<a id="pl.1.3"></a><var>1.3</var>administrative, and clarifying changes to taxes on individual income, sales <br/>
<a id="pl.1.4"></a><var>1.4</var>and uses, property, aids to local governments; modifying property tax refund <br/>
<a id="pl.1.5"></a><var>1.5</var>payments; reducing and eliminating the state general levy; modifying various <br/>
<a id="pl.1.6"></a><var>1.6</var>taxes and tax-related provisions; providing income tax, sales tax, and property <br/>
<a id="pl.1.7"></a><var>1.7</var>tax exemptions; modifying tax increment financing authorities; setting the <br/>
<a id="pl.1.8"></a><var>1.8</var>levels of the cash flow account and the budget reserve account; appropriating <br/>
<a id="pl.1.9"></a><var>1.9</var>money;amending Minnesota Statutes 2010, sections 6.91, subdivision 2; 38.18; <br/>
<a id="pl.1.10"></a><var>1.10</var>40A.15, subdivision 2; 69.011, subdivision 1; 69.021, subdivisions 7, 8; 88.51, <br/>
<a id="pl.1.11"></a><var>1.11</var>subdivision 3; 103B.245, subdivision 3; 103B.251, subdivision 8; 103B.635, <br/>
<a id="pl.1.12"></a><var>1.12</var>subdivision 2; 103B.691, subdivision 2; 103D.905, subdivisions 2, 3, 8; <br/>
<a id="pl.1.13"></a><var>1.13</var>116J.8737, subdivisions 5, 7, 8, 9; 117.025, subdivision 7; 127A.48, subdivision <br/>
<a id="pl.1.14"></a><var>1.14</var>1; 138.053; 144F.01, subdivision 4; 162.07, subdivisions 3, 4; 163.04, <br/>
<a id="pl.1.15"></a><var>1.15</var>subdivision 3; 163.06, subdivision 6; 165.10, subdivision 1; 272.03, by adding <br/>
<a id="pl.1.16"></a><var>1.16</var>subdivisions; 273.032; 273.11, subdivision 1; 273.13, subdivision 21b; 273.1398, <br/>
<a id="pl.1.17"></a><var>1.17</var>subdivisions 3, 4; 275.011, subdivision 1; 275.025, subdivisions 1, 4; 275.065, <br/>
<a id="pl.1.18"></a><var>1.18</var>subdivisions 1, 3; 275.077, subdivision 2; 275.71, subdivision 4; 276A.01, <br/>
<a id="pl.1.19"></a><var>1.19</var>subdivisions 10, 12, 13, 15; 287.08; 287.23, subdivision 1; 289A.20, subdivision <br/>
<a id="pl.1.20"></a><var>1.20</var>4; 289A.31, subdivision 5; 290.0677, subdivisions 1, 2; 290.0681, subdivisions 1, <br/>
<a id="pl.1.21"></a><var>1.21</var>3, 5, 10; 290A.04, subdivision 2h; 297A.61, subdivision 4; 297A.67, subdivision <br/>
<a id="pl.1.22"></a><var>1.22</var>7, by adding a subdivision; 297A.68, subdivision 5; 297A.70, by adding <br/>
<a id="pl.1.23"></a><var>1.23</var>a subdivision; 297A.815, subdivision 3; 297G.04, subdivision 2; 353G.08, <br/>
<a id="pl.1.24"></a><var>1.24</var>subdivision 2; 365.025, subdivision 4; 366.095, subdivision 1; 366.27; 368.01, <br/>
<a id="pl.1.25"></a><var>1.25</var>subdivision 23; 368.47; 370.01; 373.40, subdivisions 1, 4; 375.167, subdivision <br/>
<a id="pl.1.26"></a><var>1.26</var>1; 375.18, subdivision 3; 375.555; 383B.152; 383B.245; 383B.73, subdivision <br/>
<a id="pl.1.27"></a><var>1.27</var>1; 383E.20; 383E.23; 385.31; 394.36, subdivision 1; 398A.04, subdivision <br/>
<a id="pl.1.28"></a><var>1.28</var>8; 401.05, subdivision 3; 410.32; 412.221, subdivision 2; 412.301; 428A.02, <br/>
<a id="pl.1.29"></a><var>1.29</var>subdivision 1; 430.102, subdivision 2; 447.10; 450.19; 450.25; 458A.10; <br/>
<a id="pl.1.30"></a><var>1.30</var>458A.31, subdivision 1; 465.04; 469.033, subdivision 6; 469.034, subdivision 2; <br/>
<a id="pl.1.31"></a><var>1.31</var>469.053, subdivisions 4, 4a, 6; 469.107, subdivision 1; 469.174, subdivisions <br/>
<a id="pl.1.32"></a><var>1.32</var>2, 8, 10, by adding subdivisions; 469.176, subdivision 1b; 469.177, subdivision <br/>
<a id="pl.1.33"></a><var>1.33</var>1; 469.180, subdivision 2; 469.187; 469.206; 471.24; 471.571, subdivisions 1, <br/>
<a id="pl.1.34"></a><var>1.34</var>2; 471.73; 473.325, subdivision 2; 473.629; 473.661, subdivision 3; 473.667, <br/>
<a id="pl.1.35"></a><var>1.35</var>subdivision 9; 473.671; 473.711, subdivision 2a; 473F.02, subdivisions 12, <br/>
<a id="pl.1.36"></a><var>1.36</var>14, 15, 23; 475.521, subdivision 4; 475.53, subdivisions 1, 3, 4, 5; 475.58, <br/>
<a id="pl.1.37"></a><var>1.37</var>subdivision 2; 475.73, subdivision 1; 477A.0124, subdivision 2; 641.23; 641.24; <br/>
<a id="pl.1.38"></a><var>1.38</var>645.44, by adding a subdivision; Minnesota Statutes 2011 Supplement, sections <br/>
<a id="pl.1.39"></a><var>1.39</var>116J.8737, subdivisions 1, 2; 124D.4531, subdivision 1; 126C.40, subdivision <br/>
<a id="pl.2.1"></a><var>2.1</var>1; 276.04, subdivision 2; 289A.02, subdivision 7; 290.01, subdivisions 19, 19a, <br/>
<a id="pl.2.2"></a><var>2.2</var>19b, 31; 290.091, subdivision 2; 290A.03, subdivision 15; 291.005, subdivision <br/>
<a id="pl.2.3"></a><var>2.3</var>1; 295.53, subdivision 1; 297A.68, subdivision 42; 297A.75, subdivisions 1, 2, <br/>
<a id="pl.2.4"></a><var>2.4</var>3; 297B.03; 469.1763, subdivision 2; 477A.011, subdivision 20; 477A.013, <br/>
<a id="pl.2.5"></a><var>2.5</var>subdivision 9; 477A.03, subdivision 2a; Laws 2008, chapter 366, article 5, <br/>
<a id="pl.2.6"></a><var>2.6</var>section 34, as amended; proposing coding for new law in Minnesota Statutes, <br/>
<a id="pl.2.7"></a><var>2.7</var>chapter 471; repealing Minnesota Statutes 2010, sections 273.11, subdivision 1a; <br/>
<a id="pl.2.8"></a><var>2.8</var>275.025, subdivisions 1, 2, 4; 276A.01, subdivision 11; 276A.06, subdivision <br/>
<a id="pl.2.9"></a><var>2.9</var>10; 290.0677, subdivision 1a; 290.92, subdivision 31; 473F.02, subdivision 13; <br/>
<a id="pl.2.10"></a><var>2.10</var>473F.08, subdivision 10; 477A.011, subdivision 21; Minnesota Statutes 2011 <br/>
<a id="pl.2.11"></a><var>2.11</var>Supplement, sections 275.025, subdivision 3; 289A.60, subdivision 31.<br/>
<a id="pl.2.12"></a><var>2.12</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.1.0.0"></a>

<a id="bill.1.1.0"></a><a id="pl.2.15"></a><var>2.15</var>    Section 1. Minnesota Statutes 2011 Supplement, section 116J.8737, subdivision 1, <br/>
<a id="pl.2.16"></a><var>2.16</var>is amended to read:<br/>
<a id="pl.2.17"></a><var>2.17</var>    Subdivision 1. <b>Definitions.</b> (a) For the purposes of this section, the following terms <br/>
<a id="pl.2.18"></a><var>2.18</var>have the meanings given.<br/>
<a id="pl.2.19"></a><var>2.19</var>(b) "Qualified small business" means a business that has been certified by the <br/>
<a id="pl.2.20"></a><var>2.20</var>commissioner under subdivision 2.<br/>
<a id="pl.2.21"></a><var>2.21</var>(c) "Qualified investor" means an investor who has been certified by the <br/>
<a id="pl.2.22"></a><var>2.22</var>commissioner under subdivision 3.<br/>
<a id="pl.2.23"></a><var>2.23</var>(d) "Qualified fund" means a pooled angel investment network fund that has been <br/>
<a id="pl.2.24"></a><var>2.24</var>certified by the commissioner under subdivision 4.<br/>
<a id="pl.2.25"></a><var>2.25</var>(e) "Qualified investment" means a cash investment in a qualified small business <br/>
<a id="pl.2.26"></a><var>2.26</var>of a minimum of:<br/>
<a id="pl.2.27"></a><var>2.27</var>(1) $10,000 in a calendar year by a qualified investor; or<br/>
<a id="pl.2.28"></a><var>2.28</var>(2) $30,000 in a calendar year by a qualified fund.<br/>
<a id="pl.2.29"></a><var>2.29</var>A qualified investment must be made in exchange for common stock, a partnership <br/>
<a id="pl.2.30"></a><var>2.30</var>or membership interest, preferred stock, debt with mandatory conversion to equity, or an <br/>
<a id="pl.2.31"></a><var>2.31</var>equivalent ownership interest as determined by the commissioner.<br/>
<a id="pl.2.32"></a><var>2.32</var>(f) "Family" means a family member within the meaning of the Internal Revenue <br/>
<a id="pl.2.33"></a><var>2.33</var>Code, section 267(c)(4).<br/>
<a id="pl.2.34"></a><var>2.34</var>(g) "Pass-through entity" means a corporation that for the applicable taxable year is <br/>
<a id="pl.2.35"></a><var>2.35</var>treated as an S corporation or a general partnership, limited partnership, limited liability <br/>
<a id="pl.2.36"></a><var>2.36</var>partnership, trust, or limited liability company and which for the applicable taxable year is <br/>
<a id="pl.2.37"></a><var>2.37</var>not taxed as a corporation under chapter 290.<br/>
<a id="pl.3.1"></a><var>3.1</var>(h) "Intern" means a student of an accredited institution of higher education, or a <br/>
<a id="pl.3.2"></a><var>3.2</var>former student who has graduated in the past six months from an accredited institution <br/>
<a id="pl.3.3"></a><var>3.3</var>of higher education, who is employed by a qualified small business in a nonpermanent <br/>
<a id="pl.3.4"></a><var>3.4</var>position for a duration of nine months or less that provides training and experience in the <br/>
<a id="pl.3.5"></a><var>3.5</var>primary business activity of the business.<br/>
<a id="pl.3.6"></a><var>3.6</var>(i) "Qualified greater Minnesota business" means a qualified small business that <br/>
<a id="pl.3.7"></a><var>3.7</var>is also certified by the commissioner as a qualified greater Minnesota business under <br/>
<a id="pl.3.8"></a><var>3.8</var>subdivision 2, paragraph (h).<br/>
<a id="pl.3.9"></a><var>3.9</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.2.0"></a><a id="pl.3.10"></a><var>3.10</var>    Sec. 2. Minnesota Statutes 2011 Supplement, section 116J.8737, subdivision 2, is <br/>
<a id="pl.3.11"></a><var>3.11</var>amended to read:<br/>
<a id="pl.3.12"></a><var>3.12</var>    Subd. 2. <b>Certification of qualified small businesses.</b> (a) Businesses may apply <br/>
<a id="pl.3.13"></a><var>3.13</var>to the commissioner for certification as a qualified small business for a calendar year. <br/>
<a id="pl.3.14"></a><var>3.14</var>In addition, the application may request certification as a qualified greater Minnesota <br/>
<a id="pl.3.15"></a><var>3.15</var>business under paragraph (h). The application must be in the form and be made under the <br/>
<a id="pl.3.16"></a><var>3.16</var>procedures specified by the commissioner, accompanied by an application fee of $150. <br/>
<a id="pl.3.17"></a><var>3.17</var>Application fees are deposited in the small business investment tax credit administration <br/>
<a id="pl.3.18"></a><var>3.18</var>account in the special revenue fund. The application for certification for 2010 must <br/>
<a id="pl.3.19"></a><var>3.19</var>be made available on the department's Web site by August 1, 2010. Applications for <br/>
<a id="pl.3.20"></a><var>3.20</var>subsequent years' certification must be made available on the department's Web site by <br/>
<a id="pl.3.21"></a><var>3.21</var>November 1 of the preceding year.<br/>
<a id="pl.3.22"></a><var>3.22</var>(b) Within 30 days of receiving an application for certification under this <br/>
<a id="pl.3.23"></a><var>3.23</var>subdivision, the commissioner must either certify the business as satisfying the conditions <br/>
<a id="pl.3.24"></a><var>3.24</var>required of a qualified small business or a qualified greater Minnesota business, request <br/>
<a id="pl.3.25"></a><var>3.25</var>additional information from the business, or reject the application for certification. If <br/>
<a id="pl.3.26"></a><var>3.26</var>the commissioner requests additional information from the business, the commissioner <br/>
<a id="pl.3.27"></a><var>3.27</var>must either certify the business or reject the application within 30 days of receiving the <br/>
<a id="pl.3.28"></a><var>3.28</var>additional information. If the commissioner neither certifies the business nor rejects <br/>
<a id="pl.3.29"></a><var>3.29</var>the application within 30 days of receiving the original application or within 30 days of <br/>
<a id="pl.3.30"></a><var>3.30</var>receiving the additional information requested, whichever is later, then the application is <br/>
<a id="pl.3.31"></a><var>3.31</var>deemed rejected, and the commissioner must refund the $150 application fee. A business <br/>
<a id="pl.3.32"></a><var>3.32</var>that applies for certification and is rejected may reapply.<br/>
<a id="pl.3.33"></a><var>3.33</var>(c) To receive certification as a qualified small business, a business must satisfy <br/>
<a id="pl.3.34"></a><var>3.34</var>all of the following conditions:<br/>
<a id="pl.3.35"></a><var>3.35</var>(1) the business has its headquarters in Minnesota;<br/>
<a id="pl.4.1"></a><var>4.1</var>(2) at least 51 percent of the business's employees are employed in Minnesota, and <br/>
<a id="pl.4.2"></a><var>4.2</var>51 percent of the business's total payroll is paid or incurred in the state;<br/>
<a id="pl.4.3"></a><var>4.3</var>(3) the business is engaged in, or is committed to engage in, innovation in Minnesota <br/>
<a id="pl.4.4"></a><var>4.4</var>in one of the following as its primary business activity:<br/>
<a id="pl.4.5"></a><var>4.5</var>(i) using proprietary technology to add value to a product, process, or service in a <br/>
<a id="pl.4.6"></a><var>4.6</var>qualified high-technology field;<br/>
<a id="pl.4.7"></a><var>4.7</var>(ii) researching or developing a proprietary product, process, or service in a qualified <br/>
<a id="pl.4.8"></a><var>4.8</var>high-technology field; or<br/>
<a id="pl.4.9"></a><var>4.9</var>(iii) researching, developing, or producing a new proprietary technology for use in <br/>
<a id="pl.4.10"></a><var>4.10</var>the fields of agriculture, tourism, forestry, mining, manufacturing, or transportation;<br/>
<a id="pl.4.11"></a><var>4.11</var>(4) other than the activities specifically listed in clause (3), the business is not <br/>
<a id="pl.4.12"></a><var>4.12</var>engaged in real estate development, insurance, banking, lending, lobbying, political <br/>
<a id="pl.4.13"></a><var>4.13</var>consulting, information technology consulting, wholesale or retail trade, leisure, <br/>
<a id="pl.4.14"></a><var>4.14</var>hospitality, transportation, construction, ethanol production from corn, or professional <br/>
<a id="pl.4.15"></a><var>4.15</var>services provided by attorneys, accountants, business consultants, physicians, or health <br/>
<a id="pl.4.16"></a><var>4.16</var>care consultants;<br/>
<a id="pl.4.17"></a><var>4.17</var>(5) the business has fewer than 25 employees;<br/>
<a id="pl.4.18"></a><var>4.18</var>(6) the business must pay its employees annual wages of at least 175 percent of the <br/>
<a id="pl.4.19"></a><var>4.19</var>federal poverty guideline for the year for a family of four and must pay its interns annual <br/>
<a id="pl.4.20"></a><var>4.20</var>wages of at least 175 percent of the federal minimum wage used for federally covered <br/>
<a id="pl.4.21"></a><var>4.21</var>employers, except that this requirement must be reduced proportionately for employees <br/>
<a id="pl.4.22"></a><var>4.22</var>and interns who work less than full-time, and does not apply to an executive, officer, or <br/>
<a id="pl.4.23"></a><var>4.23</var>member of the board of the business, or to any employee who owns, controls, or holds <br/>
<a id="pl.4.24"></a><var>4.24</var>power to vote more than 20 percent of the outstanding securities of the business;<br/>
<a id="pl.4.25"></a><var>4.25</var>(7) the business has not been in operation for more than ten years;<br/>
<a id="pl.4.26"></a><var>4.26</var>(8) the business has not previously received private equity investments of more <br/>
<a id="pl.4.27"></a><var>4.27</var>than $4,000,000; and<br/>
<a id="pl.4.28"></a><var>4.28</var>    (9) the business is not an entity disqualified under section 
         <statute_ref>80A.50</statute_ref>, paragraph (b), <br/>
<a id="pl.4.29"></a><var>4.29</var>clause (3).<br/>
<a id="pl.4.30"></a><var>4.30</var>(d) In applying the limit under paragraph (c), clause (5), the employees in all <br/>
<a id="pl.4.31"></a><var>4.31</var>members of the unitary business, as defined in section 
         <statute_ref>290.17, subdivision 4</statute_ref>, must be <br/>
<a id="pl.4.32"></a><var>4.32</var>included.<br/>
<a id="pl.4.33"></a><var>4.33</var>(e) In order for a qualified investment in a business to be eligible for tax credits, the <br/>
<a id="pl.4.34"></a><var>4.34</var>business must have applied for and received certification for the calendar year in which <br/>
<a id="pl.4.35"></a><var>4.35</var>the investment was made prior to the date on which the qualified investment was made.<br/>
<a id="pl.5.1"></a><var>5.1</var>(f) The commissioner must maintain a list of qualified small businesses and qualified <br/>
<a id="pl.5.2"></a><var>5.2</var>greater Minnesota businesses certified under this subdivision for the calendar year and <br/>
<a id="pl.5.3"></a><var>5.3</var>make the list accessible to the public on the department's Web site.<br/>
<a id="pl.5.4"></a><var>5.4</var>(g) For purposes of this subdivision, the following terms have the meanings given:<br/>
<a id="pl.5.5"></a><var>5.5</var>(1) "qualified high-technology field" includes aerospace, agricultural processing, <br/>
<a id="pl.5.6"></a><var>5.6</var>renewable energy, energy efficiency and conservation, environmental engineering, food <br/>
<a id="pl.5.7"></a><var>5.7</var>technology, cellulosic ethanol, information technology, materials science technology, <br/>
<a id="pl.5.8"></a><var>5.8</var>nanotechnology, telecommunications, biotechnology, medical device products, <br/>
<a id="pl.5.9"></a><var>5.9</var>pharmaceuticals, diagnostics, biologicals, chemistry, veterinary science, and similar <br/>
<a id="pl.5.10"></a><var>5.10</var>fields; and<br/>
<a id="pl.5.11"></a><var>5.11</var>(2) "proprietary technology" means the technical innovations that are unique and <br/>
<a id="pl.5.12"></a><var>5.12</var>legally owned or licensed by a business and includes, without limitation, those innovations <br/>
<a id="pl.5.13"></a><var>5.13</var>that are patented, patent pending, a subject of trade secrets, or copyrighted.; and<br/>
<a id="pl.5.14"></a><var>5.14</var>(3) "greater Minnesota" means the area of Minnesota located outside of the <br/>
<a id="pl.5.15"></a><var>5.15</var>metropolitan area as defined in section 473.121, subdivision 2.<br/>
<a id="pl.5.16"></a><var>5.16</var>(h) To receive certification as a qualified greater Minnesota business, a business must <br/>
<a id="pl.5.17"></a><var>5.17</var>satisfy all of the requirements of paragraph (c) and must satisfy the following conditions:<br/>
<a id="pl.5.18"></a><var>5.18</var>(1) the business has its headquarters in greater Minnesota; and<br/>
<a id="pl.5.19"></a><var>5.19</var>(2) at least 51 percent of the business's employees are employed in greater Minnesota, <br/>
<a id="pl.5.20"></a><var>5.20</var>and 51 percent of the business's total payroll is paid or incurred in greater Minnesota.<br/>
<a id="pl.5.21"></a><var>5.21</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.3.0"></a><a id="pl.5.22"></a><var>5.22</var>    Sec. 3. Minnesota Statutes 2010, section 116J.8737, subdivision 5, is amended to read:<br/>
<a id="pl.5.23"></a><var>5.23</var>    Subd. 5. <b>Credit allowed.</b> (a) A qualified investor or qualified fund is eligible for a <br/>
<a id="pl.5.24"></a><var>5.24</var>credit equal to:<br/>
<a id="pl.5.25"></a><var>5.25</var>(1) 25 percent of the qualified investment in a qualified small business; or<br/>
<a id="pl.5.26"></a><var>5.26</var>(2) 40 percent of the qualified investment in a qualified greater Minnesota business.<br/>
<a id="pl.5.27"></a><var>5.27</var>Investments made by a pass-through entity qualify for a credit only if the entity is a <br/>
<a id="pl.5.28"></a><var>5.28</var>qualified fund. The commissioner must not allocate more than $11,000,000 in credits to <br/>
<a id="pl.5.29"></a><var>5.29</var>qualified investors or qualified funds for taxable years beginning after December 31, <br/>
<a id="pl.5.30"></a><var>5.30</var>2009, and before January 1, 2011, and must not allocate more than $12,000,000 in credits <br/>
<a id="pl.5.31"></a><var>5.31</var>per year for taxable years beginning after December 31, 2010, and before January 1, <br/>
<a id="pl.5.32"></a><var>5.32</var>2015 2012, and must not allocate more than $14,000,000 in credits per year for taxable <br/>
<a id="pl.5.33"></a><var>5.33</var>years beginning after December 31, 2011, and before January 1, 2015. Any portion of a <br/>
<a id="pl.6.1"></a><var>6.1</var>taxable year's credits that is not allocated by the commissioner does not cancel and may be <br/>
<a id="pl.6.2"></a><var>6.2</var>carried forward to subsequent taxable years until all credits have been allocated.<br/>
<a id="pl.6.3"></a><var>6.3</var>(b) The commissioner may not allocate more than a total maximum amount in credits <br/>
<a id="pl.6.4"></a><var>6.4</var>for a taxable year to a qualified investor for the investor's cumulative qualified investments <br/>
<a id="pl.6.5"></a><var>6.5</var>as an individual qualified investor and as an investor in a qualified fund; for married <br/>
<a id="pl.6.6"></a><var>6.6</var>couples filing joint returns the maximum is $250,000, and for all other filers the maximum <br/>
<a id="pl.6.7"></a><var>6.7</var>is $125,000. The commissioner may not allocate more than a total of $1,000,000 in credits <br/>
<a id="pl.6.8"></a><var>6.8</var>over all taxable years for qualified investments in any one qualified small business.<br/>
<a id="pl.6.9"></a><var>6.9</var>(c) The commissioner may not allocate a credit to a qualified investor either as an <br/>
<a id="pl.6.10"></a><var>6.10</var>individual qualified investor or as an investor in a qualified fund if the investor receives <br/>
<a id="pl.6.11"></a><var>6.11</var>more than 50 percent of the investor's gross annual income from the qualified small <br/>
<a id="pl.6.12"></a><var>6.12</var>business in which the qualified investment is proposed. A member of the family of an <br/>
<a id="pl.6.13"></a><var>6.13</var>individual disqualified by this paragraph is not eligible for a credit under this section. For <br/>
<a id="pl.6.14"></a><var>6.14</var>a married couple filing a joint return, the limitations in this paragraph apply collectively <br/>
<a id="pl.6.15"></a><var>6.15</var>to the investor and spouse. For purposes of determining the ownership interest of an <br/>
<a id="pl.6.16"></a><var>6.16</var>investor under this paragraph, the rules under section 267(c) and 267(e) of the Internal <br/>
<a id="pl.6.17"></a><var>6.17</var>Revenue Code apply.<br/>
<a id="pl.6.18"></a><var>6.18</var>(d) Applications for tax credits for 2010 must be made available on the department's <br/>
<a id="pl.6.19"></a><var>6.19</var>Web site by September 1, 2010, and the department must begin accepting applications <br/>
<a id="pl.6.20"></a><var>6.20</var>by September 1, 2010. Applications for subsequent years must be made available by <br/>
<a id="pl.6.21"></a><var>6.21</var>November 1 of the preceding year.<br/>
<a id="pl.6.22"></a><var>6.22</var>(e) Qualified investors and qualified funds must apply to the commissioner for tax <br/>
<a id="pl.6.23"></a><var>6.23</var>credits. Tax credits must be allocated to qualified investors or qualified funds in the order <br/>
<a id="pl.6.24"></a><var>6.24</var>that the tax credit request applications are filed with the department. The commissioner <br/>
<a id="pl.6.25"></a><var>6.25</var>must approve or reject tax credit request applications within 15 days of receiving the <br/>
<a id="pl.6.26"></a><var>6.26</var>application. The investment specified in the application must be made within 60 days of <br/>
<a id="pl.6.27"></a><var>6.27</var>the allocation of the credits. If the investment is not made within 60 days, the credit <br/>
<a id="pl.6.28"></a><var>6.28</var>allocation is canceled and available for reallocation. A qualified investor or qualified fund <br/>
<a id="pl.6.29"></a><var>6.29</var>that fails to invest as specified in the application, within 60 days of allocation of the <br/>
<a id="pl.6.30"></a><var>6.30</var>credits, must notify the commissioner of the failure to invest within five business days of <br/>
<a id="pl.6.31"></a><var>6.31</var>the expiration of the 60-day investment period.<br/>
<a id="pl.6.32"></a><var>6.32</var>(f) All tax credit request applications filed with the department on the same day must <br/>
<a id="pl.6.33"></a><var>6.33</var>be treated as having been filed contemporaneously. If two or more qualified investors or <br/>
<a id="pl.6.34"></a><var>6.34</var>qualified funds file tax credit request applications on the same day, and the aggregate <br/>
<a id="pl.6.35"></a><var>6.35</var>amount of credit allocation claims exceeds the aggregate limit of credits under this section <br/>
<a id="pl.6.36"></a><var>6.36</var>or the lesser amount of credits that remain unallocated on that day, then the credits must <br/>
<a id="pl.7.1"></a><var>7.1</var>be allocated among the qualified investors or qualified funds who filed on that day on a <br/>
<a id="pl.7.2"></a><var>7.2</var>pro rata basis with respect to the amounts claimed. The pro rata allocation for any one <br/>
<a id="pl.7.3"></a><var>7.3</var>qualified investor or qualified fund is the product obtained by multiplying a fraction, <br/>
<a id="pl.7.4"></a><var>7.4</var>the numerator of which is the amount of the credit allocation claim filed on behalf of <br/>
<a id="pl.7.5"></a><var>7.5</var>a qualified investor and the denominator of which is the total of all credit allocation <br/>
<a id="pl.7.6"></a><var>7.6</var>claims filed on behalf of all applicants on that day, by the amount of credits that remain <br/>
<a id="pl.7.7"></a><var>7.7</var>unallocated on that day for the taxable year.<br/>
<a id="pl.7.8"></a><var>7.8</var>(g) A qualified investor or qualified fund, or a qualified small business acting on their <br/>
<a id="pl.7.9"></a><var>7.9</var>behalf, must notify the commissioner when an investment for which credits were allocated <br/>
<a id="pl.7.10"></a><var>7.10</var>has been made, and the taxable year in which the investment was made. A qualified fund <br/>
<a id="pl.7.11"></a><var>7.11</var>must also provide the commissioner with a statement indicating the amount invested by <br/>
<a id="pl.7.12"></a><var>7.12</var>each investor in the qualified fund based on each investor's share of the assets of the <br/>
<a id="pl.7.13"></a><var>7.13</var>qualified fund at the time of the qualified investment. After receiving notification that the <br/>
<a id="pl.7.14"></a><var>7.14</var>investment was made, the commissioner must issue credit certificates for the taxable year <br/>
<a id="pl.7.15"></a><var>7.15</var>in which the investment was made to the qualified investor or, for an investment made by <br/>
<a id="pl.7.16"></a><var>7.16</var>a qualified fund, to each qualified investor who is an investor in the fund. The certificate <br/>
<a id="pl.7.17"></a><var>7.17</var>must state that the credit is subject to revocation if the qualified investor or qualified <br/>
<a id="pl.7.18"></a><var>7.18</var>fund does not hold the investment in the qualified small business for at least three years, <br/>
<a id="pl.7.19"></a><var>7.19</var>consisting of the calendar year in which the investment was made and the two following <br/>
<a id="pl.7.20"></a><var>7.20</var>years. The three-year holding period does not apply if:<br/>
<a id="pl.7.21"></a><var>7.21</var>(1) the investment by the qualified investor or qualified fund becomes worthless <br/>
<a id="pl.7.22"></a><var>7.22</var>before the end of the three-year period;<br/>
<a id="pl.7.23"></a><var>7.23</var>(2) 80 percent or more of the assets of the qualified small business is sold before <br/>
<a id="pl.7.24"></a><var>7.24</var>the end of the three-year period;<br/>
<a id="pl.7.25"></a><var>7.25</var>(3) the qualified small business is sold before the end of the three-year period; or<br/>
<a id="pl.7.26"></a><var>7.26</var>(4) the qualified small business's common stock begins trading on a public exchange <br/>
<a id="pl.7.27"></a><var>7.27</var>before the end of the three-year period.<br/>
<a id="pl.7.28"></a><var>7.28</var>(h) The commissioner must notify the commissioner of revenue of credit certificates <br/>
<a id="pl.7.29"></a><var>7.29</var>issued under this section.<br/>
<a id="pl.7.30"></a><var>7.30</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment for <br/>
<a id="pl.7.31"></a><var>7.31</var>taxable years beginning after December 31, 2011.<br/>
<br/>
<a id="bill.1.4.0"></a><a id="pl.7.32"></a><var>7.32</var>    Sec. 4. Minnesota Statutes 2010, section 116J.8737, subdivision 7, is amended to read:<br/>
<a id="pl.7.33"></a><var>7.33</var>    Subd. 7. <b>Revocation of credits.</b> (a) If the commissioner determines that a <br/>
<a id="pl.7.34"></a><var>7.34</var>qualified investor or qualified fund did not meet the three-year holding period required in <br/>
<a id="pl.8.1"></a><var>8.1</var>subdivision 5, paragraph (g), any credit allocated and certified to the investor or fund is <br/>
<a id="pl.8.2"></a><var>8.2</var>revoked and must be repaid by the investor.<br/>
<a id="pl.8.3"></a><var>8.3</var>(b) If the commissioner determines that a business did not meet the employment <br/>
<a id="pl.8.4"></a><var>8.4</var>and payroll requirements in subdivision 2, paragraph (c), clause (2), or paragraph (h), <br/>
<a id="pl.8.5"></a><var>8.5</var>clause (2), as applicable, in any of the five calendar years following the year in which an <br/>
<a id="pl.8.6"></a><var>8.6</var>investment in the business that qualified for a tax credit under this section was made, <br/>
<a id="pl.8.7"></a><var>8.7</var>the business must repay the following percentage of the credits allowed for qualified <br/>
<a id="pl.8.8"></a><var>8.8</var>investments in the business:<br/>
<table>
<col width="50px"/>
<col width="15"/>
<col width="17.5"/>
<col width="17.5"/>
<col width="15"/>
<tr>
<td><a id="pl.8.9"></a><var>8.9</var><br/>
</td>
<td align="center" colspan="2">Year following the year in which<br/>
</td>
<td align="center" colspan="2">Percentage of credit required<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.10"></a><var>8.10</var><br/>
</td>
<td align="center" colspan="2">the investment was made:<br/>
</td>
<td align="center" colspan="2">to be repaid:<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.11"></a><var>8.11</var><br/>
</td>
<td></td>
<td>First<br/>
</td>
<td align="right">100%<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.8.12"></a><var>8.12</var><br/>
</td>
<td></td>
<td>Second<br/>
</td>
<td align="right">80%<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.8.13"></a><var>8.13</var><br/>
</td>
<td></td>
<td>Third<br/>
</td>
<td align="right">60%<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.8.14"></a><var>8.14</var><br/>
</td>
<td></td>
<td>Fourth<br/>
</td>
<td align="right">40%<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.8.15"></a><var>8.15</var><br/>
</td>
<td></td>
<td>Fifth<br/>
</td>
<td align="right">20%<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.8.16"></a><var>8.16</var><br/>
</td>
<td></td>
<td>Sixth and later<br/>
</td>
<td align="right">0<br/>
</td>
<td></td>
</tr>
</table><a id="pl.8.17"></a><var>8.17</var>(c) The commissioner must notify the commissioner of revenue of every credit <br/>
<a id="pl.8.18"></a><var>8.18</var>revoked and subject to full or partial repayment under this section.<br/>
<a id="pl.8.19"></a><var>8.19</var>(d) For the repayment of credits allowed under this section and section 
         <statute_ref>290.0692</statute_ref>, <br/>
<a id="pl.8.20"></a><var>8.20</var>a qualified small business, qualified investor, or investor in a qualified fund must file an <br/>
<a id="pl.8.21"></a><var>8.21</var>amended return with the commissioner of revenue and pay any amounts required to be <br/>
<a id="pl.8.22"></a><var>8.22</var>repaid within 30 days after becoming subject to repayment under this section.<br/>
<a id="pl.8.23"></a><var>8.23</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.5.0"></a><a id="pl.8.24"></a><var>8.24</var>    Sec. 5. Minnesota Statutes 2010, section 116J.8737, subdivision 8, is amended to read:<br/>
<a id="pl.8.25"></a><var>8.25</var>    Subd. 8. <b>Data privacy.</b> (a) Data contained in an application submitted to the <br/>
<a id="pl.8.26"></a><var>8.26</var>commissioner under subdivision 2, 3, or 4 are nonpublic data, or private data on <br/>
<a id="pl.8.27"></a><var>8.27</var>individuals, as defined in section 
         <statute_ref>13.02, subdivision 9</statute_ref> or 12, except that the following <br/>
<a id="pl.8.28"></a><var>8.28</var>data items are public:<br/>
<a id="pl.8.29"></a><var>8.29</var>(1) the name, mailing address, telephone number, e-mail address, contact person's <br/>
<a id="pl.8.30"></a><var>8.30</var>name, and industry type of a qualified small business upon approval of the application <br/>
<a id="pl.8.31"></a><var>8.31</var>and certification by the commissioner under subdivision 2;<br/>
<a id="pl.8.32"></a><var>8.32</var>(2) the name of a qualified investor upon approval of the application and certification <br/>
<a id="pl.8.33"></a><var>8.33</var>by the commissioner under subdivision 3;<br/>
<a id="pl.8.34"></a><var>8.34</var>(3) the name of a qualified fund upon approval of the application and certification <br/>
<a id="pl.8.35"></a><var>8.35</var>by the commissioner under subdivision 4;<br/>
<a id="pl.9.1"></a><var>9.1</var>(4) for credit certificates issued under subdivision 5, the amount of the credit <br/>
<a id="pl.9.2"></a><var>9.2</var>certificate issued, amount of the qualifying investment, the name of the qualifying investor <br/>
<a id="pl.9.3"></a><var>9.3</var>or qualifying fund that received the certificate, and the name of the qualifying small <br/>
<a id="pl.9.4"></a><var>9.4</var>business in which the qualifying investment was made;<br/>
<a id="pl.9.5"></a><var>9.5</var>(5) for credits revoked under subdivision 7, paragraph (a), the amount revoked and <br/>
<a id="pl.9.6"></a><var>9.6</var>the name of the qualified investor or qualified fund; and<br/>
<a id="pl.9.7"></a><var>9.7</var>(6) for credits revoked under subdivision 7, paragraphs (b) and (c), the amount <br/>
<a id="pl.9.8"></a><var>9.8</var>revoked and the name of the qualified small business.<br/>
<a id="pl.9.9"></a><var>9.9</var>(b) The following data, including data classified as nonpublic or private, must be <br/>
<a id="pl.9.10"></a><var>9.10</var>provided to the consultant for use in conducting the program evaluation under subdivision <br/>
<a id="pl.9.11"></a><var>9.11</var>10:<br/>
<a id="pl.9.12"></a><var>9.12</var>(1) the commissioner of employment and economic development shall provide data <br/>
<a id="pl.9.13"></a><var>9.13</var>contained in an application for certification received from a qualified small business, <br/>
<a id="pl.9.14"></a><var>9.14</var>qualified investor, or qualified fund, and any annual reporting information received on a <br/>
<a id="pl.9.15"></a><var>9.15</var>qualified small business, qualified investor, or qualified fund; and<br/>
<a id="pl.9.16"></a><var>9.16</var>(2) the commissioner of revenue shall provide data contained in any applicable tax <br/>
<a id="pl.9.17"></a><var>9.17</var>returns of a qualified small business, qualified investor, or qualified fund.<br/>
<a id="pl.9.18"></a><var>9.18</var><b>EFFECTIVE DATE.</b>This section is effective for businesses requesting certification <br/>
<a id="pl.9.19"></a><var>9.19</var>starting on the day following final enactment.<br/>
<br/>
<a id="bill.1.6.0"></a><a id="pl.9.20"></a><var>9.20</var>    Sec. 6. Minnesota Statutes 2010, section 116J.8737, subdivision 9, is amended to read:<br/>
<a id="pl.9.21"></a><var>9.21</var>    Subd. 9. <b>Report to legislature.</b> Beginning in 2011, the commissioner must <br/>
<a id="pl.9.22"></a><var>9.22</var>annually report by March 15 to the chairs and ranking minority members of the legislative <br/>
<a id="pl.9.23"></a><var>9.23</var>committees having jurisdiction over taxes and economic development in the senate and <br/>
<a id="pl.9.24"></a><var>9.24</var>the house of representatives, in compliance with sections 
         <statute_ref>3.195</statute_ref> and 
         <statute_ref>3.197</statute_ref>, on the tax <br/>
<a id="pl.9.25"></a><var>9.25</var>credits issued under this section. The report must include:<br/>
<a id="pl.9.26"></a><var>9.26</var>(1) the number and amount of the credits issued;<br/>
<a id="pl.9.27"></a><var>9.27</var>(2) the recipients of the credits;<br/>
<a id="pl.9.28"></a><var>9.28</var>(3) for each qualified small business, its location, line of business, and if it received <br/>
<a id="pl.9.29"></a><var>9.29</var>an investment resulting in certification of tax credits;<br/>
<a id="pl.9.30"></a><var>9.30</var>(4) the total amount of investment in each qualified small business resulting in <br/>
<a id="pl.9.31"></a><var>9.31</var>certification of tax credits;<br/>
<a id="pl.9.32"></a><var>9.32</var>(5) for each qualified small business that received investments resulting in tax <br/>
<a id="pl.9.33"></a><var>9.33</var>credits, the total amount of additional investment that did not qualify for the tax credit;<br/>
<a id="pl.9.34"></a><var>9.34</var>(6) the number and amount of credits revoked under subdivision 7;<br/>
<a id="pl.10.1"></a><var>10.1</var>(7) the number and amount of credits that are no longer subject to the three-year <br/>
<a id="pl.10.2"></a><var>10.2</var>holding period because of the exceptions under subdivision 5, paragraph (g), clauses <br/>
<a id="pl.10.3"></a><var>10.3</var>(1) to (4); and<br/>
<a id="pl.10.4"></a><var>10.4</var>(8) the number of qualified small businesses that are women- or minority-owned; and<br/>
<a id="pl.10.5"></a><var>10.5</var>(9) any other information relevant to evaluating the effect of these credits.<br/>
<br/>
<a id="bill.1.7.0"></a><a id="pl.10.6"></a><var>10.6</var>    Sec. 7. Minnesota Statutes 2011 Supplement, section 289A.02, subdivision 7, is <br/>
<a id="pl.10.7"></a><var>10.7</var>amended to read:<br/>
<a id="pl.10.8"></a><var>10.8</var>    Subd. 7. <b>Internal Revenue Code.</b> Unless specifically defined otherwise, "Internal <br/>
<a id="pl.10.9"></a><var>10.9</var>Revenue Code" means the Internal Revenue Code of 1986, as amended through April 14, <br/>
<a id="pl.10.10"></a><var>10.10</var>2011 February 14, 2012.<br/>
<a id="pl.10.11"></a><var>10.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.8.0"></a><a id="pl.10.12"></a><var>10.12</var>    Sec. 8. Minnesota Statutes 2010, section 289A.31, subdivision 5, is amended to read:<br/>
<a id="pl.10.13"></a><var>10.13</var>    Subd. 5. <b>Withholding tax, withholding from payments to out-of-state </b><br/>
<a id="pl.10.14"></a><var>10.14</var><b>contractors, and withholding by partnerships and small business corporations.</b> (a) <br/>
<a id="pl.10.15"></a><var>10.15</var>Except as provided in paragraph (b), an employer or person withholding tax under section <br/>
<statute_ref><a id="pl.10.16"></a><var>10.16</var>290.92
         </statute_ref> or 
         <statute_ref>290.923, subdivision 2</statute_ref>, who fails to pay to or deposit with the commissioner a <br/>
<a id="pl.10.17"></a><var>10.17</var>sum or sums required by those sections to be deducted, withheld, and paid, is personally <br/>
<a id="pl.10.18"></a><var>10.18</var>and individually liable to the state for the sum or sums, and added penalties and interest, <br/>
<a id="pl.10.19"></a><var>10.19</var>and is not liable to another person for that payment or payments. The sum or sums <br/>
<a id="pl.10.20"></a><var>10.20</var>deducted and withheld under section 
         <statute_ref>290.92, subdivision 2a</statute_ref> or 3, or 
         <statute_ref>290.923, subdivision <br/>
<a id="pl.10.21"></a><var>10.21</var>2
         </statute_ref>, must be held as a special fund in trust for the state of Minnesota.<br/>
<a id="pl.10.22"></a><var>10.22</var>(b) If the employer or person withholding tax under section 
         <statute_ref>290.92</statute_ref> or 
         <statute_ref>290.923, <br/>
<a id="pl.10.23"></a><var>10.23</var>subdivision 2
         </statute_ref>, fails to deduct and withhold the tax in violation of those sections, and later <br/>
<a id="pl.10.24"></a><var>10.24</var>the taxes against which the tax may be credited are paid, the tax required to be deducted <br/>
<a id="pl.10.25"></a><var>10.25</var>and withheld will not be collected from the employer. This does not, however, relieve the <br/>
<a id="pl.10.26"></a><var>10.26</var>employer from liability for any penalties and interest otherwise applicable for failure to <br/>
<a id="pl.10.27"></a><var>10.27</var>deduct and withhold. This paragraph does not apply to an employer subject to paragraph <br/>
<a id="pl.10.28"></a><var>10.28</var>(g), or to a contractor required to withhold under section 
<statute_ref>290.92, subdivision 31</statute_ref>.<br/>
<a id="pl.10.29"></a><var>10.29</var>(c) Liability for payment of withholding taxes includes a responsible person or entity <br/>
<a id="pl.10.30"></a><var>10.30</var>described in the personal liability provisions of section 
         <statute_ref>270C.56</statute_ref>.<br/>
<a id="pl.10.31"></a><var>10.31</var>(d) Liability for payment of withholding taxes includes a third-party lender or surety <br/>
<a id="pl.10.32"></a><var>10.32</var>described in section 
         <statute_ref>270C.59</statute_ref>.<br/>
<a id="pl.10.33"></a><var>10.33</var>(e) A partnership or S corporation required to withhold and remit tax under section <br/>
<statute_ref><a id="pl.10.34"></a><var>10.34</var>290.92, subdivisions 4b and 4c
         </statute_ref>, is liable for payment of the tax to the commissioner, and a <br/>
<a id="pl.11.1"></a><var>11.1</var>person having control of or responsibility for the withholding of the tax or the filing of <br/>
<a id="pl.11.2"></a><var>11.2</var>returns due in connection with the tax is personally liable for the tax due.<br/>
<a id="pl.11.3"></a><var>11.3</var>(f) A payor of sums required to be withheld under section 
         <statute_ref>290.9705, subdivision <br/>
<a id="pl.11.4"></a><var>11.4</var>1
         </statute_ref>, is liable to the state for the amount required to be deducted, and is not liable to an <br/>
<a id="pl.11.5"></a><var>11.5</var>out-of-state contractor for the amount of the payment.<br/>
<a id="pl.11.6"></a><var>11.6</var>(g) If an employer fails to withhold tax from the wages of an employee when <br/>
<a id="pl.11.7"></a><var>11.7</var>required to do so under section 
         <statute_ref>290.92, subdivision 2a</statute_ref>, by reason of treating such <br/>
<a id="pl.11.8"></a><var>11.8</var>employee as not being an employee, then the liability for tax is equal to three percent of <br/>
<a id="pl.11.9"></a><var>11.9</var>the wages paid to the employee. The liability for tax of an employee is not affected by <br/>
<a id="pl.11.10"></a><var>11.10</var>the assessment or collection of tax under this paragraph. The employer is not entitled to <br/>
<a id="pl.11.11"></a><var>11.11</var>recover from the employee any tax determined under this paragraph.<br/>
<a id="pl.11.12"></a><var>11.12</var><b>EFFECTIVE DATE.</b>This section is effective for payments made after June 30, <br/>
<a id="pl.11.13"></a><var>11.13</var>2012.<br/>
<br/>
<a id="bill.1.9.0"></a><a id="pl.11.14"></a><var>11.14</var>    Sec. 9. Minnesota Statutes 2011 Supplement, section 290.01, subdivision 19, is <br/>
<a id="pl.11.15"></a><var>11.15</var>amended to read:<br/>
<a id="pl.11.16"></a><var>11.16</var>    Subd. 19. <b>Net income.</b> The term "net income" means the federal taxable income, <br/>
<a id="pl.11.17"></a><var>11.17</var>as defined in section 63 of the Internal Revenue Code of 1986, as amended through the <br/>
<a id="pl.11.18"></a><var>11.18</var>date named in this subdivision, incorporating the federal effective dates of changes to the <br/>
<a id="pl.11.19"></a><var>11.19</var>Internal Revenue Code and any elections made by the taxpayer in accordance with the <br/>
<a id="pl.11.20"></a><var>11.20</var>Internal Revenue Code in determining federal taxable income for federal income tax <br/>
<a id="pl.11.21"></a><var>11.21</var>purposes, and with the modifications provided in subdivisions 19a to 19f.<br/>
<a id="pl.11.22"></a><var>11.22</var>    In the case of a regulated investment company or a fund thereof, as defined in section <br/>
<a id="pl.11.23"></a><var>11.23</var>851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment <br/>
<a id="pl.11.24"></a><var>11.24</var>company taxable income as defined in section 852(b)(2) of the Internal Revenue Code, <br/>
<a id="pl.11.25"></a><var>11.25</var>except that:<br/>
<a id="pl.11.26"></a><var>11.26</var>    (1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal <br/>
<a id="pl.11.27"></a><var>11.27</var>Revenue Code does not apply;<br/>
<a id="pl.11.28"></a><var>11.28</var>    (2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal <br/>
<a id="pl.11.29"></a><var>11.29</var>Revenue Code must be applied by allowing a deduction for capital gain dividends and <br/>
<a id="pl.11.30"></a><var>11.30</var>exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal <br/>
<a id="pl.11.31"></a><var>11.31</var>Revenue Code; and<br/>
<a id="pl.11.32"></a><var>11.32</var>    (3) the deduction for dividends paid must also be applied in the amount of any <br/>
<a id="pl.11.33"></a><var>11.33</var>undistributed capital gains which the regulated investment company elects to have treated <br/>
<a id="pl.11.34"></a><var>11.34</var>as provided in section 852(b)(3)(D) of the Internal Revenue Code.<br/>
<a id="pl.12.1"></a><var>12.1</var>    The net income of a real estate investment trust as defined and limited by section <br/>
<a id="pl.12.2"></a><var>12.2</var>856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust <br/>
<a id="pl.12.3"></a><var>12.3</var>taxable income as defined in section 857(b)(2) of the Internal Revenue Code.<br/>
<a id="pl.12.4"></a><var>12.4</var>    The net income of a designated settlement fund as defined in section 468B(d) of <br/>
<a id="pl.12.5"></a><var>12.5</var>the Internal Revenue Code means the gross income as defined in section 468B(b) of the <br/>
<a id="pl.12.6"></a><var>12.6</var>Internal Revenue Code.<br/>
<a id="pl.12.7"></a><var>12.7</var>    The Internal Revenue Code of 1986, as amended through April 14, 2011 February <br/>
<a id="pl.12.8"></a><var>12.8</var>14, 2012, shall be in effect for taxable years beginning after December 31, 1996. The <br/>
<a id="pl.12.9"></a><var>12.9</var>provisions of the act of January 22, 2010, Public Law 111-126, to accelerate the benefits <br/>
<a id="pl.12.10"></a><var>12.10</var>for charitable cash contributions for the relief of victims of the Haitian earthquake, are <br/>
<a id="pl.12.11"></a><var>12.11</var>effective at the same time they became effective for federal purposes and apply to the <br/>
<a id="pl.12.12"></a><var>12.12</var>subtraction under subdivision 19b, clause (6). The provisions of title II, section 2112, of <br/>
<a id="pl.12.13"></a><var>12.13</var>the act of September 27, 2010, Public Law 111-240, rollovers from elective deferral plans <br/>
<a id="pl.12.14"></a><var>12.14</var>to designated Roth accounts, are effective at the same time they became effective for <br/>
<a id="pl.12.15"></a><var>12.15</var>federal purposes and taxable rollovers are included in net income at the same time they are <br/>
<a id="pl.12.16"></a><var>12.16</var>included in gross income for federal purposes.<br/>
<a id="pl.12.17"></a><var>12.17</var>    Except as otherwise provided, references to the Internal Revenue Code in <br/>
<a id="pl.12.18"></a><var>12.18</var>subdivisions 19 to 19f mean the code in effect for purposes of determining net income for <br/>
<a id="pl.12.19"></a><var>12.19</var>the applicable year.<br/>
<a id="pl.12.20"></a><var>12.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.10.0"></a><a id="pl.12.21"></a><var>12.21</var>    Sec. 10. Minnesota Statutes 2011 Supplement, section 290.01, subdivision 19a, <br/>
<a id="pl.12.22"></a><var>12.22</var>is amended to read:<br/>
<a id="pl.12.23"></a><var>12.23</var>    Subd. 19a. <b>Additions to federal taxable income.</b> For individuals, estates, and <br/>
<a id="pl.12.24"></a><var>12.24</var>trusts, there shall be added to federal taxable income:<br/>
<a id="pl.12.25"></a><var>12.25</var>    (1)(i) interest income on obligations of any state other than Minnesota or a political <br/>
<a id="pl.12.26"></a><var>12.26</var>or governmental subdivision, municipality, or governmental agency or instrumentality <br/>
<a id="pl.12.27"></a><var>12.27</var>of any state other than Minnesota exempt from federal income taxes under the Internal <br/>
<a id="pl.12.28"></a><var>12.28</var>Revenue Code or any other federal statute; and<br/>
<a id="pl.12.29"></a><var>12.29</var>    (ii) exempt-interest dividends as defined in section 852(b)(5) of the Internal Revenue <br/>
<a id="pl.12.30"></a><var>12.30</var>Code, except:<br/>
<a id="pl.12.31"></a><var>12.31</var>(A) the portion of the exempt-interest dividends exempt from state taxation under <br/>
<a id="pl.12.32"></a><var>12.32</var>the laws of the United States; and<br/>
<a id="pl.12.33"></a><var>12.33</var>(B) the portion of the exempt-interest dividends derived from interest income <br/>
<a id="pl.12.34"></a><var>12.34</var>on obligations of the state of Minnesota or its political or governmental subdivisions, <br/>
<a id="pl.12.35"></a><var>12.35</var>municipalities, governmental agencies or instrumentalities, but only if the portion of the <br/>
<a id="pl.13.1"></a><var>13.1</var>exempt-interest dividends from such Minnesota sources paid to all shareholders represents <br/>
<a id="pl.13.2"></a><var>13.2</var>95 percent or more of the exempt-interest dividends, including any dividends exempt <br/>
<a id="pl.13.3"></a><var>13.3</var>under subitem (A), that are paid by the regulated investment company as defined in section <br/>
<a id="pl.13.4"></a><var>13.4</var>851(a) of the Internal Revenue Code, or the fund of the regulated investment company as <br/>
<a id="pl.13.5"></a><var>13.5</var>defined in section 851(g) of the Internal Revenue Code, making the payment; and<br/>
<a id="pl.13.6"></a><var>13.6</var>    (iii) for the purposes of items (i) and (ii), interest on obligations of an Indian tribal <br/>
<a id="pl.13.7"></a><var>13.7</var>government described in section 7871(c) of the Internal Revenue Code shall be treated as <br/>
<a id="pl.13.8"></a><var>13.8</var>interest income on obligations of the state in which the tribe is located;<br/>
<a id="pl.13.9"></a><var>13.9</var>    (2) the amount of income, sales and use, motor vehicle sales, or excise taxes paid or <br/>
<a id="pl.13.10"></a><var>13.10</var>accrued within the taxable year under this chapter and the amount of taxes based on net <br/>
<a id="pl.13.11"></a><var>13.11</var>income paid, sales and use, motor vehicle sales, or excise taxes paid to any other state <br/>
<a id="pl.13.12"></a><var>13.12</var>or to any province or territory of Canada, to the extent allowed as a deduction under <br/>
<a id="pl.13.13"></a><var>13.13</var>section 63(d) of the Internal Revenue Code, but the addition may not be more than the <br/>
<a id="pl.13.14"></a><var>13.14</var>amount by which the itemized deductions as allowed under section 63(d) of the Internal <br/>
<a id="pl.13.15"></a><var>13.15</var>Revenue Code exceeds the amount of the standard deduction as defined in section 63(c) of <br/>
<a id="pl.13.16"></a><var>13.16</var>the Internal Revenue Code, disregarding the amounts allowed under sections 63(c)(1)(C) <br/>
<a id="pl.13.17"></a><var>13.17</var>and 63(c)(1)(E) of the Internal Revenue Code, minus any addition that would have been <br/>
<a id="pl.13.18"></a><var>13.18</var>required under clause (21) if the taxpayer had claimed the standard deduction. For the <br/>
<a id="pl.13.19"></a><var>13.19</var>purpose of this paragraph, the disallowance of itemized deductions under section 68 of <br/>
<a id="pl.13.20"></a><var>13.20</var>the Internal Revenue Code of 1986, income, sales and use, motor vehicle sales, or excise <br/>
<a id="pl.13.21"></a><var>13.21</var>taxes are the last itemized deductions disallowed;<br/>
<a id="pl.13.22"></a><var>13.22</var>    (3) the capital gain amount of a lump-sum distribution to which the special tax under <br/>
<a id="pl.13.23"></a><var>13.23</var>section 1122(h)(3)(B)(ii) of the Tax Reform Act of 1986, Public Law 99-514, applies;<br/>
<a id="pl.13.24"></a><var>13.24</var>    (4) the amount of income taxes paid or accrued within the taxable year under this <br/>
<a id="pl.13.25"></a><var>13.25</var>chapter and taxes based on net income paid to any other state or any province or territory <br/>
<a id="pl.13.26"></a><var>13.26</var>of Canada, to the extent allowed as a deduction in determining federal adjusted gross <br/>
<a id="pl.13.27"></a><var>13.27</var>income. For the purpose of this paragraph, income taxes do not include the taxes imposed <br/>
<a id="pl.13.28"></a><var>13.28</var>by sections 
         <statute_ref>290.0922, subdivision 1</statute_ref>, paragraph (b), 
         <statute_ref>290.9727</statute_ref>, 
         <statute_ref>290.9728</statute_ref>, and 
         <statute_ref>290.9729</statute_ref>;<br/>
<a id="pl.13.29"></a><var>13.29</var>    (5) the amount of expense, interest, or taxes disallowed pursuant to section 
         <statute_ref>290.10 <br/>
</statute_ref><a id="pl.13.30"></a><var>13.30</var>other than expenses or interest used in computing net interest income for the subtraction <br/>
<a id="pl.13.31"></a><var>13.31</var>allowed under subdivision 19b, clause (1);<br/>
<a id="pl.13.32"></a><var>13.32</var>    (6) the amount of a partner's pro rata share of net income which does not flow <br/>
<a id="pl.13.33"></a><var>13.33</var>through to the partner because the partnership elected to pay the tax on the income under <br/>
<a id="pl.13.34"></a><var>13.34</var>section 6242(a)(2) of the Internal Revenue Code;<br/>
<a id="pl.13.35"></a><var>13.35</var>    (7) 80 percent of the depreciation deduction allowed under section 168(k) of the <br/>
<a id="pl.13.36"></a><var>13.36</var>Internal Revenue Code. For purposes of this clause, if the taxpayer has an activity that <br/>
<a id="pl.14.1"></a><var>14.1</var>in the taxable year generates a deduction for depreciation under section 168(k) and the <br/>
<a id="pl.14.2"></a><var>14.2</var>activity generates a loss for the taxable year that the taxpayer is not allowed to claim for <br/>
<a id="pl.14.3"></a><var>14.3</var>the taxable year, "the depreciation allowed under section 168(k)" for the taxable year is <br/>
<a id="pl.14.4"></a><var>14.4</var>limited to excess of the depreciation claimed by the activity under section 168(k) over the <br/>
<a id="pl.14.5"></a><var>14.5</var>amount of the loss from the activity that is not allowed in the taxable year. In succeeding <br/>
<a id="pl.14.6"></a><var>14.6</var>taxable years when the losses not allowed in the taxable year are allowed, the depreciation <br/>
<a id="pl.14.7"></a><var>14.7</var>under section 168(k) is allowed;<br/>
<a id="pl.14.8"></a><var>14.8</var>    (8) 80 percent of the amount by which the deduction allowed by section 179 of the <br/>
<a id="pl.14.9"></a><var>14.9</var>Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal <br/>
<a id="pl.14.10"></a><var>14.10</var>Revenue Code of 1986, as amended through December 31, 2003;<br/>
<a id="pl.14.11"></a><var>14.11</var>    (9) to the extent deducted in computing federal taxable income, the amount of the <br/>
<a id="pl.14.12"></a><var>14.12</var>deduction allowable under section 199 of the Internal Revenue Code;<br/>
<a id="pl.14.13"></a><var>14.13</var>    (10) for taxable years beginning before January 1, 2013, the exclusion allowed <br/>
<a id="pl.14.14"></a><var>14.14</var>under section 139A of the Internal Revenue Code for federal subsidies for prescription <br/>
<a id="pl.14.15"></a><var>14.15</var>drug plans;<br/>
<a id="pl.14.16"></a><var>14.16</var>(11) the amount of expenses disallowed under section 290.10, subdivision 2;<br/>
<a id="pl.14.17"></a><var>14.17</var>    (12) for taxable years beginning before January 1, 2010, the amount deducted for <br/>
<a id="pl.14.18"></a><var>14.18</var>qualified tuition and related expenses under section 222 of the Internal Revenue Code, to <br/>
<a id="pl.14.19"></a><var>14.19</var>the extent deducted from gross income;<br/>
<a id="pl.14.20"></a><var>14.20</var>    (13) for taxable years beginning before January 1, 2010, the amount deducted for <br/>
<a id="pl.14.21"></a><var>14.21</var>certain expenses of elementary and secondary school teachers under section 62(a)(2)(D) <br/>
<a id="pl.14.22"></a><var>14.22</var>of the Internal Revenue Code, to the extent deducted from gross income;<br/>
<a id="pl.14.23"></a><var>14.23</var>(14) the additional standard deduction for property taxes payable that is allowable <br/>
<a id="pl.14.24"></a><var>14.24</var>under section 63(c)(1)(C) of the Internal Revenue Code;<br/>
<a id="pl.14.25"></a><var>14.25</var>(15) the additional standard deduction for qualified motor vehicle sales taxes <br/>
<a id="pl.14.26"></a><var>14.26</var>allowable under section 63(c)(1)(E) of the Internal Revenue Code;<br/>
<a id="pl.14.27"></a><var>14.27</var>(16) discharge of indebtedness income resulting from reacquisition of business <br/>
<a id="pl.14.28"></a><var>14.28</var>indebtedness and deferred under section 108(i) of the Internal Revenue Code;<br/>
<a id="pl.14.29"></a><var>14.29</var>(17) the amount of unemployment compensation exempt from tax under section <br/>
<a id="pl.14.30"></a><var>14.30</var>85(c) of the Internal Revenue Code;<br/>
<a id="pl.14.31"></a><var>14.31</var>(18) changes to federal taxable income attributable to a net operating loss that the <br/>
<a id="pl.14.32"></a><var>14.32</var>taxpayer elected to carry back for more than two years for federal purposes but for which <br/>
<a id="pl.14.33"></a><var>14.33</var>the losses can be carried back for only two years under section 
         <statute_ref>290.095, subdivision <br/>
</statute_ref><a id="pl.14.34"></a><var>14.34</var>11, paragraph (c);<br/>
<a id="pl.14.35"></a><var>14.35</var>(19) to the extent included in the computation of federal taxable income in taxable <br/>
<a id="pl.14.36"></a><var>14.36</var>years beginning after December 31, 2010, the amount of disallowed itemized deductions, <br/>
<a id="pl.15.1"></a><var>15.1</var>but the amount of disallowed itemized deductions plus the addition required under clause <br/>
<a id="pl.15.2"></a><var>15.2</var>(2) may not be more than the amount by which the itemized deductions as allowed under <br/>
<a id="pl.15.3"></a><var>15.3</var>section 63(d) of the Internal Revenue Code exceeds the amount of the standard deduction <br/>
<a id="pl.15.4"></a><var>15.4</var>as defined in section 63(c) of the Internal Revenue Code, disregarding the amounts <br/>
<a id="pl.15.5"></a><var>15.5</var>allowed under sections 63(c)(1)(C) and 63(c)(1)(E) of the Internal Revenue Code, and <br/>
<a id="pl.15.6"></a><var>15.6</var>reduced by any addition that would have been required under clause (21) if the taxpayer <br/>
<a id="pl.15.7"></a><var>15.7</var>had claimed the standard deduction:<br/>
<a id="pl.15.8"></a><var>15.8</var>(i) the amount of disallowed itemized deductions is equal to the lesser of:<br/>
<a id="pl.15.9"></a><var>15.9</var>(A) three percent of the excess of the taxpayer's federal adjusted gross income <br/>
<a id="pl.15.10"></a><var>15.10</var>over the applicable amount; or<br/>
<a id="pl.15.11"></a><var>15.11</var>(B) 80 percent of the amount of the itemized deductions otherwise allowable to the <br/>
<a id="pl.15.12"></a><var>15.12</var>taxpayer under the Internal Revenue Code for the taxable year;<br/>
<a id="pl.15.13"></a><var>15.13</var>(ii) the term "applicable amount" means $100,000, or $50,000 in the case of a <br/>
<a id="pl.15.14"></a><var>15.14</var>married individual filing a separate return. Each dollar amount shall be increased by <br/>
<a id="pl.15.15"></a><var>15.15</var>an amount equal to:<br/>
<a id="pl.15.16"></a><var>15.16</var>(A) such dollar amount, multiplied by<br/>
<a id="pl.15.17"></a><var>15.17</var>(B) the cost-of-living adjustment determined under section 1(f)(3) of the Internal <br/>
<a id="pl.15.18"></a><var>15.18</var>Revenue Code for the calendar year in which the taxable year begins, by substituting <br/>
<a id="pl.15.19"></a><var>15.19</var>"calendar year 1990" for "calendar year 1992" in subparagraph (B) thereof;<br/>
<a id="pl.15.20"></a><var>15.20</var>(iii) the term "itemized deductions" does not include:<br/>
<a id="pl.15.21"></a><var>15.21</var>(A) the deduction for medical expenses under section 213 of the Internal Revenue <br/>
<a id="pl.15.22"></a><var>15.22</var>Code;<br/>
<a id="pl.15.23"></a><var>15.23</var>(B) any deduction for investment interest as defined in section 163(d) of the Internal <br/>
<a id="pl.15.24"></a><var>15.24</var>Revenue Code; and<br/>
<a id="pl.15.25"></a><var>15.25</var>(C) the deduction under section 165(a) of the Internal Revenue Code for casualty or <br/>
<a id="pl.15.26"></a><var>15.26</var>theft losses described in paragraph (2) or (3) of section 165(c) of the Internal Revenue <br/>
<a id="pl.15.27"></a><var>15.27</var>Code or for losses described in section 165(d) of the Internal Revenue Code;<br/>
<a id="pl.15.28"></a><var>15.28</var>(20) to the extent included in federal taxable income in taxable years beginning after <br/>
<a id="pl.15.29"></a><var>15.29</var>December 31, 2010, the amount of disallowed personal exemptions for taxpayers with <br/>
<a id="pl.15.30"></a><var>15.30</var>federal adjusted gross income over the threshold amount:<br/>
<a id="pl.15.31"></a><var>15.31</var>(i) the disallowed personal exemption amount is equal to the dollar amount of the <br/>
<a id="pl.15.32"></a><var>15.32</var>personal exemptions claimed by the taxpayer in the computation of federal taxable income <br/>
<a id="pl.15.33"></a><var>15.33</var>multiplied by the applicable percentage;<br/>
<a id="pl.15.34"></a><var>15.34</var>(ii) "applicable percentage" means two percentage points for each $2,500 (or <br/>
<a id="pl.15.35"></a><var>15.35</var>fraction thereof) by which the taxpayer's federal adjusted gross income for the taxable <br/>
<a id="pl.15.36"></a><var>15.36</var>year exceeds the threshold amount. In the case of a married individual filing a separate <br/>
<a id="pl.16.1"></a><var>16.1</var>return, the preceding sentence shall be applied by substituting "$1,250" for "$2,500." In <br/>
<a id="pl.16.2"></a><var>16.2</var>no event shall the applicable percentage exceed 100 percent;<br/>
<a id="pl.16.3"></a><var>16.3</var>(iii) the term "threshold amount" means:<br/>
<a id="pl.16.4"></a><var>16.4</var>(A) $150,000 in the case of a joint return or a surviving spouse;<br/>
<a id="pl.16.5"></a><var>16.5</var>(B) $125,000 in the case of a head of a household;<br/>
<a id="pl.16.6"></a><var>16.6</var>(C) $100,000 in the case of an individual who is not married and who is not a <br/>
<a id="pl.16.7"></a><var>16.7</var>surviving spouse or head of a household; and<br/>
<a id="pl.16.8"></a><var>16.8</var>(D) $75,000 in the case of a married individual filing a separate return; and<br/>
<a id="pl.16.9"></a><var>16.9</var>(iv) the thresholds shall be increased by an amount equal to:<br/>
<a id="pl.16.10"></a><var>16.10</var>(A) such dollar amount, multiplied by<br/>
<a id="pl.16.11"></a><var>16.11</var>(B) the cost-of-living adjustment determined under section 1(f)(3) of the Internal <br/>
<a id="pl.16.12"></a><var>16.12</var>Revenue Code for the calendar year in which the taxable year begins, by substituting <br/>
<a id="pl.16.13"></a><var>16.13</var>"calendar year 1990" for "calendar year 1992" in subparagraph (B) thereof; and<br/>
<a id="pl.16.14"></a><var>16.14</var>(21) to the extent deducted in the computation of federal taxable income, for taxable <br/>
<a id="pl.16.15"></a><var>16.15</var>years beginning after December 31, 2010, and before January 1, 2013 2012, the difference <br/>
<a id="pl.16.16"></a><var>16.16</var>between the standard deduction allowed under section 63(c) of the Internal Revenue Code <br/>
<a id="pl.16.17"></a><var>16.17</var>and the standard deduction allowed for 2011 and 2012 under the Internal Revenue Code <br/>
<a id="pl.16.18"></a><var>16.18</var>as amended through December 1, 2010.<br/>
<a id="pl.16.19"></a><var>16.19</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.16.20"></a><var>16.20</var>December 31, 2011.<br/>
<br/>
<a id="bill.1.11.0"></a><a id="pl.16.21"></a><var>16.21</var>    Sec. 11. Minnesota Statutes 2011 Supplement, section 290.01, subdivision 19b, <br/>
<a id="pl.16.22"></a><var>16.22</var>is amended to read:<br/>
<a id="pl.16.23"></a><var>16.23</var>    Subd. 19b. <b>Subtractions from federal taxable income.</b> For individuals, estates, <br/>
<a id="pl.16.24"></a><var>16.24</var>and trusts, there shall be subtracted from federal taxable income:<br/>
<a id="pl.16.25"></a><var>16.25</var>    (1) net interest income on obligations of any authority, commission, or <br/>
<a id="pl.16.26"></a><var>16.26</var>instrumentality of the United States to the extent includable in taxable income for federal <br/>
<a id="pl.16.27"></a><var>16.27</var>income tax purposes but exempt from state income tax under the laws of the United States;<br/>
<a id="pl.16.28"></a><var>16.28</var>    (2) if included in federal taxable income, the amount of any overpayment of income <br/>
<a id="pl.16.29"></a><var>16.29</var>tax to Minnesota or to any other state, for any previous taxable year, whether the amount <br/>
<a id="pl.16.30"></a><var>16.30</var>is received as a refund or as a credit to another taxable year's income tax liability;<br/>
<a id="pl.16.31"></a><var>16.31</var>    (3) the amount paid to others, less the amount used to claim the credit allowed under <br/>
<a id="pl.16.32"></a><var>16.32</var>section 
         <statute_ref>290.0674</statute_ref>, not to exceed $1,625 for each qualifying child in grades kindergarten <br/>
<a id="pl.16.33"></a><var>16.33</var>to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and <br/>
<a id="pl.16.34"></a><var>16.34</var>transportation of each qualifying child in attending an elementary or secondary school <br/>
<a id="pl.16.35"></a><var>16.35</var>situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a <br/>
<a id="pl.17.1"></a><var>17.1</var>resident of this state may legally fulfill the state's compulsory attendance laws, which <br/>
<a id="pl.17.2"></a><var>17.2</var>is not operated for profit, and which adheres to the provisions of the Civil Rights Act <br/>
<a id="pl.17.3"></a><var>17.3</var>of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or <br/>
<a id="pl.17.4"></a><var>17.4</var>tuition as defined in section 
         <statute_ref>290.0674, subdivision 1</statute_ref>, clause (1). As used in this clause, <br/>
<a id="pl.17.5"></a><var>17.5</var>"textbooks" includes books and other instructional materials and equipment purchased <br/>
<a id="pl.17.6"></a><var>17.6</var>or leased for use in elementary and secondary schools in teaching only those subjects <br/>
<a id="pl.17.7"></a><var>17.7</var>legally and commonly taught in public elementary and secondary schools in this state. <br/>
<a id="pl.17.8"></a><var>17.8</var>Equipment expenses qualifying for deduction includes expenses as defined and limited in <br/>
<a id="pl.17.9"></a><var>17.9</var>section 
         <statute_ref>290.0674, subdivision 1</statute_ref>, clause (3). "Textbooks" does not include instructional <br/>
<a id="pl.17.10"></a><var>17.10</var>books and materials used in the teaching of religious tenets, doctrines, or worship, the <br/>
<a id="pl.17.11"></a><var>17.11</var>purpose of which is to instill such tenets, doctrines, or worship, nor does it include books <br/>
<a id="pl.17.12"></a><var>17.12</var>or materials for, or transportation to, extracurricular activities including sporting events, <br/>
<a id="pl.17.13"></a><var>17.13</var>musical or dramatic events, speech activities, driver's education, or similar programs. No <br/>
<a id="pl.17.14"></a><var>17.14</var>deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or <br/>
<a id="pl.17.15"></a><var>17.15</var>the qualifying child's vehicle to provide such transportation for a qualifying child. For <br/>
<a id="pl.17.16"></a><var>17.16</var>purposes of the subtraction provided by this clause, "qualifying child" has the meaning <br/>
<a id="pl.17.17"></a><var>17.17</var>given in section 32(c)(3) of the Internal Revenue Code;<br/>
<a id="pl.17.18"></a><var>17.18</var>    (4) income as provided under section 
         <statute_ref>290.0802</statute_ref>;<br/>
<a id="pl.17.19"></a><var>17.19</var>    (5) to the extent included in federal adjusted gross income, income realized on <br/>
<a id="pl.17.20"></a><var>17.20</var>disposition of property exempt from tax under section 
         <statute_ref>290.491</statute_ref>;<br/>
<a id="pl.17.21"></a><var>17.21</var>    (6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E) <br/>
<a id="pl.17.22"></a><var>17.22</var>of the Internal Revenue Code in determining federal taxable income by an individual <br/>
<a id="pl.17.23"></a><var>17.23</var>who does not itemize deductions for federal income tax purposes for the taxable year, an <br/>
<a id="pl.17.24"></a><var>17.24</var>amount equal to 50 percent of the excess of charitable contributions over $500 allowable <br/>
<a id="pl.17.25"></a><var>17.25</var>as a deduction for the taxable year under section 170(a) of the Internal Revenue Code, <br/>
<a id="pl.17.26"></a><var>17.26</var>under the provisions of Public Law 109-1 and Public Law 111-126;<br/>
<a id="pl.17.27"></a><var>17.27</var>    (7) for individuals who are allowed a federal foreign tax credit for taxes that do not <br/>
<a id="pl.17.28"></a><var>17.28</var>qualify for a credit under section 
         <statute_ref>290.06, subdivision 22</statute_ref>, an amount equal to the carryover <br/>
<a id="pl.17.29"></a><var>17.29</var>of subnational foreign taxes for the taxable year, but not to exceed the total subnational <br/>
<a id="pl.17.30"></a><var>17.30</var>foreign taxes reported in claiming the foreign tax credit. For purposes of this clause, <br/>
<a id="pl.17.31"></a><var>17.31</var>"federal foreign tax credit" means the credit allowed under section 27 of the Internal <br/>
<a id="pl.17.32"></a><var>17.32</var>Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed <br/>
<a id="pl.17.33"></a><var>17.33</var>under section 904(c) of the Internal Revenue Code minus national level foreign taxes to <br/>
<a id="pl.17.34"></a><var>17.34</var>the extent they exceed the federal foreign tax credit;<br/>
<a id="pl.17.35"></a><var>17.35</var>    (8) in each of the five tax years immediately following the tax year in which an <br/>
<a id="pl.17.36"></a><var>17.36</var>addition is required under subdivision 19a, clause (7), or 19c, clause (15), in the case <br/>
<a id="pl.18.1"></a><var>18.1</var>of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth <br/>
<a id="pl.18.2"></a><var>18.2</var>of the delayed depreciation. For purposes of this clause, "delayed depreciation" means <br/>
<a id="pl.18.3"></a><var>18.3</var>the amount of the addition made by the taxpayer under subdivision 19a, clause (7), or <br/>
<a id="pl.18.4"></a><var>18.4</var>subdivision 19c, clause (15), in the case of a shareholder of an S corporation, minus the <br/>
<a id="pl.18.5"></a><var>18.5</var>positive value of any net operating loss under section 172 of the Internal Revenue Code <br/>
<a id="pl.18.6"></a><var>18.6</var>generated for the tax year of the addition. The resulting delayed depreciation cannot be <br/>
<a id="pl.18.7"></a><var>18.7</var>less than zero;<br/>
<a id="pl.18.8"></a><var>18.8</var>    (9) job opportunity building zone income as provided under section 
         <statute_ref>469.316</statute_ref>;<br/>
<a id="pl.18.9"></a><var>18.9</var>    (10) to the extent included in federal taxable income, the amount of compensation <br/>
<a id="pl.18.10"></a><var>18.10</var>paid to members of the Minnesota National Guard or other reserve components of the <br/>
<a id="pl.18.11"></a><var>18.11</var>United States military for active service, excluding compensation for services performed <br/>
<a id="pl.18.12"></a><var>18.12</var>under the Active Guard Reserve (AGR) program. For purposes of this clause, "active <br/>
<a id="pl.18.13"></a><var>18.13</var>service" means (i) state active service as defined in section 
         <statute_ref>190.05, subdivision 5a</statute_ref>, clause <br/>
<a id="pl.18.14"></a><var>18.14</var>(1); or (ii) federally funded state active service as defined in section 
         <statute_ref>190.05, subdivision <br/>
<a id="pl.18.15"></a><var>18.15</var>5b
         </statute_ref>, but "active service" excludes service performed in accordance with section 
         <statute_ref>190.08, <br/>
<a id="pl.18.16"></a><var>18.16</var>subdivision 3
         </statute_ref>;<br/>
<a id="pl.18.17"></a><var>18.17</var>    (11) to the extent included in federal taxable income, the amount of compensation <br/>
<a id="pl.18.18"></a><var>18.18</var>paid to Minnesota residents who are members of the armed forces of the United States <br/>
<a id="pl.18.19"></a><var>18.19</var>or United Nations for active duty performed under United States Code, title 10; or the <br/>
<a id="pl.18.20"></a><var>18.20</var>authority of the United Nations;<br/>
<a id="pl.18.21"></a><var>18.21</var>    (12) an amount, not to exceed $10,000, equal to qualified expenses related to a <br/>
<a id="pl.18.22"></a><var>18.22</var>qualified donor's donation, while living, of one or more of the qualified donor's organs <br/>
<a id="pl.18.23"></a><var>18.23</var>to another person for human organ transplantation. For purposes of this clause, "organ" <br/>
<a id="pl.18.24"></a><var>18.24</var>means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow; <br/>
<a id="pl.18.25"></a><var>18.25</var>"human organ transplantation" means the medical procedure by which transfer of a human <br/>
<a id="pl.18.26"></a><var>18.26</var>organ is made from the body of one person to the body of another person; "qualified <br/>
<a id="pl.18.27"></a><var>18.27</var>expenses" means unreimbursed expenses for both the individual and the qualified donor <br/>
<a id="pl.18.28"></a><var>18.28</var>for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses <br/>
<a id="pl.18.29"></a><var>18.29</var>may be subtracted under this clause only once; and "qualified donor" means the individual <br/>
<a id="pl.18.30"></a><var>18.30</var>or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An <br/>
<a id="pl.18.31"></a><var>18.31</var>individual may claim the subtraction in this clause for each instance of organ donation for <br/>
<a id="pl.18.32"></a><var>18.32</var>transplantation during the taxable year in which the qualified expenses occur;<br/>
<a id="pl.18.33"></a><var>18.33</var>    (13) in each of the five tax years immediately following the tax year in which an <br/>
<a id="pl.18.34"></a><var>18.34</var>addition is required under subdivision 19a, clause (8), or 19c, clause (16), in the case of a <br/>
<a id="pl.18.35"></a><var>18.35</var>shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the <br/>
<a id="pl.18.36"></a><var>18.36</var>addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (16), in the <br/>
<a id="pl.19.1"></a><var>19.1</var>case of a shareholder of a corporation that is an S corporation, minus the positive value of <br/>
<a id="pl.19.2"></a><var>19.2</var>any net operating loss under section 172 of the Internal Revenue Code generated for the <br/>
<a id="pl.19.3"></a><var>19.3</var>tax year of the addition. If the net operating loss exceeds the addition for the tax year, a <br/>
<a id="pl.19.4"></a><var>19.4</var>subtraction is not allowed under this clause;<br/>
<a id="pl.19.5"></a><var>19.5</var>    (14) to the extent included in the federal taxable income of a nonresident of <br/>
<a id="pl.19.6"></a><var>19.6</var>Minnesota, compensation paid to a service member as defined in United States Code, title <br/>
<a id="pl.19.7"></a><var>19.7</var>10, section 101(a)(5), for military service as defined in the Servicemembers Civil Relief <br/>
<a id="pl.19.8"></a><var>19.8</var>Act, Public Law 108-189, section 101(2);<br/>
<a id="pl.19.9"></a><var>19.9</var>    (15) international economic development zone income as provided under section <br/>
<statute_ref><a id="pl.19.10"></a><var>19.10</var>469.325
         </statute_ref>;<br/>
<a id="pl.19.11"></a><var>19.11</var>    (16) to the extent included in federal taxable income, the amount of national service <br/>
<a id="pl.19.12"></a><var>19.12</var>educational awards received from the National Service Trust under United States Code, <br/>
<a id="pl.19.13"></a><var>19.13</var>title 42, sections 12601 to 12604, for service in an approved Americorps National Service <br/>
<a id="pl.19.14"></a><var>19.14</var>program;<br/>
<a id="pl.19.15"></a><var>19.15</var>(17) to the extent included in federal taxable income, discharge of indebtedness <br/>
<a id="pl.19.16"></a><var>19.16</var>income resulting from reacquisition of business indebtedness included in federal taxable <br/>
<a id="pl.19.17"></a><var>19.17</var>income under section 108(i) of the Internal Revenue Code. This subtraction applies only <br/>
<a id="pl.19.18"></a><var>19.18</var>to the extent that the income was included in net income in a prior year as a result of the <br/>
<a id="pl.19.19"></a><var>19.19</var>addition under section 
         <statute_ref>290.01, subdivision 19a</statute_ref>, clause (16); and<br/>
<a id="pl.19.20"></a><var>19.20</var>(18) the amount of the net operating loss allowed under section 
         <statute_ref>290.095, subdivision <br/>
</statute_ref><a id="pl.19.21"></a><var>19.21</var>11, paragraph (c).; and<br/>
<a id="pl.19.22"></a><var>19.22</var>(19) to the extent included in federal taxable income, 46 percent of compensation <br/>
<a id="pl.19.23"></a><var>19.23</var>received from a pension or other retirement pay from the federal government for service <br/>
<a id="pl.19.24"></a><var>19.24</var>in the military, as computed under United States Code, title 10, sections 1401 to 1414, <br/>
<a id="pl.19.25"></a><var>19.25</var>1447 to 1455, and 12733, not including any credit received in previous years for credit <br/>
<a id="pl.19.26"></a><var>19.26</var>allowed under section 290.0677, subdivision 1.<br/>
<a id="pl.19.27"></a><var>19.27</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.19.28"></a><var>19.28</var>December 31, 2012.<br/>
<br/>
<a id="bill.1.12.0"></a><a id="pl.19.29"></a><var>19.29</var>    Sec. 12. Minnesota Statutes 2011 Supplement, section 290.01, subdivision 31, is <br/>
<a id="pl.19.30"></a><var>19.30</var>amended to read:<br/>
<a id="pl.19.31"></a><var>19.31</var>    Subd. 31. <b>Internal Revenue Code.</b> Unless specifically defined otherwise, "Internal <br/>
<a id="pl.19.32"></a><var>19.32</var>Revenue Code" means the Internal Revenue Code of 1986, as amended through April 14, <br/>
<a id="pl.19.33"></a><var>19.33</var>2011 February 14, 2012. Internal Revenue Code also includes any uncodified provision in <br/>
<a id="pl.19.34"></a><var>19.34</var>federal law that relates to provisions of the Internal Revenue Code that are incorporated <br/>
<a id="pl.19.35"></a><var>19.35</var>into Minnesota law. When used in this chapter, the reference to "subtitle A, chapter 1, <br/>
<a id="pl.20.1"></a><var>20.1</var>subchapter N, part 1, of the Internal Revenue Code" is to the Internal Revenue Code as <br/>
<a id="pl.20.2"></a><var>20.2</var>amended through March 18, 2010.<br/>
<a id="pl.20.3"></a><var>20.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.13.0"></a><a id="pl.20.4"></a><var>20.4</var>    Sec. 13. Minnesota Statutes 2010, section 290.0677, subdivision 1, is amended to read:<br/>
<a id="pl.20.5"></a><var>20.5</var>    Subdivision 1. <b>Credit allowed; current military service. </b> (a) An individual is <br/>
<a id="pl.20.6"></a><var>20.6</var>allowed a credit against the tax due under this chapter equal to $59 for each month or <br/>
<a id="pl.20.7"></a><var>20.7</var>portion thereof that the individual was in active military service in a designated area after <br/>
<a id="pl.20.8"></a><var>20.8</var>September 11, 2001, and before January 1, 2009, while a Minnesota domiciliary.<br/>
<a id="pl.20.9"></a><var>20.9</var>    (b) An individual is allowed a credit against the tax due under this chapter equal <br/>
<a id="pl.20.10"></a><var>20.10</var>to $120 $240 for each month or portion thereof that the individual was in active military <br/>
<a id="pl.20.11"></a><var>20.11</var>service in a designated area after December 31, 2008, while a Minnesota domiciliary.<br/>
<a id="pl.20.12"></a><var>20.12</var>    (c) For active service performed after September 11, 2001, and before December 31, <br/>
<a id="pl.20.13"></a><var>20.13</var>2006, the individual may claim the credit in the taxable year beginning after December 31, <br/>
<a id="pl.20.14"></a><var>20.14</var>2005, and before January 1, 2007.<br/>
<a id="pl.20.15"></a><var>20.15</var>    (d) For active service performed after December 31, 2006, the individual may claim <br/>
<a id="pl.20.16"></a><var>20.16</var>the credit for the taxable year in which the active service was performed.<br/>
<a id="pl.20.17"></a><var>20.17</var>    (e) If an individual entitled to the credit died prior to January 1, 2006, the individual's <br/>
<a id="pl.20.18"></a><var>20.18</var>estate or heirs at law, if the individual's probate estate has closed or the estate was not <br/>
<a id="pl.20.19"></a><var>20.19</var>probated, may claim the credit.<br/>
<a id="pl.20.20"></a><var>20.20</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.20.21"></a><var>20.21</var>December 31, 2012.<br/>
<br/>
<a id="bill.1.14.0"></a><a id="pl.20.22"></a><var>20.22</var>    Sec. 14. Minnesota Statutes 2010, section 290.0677, subdivision 2, is amended to read:<br/>
<a id="pl.20.23"></a><var>20.23</var>    Subd. 2. <b>Definitions.</b> (a) For purposes of this section the following terms have <br/>
<a id="pl.20.24"></a><var>20.24</var>the meanings given.<br/>
<a id="pl.20.25"></a><var>20.25</var>    (b) "Designated area" means a:<br/>
<a id="pl.20.26"></a><var>20.26</var>    (1) combat zone designated by Executive Order from the President of the United <br/>
<a id="pl.20.27"></a><var>20.27</var>States;<br/>
<a id="pl.20.28"></a><var>20.28</var>    (2) qualified hazardous duty area, designated in Public Law; or<br/>
<a id="pl.20.29"></a><var>20.29</var>    (3) location certified by the U. S. Department of Defense as eligible for combat zone <br/>
<a id="pl.20.30"></a><var>20.30</var>tax benefits due to the location's direct support of military operations.<br/>
<a id="pl.20.31"></a><var>20.31</var>    (c) "Active military service" means active duty service in any of the United States <br/>
<a id="pl.20.32"></a><var>20.32</var>armed forces, the National Guard, or reserves.<br/>
<a id="pl.20.33"></a><var>20.33</var>    (d) "Qualified individual" means an individual who has<br/>
<a id="pl.21.1"></a><var>21.1</var>    (1) either (i) served at least 20 years in the military or (ii) has a service-connected <br/>
<a id="pl.21.2"></a><var>21.2</var>disability rating of 100 percent for a total and permanent disability; and<br/>
<a id="pl.21.3"></a><var>21.3</var>    (2) separated from military service before the end of the taxable year.<br/>
<a id="pl.21.4"></a><var>21.4</var>    (e) "Adjusted gross income" has the meaning given in section 61 of the Internal <br/>
<a id="pl.21.5"></a><var>21.5</var>Revenue Code.<br/>
<a id="pl.21.6"></a><var>21.6</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.21.7"></a><var>21.7</var>December 31, 2012.<br/>
<br/>
<a id="bill.1.15.0"></a><a id="pl.21.8"></a><var>21.8</var>    Sec. 15. Minnesota Statutes 2010, section 290.0681, subdivision 1, is amended to read:<br/>
<a id="pl.21.9"></a><var>21.9</var>    Subdivision 1. <b>Definitions.</b> (a) For purposes of this section, the following terms <br/>
<a id="pl.21.10"></a><var>21.10</var>have the meanings given.<br/>
<a id="pl.21.11"></a><var>21.11</var>(b) "Account" means the historic credit administration account in the special <br/>
<a id="pl.21.12"></a><var>21.12</var>revenue fund.<br/>
<a id="pl.21.13"></a><var>21.13</var>(c) "Office" means the State Historic Preservation Office of the Minnesota Historical <br/>
<a id="pl.21.14"></a><var>21.14</var>Society.<br/>
<a id="pl.21.15"></a><var>21.15</var>(d) "Project" means rehabilitation of a certified historic structure, as defined in <br/>
<a id="pl.21.16"></a><var>21.16</var>section 47(c)(3)(A) of the Internal Revenue Code, that is located in Minnesota and is <br/>
<a id="pl.21.17"></a><var>21.17</var>allowed a federal credit under section 47(a)(2) of the Internal Revenue Code.<br/>
<a id="pl.21.18"></a><var>21.18</var>(e) "Society" means the Minnesota Historical Society.<br/>
<a id="pl.21.19"></a><var>21.19</var>(f) "Federal credit" means the credit allowed under section 47(a)(2) of the Internal <br/>
<a id="pl.21.20"></a><var>21.20</var>Revenue Code.<br/>
<a id="pl.21.21"></a><var>21.21</var>(g) "Placed in service" has the meaning given in section 47 of the Internal Revenue <br/>
<a id="pl.21.22"></a><var>21.22</var>Code.<br/>
<a id="pl.21.23"></a><var>21.23</var>(h) "Qualified rehabilitation expenditures" has the meaning given in section 47 of <br/>
<a id="pl.21.24"></a><var>21.24</var>the Internal Revenue Code.<br/>
<a id="pl.21.25"></a><var>21.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.16.0"></a><a id="pl.21.26"></a><var>21.26</var>    Sec. 16. Minnesota Statutes 2010, section 290.0681, subdivision 3, is amended to read:<br/>
<a id="pl.21.27"></a><var>21.27</var>    Subd. 3. <b>Applications; allocations.</b> (a) To qualify for a credit or grant under this <br/>
<a id="pl.21.28"></a><var>21.28</var>section, the developer of a project must apply to the office before the rehabilitation begins. <br/>
<a id="pl.21.29"></a><var>21.29</var>The application must contain the information and be in the form prescribed by the office. <br/>
<a id="pl.21.30"></a><var>21.30</var>The office may collect a fee for application of up to $5,000, based on estimated qualified <br/>
<a id="pl.21.31"></a><var>21.31</var>rehabilitation expenses expenditures, to offset costs associated with personnel and <br/>
<a id="pl.21.32"></a><var>21.32</var>administrative expenses related to administering the credit and preparing the economic <br/>
<a id="pl.21.33"></a><var>21.33</var>impact report in subdivision 9. Application fees are deposited in the account. The <br/>
<a id="pl.22.1"></a><var>22.1</var>application must indicate if the application is for a credit or a grant in lieu of the credit <br/>
<a id="pl.22.2"></a><var>22.2</var>or a combination of the two and designate the taxpayer qualifying for the credit or the <br/>
<a id="pl.22.3"></a><var>22.3</var>recipient of the grant.<br/>
<a id="pl.22.4"></a><var>22.4</var>    (b) Upon approving an application for credit, the office shall issue allocation <br/>
<a id="pl.22.5"></a><var>22.5</var>certificates that:<br/>
<a id="pl.22.6"></a><var>22.6</var>    (1) verify eligibility for the credit or grant;<br/>
<a id="pl.22.7"></a><var>22.7</var>    (2) state the amount of credit or grant anticipated with the project, with the credit <br/>
<a id="pl.22.8"></a><var>22.8</var>amount equal to 100 percent and the grant amount equal to 90 percent of the federal <br/>
<a id="pl.22.9"></a><var>22.9</var>credit anticipated in the application;<br/>
<a id="pl.22.10"></a><var>22.10</var>    (3) state that the credit or grant allowed may increase or decrease if the federal <br/>
<a id="pl.22.11"></a><var>22.11</var>credit the project receives at the time it is placed in service is different than the amount <br/>
<a id="pl.22.12"></a><var>22.12</var>anticipated at the time the allocation certificate is issued; and<br/>
<a id="pl.22.13"></a><var>22.13</var>    (4) state the fiscal year in which the credit or grant is allocated, and that the taxpayer <br/>
<a id="pl.22.14"></a><var>22.14</var>or grant recipient is entitled to receive the credit or grant at the time the project is placed <br/>
<a id="pl.22.15"></a><var>22.15</var>in service, provided that date is within three calendar years following the issuance of <br/>
<a id="pl.22.16"></a><var>22.16</var>the allocation certificate.<br/>
<a id="pl.22.17"></a><var>22.17</var>    (c) The office, in consultation with the commissioner of revenue, shall determine if <br/>
<a id="pl.22.18"></a><var>22.18</var>the project is eligible for a credit or a grant under this section. Eligibility for the credit is <br/>
<a id="pl.22.19"></a><var>22.19</var>subject to review and audit by the commissioner of revenue.<br/>
<a id="pl.22.20"></a><var>22.20</var>    (d) The federal credit recapture and repayment requirements under section 50 of the <br/>
<a id="pl.22.21"></a><var>22.21</var>Internal Revenue Code do not apply to the credit allowed under this section.<br/>
<a id="pl.22.22"></a><var>22.22</var>(e) Any decision of the office or the society under this subdivision may be challenged <br/>
<a id="pl.22.23"></a><var>22.23</var>as a contested case under chapter 14.<br/>
<a id="pl.22.24"></a><var>22.24</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.17.0"></a><a id="pl.22.25"></a><var>22.25</var>    Sec. 17. Minnesota Statutes 2010, section 290.0681, subdivision 5, is amended to read:<br/>
<a id="pl.22.26"></a><var>22.26</var>    Subd. 5. <b>Partnerships; multiple owners.</b> Credits granted to a partnership, a limited <br/>
<a id="pl.22.27"></a><var>22.27</var>liability company taxed as a partnership, S corporation, or multiple owners of property <br/>
<a id="pl.22.28"></a><var>22.28</var>are passed through to the partners, members, shareholders, or owners, respectively, pro <br/>
<a id="pl.22.29"></a><var>22.29</var>rata to each partner, member, shareholder, or owner based on their share of the entity's <br/>
<a id="pl.22.30"></a><var>22.30</var>assets or as specially allocated in their organizational documents or any other executed <br/>
<a id="pl.22.31"></a><var>22.31</var>agreement, as of the last day of the taxable year.<br/>
<a id="pl.22.32"></a><var>22.32</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.18.0"></a><a id="pl.23.1"></a><var>23.1</var>    Sec. 18. Minnesota Statutes 2010, section 290.0681, subdivision 10, is amended to <br/>
<a id="pl.23.2"></a><var>23.2</var>read:<br/>
<a id="pl.23.3"></a><var>23.3</var>    Subd. 10. <b>Sunset.</b> This section expires after fiscal year 2015 2021, except that <br/>
<a id="pl.23.4"></a><var>23.4</var>the office's authority to issue credit certificates under subdivision 4 based on allocation <br/>
<a id="pl.23.5"></a><var>23.5</var>certificates that were issued before fiscal year 2016 2022 remains in effect through 2018 <br/>
<a id="pl.23.6"></a><var>23.6</var>2024, and the reporting requirements in subdivision 9 remain in effect through the year <br/>
<a id="pl.23.7"></a><var>23.7</var>following the year in which all allocation certificates have either been canceled or resulted <br/>
<a id="pl.23.8"></a><var>23.8</var>in issuance of credit certificates, or 2019 2025, whichever is earlier.<br/>
<a id="pl.23.9"></a><var>23.9</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.19.0"></a><a id="pl.23.10"></a><var>23.10</var>    Sec. 19. Minnesota Statutes 2011 Supplement, section 290.091, subdivision 2, is <br/>
<a id="pl.23.11"></a><var>23.11</var>amended to read:<br/>
<a id="pl.23.12"></a><var>23.12</var>    Subd. 2. <b>Definitions.</b> For purposes of the tax imposed by this section, the following <br/>
<a id="pl.23.13"></a><var>23.13</var>terms have the meanings given:<br/>
<a id="pl.23.14"></a><var>23.14</var>    (a) "Alternative minimum taxable income" means the sum of the following for <br/>
<a id="pl.23.15"></a><var>23.15</var>the taxable year:<br/>
<a id="pl.23.16"></a><var>23.16</var>    (1) the taxpayer's federal alternative minimum taxable income as defined in section <br/>
<a id="pl.23.17"></a><var>23.17</var>55(b)(2) of the Internal Revenue Code;<br/>
<a id="pl.23.18"></a><var>23.18</var>    (2) the taxpayer's itemized deductions allowed in computing federal alternative <br/>
<a id="pl.23.19"></a><var>23.19</var>minimum taxable income, but excluding:<br/>
<a id="pl.23.20"></a><var>23.20</var>    (i) the charitable contribution deduction under section 170 of the Internal Revenue <br/>
<a id="pl.23.21"></a><var>23.21</var>Code;<br/>
<a id="pl.23.22"></a><var>23.22</var>    (ii) the medical expense deduction;<br/>
<a id="pl.23.23"></a><var>23.23</var>    (iii) the casualty, theft, and disaster loss deduction; and<br/>
<a id="pl.23.24"></a><var>23.24</var>    (iv) the impairment-related work expenses of a disabled person;<br/>
<a id="pl.23.25"></a><var>23.25</var>    (3) for depletion allowances computed under section 613A(c) of the Internal <br/>
<a id="pl.23.26"></a><var>23.26</var>Revenue Code, with respect to each property (as defined in section 614 of the Internal <br/>
<a id="pl.23.27"></a><var>23.27</var>Revenue Code), to the extent not included in federal alternative minimum taxable income, <br/>
<a id="pl.23.28"></a><var>23.28</var>the excess of the deduction for depletion allowable under section 611 of the Internal <br/>
<a id="pl.23.29"></a><var>23.29</var>Revenue Code for the taxable year over the adjusted basis of the property at the end of the <br/>
<a id="pl.23.30"></a><var>23.30</var>taxable year (determined without regard to the depletion deduction for the taxable year);<br/>
<a id="pl.23.31"></a><var>23.31</var>    (4) to the extent not included in federal alternative minimum taxable income, the <br/>
<a id="pl.23.32"></a><var>23.32</var>amount of the tax preference for intangible drilling cost under section 57(a)(2) of the <br/>
<a id="pl.23.33"></a><var>23.33</var>Internal Revenue Code determined without regard to subparagraph (E);<br/>
<a id="pl.23.34"></a><var>23.34</var>    (5) to the extent not included in federal alternative minimum taxable income, the <br/>
<a id="pl.23.35"></a><var>23.35</var>amount of interest income as provided by section 
         <statute_ref>290.01, subdivision 19a</statute_ref>, clause (1); and<br/>
<a id="pl.24.1"></a><var>24.1</var>    (6) the amount of addition required by section 
         <statute_ref>290.01, subdivision 19a</statute_ref>, clauses (7) <br/>
<a id="pl.24.2"></a><var>24.2</var>to (9), (12), (13), and (16) to (18);<br/>
<a id="pl.24.3"></a><var>24.3</var>    less the sum of the amounts determined under the following:<br/>
<a id="pl.24.4"></a><var>24.4</var>    (1) interest income as defined in section 
         <statute_ref>290.01, subdivision 19b</statute_ref>, clause (1);<br/>
<a id="pl.24.5"></a><var>24.5</var>    (2) an overpayment of state income tax as provided by section 
         <statute_ref>290.01, subdivision <br/>
<a id="pl.24.6"></a><var>24.6</var>19b
         </statute_ref>, clause (2), to the extent included in federal alternative minimum taxable income;<br/>
<a id="pl.24.7"></a><var>24.7</var>    (3) the amount of investment interest paid or accrued within the taxable year on <br/>
<a id="pl.24.8"></a><var>24.8</var>indebtedness to the extent that the amount does not exceed net investment income, as <br/>
<a id="pl.24.9"></a><var>24.9</var>defined in section 163(d)(4) of the Internal Revenue Code. Interest does not include <br/>
<a id="pl.24.10"></a><var>24.10</var>amounts deducted in computing federal adjusted gross income;<br/>
<a id="pl.24.11"></a><var>24.11</var>    (4) amounts subtracted from federal taxable income as provided by section 
         <statute_ref>290.01, <br/>
<a id="pl.24.12"></a><var>24.12</var>subdivision 19b
         </statute_ref>, clauses (6), (8) to (15), and (17), and (19); and<br/>
<a id="pl.24.13"></a><var>24.13</var>(5) the amount of the net operating loss allowed under section 
         <statute_ref>290.095, subdivision <br/>
</statute_ref><a id="pl.24.14"></a><var>24.14</var>11, paragraph (c).<br/>
<a id="pl.24.15"></a><var>24.15</var>    In the case of an estate or trust, alternative minimum taxable income must be <br/>
<a id="pl.24.16"></a><var>24.16</var>computed as provided in section 59(c) of the Internal Revenue Code.<br/>
<a id="pl.24.17"></a><var>24.17</var>    (b) "Investment interest" means investment interest as defined in section 163(d)(3) <br/>
<a id="pl.24.18"></a><var>24.18</var>of the Internal Revenue Code.<br/>
<a id="pl.24.19"></a><var>24.19</var>    (c) "Net minimum tax" means the minimum tax imposed by this section.<br/>
<a id="pl.24.20"></a><var>24.20</var>    (d) "Regular tax" means the tax that would be imposed under this chapter (without <br/>
<a id="pl.24.21"></a><var>24.21</var>regard to this section and section 290.032), reduced by the sum of the nonrefundable <br/>
<a id="pl.24.22"></a><var>24.22</var>credits allowed under this chapter.<br/>
<a id="pl.24.23"></a><var>24.23</var>    (e) "Tentative minimum tax" equals 6.4 percent of alternative minimum taxable <br/>
<a id="pl.24.24"></a><var>24.24</var>income after subtracting the exemption amount determined under subdivision 3.<br/>
<a id="pl.24.25"></a><var>24.25</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.24.26"></a><var>24.26</var>December 31, 2012.<br/>
<br/>
<a id="bill.1.20.0"></a><a id="pl.24.27"></a><var>24.27</var>    Sec. 20. Minnesota Statutes 2011 Supplement, section 290A.03, subdivision 15, <br/>
<a id="pl.24.28"></a><var>24.28</var>is amended to read:<br/>
<a id="pl.24.29"></a><var>24.29</var>    Subd. 15. <b>Internal Revenue Code.</b>  "Internal Revenue Code" means the Internal <br/>
<a id="pl.24.30"></a><var>24.30</var>Revenue Code of 1986, as amended through April 14, 2011 February 14, 2012.<br/>
<a id="pl.24.31"></a><var>24.31</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.21.0"></a><a id="pl.24.32"></a><var>24.32</var>    Sec. 21. Minnesota Statutes 2011 Supplement, section 291.005, subdivision 1, is <br/>
<a id="pl.24.33"></a><var>24.33</var>amended to read:<br/>
<a id="pl.25.1"></a><var>25.1</var>    Subdivision 1. <b>Scope.</b> Unless the context otherwise clearly requires, the following <br/>
<a id="pl.25.2"></a><var>25.2</var>terms used in this chapter shall have the following meanings:<br/>
<a id="pl.25.3"></a><var>25.3</var>    (1) "Commissioner" means the commissioner of revenue or any person to whom the <br/>
<a id="pl.25.4"></a><var>25.4</var>commissioner has delegated functions under this chapter.<br/>
<a id="pl.25.5"></a><var>25.5</var>    (2) "Federal gross estate" means the gross estate of a decedent as required to be <br/>
<a id="pl.25.6"></a><var>25.6</var>valued and otherwise determined for federal estate tax purposes under the Internal <br/>
<a id="pl.25.7"></a><var>25.7</var>Revenue Code.<br/>
<a id="pl.25.8"></a><var>25.8</var>    (3) "Internal Revenue Code" means the United States Internal Revenue Code of <br/>
<a id="pl.25.9"></a><var>25.9</var>1986, as amended through April 14, 2011 February 14, 2012, but without regard to the <br/>
<a id="pl.25.10"></a><var>25.10</var>provisions of sections 501 and 901 of Public Law 107-16, as amended by Public Law <br/>
<a id="pl.25.11"></a><var>25.11</var>111-312, and section 301(c) of Public Law 111-312.<br/>
<a id="pl.25.12"></a><var>25.12</var>    (4) "Minnesota adjusted taxable estate" means federal adjusted taxable estate as <br/>
<a id="pl.25.13"></a><var>25.13</var>defined by section 2011(b)(3) of the Internal Revenue Code, plus<br/>
<a id="pl.25.14"></a><var>25.14</var>(i) the amount of deduction for state death taxes allowed under section 2058 of <br/>
<a id="pl.25.15"></a><var>25.15</var>the Internal Revenue Code; less<br/>
<a id="pl.25.16"></a><var>25.16</var>(ii)(A) the value of qualified small business property under section 
         <statute_ref>291.03, <br/>
<a id="pl.25.17"></a><var>25.17</var>subdivision 9
         </statute_ref>, and the value of qualified farm property under section 
         <statute_ref>291.03, subdivision <br/>
<a id="pl.25.18"></a><var>25.18</var>10
         </statute_ref>, or (B) $4,000,000, whichever is less.<br/>
<a id="pl.25.19"></a><var>25.19</var>    (5) "Minnesota gross estate" means the federal gross estate of a decedent after (a) <br/>
<a id="pl.25.20"></a><var>25.20</var>excluding therefrom any property included therein which has its situs outside Minnesota, <br/>
<a id="pl.25.21"></a><var>25.21</var>and (b) including therein any property omitted from the federal gross estate which is <br/>
<a id="pl.25.22"></a><var>25.22</var>includable therein, has its situs in Minnesota, and was not disclosed to federal taxing <br/>
<a id="pl.25.23"></a><var>25.23</var>authorities.<br/>
<a id="pl.25.24"></a><var>25.24</var>    (6) "Nonresident decedent" means an individual whose domicile at the time of <br/>
<a id="pl.25.25"></a><var>25.25</var>death was not in Minnesota.<br/>
<a id="pl.25.26"></a><var>25.26</var>    (7) "Personal representative" means the executor, administrator or other person <br/>
<a id="pl.25.27"></a><var>25.27</var>appointed by the court to administer and dispose of the property of the decedent. If there <br/>
<a id="pl.25.28"></a><var>25.28</var>is no executor, administrator or other person appointed, qualified, and acting within this <br/>
<a id="pl.25.29"></a><var>25.29</var>state, then any person in actual or constructive possession of any property having a situs in <br/>
<a id="pl.25.30"></a><var>25.30</var>this state which is included in the federal gross estate of the decedent shall be deemed <br/>
<a id="pl.25.31"></a><var>25.31</var>to be a personal representative to the extent of the property and the Minnesota estate tax <br/>
<a id="pl.25.32"></a><var>25.32</var>due with respect to the property.<br/>
<a id="pl.25.33"></a><var>25.33</var>    (8) "Resident decedent" means an individual whose domicile at the time of death <br/>
<a id="pl.25.34"></a><var>25.34</var>was in Minnesota.<br/>
<a id="pl.25.35"></a><var>25.35</var>    (9) "Situs of property" means, with respect to real property, the state or country in <br/>
<a id="pl.25.36"></a><var>25.36</var>which it is located; with respect to tangible personal property, the state or country in which <br/>
<a id="pl.26.1"></a><var>26.1</var>it was normally kept or located at the time of the decedent's death; and with respect to <br/>
<a id="pl.26.2"></a><var>26.2</var>intangible personal property, the state or country in which the decedent was domiciled <br/>
<a id="pl.26.3"></a><var>26.3</var>at death.<br/>
<a id="pl.26.4"></a><var>26.4</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.22.0"></a><a id="pl.26.5"></a><var>26.5</var>    Sec. 22. Minnesota Statutes 2010, section 297G.04, subdivision 2, is amended to read:<br/>
<a id="pl.26.6"></a><var>26.6</var>    Subd. 2. <b>Tax credit.</b> A qualified brewer producing fermented malt beverages <br/>
<a id="pl.26.7"></a><var>26.7</var>is entitled to a tax credit of $4.60 per barrel on 25,000 barrels sold in any fiscal year <br/>
<a id="pl.26.8"></a><var>26.8</var>beginning July 1, regardless of the alcohol content of the product. Qualified brewers may <br/>
<a id="pl.26.9"></a><var>26.9</var>take the credit on the 18th day of each month, but the total credit allowed may not exceed <br/>
<a id="pl.26.10"></a><var>26.10</var>in any fiscal year the lesser of:<br/>
<a id="pl.26.11"></a><var>26.11</var>(1) the liability for tax; or<br/>
<a id="pl.26.12"></a><var>26.12</var>(2) $115,000.<br/>
<a id="pl.26.13"></a><var>26.13</var>For purposes of this subdivision, a "qualified brewer" means a brewer, whether or <br/>
<a id="pl.26.14"></a><var>26.14</var>not located in this state, manufacturing less than 100,000 250,000 barrels of fermented <br/>
<a id="pl.26.15"></a><var>26.15</var>malt beverages in the calendar year immediately preceding the calendar year for which <br/>
<a id="pl.26.16"></a><var>26.16</var>the credit under this subdivision is claimed. In determining the number of barrels, all <br/>
<a id="pl.26.17"></a><var>26.17</var>brands or labels of a brewer must be combined. All facilities for the manufacture of <br/>
<a id="pl.26.18"></a><var>26.18</var>fermented malt beverages owned or controlled by the same person, corporation, or other <br/>
<a id="pl.26.19"></a><var>26.19</var>entity must be treated as a single brewer.<br/>
<a id="pl.26.20"></a><var>26.20</var><b>EFFECTIVE DATE.</b>This section is effective for determinations based on calendar <br/>
<a id="pl.26.21"></a><var>26.21</var>year 2011 production and thereafter.<br/>
<br/>
<a id="bill.1.23.0"></a><a id="pl.26.22"></a><var>26.22</var>    Sec. 23. <b> REPEALER.</b><br/>
<a id="pl.26.23"></a><var>26.23</var>(a) Minnesota Statutes 2010, section 290.0677, subdivision 1a, is repealed.<br/>
<a id="pl.26.24"></a><var>26.24</var>(b) Minnesota Statutes 2010, section 290.92, subdivision 31, is repealed.<br/>
<a id="pl.26.25"></a><var>26.25</var><b>EFFECTIVE DATE.</b>Paragraph (a) is effective for taxable years beginning after <br/>
<a id="pl.26.26"></a><var>26.26</var>December 31, 2012. Paragraph (b) is effective for payments made after June 30, 2012.<br/>
<br/>
<a id="bill.2.0.0"></a>

<a id="bill.2.1.0"></a><a id="pl.26.29"></a><var>26.29</var>    Section 1. Minnesota Statutes 2010, section 289A.20, subdivision 4, is amended to <br/>
<a id="pl.26.30"></a><var>26.30</var>read:<br/>
<a id="pl.27.1"></a><var>27.1</var>    Subd. 4. <b>Sales and use tax.</b> (a) The taxes imposed by chapter 297A are due and <br/>
<a id="pl.27.2"></a><var>27.2</var>payable to the commissioner monthly on or before the 20th day of the month following <br/>
<a id="pl.27.3"></a><var>27.3</var>the month in which the taxable event occurred, or following another reporting period <br/>
<a id="pl.27.4"></a><var>27.4</var>as the commissioner prescribes or as allowed under section 
         <statute_ref>289A.18, subdivision 4</statute_ref>, <br/>
<a id="pl.27.5"></a><var>27.5</var>paragraph (f) or (g), except that:<br/>
<a id="pl.27.6"></a><var>27.6</var>(1) use taxes due on an annual use tax return as provided under section 
         <statute_ref>289A.11, <br/>
<a id="pl.27.7"></a><var>27.7</var>subdivision 1
         </statute_ref>, are payable by April 15 following the close of the calendar year; and.<br/>
<a id="pl.27.8"></a><var>27.8</var>(2) except as provided in paragraph (f), for a vendor having a liability of $120,000 <br/>
<a id="pl.27.9"></a><var>27.9</var>or more during a fiscal year ending June 30, 2009, and fiscal years thereafter, the taxes <br/>
<a id="pl.27.10"></a><var>27.10</var>imposed by chapter 297A, except as provided in paragraph (b), are due and payable to the <br/>
<a id="pl.27.11"></a><var>27.11</var>commissioner monthly in the following manner:<br/>
<a id="pl.27.12"></a><var>27.12</var>(i) On or before the 14th day of the month following the month in which the taxable <br/>
<a id="pl.27.13"></a><var>27.13</var>event occurred, the vendor must remit to the commissioner 90 percent of the estimated <br/>
<a id="pl.27.14"></a><var>27.14</var>liability for the month in which the taxable event occurred.<br/>
<a id="pl.27.15"></a><var>27.15</var>(ii) On or before the 20th day of the month in which the taxable event occurs, the <br/>
<a id="pl.27.16"></a><var>27.16</var>vendor must remit to the commissioner a prepayment for the month in which the taxable <br/>
<a id="pl.27.17"></a><var>27.17</var>event occurs equal to 67 percent of the liability for the previous month.<br/>
<a id="pl.27.18"></a><var>27.18</var>(iii) On or before the 20th day of the month following the month in which the taxable <br/>
<a id="pl.27.19"></a><var>27.19</var>event occurred, the vendor must pay any additional amount of tax not previously remitted <br/>
<a id="pl.27.20"></a><var>27.20</var>under either item (i) or (ii ) or, if the payment made under item (i) or (ii) was greater than <br/>
<a id="pl.27.21"></a><var>27.21</var>the vendor's liability for the month in which the taxable event occurred, the vendor may <br/>
<a id="pl.27.22"></a><var>27.22</var>take a credit against the next month's liability in a manner prescribed by the commissioner.<br/>
<a id="pl.27.23"></a><var>27.23</var>(iv) Once the vendor first pays under either item (i) or (ii), the vendor is required to <br/>
<a id="pl.27.24"></a><var>27.24</var>continue to make payments in the same manner, as long as the vendor continues having a <br/>
<a id="pl.27.25"></a><var>27.25</var>liability of $120,000 or more during the most recent fiscal year ending June 30.<br/>
<a id="pl.27.26"></a><var>27.26</var>(v) Notwithstanding items (i), (ii), and (iv), if a vendor fails to make the required <br/>
<a id="pl.27.27"></a><var>27.27</var>payment in the first month that the vendor is required to make a payment under either item <br/>
<a id="pl.27.28"></a><var>27.28</var>(i) or (ii), then the vendor is deemed to have elected to pay under item (ii) and must make <br/>
<a id="pl.27.29"></a><var>27.29</var>subsequent monthly payments in the manner provided in item (ii).<br/>
<a id="pl.27.30"></a><var>27.30</var>(vi) For vendors making an accelerated payment under item (ii), for the first month <br/>
<a id="pl.27.31"></a><var>27.31</var>that the vendor is required to make the accelerated payment, on the 20th of that month, the <br/>
<a id="pl.27.32"></a><var>27.32</var>vendor will pay 100 percent of the liability for the previous month and a prepayment for <br/>
<a id="pl.27.33"></a><var>27.33</var>the first month equal to 67 percent of the liability for the previous month.<br/>
<a id="pl.27.34"></a><var>27.34</var>    (b) Notwithstanding paragraph (a), A vendor having a liability of $120,000 or more <br/>
<a id="pl.27.35"></a><var>27.35</var>during a fiscal year ending June 30 must remit the June liability for the next year in the <br/>
<a id="pl.27.36"></a><var>27.36</var>following manner:<br/>
<a id="pl.28.1"></a><var>28.1</var>    (1) Two business days before June 30 of the year, the vendor must remit 90 percent <br/>
<a id="pl.28.2"></a><var>28.2</var>of the estimated June liability to the commissioner.<br/>
<a id="pl.28.3"></a><var>28.3</var>    (2) On or before August 20 of the year, the vendor must pay any additional amount <br/>
<a id="pl.28.4"></a><var>28.4</var>of tax not remitted in June.<br/>
<a id="pl.28.5"></a><var>28.5</var>    (c) A vendor having a liability of:<br/>
<a id="pl.28.6"></a><var>28.6</var>    (1) $10,000 or more, but less than $120,000 during a fiscal year ending June 30, <br/>
<a id="pl.28.7"></a><var>28.7</var>2009, and fiscal years thereafter, must remit by electronic means all liabilities on returns <br/>
<a id="pl.28.8"></a><var>28.8</var>due for periods beginning in the subsequent calendar year on or before the 20th day of <br/>
<a id="pl.28.9"></a><var>28.9</var>the month following the month in which the taxable event occurred, or on or before the <br/>
<a id="pl.28.10"></a><var>28.10</var>20th day of the month following the month in which the sale is reported under section <br/>
<statute_ref><a id="pl.28.11"></a><var>28.11</var>289A.18, subdivision 4
         </statute_ref>; or<br/>
<a id="pl.28.12"></a><var>28.12</var>(2) $120,000 or more, during a fiscal year ending June 30, 2009, and fiscal years <br/>
<a id="pl.28.13"></a><var>28.13</var>thereafter, must remit by electronic means all liabilities in the manner provided in <br/>
<a id="pl.28.14"></a><var>28.14</var>paragraph (a), clause (2), on returns due for periods beginning in the subsequent calendar <br/>
<a id="pl.28.15"></a><var>28.15</var>year, except for 90 percent of the estimated June liability, which is due two business days <br/>
<a id="pl.28.16"></a><var>28.16</var>before June 30. The remaining amount of the June liability is due on August 20.<br/>
<a id="pl.28.17"></a><var>28.17</var>(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's <br/>
<a id="pl.28.18"></a><var>28.18</var>religious beliefs from paying electronically shall be allowed to remit the payment by mail. <br/>
<a id="pl.28.19"></a><var>28.19</var>The filer must notify the commissioner of revenue of the intent to pay by mail before <br/>
<a id="pl.28.20"></a><var>28.20</var>doing so on a form prescribed by the commissioner. No extra fee may be charged to a <br/>
<a id="pl.28.21"></a><var>28.21</var>person making payment by mail under this paragraph. The payment must be postmarked <br/>
<a id="pl.28.22"></a><var>28.22</var>at least two business days before the due date for making the payment in order to be <br/>
<a id="pl.28.23"></a><var>28.23</var>considered paid on a timely basis.<br/>
<a id="pl.28.24"></a><var>28.24</var>(e) Whenever the liability is $120,000 or more separately for: (1) the tax imposed <br/>
<a id="pl.28.25"></a><var>28.25</var>under chapter 297A; (2) a fee that is to be reported on the same return as and paid with the <br/>
<a id="pl.28.26"></a><var>28.26</var>chapter 297A taxes; or (3) any other tax that is to be reported on the same return as and <br/>
<a id="pl.28.27"></a><var>28.27</var>paid with the chapter 297A taxes, then the payment of all the liabilities on the return must <br/>
<a id="pl.28.28"></a><var>28.28</var>be accelerated as provided in this subdivision.<br/>
<a id="pl.28.29"></a><var>28.29</var>(f) At the start of the first calendar quarter at least 90 days after the cash flow <br/>
<a id="pl.28.30"></a><var>28.30</var>account established in section 
<statute_ref>16A.152, subdivision 1</statute_ref>, and the budget reserve account <br/>
<a id="pl.28.31"></a><var>28.31</var>established in section 
<statute_ref>16A.152, subdivision 1a</statute_ref>, reach the amounts listed in section <br/>
<a id="pl.28.32"></a><var>28.32</var><statute_ref>16A.152, subdivision 2</statute_ref>, paragraph (a), the remittance of the accelerated payments required <br/>
<a id="pl.28.33"></a><var>28.33</var>under paragraph (a), clause (2), must be suspended. The commissioner of management <br/>
<a id="pl.28.34"></a><var>28.34</var>and budget shall notify the commissioner of revenue when the accounts have reached <br/>
<a id="pl.28.35"></a><var>28.35</var>the required amounts. Beginning with the suspension of paragraph (a), clause (2), for a <br/>
<a id="pl.28.36"></a><var>28.36</var>vendor with a liability of $120,000 or more during a fiscal year ending June 30, 2009, <br/>
<a id="pl.29.1"></a><var>29.1</var>and fiscal years thereafter, the taxes imposed by chapter 297A are due and payable to the <br/>
<a id="pl.29.2"></a><var>29.2</var>commissioner on the 20th day of the month following the month in which the taxable <br/>
<a id="pl.29.3"></a><var>29.3</var>event occurred. Payments of tax liabilities for taxable events occurring in June under <br/>
<a id="pl.29.4"></a><var>29.4</var>paragraph (b) are not changed.<br/>
<a id="pl.29.5"></a><var>29.5</var><b>EFFECTIVE DATE.</b>This section is effective for taxes due and payable after <br/>
<a id="pl.29.6"></a><var>29.6</var>June 30, 2012.<br/>
<br/>
<a id="bill.2.2.0"></a><a id="pl.29.7"></a><var>29.7</var>    Sec. 2. Minnesota Statutes 2011 Supplement, section 295.53, subdivision 1, is <br/>
<a id="pl.29.8"></a><var>29.8</var>amended to read:<br/>
<a id="pl.29.9"></a><var>29.9</var>    Subdivision 1. <b>Exemptions.</b> (a) The following payments are excluded from the <br/>
<a id="pl.29.10"></a><var>29.10</var>gross revenues subject to the hospital, surgical center, or health care provider taxes under <br/>
<a id="pl.29.11"></a><var>29.11</var>sections 
         <statute_ref>295.50</statute_ref> to 
         <statute_ref>295.59</statute_ref>:<br/>
<a id="pl.29.12"></a><var>29.12</var>(1) payments received for services provided under the Medicare program, including <br/>
<a id="pl.29.13"></a><var>29.13</var>payments received from the government, and organizations governed by sections 1833 <br/>
<a id="pl.29.14"></a><var>29.14</var>and 1876 of title XVIII of the federal Social Security Act, United States Code, title 42, <br/>
<a id="pl.29.15"></a><var>29.15</var>section 1395, and enrollee deductibles, coinsurance, and co-payments, whether paid by the <br/>
<a id="pl.29.16"></a><var>29.16</var>Medicare enrollee or by a Medicare supplemental coverage as defined in section 
         <statute_ref>62A.011, <br/>
<a id="pl.29.17"></a><var>29.17</var>subdivision 3
         </statute_ref>, clause (10), or by Medicaid payments under title XIX of the federal Social <br/>
<a id="pl.29.18"></a><var>29.18</var>Security Act. Payments for services not covered by Medicare are taxable;<br/>
<a id="pl.29.19"></a><var>29.19</var>(2) payments received for home health care services;<br/>
<a id="pl.29.20"></a><var>29.20</var>(3) payments received from hospitals or surgical centers for goods and services on <br/>
<a id="pl.29.21"></a><var>29.21</var>which liability for tax is imposed under section 
         <statute_ref>295.52</statute_ref> or the source of funds for the <br/>
<a id="pl.29.22"></a><var>29.22</var>payment is exempt under clause (1), (7), (10), or (14);<br/>
<a id="pl.29.23"></a><var>29.23</var>(4) payments received from health care providers for goods and services on which <br/>
<a id="pl.29.24"></a><var>29.24</var>liability for tax is imposed under this chapter or the source of funds for the payment is <br/>
<a id="pl.29.25"></a><var>29.25</var>exempt under clause (1), (7), (10), or (14);<br/>
<a id="pl.29.26"></a><var>29.26</var>(5) amounts paid for legend drugs, other than nutritional products and blood and <br/>
<a id="pl.29.27"></a><var>29.27</var>blood components, to a wholesale drug distributor who is subject to tax under section <br/>
<statute_ref><a id="pl.29.28"></a><var>29.28</var>295.52, subdivision 3
         </statute_ref>, reduced by reimbursements received for legend drugs otherwise <br/>
<a id="pl.29.29"></a><var>29.29</var>exempt under this chapter;<br/>
<a id="pl.29.30"></a><var>29.30</var>(6) payments received by a health care provider or the wholly owned subsidiary of a <br/>
<a id="pl.29.31"></a><var>29.31</var>health care provider for care provided outside Minnesota;<br/>
<a id="pl.29.32"></a><var>29.32</var>(7) payments received from the chemical dependency fund under chapter 254B;<br/>
<a id="pl.29.33"></a><var>29.33</var>(8) payments received in the nature of charitable donations that are not designated <br/>
<a id="pl.29.34"></a><var>29.34</var>for providing patient services to a specific individual or group;<br/>
<a id="pl.30.1"></a><var>30.1</var>(9) payments received for providing patient services incurred through a formal <br/>
<a id="pl.30.2"></a><var>30.2</var>program of health care research conducted in conformity with federal regulations <br/>
<a id="pl.30.3"></a><var>30.3</var>governing research on human subjects. Payments received from patients or from other <br/>
<a id="pl.30.4"></a><var>30.4</var>persons paying on behalf of the patients are subject to tax;<br/>
<a id="pl.30.5"></a><var>30.5</var>(10) payments received from any governmental agency for services benefiting the <br/>
<a id="pl.30.6"></a><var>30.6</var>public, not including payments made by the government in its capacity as an employer <br/>
<a id="pl.30.7"></a><var>30.7</var>or insurer or payments made by the government for services provided under general <br/>
<a id="pl.30.8"></a><var>30.8</var>assistance medical care, the MinnesotaCare program, or the medical assistance program <br/>
<a id="pl.30.9"></a><var>30.9</var>governed by title XIX of the federal Social Security Act, United States Code, title 42, <br/>
<a id="pl.30.10"></a><var>30.10</var>sections 1396 to 1396v;<br/>
<a id="pl.30.11"></a><var>30.11</var>(11) government payments received by the commissioner of human services for <br/>
<a id="pl.30.12"></a><var>30.12</var>state-operated services;<br/>
<a id="pl.30.13"></a><var>30.13</var>(12) payments received by a health care provider for hearing aids and related <br/>
<a id="pl.30.14"></a><var>30.14</var>equipment or prescription eyewear delivered outside of Minnesota;<br/>
<a id="pl.30.15"></a><var>30.15</var>(13) payments received by an educational institution from student tuition, student <br/>
<a id="pl.30.16"></a><var>30.16</var>activity fees, health care service fees, government appropriations, donations, or grants, <br/>
<a id="pl.30.17"></a><var>30.17</var>and for services identified in and provided under an individualized education program <br/>
<a id="pl.30.18"></a><var>30.18</var>as defined in section 
         <statute_ref>256B.0625</statute_ref> or Code of Federal Regulations, chapter 34, section <br/>
<a id="pl.30.19"></a><var>30.19</var>300.340(a). Fee for service payments and payments for extended coverage are taxable;<br/>
<a id="pl.30.20"></a><var>30.20</var>(14) payments received under the federal Employees Health Benefits Act, United <br/>
<a id="pl.30.21"></a><var>30.21</var>States Code, title 5, section 8909(f), as amended by the Omnibus Reconciliation Act of <br/>
<a id="pl.30.22"></a><var>30.22</var>1990. Enrollee deductibles, coinsurance, and co-payments are subject to tax; and<br/>
<a id="pl.30.23"></a><var>30.23</var>(15) payments received under the federal Tricare program, Code of Federal <br/>
<a id="pl.30.24"></a><var>30.24</var>Regulations, title 32, section 199.17(a)(7). Enrollee deductibles, coinsurance, and <br/>
<a id="pl.30.25"></a><var>30.25</var>co-payments are subject to tax.; and<br/>
<a id="pl.30.26"></a><var>30.26</var>(16) payments for laboratory services to examine and report results for a biological <br/>
<a id="pl.30.27"></a><var>30.27</var>specimen that is collected outside the state. The entity claiming the exemption is required <br/>
<a id="pl.30.28"></a><var>30.28</var>to keep adequate records demonstrating that the specimen was collected outside the state, <br/>
<a id="pl.30.29"></a><var>30.29</var>so that the commissioner can ensure that the correct amount of tax is paid.<br/>
<a id="pl.30.30"></a><var>30.30</var>(b) Payments received by wholesale drug distributors for legend drugs sold directly <br/>
<a id="pl.30.31"></a><var>30.31</var>to veterinarians or veterinary bulk purchasing organizations are excluded from the gross <br/>
<a id="pl.30.32"></a><var>30.32</var>revenues subject to the wholesale drug distributor tax under sections 
         <statute_ref>295.50</statute_ref> to 
         <statute_ref>295.59</statute_ref>.<br/>
<a id="pl.30.33"></a><var>30.33</var><b>EFFECTIVE DATE.</b>This section is effective for gross revenues received from <br/>
<a id="pl.30.34"></a><var>30.34</var>laboratory services provided on or after July 1, 2013.<br/>
<br/>
<a id="bill.2.3.0"></a><a id="pl.30.35"></a><var>30.35</var>    Sec. 3. Minnesota Statutes 2010, section 297A.61, subdivision 4, is amended to read:<br/>
<a id="pl.31.1"></a><var>31.1</var>    Subd. 4. <b>Retail sale.</b> (a) A "retail sale" means any sale, lease, or rental for any <br/>
<a id="pl.31.2"></a><var>31.2</var>purpose, other than resale, sublease, or subrent of items by the purchaser in the normal <br/>
<a id="pl.31.3"></a><var>31.3</var>course of business as defined in subdivision 21.<br/>
<a id="pl.31.4"></a><var>31.4</var>    (b) A sale of property used by the owner only by leasing it to others or by holding it <br/>
<a id="pl.31.5"></a><var>31.5</var>in an effort to lease it, and put to no use by the owner other than resale after the lease or <br/>
<a id="pl.31.6"></a><var>31.6</var>effort to lease, is a sale of property for resale.<br/>
<a id="pl.31.7"></a><var>31.7</var>    (c) A sale of master computer software that is purchased and used to make copies for <br/>
<a id="pl.31.8"></a><var>31.8</var>sale or lease is a sale of property for resale.<br/>
<a id="pl.31.9"></a><var>31.9</var>    (d) A sale of building materials, supplies, and equipment to owners, contractors, <br/>
<a id="pl.31.10"></a><var>31.10</var>subcontractors, or builders for the erection of buildings or the alteration, repair, or <br/>
<a id="pl.31.11"></a><var>31.11</var>improvement of real property is a retail sale in whatever quantity sold, whether the sale is <br/>
<a id="pl.31.12"></a><var>31.12</var>for purposes of resale in the form of real property or otherwise.<br/>
<a id="pl.31.13"></a><var>31.13</var>    (e) A sale of carpeting, linoleum, or similar floor covering to a person who provides <br/>
<a id="pl.31.14"></a><var>31.14</var>for installation of the floor covering is a retail sale and not a sale for resale since a sale <br/>
<a id="pl.31.15"></a><var>31.15</var>of floor covering which includes installation is a contract for the improvement of real <br/>
<a id="pl.31.16"></a><var>31.16</var>property.<br/>
<a id="pl.31.17"></a><var>31.17</var>    (f) A sale of shrubbery, plants, sod, trees, and similar items to a person who provides <br/>
<a id="pl.31.18"></a><var>31.18</var>for installation of the items is a retail sale and not a sale for resale since a sale of <br/>
<a id="pl.31.19"></a><var>31.19</var>shrubbery, plants, sod, trees, and similar items that includes installation is a contract for <br/>
<a id="pl.31.20"></a><var>31.20</var>the improvement of real property.<br/>
<a id="pl.31.21"></a><var>31.21</var>    (g) A sale of tangible personal property that is awarded as prizes is a retail sale and <br/>
<a id="pl.31.22"></a><var>31.22</var>is not considered a sale of property for resale.<br/>
<a id="pl.31.23"></a><var>31.23</var>    (h) A sale of tangible personal property utilized or employed in the furnishing or <br/>
<a id="pl.31.24"></a><var>31.24</var>providing of services under subdivision 3, paragraph (g), clause (1), including, but not <br/>
<a id="pl.31.25"></a><var>31.25</var>limited to, property given as promotional items, is a retail sale and is not considered a <br/>
<a id="pl.31.26"></a><var>31.26</var>sale of property for resale.<br/>
<a id="pl.31.27"></a><var>31.27</var>    (i) A sale of tangible personal property used in conducting lawful gambling under <br/>
<a id="pl.31.28"></a><var>31.28</var>chapter 349 or the State Lottery under chapter 349A, including, but not limited to, <br/>
<a id="pl.31.29"></a><var>31.29</var>property given as promotional items, is a retail sale and is not considered a sale of <br/>
<a id="pl.31.30"></a><var>31.30</var>property for resale.<br/>
<a id="pl.31.31"></a><var>31.31</var>    (j) A sale of machines, equipment, or devices that are used to furnish, provide, or <br/>
<a id="pl.31.32"></a><var>31.32</var>dispense goods or services, including, but not limited to, coin-operated devices, is a retail <br/>
<a id="pl.31.33"></a><var>31.33</var>sale and is not considered a sale of property for resale.<br/>
<a id="pl.31.34"></a><var>31.34</var>    (k) In the case of a lease, a retail sale occurs (1) when an obligation to make a lease <br/>
<a id="pl.31.35"></a><var>31.35</var>payment becomes due under the terms of the agreement or the trade practices of the lessor <br/>
<a id="pl.31.36"></a><var>31.36</var>or; (2) in the case of a lease of a motor vehicle, as defined in section 
         <statute_ref>297B.01, subdivision <br/>
<a id="pl.32.1"></a><var>32.1</var>11
         </statute_ref>, but excluding vehicles with a manufacturer's gross vehicle weight rating greater than <br/>
<a id="pl.32.2"></a><var>32.2</var>10,000 pounds and rentals of vehicles for not more than 28 days, at the time the lease is <br/>
<a id="pl.32.3"></a><var>32.3</var>executed; or (3) for rent-to-own or lease-to-own used vehicles where the lessee may <br/>
<a id="pl.32.4"></a><var>32.4</var>purchase or return the vehicle at any time without penalty, at the time each payment is <br/>
<a id="pl.32.5"></a><var>32.5</var>made under the terms of the agreement.<br/>
<a id="pl.32.6"></a><var>32.6</var>    (l) In the case of a conditional sales contract, a retail sale occurs upon the transfer of <br/>
<a id="pl.32.7"></a><var>32.7</var>title or possession of the tangible personal property.<br/>
<a id="pl.32.8"></a><var>32.8</var>    (m) A sale of a bundled transaction in which one or more of the products included <br/>
<a id="pl.32.9"></a><var>32.9</var>in the bundle is a taxable product is a retail sale, except that if one of the products <br/>
<a id="pl.32.10"></a><var>32.10</var>is a telecommunication service, ancillary service, Internet access, or audio or video <br/>
<a id="pl.32.11"></a><var>32.11</var>programming service, and the seller has maintained books and records identifying through <br/>
<a id="pl.32.12"></a><var>32.12</var>reasonable and verifiable standards the portions of the price that are attributable to the <br/>
<a id="pl.32.13"></a><var>32.13</var>distinct and separately identifiable products, then the products are not considered part of a <br/>
<a id="pl.32.14"></a><var>32.14</var>bundled transaction. For purposes of this paragraph:<br/>
<a id="pl.32.15"></a><var>32.15</var>    (1) the books and records maintained by the seller must be maintained in the regular <br/>
<a id="pl.32.16"></a><var>32.16</var>course of business, and do not include books and records created and maintained by the <br/>
<a id="pl.32.17"></a><var>32.17</var>seller primarily for tax purposes;<br/>
<a id="pl.32.18"></a><var>32.18</var>    (2) books and records maintained in the regular course of business include, but are <br/>
<a id="pl.32.19"></a><var>32.19</var>not limited to, financial statements, general ledgers, invoicing and billing systems and <br/>
<a id="pl.32.20"></a><var>32.20</var>reports, and reports for regulatory tariffs and other regulatory matters; and<br/>
<a id="pl.32.21"></a><var>32.21</var>    (3) books and records are maintained primarily for tax purposes when the books <br/>
<a id="pl.32.22"></a><var>32.22</var>and records identify taxable and nontaxable portions of the price, but the seller maintains <br/>
<a id="pl.32.23"></a><var>32.23</var>other books and records that identify different prices attributable to the distinct products <br/>
<a id="pl.32.24"></a><var>32.24</var>included in the same bundled transaction.<br/>
<a id="pl.32.25"></a><var>32.25</var><b>EFFECTIVE DATE.</b>This section is effective for leases entered into after June <br/>
<a id="pl.32.26"></a><var>32.26</var>30, 2012.<br/>
<br/>
<a id="bill.2.4.0"></a><a id="pl.32.27"></a><var>32.27</var>    Sec. 4. Minnesota Statutes 2010, section 297A.67, subdivision 7, is amended to read:<br/>
<a id="pl.32.28"></a><var>32.28</var>    Subd. 7. <b>Drugs; medical devices.</b> (a) Sales of the following drugs and medical <br/>
<a id="pl.32.29"></a><var>32.29</var>devices for human use are exempt:<br/>
<a id="pl.32.30"></a><var>32.30</var>    (1) drugs, including over-the-counter drugs;<br/>
<a id="pl.32.31"></a><var>32.31</var>    (2) single-use finger-pricking devices for the extraction of blood and other single-use <br/>
<a id="pl.32.32"></a><var>32.32</var>devices and single-use diagnostic agents used in diagnosing, monitoring, or treating <br/>
<a id="pl.32.33"></a><var>32.33</var>diabetes;<br/>
<a id="pl.32.34"></a><var>32.34</var>    (3) insulin and medical oxygen for human use, regardless of whether prescribed <br/>
<a id="pl.32.35"></a><var>32.35</var>or sold over the counter;<br/>
<a id="pl.33.1"></a><var>33.1</var>    (4) prosthetic devices;<br/>
<a id="pl.33.2"></a><var>33.2</var>    (5) durable medical equipment for home use only;<br/>
<a id="pl.33.3"></a><var>33.3</var>    (6) mobility enhancing equipment;<br/>
<a id="pl.33.4"></a><var>33.4</var>    (7) prescription corrective eyeglasses; and<br/>
<a id="pl.33.5"></a><var>33.5</var>    (8) kidney dialysis equipment, including repair and replacement parts.<br/>
<a id="pl.33.6"></a><var>33.6</var>(b) Items purchased in transactions covered by:<br/>
<a id="pl.33.7"></a><var>33.7</var>(1) Medicare as defined under title XVIII of the Social Security Act, United States <br/>
<a id="pl.33.8"></a><var>33.8</var>Code, title 42, sections 1395, et seq.; or<br/>
<a id="pl.33.9"></a><var>33.9</var>(2) Medicaid as defined under title XIX of the Social Security Act, United States <br/>
<a id="pl.33.10"></a><var>33.10</var>Code, title 42, sections 1396, et seq., are exempt.<br/>
<a id="pl.33.11"></a><var>33.11</var>    (b) (c) For purposes of this subdivision:<br/>
<a id="pl.33.12"></a><var>33.12</var>    (1) "Drug" means a compound, substance, or preparation, and any component of <br/>
<a id="pl.33.13"></a><var>33.13</var>a compound, substance, or preparation, other than food and food ingredients, dietary <br/>
<a id="pl.33.14"></a><var>33.14</var>supplements, or alcoholic beverages that is:<br/>
<a id="pl.33.15"></a><var>33.15</var>    (i) recognized in the official United States Pharmacopoeia, official Homeopathic <br/>
<a id="pl.33.16"></a><var>33.16</var>Pharmacopoeia of the United States, or official National Formulary, and supplement <br/>
<a id="pl.33.17"></a><var>33.17</var>to any of them;<br/>
<a id="pl.33.18"></a><var>33.18</var>    (ii) intended for use in the diagnosis, cure, mitigation, treatment, or prevention <br/>
<a id="pl.33.19"></a><var>33.19</var>of disease; or<br/>
<a id="pl.33.20"></a><var>33.20</var>    (iii) intended to affect the structure or any function of the body.<br/>
<a id="pl.33.21"></a><var>33.21</var>    (2) "Durable medical equipment" means equipment, including repair and <br/>
<a id="pl.33.22"></a><var>33.22</var>replacement parts, including single patient use items, but not including mobility enhancing <br/>
<a id="pl.33.23"></a><var>33.23</var>equipment, that:<br/>
<a id="pl.33.24"></a><var>33.24</var>    (i) can withstand repeated use;<br/>
<a id="pl.33.25"></a><var>33.25</var>    (ii) is primarily and customarily used to serve a medical purpose;<br/>
<a id="pl.33.26"></a><var>33.26</var>    (iii) generally is not useful to a person in the absence of illness or injury; and<br/>
<a id="pl.33.27"></a><var>33.27</var>    (iv) is not worn in or on the body.<br/>
<a id="pl.33.28"></a><var>33.28</var>    For purposes of this clause, "repair and replacement parts" includes all components <br/>
<a id="pl.33.29"></a><var>33.29</var>or attachments used in conjunction with the durable medical equipment, but does not <br/>
<a id="pl.33.30"></a><var>33.30</var>include including repair and replacement parts which are for single patient use only.<br/>
<a id="pl.33.31"></a><var>33.31</var>    (3) "Mobility enhancing equipment" means equipment, including repair and <br/>
<a id="pl.33.32"></a><var>33.32</var>replacement parts, but not including durable medical equipment, that:<br/>
<a id="pl.33.33"></a><var>33.33</var>    (i) is primarily and customarily used to provide or increase the ability to move from <br/>
<a id="pl.33.34"></a><var>33.34</var>one place to another and that is appropriate for use either in a home or a motor vehicle;<br/>
<a id="pl.33.35"></a><var>33.35</var>    (ii) is not generally used by persons with normal mobility; and<br/>
<a id="pl.34.1"></a><var>34.1</var>    (iii) does not include any motor vehicle or equipment on a motor vehicle normally <br/>
<a id="pl.34.2"></a><var>34.2</var>provided by a motor vehicle manufacturer.<br/>
<a id="pl.34.3"></a><var>34.3</var>    (4) "Over-the-counter drug" means a drug that contains a label that identifies the <br/>
<a id="pl.34.4"></a><var>34.4</var>product as a drug as required by Code of Federal Regulations, title 21, section 
         <statute_ref>201.66</statute_ref>. The <br/>
<a id="pl.34.5"></a><var>34.5</var>label must include a "drug facts" panel or a statement of the active ingredients with a list of <br/>
<a id="pl.34.6"></a><var>34.6</var>those ingredients contained in the compound, substance, or preparation. Over-the-counter <br/>
<a id="pl.34.7"></a><var>34.7</var>drugs do not include grooming and hygiene products, regardless of whether they otherwise <br/>
<a id="pl.34.8"></a><var>34.8</var>meet the definition. "Grooming and hygiene products" are soaps, cleaning solutions, <br/>
<a id="pl.34.9"></a><var>34.9</var>shampoo, toothpaste, mouthwash, antiperspirants, and suntan lotions and sunscreens.<br/>
<a id="pl.34.10"></a><var>34.10</var>    (5) "Prescribed" and "prescription" means a direction in the form of an order, <br/>
<a id="pl.34.11"></a><var>34.11</var>formula, or recipe issued in any form of oral, written, electronic, or other means of <br/>
<a id="pl.34.12"></a><var>34.12</var>transmission by a duly licensed health care professional.<br/>
<a id="pl.34.13"></a><var>34.13</var>    (6) "Prosthetic device" means a replacement, corrective, or supportive device, <br/>
<a id="pl.34.14"></a><var>34.14</var>including repair and replacement parts, worn on or in the body to:<br/>
<a id="pl.34.15"></a><var>34.15</var>    (i) artificially replace a missing portion of the body;<br/>
<a id="pl.34.16"></a><var>34.16</var>    (ii) prevent or correct physical deformity or malfunction; or<br/>
<a id="pl.34.17"></a><var>34.17</var>    (iii) support a weak or deformed portion of the body.<br/>
<a id="pl.34.18"></a><var>34.18</var>Prosthetic device does not include corrective eyeglasses.<br/>
<a id="pl.34.19"></a><var>34.19</var>    (7) "Kidney dialysis equipment" means equipment that:<br/>
<a id="pl.34.20"></a><var>34.20</var>    (i) is used to remove waste products that build up in the blood when the kidneys are <br/>
<a id="pl.34.21"></a><var>34.21</var>not able to do so on their own; and<br/>
<a id="pl.34.22"></a><var>34.22</var>    (ii) can withstand repeated use, including multiple use by a single patient, <br/>
<a id="pl.34.23"></a><var>34.23</var>notwithstanding the provisions of clause (2).<br/>
<a id="pl.34.24"></a><var>34.24</var>(8) A transaction is covered by Medicare or Medicaid if any portion of the cost of <br/>
<a id="pl.34.25"></a><var>34.25</var>the item purchased in the transaction is paid for or reimbursed by the federal government <br/>
<a id="pl.34.26"></a><var>34.26</var>or the state of Minnesota pursuant to the Medicare or Medicaid program, by a private <br/>
<a id="pl.34.27"></a><var>34.27</var>insurance company administering the Medicare or Medicaid program on behalf of the <br/>
<a id="pl.34.28"></a><var>34.28</var>federal government or the state of Minnesota, or by a managed care organization for the <br/>
<a id="pl.34.29"></a><var>34.29</var>benefit of a patient enrolled in a prepaid program that furnishes medical services in lieu <br/>
<a id="pl.34.30"></a><var>34.30</var>of conventional Medicare or Medicaid coverage pursuant to agreement with the federal <br/>
<a id="pl.34.31"></a><var>34.31</var>government or the state of Minnesota.<br/>
<a id="pl.34.32"></a><var>34.32</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.34.33"></a><var>34.33</var>June 30, 2012.<br/>
<br/>
<a id="bill.2.5.0"></a><a id="pl.35.1"></a><var>35.1</var>    Sec. 5. Minnesota Statutes 2010, section 297A.67, is amended by adding a subdivision <br/>
<a id="pl.35.2"></a><var>35.2</var>to read:<br/>
<a id="pl.35.3"></a><var>35.3</var>    Subd. 7a. <b>Accessories and supplies.</b> Accessories and supplies required for <br/>
<a id="pl.35.4"></a><var>35.4</var>the effective use of durable medical equipment for home use only, or purchased in <br/>
<a id="pl.35.5"></a><var>35.5</var>a transaction covered by Medicare or Medicaid, that are not already exempt under <br/>
<a id="pl.35.6"></a><var>35.6</var>subdivision 7 are exempt. Accessories and supplies for the effective use of a prosthetic <br/>
<a id="pl.35.7"></a><var>35.7</var>device that are not already exempt under subdivision 7 are exempt. For purposes of <br/>
<a id="pl.35.8"></a><var>35.8</var>this subdivision, "durable medical equipment," "prosthetic device," "Medicare," and <br/>
<a id="pl.35.9"></a><var>35.9</var>"Medicaid" have the meanings given in subdivision 7.<br/>
<a id="pl.35.10"></a><var>35.10</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.35.11"></a><var>35.11</var>June 30, 2012.<br/>
<br/>
<a id="bill.2.6.0"></a><a id="pl.35.12"></a><var>35.12</var>    Sec. 6. Minnesota Statutes 2010, section 297A.68, subdivision 5, is amended to read:<br/>
<a id="pl.35.13"></a><var>35.13</var>    Subd. 5. <b>Capital equipment.</b> (a) Capital equipment is exempt. Except as provided <br/>
<a id="pl.35.14"></a><var>35.14</var>in paragraphs (e) and (f), the tax must be imposed and collected as if the rate under section <br/>
<statute_ref><a id="pl.35.15"></a><var>35.15</var>297A.62, subdivision 1
         </statute_ref>, applied, and then refunded in the manner provided in section <br/>
<statute_ref><a id="pl.35.16"></a><var>35.16</var>297A.75
         </statute_ref>.<br/>
<a id="pl.35.17"></a><var>35.17</var>"Capital equipment" means machinery and equipment purchased or leased, and used <br/>
<a id="pl.35.18"></a><var>35.18</var>in this state by the purchaser or lessee primarily for manufacturing, fabricating, mining, <br/>
<a id="pl.35.19"></a><var>35.19</var>or refining tangible personal property to be sold ultimately at retail if the machinery and <br/>
<a id="pl.35.20"></a><var>35.20</var>equipment are essential to the integrated production process of manufacturing, fabricating, <br/>
<a id="pl.35.21"></a><var>35.21</var>mining, or refining. Capital equipment also includes machinery and equipment <br/>
<a id="pl.35.22"></a><var>35.22</var>used primarily to electronically transmit results retrieved by a customer of an online <br/>
<a id="pl.35.23"></a><var>35.23</var>computerized data retrieval system.<br/>
<a id="pl.35.24"></a><var>35.24</var>(b) Capital equipment includes, but is not limited to:<br/>
<a id="pl.35.25"></a><var>35.25</var>(1) machinery and equipment used to operate, control, or regulate the production <br/>
<a id="pl.35.26"></a><var>35.26</var>equipment;<br/>
<a id="pl.35.27"></a><var>35.27</var>(2) machinery and equipment used for research and development, design, quality <br/>
<a id="pl.35.28"></a><var>35.28</var>control, and testing activities;<br/>
<a id="pl.35.29"></a><var>35.29</var>(3) environmental control devices that are used to maintain conditions such as <br/>
<a id="pl.35.30"></a><var>35.30</var>temperature, humidity, light, or air pressure when those conditions are essential to and are <br/>
<a id="pl.35.31"></a><var>35.31</var>part of the production process;<br/>
<a id="pl.35.32"></a><var>35.32</var>(4) materials and supplies used to construct and install machinery or equipment;<br/>
<a id="pl.35.33"></a><var>35.33</var>(5) repair and replacement parts, including accessories, whether purchased as spare <br/>
<a id="pl.35.34"></a><var>35.34</var>parts, repair parts, or as upgrades or modifications to machinery or equipment;<br/>
<a id="pl.35.35"></a><var>35.35</var>(6) materials used for foundations that support machinery or equipment;<br/>
<a id="pl.36.1"></a><var>36.1</var>(7) materials used to construct and install special purpose buildings used in the <br/>
<a id="pl.36.2"></a><var>36.2</var>production process;<br/>
<a id="pl.36.3"></a><var>36.3</var>(8) ready-mixed concrete equipment in which the ready-mixed concrete is mixed <br/>
<a id="pl.36.4"></a><var>36.4</var>as part of the delivery process regardless if mounted on a chassis, repair parts for <br/>
<a id="pl.36.5"></a><var>36.5</var>ready-mixed concrete trucks, and leases of ready-mixed concrete trucks; and<br/>
<a id="pl.36.6"></a><var>36.6</var>(9) machinery or equipment used for research, development, design, or production <br/>
<a id="pl.36.7"></a><var>36.7</var>of computer software.<br/>
<a id="pl.36.8"></a><var>36.8</var>(c) Capital equipment does not include the following:<br/>
<a id="pl.36.9"></a><var>36.9</var>(1) motor vehicles taxed under chapter 297B;<br/>
<a id="pl.36.10"></a><var>36.10</var>(2) machinery or equipment used to receive or store raw materials;<br/>
<a id="pl.36.11"></a><var>36.11</var>(3) building materials, except for materials included in paragraph (b), clauses (6) <br/>
<a id="pl.36.12"></a><var>36.12</var>and (7);<br/>
<a id="pl.36.13"></a><var>36.13</var>(4) machinery or equipment used for nonproduction purposes, including, but not <br/>
<a id="pl.36.14"></a><var>36.14</var>limited to, the following: plant security, fire prevention, first aid, and hospital stations; <br/>
<a id="pl.36.15"></a><var>36.15</var>support operations or administration; pollution control; and plant cleaning, disposal of <br/>
<a id="pl.36.16"></a><var>36.16</var>scrap and waste, plant communications, space heating, cooling, lighting, or safety;<br/>
<a id="pl.36.17"></a><var>36.17</var>(5) farm machinery and aquaculture production equipment as defined by section <br/>
<statute_ref><a id="pl.36.18"></a><var>36.18</var>297A.61
         </statute_ref>, subdivisions 12 and 13;<br/>
<a id="pl.36.19"></a><var>36.19</var>(6) machinery or equipment purchased and installed by a contractor as part of an <br/>
<a id="pl.36.20"></a><var>36.20</var>improvement to real property;<br/>
<a id="pl.36.21"></a><var>36.21</var>(7) machinery and equipment used by restaurants in the furnishing, preparing, or <br/>
<a id="pl.36.22"></a><var>36.22</var>serving of prepared foods as defined in section 
         <statute_ref>297A.61, subdivision 31</statute_ref>;<br/>
<a id="pl.36.23"></a><var>36.23</var>(8) machinery and equipment used to furnish the services listed in section 
         <statute_ref>297A.61, <br/>
<a id="pl.36.24"></a><var>36.24</var>subdivision 3
         </statute_ref>, paragraph (g), clause (6), items (i) to (vi) and (viii);<br/>
<a id="pl.36.25"></a><var>36.25</var>(9) machinery or equipment used in the transportation, transmission, or distribution <br/>
<a id="pl.36.26"></a><var>36.26</var>of petroleum, liquefied gas, natural gas, water, or steam, in, by, or through pipes, lines, <br/>
<a id="pl.36.27"></a><var>36.27</var>tanks, mains, or other means of transporting those products. This clause does not apply to <br/>
<a id="pl.36.28"></a><var>36.28</var>machinery or equipment used to blend petroleum or biodiesel fuel as defined in section <br/>
<statute_ref><a id="pl.36.29"></a><var>36.29</var>239.77
         </statute_ref>; or<br/>
<a id="pl.36.30"></a><var>36.30</var>(10) any other item that is not essential to the integrated process of manufacturing, <br/>
<a id="pl.36.31"></a><var>36.31</var>fabricating, mining, or refining.<br/>
<a id="pl.36.32"></a><var>36.32</var>(d) For purposes of this subdivision:<br/>
<a id="pl.36.33"></a><var>36.33</var>(1) "Equipment" means independent devices or tools separate from machinery but <br/>
<a id="pl.36.34"></a><var>36.34</var>essential to an integrated production process, including computers and computer software, <br/>
<a id="pl.36.35"></a><var>36.35</var>used in operating, controlling, or regulating machinery and equipment; and any subunit or <br/>
<a id="pl.37.1"></a><var>37.1</var>assembly comprising a component of any machinery or accessory or attachment parts of <br/>
<a id="pl.37.2"></a><var>37.2</var>machinery, such as tools, dies, jigs, patterns, and molds.<br/>
<a id="pl.37.3"></a><var>37.3</var>(2) "Fabricating" means to make, build, create, produce, or assemble components or <br/>
<a id="pl.37.4"></a><var>37.4</var>property to work in a new or different manner.<br/>
<a id="pl.37.5"></a><var>37.5</var>(3) "Integrated production process" means a process or series of operations through <br/>
<a id="pl.37.6"></a><var>37.6</var>which tangible personal property is manufactured, fabricated, mined, or refined. For <br/>
<a id="pl.37.7"></a><var>37.7</var>purposes of this clause, (i) manufacturing begins with the removal of raw materials <br/>
<a id="pl.37.8"></a><var>37.8</var>from inventory and ends when the last process prior to loading for shipment has been <br/>
<a id="pl.37.9"></a><var>37.9</var>completed; (ii) fabricating begins with the removal from storage or inventory of the <br/>
<a id="pl.37.10"></a><var>37.10</var>property to be assembled, processed, altered, or modified and ends with the creation <br/>
<a id="pl.37.11"></a><var>37.11</var>or production of the new or changed product; (iii) mining begins with the removal of <br/>
<a id="pl.37.12"></a><var>37.12</var>overburden from the site of the ores, minerals, stone, peat deposit, or surface materials and <br/>
<a id="pl.37.13"></a><var>37.13</var>ends when the last process before stockpiling is completed; and (iv) refining begins with <br/>
<a id="pl.37.14"></a><var>37.14</var>the removal from inventory or storage of a natural resource and ends with the conversion <br/>
<a id="pl.37.15"></a><var>37.15</var>of the item to its completed form.<br/>
<a id="pl.37.16"></a><var>37.16</var>(4) "Machinery" means mechanical, electronic, or electrical devices, including <br/>
<a id="pl.37.17"></a><var>37.17</var>computers and computer software, that are purchased or constructed to be used for the <br/>
<a id="pl.37.18"></a><var>37.18</var>activities set forth in paragraph (a), beginning with the removal of raw materials from <br/>
<a id="pl.37.19"></a><var>37.19</var>inventory through completion of the product, including packaging of the product.<br/>
<a id="pl.37.20"></a><var>37.20</var>(5) "Machinery and equipment used for pollution control" means machinery and <br/>
<a id="pl.37.21"></a><var>37.21</var>equipment used solely to eliminate, prevent, or reduce pollution resulting from an activity <br/>
<a id="pl.37.22"></a><var>37.22</var>described in paragraph (a).<br/>
<a id="pl.37.23"></a><var>37.23</var>(6) "Manufacturing" means an operation or series of operations where raw materials <br/>
<a id="pl.37.24"></a><var>37.24</var>are changed in form, composition, or condition by machinery and equipment and which <br/>
<a id="pl.37.25"></a><var>37.25</var>results in the production of a new article of tangible personal property. For purposes of <br/>
<a id="pl.37.26"></a><var>37.26</var>this subdivision, "manufacturing" includes the generation of electricity or steam to be <br/>
<a id="pl.37.27"></a><var>37.27</var>sold at retail.<br/>
<a id="pl.37.28"></a><var>37.28</var>(7) "Mining" means the extraction of minerals, ores, stone, or peat.<br/>
<a id="pl.37.29"></a><var>37.29</var>(8) "Online data retrieval system" means a system whose cumulation of information <br/>
<a id="pl.37.30"></a><var>37.30</var>is equally available and accessible to all its customers.<br/>
<a id="pl.37.31"></a><var>37.31</var>(9) "Primarily" means machinery and equipment used 50 percent or more of the time <br/>
<a id="pl.37.32"></a><var>37.32</var>in an activity described in paragraph (a).<br/>
<a id="pl.37.33"></a><var>37.33</var>(10) "Refining" means the process of converting a natural resource to an intermediate <br/>
<a id="pl.37.34"></a><var>37.34</var>or finished product, including the treatment of water to be sold at retail.<br/>
<a id="pl.38.1"></a><var>38.1</var>(11) This subdivision does not apply to telecommunications equipment as <br/>
<a id="pl.38.2"></a><var>38.2</var>provided in subdivision 35, and does not apply to wire, cable, fiber, poles, or conduit <br/>
<a id="pl.38.3"></a><var>38.3</var>for telecommunications services.<br/>
<a id="pl.38.4"></a><var>38.4</var>(e) Materials exempt under this section may be purchased without imposing and <br/>
<a id="pl.38.5"></a><var>38.5</var>collecting the tax and applying for a refund under section 297A.75, if:<br/>
<a id="pl.38.6"></a><var>38.6</var>(1) for calendar years 2013 and 2014, the purchaser employed not more than 20 <br/>
<a id="pl.38.7"></a><var>38.7</var>full-time employees at any time during calendar year 2010 and was not an affiliate or <br/>
<a id="pl.38.8"></a><var>38.8</var>subsidiary of a business dominant in its field of operation; and<br/>
<a id="pl.38.9"></a><var>38.9</var>(2) for calendar year 2015, the purchaser employed not more than 50 full-time <br/>
<a id="pl.38.10"></a><var>38.10</var>employees at any time during calendar year 2010 and was not an affiliate or subsidiary of <br/>
<a id="pl.38.11"></a><var>38.11</var>a business dominant in its field of operation.<br/>
<a id="pl.38.12"></a><var>38.12</var>(f) For calendar year 2016 and thereafter, all purchases exempt under this section <br/>
<a id="pl.38.13"></a><var>38.13</var>may be purchased without imposing and collecting the tax and applying the refund <br/>
<a id="pl.38.14"></a><var>38.14</var>under section 297A.75.<br/>
<a id="pl.38.15"></a><var>38.15</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.38.16"></a><var>38.16</var>December 31, 2012.<br/>
<br/>
<a id="bill.2.7.0"></a><a id="pl.38.17"></a><var>38.17</var>    Sec. 7. Minnesota Statutes 2011 Supplement, section 297A.68, subdivision 42, is <br/>
<a id="pl.38.18"></a><var>38.18</var>amended to read:<br/>
<a id="pl.38.19"></a><var>38.19</var>    Subd. 42. <b>Qualified data centers.</b> (a) Purchases of enterprise information <br/>
<a id="pl.38.20"></a><var>38.20</var>technology equipment and computer software for use in a qualified data center are exempt. <br/>
<a id="pl.38.21"></a><var>38.21</var>The tax on purchases exempt under this paragraph must be imposed and collected as if <br/>
<a id="pl.38.22"></a><var>38.22</var>the rate under section 
         <statute_ref>297A.62, subdivision 1</statute_ref>, applied, and then refunded after June 30, <br/>
<a id="pl.38.23"></a><var>38.23</var>2013, in the manner provided in section 
         <statute_ref>297A.75</statute_ref>. This exemption includes enterprise <br/>
<a id="pl.38.24"></a><var>38.24</var>information technology equipment and computer software purchased to replace or upgrade <br/>
<a id="pl.38.25"></a><var>38.25</var>enterprise information technology equipment and computer software in a qualified data <br/>
<a id="pl.38.26"></a><var>38.26</var>center.<br/>
<a id="pl.38.27"></a><var>38.27</var>(b) Electricity used or consumed in the operation of a qualified data center is exempt.<br/>
<a id="pl.38.28"></a><var>38.28</var>(c) For purposes of this subdivision, "qualified data center" means a facility in <br/>
<a id="pl.38.29"></a><var>38.29</var>Minnesota:<br/>
<a id="pl.38.30"></a><var>38.30</var>(1) that is comprised of one or more buildings that consist in the aggregate of at <br/>
<a id="pl.38.31"></a><var>38.31</var>least 30,000 square feet, and that are located on a single parcel or on contiguous parcels, <br/>
<a id="pl.38.32"></a><var>38.32</var>where the total cost of construction or refurbishment, investment in enterprise information <br/>
<a id="pl.38.33"></a><var>38.33</var>technology equipment, and computer software is at least $50,000,000 $30,000,000 within <br/>
<a id="pl.38.34"></a><var>38.34</var>a 24-month three-year period;<br/>
<a id="pl.39.1"></a><var>39.1</var>(2) that is constructed or substantially refurbished after June 30, 2012, where <br/>
<a id="pl.39.2"></a><var>39.2</var>"substantially refurbished" means that at least 30,000 square feet have been rebuilt or <br/>
<a id="pl.39.3"></a><var>39.3</var>modified; and<br/>
<a id="pl.39.4"></a><var>39.4</var>(3) that is used to house enterprise information technology equipment, where the <br/>
<a id="pl.39.5"></a><var>39.5</var>facility has the following characteristics:<br/>
<a id="pl.39.6"></a><var>39.6</var>(i) uninterruptible power supplies, generator backup power, or both;<br/>
<a id="pl.39.7"></a><var>39.7</var>(ii) sophisticated fire suppression and prevention systems; and<br/>
<a id="pl.39.8"></a><var>39.8</var>(iii) enhanced security. A facility will be considered to have enhanced security if it <br/>
<a id="pl.39.9"></a><var>39.9</var>has restricted access to the facility to selected personnel; permanent security guards; video <br/>
<a id="pl.39.10"></a><var>39.10</var>camera surveillance; an electronic system requiring pass codes, keycards, or biometric <br/>
<a id="pl.39.11"></a><var>39.11</var>scans, such as hand scans and retinal or fingerprint recognition; or similar security features.<br/>
<a id="pl.39.12"></a><var>39.12</var>In determining whether the facility has the required square footage, the square <br/>
<a id="pl.39.13"></a><var>39.13</var>footage of the following spaces shall be included if the spaces support the operation <br/>
<a id="pl.39.14"></a><var>39.14</var>of enterprise information technology equipment: office space, meeting space, and <br/>
<a id="pl.39.15"></a><var>39.15</var>mechanical and other support facilities.<br/>
<a id="pl.39.16"></a><var>39.16</var>(d) For purposes of this subdivision, "enterprise information technology equipment" <br/>
<a id="pl.39.17"></a><var>39.17</var>means computers and equipment supporting computing, networking, or data storage, <br/>
<a id="pl.39.18"></a><var>39.18</var>including servers and routers. It includes, but is not limited to: cooling systems, <br/>
<a id="pl.39.19"></a><var>39.19</var>cooling towers, and other temperature control infrastructure; power infrastructure for <br/>
<a id="pl.39.20"></a><var>39.20</var>transformation, distribution, or management of electricity used for the maintenance <br/>
<a id="pl.39.21"></a><var>39.21</var>and operation of a qualified data center, including but not limited to exterior dedicated <br/>
<a id="pl.39.22"></a><var>39.22</var>business-owned substations, backup power generation systems, battery systems, and <br/>
<a id="pl.39.23"></a><var>39.23</var>related infrastructure; and racking systems, cabling, and trays, which are necessary for <br/>
<a id="pl.39.24"></a><var>39.24</var>the maintenance and operation of the qualified data center.<br/>
<a id="pl.39.25"></a><var>39.25</var>(e) A qualified data center may claim the exemptions in this subdivision for <br/>
<a id="pl.39.26"></a><var>39.26</var>purchases made either within 20 years of the date of its first purchase qualifying for the <br/>
<a id="pl.39.27"></a><var>39.27</var>exemption under paragraph (a), or by June 30, 2042, whichever is earlier.<br/>
<a id="pl.39.28"></a><var>39.28</var>(f) The purpose of this exemption is to create jobs in the construction and data <br/>
<a id="pl.39.29"></a><var>39.29</var>center industries.<br/>
<a id="pl.39.30"></a><var>39.30</var>(g) This subdivision is effective for sales and purchases made after June 30, 2012, <br/>
<a id="pl.39.31"></a><var>39.31</var>and before July 1, 2042.<br/>
<a id="pl.39.32"></a><var>39.32</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.39.33"></a><var>39.33</var>June 30, 2012.<br/>
<br/>
<a id="bill.2.8.0"></a><a id="pl.39.34"></a><var>39.34</var>    Sec. 8. Minnesota Statutes 2010, section 297A.70, is amended by adding a subdivision <br/>
<a id="pl.39.35"></a><var>39.35</var>to read:<br/>
<a id="pl.40.1"></a><var>40.1</var>    Subd. 18. <b>Nursing homes and boarding care homes.</b> (a) All sales, except those <br/>
<a id="pl.40.2"></a><var>40.2</var>listed in paragraph (b), to a nursing home licensed under section 144A.02 or a boarding <br/>
<a id="pl.40.3"></a><var>40.3</var>care home certified as a nursing facility under title 19 of the Social Security Act are <br/>
<a id="pl.40.4"></a><var>40.4</var>exempt if the facility:<br/>
<a id="pl.40.5"></a><var>40.5</var>(1) is exempt from federal income taxation pursuant to section 501(c)(3) of the <br/>
<a id="pl.40.6"></a><var>40.6</var>Internal Revenue Code; and<br/>
<a id="pl.40.7"></a><var>40.7</var>(2) is certified to participate in the medical assistance program under title 19 of the <br/>
<a id="pl.40.8"></a><var>40.8</var>Social Security Act, or certifies to the commissioner that it does not discharge residents <br/>
<a id="pl.40.9"></a><var>40.9</var>due to the inability to pay.<br/>
<a id="pl.40.10"></a><var>40.10</var>(b) This exemption does not apply to the following sales:<br/>
<a id="pl.40.11"></a><var>40.11</var>(1) building, construction, or reconstruction materials purchased by a contractor <br/>
<a id="pl.40.12"></a><var>40.12</var>or a subcontractor as a part of a lump-sum contract or similar type of contract with a <br/>
<a id="pl.40.13"></a><var>40.13</var>guaranteed maximum price covering both labor and materials for use in the construction, <br/>
<a id="pl.40.14"></a><var>40.14</var>alteration, or repair of a building or facility;<br/>
<a id="pl.40.15"></a><var>40.15</var>(2) construction materials purchased by tax-exempt entities or their contractors to <br/>
<a id="pl.40.16"></a><var>40.16</var>be used in constructing buildings or facilities that will not be used principally by the <br/>
<a id="pl.40.17"></a><var>40.17</var>tax-exempt entities;<br/>
<a id="pl.40.18"></a><var>40.18</var>(3) lodging as defined under section 
<statute_ref>297A.61, subdivision 3</statute_ref>, paragraph (g), clause <br/>
<a id="pl.40.19"></a><var>40.19</var>(2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in section <br/>
<a id="pl.40.20"></a><var>40.20</var><statute_ref>297A.67, subdivision 2</statute_ref>; and<br/>
<a id="pl.40.21"></a><var>40.21</var>(4) leasing of a motor vehicle as defined in section 
<statute_ref>297B.01, subdivision 11</statute_ref>, except <br/>
<a id="pl.40.22"></a><var>40.22</var>as provided in paragraph (c).<br/>
<a id="pl.40.23"></a><var>40.23</var>(c) This exemption applies to the leasing of a motor vehicle as defined in section <br/>
<a id="pl.40.24"></a><var>40.24</var><statute_ref>297B.01, subdivision 11</statute_ref>, only if the vehicle is:<br/>
<a id="pl.40.25"></a><var>40.25</var>(1) a truck, as defined in section 
<statute_ref>168.002</statute_ref>; a bus, as defined in section 
<statute_ref>168.002</statute_ref>; or a <br/>
<a id="pl.40.26"></a><var>40.26</var>passenger automobile, as defined in section 
<statute_ref>168.002</statute_ref>, if the automobile is designed and <br/>
<a id="pl.40.27"></a><var>40.27</var>used for carrying more than nine persons including the driver; and<br/>
<a id="pl.40.28"></a><var>40.28</var>(2) intended to be used primarily to transport tangible personal property or residents <br/>
<a id="pl.40.29"></a><var>40.29</var>of the nursing home or boarding care home.<br/>
<a id="pl.40.30"></a><var>40.30</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.40.31"></a><var>40.31</var>June 30, 2012.<br/>
<br/>
<a id="bill.2.9.0"></a><a id="pl.40.32"></a><var>40.32</var>    Sec. 9. Minnesota Statutes 2011 Supplement, section 297A.75, subdivision 1, is <br/>
<a id="pl.40.33"></a><var>40.33</var>amended to read:<br/>
<a id="pl.41.1"></a><var>41.1</var>    Subdivision 1. <b>Tax collected.</b> The tax on the gross receipts from the sale of the <br/>
<a id="pl.41.2"></a><var>41.2</var>following exempt items must be imposed and collected as if the sale were taxable and the <br/>
<a id="pl.41.3"></a><var>41.3</var>rate under section 
         <statute_ref>297A.62, subdivision 1</statute_ref>, applied. The exempt items include:<br/>
<a id="pl.41.4"></a><var>41.4</var>    (1) capital equipment exempt under section 
<statute_ref>297A.68, subdivision 5</statute_ref>;<br/>
<a id="pl.41.5"></a><var>41.5</var>    (2) (1) building materials for an agricultural processing facility exempt under section <br/>
<statute_ref><a id="pl.41.6"></a><var>41.6</var>297A.71, subdivision 13
         </statute_ref>;<br/>
<a id="pl.41.7"></a><var>41.7</var>    (3) (2) building materials for mineral production facilities exempt under section <br/>
<statute_ref><a id="pl.41.8"></a><var>41.8</var>297A.71, subdivision 14
         </statute_ref>;<br/>
<a id="pl.41.9"></a><var>41.9</var>    (4) (3) building materials for correctional facilities under section 
         <statute_ref>297A.71, <br/>
<a id="pl.41.10"></a><var>41.10</var>subdivision 3
         </statute_ref>;<br/>
<a id="pl.41.11"></a><var>41.11</var>    (5) (4) building materials used in a residence for disabled veterans exempt under <br/>
<a id="pl.41.12"></a><var>41.12</var>section 
         <statute_ref>297A.71, subdivision 11</statute_ref>;<br/>
<a id="pl.41.13"></a><var>41.13</var>    (6) (5) elevators and building materials exempt under section 
         <statute_ref>297A.71, subdivision <br/>
<a id="pl.41.14"></a><var>41.14</var>12
         </statute_ref>;<br/>
<a id="pl.41.15"></a><var>41.15</var>    (7) (6) building materials for the Long Lake Conservation Center exempt under <br/>
<a id="pl.41.16"></a><var>41.16</var>section 
         <statute_ref>297A.71, subdivision 17</statute_ref>;<br/>
<a id="pl.41.17"></a><var>41.17</var>    (8) (7) materials and supplies for qualified low-income housing under section <br/>
<statute_ref><a id="pl.41.18"></a><var>41.18</var>297A.71, subdivision 23
         </statute_ref>;<br/>
<a id="pl.41.19"></a><var>41.19</var>    (9) (8) materials, supplies, and equipment for municipal electric utility facilities <br/>
<a id="pl.41.20"></a><var>41.20</var>under section 
         <statute_ref>297A.71, subdivision 35</statute_ref>;<br/>
<a id="pl.41.21"></a><var>41.21</var>    (10) (9) equipment and materials used for the generation, transmission, and <br/>
<a id="pl.41.22"></a><var>41.22</var>distribution of electrical energy and an aerial camera package exempt under section <br/>
<statute_ref><a id="pl.41.23"></a><var>41.23</var>297A.68
         </statute_ref>, subdivision 37;<br/>
<a id="pl.41.24"></a><var>41.24</var>    (11) (10) tangible personal property and taxable services and construction materials, <br/>
<a id="pl.41.25"></a><var>41.25</var>supplies, and equipment exempt under section 
         <statute_ref>297A.68</statute_ref>, subdivision 41;<br/>
<a id="pl.41.26"></a><var>41.26</var>    (12) (11) commuter rail vehicle and repair parts under section 
         <statute_ref>297A.70</statute_ref>, subdivision <br/>
<a id="pl.41.27"></a><var>41.27</var>3, clause (11);<br/>
<a id="pl.41.28"></a><var>41.28</var>    (13) (12) materials, supplies, and equipment for construction or improvement of <br/>
<a id="pl.41.29"></a><var>41.29</var>projects and facilities under section 
         <statute_ref>297A.71, subdivision 40</statute_ref>;<br/>
<a id="pl.41.30"></a><var>41.30</var>(14) (13) materials, supplies, and equipment for construction or improvement of a <br/>
<a id="pl.41.31"></a><var>41.31</var>meat processing facility exempt under section 
         <statute_ref>297A.71, subdivision 41</statute_ref>;<br/>
<a id="pl.41.32"></a><var>41.32</var>(15) (14) materials, supplies, and equipment for construction, improvement, or <br/>
<a id="pl.41.33"></a><var>41.33</var>expansion of an aerospace defense manufacturing facility exempt under section 
         <statute_ref>297A.71</statute_ref>, <br/>
<a id="pl.41.34"></a><var>41.34</var>subdivision 42; and<br/>
<a id="pl.41.35"></a><var>41.35</var>(16) (15) enterprise information technology equipment and computer software for <br/>
<a id="pl.41.36"></a><var>41.36</var>use in a qualified data center exempt under section 
         <statute_ref>297A.68, subdivision 42</statute_ref>.<br/>
<a id="pl.42.1"></a><var>42.1</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.42.2"></a><var>42.2</var>December 31, 2015.<br/>
<br/>
<a id="bill.2.10.0"></a><a id="pl.42.3"></a><var>42.3</var>    Sec. 10. Minnesota Statutes 2011 Supplement, section 297A.75, subdivision 2, is <br/>
<a id="pl.42.4"></a><var>42.4</var>amended to read:<br/>
<a id="pl.42.5"></a><var>42.5</var>    Subd. 2. <b>Refund; eligible persons.</b> Upon application on forms prescribed by the <br/>
<a id="pl.42.6"></a><var>42.6</var>commissioner, a refund equal to the tax paid on the gross receipts of the exempt items <br/>
<a id="pl.42.7"></a><var>42.7</var>must be paid to the applicant. Only the following persons may apply for the refund:<br/>
<a id="pl.42.8"></a><var>42.8</var>    (1) for subdivision 1, clauses (1) to (3) and (2), the applicant must be the purchaser;<br/>
<a id="pl.42.9"></a><var>42.9</var>    (2) for subdivision 1, clauses (4) (3) and (7) (6), the applicant must be the <br/>
<a id="pl.42.10"></a><var>42.10</var>governmental subdivision;<br/>
<a id="pl.42.11"></a><var>42.11</var>    (3) for subdivision 1, clause (5) (4), the applicant must be the recipient of the <br/>
<a id="pl.42.12"></a><var>42.12</var>benefits provided in United States Code, title 38, chapter 21;<br/>
<a id="pl.42.13"></a><var>42.13</var>    (4) for subdivision 1, clause (6) (5), the applicant must be the owner of the <br/>
<a id="pl.42.14"></a><var>42.14</var>homestead property;<br/>
<a id="pl.42.15"></a><var>42.15</var>    (5) for subdivision 1, clause (8) (7), the owner of the qualified low-income housing <br/>
<a id="pl.42.16"></a><var>42.16</var>project;<br/>
<a id="pl.42.17"></a><var>42.17</var>    (6) for subdivision 1, clause (9) (8), the applicant must be a municipal electric utility <br/>
<a id="pl.42.18"></a><var>42.18</var>or a joint venture of municipal electric utilities;<br/>
<a id="pl.42.19"></a><var>42.19</var>    (7) for subdivision 1, clauses (9), (10), (11) (13), (14), and (15), and (16), the owner <br/>
<a id="pl.42.20"></a><var>42.20</var>of the qualifying business; and<br/>
<a id="pl.42.21"></a><var>42.21</var>    (8) for subdivision 1, clauses (11) and (12) and (13), the applicant must be the <br/>
<a id="pl.42.22"></a><var>42.22</var>governmental entity that owns or contracts for the project or facility.<br/>
<a id="pl.42.23"></a><var>42.23</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.42.24"></a><var>42.24</var>December 31, 2015.<br/>
<br/>
<a id="bill.2.11.0"></a><a id="pl.42.25"></a><var>42.25</var>    Sec. 11. Minnesota Statutes 2011 Supplement, section 297A.75, subdivision 3, is <br/>
<a id="pl.42.26"></a><var>42.26</var>amended to read:<br/>
<a id="pl.42.27"></a><var>42.27</var>    Subd. 3. <b>Application.</b> (a) The application must include sufficient information <br/>
<a id="pl.42.28"></a><var>42.28</var>to permit the commissioner to verify the tax paid. If the tax was paid by a contractor, <br/>
<a id="pl.42.29"></a><var>42.29</var>subcontractor, or builder, under subdivision 1, clause (3), (4), (5), (6), (7), (8), (9), (10), <br/>
<a id="pl.42.30"></a><var>42.30</var>(11), (12), (13), (14), or (15), or (16), the contractor, subcontractor, or builder must <br/>
<a id="pl.42.31"></a><var>42.31</var>furnish to the refund applicant a statement including the cost of the exempt items and the <br/>
<a id="pl.42.32"></a><var>42.32</var>taxes paid on the items unless otherwise specifically provided by this subdivision. The <br/>
<a id="pl.42.33"></a><var>42.33</var>provisions of sections 
         <statute_ref>289A.40</statute_ref> and 
         <statute_ref>289A.50</statute_ref> apply to refunds under this section.<br/>
<a id="pl.43.1"></a><var>43.1</var>    (b) An applicant may not file more than two applications per calendar year for <br/>
<a id="pl.43.2"></a><var>43.2</var>refunds for taxes paid on capital equipment exempt under section 
         <statute_ref>297A.68, subdivision 5</statute_ref>.<br/>
<a id="pl.43.3"></a><var>43.3</var>    (c) Total refunds for purchases of items in section 
         <statute_ref>297A.71, subdivision 40</statute_ref>, must not <br/>
<a id="pl.43.4"></a><var>43.4</var>exceed $5,000,000 in fiscal years 2010 and 2011. Applications for refunds for purchases <br/>
<a id="pl.43.5"></a><var>43.5</var>of items in sections 
         <statute_ref>297A.70, subdivision 3</statute_ref>, paragraph (a), clause (11), and 
         <statute_ref>297A.71</statute_ref>, <br/>
<a id="pl.43.6"></a><var>43.6</var>subdivision 40, must not be filed until after June 30, 2009.<br/>
<a id="pl.43.7"></a><var>43.7</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.43.8"></a><var>43.8</var>December 31, 2015.<br/>
<br/>
<a id="bill.2.12.0"></a><a id="pl.43.9"></a><var>43.9</var>    Sec. 12. Minnesota Statutes 2010, section 297A.815, subdivision 3, is amended to read:<br/>
<a id="pl.43.10"></a><var>43.10</var>    Subd. 3. <b>Motor vehicle lease sales tax revenue.</b> (a) For purposes of this <br/>
<a id="pl.43.11"></a><var>43.11</var>subdivision, "net revenue" means an amount equal to:<br/>
<a id="pl.43.12"></a><var>43.12</var>    (1) the revenues, including interest and penalties, collected under this section and <br/>
<a id="pl.43.13"></a><var>43.13</var>on the leases under section 297A.61, subdivision 4, paragraph (k), clause (3), during <br/>
<a id="pl.43.14"></a><var>43.14</var>the fiscal year; less<br/>
<a id="pl.43.15"></a><var>43.15</var>    (2) in fiscal year 2011, $30,100,000; in fiscal year 2012, $31,100,000; and in fiscal <br/>
<a id="pl.43.16"></a><var>43.16</var>year 2013 and following fiscal years, $32,000,000.<br/>
<a id="pl.43.17"></a><var>43.17</var>    (b) On or before June 30 of each fiscal year, the commissioner of revenue shall <br/>
<a id="pl.43.18"></a><var>43.18</var>estimate the amount of the revenues and subtraction under paragraph (a) for the current <br/>
<a id="pl.43.19"></a><var>43.19</var>fiscal year.<br/>
<a id="pl.43.20"></a><var>43.20</var>    (c) On or after July 1 of the subsequent fiscal year, the commissioner of management <br/>
<a id="pl.43.21"></a><var>43.21</var>and budget shall transfer the net revenue as estimated in paragraph (b) from the general <br/>
<a id="pl.43.22"></a><var>43.22</var>fund, as follows:<br/>
<a id="pl.43.23"></a><var>43.23</var>    (1) 50 percent to the greater Minnesota transit account; and<br/>
<a id="pl.43.24"></a><var>43.24</var>    (2) 50 percent to the county state-aid highway fund. Notwithstanding any other law <br/>
<a id="pl.43.25"></a><var>43.25</var>to the contrary, the commissioner of transportation shall allocate the funds transferred <br/>
<a id="pl.43.26"></a><var>43.26</var>under this clause to the counties in the metropolitan area, as defined in section 
         <statute_ref>473.121</statute_ref>, <br/>
<a id="pl.43.27"></a><var>43.27</var>subdivision 4, excluding the counties of Hennepin and Ramsey, so that each county shall <br/>
<a id="pl.43.28"></a><var>43.28</var>receive of such amount the percentage that its population, as defined in section 
         <statute_ref>477A.011</statute_ref>, <br/>
<a id="pl.43.29"></a><var>43.29</var>subdivision 3, estimated or established by July 15 of the year prior to the current calendar <br/>
<a id="pl.43.30"></a><var>43.30</var>year, bears to the total population of the counties receiving funds under this clause.<br/>
<a id="pl.43.31"></a><var>43.31</var>    (d) For fiscal years 2010 and 2011, the amount under paragraph (a), clause (1), must <br/>
<a id="pl.43.32"></a><var>43.32</var>be calculated using the following percentages of the total revenues:<br/>
<a id="pl.43.33"></a><var>43.33</var>    (1) for fiscal year 2010, 83.75 percent; and<br/>
<a id="pl.43.34"></a><var>43.34</var>    (2) for fiscal year 2011, 93.75 percent.<br/>
<a id="pl.44.1"></a><var>44.1</var><b>EFFECTIVE DATE.</b>This section is effective for leases entered into after June <br/>
<a id="pl.44.2"></a><var>44.2</var>30, 2012.<br/>
<br/>
<a id="bill.2.13.0"></a><a id="pl.44.3"></a><var>44.3</var>    Sec. 13. Minnesota Statutes 2011 Supplement, section 297B.03, is amended to read:<br/>
<a id="pl.44.4"></a><var>44.4</var><b>297B.03 EXEMPTIONS.</b><br/>
<a id="pl.44.5"></a><var>44.5</var>    There is specifically exempted from the provisions of this chapter and from <br/>
<a id="pl.44.6"></a><var>44.6</var>computation of the amount of tax imposed by it the following:<br/>
<a id="pl.44.7"></a><var>44.7</var>    (1) purchase or use, including use under a lease purchase agreement or installment <br/>
<a id="pl.44.8"></a><var>44.8</var>sales contract made pursuant to section 
         <statute_ref>465.71</statute_ref>, of any motor vehicle by the United States <br/>
<a id="pl.44.9"></a><var>44.9</var>and its agencies and instrumentalities and by any person described in and subject to the <br/>
<a id="pl.44.10"></a><var>44.10</var>conditions provided in section 
         <statute_ref>297A.67, subdivision 11</statute_ref>;<br/>
<a id="pl.44.11"></a><var>44.11</var>    (2) purchase or use of any motor vehicle by any person who was a resident of <br/>
<a id="pl.44.12"></a><var>44.12</var>another state or country at the time of the purchase and who subsequently becomes a <br/>
<a id="pl.44.13"></a><var>44.13</var>resident of Minnesota, provided the purchase occurred more than 60 days prior to the date <br/>
<a id="pl.44.14"></a><var>44.14</var>such person began residing in the state of Minnesota and the motor vehicle was registered <br/>
<a id="pl.44.15"></a><var>44.15</var>in the person's name in the other state or country;<br/>
<a id="pl.44.16"></a><var>44.16</var>    (3) purchase or use of any motor vehicle by any person making a valid election to be <br/>
<a id="pl.44.17"></a><var>44.17</var>taxed under the provisions of section 
         <statute_ref>297A.90</statute_ref>;<br/>
<a id="pl.44.18"></a><var>44.18</var>    (4) purchase or use of any motor vehicle previously registered in the state of <br/>
<a id="pl.44.19"></a><var>44.19</var>Minnesota when such transfer constitutes a transfer within the meaning of section 118, <br/>
<a id="pl.44.20"></a><var>44.20</var>331, 332, 336, 337, 338, 351, 355, 368, 721, 731, 1031, 1033, or 1563(a) of the Internal <br/>
<a id="pl.44.21"></a><var>44.21</var>Revenue Code;<br/>
<a id="pl.44.22"></a><var>44.22</var>    (5) purchase or use of any vehicle owned by a resident of another state and leased <br/>
<a id="pl.44.23"></a><var>44.23</var>to a Minnesota-based private or for-hire carrier for regular use in the transportation of <br/>
<a id="pl.44.24"></a><var>44.24</var>persons or property in interstate commerce provided the vehicle is titled in the state of <br/>
<a id="pl.44.25"></a><var>44.25</var>the owner or secured party, and that state does not impose a sales tax or sales tax on <br/>
<a id="pl.44.26"></a><var>44.26</var>motor vehicles used in interstate commerce;<br/>
<a id="pl.44.27"></a><var>44.27</var>    (6) purchase or use of a motor vehicle by a private nonprofit or public educational <br/>
<a id="pl.44.28"></a><var>44.28</var>institution for use as an instructional aid in automotive training programs operated by the <br/>
<a id="pl.44.29"></a><var>44.29</var>institution. "Automotive training programs" includes motor vehicle body and mechanical <br/>
<a id="pl.44.30"></a><var>44.30</var>repair courses but does not include driver education programs;<br/>
<a id="pl.44.31"></a><var>44.31</var>    (7) purchase of a motor vehicle by an ambulance service licensed under section <br/>
<statute_ref><a id="pl.44.32"></a><var>44.32</var>144E.10
         </statute_ref> when that vehicle is equipped and specifically intended for emergency response <br/>
<a id="pl.44.33"></a><var>44.33</var>or for providing ambulance service;<br/>
<a id="pl.44.34"></a><var>44.34</var>    (8) purchase of a motor vehicle by or for a public library, as defined in section <br/>
<statute_ref><a id="pl.44.35"></a><var>44.35</var>134.001, subdivision 2
         </statute_ref>, as a bookmobile or library delivery vehicle;<br/>
<a id="pl.45.1"></a><var>45.1</var>    (9) purchase of a ready-mixed concrete truck;<br/>
<a id="pl.45.2"></a><var>45.2</var>    (10) purchase or use of a motor vehicle by a town for use exclusively for road <br/>
<a id="pl.45.3"></a><var>45.3</var>maintenance, including snowplows and dump trucks, but not including automobiles, <br/>
<a id="pl.45.4"></a><var>45.4</var>vans, or pickup trucks;<br/>
<a id="pl.45.5"></a><var>45.5</var>    (11) purchase or use of a motor vehicle by a corporation, society, association, <br/>
<a id="pl.45.6"></a><var>45.6</var>foundation, or institution organized and operated exclusively for charitable, religious, <br/>
<a id="pl.45.7"></a><var>45.7</var>or educational purposes, except a public school, university, or library, but only if the <br/>
<a id="pl.45.8"></a><var>45.8</var>vehicle is:<br/>
<a id="pl.45.9"></a><var>45.9</var>    (i) a truck, as defined in section 
         <statute_ref>168.002</statute_ref>, a bus, as defined in section 
         <statute_ref>168.002</statute_ref>, or a <br/>
<a id="pl.45.10"></a><var>45.10</var>passenger automobile, as defined in section 
         <statute_ref>168.002</statute_ref>, if the automobile is designed and <br/>
<a id="pl.45.11"></a><var>45.11</var>used for carrying more than nine persons including the driver; and<br/>
<a id="pl.45.12"></a><var>45.12</var>    (ii) intended to be used primarily to transport tangible personal property or <br/>
<a id="pl.45.13"></a><var>45.13</var>individuals, other than employees, to whom the organization provides service in <br/>
<a id="pl.45.14"></a><var>45.14</var>performing its charitable, religious, or educational purpose;<br/>
<a id="pl.45.15"></a><var>45.15</var>    (12) purchase of a motor vehicle for use by a transit provider exclusively to provide <br/>
<a id="pl.45.16"></a><var>45.16</var>transit service is exempt if the transit provider is either (i) receiving financial assistance or <br/>
<a id="pl.45.17"></a><var>45.17</var>reimbursement under section 
         <statute_ref>174.24</statute_ref> or 
         <statute_ref>473.384</statute_ref>, or (ii) operating under section 
         <statute_ref>174.29</statute_ref>, <br/>
<statute_ref><a id="pl.45.18"></a><var>45.18</var>473.388
         </statute_ref>, or 
         <statute_ref>473.405</statute_ref>;<br/>
<a id="pl.45.19"></a><var>45.19</var>    (13) purchase or use of a motor vehicle by a qualified business, as defined in section <br/>
<statute_ref><a id="pl.45.20"></a><var>45.20</var>469.310
         </statute_ref>, located in a job opportunity building zone, if the motor vehicle is principally <br/>
<a id="pl.45.21"></a><var>45.21</var>garaged in the job opportunity building zone and is primarily used as part of or in direct <br/>
<a id="pl.45.22"></a><var>45.22</var>support of the person's operations carried on in the job opportunity building zone. The <br/>
<a id="pl.45.23"></a><var>45.23</var>exemption under this clause applies to sales, if the purchase was made and delivery <br/>
<a id="pl.45.24"></a><var>45.24</var>received during the duration of the job opportunity building zone. The exemption under <br/>
<a id="pl.45.25"></a><var>45.25</var>this clause also applies to any local sales and use tax; and<br/>
<a id="pl.45.26"></a><var>45.26</var>    (14) purchase of a leased vehicle by the lessee who was a participant in a <br/>
<a id="pl.45.27"></a><var>45.27</var>lease-to-own program from a charitable organization that is:<br/>
<a id="pl.45.28"></a><var>45.28</var>    (i) described in section 501(c)(3) of the Internal Revenue Code; and<br/>
<a id="pl.45.29"></a><var>45.29</var>    (ii) licensed as a motor vehicle lessor under section 
         <statute_ref>168.27, subdivision 4</statute_ref>; and<br/>
<a id="pl.45.30"></a><var>45.30</var>(15) purchase of a motor vehicle used exclusively as a mobile medical unit for the <br/>
<a id="pl.45.31"></a><var>45.31</var>provision of medical or dental services by a federally qualified health center, as defined <br/>
<a id="pl.45.32"></a><var>45.32</var>under title 19 of the Social Security Act, as amended by Section 4161 of the Omnibus <br/>
<a id="pl.45.33"></a><var>45.33</var>Budget Reconciliation Act of 1990.<br/>
<a id="pl.45.34"></a><var>45.34</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for sales and purchases <br/>
<a id="pl.45.35"></a><var>45.35</var>made after December 31, 2010.<br/>
<br/>
<a id="bill.2.14.0"></a><a id="pl.46.1"></a><var>46.1</var>    Sec. 14. <b> REPEALER.</b><br/>
<a id="pl.46.2"></a><var>46.2</var>Minnesota Statutes 2011 Supplement, section 289A.60, subdivision 31, is repealed.<br/>
<a id="pl.46.3"></a><var>46.3</var><b>EFFECTIVE DATE.</b>This section is effective for taxes due and payable after <br/>
<a id="pl.46.4"></a><var>46.4</var>June 30, 2012.<br/>
<br/>
<a id="bill.3.0.0"></a>

<a id="bill.3.1.0"></a><a id="pl.46.7"></a><var>46.7</var>    Section 1. Minnesota Statutes 2010, section 6.91, subdivision 2, is amended to read:<br/>
<a id="pl.46.8"></a><var>46.8</var>    Subd. 2. <b>Benefits of participation.</b> (a) A county or city that elects to participate in <br/>
<a id="pl.46.9"></a><var>46.9</var>the standard measures program for 2011 is: (1) eligible for per capita reimbursement of <br/>
<a id="pl.46.10"></a><var>46.10</var>$0.14 per capita, but not to exceed $25,000 for any government entity; and (2) exempt <br/>
<a id="pl.46.11"></a><var>46.11</var>from levy limits under sections 
         <statute_ref>275.70</statute_ref> to 
         <statute_ref>275.74</statute_ref> for taxes payable in 2012, if levy limits <br/>
<a id="pl.46.12"></a><var>46.12</var>are in effect.<br/>
<a id="pl.46.13"></a><var>46.13</var>(b) Any county or city that elects to participate in the standard measures program <br/>
<a id="pl.46.14"></a><var>46.14</var>for 2012 is eligible for per capita reimbursement of $0.14 per capita, but not to exceed <br/>
<a id="pl.46.15"></a><var>46.15</var>$25,000 for any government entity, provided that for 2012, a county or city with a <br/>
<a id="pl.46.16"></a><var>46.16</var>population over 2,500 must also participate in the expenditure-type reporting under section <br/>
<a id="pl.46.17"></a><var>46.17</var>471.703 in order to be eligible. Any jurisdiction participating in the comprehensive <br/>
<a id="pl.46.18"></a><var>46.18</var>performance measurement program is exempt from levy limits under sections 
         <statute_ref>275.70</statute_ref> to <br/>
<statute_ref><a id="pl.46.19"></a><var>46.19</var>275.74
         </statute_ref> for taxes payable in 2013 if levy limits are in effect.<br/>
<a id="pl.46.20"></a><var>46.20</var>(c) Any county or city that elects to participate in the standard measures program for <br/>
<a id="pl.46.21"></a><var>46.21</var>2013 or any year thereafter is eligible for per capita reimbursement of $0.14 per capita, <br/>
<a id="pl.46.22"></a><var>46.22</var>but not to exceed $25,000 for any government entity. Any jurisdiction participating in <br/>
<a id="pl.46.23"></a><var>46.23</var>the comprehensive performance measurement program for 2013 or any year thereafter is <br/>
<a id="pl.46.24"></a><var>46.24</var>exempt from levy limits under sections 
         <statute_ref>275.70</statute_ref> to 
         <statute_ref>275.74</statute_ref> for taxes payable in the following <br/>
<a id="pl.46.25"></a><var>46.25</var>year, if levy limits are in effect.<br/>
<a id="pl.46.26"></a><var>46.26</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.2.0"></a><a id="pl.46.27"></a><var>46.27</var>    Sec. 2. Minnesota Statutes 2011 Supplement, section 124D.4531, subdivision 1, <br/>
<a id="pl.46.28"></a><var>46.28</var>is amended to read:<br/>
<a id="pl.46.29"></a><var>46.29</var>    Subdivision 1. <b>Career and technical levy.</b> (a) A district with a career and technical <br/>
<a id="pl.46.30"></a><var>46.30</var>program approved under this section for the fiscal year in which the levy is certified <br/>
<a id="pl.46.31"></a><var>46.31</var>may levy an amount equal to the greater of:<br/>
<a id="pl.46.32"></a><var>46.32</var>(1) $80 times the district's average daily membership in grades 9 through 12 for the <br/>
<a id="pl.46.33"></a><var>46.33</var>fiscal year in which the levy is certified; or<br/>
<a id="pl.47.1"></a><var>47.1</var>(2) 35 percent of approved expenditures in the fiscal year in which the levy is <br/>
<a id="pl.47.2"></a><var>47.2</var>certified for the following:<br/>
<a id="pl.47.3"></a><var>47.3</var>(i) salaries paid to essential, licensed personnel providing direct instructional <br/>
<a id="pl.47.4"></a><var>47.4</var>services to students in that fiscal year, including extended contracts, for services rendered <br/>
<a id="pl.47.5"></a><var>47.5</var>in the district's approved career and technical education programs;<br/>
<a id="pl.47.6"></a><var>47.6</var>(ii) contracted services provided by a public or private agency other than a Minnesota <br/>
<a id="pl.47.7"></a><var>47.7</var>school district or cooperative center under subdivision 7;<br/>
<a id="pl.47.8"></a><var>47.8</var>(iii) necessary travel between instructional sites by licensed career and technical <br/>
<a id="pl.47.9"></a><var>47.9</var>education personnel;<br/>
<a id="pl.47.10"></a><var>47.10</var>(iv) necessary travel by licensed career and technical education personnel for <br/>
<a id="pl.47.11"></a><var>47.11</var>vocational student organization activities held within the state for instructional purposes;<br/>
<a id="pl.47.12"></a><var>47.12</var>(v) curriculum development activities that are part of a five-year plan for <br/>
<a id="pl.47.13"></a><var>47.13</var>improvement based on program assessment;<br/>
<a id="pl.47.14"></a><var>47.14</var>(vi) necessary travel by licensed career and technical education personnel for <br/>
<a id="pl.47.15"></a><var>47.15</var>noncollegiate credit-bearing professional development; and<br/>
<a id="pl.47.16"></a><var>47.16</var>(vii) specialized vocational instructional supplies.<br/>
<a id="pl.47.17"></a><var>47.17</var>(b) Up to ten percent of a district's career and technical levy may be spent on <br/>
<a id="pl.47.18"></a><var>47.18</var>equipment purchases. Districts using the career and technical levy for equipment <br/>
<a id="pl.47.19"></a><var>47.19</var>purchases must report to the department on the improved learning opportunities for <br/>
<a id="pl.47.20"></a><var>47.20</var>students that result from the investment in equipment.<br/>
<a id="pl.47.21"></a><var>47.21</var>(c) The district must recognize the full amount of this levy as revenue for the fiscal <br/>
<a id="pl.47.22"></a><var>47.22</var>year in which it is certified.<br/>
<a id="pl.47.23"></a><var>47.23</var>(d) The amount of the levy certified under this subdivision may not exceed <br/>
<a id="pl.47.24"></a><var>47.24</var>$17,850,000 for taxes payable in 2012, $15,520,000 for taxes payable in 2013, and <br/>
<a id="pl.47.25"></a><var>47.25</var>$15,545,000 for taxes payable in 2014.<br/>
<a id="pl.47.26"></a><var>47.26</var>(e) If the estimated levy exceeds the amount in paragraph (d), the commissioner <br/>
<a id="pl.47.27"></a><var>47.27</var>must reduce the percentage in paragraph (a), clause (2), until the estimated levy no longer <br/>
<a id="pl.47.28"></a><var>47.28</var>exceeds the limit in paragraph (d).<br/>
<a id="pl.47.29"></a><var>47.29</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2012 and later.<br/>
<br/>
<a id="bill.3.3.0"></a><a id="pl.47.30"></a><var>47.30</var>    Sec. 3. Minnesota Statutes 2011 Supplement, section 126C.40, subdivision 1, is <br/>
<a id="pl.47.31"></a><var>47.31</var>amended to read:<br/>
<a id="pl.47.32"></a><var>47.32</var>    Subdivision 1. <b>To lease building or land.</b> (a) When an independent or a special <br/>
<a id="pl.47.33"></a><var>47.33</var>school district or a group of independent or special school districts finds it economically <br/>
<a id="pl.47.34"></a><var>47.34</var>advantageous to rent or lease a building or land for any instructional purposes or for <br/>
<a id="pl.47.35"></a><var>47.35</var>school storage or furniture repair, and it determines that the operating capital revenue <br/>
<a id="pl.48.1"></a><var>48.1</var>authorized under section 
         <statute_ref>126C.10, subdivision 13</statute_ref>, is insufficient for this purpose, it may <br/>
<a id="pl.48.2"></a><var>48.2</var>apply to the commissioner for permission to make an additional capital expenditure levy <br/>
<a id="pl.48.3"></a><var>48.3</var>for this purpose. An application for permission to levy under this subdivision must contain <br/>
<a id="pl.48.4"></a><var>48.4</var>financial justification for the proposed levy, the terms and conditions of the proposed <br/>
<a id="pl.48.5"></a><var>48.5</var>lease, and a description of the space to be leased and its proposed use.<br/>
<a id="pl.48.6"></a><var>48.6</var>    (b) The criteria for approval of applications to levy under this subdivision must <br/>
<a id="pl.48.7"></a><var>48.7</var>include: the reasonableness of the price, the appropriateness of the space to the proposed <br/>
<a id="pl.48.8"></a><var>48.8</var>activity, the feasibility of transporting pupils to the leased building or land, conformity <br/>
<a id="pl.48.9"></a><var>48.9</var>of the lease to the laws and rules of the state of Minnesota, and the appropriateness of <br/>
<a id="pl.48.10"></a><var>48.10</var>the proposed lease to the space needs and the financial condition of the district. The <br/>
<a id="pl.48.11"></a><var>48.11</var>commissioner must not authorize a levy under this subdivision in an amount greater than <br/>
<a id="pl.48.12"></a><var>48.12</var>the cost to the district of renting or leasing a building or land for approved purposes. <br/>
<a id="pl.48.13"></a><var>48.13</var>The proceeds of this levy must not be used for custodial or other maintenance services. <br/>
<a id="pl.48.14"></a><var>48.14</var>A district may not levy under this subdivision for the purpose of leasing or renting a <br/>
<a id="pl.48.15"></a><var>48.15</var>district-owned building or site to itself.<br/>
<a id="pl.48.16"></a><var>48.16</var>    (c) For agreements finalized after July 1, 1997, a district may not levy under this <br/>
<a id="pl.48.17"></a><var>48.17</var>subdivision for the purpose of leasing: (1) a newly constructed building used primarily <br/>
<a id="pl.48.18"></a><var>48.18</var>for regular kindergarten, elementary, or secondary instruction; or (2) a newly constructed <br/>
<a id="pl.48.19"></a><var>48.19</var>building addition or additions used primarily for regular kindergarten, elementary, or <br/>
<a id="pl.48.20"></a><var>48.20</var>secondary instruction that contains more than 20 percent of the square footage of the <br/>
<a id="pl.48.21"></a><var>48.21</var>previously existing building.<br/>
<a id="pl.48.22"></a><var>48.22</var>    (d) Notwithstanding paragraph (b), a district may levy under this subdivision for the <br/>
<a id="pl.48.23"></a><var>48.23</var>purpose of leasing or renting a district-owned building or site to itself only if the amount <br/>
<a id="pl.48.24"></a><var>48.24</var>is needed by the district to make payments required by a lease purchase agreement, <br/>
<a id="pl.48.25"></a><var>48.25</var>installment purchase agreement, or other deferred payments agreement authorized by law, <br/>
<a id="pl.48.26"></a><var>48.26</var>and the levy meets the requirements of paragraph (c). A levy authorized for a district by <br/>
<a id="pl.48.27"></a><var>48.27</var>the commissioner under this paragraph may be in the amount needed by the district to <br/>
<a id="pl.48.28"></a><var>48.28</var>make payments required by a lease purchase agreement, installment purchase agreement, <br/>
<a id="pl.48.29"></a><var>48.29</var>or other deferred payments agreement authorized by law, provided that any agreement <br/>
<a id="pl.48.30"></a><var>48.30</var>include a provision giving the school districts the right to terminate the agreement <br/>
<a id="pl.48.31"></a><var>48.31</var>annually without penalty.<br/>
<a id="pl.48.32"></a><var>48.32</var>    (e) The total levy under this subdivision for a district for any year must not exceed <br/>
<a id="pl.48.33"></a><var>48.33</var>$150 times the resident pupil units for the fiscal year to which the levy is attributable.<br/>
<a id="pl.48.34"></a><var>48.34</var>    (f) For agreements for which a review and comment have been submitted to the <br/>
<a id="pl.48.35"></a><var>48.35</var>Department of Education after April 1, 1998, the term "instructional purpose" as used in <br/>
<a id="pl.48.36"></a><var>48.36</var>this subdivision excludes expenditures on stadiums.<br/>
<a id="pl.49.1"></a><var>49.1</var>    (g) The commissioner of education may authorize a school district to exceed the <br/>
<a id="pl.49.2"></a><var>49.2</var>limit in paragraph (e) if the school district petitions the commissioner for approval. The <br/>
<a id="pl.49.3"></a><var>49.3</var>commissioner shall grant approval to a school district to exceed the limit in paragraph (e) <br/>
<a id="pl.49.4"></a><var>49.4</var>for not more than five years if the district meets the following criteria:<br/>
<a id="pl.49.5"></a><var>49.5</var>    (1) the school district has been experiencing pupil enrollment growth in the <br/>
<a id="pl.49.6"></a><var>49.6</var>preceding five years;<br/>
<a id="pl.49.7"></a><var>49.7</var>    (2) the purpose of the increased levy is in the long-term public interest;<br/>
<a id="pl.49.8"></a><var>49.8</var>    (3) the purpose of the increased levy promotes colocation of government services; <br/>
<a id="pl.49.9"></a><var>49.9</var>and<br/>
<a id="pl.49.10"></a><var>49.10</var>    (4) the purpose of the increased levy is in the long-term interest of the district by <br/>
<a id="pl.49.11"></a><var>49.11</var>avoiding over construction of school facilities.<br/>
<a id="pl.49.12"></a><var>49.12</var>    (h) A school district that is a member of an intermediate school district may include <br/>
<a id="pl.49.13"></a><var>49.13</var>in its authority under this section the costs associated with leases of administrative and <br/>
<a id="pl.49.14"></a><var>49.14</var>classroom space for intermediate school district programs. This authority must not exceed <br/>
<a id="pl.49.15"></a><var>49.15</var>$43 times the adjusted marginal cost pupil units of the member districts. This authority is <br/>
<a id="pl.49.16"></a><var>49.16</var>in addition to any other authority authorized under this section.<br/>
<a id="pl.49.17"></a><var>49.17</var>    (i) In addition to the allowable capital levies in paragraph (a), for taxes payable in <br/>
<a id="pl.49.18"></a><var>49.18</var>2012 to 2023, a district that is a member of the "Technology and Information Education <br/>
<a id="pl.49.19"></a><var>49.19</var>Systems" data processing joint board, that finds it economically advantageous to enter into <br/>
<a id="pl.49.20"></a><var>49.20</var>a lease agreement to finance improvements to a building and land for a group of school <br/>
<a id="pl.49.21"></a><var>49.21</var>districts or special school districts for staff development purposes, may levy for its portion <br/>
<a id="pl.49.22"></a><var>49.22</var>of lease costs attributed to the district within the total levy limit in paragraph (e). The total <br/>
<a id="pl.49.23"></a><var>49.23</var>levy authority under this paragraph shall not exceed $632,000.<br/>
<a id="pl.49.24"></a><var>49.24</var>(j) In addition to the allowable capital levies in paragraph (a), a school district <br/>
<a id="pl.49.25"></a><var>49.25</var>that is a member of the St. Croix River Education District that finds it economically <br/>
<a id="pl.49.26"></a><var>49.26</var>advantageous to enter into a lease purchase agreement for a building and land for the St. <br/>
<a id="pl.49.27"></a><var>49.27</var>Croix River Education District may levy for its portion of lease costs attributed to the <br/>
<a id="pl.49.28"></a><var>49.28</var>district within the total levy limit in paragraph (e). The authority under this paragraph is <br/>
<a id="pl.49.29"></a><var>49.29</var>effective for taxes payable in 2013 to 2028.<br/>
<a id="pl.49.30"></a><var>49.30</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2013 and later.<br/>
<br/>
<a id="bill.3.4.0"></a><a id="pl.49.31"></a><var>49.31</var>    Sec. 4. Minnesota Statutes 2010, section 275.025, subdivision 1, is amended to read:<br/>
<a id="pl.49.32"></a><var>49.32</var>    Subdivision 1. <b>Levy amount.</b> The state general levy is levied against <br/>
<a id="pl.49.33"></a><var>49.33</var>commercial-industrial property and seasonal residential recreational property, as defined <br/>
<a id="pl.49.34"></a><var>49.34</var>in this section. The state general levy base amount for commercial-industrial property <br/>
<a id="pl.49.35"></a><var>49.35</var>is $592,000,000 $742,000,000 for taxes payable in 2002 2013 through 2016. The state <br/>
<a id="pl.50.1"></a><var>50.1</var>general levy base amount for seasonal recreational property is $41,200,000 for taxes <br/>
<a id="pl.50.2"></a><var>50.2</var>payable in 2013 through 2016. For taxes payable in subsequent years, the levy base <br/>
<a id="pl.50.3"></a><var>50.3</var>amount is increased each year by multiplying the levy base amount for the prior year by <br/>
<a id="pl.50.4"></a><var>50.4</var>the sum of one plus the rate of increase, if any, in the implicit price deflator for government <br/>
<a id="pl.50.5"></a><var>50.5</var>consumption expenditures and gross investment for state and local governments prepared <br/>
<a id="pl.50.6"></a><var>50.6</var>by the Bureau of Economic Analysts of the United States Department of Commerce for the <br/>
<a id="pl.50.7"></a><var>50.7</var>12-month period ending March 31 of the year prior to the year the taxes are payable. For <br/>
<a id="pl.50.8"></a><var>50.8</var>taxes payable in 2017, the state general levy is $668,700,000 for commercial-industrial <br/>
<a id="pl.50.9"></a><var>50.9</var>property and $36,450,000 for seasonal residential recreational property. For taxes payable <br/>
<a id="pl.50.10"></a><var>50.10</var>in 2018, the state general levy is $594,400,000 for commercial-industrial property <br/>
<a id="pl.50.11"></a><var>50.11</var>and $32,400,000 for seasonal residential recreational property. For taxes payable in <br/>
<a id="pl.50.12"></a><var>50.12</var>2019, the state general levy is $520,100,000 for commercial-industrial property and <br/>
<a id="pl.50.13"></a><var>50.13</var>$28,350,000 for seasonal residential recreational property. For taxes payable in 2020, the <br/>
<a id="pl.50.14"></a><var>50.14</var>state general levy is $445,800,000 for commercial-industrial property and $24,300,000 <br/>
<a id="pl.50.15"></a><var>50.15</var>for seasonal residential recreational property. For taxes payable in 2021, the state <br/>
<a id="pl.50.16"></a><var>50.16</var>general levy is $371,500,000 for commercial-industrial property and $20,250,000 <br/>
<a id="pl.50.17"></a><var>50.17</var>for seasonal residential recreational property. For taxes payable in 2022, the state <br/>
<a id="pl.50.18"></a><var>50.18</var>general levy is $297,200,000 for commercial-industrial property and $16,200,000 for <br/>
<a id="pl.50.19"></a><var>50.19</var>seasonal residential recreational property. For taxes payable in 2023, the state general <br/>
<a id="pl.50.20"></a><var>50.20</var>levy is $222,900,000 for commercial-industrial property and $12,150,000 for seasonal <br/>
<a id="pl.50.21"></a><var>50.21</var>residential recreational property. For taxes payable in 2024, the state general levy is <br/>
<a id="pl.50.22"></a><var>50.22</var>$148,600,000 for commercial-industrial property and $8,100,000 for seasonal residential <br/>
<a id="pl.50.23"></a><var>50.23</var>recreational property. For taxes payable in 2025, the state general levy is $74,300,000 <br/>
<a id="pl.50.24"></a><var>50.24</var>for commercial-industrial property and $4,050,000 for seasonal residential recreational <br/>
<a id="pl.50.25"></a><var>50.25</var>property. The tax under this section is not treated as a local tax rate under section 
         <statute_ref>469.177</statute_ref> <br/>
<a id="pl.50.26"></a><var>50.26</var>and is not the levy of a governmental unit under chapters 276A and 473F.<br/>
<a id="pl.50.27"></a><var>50.27</var>The commissioner shall increase or decrease the preliminary or final rate for a year <br/>
<a id="pl.50.28"></a><var>50.28</var>as necessary to account for errors and tax base changes that affected a preliminary or final <br/>
<a id="pl.50.29"></a><var>50.29</var>rate for either of the two preceding years. Adjustments are allowed to the extent that the <br/>
<a id="pl.50.30"></a><var>50.30</var>necessary information is available to the commissioner at the time the rates for a year must <br/>
<a id="pl.50.31"></a><var>50.31</var>be certified, and for the following reasons:<br/>
<a id="pl.50.32"></a><var>50.32</var>(1) an erroneous report of taxable value by a local official;<br/>
<a id="pl.50.33"></a><var>50.33</var>(2) an erroneous calculation by the commissioner; and<br/>
<a id="pl.50.34"></a><var>50.34</var>(3) an increase or decrease in taxable value for commercial-industrial or seasonal <br/>
<a id="pl.50.35"></a><var>50.35</var>residential recreational property reported on the abstracts of tax lists submitted under <br/>
<a id="pl.51.1"></a><var>51.1</var>section 
         <statute_ref>275.29</statute_ref> that was not reported on the abstracts of assessment submitted under <br/>
<a id="pl.51.2"></a><var>51.2</var>section 
         <statute_ref>270C.89</statute_ref> for the same year.<br/>
<a id="pl.51.3"></a><var>51.3</var>The commissioner may, but need not, make adjustments if the total difference in the tax <br/>
<a id="pl.51.4"></a><var>51.4</var>levied for the year would be less than $100,000.<br/>
<a id="pl.51.5"></a><var>51.5</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2013 and <br/>
<a id="pl.51.6"></a><var>51.6</var>thereafter.<br/>
<br/>
<a id="bill.3.5.0"></a><a id="pl.51.7"></a><var>51.7</var>    Sec. 5. Minnesota Statutes 2010, section 275.025, subdivision 4, is amended to read:<br/>
<a id="pl.51.8"></a><var>51.8</var>    Subd. 4. <b>Apportionment and levy of state general tax.</b> Ninety-five percent of The <br/>
<a id="pl.51.9"></a><var>51.9</var>state general tax must be levied by applying a uniform rate to all commercial-industrial tax <br/>
<a id="pl.51.10"></a><var>51.10</var>capacity and five percent of the state general tax must be levied by applying a uniform <br/>
<a id="pl.51.11"></a><var>51.11</var>rate to all seasonal residential recreational tax capacity. On or before October 1 each <br/>
<a id="pl.51.12"></a><var>51.12</var>year, the commissioner of revenue shall certify the preliminary state general levy rates to <br/>
<a id="pl.51.13"></a><var>51.13</var>each county auditor that must be used to prepare the notices of proposed property taxes <br/>
<a id="pl.51.14"></a><var>51.14</var>for taxes payable in the following year. By January 1 of each year, the commissioner <br/>
<a id="pl.51.15"></a><var>51.15</var>shall certify the final state general levy rate rates to each county auditor that shall be <br/>
<a id="pl.51.16"></a><var>51.16</var>used in spreading taxes.<br/>
<a id="pl.51.17"></a><var>51.17</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2013 and <br/>
<a id="pl.51.18"></a><var>51.18</var>thereafter.<br/>
<br/>
<a id="bill.3.6.0"></a><a id="pl.51.19"></a><var>51.19</var>    Sec. 6. Minnesota Statutes 2010, section 275.065, subdivision 1, is amended to read:<br/>
<a id="pl.51.20"></a><var>51.20</var>    Subdivision 1. <b>Proposed levy.</b> (a) Notwithstanding any law or charter to the <br/>
<a id="pl.51.21"></a><var>51.21</var>contrary, on or before September 15, each taxing authority, other than a school district, <br/>
<a id="pl.51.22"></a><var>51.22</var>shall adopt a proposed budget and shall certify to the county auditor the proposed or, in <br/>
<a id="pl.51.23"></a><var>51.23</var>the case of a town, the final property tax levy for taxes payable in the following year. All <br/>
<a id="pl.51.24"></a><var>51.24</var>counties and home rule charter or statutory cities with a population of more than 2,500, <br/>
<a id="pl.51.25"></a><var>51.25</var>shall also provide to the county auditor the county or city Web site, if there is one, where <br/>
<a id="pl.51.26"></a><var>51.26</var>the public is able to access the budget information required to be reported under section <br/>
<a id="pl.51.27"></a><var>51.27</var>471.703.<br/>
<a id="pl.51.28"></a><var>51.28</var>    (b) On or before September 30, each school district that has not mutually agreed <br/>
<a id="pl.51.29"></a><var>51.29</var>with its home county to extend this date shall certify to the county auditor the proposed <br/>
<a id="pl.51.30"></a><var>51.30</var>property tax levy for taxes payable in the following year. Each school district that has <br/>
<a id="pl.51.31"></a><var>51.31</var>agreed with its home county to delay the certification of its proposed property tax levy <br/>
<a id="pl.51.32"></a><var>51.32</var>must certify its proposed property tax levy for the following year no later than October <br/>
<a id="pl.51.33"></a><var>51.33</var>7. The school district shall certify the proposed levy as:<br/>
<a id="pl.52.1"></a><var>52.1</var>    (1) a specific dollar amount by school district fund, broken down between <br/>
<a id="pl.52.2"></a><var>52.2</var>voter-approved and non-voter-approved levies and between referendum market value <br/>
<a id="pl.52.3"></a><var>52.3</var>and tax capacity levies; or<br/>
<a id="pl.52.4"></a><var>52.4</var>    (2) the maximum levy limitation certified by the commissioner of education <br/>
<a id="pl.52.5"></a><var>52.5</var>according to section 
         <statute_ref>126C.48, subdivision 1</statute_ref>.<br/>
<a id="pl.52.6"></a><var>52.6</var>    (c) If the board of estimate and taxation or any similar board that establishes <br/>
<a id="pl.52.7"></a><var>52.7</var>maximum tax levies for taxing jurisdictions within a first class city certifies the maximum <br/>
<a id="pl.52.8"></a><var>52.8</var>property tax levies for funds under its jurisdiction by charter to the county auditor by <br/>
<a id="pl.52.9"></a><var>52.9</var>September 15, the city shall be deemed to have certified its levies for those taxing <br/>
<a id="pl.52.10"></a><var>52.10</var>jurisdictions.<br/>
<a id="pl.52.11"></a><var>52.11</var>    (d) For purposes of this section, "taxing authority" includes all home rule and <br/>
<a id="pl.52.12"></a><var>52.12</var>statutory cities, towns, counties, school districts, and special taxing districts as defined <br/>
<a id="pl.52.13"></a><var>52.13</var>in section 
         <statute_ref>275.066</statute_ref>. Intermediate school districts that levy a tax under chapter 124 or <br/>
<a id="pl.52.14"></a><var>52.14</var>136D, joint powers boards established under sections 
         <statute_ref>123A.44</statute_ref> to 
         <statute_ref>123A.446</statute_ref>, and Common <br/>
<a id="pl.52.15"></a><var>52.15</var>School Districts No. 323, Franconia, and No. 815, Prinsburg, are also special taxing <br/>
<a id="pl.52.16"></a><var>52.16</var>districts for purposes of this section.<br/>
<a id="pl.52.17"></a><var>52.17</var>(e) At the meeting at which the taxing authority, other than a town, adopts its <br/>
<a id="pl.52.18"></a><var>52.18</var>proposed tax levy under paragraph (a) or (b), the taxing authority shall announce the <br/>
<a id="pl.52.19"></a><var>52.19</var>time and place of its subsequent regularly scheduled meetings at which the budget and <br/>
<a id="pl.52.20"></a><var>52.20</var>levy will be discussed and at which the public will be allowed to speak. The time and <br/>
<a id="pl.52.21"></a><var>52.21</var>place of those meetings The following information must be included in the proceedings <br/>
<a id="pl.52.22"></a><var>52.22</var>or summary of proceedings published in the official newspaper of the taxing authority <br/>
<a id="pl.52.23"></a><var>52.23</var>under section 
         <statute_ref>123B.09</statute_ref>, 
         <statute_ref>375.12</statute_ref>, or 
         <statute_ref>412.191</statute_ref>:<br/>
<a id="pl.52.24"></a><var>52.24</var>(1) the time and place of the meetings described in this paragraph; and<br/>
<a id="pl.52.25"></a><var>52.25</var>(2) a statement that the budget information required to be reported under section <br/>
<a id="pl.52.26"></a><var>52.26</var>471.703 is available on the county or city Web site, if there is one.<br/>
<a id="pl.52.27"></a><var>52.27</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2012.<br/>
<br/>
<a id="bill.3.7.0"></a><a id="pl.52.28"></a><var>52.28</var>    Sec. 7. Minnesota Statutes 2010, section 275.065, subdivision 3, is amended to read:<br/>
<a id="pl.52.29"></a><var>52.29</var>    Subd. 3. <b>Notice of proposed property taxes.</b> (a) The county auditor shall prepare <br/>
<a id="pl.52.30"></a><var>52.30</var>and the county treasurer shall deliver after November 10 and on or before November 24 <br/>
<a id="pl.52.31"></a><var>52.31</var>each year, by first class mail to each taxpayer at the address listed on the county's current <br/>
<a id="pl.52.32"></a><var>52.32</var>year's assessment roll, a notice of proposed property taxes. Upon written request by <br/>
<a id="pl.52.33"></a><var>52.33</var>the taxpayer, the treasurer may send the notice in electronic form or by electronic mail <br/>
<a id="pl.52.34"></a><var>52.34</var>instead of on paper or by ordinary mail.<br/>
<a id="pl.52.35"></a><var>52.35</var>    (b) The commissioner of revenue shall prescribe the form of the notice.<br/>
<a id="pl.53.1"></a><var>53.1</var>    (c) The notice must inform taxpayers that it contains the amount of property taxes <br/>
<a id="pl.53.2"></a><var>53.2</var>each taxing authority proposes to collect for taxes payable the following year. In the <br/>
<a id="pl.53.3"></a><var>53.3</var>case of a town, or in the case of the state general tax, the final tax amount will be its <br/>
<a id="pl.53.4"></a><var>53.4</var>proposed tax. The notice must clearly state for each city that has a population over 500, <br/>
<a id="pl.53.5"></a><var>53.5</var>county, school district, regional library authority established under section 
         <statute_ref>134.201</statute_ref>, and <br/>
<a id="pl.53.6"></a><var>53.6</var>metropolitan taxing districts as defined in paragraph (i), the time and place of a meeting <br/>
<a id="pl.53.7"></a><var>53.7</var>for each taxing authority in which the budget and levy will be discussed and public input <br/>
<a id="pl.53.8"></a><var>53.8</var>allowed, prior to the final budget and levy determination. The notice must clearly state <br/>
<a id="pl.53.9"></a><var>53.9</var>for each county and for each city with a population of more than 2,500 that the budget <br/>
<a id="pl.53.10"></a><var>53.10</var>information required to be reported under section 471.703 is available on the county or <br/>
<a id="pl.53.11"></a><var>53.11</var>city Web site, if there is one. The taxing authorities must provide the county auditor with <br/>
<a id="pl.53.12"></a><var>53.12</var>the information to be included in the notice on or before the time it certifies its proposed <br/>
<a id="pl.53.13"></a><var>53.13</var>levy under subdivision 1. The public must be allowed to speak at that meeting, which <br/>
<a id="pl.53.14"></a><var>53.14</var>must occur after November 24 and must not be held before 6:00 p.m. It must provide a <br/>
<a id="pl.53.15"></a><var>53.15</var>telephone number for the taxing authority that taxpayers may call if they have questions <br/>
<a id="pl.53.16"></a><var>53.16</var>related to the notice and an address where comments will be received by mail, except that <br/>
<a id="pl.53.17"></a><var>53.17</var>no notice required under this section shall be interpreted as requiring the printing of a <br/>
<a id="pl.53.18"></a><var>53.18</var>personal telephone number or address as the contact information for a taxing authority. If <br/>
<a id="pl.53.19"></a><var>53.19</var>a taxing authority does not maintain public offices where telephone calls can be received <br/>
<a id="pl.53.20"></a><var>53.20</var>by the authority, the authority may inform the county of the lack of a public telephone <br/>
<a id="pl.53.21"></a><var>53.21</var>number and the county shall not list a telephone number for that taxing authority.<br/>
<a id="pl.53.22"></a><var>53.22</var>    (d) The notice must state for each parcel:<br/>
<a id="pl.53.23"></a><var>53.23</var>    (1) the market value of the property as determined under section 
         <statute_ref>273.11</statute_ref>, and used <br/>
<a id="pl.53.24"></a><var>53.24</var>for computing property taxes payable in the following year and for taxes payable in the <br/>
<a id="pl.53.25"></a><var>53.25</var>current year as each appears in the records of the county assessor on November 1 of the <br/>
<a id="pl.53.26"></a><var>53.26</var>current year; and, in the case of residential property, whether the property is classified as <br/>
<a id="pl.53.27"></a><var>53.27</var>homestead or nonhomestead. The notice must clearly inform taxpayers of the years to <br/>
<a id="pl.53.28"></a><var>53.28</var>which the market values apply and that the values are final values;<br/>
<a id="pl.53.29"></a><var>53.29</var>    (2) the items listed below, shown separately by county, city or town, and state general <br/>
<a id="pl.53.30"></a><var>53.30</var>tax, net of the residential and agricultural homestead credit under section 
         <statute_ref>273.1384</statute_ref>, voter <br/>
<a id="pl.53.31"></a><var>53.31</var>approved school levy, other local school levy, and the sum of the special taxing districts, <br/>
<a id="pl.53.32"></a><var>53.32</var>and as a total of all taxing authorities:<br/>
<a id="pl.53.33"></a><var>53.33</var>    (i) the actual tax for taxes payable in the current year; and<br/>
<a id="pl.53.34"></a><var>53.34</var>    (ii) the proposed tax amount.<br/>
<a id="pl.54.1"></a><var>54.1</var>    If the county levy under clause (2) includes an amount for a lake improvement <br/>
<a id="pl.54.2"></a><var>54.2</var>district as defined under sections 
         <statute_ref>103B.501</statute_ref> to 
         <statute_ref>103B.581</statute_ref>, the amount attributable for that <br/>
<a id="pl.54.3"></a><var>54.3</var>purpose must be separately stated from the remaining county levy amount.<br/>
<a id="pl.54.4"></a><var>54.4</var>    In the case of a town or the state general tax, the final tax shall also be its proposed <br/>
<a id="pl.54.5"></a><var>54.5</var>tax unless the town changes its levy at a special town meeting under section 
         <statute_ref>365.52</statute_ref>. If a <br/>
<a id="pl.54.6"></a><var>54.6</var>school district has certified under section 
         <statute_ref>126C.17, subdivision 9</statute_ref>, that a referendum will <br/>
<a id="pl.54.7"></a><var>54.7</var>be held in the school district at the November general election, the county auditor must <br/>
<a id="pl.54.8"></a><var>54.8</var>note next to the school district's proposed amount that a referendum is pending and that, if <br/>
<a id="pl.54.9"></a><var>54.9</var>approved by the voters, the tax amount may be higher than shown on the notice. In the <br/>
<a id="pl.54.10"></a><var>54.10</var>case of the city of Minneapolis, the levy for Minneapolis Park and Recreation shall be <br/>
<a id="pl.54.11"></a><var>54.11</var>listed separately from the remaining amount of the city's levy. In the case of the city of <br/>
<a id="pl.54.12"></a><var>54.12</var>St. Paul, the levy for the St. Paul Library Agency must be listed separately from the <br/>
<a id="pl.54.13"></a><var>54.13</var>remaining amount of the city's levy. In the case of Ramsey County, any amount levied <br/>
<a id="pl.54.14"></a><var>54.14</var>under section 
         <statute_ref>134.07</statute_ref> may be listed separately from the remaining amount of the county's <br/>
<a id="pl.54.15"></a><var>54.15</var>levy. In the case of a parcel where tax increment or the fiscal disparities areawide tax <br/>
<a id="pl.54.16"></a><var>54.16</var>under chapter 276A or 473F applies, the proposed tax levy on the captured value or the <br/>
<a id="pl.54.17"></a><var>54.17</var>proposed tax levy on the tax capacity subject to the areawide tax must each be stated <br/>
<a id="pl.54.18"></a><var>54.18</var>separately and not included in the sum of the special taxing districts; and<br/>
<a id="pl.54.19"></a><var>54.19</var>    (3) the increase or decrease between the total taxes payable in the current year and <br/>
<a id="pl.54.20"></a><var>54.20</var>the total proposed taxes, expressed as a percentage.<br/>
<a id="pl.54.21"></a><var>54.21</var>    For purposes of this section, the amount of the tax on homesteads qualifying under <br/>
<a id="pl.54.22"></a><var>54.22</var>the senior citizens' property tax deferral program under chapter 290B is the total amount <br/>
<a id="pl.54.23"></a><var>54.23</var>of property tax before subtraction of the deferred property tax amount.<br/>
<a id="pl.54.24"></a><var>54.24</var>    (e) The notice must clearly state that the proposed or final taxes do not include <br/>
<a id="pl.54.25"></a><var>54.25</var>the following:<br/>
<a id="pl.54.26"></a><var>54.26</var>    (1) special assessments;<br/>
<a id="pl.54.27"></a><var>54.27</var>    (2) levies approved by the voters after the date the proposed taxes are certified, <br/>
<a id="pl.54.28"></a><var>54.28</var>including bond referenda and school district levy referenda;<br/>
<a id="pl.54.29"></a><var>54.29</var>    (3) a levy limit increase approved by the voters by the first Tuesday after the first <br/>
<a id="pl.54.30"></a><var>54.30</var>Monday in November of the levy year as provided under section 
         <statute_ref>275.73</statute_ref>;<br/>
<a id="pl.54.31"></a><var>54.31</var>    (4) amounts necessary to pay cleanup or other costs due to a natural disaster <br/>
<a id="pl.54.32"></a><var>54.32</var>occurring after the date the proposed taxes are certified;<br/>
<a id="pl.54.33"></a><var>54.33</var>    (5) amounts necessary to pay tort judgments against the taxing authority that become <br/>
<a id="pl.54.34"></a><var>54.34</var>final after the date the proposed taxes are certified; and<br/>
<a id="pl.54.35"></a><var>54.35</var>    (6) the contamination tax imposed on properties which received market value <br/>
<a id="pl.54.36"></a><var>54.36</var>reductions for contamination.<br/>
<a id="pl.55.1"></a><var>55.1</var>    (f) Except as provided in subdivision 7, failure of the county auditor to prepare or <br/>
<a id="pl.55.2"></a><var>55.2</var>the county treasurer to deliver the notice as required in this section does not invalidate the <br/>
<a id="pl.55.3"></a><var>55.3</var>proposed or final tax levy or the taxes payable pursuant to the tax levy.<br/>
<a id="pl.55.4"></a><var>55.4</var>    (g) If the notice the taxpayer receives under this section lists the property as <br/>
<a id="pl.55.5"></a><var>55.5</var>nonhomestead, and satisfactory documentation is provided to the county assessor by the <br/>
<a id="pl.55.6"></a><var>55.6</var>applicable deadline, and the property qualifies for the homestead classification in that <br/>
<a id="pl.55.7"></a><var>55.7</var>assessment year, the assessor shall reclassify the property to homestead for taxes payable <br/>
<a id="pl.55.8"></a><var>55.8</var>in the following year.<br/>
<a id="pl.55.9"></a><var>55.9</var>    (h) In the case of class 4 residential property used as a residence for lease or rental <br/>
<a id="pl.55.10"></a><var>55.10</var>periods of 30 days or more, the taxpayer must either:<br/>
<a id="pl.55.11"></a><var>55.11</var>    (1) mail or deliver a copy of the notice of proposed property taxes to each tenant, <br/>
<a id="pl.55.12"></a><var>55.12</var>renter, or lessee; or<br/>
<a id="pl.55.13"></a><var>55.13</var>    (2) post a copy of the notice in a conspicuous place on the premises of the property.<br/>
<a id="pl.55.14"></a><var>55.14</var>    The notice must be mailed or posted by the taxpayer by November 27 or within <br/>
<a id="pl.55.15"></a><var>55.15</var>three days of receipt of the notice, whichever is later. A taxpayer may notify the county <br/>
<a id="pl.55.16"></a><var>55.16</var>treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises to <br/>
<a id="pl.55.17"></a><var>55.17</var>which the notice must be mailed in order to fulfill the requirements of this paragraph.<br/>
<a id="pl.55.18"></a><var>55.18</var>    (i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing <br/>
<a id="pl.55.19"></a><var>55.19</var>districts" means the following taxing districts in the seven-county metropolitan area that <br/>
<a id="pl.55.20"></a><var>55.20</var>levy a property tax for any of the specified purposes listed below:<br/>
<a id="pl.55.21"></a><var>55.21</var>    (1) Metropolitan Council under section 
         <statute_ref>473.132</statute_ref>, 
         <statute_ref>473.167</statute_ref>, 
         <statute_ref>473.249</statute_ref>, 
         <statute_ref>473.325</statute_ref>, <br/>
<statute_ref><a id="pl.55.22"></a><var>55.22</var>473.446
         </statute_ref>, 
         <statute_ref>473.521</statute_ref>, 
         <statute_ref>473.547</statute_ref>, or 
         <statute_ref>473.834</statute_ref>;<br/>
<a id="pl.55.23"></a><var>55.23</var>    (2) Metropolitan Airports Commission under section 
         <statute_ref>473.667</statute_ref>, 
         <statute_ref>473.671</statute_ref>, or 
         <statute_ref>473.672</statute_ref>; <br/>
<a id="pl.55.24"></a><var>55.24</var>and<br/>
<a id="pl.55.25"></a><var>55.25</var>    (3) Metropolitan Mosquito Control Commission under section 
         <statute_ref>473.711</statute_ref>.<br/>
<a id="pl.55.26"></a><var>55.26</var>    For purposes of this section, any levies made by the regional rail authorities in the <br/>
<a id="pl.55.27"></a><var>55.27</var>county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter <br/>
<a id="pl.55.28"></a><var>55.28</var>398A shall be included with the appropriate county's levy.<br/>
<a id="pl.55.29"></a><var>55.29</var>    (j) The governing body of a county, city, or school district may, with the consent <br/>
<a id="pl.55.30"></a><var>55.30</var>of the county board, include supplemental information with the statement of proposed <br/>
<a id="pl.55.31"></a><var>55.31</var>property taxes about the impact of state aid increases or decreases on property tax <br/>
<a id="pl.55.32"></a><var>55.32</var>increases or decreases and on the level of services provided in the affected jurisdiction. <br/>
<a id="pl.55.33"></a><var>55.33</var>This supplemental information may include information for the following year, the current <br/>
<a id="pl.55.34"></a><var>55.34</var>year, and for as many consecutive preceding years as deemed appropriate by the governing <br/>
<a id="pl.55.35"></a><var>55.35</var>body of the county, city, or school district. It may include only information regarding:<br/>
<a id="pl.56.1"></a><var>56.1</var>    (1) the impact of inflation as measured by the implicit price deflator for state and <br/>
<a id="pl.56.2"></a><var>56.2</var>local government purchases;<br/>
<a id="pl.56.3"></a><var>56.3</var>    (2) population growth and decline;<br/>
<a id="pl.56.4"></a><var>56.4</var>    (3) state or federal government action; and<br/>
<a id="pl.56.5"></a><var>56.5</var>    (4) other financial factors that affect the level of property taxation and local services <br/>
<a id="pl.56.6"></a><var>56.6</var>that the governing body of the county, city, or school district may deem appropriate to <br/>
<a id="pl.56.7"></a><var>56.7</var>include.<br/>
<a id="pl.56.8"></a><var>56.8</var>    The information may be presented using tables, written narrative, and graphic <br/>
<a id="pl.56.9"></a><var>56.9</var>representations and may contain instruction toward further sources of information or <br/>
<a id="pl.56.10"></a><var>56.10</var>opportunity for comment.<br/>
<a id="pl.56.11"></a><var>56.11</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2012.<br/>
<br/>
<a id="bill.3.8.0"></a><a id="pl.56.12"></a><var>56.12</var>    Sec. 8. Minnesota Statutes 2010, section 290A.04, subdivision 2h, is amended to read:<br/>
<a id="pl.56.13"></a><var>56.13</var>    Subd. 2h. <b>Additional refund.</b> (a) If the gross property taxes payable on a homestead <br/>
<a id="pl.56.14"></a><var>56.14</var>increase more than 12 percent over the property taxes payable in the prior year on the same <br/>
<a id="pl.56.15"></a><var>56.15</var>property that is owned and occupied by the same owner on January 2 of both years, and the <br/>
<a id="pl.56.16"></a><var>56.16</var>amount of that increase is $100 or more, a claimant who is a homeowner shall be allowed <br/>
<a id="pl.56.17"></a><var>56.17</var>an additional refund equal to 60 75 percent of the amount of the increase over the greater <br/>
<a id="pl.56.18"></a><var>56.18</var>of 12 percent of the prior year's property taxes payable or $100. This subdivision shall not <br/>
<a id="pl.56.19"></a><var>56.19</var>apply to any increase in the gross property taxes payable attributable to improvements <br/>
<a id="pl.56.20"></a><var>56.20</var>made to the homestead after the assessment date for the prior year's taxes. This subdivision <br/>
<a id="pl.56.21"></a><var>56.21</var>shall not apply to any increase in the gross property taxes payable attributable to the <br/>
<a id="pl.56.22"></a><var>56.22</var>termination of valuation exclusions under section 
         <statute_ref>273.11, subdivision 16</statute_ref>.<br/>
<a id="pl.56.23"></a><var>56.23</var>The maximum refund allowed under this subdivision is $1,000.<br/>
<a id="pl.56.24"></a><var>56.24</var>(b) For purposes of this subdivision "gross property taxes payable" means property <br/>
<a id="pl.56.25"></a><var>56.25</var>taxes payable determined without regard to the refund allowed under this subdivision.<br/>
<a id="pl.56.26"></a><var>56.26</var>(c) In addition to the other proofs required by this chapter, each claimant under <br/>
<a id="pl.56.27"></a><var>56.27</var>this subdivision shall file with the property tax refund return a copy of the property tax <br/>
<a id="pl.56.28"></a><var>56.28</var>statement for taxes payable in the preceding year or other documents required by the <br/>
<a id="pl.56.29"></a><var>56.29</var>commissioner.<br/>
<a id="pl.56.30"></a><var>56.30</var>(d) Upon request, the appropriate county official shall make available the names and <br/>
<a id="pl.56.31"></a><var>56.31</var>addresses of the property taxpayers who may be eligible for the additional property tax <br/>
<a id="pl.56.32"></a><var>56.32</var>refund under this section. The information shall be provided on a magnetic computer <br/>
<a id="pl.56.33"></a><var>56.33</var>disk. The county may recover its costs by charging the person requesting the information <br/>
<a id="pl.56.34"></a><var>56.34</var>the reasonable cost for preparing the data. The information may not be used for any <br/>
<a id="pl.57.1"></a><var>57.1</var>purpose other than for notifying the homeowner of potential eligibility and assisting the <br/>
<a id="pl.57.2"></a><var>57.2</var>homeowner, without charge, in preparing a refund claim.<br/>
<a id="pl.57.3"></a><var>57.3</var><b>EFFECTIVE DATE.</b>This section is effective beginning with refunds based on <br/>
<a id="pl.57.4"></a><var>57.4</var>taxes payable in 2012.<br/>
<br/>
<a id="bill.3.9.0"></a><a id="pl.57.5"></a><var>57.5</var>    Sec. 9. <b>[471.703] EXPENDITURE TYPE REPORTING.</b><br/>
<a id="pl.57.6"></a><var>57.6</var>    Subdivision 1. <b>Purpose.</b> In order to facilitate involvement of the public in local <br/>
<a id="pl.57.7"></a><var>57.7</var>government budgeting, municipalities shall provide the following budgetary information <br/>
<a id="pl.57.8"></a><var>57.8</var>on a municipal Web site, except as provided in subdivision 4, and publicize the availability <br/>
<a id="pl.57.9"></a><var>57.9</var>of this information as part of the property tax and budget notices required in section <br/>
<a id="pl.57.10"></a><var>57.10</var>275.065.<br/>
<a id="pl.57.11"></a><var>57.11</var>    Subd. 2. <b>Definitions.</b> (a) For purposes of this section, the following terms have the <br/>
<a id="pl.57.12"></a><var>57.12</var>meanings given in this subdivision.<br/>
<a id="pl.57.13"></a><var>57.13</var>(b) "Municipality" means a county or a home rule charter or statutory city with a <br/>
<a id="pl.57.14"></a><var>57.14</var>population of more than 2,500.<br/>
<a id="pl.57.15"></a><var>57.15</var>(c) "Population" means the population of the municipality as established by the last <br/>
<a id="pl.57.16"></a><var>57.16</var>federal census, by a special census conducted under contract with the United States Bureau <br/>
<a id="pl.57.17"></a><var>57.17</var>of the Census, by a population estimate made by the Metropolitan Council pursuant to <br/>
<a id="pl.57.18"></a><var>57.18</var>section 
<statute_ref>473.24</statute_ref>, or by a population estimate of the state demographer made pursuant to <br/>
<a id="pl.57.19"></a><var>57.19</var>section 
<statute_ref>4A.02</statute_ref>, whichever is the most recent as to the stated date of the count or estimate for <br/>
<a id="pl.57.20"></a><var>57.20</var>the preceding calendar year, and which has been certified to the commissioner of revenue <br/>
<a id="pl.57.21"></a><var>57.21</var>on or before July 15 of the year in which the information is required to be reported.<br/>
<a id="pl.57.22"></a><var>57.22</var>    Subd. 3. <b>Electronic budgetary information.</b> (a) By July 31 of each year, a <br/>
<a id="pl.57.23"></a><var>57.23</var>municipality shall publish on its Web site, except as provided in subdivision 4, four years <br/>
<a id="pl.57.24"></a><var>57.24</var>of budget information on both revenues and expenditures organized by function and by <br/>
<a id="pl.57.25"></a><var>57.25</var>expenditure type. The four years shall include actual data from the three most recently <br/>
<a id="pl.57.26"></a><var>57.26</var>concluded budget years and estimated data for the current budget year.<br/>
<a id="pl.57.27"></a><var>57.27</var>(b) In addition to publications required by paragraph (a), the municipality must <br/>
<a id="pl.57.28"></a><var>57.28</var>publish the adopted final budget on the municipal Web site within 14 days of adoption of <br/>
<a id="pl.57.29"></a><var>57.29</var>the final budget. The published final budget must include information on both revenues <br/>
<a id="pl.57.30"></a><var>57.30</var>and expenditures organized by function and by expenditure type. The final budget must <br/>
<a id="pl.57.31"></a><var>57.31</var>remain on the municipal Web site for one year, or until replaced by the next final budget.<br/>
<a id="pl.57.32"></a><var>57.32</var>(c) The governmental funds included in the budget information required under <br/>
<a id="pl.57.33"></a><var>57.33</var>this section shall include the municipality's general fund, debt service fund, and special <br/>
<a id="pl.57.34"></a><var>57.34</var>revenue funds, except for special revenue funds specifically used for the acquisition and <br/>
<a id="pl.58.1"></a><var>58.1</var>construction of major capital facilities. The reported information shall also exclude <br/>
<a id="pl.58.2"></a><var>58.2</var>enterprise funds and fiduciary funds.<br/>
<a id="pl.58.3"></a><var>58.3</var>(d) The forms and reporting requirements for revenues and expenditures by function <br/>
<a id="pl.58.4"></a><var>58.4</var>shall be established by the state auditor's office and shall be based on the revenue and <br/>
<a id="pl.58.5"></a><var>58.5</var>expenditure breakdowns used by that office in the five-year summary tables for annual <br/>
<a id="pl.58.6"></a><var>58.6</var>revenue, expenditure, and debt reports for counties and cities with a population over <br/>
<a id="pl.58.7"></a><var>58.7</var>2,500, under section 6.75.<br/>
<a id="pl.58.8"></a><var>58.8</var>(e) The forms and reporting requirements for expenditures by expenditure type shall <br/>
<a id="pl.58.9"></a><var>58.9</var>be established by the state auditor's office and at minimum shall include the following line <br/>
<a id="pl.58.10"></a><var>58.10</var>items: employee costs, purchased services, supplies, central services, capital items, debt <br/>
<a id="pl.58.11"></a><var>58.11</var>service, transfer to other funds, and miscellaneous; with employee costs further subdivided <br/>
<a id="pl.58.12"></a><var>58.12</var>into the following items: wages and salaries, pensions, Social Security, health care, and <br/>
<a id="pl.58.13"></a><var>58.13</var>other benefits. The state auditor shall consult with the commissioner of management and <br/>
<a id="pl.58.14"></a><var>58.14</var>budget, city and county representatives, and members of the governmental accounting <br/>
<a id="pl.58.15"></a><var>58.15</var>community in developing the definition of expenditure types for reporting purposes.<br/>
<a id="pl.58.16"></a><var>58.16</var>    Subd. 4. <b>Alternative publication of budgetary information.</b> A municipality <br/>
<a id="pl.58.17"></a><var>58.17</var>that does not maintain an official Web site must either (1) set up a separate Web site to <br/>
<a id="pl.58.18"></a><var>58.18</var>make accessible the budgetary information as required in subdivision 3, or (2) publish the <br/>
<a id="pl.58.19"></a><var>58.19</var>same information required in subdivision 3 by August 31 of each year in one issue of the <br/>
<a id="pl.58.20"></a><var>58.20</var>official newspaper of the municipality. If a county publishes the information in its official <br/>
<a id="pl.58.21"></a><var>58.21</var>newspaper it must also publish the same information in one other newspaper, if one of <br/>
<a id="pl.58.22"></a><var>58.22</var>general circulation is located in a different city in the county than the official newspaper. <br/>
<a id="pl.58.23"></a><var>58.23</var>The state auditor must prescribe the form for the newspaper notice.<br/>
<a id="pl.58.24"></a><var>58.24</var>    Subd. 5. <b>Incentives.</b> In 2012 only, a city or county that complies with the <br/>
<a id="pl.58.25"></a><var>58.25</var>requirement of this section and section 6.91, subdivision 1, shall receive the benefits <br/>
<a id="pl.58.26"></a><var>58.26</var>pursuant to section 6.91, subdivision 2.<br/>
<a id="pl.58.27"></a><var>58.27</var>    Subd. 6. <b>Penalties.</b> In 2013 and thereafter, failure of a municipality to provide <br/>
<a id="pl.58.28"></a><var>58.28</var>the information required in this section shall result in the withholding of aids payable <br/>
<a id="pl.58.29"></a><var>58.29</var>the following calendar year under sections 162.01 to 162.14, 423A.02, and 477A.011 <br/>
<a id="pl.58.30"></a><var>58.30</var>to 477A.014.<br/>
<a id="pl.58.31"></a><var>58.31</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2012.<br/>
<br/>
<a id="bill.3.10.0"></a><a id="pl.58.32"></a><var>58.32</var>    Sec. 10. Minnesota Statutes 2011 Supplement, section 477A.013, subdivision 9, <br/>
<a id="pl.58.33"></a><var>58.33</var>is amended to read:<br/>
<a id="pl.58.34"></a><var>58.34</var>    Subd. 9. <b>City aid distribution.</b> (a) In calendar year 2013 only, each city will receive <br/>
<a id="pl.58.35"></a><var>58.35</var>an aid distribution equal to its aid distribution in 2012 under this section. In calendar year <br/>
<a id="pl.59.1"></a><var>59.1</var>2009 2014 and thereafter, each city shall receive an aid distribution equal to the sum of (1) <br/>
<a id="pl.59.2"></a><var>59.2</var>the city formula aid under subdivision 8, and (2) its city aid base.<br/>
<a id="pl.59.3"></a><var>59.3</var>    (b) For aids payable in 2013 only, the total aid in the previous year for any city <br/>
<a id="pl.59.4"></a><var>59.4</var>shall mean the amount of aid it was certified to receive for aids payable in 2012 under <br/>
<a id="pl.59.5"></a><var>59.5</var>this section. For aids payable in 2014 and thereafter, the total aid in the previous year <br/>
<a id="pl.59.6"></a><var>59.6</var>for any city means the amount of aid it was certified to receive under this section in the <br/>
<a id="pl.59.7"></a><var>59.7</var>previous payable year.<br/>
<a id="pl.59.8"></a><var>59.8</var>    (c) For aids payable in 2010 2014 and thereafter, the total aid for any city shall <br/>
<a id="pl.59.9"></a><var>59.9</var>not exceed the sum of (1) ten percent of the city's net levy for the year prior to the aid <br/>
<a id="pl.59.10"></a><var>59.10</var>distribution plus (2) its total aid in the previous year. For aids payable in 2009 2014 and <br/>
<a id="pl.59.11"></a><var>59.11</var>thereafter, the total aid for any city with a population of 2,500 or more may not be less <br/>
<a id="pl.59.12"></a><var>59.12</var>than its total aid under this section in the previous year minus the lesser of $10 multiplied <br/>
<a id="pl.59.13"></a><var>59.13</var>by its population, or ten percent of its net levy in the year prior to the aid distribution.<br/>
<a id="pl.59.14"></a><var>59.14</var>    (d) For aids payable in 2010 2014 and thereafter, the total aid for a city with a <br/>
<a id="pl.59.15"></a><var>59.15</var>population less than 2,500 must not be less than the amount it was certified to receive in <br/>
<a id="pl.59.16"></a><var>59.16</var>the previous year minus the lesser of $10 multiplied by its population, or five percent of its <br/>
<a id="pl.59.17"></a><var>59.17</var>2003 certified aid amount. For aids payable in 2009 only, the total aid for a city with a <br/>
<a id="pl.59.18"></a><var>59.18</var>population less than 2,500 must not be less than what it received under this section in the <br/>
<a id="pl.59.19"></a><var>59.19</var>previous year unless its total aid in calendar year 2008 was aid under section 
<statute_ref>477A.011</statute_ref>, <br/>
<a id="pl.59.20"></a><var>59.20</var>subdivision 36, paragraph (s), in which case its minimum aid is zero.<br/>
<a id="pl.59.21"></a><var>59.21</var>    (e) A city's aid loss under this section may not exceed $300,000 in any year in <br/>
<a id="pl.59.22"></a><var>59.22</var>which the total city aid appropriation under section 
         <statute_ref>477A.03, subdivision 2a</statute_ref>, is equal or <br/>
<a id="pl.59.23"></a><var>59.23</var>greater than the appropriation under that subdivision in the previous year, unless the <br/>
<a id="pl.59.24"></a><var>59.24</var>city has an adjustment in its city net tax capacity under the process described in section <br/>
<statute_ref><a id="pl.59.25"></a><var>59.25</var>469.174, subdivision 28
         </statute_ref>.<br/>
<a id="pl.59.26"></a><var>59.26</var>    (f) If a city's net tax capacity used in calculating aid under this section has decreased <br/>
<a id="pl.59.27"></a><var>59.27</var>in any year by more than 25 percent from its net tax capacity in the previous year due to <br/>
<a id="pl.59.28"></a><var>59.28</var>property becoming tax-exempt Indian land, the city's maximum allowed aid increase <br/>
<a id="pl.59.29"></a><var>59.29</var>under paragraph (c) shall be increased by an amount equal to (1) the city's tax rate in the <br/>
<a id="pl.59.30"></a><var>59.30</var>year of the aid calculation, multiplied by (2) the amount of its net tax capacity decrease <br/>
<a id="pl.59.31"></a><var>59.31</var>resulting from the property becoming tax exempt.<br/>
<a id="pl.59.32"></a><var>59.32</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.59.33"></a><var>59.33</var>2013 and thereafter.<br/>
<br/>
<a id="bill.3.11.0"></a><a id="pl.59.34"></a><var>59.34</var>    Sec. 11. Minnesota Statutes 2011 Supplement, section 477A.03, subdivision 2a, <br/>
<a id="pl.59.35"></a><var>59.35</var>is amended to read:<br/>
<a id="pl.60.1"></a><var>60.1</var>    Subd. 2a. <b>Cities.</b> For aids payable in 2013 2014 and thereafter, the total aid paid <br/>
<a id="pl.60.2"></a><var>60.2</var>under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, is $426,438,012.<br/>
<a id="pl.60.3"></a><var>60.3</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.60.4"></a><var>60.4</var>2013 and thereafter.<br/>
<br/>
<a id="bill.3.12.0"></a><a id="pl.60.5"></a><var>60.5</var>    Sec. 12. <b>CAREER AND TECHNICAL LEVY LIMITATION, PAYABLE  IN 2012.</b><br/>
<a id="pl.60.6"></a><var>60.6</var>Notwithstanding Minnesota Statutes, section 124D.4531, subdivision 1, the amount <br/>
<a id="pl.60.7"></a><var>60.7</var>of the levy certified under Minnesota Statutes, section 124D.4531, subdivision 1, may not <br/>
<a id="pl.60.8"></a><var>60.8</var>exceed $17,850,000 for taxes payable in 2012.<br/>
<a id="pl.60.9"></a><var>60.9</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2012 only.<br/>
<br/>
<a id="bill.3.13.0"></a><a id="pl.60.10"></a><var>60.10</var>    Sec. 13. <b>LEASE LEVY; ADMINISTRATIVE SPACE.</b><br/>
<a id="pl.60.11"></a><var>60.11</var>    Subdivision 1. <b>Faribault.</b> Notwithstanding Minnesota Statutes, section 126C.40, <br/>
<a id="pl.60.12"></a><var>60.12</var>subdivision 1, Independent School District No. 656, Faribault, may lease administrative <br/>
<a id="pl.60.13"></a><var>60.13</var>space under Minnesota Statutes, section 126C.40, subdivision 1, if the district can <br/>
<a id="pl.60.14"></a><var>60.14</var>demonstrate to the satisfaction of the commissioner of education that the administrative <br/>
<a id="pl.60.15"></a><var>60.15</var>space is less expensive than instructional space that the district would otherwise lease. <br/>
<a id="pl.60.16"></a><var>60.16</var>The commissioner must deny this levy authority unless the district passes a resolution <br/>
<a id="pl.60.17"></a><var>60.17</var>stating its intent to lease instructional space under Minnesota Statutes, section 126C.40, <br/>
<a id="pl.60.18"></a><var>60.18</var>subdivision 1, if the commissioner does not grant authority under this section. The <br/>
<a id="pl.60.19"></a><var>60.19</var>resolution must also certify that a lease of administrative space under this section is less <br/>
<a id="pl.60.20"></a><var>60.20</var>expensive than the district's proposed instructional lease. Levy authority under this section <br/>
<a id="pl.60.21"></a><var>60.21</var>shall not exceed the total levy authority under Minnesota Statutes, section 126C.40, <br/>
<a id="pl.60.22"></a><var>60.22</var>subdivision 1, paragraph (e).<br/>
<a id="pl.60.23"></a><var>60.23</var>    Subd. 2. <b>Wayzata.</b> Notwithstanding Minnesota Statutes, section 126C.40, <br/>
<a id="pl.60.24"></a><var>60.24</var>subdivision 1, Independent School District No. 284, Wayzata, may lease administrative <br/>
<a id="pl.60.25"></a><var>60.25</var>space under Minnesota Statutes, section 126C.40, subdivision 1, if the district can <br/>
<a id="pl.60.26"></a><var>60.26</var>demonstrate to the satisfaction of the commissioner of education that the administrative <br/>
<a id="pl.60.27"></a><var>60.27</var>space is less expensive than instructional space that the district would otherwise lease. <br/>
<a id="pl.60.28"></a><var>60.28</var>The commissioner must deny this levy authority unless the district passes a resolution <br/>
<a id="pl.60.29"></a><var>60.29</var>stating its intent to lease instructional space under Minnesota Statutes, section 126C.40, <br/>
<a id="pl.60.30"></a><var>60.30</var>subdivision 1, if the commissioner does not grant authority under this section. The <br/>
<a id="pl.60.31"></a><var>60.31</var>resolution must also certify that a lease of administrative space under this section is less <br/>
<a id="pl.60.32"></a><var>60.32</var>expensive than the district's proposed instructional lease. Levy authority under this section <br/>
<a id="pl.61.1"></a><var>61.1</var>shall not exceed the total levy authority under Minnesota Statutes, section 126C.40, <br/>
<a id="pl.61.2"></a><var>61.2</var>subdivision 1, paragraph (e).<br/>
<a id="pl.61.3"></a><var>61.3</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2013 and later.<br/>
<br/>
<a id="bill.3.14.0"></a><a id="pl.61.4"></a><var>61.4</var>    Sec. 14. <b>ADMINISTRATION OF PROPERTY TAX REFUND CLAIMS; 2011.</b><br/>
<a id="pl.61.5"></a><var>61.5</var>In administering Minnesota Statutes, section 290A.04, subdivision 2h, for claims for <br/>
<a id="pl.61.6"></a><var>61.6</var>additional refunds submitted using 60 percent of the gross homestead property tax increase <br/>
<a id="pl.61.7"></a><var>61.7</var>exceeding 12 percent of income under prior law, the commissioner shall recalculate and <br/>
<a id="pl.61.8"></a><var>61.8</var>pay the refund amounts using 75 percent of the tax increase exceeding 12 percent of <br/>
<a id="pl.61.9"></a><var>61.9</var>income. The commissioner shall notify the claimant that the recalculation was mandated <br/>
<a id="pl.61.10"></a><var>61.10</var>by action of the 2012 legislature.<br/>
<a id="pl.61.11"></a><var>61.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.15.0"></a><a id="pl.61.12"></a><var>61.12</var>    Sec. 15. <b> REPEALER.</b><br/>
<a id="pl.61.13"></a><var>61.13</var>(a) Minnesota Statutes 2010, section 275.025, subdivisions 1, 2, and 4, are repealed.<br/>
<a id="pl.61.14"></a><var>61.14</var>(b) Minnesota Statutes 2011 Supplement, section 275.025, subdivision 3, is repealed.<br/>
<a id="pl.61.15"></a><var>61.15</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2026 and <br/>
<a id="pl.61.16"></a><var>61.16</var>thereafter.<br/>
<br/>
<a id="bill.4.0.0"></a>

<a id="bill.4.1.0"></a><a id="pl.61.19"></a><var>61.19</var>    Section 1. Minnesota Statutes 2010, section 469.174, subdivision 2, is amended to read:<br/>
<a id="pl.61.20"></a><var>61.20</var>    Subd. 2. <b>Authority.</b> "Authority" means a rural development financing authority <br/>
<a id="pl.61.21"></a><var>61.21</var>created pursuant to sections 
         <statute_ref>469.142</statute_ref> to 
         <statute_ref>469.151</statute_ref>; a housing and redevelopment authority <br/>
<a id="pl.61.22"></a><var>61.22</var>created pursuant to sections 
         <statute_ref>469.001</statute_ref> to 
         <statute_ref>469.047</statute_ref>; a port authority created pursuant to <br/>
<a id="pl.61.23"></a><var>61.23</var>sections 
         <statute_ref>469.048</statute_ref> to 
         <statute_ref>469.068</statute_ref>; an economic development authority created pursuant to <br/>
<a id="pl.61.24"></a><var>61.24</var>sections 
         <statute_ref>469.090</statute_ref> to 
         <statute_ref>469.108</statute_ref>; a redevelopment agency as defined in sections 
         <statute_ref>469.152</statute_ref> to <br/>
<statute_ref><a id="pl.61.25"></a><var>61.25</var>469.165
         </statute_ref>; a municipality that is administering a development district created pursuant to <br/>
<a id="pl.61.26"></a><var>61.26</var>sections 
         <statute_ref>469.124</statute_ref> to 
         <statute_ref>469.134</statute_ref> or any special law; a municipality that undertakes a project <br/>
<a id="pl.61.27"></a><var>61.27</var>pursuant to sections 
         <statute_ref>469.152</statute_ref> to 
         <statute_ref>469.165</statute_ref>, except a town located outside the metropolitan <br/>
<a id="pl.61.28"></a><var>61.28</var>area or with a population of 5,000 persons or less; a municipality that undertakes a project <br/>
<a id="pl.61.29"></a><var>61.29</var>pursuant to subdivision 30; or a municipality that exercises the powers of a port authority <br/>
<a id="pl.61.30"></a><var>61.30</var>pursuant to any general or special law.<br/>
<a id="pl.61.31"></a><var>61.31</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.2.0"></a><a id="pl.62.1"></a><var>62.1</var>    Sec. 2. Minnesota Statutes 2010, section 469.174, subdivision 8, is amended to read:<br/>
<a id="pl.62.2"></a><var>62.2</var>    Subd. 8. <b>Project.</b> "Project" means a project as described in section 
         <statute_ref>469.142</statute_ref>; <br/>
<a id="pl.62.3"></a><var>62.3</var>an industrial development district as described in section 
         <statute_ref>469.058, subdivision 1</statute_ref>; an <br/>
<a id="pl.62.4"></a><var>62.4</var>economic development district as described in section 
         <statute_ref>469.101, subdivision 1</statute_ref>; a project as <br/>
<a id="pl.62.5"></a><var>62.5</var>defined in section 
         <statute_ref>469.002, subdivision 12</statute_ref>; a development district as defined in section <br/>
<statute_ref><a id="pl.62.6"></a><var>62.6</var>469.125, subdivision 9
         </statute_ref>, or any special law; a mining reclamation project area as defined <br/>
<a id="pl.62.7"></a><var>62.7</var>in subdivision 30; or a project as defined in section 
         <statute_ref>469.153, subdivision 2</statute_ref>, paragraph <br/>
<a id="pl.62.8"></a><var>62.8</var>(a), (b), or (c).<br/>
<a id="pl.62.9"></a><var>62.9</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.3.0"></a><a id="pl.62.10"></a><var>62.10</var>    Sec. 3. Minnesota Statutes 2010, section 469.174, subdivision 10, is amended to read:<br/>
<a id="pl.62.11"></a><var>62.11</var>    Subd. 10. <b>Redevelopment district.</b> (a) "Redevelopment district" means a type of <br/>
<a id="pl.62.12"></a><var>62.12</var>tax increment financing district consisting of a project, or portions of a project, within <br/>
<a id="pl.62.13"></a><var>62.13</var>which the authority finds by resolution that one or more of the following conditions, <br/>
<a id="pl.62.14"></a><var>62.14</var>reasonably distributed throughout the district, exists:<br/>
<a id="pl.62.15"></a><var>62.15</var>    (1) parcels consisting of 70 percent of the area of the district are occupied by <br/>
<a id="pl.62.16"></a><var>62.16</var>buildings, streets, utilities, paved or gravel parking lots, or other similar structures and <br/>
<a id="pl.62.17"></a><var>62.17</var>more than 50 percent or more of the buildings, not including outbuildings, are structurally <br/>
<a id="pl.62.18"></a><var>62.18</var>substandard to a degree requiring substantial renovation or clearance;<br/>
<a id="pl.62.19"></a><var>62.19</var>    (2) the property consists of vacant, unused, underused, inappropriately used, or <br/>
<a id="pl.62.20"></a><var>62.20</var>infrequently used rail yards, rail storage facilities, or excessive or vacated railroad <br/>
<a id="pl.62.21"></a><var>62.21</var>rights-of-way;<br/>
<a id="pl.62.22"></a><var>62.22</var>    (3) tank facilities, or property whose immediately previous use was for tank <br/>
<a id="pl.62.23"></a><var>62.23</var>facilities, as defined in section 
         <statute_ref>115C.02, subdivision 15</statute_ref>, if the tank facilities:<br/>
<a id="pl.62.24"></a><var>62.24</var>    (i) have or had a capacity of more than 1,000,000 gallons;<br/>
<a id="pl.62.25"></a><var>62.25</var>    (ii) are located adjacent to rail facilities; and<br/>
<a id="pl.62.26"></a><var>62.26</var>    (iii) have been removed or are unused, underused, inappropriately used, or <br/>
<a id="pl.62.27"></a><var>62.27</var>infrequently used; or<br/>
<a id="pl.62.28"></a><var>62.28</var>    (4) a qualifying disaster area, as defined in subdivision 10b.<br/>
<a id="pl.62.29"></a><var>62.29</var>    (b) For purposes of this subdivision, "structurally substandard" shall mean <br/>
<a id="pl.62.30"></a><var>62.30</var>containing defects in structural elements or a combination of deficiencies in essential <br/>
<a id="pl.62.31"></a><var>62.31</var>utilities and facilities, light and ventilation, fire protection including adequate egress, <br/>
<a id="pl.62.32"></a><var>62.32</var>layout and condition of interior partitions, or similar factors, which defects or deficiencies <br/>
<a id="pl.62.33"></a><var>62.33</var>are of sufficient total significance to justify substantial renovation or clearance.<br/>
<a id="pl.62.34"></a><var>62.34</var>    (c) A building is not structurally substandard if it is in compliance with the building <br/>
<a id="pl.62.35"></a><var>62.35</var>code applicable to new buildings or could be modified to satisfy the building code at <br/>
<a id="pl.63.1"></a><var>63.1</var>a cost of less than 15 percent of the cost of constructing a new structure of the same <br/>
<a id="pl.63.2"></a><var>63.2</var>square footage and type on the site. The municipality may find that a building is not <br/>
<a id="pl.63.3"></a><var>63.3</var>disqualified as structurally substandard under the preceding sentence on the basis of <br/>
<a id="pl.63.4"></a><var>63.4</var>reasonably available evidence, such as the size, type, and age of the building, the average <br/>
<a id="pl.63.5"></a><var>63.5</var>cost of plumbing, electrical, or structural repairs, or other similar reliable evidence. The <br/>
<a id="pl.63.6"></a><var>63.6</var>municipality may not make such a determination without an interior inspection of the <br/>
<a id="pl.63.7"></a><var>63.7</var>property, but need not have an independent, expert appraisal prepared of the cost of repair <br/>
<a id="pl.63.8"></a><var>63.8</var>and rehabilitation of the building. An interior inspection of the property is not required, <br/>
<a id="pl.63.9"></a><var>63.9</var>if the municipality finds that (1) the municipality or authority is unable to gain access to <br/>
<a id="pl.63.10"></a><var>63.10</var>the property after using its best efforts to obtain permission from the party that owns or <br/>
<a id="pl.63.11"></a><var>63.11</var>controls the property; and (2) the evidence otherwise supports a reasonable conclusion that <br/>
<a id="pl.63.12"></a><var>63.12</var>the building is structurally substandard. Items of evidence that support such a conclusion <br/>
<a id="pl.63.13"></a><var>63.13</var>include recent fire or police inspections, on-site property tax appraisals or housing <br/>
<a id="pl.63.14"></a><var>63.14</var>inspections, exterior evidence of deterioration, or other similar reliable evidence. Written <br/>
<a id="pl.63.15"></a><var>63.15</var>documentation of the findings and reasons why an interior inspection was not conducted <br/>
<a id="pl.63.16"></a><var>63.16</var>must be made and retained under section 
         <statute_ref>469.175, subdivision 3</statute_ref>, clause (1). Failure of a <br/>
<a id="pl.63.17"></a><var>63.17</var>building to be disqualified under the provisions of this paragraph is a necessary, but not a <br/>
<a id="pl.63.18"></a><var>63.18</var>sufficient, condition to determining that the building is substandard.<br/>
<a id="pl.63.19"></a><var>63.19</var>    (d) A parcel is deemed to be occupied by a structurally substandard building <br/>
<a id="pl.63.20"></a><var>63.20</var>for purposes of the finding under paragraph (a) or by the improvements described in <br/>
<a id="pl.63.21"></a><var>63.21</var>paragraph (e) if all of the following conditions are met:<br/>
<a id="pl.63.22"></a><var>63.22</var>    (1) the parcel was occupied by a substandard building or met the requirements <br/>
<a id="pl.63.23"></a><var>63.23</var>of paragraph (e), as the case may be, within three years of the filing of the request for <br/>
<a id="pl.63.24"></a><var>63.24</var>certification of the parcel as part of the district with the county auditor;<br/>
<a id="pl.63.25"></a><var>63.25</var>    (2) the substandard building or the improvements described in paragraph (e) were <br/>
<a id="pl.63.26"></a><var>63.26</var>demolished or removed by the authority or the demolition or removal was financed by the <br/>
<a id="pl.63.27"></a><var>63.27</var>authority or was done by a developer under a development agreement with the authority;<br/>
<a id="pl.63.28"></a><var>63.28</var>    (3) the authority found by resolution before the demolition or removal that the <br/>
<a id="pl.63.29"></a><var>63.29</var>parcel was occupied by a structurally substandard building or met the requirements of <br/>
<a id="pl.63.30"></a><var>63.30</var>paragraph (e) and that after demolition and clearance the authority intended to include <br/>
<a id="pl.63.31"></a><var>63.31</var>the parcel within a district; and<br/>
<a id="pl.63.32"></a><var>63.32</var>    (4) upon filing the request for certification of the tax capacity of the parcel as part <br/>
<a id="pl.63.33"></a><var>63.33</var>of a district, the authority notifies the county auditor that the original tax capacity of the <br/>
<a id="pl.63.34"></a><var>63.34</var>parcel must be adjusted as provided by section 
         <statute_ref>469.177, subdivision 1</statute_ref>, paragraph (f).<br/>
<a id="pl.63.35"></a><var>63.35</var>    (e) For purposes of this subdivision, a parcel is not occupied by buildings, streets, <br/>
<a id="pl.63.36"></a><var>63.36</var>utilities, paved or gravel parking lots, or other similar structures unless 15 percent of the <br/>
<a id="pl.64.1"></a><var>64.1</var>area of the parcel contains buildings, streets, utilities, paved or gravel parking lots, or <br/>
<a id="pl.64.2"></a><var>64.2</var>other similar structures.<br/>
<a id="pl.64.3"></a><var>64.3</var>    (f) For districts consisting of two or more noncontiguous areas, each area must <br/>
<a id="pl.64.4"></a><var>64.4</var>qualify as a redevelopment district under paragraph (a) to be included in the district, and <br/>
<a id="pl.64.5"></a><var>64.5</var>the entire area of the district must satisfy paragraph (a).<br/>
<a id="pl.64.6"></a><var>64.6</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.4.0"></a><a id="pl.64.7"></a><var>64.7</var>    Sec. 4. Minnesota Statutes 2010, section 469.174, is amended by adding a subdivision <br/>
<a id="pl.64.8"></a><var>64.8</var>to read:<br/>
<a id="pl.64.9"></a><var>64.9</var>    Subd. 19a. <b>Soil deficiency district.</b> "Soil-deficiency district" means a type of tax <br/>
<a id="pl.64.10"></a><var>64.10</var>increment financing district consisting of a project, or portions of a project, within which <br/>
<a id="pl.64.11"></a><var>64.11</var>the authority finds by resolution that the following conditions exist:<br/>
<a id="pl.64.12"></a><var>64.12</var>(1) parcels consisting of 70 percent of the area of the district contain unusual terrain <br/>
<a id="pl.64.13"></a><var>64.13</var>or soil deficiencies which require substantial filling, grading, or other physical preparation <br/>
<a id="pl.64.14"></a><var>64.14</var>for use and a parcel is eligible for inclusion if at least 50 percent of the area of the parcel <br/>
<a id="pl.64.15"></a><var>64.15</var>requires substantial filling, grading, or other physical preparation for use; and<br/>
<a id="pl.64.16"></a><var>64.16</var>(2) the estimated cost of the physical preparation under clause (1), but excluding <br/>
<a id="pl.64.17"></a><var>64.17</var>costs directly related to roads as defined in section 160.01, and local improvements as <br/>
<a id="pl.64.18"></a><var>64.18</var>described in sections 429.021, subdivision 1, clauses (1) to (7), (11), and (12), and 430.01, <br/>
<a id="pl.64.19"></a><var>64.19</var>exceeds the fair market value of the land before completion of the preparation.<br/>
<a id="pl.64.20"></a><var>64.20</var><b>EFFECTIVE DATE.</b>This section is effective for districts for which the request for <br/>
<a id="pl.64.21"></a><var>64.21</var>certification is made after April 30, 2012.<br/>
<br/>
<a id="bill.4.5.0"></a><a id="pl.64.22"></a><var>64.22</var>    Sec. 5. Minnesota Statutes 2010, section 469.174, is amended by adding a subdivision <br/>
<a id="pl.64.23"></a><var>64.23</var>to read:<br/>
<a id="pl.64.24"></a><var>64.24</var>    Subd. 30. <b>Mining reclamation project area.</b> (a) An authority may designate an <br/>
<a id="pl.64.25"></a><var>64.25</var>area within its jurisdiction by finding by resolution, that parcels consisting of at least 70 <br/>
<a id="pl.64.26"></a><var>64.26</var>percent of the acreage, excluding street and railroad rights-of-way, are characterized by <br/>
<a id="pl.64.27"></a><var>64.27</var>one or more of the following conditions:<br/>
<a id="pl.64.28"></a><var>64.28</var>(1) peat or other soils with geotechnical deficiencies that impair development of <br/>
<a id="pl.64.29"></a><var>64.29</var>buildings or infrastructure;<br/>
<a id="pl.64.30"></a><var>64.30</var>(2) soils or terrain that requires substantial filling in order to permit the development <br/>
<a id="pl.64.31"></a><var>64.31</var>of buildings or infrastructure;<br/>
<a id="pl.64.32"></a><var>64.32</var>(3) landfills, dumps, or similar deposits of municipal or private waste;<br/>
<a id="pl.64.33"></a><var>64.33</var>(4) quarries or similar resource extraction sites;<br/>
<a id="pl.65.1"></a><var>65.1</var>(5) floodway; and<br/>
<a id="pl.65.2"></a><var>65.2</var>(6) substandard buildings, within the meaning of section 469.174, subdivision 10.<br/>
<a id="pl.65.3"></a><var>65.3</var>(b) For the purposes of paragraph (a), clauses (1) to (5), a parcel is characterized by <br/>
<a id="pl.65.4"></a><var>65.4</var>the relevant condition if at least 50 percent of the area of the parcel contains the relevant <br/>
<a id="pl.65.5"></a><var>65.5</var>condition. For the purposes of paragraph (a), clause (6), a parcel is characterized by <br/>
<a id="pl.65.6"></a><var>65.6</var>substandard buildings if substandard buildings occupy at least 30 percent of the area <br/>
<a id="pl.65.7"></a><var>65.7</var>of the parcel.<br/>
<a id="pl.65.8"></a><var>65.8</var>(c) If the authority elects, upon the adoption of the tax increment financing plan for a <br/>
<a id="pl.65.9"></a><var>65.9</var>district, the rules under paragraphs (d) and (e) apply to a redevelopment district, renewal <br/>
<a id="pl.65.10"></a><var>65.10</var>and renovation district, soil condition district, or soil deficiency district established by the <br/>
<a id="pl.65.11"></a><var>65.11</var>authority in a mining reclamation project area.<br/>
<a id="pl.65.12"></a><var>65.12</var>(d) Upon election of the authority under paragraph (c), for any district created in a <br/>
<a id="pl.65.13"></a><var>65.13</var>mining reclamation project area, the five-year rule under section 469.1763, subdivision 3, <br/>
<a id="pl.65.14"></a><var>65.14</var>is extended to ten years, and section 469.1763, subdivision 4, does not apply.<br/>
<a id="pl.65.15"></a><var>65.15</var>(e) Upon election by the authority under paragraph (c), notwithstanding any <br/>
<a id="pl.65.16"></a><var>65.16</var>provision to the contrary in section 469.1763, subdivision 2, paragraph (a), not more than <br/>
<a id="pl.65.17"></a><var>65.17</var>80 percent of the total revenue derived from tax increments paid by properties in any <br/>
<a id="pl.65.18"></a><var>65.18</var>district, measured over the life of the district, may be expended on activities outside the <br/>
<a id="pl.65.19"></a><var>65.19</var>district but within the mining reclamation project area.<br/>
<a id="pl.65.20"></a><var>65.20</var>(f) For a soil deficiency district, except as otherwise provided in this subdivision, <br/>
<a id="pl.65.21"></a><var>65.21</var>increments may be used only to:<br/>
<a id="pl.65.22"></a><var>65.22</var>(1) acquire parcels on which the improvements described in clause (2) will occur;<br/>
<a id="pl.65.23"></a><var>65.23</var>(2) pay for the cost of correcting the unusual terrain or soil deficiencies and the <br/>
<a id="pl.65.24"></a><var>65.24</var>additional cost of installing public improvements directly caused by the deficiencies;<br/>
<a id="pl.65.25"></a><var>65.25</var>(3) pay for the administrative expenses of the authority allocable to the district; and<br/>
<a id="pl.65.26"></a><var>65.26</var>(4) up to 25 percent of the increment may be used to pay costs as provided in section <br/>
<a id="pl.65.27"></a><var>65.27</var>469.176, subdivision 4j.<br/>
<a id="pl.65.28"></a><var>65.28</var>(g) Increments spent for any infrastructure costs, whether inside a district or outside <br/>
<a id="pl.65.29"></a><var>65.29</var>a district, but within the project area, are deemed to satisfy the requirements of paragraph <br/>
<a id="pl.65.30"></a><var>65.30</var>(f), and section 469.176, subdivisions 4b and 4j.<br/>
<a id="pl.65.31"></a><var>65.31</var><b>EFFECTIVE DATE.</b>This section is effective for districts for which the request for <br/>
<a id="pl.65.32"></a><var>65.32</var>certification is made after April 30, 2012.<br/>
<br/>
<a id="bill.4.6.0"></a><a id="pl.65.33"></a><var>65.33</var>    Sec. 6. Minnesota Statutes 2010, section 469.176, subdivision 1b, is amended to read:<br/>
<a id="pl.65.34"></a><var>65.34</var>    Subd. 1b. <b>Duration limits; terms.</b> (a) No tax increment shall in any event be <br/>
<a id="pl.65.35"></a><var>65.35</var>paid to the authority:<br/>
<a id="pl.66.1"></a><var>66.1</var>(1) after 15 years after receipt by the authority of the first increment for a renewal <br/>
<a id="pl.66.2"></a><var>66.2</var>and renovation district;<br/>
<a id="pl.66.3"></a><var>66.3</var>(2) after 20 years after receipt by the authority of the first increment for a soils <br/>
<a id="pl.66.4"></a><var>66.4</var>condition district or a soil deficiency district;<br/>
<a id="pl.66.5"></a><var>66.5</var>(3) after eight years after receipt by the authority of the first increment for an <br/>
<a id="pl.66.6"></a><var>66.6</var>economic development district;<br/>
<a id="pl.66.7"></a><var>66.7</var>(4) for a housing district, a compact development district, or a redevelopment <br/>
<a id="pl.66.8"></a><var>66.8</var>district, after 25 years from the date of receipt by the authority of the first increment.<br/>
<a id="pl.66.9"></a><var>66.9</var>(b) For purposes of determining a duration limit under this subdivision or subdivision <br/>
<a id="pl.66.10"></a><var>66.10</var>1e that is based on the receipt of an increment, any increments from taxes payable in <br/>
<a id="pl.66.11"></a><var>66.11</var>the year in which the district terminates shall be paid to the authority. This paragraph <br/>
<a id="pl.66.12"></a><var>66.12</var>does not affect a duration limit calculated from the date of approval of the tax increment <br/>
<a id="pl.66.13"></a><var>66.13</var>financing plan or based on the recovery of costs or to a duration limit under subdivision <br/>
<a id="pl.66.14"></a><var>66.14</var>1c. This paragraph does not supersede the restrictions on payment of delinquent taxes in <br/>
<a id="pl.66.15"></a><var>66.15</var>subdivision 1f.<br/>
<a id="pl.66.16"></a><var>66.16</var>(c) An action by the authority to waive or decline to accept an increment has no <br/>
<a id="pl.66.17"></a><var>66.17</var>effect for purposes of computing a duration limit based on the receipt of increment under <br/>
<a id="pl.66.18"></a><var>66.18</var>this subdivision or any other provision of law. The authority is deemed to have received an <br/>
<a id="pl.66.19"></a><var>66.19</var>increment for any year in which it waived or declined to accept an increment, regardless <br/>
<a id="pl.66.20"></a><var>66.20</var>of whether the increment was paid to the authority.<br/>
<a id="pl.66.21"></a><var>66.21</var>(d) Receipt by a hazardous substance subdistrict of an increment as a result of a <br/>
<a id="pl.66.22"></a><var>66.22</var>reduction in original net tax capacity under section 
         <statute_ref>469.174, subdivision 7</statute_ref>, paragraph <br/>
<a id="pl.66.23"></a><var>66.23</var>(b), does not constitute receipt of increment by the overlying district for the purpose of <br/>
<a id="pl.66.24"></a><var>66.24</var>calculating the duration limit under this section.<br/>
<a id="pl.66.25"></a><var>66.25</var><b>EFFECTIVE DATE.</b>This section is effective for districts for which the request for <br/>
<a id="pl.66.26"></a><var>66.26</var>certification is made after April 30, 2012.<br/>
<br/>
<a id="bill.4.7.0"></a><a id="pl.66.27"></a><var>66.27</var>    Sec. 7. Minnesota Statutes 2011 Supplement, section 469.1763, subdivision 2, is <br/>
<a id="pl.66.28"></a><var>66.28</var>amended to read:<br/>
<a id="pl.66.29"></a><var>66.29</var>    Subd. 2. <b>Expenditures outside district.</b> (a) For each tax increment financing <br/>
<a id="pl.66.30"></a><var>66.30</var>district, an amount equal to at least 75 percent of the total revenue derived from tax <br/>
<a id="pl.66.31"></a><var>66.31</var>increments paid by properties in the district must be expended on activities in the district <br/>
<a id="pl.66.32"></a><var>66.32</var>or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities <br/>
<a id="pl.66.33"></a><var>66.33</var>in the district or to pay, or secure payment of, debt service on credit enhanced bonds. <br/>
<a id="pl.66.34"></a><var>66.34</var>For districts, other than redevelopment districts for which the request for certification <br/>
<a id="pl.66.35"></a><var>66.35</var>was made after June 30, 1995, the in-district percentage for purposes of the preceding <br/>
<a id="pl.67.1"></a><var>67.1</var>sentence is 80 percent. Not more than 25 percent of the total revenue derived from tax <br/>
<a id="pl.67.2"></a><var>67.2</var>increments paid by properties in the district may be expended, through a development fund <br/>
<a id="pl.67.3"></a><var>67.3</var>or otherwise, on activities outside of the district but within the defined geographic area of <br/>
<a id="pl.67.4"></a><var>67.4</var>the project except to pay, or secure payment of, debt service on credit enhanced bonds. <br/>
<a id="pl.67.5"></a><var>67.5</var>For districts, other than redevelopment districts for which the request for certification was <br/>
<a id="pl.67.6"></a><var>67.6</var>made after June 30, 1995, the pooling percentage for purposes of the preceding sentence is <br/>
<a id="pl.67.7"></a><var>67.7</var>20 percent. The revenue derived from tax increments for the district that are expended on <br/>
<a id="pl.67.8"></a><var>67.8</var>costs under section 
         <statute_ref>469.176, subdivision 4h</statute_ref>, paragraph (b), may be deducted first before <br/>
<a id="pl.67.9"></a><var>67.9</var>calculating the percentages that must be expended within and without the district.<br/>
<a id="pl.67.10"></a><var>67.10</var>    (b) In the case of a housing district, a housing project, as defined in section 
         <statute_ref>469.174, <br/>
<a id="pl.67.11"></a><var>67.11</var>subdivision 11
         </statute_ref>, is an activity in the district.<br/>
<a id="pl.67.12"></a><var>67.12</var>    (c) All administrative expenses are for activities outside of the district, except that <br/>
<a id="pl.67.13"></a><var>67.13</var>if the only expenses for activities outside of the district under this subdivision are for <br/>
<a id="pl.67.14"></a><var>67.14</var>the purposes described in paragraph (d), administrative expenses will be considered as <br/>
<a id="pl.67.15"></a><var>67.15</var>expenditures for activities in the district.<br/>
<a id="pl.67.16"></a><var>67.16</var>    (d) The authority may elect, in the tax increment financing plan for the district, <br/>
<a id="pl.67.17"></a><var>67.17</var>to increase by up to ten percentage points the permitted amount of expenditures for <br/>
<a id="pl.67.18"></a><var>67.18</var>activities located outside the geographic area of the district under paragraph (a). As <br/>
<a id="pl.67.19"></a><var>67.19</var>permitted by section 
         <statute_ref>469.176, subdivision 4k</statute_ref>, the expenditures, including the permitted <br/>
<a id="pl.67.20"></a><var>67.20</var>expenditures under paragraph (a), need not be made within the geographic area of the <br/>
<a id="pl.67.21"></a><var>67.21</var>project. Expenditures that meet the requirements of this paragraph are legally permitted <br/>
<a id="pl.67.22"></a><var>67.22</var>expenditures of the district, notwithstanding section 
         <statute_ref>469.176, subdivisions 4b, 4c, 4d, and <br/>
<a id="pl.67.23"></a><var>67.23</var>4j
         </statute_ref>. To qualify for the increase under this paragraph, the expenditures must:<br/>
<a id="pl.67.24"></a><var>67.24</var>    (1) be used exclusively to assist housing that<br/>
<a id="pl.67.25"></a><var>67.25</var>(i) meets the requirement for a qualified low-income building, as that term is used in <br/>
<a id="pl.67.26"></a><var>67.26</var>section 42 of the Internal Revenue Code; and<br/>
<a id="pl.67.27"></a><var>67.27</var>    (2) (ii) does not exceed the qualified basis of the housing, as defined under section <br/>
<a id="pl.67.28"></a><var>67.28</var>42(c) of the Internal Revenue Code, less the amount of any credit allowed under section <br/>
<a id="pl.67.29"></a><var>67.29</var>42 of the Internal Revenue Code; and<br/>
<a id="pl.67.30"></a><var>67.30</var>    (3) be (iii) is used to:<br/>
<a id="pl.67.31"></a><var>67.31</var>    (i) (A) acquire and prepare the site of the housing;<br/>
<a id="pl.67.32"></a><var>67.32</var>    (ii) (B) acquire, construct, or rehabilitate the housing; or<br/>
<a id="pl.67.33"></a><var>67.33</var>    (iii) (C) make public improvements directly related to the housing; or<br/>
<a id="pl.67.34"></a><var>67.34</var>(4) (2) be used to develop housing:<br/>
<a id="pl.67.35"></a><var>67.35</var>(i) if the market value of the housing  prior to demolition or rehabilitation does <br/>
<a id="pl.67.36"></a><var>67.36</var>not exceed the lesser of:<br/>
<a id="pl.68.1"></a><var>68.1</var>(A) 150 percent of the average market value of single-family homes in that <br/>
<a id="pl.68.2"></a><var>68.2</var>municipality; or<br/>
<a id="pl.68.3"></a><var>68.3</var>(B) $200,000 for municipalities located in the metropolitan area, as defined in <br/>
<a id="pl.68.4"></a><var>68.4</var>section 
         <statute_ref>473.121</statute_ref>, or $125,000 for all other municipalities; and<br/>
<a id="pl.68.5"></a><var>68.5</var>(ii) if the expenditures are used to pay the cost of site acquisition, relocation, <br/>
<a id="pl.68.6"></a><var>68.6</var>demolition of existing structures, site preparation, rehabilitation, and pollution abatement <br/>
<a id="pl.68.7"></a><var>68.7</var>on one or more parcels, if provided that the parcel contains a residence containing is <br/>
<a id="pl.68.8"></a><var>68.8</var>occupied by one to four family dwelling units that has been vacant for six or more months <br/>
<a id="pl.68.9"></a><var>68.9</var>and is in foreclosure as defined in section 
<statute_ref>325N.10, subdivision 7</statute_ref>, but without regard to <br/>
<a id="pl.68.10"></a><var>68.10</var>whether the residence is the owner's principal residence, and only after the redemption <br/>
<a id="pl.68.11"></a><var>68.11</var>period stated in the notice provided under section 
<statute_ref>580.06</statute_ref> has expired with respect to which <br/>
<a id="pl.68.12"></a><var>68.12</var>a mortgage was foreclosed under chapter 580, 581, or 582; any applicable redemption <br/>
<a id="pl.68.13"></a><var>68.13</var>period has expired without redemption; and the authority or developer enters into a <br/>
<a id="pl.68.14"></a><var>68.14</var>purchase agreement to acquire the parcel no earlier than 30 days after expiration of the <br/>
<a id="pl.68.15"></a><var>68.15</var>redemption period.<br/>
<a id="pl.68.16"></a><var>68.16</var>    (e) For a district created within a biotechnology and health sciences industry zone <br/>
<a id="pl.68.17"></a><var>68.17</var>as defined in section 
         <statute_ref>469.330, subdivision 6</statute_ref>, or for an existing district located within <br/>
<a id="pl.68.18"></a><var>68.18</var>such a zone, tax increment derived from such a district may be expended outside of the <br/>
<a id="pl.68.19"></a><var>68.19</var>district but within the zone only for expenditures required for the construction of public <br/>
<a id="pl.68.20"></a><var>68.20</var>infrastructure necessary to support the activities of the zone, land acquisition, and other <br/>
<a id="pl.68.21"></a><var>68.21</var>redevelopment costs as defined in section 
         <statute_ref>469.176, subdivision 4j</statute_ref>. These expenditures are <br/>
<a id="pl.68.22"></a><var>68.22</var>considered as expenditures for activities within the district.<br/>
<a id="pl.68.23"></a><var>68.23</var>(f) The authority under paragraph (d), clause (4) (2), expires on December 31, 2016. <br/>
<a id="pl.68.24"></a><var>68.24</var>Increments may continue to be expended under this authority after that date, if they are <br/>
<a id="pl.68.25"></a><var>68.25</var>used to pay bonds or binding contracts that would qualify under subdivision 3, paragraph <br/>
<a id="pl.68.26"></a><var>68.26</var>(a), if December 31, 2016, is considered to be the last date of the five-year period after <br/>
<a id="pl.68.27"></a><var>68.27</var>certification under that provision.<br/>
<a id="pl.68.28"></a><var>68.28</var><b>EFFECTIVE DATE.</b>This section is effective for any district that is subject to the <br/>
<a id="pl.68.29"></a><var>68.29</var>provisions of Minnesota Statutes, section 469.1763, regardless of when the request for <br/>
<a id="pl.68.30"></a><var>68.30</var>certification was made.<br/>
<br/>
<a id="bill.4.8.0"></a><a id="pl.68.31"></a><var>68.31</var>    Sec. 8. Laws 2008, chapter 366, article 5, section 34, as amended by Laws 2009, <br/>
<a id="pl.68.32"></a><var>68.32</var>chapter 88, article 5, section 11, is amended to read:<br/>
<a id="pl.68.33"></a><var>68.33</var>    Sec. 34. <b>CITY OF OAKDALE; ORIGINAL TAX CAPACITY. </b><br/>
<a id="pl.68.34"></a><var>68.34</var>    Subdivision 1. <b>Original tax capacity election.</b> (a) The provisions of this section <br/>
<a id="pl.68.35"></a><var>68.35</var>apply to redevelopment tax increment financing districts created by the Housing and <br/>
<a id="pl.69.1"></a><var>69.1</var>Redevelopment Authority in and for the city of Oakdale in the areas comprised of <br/>
<a id="pl.69.2"></a><var>69.2</var>the parcels with the following parcel identification numbers: (1) 3102921320053; <br/>
<a id="pl.69.3"></a><var>69.3</var>3102921320054; 3102921320055; 3102921320056; 3102921320057; 3102921320058; <br/>
<a id="pl.69.4"></a><var>69.4</var>3102921320062; 3102921320063; 3102921320059; 3102921320060; 3102921320061; <br/>
<a id="pl.69.5"></a><var>69.5</var>3102921330005; and 3102921330004; and (2) 2902921330001 and 2902921330005.<br/>
<a id="pl.69.6"></a><var>69.6</var>    (b) For a district subject to this section, the Housing and Redevelopment Authority <br/>
<a id="pl.69.7"></a><var>69.7</var>may, when requesting certification of the original tax capacity of the district under <br/>
<a id="pl.69.8"></a><var>69.8</var>Minnesota Statutes, section 
         <statute_ref>469.177</statute_ref>, elect to have the original tax capacity of the district <br/>
<a id="pl.69.9"></a><var>69.9</var>be certified as the tax capacity of the land.<br/>
<a id="pl.69.10"></a><var>69.10</var>    (c) The authority to request certification of a district under this section expires on <br/>
<a id="pl.69.11"></a><var>69.11</var>July 1, 2013 December 31, 2017.<br/>
<a id="pl.69.12"></a><var>69.12</var>    Subd. 2. <b>Parcels deemed occupied.</b> (a) Parcel numbers 3102921320054, <br/>
<a id="pl.69.13"></a><var>69.13</var>3102921320055, 3102921320056, 3102921320057, 3102921320061, and 3102921330004 <br/>
<a id="pl.69.14"></a><var>69.14</var>are deemed to meet the requirements of Minnesota Statutes, section 469.174, subdivision <br/>
<a id="pl.69.15"></a><var>69.15</var>10, paragraph (d), notwithstanding any contrary provisions of that paragraph, if the <br/>
<a id="pl.69.16"></a><var>69.16</var>following conditions are met:<br/>
<a id="pl.69.17"></a><var>69.17</var>(1) a building located on any part of each of the specified parcels was demolished <br/>
<a id="pl.69.18"></a><var>69.18</var>after the authority adopted a resolution under Minnesota Statutes, section 469.174, <br/>
<a id="pl.69.19"></a><var>69.19</var>subdivision 10, paragraph (d), clause (3);<br/>
<a id="pl.69.20"></a><var>69.20</var>(2) the building was removed either by the authority, by a developer under a <br/>
<a id="pl.69.21"></a><var>69.21</var>development agreement with the authority, or by the owner of the property without <br/>
<a id="pl.69.22"></a><var>69.22</var>entering into a development agreement with the authority; and<br/>
<a id="pl.69.23"></a><var>69.23</var>(3) the request for certification of the parcel as part of a district is filed with the <br/>
<a id="pl.69.24"></a><var>69.24</var>county auditor by December 31, 2017.<br/>
<a id="pl.69.25"></a><var>69.25</var>(b) The provisions of subdivision 1 apply to allow an election by the authority <br/>
<a id="pl.69.26"></a><var>69.26</var>for the parcels deemed occupied under paragraph (a), notwithstanding the provisions <br/>
<a id="pl.69.27"></a><var>69.27</var>of Minnesota Statutes, sections 469.174, subdivision 10, paragraph (d), and 469.177, <br/>
<a id="pl.69.28"></a><var>69.28</var>subdivision 1, paragraph (f).<br/>
<a id="pl.69.29"></a><var>69.29</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance by the governing <br/>
<a id="pl.69.30"></a><var>69.30</var>body of the city of Oakdale with the requirements of Minnesota Statutes, section 645.021, <br/>
<a id="pl.69.31"></a><var>69.31</var>subdivision 3.<br/>
<br/>
<a id="bill.4.9.0"></a><a id="pl.69.32"></a><var>69.32</var>    Sec. 9. <b>CITY OF APPLE VALLEY; USE OF TAX INCREMENT FINANCING.</b><br/>
<a id="pl.69.33"></a><var>69.33</var>    Subdivision 1. <b>Developments consisting of building and ancillary facilities.</b><br/>
<a id="pl.69.34"></a><var>69.34</var>Notwithstanding Minnesota Statutes, section 469.176, subdivisions 4c and 4m, the city of <br/>
<a id="pl.69.35"></a><var>69.35</var>Apple Valley may use tax increment financing to provide improvements, loans, subsidies, <br/>
<a id="pl.70.1"></a><var>70.1</var>grants, interest rate subsidies, or assistance in any form to developments consisting of <br/>
<a id="pl.70.2"></a><var>70.2</var>buildings and ancillary facilities, if all of the following conditions are met:<br/>
<a id="pl.70.3"></a><var>70.3</var>(1) the city of Apple Valley finds that the project will create or retain jobs in <br/>
<a id="pl.70.4"></a><var>70.4</var>Minnesota, including construction jobs;<br/>
<a id="pl.70.5"></a><var>70.5</var>(2) the city of Apple Valley finds that construction of the project will not commence <br/>
<a id="pl.70.6"></a><var>70.6</var>before July 1, 2013, without the use of tax increment financing;<br/>
<a id="pl.70.7"></a><var>70.7</var>(3) the request for certification of the district is made no later than June 30, 2013;<br/>
<a id="pl.70.8"></a><var>70.8</var>(4) construction of the project begins no later than July 1, 2013; and<br/>
<a id="pl.70.9"></a><var>70.9</var>(5) for development of housing, construction of the project begins no later than <br/>
<a id="pl.70.10"></a><var>70.10</var>December 31, 2012.<br/>
<a id="pl.70.11"></a><var>70.11</var>    Subd. 2. <b>Extension of authority to spend tax increments.</b> Notwithstanding <br/>
<a id="pl.70.12"></a><var>70.12</var>Minnesota Statutes, section 469.176, subdivision 4m, the city of Apple Valley has the <br/>
<a id="pl.70.13"></a><var>70.13</var>authority to spend tax increments under Minnesota Statutes, section 469.176, subdivision <br/>
<a id="pl.70.14"></a><var>70.14</var>4m, until December 31, 2013.<br/>
<a id="pl.70.15"></a><var>70.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.10.0"></a><a id="pl.70.16"></a><var>70.16</var>    Sec. 10. <b>CITY OF BLOOMINGTON; TAX INCREMENT FINANCING.</b><br/>
<a id="pl.70.17"></a><var>70.17</var>Notwithstanding Minnesota Statutes, section 469.176, or Laws 1996, chapter 464, <br/>
<a id="pl.70.18"></a><var>70.18</var>article 1, section 8, or any other law to the contrary, the city of Bloomington and its port <br/>
<a id="pl.70.19"></a><var>70.19</var>authority may extend the duration limits of tax increment financing district No. 1-G, <br/>
<a id="pl.70.20"></a><var>70.20</var>containing the former Met Center property, including Lindau Lane and that portion of tax <br/>
<a id="pl.70.21"></a><var>70.21</var>increment financing district No. 1-C north of the existing building line on Lot 1, Block 1, <br/>
<a id="pl.70.22"></a><var>70.22</var>Mall of America 7th Addition, exclusive of Lots 2 and 3, through December 31, 2038.<br/>
<a id="pl.70.23"></a><var>70.23</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance of the governing <br/>
<a id="pl.70.24"></a><var>70.24</var>body of the city of Bloomington with the requirements of Minnesota Statutes, sections <br/>
<a id="pl.70.25"></a><var>70.25</var>469.1782, subdivision 2, and 645.021, subdivision 3.<br/>
<br/>
<a id="bill.4.11.0"></a><a id="pl.70.26"></a><var>70.26</var>    Sec. 11. <b>CITY OF BLOOMINGTON; TAX INCREMENT FINANCING </b><br/>
<a id="pl.70.27"></a><var>70.27</var><b>EXTENSION.</b><br/>
<a id="pl.70.28"></a><var>70.28</var>Notwithstanding the provisions of Minnesota Statutes, section 469.176, or any other <br/>
<a id="pl.70.29"></a><var>70.29</var>law to the contrary, the city of Bloomington and its port authority may extend the duration <br/>
<a id="pl.70.30"></a><var>70.30</var>limits of Tax Increment Financing District No. 1-I, containing the Bloomington Central <br/>
<a id="pl.70.31"></a><var>70.31</var>Station property for a period through December 31, 2038.<br/>
<a id="pl.71.1"></a><var>71.1</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance of the governing <br/>
<a id="pl.71.2"></a><var>71.2</var>body of the city of Bloomington with the requirements of Minnesota Statutes, sections <br/>
<a id="pl.71.3"></a><var>71.3</var>469.1782, subdivision 2, and 645.021, subdivision 3.<br/>
<br/>
<a id="bill.4.12.0"></a><a id="pl.71.4"></a><var>71.4</var>    Sec. 12. <b>BROOKLYN PARK; TAX INCREMENT FINANCING.</b><br/>
<a id="pl.71.5"></a><var>71.5</var>    Subdivision 1. <b>Temporary authority extended.</b> The Brooklyn Park Economic <br/>
<a id="pl.71.6"></a><var>71.6</var>Development Authority may exercise power under Minnesota Statutes, section 469.176, <br/>
<a id="pl.71.7"></a><var>71.7</var>subdivision 4m, to assist in development of a hotel and an aquatic performance and <br/>
<a id="pl.71.8"></a><var>71.8</var>wellness center located on parcel number 2911921340004 in the city of Brooklyn Park, if <br/>
<a id="pl.71.9"></a><var>71.9</var>construction on some portion of that parcel commences before July 1, 2013. The authority <br/>
<a id="pl.71.10"></a><var>71.10</var>to spend increments for those purposes expires on July 1, 2014.<br/>
<a id="pl.71.11"></a><var>71.11</var>    Subd. 2. <b>Five-year rule.</b> The requirement of Minnesota Statutes, section 469.1763, <br/>
<a id="pl.71.12"></a><var>71.12</var>subdivision 3, that activities must be undertaken within a five-year period from the date <br/>
<a id="pl.71.13"></a><var>71.13</var>of certification of a tax increment financing district, is considered to be met for Tax <br/>
<a id="pl.71.14"></a><var>71.14</var>Increment Financing District No. 23 in the city of Brooklyn Park if the activities were <br/>
<a id="pl.71.15"></a><var>71.15</var>undertaken by July 1, 2014.<br/>
<a id="pl.71.16"></a><var>71.16</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance by the city of <br/>
<a id="pl.71.17"></a><var>71.17</var>Brooklyn Park with the requirements of Minnesota Statutes, section 645.021, subdivision <br/>
<a id="pl.71.18"></a><var>71.18</var>3.<br/>
<br/>
<a id="bill.4.13.0"></a><a id="pl.71.19"></a><var>71.19</var>    Sec. 13. <b>DAKOTA COUNTY COMMUNITY DEVELOPMENT AUTHORITY; </b><br/>
<a id="pl.71.20"></a><var>71.20</var><b>TAX INCREMENT FINANCING DISTRICT.</b><br/>
<a id="pl.71.21"></a><var>71.21</var>    Subdivision 1. <b>Authorization.</b> Notwithstanding the provisions of any other law, <br/>
<a id="pl.71.22"></a><var>71.22</var>the Dakota County Community Development Authority may establish a redevelopment <br/>
<a id="pl.71.23"></a><var>71.23</var>tax increment financing district comprised of the properties that (1) were included in the <br/>
<a id="pl.71.24"></a><var>71.24</var>CDA 10 Robert and South Street district in the city of West St. Paul, and (2) were not <br/>
<a id="pl.71.25"></a><var>71.25</var>decertified before July 1, 2012. The district created under this section terminates no later <br/>
<a id="pl.71.26"></a><var>71.26</var>than December 31, 2027.<br/>
<a id="pl.71.27"></a><var>71.27</var>    Subd. 2. <b>Special rules.</b> The requirements for qualifying a redevelopment district <br/>
<a id="pl.71.28"></a><var>71.28</var>under Minnesota Statutes, section 469.174, subdivision 10, do not apply to parcels located <br/>
<a id="pl.71.29"></a><var>71.29</var>within the district. Minnesota Statutes, section 469.176, subdivisions 4g, paragraph (c), <br/>
<a id="pl.71.30"></a><var>71.30</var>clause (1), item (ii), 4j, and 4l, do not apply to the district. The original tax capacity <br/>
<a id="pl.71.31"></a><var>71.31</var>of the district is $93,239.<br/>
<a id="pl.71.32"></a><var>71.32</var>    Subd. 3. <b>Authorized expenditures.</b> Tax increment from the district may be <br/>
<a id="pl.71.33"></a><var>71.33</var>expended to pay for any eligible activities authorized by Minnesota Statutes, chapter <br/>
<a id="pl.71.34"></a><var>71.34</var>469, within the redevelopment area that includes the district. All such expenditures are <br/>
<a id="pl.72.1"></a><var>72.1</var>deemed to be activities within the district under Minnesota Statutes, section 469.1763, <br/>
<a id="pl.72.2"></a><var>72.2</var>subdivisions 2, 3, and 4.<br/>
<a id="pl.72.3"></a><var>72.3</var>    Subd. 4. <b>Adjusted net tax capacity.</b> The captured tax capacity of the district must <br/>
<a id="pl.72.4"></a><var>72.4</var>be included in the adjusted net tax capacity of the city, county, and school district for the <br/>
<a id="pl.72.5"></a><var>72.5</var>purposes of determining local government aid, education aid, and county program aid. <br/>
<a id="pl.72.6"></a><var>72.6</var>The county auditor shall report to the commissioner of revenue the amount of the captured <br/>
<a id="pl.72.7"></a><var>72.7</var>tax capacity for the district at the time the assessment abstracts are filed.<br/>
<a id="pl.72.8"></a><var>72.8</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance by the governing <br/>
<a id="pl.72.9"></a><var>72.9</var>body of the Dakota County Community Development Authority with the requirements of <br/>
<a id="pl.72.10"></a><var>72.10</var>Minnesota Statutes, section 645.021, subdivision 3.<br/>
<br/>
<a id="bill.4.14.0"></a><a id="pl.72.11"></a><var>72.11</var>    Sec. 14. <b>ST. CLOUD ECONOMIC DEVELOPMENT AUTHORITY; </b><br/>
<a id="pl.72.12"></a><var>72.12</var><b>EXPENDITURE OF FUND BALANCE.</b><br/>
<a id="pl.72.13"></a><var>72.13</var>Notwithstanding any other law to the contrary or the provisions of the tax increment <br/>
<a id="pl.72.14"></a><var>72.14</var>financing plan, the economic development authority for the city of St. Cloud may <br/>
<a id="pl.72.15"></a><var>72.15</var>authorize the expenditure of the balance of the tax increments from tax increment district <br/>
<a id="pl.72.16"></a><var>72.16</var>no. 2, commonly referred to as the Norwest District, within the Central Area Urban <br/>
<a id="pl.72.17"></a><var>72.17</var>Renewal Project area of the city. Eligible expenditures are for public infrastructure <br/>
<a id="pl.72.18"></a><var>72.18</var>improvements, including but not limited to improvements as further described in the city <br/>
<a id="pl.72.19"></a><var>72.19</var>of St. Cloud's 2003 Comprehensive Plan and 1996 Downtown Streetscape Plan, which <br/>
<a id="pl.72.20"></a><var>72.20</var>will further economic development in the Central Area Urban Renewal Project area of the <br/>
<a id="pl.72.21"></a><var>72.21</var>city. All tax increments from tax increment financing district no. 2 expended are ratified <br/>
<a id="pl.72.22"></a><var>72.22</var>and approved and are conclusively deemed to be spent in compliance with applicable law. <br/>
<a id="pl.72.23"></a><var>72.23</var>Any funds remaining in tax increment financing district no. 2 must be expended pursuant <br/>
<a id="pl.72.24"></a><var>72.24</var>to this section by December 31, 2015, or distributed as excess increments under Minnesota <br/>
<a id="pl.72.25"></a><var>72.25</var>Statutes, section 469.176, subdivision 2.<br/>
<a id="pl.72.26"></a><var>72.26</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment, <br/>
<a id="pl.72.27"></a><var>72.27</var>upon approval by the governing body of the city of St. Cloud and compliance with <br/>
<a id="pl.72.28"></a><var>72.28</var>Minnesota Statutes, section 645.021, subdivision 3.<br/>
<br/>
<a id="bill.5.0.0"></a>

<a id="bill.5.1.0"></a><a id="pl.72.31"></a><var>72.31</var>    Section 1. Minnesota Statutes 2010, section 38.18, is amended to read:<br/>
<a id="pl.72.32"></a><var>72.32</var><b>38.18 COUNTY FAIRGROUNDS; IMPROVEMENT AIDED.</b><br/>
<a id="pl.73.1"></a><var>73.1</var>Any Each town, statutory city, or school district in this state, now or hereafter at <br/>
<a id="pl.73.2"></a><var>73.2</var>any time having a an estimated market value of all its taxable property, exclusive of <br/>
<a id="pl.73.3"></a><var>73.3</var>money and credits, of more than $105,000,000, and having a county fair located within its <br/>
<a id="pl.73.4"></a><var>73.4</var>corporate limits, is hereby authorized to aid in defraying may pay part of the expense of <br/>
<a id="pl.73.5"></a><var>73.5</var>improving any such the fairground, by appropriating and paying over to the treasurer of <br/>
<a id="pl.73.6"></a><var>73.6</var>the county owning the fairground such sum of money, not exceeding $10,000, for each <br/>
<a id="pl.73.7"></a><var>73.7</var>of the political subdivisions, as the its governing body of the town, statutory city, or <br/>
<a id="pl.73.8"></a><var>73.8</var>school district may, by resolution, determine determines to be for the best interest of the <br/>
<a id="pl.73.9"></a><var>73.9</var>political subdivision,. The sums so appropriated to amounts paid to the county must be <br/>
<a id="pl.73.10"></a><var>73.10</var>used solely for the purpose of aiding in the improvement of to improve the fairground <br/>
<a id="pl.73.11"></a><var>73.11</var>in such the manner as the county board of the county shall determine determines to be <br/>
<a id="pl.73.12"></a><var>73.12</var>for the best interest of the county.<br/>
<br/>
<a id="bill.5.2.0"></a><a id="pl.73.13"></a><var>73.13</var>    Sec. 2. Minnesota Statutes 2010, section 40A.15, subdivision 2, is amended to read:<br/>
<a id="pl.73.14"></a><var>73.14</var>    Subd. 2. <b>Eligible recipients.</b> All counties within the state, municipalities that <br/>
<a id="pl.73.15"></a><var>73.15</var>prepare plans and official controls instead of a county, and districts are eligible for <br/>
<a id="pl.73.16"></a><var>73.16</var>assistance under the program. Counties and districts may apply for assistance on behalf <br/>
<a id="pl.73.17"></a><var>73.17</var>of other municipalities. In order to be eligible for financial assistance a county or <br/>
<a id="pl.73.18"></a><var>73.18</var>municipality must agree to levy at least 0.01209 percent of taxable estimated market <br/>
<a id="pl.73.19"></a><var>73.19</var>value for agricultural land preservation and conservation activities or otherwise spend the <br/>
<a id="pl.73.20"></a><var>73.20</var>equivalent amount of local money on those activities, or spend $15,000 of local money, <br/>
<a id="pl.73.21"></a><var>73.21</var>whichever is less.<br/>
<br/>
<a id="bill.5.3.0"></a><a id="pl.73.22"></a><var>73.22</var>    Sec. 3. Minnesota Statutes 2010, section 69.011, subdivision 1, is amended to read:<br/>
<a id="pl.73.23"></a><var>73.23</var>    Subdivision 1. <b>Definitions.</b> Unless the language or context clearly indicates that <br/>
<a id="pl.73.24"></a><var>73.24</var>a different meaning is intended, the following words and terms, for the purposes of this <br/>
<a id="pl.73.25"></a><var>73.25</var>chapter and chapters 423, 423A, 424 and 424A, have the meanings ascribed to them:<br/>
<a id="pl.73.26"></a><var>73.26</var>    (a) "Commissioner" means the commissioner of revenue.<br/>
<a id="pl.73.27"></a><var>73.27</var>    (b) "Municipality" means:<br/>
<a id="pl.73.28"></a><var>73.28</var>    (1) a home rule charter or statutory city;<br/>
<a id="pl.73.29"></a><var>73.29</var>    (2) an organized town;<br/>
<a id="pl.73.30"></a><var>73.30</var>    (3) a park district subject to chapter 398;<br/>
<a id="pl.73.31"></a><var>73.31</var>    (4) the University of Minnesota;<br/>
<a id="pl.73.32"></a><var>73.32</var>    (5) for purposes of the fire state aid program only, an American Indian tribal <br/>
<a id="pl.73.33"></a><var>73.33</var>government entity located within a federally recognized American Indian reservation;<br/>
<a id="pl.74.1"></a><var>74.1</var>    (6) for purposes of the police state aid program only, an American Indian tribal <br/>
<a id="pl.74.2"></a><var>74.2</var>government with a tribal police department which exercises state arrest powers under <br/>
<a id="pl.74.3"></a><var>74.3</var>section 
         <statute_ref>626.90</statute_ref>, 
         <statute_ref>626.91</statute_ref>, 
         <statute_ref>626.92</statute_ref>, or 
         <statute_ref>626.93</statute_ref>;<br/>
<a id="pl.74.4"></a><var>74.4</var>    (7) for purposes of the police state aid program only, the Metropolitan Airports <br/>
<a id="pl.74.5"></a><var>74.5</var>Commission; and<br/>
<a id="pl.74.6"></a><var>74.6</var>    (8) for purposes of the police state aid program only, the Department of Natural <br/>
<a id="pl.74.7"></a><var>74.7</var>Resources and the Department of Public Safety with respect to peace officers covered <br/>
<a id="pl.74.8"></a><var>74.8</var>under chapter 352B.<br/>
<a id="pl.74.9"></a><var>74.9</var>    (c) "Minnesota Firetown Premium Report" means a form prescribed by the <br/>
<a id="pl.74.10"></a><var>74.10</var>commissioner containing space for reporting by insurers of fire, lightning, sprinkler <br/>
<a id="pl.74.11"></a><var>74.11</var>leakage and extended coverage premiums received upon risks located or to be performed <br/>
<a id="pl.74.12"></a><var>74.12</var>in this state less return premiums and dividends.<br/>
<a id="pl.74.13"></a><var>74.13</var>    (d) "Firetown" means the area serviced by any municipality having a qualified fire <br/>
<a id="pl.74.14"></a><var>74.14</var>department or a qualified incorporated fire department having a subsidiary volunteer <br/>
<a id="pl.74.15"></a><var>74.15</var>firefighters' relief association.<br/>
<a id="pl.74.16"></a><var>74.16</var>    (e) "Estimated market value" means latest available estimated market value of all <br/>
<a id="pl.74.17"></a><var>74.17</var>property in a taxing jurisdiction, whether the property is subject to taxation, or exempt <br/>
<a id="pl.74.18"></a><var>74.18</var>from ad valorem taxation obtained from information which appears on abstracts filed with <br/>
<a id="pl.74.19"></a><var>74.19</var>the commissioner of revenue or equalized by the State Board of Equalization.<br/>
<a id="pl.74.20"></a><var>74.20</var>    (f) "Minnesota Aid to Police Premium Report" means a form prescribed by the <br/>
<a id="pl.74.21"></a><var>74.21</var>commissioner for reporting by each fire and casualty insurer of all premiums received <br/>
<a id="pl.74.22"></a><var>74.22</var>upon direct business received by it in this state, or by its agents for it, in cash or otherwise, <br/>
<a id="pl.74.23"></a><var>74.23</var>during the preceding calendar year, with reference to insurance written for insuring against <br/>
<a id="pl.74.24"></a><var>74.24</var>the perils contained in auto insurance coverages as reported in the Minnesota business <br/>
<a id="pl.74.25"></a><var>74.25</var>schedule of the annual financial statement which each insurer is required to file with <br/>
<a id="pl.74.26"></a><var>74.26</var>the commissioner in accordance with the governing laws or rules less return premiums <br/>
<a id="pl.74.27"></a><var>74.27</var>and dividends.<br/>
<a id="pl.74.28"></a><var>74.28</var>    (g) "Peace officer" means any person:<br/>
<a id="pl.74.29"></a><var>74.29</var>    (1) whose primary source of income derived from wages is from direct employment <br/>
<a id="pl.74.30"></a><var>74.30</var>by a municipality or county as a law enforcement officer on a full-time basis of not less <br/>
<a id="pl.74.31"></a><var>74.31</var>than 30 hours per week;<br/>
<a id="pl.74.32"></a><var>74.32</var>    (2) who has been employed for a minimum of six months prior to December 31 <br/>
<a id="pl.74.33"></a><var>74.33</var>preceding the date of the current year's certification under subdivision 2, clause (b);<br/>
<a id="pl.74.34"></a><var>74.34</var>    (3) who is sworn to enforce the general criminal laws of the state and local <br/>
<a id="pl.74.35"></a><var>74.35</var>ordinances;<br/>
<a id="pl.75.1"></a><var>75.1</var>    (4) who is licensed by the Peace Officers Standards and Training Board and is <br/>
<a id="pl.75.2"></a><var>75.2</var>authorized to arrest with a warrant; and<br/>
<a id="pl.75.3"></a><var>75.3</var>    (5) who is a member of the Minneapolis Police Relief Association, the State Patrol <br/>
<a id="pl.75.4"></a><var>75.4</var>retirement plan, or the public employees police and fire fund.<br/>
<a id="pl.75.5"></a><var>75.5</var>    (h) "Full-time equivalent number of peace officers providing contract service" means <br/>
<a id="pl.75.6"></a><var>75.6</var>the integral or fractional number of peace officers which would be necessary to provide <br/>
<a id="pl.75.7"></a><var>75.7</var>the contract service if all peace officers providing service were employed on a full-time <br/>
<a id="pl.75.8"></a><var>75.8</var>basis as defined by the employing unit and the municipality receiving the contract service.<br/>
<a id="pl.75.9"></a><var>75.9</var>    (i) "Retirement benefits other than a service pension" means any disbursement <br/>
<a id="pl.75.10"></a><var>75.10</var>authorized under section 
         <statute_ref>424A.05, subdivision 3</statute_ref>, clauses (3) and (4).<br/>
<a id="pl.75.11"></a><var>75.11</var>    (j) "Municipal clerk, municipal clerk-treasurer, or county auditor" means the person <br/>
<a id="pl.75.12"></a><var>75.12</var>who was elected or appointed to the specified position or, in the absence of the person, <br/>
<a id="pl.75.13"></a><var>75.13</var>another person who is designated by the applicable governing body. In a park district, <br/>
<a id="pl.75.14"></a><var>75.14</var>the clerk is the secretary of the board of park district commissioners. In the case of the <br/>
<a id="pl.75.15"></a><var>75.15</var>University of Minnesota, the clerk is that official designated by the Board of Regents. <br/>
<a id="pl.75.16"></a><var>75.16</var>For the Metropolitan Airports Commission, the clerk is the person designated by the <br/>
<a id="pl.75.17"></a><var>75.17</var>commission. For the Department of Natural Resources or the Department of Public Safety, <br/>
<a id="pl.75.18"></a><var>75.18</var>the clerk is the respective commissioner. For a tribal police department which exercises <br/>
<a id="pl.75.19"></a><var>75.19</var>state arrest powers under section 
         <statute_ref>626.90</statute_ref>, 
         <statute_ref>626.91</statute_ref>, 
         <statute_ref>626.92</statute_ref>, or 
         <statute_ref>626.93</statute_ref>, the clerk is the person <br/>
<a id="pl.75.20"></a><var>75.20</var>designated by the applicable American Indian tribal government.<br/>
<a id="pl.75.21"></a><var>75.21</var>(k) "Voluntary statewide lump-sum volunteer firefighter retirement plan" means the <br/>
<a id="pl.75.22"></a><var>75.22</var>retirement plan established by chapter 353G.<br/>
<br/>
<a id="bill.5.4.0"></a><a id="pl.75.23"></a><var>75.23</var>    Sec. 4. Minnesota Statutes 2010, section 69.021, subdivision 7, is amended to read:<br/>
<a id="pl.75.24"></a><var>75.24</var>    Subd. 7. <b>Apportionment of fire state aid to municipalities and relief associations.</b><br/>
<a id="pl.75.25"></a><var>75.25</var>(a) The commissioner shall apportion the fire state aid relative to the premiums reported <br/>
<a id="pl.75.26"></a><var>75.26</var>on the Minnesota Firetown Premium Reports filed under this chapter to each municipality <br/>
<a id="pl.75.27"></a><var>75.27</var>and/or firefighters relief association.<br/>
<a id="pl.75.28"></a><var>75.28</var>(b) The commissioner shall calculate an initial fire state aid allocation amount for <br/>
<a id="pl.75.29"></a><var>75.29</var>each municipality or fire department under paragraph (c) and a minimum fire state aid <br/>
<a id="pl.75.30"></a><var>75.30</var>allocation amount for each municipality or fire department under paragraph (d). The <br/>
<a id="pl.75.31"></a><var>75.31</var>municipality or fire department must receive the larger fire state aid amount.<br/>
<a id="pl.75.32"></a><var>75.32</var>(c) The initial fire state aid allocation amount is the amount available for <br/>
<a id="pl.75.33"></a><var>75.33</var>apportionment as fire state aid under subdivision 5, without inclusion of any additional <br/>
<a id="pl.75.34"></a><var>75.34</var>funding amount to support a minimum fire state aid amount under section 
         <statute_ref>423A.02, <br/>
<a id="pl.75.35"></a><var>75.35</var>subdivision 3
         </statute_ref>, allocated one-half in proportion to the population as shown in the last <br/>
<a id="pl.76.1"></a><var>76.1</var>official statewide federal census for each fire town and one-half in proportion to the <br/>
<a id="pl.76.2"></a><var>76.2</var>estimated market value of each fire town, including (1) the estimated market value of <br/>
<a id="pl.76.3"></a><var>76.3</var>tax-exempt property and (2) the estimated market value of natural resources lands <br/>
<a id="pl.76.4"></a><var>76.4</var>receiving in lieu payments under sections 
         <statute_ref>477A.11 </statute_ref>to 
         <statute_ref>477A.14</statute_ref>, but excluding the <br/>
<a id="pl.76.5"></a><var>76.5</var>estimated market value of minerals. In the case of incorporated or municipal fire <br/>
<a id="pl.76.6"></a><var>76.6</var>departments furnishing fire protection to other cities, towns, or townships as evidenced <br/>
<a id="pl.76.7"></a><var>76.7</var>by valid fire service contracts filed with the commissioner, the distribution must be <br/>
<a id="pl.76.8"></a><var>76.8</var>adjusted proportionately to take into consideration the crossover fire protection service. <br/>
<a id="pl.76.9"></a><var>76.9</var>Necessary adjustments must be made to subsequent apportionments. In the case of <br/>
<a id="pl.76.10"></a><var>76.10</var>municipalities or independent fire departments qualifying for the aid, the commissioner <br/>
<a id="pl.76.11"></a><var>76.11</var>shall calculate the state aid for the municipality or relief association on the basis of the <br/>
<a id="pl.76.12"></a><var>76.12</var>population and the estimated market value of the area furnished fire protection service <br/>
<a id="pl.76.13"></a><var>76.13</var>by the fire department as evidenced by duly executed and valid fire service agreements <br/>
<a id="pl.76.14"></a><var>76.14</var>filed with the commissioner. If one or more fire departments are furnishing contracted fire <br/>
<a id="pl.76.15"></a><var>76.15</var>service to a city, town, or township, only the population and estimated market value of the <br/>
<a id="pl.76.16"></a><var>76.16</var>area served by each fire department may be considered in calculating the state aid and <br/>
<a id="pl.76.17"></a><var>76.17</var>the fire departments furnishing service shall enter into an agreement apportioning among <br/>
<a id="pl.76.18"></a><var>76.18</var>themselves the percent of the population and the estimated market value of each service <br/>
<a id="pl.76.19"></a><var>76.19</var>area. The agreement must be in writing and must be filed with the commissioner.<br/>
<a id="pl.76.20"></a><var>76.20</var>(d) The minimum fire state aid allocation amount is the amount in addition to the <br/>
<a id="pl.76.21"></a><var>76.21</var>initial fire state allocation amount that is derived from any additional funding amount <br/>
<a id="pl.76.22"></a><var>76.22</var>to support a minimum fire state aid amount under section 
         <statute_ref>423A.02, subdivision 3</statute_ref>, and <br/>
<a id="pl.76.23"></a><var>76.23</var>allocated to municipalities with volunteer firefighters relief associations or covered by the <br/>
<a id="pl.76.24"></a><var>76.24</var>voluntary statewide lump-sum volunteer firefighter retirement plan based on the number <br/>
<a id="pl.76.25"></a><var>76.25</var>of active volunteer firefighters who are members of the relief association as reported <br/>
<a id="pl.76.26"></a><var>76.26</var>in the annual financial reporting for the calendar year 1993 to the Office of the State <br/>
<a id="pl.76.27"></a><var>76.27</var>Auditor, but not to exceed 30 active volunteer firefighters, so that all municipalities or <br/>
<a id="pl.76.28"></a><var>76.28</var>fire departments with volunteer firefighters relief associations receive in total at least a <br/>
<a id="pl.76.29"></a><var>76.29</var>minimum fire state aid amount per 1993 active volunteer firefighter to a maximum of <br/>
<a id="pl.76.30"></a><var>76.30</var>30 firefighters. If a relief association is established after calendar year 1993 and before <br/>
<a id="pl.76.31"></a><var>76.31</var>calendar year 2000, the number of active volunteer firefighters who are members of the <br/>
<a id="pl.76.32"></a><var>76.32</var>relief association as reported in the annual financial reporting for calendar year 1998 <br/>
<a id="pl.76.33"></a><var>76.33</var>to the Office of the State Auditor, but not to exceed 30 active volunteer firefighters, <br/>
<a id="pl.76.34"></a><var>76.34</var>shall be used in this determination. If a relief association is established after calendar <br/>
<a id="pl.76.35"></a><var>76.35</var>year 1999, the number of active volunteer firefighters who are members of the relief <br/>
<a id="pl.76.36"></a><var>76.36</var>association as reported in the first annual financial reporting submitted to the Office of <br/>
<a id="pl.77.1"></a><var>77.1</var>the State Auditor, but not to exceed 20 active volunteer firefighters, must be used in this <br/>
<a id="pl.77.2"></a><var>77.2</var>determination. If a relief association is terminated as a result of providing retirement <br/>
<a id="pl.77.3"></a><var>77.3</var>coverage for volunteer firefighters by the voluntary statewide lump-sum volunteer <br/>
<a id="pl.77.4"></a><var>77.4</var>firefighter retirement plan under chapter 353G, the number of active volunteer firefighters <br/>
<a id="pl.77.5"></a><var>77.5</var>of the municipality covered by the statewide plan as certified by the executive director of <br/>
<a id="pl.77.6"></a><var>77.6</var>the Public Employees Retirement Association to the commissioner and the state auditor, <br/>
<a id="pl.77.7"></a><var>77.7</var>but not to exceed 30 active firefighters, must be used in this determination.<br/>
<a id="pl.77.8"></a><var>77.8</var>(e) Unless the firefighters of the applicable fire department are members of the <br/>
<a id="pl.77.9"></a><var>77.9</var>voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid must <br/>
<a id="pl.77.10"></a><var>77.10</var>be paid to the treasurer of the municipality where the fire department is located and the <br/>
<a id="pl.77.11"></a><var>77.11</var>treasurer of the municipality shall, within 30 days of receipt of the fire state aid, transmit <br/>
<a id="pl.77.12"></a><var>77.12</var>the aid to the relief association if the relief association has filed a financial report with the <br/>
<a id="pl.77.13"></a><var>77.13</var>treasurer of the municipality and has met all other statutory provisions pertaining to the <br/>
<a id="pl.77.14"></a><var>77.14</var>aid apportionment. If the firefighters of the applicable fire department are members of <br/>
<a id="pl.77.15"></a><var>77.15</var>the voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid <br/>
<a id="pl.77.16"></a><var>77.16</var>must be paid to the executive director of the Public Employees Retirement Association <br/>
<a id="pl.77.17"></a><var>77.17</var>and deposited in the voluntary statewide lump-sum volunteer firefighter retirement fund.<br/>
<a id="pl.77.18"></a><var>77.18</var>(f) The commissioner may make rules to permit the administration of the provisions <br/>
<a id="pl.77.19"></a><var>77.19</var>of this section.<br/>
<a id="pl.77.20"></a><var>77.20</var>(g) Any adjustments needed to correct prior misallocations must be made to <br/>
<a id="pl.77.21"></a><var>77.21</var>subsequent apportionments.<br/>
<br/>
<a id="bill.5.5.0"></a><a id="pl.77.22"></a><var>77.22</var>    Sec. 5. Minnesota Statutes 2010, section 69.021, subdivision 8, is amended to read:<br/>
<a id="pl.77.23"></a><var>77.23</var>    Subd. 8. <b>Population and </b><b>estimated </b><b>market value.</b> (a) In computations relating to <br/>
<a id="pl.77.24"></a><var>77.24</var>fire state aid requiring the use of population figures, only official statewide federal census <br/>
<a id="pl.77.25"></a><var>77.25</var>figures are to be used. Increases or decreases in population disclosed by reason of any <br/>
<a id="pl.77.26"></a><var>77.26</var>special census must not be taken into consideration.<br/>
<a id="pl.77.27"></a><var>77.27</var>(b) In calculations relating to fire state aid requiring the use of estimated market <br/>
<a id="pl.77.28"></a><var>77.28</var>value property figures, only the latest available estimated market value property figures <br/>
<a id="pl.77.29"></a><var>77.29</var>may be used.<br/>
<br/>
<a id="bill.5.6.0"></a><a id="pl.77.30"></a><var>77.30</var>    Sec. 6. Minnesota Statutes 2010, section 88.51, subdivision 3, is amended to read:<br/>
<a id="pl.77.31"></a><var>77.31</var>    Subd. 3. <b>Determination of market value.</b> In determining the net tax capacity of <br/>
<a id="pl.77.32"></a><var>77.32</var>property within any taxing district the value of the surface of lands within any auxiliary <br/>
<a id="pl.77.33"></a><var>77.33</var>forest therein, as determined by the county board under the provisions of section 
         <statute_ref>88.48, <br/>
<a id="pl.78.1"></a><var>78.1</var>subdivision 3
         </statute_ref>, shall, for all purposes except the levying of taxes on lands within any such <br/>
<a id="pl.78.2"></a><var>78.2</var>forest, be deemed the estimated market value thereof.<br/>
<br/>
<a id="bill.5.7.0"></a><a id="pl.78.3"></a><var>78.3</var>    Sec. 7. Minnesota Statutes 2010, section 103B.245, subdivision 3, is amended to read:<br/>
<a id="pl.78.4"></a><var>78.4</var>    Subd. 3. <b>Tax.</b> After adoption of the ordinance under subdivision 2, a local <br/>
<a id="pl.78.5"></a><var>78.5</var>government unit may annually levy a tax on all taxable property in the district for the <br/>
<a id="pl.78.6"></a><var>78.6</var>purposes for which the tax district is established. The tax may not exceed 0.02418 percent <br/>
<a id="pl.78.7"></a><var>78.7</var>of estimated market value on taxable property located in rural towns other than urban <br/>
<a id="pl.78.8"></a><var>78.8</var>towns, unless allowed by resolution of the town electors. The proceeds of the tax shall <br/>
<a id="pl.78.9"></a><var>78.9</var>be paid into a fund reserved for these purposes. Any proceeds remaining in the reserve <br/>
<a id="pl.78.10"></a><var>78.10</var>fund at the time the tax is terminated or the district is dissolved shall be transferred and <br/>
<a id="pl.78.11"></a><var>78.11</var>irrevocably pledged to the debt service fund of the local unit to be used solely to reduce <br/>
<a id="pl.78.12"></a><var>78.12</var>tax levies for bonded indebtedness of taxable property in the district.<br/>
<br/>
<a id="bill.5.8.0"></a><a id="pl.78.13"></a><var>78.13</var>    Sec. 8. Minnesota Statutes 2010, section 103B.251, subdivision 8, is amended to read:<br/>
<a id="pl.78.14"></a><var>78.14</var>    Subd. 8. <b>Tax.</b> (a) For the payment of principal and interest on the bonds issued <br/>
<a id="pl.78.15"></a><var>78.15</var>under subdivision 7 and the payment required under subdivision 6, the county shall <br/>
<a id="pl.78.16"></a><var>78.16</var>irrevocably pledge and appropriate the proceeds of a tax levied on all taxable property <br/>
<a id="pl.78.17"></a><var>78.17</var>located within the territory of the watershed management organization or subwatershed <br/>
<a id="pl.78.18"></a><var>78.18</var>unit for which the bonds are issued. Each year until the reserve for payment of the bonds <br/>
<a id="pl.78.19"></a><var>78.19</var>is sufficient to retire the bonds, the county shall levy on all taxable property in the territory <br/>
<a id="pl.78.20"></a><var>78.20</var>of the organization or unit, without respect to any statutory or other limitation on taxes, an <br/>
<a id="pl.78.21"></a><var>78.21</var>amount of taxes sufficient to pay principal and interest on the bonds and to restore any <br/>
<a id="pl.78.22"></a><var>78.22</var>deficiencies in reserves required to be maintained for payment of the bonds.<br/>
<a id="pl.78.23"></a><var>78.23</var>(b) The tax levied on rural towns other than urban towns may not exceed 0.02418 <br/>
<a id="pl.78.24"></a><var>78.24</var>percent of taxable estimated market value, unless approved by resolution of the town <br/>
<a id="pl.78.25"></a><var>78.25</var>electors.<br/>
<a id="pl.78.26"></a><var>78.26</var>(c) If at any time the amounts available from the levy on property in the territory of <br/>
<a id="pl.78.27"></a><var>78.27</var>the organization are insufficient to pay principal and interest on the bonds when due, the <br/>
<a id="pl.78.28"></a><var>78.28</var>county shall make payment from any available funds in the county treasury.<br/>
<a id="pl.78.29"></a><var>78.29</var>(d) The amount of any taxes which are required to be levied outside of the territory <br/>
<a id="pl.78.30"></a><var>78.30</var>of the watershed management organization or unit or taken from the general funds of the <br/>
<a id="pl.78.31"></a><var>78.31</var>county to pay principal or interest on the bonds shall be reimbursed to the county from <br/>
<a id="pl.78.32"></a><var>78.32</var>taxes levied within the territory of the watershed management organization or unit.<br/>
<br/>
<a id="bill.5.9.0"></a><a id="pl.78.33"></a><var>78.33</var>    Sec. 9. Minnesota Statutes 2010, section 103B.635, subdivision 2, is amended to read:<br/>
<a id="pl.79.1"></a><var>79.1</var>    Subd. 2. <b>Municipal funding of district.</b> (a) The governing body or board of <br/>
<a id="pl.79.2"></a><var>79.2</var>supervisors of each municipality in the district must provide the funds necessary to meet <br/>
<a id="pl.79.3"></a><var>79.3</var>its proportion of the total cost determined by the board, provided the total funding from <br/>
<a id="pl.79.4"></a><var>79.4</var>all municipalities in the district for the costs shall not exceed an amount equal to .00242 <br/>
<a id="pl.79.5"></a><var>79.5</var>percent of the total taxable estimated market value within the district, unless three-fourths <br/>
<a id="pl.79.6"></a><var>79.6</var>of the municipalities in the district pass a resolution concurring to the additional costs.<br/>
<a id="pl.79.7"></a><var>79.7</var>(b) The funds must be deposited in the treasury of the district in amounts and at <br/>
<a id="pl.79.8"></a><var>79.8</var>times as the treasurer of the district requires.<br/>
<br/>
<a id="bill.5.10.0"></a><a id="pl.79.9"></a><var>79.9</var>    Sec. 10. Minnesota Statutes 2010, section 103B.691, subdivision 2, is amended to read:<br/>
<a id="pl.79.10"></a><var>79.10</var>    Subd. 2. <b>Municipal funding of district.</b> (a) The governing body or board of <br/>
<a id="pl.79.11"></a><var>79.11</var>supervisors of each municipality in the district shall provide the funds necessary to <br/>
<a id="pl.79.12"></a><var>79.12</var>meet its proportion of the total cost to be borne by the municipalities as finally certified <br/>
<a id="pl.79.13"></a><var>79.13</var>by the board.<br/>
<a id="pl.79.14"></a><var>79.14</var>(b) The municipality's funds may be raised by any means within the authority of <br/>
<a id="pl.79.15"></a><var>79.15</var>the municipality. The municipalities may each levy a tax not to exceed .02418 percent of <br/>
<a id="pl.79.16"></a><var>79.16</var>taxable estimated market value on the taxable property located in the district to provide <br/>
<a id="pl.79.17"></a><var>79.17</var>the funds. The levy shall be within all other limitations provided by law.<br/>
<a id="pl.79.18"></a><var>79.18</var>(c) The funds must be deposited into the treasury of the district in amounts and at <br/>
<a id="pl.79.19"></a><var>79.19</var>times as the treasurer of the district requires.<br/>
<br/>
<a id="bill.5.11.0"></a><a id="pl.79.20"></a><var>79.20</var>    Sec. 11. Minnesota Statutes 2010, section 103D.905, subdivision 2, is amended to read:<br/>
<a id="pl.79.21"></a><var>79.21</var>    Subd. 2. <b>Organizational expense fund.</b> (a) An organizational expense fund, <br/>
<a id="pl.79.22"></a><var>79.22</var>consisting of an ad valorem tax levy, shall not exceed 0.01596 percent of taxable estimated <br/>
<a id="pl.79.23"></a><var>79.23</var>market value, or $60,000, whichever is less. The money in the fund shall be used for <br/>
<a id="pl.79.24"></a><var>79.24</var>organizational expenses and preparation of the watershed management plan for projects.<br/>
<a id="pl.79.25"></a><var>79.25</var>(b) The managers may borrow from the affected counties up to 75 percent of the <br/>
<a id="pl.79.26"></a><var>79.26</var>anticipated funds to be collected from the organizational expense fund levy and the <br/>
<a id="pl.79.27"></a><var>79.27</var>counties affected may make the advancements.<br/>
<a id="pl.79.28"></a><var>79.28</var>(c) The advancement of anticipated funds shall be apportioned among affected <br/>
<a id="pl.79.29"></a><var>79.29</var>counties in the same ratio as the net tax capacity of the area of the counties within <br/>
<a id="pl.79.30"></a><var>79.30</var>the watershed district bears to the net tax capacity of the entire watershed district. If a <br/>
<a id="pl.79.31"></a><var>79.31</var>watershed district is enlarged, an organizational expense fund may be levied against the <br/>
<a id="pl.79.32"></a><var>79.32</var>area added to the watershed district in the same manner as provided in this subdivision.<br/>
<a id="pl.79.33"></a><var>79.33</var>(d) Unexpended funds collected for the organizational expense may be transferred to <br/>
<a id="pl.79.34"></a><var>79.34</var>the administrative fund and used for the purposes of the administrative fund.<br/>
<br/>
<a id="bill.5.12.0"></a><a id="pl.80.1"></a><var>80.1</var>    Sec. 12. Minnesota Statutes 2010, section 103D.905, subdivision 3, is amended to read:<br/>
<a id="pl.80.2"></a><var>80.2</var>    Subd. 3. <b>General fund.</b> A general fund, consisting of an ad valorem tax levy, may <br/>
<a id="pl.80.3"></a><var>80.3</var>not exceed 0.048 percent of taxable estimated market value, or $250,000, whichever is <br/>
<a id="pl.80.4"></a><var>80.4</var>less. The money in the fund shall be used for general administrative expenses and for <br/>
<a id="pl.80.5"></a><var>80.5</var>the construction or implementation and maintenance of projects of common benefit to <br/>
<a id="pl.80.6"></a><var>80.6</var>the watershed district. The managers may make an annual levy for the general fund as <br/>
<a id="pl.80.7"></a><var>80.7</var>provided in section 
         <statute_ref>103D.911</statute_ref>. In addition to the annual general levy, the managers may <br/>
<a id="pl.80.8"></a><var>80.8</var>annually levy a tax not to exceed 0.00798 percent of taxable estimated market value <br/>
<a id="pl.80.9"></a><var>80.9</var>for a period not to exceed 15 consecutive years to pay the cost attributable to the basic <br/>
<a id="pl.80.10"></a><var>80.10</var>water management features of projects initiated by petition of a political subdivision <br/>
<a id="pl.80.11"></a><var>80.11</var>within the watershed district or by petition of at least 50 resident owners whose property <br/>
<a id="pl.80.12"></a><var>80.12</var>is within the watershed district.<br/>
<br/>
<a id="bill.5.13.0"></a><a id="pl.80.13"></a><var>80.13</var>    Sec. 13. Minnesota Statutes 2010, section 103D.905, subdivision 8, is amended to read:<br/>
<a id="pl.80.14"></a><var>80.14</var>    Subd. 8. <b>Survey and data acquisition fund.</b> (a) A survey and data acquisition fund <br/>
<a id="pl.80.15"></a><var>80.15</var>is established and used only if other funds are not available to the watershed district to pay <br/>
<a id="pl.80.16"></a><var>80.16</var>for making necessary surveys and acquiring data.<br/>
<a id="pl.80.17"></a><var>80.17</var>(b) The survey and data acquisition fund consists of the proceeds of a property tax <br/>
<a id="pl.80.18"></a><var>80.18</var>that can be levied only once every five years. The levy may not exceed 0.02418 percent of <br/>
<a id="pl.80.19"></a><var>80.19</var>taxable estimated market value.<br/>
<a id="pl.80.20"></a><var>80.20</var>(c) The balance of the survey and data acquisition fund may not exceed $50,000.<br/>
<a id="pl.80.21"></a><var>80.21</var>(d) In a subsequent proceeding for a project where a survey has been made, the <br/>
<a id="pl.80.22"></a><var>80.22</var>attributable cost of the survey as determined by the managers shall be included as a part of <br/>
<a id="pl.80.23"></a><var>80.23</var>the cost of the work and the sum shall be repaid to the survey and data acquisition fund.<br/>
<br/>
<a id="bill.5.14.0"></a><a id="pl.80.24"></a><var>80.24</var>    Sec. 14. Minnesota Statutes 2010, section 117.025, subdivision 7, is amended to read:<br/>
<a id="pl.80.25"></a><var>80.25</var>    Subd. 7. <b>Structurally substandard.</b> "Structurally substandard" means a building:<br/>
<a id="pl.80.26"></a><var>80.26</var>(1) that was inspected by the appropriate local government and cited for one or more <br/>
<a id="pl.80.27"></a><var>80.27</var>enforceable housing, maintenance, or building code violations;<br/>
<a id="pl.80.28"></a><var>80.28</var>(2) in which the cited building code violations involve one or more of the following:<br/>
<a id="pl.80.29"></a><var>80.29</var>(i) a roof and roof framing element;<br/>
<a id="pl.80.30"></a><var>80.30</var>(ii) support walls, beams, and headers;<br/>
<a id="pl.80.31"></a><var>80.31</var>(iii) foundation, footings, and subgrade conditions;<br/>
<a id="pl.80.32"></a><var>80.32</var>(iv) light and ventilation;<br/>
<a id="pl.80.33"></a><var>80.33</var>(v) fire protection, including egress;<br/>
<a id="pl.80.34"></a><var>80.34</var>(vi) internal utilities, including electricity, gas, and water;<br/>
<a id="pl.81.1"></a><var>81.1</var>(vii) flooring and flooring elements; or<br/>
<a id="pl.81.2"></a><var>81.2</var>(viii) walls, insulation, and exterior envelope;<br/>
<a id="pl.81.3"></a><var>81.3</var>(3) in which the cited housing, maintenance, or building code violations have not <br/>
<a id="pl.81.4"></a><var>81.4</var>been remedied after two notices to cure the noncompliance; and<br/>
<a id="pl.81.5"></a><var>81.5</var>(4) has uncured housing, maintenance, and building code violations, satisfaction of <br/>
<a id="pl.81.6"></a><var>81.6</var>which would cost more than 50 percent of the assessor's taxable estimated market value <br/>
<a id="pl.81.7"></a><var>81.7</var>for the building, excluding land value, as determined under section 
         <statute_ref>273.11</statute_ref> for property <br/>
<a id="pl.81.8"></a><var>81.8</var>taxes payable in the year in which the condemnation is commenced.<br/>
<a id="pl.81.9"></a><var>81.9</var>A local government is authorized to seek from a judge or magistrate an administrative <br/>
<a id="pl.81.10"></a><var>81.10</var>warrant to gain access to inspect a specific building in a proposed development or <br/>
<a id="pl.81.11"></a><var>81.11</var>redevelopment area upon showing of probable cause that a specific code violation has <br/>
<a id="pl.81.12"></a><var>81.12</var>occurred and that the violation has not been cured, and that the owner has denied the local <br/>
<a id="pl.81.13"></a><var>81.13</var>government access to the property. Items of evidence that may support a conclusion of <br/>
<a id="pl.81.14"></a><var>81.14</var>probable cause may include recent fire or police inspections, housing inspection, exterior <br/>
<a id="pl.81.15"></a><var>81.15</var>evidence of deterioration, or other similar reliable evidence of deterioration in the specific <br/>
<a id="pl.81.16"></a><var>81.16</var>building.<br/>
<br/>
<a id="bill.5.15.0"></a><a id="pl.81.17"></a><var>81.17</var>    Sec. 15. Minnesota Statutes 2010, section 127A.48, subdivision 1, is amended to read:<br/>
<a id="pl.81.18"></a><var>81.18</var>    Subdivision 1. <b>Computation.</b> The Department of Revenue must annually conduct <br/>
<a id="pl.81.19"></a><var>81.19</var>an assessment/sales ratio study of the taxable property in each county, city, town, and <br/>
<a id="pl.81.20"></a><var>81.20</var>school district in accordance with the procedures in subdivisions 2 and 3. Based upon the <br/>
<a id="pl.81.21"></a><var>81.21</var>results of this assessment/sales ratio study, the Department of Revenue must determine an <br/>
<a id="pl.81.22"></a><var>81.22</var>aggregate equalized net tax capacity for the various classes of taxable property in each <br/>
<a id="pl.81.23"></a><var>81.23</var>taxing district, the aggregate of which tax capacity shall be is designated as the adjusted <br/>
<a id="pl.81.24"></a><var>81.24</var>net tax capacity. The adjusted net tax capacity must be reduced by the captured tax <br/>
<a id="pl.81.25"></a><var>81.25</var>capacity of tax increment districts under section 469.177, subdivision 2, fiscal disparities <br/>
<a id="pl.81.26"></a><var>81.26</var>contribution tax capacities under sections 276A.06 and 473F.08, and the tax capacity of <br/>
<a id="pl.81.27"></a><var>81.27</var>transmission lines required to be subtracted from the local tax base under section 273.425; <br/>
<a id="pl.81.28"></a><var>81.28</var>and increased by fiscal disparities distribution tax capacities under sections 276A.06 and <br/>
<a id="pl.81.29"></a><var>81.29</var>473F.08. The adjusted net tax capacities shall be determined using the net tax capacity <br/>
<a id="pl.81.30"></a><var>81.30</var>percentages in effect for the assessment year following the assessment year of the study. <br/>
<a id="pl.81.31"></a><var>81.31</var>The Department of Revenue must make whatever estimates are necessary to account for <br/>
<a id="pl.81.32"></a><var>81.32</var>changes in the classification system. The Department of Revenue may incur the expense <br/>
<a id="pl.81.33"></a><var>81.33</var>necessary to make the determinations. The commissioner of revenue may reimburse any <br/>
<a id="pl.81.34"></a><var>81.34</var>county or governmental official for requested services performed in ascertaining the <br/>
<a id="pl.81.35"></a><var>81.35</var>adjusted net tax capacity. On or before March 15 annually, the Department of Revenue <br/>
<a id="pl.82.1"></a><var>82.1</var>shall file with the chair of the Tax Committee of the house of representatives and the <br/>
<a id="pl.82.2"></a><var>82.2</var>chair of the Committee on Taxes and Tax laws of the senate a report of adjusted net tax <br/>
<a id="pl.82.3"></a><var>82.3</var>capacities for school districts. On or before June 15 annually, the Department of Revenue <br/>
<a id="pl.82.4"></a><var>82.4</var>shall file its final report on the adjusted net tax capacities for school districts established <br/>
<a id="pl.82.5"></a><var>82.5</var>by the previous year's assessments and the current year's net tax capacity percentages with <br/>
<a id="pl.82.6"></a><var>82.6</var>the commissioner of education and each county auditor for those school districts for <br/>
<a id="pl.82.7"></a><var>82.7</var>which the auditor has the responsibility for determination of local tax rates. A copy of <br/>
<a id="pl.82.8"></a><var>82.8</var>the report so filed shall be mailed to the clerk of each school district involved and to the <br/>
<a id="pl.82.9"></a><var>82.9</var>county assessor or supervisor of assessments of the county or counties in which each <br/>
<a id="pl.82.10"></a><var>82.10</var>school district is located.<br/>
<a id="pl.82.11"></a><var>82.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.16.0"></a><a id="pl.82.12"></a><var>82.12</var>    Sec. 16. Minnesota Statutes 2010, section 138.053, is amended to read:<br/>
<a id="pl.82.13"></a><var>82.13</var><b>138.053 COUNTY HISTORICAL SOCIETY; TAX LEVY; CITIES OR </b><br/>
<a id="pl.82.14"></a><var>82.14</var><b>TOWNS.</b><br/>
<a id="pl.82.15"></a><var>82.15</var>The governing body of any home rule charter or statutory city or town may annually <br/>
<a id="pl.82.16"></a><var>82.16</var>appropriate from its general fund an amount not to exceed 0.02418 percent of taxable <br/>
<a id="pl.82.17"></a><var>82.17</var>estimated market value, derived from ad valorem taxes on property or other revenues, <br/>
<a id="pl.82.18"></a><var>82.18</var>to be paid to the historical society of its respective county to be used for the promotion <br/>
<a id="pl.82.19"></a><var>82.19</var>of historical work and to aid in defraying the expenses of carrying on the historical <br/>
<a id="pl.82.20"></a><var>82.20</var>work in the county. No city or town may appropriate any funds for the benefit of any <br/>
<a id="pl.82.21"></a><var>82.21</var>historical society unless the society is affiliated with and approved by the Minnesota <br/>
<a id="pl.82.22"></a><var>82.22</var>Historical Society.<br/>
<br/>
<a id="bill.5.17.0"></a><a id="pl.82.23"></a><var>82.23</var>    Sec. 17. Minnesota Statutes 2010, section 144F.01, subdivision 4, is amended to read:<br/>
<a id="pl.82.24"></a><var>82.24</var>    Subd. 4. <b>Property tax levy authority.</b> The district's board may levy a tax on the <br/>
<a id="pl.82.25"></a><var>82.25</var>taxable real and personal property in the district. The ad valorem tax levy may not <br/>
<a id="pl.82.26"></a><var>82.26</var>exceed 0.048 percent of the taxable estimated market value of the district or $400,000, <br/>
<a id="pl.82.27"></a><var>82.27</var>whichever is less. The proceeds of the levy must be used as provided in subdivision 5. <br/>
<a id="pl.82.28"></a><var>82.28</var>The board shall certify the levy at the times as provided under section 
         <statute_ref>275.07</statute_ref>. The board <br/>
<a id="pl.82.29"></a><var>82.29</var>shall provide the county with whatever information is necessary to identify the property <br/>
<a id="pl.82.30"></a><var>82.30</var>that is located within the district. If the boundaries include a part of a parcel, the entire <br/>
<a id="pl.82.31"></a><var>82.31</var>parcel shall be included in the district. The county auditors must spread, collect, and <br/>
<a id="pl.82.32"></a><var>82.32</var>distribute the proceeds of the tax at the same time and in the same manner as provided by <br/>
<a id="pl.82.33"></a><var>82.33</var>law for all other property taxes.<br/>
<br/>
<a id="bill.5.18.0"></a><a id="pl.83.1"></a><var>83.1</var>    Sec. 18. Minnesota Statutes 2010, section 162.07, subdivision 3, is amended to read:<br/>
<a id="pl.83.2"></a><var>83.2</var>    Subd. 3. <b>Computation for rural counties.</b> An amount equal to a levy of 0.01596 <br/>
<a id="pl.83.3"></a><var>83.3</var>percent on each rural county's total taxable estimated market value for the last preceding <br/>
<a id="pl.83.4"></a><var>83.4</var>calendar year shall be computed and shall be subtracted from the county's total estimated <br/>
<a id="pl.83.5"></a><var>83.5</var>construction costs. The result thereof shall be the money needs of the county. For the <br/>
<a id="pl.83.6"></a><var>83.6</var>purpose of this section, "rural counties" means all counties having a population of less <br/>
<a id="pl.83.7"></a><var>83.7</var>than 175,000.<br/>
<br/>
<a id="bill.5.19.0"></a><a id="pl.83.8"></a><var>83.8</var>    Sec. 19. Minnesota Statutes 2010, section 162.07, subdivision 4, is amended to read:<br/>
<a id="pl.83.9"></a><var>83.9</var>    Subd. 4. <b>Computation for urban counties.</b> An amount equal to a levy of 0.00967 <br/>
<a id="pl.83.10"></a><var>83.10</var>percent on each urban county's total taxable estimated market value for the last preceding <br/>
<a id="pl.83.11"></a><var>83.11</var>calendar year shall be computed and shall be subtracted from the county's total estimated <br/>
<a id="pl.83.12"></a><var>83.12</var>construction costs. The result thereof shall be the money needs of the county. For <br/>
<a id="pl.83.13"></a><var>83.13</var>the purpose of this section, "urban counties" means all counties having a population <br/>
<a id="pl.83.14"></a><var>83.14</var>of 175,000 or more.<br/>
<br/>
<a id="bill.5.20.0"></a><a id="pl.83.15"></a><var>83.15</var>    Sec. 20. Minnesota Statutes 2010, section 163.04, subdivision 3, is amended to read:<br/>
<a id="pl.83.16"></a><var>83.16</var>    Subd. 3. <b>Bridges within certain cities.</b> When the council of any statutory city or <br/>
<a id="pl.83.17"></a><var>83.17</var>city of the third or fourth class may determine that it is necessary to build or improve any <br/>
<a id="pl.83.18"></a><var>83.18</var>bridge or bridges, including approaches thereto, and any dam or retaining works connected <br/>
<a id="pl.83.19"></a><var>83.19</var>therewith, upon or forming a part of streets or highways either wholly or partly within <br/>
<a id="pl.83.20"></a><var>83.20</var>its limits, the county board shall appropriate one-half of the money as may be necessary <br/>
<a id="pl.83.21"></a><var>83.21</var>therefor from the county road and bridge fund, not exceeding during any year one-half <br/>
<a id="pl.83.22"></a><var>83.22</var>the amount of taxes paid into the county road and bridge fund during the preceding year, <br/>
<a id="pl.83.23"></a><var>83.23</var>on property within the corporate limits of the city. The appropriation shall be made upon <br/>
<a id="pl.83.24"></a><var>83.24</var>the petition of the council, which petition shall be filed by the council with the county <br/>
<a id="pl.83.25"></a><var>83.25</var>board prior to the fixing by the board of the annual county tax levy. The county board <br/>
<a id="pl.83.26"></a><var>83.26</var>shall determine the plans and specifications, shall let all necessary contracts, shall have <br/>
<a id="pl.83.27"></a><var>83.27</var>charge of construction, and upon its request, warrants in payment thereof shall be issued <br/>
<a id="pl.83.28"></a><var>83.28</var>by the county auditor, from time to time, as the construction work proceeds. Any unpaid <br/>
<a id="pl.83.29"></a><var>83.29</var>balance may be paid or advanced by the city. On petition of the council, the appropriations <br/>
<a id="pl.83.30"></a><var>83.30</var>of the county board, during not to exceed three successive years, may be made to apply <br/>
<a id="pl.83.31"></a><var>83.31</var>on the construction of the same items and to repay any money advanced by the city in <br/>
<a id="pl.83.32"></a><var>83.32</var>the construction thereof. None of the provisions of this section shall be construed to <br/>
<a id="pl.83.33"></a><var>83.33</var>be mandatory as applied to any city whose estimated market value exceeds $2,100 per <br/>
<a id="pl.83.34"></a><var>83.34</var>capita of its population.<br/>
<br/>
<a id="bill.5.21.0"></a><a id="pl.84.1"></a><var>84.1</var>    Sec. 21. Minnesota Statutes 2010, section 163.06, subdivision 6, is amended to read:<br/>
<a id="pl.84.2"></a><var>84.2</var>    Subd. 6. <b>Expenditure in certain counties.</b> In any county having not less than 95 <br/>
<a id="pl.84.3"></a><var>84.3</var>nor more than 105 full and fractional townships, and having a an estimated market value <br/>
<a id="pl.84.4"></a><var>84.4</var>of not less than $12,000,000 nor more than $21,000,000, exclusive of money and credits, <br/>
<a id="pl.84.5"></a><var>84.5</var>the county board, by resolution, may expend the funds provided in subdivision 4 in any <br/>
<a id="pl.84.6"></a><var>84.6</var>organized or unorganized township or portion thereof in such county.<br/>
<br/>
<a id="bill.5.22.0"></a><a id="pl.84.7"></a><var>84.7</var>    Sec. 22. Minnesota Statutes 2010, section 165.10, subdivision 1, is amended to read:<br/>
<a id="pl.84.8"></a><var>84.8</var>    Subdivision 1. <b>Certain counties may issue and sell.</b> The county board of any <br/>
<a id="pl.84.9"></a><var>84.9</var>county having no outstanding road and bridge bonds may issue and sell county road bonds <br/>
<a id="pl.84.10"></a><var>84.10</var>in an amount not exceeding 0.12089 percent of the estimated market value of the taxable <br/>
<a id="pl.84.11"></a><var>84.11</var>property within the county exclusive of money and credits, for the purpose of constructing, <br/>
<a id="pl.84.12"></a><var>84.12</var>reconstructing, improving, or maintaining any bridge or bridges on any highway under its <br/>
<a id="pl.84.13"></a><var>84.13</var>jurisdiction, without submitting the matter to a vote of the electors of the county.<br/>
<br/>
<a id="bill.5.23.0"></a><a id="pl.84.14"></a><var>84.14</var>    Sec. 23. Minnesota Statutes 2010, section 272.03, is amended by adding a subdivision <br/>
<a id="pl.84.15"></a><var>84.15</var>to read:<br/>
<a id="pl.84.16"></a><var>84.16</var>    Subd. 14. <b>Estimated market value.</b> "Estimated market value" means the assessor's <br/>
<a id="pl.84.17"></a><var>84.17</var>determination of market value, including the effects of any orders made under section <br/>
<a id="pl.84.18"></a><var>84.18</var>270.12 or chapter 274, for the parcel. The provisions of section 273.032 apply for certain <br/>
<a id="pl.84.19"></a><var>84.19</var>uses in determining the total estimated market value for the taxing jurisdiction.<br/>
<br/>
<a id="bill.5.24.0"></a><a id="pl.84.20"></a><var>84.20</var>    Sec. 24. Minnesota Statutes 2010, section 272.03, is amended by adding a subdivision <br/>
<a id="pl.84.21"></a><var>84.21</var>to read:<br/>
<a id="pl.84.22"></a><var>84.22</var>    Subd. 15. <b>Taxable market value.</b> "Taxable market value" means estimated market <br/>
<a id="pl.84.23"></a><var>84.23</var>value for the parcel as reduced by market value exclusions, deferments of value, or other <br/>
<a id="pl.84.24"></a><var>84.24</var>adjustments, required by law, that reduce market value before the application of class rates.<br/>
<br/>
<a id="bill.5.25.0"></a><a id="pl.84.25"></a><var>84.25</var>    Sec. 25. Minnesota Statutes 2010, section 273.032, is amended to read:<br/>
<a id="pl.84.26"></a><var>84.26</var><b>273.032 MARKET VALUE DEFINITION.</b><br/>
<a id="pl.84.27"></a><var>84.27</var>(a) Unless otherwise provided, for the purpose of determining any property tax <br/>
<a id="pl.84.28"></a><var>84.28</var>levy limitation based on market value or any limit on net debt, the issuance of bonds, <br/>
<a id="pl.84.29"></a><var>84.29</var>certificates of indebtedness, or capital notes based on market value, any qualification to <br/>
<a id="pl.84.30"></a><var>84.30</var>receive state aid based on market value, or any state aid amount based on market value, <br/>
<a id="pl.84.31"></a><var>84.31</var>the terms "market value," "taxable estimated market value," and "market valuation," <br/>
<a id="pl.84.32"></a><var>84.32</var>whether equalized or unequalized, mean the total taxable estimated market value of <br/>
<a id="pl.85.1"></a><var>85.1</var>taxable property within the local unit of government before any of the following or <br/>
<a id="pl.85.2"></a><var>85.2</var>similar adjustments for:<br/>
<a id="pl.85.3"></a><var>85.3</var>(1) the market value exclusions under:<br/>
<a id="pl.85.4"></a><var>85.4</var>(i) section 273.11, subdivisions 14a and 14c (vacant platted land);<br/>
<a id="pl.85.5"></a><var>85.5</var>(ii) section 
<statute_ref>273.11, subdivision 16</statute_ref> (certain improvements to homestead property);<br/>
<a id="pl.85.6"></a><var>85.6</var>(iii) section 273.11, subdivisions 19 and 20 (certain improvements to business <br/>
<a id="pl.85.7"></a><var>85.7</var>properties);<br/>
<a id="pl.85.8"></a><var>85.8</var>(iv) section 273.11, subdivision 21 (homestead property damaged by mold);<br/>
<a id="pl.85.9"></a><var>85.9</var>(v) section 273.11, subdivision 22 (qualifying lead hazardous reduction projects);<br/>
<a id="pl.85.10"></a><var>85.10</var>(vi) section 273.13, subdivision 34 (homestead of a disabled veteran, spouse, or <br/>
<a id="pl.85.11"></a><var>85.11</var>caregiver);<br/>
<a id="pl.85.12"></a><var>85.12</var>(vii) section 273.13, subdivision 35 (homestead market value exclusion); or<br/>
<a id="pl.85.13"></a><var>85.13</var>(2) the deferment of value under:<br/>
<a id="pl.85.14"></a><var>85.14</var>(i) the Minnesota Agricultural Property Tax Law, section 273.111;<br/>
<a id="pl.85.15"></a><var>85.15</var>(ii) the Aggregate Resource Preservation Property Tax Law, section 273.1115;<br/>
<a id="pl.85.16"></a><var>85.16</var>(iii) the Minnesota Open Space Property Tax Law, section 273.112;<br/>
<a id="pl.85.17"></a><var>85.17</var>(iv) the rural preserves property tax program, section 273.114; or<br/>
<a id="pl.85.18"></a><var>85.18</var>(v) the Metropolitan Agricultural Preserves Act, section 473H.10; or<br/>
<a id="pl.85.19"></a><var>85.19</var>(3) the adjustments to tax capacity for:<br/>
<a id="pl.85.20"></a><var>85.20</var> (i) tax increment, financing under sections 469.174 to 469.1794;<br/>
<a id="pl.85.21"></a><var>85.21</var>(ii) fiscal disparity, disparities under chapter 276A or 473F; or <br/>
<a id="pl.85.22"></a><var>85.22</var>(iii) powerline credit, or wind energy values, but after the limited market adjustments <br/>
<a id="pl.85.23"></a><var>85.23</var>under section 
<statute_ref>273.11, subdivision 1a</statute_ref>, and after the market value exclusions of certain <br/>
<a id="pl.85.24"></a><var>85.24</var>improvements to homestead property under section 
<statute_ref>273.11, subdivision 16</statute_ref> under section <br/>
<a id="pl.85.25"></a><var>85.25</var>273.425.<br/>
<a id="pl.85.26"></a><var>85.26</var>(b) Estimated market value under paragraph (a) also includes the market value <br/>
<a id="pl.85.27"></a><var>85.27</var>of tax exempt property if the applicable law specifically provides that the limitation, <br/>
<a id="pl.85.28"></a><var>85.28</var>qualification, or aid calculation includes tax exempt property.<br/>
<a id="pl.85.29"></a><var>85.29</var>(c) Unless otherwise provided, "market value," "taxable estimated market value," <br/>
<a id="pl.85.30"></a><var>85.30</var>and "market valuation" for purposes of this paragraph  property tax levy limitations and <br/>
<a id="pl.85.31"></a><var>85.31</var>calculation of state aid, refer to the taxable estimated market value for the previous <br/>
<a id="pl.85.32"></a><var>85.32</var>assessment year and for purposes of limits on net debt, the issuance of bonds, certificates of <br/>
<a id="pl.85.33"></a><var>85.33</var>indebtedness, or capital notes refer to the estimated market value as last finally equalized.<br/>
<a id="pl.85.34"></a><var>85.34</var>For the purpose of determining any net debt limit based on market value, or any limit <br/>
<a id="pl.85.35"></a><var>85.35</var>on the issuance of bonds, certificates of indebtedness, or capital notes based on market <br/>
<a id="pl.85.36"></a><var>85.36</var>value, the terms "market value," "taxable market value," and "market valuation," whether <br/>
<a id="pl.86.1"></a><var>86.1</var>equalized or unequalized, mean the total taxable market value of property within the local <br/>
<a id="pl.86.2"></a><var>86.2</var>unit of government before any adjustments for tax increment, fiscal disparity, powerline <br/>
<a id="pl.86.3"></a><var>86.3</var>credit, or wind energy values, but after the limited market value adjustments under section <br/>
<a id="pl.86.4"></a><var>86.4</var><statute_ref>273.11</statute_ref>, subdivision 1a, and after the market value exclusions of certain improvements to <br/>
<a id="pl.86.5"></a><var>86.5</var>homestead property under section 
<statute_ref>273.11</statute_ref>, subdivision 16. Unless otherwise provided, <br/>
<a id="pl.86.6"></a><var>86.6</var>"market value," "taxable market value," and "market valuation" for purposes of this <br/>
<a id="pl.86.7"></a><var>86.7</var>paragraph, mean the taxable market value as last finally equalized.<br/>
<a id="pl.86.8"></a><var>86.8</var>(d) For purposes of a provision of a home rule charter or of any special law that is <br/>
<a id="pl.86.9"></a><var>86.9</var>not codified in the statutes and that imposes a levy limitation based on market value or <br/>
<a id="pl.86.10"></a><var>86.10</var>any limit on debt, the issuance of bonds, certificates of indebtedness, or capital notes <br/>
<a id="pl.86.11"></a><var>86.11</var>based on market value, the terms "market value," "taxable market value," and "market <br/>
<a id="pl.86.12"></a><var>86.12</var>valuation," whether equalized or unequalized, mean "estimated market value" as defined <br/>
<a id="pl.86.13"></a><var>86.13</var>in paragraph (a).<br/>
<br/>
<a id="bill.5.26.0"></a><a id="pl.86.14"></a><var>86.14</var>    Sec. 26. Minnesota Statutes 2010, section 273.11, subdivision 1, is amended to read:<br/>
<a id="pl.86.15"></a><var>86.15</var>    Subdivision 1. <b>Generally.</b> Except as provided in this section or section 
         <statute_ref>273.17, <br/>
<a id="pl.86.16"></a><var>86.16</var>subdivision 1
         </statute_ref>, all property shall be valued at its market value. The market value as <br/>
<a id="pl.86.17"></a><var>86.17</var>determined pursuant to this section shall be stated such that any amount under $100 is <br/>
<a id="pl.86.18"></a><var>86.18</var>rounded up to $100 and any amount exceeding $100 shall be rounded to the nearest $100. <br/>
<a id="pl.86.19"></a><var>86.19</var>In estimating and determining such value, the assessor shall not adopt a lower or different <br/>
<a id="pl.86.20"></a><var>86.20</var>standard of value because the same is to serve as a basis of taxation, nor shall the assessor <br/>
<a id="pl.86.21"></a><var>86.21</var>adopt as a criterion of value the price for which such property would sell at a forced sale, <br/>
<a id="pl.86.22"></a><var>86.22</var>or in the aggregate with all the property in the town or district; but the assessor shall value <br/>
<a id="pl.86.23"></a><var>86.23</var>each article or description of property by itself, and at such sum or price as the assessor <br/>
<a id="pl.86.24"></a><var>86.24</var>believes the same to be fairly worth in money. The assessor shall take into account the <br/>
<a id="pl.86.25"></a><var>86.25</var>effect on the market value of property of environmental factors in the vicinity of the <br/>
<a id="pl.86.26"></a><var>86.26</var>property. In assessing any tract or lot of real property, the value of the land, exclusive of <br/>
<a id="pl.86.27"></a><var>86.27</var>structures and improvements, shall be determined, and also the value of all structures and <br/>
<a id="pl.86.28"></a><var>86.28</var>improvements thereon, and the aggregate value of the property, including all structures <br/>
<a id="pl.86.29"></a><var>86.29</var>and improvements, excluding the value of crops growing upon cultivated land. In valuing <br/>
<a id="pl.86.30"></a><var>86.30</var>real property upon which there is a mine or quarry, it shall be valued at such price as such <br/>
<a id="pl.86.31"></a><var>86.31</var>property, including the mine or quarry, would sell for at a fair, voluntary sale, for cash, <br/>
<a id="pl.86.32"></a><var>86.32</var>if the material being mined or quarried is not subject to taxation under section 
         <statute_ref>298.015</statute_ref> <br/>
<a id="pl.86.33"></a><var>86.33</var>and the mine or quarry is not exempt from the general property tax under section 
         <statute_ref>298.25</statute_ref>. <br/>
<a id="pl.86.34"></a><var>86.34</var>In valuing real property which is vacant, platted property shall be assessed as provided <br/>
<a id="pl.86.35"></a><var>86.35</var>in subdivision 14 subdivisions 14a and 14c. All property, or the use thereof, which is <br/>
<a id="pl.87.1"></a><var>87.1</var>taxable under section 
         <statute_ref>272.01, subdivision 2</statute_ref>, or 
         <statute_ref>273.19</statute_ref>, shall be valued at the market <br/>
<a id="pl.87.2"></a><var>87.2</var>value of such property and not at the value of a leasehold estate in such property, or at <br/>
<a id="pl.87.3"></a><var>87.3</var>some lesser value than its market value.<br/>
<br/>
<a id="bill.5.27.0"></a><a id="pl.87.4"></a><var>87.4</var>    Sec. 27. Minnesota Statutes 2010, section 273.13, subdivision 21b, is amended to read:<br/>
<a id="pl.87.5"></a><var>87.5</var>    Subd. 21b. <b>Net </b><b>tax capacity.</b> (a) Gross tax capacity means the product of the <br/>
<a id="pl.87.6"></a><var>87.6</var>appropriate gross class rates in this section and market values.<br/>
<a id="pl.87.7"></a><var>87.7</var>(b) Net tax capacity means the product of the appropriate net class rates in this <br/>
<a id="pl.87.8"></a><var>87.8</var>section and taxable market values.<br/>
<a id="pl.87.9"></a><var>87.9</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.28.0"></a><a id="pl.87.10"></a><var>87.10</var>    Sec. 28. Minnesota Statutes 2010, section 273.1398, subdivision 3, is amended to read:<br/>
<a id="pl.87.11"></a><var>87.11</var>    Subd. 3. <b>Disparity reduction aid.</b>  The amount of disparity aid certified for each <br/>
<a id="pl.87.12"></a><var>87.12</var>taxing district within each unique taxing jurisdiction for taxes payable in the prior year <br/>
<a id="pl.87.13"></a><var>87.13</var>shall be multiplied by the ratio of (1) the jurisdiction's tax capacity using the class rates for <br/>
<a id="pl.87.14"></a><var>87.14</var>taxes payable in the year for which aid is being computed, to (2) its tax capacity using <br/>
<a id="pl.87.15"></a><var>87.15</var>the class rates for taxes payable in the year prior to that for which aid is being computed, <br/>
<a id="pl.87.16"></a><var>87.16</var>both based upon taxable market values for taxes payable in the year prior to that for which <br/>
<a id="pl.87.17"></a><var>87.17</var>aid is being computed. If the commissioner determines that insufficient information is <br/>
<a id="pl.87.18"></a><var>87.18</var>available to reasonably and timely calculate the numerator in this ratio for the first taxes <br/>
<a id="pl.87.19"></a><var>87.19</var>payable year that a class rate change or new class rate is effective, the commissioner shall <br/>
<a id="pl.87.20"></a><var>87.20</var>omit the effects of that class rate change or new class rate when calculating this ratio for <br/>
<a id="pl.87.21"></a><var>87.21</var>aid payable in that taxes payable year. For aid payable in the year following a year for <br/>
<a id="pl.87.22"></a><var>87.22</var>which such omission was made, the commissioner shall use in the denominator for the <br/>
<a id="pl.87.23"></a><var>87.23</var>class that was changed or created, the tax capacity for taxes payable two years prior to that <br/>
<a id="pl.87.24"></a><var>87.24</var>in which the aid is payable, based on taxable market values for taxes payable in the year <br/>
<a id="pl.87.25"></a><var>87.25</var>prior to that for which aid is being computed.<br/>
<br/>
<a id="bill.5.29.0"></a><a id="pl.87.26"></a><var>87.26</var>    Sec. 29. Minnesota Statutes 2010, section 273.1398, subdivision 4, is amended to read:<br/>
<a id="pl.87.27"></a><var>87.27</var>    Subd. 4. <b>Disparity reduction credit.</b> (a) Beginning with taxes payable in 1989, <br/>
<a id="pl.87.28"></a><var>87.28</var>class 4a, class 3a, and class 3b property qualifies for a disparity reduction credit if: (1) <br/>
<a id="pl.87.29"></a><var>87.29</var>the property is located in a border city that has an enterprise zone designated pursuant <br/>
<a id="pl.87.30"></a><var>87.30</var>to section 
         <statute_ref>469.168, subdivision 4</statute_ref>; (2) the property is located in a city with a population <br/>
<a id="pl.87.31"></a><var>87.31</var>greater than 2,500 and less than 35,000 according to the 1980 decennial census; (3) the <br/>
<a id="pl.87.32"></a><var>87.32</var>city is adjacent to a city in another state or immediately adjacent to a city adjacent to a city <br/>
<a id="pl.88.1"></a><var>88.1</var>in another state; and (4) the adjacent city in the other state has a population of greater than <br/>
<a id="pl.88.2"></a><var>88.2</var>5,000 and less than 75,000 according to the 1980 decennial census.<br/>
<a id="pl.88.3"></a><var>88.3</var>    (b) The credit is an amount sufficient to reduce (i) the taxes levied on class 4a <br/>
<a id="pl.88.4"></a><var>88.4</var>property to 2.3 percent of the property's taxable market value and (ii) the tax on class 3a <br/>
<a id="pl.88.5"></a><var>88.5</var>and class 3b property to 2.3 percent of taxable market value.<br/>
<a id="pl.88.6"></a><var>88.6</var>    (c) The county auditor shall annually certify the costs of the credits to the <br/>
<a id="pl.88.7"></a><var>88.7</var>Department of Revenue. The department shall reimburse local governments for the <br/>
<a id="pl.88.8"></a><var>88.8</var>property taxes forgone as the result of the credits in proportion to their total levies.<br/>
<br/>
<a id="bill.5.30.0"></a><a id="pl.88.9"></a><var>88.9</var>    Sec. 30. Minnesota Statutes 2010, section 275.011, subdivision 1, is amended to read:<br/>
<a id="pl.88.10"></a><var>88.10</var>    Subdivision 1. <b>Determination of levy limit.</b> The property tax levied for any <br/>
<a id="pl.88.11"></a><var>88.11</var>purpose under a special law that is not codified in Minnesota Statutes or a city charter <br/>
<a id="pl.88.12"></a><var>88.12</var>provision and that is subject to a mill rate limitation imposed by the special law or city <br/>
<a id="pl.88.13"></a><var>88.13</var>charter provision, excluding levies subject to mill rate limitations that use adjusted <br/>
<a id="pl.88.14"></a><var>88.14</var>assessed values determined by the commissioner of revenue under section 
         <statute_ref>124.2131</statute_ref>, must <br/>
<a id="pl.88.15"></a><var>88.15</var>not exceed the following amount for the years specified:<br/>
<a id="pl.88.16"></a><var>88.16</var>(a) for taxes payable in 1988, the product of the applicable mill rate limitation <br/>
<a id="pl.88.17"></a><var>88.17</var>imposed by special law or city charter provision multiplied by the total assessed valuation <br/>
<a id="pl.88.18"></a><var>88.18</var>of all taxable property subject to the tax as adjusted by the provisions of Minnesota <br/>
<a id="pl.88.19"></a><var>88.19</var>Statutes 1986, sections 
         <statute_ref>272.64</statute_ref>; 
         <statute_ref>273.13, subdivision 7a</statute_ref>; and 
         <statute_ref>275.49</statute_ref>;<br/>
<a id="pl.88.20"></a><var>88.20</var>(b) for taxes payable in 1989, the product of (1) the property tax levy limitation for <br/>
<a id="pl.88.21"></a><var>88.21</var>the taxes payable year 1988 determined under clause (a) multiplied by (2) an index for <br/>
<a id="pl.88.22"></a><var>88.22</var>market valuation changes equal to the assessment year 1988 total market valuation of all <br/>
<a id="pl.88.23"></a><var>88.23</var>taxable property subject to the tax divided by the assessment year 1987 total market <br/>
<a id="pl.88.24"></a><var>88.24</var>valuation of all taxable property subject to the tax; and<br/>
<a id="pl.88.25"></a><var>88.25</var>(c) for taxes payable in 1990 and subsequent years, the product of (1) the property <br/>
<a id="pl.88.26"></a><var>88.26</var>tax levy limitation for the previous year determined pursuant to this subdivision multiplied <br/>
<a id="pl.88.27"></a><var>88.27</var>by (2) an index for market valuation changes equal to the total market valuation of all <br/>
<a id="pl.88.28"></a><var>88.28</var>taxable property subject to the tax for the current assessment year divided by the total <br/>
<a id="pl.88.29"></a><var>88.29</var>market valuation of all taxable property subject to the tax for the previous assessment year.<br/>
<a id="pl.88.30"></a><var>88.30</var>For the purpose of determining the property tax levy limitation for the taxes payable <br/>
<a id="pl.88.31"></a><var>88.31</var>year 1988 2013 and subsequent years under this subdivision, "total market valuation" <br/>
<a id="pl.88.32"></a><var>88.32</var>means the total estimated market valuation value of all taxable property subject to the <br/>
<a id="pl.88.33"></a><var>88.33</var>tax without valuation adjustments for fiscal disparities (chapters 276A and 473F), tax <br/>
<a id="pl.88.34"></a><var>88.34</var>increment financing (sections 
<statute_ref>469.174</statute_ref> to 469.179), or powerline credit (section 273.425) <br/>
<a id="pl.88.35"></a><var>88.35</var>as provided under section 273.032.<br/>
<br/>
<a id="bill.5.31.0"></a><a id="pl.89.1"></a><var>89.1</var>    Sec. 31. Minnesota Statutes 2010, section 275.077, subdivision 2, is amended to read:<br/>
<a id="pl.89.2"></a><var>89.2</var>    Subd. 2. <b>Correction of levy amount.</b> The difference between the correct levy and <br/>
<a id="pl.89.3"></a><var>89.3</var>the erroneous levy shall be added to the township levy for the subsequent levy year; <br/>
<a id="pl.89.4"></a><var>89.4</var>provided that if the amount of the difference exceeds 0.12089 percent of taxable estimated <br/>
<a id="pl.89.5"></a><var>89.5</var>market value, the excess shall be added to the township levy for the second and later <br/>
<a id="pl.89.6"></a><var>89.6</var>subsequent levy years, not to exceed an additional levy of 0.12089 percent of taxable <br/>
<a id="pl.89.7"></a><var>89.7</var>estimated market value in any year, until the full amount of the difference has been levied. <br/>
<a id="pl.89.8"></a><var>89.8</var>The funds collected from the corrected levies shall be used to reimburse the county for the <br/>
<a id="pl.89.9"></a><var>89.9</var>payment required by subdivision 1.<br/>
<br/>
<a id="bill.5.32.0"></a><a id="pl.89.10"></a><var>89.10</var>    Sec. 32. Minnesota Statutes 2010, section 275.71, subdivision 4, is amended to read:<br/>
<a id="pl.89.11"></a><var>89.11</var>    Subd. 4. <b>Adjusted levy limit base.</b>  For taxes levied in 2008 through 2010, the <br/>
<a id="pl.89.12"></a><var>89.12</var>adjusted levy limit base is equal to the levy limit base computed under subdivision 2 <br/>
<a id="pl.89.13"></a><var>89.13</var>or section 
         <statute_ref>275.72</statute_ref>, multiplied by:<br/>
<a id="pl.89.14"></a><var>89.14</var>    (1) one plus the percentage growth in the implicit price deflator, but the percentage <br/>
<a id="pl.89.15"></a><var>89.15</var>shall not be less than zero or exceed 3.9 percent;<br/>
<a id="pl.89.16"></a><var>89.16</var>    (2) one plus a percentage equal to 50 percent of the percentage increase in the number <br/>
<a id="pl.89.17"></a><var>89.17</var>of households, if any, for the most recent 12-month period for which data is available; and<br/>
<a id="pl.89.18"></a><var>89.18</var>    (3) one plus a percentage equal to 50 percent of the percentage increase in the <br/>
<a id="pl.89.19"></a><var>89.19</var>taxable estimated market value of the jurisdiction due to new construction of class 3 <br/>
<a id="pl.89.20"></a><var>89.20</var>property, as defined in section 
         <statute_ref>273.13, subdivision 4</statute_ref>, except for state-assessed utility and <br/>
<a id="pl.89.21"></a><var>89.21</var>railroad property, for the most recent year for which data is available.<br/>
<br/>
<a id="bill.5.33.0"></a><a id="pl.89.22"></a><var>89.22</var>    Sec. 33. Minnesota Statutes 2011 Supplement, section 276.04, subdivision 2, is <br/>
<a id="pl.89.23"></a><var>89.23</var>amended to read:<br/>
<a id="pl.89.24"></a><var>89.24</var>    Subd. 2. <b>Contents of tax statements.</b> (a) The treasurer shall provide for the <br/>
<a id="pl.89.25"></a><var>89.25</var>printing of the tax statements. The commissioner of revenue shall prescribe the form of <br/>
<a id="pl.89.26"></a><var>89.26</var>the property tax statement and its contents. The tax statement must not state or imply <br/>
<a id="pl.89.27"></a><var>89.27</var>that property tax credits are paid by the state of Minnesota. The statement must contain <br/>
<a id="pl.89.28"></a><var>89.28</var>a tabulated statement of the dollar amount due to each taxing authority and the amount <br/>
<a id="pl.89.29"></a><var>89.29</var>of the state tax from the parcel of real property for which a particular tax statement is <br/>
<a id="pl.89.30"></a><var>89.30</var>prepared. The dollar amounts attributable to the county, the state tax, the voter approved <br/>
<a id="pl.89.31"></a><var>89.31</var>school tax, the other local school tax, the township or municipality, and the total of <br/>
<a id="pl.89.32"></a><var>89.32</var>the metropolitan special taxing districts as defined in section 
         <statute_ref>275.065, subdivision 3</statute_ref>, <br/>
<a id="pl.89.33"></a><var>89.33</var>paragraph (i), must be separately stated. The amounts due all other special taxing districts, <br/>
<a id="pl.89.34"></a><var>89.34</var>if any, may be aggregated except that any levies made by the regional rail authorities in the <br/>
<a id="pl.90.1"></a><var>90.1</var>county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter <br/>
<a id="pl.90.2"></a><var>90.2</var>398A shall be listed on a separate line directly under the appropriate county's levy. If the <br/>
<a id="pl.90.3"></a><var>90.3</var>county levy under this paragraph includes an amount for a lake improvement district as <br/>
<a id="pl.90.4"></a><var>90.4</var>defined under sections 
         <statute_ref>103B.501</statute_ref> to 
         <statute_ref>103B.581</statute_ref>, the amount attributable for that purpose <br/>
<a id="pl.90.5"></a><var>90.5</var>must be separately stated from the remaining county levy amount. In the case of Ramsey <br/>
<a id="pl.90.6"></a><var>90.6</var>County, if the county levy under this paragraph includes an amount for public library <br/>
<a id="pl.90.7"></a><var>90.7</var>service under section 
         <statute_ref>134.07</statute_ref>, the amount attributable for that purpose may be separated <br/>
<a id="pl.90.8"></a><var>90.8</var>from the remaining county levy amount. The amount of the tax on homesteads qualifying <br/>
<a id="pl.90.9"></a><var>90.9</var>under the senior citizens' property tax deferral program under chapter 290B is the total <br/>
<a id="pl.90.10"></a><var>90.10</var>amount of property tax before subtraction of the deferred property tax amount. The <br/>
<a id="pl.90.11"></a><var>90.11</var>amount of the tax on contamination value imposed under sections 
         <statute_ref>270.91</statute_ref> to 
         <statute_ref>270.98</statute_ref>, if any, <br/>
<a id="pl.90.12"></a><var>90.12</var>must also be separately stated. The dollar amounts, including the dollar amount of any <br/>
<a id="pl.90.13"></a><var>90.13</var>special assessments, may be rounded to the nearest even whole dollar. For purposes of this <br/>
<a id="pl.90.14"></a><var>90.14</var>section whole odd-numbered dollars may be adjusted to the next higher even-numbered <br/>
<a id="pl.90.15"></a><var>90.15</var>dollar. The amount of market value excluded under section 
         <statute_ref>273.11, subdivision 16</statute_ref>, if any, <br/>
<a id="pl.90.16"></a><var>90.16</var>must also be listed on the tax statement.<br/>
<a id="pl.90.17"></a><var>90.17</var>    (b) The property tax statements for manufactured homes and sectional structures <br/>
<a id="pl.90.18"></a><var>90.18</var>taxed as personal property shall contain the same information that is required on the <br/>
<a id="pl.90.19"></a><var>90.19</var>tax statements for real property.<br/>
<a id="pl.90.20"></a><var>90.20</var>    (c) Real and personal property tax statements must contain the following information <br/>
<a id="pl.90.21"></a><var>90.21</var>in the order given in this paragraph. The information must contain the current year tax <br/>
<a id="pl.90.22"></a><var>90.22</var>information in the right column with the corresponding information for the previous year <br/>
<a id="pl.90.23"></a><var>90.23</var>in a column on the left:<br/>
<a id="pl.90.24"></a><var>90.24</var>    (1) the property's estimated market value under section 
         <statute_ref>273.11, subdivision 1</statute_ref>;<br/>
<a id="pl.90.25"></a><var>90.25</var>(2) the property's homestead market value exclusion under section 
         <statute_ref>273.13</statute_ref>, <br/>
<a id="pl.90.26"></a><var>90.26</var>subdivision 35;<br/>
<a id="pl.90.27"></a><var>90.27</var>    (3) the property's taxable market value after reductions under sections 
<statute_ref>273.11</statute_ref>, <br/>
<a id="pl.90.28"></a><var>90.28</var>subdivisions 1a and 16, and 
<statute_ref>273.13, subdivision 35</statute_ref> section 272.03, subdivision 15;<br/>
<a id="pl.90.29"></a><var>90.29</var>    (4) the property's gross tax, before credits;<br/>
<a id="pl.90.30"></a><var>90.30</var>    (5) for homestead agricultural properties, the credit under section 
         <statute_ref>273.1384</statute_ref>;<br/>
<a id="pl.90.31"></a><var>90.31</var>    (6) any credits received under sections 
         <statute_ref>273.119</statute_ref>; 
         <statute_ref>273.1234</statute_ref> or 
         <statute_ref>273.1235</statute_ref>; 
         <statute_ref>273.135</statute_ref>; <br/>
<statute_ref><a id="pl.90.32"></a><var>90.32</var>273.1391
         </statute_ref>; 
         <statute_ref>273.1398, subdivision 4</statute_ref>; 
         <statute_ref>469.171</statute_ref>; and 
         <statute_ref>473H.10</statute_ref>, except that the amount of <br/>
<a id="pl.90.33"></a><var>90.33</var>credit received under section 
         <statute_ref>273.135</statute_ref> must be separately stated and identified as "taconite <br/>
<a id="pl.90.34"></a><var>90.34</var>tax relief"; and<br/>
<a id="pl.90.35"></a><var>90.35</var>    (7) the net tax payable in the manner required in paragraph (a).<br/>
<a id="pl.91.1"></a><var>91.1</var>    (d) If the county uses envelopes for mailing property tax statements and if the county <br/>
<a id="pl.91.2"></a><var>91.2</var>agrees, a taxing district may include a notice with the property tax statement notifying <br/>
<a id="pl.91.3"></a><var>91.3</var>taxpayers when the taxing district will begin its budget deliberations for the current <br/>
<a id="pl.91.4"></a><var>91.4</var>year, and encouraging taxpayers to attend the hearings. If the county allows notices to <br/>
<a id="pl.91.5"></a><var>91.5</var>be included in the envelope containing the property tax statement, and if more than <br/>
<a id="pl.91.6"></a><var>91.6</var>one taxing district relative to a given property decides to include a notice with the tax <br/>
<a id="pl.91.7"></a><var>91.7</var>statement, the county treasurer or auditor must coordinate the process and may combine <br/>
<a id="pl.91.8"></a><var>91.8</var>the information on a single announcement.<br/>
<br/>
<a id="bill.5.34.0"></a><a id="pl.91.9"></a><var>91.9</var>    Sec. 34. Minnesota Statutes 2010, section 276A.01, subdivision 10, is amended to read:<br/>
<a id="pl.91.10"></a><var>91.10</var>    Subd. 10. <b>Adjusted </b><b>market value.</b> "Adjusted market value" of real and personal <br/>
<a id="pl.91.11"></a><var>91.11</var>property within a municipality means the assessor's estimated taxable market value, <br/>
<a id="pl.91.12"></a><var>91.12</var>as defined in section 272.03, of all real and personal property, including the value of <br/>
<a id="pl.91.13"></a><var>91.13</var>manufactured housing, within the municipality. For purposes of sections 
<statute_ref>276A.01</statute_ref> to <br/>
<a id="pl.91.14"></a><var>91.14</var><statute_ref>276A.09</statute_ref>, the commissioner of revenue shall annually make determinations and reports <br/>
<a id="pl.91.15"></a><var>91.15</var>with respect to each municipality which are comparable to those it makes for school <br/>
<a id="pl.91.16"></a><var>91.16</var>districts, adjusted for sales ratios in a manner similar to the adjustments made to city and <br/>
<a id="pl.91.17"></a><var>91.17</var>town net tax capacities under section 
         <statute_ref>127A.48, subdivisions 1 to 6</statute_ref>, in the same manner <br/>
<a id="pl.91.18"></a><var>91.18</var>and at the same times prescribed by the subdivision. The commissioner of revenue shall <br/>
<a id="pl.91.19"></a><var>91.19</var>annually determine, for each municipality, information comparable to that required by <br/>
<a id="pl.91.20"></a><var>91.20</var>section 
<statute_ref>475.53, subdivision 4</statute_ref>, for school districts, as soon as practicable after it becomes <br/>
<a id="pl.91.21"></a><var>91.21</var>available. The commissioner of revenue shall then compute the equalized market value of <br/>
<a id="pl.91.22"></a><var>91.22</var>property within each municipality.<br/>
<a id="pl.91.23"></a><var>91.23</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.35.0"></a><a id="pl.91.24"></a><var>91.24</var>    Sec. 35. Minnesota Statutes 2010, section 276A.01, subdivision 12, is amended to read:<br/>
<a id="pl.91.25"></a><var>91.25</var>    Subd. 12. <b>Fiscal capacity.</b> "Fiscal capacity" of a municipality means its valuation <br/>
<a id="pl.91.26"></a><var>91.26</var>adjusted market value, determined as of January 2 of any year, divided by its population, <br/>
<a id="pl.91.27"></a><var>91.27</var>determined as of a date in the same year.<br/>
<br/>
<a id="bill.5.36.0"></a><a id="pl.91.28"></a><var>91.28</var>    Sec. 36. Minnesota Statutes 2010, section 276A.01, subdivision 13, is amended to read:<br/>
<a id="pl.91.29"></a><var>91.29</var>    Subd. 13. <b>Average fiscal capacity.</b> "Average fiscal capacity" of municipalities <br/>
<a id="pl.91.30"></a><var>91.30</var>means the sum of the valuations adjusted market values of all municipalities, determined <br/>
<a id="pl.91.31"></a><var>91.31</var>as of January 2 of any year, divided by the sum of their populations, determined as of <br/>
<a id="pl.91.32"></a><var>91.32</var>a date in the same year.<br/>
<br/>
<a id="bill.5.37.0"></a><a id="pl.92.1"></a><var>92.1</var>    Sec. 37. Minnesota Statutes 2010, section 276A.01, subdivision 15, is amended to read:<br/>
<a id="pl.92.2"></a><var>92.2</var>    Subd. 15. <b>Net tax capacity.</b> "Net tax capacity" means the taxable market value of <br/>
<a id="pl.92.3"></a><var>92.3</var>real and personal property multiplied by its net tax capacity rates in section 
         <statute_ref>273.13</statute_ref>.<br/>
<br/>
<a id="bill.5.38.0"></a><a id="pl.92.4"></a><var>92.4</var>    Sec. 38. Minnesota Statutes 2010, section 287.08, is amended to read:<br/>
<a id="pl.92.5"></a><var>92.5</var><b>287.08 TAX, HOW PAYABLE; RECEIPTS.</b><br/>
<a id="pl.92.6"></a><var>92.6</var>    (a) The tax imposed by sections 
         <statute_ref>287.01</statute_ref> to 
         <statute_ref>287.12</statute_ref> must be paid to the treasurer of <br/>
<a id="pl.92.7"></a><var>92.7</var>any county in this state in which the real property or some part is located at or before <br/>
<a id="pl.92.8"></a><var>92.8</var>the time of filing the mortgage for record. The treasurer shall endorse receipt on the <br/>
<a id="pl.92.9"></a><var>92.9</var>mortgage and the receipt is conclusive proof that the tax has been paid in the amount <br/>
<a id="pl.92.10"></a><var>92.10</var>stated and authorizes any county recorder or registrar of titles to record the mortgage. Its <br/>
<a id="pl.92.11"></a><var>92.11</var>form, in substance, shall be "registration tax hereon of ..................... dollars paid." If the <br/>
<a id="pl.92.12"></a><var>92.12</var>mortgage is exempt from taxation the endorsement shall, in substance, be "exempt from <br/>
<a id="pl.92.13"></a><var>92.13</var>registration tax." In either case the receipt must be signed by the treasurer. In case the <br/>
<a id="pl.92.14"></a><var>92.14</var>treasurer is unable to determine whether a claim of exemption should be allowed, the tax <br/>
<a id="pl.92.15"></a><var>92.15</var>must be paid as in the case of a taxable mortgage. For documents submitted electronically, <br/>
<a id="pl.92.16"></a><var>92.16</var>the endorsements and tax amount shall be affixed electronically and no signature by the <br/>
<a id="pl.92.17"></a><var>92.17</var>treasurer will be required. The actual payment method must be arranged in advance <br/>
<a id="pl.92.18"></a><var>92.18</var>between the submitter and the receiving county.<br/>
<a id="pl.92.19"></a><var>92.19</var>    (b) The county treasurer may refund in whole or in part any mortgage registry tax <br/>
<a id="pl.92.20"></a><var>92.20</var>overpayment if a written application by the taxpayer is submitted to the county treasurer <br/>
<a id="pl.92.21"></a><var>92.21</var>within 3-1/2 years from the date of the overpayment. If the county has not issued a denial <br/>
<a id="pl.92.22"></a><var>92.22</var>of the application, the taxpayer may bring an action in Tax Court in the county in which <br/>
<a id="pl.92.23"></a><var>92.23</var>the tax was paid at any time after the expiration of six months from the time that the <br/>
<a id="pl.92.24"></a><var>92.24</var>application was submitted. A denial of refund may be appealed within 60 days from <br/>
<a id="pl.92.25"></a><var>92.25</var>the date of the denial by bringing an action in Tax Court in the county in which the tax <br/>
<a id="pl.92.26"></a><var>92.26</var>was paid. The action is commenced by the serving of a petition for relief on the county <br/>
<a id="pl.92.27"></a><var>92.27</var>treasurer, and by filing a copy with the court. The county attorney shall defend the action. <br/>
<a id="pl.92.28"></a><var>92.28</var>The county treasurer shall notify the treasurer of each county that has or would receive a <br/>
<a id="pl.92.29"></a><var>92.29</var>portion of the tax as paid.<br/>
<a id="pl.92.30"></a><var>92.30</var>    (c) If the county treasurer determines a refund should be paid, or if a refund is <br/>
<a id="pl.92.31"></a><var>92.31</var>ordered by the court, the county treasurer of each county that actually received a portion <br/>
<a id="pl.92.32"></a><var>92.32</var>of the tax shall immediately pay a proportionate share of three percent of the refund <br/>
<a id="pl.92.33"></a><var>92.33</var>using any available county funds. The county treasurer of each county that received, or <br/>
<a id="pl.92.34"></a><var>92.34</var>would have received, a portion of the tax shall also pay their county's proportionate share <br/>
<a id="pl.92.35"></a><var>92.35</var>of the remaining 97 percent of the court-ordered refund on or before the 20th day of the <br/>
<a id="pl.93.1"></a><var>93.1</var>following month using solely the mortgage registry tax funds that would be paid to the <br/>
<a id="pl.93.2"></a><var>93.2</var>commissioner of revenue on that date under section 
         <statute_ref>287.12</statute_ref>. If the funds on hand under <br/>
<a id="pl.93.3"></a><var>93.3</var>this procedure are insufficient to fully fund 97 percent of the court-ordered refund, the <br/>
<a id="pl.93.4"></a><var>93.4</var>county treasurer of the county in which the action was brought shall file a claim with the <br/>
<a id="pl.93.5"></a><var>93.5</var>commissioner of revenue under section 
         <statute_ref>16A.48</statute_ref> for the remaining portion of 97 percent of <br/>
<a id="pl.93.6"></a><var>93.6</var>the refund, and shall pay over the remaining portion upon receipt of a warrant from the <br/>
<a id="pl.93.7"></a><var>93.7</var>state issued pursuant to the claim.<br/>
<a id="pl.93.8"></a><var>93.8</var>    (d) When any mortgage covers real property located in more than one county in this <br/>
<a id="pl.93.9"></a><var>93.9</var>state the total tax must be paid to the treasurer of the county where the mortgage is first <br/>
<a id="pl.93.10"></a><var>93.10</var>presented for recording, and the payment must be receipted as provided in paragraph <br/>
<a id="pl.93.11"></a><var>93.11</var>(a). If the principal debt or obligation secured by such a multiple county mortgage <br/>
<a id="pl.93.12"></a><var>93.12</var>exceeds $10,000,000, the nonstate portion of the tax must be divided and paid over by <br/>
<a id="pl.93.13"></a><var>93.13</var>the county treasurer receiving it, on or before the 20th day of each month after receipt, <br/>
<a id="pl.93.14"></a><var>93.14</var>to the county or counties entitled in the ratio that the estimated market value of the real <br/>
<a id="pl.93.15"></a><var>93.15</var>property covered by the mortgage in each county bears to the estimated market value of <br/>
<a id="pl.93.16"></a><var>93.16</var>all the real property in this state described in the mortgage. In making the division and <br/>
<a id="pl.93.17"></a><var>93.17</var>payment the county treasurer shall send a statement giving the description of the real <br/>
<a id="pl.93.18"></a><var>93.18</var>property described in the mortgage and the estimated market value of the part located in <br/>
<a id="pl.93.19"></a><var>93.19</var>each county. For this purpose, the treasurer of any county may require the treasurer of <br/>
<a id="pl.93.20"></a><var>93.20</var>any other county to certify to the former the estimated market valuation value of any tract <br/>
<a id="pl.93.21"></a><var>93.21</var>of real property in any mortgage.<br/>
<a id="pl.93.22"></a><var>93.22</var>    (e) The mortgagor must pay the tax imposed by sections 
         <statute_ref>287.01</statute_ref> to 
         <statute_ref>287.12</statute_ref>. The <br/>
<a id="pl.93.23"></a><var>93.23</var>mortgagee may undertake to collect and remit the tax on behalf of the mortgagor. If the <br/>
<a id="pl.93.24"></a><var>93.24</var>mortgagee collects money from the mortgagor to remit the tax on behalf of the mortgagor, <br/>
<a id="pl.93.25"></a><var>93.25</var>the mortgagee has a fiduciary duty to remit the tax on behalf of the mortgagor as to the <br/>
<a id="pl.93.26"></a><var>93.26</var>amount of the tax collected for that purpose and the mortgagor is relieved of any further <br/>
<a id="pl.93.27"></a><var>93.27</var>obligation to pay the tax as to the amount collected by the mortgagee for this purpose.<br/>
<br/>
<a id="bill.5.39.0"></a><a id="pl.93.28"></a><var>93.28</var>    Sec. 39. Minnesota Statutes 2010, section 287.23, subdivision 1, is amended to read:<br/>
<a id="pl.93.29"></a><var>93.29</var>    Subdivision 1. <b>Real property outside county.</b> If any taxable deed or instrument <br/>
<a id="pl.93.30"></a><var>93.30</var>describes any real property located in more than one county in this state, the total tax must <br/>
<a id="pl.93.31"></a><var>93.31</var>be paid to the treasurer of the county where the document is first presented for recording, <br/>
<a id="pl.93.32"></a><var>93.32</var>and the payment must be receipted as provided in section 
         <statute_ref>287.08</statute_ref>. If the net consideration <br/>
<a id="pl.93.33"></a><var>93.33</var>exceeds $700,000, the nonstate portion of the tax must be divided and paid over by the <br/>
<a id="pl.93.34"></a><var>93.34</var>county treasurer receiving it, on or before the 20th day of each month after receipt, to <br/>
<a id="pl.93.35"></a><var>93.35</var>the county or counties entitled in the ratio which the estimated market value of the real <br/>
<a id="pl.94.1"></a><var>94.1</var>property covered by the document in each county bears to the estimated market value of <br/>
<a id="pl.94.2"></a><var>94.2</var>all the real property in this state described in the document. In making the division and <br/>
<a id="pl.94.3"></a><var>94.3</var>payment the county treasurer shall send a statement to the other involved counties giving <br/>
<a id="pl.94.4"></a><var>94.4</var>the description of the real property described in the document and the estimated market <br/>
<a id="pl.94.5"></a><var>94.5</var>value of the part located in each county. The treasurer of any county may require the <br/>
<a id="pl.94.6"></a><var>94.6</var>treasurer of any other county to certify to the former the estimated market valuation value <br/>
<a id="pl.94.7"></a><var>94.7</var>of any parcel of real property for this purpose.<br/>
<br/>
<a id="bill.5.40.0"></a><a id="pl.94.8"></a><var>94.8</var>    Sec. 40. Minnesota Statutes 2010, section 353G.08, subdivision 2, is amended to read:<br/>
<a id="pl.94.9"></a><var>94.9</var>    Subd. 2. <b>Cash flow funding requirement.</b> If the executive director determines that <br/>
<a id="pl.94.10"></a><var>94.10</var>an account in the voluntary statewide lump-sum volunteer firefighter retirement plan has <br/>
<a id="pl.94.11"></a><var>94.11</var>insufficient assets to meet the service pensions determined payable from the account, <br/>
<a id="pl.94.12"></a><var>94.12</var>the executive director shall certify the amount of the potential service pension shortfall <br/>
<a id="pl.94.13"></a><var>94.13</var>to the municipality or municipalities and the municipality or municipalities shall make <br/>
<a id="pl.94.14"></a><var>94.14</var>an additional employer contribution to the account within ten days of the certification. <br/>
<a id="pl.94.15"></a><var>94.15</var>If more than one municipality is associated with the account, unless the municipalities <br/>
<a id="pl.94.16"></a><var>94.16</var>agree to a different allocation, the municipalities shall allocate the additional employer <br/>
<a id="pl.94.17"></a><var>94.17</var>contribution one-half in proportion to the population of each municipality and one-half in <br/>
<a id="pl.94.18"></a><var>94.18</var>proportion to the estimated market value of the property of each municipality.<br/>
<br/>
<a id="bill.5.41.0"></a><a id="pl.94.19"></a><var>94.19</var>    Sec. 41. Minnesota Statutes 2010, section 365.025, subdivision 4, is amended to read:<br/>
<a id="pl.94.20"></a><var>94.20</var>    Subd. 4. <b>Major purchases: notice, petition, election.</b> Before buying anything <br/>
<a id="pl.94.21"></a><var>94.21</var>under subdivision 2 that costs more than 0.24177 percent of the estimated market value of <br/>
<a id="pl.94.22"></a><var>94.22</var>the town, the town must follow this subdivision.<br/>
<a id="pl.94.23"></a><var>94.23</var>The town must publish in its official newspaper the board's resolution to pay for the <br/>
<a id="pl.94.24"></a><var>94.24</var>property over time. Then a petition for an election on the contract may be filed with the <br/>
<a id="pl.94.25"></a><var>94.25</var>clerk. The petition must be filed within ten days after the resolution is published. To <br/>
<a id="pl.94.26"></a><var>94.26</var>require the election the petition must be signed by a number of voters equal to ten percent <br/>
<a id="pl.94.27"></a><var>94.27</var>of the voters at the last regular town election. The contract then must be approved by a <br/>
<a id="pl.94.28"></a><var>94.28</var>majority of those voting on the question. The question may be voted on at a regular <br/>
<a id="pl.94.29"></a><var>94.29</var>or special election.<br/>
<br/>
<a id="bill.5.42.0"></a><a id="pl.94.30"></a><var>94.30</var>    Sec. 42. Minnesota Statutes 2010, section 366.095, subdivision 1, is amended to read:<br/>
<a id="pl.94.31"></a><var>94.31</var>    Subdivision 1. <b>Certificates of indebtedness.</b> The town board may issue certificates <br/>
<a id="pl.94.32"></a><var>94.32</var>of indebtedness within the debt limits for a town purpose otherwise authorized by law. <br/>
<a id="pl.94.33"></a><var>94.33</var>The certificates shall be payable in not more than ten years and be issued on the terms and <br/>
<a id="pl.95.1"></a><var>95.1</var>in the manner as the board may determine. If the amount of the certificates to be issued <br/>
<a id="pl.95.2"></a><var>95.2</var>exceeds 0.25 percent of the estimated market value of the town, they shall not be issued <br/>
<a id="pl.95.3"></a><var>95.3</var>for at least ten days after publication in a newspaper of general circulation in the town of <br/>
<a id="pl.95.4"></a><var>95.4</var>the board's resolution determining to issue them. If within that time, a petition asking for <br/>
<a id="pl.95.5"></a><var>95.5</var>an election on the proposition signed by voters equal to ten percent of the number of voters <br/>
<a id="pl.95.6"></a><var>95.6</var>at the last regular town election is filed with the clerk, the certificates shall not be issued <br/>
<a id="pl.95.7"></a><var>95.7</var>until their issuance has been approved by a majority of the votes cast on the question at <br/>
<a id="pl.95.8"></a><var>95.8</var>a regular or special election. A tax levy shall be made to pay the principal and interest <br/>
<a id="pl.95.9"></a><var>95.9</var>on the certificates as in the case of bonds.<br/>
<br/>
<a id="bill.5.43.0"></a><a id="pl.95.10"></a><var>95.10</var>    Sec. 43. Minnesota Statutes 2010, section 366.27, is amended to read:<br/>
<a id="pl.95.11"></a><var>95.11</var><b>366.27 FIREFIGHTERS' RELIEF; TAX LEVY.</b><br/>
<a id="pl.95.12"></a><var>95.12</var>The town board of any town in this state having therein a platted portion on <br/>
<a id="pl.95.13"></a><var>95.13</var>which resides 1,200 or more people, and wherein a duly incorporated firefighters' relief <br/>
<a id="pl.95.14"></a><var>95.14</var>association is located may each year levy a tax not to exceed 0.00806 percent of taxable <br/>
<a id="pl.95.15"></a><var>95.15</var>estimated market value for the benefit of the relief association.<br/>
<br/>
<a id="bill.5.44.0"></a><a id="pl.95.16"></a><var>95.16</var>    Sec. 44. Minnesota Statutes 2010, section 368.01, subdivision 23, is amended to read:<br/>
<a id="pl.95.17"></a><var>95.17</var>    Subd. 23. <b>Financing purchase of certain equipment.</b> The town board may issue <br/>
<a id="pl.95.18"></a><var>95.18</var>certificates of indebtedness within debt limits to purchase fire or police equipment or <br/>
<a id="pl.95.19"></a><var>95.19</var>ambulance equipment or street construction or maintenance equipment. The certificates <br/>
<a id="pl.95.20"></a><var>95.20</var>shall be payable in not more than five years and be issued on terms and in the manner <br/>
<a id="pl.95.21"></a><var>95.21</var>as the board may determine. If the amount of the certificates to be issued to finance a <br/>
<a id="pl.95.22"></a><var>95.22</var>purchase exceeds 0.24177 percent of the estimated market value of the town, excluding <br/>
<a id="pl.95.23"></a><var>95.23</var>money and credits, they shall not be issued for at least ten days after publication in the <br/>
<a id="pl.95.24"></a><var>95.24</var>official newspaper of a town board resolution determining to issue them. If before the end <br/>
<a id="pl.95.25"></a><var>95.25</var>of that time, a petition asking for an election on the proposition signed by voters equal <br/>
<a id="pl.95.26"></a><var>95.26</var>to ten percent of the number of voters at the last regular town election is filed with the <br/>
<a id="pl.95.27"></a><var>95.27</var>clerk, the certificates shall not be issued until the proposition of their issuance has been <br/>
<a id="pl.95.28"></a><var>95.28</var>approved by a majority of the votes cast on the question at a regular or special election. <br/>
<a id="pl.95.29"></a><var>95.29</var>A tax levy shall be made for the payment of the principal and interest on the certificates <br/>
<a id="pl.95.30"></a><var>95.30</var>as in the case of bonds.<br/>
<br/>
<a id="bill.5.45.0"></a><a id="pl.95.31"></a><var>95.31</var>    Sec. 45. Minnesota Statutes 2010, section 368.47, is amended to read:<br/>
<a id="pl.95.32"></a><var>95.32</var><b>368.47 TOWNS MAY BE DISSOLVED.</b><br/>
<a id="pl.96.1"></a><var>96.1</var>(1) When the voters residing within a town have failed to elect any town officials for <br/>
<a id="pl.96.2"></a><var>96.2</var>more than ten years continuously;<br/>
<a id="pl.96.3"></a><var>96.3</var>(2) when a town has failed for a period of ten years to exercise any of the powers <br/>
<a id="pl.96.4"></a><var>96.4</var>and functions of a town;<br/>
<a id="pl.96.5"></a><var>96.5</var>(3) when the estimated market value of a town drops to less than $165,000;<br/>
<a id="pl.96.6"></a><var>96.6</var>(4) when the tax delinquency of a town, exclusive of taxes that are delinquent or <br/>
<a id="pl.96.7"></a><var>96.7</var>unpaid because they are contested in proceedings for the enforcement of taxes, amounts to <br/>
<a id="pl.96.8"></a><var>96.8</var>12 percent of its market value; or<br/>
<a id="pl.96.9"></a><var>96.9</var>(5) when the state or federal government has acquired title to 50 percent of the <br/>
<a id="pl.96.10"></a><var>96.10</var>real estate of a town,<br/>
<a id="pl.96.11"></a><var>96.11</var>which facts, or any of them, may be found and determined by the resolution of the county <br/>
<a id="pl.96.12"></a><var>96.12</var>board of the county in which the town is located, according to the official records in the <br/>
<a id="pl.96.13"></a><var>96.13</var>office of the county auditor, the county board by resolution may declare the town, naming <br/>
<a id="pl.96.14"></a><var>96.14</var>it, dissolved and no longer entitled to exercise any of the powers or functions of a town.<br/>
<a id="pl.96.15"></a><var>96.15</var>In Cass, Itasca, and St. Louis Counties, before the dissolution is effective the voters <br/>
<a id="pl.96.16"></a><var>96.16</var>of the town shall express their approval or disapproval. The town clerk shall, upon a <br/>
<a id="pl.96.17"></a><var>96.17</var>petition signed by a majority of the registered voters of the town, filed with the clerk at <br/>
<a id="pl.96.18"></a><var>96.18</var>least 60 days before a regular or special town election, give notice at the same time and <br/>
<a id="pl.96.19"></a><var>96.19</var>in the same manner of the election that the question of dissolution of the town will be <br/>
<a id="pl.96.20"></a><var>96.20</var>submitted for determination at the election. At the election the question shall be voted <br/>
<a id="pl.96.21"></a><var>96.21</var>upon by a separate ballot, the terms of which shall be either "for dissolution" or "against <br/>
<a id="pl.96.22"></a><var>96.22</var>dissolution." The ballot shall be deposited in a separate ballot box and the result of the <br/>
<a id="pl.96.23"></a><var>96.23</var>voting canvassed, certified, and returned in the same manner and at the same time as <br/>
<a id="pl.96.24"></a><var>96.24</var>other facts and returns of the election. If a majority of the votes cast at the election are <br/>
<a id="pl.96.25"></a><var>96.25</var>for dissolution, the town shall be dissolved. If a majority of the votes cast at the election <br/>
<a id="pl.96.26"></a><var>96.26</var>are against dissolution, the town shall not be dissolved.<br/>
<a id="pl.96.27"></a><var>96.27</var>When a town is dissolved under sections 
         <statute_ref>368.47</statute_ref> to 
         <statute_ref>368.49</statute_ref> the county shall acquire <br/>
<a id="pl.96.28"></a><var>96.28</var>title to any telephone company or other business conducted by the town. The business <br/>
<a id="pl.96.29"></a><var>96.29</var>shall be operated by the board of county commissioners until it can be sold. The <br/>
<a id="pl.96.30"></a><var>96.30</var>subscribers or patrons of the business shall have the first opportunity of purchase. If the <br/>
<a id="pl.96.31"></a><var>96.31</var>town has any outstanding indebtedness chargeable to the business, the county auditor shall <br/>
<a id="pl.96.32"></a><var>96.32</var>levy a tax against the property situated in the dissolved town to pay the indebtedness <br/>
<a id="pl.96.33"></a><var>96.33</var>as it becomes due.<br/>
<br/>
<a id="bill.5.46.0"></a><a id="pl.96.34"></a><var>96.34</var>    Sec. 46. Minnesota Statutes 2010, section 370.01, is amended to read:<br/>
<a id="pl.96.35"></a><var>96.35</var><b>370.01 CHANGE OF BOUNDARIES; CREATION OF NEW COUNTIES.</b><br/>
<a id="pl.97.1"></a><var>97.1</var>The boundaries of counties may be changed by taking territory from a county and <br/>
<a id="pl.97.2"></a><var>97.2</var>attaching it to an adjoining county, and new counties may be established out of territory of <br/>
<a id="pl.97.3"></a><var>97.3</var>one or more existing counties. A new county shall contain at least 400 square miles and <br/>
<a id="pl.97.4"></a><var>97.4</var>have at least 4,000 inhabitants. A proposed new county must have a total taxable estimated <br/>
<a id="pl.97.5"></a><var>97.5</var>market value of at least 35 percent of (i) the total taxable estimated market value of the <br/>
<a id="pl.97.6"></a><var>97.6</var>existing county, or (ii) the average total taxable estimated market value of the existing <br/>
<a id="pl.97.7"></a><var>97.7</var>counties, included in the proposition. The determination of the taxable estimated market <br/>
<a id="pl.97.8"></a><var>97.8</var>value of a county must be made by the commissioner of revenue. An existing county shall <br/>
<a id="pl.97.9"></a><var>97.9</var>not be reduced in area below 400 square miles, have less than 4,000 inhabitants, or have a <br/>
<a id="pl.97.10"></a><var>97.10</var>total taxable estimated market value of less than that required of a new county.<br/>
<a id="pl.97.11"></a><var>97.11</var>No change in the boundaries of any county having an area of more than 2,500 square <br/>
<a id="pl.97.12"></a><var>97.12</var>miles, whether by the creation of a new county, or otherwise, shall detach from the existing <br/>
<a id="pl.97.13"></a><var>97.13</var>county any territory within 12 miles of the county seat.<br/>
<br/>
<a id="bill.5.47.0"></a><a id="pl.97.14"></a><var>97.14</var>    Sec. 47. Minnesota Statutes 2010, section 373.40, subdivision 1, is amended to read:<br/>
<a id="pl.97.15"></a><var>97.15</var>    Subdivision 1. <b>Definitions.</b> For purposes of this section, the following terms have <br/>
<a id="pl.97.16"></a><var>97.16</var>the meanings given.<br/>
<a id="pl.97.17"></a><var>97.17</var>(a) "Bonds" means an obligation as defined under section 
         <statute_ref>475.51</statute_ref>.<br/>
<a id="pl.97.18"></a><var>97.18</var>(b) "Capital improvement" means acquisition or betterment of public lands, <br/>
<a id="pl.97.19"></a><var>97.19</var>buildings, or other improvements within the county for the purpose of a county courthouse, <br/>
<a id="pl.97.20"></a><var>97.20</var>administrative building, health or social service facility, correctional facility, jail, law <br/>
<a id="pl.97.21"></a><var>97.21</var>enforcement center, hospital, morgue, library, park, qualified indoor ice arena, roads and <br/>
<a id="pl.97.22"></a><var>97.22</var>bridges, and the acquisition of development rights in the form of conservation easements <br/>
<a id="pl.97.23"></a><var>97.23</var>under chapter 84C. An improvement must have an expected useful life of five years or <br/>
<a id="pl.97.24"></a><var>97.24</var>more to qualify. "Capital improvement" does not include a recreation or sports facility <br/>
<a id="pl.97.25"></a><var>97.25</var>building (such as, but not limited to, a gymnasium, ice arena, racquet sports facility, <br/>
<a id="pl.97.26"></a><var>97.26</var>swimming pool, exercise room or health spa), unless the building is part of an outdoor <br/>
<a id="pl.97.27"></a><var>97.27</var>park facility and is incidental to the primary purpose of outdoor recreation.<br/>
<a id="pl.97.28"></a><var>97.28</var>(c) "Metropolitan county" means a county located in the seven-county metropolitan <br/>
<a id="pl.97.29"></a><var>97.29</var>area as defined in section 
         <statute_ref>473.121</statute_ref> or a county with a population of 90,000 or more.<br/>
<a id="pl.97.30"></a><var>97.30</var>(d) "Population" means the population established by the most recent of the <br/>
<a id="pl.97.31"></a><var>97.31</var>following (determined as of the date the resolution authorizing the bonds was adopted):<br/>
<a id="pl.97.32"></a><var>97.32</var>(1) the federal decennial census,<br/>
<a id="pl.97.33"></a><var>97.33</var>(2) a special census conducted under contract by the United States Bureau of the <br/>
<a id="pl.97.34"></a><var>97.34</var>Census, or<br/>
<a id="pl.98.1"></a><var>98.1</var>(3) a population estimate made either by the Metropolitan Council or by the state <br/>
<a id="pl.98.2"></a><var>98.2</var>demographer under section 
         <statute_ref>4A.02</statute_ref>.<br/>
<a id="pl.98.3"></a><var>98.3</var>(e) "Qualified indoor ice arena" means a facility that meets the requirements of <br/>
<a id="pl.98.4"></a><var>98.4</var>section 
         <statute_ref>373.43</statute_ref>.<br/>
<a id="pl.98.5"></a><var>98.5</var>(f) "Tax capacity" means total taxable market value, but does not include captured <br/>
<a id="pl.98.6"></a><var>98.6</var>market value.<br/>
<br/>
<a id="bill.5.48.0"></a><a id="pl.98.7"></a><var>98.7</var>    Sec. 48. Minnesota Statutes 2010, section 373.40, subdivision 4, is amended to read:<br/>
<a id="pl.98.8"></a><var>98.8</var>    Subd. 4. <b>Limitations on amount.</b> A county may not issue bonds under this section <br/>
<a id="pl.98.9"></a><var>98.9</var>if the maximum amount of principal and interest to become due in any year on all the <br/>
<a id="pl.98.10"></a><var>98.10</var>outstanding bonds issued pursuant to this section (including the bonds to be issued) will <br/>
<a id="pl.98.11"></a><var>98.11</var>equal or exceed 0.12 percent of taxable the estimated market value of property in the <br/>
<a id="pl.98.12"></a><var>98.12</var>county. Calculation of the limit must be made using the taxable estimated market value for <br/>
<a id="pl.98.13"></a><var>98.13</var>the taxes payable year in which the obligations are issued and sold. This section does not <br/>
<a id="pl.98.14"></a><var>98.14</var>limit the authority to issue bonds under any other special or general law.<br/>
<br/>
<a id="bill.5.49.0"></a><a id="pl.98.15"></a><var>98.15</var>    Sec. 49. Minnesota Statutes 2010, section 375.167, subdivision 1, is amended to read:<br/>
<a id="pl.98.16"></a><var>98.16</var>    Subdivision 1. <b>Appropriations.</b> Notwithstanding any contrary law, a county board <br/>
<a id="pl.98.17"></a><var>98.17</var>may appropriate from the general revenue fund to any nonprofit corporation a sum not <br/>
<a id="pl.98.18"></a><var>98.18</var>to exceed 0.00604 percent of taxable estimated market value to provide legal assistance <br/>
<a id="pl.98.19"></a><var>98.19</var>to persons who are unable to afford private legal counsel.<br/>
<br/>
<a id="bill.5.50.0"></a><a id="pl.98.20"></a><var>98.20</var>    Sec. 50. Minnesota Statutes 2010, section 375.18, subdivision 3, is amended to read:<br/>
<a id="pl.98.21"></a><var>98.21</var>    Subd. 3. <b>Courthouse.</b> Each county board may erect, furnish, and maintain a <br/>
<a id="pl.98.22"></a><var>98.22</var>suitable courthouse. No indebtedness shall be created for a courthouse in excess of an <br/>
<a id="pl.98.23"></a><var>98.23</var>amount equal to a levy of 0.04030 percent of taxable estimated market value without the <br/>
<a id="pl.98.24"></a><var>98.24</var>approval of a majority of the voters of the county voting on the question of issuing the <br/>
<a id="pl.98.25"></a><var>98.25</var>obligation at an election.<br/>
<br/>
<a id="bill.5.51.0"></a><a id="pl.98.26"></a><var>98.26</var>    Sec. 51. Minnesota Statutes 2010, section 375.555, is amended to read:<br/>
<a id="pl.98.27"></a><var>98.27</var><b>375.555 FUNDING.</b><br/>
<a id="pl.98.28"></a><var>98.28</var>To implement the county emergency jobs program, the county board may expend <br/>
<a id="pl.98.29"></a><var>98.29</var>an amount equal to what would be generated by a levy of 0.01209 percent of taxable <br/>
<a id="pl.98.30"></a><var>98.30</var>estimated market value. The money to be expended may be from any available funds <br/>
<a id="pl.98.31"></a><var>98.31</var>not otherwise earmarked.<br/>
<br/>
<a id="bill.5.52.0"></a><a id="pl.99.1"></a><var>99.1</var>    Sec. 52. Minnesota Statutes 2010, section 383B.152, is amended to read:<br/>
<a id="pl.99.2"></a><var>99.2</var><b>383B.152 BUILDING AND MAINTENANCE FUND.</b><br/>
<a id="pl.99.3"></a><var>99.3</var>The county board may by resolution levy a tax to provide money which shall be kept <br/>
<a id="pl.99.4"></a><var>99.4</var>in a fund known as the county reserve building and maintenance fund. Money in the fund <br/>
<a id="pl.99.5"></a><var>99.5</var>shall be used solely for the construction, maintenance, and equipping of county buildings <br/>
<a id="pl.99.6"></a><var>99.6</var>that are constructed or maintained by the board. The levy shall not be subject to any limit <br/>
<a id="pl.99.7"></a><var>99.7</var>fixed by any other law or by any board of tax levy or other corresponding body, but shall <br/>
<a id="pl.99.8"></a><var>99.8</var>not exceed 0.02215 percent of taxable estimated market value, less the amount required by <br/>
<a id="pl.99.9"></a><var>99.9</var>chapter 475 to be levied in the year for the payment of the principal of and interest on all <br/>
<a id="pl.99.10"></a><var>99.10</var>bonds issued pursuant to Extra Session Laws 1967, chapter 47, section 1.<br/>
<br/>
<a id="bill.5.53.0"></a><a id="pl.99.11"></a><var>99.11</var>    Sec. 53. Minnesota Statutes 2010, section 383B.245, is amended to read:<br/>
<a id="pl.99.12"></a><var>99.12</var><b>383B.245 LIBRARY LEVY.</b><br/>
<a id="pl.99.13"></a><var>99.13</var>    (a) The county board may levy a tax on the taxable property within the county to <br/>
<a id="pl.99.14"></a><var>99.14</var>acquire, better, and construct county library buildings and branches and to pay principal <br/>
<a id="pl.99.15"></a><var>99.15</var>and interest on bonds issued for that purpose.<br/>
<a id="pl.99.16"></a><var>99.16</var>    (b) The county board may by resolution adopted by a five-sevenths vote issue and <br/>
<a id="pl.99.17"></a><var>99.17</var>sell general obligation bonds of the county in the manner provided in sections 
         <statute_ref>475.60</statute_ref> to <br/>
<statute_ref><a id="pl.99.18"></a><var>99.18</var>475.73
         </statute_ref>. The bonds shall not be subject to the limitations of sections 
         <statute_ref>475.51</statute_ref> to 
         <statute_ref>475.59</statute_ref>, <br/>
<a id="pl.99.19"></a><var>99.19</var>but the maturity years and amounts and interest rates of each series of bonds shall be <br/>
<a id="pl.99.20"></a><var>99.20</var>fixed so that the maximum amount of principal and interest to become due in any year, <br/>
<a id="pl.99.21"></a><var>99.21</var>on the bonds of that series and of all outstanding series issued by or for the purposes of <br/>
<a id="pl.99.22"></a><var>99.22</var>libraries, shall not exceed an amount equal to 0.01612 percent of estimated market value <br/>
<a id="pl.99.23"></a><var>99.23</var>of all taxable property in the county as last finally equalized before the issuance of the new <br/>
<a id="pl.99.24"></a><var>99.24</var>series. When the tax levy authorized in this section is collected it shall be appropriated <br/>
<a id="pl.99.25"></a><var>99.25</var>and credited to a debt service fund for the bonds in amounts required each year in lieu of a <br/>
<a id="pl.99.26"></a><var>99.26</var>countywide tax levy for the debt service fund under section 
         <statute_ref>475.61</statute_ref>.<br/>
<br/>
<a id="bill.5.54.0"></a><a id="pl.99.27"></a><var>99.27</var>    Sec. 54. Minnesota Statutes 2010, section 383B.73, subdivision 1, is amended to read:<br/>
<a id="pl.99.28"></a><var>99.28</var>    Subdivision 1. <b>Levy.</b> To provide funds for the purposes of the Three Rivers Park <br/>
<a id="pl.99.29"></a><var>99.29</var>District as set forth in its annual budget, in lieu of the levies authorized by any other <br/>
<a id="pl.99.30"></a><var>99.30</var>special law for such purposes, the Board of Park District Commissioners may levy <br/>
<a id="pl.99.31"></a><var>99.31</var>taxes on all the taxable property in the county and park district at a rate not exceeding <br/>
<a id="pl.99.32"></a><var>99.32</var>0.03224 percent of estimated market value. Notwithstanding section 
         <statute_ref>398.16</statute_ref>, on or before <br/>
<a id="pl.99.33"></a><var>99.33</var>October 1 of each year, after public hearing, the Board of Park District Commissioners <br/>
<a id="pl.99.34"></a><var>99.34</var>shall adopt a budget for the ensuing year and shall determine the total amount necessary <br/>
<a id="pl.100.1"></a><var>100.1</var>to be raised from ad valorem tax levies to meet its budget. The Board of Park District <br/>
<a id="pl.100.2"></a><var>100.2</var>Commissioners shall submit the budget to the county board. The county board may veto <br/>
<a id="pl.100.3"></a><var>100.3</var>or modify an item contained in the budget. If the county board determines to veto or to <br/>
<a id="pl.100.4"></a><var>100.4</var>modify an item in the budget, it must, within 15 days after the budget was submitted by <br/>
<a id="pl.100.5"></a><var>100.5</var>the district board, state in writing the specific reasons for its objection to the item vetoed <br/>
<a id="pl.100.6"></a><var>100.6</var>or the reason for the modification. The Park District Board, after consideration of the <br/>
<a id="pl.100.7"></a><var>100.7</var>county board's objections and proposed modifications, may reapprove a vetoed item or the <br/>
<a id="pl.100.8"></a><var>100.8</var>original version of an item with respect to which a modification has been proposed, by a <br/>
<a id="pl.100.9"></a><var>100.9</var>two-thirds majority. If the district board does not reapprove a vetoed item, the item shall <br/>
<a id="pl.100.10"></a><var>100.10</var>be deleted from the budget. If the district board does not reapprove the original version <br/>
<a id="pl.100.11"></a><var>100.11</var>of a modified item, the item shall be included in the budget as modified by the county <br/>
<a id="pl.100.12"></a><var>100.12</var>board. After adoption of the final budget and no later than October 1, the superintendent <br/>
<a id="pl.100.13"></a><var>100.13</var>of the park district shall certify to the office of the Hennepin County director of tax and <br/>
<a id="pl.100.14"></a><var>100.14</var>public records exercising the functions of the county auditor the total amount to be raised <br/>
<a id="pl.100.15"></a><var>100.15</var>from ad valorem tax levies to meet its budget for the ensuing year. The director of tax <br/>
<a id="pl.100.16"></a><var>100.16</var>and public records shall add the amount of any levy certified by the district to other tax <br/>
<a id="pl.100.17"></a><var>100.17</var>levies on the property of the county within the district for collection by the director of tax <br/>
<a id="pl.100.18"></a><var>100.18</var>and public records with other taxes. When collected, the director shall make settlement of <br/>
<a id="pl.100.19"></a><var>100.19</var>such taxes with the district in the same manner as other taxes are distributed to the other <br/>
<a id="pl.100.20"></a><var>100.20</var>political subdivisions in Hennepin County.<br/>
<br/>
<a id="bill.5.55.0"></a><a id="pl.100.21"></a><var>100.21</var>    Sec. 55. Minnesota Statutes 2010, section 383E.20, is amended to read:<br/>
<a id="pl.100.22"></a><var>100.22</var><b>383E.20 BONDING FOR COUNTY LIBRARY BUILDINGS.</b><br/>
<a id="pl.100.23"></a><var>100.23</var>    The Anoka County Board may, by resolution adopted by a four-sevenths vote, issue <br/>
<a id="pl.100.24"></a><var>100.24</var>and sell general obligation bonds of the county in the manner provided in chapter 475 to <br/>
<a id="pl.100.25"></a><var>100.25</var>acquire, better, and construct county library buildings. The bonds shall not be subject to the <br/>
<a id="pl.100.26"></a><var>100.26</var>requirements of sections 475.57 to 475.59. The maturity years and amounts and interest <br/>
<a id="pl.100.27"></a><var>100.27</var>rates of each series of bonds shall be fixed so that the maximum amount of principal and <br/>
<a id="pl.100.28"></a><var>100.28</var>interest to become due in any year, on the bonds of that series and of all outstanding series <br/>
<a id="pl.100.29"></a><var>100.29</var>issued by or for the purposes of libraries, shall not exceed an amount equal to .01 percent <br/>
<a id="pl.100.30"></a><var>100.30</var>of the taxable estimated market value of all taxable property in the county, excluding any <br/>
<a id="pl.100.31"></a><var>100.31</var>taxable property taxed by any city for the support of any free public library. When the tax <br/>
<a id="pl.100.32"></a><var>100.32</var>levy authorized in this section is collected, it shall be appropriated and credited to a debt <br/>
<a id="pl.100.33"></a><var>100.33</var>service fund for the bonds. The tax levy for the debt service fund under section 475.61 <br/>
<a id="pl.100.34"></a><var>100.34</var>shall be reduced by the amount available or reasonably anticipated to be available in the <br/>
<a id="pl.100.35"></a><var>100.35</var>fund to make payments otherwise payable from the levy pursuant to section 475.61.<br/>
<br/>
<a id="bill.5.56.0"></a><a id="pl.101.1"></a><var>101.1</var>    Sec. 56. Minnesota Statutes 2010, section 383E.23, is amended to read:<br/>
<a id="pl.101.2"></a><var>101.2</var><b>383E.23 LIBRARY TAX.</b><br/>
<a id="pl.101.3"></a><var>101.3</var>The Anoka County Board may levy a tax of not more than .01 percent of the taxable <br/>
<a id="pl.101.4"></a><var>101.4</var>estimated market value of taxable property located within the county excluding any <br/>
<a id="pl.101.5"></a><var>101.5</var>taxable property taxed by any city for the support of any free public library, to acquire, <br/>
<a id="pl.101.6"></a><var>101.6</var>better, and construct county library buildings and to pay principal and interest on bonds <br/>
<a id="pl.101.7"></a><var>101.7</var>issued for that purpose. The tax shall be disregarded in the calculation of levies or limits <br/>
<a id="pl.101.8"></a><var>101.8</var>on levies provided by section 373.40, or other law.<br/>
<br/>
<a id="bill.5.57.0"></a><a id="pl.101.9"></a><var>101.9</var>    Sec. 57. Minnesota Statutes 2010, section 385.31, is amended to read:<br/>
<a id="pl.101.10"></a><var>101.10</var><b>385.31 PAYMENT OF COUNTY ORDERS OR WARRANTS.</b><br/>
<a id="pl.101.11"></a><var>101.11</var>When any order or warrant drawn on the treasurer is presented for payment, if there <br/>
<a id="pl.101.12"></a><var>101.12</var>is money in the treasury for that purpose, the county treasurer shall redeem the same, and <br/>
<a id="pl.101.13"></a><var>101.13</var>write across the entire face thereof the word "redeemed," the date of the redemption, and <br/>
<a id="pl.101.14"></a><var>101.14</var>the treasurer's official signature. If there is not sufficient funds in the proper accounts to <br/>
<a id="pl.101.15"></a><var>101.15</var>pay such orders they shall be numbered and registered in their order of presentation, <br/>
<a id="pl.101.16"></a><var>101.16</var>and proper endorsement thereof shall be made on such orders and they shall be entitled <br/>
<a id="pl.101.17"></a><var>101.17</var>to payment in like order. Such orders shall bear interest at not to exceed the rate of six <br/>
<a id="pl.101.18"></a><var>101.18</var>percent per annum from such date of presentment. The treasurer, as soon as there is <br/>
<a id="pl.101.19"></a><var>101.19</var>sufficient money in the treasury, shall appropriate and set apart a sum sufficient for the <br/>
<a id="pl.101.20"></a><var>101.20</var>payment of the orders so presented and registered, and, if entitled to interest, issue to the <br/>
<a id="pl.101.21"></a><var>101.21</var>original holder a notice that interest will cease in 30 days from the date of such notice; and, <br/>
<a id="pl.101.22"></a><var>101.22</var>if orders thus entitled to priority of payment are not then presented, the next in order of <br/>
<a id="pl.101.23"></a><var>101.23</var>registry may be paid until such orders are presented. No interest shall be paid on any order, <br/>
<a id="pl.101.24"></a><var>101.24</var>except upon a warrant drawn by the county auditor for that purpose, giving the number <br/>
<a id="pl.101.25"></a><var>101.25</var>and the date of the order on account of which the interest warrant is drawn. In any county <br/>
<a id="pl.101.26"></a><var>101.26</var>in this state now or hereafter having a an estimated market value of all taxable property, <br/>
<a id="pl.101.27"></a><var>101.27</var>exclusive of money and credits, of not less than $1,033,000,000, the county treasurer, in <br/>
<a id="pl.101.28"></a><var>101.28</var>order to save payment of interest on county warrants drawn upon a fund in which there <br/>
<a id="pl.101.29"></a><var>101.29</var>shall be temporarily insufficient money in the treasury to redeem the same, may borrow <br/>
<a id="pl.101.30"></a><var>101.30</var>temporarily from any other fund in the county treasury in which there is a sufficient balance <br/>
<a id="pl.101.31"></a><var>101.31</var>to care for the needs of such fund and allow a temporary loan or transfer to any other fund, <br/>
<a id="pl.101.32"></a><var>101.32</var>and may pay such warrants out of such funds. Any such money so transferred and used in <br/>
<a id="pl.101.33"></a><var>101.33</var>redeeming such county warrants shall be returned to the fund from which drawn as soon <br/>
<a id="pl.101.34"></a><var>101.34</var>as money shall come in to the credit of such fund on which any such warrant was drawn <br/>
<a id="pl.101.35"></a><var>101.35</var>and paid as aforesaid. Any county operating on a cash basis may use a combined form of <br/>
<a id="pl.102.1"></a><var>102.1</var>warrant or order and check, which, when signed by the chair of the county board and by <br/>
<a id="pl.102.2"></a><var>102.2</var>the auditor, is an order or warrant for the payment of the claim, and, when countersigned <br/>
<a id="pl.102.3"></a><var>102.3</var>by the county treasurer, is a check for the payment of the amount thereof.<br/>
<br/>
<a id="bill.5.58.0"></a><a id="pl.102.4"></a><var>102.4</var>    Sec. 58. Minnesota Statutes 2010, section 394.36, subdivision 1, is amended to read:<br/>
<a id="pl.102.5"></a><var>102.5</var>    Subdivision 1. <b>Continuation of nonconformity; limitations.</b> Except as provided in <br/>
<a id="pl.102.6"></a><var>102.6</var>subdivision 2, 3, or 4, any nonconformity, including the lawful use or occupation of land <br/>
<a id="pl.102.7"></a><var>102.7</var>or premises existing at the time of the adoption of an official control under this chapter, <br/>
<a id="pl.102.8"></a><var>102.8</var>may be continued, although the use or occupation does not conform to the official control. <br/>
<a id="pl.102.9"></a><var>102.9</var>If the nonconformity or occupancy is discontinued for a period of more than one year, or <br/>
<a id="pl.102.10"></a><var>102.10</var>any nonconforming building or structure is destroyed by fire or other peril to the extent of <br/>
<a id="pl.102.11"></a><var>102.11</var>50 percent of its estimated market value, any subsequent use or occupancy of the land or <br/>
<a id="pl.102.12"></a><var>102.12</var>premises shall be a conforming use or occupancy.<br/>
<br/>
<a id="bill.5.59.0"></a><a id="pl.102.13"></a><var>102.13</var>    Sec. 59. Minnesota Statutes 2010, section 398A.04, subdivision 8, is amended to read:<br/>
<a id="pl.102.14"></a><var>102.14</var>    Subd. 8. <b>Taxation.</b> Before deciding to exercise the power to tax, the authority shall <br/>
<a id="pl.102.15"></a><var>102.15</var>give six weeks' published notice in all municipalities in the region. If a number of voters <br/>
<a id="pl.102.16"></a><var>102.16</var>in the region equal to five percent of those who voted for candidates for governor at the <br/>
<a id="pl.102.17"></a><var>102.17</var>last gubernatorial election present a petition within nine weeks of the first published notice <br/>
<a id="pl.102.18"></a><var>102.18</var>to the secretary of state requesting that the matter be submitted to popular vote, it shall be <br/>
<a id="pl.102.19"></a><var>102.19</var>submitted at the next general election. The question prepared shall be:<br/>
<a id="pl.102.20"></a><var>102.20</var>"Shall the regional rail authority have the power to impose a property tax?<br/>
<table>
<col width="50px"/>
<col width="40"/>
<col width="12.5"/>
<col width="12.5"/>
<tr>
<td><a id="pl.102.21"></a><var>102.21</var><br/>
</td>
<td></td>
<td>Yes <br/>
<span>
                     							.....
                     						</span></td>
<td></td>
</tr>
<tr>
<td><a id="pl.102.22"></a><var>102.22</var><br/>
</td>
<td></td>
<td>No <span>
                     							.....
                     						</span>"<br/>
</td>
<td></td>
</tr>
</table><a id="pl.102.23"></a><var>102.23</var>If a majority of those voting on the question approve or if no petition is presented <br/>
<a id="pl.102.24"></a><var>102.24</var>within the prescribed time the authority may levy a tax at any annual rate not exceeding <br/>
<a id="pl.102.25"></a><var>102.25</var>0.04835 percent of estimated market value of all taxable property situated within the <br/>
<a id="pl.102.26"></a><var>102.26</var>municipality or municipalities named in its organization resolution. Its recording officer <br/>
<a id="pl.102.27"></a><var>102.27</var>shall file, on or before September 15, in the office of the county auditor of each county <br/>
<a id="pl.102.28"></a><var>102.28</var>in which territory under the jurisdiction of the authority is located a certified copy of the <br/>
<a id="pl.102.29"></a><var>102.29</var>board of commissioners' resolution levying the tax, and each county auditor shall assess <br/>
<a id="pl.102.30"></a><var>102.30</var>and extend upon the tax rolls of each municipality named in the organization resolution the <br/>
<a id="pl.102.31"></a><var>102.31</var>portion of the tax that bears the same ratio to the whole amount that the net tax capacity of <br/>
<a id="pl.102.32"></a><var>102.32</var>taxable property in that municipality bears to the net tax capacity of taxable property in <br/>
<a id="pl.102.33"></a><var>102.33</var>all municipalities named in the organization resolution. Collections of the tax shall be <br/>
<a id="pl.102.34"></a><var>102.34</var>remitted by each county treasurer to the treasurer of the authority. For taxes levied in 1991, <br/>
<a id="pl.103.1"></a><var>103.1</var>the amount levied for light rail transit purposes under this subdivision shall not exceed 75 <br/>
<a id="pl.103.2"></a><var>103.2</var>percent of the amount levied in 1990 for light rail transit purposes under this subdivision.<br/>
<br/>
<a id="bill.5.60.0"></a><a id="pl.103.3"></a><var>103.3</var>    Sec. 60. Minnesota Statutes 2010, section 401.05, subdivision 3, is amended to read:<br/>
<a id="pl.103.4"></a><var>103.4</var>    Subd. 3. <b>Leasing.</b> (a) A county or joint powers board of a group of counties <br/>
<a id="pl.103.5"></a><var>103.5</var>which acquires or constructs and equips or improves facilities under this chapter may, <br/>
<a id="pl.103.6"></a><var>103.6</var>with the approval of the board of county commissioners of each county, enter into a <br/>
<a id="pl.103.7"></a><var>103.7</var>lease agreement with a city situated within any of the counties, or a county housing and <br/>
<a id="pl.103.8"></a><var>103.8</var>redevelopment authority established under chapter 469 or any special law. Under the lease <br/>
<a id="pl.103.9"></a><var>103.9</var>agreement, the city or county housing and redevelopment authority shall:<br/>
<a id="pl.103.10"></a><var>103.10</var>(1) construct or acquire and equip or improve a facility in accordance with plans <br/>
<a id="pl.103.11"></a><var>103.11</var>prepared by or at the request of a county or joint powers board of the group of counties <br/>
<a id="pl.103.12"></a><var>103.12</var>and approved by the commissioner of corrections; and<br/>
<a id="pl.103.13"></a><var>103.13</var>(2) finance the facility by the issuance of revenue bonds.<br/>
<a id="pl.103.14"></a><var>103.14</var>(b) The county or joint powers board of a group of counties may lease the facility <br/>
<a id="pl.103.15"></a><var>103.15</var>site, improvements, and equipment for a term upon rental sufficient to produce revenue <br/>
<a id="pl.103.16"></a><var>103.16</var>for the prompt payment of the revenue bonds and all interest accruing on them. Upon <br/>
<a id="pl.103.17"></a><var>103.17</var>completion of payment, the lessee shall acquire title. The real and personal property <br/>
<a id="pl.103.18"></a><var>103.18</var>acquired for the facility constitutes a project and the lease agreement constitutes a revenue <br/>
<a id="pl.103.19"></a><var>103.19</var>agreement as provided in sections 
         <statute_ref>469.152</statute_ref> to 
         <statute_ref>469.165</statute_ref>. All proceedings by the city or <br/>
<a id="pl.103.20"></a><var>103.20</var>county housing and redevelopment authority and the county or joint powers board shall be <br/>
<a id="pl.103.21"></a><var>103.21</var>as provided in sections 
         <statute_ref>469.152</statute_ref> to 
         <statute_ref>469.165</statute_ref>, with the following adjustments:<br/>
<a id="pl.103.22"></a><var>103.22</var>(1) no tax may be imposed upon the property;<br/>
<a id="pl.103.23"></a><var>103.23</var>(2) the approval of the project by the commissioner of employment and economic <br/>
<a id="pl.103.24"></a><var>103.24</var>development is not required;<br/>
<a id="pl.103.25"></a><var>103.25</var>(3) the Department of Corrections shall be furnished and shall record information <br/>
<a id="pl.103.26"></a><var>103.26</var>concerning each project as it may prescribe, in lieu of reports required on other projects to <br/>
<a id="pl.103.27"></a><var>103.27</var>the commissioner of employment and economic development;<br/>
<a id="pl.103.28"></a><var>103.28</var>(4) the rentals required to be paid under the lease agreement shall not exceed in any <br/>
<a id="pl.103.29"></a><var>103.29</var>year one-tenth of one percent of the estimated market value of property within the county <br/>
<a id="pl.103.30"></a><var>103.30</var>or group of counties as last equalized before the execution of the lease agreement;<br/>
<a id="pl.103.31"></a><var>103.31</var>(5) the county or group of counties shall provide for payment of all rentals due <br/>
<a id="pl.103.32"></a><var>103.32</var>during the term of the lease agreement in the manner required in subdivision 4;<br/>
<a id="pl.103.33"></a><var>103.33</var>(6) no mortgage on the facilities shall be granted for the security of the bonds, but <br/>
<a id="pl.103.34"></a><var>103.34</var>compliance with clause (5) may be enforced as a nondiscretionary duty of the county <br/>
<a id="pl.103.35"></a><var>103.35</var>or group of counties; and<br/>
<a id="pl.104.1"></a><var>104.1</var>(7) the county or the joint powers board of the group of counties may sublease any <br/>
<a id="pl.104.2"></a><var>104.2</var>part of the facilities for purposes consistent with their maintenance and operation.<br/>
<br/>
<a id="bill.5.61.0"></a><a id="pl.104.3"></a><var>104.3</var>    Sec. 61. Minnesota Statutes 2010, section 410.32, is amended to read:<br/>
<a id="pl.104.4"></a><var>104.4</var><b>410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT.</b><br/>
<a id="pl.104.5"></a><var>104.5</var>    (a) Notwithstanding any contrary provision of other law or charter, a home rule <br/>
<a id="pl.104.6"></a><var>104.6</var>charter city may, by resolution and without public referendum, issue capital notes subject <br/>
<a id="pl.104.7"></a><var>104.7</var>to the city debt limit to purchase capital equipment.<br/>
<a id="pl.104.8"></a><var>104.8</var>    (b) For purposes of this section, "capital equipment" means:<br/>
<a id="pl.104.9"></a><var>104.9</var>    (1) public safety equipment, ambulance and other medical equipment, road <br/>
<a id="pl.104.10"></a><var>104.10</var>construction and maintenance equipment, and other capital equipment; and<br/>
<a id="pl.104.11"></a><var>104.11</var>    (2) computer hardware and software, whether bundled with machinery or equipment <br/>
<a id="pl.104.12"></a><var>104.12</var>or unbundled.<br/>
<a id="pl.104.13"></a><var>104.13</var>    (c) The equipment or software must have an expected useful life at least as long <br/>
<a id="pl.104.14"></a><var>104.14</var>as the term of the notes.<br/>
<a id="pl.104.15"></a><var>104.15</var>    (d) The notes shall be payable in not more than ten years and be issued on terms <br/>
<a id="pl.104.16"></a><var>104.16</var>and in the manner the city determines. The total principal amount of the capital notes <br/>
<a id="pl.104.17"></a><var>104.17</var>issued in a fiscal year shall not exceed 0.03 percent of the estimated market value of <br/>
<a id="pl.104.18"></a><var>104.18</var>taxable property in the city for that year.<br/>
<a id="pl.104.19"></a><var>104.19</var>    (e) A tax levy shall be made for the payment of the principal and interest on the <br/>
<a id="pl.104.20"></a><var>104.20</var>notes, in accordance with section 
         <statute_ref>475.61</statute_ref>, as in the case of bonds.<br/>
<a id="pl.104.21"></a><var>104.21</var>    (f) Notes issued under this section shall require an affirmative vote of two-thirds of <br/>
<a id="pl.104.22"></a><var>104.22</var>the governing body of the city.<br/>
<a id="pl.104.23"></a><var>104.23</var>    (g) Notwithstanding a contrary provision of other law or charter, a home rule charter <br/>
<a id="pl.104.24"></a><var>104.24</var>city may also issue capital notes subject to its debt limit in the manner and subject to the <br/>
<a id="pl.104.25"></a><var>104.25</var>limitations applicable to statutory cities pursuant to section 
         <statute_ref>412.301</statute_ref>.<br/>
<br/>
<a id="bill.5.62.0"></a><a id="pl.104.26"></a><var>104.26</var>    Sec. 62. Minnesota Statutes 2010, section 412.221, subdivision 2, is amended to read:<br/>
<a id="pl.104.27"></a><var>104.27</var>    Subd. 2. <b>Contracts.</b> The council shall have power to make such contracts as may <br/>
<a id="pl.104.28"></a><var>104.28</var>be deemed necessary or desirable to make effective any power possessed by the council. <br/>
<a id="pl.104.29"></a><var>104.29</var>The city may purchase personal property through a conditional sales contract and real <br/>
<a id="pl.104.30"></a><var>104.30</var>property through a contract for deed under which contracts the seller is confined to the <br/>
<a id="pl.104.31"></a><var>104.31</var>remedy of recovery of the property in case of nonpayment of all or part of the purchase <br/>
<a id="pl.104.32"></a><var>104.32</var>price, which shall be payable over a period of not to exceed five years. When the contract <br/>
<a id="pl.104.33"></a><var>104.33</var>price of property to be purchased by contract for deed or conditional sales contract <br/>
<a id="pl.104.34"></a><var>104.34</var>exceeds 0.24177 percent of the estimated market value of the city, the city may not enter <br/>
<a id="pl.105.1"></a><var>105.1</var>into such a contract for at least ten days after publication in the official newspaper of a <br/>
<a id="pl.105.2"></a><var>105.2</var>council resolution determining to purchase property by such a contract; and, if before the <br/>
<a id="pl.105.3"></a><var>105.3</var>end of that time a petition asking for an election on the proposition signed by voters equal <br/>
<a id="pl.105.4"></a><var>105.4</var>to ten percent of the number of voters at the last regular city election is filed with the clerk, <br/>
<a id="pl.105.5"></a><var>105.5</var>the city may not enter into such a contract until the proposition has been approved by a <br/>
<a id="pl.105.6"></a><var>105.6</var>majority of the votes cast on the question at a regular or special election.<br/>
<br/>
<a id="bill.5.63.0"></a><a id="pl.105.7"></a><var>105.7</var>    Sec. 63. Minnesota Statutes 2010, section 412.301, is amended to read:<br/>
<a id="pl.105.8"></a><var>105.8</var><b>412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT.</b><br/>
<a id="pl.105.9"></a><var>105.9</var>    (a) The council may issue certificates of indebtedness or capital notes subject to the <br/>
<a id="pl.105.10"></a><var>105.10</var>city debt limits to purchase capital equipment.<br/>
<a id="pl.105.11"></a><var>105.11</var>    (b) For purposes of this section, "capital equipment" means:<br/>
<a id="pl.105.12"></a><var>105.12</var>    (1) public safety equipment, ambulance and other medical equipment, road <br/>
<a id="pl.105.13"></a><var>105.13</var>construction and maintenance equipment, and other capital equipment; and<br/>
<a id="pl.105.14"></a><var>105.14</var>    (2) computer hardware and software, whether bundled with machinery or equipment <br/>
<a id="pl.105.15"></a><var>105.15</var>or unbundled.<br/>
<a id="pl.105.16"></a><var>105.16</var>    (c) The equipment or software must have an expected useful life at least as long as <br/>
<a id="pl.105.17"></a><var>105.17</var>the terms of the certificates or notes.<br/>
<a id="pl.105.18"></a><var>105.18</var>    (d) Such certificates or notes shall be payable in not more than ten years and shall be <br/>
<a id="pl.105.19"></a><var>105.19</var>issued on such terms and in such manner as the council may determine.<br/>
<a id="pl.105.20"></a><var>105.20</var>    (e) If the amount of the certificates or notes to be issued to finance any such purchase <br/>
<a id="pl.105.21"></a><var>105.21</var>exceeds 0.25 percent of the estimated market value of taxable property in the city, they <br/>
<a id="pl.105.22"></a><var>105.22</var>shall not be issued for at least ten days after publication in the official newspaper of <br/>
<a id="pl.105.23"></a><var>105.23</var>a council resolution determining to issue them; and if before the end of that time, a <br/>
<a id="pl.105.24"></a><var>105.24</var>petition asking for an election on the proposition signed by voters equal to ten percent <br/>
<a id="pl.105.25"></a><var>105.25</var>of the number of voters at the last regular municipal election is filed with the clerk, such <br/>
<a id="pl.105.26"></a><var>105.26</var>certificates or notes shall not be issued until the proposition of their issuance has been <br/>
<a id="pl.105.27"></a><var>105.27</var>approved by a majority of the votes cast on the question at a regular or special election.<br/>
<a id="pl.105.28"></a><var>105.28</var>    (f) A tax levy shall be made for the payment of the principal and interest on such <br/>
<a id="pl.105.29"></a><var>105.29</var>certificates or notes, in accordance with section 
         <statute_ref>475.61</statute_ref>, as in the case of bonds.<br/>
<br/>
<a id="bill.5.64.0"></a><a id="pl.105.30"></a><var>105.30</var>    Sec. 64. Minnesota Statutes 2010, section 428A.02, subdivision 1, is amended to read:<br/>
<a id="pl.105.31"></a><var>105.31</var>    Subdivision 1. <b>Ordinance.</b> The governing body of a city may adopt an ordinance <br/>
<a id="pl.105.32"></a><var>105.32</var>establishing a special service district. Only property that is classified under section 
         <statute_ref>273.13</statute_ref> <br/>
<a id="pl.105.33"></a><var>105.33</var>and used for commercial, industrial, or public utility purposes, or is vacant land zoned or <br/>
<a id="pl.105.34"></a><var>105.34</var>designated on a land use plan for commercial or industrial use and located in the special <br/>
<a id="pl.106.1"></a><var>106.1</var>service district, may be subject to the charges imposed by the city on the special service <br/>
<a id="pl.106.2"></a><var>106.2</var>district. Other types of property may be included within the boundaries of the special <br/>
<a id="pl.106.3"></a><var>106.3</var>service district but are not subject to the levies or charges imposed by the city on the <br/>
<a id="pl.106.4"></a><var>106.4</var>special service district. If 50 percent or more of the estimated market value of a parcel of <br/>
<a id="pl.106.5"></a><var>106.5</var>property is classified under section 
         <statute_ref>273.13</statute_ref> as commercial, industrial, or vacant land zoned <br/>
<a id="pl.106.6"></a><var>106.6</var>or designated on a land use plan for commercial or industrial use, or public utility for the <br/>
<a id="pl.106.7"></a><var>106.7</var>current assessment year, then the entire taxable market value of the property is subject to a <br/>
<a id="pl.106.8"></a><var>106.8</var>service charge based on net tax capacity for purposes of sections 
         <statute_ref>428A.01</statute_ref> to 
         <statute_ref>428A.10</statute_ref>. <br/>
<a id="pl.106.9"></a><var>106.9</var>The ordinance shall describe with particularity the area within the city to be included in <br/>
<a id="pl.106.10"></a><var>106.10</var>the district and the special services to be furnished in the district. The ordinance may not <br/>
<a id="pl.106.11"></a><var>106.11</var>be adopted until after a public hearing has been held on the question. Notice of the hearing <br/>
<a id="pl.106.12"></a><var>106.12</var>shall include the time and place of hearing, a map showing the boundaries of the proposed <br/>
<a id="pl.106.13"></a><var>106.13</var>district, and a statement that all persons owning property in the proposed district that <br/>
<a id="pl.106.14"></a><var>106.14</var>would be subject to a service charge will be given opportunity to be heard at the hearing. <br/>
<a id="pl.106.15"></a><var>106.15</var>Within 30 days after adoption of the ordinance under this subdivision, the governing body <br/>
<a id="pl.106.16"></a><var>106.16</var>shall send a copy of the ordinance to the commissioner of revenue.<br/>
<br/>
<a id="bill.5.65.0"></a><a id="pl.106.17"></a><var>106.17</var>    Sec. 65. Minnesota Statutes 2010, section 430.102, subdivision 2, is amended to read:<br/>
<a id="pl.106.18"></a><var>106.18</var>    Subd. 2. <b>Council approval; special tax levy limitation.</b> The council shall receive <br/>
<a id="pl.106.19"></a><var>106.19</var>and consider the estimate required in subdivision 1 and the items of cost after notice and <br/>
<a id="pl.106.20"></a><var>106.20</var>hearing before it or its appropriate committee as it considers necessary or expedient, <br/>
<a id="pl.106.21"></a><var>106.21</var>and shall approve the estimate, with necessary amendments. The amounts of each item <br/>
<a id="pl.106.22"></a><var>106.22</var>of cost estimated are then appropriated to operate, maintain, and improve the pedestrian <br/>
<a id="pl.106.23"></a><var>106.23</var>mall during the next fiscal year. The amount of the special tax to be charged under <br/>
<a id="pl.106.24"></a><var>106.24</var>subdivision 1, clause (3), must not, however, exceed 0.12089 percent of estimated market <br/>
<a id="pl.106.25"></a><var>106.25</var>value of taxable property in the district. The council shall make any necessary adjustment <br/>
<a id="pl.106.26"></a><var>106.26</var>in costs of operating and maintaining the district to keep the amount of the tax within <br/>
<a id="pl.106.27"></a><var>106.27</var>this limitation.<br/>
<br/>
<a id="bill.5.66.0"></a><a id="pl.106.28"></a><var>106.28</var>    Sec. 66. Minnesota Statutes 2010, section 447.10, is amended to read:<br/>
<a id="pl.106.29"></a><var>106.29</var><b>447.10 TAX LEVY FOR OPERATING AND MAINTAINING HOSPITAL.</b><br/>
<a id="pl.106.30"></a><var>106.30</var>The governing body of a city of the first class owning a hospital may annually levy <br/>
<a id="pl.106.31"></a><var>106.31</var>a tax to operate and maintain the hospital. The tax must not exceed 0.00806 percent of <br/>
<a id="pl.106.32"></a><var>106.32</var>taxable estimated market value.<br/>
<br/>
<a id="bill.5.67.0"></a><a id="pl.107.1"></a><var>107.1</var>    Sec. 67. Minnesota Statutes 2010, section 450.19, is amended to read:<br/>
<a id="pl.107.2"></a><var>107.2</var><b>450.19 TOURIST CAMPING GROUNDS.</b><br/>
<a id="pl.107.3"></a><var>107.3</var>A home rule charter or statutory city or town may establish and maintain public <br/>
<a id="pl.107.4"></a><var>107.4</var>tourist camping grounds. The governing body thereof may acquire by lease, purchase, or <br/>
<a id="pl.107.5"></a><var>107.5</var>gift, suitable lands located either within or without the corporate limits for use as public <br/>
<a id="pl.107.6"></a><var>107.6</var>tourist camping grounds and provide for the equipment, operation, and maintenance <br/>
<a id="pl.107.7"></a><var>107.7</var>of the same. The amount that may be expended for the maintenance, improvement, or <br/>
<a id="pl.107.8"></a><var>107.8</var>operation of tourist camping grounds shall not exceed, in any year, a sum equal to 0.00806 <br/>
<a id="pl.107.9"></a><var>107.9</var>percent of taxable estimated market value.<br/>
<br/>
<a id="bill.5.68.0"></a><a id="pl.107.10"></a><var>107.10</var>    Sec. 68. Minnesota Statutes 2010, section 450.25, is amended to read:<br/>
<a id="pl.107.11"></a><var>107.11</var><b>450.25 MUSEUM, GALLERY, OR SCHOOL OF ARTS OR CRAFTS; TAX </b><br/>
<a id="pl.107.12"></a><var>107.12</var><b>LEVY.</b><br/>
<a id="pl.107.13"></a><var>107.13</var>After the acquisition of any museum, gallery, or school of arts or crafts, the board <br/>
<a id="pl.107.14"></a><var>107.14</var>of park commissioners of the city in which it is located shall cause to be included in the <br/>
<a id="pl.107.15"></a><var>107.15</var>annual tax levy upon all the taxable property of the county in which the museum, gallery, <br/>
<a id="pl.107.16"></a><var>107.16</var>or school of arts or crafts is located, a tax of 0.00846 percent of estimated market value. <br/>
<a id="pl.107.17"></a><var>107.17</var>The board shall certify the levy to the county auditor and it shall be added to, and collected <br/>
<a id="pl.107.18"></a><var>107.18</var>with and as part of, the general, real, and personal property taxes, with like penalties and <br/>
<a id="pl.107.19"></a><var>107.19</var>interest, in case of nonpayment and default, and all provisions of law in respect to the <br/>
<a id="pl.107.20"></a><var>107.20</var>levy, collection, and enforcement of other taxes shall, so far as applicable, be followed in <br/>
<a id="pl.107.21"></a><var>107.21</var>respect of these taxes. All of these taxes, penalties, and interest, when collected, shall be <br/>
<a id="pl.107.22"></a><var>107.22</var>paid to the city treasurer of the city in which is located the museum, gallery, or school <br/>
<a id="pl.107.23"></a><var>107.23</var>of arts or crafts and credited to a fund to be known as the park museum fund, and shall <br/>
<a id="pl.107.24"></a><var>107.24</var>be used only for the purposes specified in sections 
         <statute_ref>450.23</statute_ref> to 
         <statute_ref>450.25</statute_ref>. Any part of the <br/>
<a id="pl.107.25"></a><var>107.25</var>proceeds of the levy not expended for the purposes specified in section 
         <statute_ref>450.24</statute_ref> may be <br/>
<a id="pl.107.26"></a><var>107.26</var>used for the erection of new buildings for the same purposes.<br/>
<br/>
<a id="bill.5.69.0"></a><a id="pl.107.27"></a><var>107.27</var>    Sec. 69. Minnesota Statutes 2010, section 458A.10, is amended to read:<br/>
<a id="pl.107.28"></a><var>107.28</var><b>458A.10 PROPERTY TAX.</b><br/>
<a id="pl.107.29"></a><var>107.29</var>The commission shall annually levy a tax not to exceed 0.12089 percent of estimated <br/>
<a id="pl.107.30"></a><var>107.30</var>market value on all the taxable property in the transit area at a rate sufficient to produce <br/>
<a id="pl.107.31"></a><var>107.31</var>an amount necessary for the purposes of sections 
         <statute_ref>458A.01</statute_ref> to 
         <statute_ref>458A.15</statute_ref>, other than the <br/>
<a id="pl.107.32"></a><var>107.32</var>payment of principal and interest due on any revenue bonds issued pursuant to section <br/>
<statute_ref><a id="pl.107.33"></a><var>107.33</var>458A.05
         </statute_ref>. Property taxes levied under this section shall be certified by the commission to <br/>
<a id="pl.108.1"></a><var>108.1</var>the county auditors of the transit area, extended, assessed, and collected in the manner <br/>
<a id="pl.108.2"></a><var>108.2</var>provided by law for the property taxes levied by the governing bodies of cities. The <br/>
<a id="pl.108.3"></a><var>108.3</var>proceeds of the taxes levied under this section shall be remitted by the respective county <br/>
<a id="pl.108.4"></a><var>108.4</var>treasurers to the treasurer of the commission, who shall credit the same to the funds of <br/>
<a id="pl.108.5"></a><var>108.5</var>the commission for use for the purposes of sections 
         <statute_ref>458A.01</statute_ref> to 
         <statute_ref>458A.15</statute_ref> subject to any <br/>
<a id="pl.108.6"></a><var>108.6</var>applicable pledges or limitations on account of tax anticipation certificates or other <br/>
<a id="pl.108.7"></a><var>108.7</var>specific purposes. At any time after making a tax levy under this section and certifying <br/>
<a id="pl.108.8"></a><var>108.8</var>it to the county auditors, the commission may issue general obligation certificates of <br/>
<a id="pl.108.9"></a><var>108.9</var>indebtedness in anticipation of the collection of the taxes as provided by section 
         <statute_ref>412.261</statute_ref>.<br/>
<br/>
<a id="bill.5.70.0"></a><a id="pl.108.10"></a><var>108.10</var>    Sec. 70. Minnesota Statutes 2010, section 458A.31, subdivision 1, is amended to read:<br/>
<a id="pl.108.11"></a><var>108.11</var>    Subdivision 1. <b>Levy limit.</b> Notwithstanding anything to the contrary contained in <br/>
<a id="pl.108.12"></a><var>108.12</var>the charter of the city of Duluth, any ordinance thereof, or any statute applicable thereto, <br/>
<a id="pl.108.13"></a><var>108.13</var>limiting the amount levied in any one year for general or special purposes, the city council <br/>
<a id="pl.108.14"></a><var>108.14</var>of the city of Duluth shall each year levy a tax in an amount not to exceed 0.07253 <br/>
<a id="pl.108.15"></a><var>108.15</var>percent of taxable estimated market value, by ordinance. An ordinance fixing the levy <br/>
<a id="pl.108.16"></a><var>108.16</var>shall take effect immediately upon its passage and approval. The proceeds of the levy <br/>
<a id="pl.108.17"></a><var>108.17</var>shall be paid into the city treasury and deposited in the operating fund provided for in <br/>
<a id="pl.108.18"></a><var>108.18</var>section 
         <statute_ref>458A.24, subdivision 3</statute_ref>.<br/>
<br/>
<a id="bill.5.71.0"></a><a id="pl.108.19"></a><var>108.19</var>    Sec. 71. Minnesota Statutes 2010, section 465.04, is amended to read:<br/>
<a id="pl.108.20"></a><var>108.20</var><b>465.04 ACCEPTANCE OF GIFTS.</b><br/>
<a id="pl.108.21"></a><var>108.21</var>Cities of the second, third, or fourth class, having at any time a an estimated <br/>
<a id="pl.108.22"></a><var>108.22</var>market value of not more than $41,000,000, exclusive of money and credits, as officially <br/>
<a id="pl.108.23"></a><var>108.23</var>equalized by the commissioner of revenue, either under home rule charter or under the <br/>
<a id="pl.108.24"></a><var>108.24</var>laws of this state, in addition to all other powers possessed by them, hereby are authorized <br/>
<a id="pl.108.25"></a><var>108.25</var>and empowered to receive and accept gifts and donations for the use and benefit of <br/>
<a id="pl.108.26"></a><var>108.26</var>such cities and the inhabitants thereof upon terms and conditions to be approved by the <br/>
<a id="pl.108.27"></a><var>108.27</var>governing bodies of such cities; and such cities are authorized to comply with and perform <br/>
<a id="pl.108.28"></a><var>108.28</var>such terms and conditions, which may include payment to the donor or donors of interest <br/>
<a id="pl.108.29"></a><var>108.29</var>on the value of the gift at not exceeding five percent per annum payable annually or <br/>
<a id="pl.108.30"></a><var>108.30</var>semiannually, during the remainder of the natural life or lives of such donor or donors.<br/>
<br/>
<a id="bill.5.72.0"></a><a id="pl.108.31"></a><var>108.31</var>    Sec. 72. Minnesota Statutes 2010, section 469.033, subdivision 6, is amended to read:<br/>
<a id="pl.108.32"></a><var>108.32</var>    Subd. 6. <b>Operation area as taxing district, special tax.</b> All of the territory <br/>
<a id="pl.108.33"></a><var>108.33</var>included within the area of operation of any authority shall constitute a taxing district for <br/>
<a id="pl.109.1"></a><var>109.1</var>the purpose of levying and collecting special benefit taxes as provided in this subdivision. <br/>
<a id="pl.109.2"></a><var>109.2</var>All of the taxable property, both real and personal, within that taxing district shall be <br/>
<a id="pl.109.3"></a><var>109.3</var>deemed to be benefited by projects to the extent of the special taxes levied under this <br/>
<a id="pl.109.4"></a><var>109.4</var>subdivision. Subject to the consent by resolution of the governing body of the city in and <br/>
<a id="pl.109.5"></a><var>109.5</var>for which it was created, an authority may levy a tax upon all taxable property within that <br/>
<a id="pl.109.6"></a><var>109.6</var>taxing district. The tax shall be extended, spread, and included with and as a part of <br/>
<a id="pl.109.7"></a><var>109.7</var>the general taxes for state, county, and municipal purposes by the county auditor, to be <br/>
<a id="pl.109.8"></a><var>109.8</var>collected and enforced therewith, together with the penalty, interest, and costs. As the tax, <br/>
<a id="pl.109.9"></a><var>109.9</var>including any penalties, interest, and costs, is collected by the county treasurer it shall be <br/>
<a id="pl.109.10"></a><var>109.10</var>accumulated and kept in a separate fund to be known as the "housing and redevelopment <br/>
<a id="pl.109.11"></a><var>109.11</var>project fund." The money in the fund shall be turned over to the authority at the same time <br/>
<a id="pl.109.12"></a><var>109.12</var>and in the same manner that the tax collections for the city are turned over to the city, and <br/>
<a id="pl.109.13"></a><var>109.13</var>shall be expended only for the purposes of sections 
         <statute_ref>469.001</statute_ref> to 
         <statute_ref>469.047</statute_ref>. It shall be paid <br/>
<a id="pl.109.14"></a><var>109.14</var>out upon vouchers signed by the chair of the authority or an authorized representative. <br/>
<a id="pl.109.15"></a><var>109.15</var>The amount of the levy shall be an amount approved by the governing body of the city, but <br/>
<a id="pl.109.16"></a><var>109.16</var>shall not exceed 0.0185 percent of taxable estimated  market value. The authority shall <br/>
<a id="pl.109.17"></a><var>109.17</var>each year formulate and file a budget in accordance with the budget procedure of the city <br/>
<a id="pl.109.18"></a><var>109.18</var>in the same manner as required of executive departments of the city or, if no budgets are <br/>
<a id="pl.109.19"></a><var>109.19</var>required to be filed, by August 1. The amount of the tax levy for the following year shall <br/>
<a id="pl.109.20"></a><var>109.20</var>be based on that budget.<br/>
<br/>
<a id="bill.5.73.0"></a><a id="pl.109.21"></a><var>109.21</var>    Sec. 73. Minnesota Statutes 2010, section 469.034, subdivision 2, is amended to read:<br/>
<a id="pl.109.22"></a><var>109.22</var>    Subd. 2. <b>General obligation revenue bonds.</b> (a) An authority may pledge the <br/>
<a id="pl.109.23"></a><var>109.23</var>general obligation of the general jurisdiction governmental unit as additional security for <br/>
<a id="pl.109.24"></a><var>109.24</var>bonds payable from income or revenues of the project or the authority. The authority <br/>
<a id="pl.109.25"></a><var>109.25</var>must find that the pledged revenues will equal or exceed 110 percent of the principal and <br/>
<a id="pl.109.26"></a><var>109.26</var>interest due on the bonds for each year. The proceeds of the bonds must be used for a <br/>
<a id="pl.109.27"></a><var>109.27</var>qualified housing development project or projects. The obligations must be issued and <br/>
<a id="pl.109.28"></a><var>109.28</var>sold in the manner and following the procedures provided by chapter 475, except the <br/>
<a id="pl.109.29"></a><var>109.29</var>obligations are not subject to approval by the electors, and the maturities may extend to <br/>
<a id="pl.109.30"></a><var>109.30</var>not more than 35 years for obligations sold to finance housing for the elderly and 40 years <br/>
<a id="pl.109.31"></a><var>109.31</var>for other obligations issued under this subdivision. The authority is the municipality for <br/>
<a id="pl.109.32"></a><var>109.32</var>purposes of chapter 475.<br/>
<a id="pl.109.33"></a><var>109.33</var>(b) The principal amount of the issue must be approved by the governing body of <br/>
<a id="pl.109.34"></a><var>109.34</var>the general jurisdiction governmental unit whose general obligation is pledged. Public <br/>
<a id="pl.109.35"></a><var>109.35</var>hearings must be held on issuance of the obligations by both the authority and the general <br/>
<a id="pl.110.1"></a><var>110.1</var>jurisdiction governmental unit. The hearings must be held at least 15 days, but not more <br/>
<a id="pl.110.2"></a><var>110.2</var>than 120 days, before the sale of the obligations.<br/>
<a id="pl.110.3"></a><var>110.3</var>(c) The maximum amount of general obligation bonds that may be issued and <br/>
<a id="pl.110.4"></a><var>110.4</var>outstanding under this section equals the greater of (1) one-half of one percent of the <br/>
<a id="pl.110.5"></a><var>110.5</var>taxable estimated market value of the general jurisdiction governmental unit whose <br/>
<a id="pl.110.6"></a><var>110.6</var>general obligation is pledged, or (2) $3,000,000. In the case of county or multicounty <br/>
<a id="pl.110.7"></a><var>110.7</var>general obligation bonds, the outstanding general obligation bonds of all cities in the <br/>
<a id="pl.110.8"></a><var>110.8</var>county or counties issued under this subdivision must be added in calculating the limit <br/>
<a id="pl.110.9"></a><var>110.9</var>under clause (1).<br/>
<a id="pl.110.10"></a><var>110.10</var>(d) "General jurisdiction governmental unit" means the city in which the housing <br/>
<a id="pl.110.11"></a><var>110.11</var>development project is located. In the case of a county or multicounty authority, the <br/>
<a id="pl.110.12"></a><var>110.12</var>county or counties may act as the general jurisdiction governmental unit. In the case of <br/>
<a id="pl.110.13"></a><var>110.13</var>a multicounty authority, the pledge of the general obligation is a pledge of a tax on the <br/>
<a id="pl.110.14"></a><var>110.14</var>taxable property in each of the counties.<br/>
<a id="pl.110.15"></a><var>110.15</var>(e) "Qualified housing development project" means a housing development project <br/>
<a id="pl.110.16"></a><var>110.16</var>providing housing either for the elderly or for individuals and families with incomes not <br/>
<a id="pl.110.17"></a><var>110.17</var>greater than 80 percent of the median family income as estimated by the United States <br/>
<a id="pl.110.18"></a><var>110.18</var>Department of Housing and Urban Development for the standard metropolitan statistical <br/>
<a id="pl.110.19"></a><var>110.19</var>area or the nonmetropolitan county in which the project is located. The project must be <br/>
<a id="pl.110.20"></a><var>110.20</var>owned for the term of the bonds either by the authority or by a limited partnership or other <br/>
<a id="pl.110.21"></a><var>110.21</var>entity in which the authority or another entity under the sole control of the authority is <br/>
<a id="pl.110.22"></a><var>110.22</var>the sole general partner and the partnership or other entity must receive (1) an allocation <br/>
<a id="pl.110.23"></a><var>110.23</var>from the Department of Management and Budget or an entitlement issuer of tax-exempt <br/>
<a id="pl.110.24"></a><var>110.24</var>bonding authority for the project and a preliminary determination by the Minnesota <br/>
<a id="pl.110.25"></a><var>110.25</var>Housing Finance Agency or the applicable suballocator of tax credits that the project <br/>
<a id="pl.110.26"></a><var>110.26</var>will qualify for four percent low-income housing tax credits or (2) a reservation of nine <br/>
<a id="pl.110.27"></a><var>110.27</var>percent low-income housing tax credits from the Minnesota Housing Finance Agency or a <br/>
<a id="pl.110.28"></a><var>110.28</var>suballocator of tax credits for the project. A qualified housing development project may <br/>
<a id="pl.110.29"></a><var>110.29</var>admit nonelderly individuals and families with higher incomes if:<br/>
<a id="pl.110.30"></a><var>110.30</var>(1) three years have passed since initial occupancy;<br/>
<a id="pl.110.31"></a><var>110.31</var>(2) the authority finds the project is experiencing unanticipated vacancies resulting in <br/>
<a id="pl.110.32"></a><var>110.32</var>insufficient revenues, because of changes in population or other unforeseen circumstances <br/>
<a id="pl.110.33"></a><var>110.33</var>that occurred after the initial finding of adequate revenues; and<br/>
<a id="pl.110.34"></a><var>110.34</var>(3) the authority finds a tax levy or payment from general assets of the general <br/>
<a id="pl.110.35"></a><var>110.35</var>jurisdiction governmental unit will be necessary to pay debt service on the bonds if higher <br/>
<a id="pl.110.36"></a><var>110.36</var>income individuals or families are not admitted.<br/>
<a id="pl.111.1"></a><var>111.1</var>(f) The authority may issue bonds to refund bonds issued under this subdivision in <br/>
<a id="pl.111.2"></a><var>111.2</var>accordance with section 
         <statute_ref>475.67</statute_ref>. The finding of the adequacy of pledged revenues required <br/>
<a id="pl.111.3"></a><var>111.3</var>by paragraph (a) and the public hearing required by paragraph (b) shall not apply to the <br/>
<a id="pl.111.4"></a><var>111.4</var>issuance of refunding bonds. This paragraph applies to refunding bonds issued on and <br/>
<a id="pl.111.5"></a><var>111.5</var>after July 1, 1992.<br/>
<br/>
<a id="bill.5.74.0"></a><a id="pl.111.6"></a><var>111.6</var>    Sec. 74. Minnesota Statutes 2010, section 469.053, subdivision 4, is amended to read:<br/>
<a id="pl.111.7"></a><var>111.7</var>    Subd. 4. <b>Mandatory city levy.</b> A city shall, at the request of the port authority, levy <br/>
<a id="pl.111.8"></a><var>111.8</var>a tax in any year for the benefit of the port authority. The tax must not exceed 0.01813 <br/>
<a id="pl.111.9"></a><var>111.9</var>percent of taxable estimated market value. The amount levied must be paid by the city <br/>
<a id="pl.111.10"></a><var>111.10</var>treasurer to the treasurer of the port authority, to be spent by the authority.<br/>
<br/>
<a id="bill.5.75.0"></a><a id="pl.111.11"></a><var>111.11</var>    Sec. 75. Minnesota Statutes 2010, section 469.053, subdivision 4a, is amended to read:<br/>
<a id="pl.111.12"></a><var>111.12</var>    Subd. 4a. <b>Seaway port authority levy.</b> A levy made under this subdivision shall <br/>
<a id="pl.111.13"></a><var>111.13</var>replace the mandatory city levy under subdivision 4. A seaway port authority is a special <br/>
<a id="pl.111.14"></a><var>111.14</var>taxing district under section 
         <statute_ref>275.066</statute_ref> and may levy a tax in any year for the benefit of the <br/>
<a id="pl.111.15"></a><var>111.15</var>seaway port authority. The tax must not exceed 0.01813 percent of taxable estimated <br/>
<a id="pl.111.16"></a><var>111.16</var>market value. The county auditor shall distribute the proceeds of the property tax levy to <br/>
<a id="pl.111.17"></a><var>111.17</var>the seaway port authority.<br/>
<br/>
<a id="bill.5.76.0"></a><a id="pl.111.18"></a><var>111.18</var>    Sec. 76. Minnesota Statutes 2010, section 469.053, subdivision 6, is amended to read:<br/>
<a id="pl.111.19"></a><var>111.19</var>    Subd. 6. <b>Discretionary city levy.</b> Upon request of a port authority, the port <br/>
<a id="pl.111.20"></a><var>111.20</var>authority's city may levy a tax to be spent by and for its port authority. The tax must <br/>
<a id="pl.111.21"></a><var>111.21</var>enable the port authority to carry out efficiently and in the public interest sections 
         <statute_ref>469.048</statute_ref> <br/>
<a id="pl.111.22"></a><var>111.22</var>to 
         <statute_ref>469.068</statute_ref> to create and develop industrial development districts. The levy must not be <br/>
<a id="pl.111.23"></a><var>111.23</var>more than 0.00282 percent of taxable estimated market value. The county treasurer shall <br/>
<a id="pl.111.24"></a><var>111.24</var>pay the proceeds of the tax to the port authority treasurer. The money may be spent by <br/>
<a id="pl.111.25"></a><var>111.25</var>the authority in performance of its duties to create and develop industrial development <br/>
<a id="pl.111.26"></a><var>111.26</var>districts. In spending the money the authority must judge what best serves the public <br/>
<a id="pl.111.27"></a><var>111.27</var>interest. The levy in this subdivision is in addition to the levy in subdivision 4.<br/>
<br/>
<a id="bill.5.77.0"></a><a id="pl.111.28"></a><var>111.28</var>    Sec. 77. Minnesota Statutes 2010, section 469.107, subdivision 1, is amended to read:<br/>
<a id="pl.111.29"></a><var>111.29</var>    Subdivision 1. <b>City tax levy.</b> A city may, at the request of the authority, levy a tax in <br/>
<a id="pl.111.30"></a><var>111.30</var>any year for the benefit of the authority. The tax must be not more than 0.01813 percent of <br/>
<a id="pl.111.31"></a><var>111.31</var>taxable estimated market value. The amount levied must be paid by the city treasurer to <br/>
<a id="pl.111.32"></a><var>111.32</var>the treasurer of the authority, to be spent by the authority.<br/>
<br/>
<a id="bill.5.78.0"></a><a id="pl.112.1"></a><var>112.1</var>    Sec. 78. Minnesota Statutes 2010, section 469.177, subdivision 1, is amended to read:<br/>
<a id="pl.112.2"></a><var>112.2</var>    Subdivision 1. <b>Original net tax capacity.</b> (a) Upon or after adoption of a tax <br/>
<a id="pl.112.3"></a><var>112.3</var>increment financing plan, the auditor of any county in which the district is situated shall, <br/>
<a id="pl.112.4"></a><var>112.4</var>upon request of the authority, certify the original net tax capacity of the tax increment <br/>
<a id="pl.112.5"></a><var>112.5</var>financing district and that portion of the district overlying any subdistrict as described in <br/>
<a id="pl.112.6"></a><var>112.6</var>the tax increment financing plan and shall certify in each year thereafter the amount by <br/>
<a id="pl.112.7"></a><var>112.7</var>which the original net tax capacity has increased or decreased as a result of a change in tax <br/>
<a id="pl.112.8"></a><var>112.8</var>exempt status of property within the district and any subdistrict, reduction or enlargement <br/>
<a id="pl.112.9"></a><var>112.9</var>of the district or changes pursuant to subdivision 4. The auditor shall certify the amount <br/>
<a id="pl.112.10"></a><var>112.10</var>within 30 days after receipt of the request and sufficient information to identify the parcels <br/>
<a id="pl.112.11"></a><var>112.11</var>included in the district. The certification relates to the taxes payable year as provided in <br/>
<a id="pl.112.12"></a><var>112.12</var>subdivision 6.<br/>
<a id="pl.112.13"></a><var>112.13</var>    (b) If the classification under section 
         <statute_ref>273.13</statute_ref> of property located in a district changes <br/>
<a id="pl.112.14"></a><var>112.14</var>to a classification that has a different assessment ratio, the original net tax capacity of that <br/>
<a id="pl.112.15"></a><var>112.15</var>property must be redetermined at the time when its use is changed as if the property had <br/>
<a id="pl.112.16"></a><var>112.16</var>originally been classified in the same class in which it is classified after its use is changed.<br/>
<a id="pl.112.17"></a><var>112.17</var>    (c) The amount to be added to the original net tax capacity of the district as a result <br/>
<a id="pl.112.18"></a><var>112.18</var>of previously tax exempt real property within the district becoming taxable equals the net <br/>
<a id="pl.112.19"></a><var>112.19</var>tax capacity of the real property as most recently assessed pursuant to section 
         <statute_ref>273.18</statute_ref> or, if <br/>
<a id="pl.112.20"></a><var>112.20</var>that assessment was made more than one year prior to the date of title transfer rendering <br/>
<a id="pl.112.21"></a><var>112.21</var>the property taxable, the net tax capacity assessed by the assessor at the time of the <br/>
<a id="pl.112.22"></a><var>112.22</var>transfer. If improvements are made to tax exempt property after the municipality approves <br/>
<a id="pl.112.23"></a><var>112.23</var>the district and before the parcel becomes taxable, the assessor shall, at the request of <br/>
<a id="pl.112.24"></a><var>112.24</var>the authority, separately assess the estimated market value of the improvements. If the <br/>
<a id="pl.112.25"></a><var>112.25</var>property becomes taxable, the county auditor shall add to original net tax capacity, the net <br/>
<a id="pl.112.26"></a><var>112.26</var>tax capacity of the parcel, excluding the separately assessed improvements. If substantial <br/>
<a id="pl.112.27"></a><var>112.27</var>taxable improvements were made to a parcel after certification of the district and if the <br/>
<a id="pl.112.28"></a><var>112.28</var>property later becomes tax exempt, in whole or part, as a result of the authority acquiring <br/>
<a id="pl.112.29"></a><var>112.29</var>the property through foreclosure or exercise of remedies under a lease or other revenue <br/>
<a id="pl.112.30"></a><var>112.30</var>agreement or as a result of tax forfeiture, the amount to be added to the original net tax <br/>
<a id="pl.112.31"></a><var>112.31</var>capacity of the district as a result of the property again becoming taxable is the amount <br/>
<a id="pl.112.32"></a><var>112.32</var>of the parcel's value that was included in original net tax capacity when the parcel was <br/>
<a id="pl.112.33"></a><var>112.33</var>first certified. The amount to be added to the original net tax capacity of the district as a <br/>
<a id="pl.112.34"></a><var>112.34</var>result of enlargements equals the net tax capacity of the added real property as most <br/>
<a id="pl.112.35"></a><var>112.35</var>recently certified by the commissioner of revenue as of the date of modification of the tax <br/>
<a id="pl.112.36"></a><var>112.36</var>increment financing plan pursuant to section 
         <statute_ref>469.175, subdivision 4</statute_ref>.<br/>
<a id="pl.113.1"></a><var>113.1</var>    (d) If the net tax capacity of a property increases because the property no longer <br/>
<a id="pl.113.2"></a><var>113.2</var>qualifies under the Minnesota Agricultural Property Tax Law, section 
         <statute_ref>273.111</statute_ref>; the <br/>
<a id="pl.113.3"></a><var>113.3</var>Minnesota Open Space Property Tax Law, section 
         <statute_ref>273.112</statute_ref>; or the Metropolitan <br/>
<a id="pl.113.4"></a><var>113.4</var>Agricultural Preserves Act, chapter 473H, or because platted, unimproved property is <br/>
<a id="pl.113.5"></a><var>113.5</var>improved or market value is increased after approval of the plat under section 
         <statute_ref>273.11, <br/>
<a id="pl.113.6"></a><var>113.6</var>subdivision 14
</statute_ref>, 14a, or 14b, the increase in net tax capacity must be added to the original <br/>
<a id="pl.113.7"></a><var>113.7</var>net tax capacity. If the net tax capacity of a property increases because the property <br/>
<a id="pl.113.8"></a><var>113.8</var>no longer qualifies for the homestead market value exclusion under section 273.13, <br/>
<a id="pl.113.9"></a><var>113.9</var>subdivision 35, the increase in net tax capacity must be added to the original net tax <br/>
<a id="pl.113.10"></a><var>113.10</var>capacity if the original construction of the affected home was completed before the date <br/>
<a id="pl.113.11"></a><var>113.11</var>the assessor certified the original net tax capacity of the district.<br/>
<a id="pl.113.12"></a><var>113.12</var>    (e) The amount to be subtracted from the original net tax capacity of the district as a <br/>
<a id="pl.113.13"></a><var>113.13</var>result of previously taxable real property within the district becoming tax exempt or <br/>
<a id="pl.113.14"></a><var>113.14</var>qualifying in whole or part for an exclusion from taxable market value, or a reduction in <br/>
<a id="pl.113.15"></a><var>113.15</var>the geographic area of the district, shall be the amount of original net tax capacity initially <br/>
<a id="pl.113.16"></a><var>113.16</var>attributed to the property becoming tax exempt, being excluded from taxable market <br/>
<a id="pl.113.17"></a><var>113.17</var>value, or being removed from the district. If the net tax capacity of property located within <br/>
<a id="pl.113.18"></a><var>113.18</var>the tax increment financing district is reduced by reason of a court-ordered abatement, <br/>
<a id="pl.113.19"></a><var>113.19</var>stipulation agreement, voluntary abatement made by the assessor or auditor or by order <br/>
<a id="pl.113.20"></a><var>113.20</var>of the commissioner of revenue, the reduction shall be applied to the original net tax <br/>
<a id="pl.113.21"></a><var>113.21</var>capacity of the district when the property upon which the abatement is made has not been <br/>
<a id="pl.113.22"></a><var>113.22</var>improved since the date of certification of the district and to the captured net tax capacity <br/>
<a id="pl.113.23"></a><var>113.23</var>of the district in each year thereafter when the abatement relates to improvements made <br/>
<a id="pl.113.24"></a><var>113.24</var>after the date of certification. The county auditor may specify reasonable form and content <br/>
<a id="pl.113.25"></a><var>113.25</var>of the request for certification of the authority and any modification thereof pursuant to <br/>
<a id="pl.113.26"></a><var>113.26</var>section 
         <statute_ref>469.175, subdivision 4</statute_ref>.<br/>
<a id="pl.113.27"></a><var>113.27</var>    (f) If a parcel of property contained a substandard building or improvements <br/>
<a id="pl.113.28"></a><var>113.28</var>described in section 
         <statute_ref>469.174, subdivision 10</statute_ref>, paragraph (e), that were demolished or <br/>
<a id="pl.113.29"></a><var>113.29</var>removed and if the authority elects to treat the parcel as occupied by a substandard <br/>
<a id="pl.113.30"></a><var>113.30</var>building under section 
         <statute_ref>469.174, subdivision 10</statute_ref>, paragraph (b), or by improvements under <br/>
<a id="pl.113.31"></a><var>113.31</var>section 
         <statute_ref>469.174, subdivision 10</statute_ref>, paragraph (e), the auditor shall certify the original net tax <br/>
<a id="pl.113.32"></a><var>113.32</var>capacity of the parcel using the greater of (1) the current net tax capacity of the parcel, or <br/>
<a id="pl.113.33"></a><var>113.33</var>(2) the estimated market value of the parcel for the year in which the building or other <br/>
<a id="pl.113.34"></a><var>113.34</var>improvements were demolished or removed, but applying the class rates for the current <br/>
<a id="pl.113.35"></a><var>113.35</var>year.<br/>
<a id="pl.114.1"></a><var>114.1</var>    (g) For a redevelopment district qualifying under section 
         <statute_ref>469.174, subdivision 10</statute_ref>, <br/>
<a id="pl.114.2"></a><var>114.2</var>paragraph (a), clause (4), as a qualified disaster area, the auditor shall certify the value of <br/>
<a id="pl.114.3"></a><var>114.3</var>the land as the original tax capacity for any parcel in the district that contains a building <br/>
<a id="pl.114.4"></a><var>114.4</var>that suffered substantial damage as a result of the disaster or emergency.<br/>
<a id="pl.114.5"></a><var>114.5</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.114.6"></a><var>114.6</var>and applies to all districts, regardless of when the request for certification was made, and <br/>
<a id="pl.114.7"></a><var>114.7</var>to computation of increment beginning with taxes payable in 2013, provided that the <br/>
<a id="pl.114.8"></a><var>114.8</var>adjustments to original tax capacity required by this section apply only to exclusions <br/>
<a id="pl.114.9"></a><var>114.9</var>that reduced taxable market value beginning with taxes payable in 2012 or thereafter, <br/>
<a id="pl.114.10"></a><var>114.10</var>regardless of when the law authorizing the exclusions became effective.<br/>
<br/>
<a id="bill.5.79.0"></a><a id="pl.114.11"></a><var>114.11</var>    Sec. 79. Minnesota Statutes 2010, section 469.180, subdivision 2, is amended to read:<br/>
<a id="pl.114.12"></a><var>114.12</var>    Subd. 2. <b>Tax levies.</b> Notwithstanding any law, the county board of any county may <br/>
<a id="pl.114.13"></a><var>114.13</var>appropriate from the general revenue fund a sum not to exceed a county levy of 0.00080 <br/>
<a id="pl.114.14"></a><var>114.14</var>percent of taxable estimated market value to carry out the purposes of this section.<br/>
<br/>
<a id="bill.5.80.0"></a><a id="pl.114.15"></a><var>114.15</var>    Sec. 80. Minnesota Statutes 2010, section 469.187, is amended to read:<br/>
<a id="pl.114.16"></a><var>114.16</var><b>469.187 FIRST CLASS CITY SPENDING FOR PUBLICITY; PUBLICITY </b><br/>
<a id="pl.114.17"></a><var>114.17</var><b>BOARD.</b><br/>
<a id="pl.114.18"></a><var>114.18</var>Any city of the first class may expend money for city publicity purposes. The city <br/>
<a id="pl.114.19"></a><var>114.19</var>may levy a tax, not exceeding 0.00080 percent of taxable estimated market value. The <br/>
<a id="pl.114.20"></a><var>114.20</var>proceeds of the levy shall be expended in the manner and for the city publicity purposes <br/>
<a id="pl.114.21"></a><var>114.21</var>the council directs. The council may establish and provide for a publicity board or bureau <br/>
<a id="pl.114.22"></a><var>114.22</var>to administer the fund, subject to the conditions and limitations the council prescribes <br/>
<a id="pl.114.23"></a><var>114.23</var>by ordinance.<br/>
<br/>
<a id="bill.5.81.0"></a><a id="pl.114.24"></a><var>114.24</var>    Sec. 81. Minnesota Statutes 2010, section 469.206, is amended to read:<br/>
<a id="pl.114.25"></a><var>114.25</var><b>469.206 HAZARDOUS PROPERTY PENALTY.</b><br/>
<a id="pl.114.26"></a><var>114.26</var>A city may assess a penalty up to one percent of the estimated market value of <br/>
<a id="pl.114.27"></a><var>114.27</var>real property, including any building located within the city that the city determines to <br/>
<a id="pl.114.28"></a><var>114.28</var>be hazardous as defined in section 
         <statute_ref>463.15, subdivision 3</statute_ref>. The city shall send a written <br/>
<a id="pl.114.29"></a><var>114.29</var>notice to the address to which the property tax statement is sent at least 90 days before it <br/>
<a id="pl.114.30"></a><var>114.30</var>may assess the penalty. If the owner of the property has not paid the penalty or fixed the <br/>
<a id="pl.114.31"></a><var>114.31</var>property within 90 days after receiving notice of the penalty, the penalty is considered <br/>
<a id="pl.114.32"></a><var>114.32</var>delinquent and is increased by 25 percent each 60 days the penalty is not paid and the <br/>
<a id="pl.115.1"></a><var>115.1</var>property remains hazardous. For the purposes of this section, a penalty that is delinquent <br/>
<a id="pl.115.2"></a><var>115.2</var>is considered a delinquent property tax and subject to chapters 279, 280, and 281, in the <br/>
<a id="pl.115.3"></a><var>115.3</var>same manner as delinquent property taxes.<br/>
<br/>
<a id="bill.5.82.0"></a><a id="pl.115.4"></a><var>115.4</var>    Sec. 82. Minnesota Statutes 2010, section 471.24, is amended to read:<br/>
<a id="pl.115.5"></a><var>115.5</var><b>471.24 TOWNS, STATUTORY CITIES; JOINT MAINTENANCE OF </b><br/>
<a id="pl.115.6"></a><var>115.6</var><b>CEMETERY.</b><br/>
<a id="pl.115.7"></a><var>115.7</var>Where a statutory city or town owns and maintains an established cemetery or burial <br/>
<a id="pl.115.8"></a><var>115.8</var>ground, either within or without the municipal limits, the statutory city or town may, by <br/>
<a id="pl.115.9"></a><var>115.9</var>mutual agreement with contiguous statutory cities and towns, each having a an estimated <br/>
<a id="pl.115.10"></a><var>115.10</var>market value of not less than $2,000,000, join together in the maintenance of such public <br/>
<a id="pl.115.11"></a><var>115.11</var>cemetery or burial ground for the use of the inhabitants of each of such municipalities; and <br/>
<a id="pl.115.12"></a><var>115.12</var>each such municipality is hereby authorized, by action of its council or governing body, <br/>
<a id="pl.115.13"></a><var>115.13</var>to levy a tax or make an appropriation for the annual support and maintenance of such <br/>
<a id="pl.115.14"></a><var>115.14</var>cemetery or burial ground; provided, the amount thus appropriated by each municipality <br/>
<a id="pl.115.15"></a><var>115.15</var>shall not exceed a total of $10,000 in any one year.<br/>
<br/>
<a id="bill.5.83.0"></a><a id="pl.115.16"></a><var>115.16</var>    Sec. 83. Minnesota Statutes 2010, section 471.571, subdivision 1, is amended to read:<br/>
<a id="pl.115.17"></a><var>115.17</var>    Subdivision 1. <b>Application.</b> This section applies to each city in which the net tax <br/>
<a id="pl.115.18"></a><var>115.18</var>capacity of real and personal property consists in part of iron ore or lands containing <br/>
<a id="pl.115.19"></a><var>115.19</var>taconite or semitaconite and in which the total taxable estimated market value of real <br/>
<a id="pl.115.20"></a><var>115.20</var>and personal property exceeds $2,500,000.<br/>
<br/>
<a id="bill.5.84.0"></a><a id="pl.115.21"></a><var>115.21</var>    Sec. 84. Minnesota Statutes 2010, section 471.571, subdivision 2, is amended to read:<br/>
<a id="pl.115.22"></a><var>115.22</var>    Subd. 2. <b>Creation of fund, tax levy.</b> The governing body of the city may create a <br/>
<a id="pl.115.23"></a><var>115.23</var>permanent improvement and replacement fund to be maintained by an annual tax levy. <br/>
<a id="pl.115.24"></a><var>115.24</var>The governing body may levy a tax in excess of any charter limitation for the support of <br/>
<a id="pl.115.25"></a><var>115.25</var>the permanent improvement and replacement fund, but not exceeding the following:<br/>
<a id="pl.115.26"></a><var>115.26</var>(a) in cities having a population of not more than 500 inhabitants, the lesser of $20 <br/>
<a id="pl.115.27"></a><var>115.27</var>per capita or 0.08059 percent of taxable estimated market value;<br/>
<a id="pl.115.28"></a><var>115.28</var>(b) in cities having a population of more than 500 and less than 2500 2,500, the <br/>
<a id="pl.115.29"></a><var>115.29</var>greater of $12.50 per capita or $10,000 but not exceeding 0.08059 percent of taxable <br/>
<a id="pl.115.30"></a><var>115.30</var>estimated market value;<br/>
<a id="pl.115.31"></a><var>115.31</var>(c) in cities having a population of more than 2500 2,500 or more inhabitants, <br/>
<a id="pl.115.32"></a><var>115.32</var>the greater of $10 per capita or $31,500 but not exceeding 0.08059 percent of taxable <br/>
<a id="pl.115.33"></a><var>115.33</var>estimated market value.<br/>
<br/>
<a id="bill.5.85.0"></a><a id="pl.116.1"></a><var>116.1</var>    Sec. 85. Minnesota Statutes 2010, section 471.73, is amended to read:<br/>
<a id="pl.116.2"></a><var>116.2</var><b>471.73 ACCEPTANCE OF PROVISIONS.</b><br/>
<a id="pl.116.3"></a><var>116.3</var>In the case of any city within the class specified in section 
<statute_ref>471.72</statute_ref> having a an <br/>
<a id="pl.116.4"></a><var>116.4</var>estimated  market value, as defined in section 
<statute_ref>471.72</statute_ref>, in excess of $37,000,000; and in the <br/>
<a id="pl.116.5"></a><var>116.5</var>case of any statutory city within such class having a an estimated market value, as defined <br/>
<a id="pl.116.6"></a><var>116.6</var>in section 
<statute_ref>471.72</statute_ref>, of less than $5,000,000; and in the case of any statutory city within such <br/>
<a id="pl.116.7"></a><var>116.7</var>class which is governed by Laws 1933, chapter 211, or Laws 1937, chapter 356; and in <br/>
<a id="pl.116.8"></a><var>116.8</var>the case of any statutory city within such class which is governed by Laws 1929, chapter <br/>
<a id="pl.116.9"></a><var>116.9</var>208, and has a an estimated market value of less than $83,000,000; and in the case of <br/>
<a id="pl.116.10"></a><var>116.10</var>any school district within such class having a an estimated market value, as defined in <br/>
<a id="pl.116.11"></a><var>116.11</var>section 
<statute_ref>471.72</statute_ref>, of more than $54,000,000; and in the case of all towns within said class; <br/>
<a id="pl.116.12"></a><var>116.12</var>sections 
         <statute_ref>471.71</statute_ref> to 
         <statute_ref>471.83</statute_ref> apply only if the governing body of the city or statutory city, the <br/>
<a id="pl.116.13"></a><var>116.13</var>board of the school district, or the town board of the town shall have adopted a resolution <br/>
<a id="pl.116.14"></a><var>116.14</var>determining to issue bonds under the provisions of sections 
         <statute_ref>471.71</statute_ref> to 
         <statute_ref>471.83</statute_ref> or to go <br/>
<a id="pl.116.15"></a><var>116.15</var>upon a cash basis in accordance with the provisions thereof.<br/>
<br/>
<a id="bill.5.86.0"></a><a id="pl.116.16"></a><var>116.16</var>    Sec. 86. Minnesota Statutes 2010, section 473.325, subdivision 2, is amended to read:<br/>
<a id="pl.116.17"></a><var>116.17</var>    Subd. 2. <b>Chapter 475 applies; exceptions.</b> The Metropolitan Council shall sell and <br/>
<a id="pl.116.18"></a><var>116.18</var>issue the bonds in the manner provided in chapter 475, and shall have the same powers <br/>
<a id="pl.116.19"></a><var>116.19</var>and duties as a municipality issuing bonds under that law, except that the approval of a <br/>
<a id="pl.116.20"></a><var>116.20</var>majority of the electors shall not be required and the net debt limitations shall not apply. <br/>
<a id="pl.116.21"></a><var>116.21</var>The terms of each series of bonds shall be fixed so that the amount of principal and interest <br/>
<a id="pl.116.22"></a><var>116.22</var>on all outstanding and undischarged bonds, together with the bonds proposed to be issued, <br/>
<a id="pl.116.23"></a><var>116.23</var>due in any year shall not exceed 0.01209 percent of estimated market value of all taxable <br/>
<a id="pl.116.24"></a><var>116.24</var>property in the metropolitan area as last finally equalized prior to a proposed issue. The <br/>
<a id="pl.116.25"></a><var>116.25</var>bonds shall be secured in accordance with section 
         <statute_ref>475.61, subdivision 1</statute_ref>, and any taxes <br/>
<a id="pl.116.26"></a><var>116.26</var>required for their payment shall be levied by the council, shall not affect the amount or rate <br/>
<a id="pl.116.27"></a><var>116.27</var>of taxes which may be levied by the council for other purposes, shall be spread against all <br/>
<a id="pl.116.28"></a><var>116.28</var>taxable property in the metropolitan area and shall not be subject to limitation as to rate or <br/>
<a id="pl.116.29"></a><var>116.29</var>amount. Any taxes certified by the council to the county auditors for collection shall be <br/>
<a id="pl.116.30"></a><var>116.30</var>reduced by the amount received by the council from the commissioner of management and <br/>
<a id="pl.116.31"></a><var>116.31</var>budget or the federal government for the purpose of paying the principal and interest on <br/>
<a id="pl.116.32"></a><var>116.32</var>bonds to which the levy relates. The council shall certify the fact and amount of all money <br/>
<a id="pl.116.33"></a><var>116.33</var>so received to the county auditors, and the auditors shall reduce the levies previously made <br/>
<a id="pl.116.34"></a><var>116.34</var>for the bonds in the manner and to the extent provided in section 
         <statute_ref>475.61, subdivision 3</statute_ref>.<br/>
<br/>
<a id="bill.5.87.0"></a><a id="pl.117.1"></a><var>117.1</var>    Sec. 87. Minnesota Statutes 2010, section 473.629, is amended to read:<br/>
<a id="pl.117.2"></a><var>117.2</var><b>473.629 VALUE OF PROPERTY FOR BOND ISSUES BY SCHOOL </b><br/>
<a id="pl.117.3"></a><var>117.3</var><b>DISTRICTS.</b><br/>
<a id="pl.117.4"></a><var>117.4</var>As to any lands to be detached from any school district under the provisions hereof <br/>
<a id="pl.117.5"></a><var>117.5</var>section 473.625, notwithstanding such prospective the detachment, the estimated market <br/>
<a id="pl.117.6"></a><var>117.6</var>value of such the detached lands and the net tax capacity of taxable properties now located <br/>
<a id="pl.117.7"></a><var>117.7</var>therein or thereon shall be and on the lands on the date of the detachment constitute <br/>
<a id="pl.117.8"></a><var>117.8</var>from and after the date of the enactment hereof a part of the estimated market value of <br/>
<a id="pl.117.9"></a><var>117.9</var>properties upon the basis of which such used to calculate the net debt limit of the school <br/>
<a id="pl.117.10"></a><var>117.10</var>district may issue its bonds,. The value of such the lands for such purpose to be and other <br/>
<a id="pl.117.11"></a><var>117.11</var>taxable properties for purposes of the school district's net debt limit are 33-1/3 percent of <br/>
<a id="pl.117.12"></a><var>117.12</var>the estimated market value thereof as determined and certified by said the assessor to said <br/>
<a id="pl.117.13"></a><var>117.13</var>the school district, and it shall be the duty of such the assessor annually on or before the <br/>
<a id="pl.117.14"></a><var>117.14</var>tenth day of October from and after the passage hereof, to so of each year, shall determine <br/>
<a id="pl.117.15"></a><var>117.15</var>and certify that value; provided, however, that the value of such the detached lands and <br/>
<a id="pl.117.16"></a><var>117.16</var>such taxable properties shall never exceed 20 percent of the estimated market value of <br/>
<a id="pl.117.17"></a><var>117.17</var>all properties constituting and making up the basis aforesaid used to calculate the net <br/>
<a id="pl.117.18"></a><var>117.18</var>debt limit of the school district.<br/>
<br/>
<a id="bill.5.88.0"></a><a id="pl.117.19"></a><var>117.19</var>    Sec. 88. Minnesota Statutes 2010, section 473.661, subdivision 3, is amended to read:<br/>
<a id="pl.117.20"></a><var>117.20</var>    Subd. 3. <b>Levy limit.</b> In any budget certified by the commissioners under this <br/>
<a id="pl.117.21"></a><var>117.21</var>section, the amount included for operation and maintenance shall not exceed an amount <br/>
<a id="pl.117.22"></a><var>117.22</var>which, when extended against the property taxable therefor under section 
         <statute_ref>473.621, <br/>
<a id="pl.117.23"></a><var>117.23</var>subdivision 5
         </statute_ref>, will require a levy at a rate of 0.00806 percent of estimated market value. <br/>
<a id="pl.117.24"></a><var>117.24</var>Taxes levied by the corporation shall not affect the amount or rate of taxes which may <br/>
<a id="pl.117.25"></a><var>117.25</var>be levied by any other local government unit within the metropolitan area under the <br/>
<a id="pl.117.26"></a><var>117.26</var>provisions of any charter.<br/>
<br/>
<a id="bill.5.89.0"></a><a id="pl.117.27"></a><var>117.27</var>    Sec. 89. Minnesota Statutes 2010, section 473.667, subdivision 9, is amended to read:<br/>
<a id="pl.117.28"></a><var>117.28</var>    Subd. 9. <b>Additional taxes.</b> Nothing herein shall prevent the commission from <br/>
<a id="pl.117.29"></a><var>117.29</var>levying a tax not to exceed 0.00121 percent of estimated market value on taxable property <br/>
<a id="pl.117.30"></a><var>117.30</var>within its taxing jurisdiction, in addition to any levies found necessary for the debt <br/>
<a id="pl.117.31"></a><var>117.31</var>service fund authorized by section 
         <statute_ref>473.671</statute_ref>. Nothing herein shall prevent the levy and <br/>
<a id="pl.117.32"></a><var>117.32</var>appropriation for purposes of the commission of any other tax on property or on any <br/>
<a id="pl.117.33"></a><var>117.33</var>income, transaction, or privilege, when and if authorized by law. All collections of any <br/>
<a id="pl.117.34"></a><var>117.34</var>taxes so levied shall be included in the revenues appropriated for the purposes referred <br/>
<a id="pl.118.1"></a><var>118.1</var>to in this section, unless otherwise provided in the law authorizing the levies; but no <br/>
<a id="pl.118.2"></a><var>118.2</var>covenant as to the continuance or as to the rate and amount of any such levy shall be made <br/>
<a id="pl.118.3"></a><var>118.3</var>with the holders of the commission's bonds unless specifically authorized by law.<br/>
<br/>
<a id="bill.5.90.0"></a><a id="pl.118.4"></a><var>118.4</var>    Sec. 90. Minnesota Statutes 2010, section 473.671, is amended to read:<br/>
<a id="pl.118.5"></a><var>118.5</var><b>473.671 LIMIT OF TAX LEVY.</b><br/>
<a id="pl.118.6"></a><var>118.6</var>The taxes levied against the property of the metropolitan area in any one year shall <br/>
<a id="pl.118.7"></a><var>118.7</var>not exceed 0.00806 percent of taxable estimated market value, exclusive of taxes levied <br/>
<a id="pl.118.8"></a><var>118.8</var>to pay the principal or interest on any bonds or indebtedness of the city issued under <br/>
<a id="pl.118.9"></a><var>118.9</var>Laws 1943, chapter 500, and exclusive of any taxes levied to pay the share of the city for <br/>
<a id="pl.118.10"></a><var>118.10</var>payments on bonded indebtedness of the corporation provided for in Laws 1943, chapter <br/>
<a id="pl.118.11"></a><var>118.11</var>500. The levy of taxes authorized in Laws 1943, chapter 500, shall be in addition to the <br/>
<a id="pl.118.12"></a><var>118.12</var>maximum rate allowed to be levied to defray the cost of government under the provisions <br/>
<a id="pl.118.13"></a><var>118.13</var>of the charter of any city affected by Laws 1943, chapter 500.<br/>
<br/>
<a id="bill.5.91.0"></a><a id="pl.118.14"></a><var>118.14</var>    Sec. 91. Minnesota Statutes 2010, section 473.711, subdivision 2a, is amended to read:<br/>
<a id="pl.118.15"></a><var>118.15</var>    Subd. 2a. <b>Tax levy.</b> (a) The commission may levy a tax on all taxable property in <br/>
<a id="pl.118.16"></a><var>118.16</var>the district as defined in section 
         <statute_ref>473.702</statute_ref> to provide funds for the purposes of sections <br/>
<statute_ref><a id="pl.118.17"></a><var>118.17</var>473.701
         </statute_ref> to 
         <statute_ref>473.716</statute_ref>. The tax shall not exceed the property tax levy limitation determined <br/>
<a id="pl.118.18"></a><var>118.18</var>in this subdivision. A participating county may agree to levy an additional tax to be used <br/>
<a id="pl.118.19"></a><var>118.19</var>by the commission for the purposes of sections 
         <statute_ref>473.701</statute_ref> to 
         <statute_ref>473.716</statute_ref> but the sum of the <br/>
<a id="pl.118.20"></a><var>118.20</var>county's and commission's taxes may not exceed the county's proportionate share of <br/>
<a id="pl.118.21"></a><var>118.21</var>the property tax levy limitation determined under this subdivision based on the ratio of <br/>
<a id="pl.118.22"></a><var>118.22</var>its total net tax capacity to the total net tax capacity of the entire district as adjusted by <br/>
<a id="pl.118.23"></a><var>118.23</var>section 
         <statute_ref>270.12, subdivision 3</statute_ref>. The auditor of each county in the district shall add the <br/>
<a id="pl.118.24"></a><var>118.24</var>amount of the levy made by the district to other taxes of the county for collection by <br/>
<a id="pl.118.25"></a><var>118.25</var>the county treasurer with other taxes. When collected, the county treasurer shall make <br/>
<a id="pl.118.26"></a><var>118.26</var>settlement of the tax with the district in the same manner as other taxes are distributed <br/>
<a id="pl.118.27"></a><var>118.27</var>to political subdivisions. No county shall levy any tax for mosquito, disease vectoring <br/>
<a id="pl.118.28"></a><var>118.28</var>tick, and black gnat (Simuliidae) control except under this section. The levy shall be in <br/>
<a id="pl.118.29"></a><var>118.29</var>addition to other taxes authorized by law.<br/>
<a id="pl.118.30"></a><var>118.30</var>(b) The property tax levied by the Metropolitan Mosquito Control Commission shall <br/>
<a id="pl.118.31"></a><var>118.31</var>not exceed the product of (i) the commission's property tax levy limitation for the previous <br/>
<a id="pl.118.32"></a><var>118.32</var>year determined under this subdivision multiplied by (ii) an index for market valuation <br/>
<a id="pl.118.33"></a><var>118.33</var>changes equal to the total estimated market valuation value of all taxable property for the <br/>
<a id="pl.118.34"></a><var>118.34</var>current tax payable year located within the district plus any area that has been added to the <br/>
<a id="pl.119.1"></a><var>119.1</var>district since the previous year, divided by the total estimated market valuation value of all <br/>
<a id="pl.119.2"></a><var>119.2</var>taxable property located within the district for the previous taxes payable year.<br/>
<a id="pl.119.3"></a><var>119.3</var>(c) For the purpose of determining the commission's property tax levy limitation <br/>
<a id="pl.119.4"></a><var>119.4</var>under this subdivision, "total market valuation" means the total market valuation of all <br/>
<a id="pl.119.5"></a><var>119.5</var>taxable property within the district without valuation adjustments for fiscal disparities <br/>
<a id="pl.119.6"></a><var>119.6</var>(chapter 473F), tax increment financing (sections 
<statute_ref>469.174</statute_ref> to 469.179), and high voltage <br/>
<a id="pl.119.7"></a><var>119.7</var>transmission lines (section 273.425).<br/>
<br/>
<a id="bill.5.92.0"></a><a id="pl.119.8"></a><var>119.8</var>    Sec. 92. Minnesota Statutes 2010, section 473F.02, subdivision 12, is amended to read:<br/>
<a id="pl.119.9"></a><var>119.9</var>    Subd. 12. <b>Adjusted </b><b>market value.</b> "Adjusted market value" of real and personal <br/>
<a id="pl.119.10"></a><var>119.10</var>property within a municipality means the assessor's estimated taxable market value, <br/>
<a id="pl.119.11"></a><var>119.11</var>as defined in section 272.03, of all real and personal property, including the value of <br/>
<a id="pl.119.12"></a><var>119.12</var>manufactured housing, within the municipality, adjusted for sales ratios in a manner <br/>
<a id="pl.119.13"></a><var>119.13</var>similar to the adjustments made to city and town net tax capacities . For purposes <br/>
<a id="pl.119.14"></a><var>119.14</var>of sections 
<statute_ref>473F.01</statute_ref> to 
<statute_ref>473F.13</statute_ref>, the commissioner of revenue shall annually make <br/>
<a id="pl.119.15"></a><var>119.15</var>determinations and reports with respect to each municipality which are comparable to <br/>
<a id="pl.119.16"></a><var>119.16</var>those it makes for school districts under section 
         <statute_ref>127A.48, subdivisions 1 to 6</statute_ref>, in the same <br/>
<a id="pl.119.17"></a><var>119.17</var>manner and at the same times as are prescribed by the subdivisions. The commissioner <br/>
<a id="pl.119.18"></a><var>119.18</var>of revenue shall annually determine, for each municipality, information comparable to <br/>
<a id="pl.119.19"></a><var>119.19</var>that required by section 
<statute_ref>475.53, subdivision 4</statute_ref>, for school districts, as soon as practicable <br/>
<a id="pl.119.20"></a><var>119.20</var>after it becomes available. The commissioner of revenue shall then compute the equalized <br/>
<a id="pl.119.21"></a><var>119.21</var>market value of property within each municipality using the aggregate sales ratios from <br/>
<a id="pl.119.22"></a><var>119.22</var>the Department of Revenue's sales ratio study.<br/>
<br/>
<a id="bill.5.93.0"></a><a id="pl.119.23"></a><var>119.23</var>    Sec. 93. Minnesota Statutes 2010, section 473F.02, subdivision 14, is amended to read:<br/>
<a id="pl.119.24"></a><var>119.24</var>    Subd. 14. <b>Fiscal capacity.</b> "Fiscal capacity" of a municipality means its valuation <br/>
<a id="pl.119.25"></a><var>119.25</var>adjusted market value, determined as of January 2 of any year, divided by its population, <br/>
<a id="pl.119.26"></a><var>119.26</var>determined as of a date in the same year.<br/>
<br/>
<a id="bill.5.94.0"></a><a id="pl.119.27"></a><var>119.27</var>    Sec. 94. Minnesota Statutes 2010, section 473F.02, subdivision 15, is amended to read:<br/>
<a id="pl.119.28"></a><var>119.28</var>    Subd. 15. <b>Average fiscal capacity.</b> "Average fiscal capacity" of municipalities <br/>
<a id="pl.119.29"></a><var>119.29</var>means the sum of the valuations adjusted market values of all municipalities, determined <br/>
<a id="pl.119.30"></a><var>119.30</var>as of January 2 of any year, divided by the sum of their populations, determined as of <br/>
<a id="pl.119.31"></a><var>119.31</var>a date in the same year.<br/>
<br/>
<a id="bill.5.95.0"></a><a id="pl.119.32"></a><var>119.32</var>    Sec. 95. Minnesota Statutes 2010, section 473F.02, subdivision 23, is amended to read:<br/>
<a id="pl.120.1"></a><var>120.1</var>    Subd. 23. <b>Net tax capacity.</b> "Net tax capacity" means the taxable market value of <br/>
<a id="pl.120.2"></a><var>120.2</var>real and personal property multiplied by its net tax capacity rates in section 
         <statute_ref>273.13</statute_ref>.<br/>
<br/>
<a id="bill.5.96.0"></a><a id="pl.120.3"></a><var>120.3</var>    Sec. 96. Minnesota Statutes 2010, section 475.521, subdivision 4, is amended to read:<br/>
<a id="pl.120.4"></a><var>120.4</var>    Subd. 4. <b>Limitations on amount.</b> A municipality may not issue bonds under this <br/>
<a id="pl.120.5"></a><var>120.5</var>section if the maximum amount of principal and interest to become due in any year on <br/>
<a id="pl.120.6"></a><var>120.6</var>all the outstanding bonds issued under this section, including the bonds to be issued, <br/>
<a id="pl.120.7"></a><var>120.7</var>will equal or exceed 0.16 percent of the taxable estimated market value of property <br/>
<a id="pl.120.8"></a><var>120.8</var>in the municipality. Calculation of the limit must be made using the taxable estimated <br/>
<a id="pl.120.9"></a><var>120.9</var>market value for the taxes payable year in which the obligations are issued and sold. In <br/>
<a id="pl.120.10"></a><var>120.10</var>the case of a municipality with a population of 2,500 or more, the bonds are subject to <br/>
<a id="pl.120.11"></a><var>120.11</var>the net debt limits under section 
         <statute_ref>475.53</statute_ref>. In the case of a shared facility in which more <br/>
<a id="pl.120.12"></a><var>120.12</var>than one municipality participates, upon compliance by each participating municipality <br/>
<a id="pl.120.13"></a><var>120.13</var>with the requirements of subdivision 2, the limitations in this subdivision and the net debt <br/>
<a id="pl.120.14"></a><var>120.14</var>represented by the bonds shall be allocated to each participating municipality in proportion <br/>
<a id="pl.120.15"></a><var>120.15</var>to its required financial contribution to the financing of the shared facility, as set forth in <br/>
<a id="pl.120.16"></a><var>120.16</var>the joint powers agreement relating to the shared facility. This section does not limit the <br/>
<a id="pl.120.17"></a><var>120.17</var>authority to issue bonds under any other special or general law.<br/>
<br/>
<a id="bill.5.97.0"></a><a id="pl.120.18"></a><var>120.18</var>    Sec. 97. Minnesota Statutes 2010, section 475.53, subdivision 1, is amended to read:<br/>
<a id="pl.120.19"></a><var>120.19</var>    Subdivision 1. <b>Generally.</b> Except as otherwise provided in sections 
         <statute_ref>475.51</statute_ref> to <br/>
<statute_ref><a id="pl.120.20"></a><var>120.20</var>475.74
         </statute_ref>, no municipality, except a school district or a city of the first class, shall incur or be <br/>
<a id="pl.120.21"></a><var>120.21</var>subject to a net debt in excess of three percent of the estimated market value of taxable <br/>
<a id="pl.120.22"></a><var>120.22</var>property in the municipality.<br/>
<br/>
<a id="bill.5.98.0"></a><a id="pl.120.23"></a><var>120.23</var>    Sec. 98. Minnesota Statutes 2010, section 475.53, subdivision 3, is amended to read:<br/>
<a id="pl.120.24"></a><var>120.24</var>    Subd. 3. <b>Cities first class.</b> Unless its charter permits a greater net debt a city of <br/>
<a id="pl.120.25"></a><var>120.25</var>the first class may not incur a net debt in excess of two percent of the estimated market <br/>
<a id="pl.120.26"></a><var>120.26</var>value of all taxable property therein. If the charter of the city permits a net debt of the city <br/>
<a id="pl.120.27"></a><var>120.27</var>in excess of two percent of its valuation, it may not incur a net debt in excess of 3-2/3 <br/>
<a id="pl.120.28"></a><var>120.28</var>percent of the estimated market value of the taxable property therein.<br/>
<a id="pl.120.29"></a><var>120.29</var>The county auditor, at the time of preparing the tax list of the city, shall compile a <br/>
<a id="pl.120.30"></a><var>120.30</var>statement setting forth the total net tax capacity and the total estimated market value of <br/>
<a id="pl.120.31"></a><var>120.31</var>each class of taxable property in such city for such year.<br/>
<br/>
<a id="bill.5.99.0"></a><a id="pl.120.32"></a><var>120.32</var>    Sec. 99. Minnesota Statutes 2010, section 475.53, subdivision 4, is amended to read:<br/>
<a id="pl.121.1"></a><var>121.1</var>    Subd. 4. <b>School districts.</b> Except as otherwise provided by law, no school district <br/>
<a id="pl.121.2"></a><var>121.2</var>shall be subject to a net debt in excess of 15 percent of the actual estimated  market value <br/>
<a id="pl.121.3"></a><var>121.3</var>of all taxable property situated within its corporate limits, as computed in accordance with <br/>
<a id="pl.121.4"></a><var>121.4</var>this subdivision. The county auditor of each county containing taxable real or personal <br/>
<a id="pl.121.5"></a><var>121.5</var>property situated within any school district shall certify to the district upon request the <br/>
<a id="pl.121.6"></a><var>121.6</var>estimated market value of all such property. Whenever the commissioner of revenue, in <br/>
<a id="pl.121.7"></a><var>121.7</var>accordance with section 
         <statute_ref>127A.48, subdivisions 1 to 6</statute_ref>, has determined that the net tax <br/>
<a id="pl.121.8"></a><var>121.8</var>capacity of any district furnished by county auditors is not based upon the adjusted market <br/>
<a id="pl.121.9"></a><var>121.9</var>value of taxable property in the district exceeds the estimated market value of property <br/>
<a id="pl.121.10"></a><var>121.10</var>within the district, the commissioner of revenue shall certify to the district upon request <br/>
<a id="pl.121.11"></a><var>121.11</var>the ratio most recently ascertained to exist between such the estimated market  value and <br/>
<a id="pl.121.12"></a><var>121.12</var>the actual adjusted market value of property within the district., and the actual market <br/>
<a id="pl.121.13"></a><var>121.13</var>value of property within a district, on which its debt limit under this subdivision is will <br/>
<a id="pl.121.14"></a><var>121.14</var>be  based, is (a) the value certified by the county auditors, or (b) this on the estimated <br/>
<a id="pl.121.15"></a><var>121.15</var>market value divided by the ratio certified by the commissioner of revenue, whichever <br/>
<a id="pl.121.16"></a><var>121.16</var>results in a higher value.<br/>
<br/>
<a id="bill.5.100.0"></a><a id="pl.121.17"></a><var>121.17</var>    Sec. 100. Minnesota Statutes 2010, section 475.53, subdivision 5, is amended to read:<br/>
<a id="pl.121.18"></a><var>121.18</var>    Subd. 5. <b>Certain independent school districts.</b> No independent school district <br/>
<a id="pl.121.19"></a><var>121.19</var>located wholly or partly within a city of the first class shall issue obligations with a term <br/>
<a id="pl.121.20"></a><var>121.20</var>of more than two years, whenever the aggregate of the outstanding obligations of the <br/>
<a id="pl.121.21"></a><var>121.21</var>district equals or exceeds 0.7 percent of the estimated market value of the taxable property <br/>
<a id="pl.121.22"></a><var>121.22</var>within the school district.<br/>
<br/>
<a id="bill.5.101.0"></a><a id="pl.121.23"></a><var>121.23</var>    Sec. 101. Minnesota Statutes 2010, section 475.58, subdivision 2, is amended to read:<br/>
<a id="pl.121.24"></a><var>121.24</var>    Subd. 2. <b>Funding, refunding.</b> Any county, city, town, or school district whose <br/>
<a id="pl.121.25"></a><var>121.25</var>outstanding gross debt, including all items referred to in section 
         <statute_ref>475.51, subdivision <br/>
<a id="pl.121.26"></a><var>121.26</var>4
         </statute_ref>, exceed in amount 
         <statute_ref>1.62</statute_ref> percent of its estimated market value may issue bonds under <br/>
<a id="pl.121.27"></a><var>121.27</var>this subdivision for the purpose of funding or refunding such indebtedness or any part <br/>
<a id="pl.121.28"></a><var>121.28</var>thereof. A list of the items of indebtedness to be funded or refunded shall be made by the <br/>
<a id="pl.121.29"></a><var>121.29</var>recording officer and treasurer and filed in the office of the recording officer. The initial <br/>
<a id="pl.121.30"></a><var>121.30</var>resolution of the governing body shall refer to this subdivision as authority for the issue, <br/>
<a id="pl.121.31"></a><var>121.31</var>state the amount of bonds to be issued and refer to the list of indebtedness to be funded or <br/>
<a id="pl.121.32"></a><var>121.32</var>refunded. This resolution shall be published once each week for two successive weeks <br/>
<a id="pl.121.33"></a><var>121.33</var>in a legal newspaper published in the municipality or if there be no such newspaper, in <br/>
<a id="pl.121.34"></a><var>121.34</var>a legal newspaper published in the county seat. Such bonds may be issued without the <br/>
<a id="pl.122.1"></a><var>122.1</var>submission of the question of their issue to the electors unless within ten days after the <br/>
<a id="pl.122.2"></a><var>122.2</var>second publication of the resolution a petition requesting such election signed by ten or <br/>
<a id="pl.122.3"></a><var>122.3</var>more voters who are taxpayers of the municipality, shall be filed with the recording officer. <br/>
<a id="pl.122.4"></a><var>122.4</var>In event such petition is filed, no bonds shall be issued hereunder unless authorized by a <br/>
<a id="pl.122.5"></a><var>122.5</var>majority of the electors voting on the question.<br/>
<br/>
<a id="bill.5.102.0"></a><a id="pl.122.6"></a><var>122.6</var>    Sec. 102. Minnesota Statutes 2010, section 475.73, subdivision 1, is amended to read:<br/>
<a id="pl.122.7"></a><var>122.7</var>    Subdivision 1. <b>May purchase these bonds; conditions.</b> Obligations sold under the <br/>
<a id="pl.122.8"></a><var>122.8</var>provisions of section 
         <statute_ref>475.60</statute_ref> may be purchased by the State Board of Investment if the <br/>
<a id="pl.122.9"></a><var>122.9</var>obligations meet the requirements of section 
         <statute_ref>11A.24, subdivision 2</statute_ref>, upon the approval of <br/>
<a id="pl.122.10"></a><var>122.10</var>the attorney general as to form and execution of the application therefor, and under rules <br/>
<a id="pl.122.11"></a><var>122.11</var>as the board may specify, and the state board shall have authority to purchase the same <br/>
<a id="pl.122.12"></a><var>122.12</var>to an amount not exceeding 
         <statute_ref>3.63</statute_ref> percent of the estimated market value of the taxable <br/>
<a id="pl.122.13"></a><var>122.13</var>property of the municipality, according to the last preceding assessment. The obligations <br/>
<a id="pl.122.14"></a><var>122.14</var>shall not run for a shorter period than one year, nor for a longer period than 30 years and <br/>
<a id="pl.122.15"></a><var>122.15</var>shall bear interest at a rate to be fixed by the state board but not less than two percent per <br/>
<a id="pl.122.16"></a><var>122.16</var>annum. Forthwith upon the delivery to the state of Minnesota of any obligations issued by <br/>
<a id="pl.122.17"></a><var>122.17</var>virtue thereof, the commissioner of management and budget shall certify to the respective <br/>
<a id="pl.122.18"></a><var>122.18</var>auditors of the various counties wherein are situated the municipalities issuing the same, <br/>
<a id="pl.122.19"></a><var>122.19</var>the number, denomination, amount, rate of interest and date of maturity of each obligation.<br/>
<br/>
<a id="bill.5.103.0"></a><a id="pl.122.20"></a><var>122.20</var>    Sec. 103. Minnesota Statutes 2011 Supplement, section 477A.011, subdivision 20, <br/>
<a id="pl.122.21"></a><var>122.21</var>is amended to read:<br/>
<a id="pl.122.22"></a><var>122.22</var>    Subd. 20. <b>City net tax capacity.</b> "City net tax capacity" means (1) the net tax <br/>
<a id="pl.122.23"></a><var>122.23</var>capacity computed using the net tax capacity rates in section 
<statute_ref>273.13</statute_ref> for taxes payable <br/>
<a id="pl.122.24"></a><var>122.24</var>in the year of the aid distribution, and the market values, after the exclusion in section <br/>
<a id="pl.122.25"></a><var>122.25</var><statute_ref>273.13, subdivision 35</statute_ref>, for taxes payable in the year prior to the aid distribution plus (2) <br/>
<a id="pl.122.26"></a><var>122.26</var>a city's fiscal disparities distribution tax capacity under section 
<statute_ref>276A.06, subdivision 2</statute_ref>, <br/>
<a id="pl.122.27"></a><var>122.27</var>paragraph (b), or 
<statute_ref>473F.08, subdivision 2</statute_ref>, paragraph (b), for taxes payable in the year prior <br/>
<a id="pl.122.28"></a><var>122.28</var>to that for which aids are being calculated. The market value utilized in computing city <br/>
<a id="pl.122.29"></a><var>122.29</var>net tax capacity shall be reduced by the sum of (1) a city's market value of commercial <br/>
<a id="pl.122.30"></a><var>122.30</var>industrial property as defined in section 
<statute_ref>276A.01, subdivision 3</statute_ref>, or 
<statute_ref>473F.02, subdivision 3</statute_ref>, <br/>
<a id="pl.122.31"></a><var>122.31</var>multiplied by the ratio determined pursuant to section 
<statute_ref>276A.06, subdivision 2</statute_ref>, paragraph <br/>
<a id="pl.122.32"></a><var>122.32</var>(a), or 
<statute_ref>473F.08, subdivision 2</statute_ref>, paragraph (a), (2) the market value of the captured value <br/>
<a id="pl.122.33"></a><var>122.33</var>of tax increment financing districts as defined in section 
<statute_ref>469.177, subdivision 2</statute_ref>, and (3) <br/>
<a id="pl.122.34"></a><var>122.34</var>the market value of transmission lines deducted from a city's total net tax capacity under <br/>
<a id="pl.123.1"></a><var>123.1</var>section 
<statute_ref>273.425</statute_ref>. The city net tax capacity will be computed using equalized market values <br/>
<a id="pl.123.2"></a><var>123.2</var>the city's adjusted net tax capacity under section 273.1325.<br/>
<a id="pl.123.3"></a><var>123.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.104.0"></a><a id="pl.123.4"></a><var>123.4</var>    Sec. 104. Minnesota Statutes 2010, section 477A.0124, subdivision 2, is amended to <br/>
<a id="pl.123.5"></a><var>123.5</var>read:<br/>
<a id="pl.123.6"></a><var>123.6</var>    Subd. 2. <b>Definitions.</b> (a) For the purposes of this section, the following terms <br/>
<a id="pl.123.7"></a><var>123.7</var>have the meanings given them.<br/>
<a id="pl.123.8"></a><var>123.8</var>(b) "County program aid" means the sum of "county need aid," "county tax base <br/>
<a id="pl.123.9"></a><var>123.9</var>equalization aid," and "county transition aid."<br/>
<a id="pl.123.10"></a><var>123.10</var>(c) "Age-adjusted population" means a county's population multiplied by the county <br/>
<a id="pl.123.11"></a><var>123.11</var>age index.<br/>
<a id="pl.123.12"></a><var>123.12</var>(d) "County age index" means the percentage of the population over age 65 within <br/>
<a id="pl.123.13"></a><var>123.13</var>the county divided by the percentage of the population over age 65 within the state, except <br/>
<a id="pl.123.14"></a><var>123.14</var>that the age index for any county may not be greater than 1.8 nor less than 0.8.<br/>
<a id="pl.123.15"></a><var>123.15</var>(e) "Population over age 65" means the population over age 65 established as of <br/>
<a id="pl.123.16"></a><var>123.16</var>July 15 in an aid calculation year by the most recent federal census, by a special census <br/>
<a id="pl.123.17"></a><var>123.17</var>conducted under contract with the United States Bureau of the Census, by a population <br/>
<a id="pl.123.18"></a><var>123.18</var>estimate made by the Metropolitan Council, or by a population estimate of the state <br/>
<a id="pl.123.19"></a><var>123.19</var>demographer made pursuant to section 
         <statute_ref>4A.02</statute_ref>, whichever is the most recent as to the stated <br/>
<a id="pl.123.20"></a><var>123.20</var>date of the count or estimate for the preceding calendar year and which has been certified <br/>
<a id="pl.123.21"></a><var>123.21</var>to the commissioner of revenue on or before July 15 of the aid calculation year. A revision <br/>
<a id="pl.123.22"></a><var>123.22</var>to an estimate or count is effective for these purposes only if certified to the commissioner <br/>
<a id="pl.123.23"></a><var>123.23</var>on or before July 15 of the aid calculation year. Clerical errors in the certification or use of <br/>
<a id="pl.123.24"></a><var>123.24</var>estimates and counts established as of July 15 in the aid calculation year are subject to <br/>
<a id="pl.123.25"></a><var>123.25</var>correction within the time periods allowed under section 
         <statute_ref>477A.014</statute_ref>.<br/>
<a id="pl.123.26"></a><var>123.26</var>(f) "Part I crimes" means the three-year average annual number of Part I crimes <br/>
<a id="pl.123.27"></a><var>123.27</var>reported for each county by the Department of Public Safety for the most recent years <br/>
<a id="pl.123.28"></a><var>123.28</var>available. By July 1 of each year, the commissioner of public safety shall certify to the <br/>
<a id="pl.123.29"></a><var>123.29</var>commissioner of revenue the number of Part I crimes reported for each county for the <br/>
<a id="pl.123.30"></a><var>123.30</var>three most recent calendar years available.<br/>
<a id="pl.123.31"></a><var>123.31</var>(g) "Households receiving food stamps" means the average monthly number of <br/>
<a id="pl.123.32"></a><var>123.32</var>households receiving food stamps for the three most recent years for which data is <br/>
<a id="pl.123.33"></a><var>123.33</var>available. By July 1 of each year, the commissioner of human services must certify to the <br/>
<a id="pl.123.34"></a><var>123.34</var>commissioner of revenue the average monthly number of households in the state and in <br/>
<a id="pl.123.35"></a><var>123.35</var>each county that receive food stamps, for the three most recent calendar years available.<br/>
<a id="pl.124.1"></a><var>124.1</var>(h) "County net tax capacity" means the net tax capacity of the county, computed <br/>
<a id="pl.124.2"></a><var>124.2</var>analogously to city net tax capacity under section 
<statute_ref>477A.011, subdivision 20</statute_ref> county's <br/>
<a id="pl.124.3"></a><var>124.3</var>adjusted net tax capacity under section 273.1325.<br/>
<a id="pl.124.4"></a><var>124.4</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.105.0"></a><a id="pl.124.5"></a><var>124.5</var>    Sec. 105. Minnesota Statutes 2010, section 641.23, is amended to read:<br/>
<a id="pl.124.6"></a><var>124.6</var><b>641.23 FUNDS; HOW PROVIDED.</b><br/>
<a id="pl.124.7"></a><var>124.7</var>Before any contract is made for the erection of a county jail, sheriff's residence, or <br/>
<a id="pl.124.8"></a><var>124.8</var>both, the county board shall either levy a sufficient tax to provide the necessary funds, or <br/>
<a id="pl.124.9"></a><var>124.9</var>issue county bonds therefor in accordance with the provisions of chapter 475, provided <br/>
<a id="pl.124.10"></a><var>124.10</var>that no election is required if the amount of all bonds issued for this purpose and interest <br/>
<a id="pl.124.11"></a><var>124.11</var>on them which are due and payable in any year does not exceed an amount equal to <br/>
<a id="pl.124.12"></a><var>124.12</var>0.09671 percent of estimated market value of taxable property within the county, as last <br/>
<a id="pl.124.13"></a><var>124.13</var>determined before the bonds are issued.<br/>
<br/>
<a id="bill.5.106.0"></a><a id="pl.124.14"></a><var>124.14</var>    Sec. 106. Minnesota Statutes 2010, section 641.24, is amended to read:<br/>
<a id="pl.124.15"></a><var>124.15</var><b>641.24 LEASING.</b><br/>
<a id="pl.124.16"></a><var>124.16</var>The county may, by resolution of the county board, enter into a lease agreement with <br/>
<a id="pl.124.17"></a><var>124.17</var>any statutory or home rule charter city situated within the county, or a county housing and <br/>
<a id="pl.124.18"></a><var>124.18</var>redevelopment authority established pursuant to chapter 469 or any special law whereby <br/>
<a id="pl.124.19"></a><var>124.19</var>the city or county housing and redevelopment authority will construct a jail or other law <br/>
<a id="pl.124.20"></a><var>124.20</var>enforcement facilities for the county sheriff, deputy sheriffs, and other employees of the <br/>
<a id="pl.124.21"></a><var>124.21</var>sheriff and other law enforcement agencies, in accordance with plans prepared by or at <br/>
<a id="pl.124.22"></a><var>124.22</var>the request of the county board and, when required, approved by the commissioner of <br/>
<a id="pl.124.23"></a><var>124.23</var>corrections and will finance it by the issuance of revenue bonds, and the county may lease <br/>
<a id="pl.124.24"></a><var>124.24</var>the site and improvements for a term and upon rentals sufficient to produce revenue for the <br/>
<a id="pl.124.25"></a><var>124.25</var>prompt payment of the bonds and all interest accruing thereon and, upon completion of <br/>
<a id="pl.124.26"></a><var>124.26</var>payment, will acquire title thereto. The real and personal property acquired for the jail <br/>
<a id="pl.124.27"></a><var>124.27</var>shall constitute a project and the lease agreement shall constitute a revenue agreement <br/>
<a id="pl.124.28"></a><var>124.28</var>as contemplated in chapter 469, and all proceedings shall be taken by the city or county <br/>
<a id="pl.124.29"></a><var>124.29</var>housing and redevelopment authority and the county in the manner and with the force and <br/>
<a id="pl.124.30"></a><var>124.30</var>effect provided in chapter 469; provided that:<br/>
<a id="pl.124.31"></a><var>124.31</var>(1) no tax shall be imposed upon or in lieu of a tax upon the property;<br/>
<a id="pl.124.32"></a><var>124.32</var>(2) the approval of the project by the commissioner of commerce shall not be <br/>
<a id="pl.124.33"></a><var>124.33</var>required;<br/>
<a id="pl.125.1"></a><var>125.1</var>(3) the Department of Corrections shall be furnished and shall record such <br/>
<a id="pl.125.2"></a><var>125.2</var>information concerning each project as it may prescribe;<br/>
<a id="pl.125.3"></a><var>125.3</var>(4) the rentals required to be paid under the lease agreement shall not exceed in any <br/>
<a id="pl.125.4"></a><var>125.4</var>year one-tenth of one percent of the estimated market value of property within the county, <br/>
<a id="pl.125.5"></a><var>125.5</var>as last finally equalized before the execution of the agreement;<br/>
<a id="pl.125.6"></a><var>125.6</var>(5) the county board shall provide for the payment of all rentals due during the term <br/>
<a id="pl.125.7"></a><var>125.7</var>of the lease, in the manner required in section 
         <statute_ref>641.264, subdivision 2</statute_ref>;<br/>
<a id="pl.125.8"></a><var>125.8</var>(6) no mortgage on the property shall be granted for the security of the bonds, but <br/>
<a id="pl.125.9"></a><var>125.9</var>compliance with clause (5) hereof may be enforced as a nondiscretionary duty of the <br/>
<a id="pl.125.10"></a><var>125.10</var>county board; and<br/>
<a id="pl.125.11"></a><var>125.11</var>(7) the county board may sublease any part of the jail property for purposes consistent <br/>
<a id="pl.125.12"></a><var>125.12</var>with the maintenance and operation of a county jail or other law enforcement facility.<br/>
<br/>
<a id="bill.5.107.0"></a><a id="pl.125.13"></a><var>125.13</var>    Sec. 107. Minnesota Statutes 2010, section 645.44, is amended by adding a subdivision <br/>
<a id="pl.125.14"></a><var>125.14</var>to read:<br/>
<a id="pl.125.15"></a><var>125.15</var>    Subd. 20. <b>Estimated market value.</b> When used in determining or calculating a <br/>
<a id="pl.125.16"></a><var>125.16</var>limit on taxation, spending, state aid amounts, or debt, bond, certificate of indebtedness, or <br/>
<a id="pl.125.17"></a><var>125.17</var>capital note issuance by or for a local government unit, "estimated market value" has the <br/>
<a id="pl.125.18"></a><var>125.18</var>meaning given in section 273.032. <br/>
<br/>
<a id="bill.5.108.0"></a><a id="pl.125.19"></a><var>125.19</var>    Sec. 108. <b>REVISOR'S INSTRUCTION.</b><br/>
<a id="pl.125.20"></a><var>125.20</var>The revisor of statutes shall recodify Minnesota Statutes, section 127A.48, <br/>
<a id="pl.125.21"></a><var>125.21</var>subdivisions 1 to 6, as section 273.1325, subdivisions 1 to 6, and change all <br/>
<a id="pl.125.22"></a><var>125.22</var>cross-references to the affected subdivisions accordingly.<br/>
<a id="pl.125.23"></a><var>125.23</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.109.0"></a><a id="pl.125.24"></a><var>125.24</var>    Sec. 109. <b> REPEALER.</b><br/>
<a id="pl.125.25"></a><var>125.25</var>Minnesota Statutes 2010, sections 273.11, subdivision 1a; 276A.01, subdivision <br/>
<a id="pl.125.26"></a><var>125.26</var>11; 276A.06, subdivision 10; 473F.02, subdivision 13; 473F.08, subdivision 10; and <br/>
<a id="pl.125.27"></a><var>125.27</var>477A.011, subdivision 21, are repealed.<br/>
<br/>
<a id="bill.5.110.0"></a><a id="pl.125.28"></a><var>125.28</var>    Sec. 110. <b>EFFECTIVE DATE.</b><br/>
<a id="pl.125.29"></a><var>125.29</var>Unless otherwise specifically provided, this act is effective the day following final <br/>
<a id="pl.125.30"></a><var>125.30</var>enactment for purposes of limits on net debt, the issuance of bonds, certificates of <br/>
<a id="pl.125.31"></a><var>125.31</var>indebtedness, and capital notes and is effective beginning for taxes payable in 2013 for <br/>
<a id="pl.125.32"></a><var>125.32</var>all other purposes.<br/>
<br/>
<a id="bill.6.0.0"></a>

<a id="bill.6.1.0"></a><a id="pl.126.3"></a><var>126.3</var>    Section 1. <b>GENERAL FUND SAVINGS AND BUDGET RESERVE TRANSFER.</b><br/>
<a id="pl.126.4"></a><var>126.4</var>(a) The commissioner of management and budget must reduce general fund <br/>
<a id="pl.126.5"></a><var>126.5</var>appropriations to executive agencies, including constitutional offices, for agency <br/>
<a id="pl.126.6"></a><var>126.6</var>operations for the biennium ending June 30, 2013, by an amount calculated in paragraph <br/>
<a id="pl.126.7"></a><var>126.7</var>(b).<br/>
<a id="pl.126.8"></a><var>126.8</var>(b) The reduction in appropriations under paragraph (a) must come from all <br/>
<a id="pl.126.9"></a><var>126.9</var>funds savings provided by the reforms, efficiencies, and cost-saving measures through <br/>
<a id="pl.126.10"></a><var>126.10</var>implementation of the data analytics master contract program administered by the <br/>
<a id="pl.126.11"></a><var>126.11</var>Department of Administration entered into in fiscal year 2012 and fiscal year 2013.<br/>
<a id="pl.126.12"></a><var>126.12</var>(c) On November 15, 2012, the commissioner of management and budget shall <br/>
<a id="pl.126.13"></a><var>126.13</var>certify the amount of general fund savings resulting from state government appropriation <br/>
<a id="pl.126.14"></a><var>126.14</var>reductions under paragraph (a), and, in the event that the savings amount does not generate <br/>
<a id="pl.126.15"></a><var>126.15</var>$99,900,000, shall cancel the difference between the state government reduction general <br/>
<a id="pl.126.16"></a><var>126.16</var>fund savings and $99,900,000 in the budget reserve account in Minnesota Statutes, section <br/>
<a id="pl.126.17"></a><var>126.17</var>16A.152, to the general fund.<br/>
<a id="pl.126.18"></a><var>126.18</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.6.2.0"></a><a id="pl.126.19"></a><var>126.19</var>    Sec. 2. <b>SPECIAL RECOVERY FUND; CANCELLATION.</b><br/>
<a id="pl.126.20"></a><var>126.20</var>$4,300,000 of the balance in the Revenue Department service and recovery special <br/>
<a id="pl.126.21"></a><var>126.21</var>revenue fund under Minnesota Statutes, section 270C.15, is transferred in fiscal year <br/>
<a id="pl.126.22"></a><var>126.22</var>2012 to the general fund.<br/>
<a id="pl.126.23"></a><var>126.23</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>