1E Relating to the financing of state and local government

ARTICLE 1 - INCOME TAX

Modifying the angel investment program and certain small business investment provisions, defining qualified greater Minnesota business; conforming certain rollover provisions in individual retirement accounts; eliminating the two percent contractor withholding requirement; conforming to federal taxable income changes; allowing an income tax subtraction for a certain percentage of military retirement pay; eliminating the definition of qualified individual for military retirement pay credit purposes; modifying certain credit for historic structure rehabilitation provisions; changing the definition of qualified brewer producing fermented malt beverages to qualify for the tax credit; repealing the military retirement pay credit and the contractor withholding requirement

ARTICLE 2 - SALES TAX

Modifying the sales and use tax payment due dates by removing certain remittance exceptions for vendors; exempting certain medical laboratory services payments from gross revenues taxation; clarifying the timing of tax collection for rent-to-own or lease-to-own used vehicles and redefining retail sale; clarifying sales exemption for medical devices, adding a sale tax exemption for certain items purchased in transactions covered by Medicare and Medicaid; providing a phased-in upfront exemption for capital equipment purchases, modifying an exemption for qualified data centers; exempting mobile medical units from motor vehicle sales; conforming certain provisions; repealing the early vendor remittance penalty

ARTICLE 3 - PROPERTY TAX

Modifying expenditure type reporting requirements for the monetary benefit in the performance standard measures program for certain counties or cities for 2012 only; eliminating the levy cap on the career and technical levy and specifying a limit for taxes payable in 2012; modifying technology and information education systems (TIES) school lease levy authority, permitting alternative uses of the building lease levy for school districts that are members of the St. Croix River education district; modifying the state general levy base amount for commercial-industrial property and seasonal recreation property for 2013-2016 and eliminating the percentage apportionment of the state general levy; requiring certain counties and cities to report additional budgetary information, specifying certain expenditure type reporting requirements; modifying the targeting property tax refund formula for gross property tax additional refunds; setting 2013 local government aid (LGA) payments at an amount equal to 2012 payments; authorizing a lease levy for administrative space for independent school district #656, Faribault and independent school district #284, Wayzata; requiring the commissioner of revenue to recalculate the targeting property tax refund for claims for additional refunds; repealing the state general levy for taxes payable in 2026 and thereafter

ARTICLE 4 - LOCAL DEVELOPMENT

Modifying the definition of redevelopment district for tax increment financing (TIF) eligibility purposes; defining soil deficiency district; authorizing a housing and redevelopment authority to designate a mining reclamation project area, specifying the application of special rules and duration limit; modifying a pooling provision for expenditures outside the district to develop housing; extending the Oakdale tax increment financing (TIF) time limit and designating parcels deemed occupied; authorizing Apple Valley the use of tax increment financing for developments consisting of building and ancillary facilities, providing an extension of authority to spend tax increments; authorizing Bloomington to extend certain tax increment financing (TIF) districts duration limits; authorizing Brooklyn Park tax increment financing (TIF) district special rules to assist in the development of an aquatic performance and wellness center; authorizing the Dakota county development authority to establish a redevelopment tax increment financing (TIF) district comprised of certain properties; authorizing the use of tax increment financing for certain public infrastructure improvements by the St. Cloud economic development authority

ARTICLE 5 - HOMESTEAD MARKET VALUE CLEANUP

Converting the computation of levy, tax, spending, debt, and similar limits based on market value or taxable market value to estimated market value; clarifying limits on taxation, spending, and incurring debt based on market values; defining certain terms; making technical and clarifying changes; repealing certain obsolete provisions

ARTICLE 6 - MISCELLANEOUS

Providing a general fund savings and budget reserve transfer, specifying certain duties of the commissioner of management budget; transferring a certain balance in the revenue department service and recovery special fund revenue fund to the general fund in fiscal year 2012
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