Relating to financing and operation of state and local government

ARTICLE 1 - HOMESTEAD CREDIT REFUND AND RENTER PROPERTY TAX REFUND

Modifying household income definition; modifying the homestead credit refund; modifying the renter property tax refund; modifying the homestead credit refund and renter property tax refund and updating the inflation adjustment; requiring the notification of potential eligibility report

ARTICLE 2 - PROPERTY TAX AIDS AND CREDITS

Increasing the disparity reduction credit in the border cities of Breckenridge, Dilworth, East Grand Forks, and Moorhead; modifying the forest land qualification; providing for SFIA (Sustainable Forest Incentive Act) eligibility requirements, length of covenant termination authority, and calculation of incentive payment; providing for police and firefighter retirement supplemental state aid and allocation; providing for a pre-1940 housing percentage definition and formula, specifying a separate definition for the city of East Grand Forks; defining city revenue need per capita; defining jobs per capita; clarifying peak population decline; providing for city revenue need sparsity adjustment formula; providing for town aid payments; modifying the city formula aid; modifying city total aid distribution; certifying aid adjustments for Warroad, Mahnomen and Red Wing; modifying local government aid (LGA) payment date for cities located in a disaster area in April 2013; providing for city aid appropriation; providing for county program aid appropriation; providing for town aid appropriation provided; providing for Minneapolis debt service aid; providing for payments in lieu of taxes (PILT) purpose statement; redefining acquired natural resources land; redefining other natural resources land; defining military game refuge, transportation wetland and wildlife management land, providing for payments, clarifying determination and certification of land authority, determination of appraised value of acquired natural resources land, townships payment allocation requirements and distribution for wildlife management land and military refuge land payment allocation requirements; increasing annual aid appropriations for Mahnomen county; providing for SFIA ineligible lands covenant release; providing for SFIA reenrollment authority; repealing provisions relating to the current local government aid formula and obsolete aid adjustments

ARTICLE 3 - EDUCATION AIDS AND LEVIES

Modifying achievement and integration revenue; providing for general education revenue location equity revenue; establishing location equity revenue; creating a third tier of referendum equalization with new equalization levels set for each tier; providing for an operating referendum freeze for fiscal year 2015

ARTICLE 4 - PROPERTY TAXES

Modifying board of water and soil resources (BWSR) local water management entity evaluation and report requirements; modifying and clarifying local government tax levy authority relating to water planning and management and conservation and watershed districts; modifying financial assistance, water implementation tax, and county conservation fee money disposition; modifying cost-sharing funds allocations; modifying local authority soil loss ordinance provisions; exempting manufactured homes and park trailers from motor vehicle registration tax and the personal property tax if held as inventory by a limited dealer; clarifying manufactured home dealer inventory definition and exemption; providing for state board of assessors sanctions; requiring a board of assessors report on disciplinary actions; clarifying board of assessors disposition of fees and fines; providing for assessor accreditation licensure requirements; modifying economic development public purpose; providing for certain property owned in Minneapolis by an Indian tribe property tax exemption; providing for an electric generation facility personal property tax exemption; modifying commissioner review of assessment practices; clarifying conservation property tax valuation; creating a second tier for class 4d (low-income properties) at .25 percent and modifying first tier limits; modifying property tax due dates for certain homestead property; modifying duties of county auditor and treasurer for delinquent property; modifying class 3a property provisions; providing for installment payments adjustments; modifying the period for redemption for homestead or seasonal residential recreational land; granting Hennepin and Ramsey counties authority to impose the mortgage registry and deed tax through 2028; extending special service and housing improvement districts establishment authority; modifying Bloomington computation loan repayment obligation; modifying Cook-Orr hospital district levy authority; reinstating the Carlton county Sawyer cemetery levy authority; extending Northwest Minnesota multicounty housing and redevelopment authority levy; expanding the Cloquet area fire and ambulance taxing district agreement; modifying the Cloquet area fire and ambulance taxing district tax provisions; expanding the Marshall county farm homesteads agricultural homestead classification due to flooding in 2009; requiring Minneapolis and St. Paul entertainment facilities coordination legislative report; reimbursing Hennepin county for property tax abatements provided due to the 2011 tornado; providing for St. Paul Ball Park property tax exemption for a city-owned ball park primarily used by a minor league team; providing for a Target Center property tax exemption; providing for Target Center construction manager at risk contract authority; extending commercial seasonal recreational properties property tax due date; requiring a class 4d tier structure legislative report; requiring a report and study requirement for property tax assessment procedures for facilities used in the production of biofuels, wine, beer, distilled beverages, and dairy products; requiring a city property tax savings report and content requirements; establishing counties and cities levy limits for taxes payable in 2014; appropriating money for Moose Lake sewer lines costs grant

ARTICLE 5 - SPECIAL TAXES

Modifying jet fuel and special fuels taxes; expanding aviation gasoline graduated refund; exempting certain air flight equipment, aircraft parts, and associated installation charges from the general sales tax; requiring state airports fund deposit; modifying the definition of cigarette; defining moist snuff; defining cigar; modifying the definition of other tobacco products; increasing the cigarette excise tax; requiring annual indexing for adjusting the tax rates on cigarettes and other tobacco products; modifying other tobacco products tax rates; imposing a premium cigar distributors tax; modifying the tobacco use tax; imposing a premium cigars use tax; modifying the nonsettlement fee; modifying the cigarette sales tax rate; modifying the small brewer tax credit threshold; modifying the definition of cigarette in the unfair cigarette sales act; modifying tobacco products delivery sales; providing for a modified 501(c)(3) organizations raffle prizes registration exemption allowance; modifying the aircraft registration tax rate in lieu tax; requiring an airports fund report; providing for a floor stocks tax on cigarettes; adjusting cigarettes interim sales tax rate; requiring a tobacco tax collection report; repealing the health impact fee on cigarettes and tobacco products and health impact fund

ARTICLE 6 - INDIVIDUAL INCOME AND CORPORATE FRANCHISE TAXES

Defining angel investment credit liquidation event; modifying the angel investment credit qualifying small business requirements; modifying the angel investment credit exemption and data privacy provisions; establishing the Greater Minnesota internship program tax credit for employers; updating foreign operating corporations (FOC) administrative tax provisions; updating federal definition of taxable income; modifying subtractions from federal taxable income (FTI) for individuals by short line railroads; providing additions to FTI for corporations; modifying corporations subtractions from federal taxable income; updating individual income tax rates and imposing a fourth tier; providing an inflation adjustment of income tax brackets; establishing a Greater Minnesota internship credit; expanding the military retirement credit past service eligibility criteria; providing for a research credit carryover; modifying the research credit; defining historic structure rehabilitation credit; providing for the State Historic Preservation Office (SHPO) of the Minnesota Historical Society applications historic credit authority; providing for historic credit certificates and grants assignment authority; providing for historic credit partnerships and multiple owners allocations; modifying the historic credit sunset; modifying the alternative minimum tax (AMT) for individuals; modifying the franchise tax minimum fee; modifying the unitary business principle; modifying real estate investment trust (REIT) dividends; updating the occupation tax taxable income; clarifying historic structure rehabilitation credit effective date; modifying the estimated taxes penalty exemption (safe harbor); repealing provisions relating to the definition of foreign operating corporation for the corporate franchise tax and the corporate AMT and the nonresidents credit for taxes paid to state of domicile

ARTICLE 7 - ESTATE AND GIFT TAXES

Modifying the data practices gift tax cross reference; modifying the disclosure of gift tax return data; modifying the estate tax filing requirements; modifying the estate tax provisions and updating definitions; making gift tax conforming changes; modifying nonresident decedent tax credit; clarifying the family member definition; clarifying the qualified small business property definition; clarifying and modifying the qualified farm property definition; clarifying the recapture tax for sole proprietor property; defining gift tax; imposing a gift tax imposition; specifying gift tax returns requirements; specifying gift tax filing requirements; authorizing taxable gifts appraisal of property; imposing administrative provisions and payment date

ARTICLE 8 - SALES AND USE TAXES; LOCAL SALES TAX

Providing for Greater Minnesota businesses qualified expansions; expanding and clarifying the definition of sale and purchase; expanding and clarifying the definition of retail sale; clarifying the definition of personal property; modifying the definitions of pay television service; modifying the definition of bundled transaction; clarifying the definition of ring tones; defining motor vehicle repair paint and motor vehicle materials; defining digital audio works, digital audio-visual works, digital books, digital code, other digital products, specified digital products, and transferred electronically; defining self-storage services; increasing motor vehicle rental tax rate; clarifying retailer not maintaining place of business in the state; defining solicitor nexus and clarifying solicitor nexus for sales and purchases; providing a burden of proof for presumption of tax; clarifying multiple points of use exemption certificate authority; expanding medical devices sales tax exemptions; clarifying digital books for education; clarifying materials consumed in industrial production exemptions; modifying capital equipment exemptions; modifying qualified data centers exemptions; expanding Greater Minnesota business exemptions; expanding sales to local governments eligibility; expanding sales to veterans groups eligibility; modifying critical access dental providers sales tax exemption; modifying religious orders exemption; modifying fundraising sales by nonprofit organizations exemptions; modifying fundraising events sale; modifying nursing homes and boarding care homes sales tax exemptions; modifying biopharmaceutical manufacturing facility sales tax exemption; modifying research and development facility sales tax exemption; authorizing an industrial measurement manufacturing and controls facility sales tax exemption; providing for the refund authority for qualified construction materials and equipment purchases; providing for local sales tax referenda expenditures authority; modifying the St. Paul local sales tax; modifying the Rochester lodging tax; modifying St. Cloud use of revenues; modifying the termination of tax (central cities) authority; expanding the Clearwater use of revenues authority; expanding Marshall use of food and beverage tax authority; modifying Marshall validation of prior act authority; modifying Proctor validation of prior act authority; repealing provisions relating to the definition of direct satellite service and the 2009 Rochester local food and beverage tax authority

ARTICLE 9 - ECONOMIC DEVELOPMENT

Modifying Bloomington port authority public bidding requirements; modifying border city fund allocations; updating economic development districts provisions; modifying general government use of tax increments for improvements and equipment; modifying tax increment financing (TIF) districts four-year rule; clarifying original local tax rate; authorizing TIF original net tax capacity adjustments; authorizing TIF qualifying districts original net tax capacity adjustments; requiring TIF distribution of excess taxes on captured net tax capacity; modifying Mall of America (MOA) funding fiscal disparities calculations; modifying provisions relating to Bloomington Central Station (BCS), Oakdale, St. Cloud, Glencoe, Ely, West St. Paul CDA, and Apple Valley TIF provisions; authorizing Minneapolis streetcar financing value capture district; authorizing a Maplewood TIF; authorizing a Mall of America (MOA) TIF district property transfer and extension; providing funding for the Bloomington Old Cedar Avenue Bridge renovation or replacement

ARTICLE 10 - DESTINATION MEDICAL CENTER

Classifying private donor gift data; providing for construction material; providing for public infrastructure costs sales tax exemption for construction materials and supplies; defining certain terms; establishing the Destination Medical Center Corporation (DMCC); specifying DMCC officers, duties, and organizational matters authority; providing for the DMCC development plan; specifying DMCC and city of Rochester powers, duties and authority to issue bonds and tax authority; authorizing an Olmsted county tax; providing for state infrastructure aid; authorizing Rochester sales and use taxes; specifying Rochester use of revenues requirements; modifying Rochester termination of taxes authority; providing for Rochester sales tax sharing; requiring an Olmsted county interregional passenger rail study

ARTICLE 11 - MINERALS TAX

Modifying taconite payments and other reductions; modifying occupation taxes; requiring the taconite economic development fund (TEDF) fund match; increasing the taconite production tax rate; increasing the taconite school aid; reducing the property tax relief; modifying the Eveleth hockey hall funding; requiring an Iron Range fiscal disparities study; modifying 2013 one-time distributions; providing for Iron Range resources and rehabilitation (IRRR) commissioner bonding grant authority for school districts in the taconite tax relief areas for capital projects

ARTICLE 12 - PUBLIC FINANCE

Authorizing investment in state and local securities; modifying guaranteed investment contracts; updating the energy improvement financing program (EIFP) special assessments for energy improvements; modifying county and city capital notes definitions; expanding the county capital improvement program (CIP) bonds definition; modifying the CIP election requirements; authorizing Dakota county community development agency (DCCDA) housing improvement area powers; modifying statutory city capital notes authority; modifying the metropolitan council transit obligations; modifying the metropolitan airports commission (MAC) investment powers; modifying entitlement reservations; modifying the office of higher education (OHE) bond allocations; modifying the Minnesota housing Finance agency (MHFA) mortgage bonds allocation; modifying the city CIP bonds use authority; modifying the city CIP bonds election requirements; modifying the street reconstruction bonds reverse referendum provisions; extending St. Paul CIP bonding; clarifying carry forward of bonding authority for 2011 allocations; authorizing independent school district #435, Wauben-Ogema-White Earth prior grant use expansion and modifying local match provision; authorizing a legislative office facilities long-term lease-purchase agreement to predesign, construct, and equip office, hearing room and parking facilities for legislative and other functions and appropriating money; appropriating money for rent loss and relocation expenses related to the Capitol renovation project

ARTICLE 13 - MISCELLANEOUS PROVISIONS

Providing for a football stadium backup revenues trigger for the special revenue fund for the Vikings stadium; appropriating money for the agricultural utilization research institute appropriation; modifying E911 fee provisions; providing for the authority of the commissioner of revenue relating to the multistate tax commission (MTC); providing for backup stadium revenues; defining prepaid wireless telecommunications services; defining wireless telecommunications service and wireless telecommunications service provider; requiring the biennial budget to include annual financial report of 911 revenue and expenditure forecasts and projections; modifying the emergency telecommunications service fee account; modifying eligible telecommunications carrier status requirements; modifying telecommunications providers reporting requirements; providing for E911 prepaid wireless fee use and administration definitions; modifying prepaid wireless fees imposition on E911 and TAM, collection and remittance provisions; providing for prepaid wireless 911 fees administration; providing for liability protection for sellers and providers of prepaid wireless telecommunications service; providing for exclusivity of prepaid wireless E911 fee; providing for purpose statements for various tax expenditures; appropriating money to the commissioners of revenue and the department of employment and economic development (DEED); repealing state membership to the Multistate Tax Compact

ARTICLE 14 - MARKET VALUE DEFINITIONS

Converting the computation of levy, tax, spending, debt, and similar limits that are based on market value or taxable market value to estimated market value; modifying county fairgrounds improvement expenditures; modifying the county agricultural land preservation and conservation assistance program; modifying state police and fire aid definitions; modifying state fire aid apportionment; clarifying auxiliary forest market value of land; modifying watershed management tax district levy limit; modifying watershed management organizations bond levy; modifying Lake Minnetonka conservation district total funding limitation; modifying White Bear Lake conservation district municipal levy limits; modifying watershed districts organizational fund cap; modifying watershed districts general fund and basic features levy limits; modifying watershed districts survey and data acquisition levy limit; modifying eminent domain blight test structurally substandard definition; modifying state aid payment and adjustment; modifying county historical society levy limits; modifying emergency medical service (EMS) taxing districts levy limits; modifying county state aid highway formula for rural counties; modifying county state aid highway levy calculation formula for urban counties; modifying county highways bridges within certain cities county state aid highway money exemption; modifying county road and bridge levy in unorganized towns qualifying rules; modifying county road and bridge bond limit; defining estimated market value for property tax provisions; defining taxable market value for property tax provisions; defining market value; modifying computing of levy limits, debt limits and state aid; modifying the manufactured home park cooperative reference from the homestead market value credit to the homestead market value exclusion; modifying the homestead application reference; eliminating the classification of property gross tax capacity definition; modifying the disparity reduction aid; modifying the disparity reduction credit; modifying the levy limits based on mill rates growth factor; modifying the correction of town levies thresholds; modifying the contents of tax statement references; modifying and clarifying the Iron Range fiscal disparities program tax provisions; clarifying the multicounty mortgage registry tax collections allocations; clarifying multicounty deed tax collections allocations; modifying volunteer firefighters retirement plan employer contributions allocations; modifying the town general law major purchases threshold; modifying town firefighter relief levy limit; modifying metropolitan area towns certificates of indebtedness references; modifying town dissolution criteria; modifying county boundary changes criteria; eliminating county capital improvement plan bonds definition of tax capacity; modifying county capital improvement plan bond debt limits; modifying county spending limit for nonprofit legal assistance; modifying county courthouse bonds debt limit; modifying county emergency jobs program levy limit; modifying the Hennepin county reserve and building maintenance levy limit; modifying the Hennepin county library levy limit; modifying the Three Rivers park district levy limit; modifying the Anoka county library debt limit; modifying the Anoka county library levy limit; modifying county interfund borrowing minimum size threshold; modifying continuation of nonconforming land uses exception; modifying regional railroad authority levy limit; modifying community corrections facilities rent limit; modifying home rule charter city issuance of capital notes; modifying statutory cities conditional sale contracts and contracts for deed purchases threshold; modifying statutory cities certificates of indebtedness threshold; modifying special service districts property subject to charges, split use property test determination; modifying the pedestrian mall improvements levy limit; modifying first class city hospital levy limit; modifying tourist camping grounds levy limit; modifying museum, gallery, or school of arts levy limit; modifying St. Cloud transit commission levy limit; modifying Duluth transit commission levy limit; modifying municipalities acceptance of gifts qualifying rules; modifying housing and redevelopment authorities levy limit; modifying housing and redevelopment authorities debt limit; modifying port authority mandatory city levy limit; modifying seaway port authority levy limit; modifying port authority discretionary city levy limit; modifying economic development authority city tax levy limit; modifying multicounty economic development levy limit; modifying first class city publicity levy limit; modifying hazardous property penalty limit; modifying contiguous towns and cities joint maintenance of cemetery market value; modifying taconite cities city improvement fund and taconite cities city improvement fund levy limit; modifying acceptance of provisions reference for cities with high concentrations of iron ore value; modifying metropolitan council debt limit; modifying school district debt limits for districts affected by airport detachments; modifying metropolitan airport commission (MAC) levy limit for general budget purposes; modifying MAC general obligation bonding additional levy limit; modifying metropolitan mosquito control commission levy limit; modifying metropolitan area fiscal disparities program definitions; modifying metropolitan area fiscal disparities program adjustment of values; modifying debt of defined municipalities; modifying capital improvement bonds, general net debt limit, first class cities net debt limit, and school districts net debt limit; modifying refunding bonds referendum exemption; modifying state board of investment maximum limit on municipal bond purchases; updating local government aid (LGA) city net tax capacity reference; modifying county and regional jails levy limit; modifying county and regional jails lease revenue bonding; defining estimated market value; specifying instructions to the revisor; repealing provisions relating to limited market value and certain definitions

ARTICLE 15 - DEPARTMENT POLICY AND TECHNICAL; INCOME AND FRANCHISE TAXES; ESTATE TAXES

Requiring recapture return filing; modifying regulated investment companies reporting requirements for paying municipal bond interest; requiring recapture informational return; providing for a recapture return due date; modifying recapture payment due date; modifying and clarifying estimated tax payments for C corporations and exempt entities; modifying withholding requirements on payments to out of state construction contractors

ARTICLE 16 - DEPARTMENT POLICY AND TECHNICAL: SALES AND USE TAXES; SPECIAL TAXES

Defining deed tax real property partition; eliminating sales and use tax accelerated remittance schedules for certain vendors; defining exemption certificate taken in good faith and clarifying seller relief from sales tax liability; modifying tobacco products wholesale sales price definition; modifying beer excise tax small brewer credit; expanding nonadmitted insurance tax entities; expanding retaliatory tax provisions for life insurance companies; removing the tax on purchasing groups purchasing insurance directly from a nonadmitted insurer; eliminating purchasing groups due date for biannual filing requirement; providing for purchasing groups due date for filing of annual returns; repealing the penalty and safe harbor provisions related to the early remittance schedules for sales tax

ARTICLE 17 - DEPARTMENT POLICY AND TECHNICAL: MINERALS TAXES; PROPERTY TAX

Updating split residential property parcel cross reference; clarifying taxes credited to state airports fund; modifying county assessors prohibited activities for nontax property appraisals; modifying and clarifying air flight property tax penalties authority; clarifying exempt property used by private entity for profit; removing net proceeds tax direct reduced ore property tax exemption; clarifying the definition of person for property taxes; modifying ownership changes for property in rural preserves program provisions; clarifying class 2 agricultural classifications; clarifying leased exempt property tax; modifying railroad and utility valuations administrative appeal process; modifying electrical cooperatives per capita tax rural area definition; modifying notice of delinquent property tax form content requirements; modifying the senior deferral program lien notices form approval and recording duties; defining nonferrous occupation tax, hydrometallurgical processes; clarifying net proceeds tax distribution; modifying public corporation listed powers and clarifying county assessors land exchange appraisal duties; repealing certain obsolete provisions

ARTICLE 18 - DEPARTMENT POLICY AND TECHNICAL: MISCELLANEOUS PROVISIONS

Making certain miscellaneous changes recommended by the department of revenue; clarifying lost or destroyed warrant duplicate and indemnity, void warrants; providing a single, uniform statement of the rule regarding when interest on penalties accrues; modifying petroleum tax definitions; clarifying the penalty for failure to pay petroleum taxes or fees; providing a single, uniform statement of the rule regarding when interest on penalties accrues for petroleum taxes, motor vehicle sales taxes, gambling taxes, cigarette and tobacco taxes, liquor taxes, insurance premium taxes, JOBZ tax incentives, and biotechnology and health sciences industry zone tax incentives
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