Accessories and supplies. new text end new text begin Accessories and supplies required for new text end 35.4 new text begin the effective use of durable medical equipment for home use only, or purchased in new text end 35.5 new text begin a transaction covered by Medicare or Medicaid, that are not already exempt under new text end 35.6 new text begin subdivision 7 are exempt. Accessories and supplies for the effective use of a prosthetic new text end 35.7 new text begin device that are not already exempt under subdivision 7 are exempt. For purposes of new text end 35.8 new text begin this subdivision, "durable medical equipment," "prosthetic device," "Medicare," and new text end 35.9 new text begin "Medicaid" have the meanings given in subdivision 7. new text end 35.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 35.11 new text begin June 30, 2012. new text end 35.12    Sec. 6. Minnesota Statutes 2010, section 297A.68, subdivision 5, is amended to read: 35.13    Subd. 5. Capital equipment. (a) Capital equipment is exempt. new text begin Except as provided new text end 35.14 new text begin in paragraphs (e) and (f), new text end the tax must be imposed and collected as if the rate under section 35.15297A.62, subdivision 1 , applied, and then refunded in the manner provided in section 35.16297A.75 . 35.17"Capital equipment" means machinery and equipment purchased or leased, and used 35.18in this state by the purchaser or lessee primarily for manufacturing, fabricating, mining, 35.19or refining tangible personal property to be sold ultimately at retail if the machinery and 35.20equipment are essential to the integrated production process of manufacturing, fabricating, 35.21mining, or refining. Capital equipment also includes machinery and equipment 35.22used primarily to electronically transmit results retrieved by a customer of an online 35.23computerized data retrieval system. 35.24(b) Capital equipment includes, but is not limited to: 35.25(1) machinery and equipment used to operate, control, or regulate the production 35.26equipment; 35.27(2) machinery and equipment used for research and development, design, quality 35.28control, and testing activities; 35.29(3) environmental control devices that are used to maintain conditions such as 35.30temperature, humidity, light, or air pressure when those conditions are essential to and are 35.31part of the production process; 35.32(4) materials and supplies used to construct and install machinery or equipment; 35.33(5) repair and replacement parts, including accessories, whether purchased as spare 35.34parts, repair parts, or as upgrades or modifications to machinery or equipment; 35.35(6) materials used for foundations that support machinery or equipment; 36.1(7) materials used to construct and install special purpose buildings used in the 36.2production process; 36.3(8) ready-mixed concrete equipment in which the ready-mixed concrete is mixed 36.4as part of the delivery process regardless if mounted on a chassis, repair parts for 36.5ready-mixed concrete trucks, and leases of ready-mixed concrete trucks; and 36.6(9) machinery or equipment used for research, development, design, or production 36.7of computer software. 36.8(c) Capital equipment does not include the following: 36.9(1) motor vehicles taxed under chapter 297B; 36.10(2) machinery or equipment used to receive or store raw materials; 36.11(3) building materials, except for materials included in paragraph (b), clauses (6) 36.12and (7); 36.13(4) machinery or equipment used for nonproduction purposes, including, but not 36.14limited to, the following: plant security, fire prevention, first aid, and hospital stations; 36.15support operations or administration; pollution control; and plant cleaning, disposal of 36.16scrap and waste, plant communications, space heating, cooling, lighting, or safety; 36.17(5) farm machinery and aquaculture production equipment as defined by section 36.18297A.61 , subdivisions 12 and 13; 36.19(6) machinery or equipment purchased and installed by a contractor as part of an 36.20improvement to real property; 36.21(7) machinery and equipment used by restaurants in the furnishing, preparing, or 36.22serving of prepared foods as defined in section 297A.61, subdivision 31; 36.23(8) machinery and equipment used to furnish the services listed in section 297A.61, 36.24subdivision 3 , paragraph (g), clause (6), items (i) to (vi) and (viii); 36.25(9) machinery or equipment used in the transportation, transmission, or distribution 36.26of petroleum, liquefied gas, natural gas, water, or steam, in, by, or through pipes, lines, 36.27tanks, mains, or other means of transporting those products. This clause does not apply to 36.28machinery or equipment used to blend petroleum or biodiesel fuel as defined in section 36.29239.77 ; or 36.30(10) any other item that is not essential to the integrated process of manufacturing, 36.31fabricating, mining, or refining. 36.32(d) For purposes of this subdivision: 36.33(1) "Equipment" means independent devices or tools separate from machinery but 36.34essential to an integrated production process, including computers and computer software, 36.35used in operating, controlling, or regulating machinery and equipment; and any subunit or 37.1assembly comprising a component of any machinery or accessory or attachment parts of 37.2machinery, such as tools, dies, jigs, patterns, and molds. 37.3(2) "Fabricating" means to make, build, create, produce, or assemble components or 37.4property to work in a new or different manner. 37.5(3) "Integrated production process" means a process or series of operations through 37.6which tangible personal property is manufactured, fabricated, mined, or refined. For 37.7purposes of this clause, (i) manufacturing begins with the removal of raw materials 37.8from inventory and ends when the last process prior to loading for shipment has been 37.9completed; (ii) fabricating begins with the removal from storage or inventory of the 37.10property to be assembled, processed, altered, or modified and ends with the creation 37.11or production of the new or changed product; (iii) mining begins with the removal of 37.12overburden from the site of the ores, minerals, stone, peat deposit, or surface materials and 37.13ends when the last process before stockpiling is completed; and (iv) refining begins with 37.14the removal from inventory or storage of a natural resource and ends with the conversion 37.15of the item to its completed form. 37.16(4) "Machinery" means mechanical, electronic, or electrical devices, including 37.17computers and computer software, that are purchased or constructed to be used for the 37.18activities set forth in paragraph (a), beginning with the removal of raw materials from 37.19inventory through completion of the product, including packaging of the product. 37.20(5) "Machinery and equipment used for pollution control" means machinery and 37.21equipment used solely to eliminate, prevent, or reduce pollution resulting from an activity 37.22described in paragraph (a). 37.23(6) "Manufacturing" means an operation or series of operations where raw materials 37.24are changed in form, composition, or condition by machinery and equipment and which 37.25results in the production of a new article of tangible personal property. For purposes of 37.26this subdivision, "manufacturing" includes the generation of electricity or steam to be 37.27sold at retail. 37.28(7) "Mining" means the extraction of minerals, ores, stone, or peat. 37.29(8) "Online data retrieval system" means a system whose cumulation of information 37.30is equally available and accessible to all its customers. 37.31(9) "Primarily" means machinery and equipment used 50 percent or more of the time 37.32in an activity described in paragraph (a). 37.33(10) "Refining" means the process of converting a natural resource to an intermediate 37.34or finished product, including the treatment of water to be sold at retail. 38.1(11) This subdivision does not apply to telecommunications equipment as 38.2provided in subdivision 35, and does not apply to wire, cable, fiber, poles, or conduit 38.3for telecommunications services. 38.4 new text begin (e) Materials exempt under this section may be purchased without imposing and new text end 38.5 new text begin collecting the tax and applying for a refund under section 297A.75, if: new text end 38.6 new text begin (1) for calendar years 2013 and 2014, the purchaser employed not more than 20 new text end 38.7 new text begin full-time employees at any time during calendar year 2010 and was not an affiliate or new text end 38.8 new text begin subsidiary of a business dominant in its field of operation; and new text end 38.9 new text begin (2) for calendar year 2015, the purchaser employed not more than 50 full-time new text end 38.10 new text begin employees at any time during calendar year 2010 and was not an affiliate or subsidiary of new text end 38.11 new text begin a business dominant in its field of operation. new text end 38.12 new text begin (f) For calendar year 2016 and thereafter, all purchases exempt under this section new text end 38.13 new text begin may be purchased without imposing and collecting the tax and applying the refund new text end 38.14 new text begin under section 297A.75. new text end 38.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 38.16 new text begin December 31, 2012. new text end 38.17    Sec. 7. Minnesota Statutes 2011 Supplement, section 297A.68, subdivision 42, is 38.18amended to read: 38.19    Subd. 42. Qualified data centers. (a) Purchases of enterprise information 38.20technology equipment and computer software for use in a qualified data center are exempt. 38.21The tax on purchases exempt under this paragraph must be imposed and collected as if 38.22the rate under section 297A.62, subdivision 1, applied, and then refunded after June 30, 38.232013, in the manner provided in section 297A.75. This exemption includes enterprise 38.24information technology equipment and computer software purchased to replace or upgrade 38.25enterprise information technology equipment and computer software in a qualified data 38.26center. 38.27(b) Electricity used or consumed in the operation of a qualified data center is exempt. 38.28(c) For purposes of this subdivision, "qualified data center" means a facility in 38.29Minnesota: 38.30(1) that is comprised of one or more buildings that consist in the aggregate of at 38.31least 30,000 square feet, and that are located on a single parcel or on contiguous parcels, 38.32where the total cost of construction or refurbishment, investment in enterprise information 38.33technology equipment, and computer software is at least $50,000,000 new text begin $30,000,000 new text end within 38.34a 24-month new text begin three-year new text end period; 39.1(2) that is constructed or substantially refurbished after June 30, 2012, where 39.2"substantially refurbished" means that at least 30,000 square feet have been rebuilt or 39.3modified; and 39.4(3) that is used to house enterprise information technology equipment, where the 39.5facility has the following characteristics: 39.6(i) uninterruptible power supplies, generator backup power, or both; 39.7(ii) sophisticated fire suppression and prevention systems; and 39.8(iii) enhanced security. A facility will be considered to have enhanced security if it 39.9has restricted access to the facility to selected personnel; permanent security guards; video 39.10camera surveillance; an electronic system requiring pass codes, keycards, or biometric 39.11scans, such as hand scans and retinal or fingerprint recognition; or similar security features. 39.12In determining whether the facility has the required square footage, the square 39.13footage of the following spaces shall be included if the spaces support the operation 39.14of enterprise information technology equipment: office space, meeting space, and 39.15mechanical and other support facilities. 39.16(d) For purposes of this subdivision, "enterprise information technology equipment" 39.17means computers and equipment supporting computing, networking, or data storage, 39.18including servers and routers. It includes, but is not limited to: cooling systems, 39.19cooling towers, and other temperature control infrastructure; power infrastructure for 39.20transformation, distribution, or management of electricity used for the maintenance 39.21and operation of a qualified data center, including but not limited to exterior dedicated 39.22business-owned substations, backup power generation systems, battery systems, and 39.23related infrastructure; and racking systems, cabling, and trays, which are necessary for 39.24the maintenance and operation of the qualified data center. 39.25(e) A qualified data center may claim the exemptions in this subdivision for 39.26purchases made either within 20 years of the date of its first purchase qualifying for the 39.27exemption under paragraph (a), or by June 30, 2042, whichever is earlier. 39.28(f) The purpose of this exemption is to create jobs in the construction and data 39.29center industries. 39.30(g) This subdivision is effective for sales and purchases made after June 30, 2012, 39.31and before July 1, 2042. 39.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 39.33 new text begin June 30, 2012. new text end 39.34    Sec. 8. Minnesota Statutes 2010, section 297A.70, is amended by adding a subdivision 39.35to read: 40.1     new text begin Subd. 18. new text end new text begin Nursing homes and boarding care homes. new text end new text begin (a) All sales, except those new text end 40.2 new text begin listed in paragraph (b), to a nursing home licensed under section 144A.02 or a boarding new text end 40.3 new text begin care home certified as a nursing facility under title 19 of the Social Security Act are new text end 40.4 new text begin exempt if the facility: new text end 40.5 new text begin (1) is exempt from federal income taxation pursuant to section 501(c)(3) of the new text end 40.6 new text begin Internal Revenue Code; and new text end 40.7 new text begin (2) is certified to participate in the medical assistance program under title 19 of the new text end 40.8 new text begin Social Security Act, or certifies to the commissioner that it does not discharge residents new text end 40.9 new text begin due to the inability to pay. new text end 40.10 new text begin (b) This exemption does not apply to the following sales: new text end 40.11 new text begin (1) building, construction, or reconstruction materials purchased by a contractor new text end 40.12 new text begin or a subcontractor as a part of a lump-sum contract or similar type of contract with a new text end 40.13 new text begin guaranteed maximum price covering both labor and materials for use in the construction, new text end 40.14 new text begin alteration, or repair of a building or facility; new text end 40.15 new text begin (2) construction materials purchased by tax-exempt entities or their contractors to new text end 40.16 new text begin be used in constructing buildings or facilities that will not be used principally by the new text end 40.17 new text begin tax-exempt entities; new text end 40.18 new text begin (3) lodging as defined under section new text end new text begin 297A.61, subdivision 3 new text end new text begin , paragraph (g), clause new text end 40.19 new text begin (2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in section new text end 40.20 new text begin 297A.67, subdivision 2 new text end new text begin ; and new text end 40.21 new text begin (4) leasing of a motor vehicle as defined in section new text end new text begin 297B.01, subdivision 11 new text end new text begin , except new text end 40.22 new text begin as provided in paragraph (c). new text end 40.23 new text begin (c) This exemption applies to the leasing of a motor vehicle as defined in section new text end 40.24 new text begin 297B.01, subdivision 11 new text end new text begin , only if the vehicle is: new text end 40.25 new text begin (1) a truck, as defined in section new text end new text begin ; a bus, as defined in section new text end new text begin ; or a new text end 40.26 new text begin passenger automobile, as defined in section new text end new text begin , if the automobile is designed and new text end 40.27 new text begin used for carrying more than nine persons including the driver; and new text end 40.28 new text begin (2) intended to be used primarily to transport tangible personal property or residents new text end 40.29 new text begin of the nursing home or boarding care home. new text end 40.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 40.31 new text begin June 30, 2012. new text end 40.32    Sec. 9. Minnesota Statutes 2011 Supplement, section 297A.75, subdivision 1, is 40.33amended to read: 41.1    Subdivision 1. Tax collected. The tax on the gross receipts from the sale of the 41.2following exempt items must be imposed and collected as if the sale were taxable and the 41.3rate under section 297A.62, subdivision 1, applied. The exempt items include: 41.4    (1) capital equipment exempt under section 297A.68, subdivision 5; 41.5    (2) new text begin (1) new text end building materials for an agricultural processing facility exempt under section 41.6297A.71, subdivision 13 ; 41.7    (3) new text begin (2) new text end building materials for mineral production facilities exempt under section 41.8297A.71, subdivision 14 ; 41.9    (4) new text begin (3) new text end building materials for correctional facilities under section 297A.71, 41.10subdivision 3 ; 41.11    (5) new text begin (4) new text end building materials used in a residence for disabled veterans exempt under 41.12section 297A.71, subdivision 11; 41.13    (6) new text begin (5) new text end elevators and building materials exempt under section 297A.71, subdivision 41.1412 ; 41.15    (7) new text begin (6) new text end building materials for the Long Lake Conservation Center exempt under 41.16section 297A.71, subdivision 17; 41.17    (8) new text begin (7) new text end materials and supplies for qualified low-income housing under section 41.18297A.71, subdivision 23 ; 41.19    (9) new text begin (8) new text end materials, supplies, and equipment for municipal electric utility facilities 41.20under section 297A.71, subdivision 35; 41.21    (10) new text begin (9) new text end equipment and materials used for the generation, transmission, and 41.22distribution of electrical energy and an aerial camera package exempt under section 41.23297A.68 , subdivision 37; 41.24    (11) new text begin (10) new text end tangible personal property and taxable services and construction materials, 41.25supplies, and equipment exempt under section 297A.68, subdivision 41; 41.26    (12) new text begin (11) new text end commuter rail vehicle and repair parts under section 297A.70, subdivision 41.273, clause (11); 41.28    (13) new text begin (12) new text end materials, supplies, and equipment for construction or improvement of 41.29projects and facilities under section 297A.71, subdivision 40; 41.30(14) new text begin (13) new text end materials, supplies, and equipment for construction or improvement of a 41.31meat processing facility exempt under section 297A.71, subdivision 41; 41.32(15) new text begin (14) new text end materials, supplies, and equipment for construction, improvement, or 41.33expansion of an aerospace defense manufacturing facility exempt under section 297A.71, 41.34subdivision 42; and 41.35(16) new text begin (15) new text end enterprise information technology equipment and computer software for 41.36use in a qualified data center exempt under section 297A.68, subdivision 42. 42.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 42.2 new text begin December 31, 2015. new text end 42.3    Sec. 10. Minnesota Statutes 2011 Supplement, section 297A.75, subdivision 2, is 42.4amended to read: 42.5    Subd. 2. Refund; eligible persons. Upon application on forms prescribed by the 42.6commissioner, a refund equal to the tax paid on the gross receipts of the exempt items 42.7must be paid to the applicant. Only the following persons may apply for the refund: 42.8    (1) for subdivision 1, clauses (1) to (3) new text begin and (2) new text end , the applicant must be the purchaser; 42.9    (2) for subdivision 1, clauses (4) new text begin (3) new text end and (7) new text begin (6) new text end , the applicant must be the 42.10governmental subdivision; 42.11    (3) for subdivision 1, clause (5) new text begin (4) new text end , the applicant must be the recipient of the 42.12benefits provided in United States Code, title 38, chapter 21; 42.13    (4) for subdivision 1, clause (6) new text begin (5) new text end , the applicant must be the owner of the 42.14homestead property; 42.15    (5) for subdivision 1, clause (8) new text begin (7) new text end , the owner of the qualified low-income housing 42.16project; 42.17    (6) for subdivision 1, clause (9) new text begin (8) new text end , the applicant must be a municipal electric utility 42.18or a joint venture of municipal electric utilities; 42.19    (7) for subdivision 1, clauses new text begin (9), new text end (10), (11) new text begin (13) new text end , (14), new text begin and new text end (15), and (16), the owner 42.20of the qualifying business; and 42.21    (8) for subdivision 1, clauses new text begin (11) and new text end (12) and (13), the applicant must be the 42.22governmental entity that owns or contracts for the project or facility. 42.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 42.24 new text begin December 31, 2015. new text end 42.25    Sec. 11. Minnesota Statutes 2011 Supplement, section 297A.75, subdivision 3, is 42.26amended to read: 42.27    Subd. 3. Application. (a) The application must include sufficient information 42.28to permit the commissioner to verify the tax paid. If the tax was paid by a contractor, 42.29subcontractor, or builder, under subdivision 1, clause new text begin (3), new text end (4), (5), (6), (7), (8), (9), (10), 42.30(11), (12), (13), (14), new text begin or new text end (15), or (16), the contractor, subcontractor, or builder must 42.31furnish to the refund applicant a statement including the cost of the exempt items and the 42.32taxes paid on the items unless otherwise specifically provided by this subdivision. The 42.33provisions of sections 289A.40 and 289A.50 apply to refunds under this section. 43.1    (b) An applicant may not file more than two applications per calendar year for 43.2refunds for taxes paid on capital equipment exempt under section 297A.68, subdivision 5. 43.3    (c) Total refunds for purchases of items in section 297A.71, subdivision 40, must not 43.4exceed $5,000,000 in fiscal years 2010 and 2011. Applications for refunds for purchases 43.5of items in sections 297A.70, subdivision 3, paragraph (a), clause (11), and 297A.71, 43.6subdivision 40, must not be filed until after June 30, 2009. 43.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 43.8 new text begin December 31, 2015. new text end 43.9    Sec. 12. Minnesota Statutes 2010, section 297A.815, subdivision 3, is amended to read: 43.10    Subd. 3. Motor vehicle lease sales tax revenue. (a) For purposes of this 43.11subdivision, "net revenue" means an amount equal to: 43.12    (1) the revenues, including interest and penalties, collected under this section new text begin and new text end 43.13 new text begin on the leases under section 297A.61, subdivision 4, paragraph (k), clause (3) new text end , during 43.14the fiscal year; less 43.15    (2) in fiscal year 2011, $30,100,000; in fiscal year 2012, $31,100,000; and in fiscal 43.16year 2013 and following fiscal years, $32,000,000. 43.17    (b) On or before June 30 of each fiscal year, the commissioner of revenue shall 43.18estimate the amount of the revenues and subtraction under paragraph (a) for the current 43.19fiscal year. 43.20    (c) On or after July 1 of the subsequent fiscal year, the commissioner of management 43.21and budget shall transfer the net revenue as estimated in paragraph (b) from the general 43.22fund, as follows: 43.23    (1) 50 percent to the greater Minnesota transit account; and 43.24    (2) 50 percent to the county state-aid highway fund. Notwithstanding any other law 43.25to the contrary, the commissioner of transportation shall allocate the funds transferred 43.26under this clause to the counties in the metropolitan area, as defined in section 473.121, 43.27subdivision 4, excluding the counties of Hennepin and Ramsey, so that each county shall 43.28receive of such amount the percentage that its population, as defined in section 477A.011, 43.29subdivision 3, estimated or established by July 15 of the year prior to the current calendar 43.30year, bears to the total population of the counties receiving funds under this clause. 43.31    (d) For fiscal years 2010 and 2011, the amount under paragraph (a), clause (1), must 43.32be calculated using the following percentages of the total revenues: 43.33    (1) for fiscal year 2010, 83.75 percent; and 43.34    (2) for fiscal year 2011, 93.75 percent. 44.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for leases entered into after June new text end 44.2 new text begin 30, 2012. new text end 44.3    Sec. 13. Minnesota Statutes 2011 Supplement, section 297B.03, is amended to read: 44.4297B.03 EXEMPTIONS. 44.5    There is specifically exempted from the provisions of this chapter and from 44.6computation of the amount of tax imposed by it the following: 44.7    (1) purchase or use, including use under a lease purchase agreement or installment 44.8sales contract made pursuant to section 465.71, of any motor vehicle by the United States 44.9and its agencies and instrumentalities and by any person described in and subject to the 44.10conditions provided in section 297A.67, subdivision 11; 44.11    (2) purchase or use of any motor vehicle by any person who was a resident of 44.12another state or country at the time of the purchase and who subsequently becomes a 44.13resident of Minnesota, provided the purchase occurred more than 60 days prior to the date 44.14such person began residing in the state of Minnesota and the motor vehicle was registered 44.15in the person's name in the other state or country; 44.16    (3) purchase or use of any motor vehicle by any person making a valid election to be 44.17taxed under the provisions of section 297A.90; 44.18    (4) purchase or use of any motor vehicle previously registered in the state of 44.19Minnesota when such transfer constitutes a transfer within the meaning of section 118, 44.20331, 332, 336, 337, 338, 351, 355, 368, 721, 731, 1031, 1033, or 1563(a) of the Internal 44.21Revenue Code; 44.22    (5) purchase or use of any vehicle owned by a resident of another state and leased 44.23to a Minnesota-based private or for-hire carrier for regular use in the transportation of 44.24persons or property in interstate commerce provided the vehicle is titled in the state of 44.25the owner or secured party, and that state does not impose a sales tax or sales tax on 44.26motor vehicles used in interstate commerce; 44.27    (6) purchase or use of a motor vehicle by a private nonprofit or public educational 44.28institution for use as an instructional aid in automotive training programs operated by the 44.29institution. "Automotive training programs" includes motor vehicle body and mechanical 44.30repair courses but does not include driver education programs; 44.31    (7) purchase of a motor vehicle by an ambulance service licensed under section 44.32144E.10 when that vehicle is equipped and specifically intended for emergency response 44.33or for providing ambulance service; 44.34    (8) purchase of a motor vehicle by or for a public library, as defined in section 44.35134.001, subdivision 2 , as a bookmobile or library delivery vehicle; 45.1    (9) purchase of a ready-mixed concrete truck; 45.2    (10) purchase or use of a motor vehicle by a town for use exclusively for road 45.3maintenance, including snowplows and dump trucks, but not including automobiles, 45.4vans, or pickup trucks; 45.5    (11) purchase or use of a motor vehicle by a corporation, society, association, 45.6foundation, or institution organized and operated exclusively for charitable, religious, 45.7or educational purposes, except a public school, university, or library, but only if the 45.8vehicle is: 45.9    (i) a truck, as defined in section 168.002, a bus, as defined in section 168.002, or a 45.10passenger automobile, as defined in section 168.002, if the automobile is designed and 45.11used for carrying more than nine persons including the driver; and 45.12    (ii) intended to be used primarily to transport tangible personal property or 45.13individuals, other than employees, to whom the organization provides service in 45.14performing its charitable, religious, or educational purpose; 45.15    (12) purchase of a motor vehicle for use by a transit provider exclusively to provide 45.16transit service is exempt if the transit provider is either (i) receiving financial assistance or 45.17reimbursement under section 174.24 or 473.384, or (ii) operating under section 174.29, 45.18473.388 , or 473.405; 45.19    (13) purchase or use of a motor vehicle by a qualified business, as defined in section 45.20469.310 , located in a job opportunity building zone, if the motor vehicle is principally 45.21garaged in the job opportunity building zone and is primarily used as part of or in direct 45.22support of the person's operations carried on in the job opportunity building zone. The 45.23exemption under this clause applies to sales, if the purchase was made and delivery 45.24received during the duration of the job opportunity building zone. The exemption under 45.25this clause also applies to any local sales and use tax; and 45.26    (14) purchase of a leased vehicle by the lessee who was a participant in a 45.27lease-to-own program from a charitable organization that is: 45.28    (i) described in section 501(c)(3) of the Internal Revenue Code; and 45.29    (ii) licensed as a motor vehicle lessor under section 168.27, subdivision 4 new text begin ; and new text end 45.30 new text begin (15) purchase of a motor vehicle used exclusively as a mobile medical unit for the new text end 45.31 new text begin provision of medical or dental services by a federally qualified health center, as defined new text end 45.32 new text begin under title 19 of the Social Security Act, as amended by Section 4161 of the Omnibus new text end 45.33 new text begin Budget Reconciliation Act of 1990 new text end . 45.34 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively for sales and purchases new text end 45.35 new text begin made after December 31, 2010. new text end 46.1    Sec. 14. new text begin REPEALER. new text end 46.2 new text begin Minnesota Statutes 2011 Supplement, section 289A.60, subdivision 31, new text end new text begin is repealed. new text end 46.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes due and payable after new text end 46.4 new text begin June 30, 2012. new text end 46.5ARTICLE 3 46.6PROPERTY TAX 46.7    Section 1. Minnesota Statutes 2010, section 6.91, subdivision 2, is amended to read: 46.8    Subd. 2. Benefits of participation. (a) A county or city that elects to participate in 46.9the standard measures program for 2011 is: (1) eligible for per capita reimbursement of 46.10$0.14 per capita, but not to exceed $25,000 for any government entity; and (2) exempt 46.11from levy limits under sections 275.70 to 275.74 for taxes payable in 2012, if levy limits 46.12are in effect. 46.13(b) Any county or city that elects to participate in the standard measures program 46.14for 2012 is eligible for per capita reimbursement of $0.14 per capita, but not to exceed 46.15$25,000 for any government entity new text begin , provided that for 2012, a county or city with a new text end 46.16 new text begin population over 2,500 must also participate in the expenditure-type reporting under section new text end 46.17 new text begin 471.703 in order to be eligible new text end . Any jurisdiction participating in the comprehensive 46.18performance measurement program is exempt from levy limits under sections 275.70 to 46.19275.74 for taxes payable in 2013 if levy limits are in effect. 46.20(c) Any county or city that elects to participate in the standard measures program for 46.212013 or any year thereafter is eligible for per capita reimbursement of $0.14 per capita, 46.22but not to exceed $25,000 for any government entity. Any jurisdiction participating in 46.23the comprehensive performance measurement program for 2013 or any year thereafter is 46.24exempt from levy limits under sections 275.70 to 275.74 for taxes payable in the following 46.25year, if levy limits are in effect. 46.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 46.27    Sec. 2. Minnesota Statutes 2011 Supplement, section 124D.4531, subdivision 1, 46.28is amended to read: 46.29    Subdivision 1. Career and technical levy. (a) A district with a career and technical 46.30program approved under this section for the fiscal year in which the levy is certified 46.31may levy an amount equal to the greater of: 46.32(1) $80 times the district's average daily membership in grades 9 through 12 for the 46.33fiscal year in which the levy is certified; or 47.1(2) 35 percent of approved expenditures in the fiscal year in which the levy is 47.2certified for the following: 47.3(i) salaries paid to essential, licensed personnel providing direct instructional 47.4services to students in that fiscal year, including extended contracts, for services rendered 47.5in the district's approved career and technical education programs; 47.6(ii) contracted services provided by a public or private agency other than a Minnesota 47.7school district or cooperative center under subdivision 7; 47.8(iii) necessary travel between instructional sites by licensed career and technical 47.9education personnel; 47.10(iv) necessary travel by licensed career and technical education personnel for 47.11vocational student organization activities held within the state for instructional purposes; 47.12(v) curriculum development activities that are part of a five-year plan for 47.13improvement based on program assessment; 47.14(vi) necessary travel by licensed career and technical education personnel for 47.15noncollegiate credit-bearing professional development; and 47.16(vii) specialized vocational instructional supplies. 47.17(b) Up to ten percent of a district's career and technical levy may be spent on 47.18equipment purchases. Districts using the career and technical levy for equipment 47.19purchases must report to the department on the improved learning opportunities for 47.20students that result from the investment in equipment. 47.21(c) The district must recognize the full amount of this levy as revenue for the fiscal 47.22year in which it is certified. 47.23(d) The amount of the levy certified under this subdivision may not exceed 47.24$17,850,000 for taxes payable in 2012, $15,520,000 for taxes payable in 2013, and 47.25$15,545,000 for taxes payable in 2014. 47.26(e) If the estimated levy exceeds the amount in paragraph (d), the commissioner 47.27must reduce the percentage in paragraph (a), clause (2), until the estimated levy no longer 47.28exceeds the limit in paragraph (d). 47.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2012 and later. new text end 47.30    Sec. 3. Minnesota Statutes 2011 Supplement, section 126C.40, subdivision 1, is 47.31amended to read: 47.32    Subdivision 1. To lease building or land. (a) When an independent or a special 47.33school district or a group of independent or special school districts finds it economically 47.34advantageous to rent or lease a building or land for any instructional purposes or for 47.35school storage or furniture repair, and it determines that the operating capital revenue 48.1authorized under section 126C.10, subdivision 13, is insufficient for this purpose, it may 48.2apply to the commissioner for permission to make an additional capital expenditure levy 48.3for this purpose. An application for permission to levy under this subdivision must contain 48.4financial justification for the proposed levy, the terms and conditions of the proposed 48.5lease, and a description of the space to be leased and its proposed use. 48.6    (b) The criteria for approval of applications to levy under this subdivision must 48.7include: the reasonableness of the price, the appropriateness of the space to the proposed 48.8activity, the feasibility of transporting pupils to the leased building or land, conformity 48.9of the lease to the laws and rules of the state of Minnesota, and the appropriateness of 48.10the proposed lease to the space needs and the financial condition of the district. The 48.11commissioner must not authorize a levy under this subdivision in an amount greater than 48.12the cost to the district of renting or leasing a building or land for approved purposes. 48.13The proceeds of this levy must not be used for custodial or other maintenance services. 48.14A district may not levy under this subdivision for the purpose of leasing or renting a 48.15district-owned building or site to itself. 48.16    (c) For agreements finalized after July 1, 1997, a district may not levy under this 48.17subdivision for the purpose of leasing: (1) a newly constructed building used primarily 48.18for regular kindergarten, elementary, or secondary instruction; or (2) a newly constructed 48.19building addition or additions used primarily for regular kindergarten, elementary, or 48.20secondary instruction that contains more than 20 percent of the square footage of the 48.21previously existing building. 48.22    (d) Notwithstanding paragraph (b), a district may levy under this subdivision for the 48.23purpose of leasing or renting a district-owned building or site to itself only if the amount 48.24is needed by the district to make payments required by a lease purchase agreement, 48.25installment purchase agreement, or other deferred payments agreement authorized by law, 48.26and the levy meets the requirements of paragraph (c). A levy authorized for a district by 48.27the commissioner under this paragraph may be in the amount needed by the district to 48.28make payments required by a lease purchase agreement, installment purchase agreement, 48.29or other deferred payments agreement authorized by law, provided that any agreement 48.30include a provision giving the school districts the right to terminate the agreement 48.31annually without penalty. 48.32    (e) The total levy under this subdivision for a district for any year must not exceed 48.33$150 times the resident pupil units for the fiscal year to which the levy is attributable. 48.34    (f) For agreements for which a review and comment have been submitted to the 48.35Department of Education after April 1, 1998, the term "instructional purpose" as used in 48.36this subdivision excludes expenditures on stadiums. 49.1    (g) The commissioner of education may authorize a school district to exceed the 49.2limit in paragraph (e) if the school district petitions the commissioner for approval. The 49.3commissioner shall grant approval to a school district to exceed the limit in paragraph (e) 49.4for not more than five years if the district meets the following criteria: 49.5    (1) the school district has been experiencing pupil enrollment growth in the 49.6preceding five years; 49.7    (2) the purpose of the increased levy is in the long-term public interest; 49.8    (3) the purpose of the increased levy promotes colocation of government services; 49.9and 49.10    (4) the purpose of the increased levy is in the long-term interest of the district by 49.11avoiding over construction of school facilities. 49.12    (h) A school district that is a member of an intermediate school district may include 49.13in its authority under this section the costs associated with leases of administrative and 49.14classroom space for intermediate school district programs. This authority must not exceed 49.15$43 times the adjusted marginal cost pupil units of the member districts. This authority is 49.16in addition to any other authority authorized under this section. 49.17    (i) In addition to the allowable capital levies in paragraph (a), for taxes payable in 49.182012 new text begin to 2023 new text end , a district that is a member of the "Technology and Information Education 49.19Systems" data processing joint board, that finds it economically advantageous to enter into 49.20a lease agreement to finance improvements to a building new text begin and land new text end for a group of school 49.21districts or special school districts for staff development purposes, may levy for its portion 49.22of lease costs attributed to the district within the total levy limit in paragraph (e). The total 49.23levy authority under this paragraph shall not exceed $632,000. 49.24 new text begin (j) In addition to the allowable capital levies in paragraph (a), a school district new text end 49.25 new text begin that is a member of the St. Croix River Education District that finds it economically new text end 49.26 new text begin advantageous to enter into a lease purchase agreement for a building and land for the St. new text end 49.27 new text begin Croix River Education District may levy for its portion of lease costs attributed to the new text end 49.28 new text begin district within the total levy limit in paragraph (e). The authority under this paragraph is new text end 49.29 new text begin effective for taxes payable in 2013 to 2028. new text end 49.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2013 and later. new text end 49.31    Sec. 4. Minnesota Statutes 2010, section 275.025, subdivision 1, is amended to read: 49.32    Subdivision 1. Levy amount. The state general levy is levied against 49.33commercial-industrial property and seasonal residential recreational property, as defined 49.34in this section. The state general levy base amount new text begin for commercial-industrial property new text end 49.35is $592,000,000 new text begin $742,000,000 new text end for taxes payable in 2002 new text begin 2013 through 2016. The state new text end 50.1 new text begin general levy base amount for seasonal recreational property is $41,200,000 for taxes new text end 50.2 new text begin payable in 2013 through 2016 new text end . For taxes payable in subsequent years, the levy base 50.3amount is increased each year by multiplying the levy base amount for the prior year by 50.4the sum of one plus the rate of increase, if any, in the implicit price deflator for government 50.5consumption expenditures and gross investment for state and local governments prepared 50.6by the Bureau of Economic Analysts of the United States Department of Commerce for the 50.712-month period ending March 31 of the year prior to the year the taxes are payable. new text begin For new text end 50.8 new text begin taxes payable in 2017, the state general levy is $668,700,000 for commercial-industrial new text end 50.9 new text begin property and $36,450,000 for seasonal residential recreational property. For taxes payable new text end 50.10 new text begin in 2018, the state general levy is $594,400,000 for commercial-industrial property new text end 50.11 new text begin and $32,400,000 for seasonal residential recreational property. For taxes payable in new text end 50.12 new text begin 2019, the state general levy is $520,100,000 for commercial-industrial property and new text end 50.13 new text begin $28,350,000 for seasonal residential recreational property. For taxes payable in 2020, the new text end 50.14 new text begin state general levy is $445,800,000 for commercial-industrial property and $24,300,000 new text end 50.15 new text begin for seasonal residential recreational property. For taxes payable in 2021, the state new text end 50.16 new text begin general levy is $371,500,000 for commercial-industrial property and $20,250,000 new text end 50.17 new text begin for seasonal residential recreational property. For taxes payable in 2022, the state new text end 50.18 new text begin general levy is $297,200,000 for commercial-industrial property and $16,200,000 for new text end 50.19 new text begin seasonal residential recreational property. For taxes payable in 2023, the state general new text end 50.20 new text begin levy is $222,900,000 for commercial-industrial property and $12,150,000 for seasonal new text end 50.21 new text begin residential recreational property. For taxes payable in 2024, the state general levy is new text end 50.22 new text begin $148,600,000 for commercial-industrial property and $8,100,000 for seasonal residential new text end 50.23 new text begin recreational property. For taxes payable in 2025, the state general levy is $74,300,000 new text end 50.24 new text begin for commercial-industrial property and $4,050,000 for seasonal residential recreational new text end 50.25 new text begin property. new text end The tax under this section is not treated as a local tax rate under section 469.177 50.26and is not the levy of a governmental unit under chapters 276A and 473F. 50.27The commissioner shall increase or decrease the preliminary or final rate for a year 50.28as necessary to account for errors and tax base changes that affected a preliminary or final 50.29rate for either of the two preceding years. Adjustments are allowed to the extent that the 50.30necessary information is available to the commissioner at the time the rates for a year must 50.31be certified, and for the following reasons: 50.32(1) an erroneous report of taxable value by a local official; 50.33(2) an erroneous calculation by the commissioner; and 50.34(3) an increase or decrease in taxable value for commercial-industrial or seasonal 50.35residential recreational property reported on the abstracts of tax lists submitted under 51.1section 275.29 that was not reported on the abstracts of assessment submitted under 51.2section 270C.89 for the same year. 51.3The commissioner may, but need not, make adjustments if the total difference in the tax 51.4levied for the year would be less than $100,000. 51.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2013 and new text end 51.6 new text begin thereafter. new text end 51.7    Sec. 5. Minnesota Statutes 2010, section 275.025, subdivision 4, is amended to read: 51.8    Subd. 4. Apportionment and levy of state general tax. Ninety-five percent of The 51.9state general tax must be levied by applying a uniform rate to all commercial-industrial tax 51.10capacity and five percent of the state general tax must be levied by applying a uniform 51.11rate to all seasonal residential recreational tax capacity. On or before October 1 each 51.12year, the commissioner of revenue shall certify the preliminary state general levy rates to 51.13each county auditor that must be used to prepare the notices of proposed property taxes 51.14for taxes payable in the following year. By January 1 of each year, the commissioner 51.15shall certify the final state general levy rate new text begin rates new text end to each county auditor that shall be 51.16used in spreading taxes. 51.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2013 and new text end 51.18 new text begin thereafter. new text end 51.19    Sec. 6. Minnesota Statutes 2010, section 275.065, subdivision 1, is amended to read: 51.20    Subdivision 1. Proposed levy. (a) Notwithstanding any law or charter to the 51.21contrary, on or before September 15, each taxing authority, other than a school district, 51.22shall adopt a proposed budget and shall certify to the county auditor the proposed or, in 51.23the case of a town, the final property tax levy for taxes payable in the following year. new text begin All new text end 51.24 new text begin counties and home rule charter or statutory cities with a population of more than 2,500, new text end 51.25 new text begin shall also provide to the county auditor the county or city Web site, if there is one, where new text end 51.26 new text begin the public is able to access the budget information required to be reported under section new text end 51.27 new text begin 471.703. new text end 51.28    (b) On or before September 30, each school district that has not mutually agreed 51.29with its home county to extend this date shall certify to the county auditor the proposed 51.30property tax levy for taxes payable in the following year. Each school district that has 51.31agreed with its home county to delay the certification of its proposed property tax levy 51.32must certify its proposed property tax levy for the following year no later than October 51.337. The school district shall certify the proposed levy as: 52.1    (1) a specific dollar amount by school district fund, broken down between 52.2voter-approved and non-voter-approved levies and between referendum market value 52.3and tax capacity levies; or 52.4    (2) the maximum levy limitation certified by the commissioner of education 52.5according to section 126C.48, subdivision 1. 52.6    (c) If the board of estimate and taxation or any similar board that establishes 52.7maximum tax levies for taxing jurisdictions within a first class city certifies the maximum 52.8property tax levies for funds under its jurisdiction by charter to the county auditor by 52.9September 15, the city shall be deemed to have certified its levies for those taxing 52.10jurisdictions. 52.11    (d) For purposes of this section, "taxing authority" includes all home rule and 52.12statutory cities, towns, counties, school districts, and special taxing districts as defined 52.13in section 275.066. Intermediate school districts that levy a tax under chapter 124 or 52.14136D, joint powers boards established under sections 123A.44 to 123A.446, and Common 52.15School Districts No. 323, Franconia, and No. 815, Prinsburg, are also special taxing 52.16districts for purposes of this section. 52.17(e) At the meeting at which the taxing authority, other than a town, adopts its 52.18proposed tax levy under paragraph (a) or (b), the taxing authority shall announce the 52.19time and place of its subsequent regularly scheduled meetings at which the budget and 52.20levy will be discussed and at which the public will be allowed to speak. The time and 52.21place of those meetings new text begin The following information new text end must be included in the proceedings 52.22or summary of proceedings published in the official newspaper of the taxing authority 52.23under section 123B.09, 375.12, or 412.191 new text begin : new text end 52.24 new text begin (1) the time and place of the meetings described in this paragraph; and new text end 52.25 new text begin (2) a statement that the budget information required to be reported under section new text end 52.26 new text begin 471.703 is available on the county or city Web site, if there is one new text end . 52.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2012. new text end 52.28    Sec. 7. Minnesota Statutes 2010, section 275.065, subdivision 3, is amended to read: 52.29    Subd. 3. Notice of proposed property taxes. (a) The county auditor shall prepare 52.30and the county treasurer shall deliver after November 10 and on or before November 24 52.31each year, by first class mail to each taxpayer at the address listed on the county's current 52.32year's assessment roll, a notice of proposed property taxes. Upon written request by 52.33the taxpayer, the treasurer may send the notice in electronic form or by electronic mail 52.34instead of on paper or by ordinary mail. 52.35    (b) The commissioner of revenue shall prescribe the form of the notice. 53.1    (c) The notice must inform taxpayers that it contains the amount of property taxes 53.2each taxing authority proposes to collect for taxes payable the following year. In the 53.3case of a town, or in the case of the state general tax, the final tax amount will be its 53.4proposed tax. The notice must clearly state for each city that has a population over 500, 53.5county, school district, regional library authority established under section 134.201, and 53.6metropolitan taxing districts as defined in paragraph (i), the time and place of a meeting 53.7for each taxing authority in which the budget and levy will be discussed and public input 53.8allowed, prior to the final budget and levy determination. new text begin The notice must clearly state new text end 53.9 new text begin for each county and for each city with a population of more than 2,500 that the budget new text end 53.10 new text begin information required to be reported under section 471.703 is available on the county or new text end 53.11 new text begin city Web site, if there is one. new text end The taxing authorities must provide the county auditor with 53.12the information to be included in the notice on or before the time it certifies its proposed 53.13levy under subdivision 1. The public must be allowed to speak at that meeting, which 53.14must occur after November 24 and must not be held before 6:00 p.m. It must provide a 53.15telephone number for the taxing authority that taxpayers may call if they have questions 53.16related to the notice and an address where comments will be received by mail, except that 53.17no notice required under this section shall be interpreted as requiring the printing of a 53.18personal telephone number or address as the contact information for a taxing authority. If 53.19a taxing authority does not maintain public offices where telephone calls can be received 53.20by the authority, the authority may inform the county of the lack of a public telephone 53.21number and the county shall not list a telephone number for that taxing authority. 53.22    (d) The notice must state for each parcel: 53.23    (1) the market value of the property as determined under section 273.11, and used 53.24for computing property taxes payable in the following year and for taxes payable in the 53.25current year as each appears in the records of the county assessor on November 1 of the 53.26current year; and, in the case of residential property, whether the property is classified as 53.27homestead or nonhomestead. The notice must clearly inform taxpayers of the years to 53.28which the market values apply and that the values are final values; 53.29    (2) the items listed below, shown separately by county, city or town, and state general 53.30tax, net of the residential and agricultural homestead credit under section 273.1384, voter 53.31approved school levy, other local school levy, and the sum of the special taxing districts, 53.32and as a total of all taxing authorities: 53.33    (i) the actual tax for taxes payable in the current year; and 53.34    (ii) the proposed tax amount. 54.1    If the county levy under clause (2) includes an amount for a lake improvement 54.2district as defined under sections 103B.501 to 103B.581, the amount attributable for that 54.3purpose must be separately stated from the remaining county levy amount. 54.4    In the case of a town or the state general tax, the final tax shall also be its proposed 54.5tax unless the town changes its levy at a special town meeting under section 365.52. If a 54.6school district has certified under section 126C.17, subdivision 9, that a referendum will 54.7be held in the school district at the November general election, the county auditor must 54.8note next to the school district's proposed amount that a referendum is pending and that, if 54.9approved by the voters, the tax amount may be higher than shown on the notice. In the 54.10case of the city of Minneapolis, the levy for Minneapolis Park and Recreation shall be 54.11listed separately from the remaining amount of the city's levy. In the case of the city of 54.12St. Paul, the levy for the St. Paul Library Agency must be listed separately from the 54.13remaining amount of the city's levy. In the case of Ramsey County, any amount levied 54.14under section 134.07 may be listed separately from the remaining amount of the county's 54.15levy. In the case of a parcel where tax increment or the fiscal disparities areawide tax 54.16under chapter 276A or 473F applies, the proposed tax levy on the captured value or the 54.17proposed tax levy on the tax capacity subject to the areawide tax must each be stated 54.18separately and not included in the sum of the special taxing districts; and 54.19    (3) the increase or decrease between the total taxes payable in the current year and 54.20the total proposed taxes, expressed as a percentage. 54.21    For purposes of this section, the amount of the tax on homesteads qualifying under 54.22the senior citizens' property tax deferral program under chapter 290B is the total amount 54.23of property tax before subtraction of the deferred property tax amount. 54.24    (e) The notice must clearly state that the proposed or final taxes do not include 54.25the following: 54.26    (1) special assessments; 54.27    (2) levies approved by the voters after the date the proposed taxes are certified, 54.28including bond referenda and school district levy referenda; 54.29    (3) a levy limit increase approved by the voters by the first Tuesday after the first 54.30Monday in November of the levy year as provided under section 275.73; 54.31    (4) amounts necessary to pay cleanup or other costs due to a natural disaster 54.32occurring after the date the proposed taxes are certified; 54.33    (5) amounts necessary to pay tort judgments against the taxing authority that become 54.34final after the date the proposed taxes are certified; and 54.35    (6) the contamination tax imposed on properties which received market value 54.36reductions for contamination. 55.1    (f) Except as provided in subdivision 7, failure of the county auditor to prepare or 55.2the county treasurer to deliver the notice as required in this section does not invalidate the 55.3proposed or final tax levy or the taxes payable pursuant to the tax levy. 55.4    (g) If the notice the taxpayer receives under this section lists the property as 55.5nonhomestead, and satisfactory documentation is provided to the county assessor by the 55.6applicable deadline, and the property qualifies for the homestead classification in that 55.7assessment year, the assessor shall reclassify the property to homestead for taxes payable 55.8in the following year. 55.9    (h) In the case of class 4 residential property used as a residence for lease or rental 55.10periods of 30 days or more, the taxpayer must either: 55.11    (1) mail or deliver a copy of the notice of proposed property taxes to each tenant, 55.12renter, or lessee; or 55.13    (2) post a copy of the notice in a conspicuous place on the premises of the property. 55.14    The notice must be mailed or posted by the taxpayer by November 27 or within 55.15three days of receipt of the notice, whichever is later. A taxpayer may notify the county 55.16treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises to 55.17which the notice must be mailed in order to fulfill the requirements of this paragraph. 55.18    (i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing 55.19districts" means the following taxing districts in the seven-county metropolitan area that 55.20levy a property tax for any of the specified purposes listed below: 55.21    (1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325, 55.22473.446 , 473.521, 473.547, or 473.834; 55.23    (2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672; 55.24and 55.25    (3) Metropolitan Mosquito Control Commission under section 473.711. 55.26    For purposes of this section, any levies made by the regional rail authorities in the 55.27county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 55.28398A shall be included with the appropriate county's levy. 55.29    (j) The governing body of a county, city, or school district may, with the consent 55.30of the county board, include supplemental information with the statement of proposed 55.31property taxes about the impact of state aid increases or decreases on property tax 55.32increases or decreases and on the level of services provided in the affected jurisdiction. 55.33This supplemental information may include information for the following year, the current 55.34year, and for as many consecutive preceding years as deemed appropriate by the governing 55.35body of the county, city, or school district. It may include only information regarding: 56.1    (1) the impact of inflation as measured by the implicit price deflator for state and 56.2local government purchases; 56.3    (2) population growth and decline; 56.4    (3) state or federal government action; and 56.5    (4) other financial factors that affect the level of property taxation and local services 56.6that the governing body of the county, city, or school district may deem appropriate to 56.7include. 56.8    The information may be presented using tables, written narrative, and graphic 56.9representations and may contain instruction toward further sources of information or 56.10opportunity for comment. 56.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2012. new text end 56.12    Sec. 8. Minnesota Statutes 2010, section 290A.04, subdivision 2h, is amended to read: 56.13    Subd. 2h. Additional refund. (a) If the gross property taxes payable on a homestead 56.14increase more than 12 percent over the property taxes payable in the prior year on the same 56.15property that is owned and occupied by the same owner on January 2 of both years, and the 56.16amount of that increase is $100 or more, a claimant who is a homeowner shall be allowed 56.17an additional refund equal to 60 new text begin 75 new text end percent of the amount of the increase over the greater 56.18of 12 percent of the prior year's property taxes payable or $100. This subdivision shall not 56.19apply to any increase in the gross property taxes payable attributable to improvements 56.20made to the homestead after the assessment date for the prior year's taxes. This subdivision 56.21shall not apply to any increase in the gross property taxes payable attributable to the 56.22termination of valuation exclusions under section 273.11, subdivision 16. 56.23The maximum refund allowed under this subdivision is $1,000. 56.24(b) For purposes of this subdivision "gross property taxes payable" means property 56.25taxes payable determined without regard to the refund allowed under this subdivision. 56.26(c) In addition to the other proofs required by this chapter, each claimant under 56.27this subdivision shall file with the property tax refund return a copy of the property tax 56.28statement for taxes payable in the preceding year or other documents required by the 56.29commissioner. 56.30(d) Upon request, the appropriate county official shall make available the names and 56.31addresses of the property taxpayers who may be eligible for the additional property tax 56.32refund under this section. The information shall be provided on a magnetic computer 56.33disk. The county may recover its costs by charging the person requesting the information 56.34the reasonable cost for preparing the data. The information may not be used for any 57.1purpose other than for notifying the homeowner of potential eligibility and assisting the 57.2homeowner, without charge, in preparing a refund claim. 57.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with refunds based on new text end 57.4 new text begin taxes payable in 2012. new text end 57.5    Sec. 9. new text begin [471.703] EXPENDITURE TYPE REPORTING. new text end 57.6     new text begin Subdivision 1. new text end new text begin Purpose. new text end new text begin In order to facilitate involvement of the public in local new text end 57.7 new text begin government budgeting, municipalities shall provide the following budgetary information new text end 57.8 new text begin on a municipal Web site, except as provided in subdivision 4, and publicize the availability new text end 57.9 new text begin of this information as part of the property tax and budget notices required in section new text end 57.10 new text begin 275.065. new text end 57.11     new text begin Subd. 2. new text end new text begin Definitions. new text end new text begin (a) For purposes of this section, the following terms have the new text end 57.12 new text begin meanings given in this subdivision. new text end 57.13 new text begin (b) "Municipality" means a county or a home rule charter or statutory city with a new text end 57.14 new text begin population of more than 2,500. new text end 57.15 new text begin (c) "Population" means the population of the municipality as established by the last new text end 57.16 new text begin federal census, by a special census conducted under contract with the United States Bureau new text end 57.17 new text begin of the Census, by a population estimate made by the Metropolitan Council pursuant to new text end 57.18 new text begin section new text end new text begin , or by a population estimate of the state demographer made pursuant to new text end 57.19 new text begin section new text end new text begin , whichever is the most recent as to the stated date of the count or estimate for new text end 57.20 new text begin the preceding calendar year, and which has been certified to the commissioner of revenue new text end 57.21 new text begin on or before July 15 of the year in which the information is required to be reported. new text end 57.22     new text begin Subd. 3. new text end new text begin Electronic budgetary information. new text end new text begin (a) By July 31 of each year, a new text end 57.23 new text begin municipality shall publish on its Web site, except as provided in subdivision 4, four years new text end 57.24 new text begin of budget information on both revenues and expenditures organized by function and by new text end 57.25 new text begin expenditure type. The four years shall include actual data from the three most recently new text end 57.26 new text begin concluded budget years and estimated data for the current budget year. new text end 57.27 new text begin (b) In addition to publications required by paragraph (a), the municipality must new text end 57.28 new text begin publish the adopted final budget on the municipal Web site within 14 days of adoption of new text end 57.29 new text begin the final budget. The published final budget must include information on both revenues new text end 57.30 new text begin and expenditures organized by function and by expenditure type. The final budget must new text end 57.31 new text begin remain on the municipal Web site for one year, or until replaced by the next final budget. new text end 57.32 new text begin (c) The governmental funds included in the budget information required under new text end 57.33 new text begin this section shall include the municipality's general fund, debt service fund, and special new text end 57.34 new text begin revenue funds, except for special revenue funds specifically used for the acquisition and new text end 58.1 new text begin construction of major capital facilities. The reported information shall also exclude new text end 58.2 new text begin enterprise funds and fiduciary funds. new text end 58.3 new text begin (d) The forms and reporting requirements for revenues and expenditures by function new text end 58.4 new text begin shall be established by the state auditor's office and shall be based on the revenue and new text end 58.5 new text begin expenditure breakdowns used by that office in the five-year summary tables for annual new text end 58.6 new text begin revenue, expenditure, and debt reports for counties and cities with a population over new text end 58.7 new text begin 2,500, under section 6.75. new text end 58.8 new text begin (e) The forms and reporting requirements for expenditures by expenditure type shall new text end 58.9 new text begin be established by the state auditor's office and at minimum shall include the following line new text end 58.10 new text begin items: employee costs, purchased services, supplies, central services, capital items, debt new text end 58.11 new text begin service, transfer to other funds, and miscellaneous; with employee costs further subdivided new text end 58.12 new text begin into the following items: wages and salaries, pensions, Social Security, health care, and new text end 58.13 new text begin other benefits. The state auditor shall consult with the commissioner of management and new text end 58.14 new text begin budget, city and county representatives, and members of the governmental accounting new text end 58.15 new text begin community in developing the definition of expenditure types for reporting purposes. new text end 58.16     new text begin Subd. 4. new text end new text begin Alternative publication of budgetary information. new text end new text begin A municipality new text end 58.17 new text begin that does not maintain an official Web site must either (1) set up a separate Web site to new text end 58.18 new text begin make accessible the budgetary information as required in subdivision 3, or (2) publish the new text end 58.19 new text begin same information required in subdivision 3 by August 31 of each year in one issue of the new text end 58.20 new text begin official newspaper of the municipality. If a county publishes the information in its official new text end 58.21 new text begin newspaper it must also publish the same information in one other newspaper, if one of new text end 58.22 new text begin general circulation is located in a different city in the county than the official newspaper. new text end 58.23 new text begin The state auditor must prescribe the form for the newspaper notice. new text end 58.24     new text begin Subd. 5. new text end new text begin Incentives. new text end new text begin In 2012 only, a city or county that complies with the new text end 58.25 new text begin requirement of this section and section 6.91, subdivision 1, shall receive the benefits new text end 58.26 new text begin pursuant to section 6.91, subdivision 2. new text end 58.27     new text begin Subd. 6. new text end new text begin Penalties. new text end new text begin In 2013 and thereafter, failure of a municipality to provide new text end 58.28 new text begin the information required in this section shall result in the withholding of aids payable new text end 58.29 new text begin the following calendar year under sections 162.01 to 162.14, 423A.02, and 477A.011 new text end 58.30 new text begin to 477A.014. new text end 58.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2012. new text end 58.32    Sec. 10. Minnesota Statutes 2011 Supplement, section 477A.013, subdivision 9, 58.33is amended to read: 58.34    Subd. 9. City aid distribution. (a) new text begin In calendar year 2013 only, each city will receive new text end 58.35 new text begin an aid distribution equal to its aid distribution in 2012 under this section. new text end In calendar year 59.12009 new text begin 2014 new text end and thereafter, each city shall receive an aid distribution equal to the sum of (1) 59.2the city formula aid under subdivision 8, and (2) its city aid base. 59.3    (b) For aids payable in 2013 only, the total aid in the previous year for any city 59.4shall mean the amount of aid it was certified to receive for aids payable in 2012 under 59.5this section. For aids payable in 2014 and thereafter, the total aid in the previous year 59.6for any city means the amount of aid it was certified to receive under this section in the 59.7previous payable year. 59.8    (c) For aids payable in 2010 new text begin 2014 new text end and thereafter, the total aid for any city shall 59.9not exceed the sum of (1) ten percent of the city's net levy for the year prior to the aid 59.10distribution plus (2) its total aid in the previous year. For aids payable in 2009 new text begin 2014 new text end and 59.11thereafter, the total aid for any city with a population of 2,500 or more may not be less 59.12than its total aid under this section in the previous year minus the lesser of $10 multiplied 59.13by its population, or ten percent of its net levy in the year prior to the aid distribution. 59.14    (d) For aids payable in 2010 new text begin 2014 new text end and thereafter, the total aid for a city with a 59.15population less than 2,500 must not be less than the amount it was certified to receive in 59.16the previous year minus the lesser of $10 multiplied by its population, or five percent of its 59.172003 certified aid amount. For aids payable in 2009 only, the total aid for a city with a 59.18population less than 2,500 must not be less than what it received under this section in the 59.19previous year unless its total aid in calendar year 2008 was aid under section , 59.20subdivision 36, paragraph (s), in which case its minimum aid is zero. 59.21    (e) A city's aid loss under this section may not exceed $300,000 in any year in 59.22which the total city aid appropriation under section 477A.03, subdivision 2a, is equal or 59.23greater than the appropriation under that subdivision in the previous year, unless the 59.24city has an adjustment in its city net tax capacity under the process described in section 59.25469.174, subdivision 28 . 59.26    (f) If a city's net tax capacity used in calculating aid under this section has decreased 59.27in any year by more than 25 percent from its net tax capacity in the previous year due to 59.28property becoming tax-exempt Indian land, the city's maximum allowed aid increase 59.29under paragraph (c) shall be increased by an amount equal to (1) the city's tax rate in the 59.30year of the aid calculation, multiplied by (2) the amount of its net tax capacity decrease 59.31resulting from the property becoming tax exempt. 59.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar year new text end 59.33 new text begin 2013 and thereafter. new text end 59.34    Sec. 11. Minnesota Statutes 2011 Supplement, section 477A.03, subdivision 2a, 59.35is amended to read: 60.1    Subd. 2a. Cities. For aids payable in 2013 new text begin 2014 new text end and thereafter, the total aid paid 60.2under section 477A.013, subdivision 9, is $426,438,012. 60.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar year new text end 60.4 new text begin 2013 and thereafter. new text end 60.5    Sec. 12. new text begin CAREER AND TECHNICAL LEVY LIMITATION, PAYABLE IN 2012. new text end 60.6 new text begin Notwithstanding Minnesota Statutes, section 124D.4531, subdivision 1, the amount new text end 60.7 new text begin of the levy certified under Minnesota Statutes, section 124D.4531, subdivision 1, may not new text end 60.8 new text begin exceed $17,850,000 for taxes payable in 2012. new text end 60.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2012 only. new text end 60.10    Sec. 13. new text begin LEASE LEVY; ADMINISTRATIVE SPACE. new text end 60.11     new text begin Subdivision 1. new text end new text begin Faribault. new text end new text begin Notwithstanding Minnesota Statutes, section 126C.40, new text end 60.12 new text begin subdivision 1, Independent School District No. 656, Faribault, may lease administrative new text end 60.13 new text begin space under Minnesota Statutes, section 126C.40, subdivision 1, if the district can new text end 60.14 new text begin demonstrate to the satisfaction of the commissioner of education that the administrative new text end 60.15 new text begin space is less expensive than instructional space that the district would otherwise lease. new text end 60.16 new text begin The commissioner must deny this levy authority unless the district passes a resolution new text end 60.17 new text begin stating its intent to lease instructional space under Minnesota Statutes, section 126C.40, new text end 60.18 new text begin subdivision 1, if the commissioner does not grant authority under this section. The new text end 60.19 new text begin resolution must also certify that a lease of administrative space under this section is less new text end 60.20 new text begin expensive than the district's proposed instructional lease. Levy authority under this section new text end 60.21 new text begin shall not exceed the total levy authority under Minnesota Statutes, section 126C.40, new text end 60.22 new text begin subdivision 1, paragraph (e). new text end 60.23     new text begin Subd. 2. new text end new text begin Wayzata. new text end new text begin Notwithstanding Minnesota Statutes, section 126C.40, new text end 60.24 new text begin subdivision 1, Independent School District No. 284, Wayzata, may lease administrative new text end 60.25 new text begin space under Minnesota Statutes, section 126C.40, subdivision 1, if the district can new text end 60.26 new text begin demonstrate to the satisfaction of the commissioner of education that the administrative new text end 60.27 new text begin space is less expensive than instructional space that the district would otherwise lease. new text end 60.28 new text begin The commissioner must deny this levy authority unless the district passes a resolution new text end 60.29 new text begin stating its intent to lease instructional space under Minnesota Statutes, section 126C.40, new text end 60.30 new text begin subdivision 1, if the commissioner does not grant authority under this section. The new text end 60.31 new text begin resolution must also certify that a lease of administrative space under this section is less new text end 60.32 new text begin expensive than the district's proposed instructional lease. Levy authority under this section new text end 61.1 new text begin shall not exceed the total levy authority under Minnesota Statutes, section 126C.40, new text end 61.2 new text begin subdivision 1, paragraph (e). new text end 61.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2013 and later. new text end 61.4    Sec. 14. new text begin ADMINISTRATION OF PROPERTY TAX REFUND CLAIMS; 2011. new text end 61.5 new text begin In administering Minnesota Statutes, section 290A.04, subdivision 2h, for claims for new text end 61.6 new text begin additional refunds submitted using 60 percent of the gross homestead property tax increase new text end 61.7 new text begin exceeding 12 percent of income under prior law, the commissioner shall recalculate and new text end 61.8 new text begin pay the refund amounts using 75 percent of the tax increase exceeding 12 percent of new text end 61.9 new text begin income. The commissioner shall notify the claimant that the recalculation was mandated new text end 61.10 new text begin by action of the 2012 legislature. new text end 61.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 61.12    Sec. 15. new text begin REPEALER. new text end 61.13 new text begin (a) new text end new text begin Minnesota Statutes 2010, section 275.025, subdivisions 1, 2, and 4, new text end new text begin are repealed. new text end 61.14 new text begin (b) new text end new text begin Minnesota Statutes 2011 Supplement, section 275.025, subdivision 3, new text end new text begin is repealed. new text end 61.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2026 and new text end 61.16 new text begin thereafter. new text end 61.17ARTICLE 4 61.18LOCAL DEVELOPMENT 61.19    Section 1. Minnesota Statutes 2010, section 469.174, subdivision 2, is amended to read: 61.20    Subd. 2. Authority. "Authority" means a rural development financing authority 61.21created pursuant to sections 469.142 to 469.151; a housing and redevelopment authority 61.22created pursuant to sections 469.001 to 469.047; a port authority created pursuant to 61.23sections 469.048 to 469.068; an economic development authority created pursuant to 61.24sections 469.090 to 469.108; a redevelopment agency as defined in sections 469.152 to 61.25469.165 ; a municipality that is administering a development district created pursuant to 61.26sections 469.124 to 469.134 or any special law; a municipality that undertakes a project 61.27pursuant to sections 469.152 to 469.165, except a town located outside the metropolitan 61.28area or with a population of 5,000 persons or less; new text begin a municipality that undertakes a project new text end 61.29 new text begin pursuant to subdivision 30; new text end or a municipality that exercises the powers of a port authority 61.30pursuant to any general or special law. 61.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 62.1    Sec. 2. Minnesota Statutes 2010, section 469.174, subdivision 8, is amended to read: 62.2    Subd. 8. Project. "Project" means a project as described in section 469.142; 62.3an industrial development district as described in section 469.058, subdivision 1; an 62.4economic development district as described in section 469.101, subdivision 1; a project as 62.5defined in section 469.002, subdivision 12; a development district as defined in section 62.6469.125, subdivision 9 , or any special law; new text begin a mining reclamation project area as defined new text end 62.7 new text begin in subdivision 30; new text end or a project as defined in section 469.153, subdivision 2, paragraph 62.8(a), (b), or (c). 62.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 62.10    Sec. 3. Minnesota Statutes 2010, section 469.174, subdivision 10, is amended to read: 62.11    Subd. 10. Redevelopment district. (a) "Redevelopment district" means a type of 62.12tax increment financing district consisting of a project, or portions of a project, within 62.13which the authority finds by resolution that one or more of the following conditions, 62.14reasonably distributed throughout the district, exists: 62.15    (1) parcels consisting of 70 percent of the area of the district are occupied by 62.16buildings, streets, utilities, paved or gravel parking lots, or other similar structures and 62.17more than 50 percent new text begin or more new text end of the buildings, not including outbuildings, are structurally 62.18substandard to a degree requiring substantial renovation or clearance; 62.19    (2) the property consists of vacant, unused, underused, inappropriately used, or 62.20infrequently used rail yards, rail storage facilities, or excessive or vacated railroad 62.21rights-of-way; 62.22    (3) tank facilities, or property whose immediately previous use was for tank 62.23facilities, as defined in section 115C.02, subdivision 15, if the tank facilities: 62.24    (i) have or had a capacity of more than 1,000,000 gallons; 62.25    (ii) are located adjacent to rail facilities; and 62.26    (iii) have been removed or are unused, underused, inappropriately used, or 62.27infrequently used; or 62.28    (4) a qualifying disaster area, as defined in subdivision 10b. 62.29    (b) For purposes of this subdivision, "structurally substandard" shall mean 62.30containing defects in structural elements or a combination of deficiencies in essential 62.31utilities and facilities, light and ventilation, fire protection including adequate egress, 62.32layout and condition of interior partitions, or similar factors, which defects or deficiencies 62.33are of sufficient total significance to justify substantial renovation or clearance. 62.34    (c) A building is not structurally substandard if it is in compliance with the building 62.35code applicable to new buildings or could be modified to satisfy the building code at 63.1a cost of less than 15 percent of the cost of constructing a new structure of the same 63.2square footage and type on the site. The municipality may find that a building is not 63.3disqualified as structurally substandard under the preceding sentence on the basis of 63.4reasonably available evidence, such as the size, type, and age of the building, the average 63.5cost of plumbing, electrical, or structural repairs, or other similar reliable evidence. The 63.6municipality may not make such a determination without an interior inspection of the 63.7property, but need not have an independent, expert appraisal prepared of the cost of repair 63.8and rehabilitation of the building. An interior inspection of the property is not required, 63.9if the municipality finds that (1) the municipality or authority is unable to gain access to 63.10the property after using its best efforts to obtain permission from the party that owns or 63.11controls the property; and (2) the evidence otherwise supports a reasonable conclusion that 63.12the building is structurally substandard. Items of evidence that support such a conclusion 63.13include recent fire or police inspections, on-site property tax appraisals or housing 63.14inspections, exterior evidence of deterioration, or other similar reliable evidence. Written 63.15documentation of the findings and reasons why an interior inspection was not conducted 63.16must be made and retained under section 469.175, subdivision 3, clause (1). Failure of a 63.17building to be disqualified under the provisions of this paragraph is a necessary, but not a 63.18sufficient, condition to determining that the building is substandard. 63.19    (d) A parcel is deemed to be occupied by a structurally substandard building 63.20for purposes of the finding under paragraph (a) or by the improvements described in 63.21paragraph (e) if all of the following conditions are met: 63.22    (1) the parcel was occupied by a substandard building or met the requirements 63.23of paragraph (e), as the case may be, within three years of the filing of the request for 63.24certification of the parcel as part of the district with the county auditor; 63.25    (2) the substandard building or the improvements described in paragraph (e) were 63.26demolished or removed by the authority or the demolition or removal was financed by the 63.27authority or was done by a developer under a development agreement with the authority; 63.28    (3) the authority found by resolution before the demolition or removal that the 63.29parcel was occupied by a structurally substandard building or met the requirements of 63.30paragraph (e) and that after demolition and clearance the authority intended to include 63.31the parcel within a district; and 63.32    (4) upon filing the request for certification of the tax capacity of the parcel as part 63.33of a district, the authority notifies the county auditor that the original tax capacity of the 63.34parcel must be adjusted as provided by section 469.177, subdivision 1, paragraph (f). 63.35    (e) For purposes of this subdivision, a parcel is not occupied by buildings, streets, 63.36utilities, paved or gravel parking lots, or other similar structures unless 15 percent of the 64.1area of the parcel contains buildings, streets, utilities, paved or gravel parking lots, or 64.2other similar structures. 64.3    (f) For districts consisting of two or more noncontiguous areas, each area must 64.4qualify as a redevelopment district under paragraph (a) to be included in the district, and 64.5the entire area of the district must satisfy paragraph (a). 64.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 64.7    Sec. 4. Minnesota Statutes 2010, section 469.174, is amended by adding a subdivision 64.8to read: 64.9     new text begin Subd. 19a. new text end new text begin Soil deficiency district. new text end new text begin "Soil-deficiency district" means a type of tax new text end 64.10 new text begin increment financing district consisting of a project, or portions of a project, within which new text end 64.11 new text begin the authority finds by resolution that the following conditions exist: new text end 64.12 new text begin (1) parcels consisting of 70 percent of the area of the district contain unusual terrain new text end 64.13 new text begin or soil deficiencies which require substantial filling, grading, or other physical preparation new text end 64.14 new text begin for use and a parcel is eligible for inclusion if at least 50 percent of the area of the parcel new text end 64.15 new text begin requires substantial filling, grading, or other physical preparation for use; and new text end 64.16 new text begin (2) the estimated cost of the physical preparation under clause (1), but excluding new text end 64.17 new text begin costs directly related to roads as defined in section 160.01, and local improvements as new text end 64.18 new text begin described in sections 429.021, subdivision 1, clauses (1) to (7), (11), and (12), and 430.01, new text end 64.19 new text begin exceeds the fair market value of the land before completion of the preparation. new text end 64.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for districts for which the request for new text end 64.21 new text begin certification is made after April 30, 2012. new text end 64.22    Sec. 5. Minnesota Statutes 2010, section 469.174, is amended by adding a subdivision 64.23to read: 64.24     new text begin Subd. 30. new text end new text begin Mining reclamation project area. new text end new text begin (a) An authority may designate an new text end 64.25 new text begin area within its jurisdiction by finding by resolution, that parcels consisting of at least 70 new text end 64.26 new text begin percent of the acreage, excluding street and railroad rights-of-way, are characterized by new text end 64.27 new text begin one or more of the following conditions: new text end 64.28 new text begin (1) peat or other soils with geotechnical deficiencies that impair development of new text end 64.29 new text begin buildings or infrastructure; new text end 64.30 new text begin (2) soils or terrain that requires substantial filling in order to permit the development new text end 64.31 new text begin of buildings or infrastructure; new text end 64.32 new text begin (3) landfills, dumps, or similar deposits of municipal or private waste; new text end 64.33 new text begin (4) quarries or similar resource extraction sites; new text end 65.1 new text begin (5) floodway; and new text end 65.2 new text begin (6) substandard buildings, within the meaning of section 469.174, subdivision 10. new text end 65.3 new text begin (b) For the purposes of paragraph (a), clauses (1) to (5), a parcel is characterized by new text end 65.4 new text begin the relevant condition if at least 50 percent of the area of the parcel contains the relevant new text end 65.5 new text begin condition. For the purposes of paragraph (a), clause (6), a parcel is characterized by new text end 65.6 new text begin substandard buildings if substandard buildings occupy at least 30 percent of the area new text end 65.7 new text begin of the parcel. new text end 65.8 new text begin (c) If the authority elects, upon the adoption of the tax increment financing plan for a new text end 65.9 new text begin district, the rules under paragraphs (d) and (e) apply to a redevelopment district, renewal new text end 65.10 new text begin and renovation district, soil condition district, or soil deficiency district established by the new text end 65.11 new text begin authority in a mining reclamation project area. new text end 65.12 new text begin (d) Upon election of the authority under paragraph (c), for any district created in a new text end 65.13 new text begin mining reclamation project area, the five-year rule under section 469.1763, subdivision 3, new text end 65.14 new text begin is extended to ten years, and section 469.1763, subdivision 4, does not apply. new text end 65.15 new text begin (e) Upon election by the authority under paragraph (c), notwithstanding any new text end 65.16 new text begin provision to the contrary in section 469.1763, subdivision 2, paragraph (a), not more than new text end 65.17 new text begin 80 percent of the total revenue derived from tax increments paid by properties in any new text end 65.18 new text begin district, measured over the life of the district, may be expended on activities outside the new text end 65.19 new text begin district but within the mining reclamation project area. new text end 65.20 new text begin (f) For a soil deficiency district, except as otherwise provided in this subdivision, new text end 65.21 new text begin increments may be used only to: new text end 65.22 new text begin (1) acquire parcels on which the improvements described in clause (2) will occur; new text end 65.23 new text begin (2) pay for the cost of correcting the unusual terrain or soil deficiencies and the new text end 65.24 new text begin additional cost of installing public improvements directly caused by the deficiencies; new text end 65.25 new text begin (3) pay for the administrative expenses of the authority allocable to the district; and new text end 65.26 new text begin (4) up to 25 percent of the increment may be used to pay costs as provided in section new text end 65.27 new text begin 469.176, subdivision 4j. new text end 65.28 new text begin (g) Increments spent for any infrastructure costs, whether inside a district or outside new text end 65.29 new text begin a district, but within the project area, are deemed to satisfy the requirements of paragraph new text end 65.30 new text begin (f), and section 469.176, subdivisions 4b and 4j. new text end 65.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for districts for which the request for new text end 65.32 new text begin certification is made after April 30, 2012. new text end 65.33    Sec. 6. Minnesota Statutes 2010, section 469.176, subdivision 1b, is amended to read: 65.34    Subd. 1b. Duration limits; terms. (a) No tax increment shall in any event be 65.35paid to the authority: 66.1(1) after 15 years after receipt by the authority of the first increment for a renewal 66.2and renovation district; 66.3(2) after 20 years after receipt by the authority of the first increment for a soils 66.4condition district new text begin or a soil deficiency district new text end ; 66.5(3) after eight years after receipt by the authority of the first increment for an 66.6economic development district; 66.7(4) for a housing district, a compact development district, or a redevelopment 66.8district, after 25 years from the date of receipt by the authority of the first increment. 66.9(b) For purposes of determining a duration limit under this subdivision or subdivision 66.101e that is based on the receipt of an increment, any increments from taxes payable in 66.11the year in which the district terminates shall be paid to the authority. This paragraph 66.12does not affect a duration limit calculated from the date of approval of the tax increment 66.13financing plan or based on the recovery of costs or to a duration limit under subdivision 66.141c. This paragraph does not supersede the restrictions on payment of delinquent taxes in 66.15subdivision 1f. 66.16(c) An action by the authority to waive or decline to accept an increment has no 66.17effect for purposes of computing a duration limit based on the receipt of increment under 66.18this subdivision or any other provision of law. The authority is deemed to have received an 66.19increment for any year in which it waived or declined to accept an increment, regardless 66.20of whether the increment was paid to the authority. 66.21(d) Receipt by a hazardous substance subdistrict of an increment as a result of a 66.22reduction in original net tax capacity under section 469.174, subdivision 7, paragraph 66.23(b), does not constitute receipt of increment by the overlying district for the purpose of 66.24calculating the duration limit under this section. 66.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for districts for which the request for new text end 66.26 new text begin certification is made after April 30, 2012. new text end 66.27    Sec. 7. Minnesota Statutes 2011 Supplement, section 469.1763, subdivision 2, is 66.28amended to read: 66.29    Subd. 2. Expenditures outside district. (a) For each tax increment financing 66.30district, an amount equal to at least 75 percent of the total revenue derived from tax 66.31increments paid by properties in the district must be expended on activities in the district 66.32or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities 66.33in the district or to pay, or secure payment of, debt service on credit enhanced bonds. 66.34For districts, other than redevelopment districts for which the request for certification 66.35was made after June 30, 1995, the in-district percentage for purposes of the preceding 67.1sentence is 80 percent. Not more than 25 percent of the total revenue derived from tax 67.2increments paid by properties in the district may be expended, through a development fund 67.3or otherwise, on activities outside of the district but within the defined geographic area of 67.4the project except to pay, or secure payment of, debt service on credit enhanced bonds. 67.5For districts, other than redevelopment districts for which the request for certification was 67.6made after June 30, 1995, the pooling percentage for purposes of the preceding sentence is 67.720 percent. The revenue derived from tax increments for the district that are expended on 67.8costs under section 469.176, subdivision 4h, paragraph (b), may be deducted first before 67.9calculating the percentages that must be expended within and without the district. 67.10    (b) In the case of a housing district, a housing project, as defined in section 469.174, 67.11subdivision 11 , is an activity in the district. 67.12    (c) All administrative expenses are for activities outside of the district, except that 67.13if the only expenses for activities outside of the district under this subdivision are for 67.14the purposes described in paragraph (d), administrative expenses will be considered as 67.15expenditures for activities in the district. 67.16    (d) The authority may elect, in the tax increment financing plan for the district, 67.17to increase by up to ten percentage points the permitted amount of expenditures for 67.18activities located outside the geographic area of the district under paragraph (a). As 67.19permitted by section 469.176, subdivision 4k, the expenditures, including the permitted 67.20expenditures under paragraph (a), need not be made within the geographic area of the 67.21project. Expenditures that meet the requirements of this paragraph are legally permitted 67.22expenditures of the district, notwithstanding section 469.176, subdivisions 4b, 4c, new text begin 4d, new text end and 67.234j . To qualify for the increase under this paragraph, the expenditures must: 67.24    (1) be used exclusively to assist housing that 67.25 new text begin (i) new text end meets the requirement for a qualified low-income building, as that term is used in 67.26section 42 of the Internal Revenue Code; and 67.27    (2) new text begin (ii) does new text end not exceed the qualified basis of the housing, as defined under section 67.2842(c) of the Internal Revenue Code, less the amount of any credit allowed under section 67.2942 of the Internal Revenue Code; and 67.30    (3) be new text begin (iii) is new text end used to: 67.31    (i) new text begin (A) new text end acquire and prepare the site of the housing; 67.32    (ii) new text begin (B) new text end acquire, construct, or rehabilitate the housing; or 67.33    (iii) new text begin (C) new text end make public improvements directly related to the housing; or 67.34(4) new text begin (2) new text end be used to develop housing: 67.35(i) if the market value of the housing new text begin prior to demolition or rehabilitation new text end does 67.36not exceed the lesser of: 68.1(A) 150 percent of the average market value of single-family homes in that 68.2municipality; or 68.3(B) $200,000 for municipalities located in the metropolitan area, as defined in 68.4section 473.121, or $125,000 for all other municipalities; and 68.5(ii) if the expenditures are used to pay the cost of site acquisition, relocation, 68.6demolition of existing structures, site preparation, new text begin rehabilitation, new text end and pollution abatement 68.7on one or more parcels, if new text begin provided that new text end the parcel contains a residence containing new text begin is new text end 68.8 new text begin occupied by new text end one to four family dwelling units that has been vacant for six or more months 68.9and is in foreclosure as defined in section 325N.10, subdivision 7, but without regard to 68.10whether the residence is the owner's principal residence, and only after the redemption 68.11period stated in the notice provided under section has expired new text begin with respect to which new text end 68.12 new text begin a mortgage was foreclosed under chapter 580, 581, or 582; any applicable redemption new text end 68.13 new text begin period has expired without redemption new text end new text begin ; and the authority or developer enters into a new text end 68.14 new text begin purchase agreement to acquire the parcel no earlier than 30 days after expiration of the new text end 68.15 new text begin redemption period new text end . 68.16    (e) For a district created within a biotechnology and health sciences industry zone 68.17as defined in section 469.330, subdivision 6, or for an existing district located within 68.18such a zone, tax increment derived from such a district may be expended outside of the 68.19district but within the zone only for expenditures required for the construction of public 68.20infrastructure necessary to support the activities of the zone, land acquisition, and other 68.21redevelopment costs as defined in section 469.176, subdivision 4j. These expenditures are 68.22considered as expenditures for activities within the district. 68.23(f) The authority under paragraph (d), clause (4) new text begin (2) new text end , expires on December 31, 2016. 68.24Increments may continue to be expended under this authority after that date, if they are 68.25used to pay bonds or binding contracts that would qualify under subdivision 3, paragraph 68.26(a), if December 31, 2016, is considered to be the last date of the five-year period after 68.27certification under that provision. 68.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for any district that is subject to the new text end 68.29 new text begin provisions of Minnesota Statutes, section 469.1763, regardless of when the request for new text end 68.30 new text begin certification was made. new text end 68.31    Sec. 8. Laws 2008, chapter 366, article 5, section 34, as amended by Laws 2009, 68.32chapter 88, article 5, section 11, is amended to read: 68.33    Sec. 34. CITY OF OAKDALE; ORIGINAL TAX CAPACITY. 68.34     new text begin Subdivision 1. new text end new text begin Original tax capacity election. new text end (a) The provisions of this section 68.35apply to redevelopment tax increment financing districts created by the Housing and 69.1Redevelopment Authority in and for the city of Oakdale in the areas comprised of 69.2the parcels with the following parcel identification numbers: (1) 3102921320053; 69.33102921320054; 3102921320055; 3102921320056; 3102921320057; 3102921320058; 69.43102921320062; 3102921320063; 3102921320059; 3102921320060; 3102921320061; 69.53102921330005; and 3102921330004; and (2) 2902921330001 and 2902921330005. 69.6    (b) For a district subject to this section, the Housing and Redevelopment Authority 69.7may, when requesting certification of the original tax capacity of the district under 69.8Minnesota Statutes, section 469.177, elect to have the original tax capacity of the district 69.9be certified as the tax capacity of the land. 69.10    (c) The authority to request certification of a district under this section expires on 69.11July 1, 2013 new text begin December 31, 2017 new text end . 69.12     new text begin Subd. 2. new text end new text begin Parcels deemed occupied. new text end new text begin (a) Parcel numbers 3102921320054, new text end 69.13 new text begin 3102921320055, 3102921320056, 3102921320057, 3102921320061, and 3102921330004 new text end 69.14 new text begin are deemed to meet the requirements of Minnesota Statutes, section 469.174, subdivision new text end 69.15 new text begin 10, paragraph (d), notwithstanding any contrary provisions of that paragraph, if the new text end 69.16 new text begin following conditions are met: new text end 69.17 new text begin (1) a building located on any part of each of the specified parcels was demolished new text end 69.18 new text begin after the authority adopted a resolution under Minnesota Statutes, section 469.174, new text end 69.19 new text begin subdivision 10, paragraph (d), clause (3); new text end 69.20 new text begin (2) the building was removed either by the authority, by a developer under a new text end 69.21 new text begin development agreement with the authority, or by the owner of the property without new text end 69.22 new text begin entering into a development agreement with the authority; and new text end 69.23 new text begin (3) the request for certification of the parcel as part of a district is filed with the new text end 69.24 new text begin county auditor by December 31, 2017. new text end 69.25 new text begin (b) The provisions of subdivision 1 apply to allow an election by the authority new text end 69.26 new text begin for the parcels deemed occupied under paragraph (a), notwithstanding the provisions new text end 69.27 new text begin of Minnesota Statutes, sections 469.174, subdivision 10, paragraph (d), and 469.177, new text end 69.28 new text begin subdivision 1, paragraph (f). new text end 69.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon compliance by the governing new text end 69.30 new text begin body of the city of Oakdale with the requirements of Minnesota Statutes, section 645.021, new text end 69.31 new text begin subdivision 3. new text end 69.32    Sec. 9. new text begin CITY OF APPLE VALLEY; USE OF TAX INCREMENT FINANCING. new text end 69.33     new text begin Subdivision 1. new text end new text begin Developments consisting of building and ancillary facilities. new text end 69.34 new text begin Notwithstanding Minnesota Statutes, section 469.176, subdivisions 4c and 4m, the city of new text end 69.35 new text begin Apple Valley may use tax increment financing to provide improvements, loans, subsidies, new text end 70.1 new text begin grants, interest rate subsidies, or assistance in any form to developments consisting of new text end 70.2 new text begin buildings and ancillary facilities, if all of the following conditions are met: new text end 70.3 new text begin (1) the city of Apple Valley finds that the project will create or retain jobs in new text end 70.4 new text begin Minnesota, including construction jobs; new text end 70.5 new text begin (2) the city of Apple Valley finds that construction of the project will not commence new text end 70.6 new text begin before July 1, 2013, without the use of tax increment financing; new text end 70.7 new text begin (3) the request for certification of the district is made no later than June 30, 2013; new text end 70.8 new text begin (4) construction of the project begins no later than July 1, 2013; and new text end 70.9 new text begin (5) for development of housing, construction of the project begins no later than new text end 70.10 new text begin December 31, 2012. new text end 70.11     new text begin Subd. 2. new text end new text begin Extension of authority to spend tax increments. new text end new text begin Notwithstanding new text end 70.12 new text begin Minnesota Statutes, section 469.176, subdivision 4m, the city of Apple Valley has the new text end 70.13 new text begin authority to spend tax increments under Minnesota Statutes, section 469.176, subdivision new text end 70.14 new text begin 4m, until December 31, 2013. new text end 70.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 70.16    Sec. 10. new text begin CITY OF BLOOMINGTON; TAX INCREMENT FINANCING. new text end 70.17 new text begin Notwithstanding Minnesota Statutes, section 469.176, or Laws 1996, chapter 464, new text end 70.18 new text begin article 1, section 8, or any other law to the contrary, the city of Bloomington and its port new text end 70.19 new text begin authority may extend the duration limits of tax increment financing district No. 1-G, new text end 70.20 new text begin containing the former Met Center property, including Lindau Lane and that portion of tax new text end 70.21 new text begin increment financing district No. 1-C north of the existing building line on Lot 1, Block 1, new text end 70.22 new text begin Mall of America 7th Addition, exclusive of Lots 2 and 3, through December 31, 2038. new text end 70.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon compliance of the governing new text end 70.24 new text begin body of the city of Bloomington with the requirements of Minnesota Statutes, sections new text end 70.25 new text begin 469.1782, subdivision 2, and 645.021, subdivision 3. new text end 70.26    Sec. 11. new text begin CITY OF BLOOMINGTON; TAX INCREMENT FINANCING new text end 70.27 new text begin EXTENSION. new text end 70.28 new text begin Notwithstanding the provisions of Minnesota Statutes, section 469.176, or any other new text end 70.29 new text begin law to the contrary, the city of Bloomington and its port authority may extend the duration new text end 70.30 new text begin limits of Tax Increment Financing District No. 1-I, containing the Bloomington Central new text end 70.31 new text begin Station property for a period through December 31, 2038. new text end 71.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon compliance of the governing new text end 71.2 new text begin body of the city of Bloomington with the requirements of Minnesota Statutes, sections new text end 71.3 new text begin 469.1782, subdivision 2, and 645.021, subdivision 3. new text end 71.4    Sec. 12. new text begin BROOKLYN PARK; TAX INCREMENT FINANCING. new text end 71.5     new text begin Subdivision 1. new text end new text begin Temporary authority extended. new text end new text begin The Brooklyn Park Economic new text end 71.6 new text begin Development Authority may exercise power under Minnesota Statutes, section 469.176, new text end 71.7 new text begin subdivision 4m, to assist in development of a hotel and an aquatic performance and new text end 71.8 new text begin wellness center located on parcel number 2911921340004 in the city of Brooklyn Park, if new text end 71.9 new text begin construction on some portion of that parcel commences before July 1, 2013. The authority new text end 71.10 new text begin to spend increments for those purposes expires on July 1, 2014. new text end 71.11     new text begin Subd. 2. new text end new text begin Five-year rule. new text end new text begin The requirement of Minnesota Statutes, section 469.1763, new text end 71.12 new text begin subdivision 3, that activities must be undertaken within a five-year period from the date new text end 71.13 new text begin of certification of a tax increment financing district, is considered to be met for Tax new text end 71.14 new text begin Increment Financing District No. 23 in the city of Brooklyn Park if the activities were new text end 71.15 new text begin undertaken by July 1, 2014. new text end 71.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon compliance by the city of new text end 71.17 new text begin Brooklyn Park with the requirements of Minnesota Statutes, section 645.021, subdivision new text end 71.18 new text begin 3. new text end 71.19    Sec. 13. new text begin DAKOTA COUNTY COMMUNITY DEVELOPMENT AUTHORITY; new text end 71.20 new text begin TAX INCREMENT FINANCING DISTRICT. new text end 71.21     new text begin Subdivision 1. new text end new text begin Authorization. new text end new text begin Notwithstanding the provisions of any other law, new text end 71.22 new text begin the Dakota County Community Development Authority may establish a redevelopment new text end 71.23 new text begin tax increment financing district comprised of the properties that (1) were included in the new text end 71.24 new text begin CDA 10 Robert and South Street district in the city of West St. Paul, and (2) were not new text end 71.25 new text begin decertified before July 1, 2012. The district created under this section terminates no later new text end 71.26 new text begin than December 31, 2027. new text end 71.27     new text begin Subd. 2. new text end new text begin Special rules. new text end new text begin The requirements for qualifying a redevelopment district new text end 71.28 new text begin under Minnesota Statutes, section 469.174, subdivision 10, do not apply to parcels located new text end 71.29 new text begin within the district. Minnesota Statutes, section 469.176, subdivisions 4g, paragraph (c), new text end 71.30 new text begin clause (1), item (ii), 4j, and 4l, do not apply to the district. The original tax capacity new text end 71.31 new text begin of the district is $93,239. new text end 71.32     new text begin Subd. 3. new text end new text begin Authorized expenditures. new text end new text begin Tax increment from the district may be new text end 71.33 new text begin expended to pay for any eligible activities authorized by Minnesota Statutes, chapter new text end 71.34 new text begin 469, within the redevelopment area that includes the district. All such expenditures are new text end 72.1 new text begin deemed to be activities within the district under Minnesota Statutes, section 469.1763, new text end 72.2 new text begin subdivisions 2, 3, and 4. new text end 72.3     new text begin Subd. 4. new text end new text begin Adjusted net tax capacity. new text end new text begin The captured tax capacity of the district must new text end 72.4 new text begin be included in the adjusted net tax capacity of the city, county, and school district for the new text end 72.5 new text begin purposes of determining local government aid, education aid, and county program aid. new text end 72.6 new text begin The county auditor shall report to the commissioner of revenue the amount of the captured new text end 72.7 new text begin tax capacity for the district at the time the assessment abstracts are filed. new text end 72.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon compliance by the governing new text end 72.9 new text begin body of the Dakota County Community Development Authority with the requirements of new text end 72.10 new text begin Minnesota Statutes, section 645.021, subdivision 3. new text end 72.11    Sec. 14. new text begin ST. CLOUD ECONOMIC DEVELOPMENT AUTHORITY; new text end 72.12 new text begin EXPENDITURE OF FUND BALANCE. new text end 72.13 new text begin Notwithstanding any other law to the contrary or the provisions of the tax increment new text end 72.14 new text begin financing plan, the economic development authority for the city of St. Cloud may new text end 72.15 new text begin authorize the expenditure of the balance of the tax increments from tax increment district new text end 72.16 new text begin no. 2, commonly referred to as the Norwest District, within the Central Area Urban new text end 72.17 new text begin Renewal Project area of the city. Eligible expenditures are for public infrastructure new text end 72.18 new text begin improvements, including but not limited to improvements as further described in the city new text end 72.19 new text begin of St. Cloud's 2003 Comprehensive Plan and 1996 Downtown Streetscape Plan, which new text end 72.20 new text begin will further economic development in the Central Area Urban Renewal Project area of the new text end 72.21 new text begin city. All tax increments from tax increment financing district no. 2 expended are ratified new text end 72.22 new text begin and approved and are conclusively deemed to be spent in compliance with applicable law. new text end 72.23 new text begin Any funds remaining in tax increment financing district no. 2 must be expended pursuant new text end 72.24 new text begin to this section by December 31, 2015, or distributed as excess increments under Minnesota new text end 72.25 new text begin Statutes, section 469.176, subdivision 2. new text end 72.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment, new text end 72.27 new text begin upon approval by the governing body of the city of St. Cloud and compliance with new text end 72.28 new text begin Minnesota Statutes, section 645.021, subdivision 3. new text end 72.29ARTICLE 5 72.30HOMESTEAD MARKET VALUE CLEANUP 72.31    Section 1. Minnesota Statutes 2010, section 38.18, is amended to read: 72.3238.18 COUNTY FAIRGROUNDS; IMPROVEMENT AIDED. 73.1Any new text begin Each new text end town, statutory city, or school district in this state, now or hereafter new text begin at new text end 73.2 new text begin any time new text end having a new text begin an estimated new text end market value of all its taxable property, exclusive of 73.3money and credits, of more than $105,000,000, and having a county fair located within its 73.4corporate limits, is hereby authorized to aid in defraying new text begin may pay new text end part of the expense of 73.5improving any such new text begin the new text end fairground, by appropriating and paying over to the treasurer of 73.6the county owning the fairground such sum of money, not exceeding $10,000, for each 73.7of the political subdivisions, as the new text begin its new text end governing body of the town, statutory city, or 73.8school district may, by resolution, determine new text begin determines new text end to be for the best interest of the 73.9political subdivision, new text begin . new text end The sums so appropriated to new text begin amounts paid to the county must new text end be 73.10used solely for the purpose of aiding in the improvement of new text begin to improve new text end the fairground 73.11in such new text begin the new text end manner as the county board of the county shall determine new text begin determines new text end to be 73.12for the best interest of the county. 73.13    Sec. 2. Minnesota Statutes 2010, section 40A.15, subdivision 2, is amended to read: 73.14    Subd. 2. Eligible recipients. All counties within the state, municipalities that 73.15prepare plans and official controls instead of a county, and districts are eligible for 73.16assistance under the program. Counties and districts may apply for assistance on behalf 73.17of other municipalities. In order to be eligible for financial assistance a county or 73.18municipality must agree to levy at least 0.01209 percent of taxable new text begin estimated new text end market 73.19value for agricultural land preservation and conservation activities or otherwise spend the 73.20equivalent amount of local money on those activities, or spend $15,000 of local money, 73.21whichever is less. 73.22    Sec. 3. Minnesota Statutes 2010, section 69.011, subdivision 1, is amended to read: 73.23    Subdivision 1. Definitions. Unless the language or context clearly indicates that 73.24a different meaning is intended, the following words and terms, for the purposes of this 73.25chapter and chapters 423, 423A, 424 and 424A, have the meanings ascribed to them: 73.26    (a) "Commissioner" means the commissioner of revenue. 73.27    (b) "Municipality" means: 73.28    (1) a home rule charter or statutory city; 73.29    (2) an organized town; 73.30    (3) a park district subject to chapter 398; 73.31    (4) the University of Minnesota; 73.32    (5) for purposes of the fire state aid program only, an American Indian tribal 73.33government entity located within a federally recognized American Indian reservation; 74.1    (6) for purposes of the police state aid program only, an American Indian tribal 74.2government with a tribal police department which exercises state arrest powers under 74.3section 626.90, 626.91, 626.92, or 626.93; 74.4    (7) for purposes of the police state aid program only, the Metropolitan Airports 74.5Commission; and 74.6    (8) for purposes of the police state aid program only, the Department of Natural 74.7Resources and the Department of Public Safety with respect to peace officers covered 74.8under chapter 352B. 74.9    (c) "Minnesota Firetown Premium Report" means a form prescribed by the 74.10commissioner containing space for reporting by insurers of fire, lightning, sprinkler 74.11leakage and extended coverage premiums received upon risks located or to be performed 74.12in this state less return premiums and dividends. 74.13    (d) "Firetown" means the area serviced by any municipality having a qualified fire 74.14department or a qualified incorporated fire department having a subsidiary volunteer 74.15firefighters' relief association. 74.16    (e) " new text begin Estimated new text end market value" means latest available new text begin estimated new text end market value of all 74.17property in a taxing jurisdiction, whether the property is subject to taxation, or exempt 74.18from ad valorem taxation obtained from information which appears on abstracts filed with 74.19the commissioner of revenue or equalized by the State Board of Equalization. 74.20    (f) "Minnesota Aid to Police Premium Report" means a form prescribed by the 74.21commissioner for reporting by each fire and casualty insurer of all premiums received 74.22upon direct business received by it in this state, or by its agents for it, in cash or otherwise, 74.23during the preceding calendar year, with reference to insurance written for insuring against 74.24the perils contained in auto insurance coverages as reported in the Minnesota business 74.25schedule of the annual financial statement which each insurer is required to file with 74.26the commissioner in accordance with the governing laws or rules less return premiums 74.27and dividends. 74.28    (g) "Peace officer" means any person: 74.29    (1) whose primary source of income derived from wages is from direct employment 74.30by a municipality or county as a law enforcement officer on a full-time basis of not less 74.31than 30 hours per week; 74.32    (2) who has been employed for a minimum of six months prior to December 31 74.33preceding the date of the current year's certification under subdivision 2, clause (b); 74.34    (3) who is sworn to enforce the general criminal laws of the state and local 74.35ordinances; 75.1    (4) who is licensed by the Peace Officers Standards and Training Board and is 75.2authorized to arrest with a warrant; and 75.3    (5) who is a member of the Minneapolis Police Relief Association, the State Patrol 75.4retirement plan, or the public employees police and fire fund. 75.5    (h) "Full-time equivalent number of peace officers providing contract service" means 75.6the integral or fractional number of peace officers which would be necessary to provide 75.7the contract service if all peace officers providing service were employed on a full-time 75.8basis as defined by the employing unit and the municipality receiving the contract service. 75.9    (i) "Retirement benefits other than a service pension" means any disbursement 75.10authorized under section 424A.05, subdivision 3, clauses (3) and (4). 75.11    (j) "Municipal clerk, municipal clerk-treasurer, or county auditor" means the person 75.12who was elected or appointed to the specified position or, in the absence of the person, 75.13another person who is designated by the applicable governing body. In a park district, 75.14the clerk is the secretary of the board of park district commissioners. In the case of the 75.15University of Minnesota, the clerk is that official designated by the Board of Regents. 75.16For the Metropolitan Airports Commission, the clerk is the person designated by the 75.17commission. For the Department of Natural Resources or the Department of Public Safety, 75.18the clerk is the respective commissioner. For a tribal police department which exercises 75.19state arrest powers under section 626.90, 626.91, 626.92, or 626.93, the clerk is the person 75.20designated by the applicable American Indian tribal government. 75.21(k) "Voluntary statewide lump-sum volunteer firefighter retirement plan" means the 75.22retirement plan established by chapter 353G. 75.23    Sec. 4. Minnesota Statutes 2010, section 69.021, subdivision 7, is amended to read: 75.24    Subd. 7. Apportionment of fire state aid to municipalities and relief associations. 75.25(a) The commissioner shall apportion the fire state aid relative to the premiums reported 75.26on the Minnesota Firetown Premium Reports filed under this chapter to each municipality 75.27and/or firefighters relief association. 75.28(b) The commissioner shall calculate an initial fire state aid allocation amount for 75.29each municipality or fire department under paragraph (c) and a minimum fire state aid 75.30allocation amount for each municipality or fire department under paragraph (d). The 75.31municipality or fire department must receive the larger fire state aid amount. 75.32(c) The initial fire state aid allocation amount is the amount available for 75.33apportionment as fire state aid under subdivision 5, without inclusion of any additional 75.34funding amount to support a minimum fire state aid amount under section 423A.02, 75.35subdivision 3 , allocated one-half in proportion to the population as shown in the last 76.1official statewide federal census for each fire town and one-half in proportion to the 76.2 new text begin estimated new text end market value of each fire town, including (1) the new text begin estimated new text end market value of 76.3tax-exempt property and (2) the new text begin estimated new text end market value of natural resources lands 76.4receiving in lieu payments under sections 477A.11 to 477A.14, but excluding the 76.5 new text begin estimated new text end market value of minerals. In the case of incorporated or municipal fire 76.6departments furnishing fire protection to other cities, towns, or townships as evidenced 76.7by valid fire service contracts filed with the commissioner, the distribution must be 76.8adjusted proportionately to take into consideration the crossover fire protection service. 76.9Necessary adjustments must be made to subsequent apportionments. In the case of 76.10municipalities or independent fire departments qualifying for the aid, the commissioner 76.11shall calculate the state aid for the municipality or relief association on the basis of the 76.12population and the new text begin estimated new text end market value of the area furnished fire protection service 76.13by the fire department as evidenced by duly executed and valid fire service agreements 76.14filed with the commissioner. If one or more fire departments are furnishing contracted fire 76.15service to a city, town, or township, only the population and new text begin estimated new text end market value of the 76.16area served by each fire department may be considered in calculating the state aid and 76.17the fire departments furnishing service shall enter into an agreement apportioning among 76.18themselves the percent of the population and the new text begin estimated new text end market value of each service 76.19area. The agreement must be in writing and must be filed with the commissioner. 76.20(d) The minimum fire state aid allocation amount is the amount in addition to the 76.21initial fire state allocation amount that is derived from any additional funding amount 76.22to support a minimum fire state aid amount under section 423A.02, subdivision 3, and 76.23allocated to municipalities with volunteer firefighters relief associations or covered by the 76.24voluntary statewide lump-sum volunteer firefighter retirement plan based on the number 76.25of active volunteer firefighters who are members of the relief association as reported 76.26in the annual financial reporting for the calendar year 1993 to the Office of the State 76.27Auditor, but not to exceed 30 active volunteer firefighters, so that all municipalities or 76.28fire departments with volunteer firefighters relief associations receive in total at least a 76.29minimum fire state aid amount per 1993 active volunteer firefighter to a maximum of 76.3030 firefighters. If a relief association is established after calendar year 1993 and before 76.31calendar year 2000, the number of active volunteer firefighters who are members of the 76.32relief association as reported in the annual financial reporting for calendar year 1998 76.33to the Office of the State Auditor, but not to exceed 30 active volunteer firefighters, 76.34shall be used in this determination. If a relief association is established after calendar 76.35year 1999, the number of active volunteer firefighters who are members of the relief 76.36association as reported in the first annual financial reporting submitted to the Office of 77.1the State Auditor, but not to exceed 20 active volunteer firefighters, must be used in this 77.2determination. If a relief association is terminated as a result of providing retirement 77.3coverage for volunteer firefighters by the voluntary statewide lump-sum volunteer 77.4firefighter retirement plan under chapter 353G, the number of active volunteer firefighters 77.5of the municipality covered by the statewide plan as certified by the executive director of 77.6the Public Employees Retirement Association to the commissioner and the state auditor, 77.7but not to exceed 30 active firefighters, must be used in this determination. 77.8(e) Unless the firefighters of the applicable fire department are members of the 77.9voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid must 77.10be paid to the treasurer of the municipality where the fire department is located and the 77.11treasurer of the municipality shall, within 30 days of receipt of the fire state aid, transmit 77.12the aid to the relief association if the relief association has filed a financial report with the 77.13treasurer of the municipality and has met all other statutory provisions pertaining to the 77.14aid apportionment. If the firefighters of the applicable fire department are members of 77.15the voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid 77.16must be paid to the executive director of the Public Employees Retirement Association 77.17and deposited in the voluntary statewide lump-sum volunteer firefighter retirement fund. 77.18(f) The commissioner may make rules to permit the administration of the provisions 77.19of this section. 77.20(g) Any adjustments needed to correct prior misallocations must be made to 77.21subsequent apportionments. 77.22    Sec. 5. Minnesota Statutes 2010, section 69.021, subdivision 8, is amended to read: 77.23    Subd. 8. Population and new text begin estimated new text end market value. (a) In computations relating to 77.24fire state aid requiring the use of population figures, only official statewide federal census 77.25figures are to be used. Increases or decreases in population disclosed by reason of any 77.26special census must not be taken into consideration. 77.27(b) In calculations relating to fire state aid requiring the use of new text begin estimated new text end market 77.28value property figures, only the latest available new text begin estimated new text end market value property figures 77.29may be used. 77.30    Sec. 6. Minnesota Statutes 2010, section 88.51, subdivision 3, is amended to read: 77.31    Subd. 3. Determination of market value. In determining the net tax capacity of 77.32property within any taxing district the value of the surface of lands within any auxiliary 77.33forest therein, as determined by the county board under the provisions of section 88.48, 78.1subdivision 3 , shall, for all purposes except the levying of taxes on lands within any such 78.2forest, be deemed the new text begin estimated new text end market value thereof. 78.3    Sec. 7. Minnesota Statutes 2010, section 103B.245, subdivision 3, is amended to read: 78.4    Subd. 3. Tax. After adoption of the ordinance under subdivision 2, a local 78.5government unit may annually levy a tax on all taxable property in the district for the 78.6purposes for which the tax district is established. The tax may not exceed 0.02418 percent 78.7of new text begin estimated new text end market value on taxable property located in rural towns other than urban 78.8towns, unless allowed by resolution of the town electors. The proceeds of the tax shall 78.9be paid into a fund reserved for these purposes. Any proceeds remaining in the reserve 78.10fund at the time the tax is terminated or the district is dissolved shall be transferred and 78.11irrevocably pledged to the debt service fund of the local unit to be used solely to reduce 78.12tax levies for bonded indebtedness of taxable property in the district. 78.13    Sec. 8. Minnesota Statutes 2010, section 103B.251, subdivision 8, is amended to read: 78.14    Subd. 8. Tax. (a) For the payment of principal and interest on the bonds issued 78.15under subdivision 7 and the payment required under subdivision 6, the county shall 78.16irrevocably pledge and appropriate the proceeds of a tax levied on all taxable property 78.17located within the territory of the watershed management organization or subwatershed 78.18unit for which the bonds are issued. Each year until the reserve for payment of the bonds 78.19is sufficient to retire the bonds, the county shall levy on all taxable property in the territory 78.20of the organization or unit, without respect to any statutory or other limitation on taxes, an 78.21amount of taxes sufficient to pay principal and interest on the bonds and to restore any 78.22deficiencies in reserves required to be maintained for payment of the bonds. 78.23(b) The tax levied on rural towns other than urban towns may not exceed 0.02418 78.24percent of taxable new text begin estimated new text end market value, unless approved by resolution of the town 78.25electors. 78.26(c) If at any time the amounts available from the levy on property in the territory of 78.27the organization are insufficient to pay principal and interest on the bonds when due, the 78.28county shall make payment from any available funds in the county treasury. 78.29(d) The amount of any taxes which are required to be levied outside of the territory 78.30of the watershed management organization or unit or taken from the general funds of the 78.31county to pay principal or interest on the bonds shall be reimbursed to the county from 78.32taxes levied within the territory of the watershed management organization or unit. 78.33    Sec. 9. Minnesota Statutes 2010, section 103B.635, subdivision 2, is amended to read: 79.1    Subd. 2. Municipal funding of district. (a) The governing body or board of 79.2supervisors of each municipality in the district must provide the funds necessary to meet 79.3its proportion of the total cost determined by the board, provided the total funding from 79.4all municipalities in the district for the costs shall not exceed an amount equal to .00242 79.5percent of the total taxable new text begin estimated new text end market value within the district, unless three-fourths 79.6of the municipalities in the district pass a resolution concurring to the additional costs. 79.7(b) The funds must be deposited in the treasury of the district in amounts and at 79.8times as the treasurer of the district requires. 79.9    Sec. 10. Minnesota Statutes 2010, section 103B.691, subdivision 2, is amended to read: 79.10    Subd. 2. Municipal funding of district. (a) The governing body or board of 79.11supervisors of each municipality in the district shall provide the funds necessary to 79.12meet its proportion of the total cost to be borne by the municipalities as finally certified 79.13by the board. 79.14(b) The municipality's funds may be raised by any means within the authority of 79.15the municipality. The municipalities may each levy a tax not to exceed .02418 percent of 79.16taxable new text begin estimated new text end market value on the taxable property located in the district to provide 79.17the funds. The levy shall be within all other limitations provided by law. 79.18(c) The funds must be deposited into the treasury of the district in amounts and at 79.19times as the treasurer of the district requires. 79.20    Sec. 11. Minnesota Statutes 2010, section 103D.905, subdivision 2, is amended to read: 79.21    Subd. 2. Organizational expense fund. (a) An organizational expense fund, 79.22consisting of an ad valorem tax levy, shall not exceed 0.01596 percent of taxable new text begin estimated new text end 79.23market value, or $60,000, whichever is less. The money in the fund shall be used for 79.24organizational expenses and preparation of the watershed management plan for projects. 79.25(b) The managers may borrow from the affected counties up to 75 percent of the 79.26anticipated funds to be collected from the organizational expense fund levy and the 79.27counties affected may make the advancements. 79.28(c) The advancement of anticipated funds shall be apportioned among affected 79.29counties in the same ratio as the net tax capacity of the area of the counties within 79.30the watershed district bears to the net tax capacity of the entire watershed district. If a 79.31watershed district is enlarged, an organizational expense fund may be levied against the 79.32area added to the watershed district in the same manner as provided in this subdivision. 79.33(d) Unexpended funds collected for the organizational expense may be transferred to 79.34the administrative fund and used for the purposes of the administrative fund. 80.1    Sec. 12. Minnesota Statutes 2010, section 103D.905, subdivision 3, is amended to read: 80.2    Subd. 3. General fund. A general fund, consisting of an ad valorem tax levy, may 80.3not exceed 0.048 percent of taxable new text begin estimated new text end market value, or $250,000, whichever is 80.4less. The money in the fund shall be used for general administrative expenses and for 80.5the construction or implementation and maintenance of projects of common benefit to 80.6the watershed district. The managers may make an annual levy for the general fund as 80.7provided in section 103D.911. In addition to the annual general levy, the managers may 80.8annually levy a tax not to exceed 0.00798 percent of taxable new text begin estimated new text end market value 80.9for a period not to exceed 15 consecutive years to pay the cost attributable to the basic 80.10water management features of projects initiated by petition of a political subdivision 80.11within the watershed district or by petition of at least 50 resident owners whose property 80.12is within the watershed district. 80.13    Sec. 13. Minnesota Statutes 2010, section 103D.905, subdivision 8, is amended to read: 80.14    Subd. 8. Survey and data acquisition fund. (a) A survey and data acquisition fund 80.15is established and used only if other funds are not available to the watershed district to pay 80.16for making necessary surveys and acquiring data. 80.17(b) The survey and data acquisition fund consists of the proceeds of a property tax 80.18that can be levied only once every five years. The levy may not exceed 0.02418 percent of 80.19taxable new text begin estimated new text end market value. 80.20(c) The balance of the survey and data acquisition fund may not exceed $50,000. 80.21(d) In a subsequent proceeding for a project where a survey has been made, the 80.22attributable cost of the survey as determined by the managers shall be included as a part of 80.23the cost of the work and the sum shall be repaid to the survey and data acquisition fund. 80.24    Sec. 14. Minnesota Statutes 2010, section 117.025, subdivision 7, is amended to read: 80.25    Subd. 7. Structurally substandard. "Structurally substandard" means a building: 80.26(1) that was inspected by the appropriate local government and cited for one or more 80.27enforceable housing, maintenance, or building code violations; 80.28(2) in which the cited building code violations involve one or more of the following: 80.29(i) a roof and roof framing element; 80.30(ii) support walls, beams, and headers; 80.31(iii) foundation, footings, and subgrade conditions; 80.32(iv) light and ventilation; 80.33(v) fire protection, including egress; 80.34(vi) internal utilities, including electricity, gas, and water; 81.1(vii) flooring and flooring elements; or 81.2(viii) walls, insulation, and exterior envelope; 81.3(3) in which the cited housing, maintenance, or building code violations have not 81.4been remedied after two notices to cure the noncompliance; and 81.5(4) has uncured housing, maintenance, and building code violations, satisfaction of 81.6which would cost more than 50 percent of the assessor's taxable new text begin estimated new text end market value 81.7for the building, excluding land value, as determined under section 273.11 for property 81.8taxes payable in the year in which the condemnation is commenced. 81.9A local government is authorized to seek from a judge or magistrate an administrative 81.10warrant to gain access to inspect a specific building in a proposed development or 81.11redevelopment area upon showing of probable cause that a specific code violation has 81.12occurred and that the violation has not been cured, and that the owner has denied the local 81.13government access to the property. Items of evidence that may support a conclusion of 81.14probable cause may include recent fire or police inspections, housing inspection, exterior 81.15evidence of deterioration, or other similar reliable evidence of deterioration in the specific 81.16building. 81.17    Sec. 15. Minnesota Statutes 2010, section 127A.48, subdivision 1, is amended to read: 81.18    Subdivision 1. Computation. The Department of Revenue must annually conduct 81.19an assessment/sales ratio study of the taxable property in each new text begin county, city, town, and new text end 81.20school district in accordance with the procedures in subdivisions 2 and 3. Based upon the 81.21results of this assessment/sales ratio study, the Department of Revenue must determine an 81.22aggregate equalized net tax capacity for the various classes of taxable property in each 81.23 new text begin taxing new text end district, new text begin the aggregate of new text end which tax capacity shall be new text begin is new text end designated as the adjusted 81.24net tax capacity. new text begin The adjusted net tax capacity must be reduced by the captured tax new text end 81.25 new text begin capacity of tax increment districts under section 469.177, subdivision 2, fiscal disparities new text end 81.26 new text begin contribution tax capacities under sections 276A.06 and 473F.08, and the tax capacity of new text end 81.27 new text begin transmission lines required to be subtracted from the local tax base under section 273.425; new text end 81.28 new text begin and increased by fiscal disparities distribution tax capacities under sections 276A.06 and new text end 81.29 new text begin 473F.08. new text end The adjusted net tax capacities shall be determined using the net tax capacity 81.30percentages in effect for the assessment year following the assessment year of the study. 81.31The Department of Revenue must make whatever estimates are necessary to account for 81.32changes in the classification system. The Department of Revenue may incur the expense 81.33necessary to make the determinations. The commissioner of revenue may reimburse any 81.34county or governmental official for requested services performed in ascertaining the 81.35adjusted net tax capacity. On or before March 15 annually, the Department of Revenue 82.1shall file with the chair of the Tax Committee of the house of representatives and the 82.2chair of the Committee on Taxes and Tax laws of the senate a report of adjusted net tax 82.3capacities new text begin for school districts new text end . On or before June 15 annually, the Department of Revenue 82.4shall file its final report on the adjusted net tax capacities new text begin for school districts new text end established 82.5by the previous year's assessments and the current year's net tax capacity percentages with 82.6the commissioner of education and each county auditor for those new text begin school new text end districts for 82.7which the auditor has the responsibility for determination of local tax rates. A copy of 82.8the report so filed shall be mailed to the clerk of each new text begin school new text end district involved and to the 82.9county assessor or supervisor of assessments of the county or counties in which each 82.10 new text begin school new text end district is located. 82.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 82.12    Sec. 16. Minnesota Statutes 2010, section 138.053, is amended to read: 82.13138.053 COUNTY HISTORICAL SOCIETY; TAX LEVY; CITIES OR 82.14TOWNS. 82.15The governing body of any home rule charter or statutory city or town may annually 82.16appropriate from its general fund an amount not to exceed 0.02418 percent of taxable new text begin new text end 82.17 new text begin estimated new text end market value, derived from ad valorem taxes on property or other revenues, 82.18to be paid to the historical society of its respective county to be used for the promotion 82.19of historical work and to aid in defraying the expenses of carrying on the historical 82.20work in the county. No city or town may appropriate any funds for the benefit of any 82.21historical society unless the society is affiliated with and approved by the Minnesota 82.22Historical Society. 82.23    Sec. 17. Minnesota Statutes 2010, section 144F.01, subdivision 4, is amended to read: 82.24    Subd. 4. Property tax levy authority. The district's board may levy a tax on the 82.25taxable real and personal property in the district. The ad valorem tax levy may not 82.26exceed 0.048 percent of the taxable new text begin estimated new text end market value of the district or $400,000, 82.27whichever is less. The proceeds of the levy must be used as provided in subdivision 5. 82.28The board shall certify the levy at the times as provided under section 275.07. The board 82.29shall provide the county with whatever information is necessary to identify the property 82.30that is located within the district. If the boundaries include a part of a parcel, the entire 82.31parcel shall be included in the district. The county auditors must spread, collect, and 82.32distribute the proceeds of the tax at the same time and in the same manner as provided by 82.33law for all other property taxes. 83.1    Sec. 18. Minnesota Statutes 2010, section 162.07, subdivision 3, is amended to read: 83.2    Subd. 3. Computation for rural counties. An amount equal to a levy of 0.01596 83.3percent on each rural county's total taxable new text begin estimated new text end market value for the last preceding 83.4calendar year shall be computed and shall be subtracted from the county's total estimated 83.5construction costs. The result thereof shall be the money needs of the county. For the 83.6purpose of this section, "rural counties" means all counties having a population of less 83.7than 175,000. 83.8    Sec. 19. Minnesota Statutes 2010, section 162.07, subdivision 4, is amended to read: 83.9    Subd. 4. Computation for urban counties. An amount equal to a levy of 0.00967 83.10percent on each urban county's total taxable new text begin estimated new text end market value for the last preceding 83.11calendar year shall be computed and shall be subtracted from the county's total estimated 83.12construction costs. The result thereof shall be the money needs of the county. For 83.13the purpose of this section, "urban counties" means all counties having a population 83.14of 175,000 or more. 83.15    Sec. 20. Minnesota Statutes 2010, section 163.04, subdivision 3, is amended to read: 83.16    Subd. 3. Bridges within certain cities. When the council of any statutory city or 83.17city of the third or fourth class may determine that it is necessary to build or improve any 83.18bridge or bridges, including approaches thereto, and any dam or retaining works connected 83.19therewith, upon or forming a part of streets or highways either wholly or partly within 83.20its limits, the county board shall appropriate one-half of the money as may be necessary 83.21therefor from the county road and bridge fund, not exceeding during any year one-half 83.22the amount of taxes paid into the county road and bridge fund during the preceding year, 83.23on property within the corporate limits of the city. The appropriation shall be made upon 83.24the petition of the council, which petition shall be filed by the council with the county 83.25board prior to the fixing by the board of the annual county tax levy. The county board 83.26shall determine the plans and specifications, shall let all necessary contracts, shall have 83.27charge of construction, and upon its request, warrants in payment thereof shall be issued 83.28by the county auditor, from time to time, as the construction work proceeds. Any unpaid 83.29balance may be paid or advanced by the city. On petition of the council, the appropriations 83.30of the county board, during not to exceed three successive years, may be made to apply 83.31on the construction of the same items and to repay any money advanced by the city in 83.32the construction thereof. None of the provisions of this section shall be construed to 83.33be mandatory as applied to any city whose new text begin estimated new text end market value exceeds $2,100 per 83.34capita of its population. 84.1    Sec. 21. Minnesota Statutes 2010, section 163.06, subdivision 6, is amended to read: 84.2    Subd. 6. Expenditure in certain counties. In any county having not less than 95 84.3nor more than 105 full and fractional townships, and having a new text begin an estimated new text end market value 84.4of not less than $12,000,000 nor more than $21,000,000, exclusive of money and credits, 84.5the county board, by resolution, may expend the funds provided in subdivision 4 in any 84.6organized or unorganized township or portion thereof in such county. 84.7    Sec. 22. Minnesota Statutes 2010, section 165.10, subdivision 1, is amended to read: 84.8    Subdivision 1. Certain counties may issue and sell. The county board of any 84.9county having no outstanding road and bridge bonds may issue and sell county road bonds 84.10in an amount not exceeding 0.12089 percent of the new text begin estimated new text end market value of the taxable 84.11property within the county exclusive of money and credits, for the purpose of constructing, 84.12reconstructing, improving, or maintaining any bridge or bridges on any highway under its 84.13jurisdiction, without submitting the matter to a vote of the electors of the county. 84.14    Sec. 23. Minnesota Statutes 2010, section 272.03, is amended by adding a subdivision 84.15to read: 84.16     new text begin Subd. 14. new text end new text begin Estimated market value. new text end new text begin "Estimated market value" means the assessor's new text end 84.17 new text begin determination of market value, including the effects of any orders made under section new text end 84.18 new text begin 270.12 or chapter 274, for the parcel. The provisions of section 273.032 apply for certain new text end 84.19 new text begin uses in determining the total estimated market value for the taxing jurisdiction. new text end 84.20    Sec. 24. Minnesota Statutes 2010, section 272.03, is amended by adding a subdivision 84.21to read: 84.22     new text begin Subd. 15. new text end new text begin Taxable market value. new text end new text begin "Taxable market value" means estimated market new text end 84.23 new text begin value for the parcel as reduced by market value exclusions, deferments of value, or other new text end 84.24 new text begin adjustments, required by law, that reduce market value before the application of class rates. new text end 84.25    Sec. 25. Minnesota Statutes 2010, section 273.032, is amended to read: 84.26273.032 MARKET VALUE DEFINITION. 84.27 new text begin (a) Unless otherwise provided, new text end for the purpose of determining any property tax 84.28levy limitation based on market value new text begin or any limit on net debt, the issuance of bonds, new text end 84.29 new text begin certificates of indebtedness, or capital notes based on market value new text end , any qualification to 84.30receive state aid based on market value, or any state aid amount based on market value, 84.31the terms "market value," "taxable new text begin estimated new text end market value," and "market valuation," 84.32whether equalized or unequalized, mean the total taxable new text begin estimated new text end market value of 85.1 new text begin taxable new text end property within the local unit of government before any new text begin of the following or new text end 85.2 new text begin similar new text end adjustments for new text begin : new text end 85.3 new text begin (1) the market value exclusions under: new text end 85.4 new text begin (i) section 273.11, subdivisions 14a and 14c (vacant platted land); new text end 85.5 new text begin (ii) section new text end new text begin 273.11, subdivision 16 new text end new text begin (certain improvements to homestead property); new text end 85.6 new text begin (iii) section 273.11, subdivisions 19 and 20 (certain improvements to business new text end 85.7 new text begin properties); new text end 85.8 new text begin (iv) section 273.11, subdivision 21 (homestead property damaged by mold); new text end 85.9 new text begin (v) section 273.11, subdivision 22 (qualifying lead hazardous reduction projects); new text end 85.10 new text begin (vi) section 273.13, subdivision 34 (homestead of a disabled veteran, spouse, or new text end 85.11 new text begin caregiver); new text end 85.12 new text begin (vii) section 273.13, subdivision 35 (homestead market value exclusion); or new text end 85.13 new text begin (2) the deferment of value under: new text end 85.14 new text begin (i) the Minnesota Agricultural Property Tax Law, section 273.111; new text end 85.15 new text begin (ii) the Aggregate Resource Preservation Property Tax Law, section 273.1115; new text end 85.16 new text begin (iii) the Minnesota Open Space Property Tax Law, section 273.112; new text end 85.17 new text begin (iv) the rural preserves property tax program, section 273.114; or new text end 85.18 new text begin (v) the Metropolitan Agricultural Preserves Act, section 473H.10; or new text end 85.19 new text begin (3) the adjustments to tax capacity for: new text end 85.20 new text begin (i) new text end tax increment, new text begin financing under sections 469.174 to 469.1794; new text end 85.21 new text begin (ii) new text end fiscal disparity, new text begin disparities under chapter 276A or 473F; or new text end 85.22 new text begin (iii) new text end powerline credit, or wind energy values, but after the limited market adjustments 85.23under section 273.11, subdivision 1a, and after the market value exclusions of certain 85.24improvements to homestead property under section 273.11, subdivision 16 new text begin under section new text end 85.25 new text begin 273.425 new text end . 85.26 new text begin (b) Estimated market value under paragraph (a) also includes the market value new text end 85.27 new text begin of tax exempt property if the applicable law specifically provides that the limitation, new text end 85.28 new text begin qualification, or aid calculation includes tax exempt property. new text end 85.29 new text begin (c) new text end Unless otherwise provided, "market value," "taxable new text begin estimated new text end market value," 85.30and "market valuation" for purposes of this paragraph new text begin property tax levy limitations and new text end 85.31 new text begin calculation of state aid new text end , refer to the taxable new text begin estimated new text end market value for the previous 85.32assessment year new text begin and for purposes of limits on net debt, the issuance of bonds, certificates of new text end 85.33 new text begin indebtedness, or capital notes refer to the estimated market value as last finally equalized new text end . 85.34For the purpose of determining any net debt limit based on market value, or any limit 85.35on the issuance of bonds, certificates of indebtedness, or capital notes based on market 85.36value, the terms "market value," "taxable market value," and "market valuation," whether 86.1equalized or unequalized, mean the total taxable market value of property within the local 86.2unit of government before any adjustments for tax increment, fiscal disparity, powerline 86.3credit, or wind energy values, but after the limited market value adjustments under section 86.4, subdivision 1a, and after the market value exclusions of certain improvements to 86.5homestead property under section , subdivision 16. Unless otherwise provided, 86.6"market value," "taxable market value," and "market valuation" for purposes of this 86.7paragraph, mean the taxable market value as last finally equalized. 86.8 new text begin (d) For purposes of a provision of a home rule charter or of any special law that is new text end 86.9 new text begin not codified in the statutes and that imposes a levy limitation based on market value or new text end 86.10 new text begin any limit on debt, the issuance of bonds, certificates of indebtedness, or capital notes new text end 86.11 new text begin based on market value, the terms "market value," "taxable market value," and "market new text end 86.12 new text begin valuation," whether equalized or unequalized, mean "estimated market value" as defined new text end 86.13 new text begin in paragraph (a). new text end 86.14    Sec. 26. Minnesota Statutes 2010, section 273.11, subdivision 1, is amended to read: 86.15    Subdivision 1. Generally. Except as provided in this section or section 273.17, 86.16subdivision 1 , all property shall be valued at its market value. The market value as 86.17determined pursuant to this section shall be stated such that any amount under $100 is 86.18rounded up to $100 and any amount exceeding $100 shall be rounded to the nearest $100. 86.19In estimating and determining such value, the assessor shall not adopt a lower or different 86.20standard of value because the same is to serve as a basis of taxation, nor shall the assessor 86.21adopt as a criterion of value the price for which such property would sell at a forced sale, 86.22or in the aggregate with all the property in the town or district; but the assessor shall value 86.23each article or description of property by itself, and at such sum or price as the assessor 86.24believes the same to be fairly worth in money. The assessor shall take into account the 86.25effect on the market value of property of environmental factors in the vicinity of the 86.26property. In assessing any tract or lot of real property, the value of the land, exclusive of 86.27structures and improvements, shall be determined, and also the value of all structures and 86.28improvements thereon, and the aggregate value of the property, including all structures 86.29and improvements, excluding the value of crops growing upon cultivated land. In valuing 86.30real property upon which there is a mine or quarry, it shall be valued at such price as such 86.31property, including the mine or quarry, would sell for at a fair, voluntary sale, for cash, 86.32if the material being mined or quarried is not subject to taxation under section 298.015 86.33and the mine or quarry is not exempt from the general property tax under section 298.25. 86.34In valuing real property which is vacant, platted property shall be assessed as provided 86.35in subdivision 14 new text begin subdivisions 14a and 14c new text end . All property, or the use thereof, which is 87.1taxable under section 272.01, subdivision 2, or 273.19, shall be valued at the market 87.2value of such property and not at the value of a leasehold estate in such property, or at 87.3some lesser value than its market value. 87.4    Sec. 27. Minnesota Statutes 2010, section 273.13, subdivision 21b, is amended to read: 87.5    Subd. 21b. new text begin Net new text end tax capacity. (a) Gross tax capacity means the product of the 87.6appropriate gross class rates in this section and market values. 87.7(b) Net tax capacity means the product of the appropriate net class rates in this 87.8section and new text begin taxable new text end market values. 87.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 87.10    Sec. 28. Minnesota Statutes 2010, section 273.1398, subdivision 3, is amended to read: 87.11    Subd. 3. Disparity reduction aid. The amount of disparity aid certified for each 87.12taxing district within each unique taxing jurisdiction for taxes payable in the prior year 87.13shall be multiplied by the ratio of (1) the jurisdiction's tax capacity using the class rates for 87.14taxes payable in the year for which aid is being computed, to (2) its tax capacity using 87.15the class rates for taxes payable in the year prior to that for which aid is being computed, 87.16both based upon new text begin taxable new text end market values for taxes payable in the year prior to that for which 87.17aid is being computed. If the commissioner determines that insufficient information is 87.18available to reasonably and timely calculate the numerator in this ratio for the first taxes 87.19payable year that a class rate change or new class rate is effective, the commissioner shall 87.20omit the effects of that class rate change or new class rate when calculating this ratio for 87.21aid payable in that taxes payable year. For aid payable in the year following a year for 87.22which such omission was made, the commissioner shall use in the denominator for the 87.23class that was changed or created, the tax capacity for taxes payable two years prior to that 87.24in which the aid is payable, based on new text begin taxable new text end market values for taxes payable in the year 87.25prior to that for which aid is being computed. 87.26    Sec. 29. Minnesota Statutes 2010, section 273.1398, subdivision 4, is amended to read: 87.27    Subd. 4. Disparity reduction credit. (a) Beginning with taxes payable in 1989, 87.28class 4a, class 3a, and class 3b property qualifies for a disparity reduction credit if: (1) 87.29the property is located in a border city that has an enterprise zone designated pursuant 87.30to section 469.168, subdivision 4; (2) the property is located in a city with a population 87.31greater than 2,500 and less than 35,000 according to the 1980 decennial census; (3) the 87.32city is adjacent to a city in another state or immediately adjacent to a city adjacent to a city 88.1in another state; and (4) the adjacent city in the other state has a population of greater than 88.25,000 and less than 75,000 according to the 1980 decennial census. 88.3    (b) The credit is an amount sufficient to reduce (i) the taxes levied on class 4a 88.4property to 2.3 percent of the property's new text begin taxable new text end market value and (ii) the tax on class 3a 88.5and class 3b property to 2.3 percent of new text begin taxable new text end market value. 88.6    (c) The county auditor shall annually certify the costs of the credits to the 88.7Department of Revenue. The department shall reimburse local governments for the 88.8property taxes forgone as the result of the credits in proportion to their total levies. 88.9    Sec. 30. Minnesota Statutes 2010, section 275.011, subdivision 1, is amended to read: 88.10    Subdivision 1. Determination of levy limit. The property tax levied for any 88.11purpose under a special law that is not codified in Minnesota Statutes or a city charter 88.12provision and that is subject to a mill rate limitation imposed by the special law or city 88.13charter provision, excluding levies subject to mill rate limitations that use adjusted 88.14assessed values determined by the commissioner of revenue under section 124.2131, must 88.15not exceed the following amount for the years specified: 88.16(a) for taxes payable in 1988, the product of the applicable mill rate limitation 88.17imposed by special law or city charter provision multiplied by the total assessed valuation 88.18of all taxable property subject to the tax as adjusted by the provisions of Minnesota 88.19Statutes 1986, sections 272.64; 273.13, subdivision 7a; and 275.49; 88.20(b) for taxes payable in 1989, the product of (1) the property tax levy limitation for 88.21the taxes payable year 1988 determined under clause (a) multiplied by (2) an index for 88.22market valuation changes equal to the assessment year 1988 total market valuation of all 88.23taxable property subject to the tax divided by the assessment year 1987 total market 88.24valuation of all taxable property subject to the tax; and 88.25(c) for taxes payable in 1990 and subsequent years, the product of (1) the property 88.26tax levy limitation for the previous year determined pursuant to this subdivision multiplied 88.27by (2) an index for market valuation changes equal to the total market valuation of all 88.28taxable property subject to the tax for the current assessment year divided by the total 88.29market valuation of all taxable property subject to the tax for the previous assessment year. 88.30For the purpose of determining the property tax levy limitation for the taxes payable 88.31year 1988 new text begin 2013 new text end and subsequent years under this subdivision, "total market valuation" 88.32means the total new text begin estimated new text end market valuation new text begin value new text end of all taxable property subject to the 88.33tax without valuation adjustments for fiscal disparities (chapters 276A and 473F), tax 88.34increment financing (sections to 469.179), or powerline credit (section 273.425) new text begin new text end 88.35 new text begin as provided under section 273.032 new text end . 89.1    Sec. 31. Minnesota Statutes 2010, section 275.077, subdivision 2, is amended to read: 89.2    Subd. 2. Correction of levy amount. The difference between the correct levy and 89.3the erroneous levy shall be added to the township levy for the subsequent levy year; 89.4provided that if the amount of the difference exceeds 0.12089 percent of taxable new text begin estimated new text end 89.5market value, the excess shall be added to the township levy for the second and later 89.6subsequent levy years, not to exceed an additional levy of 0.12089 percent of taxable new text begin new text end 89.7 new text begin estimated new text end market value in any year, until the full amount of the difference has been levied. 89.8The funds collected from the corrected levies shall be used to reimburse the county for the 89.9payment required by subdivision 1. 89.10    Sec. 32. Minnesota Statutes 2010, section 275.71, subdivision 4, is amended to read: 89.11    Subd. 4. Adjusted levy limit base. For taxes levied in 2008 through 2010, the 89.12adjusted levy limit base is equal to the levy limit base computed under subdivision 2 89.13or section 275.72, multiplied by: 89.14    (1) one plus the percentage growth in the implicit price deflator, but the percentage 89.15shall not be less than zero or exceed 3.9 percent; 89.16    (2) one plus a percentage equal to 50 percent of the percentage increase in the number 89.17of households, if any, for the most recent 12-month period for which data is available; and 89.18    (3) one plus a percentage equal to 50 percent of the percentage increase in the 89.19taxable new text begin estimated new text end market value of the jurisdiction due to new construction of class 3 89.20property, as defined in section 273.13, subdivision 4, except for state-assessed utility and 89.21railroad property, for the most recent year for which data is available. 89.22    Sec. 33. Minnesota Statutes 2011 Supplement, section 276.04, subdivision 2, is 89.23amended to read: 89.24    Subd. 2. Contents of tax statements. (a) The treasurer shall provide for the 89.25printing of the tax statements. The commissioner of revenue shall prescribe the form of 89.26the property tax statement and its contents. The tax statement must not state or imply 89.27that property tax credits are paid by the state of Minnesota. The statement must contain 89.28a tabulated statement of the dollar amount due to each taxing authority and the amount 89.29of the state tax from the parcel of real property for which a particular tax statement is 89.30prepared. The dollar amounts attributable to the county, the state tax, the voter approved 89.31school tax, the other local school tax, the township or municipality, and the total of 89.32the metropolitan special taxing districts as defined in section 275.065, subdivision 3, 89.33paragraph (i), must be separately stated. The amounts due all other special taxing districts, 89.34if any, may be aggregated except that any levies made by the regional rail authorities in the 90.1county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 90.2398A shall be listed on a separate line directly under the appropriate county's levy. If the 90.3county levy under this paragraph includes an amount for a lake improvement district as 90.4defined under sections 103B.501 to 103B.581, the amount attributable for that purpose 90.5must be separately stated from the remaining county levy amount. In the case of Ramsey 90.6County, if the county levy under this paragraph includes an amount for public library 90.7service under section 134.07, the amount attributable for that purpose may be separated 90.8from the remaining county levy amount. The amount of the tax on homesteads qualifying 90.9under the senior citizens' property tax deferral program under chapter 290B is the total 90.10amount of property tax before subtraction of the deferred property tax amount. The 90.11amount of the tax on contamination value imposed under sections 270.91 to 270.98, if any, 90.12must also be separately stated. The dollar amounts, including the dollar amount of any 90.13special assessments, may be rounded to the nearest even whole dollar. For purposes of this 90.14section whole odd-numbered dollars may be adjusted to the next higher even-numbered 90.15dollar. The amount of market value excluded under section 273.11, subdivision 16, if any, 90.16must also be listed on the tax statement. 90.17    (b) The property tax statements for manufactured homes and sectional structures 90.18taxed as personal property shall contain the same information that is required on the 90.19tax statements for real property. 90.20    (c) Real and personal property tax statements must contain the following information 90.21in the order given in this paragraph. The information must contain the current year tax 90.22information in the right column with the corresponding information for the previous year 90.23in a column on the left: 90.24    (1) the property's estimated market value under section 273.11, subdivision 1; 90.25(2) the property's homestead market value exclusion under section 273.13, 90.26subdivision 35; 90.27    (3) the property's taxable market value after reductions under sections , 90.28subdivisions 1a and 16, and 273.13, subdivision 35 new text begin section 272.03, subdivision 15 new text end ; 90.29    (4) the property's gross tax, before credits; 90.30    (5) for homestead agricultural properties, the credit under section 273.1384; 90.31    (6) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135; 90.32273.1391 ; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of 90.33credit received under section 273.135 must be separately stated and identified as "taconite 90.34tax relief"; and 90.35    (7) the net tax payable in the manner required in paragraph (a). 91.1    (d) If the county uses envelopes for mailing property tax statements and if the county 91.2agrees, a taxing district may include a notice with the property tax statement notifying 91.3taxpayers when the taxing district will begin its budget deliberations for the current 91.4year, and encouraging taxpayers to attend the hearings. If the county allows notices to 91.5be included in the envelope containing the property tax statement, and if more than 91.6one taxing district relative to a given property decides to include a notice with the tax 91.7statement, the county treasurer or auditor must coordinate the process and may combine 91.8the information on a single announcement. 91.9    Sec. 34. Minnesota Statutes 2010, section 276A.01, subdivision 10, is amended to read: 91.10    Subd. 10. new text begin Adjusted new text end market value. " new text begin Adjusted new text end market value" of real and personal 91.11property within a municipality means the assessor's estimated new text begin taxable new text end market value new text begin , new text end 91.12 new text begin as defined in section 272.03, new text end of all real and personal property, including the value of 91.13manufactured housing, within the municipality. For purposes of sections to 91.14, the commissioner of revenue shall annually make determinations and reports 91.15with respect to each municipality which are comparable to those it makes for school 91.16districts new text begin , adjusted for sales ratios in a manner similar to the adjustments made to city and new text end 91.17 new text begin town net tax capacities new text end under section 127A.48, subdivisions 1 to 6, in the same manner 91.18and at the same times prescribed by the subdivision. The commissioner of revenue shall 91.19annually determine, for each municipality, information comparable to that required by 91.20section 475.53, subdivision 4, for school districts, as soon as practicable after it becomes 91.21available. The commissioner of revenue shall then compute the equalized market value of 91.22property within each municipality. 91.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 91.24    Sec. 35. Minnesota Statutes 2010, section 276A.01, subdivision 12, is amended to read: 91.25    Subd. 12. Fiscal capacity. "Fiscal capacity" of a municipality means its valuation new text begin new text end 91.26 new text begin adjusted market value new text end , determined as of January 2 of any year, divided by its population, 91.27determined as of a date in the same year. 91.28    Sec. 36. Minnesota Statutes 2010, section 276A.01, subdivision 13, is amended to read: 91.29    Subd. 13. Average fiscal capacity. "Average fiscal capacity" of municipalities 91.30means the sum of the valuations new text begin adjusted market values new text end of all municipalities, determined 91.31as of January 2 of any year, divided by the sum of their populations, determined as of 91.32a date in the same year. 92.1    Sec. 37. Minnesota Statutes 2010, section 276A.01, subdivision 15, is amended to read: 92.2    Subd. 15. Net tax capacity. "Net tax capacity" means the new text begin taxable new text end market value of 92.3real and personal property multiplied by its net tax capacity rates in section 273.13. 92.4    Sec. 38. Minnesota Statutes 2010, section 287.08, is amended to read: 92.5287.08 TAX, HOW PAYABLE; RECEIPTS. 92.6    (a) The tax imposed by sections 287.01 to 287.12 must be paid to the treasurer of 92.7any county in this state in which the real property or some part is located at or before 92.8the time of filing the mortgage for record. The treasurer shall endorse receipt on the 92.9mortgage and the receipt is conclusive proof that the tax has been paid in the amount 92.10stated and authorizes any county recorder or registrar of titles to record the mortgage. Its 92.11form, in substance, shall be "registration tax hereon of ..................... dollars paid." If the 92.12mortgage is exempt from taxation the endorsement shall, in substance, be "exempt from 92.13registration tax." In either case the receipt must be signed by the treasurer. In case the 92.14treasurer is unable to determine whether a claim of exemption should be allowed, the tax 92.15must be paid as in the case of a taxable mortgage. For documents submitted electronically, 92.16the endorsements and tax amount shall be affixed electronically and no signature by the 92.17treasurer will be required. The actual payment method must be arranged in advance 92.18between the submitter and the receiving county. 92.19    (b) The county treasurer may refund in whole or in part any mortgage registry tax 92.20overpayment if a written application by the taxpayer is submitted to the county treasurer 92.21within 3-1/2 years from the date of the overpayment. If the county has not issued a denial 92.22of the application, the taxpayer may bring an action in Tax Court in the county in which 92.23the tax was paid at any time after the expiration of six months from the time that the 92.24application was submitted. A denial of refund may be appealed within 60 days from 92.25the date of the denial by bringing an action in Tax Court in the county in which the tax 92.26was paid. The action is commenced by the serving of a petition for relief on the county 92.27treasurer, and by filing a copy with the court. The county attorney shall defend the action. 92.28The county treasurer shall notify the treasurer of each county that has or would receive a 92.29portion of the tax as paid. 92.30    (c) If the county treasurer determines a refund should be paid, or if a refund is 92.31ordered by the court, the county treasurer of each county that actually received a portion 92.32of the tax shall immediately pay a proportionate share of three percent of the refund 92.33using any available county funds. The county treasurer of each county that received, or 92.34would have received, a portion of the tax shall also pay their county's proportionate share 92.35of the remaining 97 percent of the court-ordered refund on or before the 20th day of the 93.1following month using solely the mortgage registry tax funds that would be paid to the 93.2commissioner of revenue on that date under section 287.12. If the funds on hand under 93.3this procedure are insufficient to fully fund 97 percent of the court-ordered refund, the 93.4county treasurer of the county in which the action was brought shall file a claim with the 93.5commissioner of revenue under section 16A.48 for the remaining portion of 97 percent of 93.6the refund, and shall pay over the remaining portion upon receipt of a warrant from the 93.7state issued pursuant to the claim. 93.8    (d) When any mortgage covers real property located in more than one county in this 93.9state the total tax must be paid to the treasurer of the county where the mortgage is first 93.10presented for recording, and the payment must be receipted as provided in paragraph 93.11(a). If the principal debt or obligation secured by such a multiple county mortgage 93.12exceeds $10,000,000, the nonstate portion of the tax must be divided and paid over by 93.13the county treasurer receiving it, on or before the 20th day of each month after receipt, 93.14to the county or counties entitled in the ratio that the new text begin estimated new text end market value of the real 93.15property covered by the mortgage in each county bears to the new text begin estimated new text end market value of 93.16all the real property in this state described in the mortgage. In making the division and 93.17payment the county treasurer shall send a statement giving the description of the real 93.18property described in the mortgage and the new text begin estimated new text end market value of the part located in 93.19each county. For this purpose, the treasurer of any county may require the treasurer of 93.20any other county to certify to the former the new text begin estimated new text end market valuation new text begin value new text end of any tract 93.21of real property in any mortgage. 93.22    (e) The mortgagor must pay the tax imposed by sections 287.01 to 287.12. The 93.23mortgagee may undertake to collect and remit the tax on behalf of the mortgagor. If the 93.24mortgagee collects money from the mortgagor to remit the tax on behalf of the mortgagor, 93.25the mortgagee has a fiduciary duty to remit the tax on behalf of the mortgagor as to the 93.26amount of the tax collected for that purpose and the mortgagor is relieved of any further 93.27obligation to pay the tax as to the amount collected by the mortgagee for this purpose. 93.28    Sec. 39. Minnesota Statutes 2010, section 287.23, subdivision 1, is amended to read: 93.29    Subdivision 1. Real property outside county. If any taxable deed or instrument 93.30describes any real property located in more than one county in this state, the total tax must 93.31be paid to the treasurer of the county where the document is first presented for recording, 93.32and the payment must be receipted as provided in section 287.08. If the net consideration 93.33exceeds $700,000, the nonstate portion of the tax must be divided and paid over by the 93.34county treasurer receiving it, on or before the 20th day of each month after receipt, to 93.35the county or counties entitled in the ratio which the new text begin estimated new text end market value of the real 94.1property covered by the document in each county bears to the new text begin estimated new text end market value of 94.2all the real property in this state described in the document. In making the division and 94.3payment the county treasurer shall send a statement to the other involved counties giving 94.4the description of the real property described in the document and the new text begin estimated new text end market 94.5value of the part located in each county. The treasurer of any county may require the 94.6treasurer of any other county to certify to the former the new text begin estimated new text end market valuation new text begin value new text end 94.7of any parcel of real property for this purpose. 94.8    Sec. 40. Minnesota Statutes 2010, section 353G.08, subdivision 2, is amended to read: 94.9    Subd. 2. Cash flow funding requirement. If the executive director determines that 94.10an account in the voluntary statewide lump-sum volunteer firefighter retirement plan has 94.11insufficient assets to meet the service pensions determined payable from the account, 94.12the executive director shall certify the amount of the potential service pension shortfall 94.13to the municipality or municipalities and the municipality or municipalities shall make 94.14an additional employer contribution to the account within ten days of the certification. 94.15If more than one municipality is associated with the account, unless the municipalities 94.16agree to a different allocation, the municipalities shall allocate the additional employer 94.17contribution one-half in proportion to the population of each municipality and one-half in 94.18proportion to the new text begin estimated new text end market value of the property of each municipality. 94.19    Sec. 41. Minnesota Statutes 2010, section 365.025, subdivision 4, is amended to read: 94.20    Subd. 4. Major purchases: notice, petition, election. Before buying anything 94.21under subdivision 2 that costs more than 0.24177 percent of the new text begin estimated new text end market value of 94.22the town, the town must follow this subdivision. 94.23The town must publish in its official newspaper the board's resolution to pay for the 94.24property over time. Then a petition for an election on the contract may be filed with the 94.25clerk. The petition must be filed within ten days after the resolution is published. To 94.26require the election the petition must be signed by a number of voters equal to ten percent 94.27of the voters at the last regular town election. The contract then must be approved by a 94.28majority of those voting on the question. The question may be voted on at a regular 94.29or special election. 94.30    Sec. 42. Minnesota Statutes 2010, section 366.095, subdivision 1, is amended to read: 94.31    Subdivision 1. Certificates of indebtedness. The town board may issue certificates 94.32of indebtedness within the debt limits for a town purpose otherwise authorized by law. 94.33The certificates shall be payable in not more than ten years and be issued on the terms and 95.1in the manner as the board may determine. If the amount of the certificates to be issued 95.2exceeds 0.25 percent of the new text begin estimated new text end market value of the town, they shall not be issued 95.3for at least ten days after publication in a newspaper of general circulation in the town of 95.4the board's resolution determining to issue them. If within that time, a petition asking for 95.5an election on the proposition signed by voters equal to ten percent of the number of voters 95.6at the last regular town election is filed with the clerk, the certificates shall not be issued 95.7until their issuance has been approved by a majority of the votes cast on the question at 95.8a regular or special election. A tax levy shall be made to pay the principal and interest 95.9on the certificates as in the case of bonds. 95.10    Sec. 43. Minnesota Statutes 2010, section 366.27, is amended to read: 95.11366.27 FIREFIGHTERS' RELIEF; TAX LEVY. 95.12The town board of any town in this state having therein a platted portion on 95.13which resides 1,200 or more people, and wherein a duly incorporated firefighters' relief 95.14association is located may each year levy a tax not to exceed 0.00806 percent of taxable new text begin new text end 95.15 new text begin estimated new text end market value for the benefit of the relief association. 95.16    Sec. 44. Minnesota Statutes 2010, section 368.01, subdivision 23, is amended to read: 95.17    Subd. 23. Financing purchase of certain equipment. The town board may issue 95.18certificates of indebtedness within debt limits to purchase fire or police equipment or 95.19ambulance equipment or street construction or maintenance equipment. The certificates 95.20shall be payable in not more than five years and be issued on terms and in the manner 95.21as the board may determine. If the amount of the certificates to be issued to finance a 95.22purchase exceeds 0.24177 percent of the new text begin estimated new text end market value of the town, excluding 95.23money and credits, they shall not be issued for at least ten days after publication in the 95.24official newspaper of a town board resolution determining to issue them. If before the end 95.25of that time, a petition asking for an election on the proposition signed by voters equal 95.26to ten percent of the number of voters at the last regular town election is filed with the 95.27clerk, the certificates shall not be issued until the proposition of their issuance has been 95.28approved by a majority of the votes cast on the question at a regular or special election. 95.29A tax levy shall be made for the payment of the principal and interest on the certificates 95.30as in the case of bonds. 95.31    Sec. 45. Minnesota Statutes 2010, section 368.47, is amended to read: 95.32368.47 TOWNS MAY BE DISSOLVED. 96.1(1) When the voters residing within a town have failed to elect any town officials for 96.2more than ten years continuously; 96.3(2) when a town has failed for a period of ten years to exercise any of the powers 96.4and functions of a town; 96.5(3) when the new text begin estimated new text end market value of a town drops to less than $165,000; 96.6(4) when the tax delinquency of a town, exclusive of taxes that are delinquent or 96.7unpaid because they are contested in proceedings for the enforcement of taxes, amounts to 96.812 percent of its market value; or 96.9(5) when the state or federal government has acquired title to 50 percent of the 96.10real estate of a town, 96.11which facts, or any of them, may be found and determined by the resolution of the county 96.12board of the county in which the town is located, according to the official records in the 96.13office of the county auditor, the county board by resolution may declare the town, naming 96.14it, dissolved and no longer entitled to exercise any of the powers or functions of a town. 96.15In Cass, Itasca, and St. Louis Counties, before the dissolution is effective the voters 96.16of the town shall express their approval or disapproval. The town clerk shall, upon a 96.17petition signed by a majority of the registered voters of the town, filed with the clerk at 96.18least 60 days before a regular or special town election, give notice at the same time and 96.19in the same manner of the election that the question of dissolution of the town will be 96.20submitted for determination at the election. At the election the question shall be voted 96.21upon by a separate ballot, the terms of which shall be either "for dissolution" or "against 96.22dissolution." The ballot shall be deposited in a separate ballot box and the result of the 96.23voting canvassed, certified, and returned in the same manner and at the same time as 96.24other facts and returns of the election. If a majority of the votes cast at the election are 96.25for dissolution, the town shall be dissolved. If a majority of the votes cast at the election 96.26are against dissolution, the town shall not be dissolved. 96.27When a town is dissolved under sections 368.47 to 368.49 the county shall acquire 96.28title to any telephone company or other business conducted by the town. The business 96.29shall be operated by the board of county commissioners until it can be sold. The 96.30subscribers or patrons of the business shall have the first opportunity of purchase. If the 96.31town has any outstanding indebtedness chargeable to the business, the county auditor shall 96.32levy a tax against the property situated in the dissolved town to pay the indebtedness 96.33as it becomes due. 96.34    Sec. 46. Minnesota Statutes 2010, section 370.01, is amended to read: 96.35370.01 CHANGE OF BOUNDARIES; CREATION OF NEW COUNTIES. 97.1The boundaries of counties may be changed by taking territory from a county and 97.2attaching it to an adjoining county, and new counties may be established out of territory of 97.3one or more existing counties. A new county shall contain at least 400 square miles and 97.4have at least 4,000 inhabitants. A proposed new county must have a total taxable new text begin estimated new text end 97.5market value of at least 35 percent of (i) the total taxable new text begin estimated new text end market value of the 97.6existing county, or (ii) the average total taxable new text begin estimated new text end market value of the existing 97.7counties, included in the proposition. The determination of the taxable new text begin estimated new text end market 97.8value of a county must be made by the commissioner of revenue. An existing county shall 97.9not be reduced in area below 400 square miles, have less than 4,000 inhabitants, or have a 97.10total taxable new text begin estimated new text end market value of less than that required of a new county. 97.11No change in the boundaries of any county having an area of more than 2,500 square 97.12miles, whether by the creation of a new county, or otherwise, shall detach from the existing 97.13county any territory within 12 miles of the county seat. 97.14    Sec. 47. Minnesota Statutes 2010, section 373.40, subdivision 1, is amended to read: 97.15    Subdivision 1. Definitions. For purposes of this section, the following terms have 97.16the meanings given. 97.17(a) "Bonds" means an obligation as defined under section 475.51. 97.18(b) "Capital improvement" means acquisition or betterment of public lands, 97.19buildings, or other improvements within the county for the purpose of a county courthouse, 97.20administrative building, health or social service facility, correctional facility, jail, law 97.21enforcement center, hospital, morgue, library, park, qualified indoor ice arena, roads and 97.22bridges, and the acquisition of development rights in the form of conservation easements 97.23under chapter 84C. An improvement must have an expected useful life of five years or 97.24more to qualify. "Capital improvement" does not include a recreation or sports facility 97.25building (such as, but not limited to, a gymnasium, ice arena, racquet sports facility, 97.26swimming pool, exercise room or health spa), unless the building is part of an outdoor 97.27park facility and is incidental to the primary purpose of outdoor recreation. 97.28(c) "Metropolitan county" means a county located in the seven-county metropolitan 97.29area as defined in section 473.121 or a county with a population of 90,000 or more. 97.30(d) "Population" means the population established by the most recent of the 97.31following (determined as of the date the resolution authorizing the bonds was adopted): 97.32(1) the federal decennial census, 97.33(2) a special census conducted under contract by the United States Bureau of the 97.34Census, or 98.1(3) a population estimate made either by the Metropolitan Council or by the state 98.2demographer under section 4A.02. 98.3(e) "Qualified indoor ice arena" means a facility that meets the requirements of 98.4section 373.43. 98.5(f) "Tax capacity" means total taxable market value, but does not include captured 98.6market value. 98.7    Sec. 48. Minnesota Statutes 2010, section 373.40, subdivision 4, is amended to read: 98.8    Subd. 4. Limitations on amount. A county may not issue bonds under this section 98.9if the maximum amount of principal and interest to become due in any year on all the 98.10outstanding bonds issued pursuant to this section (including the bonds to be issued) will 98.11equal or exceed 0.12 percent of taxable new text begin the estimated new text end market value of property in the 98.12county. Calculation of the limit must be made using the taxable new text begin estimated new text end market value for 98.13the taxes payable year in which the obligations are issued and sold. This section does not 98.14limit the authority to issue bonds under any other special or general law. 98.15    Sec. 49. Minnesota Statutes 2010, section 375.167, subdivision 1, is amended to read: 98.16    Subdivision 1. Appropriations. Notwithstanding any contrary law, a county board 98.17may appropriate from the general revenue fund to any nonprofit corporation a sum not 98.18to exceed 0.00604 percent of taxable new text begin estimated new text end market value to provide legal assistance 98.19to persons who are unable to afford private legal counsel. 98.20    Sec. 50. Minnesota Statutes 2010, section 375.18, subdivision 3, is amended to read: 98.21    Subd. 3. Courthouse. Each county board may erect, furnish, and maintain a 98.22suitable courthouse. No indebtedness shall be created for a courthouse in excess of an 98.23amount equal to a levy of 0.04030 percent of taxable new text begin estimated new text end market value without the 98.24approval of a majority of the voters of the county voting on the question of issuing the 98.25obligation at an election. 98.26    Sec. 51. Minnesota Statutes 2010, section 375.555, is amended to read: 98.27375.555 FUNDING. 98.28To implement the county emergency jobs program, the county board may expend 98.29an amount equal to what would be generated by a levy of 0.01209 percent of taxable new text begin new text end 98.30 new text begin estimated new text end market value. The money to be expended may be from any available funds 98.31not otherwise earmarked. 99.1    Sec. 52. Minnesota Statutes 2010, section 383B.152, is amended to read: 99.2383B.152 BUILDING AND MAINTENANCE FUND. 99.3The county board may by resolution levy a tax to provide money which shall be kept 99.4in a fund known as the county reserve building and maintenance fund. Money in the fund 99.5shall be used solely for the construction, maintenance, and equipping of county buildings 99.6that are constructed or maintained by the board. The levy shall not be subject to any limit 99.7fixed by any other law or by any board of tax levy or other corresponding body, but shall 99.8not exceed 0.02215 percent of taxable new text begin estimated new text end market value, less the amount required by 99.9chapter 475 to be levied in the year for the payment of the principal of and interest on all 99.10bonds issued pursuant to Extra Session Laws 1967, chapter 47, section 1. 99.11    Sec. 53. Minnesota Statutes 2010, section 383B.245, is amended to read: 99.12383B.245 LIBRARY LEVY. 99.13    (a) The county board may levy a tax on the taxable property within the county to 99.14acquire, better, and construct county library buildings and branches and to pay principal 99.15and interest on bonds issued for that purpose. 99.16    (b) The county board may by resolution adopted by a five-sevenths vote issue and 99.17sell general obligation bonds of the county in the manner provided in sections 475.60 to 99.18475.73 . The bonds shall not be subject to the limitations of sections 475.51 to 475.59, 99.19but the maturity years and amounts and interest rates of each series of bonds shall be 99.20fixed so that the maximum amount of principal and interest to become due in any year, 99.21on the bonds of that series and of all outstanding series issued by or for the purposes of 99.22libraries, shall not exceed an amount equal to 0.01612 percent of new text begin estimated new text end market value 99.23of all taxable property in the county as last finally equalized before the issuance of the new 99.24series. When the tax levy authorized in this section is collected it shall be appropriated 99.25and credited to a debt service fund for the bonds in amounts required each year in lieu of a 99.26countywide tax levy for the debt service fund under section 475.61. 99.27    Sec. 54. Minnesota Statutes 2010, section 383B.73, subdivision 1, is amended to read: 99.28    Subdivision 1. Levy. To provide funds for the purposes of the Three Rivers Park 99.29District as set forth in its annual budget, in lieu of the levies authorized by any other 99.30special law for such purposes, the Board of Park District Commissioners may levy 99.31taxes on all the taxable property in the county and park district at a rate not exceeding 99.320.03224 percent of new text begin estimated new text end market value. Notwithstanding section 398.16, on or before 99.33October 1 of each year, after public hearing, the Board of Park District Commissioners 99.34shall adopt a budget for the ensuing year and shall determine the total amount necessary 100.1to be raised from ad valorem tax levies to meet its budget. The Board of Park District 100.2Commissioners shall submit the budget to the county board. The county board may veto 100.3or modify an item contained in the budget. If the county board determines to veto or to 100.4modify an item in the budget, it must, within 15 days after the budget was submitted by 100.5the district board, state in writing the specific reasons for its objection to the item vetoed 100.6or the reason for the modification. The Park District Board, after consideration of the 100.7county board's objections and proposed modifications, may reapprove a vetoed item or the 100.8original version of an item with respect to which a modification has been proposed, by a 100.9two-thirds majority. If the district board does not reapprove a vetoed item, the item shall 100.10be deleted from the budget. If the district board does not reapprove the original version 100.11of a modified item, the item shall be included in the budget as modified by the county 100.12board. After adoption of the final budget and no later than October 1, the superintendent 100.13of the park district shall certify to the office of the Hennepin County director of tax and 100.14public records exercising the functions of the county auditor the total amount to be raised 100.15from ad valorem tax levies to meet its budget for the ensuing year. The director of tax 100.16and public records shall add the amount of any levy certified by the district to other tax 100.17levies on the property of the county within the district for collection by the director of tax 100.18and public records with other taxes. When collected, the director shall make settlement of 100.19such taxes with the district in the same manner as other taxes are distributed to the other 100.20political subdivisions in Hennepin County. 100.21    Sec. 55. Minnesota Statutes 2010, section 383E.20, is amended to read: 100.22383E.20 BONDING FOR COUNTY LIBRARY BUILDINGS. 100.23    The Anoka County Board may, by resolution adopted by a four-sevenths vote, issue 100.24and sell general obligation bonds of the county in the manner provided in chapter 475 to 100.25acquire, better, and construct county library buildings. The bonds shall not be subject to the 100.26requirements of sections 475.57 to 475.59. The maturity years and amounts and interest 100.27rates of each series of bonds shall be fixed so that the maximum amount of principal and 100.28interest to become due in any year, on the bonds of that series and of all outstanding series 100.29issued by or for the purposes of libraries, shall not exceed an amount equal to .01 percent 100.30of the taxable new text begin estimated new text end market value of all taxable property in the county, excluding any 100.31taxable property taxed by any city for the support of any free public library. When the tax 100.32levy authorized in this section is collected, it shall be appropriated and credited to a debt 100.33service fund for the bonds. The tax levy for the debt service fund under section 475.61 100.34shall be reduced by the amount available or reasonably anticipated to be available in the 100.35fund to make payments otherwise payable from the levy pursuant to section 475.61. 101.1    Sec. 56. Minnesota Statutes 2010, section 383E.23, is amended to read: 101.2383E.23 LIBRARY TAX. 101.3The Anoka County Board may levy a tax of not more than .01 percent of the taxable new text begin new text end 101.4 new text begin estimated new text end market value of taxable property located within the county excluding any 101.5taxable property taxed by any city for the support of any free public library, to acquire, 101.6better, and construct county library buildings and to pay principal and interest on bonds 101.7issued for that purpose. The tax shall be disregarded in the calculation of levies or limits 101.8on levies provided by section 373.40, or other law. 101.9    Sec. 57. Minnesota Statutes 2010, section 385.31, is amended to read: 101.10385.31 PAYMENT OF COUNTY ORDERS OR WARRANTS. 101.11When any order or warrant drawn on the treasurer is presented for payment, if there 101.12is money in the treasury for that purpose, the county treasurer shall redeem the same, and 101.13write across the entire face thereof the word "redeemed," the date of the redemption, and 101.14the treasurer's official signature. If there is not sufficient funds in the proper accounts to 101.15pay such orders they shall be numbered and registered in their order of presentation, 101.16and proper endorsement thereof shall be made on such orders and they shall be entitled 101.17to payment in like order. Such orders shall bear interest at not to exceed the rate of six 101.18percent per annum from such date of presentment. The treasurer, as soon as there is 101.19sufficient money in the treasury, shall appropriate and set apart a sum sufficient for the 101.20payment of the orders so presented and registered, and, if entitled to interest, issue to the 101.21original holder a notice that interest will cease in 30 days from the date of such notice; and, 101.22if orders thus entitled to priority of payment are not then presented, the next in order of 101.23registry may be paid until such orders are presented. No interest shall be paid on any order, 101.24except upon a warrant drawn by the county auditor for that purpose, giving the number 101.25and the date of the order on account of which the interest warrant is drawn. In any county 101.26in this state now or hereafter having a new text begin an estimated new text end market value of all taxable property, 101.27exclusive of money and credits, of not less than $1,033,000,000, the county treasurer, in 101.28order to save payment of interest on county warrants drawn upon a fund in which there 101.29shall be temporarily insufficient money in the treasury to redeem the same, may borrow 101.30temporarily from any other fund in the county treasury in which there is a sufficient balance 101.31to care for the needs of such fund and allow a temporary loan or transfer to any other fund, 101.32and may pay such warrants out of such funds. Any such money so transferred and used in 101.33redeeming such county warrants shall be returned to the fund from which drawn as soon 101.34as money shall come in to the credit of such fund on which any such warrant was drawn 101.35and paid as aforesaid. Any county operating on a cash basis may use a combined form of 102.1warrant or order and check, which, when signed by the chair of the county board and by 102.2the auditor, is an order or warrant for the payment of the claim, and, when countersigned 102.3by the county treasurer, is a check for the payment of the amount thereof. 102.4    Sec. 58. Minnesota Statutes 2010, section 394.36, subdivision 1, is amended to read: 102.5    Subdivision 1. Continuation of nonconformity; limitations. Except as provided in 102.6subdivision 2, 3, or 4, any nonconformity, including the lawful use or occupation of land 102.7or premises existing at the time of the adoption of an official control under this chapter, 102.8may be continued, although the use or occupation does not conform to the official control. 102.9If the nonconformity or occupancy is discontinued for a period of more than one year, or 102.10any nonconforming building or structure is destroyed by fire or other peril to the extent of 102.1150 percent of its new text begin estimated new text end market value, any subsequent use or occupancy of the land or 102.12premises shall be a conforming use or occupancy. 102.13    Sec. 59. Minnesota Statutes 2010, section 398A.04, subdivision 8, is amended to read: 102.14    Subd. 8. Taxation. Before deciding to exercise the power to tax, the authority shall 102.15give six weeks' published notice in all municipalities in the region. If a number of voters 102.16in the region equal to five percent of those who voted for candidates for governor at the 102.17last gubernatorial election present a petition within nine weeks of the first published notice 102.18to the secretary of state requesting that the matter be submitted to popular vote, it shall be 102.19submitted at the next general election. The question prepared shall be: 102.20"Shall the regional rail authority have the power to impose a property tax? 102.21 Yes ..... 102.22 No ..... " 102.23If a majority of those voting on the question approve or if no petition is presented 102.24within the prescribed time the authority may levy a tax at any annual rate not exceeding 102.250.04835 percent of new text begin estimated new text end market value of all taxable property situated within the 102.26municipality or municipalities named in its organization resolution. Its recording officer 102.27shall file, on or before September 15, in the office of the county auditor of each county 102.28in which territory under the jurisdiction of the authority is located a certified copy of the 102.29board of commissioners' resolution levying the tax, and each county auditor shall assess 102.30and extend upon the tax rolls of each municipality named in the organization resolution the 102.31portion of the tax that bears the same ratio to the whole amount that the net tax capacity of 102.32taxable property in that municipality bears to the net tax capacity of taxable property in 102.33all municipalities named in the organization resolution. Collections of the tax shall be 102.34remitted by each county treasurer to the treasurer of the authority. For taxes levied in 1991, 103.1the amount levied for light rail transit purposes under this subdivision shall not exceed 75 103.2percent of the amount levied in 1990 for light rail transit purposes under this subdivision. 103.3    Sec. 60. Minnesota Statutes 2010, section 401.05, subdivision 3, is amended to read: 103.4    Subd. 3. Leasing. (a) A county or joint powers board of a group of counties 103.5which acquires or constructs and equips or improves facilities under this chapter may, 103.6with the approval of the board of county commissioners of each county, enter into a 103.7lease agreement with a city situated within any of the counties, or a county housing and 103.8redevelopment authority established under chapter 469 or any special law. Under the lease 103.9agreement, the city or county housing and redevelopment authority shall: 103.10(1) construct or acquire and equip or improve a facility in accordance with plans 103.11prepared by or at the request of a county or joint powers board of the group of counties 103.12and approved by the commissioner of corrections; and 103.13(2) finance the facility by the issuance of revenue bonds. 103.14(b) The county or joint powers board of a group of counties may lease the facility 103.15site, improvements, and equipment for a term upon rental sufficient to produce revenue 103.16for the prompt payment of the revenue bonds and all interest accruing on them. Upon 103.17completion of payment, the lessee shall acquire title. The real and personal property 103.18acquired for the facility constitutes a project and the lease agreement constitutes a revenue 103.19agreement as provided in sections 469.152 to 469.165. All proceedings by the city or 103.20county housing and redevelopment authority and the county or joint powers board shall be 103.21as provided in sections 469.152 to 469.165, with the following adjustments: 103.22(1) no tax may be imposed upon the property; 103.23(2) the approval of the project by the commissioner of employment and economic 103.24development is not required; 103.25(3) the Department of Corrections shall be furnished and shall record information 103.26concerning each project as it may prescribe, in lieu of reports required on other projects to 103.27the commissioner of employment and economic development; 103.28(4) the rentals required to be paid under the lease agreement shall not exceed in any 103.29year one-tenth of one percent of the new text begin estimated new text end market value of property within the county 103.30or group of counties as last equalized before the execution of the lease agreement; 103.31(5) the county or group of counties shall provide for payment of all rentals due 103.32during the term of the lease agreement in the manner required in subdivision 4; 103.33(6) no mortgage on the facilities shall be granted for the security of the bonds, but 103.34compliance with clause (5) may be enforced as a nondiscretionary duty of the county 103.35or group of counties; and 104.1(7) the county or the joint powers board of the group of counties may sublease any 104.2part of the facilities for purposes consistent with their maintenance and operation. 104.3    Sec. 61. Minnesota Statutes 2010, section 410.32, is amended to read: 104.4410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT. 104.5    (a) Notwithstanding any contrary provision of other law or charter, a home rule 104.6charter city may, by resolution and without public referendum, issue capital notes subject 104.7to the city debt limit to purchase capital equipment. 104.8    (b) For purposes of this section, "capital equipment" means: 104.9    (1) public safety equipment, ambulance and other medical equipment, road 104.10construction and maintenance equipment, and other capital equipment; and 104.11    (2) computer hardware and software, whether bundled with machinery or equipment 104.12or unbundled. 104.13    (c) The equipment or software must have an expected useful life at least as long 104.14as the term of the notes. 104.15    (d) The notes shall be payable in not more than ten years and be issued on terms 104.16and in the manner the city determines. The total principal amount of the capital notes 104.17issued in a fiscal year shall not exceed 0.03 percent of the new text begin estimated new text end market value of 104.18taxable property in the city for that year. 104.19    (e) A tax levy shall be made for the payment of the principal and interest on the 104.20notes, in accordance with section 475.61, as in the case of bonds. 104.21    (f) Notes issued under this section shall require an affirmative vote of two-thirds of 104.22the governing body of the city. 104.23    (g) Notwithstanding a contrary provision of other law or charter, a home rule charter 104.24city may also issue capital notes subject to its debt limit in the manner and subject to the 104.25limitations applicable to statutory cities pursuant to section 412.301. 104.26    Sec. 62. Minnesota Statutes 2010, section 412.221, subdivision 2, is amended to read: 104.27    Subd. 2. Contracts. The council shall have power to make such contracts as may 104.28be deemed necessary or desirable to make effective any power possessed by the council. 104.29The city may purchase personal property through a conditional sales contract and real 104.30property through a contract for deed under which contracts the seller is confined to the 104.31remedy of recovery of the property in case of nonpayment of all or part of the purchase 104.32price, which shall be payable over a period of not to exceed five years. When the contract 104.33price of property to be purchased by contract for deed or conditional sales contract 104.34exceeds 0.24177 percent of the new text begin estimated new text end market value of the city, the city may not enter 105.1into such a contract for at least ten days after publication in the official newspaper of a 105.2council resolution determining to purchase property by such a contract; and, if before the 105.3end of that time a petition asking for an election on the proposition signed by voters equal 105.4to ten percent of the number of voters at the last regular city election is filed with the clerk, 105.5the city may not enter into such a contract until the proposition has been approved by a 105.6majority of the votes cast on the question at a regular or special election. 105.7    Sec. 63. Minnesota Statutes 2010, section 412.301, is amended to read: 105.8412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT. 105.9    (a) The council may issue certificates of indebtedness or capital notes subject to the 105.10city debt limits to purchase capital equipment. 105.11    (b) For purposes of this section, "capital equipment" means: 105.12    (1) public safety equipment, ambulance and other medical equipment, road 105.13construction and maintenance equipment, and other capital equipment; and 105.14    (2) computer hardware and software, whether bundled with machinery or equipment 105.15or unbundled. 105.16    (c) The equipment or software must have an expected useful life at least as long as 105.17the terms of the certificates or notes. 105.18    (d) Such certificates or notes shall be payable in not more than ten years and shall be 105.19issued on such terms and in such manner as the council may determine. 105.20    (e) If the amount of the certificates or notes to be issued to finance any such purchase 105.21exceeds 0.25 percent of the new text begin estimated new text end market value of taxable property in the city, they 105.22shall not be issued for at least ten days after publication in the official newspaper of 105.23a council resolution determining to issue them; and if before the end of that time, a 105.24petition asking for an election on the proposition signed by voters equal to ten percent 105.25of the number of voters at the last regular municipal election is filed with the clerk, such 105.26certificates or notes shall not be issued until the proposition of their issuance has been 105.27approved by a majority of the votes cast on the question at a regular or special election. 105.28    (f) A tax levy shall be made for the payment of the principal and interest on such 105.29certificates or notes, in accordance with section 475.61, as in the case of bonds. 105.30    Sec. 64. Minnesota Statutes 2010, section 428A.02, subdivision 1, is amended to read: 105.31    Subdivision 1. Ordinance. The governing body of a city may adopt an ordinance 105.32establishing a special service district. Only property that is classified under section 273.13 105.33and used for commercial, industrial, or public utility purposes, or is vacant land zoned or 105.34designated on a land use plan for commercial or industrial use and located in the special 106.1service district, may be subject to the charges imposed by the city on the special service 106.2district. Other types of property may be included within the boundaries of the special 106.3service district but are not subject to the levies or charges imposed by the city on the 106.4special service district. If 50 percent or more of the new text begin estimated new text end market value of a parcel of 106.5property is classified under section 273.13 as commercial, industrial, or vacant land zoned 106.6or designated on a land use plan for commercial or industrial use, or public utility for the 106.7current assessment year, then the entire new text begin taxable new text end market value of the property is subject to a 106.8service charge based on net tax capacity for purposes of sections 428A.01 to 428A.10. 106.9The ordinance shall describe with particularity the area within the city to be included in 106.10the district and the special services to be furnished in the district. The ordinance may not 106.11be adopted until after a public hearing has been held on the question. Notice of the hearing 106.12shall include the time and place of hearing, a map showing the boundaries of the proposed 106.13district, and a statement that all persons owning property in the proposed district that 106.14would be subject to a service charge will be given opportunity to be heard at the hearing. 106.15Within 30 days after adoption of the ordinance under this subdivision, the governing body 106.16shall send a copy of the ordinance to the commissioner of revenue. 106.17    Sec. 65. Minnesota Statutes 2010, section 430.102, subdivision 2, is amended to read: 106.18    Subd. 2. Council approval; special tax levy limitation. The council shall receive 106.19and consider the estimate required in subdivision 1 and the items of cost after notice and 106.20hearing before it or its appropriate committee as it considers necessary or expedient, 106.21and shall approve the estimate, with necessary amendments. The amounts of each item 106.22of cost estimated are then appropriated to operate, maintain, and improve the pedestrian 106.23mall during the next fiscal year. The amount of the special tax to be charged under 106.24subdivision 1, clause (3), must not, however, exceed 0.12089 percent of new text begin estimated new text end market 106.25value of taxable property in the district. The council shall make any necessary adjustment 106.26in costs of operating and maintaining the district to keep the amount of the tax within 106.27this limitation. 106.28    Sec. 66. Minnesota Statutes 2010, section 447.10, is amended to read: 106.29447.10 TAX LEVY FOR OPERATING AND MAINTAINING HOSPITAL. 106.30The governing body of a city of the first class owning a hospital may annually levy 106.31a tax to operate and maintain the hospital. The tax must not exceed 0.00806 percent of 106.32taxable new text begin estimated new text end market value. 107.1    Sec. 67. Minnesota Statutes 2010, section 450.19, is amended to read: 107.2450.19 TOURIST CAMPING GROUNDS. 107.3A home rule charter or statutory city or town may establish and maintain public 107.4tourist camping grounds. The governing body thereof may acquire by lease, purchase, or 107.5gift, suitable lands located either within or without the corporate limits for use as public 107.6tourist camping grounds and provide for the equipment, operation, and maintenance 107.7of the same. The amount that may be expended for the maintenance, improvement, or 107.8operation of tourist camping grounds shall not exceed, in any year, a sum equal to 0.00806 107.9percent of taxable new text begin estimated new text end market value. 107.10    Sec. 68. Minnesota Statutes 2010, section 450.25, is amended to read: 107.11450.25 MUSEUM, GALLERY, OR SCHOOL OF ARTS OR CRAFTS; TAX 107.12LEVY. 107.13After the acquisition of any museum, gallery, or school of arts or crafts, the board 107.14of park commissioners of the city in which it is located shall cause to be included in the 107.15annual tax levy upon all the taxable property of the county in which the museum, gallery, 107.16or school of arts or crafts is located, a tax of 0.00846 percent of new text begin estimated new text end market value. 107.17The board shall certify the levy to the county auditor and it shall be added to, and collected 107.18with and as part of, the general, real, and personal property taxes, with like penalties and 107.19interest, in case of nonpayment and default, and all provisions of law in respect to the 107.20levy, collection, and enforcement of other taxes shall, so far as applicable, be followed in 107.21respect of these taxes. All of these taxes, penalties, and interest, when collected, shall be 107.22paid to the city treasurer of the city in which is located the museum, gallery, or school 107.23of arts or crafts and credited to a fund to be known as the park museum fund, and shall 107.24be used only for the purposes specified in sections 450.23 to 450.25. Any part of the 107.25proceeds of the levy not expended for the purposes specified in section 450.24 may be 107.26used for the erection of new buildings for the same purposes. 107.27    Sec. 69. Minnesota Statutes 2010, section 458A.10, is amended to read: 107.28458A.10 PROPERTY TAX. 107.29The commission shall annually levy a tax not to exceed 0.12089 percent of new text begin estimated new text end 107.30market value on all the taxable property in the transit area at a rate sufficient to produce 107.31an amount necessary for the purposes of sections 458A.01 to 458A.15, other than the 107.32payment of principal and interest due on any revenue bonds issued pursuant to section 107.33458A.05 . Property taxes levied under this section shall be certified by the commission to 108.1the county auditors of the transit area, extended, assessed, and collected in the manner 108.2provided by law for the property taxes levied by the governing bodies of cities. The 108.3proceeds of the taxes levied under this section shall be remitted by the respective county 108.4treasurers to the treasurer of the commission, who shall credit the same to the funds of 108.5the commission for use for the purposes of sections 458A.01 to 458A.15 subject to any 108.6applicable pledges or limitations on account of tax anticipation certificates or other 108.7specific purposes. At any time after making a tax levy under this section and certifying 108.8it to the county auditors, the commission may issue general obligation certificates of 108.9indebtedness in anticipation of the collection of the taxes as provided by section 412.261. 108.10    Sec. 70. Minnesota Statutes 2010, section 458A.31, subdivision 1, is amended to read: 108.11    Subdivision 1. Levy limit. Notwithstanding anything to the contrary contained in 108.12the charter of the city of Duluth, any ordinance thereof, or any statute applicable thereto, 108.13limiting the amount levied in any one year for general or special purposes, the city council 108.14of the city of Duluth shall each year levy a tax in an amount not to exceed 0.07253 108.15percent of taxable new text begin estimated new text end market value, by ordinance. An ordinance fixing the levy 108.16shall take effect immediately upon its passage and approval. The proceeds of the levy 108.17shall be paid into the city treasury and deposited in the operating fund provided for in 108.18section 458A.24, subdivision 3. 108.19    Sec. 71. Minnesota Statutes 2010, section 465.04, is amended to read: 108.20465.04 ACCEPTANCE OF GIFTS. 108.21Cities of the second, third, or fourth class, having at any time a new text begin an estimated new text end 108.22market value of not more than $41,000,000, exclusive of money and credits, as officially 108.23equalized by the commissioner of revenue, either under home rule charter or under the 108.24laws of this state, in addition to all other powers possessed by them, hereby are authorized 108.25and empowered to receive and accept gifts and donations for the use and benefit of 108.26such cities and the inhabitants thereof upon terms and conditions to be approved by the 108.27governing bodies of such cities; and such cities are authorized to comply with and perform 108.28such terms and conditions, which may include payment to the donor or donors of interest 108.29on the value of the gift at not exceeding five percent per annum payable annually or 108.30semiannually, during the remainder of the natural life or lives of such donor or donors. 108.31    Sec. 72. Minnesota Statutes 2010, section 469.033, subdivision 6, is amended to read: 108.32    Subd. 6. Operation area as taxing district, special tax. All of the territory 108.33included within the area of operation of any authority shall constitute a taxing district for 109.1the purpose of levying and collecting special benefit taxes as provided in this subdivision. 109.2All of the taxable property, both real and personal, within that taxing district shall be 109.3deemed to be benefited by projects to the extent of the special taxes levied under this 109.4subdivision. Subject to the consent by resolution of the governing body of the city in and 109.5for which it was created, an authority may levy a tax upon all taxable property within that 109.6taxing district. The tax shall be extended, spread, and included with and as a part of 109.7the general taxes for state, county, and municipal purposes by the county auditor, to be 109.8collected and enforced therewith, together with the penalty, interest, and costs. As the tax, 109.9including any penalties, interest, and costs, is collected by the county treasurer it shall be 109.10accumulated and kept in a separate fund to be known as the "housing and redevelopment 109.11project fund." The money in the fund shall be turned over to the authority at the same time 109.12and in the same manner that the tax collections for the city are turned over to the city, and 109.13shall be expended only for the purposes of sections 469.001 to 469.047. It shall be paid 109.14out upon vouchers signed by the chair of the authority or an authorized representative. 109.15The amount of the levy shall be an amount approved by the governing body of the city, but 109.16shall not exceed 0.0185 percent of taxable new text begin estimated new text end market value. The authority shall 109.17each year formulate and file a budget in accordance with the budget procedure of the city 109.18in the same manner as required of executive departments of the city or, if no budgets are 109.19required to be filed, by August 1. The amount of the tax levy for the following year shall 109.20be based on that budget. 109.21    Sec. 73. Minnesota Statutes 2010, section 469.034, subdivision 2, is amended to read: 109.22    Subd. 2. General obligation revenue bonds. (a) An authority may pledge the 109.23general obligation of the general jurisdiction governmental unit as additional security for 109.24bonds payable from income or revenues of the project or the authority. The authority 109.25must find that the pledged revenues will equal or exceed 110 percent of the principal and 109.26interest due on the bonds for each year. The proceeds of the bonds must be used for a 109.27qualified housing development project or projects. The obligations must be issued and 109.28sold in the manner and following the procedures provided by chapter 475, except the 109.29obligations are not subject to approval by the electors, and the maturities may extend to 109.30not more than 35 years for obligations sold to finance housing for the elderly and 40 years 109.31for other obligations issued under this subdivision. The authority is the municipality for 109.32purposes of chapter 475. 109.33(b) The principal amount of the issue must be approved by the governing body of 109.34the general jurisdiction governmental unit whose general obligation is pledged. Public 109.35hearings must be held on issuance of the obligations by both the authority and the general 110.1jurisdiction governmental unit. The hearings must be held at least 15 days, but not more 110.2than 120 days, before the sale of the obligations. 110.3(c) The maximum amount of general obligation bonds that may be issued and 110.4outstanding under this section equals the greater of (1) one-half of one percent of the 110.5taxable new text begin estimated new text end market value of the general jurisdiction governmental unit whose 110.6general obligation is pledged, or (2) $3,000,000. In the case of county or multicounty 110.7general obligation bonds, the outstanding general obligation bonds of all cities in the 110.8county or counties issued under this subdivision must be added in calculating the limit 110.9under clause (1). 110.10(d) "General jurisdiction governmental unit" means the city in which the housing 110.11development project is located. In the case of a county or multicounty authority, the 110.12county or counties may act as the general jurisdiction governmental unit. In the case of 110.13a multicounty authority, the pledge of the general obligation is a pledge of a tax on the 110.14taxable property in each of the counties. 110.15(e) "Qualified housing development project" means a housing development project 110.16providing housing either for the elderly or for individuals and families with incomes not 110.17greater than 80 percent of the median family income as estimated by the United States 110.18Department of Housing and Urban Development for the standard metropolitan statistical 110.19area or the nonmetropolitan county in which the project is located. The project must be 110.20owned for the term of the bonds either by the authority or by a limited partnership or other 110.21entity in which the authority or another entity under the sole control of the authority is 110.22the sole general partner and the partnership or other entity must receive (1) an allocation 110.23from the Department of Management and Budget or an entitlement issuer of tax-exempt 110.24bonding authority for the project and a preliminary determination by the Minnesota 110.25Housing Finance Agency or the applicable suballocator of tax credits that the project 110.26will qualify for four percent low-income housing tax credits or (2) a reservation of nine 110.27percent low-income housing tax credits from the Minnesota Housing Finance Agency or a 110.28suballocator of tax credits for the project. A qualified housing development project may 110.29admit nonelderly individuals and families with higher incomes if: 110.30(1) three years have passed since initial occupancy; 110.31(2) the authority finds the project is experiencing unanticipated vacancies resulting in 110.32insufficient revenues, because of changes in population or other unforeseen circumstances 110.33that occurred after the initial finding of adequate revenues; and 110.34(3) the authority finds a tax levy or payment from general assets of the general 110.35jurisdiction governmental unit will be necessary to pay debt service on the bonds if higher 110.36income individuals or families are not admitted. 111.1(f) The authority may issue bonds to refund bonds issued under this subdivision in 111.2accordance with section 475.67. The finding of the adequacy of pledged revenues required 111.3by paragraph (a) and the public hearing required by paragraph (b) shall not apply to the 111.4issuance of refunding bonds. This paragraph applies to refunding bonds issued on and 111.5after July 1, 1992. 111.6    Sec. 74. Minnesota Statutes 2010, section 469.053, subdivision 4, is amended to read: 111.7    Subd. 4. Mandatory city levy. A city shall, at the request of the port authority, levy 111.8a tax in any year for the benefit of the port authority. The tax must not exceed 0.01813 111.9percent of taxable new text begin estimated new text end market value. The amount levied must be paid by the city 111.10treasurer to the treasurer of the port authority, to be spent by the authority. 111.11    Sec. 75. Minnesota Statutes 2010, section 469.053, subdivision 4a, is amended to read: 111.12    Subd. 4a. Seaway port authority levy. A levy made under this subdivision shall 111.13replace the mandatory city levy under subdivision 4. A seaway port authority is a special 111.14taxing district under section 275.066 and may levy a tax in any year for the benefit of the 111.15seaway port authority. The tax must not exceed 0.01813 percent of taxable new text begin estimated new text end 111.16market value. The county auditor shall distribute the proceeds of the property tax levy to 111.17the seaway port authority. 111.18    Sec. 76. Minnesota Statutes 2010, section 469.053, subdivision 6, is amended to read: 111.19    Subd. 6. Discretionary city levy. Upon request of a port authority, the port 111.20authority's city may levy a tax to be spent by and for its port authority. The tax must 111.21enable the port authority to carry out efficiently and in the public interest sections 469.048 111.22to 469.068 to create and develop industrial development districts. The levy must not be 111.23more than 0.00282 percent of taxable new text begin estimated new text end market value. The county treasurer shall 111.24pay the proceeds of the tax to the port authority treasurer. The money may be spent by 111.25the authority in performance of its duties to create and develop industrial development 111.26districts. In spending the money the authority must judge what best serves the public 111.27interest. The levy in this subdivision is in addition to the levy in subdivision 4. 111.28    Sec. 77. Minnesota Statutes 2010, section 469.107, subdivision 1, is amended to read: 111.29    Subdivision 1. City tax levy. A city may, at the request of the authority, levy a tax in 111.30any year for the benefit of the authority. The tax must be not more than 0.01813 percent of 111.31taxable new text begin estimated new text end market value. The amount levied must be paid by the city treasurer to 111.32the treasurer of the authority, to be spent by the authority. 112.1    Sec. 78. Minnesota Statutes 2010, section 469.177, subdivision 1, is amended to read: 112.2    Subdivision 1. Original net tax capacity. (a) Upon or after adoption of a tax 112.3increment financing plan, the auditor of any county in which the district is situated shall, 112.4upon request of the authority, certify the original net tax capacity of the tax increment 112.5financing district and that portion of the district overlying any subdistrict as described in 112.6the tax increment financing plan and shall certify in each year thereafter the amount by 112.7which the original net tax capacity has increased or decreased as a result of a change in tax 112.8exempt status of property within the district and any subdistrict, reduction or enlargement 112.9of the district or changes pursuant to subdivision 4. The auditor shall certify the amount 112.10within 30 days after receipt of the request and sufficient information to identify the parcels 112.11included in the district. The certification relates to the taxes payable year as provided in 112.12subdivision 6. 112.13    (b) If the classification under section 273.13 of property located in a district changes 112.14to a classification that has a different assessment ratio, the original net tax capacity of that 112.15property must be redetermined at the time when its use is changed as if the property had 112.16originally been classified in the same class in which it is classified after its use is changed. 112.17    (c) The amount to be added to the original net tax capacity of the district as a result 112.18of previously tax exempt real property within the district becoming taxable equals the net 112.19tax capacity of the real property as most recently assessed pursuant to section 273.18 or, if 112.20that assessment was made more than one year prior to the date of title transfer rendering 112.21the property taxable, the net tax capacity assessed by the assessor at the time of the 112.22transfer. If improvements are made to tax exempt property after the municipality approves 112.23the district and before the parcel becomes taxable, the assessor shall, at the request of 112.24the authority, separately assess the estimated market value of the improvements. If the 112.25property becomes taxable, the county auditor shall add to original net tax capacity, the net 112.26tax capacity of the parcel, excluding the separately assessed improvements. If substantial 112.27taxable improvements were made to a parcel after certification of the district and if the 112.28property later becomes tax exempt, in whole or part, as a result of the authority acquiring 112.29the property through foreclosure or exercise of remedies under a lease or other revenue 112.30agreement or as a result of tax forfeiture, the amount to be added to the original net tax 112.31capacity of the district as a result of the property again becoming taxable is the amount 112.32of the parcel's value that was included in original net tax capacity when the parcel was 112.33first certified. The amount to be added to the original net tax capacity of the district as a 112.34result of enlargements equals the net tax capacity of the added real property as most 112.35recently certified by the commissioner of revenue as of the date of modification of the tax 112.36increment financing plan pursuant to section 469.175, subdivision 4. 113.1    (d) If the net tax capacity of a property increases because the property no longer 113.2qualifies under the Minnesota Agricultural Property Tax Law, section 273.111; the 113.3Minnesota Open Space Property Tax Law, section 273.112; or the Metropolitan 113.4Agricultural Preserves Act, chapter 473H, or because platted, unimproved property is 113.5improved or market value is increased after approval of the plat under section 273.11, 113.6subdivision 14 , 14a, or 14b, the increase in net tax capacity must be added to the original 113.7net tax capacity. new text begin If the net tax capacity of a property increases because the property new text end 113.8 new text begin no longer qualifies for the homestead market value exclusion under section 273.13, new text end 113.9 new text begin subdivision 35, the increase in net tax capacity must be added to the original net tax new text end 113.10 new text begin capacity if the original construction of the affected home was completed before the date new text end 113.11 new text begin the assessor certified the original net tax capacity of the district. new text end 113.12    (e) The amount to be subtracted from the original net tax capacity of the district as a 113.13result of previously taxable real property within the district becoming tax exempt new text begin or new text end 113.14 new text begin qualifying in whole or part for an exclusion from taxable market value new text end , or a reduction in 113.15the geographic area of the district, shall be the amount of original net tax capacity initially 113.16attributed to the property becoming tax exempt new text begin , being excluded from taxable market new text end 113.17 new text begin value, new text end or being removed from the district. If the net tax capacity of property located within 113.18the tax increment financing district is reduced by reason of a court-ordered abatement, 113.19stipulation agreement, voluntary abatement made by the assessor or auditor or by order 113.20of the commissioner of revenue, the reduction shall be applied to the original net tax 113.21capacity of the district when the property upon which the abatement is made has not been 113.22improved since the date of certification of the district and to the captured net tax capacity 113.23of the district in each year thereafter when the abatement relates to improvements made 113.24after the date of certification. The county auditor may specify reasonable form and content 113.25of the request for certification of the authority and any modification thereof pursuant to 113.26section 469.175, subdivision 4. 113.27    (f) If a parcel of property contained a substandard building or improvements 113.28described in section 469.174, subdivision 10, paragraph (e), that were demolished or 113.29removed and if the authority elects to treat the parcel as occupied by a substandard 113.30building under section 469.174, subdivision 10, paragraph (b), or by improvements under 113.31section 469.174, subdivision 10, paragraph (e), the auditor shall certify the original net tax 113.32capacity of the parcel using the greater of (1) the current net tax capacity of the parcel, or 113.33(2) the estimated market value of the parcel for the year in which the building or other 113.34improvements were demolished or removed, but applying the class rates for the current 113.35year. 114.1    (g) For a redevelopment district qualifying under section 469.174, subdivision 10, 114.2paragraph (a), clause (4), as a qualified disaster area, the auditor shall certify the value of 114.3the land as the original tax capacity for any parcel in the district that contains a building 114.4that suffered substantial damage as a result of the disaster or emergency. 114.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment new text end 114.6 new text begin and applies to all districts, regardless of when the request for certification was made, and new text end 114.7 new text begin to computation of increment beginning with taxes payable in 2013, provided that the new text end 114.8 new text begin adjustments to original tax capacity required by this section apply only to exclusions new text end 114.9 new text begin that reduced taxable market value beginning with taxes payable in 2012 or thereafter, new text end 114.10 new text begin regardless of when the law authorizing the exclusions became effective. new text end 114.11    Sec. 79. Minnesota Statutes 2010, section 469.180, subdivision 2, is amended to read: 114.12    Subd. 2. Tax levies. Notwithstanding any law, the county board of any county may 114.13appropriate from the general revenue fund a sum not to exceed a county levy of 0.00080 114.14percent of taxable new text begin estimated new text end market value to carry out the purposes of this section. 114.15    Sec. 80. Minnesota Statutes 2010, section 469.187, is amended to read: 114.16469.187 FIRST CLASS CITY SPENDING FOR PUBLICITY; PUBLICITY 114.17BOARD. 114.18Any city of the first class may expend money for city publicity purposes. The city 114.19may levy a tax, not exceeding 0.00080 percent of taxable new text begin estimated new text end market value. The 114.20proceeds of the levy shall be expended in the manner and for the city publicity purposes 114.21the council directs. The council may establish and provide for a publicity board or bureau 114.22to administer the fund, subject to the conditions and limitations the council prescribes 114.23by ordinance. 114.24    Sec. 81. Minnesota Statutes 2010, section 469.206, is amended to read: 114.25469.206 HAZARDOUS PROPERTY PENALTY. 114.26A city may assess a penalty up to one percent of the new text begin estimated new text end market value of 114.27real property, including any building located within the city that the city determines to 114.28be hazardous as defined in section 463.15, subdivision 3. The city shall send a written 114.29notice to the address to which the property tax statement is sent at least 90 days before it 114.30may assess the penalty. If the owner of the property has not paid the penalty or fixed the 114.31property within 90 days after receiving notice of the penalty, the penalty is considered 114.32delinquent and is increased by 25 percent each 60 days the penalty is not paid and the 115.1property remains hazardous. For the purposes of this section, a penalty that is delinquent 115.2is considered a delinquent property tax and subject to chapters 279, 280, and 281, in the 115.3same manner as delinquent property taxes. 115.4    Sec. 82. Minnesota Statutes 2010, section 471.24, is amended to read: 115.5471.24 TOWNS, STATUTORY CITIES; JOINT MAINTENANCE OF 115.6CEMETERY. 115.7Where a statutory city or town owns and maintains an established cemetery or burial 115.8ground, either within or without the municipal limits, the statutory city or town may, by 115.9mutual agreement with contiguous statutory cities and towns, each having a new text begin an estimated new text end 115.10market value of not less than $2,000,000, join together in the maintenance of such public 115.11cemetery or burial ground for the use of the inhabitants of each of such municipalities; and 115.12each such municipality is hereby authorized, by action of its council or governing body, 115.13to levy a tax or make an appropriation for the annual support and maintenance of such 115.14cemetery or burial ground; provided, the amount thus appropriated by each municipality 115.15shall not exceed a total of $10,000 in any one year. 115.16    Sec. 83. Minnesota Statutes 2010, section 471.571, subdivision 1, is amended to read: 115.17    Subdivision 1. Application. This section applies to each city in which the net tax 115.18capacity of real and personal property consists in part of iron ore or lands containing 115.19taconite or semitaconite and in which the total taxable new text begin estimated new text end market value of real 115.20and personal property exceeds $2,500,000. 115.21    Sec. 84. Minnesota Statutes 2010, section 471.571, subdivision 2, is amended to read: 115.22    Subd. 2. Creation of fund, tax levy. The governing body of the city may create a 115.23permanent improvement and replacement fund to be maintained by an annual tax levy. 115.24The governing body may levy a tax in excess of any charter limitation for the support of 115.25the permanent improvement and replacement fund, but not exceeding the following: 115.26(a) in cities having a population of not more than 500 inhabitants, the lesser of $20 115.27per capita or 0.08059 percent of taxable new text begin estimated new text end market value; 115.28(b) in cities having a population of more than 500 and less than 2500 new text begin 2,500 new text end , the 115.29greater of $12.50 per capita or $10,000 but not exceeding 0.08059 percent of taxable new text begin new text end 115.30 new text begin estimated new text end market value; 115.31(c) in cities having a population of more than 2500 new text begin 2,500 or more new text end inhabitants, 115.32the greater of $10 per capita or $31,500 but not exceeding 0.08059 percent of taxable new text begin new text end 115.33 new text begin estimated new text end market value. 116.1    Sec. 85. Minnesota Statutes 2010, section 471.73, is amended to read: 116.2471.73 ACCEPTANCE OF PROVISIONS. 116.3In the case of any city within the class specified in new text begin section new text end 471.72 having a new text begin an new text end 116.4 new text begin estimated new text end market value, as defined in section , in excess of $37,000,000; and in the 116.5case of any statutory city within such class having a new text begin an estimated new text end market value, as defined 116.6in section , of less than $5,000,000; and in the case of any statutory city within such 116.7class which is governed by Laws 1933, chapter 211, or Laws 1937, chapter 356; and in 116.8the case of any statutory city within such class which is governed by Laws 1929, chapter 116.9208, and has a new text begin an estimated new text end market value of less than $83,000,000; and in the case of 116.10any school district within such class having a new text begin an estimated new text end market value, as defined in 116.11section , of more than $54,000,000; and in the case of all towns within said class; 116.12sections 471.71 to 471.83 apply only if the governing body of the city or statutory city, the 116.13board of the school district, or the town board of the town shall have adopted a resolution 116.14determining to issue bonds under the provisions of sections 471.71 to 471.83 or to go 116.15upon a cash basis in accordance with the provisions thereof. 116.16    Sec. 86. Minnesota Statutes 2010, section 473.325, subdivision 2, is amended to read: 116.17    Subd. 2. Chapter 475 applies; exceptions. The Metropolitan Council shall sell and 116.18issue the bonds in the manner provided in chapter 475, and shall have the same powers 116.19and duties as a municipality issuing bonds under that law, except that the approval of a 116.20majority of the electors shall not be required and the net debt limitations shall not apply. 116.21The terms of each series of bonds shall be fixed so that the amount of principal and interest 116.22on all outstanding and undischarged bonds, together with the bonds proposed to be issued, 116.23due in any year shall not exceed 0.01209 percent of new text begin estimated new text end market value of all taxable 116.24property in the metropolitan area as last finally equalized prior to a proposed issue. The 116.25bonds shall be secured in accordance with section 475.61, subdivision 1, and any taxes 116.26required for their payment shall be levied by the council, shall not affect the amount or rate 116.27of taxes which may be levied by the council for other purposes, shall be spread against all 116.28taxable property in the metropolitan area and shall not be subject to limitation as to rate or 116.29amount. Any taxes certified by the council to the county auditors for collection shall be 116.30reduced by the amount received by the council from the commissioner of management and 116.31budget or the federal government for the purpose of paying the principal and interest on 116.32bonds to which the levy relates. The council shall certify the fact and amount of all money 116.33so received to the county auditors, and the auditors shall reduce the levies previously made 116.34for the bonds in the manner and to the extent provided in section 475.61, subdivision 3. 117.1    Sec. 87. Minnesota Statutes 2010, section 473.629, is amended to read: 117.2473.629 VALUE OF PROPERTY FOR BOND ISSUES BY SCHOOL 117.3DISTRICTS. 117.4As to any lands to be detached from any school district under the provisions hereof new text begin new text end 117.5 new text begin section 473.625 new text end , notwithstanding such prospective new text begin the new text end detachment, the new text begin estimated market new text end 117.6value of such new text begin the detached new text end lands and the net tax capacity of taxable properties now located 117.7therein or thereon shall be and new text begin on the lands on the date of the detachment new text end constitute 117.8from and after the date of the enactment hereof a part of the new text begin estimated market new text end value of 117.9properties upon the basis of which such new text begin used to calculate the net debt limit of the new text end school 117.10district may issue its bonds, new text begin . new text end The value of such new text begin the new text end lands for such purpose to be new text begin and other new text end 117.11 new text begin taxable properties for purposes of the school district's net debt limit are new text end 33-1/3 percent of 117.12the new text begin estimated new text end market value thereof as determined and certified by said new text begin the new text end assessor to said new text begin new text end 117.13 new text begin the new text end school district, and it shall be the duty of such new text begin the new text end assessor annually on or before the 117.14tenth day of October from and after the passage hereof, to so new text begin of each year, shall new text end determine 117.15and certify new text begin that value new text end ; provided, however, that the value of such new text begin the new text end detached lands and 117.16such taxable properties shall never exceed 20 percent of the new text begin estimated market new text end value of 117.17all properties constituting and making up the basis aforesaid new text begin used to calculate the net new text end 117.18 new text begin debt limit of the school district new text end . 117.19    Sec. 88. Minnesota Statutes 2010, section 473.661, subdivision 3, is amended to read: 117.20    Subd. 3. Levy limit. In any budget certified by the commissioners under this 117.21section, the amount included for operation and maintenance shall not exceed an amount 117.22which, when extended against the property taxable therefor under section 473.621, 117.23subdivision 5 , will require a levy at a rate of 0.00806 percent of new text begin estimated new text end market value. 117.24Taxes levied by the corporation shall not affect the amount or rate of taxes which may 117.25be levied by any other local government unit within the metropolitan area under the 117.26provisions of any charter. 117.27    Sec. 89. Minnesota Statutes 2010, section 473.667, subdivision 9, is amended to read: 117.28    Subd. 9. Additional taxes. Nothing herein shall prevent the commission from 117.29levying a tax not to exceed 0.00121 percent of new text begin estimated new text end market value on taxable property 117.30within its taxing jurisdiction, in addition to any levies found necessary for the debt 117.31service fund authorized by section 473.671. Nothing herein shall prevent the levy and 117.32appropriation for purposes of the commission of any other tax on property or on any 117.33income, transaction, or privilege, when and if authorized by law. All collections of any 117.34taxes so levied shall be included in the revenues appropriated for the purposes referred 118.1to in this section, unless otherwise provided in the law authorizing the levies; but no 118.2covenant as to the continuance or as to the rate and amount of any such levy shall be made 118.3with the holders of the commission's bonds unless specifically authorized by law. 118.4    Sec. 90. Minnesota Statutes 2010, section 473.671, is amended to read: 118.5473.671 LIMIT OF TAX LEVY. 118.6The taxes levied against the property of the metropolitan area in any one year shall 118.7not exceed 0.00806 percent of taxable new text begin estimated new text end market value, exclusive of taxes levied 118.8to pay the principal or interest on any bonds or indebtedness of the city issued under 118.9Laws 1943, chapter 500, and exclusive of any taxes levied to pay the share of the city for 118.10payments on bonded indebtedness of the corporation provided for in Laws 1943, chapter 118.11500. The levy of taxes authorized in Laws 1943, chapter 500, shall be in addition to the 118.12maximum rate allowed to be levied to defray the cost of government under the provisions 118.13of the charter of any city affected by Laws 1943, chapter 500. 118.14    Sec. 91. Minnesota Statutes 2010, section 473.711, subdivision 2a, is amended to read: 118.15    Subd. 2a. Tax levy. (a) The commission may levy a tax on all taxable property in 118.16the district as defined in section 473.702 to provide funds for the purposes of sections 118.17473.701 to 473.716. The tax shall not exceed the property tax levy limitation determined 118.18in this subdivision. A participating county may agree to levy an additional tax to be used 118.19by the commission for the purposes of sections 473.701 to 473.716 but the sum of the 118.20county's and commission's taxes may not exceed the county's proportionate share of 118.21the property tax levy limitation determined under this subdivision based on the ratio of 118.22its total net tax capacity to the total net tax capacity of the entire district as adjusted by 118.23section 270.12, subdivision 3. The auditor of each county in the district shall add the 118.24amount of the levy made by the district to other taxes of the county for collection by 118.25the county treasurer with other taxes. When collected, the county treasurer shall make 118.26settlement of the tax with the district in the same manner as other taxes are distributed 118.27to political subdivisions. No county shall levy any tax for mosquito, disease vectoring 118.28tick, and black gnat (Simuliidae) control except under this section. The levy shall be in 118.29addition to other taxes authorized by law. 118.30(b) The property tax levied by the Metropolitan Mosquito Control Commission shall 118.31not exceed the product of (i) the commission's property tax levy limitation for the previous 118.32year determined under this subdivision multiplied by (ii) an index for market valuation 118.33changes equal to the total new text begin estimated new text end market valuation new text begin value new text end of all taxable property for the 118.34current tax payable year located within the district plus any area that has been added to the 119.1district since the previous year, divided by the total new text begin estimated new text end market valuation new text begin value new text end of all 119.2taxable property located within the district for the previous taxes payable year. 119.3(c) For the purpose of determining the commission's property tax levy limitation 119.4under this subdivision, "total market valuation" means the total market valuation of all 119.5taxable property within the district without valuation adjustments for fiscal disparities 119.6(chapter 473F), tax increment financing (sections to 469.179), and high voltage 119.7transmission lines (section 273.425). 119.8    Sec. 92. Minnesota Statutes 2010, section 473F.02, subdivision 12, is amended to read: 119.9    Subd. 12. new text begin Adjusted new text end market value. " new text begin Adjusted new text end market value" of real and personal 119.10property within a municipality means the assessor's estimated new text begin taxable new text end market value new text begin , new text end 119.11 new text begin as defined in section 272.03, new text end of all real and personal property, including the value of 119.12manufactured housing, within the municipality new text begin , adjusted for sales ratios in a manner new text end 119.13 new text begin similar to the adjustments made to city and town net tax capacities new text end . For purposes 119.14of sections to , the commissioner of revenue shall annually make 119.15determinations and reports with respect to each municipality which are comparable to 119.16those it makes for school districts under section 127A.48, subdivisions 1 to 6, in the same 119.17manner and at the same times as are prescribed by the subdivisions. The commissioner 119.18of revenue shall annually determine, for each municipality, information comparable to 119.19that required by section 475.53, subdivision 4, for school districts, as soon as practicable 119.20after it becomes available. The commissioner of revenue shall then compute the equalized 119.21market value of property within each municipality using the aggregate sales ratios from 119.22the Department of Revenue's sales ratio study. 119.23    Sec. 93. Minnesota Statutes 2010, section 473F.02, subdivision 14, is amended to read: 119.24    Subd. 14. Fiscal capacity. "Fiscal capacity" of a municipality means its valuation new text begin new text end 119.25 new text begin adjusted market value new text end , determined as of January 2 of any year, divided by its population, 119.26determined as of a date in the same year. 119.27    Sec. 94. Minnesota Statutes 2010, section 473F.02, subdivision 15, is amended to read: 119.28    Subd. 15. Average fiscal capacity. "Average fiscal capacity" of municipalities 119.29means the sum of the valuations new text begin adjusted market values new text end of all municipalities, determined 119.30as of January 2 of any year, divided by the sum of their populations, determined as of 119.31a date in the same year. 119.32    Sec. 95. Minnesota Statutes 2010, section 473F.02, subdivision 23, is amended to read: 120.1    Subd. 23. Net tax capacity. "Net tax capacity" means the new text begin taxable new text end market value of 120.2real and personal property multiplied by its net tax capacity rates in section 273.13. 120.3    Sec. 96. Minnesota Statutes 2010, section 475.521, subdivision 4, is amended to read: 120.4    Subd. 4. Limitations on amount. A municipality may not issue bonds under this 120.5section if the maximum amount of principal and interest to become due in any year on 120.6all the outstanding bonds issued under this section, including the bonds to be issued, 120.7will equal or exceed 0.16 percent of the taxable new text begin estimated new text end market value of property 120.8in the municipality. Calculation of the limit must be made using the taxable new text begin estimated new text end 120.9market value for the taxes payable year in which the obligations are issued and sold. In 120.10the case of a municipality with a population of 2,500 or more, the bonds are subject to 120.11the net debt limits under section 475.53. In the case of a shared facility in which more 120.12than one municipality participates, upon compliance by each participating municipality 120.13with the requirements of subdivision 2, the limitations in this subdivision and the net debt 120.14represented by the bonds shall be allocated to each participating municipality in proportion 120.15to its required financial contribution to the financing of the shared facility, as set forth in 120.16the joint powers agreement relating to the shared facility. This section does not limit the 120.17authority to issue bonds under any other special or general law. 120.18    Sec. 97. Minnesota Statutes 2010, section 475.53, subdivision 1, is amended to read: 120.19    Subdivision 1. Generally. Except as otherwise provided in sections 475.51 to 120.20475.74 , no municipality, except a school district or a city of the first class, shall incur or be 120.21subject to a net debt in excess of three percent of the new text begin estimated new text end market value of taxable 120.22property in the municipality. 120.23    Sec. 98. Minnesota Statutes 2010, section 475.53, subdivision 3, is amended to read: 120.24    Subd. 3. Cities first class. Unless its charter permits a greater net debt a city of 120.25the first class may not incur a net debt in excess of two percent of the new text begin estimated new text end market 120.26value of all taxable property therein. If the charter of the city permits a net debt of the city 120.27in excess of two percent of its valuation, it may not incur a net debt in excess of 3-2/3 120.28percent of the new text begin estimated new text end market value of the taxable property therein. 120.29The county auditor, at the time of preparing the tax list of the city, shall compile a 120.30statement setting forth the total net tax capacity and the total new text begin estimated new text end market value of 120.31each class of taxable property in such city for such year. 120.32    Sec. 99. Minnesota Statutes 2010, section 475.53, subdivision 4, is amended to read: 121.1    Subd. 4. School districts. Except as otherwise provided by law, no school district 121.2shall be subject to a net debt in excess of 15 percent of the actual new text begin estimated new text end market value 121.3of all taxable property situated within its corporate limits, as computed in accordance with 121.4this subdivision. The county auditor of each county containing taxable real or personal 121.5property situated within any school district shall certify to the district upon request the 121.6 new text begin estimated new text end market value of all such property. Whenever the commissioner of revenue, in 121.7accordance with section 127A.48, subdivisions 1 to 6, has determined that the net tax 121.8capacity of any district furnished by county auditors is not based upon the new text begin adjusted new text end market 121.9value of taxable property in the district new text begin exceeds the estimated market value of property new text end 121.10 new text begin within the district new text end , the commissioner of revenue shall certify to the district upon request 121.11the ratio most recently ascertained to exist between such new text begin the estimated market new text end value and 121.12the actual new text begin adjusted new text end market value of property within the district. new text begin , and new text end the actual market 121.13value of property within a district, on which its debt limit under this subdivision is new text begin will new text end 121.14 new text begin be new text end based, is (a) the value certified by the county auditors, or (b) this new text begin on the estimated new text end 121.15 new text begin market new text end value divided by the ratio certified by the commissioner of revenue, whichever 121.16results in a higher value. 121.17    Sec. 100. Minnesota Statutes 2010, section 475.53, subdivision 5, is amended to read: 121.18    Subd. 5. Certain independent school districts. No independent school district 121.19located wholly or partly within a city of the first class shall issue obligations with a term 121.20of more than two years, whenever the aggregate of the outstanding obligations of the 121.21district equals or exceeds 0.7 percent of the new text begin estimated new text end market value of the taxable property 121.22within the school district. 121.23    Sec. 101. Minnesota Statutes 2010, section 475.58, subdivision 2, is amended to read: 121.24    Subd. 2. Funding, refunding. Any county, city, town, or school district whose 121.25outstanding gross debt, including all items referred to in section 475.51, subdivision 121.264 , exceed in amount 1.62 percent of its new text begin estimated new text end market value may issue bonds under 121.27this subdivision for the purpose of funding or refunding such indebtedness or any part 121.28thereof. A list of the items of indebtedness to be funded or refunded shall be made by the 121.29recording officer and treasurer and filed in the office of the recording officer. The initial 121.30resolution of the governing body shall refer to this subdivision as authority for the issue, 121.31state the amount of bonds to be issued and refer to the list of indebtedness to be funded or 121.32refunded. This resolution shall be published once each week for two successive weeks 121.33in a legal newspaper published in the municipality or if there be no such newspaper, in 121.34a legal newspaper published in the county seat. Such bonds may be issued without the 122.1submission of the question of their issue to the electors unless within ten days after the 122.2second publication of the resolution a petition requesting such election signed by ten or 122.3more voters who are taxpayers of the municipality, shall be filed with the recording officer. 122.4In event such petition is filed, no bonds shall be issued hereunder unless authorized by a 122.5majority of the electors voting on the question. 122.6    Sec. 102. Minnesota Statutes 2010, section 475.73, subdivision 1, is amended to read: 122.7    Subdivision 1. May purchase these bonds; conditions. Obligations sold under the 122.8provisions of section 475.60 may be purchased by the State Board of Investment if the 122.9obligations meet the requirements of section 11A.24, subdivision 2, upon the approval of 122.10the attorney general as to form and execution of the application therefor, and under rules 122.11as the board may specify, and the state board shall have authority to purchase the same 122.12to an amount not exceeding 3.63 percent of the new text begin estimated new text end market value of the taxable 122.13property of the municipality, according to the last preceding assessment. The obligations 122.14shall not run for a shorter period than one year, nor for a longer period than 30 years and 122.15shall bear interest at a rate to be fixed by the state board but not less than two percent per 122.16annum. Forthwith upon the delivery to the state of Minnesota of any obligations issued by 122.17virtue thereof, the commissioner of management and budget shall certify to the respective 122.18auditors of the various counties wherein are situated the municipalities issuing the same, 122.19the number, denomination, amount, rate of interest and date of maturity of each obligation. 122.20    Sec. 103. Minnesota Statutes 2011 Supplement, section 477A.011, subdivision 20, 122.21is amended to read: 122.22    Subd. 20. City net tax capacity. "City net tax capacity" means (1) the net tax 122.23capacity computed using the net tax capacity rates in section for taxes payable 122.24in the year of the aid distribution, and the market values, after the exclusion in section 122.25273.13, subdivision 35, for taxes payable in the year prior to the aid distribution plus (2) 122.26a city's fiscal disparities distribution tax capacity under section 276A.06, subdivision 2, 122.27paragraph (b), or 473F.08, subdivision 2, paragraph (b), for taxes payable in the year prior 122.28to that for which aids are being calculated. The market value utilized in computing city 122.29net tax capacity shall be reduced by the sum of (1) a city's market value of commercial 122.30industrial property as defined in section 276A.01, subdivision 3, or 473F.02, subdivision 3, 122.31multiplied by the ratio determined pursuant to section 276A.06, subdivision 2, paragraph 122.32(a), or 473F.08, subdivision 2, paragraph (a), (2) the market value of the captured value 122.33of tax increment financing districts as defined in section 469.177, subdivision 2, and (3) 122.34the market value of transmission lines deducted from a city's total net tax capacity under 123.1section . The city net tax capacity will be computed using equalized market values new text begin new text end 123.2 new text begin the city's adjusted net tax capacity under section 273.1325 new text end . 123.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 123.4    Sec. 104. Minnesota Statutes 2010, section 477A.0124, subdivision 2, is amended to 123.5read: 123.6    Subd. 2. Definitions. (a) For the purposes of this section, the following terms 123.7have the meanings given them. 123.8(b) "County program aid" means the sum of "county need aid," "county tax base 123.9equalization aid," and "county transition aid." 123.10(c) "Age-adjusted population" means a county's population multiplied by the county 123.11age index. 123.12(d) "County age index" means the percentage of the population over age 65 within 123.13the county divided by the percentage of the population over age 65 within the state, except 123.14that the age index for any county may not be greater than 1.8 nor less than 0.8. 123.15(e) "Population over age 65" means the population over age 65 established as of 123.16July 15 in an aid calculation year by the most recent federal census, by a special census 123.17conducted under contract with the United States Bureau of the Census, by a population 123.18estimate made by the Metropolitan Council, or by a population estimate of the state 123.19demographer made pursuant to section 4A.02, whichever is the most recent as to the stated 123.20date of the count or estimate for the preceding calendar year and which has been certified 123.21to the commissioner of revenue on or before July 15 of the aid calculation year. A revision 123.22to an estimate or count is effective for these purposes only if certified to the commissioner 123.23on or before July 15 of the aid calculation year. Clerical errors in the certification or use of 123.24estimates and counts established as of July 15 in the aid calculation year are subject to 123.25correction within the time periods allowed under section 477A.014. 123.26(f) "Part I crimes" means the three-year average annual number of Part I crimes 123.27reported for each county by the Department of Public Safety for the most recent years 123.28available. By July 1 of each year, the commissioner of public safety shall certify to the 123.29commissioner of revenue the number of Part I crimes reported for each county for the 123.30three most recent calendar years available. 123.31(g) "Households receiving food stamps" means the average monthly number of 123.32households receiving food stamps for the three most recent years for which data is 123.33available. By July 1 of each year, the commissioner of human services must certify to the 123.34commissioner of revenue the average monthly number of households in the state and in 123.35each county that receive food stamps, for the three most recent calendar years available. 124.1(h) "County net tax capacity" means the net tax capacity of the county, computed 124.2analogously to city net tax capacity under section 477A.011, subdivision 20 new text begin county's new text end 124.3 new text begin adjusted net tax capacity under section 273.1325 new text end . 124.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 124.5    Sec. 105. Minnesota Statutes 2010, section 641.23, is amended to read: 124.6641.23 FUNDS; HOW PROVIDED. 124.7Before any contract is made for the erection of a county jail, sheriff's residence, or 124.8both, the county board shall either levy a sufficient tax to provide the necessary funds, or 124.9issue county bonds therefor in accordance with the provisions of chapter 475, provided 124.10that no election is required if the amount of all bonds issued for this purpose and interest 124.11on them which are due and payable in any year does not exceed an amount equal to 124.120.09671 percent of new text begin estimated new text end market value of taxable property within the county, as last 124.13determined before the bonds are issued. 124.14    Sec. 106. Minnesota Statutes 2010, section 641.24, is amended to read: 124.15641.24 LEASING. 124.16The county may, by resolution of the county board, enter into a lease agreement with 124.17any statutory or home rule charter city situated within the county, or a county housing and 124.18redevelopment authority established pursuant to chapter 469 or any special law whereby 124.19the city or county housing and redevelopment authority will construct a jail or other law 124.20enforcement facilities for the county sheriff, deputy sheriffs, and other employees of the 124.21sheriff and other law enforcement agencies, in accordance with plans prepared by or at 124.22the request of the county board and, when required, approved by the commissioner of 124.23corrections and will finance it by the issuance of revenue bonds, and the county may lease 124.24the site and improvements for a term and upon rentals sufficient to produce revenue for the 124.25prompt payment of the bonds and all interest accruing thereon and, upon completion of 124.26payment, will acquire title thereto. The real and personal property acquired for the jail 124.27shall constitute a project and the lease agreement shall constitute a revenue agreement 124.28as contemplated in chapter 469, and all proceedings shall be taken by the city or county 124.29housing and redevelopment authority and the county in the manner and with the force and 124.30effect provided in chapter 469; provided that: 124.31(1) no tax shall be imposed upon or in lieu of a tax upon the property; 124.32(2) the approval of the project by the commissioner of commerce shall not be 124.33required; 125.1(3) the Department of Corrections shall be furnished and shall record such 125.2information concerning each project as it may prescribe; 125.3(4) the rentals required to be paid under the lease agreement shall not exceed in any 125.4year one-tenth of one percent of the new text begin estimated new text end market value of property within the county, 125.5as last finally equalized before the execution of the agreement; 125.6(5) the county board shall provide for the payment of all rentals due during the term 125.7of the lease, in the manner required in section 641.264, subdivision 2; 125.8(6) no mortgage on the property shall be granted for the security of the bonds, but 125.9compliance with clause (5) hereof may be enforced as a nondiscretionary duty of the 125.10county board; and 125.11(7) the county board may sublease any part of the jail property for purposes consistent 125.12with the maintenance and operation of a county jail or other law enforcement facility. 125.13    Sec. 107. Minnesota Statutes 2010, section 645.44, is amended by adding a subdivision 125.14to read: 125.15     new text begin Subd. 20. new text end new text begin Estimated market value. new text end new text begin When used in determining or calculating a new text end 125.16 new text begin limit on taxation, spending, state aid amounts, or debt, bond, certificate of indebtedness, or new text end 125.17 new text begin capital note issuance by or for a local government unit, "estimated market value" has the new text end 125.18 new text begin meaning given in section 273.032. new text end 125.19    Sec. 108. new text begin REVISOR'S INSTRUCTION. new text end 125.20 new text begin The revisor of statutes shall recodify Minnesota Statutes, section 127A.48, new text end 125.21 new text begin subdivisions 1 to 6, as section 273.1325, subdivisions 1 to 6, and change all new text end 125.22 new text begin cross-references to the affected subdivisions accordingly. new text end 125.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 125.24    Sec. 109. new text begin REPEALER. new text end 125.25 new text begin Minnesota Statutes 2010, sections 273.11, subdivision 1a; 276A.01, subdivision new text end 125.26 new text begin 11; 276A.06, subdivision 10; 473F.02, subdivision 13; 473F.08, subdivision 10; and new text end 125.27 new text begin 477A.011, subdivision 21, new text end new text begin are repealed. new text end 125.28    Sec. 110. new text begin EFFECTIVE DATE. new text end 125.29 new text begin Unless otherwise specifically provided, this act is effective the day following final new text end 125.30 new text begin enactment for purposes of limits on net debt, the issuance of bonds, certificates of new text end 125.31 new text begin indebtedness, and capital notes and is effective beginning for taxes payable in 2013 for new text end 125.32 new text begin all other purposes. new text end 126.1ARTICLE 6 126.2MISCELLANEOUS 126.3    Section 1. new text begin GENERAL FUND SAVINGS AND BUDGET RESERVE TRANSFER. new text end 126.4 new text begin (a) The commissioner of management and budget must reduce general fund new text end 126.5 new text begin appropriations to executive agencies, including constitutional offices, for agency new text end 126.6 new text begin operations for the biennium ending June 30, 2013, by an amount calculated in paragraph new text end 126.7 new text begin (b). new text end 126.8 new text begin (b) The reduction in appropriations under paragraph (a) must come from all new text end 126.9 new text begin funds savings provided by the reforms, efficiencies, and cost-saving measures through new text end 126.10 new text begin implementation of the data analytics master contract program administered by the new text end 126.11 new text begin Department of Administration entered into in fiscal year 2012 and fiscal year 2013. new text end 126.12 new text begin (c) On November 15, 2012, the commissioner of management and budget shall new text end 126.13 new text begin certify the amount of general fund savings resulting from state government appropriation new text end 126.14 new text begin reductions under paragraph (a), and, in the event that the savings amount does not generate new text end 126.15 new text begin $99,900,000, shall cancel the difference between the state government reduction general new text end 126.16 new text begin fund savings and $99,900,000 in the budget reserve account in Minnesota Statutes, section new text end 126.17 new text begin 16A.152, to the general fund. new text end 126.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 126.19    Sec. 2. new text begin SPECIAL RECOVERY FUND; CANCELLATION. new text end 126.20 new text begin $4,300,000 of the balance in the Revenue Department service and recovery special new text end 126.21 new text begin revenue fund under Minnesota Statutes, section 270C.15, is transferred in fiscal year new text end 126.22 new text begin 2012 to the general fund. new text end 126.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end