HF 677

CCR--HF0677 - 88th Legislature (2013 - 2014)

Posted on 05/19/2013 07:14 p.m.

1.1CONFERENCE COMMITTEE REPORT ON H. F. No. 677 1.2A bill for an act 1.3 relating to financing of state and local government; making changes to individual 1.4income, corporate franchise, property, sales and use, estate, mineral, liquor, 1.5tobacco, aggregate materials, local, and other taxes and tax-related provisions; 1.6restoring the school district current year aid payment shift percentage to 90; 1.7conforming to federal section 179 expensing allowances; imposing an income 1.8surcharge; allowing an up-front exemption for capital equipment; modifying 1.9the definition of income for the property tax refund; decreasing the threshold 1.10percentage for the homestead credit refund for homeowners and the property 1.11tax refund for renters; increasing the maximum refunds for renters; changing 1.12property tax aids and credits; imposing an insurance surcharge; modifying 1.13pension aids; providing pension funding; changing provisions of the Sustainable 1.14Forest Incentive Act; modifying definitions for property taxes; providing 1.15exemptions; creating joint entertainment facilities coordination; imposing a 1.16sports memorabilia gross receipts tax; changing tax rates on tobacco and liquor; 1.17providing reimbursement for certain property tax abatement; modifying the small 1.18business investment tax credit; expanding the definition of domestic corporation 1.19to include foreign corporations incorporated in or doing business in tax havens; 1.20making changes to additions and subtractions from federal taxable income; 1.21changing rates for individuals, estates, and trusts; providing for charitable 1.22contributions and veterans jobs tax credits; modifying estate tax exclusions for 1.23qualifying small business and farm property; imposing a gift tax; expanding 1.24the sales tax to include suite and box seat rentals; modifying the definition 1.25of sales and purchase; changing the tax rate and modifying provisions for the 1.26rental motor vehicle tax; modifying nexus provisions; providing for multiple 1.27points of use certificates; modifying exemptions; authorizing local sales taxes; 1.28authorizing economic development powers; providing authority, organization, 1.29powers, and duties for development of a Destination Medical Center; authorizing 1.30state infrastructure aid; imposing a tax on extraction and processing of fracturing 1.31sand; providing a taconite production tax grant for water supply improvements; 1.32authorizing taconite production tax bonds for grants to school districts; modifying 1.33and providing provisions for public finance; modifying the definition of market 1.34value for tax, debt, and other purposes; requiring labor peace agreements on 1.35certain qualifying projects; making conforming, policy, and technical changes to 1.36tax provisions; requiring studies and reports; appropriating money;amending 1.37Minnesota Statutes 2012, sections 16A.152, subdivision 2; 16A.46; 38.18; 1.3840A.15, subdivision 2; 69.011, subdivision 1; 69.021, subdivisions 7, 8, by 1.39adding a subdivision; 88.51, subdivision 3; 103B.102, subdivision 3; 103B.245, 1.40subdivision 3; 103B.251, subdivision 8; 103B.335; 103B.3369, subdivision 5; 1.41103B.635, subdivision 2; 103B.691, subdivision 2; 103C.501, subdivision 4; 1.42103D.905, subdivisions 2, 3, 8; 103F.405, subdivision 1; 116J.8737, subdivisions 1.431, 2, 8; 117.025, subdivision 7; 118A.04, subdivision 3; 118A.05, subdivision 2.15; 123A.455, subdivision 1; 123B.75, subdivision 5; 126C.48, subdivision 8; 2.2127A.45, subdivision 2; 127A.48, subdivision 1; 138.053; 144F.01, subdivision 2.34; 162.07, subdivisions 3, 4; 163.04, subdivision 3; 163.051; 163.06, subdivision 2.46; 165.10, subdivision 1; 168.012, subdivision 9, by adding a subdivision; 2.5216C.436, subdivision 7; 237.52, subdivision 3, by adding a subdivision; 2.6270.077; 270.41, subdivision 5; 270B.01, subdivision 8; 270B.12, subdivision 2.74; 270C.34, subdivision 1; 270C.38, subdivision 1; 270C.42, subdivision 2; 2.8270C.56, subdivision 1; 271.06, by adding a subdivision; 272.01, subdivision 2; 2.9272.02, subdivisions 39, 97, by adding subdivisions; 272.03, subdivision 9, by 2.10adding subdivisions; 273.032; 273.11, subdivision 1, by adding a subdivision; 2.11273.114, subdivision 6; 273.124, subdivisions 3a, 13; 273.13, subdivisions 2.1221b, 23, 25; 273.1398, subdivisions 3, 4; 273.19, subdivision 1; 273.372, 2.13subdivision 4; 273.39; 275.011, subdivision 1; 275.077, subdivision 2; 275.71, 2.14subdivision 4; 276.04, subdivision 2; 276A.01, subdivisions 10, 12, 13, 15; 2.15276A.06, subdivision 10; 279.01, subdivision 1, by adding a subdivision; 279.02; 2.16279.06, subdivision 1; 287.05, by adding a subdivision; 287.08; 287.20, by 2.17adding a subdivision; 287.23, subdivision 1; 287.385, subdivision 7; 289A.02, 2.18subdivision 7; 289A.08, subdivisions 1, 3, 7; 289A.10, subdivision 1, by adding 2.19a subdivision; 289A.12, subdivision 14, by adding a subdivision; 289A.18, by 2.20adding a subdivision; 289A.20, subdivisions 3, 4, by adding a subdivision; 2.21289A.26, subdivisions 3, 4, 7, 9; 289A.55, subdivision 9; 289A.60, subdivision 2.224; 290.01, subdivisions 5, 19, as amended, 19a, 19b, 19c, 19d, 31, as amended, 2.23by adding subdivisions; 290.06, subdivisions 2c, 2d, by adding subdivisions; 2.24290.067, subdivisions 1, 2a; 290.0671, subdivision 1; 290.0675, subdivision 1; 2.25290.0677, subdivision 2; 290.068, subdivisions 3, 6a; 290.0681, subdivisions 1, 2.263, 4, 5; 290.091, subdivision 2; 290.0921, subdivision 3; 290.0922, subdivision 1; 2.27290.17, subdivision 4; 290.21, subdivision 4; 290.9705, subdivision 1; 290A.03, 2.28subdivisions 3, 15, as amended; 290A.04, subdivisions 2, 2a, 4; 290B.04, 2.29subdivision 2; 290C.02, subdivision 6; 290C.05; 290C.07; 291.005, subdivision 2.301; 291.03, subdivisions 1, 8, 9, 10, 11, by adding a subdivision; 296A.01, 2.31subdivision 19, by adding a subdivision; 296A.22, subdivisions 1, 3; 297A.61, 2.32subdivisions 3, 4, by adding a subdivision; 297A.64, subdivisions 1, 2; 297A.66, 2.33by adding a subdivision; 297A.665; 297A.668, by adding a subdivision; 2.34297A.67, subdivision 7; 297A.68, subdivision 5; 297A.70, subdivisions 4, 8, by 2.35adding subdivisions; 297A.71, by adding subdivisions; 297A.75, subdivisions 1, 2.362, 3; 297A.815, subdivision 3; 297A.993, subdivisions 1, 2; 297B.11; 297E.021, 2.37subdivision 2; 297E.14, subdivision 7; 297F.01, subdivisions 3, 19, 23, by 2.38adding a subdivision; 297F.05, subdivisions 1, 3, 4, by adding a subdivision; 2.39297F.09, subdivision 9; 297F.18, subdivision 7; 297F.24, subdivision 1; 297F.25, 2.40subdivision 1; 297G.03, subdivision 1, by adding a subdivision; 297G.04; 2.41297G.09, subdivision 8; 297G.17, subdivision 7; 297I.05, subdivisions 7, 11, 12; 2.42297I.30, subdivisions 1, 2; 297I.80, subdivision 1; 298.01, subdivisions 3, 3b, 2.434; 298.018; 298.227, as amended; 298.24, subdivision 1; 298.28, subdivisions 2.444, 6, 10; 298.75, subdivision 2; 325D.32, subdivision 2; 353G.08, subdivision 2.452; 365.025, subdivision 4; 366.095, subdivision 1; 366.27; 368.01, subdivision 2.4623; 368.47; 370.01; 373.01, subdivisions 1, 3; 373.40, subdivisions 1, 2, 4; 2.47375.167, subdivision 1; 375.18, subdivision 3; 375.555; 383B.152; 383B.245; 2.48383B.73, subdivision 1; 383D.41, by adding a subdivision; 383E.20; 383E.23; 2.49385.31; 394.36, subdivision 1; 398A.04, subdivision 8; 401.05, subdivision 3; 2.50403.02, subdivision 21, by adding subdivisions; 403.06, subdivision 1a; 403.11, 2.51subdivision 1, by adding a subdivision; 410.32; 412.221, subdivision 2; 412.301; 2.52428A.02, subdivision 1; 430.102, subdivision 2; 447.10; 450.19; 450.25; 2.53458A.10; 458A.31, subdivision 1; 465.04; 469.033, subdivision 6; 469.034, 2.54subdivision 2; 469.053, subdivisions 4, 4a, 6; 469.071, subdivision 5; 469.107, 2.55subdivision 1; 469.169, by adding a subdivision; 469.176, subdivisions 4c, 4g, 2.566; 469.177, by adding a subdivision; 469.180, subdivision 2; 469.187; 469.190, 2.57subdivision 7, by adding a subdivision; 469.206; 469.319, subdivision 4; 469.340, 2.58subdivision 4; 471.24; 471.571, subdivisions 1, 2; 471.73; 473.325, subdivision 3.12; 473.39, by adding a subdivision; 473.629; 473.661, subdivision 3; 473.667, 3.2subdivision 9; 473.671; 473.711, subdivision 2a; 473F.02, subdivisions 12, 14, 3.315, 23; 473F.08, subdivision 10, by adding a subdivision; 474A.04, subdivision 3.41a; 474A.062; 474A.091, subdivision 3a; 475.521, subdivisions 1, 2, 4; 475.53, 3.5subdivisions 1, 3, 4; 475.58, subdivisions 2, 3b; 475.73, subdivision 1; 477A.011, 3.6subdivisions 20, 30, 32, 34, 42, by adding subdivisions; 477A.0124, subdivision 3.72; 477A.013, subdivisions 8, 9, by adding a subdivision; 477A.015; 477A.03, 3.8subdivisions 2a, 2b, by adding a subdivision; 641.23; 641.24; 645.44, by adding 3.9a subdivision; Laws 1971, chapter 773, section 1, subdivision 2, as amended; 3.10Laws 1988, chapter 645, section 3, as amended; Laws 1993, chapter 375, article 3.119, section 46, subdivisions 2, as amended, 5, as amended; Laws 1998, chapter 3.12389, article 8, section 43, subdivisions 1, 3, as amended, 5, as amended; Laws 3.131999, chapter 243, article 6, section 11; Laws 2002, chapter 377, article 3, section 3.1425, as amended; Laws 2005, First Special Session chapter 3, article 5, section 3.1537, subdivisions 2, 4; Laws 2008, chapter 366, article 5, sections 26; 33; 34, as 3.16amended; article 7, section 19, subdivision 3, as amended; Laws 2010, chapter 3.17216, section 55; Laws 2010, chapter 389, article 1, section 12; article 5, section 6, 3.18subdivisions 4, 6; Laws 2010, First Special Session chapter 1, article 13, section 4, 3.19subdivision 1, as amended; proposing coding for new law in Minnesota Statutes, 3.20chapters 116C; 287; 290; 290A; 292; 295; 297I; 403; 435; 469; proposing coding 3.21for new law as Minnesota Statutes, chapter 297J; repealing Minnesota Statutes 3.222012, sections 16A.725; 256.9658; 272.69; 273.11, subdivisions 1a, 22; 276A.01, 3.23subdivision 11; 289A.60, subdivision 31; 290.01, subdivision 6b; 290.06, 3.24subdivision 22a; 290.0672; 290.0921, subdivision 7; 383A.80, subdivision 4; 3.25383B.80, subdivision 4; 428A.101; 428A.21; 473F.02, subdivision 13; 477A.011, 3.26subdivisions 2a, 19, 21, 29, 31, 32, 33, 36, 39, 40, 41, 42; 477A.013, subdivisions 3.2711, 12; 477A.0133; 477A.0134; Laws 2006, chapter 259, article 11, section 3, as 3.28amended; Laws 2009, chapter 88, article 4, section 23, as amended. 3.29May 19, 2013 3.30The Honorable Paul Thissen 3.31Speaker of the House of Representatives 3.32The Honorable Sandra L. Pappas 3.33President of the Senate 3.34We, the undersigned conferees for H. F. No. 677 report that we have agreed upon the 3.35items in dispute and recommend as follows: 3.36That the Senate recede from its amendments and that H. F. No. 677 be further 3.37amended as follows: 3.38Delete everything after the enacting clause and insert: 3.39"ARTICLE 1 3.40HOMESTEAD CREDIT REFUND AND RENTER PROPERTY TAX REFUND 3.41    Section 1. Minnesota Statutes 2012, section 290A.03, subdivision 3, is amended to read: 3.42    Subd. 3. Income. (1) "Income" means the sum of the following: 3.43    (a) federal adjusted gross income as defined in the Internal Revenue Code; and 3.44    (b) the sum of the following amounts to the extent not included in clause (a): 3.45    (i) all nontaxable income; 4.1    (ii) the amount of a passive activity loss that is not disallowed as a result of section 4.2469, paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity 4.3loss carryover allowed under section 469(b) of the Internal Revenue Code; 4.4    (iii) an amount equal to the total of any discharge of qualified farm indebtedness 4.5of a solvent individual excluded from gross income under section 108(g) of the Internal 4.6Revenue Code; 4.7    (iv) cash public assistance and relief; 4.8    (v) any pension or annuity (including railroad retirement benefits, all payments 4.9received under the federal Social Security Act, Supplemental Security Income, and 4.10veterans benefits), which was not exclusively funded by the claimant or spouse, or which 4.11was funded exclusively by the claimant or spouse and which funding payments were 4.12excluded from federal adjusted gross income in the years when the payments were made; 4.13    (vi) interest received from the federal or a state government or any instrumentality 4.14or political subdivision thereof; 4.15    (vii) workers' compensation; 4.16    (viii) nontaxable strike benefits; 4.17    (ix) the gross amounts of payments received in the nature of disability income or 4.18sick pay as a result of accident, sickness, or other disability, whether funded through 4.19insurance or otherwise; 4.20    (x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of 4.211986, as amended through December 31, 1995; 4.22    (xi) contributions made by the claimant to an individual retirement account, 4.23including a qualified voluntary employee contribution; simplified employee pension plan; 4.24self-employed retirement plan; cash or deferred arrangement plan under section 401(k) 4.25of the Internal Revenue Code; or deferred compensation plan under section 457 of the 4.26Internal Revenue Code new text begin , to the extent the sum of amounts exceeds the retirement base new text end 4.27 new text begin amount for the claimant and spouse new text end ; 4.28    (xii) new text begin to the extent not included in federal adjusted gross income, distributions received new text end 4.29 new text begin by the claimant or spouse from a traditional or Roth style retirement account or plan; new text end 4.30     new text begin (xiii) new text end nontaxable scholarship or fellowship grants; 4.31    (xiii) new text begin (xiv) new text end the amount of deduction allowed under section 199 of the Internal 4.32Revenue Code; 4.33    (xiv) new text begin (xv) new text end the amount of deduction allowed under section 220 or 223 of the Internal 4.34Revenue Code; 5.1    (xv) new text begin (xvi) new text end the amount of new text begin deducted for new text end tuition expenses required to be added to 5.2income under section 290.01, subdivision 19a, clause (12); new text begin under section 222 of the new text end 5.3 new text begin Internal Revenue Code; and new text end 5.4    (xvi) new text begin (xvii) new text end the amount deducted for certain expenses of elementary and secondary 5.5school teachers under section 62(a)(2)(D) of the Internal Revenue Code; and new text begin . new text end 5.6    (xvii) unemployment compensation. 5.7    In the case of an individual who files an income tax return on a fiscal year basis, the 5.8term "federal adjusted gross income" shall mean federal adjusted gross income reflected 5.9in the fiscal year ending in the calendar year. Federal adjusted gross income shall not be 5.10reduced by the amount of a net operating loss carryback or carryforward or a capital loss 5.11carryback or carryforward allowed for the year. 5.12    (2) "Income" does not include: 5.13    (a) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102; 5.14    (b) amounts of any pension or annuity which was exclusively funded by the claimant 5.15or spouse and which funding payments were not excluded from federal adjusted gross 5.16income in the years when the payments were made; 5.17    (c) new text begin to the extent included in federal adjusted gross income, amounts contributed by new text end 5.18 new text begin the claimant or spouse to a traditional or Roth style retirement account or plan, but not new text end 5.19 new text begin to exceed the retirement base amount reduced by the amount of contributions excluded new text end 5.20 new text begin from federal adjusted gross income, but not less than zero; new text end 5.21     new text begin (d) new text end surplus food or other relief in kind supplied by a governmental agency; 5.22    (d) new text begin (e) new text end relief granted under this chapter; 5.23    (e) new text begin (f) new text end child support payments received under a temporary or final decree of 5.24dissolution or legal separation; or 5.25    (f) new text begin (g) new text end restitution payments received by eligible individuals and excludable interest 5.26as defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 5.272001, Public Law 107-16. 5.28    (3) The sum of the following amounts may be subtracted from income: 5.29    (a) for the claimant's first dependent, the exemption amount multiplied by 1.4; 5.30    (b) for the claimant's second dependent, the exemption amount multiplied by 1.3; 5.31    (c) for the claimant's third dependent, the exemption amount multiplied by 1.2; 5.32    (d) for the claimant's fourth dependent, the exemption amount multiplied by 1.1; 5.33    (e) for the claimant's fifth dependent, the exemption amount; and 5.34    (f) if the claimant or claimant's spouse was disabled or attained the age of 65 5.35on or before December 31 of the year for which the taxes were levied or rent paid, the 5.36exemption amount. 6.1    For purposes of this subdivision, the "exemption amount" means the exemption 6.2amount under section 151(d) of the Internal Revenue Code for the taxable year for which 6.3the income is reported new text begin ; "retirement base amount" means the deductible amount for the new text end 6.4 new text begin taxable year for the claimant and spouse under section 219(b)(5)(A) of the Internal new text end 6.5 new text begin Revenue Code, adjusted for inflation as provided in section 219(b)(5)(D) of the Internal new text end 6.6 new text begin Revenue Code, without regard to whether the claimant or spouse claimed a deduction; new text end 6.7 new text begin and "traditional or Roth style retirement account or plan" means retirement plans under new text end 6.8 new text begin sections 401, 403, 408, 408A, and 457 of the Internal Revenue Code new text end . 6.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with refunds based on new text end 6.10 new text begin property taxes payable in 2014 and rent paid in 2013. new text end 6.11    Sec. 2. Minnesota Statutes 2012, section 290A.04, subdivision 2, is amended to read: 6.12    Subd. 2. Homeowners new text begin ; homestead credit refund new text end . A claimant whose property 6.13taxes payable are in excess of the percentage of the household income stated below shall 6.14pay an amount equal to the percent of income shown for the appropriate household 6.15income level along with the percent to be paid by the claimant of the remaining amount 6.16of property taxes payable. The state refund equals the amount of property taxes payable 6.17that remain, up to the state refund amount shown below. 6.18 6.19 6.20 Household Income Percent of Income Percent Paid by Claimant Maximum State Refund 6.21 $0 to 1,549 1.0 percent 15 percent $ 2,460 6.22 1,550 to 3,089 1.1 percent 15 percent $ 2,460 6.23 3,090 to 4,669 1.2 percent 15 percent $ 2,460 6.24 4,670 to 6,229 1.3 percent 20 percent $ 2,460 6.25 6,230 to 7,769 1.4 percent 20 percent $ 2,460 6.26 7,770 to 10,879 1.5 percent 20 percent $ 2,460 6.27 10,880 to 12,429 1.6 percent 20 percent $ 2,460 6.28 12,430 to 13,989 1.7 percent 20 percent $ 2,460 6.29 13,990 to 15,539 1.8 percent 20 percent $ 2,460 6.30 15,540 to 17,079 1.9 percent 25 percent $ 2,460 6.31 17,080 to 18,659 2.0 percent 25 percent $ 2,460 6.32 18,660 to 21,759 2.1 percent 25 percent $ 2,460 6.33 21,760 to 23,309 2.2 percent 30 percent $ 2,460 6.34 23,310 to 24,859 2.3 percent 30 percent $ 2,460 6.35 24,860 to 26,419 2.4 percent 30 percent $ 2,460 6.36 26,420 to 32,629 2.5 percent 35 percent $ 2,460 6.37 32,630 to 37,279 2.6 percent 35 percent $ 2,460 6.38 37,280 to 46,609 2.7 percent 35 percent $ 2,000 6.39 46,610 to 54,369 2.8 percent 35 percent $ 2,000 7.1 54,370 to 62,139 2.8 percent 40 percent $ 1,750 7.2 62,140 to 69,909 3.0 percent 40 percent $ 1,440 7.3 69,910 to 77,679 3.0 percent 40 percent $ 1,290 7.4 77,680 to 85,449 3.0 percent 40 percent $ 1,130 7.5 85,450 to 90,119 3.5 percent 45 percent $ 960 7.6 90,120 to 93,239 3.5 percent 45 percent $ 790 7.7 93,240 to 97,009 3.5 percent 50 percent $ 650 7.8 97,010 to 100,779 3.5 percent 50 percent $ 480 7.9 7.10 7.11 new text begin Household Income new text end new text begin Percent of Income new text end new text begin Percent Paid by new text end new text begin Claimant new text end new text begin Maximum new text end new text begin State new text end new text begin Refund new text end 7.12 new text begin $0 to 1,619 new text end new text begin 1.0 percent new text end new text begin 15 percent new text end new text begin $ new text end new text begin 2,580 new text end 7.13 new text begin 1,620 to 3,229 new text end new text begin 1.1 percent new text end new text begin 15 percent new text end new text begin $ new text end new text begin 2,580 new text end 7.14 new text begin 3,230 to 4,889 new text end new text begin 1.2 percent new text end new text begin 15 percent new text end new text begin $ new text end new text begin 2,580 new text end 7.15 new text begin 4,890 to 6,519 new text end new text begin 1.3 percent new text end new text begin 20 percent new text end new text begin $ new text end new text begin 2,580 new text end 7.16 new text begin 6,520 to 8,129 new text end new text begin 1.4 percent new text end new text begin 20 percent new text end new text begin $ new text end new text begin 2,580 new text end 7.17 new text begin 8,130 to 11,389 new text end new text begin 1.5 percent new text end new text begin 20 percent new text end new text begin $ new text end new text begin 2,580 new text end 7.18 new text begin 11,390 to 13,009 new text end new text begin 1.6 percent new text end new text begin 20 percent new text end new text begin $ new text end new text begin 2,580 new text end 7.19 new text begin 13,010 to 14,649 new text end new text begin 1.7 percent new text end new text begin 20 percent new text end new text begin $ new text end new text begin 2,580 new text end 7.20 new text begin 14,650 to 16,269 new text end new text begin 1.8 percent new text end new text begin 20 percent new text end new text begin $ new text end new text begin 2,580 new text end 7.21 new text begin 16,270 to 17,879 new text end new text begin 1.9 percent new text end new text begin 25 percent new text end new text begin $ new text end new text begin 2,580 new text end 7.22 new text begin 17,880 to 22,779 new text end new text begin 2.0 percent new text end new text begin 25 percent new text end new text begin $ new text end new text begin 2,580 new text end 7.23 new text begin 22,780 to 24,399 new text end new text begin 2.0 percent new text end new text begin 30 percent new text end new text begin $ new text end new text begin 2,580 new text end 7.24 new text begin 24,400 to 27,659 new text end new text begin 2.0 percent new text end new text begin 30 percent new text end new text begin $ new text end new text begin 2,580 new text end 7.25 new text begin 27,660 to 39,029 new text end new text begin 2.0 percent new text end new text begin 35 percent new text end new text begin $ new text end new text begin 2,580 new text end 7.26 new text begin 39,030 to 56,919 new text end new text begin 2.0 percent new text end new text begin 35 percent new text end new text begin $ new text end new text begin 2,090 new text end 7.27 new text begin 56,920 to 65,049 new text end new text begin 2.0 percent new text end new text begin 40 percent new text end new text begin $ new text end new text begin 1,830 new text end 7.28 new text begin 65,050 to 73,189 new text end new text begin 2.1 percent new text end new text begin 40 percent new text end new text begin $ new text end new text begin 1,510 new text end 7.29 new text begin 73,190 to 81,319 new text end new text begin 2.2 percent new text end new text begin 40 percent new text end new text begin $ new text end new text begin 1,350 new text end 7.30 new text begin 81,320 to 89,449 new text end new text begin 2.3 percent new text end new text begin 40 percent new text end new text begin $ new text end new text begin 1,180 new text end 7.31 new text begin 89,450 to 94,339 new text end new text begin 2.4 percent new text end new text begin 45 percent new text end new text begin $ new text end new text begin 1,000 new text end 7.32 new text begin 94,340 to 97,609 new text end new text begin 2.5 percent new text end new text begin 45 percent new text end new text begin $ new text end new text begin 830 new text end 7.33 new text begin 97,610 to 101,559 new text end new text begin 2.5 percent new text end new text begin 50 percent new text end new text begin $ new text end new text begin 680 new text end 7.34 new text begin 101,560 to 105,499 new text end new text begin 2.5 percent new text end new text begin 50 percent new text end new text begin $ new text end new text begin 500 new text end 7.35    The payment made to a claimant shall be the amount of the state refund calculated 7.36under this subdivision. No payment is allowed if the claimant's household income is 7.37$100,780 new text begin $105,500 new text end or more. 7.38 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for refund claims based on taxes new text end 7.39 new text begin payable in 2014 and thereafter. new text end 7.40    Sec. 3. Minnesota Statutes 2012, section 290A.04, subdivision 2a, is amended to read: 8.1    Subd. 2a. Renters. A claimant whose rent constituting property taxes exceeds the 8.2percentage of the household income stated below must pay an amount equal to the percent 8.3of income shown for the appropriate household income level along with the percent to 8.4be paid by the claimant of the remaining amount of rent constituting property taxes. The 8.5state refund equals the amount of rent constituting property taxes that remain, up to the 8.6maximum state refund amount shown below. 8.7 8.8 8.9 Household Income Percent of Income Percent Paid by Claimant Maximum State Refund 8.10 $0 to 3,589 1.0 percent 5 percent $ 1,190 8.11 3,590 to 4,779 1.0 percent 10 percent $ 1,190 8.12 4,780 to 5,969 1.1 percent 10 percent $ 1,190 8.13 5,970 to 8,369 1.2 percent 10 percent $ 1,190 8.14 8,370 to 10,759 1.3 percent 15 percent $ 1,190 8.15 10,760 to 11,949 1.4 percent 15 percent $ 1,190 8.16 11,950 to 13,139 1.4 percent 20 percent $ 1,190 8.17 13,140 to 15,539 1.5 percent 20 percent $ 1,190 8.18 15,540 to 16,729 1.6 percent 20 percent $ 1,190 8.19 16,730 to 17,919 1.7 percent 25 percent $ 1,190 8.20 17,920 to 20,319 1.8 percent 25 percent $ 1,190 8.21 20,320 to 21,509 1.9 percent 30 percent $ 1,190 8.22 21,510 to 22,699 2.0 percent 30 percent $ 1,190 8.23 22,700 to 23,899 2.2 percent 30 percent $ 1,190 8.24 23,900 to 25,089 2.4 percent 30 percent $ 1,190 8.25 25,090 to 26,289 2.6 percent 35 percent $ 1,190 8.26 26,290 to 27,489 2.7 percent 35 percent $ 1,190 8.27 27,490 to 28,679 2.8 percent 35 percent $ 1,190 8.28 28,680 to 29,869 2.9 percent 40 percent $ 1,190 8.29 29,870 to 31,079 3.0 percent 40 percent $ 1,190 8.30 31,080 to 32,269 3.1 percent 40 percent $ 1,190 8.31 32,270 to 33,459 3.2 percent 40 percent $ 1,190 8.32 33,460 to 34,649 3.3 percent 45 percent $ 1,080 8.33 34,650 to 35,849 3.4 percent 45 percent $ 960 8.34 35,850 to 37,049 3.5 percent 45 percent $ 830 8.35 37,050 to 38,239 3.5 percent 50 percent $ 720 8.36 38,240 to 39,439 3.5 percent 50 percent $ 600 8.37 38,440 to 40,629 3.5 percent 50 percent $ 360 8.38 40,630 to 41,819 3.5 percent 50 percent $ 120 8.39 new text begin $0 to 4,909 new text end new text begin 1.0 percent new text end new text begin 5 percent new text end new text begin $ new text end new text begin 2,000 new text end 8.40 new text begin 4,910 to 6,529 new text end new text begin 1.0 percent new text end new text begin 10 percent new text end new text begin $ new text end new text begin 2,000 new text end 8.41 new text begin 6,530 to 8,159 new text end new text begin 1.1 percent new text end new text begin 10 percent new text end new text begin $ new text end new text begin 1,950 new text end 8.42 new text begin 8,160 to 11,439 new text end new text begin 1.2 percent new text end new text begin 10 percent new text end new text begin $ new text end new text begin 1,900 new text end 9.1 new text begin 11,440 to 14,709 new text end new text begin 1.3 percent new text end new text begin 15 percent new text end new text begin $ new text end new text begin 1,850 new text end 9.2 new text begin 14,710 to 16,339 new text end new text begin 1.4 percent new text end new text begin 15 percent new text end new text begin $ new text end new text begin 1,800 new text end 9.3 new text begin 16,340 to 17,959 new text end new text begin 1.4 percent new text end new text begin 20 percent new text end new text begin $ new text end new text begin 1,750 new text end 9.4 new text begin 17,960 to 21,239 new text end new text begin 1.5 percent new text end new text begin 20 percent new text end new text begin $ new text end new text begin 1,700 new text end 9.5 new text begin 21,240 to 22,869 new text end new text begin 1.6 percent new text end new text begin 20 percent new text end new text begin $ new text end new text begin 1,650 new text end 9.6 new text begin 22,870 to 24,499 new text end new text begin 1.7 percent new text end new text begin 25 percent new text end new text begin $ new text end new text begin 1,650 new text end 9.7 new text begin 24,500 to 27,779 new text end new text begin 1.8 percent new text end new text begin 25 percent new text end new text begin $ new text end new text begin 1,650 new text end 9.8 new text begin 27,780 to 29,399 new text end new text begin 1.9 percent new text end new text begin 30 percent new text end new text begin $ new text end new text begin 1,650 new text end 9.9 new text begin 29,400 to 34,299 new text end new text begin 2.0 percent new text end new text begin 30 percent new text end new text begin $ new text end new text begin 1,650 new text end 9.10 new text begin 34,300 to 39,199 new text end new text begin 2.0 percent new text end new text begin 35 percent new text end new text begin $ new text end new text begin 1,650 new text end 9.11 new text begin 39,200 to 45,739 new text end new text begin 2.0 percent new text end new text begin 40 percent new text end new text begin $ new text end new text begin 1,650 new text end 9.12 new text begin 45,740 to 47,369 new text end new text begin 2.0 percent new text end new text begin 45 percent new text end new text begin $ new text end new text begin 1,500 new text end 9.13 new text begin 47,370 to 49,009 new text end new text begin 2.0 percent new text end new text begin 45 percent new text end new text begin $ new text end new text begin 1,350 new text end 9.14 new text begin 49,010 to 50,649 new text end new text begin 2.0 percent new text end new text begin 45 percent new text end new text begin $ new text end new text begin 1,150 new text end 9.15 new text begin 50,650 to 52,269 new text end new text begin 2.0 percent new text end new text begin 50 percent new text end new text begin $ new text end new text begin 1,000 new text end 9.16 new text begin 52,270 to 53,909 new text end new text begin 2.0 percent new text end new text begin 50 percent new text end new text begin $ new text end new text begin 900 new text end 9.17 new text begin 53,910 to 55,539 new text end new text begin 2.0 percent new text end new text begin 50 percent new text end new text begin $ new text end new text begin 500 new text end 9.18 new text begin 55,540 to 57,169 new text end new text begin 2.0 percent new text end new text begin 50 percent new text end new text begin $ new text end new text begin 200 new text end 9.19    The payment made to a claimant is the amount of the state refund calculated under 9.20this subdivision. No payment is allowed if the claimant's household income is $41,820 9.21 new text begin $57,170 new text end or more. 9.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for claims based on rent paid in new text end 9.23 new text begin 2013 and following years. new text end 9.24    Sec. 4. Minnesota Statutes 2012, section 290A.04, subdivision 4, is amended to read: 9.25    Subd. 4. Inflation adjustment. (a) Beginning for property tax refunds payable in 9.26calendar year 2002, the commissioner shall annually adjust the dollar amounts of the 9.27income thresholds and the maximum refunds under subdivisions 2 and 2a for inflation. 9.28The commissioner shall make the inflation adjustments in accordance with section 1(f) of 9.29the Internal Revenue Code, except that for purposes of this subdivision the percentage 9.30increase shall be determined as provided in this subdivision. 9.31    (b) In adjusting the dollar amounts of the income thresholds and the maximum 9.32refunds under subdivision 2 for inflation, the percentage increase shall be determined 9.33from the year ending on June 30, 2011 new text begin 2013 new text end , to the year ending on June 30 of the year 9.34preceding that in which the refund is payable. 9.35    (c) In adjusting the dollar amounts of the income thresholds and the maximum 9.36refunds under subdivision 2a for inflation, the percentage increase shall be determined 10.1from the year ending on June 30, 2000 new text begin 2013 new text end , to the year ending on June 30 of the year 10.2preceding that in which the refund is payable. 10.3    (d) The commissioner shall use the appropriate percentage increase to annually 10.4adjust the income thresholds and maximum refunds under subdivisions 2 and 2a for 10.5inflation without regard to whether or not the income tax brackets are adjusted for inflation 10.6in that year. The commissioner shall round the thresholds and the maximum amounts, 10.7as adjusted to the nearest $10 amount. If the amount ends in $5, the commissioner shall 10.8round it up to the next $10 amount. 10.9    (e) The commissioner shall annually announce the adjusted refund schedule at the 10.10same time provided under section 290.06. The determination of the commissioner under 10.11this subdivision is not a rule under the Administrative Procedure Act. 10.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for refund claims based on taxes new text end 10.13 new text begin payable in 2014 and rent paid in 2013 and following years. new text end 10.14    Sec. 5. new text begin [290A.28] NOTIFICATION OF POTENTIAL ELIGIBILITY. new text end 10.15     new text begin Subdivision 1. new text end new text begin Notification of eligibility. new text end new text begin (a) By September 1, 2014, the new text end 10.16 new text begin commissioner shall notify, in writing or electronically, individual homeowners whom the new text end 10.17 new text begin commissioner determines may be eligible for a homestead credit refund under this chapter new text end 10.18 new text begin for that property taxes payable year as provided in this section. In determining whether new text end 10.19 new text begin to notify a homeowner, the commissioner shall consider the property tax information new text end 10.20 new text begin available to the commissioner under paragraph (b) for the homeowner and must estimate new text end 10.21 new text begin the homeowner's household income using the most recent income information available to new text end 10.22 new text begin the commissioner from filing under this chapter for the prior year, under chapter 290 for new text end 10.23 new text begin the current or prior year, and any other income information available to the commissioner. new text end 10.24 new text begin For each homeowner, the commissioner must estimate the homestead credit refund new text end 10.25 new text begin amount under the schedule in section 290A.04, subdivision 2, using the homeowner's new text end 10.26 new text begin property tax amount and estimated household income. If the estimated homestead credit new text end 10.27 new text begin refund is at least $1,000, the commissioner must notify the homeowner of potential new text end 10.28 new text begin eligibility for the homestead credit refund. The notification must include information new text end 10.29 new text begin on how to file for the homestead credit refund. The notification requirement under this new text end 10.30 new text begin section does not apply to a homeowner who has already filed for the homestead credit new text end 10.31 new text begin refund for the current or prior year. new text end 10.32     new text begin (b) By May 15, 2014, each county auditor shall transmit to the commissioner new text end 10.33 new text begin of revenue the following information for each property classified as a residential or new text end 10.34 new text begin agricultural homestead under section 273.13, subdivision 22 or 23: new text end 10.35     new text begin (1) the property taxes payable; new text end 11.1     new text begin (2) the name and address of the owner; new text end 11.2     new text begin (3) the Social Security number or numbers of the owners; and new text end 11.3     new text begin (4) any other information the commissioner deems necessary or useful to carry new text end 11.4 new text begin out the provisions of this section. new text end 11.5 new text begin The information must be provided in the form and manner prescribed by the commissioner. new text end 11.6     new text begin Subd. 2. new text end new text begin Reports. new text end new text begin (a) By March 15, 2015, the commissioner must provide a written new text end 11.7 new text begin report to the chairs and ranking minority members of the legislative committees with new text end 11.8 new text begin jurisdiction over taxes, in compliance with sections 3.195 and 3.197. The report must new text end 11.9 new text begin provide information on the number and dollar amount of homeowner property tax refund new text end 11.10 new text begin claims based on taxes payable in 2014, including: new text end 11.11     new text begin (1) the number and dollar amount of claims projected for homestead credit refunds new text end 11.12 new text begin based on taxes payable in 2014 prior to enactment of the notification requirement in new text end 11.13 new text begin this section; new text end 11.14     new text begin (2) the number of notifications issued as provided in this section, including the new text end 11.15 new text begin number issued by county; new text end 11.16     new text begin (3) preliminary information on the number and dollar amount of claims for new text end 11.17 new text begin homestead credit refunds based on taxes payable in 2014; and new text end 11.18     new text begin (4) a description of any outreach efforts undertaken by the commissioner for new text end 11.19 new text begin homestead credit refunds based on taxes payable in 2014, in addition to the notification new text end 11.20 new text begin required in this section. new text end 11.21     new text begin (b) By February 1, 2016, the commissioner must provide a written report to the chairs new text end 11.22 new text begin and ranking minority members of the legislative committees with jurisdiction over taxes, new text end 11.23 new text begin in compliance with sections 3.195 and 3.197. The report must include the information new text end 11.24 new text begin required in paragraph (a) and must also include final information on the number and dollar new text end 11.25 new text begin amount of claims for homestead credit refunds based on taxes payable in 2014. new text end 11.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for refund claims based on property new text end 11.27 new text begin taxes payable in 2014. new text end 11.28ARTICLE 2 11.29PROPERTY TAX AIDS AND CREDITS 11.30    Section 1. Minnesota Statutes 2012, section 273.1398, subdivision 4, is amended to read: 11.31    Subd. 4. Disparity reduction credit. (a) Beginning with taxes payable in 1989, 11.32class 4a and class 3a property qualifies for a disparity reduction credit if: (1) the property 11.33is located in a border city that has an enterprise zone, as defined in section 469.166; (2) 11.34the property is located in a city with a population greater than 2,500 and less than 35,000 11.35according to the 1980 decennial census; (3) the city is adjacent to a city in another state or 12.1immediately adjacent to a city adjacent to a city in another state; and (4) the adjacent city 12.2in the other state has a population of greater than 5,000 and less than 75,000 according to 12.3the 1980 decennial census. 12.4    (b) The credit is an amount sufficient to reduce (i) the taxes levied on class 4a 12.5property to 2.3 new text begin 1.9 new text end percent of the property's market value and (ii) the tax on class 3a 12.6property to 2.3 new text begin 1.9 new text end percent of market value. 12.7    (c) The county auditor shall annually certify the costs of the credits to the 12.8Department of Revenue. The department shall reimburse local governments for the 12.9property taxes forgone as the result of the credits in proportion to their total levies. 12.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with taxes payable in 2014. new text end 12.11    Sec. 2. Minnesota Statutes 2012, section 290C.02, subdivision 6, is amended to read: 12.12    Subd. 6. Forest land. "Forest land" means land containing a minimum of 20 12.13contiguous acres for which the owner has implemented a forest management plan that was 12.14prepared or updated within the past ten years by an approved plan writer. For purposes of 12.15this subdivision, acres are considered to be contiguous even if they are separated by a road, 12.16waterway, railroad track, or other similar intervening property. At least 50 percent of the 12.17contiguous acreage must meet the definition of forest land in section 88.01, subdivision 12.187 . For the purposes of sections 290C.01 to 290C.11, forest land does not include (i) 12.19land used for residential or agricultural purposes, (ii) land enrolled in the reinvest in 12.20Minnesota program, a state or federal conservation reserve or easement reserve program 12.21under sections 103F.501 to 103F.531, the Minnesota agricultural property tax law under 12.22section 273.111, or land subject to agricultural land preservation controls or restrictions 12.23as defined in section 40A.02 or under the Metropolitan Agricultural Preserves Act under 12.24chapter 473H, or (iii) new text begin land exceeding 60,000 acres that is subject to a single conservation new text end 12.25 new text begin easement funded under section 97A.056 or a comparable permanent easement conveyed new text end 12.26 new text begin to a governmental or nonprofit entity; (iv) any land that becomes subject to a conservation new text end 12.27 new text begin easement funded under section 97A.056 or a comparable permanent easement conveyed new text end 12.28 new text begin to a governmental or nonprofit entity after May 30, 2013; or (v) new text end land improved with a 12.29structure, pavement, sewer, campsite, or any road, other than a township road, used for 12.30purposes not prescribed in the forest management plan. 12.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for certifications and applications new text end 12.32 new text begin due in 2013 and thereafter. new text end 12.33    Sec. 3. Minnesota Statutes 2012, section 290C.03, is amended to read: 13.1290C.03 ELIGIBILITY REQUIREMENTS. 13.2(a) Land may be enrolled in the sustainable forest incentive program under this 13.3chapter if all of the following conditions are met: 13.4(1) the land consists of at least 20 contiguous acres and at least 50 percent of the 13.5land must meet the definition of forest land in section 88.01, subdivision 7, during the 13.6enrollment; 13.7(2) a forest management plan for the land must be prepared by an approved plan 13.8writer and implemented during the period in which the land is enrolled; 13.9(3) timber harvesting and forest management guidelines must be used in conjunction 13.10with any timber harvesting or forest management activities conducted on the land during 13.11the period in which the land is enrolled; 13.12(4) the land must be enrolled for a minimum of eight years; 13.13(5) there are no delinquent property taxes on the land; and 13.14(6) claimants enrolling more than 1,920 acres in the sustainable forest incentive 13.15program must allow year-round, nonmotorized access to fish and wildlife resources new text begin and new text end 13.16 new text begin motorized access on established and maintained roads and trails, unless the road or trail is new text end 13.17 new text begin temporarily closed for safety, natural resource, or road damage reasons new text end on enrolled land 13.18except within one-fourth mile of a permanent dwelling or during periods of high fire 13.19hazard as determined by the commissioner of natural resources. 13.20(b) Claimants required to allow access under paragraph (a), clause (6), do not by 13.21that action: 13.22(1) extend any assurance that the land is safe for any purpose; 13.23(2) confer upon the person the legal status of an invitee or licensee to whom a duty 13.24of care is owed; or 13.25(3) assume responsibility for or incur liability for any injury to the person or property 13.26caused by an act or omission of the person. 13.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for calculations made in 2013 and new text end 13.28 new text begin thereafter. new text end 13.29    Sec. 4. Minnesota Statutes 2012, section 290C.055, is amended to read: 13.30290C.055 LENGTH OF COVENANT. 13.31 new text begin (a) new text end The covenant remains in effect for a minimum of eight years. If land is removed 13.32from the program before it has been enrolled for four years, the covenant remains in 13.33effect for eight years from the date recorded. 14.1 new text begin (b) new text end If land that has been enrolled for four years or more is removed from the program 14.2for any reason, there is a waiting period before the covenant terminates. The covenant 14.3terminates on January 1 of the fifth calendar year that begins after the date that: 14.4(1) the commissioner receives notification from the claimant that the claimant wishes 14.5to remove the land from the program under section 290C.10; or 14.6(2) the date that the land is removed from the program under section 290C.11. 14.7 new text begin (c) new text end Notwithstanding the other provisions of this section, the covenant is terminated new text begin : new text end 14.8 new text begin (1) new text end at the same time that the land is removed from the program due to acquisition of 14.9title or possession for a public purpose under section 290C.10 new text begin ; or new text end 14.10 new text begin (2) at the request of the claimant after a reduction in payments due to changes in the new text end 14.11 new text begin payment formula under section 290C.07 new text end . 14.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for calculations made in 2013 and new text end 14.13 new text begin thereafter. new text end 14.14    Sec. 5. Minnesota Statutes 2012, section 290C.07, is amended to read: 14.15290C.07 CALCULATION OF INCENTIVE PAYMENT. 14.16    (a) An approved claimant under the sustainable forest incentive program is eligible 14.17to receive an annual payment. The payment shall equal $7 per acre for each acre enrolled 14.18in the sustainable forest incentive program. 14.19(b) The annual payment for each Social Security number or state or federal business 14.20tax identification number must not exceed $100,000. 14.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for calculations made in 2013 and new text end 14.22 new text begin thereafter. new text end 14.23    Sec. 6. new text begin [423A.022] POLICE AND FIREFIGHTER RETIREMENT new text end 14.24 new text begin SUPPLEMENTAL STATE AID. new text end 14.25     new text begin Subdivision 1. new text end new text begin Supplemental state aid. new text end new text begin Annually, the commissioner of revenue new text end 14.26 new text begin shall allocate police and firefighter retirement supplemental state aid appropriated under new text end 14.27 new text begin subdivision 6 as provided in subdivision 2 and paid as provided in subdivision 4. new text end 14.28     new text begin Subd. 2. new text end new text begin Allocation. new text end new text begin Of the total amount appropriated as supplemental state aid: new text end 14.29     new text begin (1) 58.065 percent must be paid to the executive director of the Public Employees new text end 14.30 new text begin Retirement Association for deposit in the public employees police and fire retirement fund new text end 14.31 new text begin established by section 353.65, subdivision 1; new text end 14.32     new text begin (2) 35.484 percent must be paid to municipalities other than municipalities solely new text end 14.33 new text begin employing firefighters with retirement coverage provided by the public employees police new text end 15.1 new text begin and fire retirement plan which qualified to receive fire state aid in that calendar year, new text end 15.2 new text begin allocated in proportion to the most recent amount of fire state aid paid under section new text end 15.3 new text begin 69.021, subdivision 7, for the municipality bears to the most recent total fire state aid new text end 15.4 new text begin for all municipalities other than the municipalities solely employing firefighters with new text end 15.5 new text begin retirement coverage provided by the public employees police and fire retirement plan new text end 15.6 new text begin paid under section 69.021, subdivision 7, with the allocated amount for fire departments new text end 15.7 new text begin participating in the voluntary statewide lump-sum volunteer firefighter retirement plan new text end 15.8 new text begin paid to the executive director of the Public Employees Retirement Association for deposit new text end 15.9 new text begin in the fund established by section 353G.02, subdivision 3, and credited to the respective new text end 15.10 new text begin account and with the balance paid to the treasurer of each municipality for transmittal new text end 15.11 new text begin within 30 days of receipt to the treasurer of the applicable volunteer firefighter relief new text end 15.12 new text begin association for deposit in its special fund; and new text end 15.13     new text begin (3) 6.452 percent must be paid to the executive director of the Minnesota State new text end 15.14 new text begin Retirement System for deposit in the state patrol retirement fund. new text end 15.15     new text begin Subd. 3. new text end new text begin Reporting; definitions. new text end new text begin (a) On or before September 1, annually, the new text end 15.16 new text begin executive director of the Public Employees Retirement Association shall report to the new text end 15.17 new text begin commissioner of revenue the following: new text end 15.18     new text begin (1) the municipalities which employ firefighters with retirement coverage by the new text end 15.19 new text begin public employees police and fire retirement plan; new text end 15.20     new text begin (2) the number of firefighters with public employees police and fire retirement plan new text end 15.21 new text begin coverage employed by each municipality; new text end 15.22     new text begin (3) the fire departments covered by the voluntary statewide lump-sum volunteer new text end 15.23 new text begin firefighter retirement plan; and new text end 15.24     new text begin (4) any other information requested by the commissioner to administer the police new text end 15.25 new text begin and firefighter retirement supplemental state aid program. new text end 15.26     new text begin (b) For this subdivision, (i) the number of firefighters employed by a municipality new text end 15.27 new text begin who have public employees police and fire retirement plan coverage means the number new text end 15.28 new text begin of firefighters with public employees police and fire retirement plan coverage that were new text end 15.29 new text begin employed by the municipality for not less than 30 hours per week for a minimum of six new text end 15.30 new text begin months prior to December 31 preceding the date of the payment under this section and, if new text end 15.31 new text begin the person was employed for less than the full year, prorated to the number of full months new text end 15.32 new text begin employed; and (ii) the number of active police officers certified for police state aid receipt new text end 15.33 new text begin under section 69.011, subdivisions 2 and 2b, means, for each municipality, the number of new text end 15.34 new text begin police officers meeting the definition of peace officer in section 69.011, subdivision 1, new text end 15.35 new text begin counted as provided and limited by section 69.011, subdivisions 2 and 2b. new text end 16.1     new text begin Subd. 4. new text end new text begin Payments; conditions prerequisite. new text end new text begin (a) The payments under this section new text end 16.2 new text begin must be made on October 1 each year, with interest at one percent for each month, or new text end 16.3 new text begin portion of a month, that the amount remains unpaid after October 1. Any necessary new text end 16.4 new text begin adjustments must be made to subsequent payments. new text end 16.5     new text begin (b) The provisions of sections 69.011 to 69.051 that prevent municipalities and relief new text end 16.6 new text begin associations from being eligible for, or receiving fire state aid under sections 69.011 to new text end 16.7 new text begin 69.051 until the applicable financial reporting requirements have been complied with, new text end 16.8 new text begin apply to the amounts payable to municipalities and relief associations under this section. new text end 16.9     new text begin Subd. 5. new text end new text begin Aid termination. new text end new text begin The aid program under this section ends on the new text end 16.10 new text begin December 1 next following the actuarial valuation date on which the assets of the new text end 16.11 new text begin retirement plan on a market value basis equals or exceeds 90 percent of the total new text end 16.12 new text begin actuarial accrued liabilities of the retirement plan as disclosed in an actuarial valuation new text end 16.13 new text begin prepared under section 356.215 and the Standards for Actuarial Work promulgated by the new text end 16.14 new text begin Legislative Commission on Pensions and Retirement, for the State Patrol retirement plan new text end 16.15 new text begin or the public employees police and fire retirement plan, whichever occurs last. new text end 16.16     new text begin Subd. 6. new text end new text begin Appropriation. new text end new text begin $15,500,000 is appropriated annually to the commissioner new text end 16.17 new text begin of revenue for this aid program. new text end 16.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning in the fiscal year beginning new text end 16.19 new text begin July 1, 2013. new text end 16.20    Sec. 7. Minnesota Statutes 2012, section 477A.011, subdivision 30, is amended to read: 16.21    Subd. 30. Pre-1940 housing percentage. new text begin (a) Except as provided in paragraph (b), new text end 16.22"pre-1940 housing percentage" for a city is 100 times the most recent federal census count 16.23 new text begin by the United States Bureau of the Census new text end of all housing units in the city built before 16.241940, divided by the total number of all housing units in the city. Housing units includes 16.25both occupied and vacant housing units as defined by the federal census. new text begin For aids payable new text end 16.26 new text begin in 2014, "pre-1940 housing percentage" shall be based on 2010 housing data. new text end 16.27     new text begin (b) For the city of East Grand Forks only, "pre-1940 housing percentage" is equal new text end 16.28 new text begin to 100 times the 1990 federal census count of all housing units in the city built before new text end 16.29 new text begin 1940, divided by the most recent count by the United States Bureau of the Census of all new text end 16.30 new text begin housing units in the city. Housing units includes both occupied and vacant housing units new text end 16.31 new text begin as defined by the federal census. new text end 16.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar year new text end 16.33 new text begin 2014 and thereafter. new text end 17.1    Sec. 8. Minnesota Statutes 2012, section 477A.011, is amended by adding a 17.2subdivision to read: 17.3     new text begin Subd. 30a. new text end new text begin Percent of housing built between 1940 and 1970. new text end new text begin "Percent of housing new text end 17.4 new text begin built between 1940 and 1970" is equal to 100 times the most recent count by the United new text end 17.5 new text begin States Bureau of the Census of all housing units in the city built after 1939 but before new text end 17.6 new text begin 1970, divided by the total number of all housing units in the city. Housing units includes new text end 17.7 new text begin both occupied and vacant housing units as defined by the federal census. For aids payable new text end 17.8 new text begin in 2014, "percent of housing built between 1940 and 1970" shall be based on 2010 new text end 17.9 new text begin housing data. new text end 17.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar year new text end 17.11 new text begin 2014 and thereafter. new text end 17.12    Sec. 9. Minnesota Statutes 2012, section 477A.011, subdivision 34, is amended to read: 17.13    Subd. 34. City revenue need. (a) For a city with a population equal to or greater 17.14than 2,500 new text begin 10,000 new text end , "city revenue need" is the greater of 285 or new text begin 1.15 times new text end the sum of (1) 17.155.0734098 new text begin 4.59 new text end times the pre-1940 housing percentage; plus (2) 19.141678 times the 17.16population decline percentage new text begin 0.622 times the percent of housing built between 1940 and new text end 17.17 new text begin 1970 new text end ; plus (3) 2504.06334 times the road accidents factor new text begin 169.415 times the jobs per new text end 17.18 new text begin capita new text end ; plus (4) 355.0547; minus (5) the metropolitan area factor; minus (6) 49.10638 17.19times the household size new text begin the sparsity adjustment; plus (5) 307.664 new text end . 17.20     new text begin (b) For a city with a population equal to or greater than 2,500 and less than 10,000, new text end 17.21 new text begin "city revenue need" is 1.15 times the sum of (1) 572.62; plus (2) 5.026 times the pre-1940 new text end 17.22 new text begin housing percentage; minus (3) 53.768 times household size; plus (4) 14.022 times peak new text end 17.23 new text begin population decline. new text end 17.24    (b) new text begin (c) new text end For a city with a population less than 2,500, "city revenue need" is the sum of 17.25(1) 2.387 times the pre-1940 housing percentage; plus (2) 2.67591 times the commercial 17.26industrial percentage; plus (3) 3.16042 times the population decline percentage; plus (4) 17.271.206 times the transformed population; minus (5) 62.772 new text begin 410 plus 0.367 times the city's new text end 17.28 new text begin population over 100. The city revenue need under this paragraph shall not exceed 630 new text end . 17.29    (c) new text begin (d) new text end For a city with a population of new text begin at least new text end 2,500 or more and a population in one 17.30of the most recently available five years that was less than 2,500, "city revenue need" 17.31is the sum of (1) its city revenue need calculated under paragraph (a) multiplied by its 17.32transition factor; plus (2) its city revenue need calculated under the formula in paragraph 17.33(b) multiplied by the difference between one and its transition factor. For purposes of this 17.34paragraph, a city's "transition factor" is equal to 0.2 multiplied by the number of years that 17.35the city's population estimate has been 2,500 or more. This provision only applies for aids 18.1payable in calendar years 2006 to 2008 to cities with a 2002 population of less than 2,500. 18.2It applies to any city for aids payable in 2009 and thereafter new text begin but less than 3,000, the "city new text end 18.3 new text begin revenue need" equals (1) the transition factor times the city's revenue need calculated in new text end 18.4 new text begin paragraph (b) plus (2) 630 times the difference between one and the transition factor. For new text end 18.5 new text begin a city with a population of at least 10,000 but less than 10,500, the "city revenue need" new text end 18.6 new text begin equals (1) the transition factor times the city's revenue need calculated in paragraph (a) new text end 18.7 new text begin plus (2) the city's revenue need calculated under the formula in paragraph (b) times the new text end 18.8 new text begin difference between one and the transition factor. For purposes of this paragraph "transition new text end 18.9 new text begin factor" is 0.2 percent times the amount that the city's population exceeds the minimum new text end 18.10 new text begin threshold in either of the first two sentences new text end . 18.11    (d) new text begin (e) new text end The city revenue need cannot be less than zero. 18.12    (e) new text begin (f) new text end For calendar year 2005 new text begin 2015 new text end and subsequent years, the city revenue need for 18.13a city, as determined in paragraphs (a) to (d) new text begin (e) new text end , is multiplied by the ratio of the annual 18.14implicit price deflator for government consumption expenditures and gross investment for 18.15state and local governments as prepared by the United States Department of Commerce, 18.16for the most recently available year to the 2003 new text begin 2013 new text end implicit price deflator for state 18.17and local government purchases. 18.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar year new text end 18.19 new text begin 2014 and thereafter. new text end 18.20    Sec. 10. Minnesota Statutes 2012, section 477A.011, subdivision 42, is amended to read: 18.21    Subd. 42. City jobs base new text begin Jobs per capita new text end . (a) "City jobs base" for a city with a 18.22population of 5,000 or more is equal to the product of (1) $25.20, (2) the number of 18.23jobs per capita in the city, and (3) its population. For cities with a population less than 18.245,000, the city jobs base is equal to zero. For a city receiving aid under , 18.25paragraph (k), its city jobs base is reduced by the lesser of 36 percent of the amount of 18.26aid received under that paragraph or $1,000,000. No city's city jobs base may exceed 18.27$4,725,000 under this paragraph. 18.28    (b) For calendar year 2010 and subsequent years, the city jobs base for a city, as 18.29determined in paragraph (a), is multiplied by the ratio of the appropriation under section 18.30477A.03, subdivision 2a, for the year in which the aid is paid to the appropriation under 18.31that section for aids payable in 2009. 18.32    (c) For purposes of this subdivision, "Jobs per capita in the city" means (1) the 18.33average annual number of employees in the city based on the data from the Quarterly 18.34Census of Employment and Wages, as reported by the Department of Employment and 18.35Economic Development, for the most recent calendar year available as of May 1, 2008 19.1 new text begin November 1 of every odd-numbered year new text end , divided by (2) the city's population for the 19.2same calendar year as the employment data. The commissioner of the Department of 19.3Employment and Economic Development shall certify to the city the average annual 19.4number of employees for each city by June 1, 2008 new text begin January 1, of every even-numbered new text end 19.5 new text begin year beginning with January 1, 2014 new text end . A city may challenge an estimate under this 19.6paragraph by filing its specific objection, including the names of employers that it feels 19.7may have misreported data, in writing with the commissioner by June 20, 2008 new text begin December new text end 19.8 new text begin 1 of every odd-numbered year new text end . The commissioner shall make every reasonable effort 19.9to address the specific objection and adjust the data as necessary. The commissioner 19.10shall certify the estimates of the annual employment to the commissioner of revenue by 19.11July 15, 2008 new text begin January 1 of all even-numbered years new text end , including any estimates still under 19.12objection. new text begin For aids payable in 2014, "jobs per capita" shall be based on the annual number new text end 19.13 new text begin of employees and population for calendar year 2010 without additional review. new text end 19.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar year new text end 19.15 new text begin 2014 and thereafter. new text end 19.16    Sec. 11. Minnesota Statutes 2012, section 477A.011, is amended by adding a 19.17subdivision to read: 19.18     new text begin Subd. 44. new text end new text begin Peak population decline. new text end new text begin "Peak population decline" is equal to 100 new text end 19.19 new text begin times the difference between one and the ratio of the city's current population, to the new text end 19.20 new text begin highest city population reported in a federal census from the 1970 census or later. "Peak new text end 19.21 new text begin population decline" shall not be less than zero. new text end 19.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar year new text end 19.23 new text begin 2014 and thereafter. new text end 19.24    Sec. 12. Minnesota Statutes 2012, section 477A.011, is amended by adding a 19.25subdivision to read: 19.26     new text begin Subd. 45. new text end new text begin Sparsity adjustment. new text end new text begin For a city with a population of 10,000 or more, the new text end 19.27 new text begin sparsity adjustment is 100 for any city with an average population density less than 150 new text end 19.28 new text begin per square mile, according to the most recent federal census, and the sparsity adjustment is new text end 19.29 new text begin zero for all other cities. new text end 19.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar year new text end 19.31 new text begin 2014 and thereafter. new text end 19.32    Sec. 13. Minnesota Statutes 2012, section 477A.013, subdivision 1, is amended to read: 20.1    Subdivision 1. Towns. In 2002, no town is eligible for a distribution under this 20.2subdivision. new text begin In 2014 and thereafter, each town is eligible for a distribution under this new text end 20.3 new text begin subdivision equal to the product of (i) its agricultural property factor, (ii) its town area new text end 20.4 new text begin factor, (iii) its population factor, and (iv) 0.0045. As used in this subdivision, the following new text end 20.5 new text begin terms have the meanings given them: new text end 20.6 new text begin (1) "agricultural property factor" means the ratio of the adjusted net tax capacity of new text end 20.7 new text begin agricultural property located in a town, divided by the adjusted net tax capacity of all other new text end 20.8 new text begin property located in the town. The agricultural property factor cannot exceed eight; new text end 20.9 new text begin (2) "agricultural property" means property classified under section 273.13, as new text end 20.10 new text begin homestead and nonhomestead agricultural property, rural vacant land, and noncommercial new text end 20.11 new text begin seasonal recreational property; new text end 20.12 new text begin (3) "town area factor" means the most recent estimate of total acreage, not to exceed new text end 20.13 new text begin 50,000 acres, located in the township available as of July 1 in the aid calculation year, new text end 20.14 new text begin estimated or established by: new text end 20.15 new text begin (i) the United States Bureau of the Census; new text end 20.16 new text begin (ii) the State Land Management Information Center; or new text end 20.17 new text begin (iii) the secretary of state; and new text end 20.18 new text begin (4) "population factor" means the square root of the towns' population. new text end 20.19 new text begin If the sum of the aids payable to all towns under this subdivision exceeds the limit new text end 20.20 new text begin under section 477A.03, subdivision 2c, the distribution to each town must be reduced new text end 20.21 new text begin proportionately so that the total amount of aids distributed under this section does not new text end 20.22 new text begin exceed the limit in section 477A.03, subdivision 2c. new text end 20.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar year new text end 20.24 new text begin 2014 and thereafter. new text end 20.25    Sec. 14. Minnesota Statutes 2012, section 477A.013, subdivision 8, is amended to read: 20.26    Subd. 8. City formula aid. new text begin (a) For aids payable in 2014 only, the formula aid for a new text end 20.27 new text begin city is equal to the sum of (1) its 2013 certified aid and (2) the product of (i) the difference new text end 20.28 new text begin between its unmet need and its 2013 certified aid and (ii) the aid gap percentage. new text end 20.29     new text begin (b) For aids payable in 2015 and thereafter, new text end the formula aid for a city is equal to 20.30the sum of (1) its city jobs base, (2) its small city aid base, and (3) the need increase 20.31percentage multiplied by the average of its unmet need for the most recently available two 20.32years new text begin formula aid in the previous year and (2) the product of (i) the difference between new text end 20.33 new text begin its unmet need and its certified aid in the previous year under subdivision 9, and (ii) new text end 20.34 new text begin the aid gap percentage new text end . 21.1No city may have a formula aid amount less than zero. The need increase new text begin aid gap new text end 21.2 percentage must be the same for all cities. 21.3    The applicable need increase new text begin aid gap new text end percentage must be calculated by the 21.4Department of Revenue so that the total of the aid under subdivision 9 equals the total 21.5amount available for aid under section 477A.03. Data used in calculating aids to cities 21.6under sections 477A.011 to 477A.013 shall be the most recently available data as of 21.7January 1 in the year in which the aid is calculated except that the data used to compute "net 21.8levy" in subdivision 9 is the data most recently available at the time of the aid computation. 21.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar year new text end 21.10 new text begin 2014 and thereafter. new text end 21.11    Sec. 15. Minnesota Statutes 2012, section 477A.013, subdivision 9, is amended to read: 21.12    Subd. 9. City aid distribution. (a) In calendar year 2013 new text begin 2014 new text end and thereafter, each 21.13city shall receive an aid distribution equal to the sum of (1) the city formula aid under 21.14subdivision 8, and (2) its city aid base new text begin aid adjustment under subdivision 13 new text end . 21.15    (b) For aids payable in 2013 and 2014 only, the total aid in the previous year for 21.16any city shall mean the amount of aid it was certified to receive for aids payable in 2012 21.17under this section. For aids payable in 2015 and thereafter, the total aid in the previous 21.18year for any city means the amount of aid it was certified to receive under this section in 21.19the previous payable year. 21.20    (c) For aids payable in 2010 and thereafter, the total aid for any city shall not exceed 21.21the sum of (1) ten percent of the city's net levy for the year prior to the aid distribution 21.22plus (2) its total aid in the previous year. For aids payable in 2009 and thereafter, the total 21.23aid for any city with a population of 2,500 or more may not be less than its total aid under 21.24this section in the previous year minus the lesser of $10 multiplied by its population, or ten 21.25percent of its net levy in the year prior to the aid distribution. 21.26    (d) new text begin (b) For aids payable in 2014 only, the total aid for a city may not be less than the new text end 21.27 new text begin amount it was certified to receive in 2013. new text end For aids payable in 2010 new text begin 2015 new text end and thereafter, 21.28the total aid for a city with a population less than 2,500 must not be less than the amount 21.29it was certified to receive in the previous year minus the lesser of $10 multiplied by its 21.30population, or five percent of its 2003 certified aid amount. For aids payable in 2009 only, 21.31the total aid for a city with a population less than 2,500 must not be less than what it 21.32received under this section in the previous year unless its total aid in calendar year 2008 21.33was aid under section , subdivision 36, paragraph (s), in which case its minimum 21.34aid is zero new text begin its net levy in the year prior to the aid distribution new text end . 22.1    (e) A city's aid loss under this section may not exceed $300,000 in any year in 22.2which the total city aid appropriation under section 477A.03, subdivision 2a, is equal or 22.3greater than the appropriation under that subdivision in the previous year, unless the 22.4city has an adjustment in its city net tax capacity under the process described in section 22.5469.174, subdivision 28. 22.6    (f) If a city's net tax capacity used in calculating aid under this section has decreased 22.7in any year by more than 25 percent from its net tax capacity in the previous year due to 22.8property becoming tax-exempt Indian land, the city's maximum allowed aid increase 22.9under paragraph (c) shall be increased by an amount equal to (1) the city's tax rate in the 22.10year of the aid calculation, multiplied by (2) the amount of its net tax capacity decrease 22.11resulting from the property becoming tax exempt. 22.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar year new text end 22.13 new text begin 2014 and thereafter. new text end 22.14    Sec. 16. Minnesota Statutes 2012, section 477A.013, is amended by adding a 22.15subdivision to read: 22.16     new text begin Subd. 13. new text end new text begin Certified aid adjustments. new text end new text begin (a) A city that received an aid base increase new text end 22.17 new text begin under Minnesota Statutes 2012, section 477A.011, subdivision 36, paragraph (e), shall new text end 22.18 new text begin have its total aid under subdivision 9 increased by an amount equal to $150,000 for aids new text end 22.19 new text begin payable in 2014 through 2018. new text end 22.20 new text begin (b) A city that received an aid base increase under section 477A.011, subdivision 36, new text end 22.21 new text begin paragraph (r), shall have its total aid under subdivision 9 increased by an amount equal to new text end 22.22 new text begin $160,000 for aids payable in 2014 and thereafter. new text end 22.23 new text begin (c) A city that received a temporary aid increase under Minnesota Statutes 2012, new text end 22.24 new text begin section 477A.011, subdivision 36, paragraph (o), shall have its total aid under subdivision new text end 22.25 new text begin 9 increased by an amount equal to $1,000,000 for aids payable in 2014 only. new text end 22.26    Sec. 17. Minnesota Statutes 2012, section 477A.015, is amended to read: 22.27477A.015 PAYMENT DATES. 22.28The commissioner of revenue shall make the payments of local government aid to 22.29affected taxing authorities in two installments on July 20 and December 26 annually. 22.30When the commissioner of public safety determines that a local government has 22.31suffered financial hardship due to a natural disaster, the commissioner of public safety 22.32shall notify the commissioner of revenue, who shall make payments of aids under sections 23.1477A.011 to 477A.014, which are otherwise due on December 26, as soon as is practical 23.2after the determination is made but not before July 20. 23.3The commissioner may pay all or part of the payments of aids under sections 23.4477A.011 to 477A.014, which are due on December 26 at any time after August 15 if a 23.5local government requests such payment as being necessary for meeting its cash flow 23.6needs. new text begin For aids payable in 2013 only, a city that is located in an area deemed a disaster new text end 23.7 new text begin area during the month of April 2013, as defined in section 12A.02, subdivision 5, shall new text end 23.8 new text begin receive its December 26, 2013 payment with its July 20, 2013 payment. new text end 23.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar year new text end 23.10 new text begin 2013 and thereafter. new text end 23.11    Sec. 18. Minnesota Statutes 2012, section 477A.03, subdivision 2a, is amended to read: 23.12    Subd. 2a. Cities. For aids payable in 2013 new text begin 2014 new text end and thereafter, the total aid paid 23.13under section 477A.013, subdivision 9, is $426,438,012 new text begin $507,598,012. The total aid paid new text end 23.14 new text begin under section 477A.013, subdivision 9, is $509,098,012 for aids payable in 2015. For aids new text end 23.15 new text begin payable in 2016 and thereafter, the total aid paid under section 477A.013, subdivision new text end 23.16 new text begin 9, is $511,598,012 new text end . 23.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar year new text end 23.18 new text begin 2014 and thereafter. new text end 23.19    Sec. 19. Minnesota Statutes 2012, section 477A.03, subdivision 2b, is amended to read: 23.20    Subd. 2b. Counties. (a) For aids payable in 2013 new text begin 2014 new text end and thereafter, the total aid 23.21payable under section 477A.0124, subdivision 3, is $80,795,000 new text begin $100,795,000 new text end . Each 23.22calendar year, $500,000 new text begin of this appropriation new text end shall be retained by the commissioner 23.23of revenue to make reimbursements to the commissioner of management and budget 23.24for payments made under section 611.27. For calendar year 2004, the amount shall 23.25be in addition to the payments authorized under section 477A.0124, subdivision 1. 23.26For calendar year 2005 and subsequent years, the amount shall be deducted from the 23.27appropriation under this paragraph. The reimbursements shall be to defray the additional 23.28costs associated with court-ordered counsel under section 611.27. Any retained amounts 23.29not used for reimbursement in a year shall be included in the next distribution of county 23.30need aid that is certified to the county auditors for the purpose of property tax reduction 23.31for the next taxes payable year. 23.32    (b) For aids payable in 2013 new text begin 2014 new text end and thereafter, the total aid under section 23.33477A.0124, subdivision 4 , is $84,909,575 new text begin $104,909,575 new text end . The commissioner of 24.1management and budget shall bill the commissioner of revenue new text begin shall transfer to the new text end 24.2 new text begin commissioner of management and budget $207,000 annually new text end for the cost of preparation 24.3of local impact notes as required by section 3.987, not to exceed $207,000 in fiscal year 24.42004 and thereafter new text begin and other local government activities new text end . The commissioner of education 24.5shall bill the commissioner of revenue for the cost of preparation of local impact notes for 24.6school districts as required by section , not to exceed $7,000 in fiscal year 2004 and 24.7thereafter new text begin shall transfer to the commissioner of education $7,000 annually for the cost of new text end 24.8 new text begin preparation of local impact notes for school districts as required by section 3.987 new text end . The 24.9commissioner of revenue shall deduct the amounts billed new text begin transferred new text end under this paragraph 24.10from the appropriation under this paragraph. The amounts deducted new text begin transferred new text end are 24.11appropriated to the commissioner of management and budget and the commissioner of 24.12education for the preparation of local impact notes new text begin respectively new text end . 24.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aid payable in 2014 and thereafter. new text end 24.14    Sec. 20. Minnesota Statutes 2012, section 477A.03, is amended by adding a 24.15subdivision to read: 24.16     new text begin Subd. 2c. new text end new text begin Towns. new text end new text begin For aids payable in 2014, the total aids paid under section new text end 24.17 new text begin 477A.013, subdivision 1, is limited to $10,000,000. For aids payable in 2015 and new text end 24.18 new text begin thereafter, the total aids paid under section 477A.013, subdivision 1, is limited to the new text end 24.19 new text begin amount certified to be paid in the previous year. new text end 24.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar year new text end 24.21 new text begin 2014 and thereafter. new text end 24.22    Sec. 21. new text begin [477A.085] DEBT SERVICE AID; CITY OF MINNEAPOLIS. new text end 24.23 new text begin On or before November 1, 2016, and the first day of each November thereafter, the new text end 24.24 new text begin commissioner shall pay to the city of Minneapolis an amount equal to 40 percent of the new text end 24.25 new text begin city's otherwise required levy to pay its general obligation library referendum bonds for new text end 24.26 new text begin the following calendar year. The levy excludes any amount to pay bonds, other than new text end 24.27 new text begin refunding bonds, issued after May 1, 2013. An amount sufficient to pay the aid under this new text end 24.28 new text begin section is appropriated from the general fund to the commissioner of revenue. new text end 24.29    Sec. 22. new text begin [477A.10] NATURAL RESOURCES LAND PAYMENTS IN LIEU; new text end 24.30 new text begin PURPOSE. new text end 24.31 new text begin The purposes of sections 477A.11 to 477A.14 are: new text end 25.1 new text begin (1) to compensate local units of government for the loss of tax base from state new text end 25.2 new text begin ownership of land and the need to provide services for state land; new text end 25.3 new text begin (2) to address the disproportionate impact of state land ownership on local units of new text end 25.4 new text begin government with a large proportion of state land; and new text end 25.5 new text begin (3) to address the need to manage state lands held in trust for the local taxing districts. new text end 25.6    Sec. 23. Minnesota Statutes 2012, section 477A.11, subdivision 3, is amended to read: 25.7    Subd. 3. Acquired natural resources land. "Acquired natural resources land" 25.8means: 25.9(1) any land new text begin , other than wildlife management land, new text end presently administered by the 25.10commissioner in which the state acquired by purchase, condemnation, or gift, a fee title 25.11interest in lands which were previously privately owned; and 25.12(2) lands acquired by the state under chapter 84A that are designated as state parks, 25.13state recreation areas, scientific and natural areas, or wildlife management areas. 25.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar year new text end 25.15 new text begin 2013 and thereafter. new text end 25.16    Sec. 24. Minnesota Statutes 2012, section 477A.11, subdivision 4, is amended to read: 25.17    Subd. 4. Other natural resources land. "Other natural resources land" means 25.18any other land new text begin , other than acquired natural resource land or wildlife management land, new text end 25.19 presently owned in fee title by the state and administered by the commissioner, or 25.20any tax-forfeited land, other than platted lots within a city or those lands described 25.21under subdivision 3, clause (2), which is owned by the state and administered by the 25.22commissioner or by the county in which it is located. 25.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar year new text end 25.24 new text begin 2013 and thereafter. new text end 25.25    Sec. 25. Minnesota Statutes 2012, section 477A.11, is amended by adding a 25.26subdivision to read: 25.27     new text begin Subd. 6. new text end new text begin Military game refuge. new text end new text begin "Military game refuge" means land owned in new text end 25.28 new text begin fee by another state agency for military purposes and designated as a state game refuge new text end 25.29 new text begin under section 97A.085. new text end 25.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar year new text end 25.31 new text begin 2013 and thereafter. new text end 26.1    Sec. 26. Minnesota Statutes 2012, section 477A.11, is amended by adding a 26.2subdivision to read: 26.3     new text begin Subd. 7. new text end new text begin Transportation wetland. new text end new text begin "Transportation wetland" means land new text end 26.4 new text begin administered by the Department of Transportation in which the state acquired, by purchase new text end 26.5 new text begin from a private owner, a fee title interest in over 500 acres of land within a county to new text end 26.6 new text begin replace wetland losses from transportation projects. new text end 26.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar year new text end 26.8 new text begin 2013 and thereafter. new text end 26.9    Sec. 27. Minnesota Statutes 2012, section 477A.11, is amended by adding a 26.10subdivision to read: 26.11     new text begin Subd. 8. new text end new text begin Wildlife management land. new text end new text begin "Wildlife management land" means land new text end 26.12 new text begin administered by the commissioner in which the state acquired, from a private owner by new text end 26.13 new text begin purchase, condemnation, or gift, a fee interest under the authority granted in chapter 94 or new text end 26.14 new text begin 97A for wildlife management purposes and actually used as a wildlife management area. new text end 26.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar year new text end 26.16 new text begin 2013 and thereafter. new text end 26.17    Sec. 28. Minnesota Statutes 2012, section 477A.12, subdivision 1, is amended to read: 26.18    Subdivision 1. Types of land; payments. (a) As an offset for expenses incurred 26.19by counties and towns in support of natural resources lands, The following amounts are 26.20annually appropriated to the commissioner of natural resources from the general fund for 26.21transfer to the commissioner of revenue. The commissioner of revenue shall pay the 26.22transferred funds to counties as required by sections 477A.11 to 477A.14. The amounts new text begin , new text end 26.23 new text begin based on the acreage as of July 1 of each year prior to the payment year, new text end are: 26.24(1) for acquired natural resources land, $5.133 multiplied by the total number of acres 26.25of acquired natural resources land or, at the county's option three-fourths of one percent of 26.26the appraised value of all acquired natural resources land in the county, whichever is greater; 26.27(2) new text begin $5.133, multiplied by the total number of acres of transportation wetland or, at new text end 26.28 new text begin the county's option, three-fourths of one percent of the appraised value of all acquired new text end 26.29 new text begin natural resources land in the county, whichever is greater; new text end 26.30 new text begin (3) three-fourths of one percent of the appraised value of all wildlife management new text end 26.31 new text begin land in the county; new text end 26.32 new text begin (4) 50 percent of the dollar amount as determined under clause (1), multiplied by new text end 26.33 new text begin the number of acres of military refuge land in the county; new text end 27.1$1.283 new text begin (5) $1.50, new text end multiplied by the number of acres of county-administered other 27.2natural resources land new text begin in the county new text end ; 27.3(3) $1.283 new text begin (6) $5.133, new text end multiplied by the total number of acres of land utilization 27.4project land new text begin in the county new text end ; and 27.5(4) 64.2 cents new text begin (7) $1.50, new text end multiplied by the number of acres of 27.6commissioner-administered other natural resources land located in each new text begin the new text end county as of 27.7July 1 of each year prior to the payment year. new text begin ; and new text end 27.8     new text begin (8) without regard to acreage, $300,000 for local assessments under section 84A.55, new text end 27.9 new text begin subdivision 9. new text end 27.10(b) The amount determined under paragraph (a), clause (1), is payable for land 27.11that is acquired from a private owner and owned by the Department of Transportation 27.12for the purpose of replacing wetland losses caused by transportation projects, but only 27.13if the county contains more than 500 acres of such land at the time the certification is 27.14made under subdivision 2. 27.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar year new text end 27.16 new text begin 2013 and thereafter. new text end 27.17    Sec. 29. Minnesota Statutes 2012, section 477A.12, subdivision 2, is amended to read: 27.18    Subd. 2. Procedure. Lands for which payments in lieu are made pursuant to 27.19section 97A.061, subdivision 3, and Laws 1973, chapter 567, shall not be eligible for 27.20payments under this section. Each county auditor shall certify to the Department of 27.21Natural Resources during July of each year prior to the payment year the number of acres 27.22of county-administered other natural resources land within the county. The Department of 27.23Natural resources may, in addition to the certification of acreage, require descriptive lists 27.24of land so certified. The commissioner of natural resources shall determine and certify to 27.25the commissioner of revenue by March 1 of the payment year: 27.26(1) the number of acres and most recent appraised value of acquired natural 27.27resources land new text begin , wildlife management land, and military refuge land new text end within each county; 27.28(2) the number of acres of commissioner-administered natural resources land within 27.29each county; 27.30(3) the number of acres of county-administered other natural resources land within 27.31each county, based on the reports filed by each county auditor with the commissioner 27.32of natural resources; and 27.33(4) the number of acres of land utilization project land within each county. 27.34The commissioner of transportation shall determine and certify to the commissioner 27.35of revenue by March 1 of the payment year the number of acres of land new text begin transportation new text end 28.1 new text begin wetland new text end and the appraised value of the land described in subdivision 1, paragraph (b), but 28.2only if it exceeds 500 acres new text begin in a county new text end . 28.3The commissioner of revenue shall determine the distributions provided for in this 28.4section using the number of acres and appraised values certified by the commissioner of 28.5natural resources and the commissioner of transportation by March 1 of the payment year. 28.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar year new text end 28.7 new text begin 2013 and thereafter. new text end 28.8    Sec. 30. Minnesota Statutes 2012, section 477A.12, subdivision 3, is amended to read: 28.9    Subd. 3. Determination of appraised value. For the purposes of this section, the 28.10appraised value of acquired natural resources land is the purchase price for the first five 28.11years after acquisition new text begin until the next six-year appraisal required under this subdivision new text end . 28.12The appraised value of acquired natural resources land received as a donation is the value 28.13determined for the commissioner of natural resources by a licensed appraiser, or the 28.14county assessor's estimated market value if no appraisal is done. The appraised value must 28.15be determined by the county assessor every five new text begin six new text end years after the land is acquired. new text begin All new text end 28.16 new text begin reappraisals shall be done in the same year as county assessors are required to assess new text end 28.17 new text begin exempt land under section 273.18. new text end 28.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar year new text end 28.19 new text begin 2013 and thereafter. new text end 28.20    Sec. 31. Minnesota Statutes 2012, section 477A.14, subdivision 1, is amended to read: 28.21    Subdivision 1. General distribution. Except as provided in subdivision 2 or in 28.22section 97A.061, subdivision 5 new text begin subdivisions 2 and 3 new text end , 40 percent of the total payment to 28.23the county shall be deposited in the county general revenue fund to be used to provide 28.24property tax levy reduction. The remainder shall be distributed by the county in the 28.25following priority: 28.26(a) 64.2 cents new text begin , new text end for each acre of county-administered other natural resources land shall 28.27be deposited in a resource development fund to be created within the county treasury for 28.28use in resource development, forest management, game and fish habitat improvement, and 28.29recreational development and maintenance of county-administered other natural resources 28.30land. Any county receiving less than $5,000 annually for the resource development fund 28.31may elect to deposit that amount in the county general revenue fund; 28.32(b) from the funds remaining, within 30 days of receipt of the payment to the county, 28.33the county treasurer shall pay each organized township 51.3 cents for each acre of acquired 29.1natural resources land and each acre of land described in section 477A.12, subdivision 1, 29.2paragraph (b), and 12.8 cents for each acre of other natural resources land and each acre of 29.3land utilization project land located within its boundaries new text begin ten percent of the amount received new text end 29.4 new text begin under section 477A.12, subdivision 1, clauses (1), (2), and (5) to (7) new text end . Payments for natural 29.5resources lands not located in an organized township shall be deposited in the county 29.6general revenue fund. Payments to counties and townships pursuant to this paragraph shall 29.7be used to provide property tax levy reduction, except that of the payments for natural 29.8resources lands not located in an organized township, the county may allocate the amount 29.9determined to be necessary for maintenance of roads in unorganized townships. Provided 29.10that, if the total payment to the county pursuant to section 477A.12 is not sufficient to fully 29.11fund the distribution provided for in this clause, the amount available shall be distributed 29.12to each township and the county general revenue fund on a pro rata basis; and 29.13(c) any remaining funds shall be deposited in the county general revenue fund. 29.14Provided that, if the distribution to the county general revenue fund exceeds $35,000, the 29.15excess shall be used to provide property tax levy reduction. 29.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar year new text end 29.17 new text begin 2013 and thereafter. new text end 29.18    Sec. 32. Minnesota Statutes 2012, section 477A.14, is amended by adding a 29.19subdivision to read: 29.20     new text begin Subd. 3. new text end new text begin Distribution for wildlife management lands and military refuge lands. new text end 29.21 new text begin (a) The county treasurer shall allocate the payment for wildlife management land and new text end 29.22 new text begin military game refuge land among the county, towns, and school districts on the same basis new text end 29.23 new text begin as if the payments were taxes on the land received in the year. Payment of a town's or a new text end 29.24 new text begin school district's allocation must be made by the county treasurer to the town or school new text end 29.25 new text begin district within 30 days of receipt of the payment to the county. The county's share of the new text end 29.26 new text begin payment shall be deposited in the county general revenue fund. new text end 29.27 new text begin (b) The county treasurer of a county with a population over 39,000, but less than new text end 29.28 new text begin 42,000, in the 1950 federal census shall allocate the payment only among the towns and new text end 29.29 new text begin school districts on the same basis as if the payments were taxes on the lands received new text end 29.30 new text begin in the current year. new text end 29.31 new text begin (c) If a town received a payment in calendar year 2006 or thereafter under this new text end 29.32 new text begin subdivision, and subsequently incorporated as a city, the city shall continue to receive any new text end 29.33 new text begin future year's allocations of wildlife land payments that would have been made to the town new text end 29.34 new text begin had it not incorporated, provided that the payments shall terminate if the governing body new text end 29.35 new text begin of the city passes an ordinance that prohibits hunting within the boundaries of the city. new text end 30.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar year new text end 30.2 new text begin 2013 and thereafter. new text end 30.3    Sec. 33. Laws 2006, chapter 259, article 11, section 3, as amended by Laws 2008, 30.4chapter 154, article 1, section 4, is amended to read: 30.5    Sec. 3. MAHNOMEN COUNTY; COUNTY, CITY, SCHOOL DISTRICT, 30.6PROPERTY TAX REIMBURSEMENT. 30.7    Subdivision 1. Aid appropriation. $600,000 new text begin $1,200,000 new text end is appropriated annually 30.8from the general fund to the commissioner of revenue to be used to make payments to 30.9compensate for the loss of property tax revenue related to the trust conversion application 30.10of the Shooting Star Casino. The commissioner shall pay the county of Mahnomen, 30.11$450,000 new text begin $900,000 new text end ; the city of Mahnomen, $80,000 new text begin $160,000 new text end ; and Independent School 30.12District No. 432, Mahnomen, $70,000 new text begin $140,000 new text end . The payments shall be made on July 20, 30.13of 2008 new text begin 2013 new text end and each subsequent year. 30.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar year new text end 30.15 new text begin 2013 and thereafter. new text end 30.16    Sec. 34. new text begin INELIGIBILITY; SUSTAINABLE FOREST INCENTIVE PROGRAM. new text end 30.17 new text begin Lands that no longer qualify as forest land under Minnesota Statutes, section new text end 30.18 new text begin 290C.02, subdivision 6, item (iii), are released from the covenant required under new text end 30.19 new text begin Minnesota Statutes, section 290C.04. new text end 30.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 30.21    Sec. 35. new text begin REENROLLMENT; SUSTAINABLE FOREST INCENTIVE new text end 30.22 new text begin PROGRAM. new text end 30.23 new text begin A person who elected to terminate participation in the sustainable forest incentive new text end 30.24 new text begin program, as provided in Laws 2011, First Special Session chapter 7, article 6, section 12, new text end 30.25 new text begin may reenroll lands for which the claimant terminated participation and be eligible for a new text end 30.26 new text begin payment in October 2013. A person must apply for reenrollment under this section within new text end 30.27 new text begin 60 days after the effective date of this section. new text end 30.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 30.29    Sec. 36. new text begin REPEALER. new text end 31.1 new text begin (a) new text end new text begin Minnesota Statutes 2012, sections 477A.011, subdivisions 2a, 19, 29, 31, 32, 33, new text end 31.2 new text begin 36, 39, 40, and 41; 477A.013, subdivisions 11 and 12; 477A.0133; and 477A.0134, new text end new text begin are new text end 31.3 new text begin repealed. new text end 31.4 new text begin (b) Minnesota Statutes 2012, section 97A.061, new text end new text begin and new text end new text begin Laws 1973, chapter 567, section new text end 31.5 new text begin 7, as amended by Laws 1977, chapter 403, section 12, new text end new text begin are repealed on July 1, 2013. new text end 31.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar year new text end 31.7 new text begin 2014 and thereafter. new text end 31.8ARTICLE 3 31.9EDUCATION AIDS AND LEVIES 31.10    Section 1. new text begin [124D.862] ACHIEVEMENT AND INTEGRATION REVENUE. new text end 31.11     new text begin Subdivision 1. new text end new text begin Initial achievement and integration revenue. new text end new text begin (a) An eligible new text end 31.12 new text begin district's initial achievement and integration revenue equals the sum of (1) $350 times new text end 31.13 new text begin the district's adjusted pupil units for that year times the ratio of the district's enrollment new text end 31.14 new text begin of protected students for the previous school year to total enrollment for the previous new text end 31.15 new text begin school year and (2) the greater of zero or 66 percent of the difference between the district's new text end 31.16 new text begin integration revenue for fiscal year 2013 and the district's integration revenue for fiscal new text end 31.17 new text begin year 2014 under clause (1). new text end 31.18 new text begin (b) In each year, 0.3 percent of each district's initial achievement and integration new text end 31.19 new text begin revenue is transferred to the department for the oversight and accountability activities new text end 31.20 new text begin required under this section and section 124D.861. new text end 31.21     new text begin Subd. 2. new text end new text begin Incentive revenue. new text end new text begin An eligible school district's maximum incentive new text end 31.22 new text begin revenue equals $10 per adjusted pupil unit. In order to receive this revenue, a district must new text end 31.23 new text begin be implementing a voluntary plan to reduce racial and economic enrollment disparities new text end 31.24 new text begin through intradistrict and interdistrict activities that have been approved as a part of the new text end 31.25 new text begin district's achievement and integration plan. new text end 31.26     new text begin Subd. 3. new text end new text begin Achievement and integration revenue. new text end new text begin Achievement and integration new text end 31.27 new text begin revenue equals the sum of initial achievement and integration revenue and incentive new text end 31.28 new text begin revenue. new text end 31.29     new text begin Subd. 4. new text end new text begin Achievement and integration aid. new text end new text begin For fiscal year 2015 and later, new text end 31.30 new text begin a district's achievement and integration aid equals 70 percent of its achievement and new text end 31.31 new text begin integration revenue. new text end 31.32     new text begin Subd. 5. new text end new text begin Achievement and integration levy. new text end new text begin A district's achievement and new text end 31.33 new text begin integration levy equals its achievement and integration revenue times 30 percent. For new text end 31.34 new text begin Special School District No. 1, Minneapolis; Independent School District No. 625, St. new text end 31.35 new text begin Paul; and Independent School District No. 709, Duluth, 100 percent of the levy certified new text end 32.1 new text begin under this subdivision is shifted into the prior calendar year for purposes of sections new text end 32.2 new text begin 123B.75, subdivision 5, and 127A.441. new text end 32.3     new text begin Subd. 6. new text end new text begin Revenue uses. new text end new text begin (a) At least 80 percent of a district's achievement and new text end 32.4 new text begin integration revenue received under this section must be used for innovative and integrated new text end 32.5 new text begin learning environments, school enrollment choices, family engagement activities, and other new text end 32.6 new text begin approved programs providing direct services to students. new text end 32.7 new text begin (b) Up to 20 percent of the revenue may be used for professional development and new text end 32.8 new text begin staff development activities and placement services. new text end 32.9 new text begin (c) No more than ten percent of the total amount of revenue may be spent on new text end 32.10 new text begin administrative services. new text end 32.11     new text begin Subd. 7. new text end new text begin Revenue reserved. new text end new text begin Integration revenue received under this section must new text end 32.12 new text begin be reserved and used only for the programs authorized in subdivision 2. new text end 32.13     new text begin Subd. 8. new text end new text begin Commissioner authority to withhold revenue. new text end new text begin (a) The commissioner new text end 32.14 new text begin must review the results of each district's integration and achievement plan by August 1 at new text end 32.15 new text begin the end of the third year of implementing the plan and determine if the district met its goals. new text end 32.16 new text begin (b) If a district met its goals, it may submit a new three-year plan to the commissioner new text end 32.17 new text begin for review. new text end 32.18 new text begin (c) If a district has not met its goals, the commissioner must: new text end 32.19 new text begin (1) develop a district improvement plan and timeline, in consultation with the new text end 32.20 new text begin affected district, that identifies strategies and practices designed to meet the district's goals new text end 32.21 new text begin under this section and section 120B.11; and new text end 32.22 new text begin (2) use up to 20 percent of the district's integration revenue, until the district's goals new text end 32.23 new text begin are reached, to implement the improvement plan. new text end 32.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for revenue for fiscal year 2014 and new text end 32.25 new text begin later. Subdivision 5 is effective for taxes payable in 2014 only. new text end 32.26    Sec. 2. Minnesota Statutes 2012, section 126C.10, subdivision 1, is amended to read: 32.27    Subdivision 1. General education revenue. new text begin (a) For fiscal years 2013 and 2014, new text end the 32.28general education revenue for each district equals the sum of the district's basic revenue, 32.29extended time revenue, gifted and talented revenue, small schools revenue, basic skills 32.30revenue, training and experience revenue, secondary sparsity revenue, elementary sparsity 32.31revenue, transportation sparsity revenue, total operating capital revenue, equity revenue, 32.32alternative teacher compensation revenue, and transition revenue. 32.33 new text begin (b) For fiscal year 2015 and later, the general education revenue for each district new text end 32.34 new text begin equals the sum of the district's basic revenue, extended time revenue, gifted and new text end 32.35 new text begin talented revenue, declining enrollment revenue, location equity revenue, small schools new text end 33.1 new text begin revenue, basic skills revenue, secondary sparsity revenue, elementary sparsity revenue, new text end 33.2 new text begin transportation sparsity revenue, total operating capital revenue, equity revenue, pension new text end 33.3 new text begin adjustment revenue, and transition revenue. new text end 33.4    Sec. 3. Minnesota Statutes 2012, section 126C.10, is amended by adding a subdivision 33.5to read: 33.6     new text begin Subd. 2d. new text end new text begin Location equity revenue. new text end new text begin (a) For a school district with any of its area new text end 33.7 new text begin located within the seven-county metropolitan area, location equity revenue equals $424 new text end 33.8 new text begin times the adjusted pupil units of the district for that school year. new text end 33.9 new text begin (b) For all other school districts with more than 2,000 pupils in adjusted average new text end 33.10 new text begin daily membership for the fiscal year ending in the year before the levy is certified, location new text end 33.11 new text begin equity revenue equals $212 times the adjusted pupil units of the district for that year. new text end 33.12 new text begin (c) A district's location equity levy equals its location equity revenue times the lesser new text end 33.13 new text begin of one or the ratio of its referendum market value per resident pupil unit to $510,000. The new text end 33.14 new text begin location equity revenue levy must be spread on referendum market value. new text end 33.15 new text begin (d) A district's location equity aid equals its location equity revenue less its location new text end 33.16 new text begin equity levy, times the ratio of the actual amount levied to the permitted levy. new text end 33.17 new text begin (e) A school district may elect not to participate in the location equity revenue new text end 33.18 new text begin program by a board vote taken prior to September 1 of the fiscal year before the fiscal year new text end 33.19 new text begin for which the decision not to participate becomes effective. The board resolution must new text end 33.20 new text begin state which fiscal years the district will not participate. A copy of the board resolution new text end 33.21 new text begin to not participate must be submitted to the commissioner. new text end 33.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for revenue for fiscal year 2015 new text end 33.23 new text begin and later. new text end 33.24    Sec. 4. Minnesota Statutes 2012, section 126C.13, subdivision 4, is amended to read: 33.25    Subd. 4. General education aid. new text begin (a) new text end For fiscal years 2007 new text begin 2013 new text end and later new text begin 2014 only new text end , 33.26a district's general education aid is the sum of the following amounts: 33.27    (1) general education revenue, excluding equity revenue, total operating capital 33.28revenue, alternative teacher compensation revenue, and transition revenue; 33.29    (2) operating capital aid under section 126C.10, subdivision 13b; 33.30    (3) equity aid under section 126C.10, subdivision 30; 33.31    (4) alternative teacher compensation aid under section 126C.10, subdivision 36; 33.32    (5) transition aid under section 126C.10, subdivision 33; 33.33    (6) shared time aid under section 126C.01, subdivision 7; 33.34    (7) referendum aid under section 126C.17, subdivisions 7 and 7a; and 34.1    (8) online learning aid according to section 124D.096. 34.2 new text begin (b) For fiscal year 2015 and later, a district's general education aid equals: new text end 34.3 new text begin (1) general education revenue, excluding operating capital revenue, equity revenue, new text end 34.4 new text begin location equity revenue, and transition revenue, minus the student achievement levy, new text end 34.5 new text begin multiplied times the ratio of the actual amount of student achievement levy levied to the new text end 34.6 new text begin permitted student achievement levy; plus new text end 34.7 new text begin (2) equity aid under section 126C.10, subdivision 30; plus new text end 34.8 new text begin (3) transition aid under section 126C.10, subdivision 33; plus new text end 34.9 new text begin (4) shared time aid under section 126C.10, subdivision 7; plus new text end 34.10 new text begin (5) referendum aid under section 126C.17, subdivisions 7 and 7a; new text end 34.11 new text begin (6) online learning aid under section 124D.096; plus new text end 34.12 new text begin (7) location equity aid according to section 126C.10, subdivision 2d, paragraph (d). new text end 34.13    Sec. 5. Minnesota Statutes 2012, section 126C.17, is amended to read: 34.14126C.17 REFERENDUM REVENUE. 34.15    Subdivision 1. Referendum allowance. (a) For fiscal year 2003 and later, a district's 34.16initial referendum revenue allowance equals the sum of the allowance under section 34.17126C.16, subdivision 2, plus any additional allowance per resident marginal cost pupil 34.18unit authorized under subdivision 9 before May 1, 2001, for fiscal year 2002 and later, 34.19plus the referendum conversion allowance approved under subdivision 13, minus $415. 34.20For districts with more than one referendum authority, the reduction must be computed 34.21separately for each authority. The reduction must be applied first to the referendum 34.22conversion allowance and next to the authority with the earliest expiration date. A 34.23district's initial referendum revenue allowance may not be less than zero. 34.24(b) For fiscal year 2003, a district's referendum revenue allowance equals the initial 34.25referendum allowance plus any additional allowance per resident marginal cost pupil unit 34.26authorized under subdivision 9 between April 30, 2001, and December 30, 2001, for 34.27fiscal year 2003 and later. 34.28(c) For fiscal year 2004 and later, a district's referendum revenue allowance equals 34.29the sum of: 34.30(1) the product of (i) the ratio of the resident marginal cost pupil units the district 34.31would have counted for fiscal year 2004 under Minnesota Statutes 2002, section , 34.32to the district's resident marginal cost pupil units for fiscal year 2004, times (ii) the initial 34.33referendum allowance plus any additional allowance per resident marginal cost pupil unit 34.34authorized under subdivision 9 between April 30, 2001, and May 30, 2003, for fiscal 34.35year 2003 and later, plus 35.1(2) any additional allowance per resident marginal cost pupil unit authorized under 35.2subdivision 9 after May 30, 2003, for fiscal year 2005 and later. 35.3 new text begin (a) A district's initial referendum allowance for fiscal year 2015 equals the result of new text end 35.4 new text begin the following calculations: new text end 35.5 new text begin (1) multiply the referendum allowance the district would have received for fiscal new text end 35.6 new text begin year 2015 under Minnesota Statutes 2012, section 126C.17, subdivision 1, based on new text end 35.7 new text begin elections held before July 1, 2013, by the resident marginal cost pupil units the district new text end 35.8 new text begin would have counted for fiscal year 2015 under Minnesota Statutes 2012, section 126C.05; new text end 35.9 new text begin (2) add to the result of clause (1) the adjustment the district would have received new text end 35.10 new text begin under Minnesota Statutes 2012, section 127A.47, subdivision 7, paragraphs (a), (b), and new text end 35.11 new text begin (c), based on elections held before July 1, 2013; new text end 35.12 new text begin (3) divide the result of clause (2) by the district's adjusted pupil units for fiscal new text end 35.13 new text begin year 2015; and new text end 35.14 new text begin (4) if the result of clause (3) is less than zero, set the allowance to zero. new text end 35.15 new text begin (b) A district's referendum allowance equals the sum of the district's initial new text end 35.16 new text begin referendum allowance for fiscal year 2015, plus any additional referendum allowance per new text end 35.17 new text begin adjusted pupil unit authorized after June 30, 2013, minus (i) the location equity revenue new text end 35.18 new text begin subtraction, and (ii) any allowances expiring in fiscal year 2016 or later, provided that new text end 35.19 new text begin the allowance may not be less than zero. For a district with more than one referendum new text end 35.20 new text begin allowance for fiscal year 2015 under Minnesota Statutes 2012, section 126C.17, the new text end 35.21 new text begin allowance calculated under paragraph (a) must be divided into components such that the new text end 35.22 new text begin same percentage of the district's allowance expires at the same time as the old allowances new text end 35.23 new text begin would have expired under Minnesota Statutes 2012, section 126C.17. new text end 35.24 new text begin (c) For purposes of this subdivision, a district's location equity revenue subtraction new text end 35.25 new text begin equals $424 for a district receiving location equity revenue under section 126C.10, new text end 35.26 new text begin subdivision 2d, paragraph (a), $212 for a district receiving location equity revenue under new text end 35.27 new text begin section 126C.10, subdivision 2d, paragraph (b), and zero for all other school districts. new text end 35.28    Subd. 2. Referendum allowance limit. (a) Notwithstanding subdivision 1, for fiscal 35.29year 2007 new text begin 2015 new text end and later, a district's referendum allowance must not exceed the greater of: 35.30(1) the sum of: (i) a district's referendum allowance for fiscal year 1994 times 1.177 35.31times the annual inflationary increase as calculated under paragraph (b) plus (ii) its 35.32referendum conversion allowance for fiscal year 2003, minus (iii) $215; 35.33(2) the greater of (i): 26 percent of the formula allowance or (ii) $1,294 times the 35.34annual inflationary increase as calculated under paragraph (b); or new text begin times the greatest of: new text end 35.35 new text begin (1) $1,845; new text end 36.1 new text begin (2) the sum of the referendum revenue the district would have received for fiscal new text end 36.2 new text begin year 2015 under Minnesota Statutes 2012, section 126C.17, subdivision 4, based on new text end 36.3 new text begin elections held before July 1, 2013, and the adjustment the district would have received new text end 36.4 new text begin under Minnesota Statutes 2012, section 127A.47, subdivision 7, paragraphs (a), (b), and new text end 36.5 new text begin (c), based on elections held before July 1, 2013, divided by the district's adjusted pupil new text end 36.6 new text begin units for fiscal year 2015; or new text end 36.7 new text begin (3) the product of the referendum allowance limit the district would have received new text end 36.8 new text begin for fiscal year 2015 under Minnesota Statutes 2012, section 126C.17, subdivision 2, and new text end 36.9 new text begin the resident marginal cost pupil units the district would have received for fiscal year 2015 new text end 36.10 new text begin under Minnesota Statutes 2012, section 126C.05, subdivision 6, plus the adjustment the new text end 36.11 new text begin district would have received under Minnesota Statutes 2012, section 127A.47, subdivision new text end 36.12 new text begin 7, paragraphs (a), (b), and (c), based on elections held before July 1, 2013, divided by new text end 36.13 new text begin the district's adjusted pupil units for fiscal year 2015; minus $424 for a district receiving new text end 36.14 new text begin location equity revenue under section 126C.10, subdivision 2d, paragraph (a), minus new text end 36.15 new text begin $212 for a district receiving location equity revenue under section 126C.10, subdivision new text end 36.16 new text begin 2d, paragraph (b), or new text end 36.17(3) new text begin (4) new text end for a newly reorganized district created after July 1, 2006 new text begin 2013 new text end , the referendum 36.18revenue authority for each reorganizing district in the year preceding reorganization divided 36.19by its resident marginal cost new text begin adjusted new text end pupil units for the year preceding reorganization. 36.20(b) For purposes of this subdivision, for fiscal year 2005 new text begin 2016 new text end and later, "inflationary 36.21increase" means one plus the percentage change in the Consumer Price Index for urban 36.22consumers, as prepared by the United States Bureau of Labor Standards, for the current 36.23fiscal year to fiscal year 2004 new text begin 2015 new text end . For fiscal years 2009 new text begin year 2016 new text end and later, for purposes 36.24of paragraph (a), clause (1) new text begin (3) new text end , the inflationary increase equals the inflationary increase 36.25for fiscal year 2008 plus one-fourth of the percentage increase in the formula allowance 36.26for that year compared with the formula allowance for fiscal year 2008 new text begin 2015 new text end . 36.27    Subd. 3. Sparsity exception. A district that qualifies for sparsity revenue under 36.28section 126C.10 is not subject to a referendum allowance limit. 36.29    Subd. 4. Total referendum revenue. The total referendum revenue for each district 36.30equals the district's referendum allowance times the resident marginal cost new text begin adjusted new text end pupil 36.31units for the school year. 36.32    Subd. 5. Referendum equalization revenue. (a) For fiscal year 2003 and later, 36.33 A district's referendum equalization revenue equals the sum of the first tier referendum 36.34equalization revenue and the second tier referendum equalization revenue new text begin , and the third new text end 36.35 new text begin tier referendum equalization revenue new text end . 37.1(b) A district's first tier referendum equalization revenue equals the district's first 37.2tier referendum equalization allowance times the district's resident marginal cost new text begin adjusted new text end 37.3 pupil units for that year. 37.4(c) For fiscal year 2006, a district's first tier referendum equalization allowance 37.5equals the lesser of the district's referendum allowance under subdivision 1 or $500. For 37.6fiscal year 2007, a district's first tier referendum equalization allowance equals the lesser 37.7of the district's referendum allowance under subdivision 1 or $600. 37.8For fiscal year 2008 and later, A district's first tier referendum equalization allowance 37.9equals the lesser of the district's referendum allowance under subdivision 1 or $700 new text begin $300 new text end . 37.10(d) A district's second tier referendum equalization revenue equals the district's 37.11second tier referendum equalization allowance times the district's resident marginal cost 37.12 new text begin adjusted new text end pupil units for that year. 37.13(e) For fiscal year 2006, a district's second tier referendum equalization allowance 37.14equals the lesser of the district's referendum allowance under subdivision 1 or 18.6 37.15percent of the formula allowance, minus the district's first tier referendum equalization 37.16allowance. For fiscal year 2007 and later, A district's second tier referendum equalization 37.17allowance equals the lesser of the district's referendum allowance under subdivision 1 37.18or 26 percent of the formula allowance new text begin $760 new text end , minus the district's first tier referendum 37.19equalization allowance. 37.20(f) Notwithstanding paragraph (e), the second tier referendum allowance for a 37.21district qualifying for secondary sparsity revenue under section 126C.10, subdivision 7, or 37.22elementary sparsity revenue under section 126C.10, subdivision 8, equals the district's 37.23referendum allowance under subdivision 1 minus the district's first tier referendum 37.24equalization allowance. new text begin A district's third tier referendum equalization revenue equals the new text end 37.25 new text begin district's third tier referendum equalization allowance times the district's adjusted pupil new text end 37.26 new text begin units for that year. new text end 37.27 new text begin (g) A district's third tier referendum equalization allowance equals the lesser of new text end 37.28 new text begin the district's referendum allowance under subdivision 1 or 25 percent of the formula new text end 37.29 new text begin allowance, minus the sum of the district's first tier referendum equalization allowance and new text end 37.30 new text begin second tier referendum equalization allowance. new text end 37.31 new text begin (h) Notwithstanding paragraph (g), the third tier referendum allowance for a district new text end 37.32 new text begin qualifying for secondary sparsity revenue under section 126C.10, subdivision 7, or new text end 37.33 new text begin elementary sparsity revenue under section 126C.10, subdivision 8, equals the district's new text end 37.34 new text begin referendum allowance under subdivision 1 minus the sum of the district's first tier new text end 37.35 new text begin referendum equalization allowance and second tier referendum equalization allowance. new text end 38.1    Subd. 6. Referendum equalization levy. (a) For fiscal year 2003 and later, 38.2a district's referendum equalization levy equals the sum of the first tier referendum 38.3equalization levy and the second tier referendum equalization levy new text begin , and the third tier new text end 38.4 new text begin referendum equalization levy new text end . 38.5(b) A district's first tier referendum equalization levy equals the district's first tier 38.6referendum equalization revenue times the lesser of one or the ratio of the district's 38.7referendum market value per resident marginal cost pupil unit to $476,000 new text begin $880,000 new text end . 38.8(c) A district's second tier referendum equalization levy equals the district's second 38.9tier referendum equalization revenue times the lesser of one or the ratio of the district's 38.10referendum market value per resident marginal cost pupil unit to $270,000 new text begin $510,000 new text end . 38.11 new text begin (d) A district's third tier referendum equalization levy equals the district's third new text end 38.12 new text begin tier referendum equalization revenue times the lesser of one or the ratio of the district's new text end 38.13 new text begin referendum market value per resident pupil unit to $290,000. new text end 38.14    Subd. 7. Referendum equalization aid. (a) A district's referendum equalization aid 38.15equals the difference between its referendum equalization revenue and levy. 38.16(b) If a district's actual levy for first or new text begin , new text end second new text begin , or third new text end tier referendum equalization 38.17revenue is less than its maximum levy limit for that tier, aid shall be proportionately 38.18reduced. 38.19(c) Notwithstanding paragraph (a), the referendum equalization aid for a district, 38.20where the referendum equalization aid under paragraph (a) exceeds 90 percent of the 38.21referendum revenue, must not exceed 26 new text begin 25 new text end percent of the formula allowance times the 38.22district's resident marginal cost new text begin adjusted new text end pupil units. A district's referendum levy is 38.23increased by the amount of any reduction in referendum aid under this paragraph. 38.24    Subd. 7a. Referendum tax base replacement aid. For each school district that 38.25had a referendum allowance for fiscal year 2002 exceeding $415, for each separately 38.26authorized referendum levy, the commissioner of revenue, in consultation with the 38.27commissioner of education, shall certify the amount of the referendum levy in taxes 38.28payable year 2001 attributable to the portion of the referendum allowance exceeding $415 38.29levied against property classified as class 2, noncommercial 4c(1), or 4c(4), under section 38.30273.13 , excluding the portion of the tax paid by the portion of class 2a property consisting 38.31of the house, garage, and surrounding one acre of land. The resulting amount must be 38.32used to reduce the district's referendum levy amount otherwise determined, and must be 38.33paid to the district each year that the referendum authority remains in effect, is renewed, 38.34or new referendum authority is approved. The aid payable under this subdivision must 38.35be subtracted from the district's referendum equalization aid under subdivision 7. The 38.36referendum equalization aid after the subtraction must not be less than zero. 39.1     new text begin Subd. 7b. new text end new text begin Referendum aid guarantee. new text end new text begin (a) Notwithstanding subdivision 7, a new text end 39.2 new text begin district's referendum equalization aid for fiscal year 2015 must not be less than the sum new text end 39.3 new text begin of the referendum equalization aid the district would have received for fiscal year 2015 new text end 39.4 new text begin under Minnesota Statutes 2012, section 126C.17, subdivision 7, and the adjustment the new text end 39.5 new text begin district would have received under Minnesota Statutes 2012, section 127A.47, subdivision new text end 39.6 new text begin 7, paragraphs (a), (b), and (c). new text end 39.7 new text begin (b) Notwithstanding subdivision 7, referendum equalization aid for fiscal year 2016 new text end 39.8 new text begin and later, for a district qualifying for additional aid under paragraph (a) for fiscal year new text end 39.9 new text begin 2015, must not be less than the product of (1) the district's referendum equalization aid new text end 39.10 new text begin for fiscal year 2015, times (2) the lesser of one or the ratio of the district's referendum new text end 39.11 new text begin revenue for that school year to the district's referendum revenue for fiscal year 2015, times new text end 39.12 new text begin (3) the lesser of one or the ratio of the district's referendum market value used for fiscal new text end 39.13 new text begin year 2015 referendum equalization calculations to the district's referendum market value new text end 39.14 new text begin used for that year's referendum equalization calculations. new text end 39.15    Subd. 8. Unequalized referendum levy. Each year, a district may levy an amount 39.16equal to the difference between its total referendum revenue according to subdivision 4 39.17and its referendum equalization revenue according to subdivision 5. 39.18    Subd. 9. Referendum revenue. (a) The revenue authorized by section 126C.10, 39.19subdivision 1 , may be increased in the amount approved by the voters of the district 39.20at a referendum called for the purpose. The referendum may be called by the board. 39.21The referendum must be conducted one or two calendar years before the increased levy 39.22authority, if approved, first becomes payable. Only one election to approve an increase 39.23may be held in a calendar year. Unless the referendum is conducted by mail under 39.24subdivision 11, paragraph (a), the referendum must be held on the first Tuesday after the 39.25first Monday in November. The ballot must state the maximum amount of the increased 39.26revenue per resident marginal cost new text begin adjusted new text end pupil unit. The ballot may state a schedule, 39.27determined by the board, of increased revenue per resident marginal cost new text begin adjusted new text end pupil 39.28unit that differs from year to year over the number of years for which the increased revenue 39.29is authorized or may state that the amount shall increase annually by the rate of inflation. 39.30For this purpose, the rate of inflation shall be the annual inflationary increase calculated 39.31under subdivision 2, paragraph (b). The ballot may state that existing referendum levy 39.32authority is expiring. In this case, the ballot may also compare the proposed levy authority 39.33to the existing expiring levy authority, and express the proposed increase as the amount, if 39.34any, over the expiring referendum levy authority. The ballot must designate the specific 39.35number of years, not to exceed ten, for which the referendum authorization applies. The 39.36ballot, including a ballot on the question to revoke or reduce the increased revenue amount 40.1under paragraph (c), must abbreviate the term "per resident marginal cost new text begin adjusted new text end pupil 40.2unit" as "per pupil." The notice required under section 275.60 may be modified to read, in 40.3cases of renewing existing levies at the same amount per pupil as in the previous year: 40.4"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING 40.5TO EXTEND AN EXISTING PROPERTY TAX REFERENDUM THAT IS 40.6SCHEDULED TO EXPIRE." 40.7    The ballot may contain a textual portion with the information required in this 40.8subdivision and a question stating substantially the following: 40.9    "Shall the increase in the revenue proposed by (petition to) the board of ........., 40.10School District No. .., be approved?" 40.11    If approved, an amount equal to the approved revenue per resident marginal cost 40.12 new text begin adjusted new text end pupil unit times the resident marginal cost new text begin adjusted new text end pupil units for the school 40.13year beginning in the year after the levy is certified shall be authorized for certification 40.14for the number of years approved, if applicable, or until revoked or reduced by the voters 40.15of the district at a subsequent referendum. 40.16    (b) The board must prepare and deliver by first class mail at least 15 days but no more 40.17than 30 days before the day of the referendum to each taxpayer a notice of the referendum 40.18and the proposed revenue increase. The board need not mail more than one notice to any 40.19taxpayer. For the purpose of giving mailed notice under this subdivision, owners must be 40.20those shown to be owners on the records of the county auditor or, in any county where 40.21tax statements are mailed by the county treasurer, on the records of the county treasurer. 40.22Every property owner whose name does not appear on the records of the county auditor 40.23or the county treasurer is deemed to have waived this mailed notice unless the owner 40.24has requested in writing that the county auditor or county treasurer, as the case may be, 40.25include the name on the records for this purpose. The notice must project the anticipated 40.26amount of tax increase in annual dollars for typical residential homesteads, agricultural 40.27homesteads, apartments, and commercial-industrial property within the school district. 40.28    The notice for a referendum may state that an existing referendum levy is expiring 40.29and project the anticipated amount of increase over the existing referendum levy in 40.30the first year, if any, in annual dollars for typical residential homesteads, agricultural 40.31homesteads, apartments, and commercial-industrial property within the district. 40.32    The notice must include the following statement: "Passage of this referendum will 40.33result in an increase in your property taxes." However, in cases of renewing existing levies, 40.34the notice may include the following statement: "Passage of this referendum extends an 40.35existing operating referendum at the same amount per pupil as in the previous year." 41.1    (c) A referendum on the question of revoking or reducing the increased revenue 41.2amount authorized pursuant to paragraph (a) may be called by the board. A referendum to 41.3revoke or reduce the revenue amount must state the amount per resident marginal cost 41.4pupil unit by which the authority is to be reduced. Revenue authority approved by the 41.5voters of the district pursuant to paragraph (a) must be available to the school district at 41.6least once before it is subject to a referendum on its revocation or reduction for subsequent 41.7years. Only one revocation or reduction referendum may be held to revoke or reduce 41.8referendum revenue for any specific year and for years thereafter. 41.9    (d) The approval of 50 percent plus one of those voting on the question is required to 41.10pass a referendum authorized by this subdivision. 41.11    (e) At least 15 days before the day of the referendum, the district must submit a 41.12copy of the notice required under paragraph (b) to the commissioner and to the county 41.13auditor of each county in which the district is located. Within 15 days after the results 41.14of the referendum have been certified by the board, or in the case of a recount, the 41.15certification of the results of the recount by the canvassing board, the district must notify 41.16the commissioner of the results of the referendum. 41.17     new text begin Subd. 9a. new text end new text begin Board-approved referendum allowance. new text end new text begin Notwithstanding subdivision new text end 41.18 new text begin 9, a school district may convert up to $300 per adjusted pupil unit of referendum authority new text end 41.19 new text begin from voter approved to board approved by a board vote. A district with less than $300 new text end 41.20 new text begin per adjusted pupil unit of referendum authority may authorize new referendum authority new text end 41.21 new text begin up to the difference between $300 per adjusted pupil unit and the district's referendum new text end 41.22 new text begin authority. The board may authorize this levy for up to five years and may subsequently new text end 41.23 new text begin reauthorize that authority in increments of up to five years. new text end 41.24    Subd. 10. School referendum levy; market value. A school referendum levy must 41.25be levied against the referendum market value of all taxable property as defined in section 41.26126C.01, subdivision 3 . Any referendum levy amount subject to the requirements of this 41.27subdivision must be certified separately to the county auditor under section 275.07. 41.28    Subd. 11. Referendum date. (a) Except for a referendum held under paragraph (b), 41.29any referendum under this section held on a day other than the first Tuesday after the first 41.30Monday in November must be conducted by mail in accordance with section 204B.46. 41.31Notwithstanding subdivision 9, paragraph (b), to the contrary, in the case of a referendum 41.32conducted by mail under this paragraph, the notice required by subdivision 9, paragraph (b), 41.33must be prepared and delivered by first-class mail at least 20 days before the referendum. 41.34(b) In addition to the referenda allowed in subdivision 9, clause (a), the commissioner 41.35may grant authority to a district to hold a referendum on a different day if the district is in 42.1statutory operating debt and has an approved plan or has received an extension from the 42.2department to file a plan to eliminate the statutory operating debt. 42.3(c) The commissioner must approve, deny, or modify each district's request for a 42.4referendum levy on a different day within 60 days of receiving the request from a district. 42.5    Subd. 13. Referendum conversion allowance. A school district that received 42.6supplemental or transition revenue in fiscal year 2002 may convert its supplemental 42.7revenue conversion allowance and transition revenue conversion allowance to additional 42.8referendum allowance under subdivision 1 for fiscal year 2003 and thereafter. A majority 42.9of the school board must approve the conversion at a public meeting before November 1, 42.102001. For a district with other referendum authority, the referendum conversion allowance 42.11approved by the board continues until the portion of the district's other referendum 42.12authority with the earliest expiration date after June 30, 2006, expires. For a district 42.13with no other referendum authority, the referendum conversion allowance approved by 42.14the board continues until June 30, 2012. 42.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for revenue for fiscal year 2015 new text end 42.16 new text begin and later. new text end 42.17    Sec. 6. new text begin OPERATING REFERENDUM FREEZE, FISCAL YEAR 2015. new text end 42.18 new text begin (a) Notwithstanding Minnesota Statutes, section 126C.17, subdivision 9, a school new text end 42.19 new text begin district may not authorize an increase to its operating referendum in fiscal year 2015. A new text end 42.20 new text begin school district may reauthorize an operating referendum that is expiring in fiscal year 2015. new text end 42.21 new text begin (b) Paragraph (a) shall not apply to a district if, prior to June 30, 2013, the board new text end 42.22 new text begin adopted a resolution to conduct a referendum in 2013. new text end 42.23 new text begin (c) Paragraph (a) shall not apply to a district if the district did not authorize an new text end 42.24 new text begin operating referendum in fiscal year 2014. new text end 42.25 new text begin (d) Paragraph (a) shall not apply to a district if the district is in statutory operating new text end 42.26 new text begin debt under Minnesota Statutes, section 123B.81, as of June 30, 2013, and has an approved new text end 42.27 new text begin plan with the Department of Education. new text end 42.28ARTICLE 4 42.29PROPERTY TAXES 42.30    Section 1. Minnesota Statutes 2012, section 103B.102, subdivision 3, is amended to 42.31read: 42.32    Subd. 3. Evaluation and report. The Board of Water and Soil Resources shall 42.33evaluate performance, financial, and activity information for each local water management 42.34entity. The board shall evaluate the entities' progress in accomplishing their adopted plans 43.1on a regular basis new text begin as determined by the board based on budget and operations of the local new text end 43.2 new text begin water management entity new text end , but not less than once every five new text begin ten new text end years. The board shall 43.3maintain a summary of local water management entity performance on the board's Web site. 43.4Beginning February 1, 2008, and annually thereafter, the board shall provide an analysis 43.5of local water management entity performance to the chairs of the house of representatives 43.6and senate committees having jurisdiction over environment and natural resources policy. 43.7    Sec. 2. Minnesota Statutes 2012, section 103B.335, is amended to read: 43.8103B.335 TAX LEVY AUTHORITY. 43.9    Subdivision 1. Local water planning and management. The governing body of 43.10any county, municipality, or township may levy a tax in an amount required to implement 43.11sections 103B.301 to 103B.355 new text begin or a comprehensive watershed management plan as new text end 43.12 new text begin defined in section 103B.3363 new text end . 43.13    Subd. 2. Priority programs; conservation and watershed districts. A county 43.14may levy amounts necessary to pay the reasonable increased costs to soil and water 43.15conservation districts and watershed districts of administering and implementing priority 43.16programs identified in an approved and adopted plan new text begin or a comprehensive watershed new text end 43.17 new text begin management plan as defined in section 103B.3363 new text end . 43.18    Sec. 3. Minnesota Statutes 2012, section 103B.3369, subdivision 5, is amended to read: 43.19    Subd. 5. Financial assistance. A base grant may be awarded to a county that 43.20provides a match utilizing a water implementation tax or other local source. A water 43.21implementation tax that a county intends to use as a match to the base grant must be 43.22levied at a rate new text begin sufficient to generate a minimum amount new text end determined by the board. 43.23The board may award performance-based grants to local units of government that are 43.24responsible for implementing elements of applicable portions of watershed management 43.25plans, comprehensive plans, local water management plans, or comprehensive watershed 43.26management plans, developed or amended, adopted and approved, according to chapter 43.27103B, 103C, or 103D. Upon request by a local government unit, the board may also 43.28award performance-based grants to local units of government to carry out TMDL 43.29implementation plans as provided in chapter 114D, if the TMDL implementation plan has 43.30been incorporated into the local water management plan according to the procedures for 43.31approving comprehensive plans, watershed management plans, local water management 43.32plans, or comprehensive watershed management plans under chapter 103B, 103C, or 43.33103D, or if the TMDL implementation plan has undergone a public review process. 43.34Notwithstanding section 16A.41, the board may award performance-based grants on an 44.1advanced basis. new text begin The fee authorized in section 40A.152 may be used as a local match new text end 44.2 new text begin or as a supplement to state funding to accomplish implementation of comprehensive new text end 44.3 new text begin plans, watershed management plans, local water management plans, or comprehensive new text end 44.4 new text begin watershed management plans under chapter 103B, 103C, or 103D. new text end 44.5    Sec. 4. Minnesota Statutes 2012, section 103C.501, subdivision 4, is amended to read: 44.6    Subd. 4. Cost-sharing funds. (a) The state board shall allocate at least 70 percent 44.7of cost-sharing funds to areas with high priority erosion, sedimentation, or water quality 44.8problems or water quantity problems due to altered hydrology. The areas must be selected 44.9based on the statewide priorities established by the state board. 44.10     new text begin (b) new text end The allocated funds must be used for conservation practices for high priority 44.11problems identified in the comprehensive and annual work plans of the districts new text begin , for new text end 44.12 new text begin the technical assistance portion of the grant funds to leverage federal or other nonstate new text end 44.13 new text begin funds, or to address high-priority needs identified in local water management plans or new text end 44.14 new text begin comprehensive watershed management plans new text end . 44.15    (b) The remaining cost-sharing funds may be allocated to districts as follows: 44.16    (1) for technical and administrative assistance, not more than 20 percent of the 44.17funds; and 44.18    (2) for conservation practices for lower priority erosion, sedimentation, or water 44.19quality problems. 44.20    Sec. 5. Minnesota Statutes 2012, section 103F.405, subdivision 1, is amended to read: 44.21    Subdivision 1. Authority. Each statutory or home rule charter city, town, or 44.22county that has planning and zoning authority under sections 366.10 to 366.19, 394.21 44.23to 394.37, or 462.351 to 462.365 is encouraged to adopt a soil loss ordinance. The soil 44.24loss ordinance must use the soil loss tolerance for each soil series described in the United 44.25States Soil new text begin Natural Resources new text end Conservation Service Field Office Technical Guide new text begin , or new text end 44.26 new text begin another method approved by the Board of Water and Soil Resources, new text end to determine the 44.27soil loss limits, but the soil loss limits must be attainable by the best practicable soil 44.28conservation practice. Ordinances adopted by local governments within the metropolitan 44.29area defined in section must be consistent with local water management plans 44.30adopted under section new text begin a comprehensive plan, local water management plan, or new text end 44.31 new text begin watershed management plan developed or amended, adopted, and approved according new text end 44.32 new text begin to chapter 103B, 103C, or 103D new text end . 44.33    Sec. 6. Minnesota Statutes 2012, section 168.012, subdivision 9, is amended to read: 45.1    Subd. 9. Manufactured homes and park trailers. Manufactured homes and park 45.2trailers shall not be taxed as motor vehicles using the public streets and highways and shall 45.3be exempt from the motor vehicle tax provisions of this chapter. Except as provided in 45.4section 273.125, manufactured homes and park trailers shall be taxed as personal property. 45.5The provisions of Minnesota Statutes 1957, section 272.02 or any other act providing for 45.6tax exemption shall be inapplicable to manufactured homes and park trailers, except 45.7such manufactured homes as are held by a licensed dealer new text begin or limited dealer, as defined new text end 45.8 new text begin in section 327B.04, new text end and exempted as inventory new text begin under subdivision 9a new text end . Travel trailers not 45.9conspicuously displaying current registration plates on the property tax assessment date 45.10shall be taxed as manufactured homes if occupied as human dwelling places. 45.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2014 and new text end 45.12 new text begin thereafter. new text end 45.13    Sec. 7. Minnesota Statutes 2012, section 168.012, is amended by adding a subdivision 45.14to read: 45.15     new text begin Subd. 9a. new text end new text begin Manufactured home as dealer inventory. new text end new text begin Manufactured homes as new text end 45.16 new text begin defined in section 327.31, subdivision 6, shall be considered as dealer inventory, on the new text end 45.17 new text begin January 2 assessment date, if the home is: new text end 45.18 new text begin (1) listed as inventory and held by a licensed or limited dealer; new text end 45.19 new text begin (2) unoccupied and not available for rent; new text end 45.20 new text begin (3) connected or not connected to utilities when located in a manufactured home new text end 45.21 new text begin park; and new text end 45.22 new text begin (4) connected or not connected to utilities when located at a dealer's sales center. new text end 45.23 new text begin The exemption under this subdivision is allowable for up to five assessment years after new text end 45.24 new text begin the date a home is initially claimed as dealer inventory. new text end 45.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2014 and new text end 45.26 new text begin thereafter. new text end 45.27    Sec. 8. Minnesota Statutes 2012, section 270.41, subdivision 3, is amended to read: 45.28    Subd. 3. Licenses; refusal or revocation new text begin Assessor sanctions; refusal to license new text end . 45.29     new text begin (a) new text end The board may new text begin (i) new text end refuse to grant or renew, or may suspend or revoke, a license 45.30of an applicant or licensee new text begin , or (ii) censure, warn, or fine any licensed assessor, or any new text end 45.31 new text begin other person employed by an assessment jurisdiction or contracting with an assessment new text end 45.32 new text begin jurisdiction for the purpose of valuing or classifying property for property tax purposes, new text end 45.33 for any of the following causes or acts: 46.1    (1) failure to complete required training; 46.2    (2) inefficiency or neglect of duty; 46.3    (3) failure to comply with the Code of Conduct and Ethics for Licensed Minnesota 46.4Assessors adopted by the board pursuant to Laws 2005, First Special Session chapter 3, 46.5article 1, section 38; 46.6    (4) conviction of a crime involving moral turpitude; or 46.7 new text begin (5) failure to faithfully and fully perform his or her duties through malfeasance, new text end 46.8 new text begin misfeasance, or nonfeasance; or new text end 46.9    (5) new text begin (6) new text end any other cause or act that in the board's opinion warrants a refusal to issue 46.10or suspension or revocation of a license new text begin or the imposition of a sanction provided under new text end 46.11 new text begin this subdivision new text end . 46.12 new text begin (b) When appropriate for the level of infraction, a written warning must be given new text end 46.13 new text begin to assessors who have no prior identified infractions. The warning must identify the new text end 46.14 new text begin infraction and, as appropriate, detail future expectations of performance and behavior. new text end 46.15 new text begin Fines must not exceed $1,000 for the first occurrence and must not exceed $3,000 for each new text end 46.16 new text begin occurrence thereafter, and suspensions must not exceed one year for each occurrence, new text end 46.17 new text begin depending in each case upon the severity of the infraction and the level of negligence or new text end 46.18 new text begin intent. An action by the board to impose a sanction is subject to review in a contested new text end 46.19 new text begin case hearing under chapter 14. new text end 46.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning July 1, 2013. new text end 46.21    Sec. 9. Minnesota Statutes 2012, section 270.41, is amended by adding a subdivision 46.22to read: 46.23     new text begin Subd. 3a. new text end new text begin Report on disciplinary actions. new text end new text begin Each odd-numbered year, the board new text end 46.24 new text begin must publish a report detailing the number and types of disciplinary actions recommended new text end 46.25 new text begin by the commissioner of revenue under section 273.0645, subdivision 2, and the disposition new text end 46.26 new text begin of those recommendations by the board. The report must be presented to the house of new text end 46.27 new text begin representatives and senate committees with jurisdiction over property taxes by February 1 new text end 46.28 new text begin of each odd-numbered year. new text end 46.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning July 1, 2013. new text end 46.30    Sec. 10. Minnesota Statutes 2012, section 270.45, is amended to read: 46.31270.45 DISPOSITION OF FEES new text begin AND FINES new text end . 47.1    All fees new text begin and fines new text end so established and collected shall be paid to the commissioner of 47.2management and budget for deposit in the general fund. The expenses of carrying out the 47.3provisions of sections 270.41 to 270.50 shall be paid from appropriations made to the board. 47.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning July 1, 2013. new text end 47.5    Sec. 11. new text begin [270C.9901] ASSESSOR ACCREDITATION. new text end 47.6 new text begin Every individual who appraises or physically inspects real property for the purpose new text end 47.7 new text begin of determining its valuation or classification for property tax purposes must obtain new text end 47.8 new text begin licensure as an accredited Minnesota assessor from the State Board of Assessors by July 1, new text end 47.9 new text begin 2019, or within four years of that person having become licensed as a certified Minnesota new text end 47.10 new text begin assessor, whichever is later. new text end 47.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning January 1, 2014. new text end 47.12    Sec. 12. Minnesota Statutes 2012, section 272.02, subdivision 39, is amended to read: 47.13    Subd. 39. Economic development; public purpose. The holding of property by a 47.14political subdivision of the state for later resale for economic development purposes 47.15shall be considered a public purpose in accordance with subdivision 8 for a period not to 47.16exceed nine years, except that new text begin : new text end 47.17 new text begin (1) new text end for property located in a city of 5,000 new text begin 20,000 new text end population or under that is located 47.18outside of the metropolitan area as defined in section 473.121, subdivision 2, the period 47.19must not exceed 15 years. new text begin ; and new text end 47.20 new text begin (2) for any property that was acquired on or after January 1, 2000, and on or before new text end 47.21 new text begin December 31, 2010, and is located in a city, the period must not exceed 15 years. new text end 47.22The holding of property by a political subdivision of the state for later resale (1) 47.23which is purchased or held for housing purposes, or (2) which meets the conditions 47.24described in section 469.174, subdivision 10, shall be considered a public purpose in 47.25accordance with subdivision 8. 47.26The governing body of the political subdivision which acquires property which is 47.27subject to this subdivision shall after the purchase of the property certify to the city or 47.28county assessor whether the property is held for economic development purposes or 47.29housing purposes, or whether it meets the conditions of section 469.174, subdivision 10. 47.30If the property is acquired for economic development purposes and buildings or other 47.31improvements are constructed after acquisition of the property, and if more than one-half 47.32of the floor space of the buildings or improvements which is available for lease to or use 47.33by a private individual, corporation, or other entity is leased to or otherwise used by 48.1a private individual, corporation, or other entity the provisions of this subdivision shall 48.2not apply to the property. This subdivision shall not create an exemption from section 48.3272.01, subdivision 2 ; 272.68; 273.19; or 469.040, subdivision 3; or other provision of 48.4law providing for the taxation of or for payments in lieu of taxes for publicly held property 48.5which is leased, loaned, or otherwise made available and used by a private person. 48.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2013 and new text end 48.7 new text begin thereafter and for taxes payable in 2014 and thereafter. new text end 48.8    Sec. 13. Minnesota Statutes 2012, section 272.02, is amended by adding a subdivision 48.9to read: 48.10     new text begin Subd. 98. new text end new text begin Certain property owned by an Indian tribe. new text end new text begin (a) Property is exempt that: new text end 48.11 new text begin (1) was classified as 3a under section 273.13, subdivision 24, for taxes payable new text end 48.12 new text begin in 2013; new text end 48.13 new text begin (2) is located in a city of the first class with a population greater than 300,000 as of new text end 48.14 new text begin the 2010 federal census; new text end 48.15 new text begin (3) was on January 2, 2012, and is for the current assessment owned by a federally new text end 48.16 new text begin recognized Indian tribe, or its instrumentality, that is located within the state of Minnesota; new text end 48.17 new text begin and new text end 48.18 new text begin (4) is used exclusively for tribal purposes or institutions of purely public charity as new text end 48.19 new text begin defined in subdivision 7. new text end 48.20 new text begin (b) For purposes of this subdivision, a "tribal purpose" means a public purpose new text end 48.21 new text begin as defined in subdivision 8 and includes noncommercial tribal government activities. new text end 48.22 new text begin Property that qualifies for the exemption under this subdivision is limited to no more than new text end 48.23 new text begin two contiguous parcels and structures that do not exceed in the aggregate 20,000 square new text end 48.24 new text begin feet. Property acquired for single-family housing, market-rate apartments, agriculture, or new text end 48.25 new text begin forestry does not qualify for this exemption. The exemption created by this subdivision new text end 48.26 new text begin expires with taxes payable in 2024. new text end 48.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with taxes payable in 2014. new text end 48.28    Sec. 14. Minnesota Statutes 2012, section 272.02, is amended by adding a subdivision 48.29to read: 48.30     new text begin Subd. 99. new text end new text begin Electric generation facility; personal property. new text end new text begin (a) Notwithstanding new text end 48.31 new text begin subdivision 9, clause (a), and section 453.54, subdivision 20, attached machinery and new text end 48.32 new text begin other personal property which is part of an electric generation facility that exceeds five new text end 49.1 new text begin megawatts of installed capacity and meets the requirements of this subdivision is exempt. new text end 49.2 new text begin At the time of construction, the facility must be: new text end 49.3     new text begin (1) designed to utilize natural gas as a primary fuel; new text end 49.4     new text begin (2) owned and operated by a municipal power agency as defined in section 453.52, new text end 49.5 new text begin subdivision 8; new text end 49.6     new text begin (3) designed to utilize reciprocating engines paired with generators to produce new text end 49.7 new text begin electrical power; new text end 49.8     new text begin (4) located within the service territory of a municipal power agency's electrical new text end 49.9 new text begin municipal utility that serves load exclusively in a metropolitan county as defined in new text end 49.10 new text begin section 473.121, subdivision 4; and new text end 49.11 new text begin (5) designed to connect directly with a municipality's substation. new text end 49.12     new text begin (b) Construction of the facility must be commenced after June 1, 2013, and before new text end 49.13 new text begin June 1, 2017. Property eligible for this exemption does not include electric transmission new text end 49.14 new text begin lines and interconnections or gas pipelines and interconnections appurtenant to the new text end 49.15 new text begin property or the facility. new text end 49.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2013, taxes new text end 49.17 new text begin payable in 2014, and thereafter. new text end 49.18    Sec. 15. Minnesota Statutes 2012, section 273.061, subdivision 2, is amended to read: 49.19    Subd. 2. Term; vacancy. (a) The terms of county assessors appointed under this 49.20section shall be four years. A new term shall begin on January 1 of every fourth year 49.21after 1973. When any vacancy in the office occurs, the board of county commissioners, 49.22within 90 days thereafter, shall fill the same by appointment for the remainder of the term, 49.23following the procedure prescribed in subdivision 1. The term of the county assessor 49.24may be terminated by the board of county commissioners at any time, on charges of 49.25malfeasance, misfeasance, or nonfeasance by the commissioner of revenue. If the board 49.26of county commissioners does not intend to reappoint a county assessor who has been 49.27certified by the state Board of Assessors, the board shall present written notice to the 49.28county assessor not later than 90 days prior to the termination of the assessor's term, that it 49.29does not intend to reappoint the assessor. If written notice is not timely made, the county 49.30assessor will automatically be reappointed by the board of county commissioners. 49.31The commissioner of revenue may recommend to the state Board of Assessors the 49.32nonrenewal, suspension, or revocation of an assessor's license as provided in sections 49.33 to . 49.34(b) In the event of a vacancy in the office of county assessor, through death, 49.35resignation or other reasons, the deputy (or chief deputy, if more than one) shall perform 50.1the functions of the office. If there is no deputy, the county auditor shall designate a person 50.2to perform the duties of the office until an appointment is made as provided in clause (a). 50.3Such person shall perform the duties of the office for a period not exceeding 90 days 50.4during which the county board must appoint a county assessor. Such 90-day period may, 50.5however, be extended by written approval of the commissioner of revenue. 50.6(c) In the case of the first appointment under paragraph (a) of a county assessor who 50.7is accredited but who does not have senior accreditation, an approval of the appointment 50.8by the commissioner shall be provisional, provided that a county assessor appointed to 50.9a provisional term under this paragraph must reapply to the commissioner at the end of 50.10the provisional term. A provisional term may not exceed two years. The commissioner 50.11shall not approve the appointment for the remainder of the four-year term unless the 50.12assessor has obtained senior accreditation. 50.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning July 1, 2013. new text end 50.14    Sec. 16. Minnesota Statutes 2012, section 273.0645, is amended to read: 50.15273.0645 COMMISSIONER REVIEW OF LOCAL ASSESSMENT 50.16PRACTICES. 50.17     new text begin Subdivision 1. new text end new text begin Local assessment practices. new text end The commissioner of revenue must 50.18review the assessment practices in a taxing jurisdiction if requested in writing by a 50.19qualifying number of property owners in that taxing jurisdiction. The request must be 50.20signed by the greater of: 50.21    (1) ten percent of the registered voters who voted in the last general election; or 50.22    (2) five property owners. 50.23    The request must identify the city, town, or county and describe why a review is 50.24sought for that taxing jurisdiction. The commissioner must conduct the review in a 50.25reasonable amount of time and report the findings to the county board of the affected 50.26county, to the affected city council or town board, if the review is for a specific city or 50.27town, and to the property owner designated in the request as the person to receive the 50.28report on behalf of all the property owners who signed the request. The commissioner 50.29must also provide the report electronically to all property owners who signed the request 50.30and provided an e-mail address in order to receive the report electronically. 50.31     new text begin Subd. 2. new text end new text begin Nonfeasance, misfeasance, and malfeasance. new text end new text begin County assessors may file a new text end 50.32 new text begin written complaint with the commissioner of revenue detailing allegations of nonfeasance, new text end 50.33 new text begin misfeasance, or malfeasance by a local assessor. After receiving a complaint from a county new text end 50.34 new text begin assessor, the commissioner must complete an investigation and recommend an appropriate new text end 51.1 new text begin action to the State Board of Assessors. The commissioner is not required to have a written new text end 51.2 new text begin complaint from a county assessor in order to conduct an investigation and recommend an new text end 51.3 new text begin action to the board. Active investigative data relating to the investigation of complaints new text end 51.4 new text begin against an assessor by the commissioner of revenue are subject to section 13.39. new text end 51.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2013. new text end 51.6    Sec. 17. Minnesota Statutes 2012, section 273.117, is amended to read: 51.7273.117 CONSERVATION PROPERTY TAX VALUATION. 51.8    The value of real property which is subject to a conservation restriction or easement 51.9may be adjusted new text begin shall not be reduced new text end by the assessor if: 51.10    (a) the restriction or easement is for a conservation purpose as defined in section 51.1184.64, subdivision 2 , and is recorded on the property; new text begin and new text end 51.12    (b) the property is being used in accordance with the terms of the conservation 51.13restriction or easement. 51.14 new text begin This section does not apply to (1) conservation restrictions or easements covering new text end 51.15 new text begin riparian buffers along lakes, rivers, and streams that are used for water quantity or quality new text end 51.16 new text begin control; or (2) to easements in a county that has adopted, by referendum, a program to new text end 51.17 new text begin protect farmland and natural areas since 1999. new text end 51.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2013 and new text end 51.19 new text begin thereafter, and for taxes payable in 2014 and thereafter. new text end 51.20    Sec. 18. Minnesota Statutes 2012, section 273.13, subdivision 25, is amended to read: 51.21    Subd. 25. Class 4. (a) Class 4a is residential real estate containing four or more 51.22units and used or held for use by the owner or by the tenants or lessees of the owner 51.23as a residence for rental periods of 30 days or more, excluding property qualifying for 51.24class 4d. Class 4a also includes hospitals licensed under sections 144.50 to 144.56, other 51.25than hospitals exempt under section 272.02, and contiguous property used for hospital 51.26purposes, without regard to whether the property has been platted or subdivided. The 51.27market value of class 4a property has a class rate of 1.25 percent. 51.28    (b) Class 4b includes: 51.29    (1) residential real estate containing less than four units that does not qualify as class 51.304bb, other than seasonal residential recreational property; 51.31    (2) manufactured homes not classified under any other provision; 51.32    (3) a dwelling, garage, and surrounding one acre of property on a nonhomestead 51.33farm classified under subdivision 23, paragraph (b) containing two or three units; and 52.1    (4) unimproved property that is classified residential as determined under subdivision 52.233. 52.3    The market value of class 4b property has a class rate of 1.25 percent. 52.4    (c) Class 4bb includes: 52.5    (1) nonhomestead residential real estate containing one unit, other than seasonal 52.6residential recreational property; and 52.7    (2) a single family dwelling, garage, and surrounding one acre of property on a 52.8nonhomestead farm classified under subdivision 23, paragraph (b). 52.9    Class 4bb property has the same class rates as class 1a property under subdivision 22. 52.10    Property that has been classified as seasonal residential recreational property at 52.11any time during which it has been owned by the current owner or spouse of the current 52.12owner does not qualify for class 4bb. 52.13    (d) Class 4c property includes: 52.14    (1) except as provided in subdivision 22, paragraph (c), real and personal property 52.15devoted to commercial temporary and seasonal residential occupancy for recreation 52.16purposes, for not more than 250 days in the year preceding the year of assessment. For 52.17purposes of this clause, property is devoted to a commercial purpose on a specific day 52.18if any portion of the property is used for residential occupancy, and a fee is charged for 52.19residential occupancy. Class 4c property under this clause must contain three or more 52.20rental units. A "rental unit" is defined as a cabin, condominium, townhouse, sleeping room, 52.21or individual camping site equipped with water and electrical hookups for recreational 52.22vehicles. A camping pad offered for rent by a property that otherwise qualifies for class 52.234c under this clause is also class 4c under this clause regardless of the term of the rental 52.24agreement, as long as the use of the camping pad does not exceed 250 days. In order for a 52.25property to be classified under this clause, either (i) the business located on the property 52.26must provide recreational activities, at least 40 percent of the annual gross lodging receipts 52.27related to the property must be from business conducted during 90 consecutive days, 52.28and either (A) at least 60 percent of all paid bookings by lodging guests during the year 52.29must be for periods of at least two consecutive nights; or (B) at least 20 percent of the 52.30annual gross receipts must be from charges for providing recreational activities, or (ii) the 52.31business must contain 20 or fewer rental units, and must be located in a township or a city 52.32with a population of 2,500 or less located outside the metropolitan area, as defined under 52.33section 473.121, subdivision 2, that contains a portion of a state trail administered by the 52.34Department of Natural Resources. For purposes of item (i)(A), a paid booking of five or 52.35more nights shall be counted as two bookings. Class 4c property also includes commercial 52.36use real property used exclusively for recreational purposes in conjunction with other class 53.14c property classified under this clause and devoted to temporary and seasonal residential 53.2occupancy for recreational purposes, up to a total of two acres, provided the property is 53.3not devoted to commercial recreational use for more than 250 days in the year preceding 53.4the year of assessment and is located within two miles of the class 4c property with which 53.5it is used. In order for a property to qualify for classification under this clause, the owner 53.6must submit a declaration to the assessor designating the cabins or units occupied for 250 53.7days or less in the year preceding the year of assessment by January 15 of the assessment 53.8year. Those cabins or units and a proportionate share of the land on which they are located 53.9must be designated class 4c under this clause as otherwise provided. The remainder of the 53.10cabins or units and a proportionate share of the land on which they are located will be 53.11designated as class 3a. The owner of property desiring designation as class 4c property 53.12under this clause must provide guest registers or other records demonstrating that the units 53.13for which class 4c designation is sought were not occupied for more than 250 days in the 53.14year preceding the assessment if so requested. The portion of a property operated as a 53.15(1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5) other 53.16nonresidential facility operated on a commercial basis not directly related to temporary and 53.17seasonal residential occupancy for recreation purposes does not qualify for class 4c. For 53.18the purposes of this paragraph, "recreational activities" means renting ice fishing houses, 53.19boats and motors, snowmobiles, downhill or cross-country ski equipment; providing 53.20marina services, launch services, or guide services; or selling bait and fishing tackle; 53.21    (2) qualified property used as a golf course if: 53.22    (i) it is open to the public on a daily fee basis. It may charge membership fees or 53.23dues, but a membership fee may not be required in order to use the property for golfing, 53.24and its green fees for golfing must be comparable to green fees typically charged by 53.25municipal courses; and 53.26    (ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d). 53.27    A structure used as a clubhouse, restaurant, or place of refreshment in conjunction 53.28with the golf course is classified as class 3a property; 53.29    (3) real property up to a maximum of three acres of land owned and used by a 53.30nonprofit community service oriented organization and not used for residential purposes 53.31on either a temporary or permanent basis, provided that: 53.32    (i) the property is not used for a revenue-producing activity for more than six days 53.33in the calendar year preceding the year of assessment; or 53.34    (ii) the organization makes annual charitable contributions and donations at least 53.35equal to the property's previous year's property taxes and the property is allowed to be 54.1used for public and community meetings or events for no charge, as appropriate to the 54.2size of the facility. 54.3    For purposes of this clause: 54.4    (A) "charitable contributions and donations" has the same meaning as lawful 54.5gambling purposes under section 349.12, subdivision 25, excluding those purposes 54.6relating to the payment of taxes, assessments, fees, auditing costs, and utility payments; 54.7    (B) "property taxes" excludes the state general tax; 54.8    (C) a "nonprofit community service oriented organization" means any corporation, 54.9society, association, foundation, or institution organized and operated exclusively for 54.10charitable, religious, fraternal, civic, or educational purposes, and which is exempt from 54.11federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal 54.12Revenue Code; and 54.13    (D) "revenue-producing activities" shall include but not be limited to property or that 54.14portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt 54.15liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling 54.16alley, a retail store, gambling conducted by organizations licensed under chapter 349, an 54.17insurance business, or office or other space leased or rented to a lessee who conducts a 54.18for-profit enterprise on the premises. 54.19    Any portion of the property not qualifying under either item (i) or (ii) is class 3a. 54.20The use of the property for social events open exclusively to members and their guests 54.21for periods of less than 24 hours, when an admission is not charged nor any revenues are 54.22received by the organization shall not be considered a revenue-producing activity. 54.23    The organization shall maintain records of its charitable contributions and donations 54.24and of public meetings and events held on the property and make them available upon 54.25request any time to the assessor to ensure eligibility. An organization meeting the 54.26requirement under item (ii) must file an application by May 1 with the assessor for 54.27eligibility for the current year's assessment. The commissioner shall prescribe a uniform 54.28application form and instructions; 54.29    (4) postsecondary student housing of not more than one acre of land that is owned by 54.30a nonprofit corporation organized under chapter 317A and is used exclusively by a student 54.31cooperative, sorority, or fraternity for on-campus housing or housing located within two 54.32miles of the border of a college campus; 54.33    (5)(i) manufactured home parks as defined in section 327.14, subdivision 3, 54.34excluding manufactured home parks described in section 273.124, subdivision 3a, and (ii) 54.35manufactured home parks as defined in section 327.14, subdivision 3, that are described in 54.36section 273.124, subdivision 3a; 55.1    (6) real property that is actively and exclusively devoted to indoor fitness, health, 55.2social, recreational, and related uses, is owned and operated by a not-for-profit corporation, 55.3and is located within the metropolitan area as defined in section 473.121, subdivision 2; 55.4    (7) a leased or privately owned noncommercial aircraft storage hangar not exempt 55.5under section 272.01, subdivision 2, and the land on which it is located, provided that: 55.6    (i) the land is on an airport owned or operated by a city, town, county, Metropolitan 55.7Airports Commission, or group thereof; and 55.8    (ii) the land lease, or any ordinance or signed agreement restricting the use of the 55.9leased premise, prohibits commercial activity performed at the hangar. 55.10    If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must 55.11be filed by the new owner with the assessor of the county where the property is located 55.12within 60 days of the sale; 55.13    (8) a privately owned noncommercial aircraft storage hangar not exempt under 55.14section 272.01, subdivision 2, and the land on which it is located, provided that: 55.15    (i) the land abuts a public airport; and 55.16    (ii) the owner of the aircraft storage hangar provides the assessor with a signed 55.17agreement restricting the use of the premises, prohibiting commercial use or activity 55.18performed at the hangar; and 55.19    (9) residential real estate, a portion of which is used by the owner for homestead 55.20purposes, and that is also a place of lodging, if all of the following criteria are met: 55.21    (i) rooms are provided for rent to transient guests that generally stay for periods 55.22of 14 or fewer days; 55.23    (ii) meals are provided to persons who rent rooms, the cost of which is incorporated 55.24in the basic room rate; 55.25    (iii) meals are not provided to the general public except for special events on fewer 55.26than seven days in the calendar year preceding the year of the assessment; and 55.27    (iv) the owner is the operator of the property. 55.28    The market value subject to the 4c classification under this clause is limited to 55.29five rental units. Any rental units on the property in excess of five, must be valued and 55.30assessed as class 3a. The portion of the property used for purposes of a homestead by the 55.31owner must be classified as class 1a property under subdivision 22; 55.32    (10) real property up to a maximum of three acres and operated as a restaurant 55.33as defined under section 157.15, subdivision 12, provided it: (A) is located on a lake 55.34as defined under section 103G.005, subdivision 15, paragraph (a), clause (3); and (B) 55.35is either devoted to commercial purposes for not more than 250 consecutive days, or 55.36receives at least 60 percent of its annual gross receipts from business conducted during 56.1four consecutive months. Gross receipts from the sale of alcoholic beverages must be 56.2included in determining the property's qualification under subitem (B). The property's 56.3primary business must be as a restaurant and not as a bar. Gross receipts from gift shop 56.4sales located on the premises must be excluded. Owners of real property desiring 4c 56.5classification under this clause must submit an annual declaration to the assessor by 56.6February 1 of the current assessment year, based on the property's relevant information for 56.7the preceding assessment year; 56.8(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used 56.9as a marina, as defined in section 86A.20, subdivision 5, which is made accessible to 56.10the public and devoted to recreational use for marina services. The marina owner must 56.11annually provide evidence to the assessor that it provides services, including lake or river 56.12access to the public by means of an access ramp or other facility that is either located on 56.13the property of the marina or at a publicly owned site that abuts the property of the marina. 56.14No more than 800 feet of lakeshore may be included in this classification. Buildings used 56.15in conjunction with a marina for marina services, including but not limited to buildings 56.16used to provide food and beverage services, fuel, boat repairs, or the sale of bait or fishing 56.17tackle, are classified as class 3a property; and 56.18(12) real and personal property devoted to noncommercial temporary and seasonal 56.19residential occupancy for recreation purposes. 56.20    Class 4c property has a class rate of 1.5 percent of market value, except that (i) each 56.21parcel of noncommercial seasonal residential recreational property under clause (12) 56.22has the same class rates as class 4bb property, (ii) manufactured home parks assessed 56.23under clause (5), item (i), have the same class rate as class 4b property, and the market 56.24value of manufactured home parks assessed under clause (5), item (ii), has the same class 56.25rate as class 4d property if more than 50 percent of the lots in the park are occupied by 56.26shareholders in the cooperative corporation or association and a class rate of one percent if 56.2750 percent or less of the lots are so occupied, (iii) commercial-use seasonal residential 56.28recreational property and marina recreational land as described in clause (11), has a 56.29class rate of one percent for the first $500,000 of market value, and 1.25 percent for the 56.30remaining market value, (iv) the market value of property described in clause (4) has a 56.31class rate of one percent, (v) the market value of property described in clauses (2), (6), and 56.32(10) has a class rate of 1.25 percent, and (vi) that portion of the market value of property 56.33in clause (9) qualifying for class 4c property has a class rate of 1.25 percent. 56.34    (e) Class 4d property is qualifying low-income rental housing certified to the assessor 56.35by the Housing Finance Agency under section 273.128, subdivision 3. If only a portion 56.36of the units in the building qualify as low-income rental housing units as certified under 57.1section 273.128, subdivision 3, only the proportion of qualifying units to the total number 57.2of units in the building qualify for class 4d. The remaining portion of the building shall be 57.3classified by the assessor based upon its use. Class 4d also includes the same proportion of 57.4land as the qualifying low-income rental housing units are to the total units in the building. 57.5For all properties qualifying as class 4d, the market value determined by the assessor must 57.6be based on the normal approach to value using normal unrestricted rents. 57.7     new text begin (f) The first tier of market value of new text end class 4d property has a class rate of 0.75 percent. 57.8 new text begin The remaining value of class 4d property has a class rate of 0.25 percent. For the purposes new text end 57.9 new text begin of this paragraph, the "first tier of market value of class 4d property" means the market new text end 57.10 new text begin value of each housing unit up to the first tier limit. For the purposes of this paragraph, all new text end 57.11 new text begin class 4d property value must be assigned to individual housing units. The first tier limit is new text end 57.12 new text begin $100,000 for assessment year 2014. For subsequent years, the limit is adjusted each year new text end 57.13 new text begin by the average statewide change in estimated market value of property classified as class 4a new text end 57.14 new text begin and 4d under this section for the previous assessment year, excluding valuation change due new text end 57.15 new text begin to new construction, rounded to the nearest $1,000, provided, however, that the limit may new text end 57.16 new text begin never be less than $100,000. Beginning with assessment year 2015, the commissioner of new text end 57.17 new text begin revenue must certify the limit for each assessment year by November 1 of the previous year. new text end 57.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with assessment year 2014. new text end 57.19    Sec. 19. Minnesota Statutes 2012, section 279.01, subdivision 1, is amended to read: 57.20    Subdivision 1. Due dates; penalties. Except as provided in subdivision new text begin subdivisions new text end 57.21 3 or 4 new text begin to 5 new text end , on May 16 or 21 days after the postmark date on the envelope containing the 57.22property tax statement, whichever is later, a penalty accrues and thereafter is charged upon 57.23all unpaid taxes on real estate on the current lists in the hands of the county treasurer. The 57.24penalty is at a rate of two percent on homestead property until May 31 and four percent on 57.25June 1. The penalty on nonhomestead property is at a rate of four percent until May 31 and 57.26eight percent on June 1. This penalty does not accrue until June 1 of each year, or 21 days 57.27after the postmark date on the envelope containing the property tax statements, whichever 57.28is later, on commercial use real property used for seasonal residential recreational purposes 57.29and classified as class 1c or 4c, and on other commercial use real property classified as 57.30class 3a, provided that over 60 percent of the gross income earned by the enterprise on the 57.31class 3a property is earned during the months of May, June, July, and August. In order for 57.32the first half of the tax due on class 3a property to be paid after May 15 and before June 1, 57.33or 21 days after the postmark date on the envelope containing the property tax statement, 57.34whichever is later, without penalty, the owner of the property must attach an affidavit 57.35to the payment attesting to compliance with the income provision of this subdivision. 58.1Thereafter, for both homestead and nonhomestead property, on the first day of each month 58.2beginning July 1, up to and including October 1 following, an additional penalty of one 58.3percent for each month accrues and is charged on all such unpaid taxes provided that if the 58.4due date was extended beyond May 15 as the result of any delay in mailing property tax 58.5statements no additional penalty shall accrue if the tax is paid by the extended due date. If 58.6the tax is not paid by the extended due date, then all penalties that would have accrued if 58.7the due date had been May 15 shall be charged. When the taxes against any tract or lot 58.8exceed $100, one-half thereof may be paid prior to May 16 or 21 days after the postmark 58.9date on the envelope containing the property tax statement, whichever is later; and, if so 58.10paid, no penalty attaches; the remaining one-half may be paid at any time prior to October 58.1116 following, without penalty; but, if not so paid, then a penalty of two percent accrues 58.12thereon for homestead property and a penalty of four percent on nonhomestead property. 58.13Thereafter, for homestead property, on the first day of November an additional penalty of 58.14four percent accrues and on the first day of December following, an additional penalty of 58.15two percent accrues and is charged on all such unpaid taxes. Thereafter, for nonhomestead 58.16property, on the first day of November and December following, an additional penalty of 58.17four percent for each month accrues and is charged on all such unpaid taxes. If one-half of 58.18such taxes are not paid prior to May 16 or 21 days after the postmark date on the envelope 58.19containing the property tax statement, whichever is later, the same may be paid at any time 58.20prior to October 16, with accrued penalties to the date of payment added, and thereupon 58.21no penalty attaches to the remaining one-half until October 16 following. 58.22    This section applies to payment of personal property taxes assessed against 58.23improvements to leased property, except as provided by section 277.01, subdivision 3. 58.24    A county may provide by resolution that in the case of a property owner that has 58.25multiple tracts or parcels with aggregate taxes exceeding $100, payments may be made in 58.26installments as provided in this subdivision. 58.27    The county treasurer may accept payments of more or less than the exact amount of 58.28a tax installment due. Payments must be applied first to the oldest installment that is due 58.29but which has not been fully paid. If the accepted payment is less than the amount due, 58.30payments must be applied first to the penalty accrued for the year or the installment being 58.31paid. Acceptance of partial payment of tax does not constitute a waiver of the minimum 58.32payment required as a condition for filing an appeal under section 278.03 or any other law, 58.33nor does it affect the order of payment of delinquent taxes under section 280.39. 58.34    Sec. 20. Minnesota Statutes 2012, section 279.01, is amended by adding a subdivision 58.35to read: 59.1     new text begin Subd. 5. new text end new text begin Federal active service exception. new text end new text begin In the case of a homestead property new text end 59.2 new text begin owned by an individual who is on federal active service, as defined in section 190.05, new text end 59.3 new text begin subdivision 5c, as a member of the National Guard or a reserve component, a four-month new text end 59.4 new text begin grace period is granted for complying with the due dates imposed by subdivision 1. During new text end 59.5 new text begin this period, no late fees or penalties shall accrue against the property. The due date for new text end 59.6 new text begin property taxes owed under this chapter for an individual covered by this subdivision shall new text end 59.7 new text begin be September 15 for taxes due on May 15, and February 15 of the following year for taxes new text end 59.8 new text begin due on October 15. A taxpayer making a payment under this subdivision must accompany new text end 59.9 new text begin the payment with a signed copy of the taxpayer's orders or form DD214 showing the new text end 59.10 new text begin dates of active service which clearly indicate that the taxpayer was in active service as a new text end 59.11 new text begin member of the National Guard or a reserve component on the date the payment was due. new text end 59.12 new text begin This grace period applies to all homestead property owned by individuals on federal active new text end 59.13 new text begin service, as herein defined, for all of that property's due dates which fall on a day that is new text end 59.14 new text begin included in the taxpayer's federal active service. new text end 59.15    Sec. 21. Minnesota Statutes 2012, section 279.02, is amended to read: 59.16279.02 DUTIES OF COUNTY AUDITOR AND TREASURER. 59.17     new text begin Subdivision 1. new text end new text begin Delinquent property; rates. new text end On the first business day in January, of 59.18each year, the county treasurer shall return the tax lists on hand to the county auditor, who 59.19shall compare the same with the statements receipted for by the treasurer on file in the 59.20auditor's office and each tract or lot of real property against which the taxes, or any part 59.21thereof, remain unpaid, shall be deemed delinquent, and thereupon an additional penalty 59.22of two percent on the amount of the original tax remaining unpaid shall immediately 59.23accrue and thereafter be charged upon all such delinquent taxes; and any auditor who 59.24shall make out and deliver any statement of delinquent taxes without including therein 59.25the penalties imposed by law, and any treasurer who shall receive payment of such taxes 59.26without including in such payment all items as shown on the auditor's statement, shall be 59.27liable to the county for the amounts of any items omitted. 59.28     new text begin Subd. 2. new text end new text begin Federal active service exception. new text end new text begin Notwithstanding subdivision 1, a new text end 59.29 new text begin homestead property owned by an individual who is on federal active service, as defined new text end 59.30 new text begin in section 190.05, subdivision 5c, as a member of the National Guard or a reserve new text end 59.31 new text begin component, shall not be deemed delinquent under this section if the due dates imposed new text end 59.32 new text begin under section 279.01 fall on a day in which the individual was on federal active service. new text end 59.33    Sec. 22. Minnesota Statutes 2012, section 279.37, subdivision 1a, is amended to read: 60.1    Subd. 1a. Class 3a property. (a) The delinquent taxes upon a parcel of property 60.2which was classified class 3a, for the previous year's assessment and had a total market 60.3value of $500,000 or less for that same assessment shall be eligible to be composed into a 60.4confession of judgment new text begin with the approval of the county auditor new text end . Property qualifying under 60.5this subdivision shall be subject to the same provisions as provided in this section except 60.6as provided in paragraphs (b) to (d) new text begin (f) new text end . 60.7    (b) Current year taxes and penalty due at the time the confession of judgment 60.8is entered must be paid. 60.9    (c) The down payment must include all special assessments due in the current tax 60.10year, all delinquent special assessments, and 20 percent of the ad valorem tax, penalties, 60.11and interest accrued against the parcel. The balance remaining is payable in four equal 60.12annual installments. new text begin A municipality as defined in section 429.011, cities of the first class, new text end 60.13 new text begin and other special assessment authorities, that have certified special assessments against new text end 60.14 new text begin any parcel of property, may, through resolution, waive the requirement of payment of all new text end 60.15 new text begin current and delinquent special assessments at the time the confession is entered. If the new text end 60.16 new text begin municipality, city, or authority grants the waiver, 100 percent of all current year taxes, new text end 60.17 new text begin special assessments, and penalties due at the time, along with 20 percent of all delinquent new text end 60.18 new text begin taxes, special assessments, penalties, interest, and fees must be paid. The balance new text end 60.19 new text begin remaining shall be subject to and included in the installment plan. new text end 60.20 new text begin (d) When there are current and delinquent special assessments certified and billed new text end 60.21 new text begin against a parcel, the assessment authority or municipality as defined in section 429.011 new text end 60.22 new text begin may abate under section 375.192, subdivision 2, all special assessments and the penalty new text end 60.23 new text begin and interest affiliated with the special assessments, and reassess the special assessments, new text end 60.24 new text begin penalties, and interest accrued thereon, under section 429.071, subdivision 2. The new text end 60.25 new text begin municipality shall notify the county auditor of its intent to reassess as a precondition new text end 60.26 new text begin to the entry of the confession of judgment. Upon the notice to abate and reassess, the new text end 60.27 new text begin municipality shall, through resolution, notify the county auditor to remove all current new text end 60.28 new text begin and delinquent special assessments and the accrued penalty and interest on the special new text end 60.29 new text begin assessments, and the payment of all or a portion of the current and delinquent assessments new text end 60.30 new text begin shall not be required as part of the down payment due at the time the confession of new text end 60.31 new text begin judgment is entered in accordance with paragraph (c). new text end 60.32    (d) new text begin (e) new text end The amounts entered in judgment bear interest at the rate provided in section 60.33279.03, subdivision 1a , commencing with the date the judgment is entered. The interest 60.34rate is subject to change each year on the unpaid balance in the manner provided in section 60.35279.03, subdivision 1a . 61.1 new text begin (f) The county auditor may require conditions on properties including, but not new text end 61.2 new text begin limited to, environmental remediation action plan requirements, restrictions, or covenants, new text end 61.3 new text begin when considering a request for approval of eligibility for composition into a confession of new text end 61.4 new text begin judgment for delinquent taxes upon a parcel of property which was classified class 3a for new text end 61.5 new text begin the previous year's assessment. new text end 61.6    Sec. 23. Minnesota Statutes 2012, section 279.37, subdivision 2, is amended to read: 61.7    Subd. 2. Installment payments. The owner of any such parcel, or any person to 61.8whom the right to pay taxes has been given by statute, mortgage, or other agreement, may 61.9make and file with the county auditor of the county in which the parcel is located a written 61.10offer to pay the current taxes each year before they become delinquent, or to contest the 61.11taxes under Minnesota Statutes 1941, sections 278.01 to 278.13, and agree to confess 61.12judgment for the amount provided, as determined by the county auditor. By filing the 61.13offer, the owner waives all irregularities in connection with the tax proceedings affecting 61.14the parcel and any defense or objection which the owner may have to the proceedings, and 61.15also waives the requirements of any notice of default in the payment of any installment or 61.16interest to become due pursuant to the composite judgment to be so entered. new text begin Unless the new text end 61.17 new text begin property is subject to subdivision 1a, new text end with the offer, the owner shall new text begin (i) new text end tender one-tenth of 61.18the amount of the delinquent taxes, costs, penalty, and interest, and shall new text begin (ii) new text end tender all 61.19current year taxes and penalty due at the time the confession of judgment is entered. In the 61.20offer, the owner shall agree to pay the balance in nine equal installments, with interest as 61.21provided in section 279.03, payable annually on installments remaining unpaid from time 61.22to time, on or before December 31 of each year following the year in which judgment 61.23was confessed. The offer must be substantially as follows: 61.24"To the court administrator of the district court of ........... county, I, ....................., 61.25am the owner of the following described parcel of real estate located in .................... 61.26county, Minnesota: 61.27.............................. Upon that real estate there are delinquent taxes for the year ........., and 61.28prior years, as follows: (here insert year of delinquency and the total amount of delinquent 61.29taxes, costs, interest, and penalty). By signing this document I offer to confess judgment in 61.30the sum of $...... and waive all irregularities in the tax proceedings affecting these taxes and 61.31any defense or objection which I may have to them, and direct judgment to be entered for 61.32the amount stated above, minus the sum of $............, to be paid with this document, which 61.33is one-tenth new text begin or one-fifth new text end of the amount of the taxes, costs, penalty, and interest stated above. 61.34I agree to pay the balance of the judgment in nine new text begin or four new text end equal, annual installments, with 61.35interest as provided in section 279.03, payable annually, on the installments remaining 62.1unpaid. I agree to pay the installments and interest on or before December 31 of each year 62.2following the year in which this judgment is confessed and current taxes each year before 62.3they become delinquent, or within 30 days after the entry of final judgment in proceedings 62.4to contest the taxes under Minnesota Statutes, sections 278.01 to 278.13. 62.5Dated .............., ......." 62.6    Sec. 24. Minnesota Statutes 2012, section 281.14, is amended to read: 62.7281.14 EXPIRATION OF TIME FOR REDEMPTION. 62.8The time for redemption from any tax sale, whether made to the state or to a private 62.9person, shall not expire until notice of expiration of redemption, as provided in section 62.10 new text begin 281.17 new text end , shall have been given. 62.11    Sec. 25. Minnesota Statutes 2012, section 281.17, is amended to read: 62.12281.17 PERIOD FOR REDEMPTION. 62.13Except for properties for which the period of redemption has been limited under 62.14sections 281.173 and 281.174, the following periods for redemption apply. 62.15The period of redemption for all lands sold to the state at a tax judgment sale shall 62.16be three years from the date of sale to the state of Minnesota if the land is within an 62.17incorporated area unless it is: (a) nonagricultural homesteaded land as defined in section 62.18273.13, subdivision 22; (b) homesteaded agricultural land as defined in section 273.13, 62.19subdivision 23 , paragraph (a); or (c) seasonal residential recreational land as defined in 62.20section 273.13, subdivision 22, paragraph (c), or 25, paragraph (d), clause (1), for which 62.21the period of redemption is five years from the date of sale to the state of Minnesota. 62.22The period of redemption for homesteaded lands as defined in section 273.13, 62.23subdivision 22 , located in a targeted neighborhood as defined in Laws 1987, chapter 386, 62.24article 6, section 4, and sold to the state at a tax judgment sale is three years from the date 62.25of sale. The period of redemption for all lands located in a targeted neighborhood as 62.26defined in Laws 1987, chapter 386, article 6, section 4, except (1) homesteaded lands as 62.27defined in section 273.13, subdivision 22, and (2) for periods of redemption beginning 62.28after June 30, 1991, but before July 1, 1996, lands located in the Loring Park targeted 62.29neighborhood on which a notice of lis pendens has been served, and sold to the state at a 62.30tax judgment sale is one year from the date of sale. 62.31The period of redemption for all real property constituting a mixed municipal solid 62.32waste disposal facility that is a qualified facility under section 115B.39, subdivision 1, is 62.33one year from the date of the sale to the state of Minnesota. 63.1The period of redemption for all other lands sold to the state at a tax judgment 63.2sale shall be five years from the date of sale, except that the period of redemption for 63.3nonhomesteaded agricultural land as defined in section 273.13, subdivision 23, paragraph 63.4(b), shall be two years from the date of sale if at that time that property is owned by a 63.5person who owns one or more parcels of property on which taxes are delinquent, and the 63.6delinquent taxes are more than 25 percent of the prior year's school district levy. 63.7    Sec. 26. Minnesota Statutes 2012, section 287.05, is amended by adding a subdivision 63.8to read: 63.9     new text begin Subd. 10. new text end new text begin Hennepin and Ramsey Counties. new text end new text begin For properties located in Hennepin new text end 63.10 new text begin and Ramsey Counties, the county may impose an additional mortgage registry tax as new text end 63.11 new text begin defined in sections 383A.80 and 383B.80. new text end 63.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for deeds and mortgages new text end 63.13 new text begin acknowledged on or after July 1, 2013. new text end 63.14    Sec. 27. new text begin [287.40] HENNEPIN AND RAMSEY COUNTIES. new text end 63.15     new text begin For properties located in Hennepin and Ramsey Counties, the county may impose an new text end 63.16 new text begin additional deed tax as defined in sections 383A.80 and 383B.80. new text end 63.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for deeds and mortgages new text end 63.18 new text begin acknowledged on or after July 1, 2013. new text end 63.19    Sec. 28. Minnesota Statutes 2012, section 383A.80, subdivision 4, is amended to read: 63.20    Subd. 4. Expiration. The authority to impose the tax under this section expires 63.21January 1, 2013 new text begin 2028 new text end . 63.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for all deeds and mortgages new text end 63.23 new text begin acknowledged on or after July 1, 2013. new text end 63.24    Sec. 29. Minnesota Statutes 2012, section 383B.80, subdivision 4, is amended to read: 63.25    Subd. 4. Expiration. The authority to impose the tax under this section expires 63.26January 1, 2013 new text begin 2028 new text end . 63.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for all deeds and mortgages new text end 63.28 new text begin acknowledged on or after July 1, 2013. new text end 63.29    Sec. 30. Minnesota Statutes 2012, section 428A.101, is amended to read: 64.1428A.101 DEADLINE FOR SPECIAL SERVICE DISTRICT UNDER 64.2GENERAL LAW. 64.3The establishment of a new special service district after June 30, 2013 new text begin 2028 new text end , requires 64.4enactment of a special law authorizing the establishment. 64.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 64.6    Sec. 31. Minnesota Statutes 2012, section 428A.21, is amended to read: 64.7428A.21 DEADLINE FOR HOUSING IMPROVEMENT DISTRICTS UNDER 64.8GENERAL LAW. 64.9The establishment of a new housing improvement area after June 30, 2013 new text begin 2028 new text end , 64.10requires enactment of a special law authorizing the establishment of the area. 64.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 64.12    Sec. 32. Minnesota Statutes 2012, section 473F.08, subdivision 3a, is amended to read: 64.13    Subd. 3a. Bloomington computation. new text begin (a) new text end Beginning in 1987 and each subsequent 64.14year through 1998, the city of Bloomington shall determine the interest payments for that 64.15year for the bonds which have been sold for the highway improvements pursuant to Laws 64.161986, chapter 391, section 2, paragraph (g). Effective for property taxes payable in 1988 64.17through property taxes payable in 1999, after the Hennepin County auditor has computed 64.18the areawide portion of the levy for the city of Bloomington pursuant to subdivision 3, 64.19clause (a), the auditor shall annually add a dollar amount to the city of Bloomington's 64.20areawide portion of the levy equal to the amount which has been certified to the auditor 64.21by the city of Bloomington for the interest payments for that year for the bonds which 64.22were sold for highway improvements. The total areawide portion of the levy for the city 64.23of Bloomington including the additional amount for interest repayment certified pursuant 64.24to this subdivision shall be certified by the Hennepin County auditor to the administrative 64.25auditor pursuant to subdivision 5. The Hennepin County auditor shall distribute to the 64.26city of Bloomington the additional areawide portion of the levy computed pursuant to this 64.27subdivision at the same time that payments are made to the other counties pursuant to 64.28subdivision 7a. For property taxes payable from the year 2009 through 2018 new text begin 2014 new text end , the 64.29Hennepin County auditor shall adjust Bloomington's contribution to the areawide gross tax 64.30capacity upward each year by a value equal to ten percent of the total additional areawide 64.31levy distributed to Bloomington under this subdivision from 1988 to 1999, divided by the 64.32areawide tax rate for taxes payable in the previous year. 65.1 new text begin (b) For property taxes payable from 2015 through 2018, the administrative auditor new text end 65.2 new text begin shall increase the areawide net tax capacity each year by an amount equal to ten percent of new text end 65.3 new text begin the total additional areawide levy distributed to Bloomington under this subdivision from new text end 65.4 new text begin 1988 to 1999, divided by the areawide tax rate for taxes payable in the previous year. The new text end 65.5 new text begin administrative auditor must notify the commissioner of revenue of the amount determined new text end 65.6 new text begin by multiplying the increase in the areawide net tax capacity by the areawide tax rate new text end 65.7 new text begin determined under subdivision 5. The commissioner of revenue must pay the amount new text end 65.8 new text begin determined each payable year to the administrative auditor in two installments on July 10 new text end 65.9 new text begin and November 10, for distribution and settlement as provided in subdivision 7a. new text end 65.10 new text begin (c) A sum sufficient to meet the obligations under this subdivision is annually new text end 65.11 new text begin appropriated from the general fund to the commissioner of revenue. new text end 65.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with taxes payable in 2015. new text end 65.13    Sec. 33. Laws 1988, chapter 645, section 3, as amended by Laws 1999, chapter 243, 65.14article 6, section 9, Laws 2000, chapter 490, article 6, section 15, and Laws 2008, chapter 65.15154, article 2, section 30, is amended to read: 65.16    Sec. 3. TAX; PAYMENT OF EXPENSES. 65.17    (a) The tax levied by the hospital district under Minnesota Statutes, section 447.34, 65.18must not be levied at a rate that exceeds the amount authorized to be levied under that 65.19section. The proceeds of the tax may be used for all purposes of the hospital district, 65.20except as provided in paragraph (b). 65.21    (b) 0.015 percent of taxable market value of the tax in paragraph (a) may be used 65.22solely new text begin by the Cook ambulance service and the Orr ambulance service new text end for the purpose of 65.23capital expenditures as it relates to new text begin : new text end 65.24     new text begin (1) new text end ambulance acquisitions for the Cook ambulance service and the Orr ambulance 65.25service and not new text begin ; new text end 65.26     new text begin (2) attached and portable equipment for use in and for the ambulances; and new text end 65.27     new text begin (3) parts and replacement parts for maintenance and repair of the ambulances. new text end 65.28 new text begin The money may not be used new text end for administrative new text begin , operation, new text end or salary expenses. 65.29     new text begin (c) new text end The part of the levy referred to in paragraph (b) must be administered by the 65.30Cook Hospital and passed on new text begin in equal amounts new text end directly to the Cook area ambulance 65.31service board and the city of Orr to be held in trust until funding for a new ambulance is 65.32needed by either the Cook ambulance service or the Orr ambulance service new text begin used for the new text end 65.33 new text begin purposes in paragraph (b) new text end . 65.34    Sec. 34. Laws 1999, chapter 243, article 6, section 11, is amended to read: 66.1    Sec. 11. CEMETERY LEVY FOR SAWYER BY CARLTON COUNTY. 66.2    Subdivision 1. Levy authorized. Notwithstanding other law to the contrary, the 66.3Carlton county board of commissioners may new text begin annually new text end levy in and for the unorganized 66.4township new text begin territory new text end of Sawyer an amount up to $1,000 annually for cemetery purposes, 66.5beginning with taxes payable in 2000 and ending with taxes payable in 2009. 66.6    Subd. 2. Effective date. This section is effective June 1, 1999, without local 66.7approval. 66.8 new text begin EFFECTIVE DATE; LOCAL APPROVAL. new text end new text begin This section applies to taxes new text end 66.9 new text begin payable in 2014 and thereafter, and is effective the day after the Carlton County Board new text end 66.10 new text begin of Commissioners and its chief clerical officer timely complete their compliance with new text end 66.11 new text begin Minnesota Statutes, section 645.021, subdivisions 2 and 3. new text end 66.12    Sec. 35. Laws 2008, chapter 366, article 5, section 33, the effective date, is amended to 66.13read: 66.14EFFECTIVE DATE.This section is effective for taxes levied in 2008, payable in 66.152009, and is repealed effective for taxes levied in 2013 new text begin 2018 new text end , payable in 2014 new text begin 2019 new text end , 66.16and thereafter. 66.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with taxes payable in 2014. new text end 66.18    Sec. 36. Laws 2009, chapter 88, article 2, section 46, subdivision 1, is amended to read: 66.19    Subdivision 1. Agreement. The city of Cloquet and Perch Lake Township, by 66.20resolution of each of their governing bodies, may establish the Cloquet Area Fire and 66.21Ambulance Taxing District for the purpose of providing fire and new text begin or new text end ambulance services new text begin , new text end 66.22 new text begin or both, new text end throughout the district. In this section, "municipality" means home rule charter 66.23and statutory cities, towns, and Indian tribes. The district may exercise all the powers 66.24relating to fire and ambulance services of the municipalities that receive fire and new text begin or new text end 66.25 ambulance services new text begin , or both, new text end from the district. new text begin Upon application, new text end any other municipality 66.26that is contiguous to a municipality that is a member of the district may join the district 66.27with the agreement of the municipalities that comprise the district at the time of its 66.28application to join. 66.29    Sec. 37. Laws 2009, chapter 88, article 2, section 46, subdivision 3, is amended to read: 66.30    Subd. 3. Tax. The district board may impose a property tax on taxable property in 66.31the district new text begin as provided in this subdivision new text end . This new text begin The board shall annually determine the new text end 66.32 new text begin total amount of the levy that is attributable to the cost of providing fire services and the cost new text end 67.1 new text begin of providing ambulance services within the primary service area. For those municipalities new text end 67.2 new text begin that only receive ambulance services, the costs for the provision of ambulance services new text end 67.3 new text begin shall be levied against taxable property within those municipalities at a rate necessary not new text end 67.4 new text begin to exceed 0.019 percent of the estimated market value. For those municipalities that new text end 67.5 new text begin receive both fire and ambulance services, the new text end tax shall be imposed at a rate that does not 67.6exceed 0.2835 percent of taxable new text begin estimated new text end market value for taxes payable in 2010. The 67.7board shall annually determine the separate amounts of the levy that are attributable to the 67.8cost of providing fire services and the cost of providing ambulance services. Costs for the 67.9provision of ambulance services shall be levied against taxable property within the area of 67.10the district that receive the services. Costs for the provision of fire services shall be levied 67.11against taxable property within the area of the district that receive the services. 67.12When new text begin a member municipality opts to receive fire service from the district or new text end an 67.13additional municipality becomes a member of the district, the additional cost of providing 67.14ambulance and fire services to that municipality will new text begin community shall new text end be determined by 67.15the board and added to the maximum levy amount. 67.16Each county auditor of a county that contains a municipality subject to the tax under 67.17this section must collect the tax and pay it to the Fire and Ambulance Special Taxing 67.18District. The district may also impose other fees or charges as allowed by law for the 67.19provision of fire and ambulance services. 67.20    Sec. 38. Laws 2010, chapter 389, article 1, section 12, the effective date, is amended to 67.21read: 67.22EFFECTIVE DATE.This section is effective for assessment years new text begin year new text end 2010 and 67.232011, for taxes payable in 2011 and 2012 new text begin thereafter new text end . 67.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessment year 2012 and new text end 67.25 new text begin thereafter. new text end 67.26    Sec. 39. new text begin MINNEAPOLIS AND ST. PAUL ENTERTAINMENT FACILITIES new text end 67.27 new text begin COORDINATION STUDY; APPROPRIATION. new text end 67.28     new text begin Subdivision 1. new text end new text begin Statement of purpose. new text end new text begin The legislature finds that the national new text end 67.29 new text begin economic structure of professional sports financing, as directly or indirectly sanctioned by new text end 67.30 new text begin federal law, compels state and local governments in smaller metropolitan areas, such as new text end 67.31 new text begin Minneapolis and St. Paul, to help finance the construction and operation of venues for new text end 67.32 new text begin professional sports franchises as a condition of hosting these franchises. The burden and new text end 67.33 new text begin risk associated with providing this assistance justifies authorizing and directing the cities new text end 68.1 new text begin and any associated private entities to enter into arrangements that attempt to maximize new text end 68.2 new text begin the combined revenues of these facilities from direct users, including those unrelated to new text end 68.3 new text begin professional sports, such as, but not limited to, joint booking of concerts and other events, new text end 68.4 new text begin to minimize the cost and risk to general taxpayers. Any efforts to put in place such joint new text end 68.5 new text begin marketing, promotion, and scheduling arrangements by the cities or associated private new text end 68.6 new text begin entities, in the view of the legislature, is a petition for enactment of this or subsequent new text end 68.7 new text begin enabling legislation under the Noerr-Pennington doctrine or state action under the Parker new text end 68.8 new text begin antitrust doctrine. This legislation and any resulting arrangements are intended to minimize new text end 68.9 new text begin the potential burden on general taxpayers of financing and operation of the arenas. new text end 68.10     new text begin Subd. 2. new text end new text begin Study and report. new text end new text begin On or before February 1, 2014, the cities of new text end 68.11 new text begin Minneapolis and St. Paul, in consultation with representatives of the primary professional new text end 68.12 new text begin sports team tenant of each arena, shall study and report to the legislature on establishing new text end 68.13 new text begin a joint governing structure to be responsible for the joint administration, financing, and new text end 68.14 new text begin operations of the facilities and the possible effects of joint governance on the finances of new text end 68.15 new text begin each arena and each city. The commissioner of administration, in consultation with the new text end 68.16 new text begin two cities, shall contract with an independent consultant to conduct all or a portion of the new text end 68.17 new text begin study. The cities of Minneapolis and St. Paul together shall pay one-half of the cost of the new text end 68.18 new text begin consultant contract. The commissioner may accept funding from other public entities and new text end 68.19 new text begin private organizations to pay for the contract. The study must: new text end 68.20     new text begin (1) examine the current finances of each arena including past and projected costs and new text end 68.21 new text begin revenues, projected capital improvements, and the current and projected impact of each new text end 68.22 new text begin arena on each city's general fund; new text end 68.23     new text begin (2) determine the impact of joint governance on the future finances of each city; new text end 68.24     new text begin (3) examine joint scheduling, marketing, and promotion of events at the arenas, new text end 68.25 new text begin either within a joint governance structure or as separate entities; and new text end 68.26     new text begin (4) estimate the amount of funding, if any, that would be required to operate and new text end 68.27 new text begin maintain the arenas under a joint governing structure. new text end 68.28     new text begin Subd. 3. new text end new text begin Appropriation. new text end new text begin Up to $50,000 is appropriated to the commissioner of new text end 68.29 new text begin administration from the general fund for fiscal year 2014 to pay up to one-half of the costs new text end 68.30 new text begin of the consultant contract under subdivision 2. new text end 68.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 68.32    Sec. 40. new text begin REIMBURSEMENT FOR PROPERTY TAX ABATEMENTS; new text end 68.33 new text begin APPROPRIATION. new text end 69.1     new text begin Subdivision 1. new text end new text begin Reimbursement. new text end new text begin The commissioner of revenue shall reimburse new text end 69.2 new text begin taxing jurisdictions for property tax abatements granted in Hennepin County under Laws new text end 69.3 new text begin 2011, First Special Session chapter 7, article 5, section 13, notwithstanding the time limits new text end 69.4 new text begin contained in that section. The reimbursements must be made to each taxing jurisdiction new text end 69.5 new text begin pursuant to the certification of the Hennepin County auditor. new text end 69.6     new text begin Subd. 2. new text end new text begin Appropriation. new text end new text begin In fiscal year 2014 only, $336,000 is appropriated to the new text end 69.7 new text begin commissioner of revenue from the general fund to make the payments required in this new text end 69.8 new text begin section. new text end 69.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 69.10    Sec. 41. new text begin ST. PAUL BALLPARK PROPERTY TAX EXEMPTION; SPECIAL new text end 69.11 new text begin ASSESSMENT. new text end 69.12 new text begin Any real or personal property acquired, owned, leased, controlled, used, or occupied new text end 69.13 new text begin by the city of St. Paul for the primary purpose of providing a ballpark for a minor league new text end 69.14 new text begin baseball team is declared to be acquired, owned, leased, controlled, used, and occupied for new text end 69.15 new text begin public, governmental, and municipal purposes, and is exempt from ad valorem taxation new text end 69.16 new text begin by the state or any political subdivision of the state, provided that the properties are new text end 69.17 new text begin subject to special assessments levied by a political subdivision for a local improvement in new text end 69.18 new text begin amounts proportionate to and not exceeding the special benefit received by the properties new text end 69.19 new text begin from the improvement. In determining the special benefit received by the properties, no new text end 69.20 new text begin possible use of any of the properties in any manner different from their intended use new text end 69.21 new text begin for providing a minor league ballpark at the time may be considered. Notwithstanding new text end 69.22 new text begin Minnesota Statutes, section new text end new text begin , subdivision 2, or new text end new text begin , real or personal property new text end 69.23 new text begin subject to a lease or use agreement between the city and another person for uses related to new text end 69.24 new text begin the purposes of the operation of the ballpark and related parking facilities is exempt from new text end 69.25 new text begin taxation regardless of the length of the lease or use agreement. This section, insofar as it new text end 69.26 new text begin provides an exemption or special treatment, does not apply to any real property that is new text end 69.27 new text begin leased for residential, business, or commercial development or other purposes different new text end 69.28 new text begin from those necessary to the provision and operation of the ballpark. new text end 69.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after compliance by the new text end 69.30 new text begin governing body of the city of St. Paul with Minnesota Statutes, section 645.021, new text end 69.31 new text begin subdivisions 2 and 3. new text end 69.32    Sec. 42. new text begin PUBLIC ENTERTAINMENT FACILITY; PROPERTY TAX new text end 69.33 new text begin EXEMPTION; SPECIAL ASSESSMENT. new text end 70.1 new text begin Any real or personal property acquired, owned, leased, controlled, used, or occupied new text end 70.2 new text begin by the city of Minneapolis for the primary purpose of providing an arena for a professional new text end 70.3 new text begin basketball team is declared to be acquired, owned, leased, controlled, used, and occupied new text end 70.4 new text begin for public, governmental, and municipal purposes, and is exempt from ad valorem taxation new text end 70.5 new text begin by the state or any political subdivision of the state, provided that the properties are new text end 70.6 new text begin subject to special assessments levied by a political subdivision for a local improvement in new text end 70.7 new text begin amounts proportionate to and not exceeding the special benefit received by the properties new text end 70.8 new text begin from the improvement. In determining the special benefit received by the properties, no new text end 70.9 new text begin possible use of any of the properties in any manner different from their intended use for new text end 70.10 new text begin providing a professional basketball arena at the time may be considered. Notwithstanding new text end 70.11 new text begin Minnesota Statutes, section new text end new text begin , subdivision 2, or new text end new text begin , real or personal property new text end 70.12 new text begin subject to a lease or use agreement between the city and another person for uses related to new text end 70.13 new text begin the purposes of the operation of the arena and related parking facilities is exempt from new text end 70.14 new text begin taxation regardless of the length of the lease or use agreement. This section, insofar as new text end 70.15 new text begin it provides an exemption or special treatment, does not apply to any real property that new text end 70.16 new text begin is leased for residential, business, or commercial development, or for other purposes new text end 70.17 new text begin different from those necessary to the provision and operation of the arena. new text end 70.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after compliance by the new text end 70.19 new text begin governing body of the city of Minneapolis with Minnesota Statutes, section 645.021, new text end 70.20 new text begin subdivisions 2 and 3. new text end 70.21    Sec. 43. new text begin PUBLIC ENTERTAINMENT FACILITY; CONSTRUCTION new text end 70.22 new text begin MANAGER AT RISK. new text end 70.23 new text begin (a) For any real or personal property acquired, owned, leased, controlled, used, or new text end 70.24 new text begin occupied by the city of Minneapolis for the primary purpose of providing an arena for new text end 70.25 new text begin a professional basketball team, the city of Minneapolis may contract for construction, new text end 70.26 new text begin materials, supplies, and equipment in accordance with Minnesota Statutes, section new text end 70.27 new text begin 471.345, except that the city may employ or contract with persons, firms, or corporations new text end 70.28 new text begin to perform one or more or all of the functions of an engineer, architect, construction new text end 70.29 new text begin manager, or program manager with respect to all or any part of a project to renovate, new text end 70.30 new text begin refurbish, and remodel the arena under either the traditional design-bid-build plan or new text end 70.31 new text begin construction manager at risk plan, or a combination thereof. new text end 70.32 new text begin (b) The city may prepare a request for proposals for one or more of the functions new text end 70.33 new text begin described in paragraph (a). The request must be published in a newspaper of general new text end 70.34 new text begin circulation. The city may prequalify offerors by issuing a request for qualifications, in new text end 71.1 new text begin advance of the request for proposals, and select a short list of responsible offerors to new text end 71.2 new text begin submit proposals. new text end 71.3 new text begin (c) As provided in the request for proposals, the city may conduct discussions and new text end 71.4 new text begin negotiations with responsible offerors in order to determine which proposal is most new text end 71.5 new text begin advantageous to the city and to negotiate the terms of an agreement. In conducting new text end 71.6 new text begin discussions, there shall be no disclosure of any information derived from proposals new text end 71.7 new text begin submitted by competing offerors and the content of all proposals is nonpublic data under new text end 71.8 new text begin Minnesota Statutes, chapter 13, until such time as a notice to award a contract is given new text end 71.9 new text begin by the city. new text end 71.10 new text begin (d) Upon agreement on the guaranteed maximum price, the construction manager new text end 71.11 new text begin or program manager may enter into contracts with subcontractors for labor, materials, new text end 71.12 new text begin supplies, and equipment for the renovation project through the process of public bidding, new text end 71.13 new text begin except that the construction manager or program manager may, with the consent of the city: new text end 71.14 new text begin (1) narrow the listing of eligible bidders to those that the construction manager new text end 71.15 new text begin or program manager determines to possess sufficient expertise to perform the intended new text end 71.16 new text begin functions; new text end 71.17 new text begin (2) award contracts to the subcontractors that the construction manager or program new text end 71.18 new text begin manager determines provide the best value under a request for proposals, as described in new text end 71.19 new text begin Minnesota Statutes, section 16C.28, subdivision 1, paragraph (a), clause (2), that are not new text end 71.20 new text begin required to be the lowest responsible bidder; and new text end 71.21 new text begin (3) for work the construction manager or program manager determines to be new text end 71.22 new text begin critical to the completion schedule, perform work with its own forces without soliciting new text end 71.23 new text begin competitive bids or proposals, if the construction manager or program manager provides new text end 71.24 new text begin evidence of competitive pricing. new text end 71.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after compliance by the new text end 71.26 new text begin governing body of the city of Minneapolis with Minnesota Statutes, section 645.021, new text end 71.27 new text begin subdivisions 2 and 3. new text end 71.28    Sec. 44. new text begin EXTENSION OF PROPERTY TAX DUE DATE; COMMERCIAL new text end 71.29 new text begin SEASONAL RECREATIONAL PROPERTIES. new text end 71.30 new text begin Notwithstanding the provisions of Minnesota Statutes, section 279.01, subdivision new text end 71.31 new text begin 1, for taxes payable in 2013 only, the penalty on first-half property taxes does not accrue new text end 71.32 new text begin until June 15 on commercial use real property used for seasonal residential recreational new text end 71.33 new text begin purposes and classified as class 1c or 4c, and on other commercial use real property new text end 71.34 new text begin classified as class 3a, provided that over 60 percent of the gross income earned by the new text end 71.35 new text begin enterprise on the class 3a property is earned during the months of May, June, July, and new text end 72.1 new text begin August. In order for the first half of the tax due on class 3a property to be paid after May new text end 72.2 new text begin 15 and before June 15 without penalty, the owner of the property must attach an affidavit new text end 72.3 new text begin to the payment attesting to compliance with the income provision of this subdivision. new text end 72.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 72.5    Sec. 45. new text begin REPORT ON CLASS 4D TIER STRUCTURE. new text end 72.6 new text begin The commissioners of revenue and housing finance shall report to the legislature new text end 72.7 new text begin by January 31, 2015, on the implementation of a second tier of market value for class 4d new text end 72.8 new text begin property under Minnesota Statutes, section 273.13, subdivision 25, paragraph (f). The new text end 72.9 new text begin report shall include the number of class 4d properties subject to the second tier of market new text end 72.10 new text begin value for taxes payable in 2015 and the tax impact of the application of the second tier new text end 72.11 new text begin of market value. The report shall also include an analysis of the characteristics of the new text end 72.12 new text begin properties to which the second tier of market value applies, such as location, building new text end 72.13 new text begin type, and number of units. new text end 72.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2013. new text end 72.15    Sec. 46. new text begin REPORT AND STUDY ON CERTAIN PROPERTY USED IN new text end 72.16 new text begin BUSINESS AND PRODUCTION; ASSESSMENT MORATORIUM. new text end 72.17     new text begin Subdivision 1. new text end new text begin Study and report. new text end new text begin (a) In order to facilitate a legislative review of new text end 72.18 new text begin property tax assessment procedures for facilities used in the production of biofuels, wine, new text end 72.19 new text begin beer, distilled beverages, and dairy products, and the development of standards and criteria new text end 72.20 new text begin for determining the taxable status of these facilities, the commissioner of revenue must new text end 72.21 new text begin conduct a study and report the findings of the study. The study must: new text end 72.22 new text begin (1) include a detailed survey of counties identifying the components and tax status new text end 72.23 new text begin of biofuel facilities; new text end 72.24 new text begin (2) identify the function of components in facilities of the affected industries; new text end 72.25 new text begin (3) consider the taxability for certain components related to size, function, and use; new text end 72.26 new text begin (4) develop recommendations for assessment guidelines and policies for facilities of new text end 72.27 new text begin the affected industries; and new text end 72.28 new text begin (5) identify possible impacts to state and local taxes resulting from study new text end 72.29 new text begin recommendations. new text end 72.30 new text begin (b) The commissioner shall request the involvement and participation of new text end 72.31 new text begin stakeholders, including the affected industries, the assessment community, and others new text end 72.32 new text begin identified by the commissioner. new text end 73.1 new text begin (c) The commissioner shall report the findings to the chairs of the house of new text end 73.2 new text begin representatives and senate committees with jurisdiction over taxes, agriculture, and new text end 73.3 new text begin economic development as well as the commissioners of agriculture and employment and new text end 73.4 new text begin economic development by February 1, 2014. new text end 73.5     new text begin Subd. 2. new text end new text begin Moratorium on changes in assessment practices. new text end new text begin (a) For the 2013 and new text end 73.6 new text begin 2014 assessments, assessors must continue to use assessment practices or policies in effect new text end 73.7 new text begin in that county on January 2, 2012, for determining the taxable status of property used in new text end 73.8 new text begin the production of biofuels, wine, beer, distilled beverages, or dairy products. new text end 73.9 new text begin (b) An assessor must not change the taxable status of any existing property described new text end 73.10 new text begin in paragraph (a) from its status on January 2, 2012, unless the change is due to a change in new text end 73.11 new text begin the use of property, or to correct an error. For taxable properties, the assessor may change new text end 73.12 new text begin the estimated market value of the property and add value for any new construction that new text end 73.13 new text begin would have been taxable under practices and policies in place on January 2, 2012. new text end 73.14 new text begin (c) This subdivision expires on December 31, 2014. Any changes to the taxable new text end 73.15 new text begin status of the properties in paragraph (a) resulting from the study will not be effective new text end 73.16 new text begin until the 2015 assessment. new text end 73.17    Sec. 47. new text begin PROPERTY TAX SAVINGS REPORT. new text end 73.18 new text begin (a) In addition to the certification of its proposed property tax levy under Minnesota new text end 73.19 new text begin Statutes, section 275.065, each city that has a population over 500 and each county shall new text end 73.20 new text begin also include the amount of sales and use tax paid, or was estimated to be paid, in 2012. new text end 73.21 new text begin (b) At the time the notice of the proposed property taxes is mailed as required under new text end 73.22 new text begin Minnesota Statutes, section 275.065, subdivision 3, the county treasurer shall also include new text end 73.23 new text begin a separate statement providing a list of sales and use tax certified by the county and cities new text end 73.24 new text begin within their jurisdiction. new text end 73.25 new text begin (c) At the public hearing required under Minnesota Statutes, section 275.065, new text end 73.26 new text begin subdivision 3, the county and city must discuss the estimated savings realized to their new text end 73.27 new text begin budgets that resulted from the sales tax exemption authorized under Minnesota Statutes, new text end 73.28 new text begin section 297A.70, subdivision 2, and how those savings will be used for property tax levy new text end 73.29 new text begin reductions, fee reductions, and other purposes as deemed appropriate. new text end 73.30 new text begin Reasonable costs of preparing the notice required in this section must be apportioned new text end 73.31 new text begin between taxing jurisdictions as follows: new text end 73.32 new text begin (1) one-half is allocated to the county; and new text end 73.33 new text begin (2) one-half is allocated among the cities. new text end 74.1 new text begin The amount allocated in clause (2) must be further apportioned among all the cities new text end 74.2 new text begin in the proportion that the number of parcels in the city bears to the number of parcels in all new text end 74.3 new text begin the cities that have populations over 500. new text end 74.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment, new text end 74.5 new text begin for taxes levied in 2013 and payable in 2014. new text end 74.6    Sec. 48. new text begin LEVY LIMITS FOR TAXES LEVIED IN 2013. new text end 74.7     new text begin Subdivision 1. new text end new text begin Population. new text end new text begin "Population" means the population for the local new text end 74.8 new text begin governmental unit as established by the last federal census, by a census taken under new text end 74.9 new text begin section Minnesota Statutes, section 275.14, or by an estimate made by the metropolitan new text end 74.10 new text begin council or by the state demographer under Minnesota Statutes, section 4A.02, whichever new text end 74.11 new text begin is most recent as to the stated date of the count or estimate up to and including June 1 new text end 74.12 new text begin of the current levy year. new text end 74.13     new text begin Subd. 2. new text end new text begin Local government unit. new text end new text begin "Local governmental unit" means a county with a new text end 74.14 new text begin population greater than 5,000, or a statutory or home rule charter city with a population new text end 74.15 new text begin greater than 2,500. new text end 74.16     new text begin Subd. 3. new text end new text begin Levy limit base. new text end new text begin "Levy limit base" for a local governmental unit for levy new text end 74.17 new text begin year 2013 means the sum of its certified net tax capacity levy plus the total of aids and new text end 74.18 new text begin reimbursements that the local governmental unit is certified to receive under Minnesota new text end 74.19 new text begin Statutes, sections 477A.011 to 477A.014, minus any amounts that would qualify as a new text end 74.20 new text begin special levy under Minnesota Statutes, section 275.70, subdivision 5, clauses (1) to (4) and new text end 74.21 new text begin (7), for taxes levied in 2011 or 2012, whichever is greater. The levy limit base must be new text end 74.22 new text begin increased by three percent. new text end 74.23     new text begin Subd. 4. new text end new text begin Property tax levy limit. new text end new text begin For taxes levied in 2013, the net tax capacity new text end 74.24 new text begin levy limit for a local governmental unit is equal to its levy limit base determined under new text end 74.25 new text begin subdivision 3 plus any additional levy authorized under Minnesota Statutes, section new text end 74.26 new text begin 275.73, which is levied against net tax capacity, reduced by the total amount of aids and new text end 74.27 new text begin reimbursements that the local governmental unit is certified to receive under Minnesota new text end 74.28 new text begin Statutes, sections 477A.011 to 477A.014. The property tax levy limit for any local new text end 74.29 new text begin government cannot be less than the greater of its certified net tax capacity levies for taxes new text end 74.30 new text begin levied in 2011 or 2012. new text end 74.31     new text begin Subd. 5. new text end new text begin Limit on levies. new text end new text begin Notwithstanding any other provision of law or municipal new text end 74.32 new text begin charter to the contrary which authorize ad valorem taxes in excess of the limits established new text end 75.1 new text begin by this section, the provisions of this section apply to local governmental units for all new text end 75.2 new text begin purposes other than those for which special levies under Minnesota Statutes, section new text end 75.3 new text begin 275.70, subdivision 5, clauses (1) to (5) and (7), and special assessments are made. new text end 75.4     new text begin Subd. 6. new text end new text begin Levies in excess of levy limits. new text end new text begin If the levy made by a city or county new text end 75.5 new text begin exceeds the levy limit provided in this section, except when the excess levy is due to the new text end 75.6 new text begin rounding of the rate in accordance with Minnesota Statutes, section 275.28, the county new text end 75.7 new text begin auditor shall only extend the amount of taxes permitted under this section as provided new text end 75.8 new text begin for in Minnesota Statutes, section 275.16. new text end 75.9     new text begin Subd. 7. new text end new text begin Calculation and notification. new text end new text begin The commissioner of revenue shall make new text end 75.10 new text begin all necessary calculations for determining levy limits for local governmental units and new text end 75.11 new text begin notify the affected governmental units of their levy limits directly by September 1, 2013. new text end 75.12 new text begin The local governmental units shall, upon request, provide the commissioner with any new text end 75.13 new text begin information needed to make the calculations. The local governmental unit shall report new text end 75.14 new text begin by September 30, in a manner prescribed by the commissioner, the maximum amount of new text end 75.15 new text begin taxes it plans to levy for each of the purposes listed under special levies and any additional new text end 75.16 new text begin levy authorized under Minnesota Statutes, section 275.73, along with any necessary new text end 75.17 new text begin documentation. The commissioner shall review the proposed special levies and make any new text end 75.18 new text begin adjustments needed. The commissioner's decision is final. The final allowed special levy new text end 75.19 new text begin amounts and any levy limit adjustments must be certified back to the local governments by new text end 75.20 new text begin December 10. In addition, the commissioner of revenue shall notify all county auditors on new text end 75.21 new text begin or before five working days after December 20 of the sum of the levy limit plus the total of new text end 75.22 new text begin allowed special levies for each local governmental unit located within their boundaries so new text end 75.23 new text begin that they may fix the levies as required in Minnesota Statutes, section 275.16. The local new text end 75.24 new text begin governmental units shall provide the commissioner of revenue with all information that new text end 75.25 new text begin the commissioner deems necessary to make the calculations provided for in this section. new text end 75.26     new text begin Subd. 8. new text end new text begin Information necessary to calculate levy limit base. new text end new text begin A local governmental new text end 75.27 new text begin unit must provide the commissioner with the information required to calculate the new text end 75.28 new text begin amount under subdivision 3, by July 20, 2013. If the information is not received by the new text end 75.29 new text begin commissioner by that date, or is not deemed sufficient to make the calculation under that new text end 75.30 new text begin clause, the commissioner has the discretion to set the local governmental unit's levy limit new text end 75.31 new text begin for all purposes including those purposes for which special levies may be made, equal to new text end 75.32 new text begin the amount of the local governmental unit's certified levy for the prior year. new text end 75.33 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes levied in 2013, payable new text end 75.34 new text begin in 2014, only. new text end 76.1    Sec. 49. new text begin APPROPRIATION. new text end 76.2 new text begin $2,000,000 in fiscal year 2014 only is appropriated from the general fund to the new text end 76.3 new text begin commissioner of revenue for a grant to the city of Moose Lake to reimburse for costs new text end 76.4 new text begin related to connection of state facilities to the sewer line. new text end 76.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2013. new text end 76.6ARTICLE 5 76.7SPECIAL TAXES 76.8    Section 1. Minnesota Statutes 2012, section 270C.56, subdivision 1, is amended to read: 76.9    Subdivision 1. Liability imposed. A person who, either singly or jointly with 76.10others, has the control of, supervision of, or responsibility for filing returns or reports, 76.11paying taxes, or collecting or withholding and remitting taxes and who fails to do so, or a 76.12person who is liable under any other law, is liable for the payment of taxes arising under 76.13chapters 295, 296A, 297A, 297F, and 297G, or sections 256.9658, 290.92, and 297E.02, 76.14and the applicable penalties and interest on those taxes. 76.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2013. new text end 76.16    Sec. 2. Minnesota Statutes 2012, section 296A.09, subdivision 2, is amended to read: 76.17    Subd. 2. new text begin Jet fuel and new text end special fuel tax imposed. There is imposed an excise tax 76.18of the same rate new text begin 15 cents new text end per gallon as the aviation gasoline on all jet fuel or special 76.19fuel received, sold, stored, or withdrawn from storage in this state, for use as substitutes 76.20for aviation gasoline and not otherwise taxed as gasoline. Jet fuel is defined in section 76.21296A.01, subdivision 8 . 76.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2014, and applied to sales new text end 76.23 new text begin and purchases made on or after that date. new text end 76.24    Sec. 3. Minnesota Statutes 2012, section 296A.17, subdivision 3, is amended to read: 76.25    Subd. 3. Refund on graduated basis. Any person who has directly or indirectly 76.26paid the excise tax on aviation gasoline or special fuel for aircraft use provided for by this 76.27chapter new text begin and the airflight property tax under section 270.72 new text end , shall, as to all such aviation 76.28gasoline and special fuel received, stored, or withdrawn from storage by the person in 76.29this state in any calendar year and not sold or otherwise disposed of to others, or intended 76.30for sale or other disposition to others, on which such tax has been so paid, be entitled to 76.31the following graduated reductions in such tax for that calendar year, to be obtained by 76.32means of the following refunds: 77.1(1) on each gallon of such aviation gasoline or special fuel up to 50,000 gallons, all 77.2but five cents per gallon; 77.3(2) on each gallon of such aviation gasoline or special fuel above 50,000 gallons and 77.4not more than 150,000 gallons, all but two cents per gallon; 77.5(3) on each gallon of such aviation gasoline or special fuel above 150,000 gallons 77.6and not more than 200,000 gallons, all but one cent per gallon; 77.7(4) on each gallon of such aviation gasoline or special fuel above 200,000, all but 77.8one-half cent per gallon. 77.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2014, and applied to sales new text end 77.10 new text begin and purchases made on or after that date. new text end 77.11    Sec. 4. Minnesota Statutes 2012, section 297A.82, subdivision 4, is amended to read: 77.12    Subd. 4. Exemptions. (a) The following transactions are exempt from the tax 77.13imposed in this chapter to the extent provided. 77.14(b) The purchase or use of aircraft previously registered in Minnesota by a 77.15corporation or partnership is exempt if the transfer constitutes a transfer within the 77.16meaning of section 351 or 721 of the Internal Revenue Code. 77.17(c) The sale to or purchase, storage, use, or consumption by a licensed aircraft dealer 77.18of an aircraft for which a commercial use permit has been issued pursuant to section 77.19360.654 is exempt, if the aircraft is resold while the permit is in effect. 77.20(d) Air flight equipment when sold to, or purchased, stored, used, or consumed by 77.21airline companies, as defined in section 270.071, subdivision 4, is exempt. For purposes 77.22of this subdivision, "air flight equipment" includes airplanes and parts necessary for the 77.23repair and maintenance of such air flight equipment, and flight simulators, but does 77.24not include airplanes with a gross weight of less than 30,000 pounds that are used on 77.25intermittent or irregularly timed flights. 77.26(e) Sales of, and the storage, distribution, use, or consumption of aircraft, as defined 77.27in section 360.511 and approved by the Federal Aviation Administration, and which the 77.28seller delivers to a purchaser outside Minnesota or which, without intermediate use, is 77.29shipped or transported outside Minnesota by the purchaser are exempt, but only if the 77.30purchaser is not a resident of Minnesota and provided that the aircraft is not thereafter 77.31returned to a point within Minnesota, except in the course of interstate commerce or 77.32isolated and occasional use, and will be registered in another state or country upon its 77.33removal from Minnesota. This exemption applies even if the purchaser takes possession of 77.34the aircraft in Minnesota and uses the aircraft in the state exclusively for training purposes 77.35for a period not to exceed ten days prior to removing the aircraft from this state. 78.1 new text begin (f) The sale or purchase of the following items that relate to aircraft operated under new text end 78.2 new text begin Federal Aviation Regulations, Parts 91 and 135, and associated installation charges: new text end 78.3 new text begin equipment and parts necessary for repair and maintenance of aircraft; and equipment new text end 78.4 new text begin and parts to upgrade and improve aircraft. new text end 78.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 78.6 new text begin June 30, 2013. new text end 78.7    Sec. 5. Minnesota Statutes 2012, section 297A.82, is amended by adding a subdivision 78.8to read: 78.9     new text begin Subd. 4a. new text end new text begin Deposit in state airports fund. new text end new text begin Tax revenue collected from the sale or new text end 78.10 new text begin purchase of an aircraft taxable under this chapter must be deposited in the state airports new text end 78.11 new text begin fund, established in section 360.017. new text end 78.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2013, and applied to sales new text end 78.13 new text begin and purchases made on or after that date. new text end 78.14    Sec. 6. Minnesota Statutes 2012, section 297F.01, subdivision 3, is amended to read: 78.15    Subd. 3. Cigarette. "Cigarette" means any roll for smoking made wholly or in part 78.16of tobacco, new text begin that weighs 4.5 pounds or less per thousand: new text end 78.17 new text begin (1) new text end the wrapper or cover of which is made of paper or another substance or material 78.18except tobacco new text begin ; or new text end 78.19 new text begin (2) wrapped in any substance containing tobacco, however labeled or named, which, new text end 78.20 new text begin because of its appearance, size, the type of tobacco used in the filler, or its packaging, new text end 78.21 new text begin pricing, marketing, or labeling, is likely to be offered to or purchased by consumers as new text end 78.22 new text begin a cigarette, as defined in clause (1), unless it is wrapped in whole tobacco leaf and does new text end 78.23 new text begin not have a cellulose acetate or other cigarette-like filter new text end . 78.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2013. new text end 78.25    Sec. 7. Minnesota Statutes 2012, section 297F.01, is amended by adding a subdivision 78.26to read: 78.27     new text begin Subd. 10b. new text end new text begin Moist snuff. new text end new text begin "Moist snuff" means any finely cut, ground, or powdered new text end 78.28 new text begin smokeless tobacco that is intended to be placed or dipped in the mouth. new text end 78.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2014. new text end 79.1    Sec. 8. Minnesota Statutes 2012, section 297F.01, is amended by adding a subdivision 79.2to read: 79.3     new text begin Subd. 13a. new text end new text begin Premium cigar. new text end new text begin "Premium cigar" means any cigar that is new text end 79.4 new text begin hand-constructed and hand-rolled, has a wrapper that is made entirely from whole tobacco new text end 79.5 new text begin leaf, has a filler and binder that is made entirely of tobacco, except for adhesives or other new text end 79.6 new text begin materials used to maintain size, texture, or flavor, and has a wholesale price of no less new text end 79.7 new text begin than $2. new text end 79.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2013. new text end 79.9    Sec. 9. Minnesota Statutes 2012, section 297F.01, subdivision 19, is amended to read: 79.10    Subd. 19. Tobacco products. new text begin (a) new text end "Tobacco products" means any product 79.11containing, made, or derived from tobacco that is intended for human consumption, 79.12whether chewed, smoked, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by 79.13any other means, or any component, part, or accessory of a tobacco product, including, 79.14but not limited to, cigars; little cigars; cheroots; stogies; periques; granulated, plug cut, 79.15crimp cut, ready rubbed, and other smoking tobacco; snuff; snuff flour; cavendish; plug 79.16and twist tobacco; fine-cut and other chewing tobacco; shorts; refuse scraps, clippings, 79.17cuttings and sweepings of tobacco, and other kinds and forms of tobacco; but does not 79.18include cigarettes as defined in this section. Tobacco products excludes any tobacco 79.19product that has been approved by the United States Food and Drug Administration for 79.20sale as a tobacco cessation product, as a tobacco dependence product, or for other medical 79.21purposes, and is being marketed and sold solely for such an approved purpose. 79.22 new text begin (b) Except for the imposition of tax under section 297F.05, subdivisions 3 and 4, new text end 79.23 new text begin tobacco products includes a premium cigar, as defined in subdivision 13a. new text end 79.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2013. new text end 79.25    Sec. 10. Minnesota Statutes 2012, section 297F.05, subdivision 1, is amended to read: 79.26    Subdivision 1. Rates; cigarettes. A tax is imposed upon the sale of cigarettes in 79.27this state, upon having cigarettes in possession in this state with intent to sell, upon any 79.28person engaged in business as a distributor, and upon the use or storage by consumers, at 79.29the following rates: 79.30(1) on cigarettes weighing not more than three pounds per thousand, 24 new text begin 141.5 new text end mills 79.31on each such cigarette; and 79.32(2) on cigarettes weighing more than three pounds per thousand, 48 new text begin 283 new text end mills on 79.33each such cigarette. 80.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2013. new text end 80.2    Sec. 11. Minnesota Statutes 2012, section 297F.05, is amended by adding a subdivision 80.3to read: 80.4     new text begin Subd. 1a. new text end new text begin Annual indexing. new text end new text begin (a) Each year the commissioner shall adjust the new text end 80.5 new text begin tax rates under subdivision 1, including any adjustment made in prior years under this new text end 80.6 new text begin subdivision, by multiplying the mill rates for the current calendar year by an adjustment new text end 80.7 new text begin factor and rounding the result to the nearest mill. The adjustment factor equals the in-lieu new text end 80.8 new text begin sales tax rate that applies to the following calendar year divided by the in-lieu sales tax new text end 80.9 new text begin rate for the current calendar year. For purposes of this subdivision, "in-lieu sales tax rate" new text end 80.10 new text begin means the tax rate established under section 297F.25, subdivision 1. For purposes of the new text end 80.11 new text begin calculations under this subdivision to be made in any year in which an increase in the new text end 80.12 new text begin federal or state excise tax on cigarettes is implemented, the commissioner shall exclude new text end 80.13 new text begin from the calculated average price for the current year an amount equal to any increase in new text end 80.14 new text begin the state or federal excise tax rate. new text end 80.15     new text begin (b) The commissioner shall publish the resulting rate by November 1 and the rate new text end 80.16 new text begin applies to sales made on or after January 1 of the following year. new text end 80.17 new text begin (c) The determination of the commissioner under this subdivision is not a rule and is new text end 80.18 new text begin not subject to the Administrative Procedure Act in chapter 14. new text end 80.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2014. new text end 80.20    Sec. 12. Minnesota Statutes 2012, section 297F.05, subdivision 3, is amended to read: 80.21    Subd. 3. Rates; tobacco products. new text begin (a) Except as provided in subdivision 3a, new text end a tax is 80.22imposed upon all tobacco products in this state and upon any person engaged in business 80.23as a distributor, at the rate of 35 new text begin 95 new text end percent of the wholesale sales price of the tobacco 80.24products. The tax is imposed at the time the distributor: 80.25(1) brings, or causes to be brought, into this state from outside the state tobacco 80.26products for sale; 80.27(2) makes, manufactures, or fabricates tobacco products in this state for sale in 80.28this state; or 80.29(3) ships or transports tobacco products to retailers in this state, to be sold by those 80.30retailers. 80.31 new text begin (b) Notwithstanding paragraph (a), a minimum tax equal to the rate imposed on a new text end 80.32 new text begin pack of 20 cigarettes weighing not more than three pounds per thousand, as established new text end 80.33 new text begin under subdivision 1, is imposed on each container of moist snuff. new text end 81.1 new text begin For purposes of this subdivision, a "container" means the smallest consumer-size can, new text end 81.2 new text begin package, or other container that is marketed or packaged by the manufacturer, distributor, new text end 81.3 new text begin or retailer for separate sale to a retail purchaser. When more than one container is new text end 81.4 new text begin packaged together, each container is subject to tax. new text end 81.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2013, except the minimum new text end 81.6 new text begin tax under paragraph (b) is effective January 1, 2014. new text end 81.7    Sec. 13. Minnesota Statutes 2012, section 297F.05, is amended by adding a subdivision 81.8to read: 81.9     new text begin Subd. 3a. new text end new text begin Rates; tobacco. new text end new text begin (a) A tax is imposed upon all premium cigars in this state new text end 81.10 new text begin and upon any person engaged in business as a tobacco product distributor, at the lesser of: new text end 81.11 new text begin (1) the rate of 95 percent of the wholesale sales price of the premium cigars; or new text end 81.12 new text begin (2) $3.50 per premium cigar. new text end 81.13 new text begin (b) The tax imposed under paragraph (a) is imposed at the time the tobacco products new text end 81.14 new text begin distributor: new text end 81.15 new text begin (1) brings, or causes to be brought, into this state from outside the state premium new text end 81.16 new text begin cigars for sale; new text end 81.17 new text begin (2) makes, manufactures, or fabricates premium cigars in this state for sale in this new text end 81.18 new text begin state; or new text end 81.19 new text begin (3) ships or transports premium cigars to retailers in this state, to be sold by those new text end 81.20 new text begin retailers. new text end 81.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2013. new text end 81.22    Sec. 14. Minnesota Statutes 2012, section 297F.05, subdivision 4, is amended to read: 81.23    Subd. 4. Use tax; tobacco products. new text begin Except as provided in subdivision 4a, new text end a tax is 81.24imposed upon the use or storage by consumers of tobacco products in this state, and upon 81.25such consumers, at the rate of 35 new text begin 95 new text end percent of the cost to the consumer of the tobacco 81.26products new text begin or the minimum tax under subdivision 3, paragraph (b), whichever is greater new text end . 81.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2013. new text end 81.28    Sec. 15. Minnesota Statutes 2012, section 297F.05, is amended by adding a subdivision 81.29to read: 81.30     new text begin Subd. 4a. new text end new text begin Use tax; premium cigars. new text end new text begin A tax is imposed upon the use or storage by new text end 81.31 new text begin consumers of all premium cigars in this state, and upon such consumers, at the lesser of: new text end 81.32 new text begin (1) the rate of 95 percent of the cost to the consumer of the premium cigars; or new text end 82.1 new text begin (2) $3.50 per premium cigar. new text end 82.2 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2013. new text end 82.3    Sec. 16. Minnesota Statutes 2012, section 297F.24, subdivision 1, is amended to read: 82.4    Subdivision 1. Fee imposed. (a) A fee is imposed upon the sale of nonsettlement 82.5cigarettes in this state, upon having nonsettlement cigarettes in possession in this state 82.6with intent to sell, upon any person engaged in business as a distributor, and upon the use 82.7or storage by consumers of nonsettlement cigarettes. The fee equals a rate of 1.75 new text begin 2.5 new text end 82.8cents per cigarette. 82.9(b) The purpose of this fee is to: 82.10(1) ensure that manufacturers of nonsettlement cigarettes pay fees to the state that 82.11are comparable to costs attributable to the use of the cigarettes; 82.12(2) prevent manufacturers of nonsettlement cigarettes from undermining the state's 82.13policy of discouraging underage smoking by offering nonsettlement cigarettes at prices 82.14substantially below the cigarettes of other manufacturers; and 82.15(3) fund such other purposes as the legislature determines appropriate. 82.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2013. new text end 82.17    Sec. 17. Minnesota Statutes 2012, section 297F.25, subdivision 1, is amended to read: 82.18    Subdivision 1. Imposition. (a) A tax is imposed on distributors on the sale of 82.19cigarettes by a cigarette distributor to a retailer or cigarette subjobber for resale in this 82.20state. The tax is equal to 6.5 percent of new text begin the combined tax rate under section 297A.62, new text end 82.21 new text begin multiplied by new text end the weighted average retail price and must be expressed in cents per pack 82.22rounded to the nearest one-tenth of a cent. The weighted average retail price must be 82.23determined annually, with new rates published by November 1, and effective for sales 82.24on or after January 1 of the following year. The weighted average retail price must be 82.25established by surveying cigarette retailers statewide in a manner and time determined by 82.26the commissioner. The commissioner shall make an inflation adjustment in accordance 82.27with the Consumer Price Index for all urban consumers inflation indicator as published in 82.28the most recent state budget forecast. The commissioner shall use the inflation factor for 82.29the calendar year in which the new tax rate takes effect. If the survey indicates that the 82.30average retail price of cigarettes has not increased relative to the average retail price in 82.31the previous year's survey, then the commissioner shall not make an inflation adjustment. 82.32The determination of the commissioner pursuant to this subdivision is not a "rule" and is 83.1not subject to the Administrative Procedure Act contained in chapter 14. For packs of 83.2cigarettes with other than 20 cigarettes, the tax must be adjusted proportionally. 83.3(b) Notwithstanding paragraph (a), and in lieu of a survey of cigarette retailers, the 83.4tax calculation of the weighted average retail price for the sales of cigarettes from August 83.51, 2011, through December 31, 2011, shall be calculated by: (1) increasing the average 83.6retail price per pack of 20 cigarettes from the most recent survey by the percentage change 83.7in a weighted average of the presumed legal prices for cigarettes during the year after 83.8completion of that survey, as reported and published by the Department of Commerce 83.9under section 325D.371; (2) subtracting the sales tax included in the retail price; and (3) 83.10adjusting for expected inflation. The rate must be published by May 1 and is effective for 83.11sales after July 31. If the weighted average of the presumed legal prices indicates that the 83.12average retail price of cigarettes has not increased relative to the average retail price in the 83.13most recent survey, then no inflation adjustment must be made. For packs of cigarettes 83.14with other than 20 cigarettes, the tax must be adjusted proportionally. 83.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2013. new text end 83.16    Sec. 18. Minnesota Statutes 2012, section 297G.04, subdivision 2, is amended to read: 83.17    Subd. 2. Tax credit. A qualified brewer producing fermented malt beverages 83.18is entitled to a tax credit of $4.60 per barrel on 25,000 barrels sold in any fiscal year 83.19beginning July 1, regardless of the alcohol content of the product. Qualified brewers may 83.20take the credit on the 18th day of each month, but the total credit allowed may not exceed 83.21in any fiscal year the lesser of: 83.22    (1) the liability for tax; or 83.23    (2) $115,000. 83.24    For purposes of this subdivision, a "qualified brewer" means a brewer, whether or 83.25not located in this state, manufacturing less than 100,000 new text begin 250,000 new text end barrels of fermented 83.26malt beverages in the calendar year immediately preceding the calendar year for which 83.27the credit under this subdivision is claimed. In determining the number of barrels, all 83.28brands or labels of a brewer must be combined. All facilities for the manufacture of 83.29fermented malt beverages owned or controlled by the same person, corporation, or other 83.30entity must be treated as a single brewer. 83.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for determinations based on calendar new text end 83.32 new text begin year 2012 production and thereafter. new text end 83.33    Sec. 19. Minnesota Statutes 2012, section 325D.32, subdivision 2, is amended to read: 84.1    Subd. 2. Cigarettes. "Cigarettes" means and includes any roll for smoking, made 84.2wholly or in part of tobacco, irrespective of size and shape and whether or not such 84.3tobacco is flavored, adulterated or mixed with any other ingredient, the wrapper or cover 84.4of which is made of paper or any other substance or material except new text begin whole new text end tobacco new text begin leaf, new text end 84.5 new text begin and includes any cigarette as defined in section 297F.01, subdivision 3 new text end . 84.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2013. new text end 84.7    Sec. 20. Minnesota Statutes 2012, section 325F.781, subdivision 1, is amended to read: 84.8    Subdivision 1. Definitions. (a) For purposes of this section, the following terms 84.9have the meanings given, unless the language or context clearly provides otherwise. 84.10(b) "Consumer" means an individual who purchases, receives, or possesses tobacco 84.11products for personal consumption and not for resale. 84.12(c) "Delivery sale" means: 84.13(1) a sale of tobacco products to a consumer in this state when: 84.14(i) the purchaser submits the order for the sale by means of a telephonic or other 84.15method of voice transmission, the mail or any other delivery service, or the Internet or 84.16other online service; or 84.17(ii) the tobacco products are delivered by use of the mail or other delivery service; or 84.18(2) a sale of tobacco products that satisfies the criteria in clause (1), item (i), 84.19regardless of whether the seller is located inside or outside of the state. 84.20A sale of tobacco products to an individual in this state must be treated as a sale to a 84.21consumer, unless the individual is licensed as a distributor or retailer of tobacco products. 84.22(d) "Delivery service" means a person, including the United States Postal Service, 84.23that is engaged in the commercial delivery of letters, packages, or other containers. 84.24(e) "Distributor" means a person, whether located inside or outside of this state, 84.25other than a retailer, who sells or distributes tobacco products in the state. Distributor does 84.26not include a tobacco products manufacturer, export warehouse proprietor, or importer 84.27with a valid permit under United States Code, title 26, section 5712 (1997), if the person 84.28sells or distributes tobacco products in this state only to distributors who hold valid and 84.29current licenses under the laws of a state, or to an export warehouse proprietor or another 84.30manufacturer. Distributor does not include a common or contract carrier that is transporting 84.31tobacco products under a proper bill of lading or freight bill that states the quantity, source, 84.32and destination of tobacco products, or a person who ships tobacco products through this 84.33state by common or contract carrier under a bill of lading or freight bill. 84.34(f) "Retailer" means a person, whether located inside or outside this state, who sells 84.35or distributes tobacco products to a consumer in this state. 85.1(g) "Tobacco products" means: 85.2(1) cigarettes, as defined in section 297F.01, subdivision 3; and 85.3(2) smokeless tobacco as defined in section 325F.76. new text begin ; and new text end 85.4 new text begin (3) premium cigars as defined in section 297F.01, subdivision 13a. new text end 85.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2013. new text end 85.6    Sec. 21. Minnesota Statutes 2012, section 349.166, subdivision 1, is amended to read: 85.7    Subdivision 1. Exclusions. (a) Bingo, with the exception of linked bingo games, may 85.8be conducted without a license and without complying with sections 349.168, subdivisions 85.91 and 2; 349.17, subdivisions 4 and 5; 349.18, subdivision 1; and 349.19, if it is conducted: 85.10(1) by an organization in connection with a county fair, the state fair, or a civic 85.11celebration and is not conducted for more than 12 consecutive days and is limited to no more 85.12than four separate applications for activities applied for and approved in a calendar year; or 85.13(2) by an organization that conducts bingo on four or fewer days in a calendar year. 85.14An organization that holds a license to conduct lawful gambling under this chapter 85.15may not conduct bingo under this subdivision. 85.16(b) Bingo may be conducted within a nursing home or a senior citizen housing 85.17project or by a senior citizen organization if the prizes for a single bingo game do not 85.18exceed $10, total prizes awarded at a single bingo occasion do not exceed $200, no more 85.19than two bingo occasions are held by the organization or at the facility each week, only 85.20members of the organization or residents of the nursing home or housing project are 85.21allowed to play in a bingo game, no compensation is paid for any persons who conduct the 85.22bingo, and a manager is appointed to supervise the bingo. Bingo conducted under this 85.23paragraph is exempt from sections 349.11 to 349.23, and the board may not require an 85.24organization that conducts bingo under this paragraph, or the manager who supervises the 85.25bingo, to register or file a report with the board. The gross receipts from bingo conducted 85.26under the limitations of this subdivision are exempt from taxation under chapter 297A. 85.27(c) Raffles may be conducted by an organization without registering with the board 85.28if the value of all raffle prizes awarded by the organization in a calendar year does not 85.29exceed $1,500 new text begin or, if the organization is a 501(c)(3) organization, if the value of all raffle new text end 85.30 new text begin prizes awarded by the organization at one event in a calendar year does not exceed $5,000 new text end . 85.31(d) Except as provided in paragraph (b), the organization must maintain all required 85.32records of excluded gambling activity for 3-1/2 years. 85.33 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2013. new text end 86.1    Sec. 22. Minnesota Statutes 2012, section 360.531, is amended to read: 86.2360.531 TAXATION. 86.3    Subdivision 1. In lieu tax. All aircraft using the air space overlying the state of 86.4Minnesota or the airports thereof, except as set forth in section 360.55, shall be taxed in 86.5lieu of all other taxes thereon, on the basis and at the rate for the period January 1, 1966, to 86.6June 30, 1967, and for each fiscal year as follows. 86.7    Subd. 2. Rate. The tax shall be at the rate of one percent of value; provided that 86.8the minimum tax on an aircraft subject to the provisions of sections to 360.67 86.9 shall not be less than 25 percent of the tax on said aircraft computed on its base price or 86.10$50 whichever is the higher. new text begin as follows: new text end 86.11 new text begin Base Price new text end new text begin Tax new text end 86.12 new text begin Under $499,999 new text end new text begin $100 new text end 86.13 new text begin $500,000 to $999,999 new text end new text begin $200 new text end 86.14 new text begin $1,000,000 to $2,499,999 new text end new text begin $2,000 new text end 86.15 new text begin $2,500,000 to $4,999,999 new text end new text begin $4,000 new text end 86.16 new text begin $5,000,000 to $7,499,999 new text end new text begin $7,500 new text end 86.17 new text begin $7,500,000 to $9,999,999 new text end new text begin $10,000 new text end 86.18 new text begin $10,000,000 to $12,499,999 new text end new text begin $12,500 new text end 86.19 new text begin $12,500,000 to $14,999,999 new text end new text begin $15,000 new text end 86.20 new text begin $15,000,000 to $17,499,999 new text end new text begin $17,500 new text end 86.21 new text begin $17,500,000 to $19,999,999 new text end new text begin $20,000 new text end 86.22 new text begin $20,000,000 to $22,499,999 new text end new text begin $22,500 new text end 86.23 new text begin $22,500,000 to $24,999,999 new text end new text begin $25,000 new text end 86.24 new text begin $25,000,000 to $27,499,999 new text end new text begin $27,500 new text end 86.25 new text begin $27,500,000 to $29,999,999 new text end new text begin $30,000 new text end 86.26 new text begin $30,000,000 to $39,999,999 new text end new text begin $50,000 new text end 86.27 new text begin $40,000,000 and over new text end new text begin $75,000 new text end 86.28    Subd. 3. First year of life. "First year of life" means the year the aircraft was 86.29manufactured. 86.30    Subd. 4. Base price for taxation. For the purpose of fixing a base price for taxation 86.31from which depreciation in value at a fixed percent per annum can be counted, such new text begin , the new text end 86.32 new text begin base new text end price is defined as follows: 86.33(a) The base price for taxation of an aircraft shall be the manufacturer's list price. 86.34(b) The commissioner shall have authority to fix the base value for taxation purposes 86.35of any aircraft of which no such similar or corresponding model has been manufactured, 86.36and of any rebuilt or foreign aircraft, any aircraft on which a record of the list price is not 86.37available, or any military aircraft converted for civilian use, using as a basis for such 87.1valuation the list price of aircraft with comparable performance characteristics, and taking 87.2into consideration the age and condition of the aircraft. 87.3    Subd. 5. Similarity of corresponding model. Models shall be deemed similar if 87.4substantially alike and of the same make. Models shall be deemed to be corresponding 87.5models for the purpose of taxation under sections 360.54 to 360.67 if of the same make 87.6and having approximately the same weight and type of frame and the same style and 87.7size of motor. 87.8    Subd. 6. Depreciation. After the first year of aircraft life the base value for taxation 87.9purposes shall be reduced as follows: ten percent the second year, and 15 percent the third 87.10and each succeeding year thereafter, but in no event shall such tax be reduced below 87.11the minimum. 87.12    Subd. 7. Prorating tax. When an aircraft first becomes subject to taxation during the 87.13period for which the tax is to be paid, the tax on it shall be for the remainder of that period, 87.14prorated on a monthly basis of 1/12 of the annual tax for each calendar month counting the 87.15month during which it becomes subject to the tax as the first month of such period. 87.16    Subd. 8. Tax, fiscal year. Every aircraft subject to the provisions of sections 87.17360.511 to 360.67 which has at any time since April 19, 1945, used the air space overlying 87.18the state of Minnesota or the airports thereof shall be taxed for the period from January 1, 87.191966, through June 30, 1967, and for each fiscal year thereafter in which it is so used. Any 87.20aircraft which does not use the air space overlying the state of Minnesota or the airports 87.21thereof at any time during the period of January 1, 1966, to and including June 30, 1967, 87.22or at any time during any fiscal year thereafter shall not be subject to the tax provided by 87.23sections 360.511 to 360.67 for such period. Rebuilt aircraft shall be subject to the tax 87.24provided by sections 360.511 to 360.67 for that portion of the aforesaid periods remaining 87.25after the aircraft has been rebuilt, prorated on a monthly basis. 87.26    Subd. 9. Assessed as personal property in certain cases. Aircraft subject to 87.27taxation under the provisions of sections 360.54 to 360.67 shall not be assessed as personal 87.28property and shall be subject to no tax except as provided for by these sections. Aircraft 87.29not subject to taxation as provided in these sections, but subject to taxation as personal 87.30property within the state of Minnesota shall be assessed and valued at 33-1/3 percent of 87.31the market value thereof and taxed at the rate and in the manner provided by law for the 87.32taxation of ordinary personal property. If the person against whom any tax has been levied 87.33on the ad valorem basis because of any aircraft shall, during the calendar year for which 87.34such ad valorem tax is levied, be also taxed under provisions of these sections, then and in 87.35that event, upon proper showing, the commissioner of revenue shall grant to the person 87.36against whom said ad valorem tax was levied, such reduction or abatement of net tax 88.1capacity or taxes as was occasioned by the so-called ad valorem tax imposed. If the ad 88.2valorem tax upon any aircraft has been assessed against a dealer in new and used aircraft, 88.3and the tax imposed by these sections for the required period is thereafter paid by the 88.4owner, then and in that event, upon proper showing, the commissioner of revenue, upon 88.5the application of said dealer, shall grant to such dealer against whom said ad valorem tax 88.6was levied such reduction or abatement of net tax capacity or taxes as was occasioned 88.7by the so-called ad valorem tax imposed. 88.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2014, and applies to aircraft new text end 88.9 new text begin tax due on or after that date. new text end 88.10    Sec. 23. Minnesota Statutes 2012, section 360.66, is amended to read: 88.11360.66 STATE AIRPORTS FUND. 88.12    Subdivision 1. Tax credited to fund. The proceeds of the tax imposed on aircraft 88.13under sections new text begin 360.531 new text end to 360.67 and all fees and penalties provided for therein 88.14shall be collected by the commissioner and paid into the state treasury and credited to the 88.15state airports fund created by other statutes of this state. 88.16    Subd. 2. Reimbursement for expenses. There shall be transferred by the 88.17commissioner of management and budget each year from the state airports fund to the 88.18general fund in the state treasury the amount expended from the latter fund for expenses of 88.19administering the provisions of sections new text begin 360.531 new text end to 360.67. 88.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2014, and applies to aircraft new text end 88.21 new text begin tax due on or after that date. new text end 88.22    Sec. 24. new text begin REPORT. new text end 88.23 new text begin On or before June 30, 2016, and every four years thereafter, the commissioner of new text end 88.24 new text begin transportation, in consultation with the commissioner of revenue, shall prepare and submit new text end 88.25 new text begin to the chairs and ranking minority members of the senate and house of representatives new text end 88.26 new text begin committees with jurisdiction over transportation policy and budget, a report that identifies new text end 88.27 new text begin the amount and sources of annual revenues attributable to each type of aviation tax, along new text end 88.28 new text begin with annual expenditures from the state airports fund, and any other transfers out of the new text end 88.29 new text begin fund, during the previous four years. The report must include draft legislation for any new text end 88.30 new text begin recommended statutory changes to ensure the future adequacy of the state airports fund. new text end 88.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2014, and applies to aircraft new text end 88.32 new text begin tax due on or after that date. new text end 89.1    Sec. 25. new text begin FLOOR STOCKS TAX. new text end 89.2     new text begin Subdivision 1. new text end new text begin Cigarettes. new text end new text begin (a) A floor stocks tax is imposed on every person new text end 89.3 new text begin engaged in the business in this state as a distributor, retailer, subjobber, vendor, new text end 89.4 new text begin manufacturer, or manufacturer's representative of cigarettes, on the stamped cigarettes and new text end 89.5 new text begin unaffixed stamps in the person's possession or under the person's control at 12:01 a.m. new text end 89.6 new text begin on July 1, 2013. The tax is imposed at the rate of 80 mills on each cigarette plus the new text end 89.7 new text begin additional cigarette sales tax determined by an adjustment to the weighted average retail new text end 89.8 new text begin price which reflects the price including the increased tax. new text end 89.9 new text begin (b) Each distributor, on or before July 11, 2013, shall file a return with the new text end 89.10 new text begin commissioner of revenue, in the form the commissioner prescribes, showing the stamped new text end 89.11 new text begin cigarettes and unaffixed stamps on hand at 12:01 a.m. on July 1, 2013, and the amount new text end 89.12 new text begin of tax due on the cigarettes and unaffixed stamps. Each retailer, subjobber, vendor, new text end 89.13 new text begin manufacturer, or manufacturer's representative, on or before July 11, 2013, shall file new text end 89.14 new text begin a return with the commissioner, in the form the commissioner prescribes, showing the new text end 89.15 new text begin cigarettes on hand at 12:01 a.m. on July 1, 2013, and the amount of tax due on the new text end 89.16 new text begin cigarettes. The tax imposed by this section is due and payable on or before September 4, new text end 89.17 new text begin 2013, and after that date bears interest at the rate of one percent per month. new text end 89.18     new text begin Subd. 2. new text end new text begin Audit and enforcement. new text end new text begin The tax imposed by this section is subject to new text end 89.19 new text begin the audit, assessment, interest, appeal, refund, penalty, enforcement, administrative, and new text end 89.20 new text begin collection provisions of Minnesota Statutes, chapters 270C and 297F. The commissioner new text end 89.21 new text begin of revenue may require a distributor to receive and maintain copies of floor stocks fee new text end 89.22 new text begin returns filed by all persons requesting a credit for returned cigarettes. new text end 89.23     new text begin Subd. 3. new text end new text begin Deposit of proceeds. new text end new text begin (a) The commissioner of revenue shall deposit new text end 89.24 new text begin $26,500,000 of the revenues from the tax under this section in the state treasury and credit new text end 89.25 new text begin them to the general reserve account established under Minnesota Statutes 297E.021, new text end 89.26 new text begin subdivision 4. new text end 89.27 new text begin (b) The commissioner of revenue shall deposit any revenue remaining after the new text end 89.28 new text begin transfer under paragraph (a) to the general fund. new text end 89.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2013. new text end 89.30    Sec. 26. new text begin INTERIM SALES TAX RATE. new text end 89.31 new text begin Notwithstanding the provisions of Minnesota Statutes, section 297F.25, the new text end 89.32 new text begin commissioner shall adjust the weighted average retail price in section 297F.25, subdivision new text end 89.33 new text begin 1, on July 1, 2013, to reflect the price changes under this act. This weighted average new text end 90.1 new text begin shall be used to compute cigarette sales tax under Minnesota Statutes, section 297F.25, new text end 90.2 new text begin subdivision 1, until December 31, 2013, when the commissioner shall resume annual new text end 90.3 new text begin adjustments to the weighted average sales price. The commissioner's determination of new text end 90.4 new text begin the adjustment that takes effect on January 1, 2014, must be limited to the change in the new text end 90.5 new text begin weighted average retail price that occurs during calendar year 2013 but after July 15, 2013. new text end 90.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2013. new text end 90.7    Sec. 27. new text begin TOBACCO TAX COLLECTION REPORT. new text end 90.8     new text begin Subdivision 1. new text end new text begin Report to legislature. new text end new text begin (a) The commissioner of revenue shall report new text end 90.9 new text begin to the 2014 legislature on the tobacco tax collection system, including recommendations new text end 90.10 new text begin to improve compliance under the excise tax for both cigarettes and other tobacco products. new text end 90.11 new text begin The purpose of the report is to provide information and guidance to the legislature on new text end 90.12 new text begin improvements to the tobacco tax collection system to: new text end 90.13 new text begin (1) provide a unified system of collecting both the cigarette and other tobacco new text end 90.14 new text begin taxes, regardless of category, size, or shape, that ensures the highest reasonable rates of new text end 90.15 new text begin tax collection; new text end 90.16 new text begin (2) discourage tax evasion; and new text end 90.17 new text begin (3) help to prevent illegal sale of tobacco products, which may make these products new text end 90.18 new text begin more accessible to youth. new text end 90.19 new text begin (b) In the report, the commissioner shall: new text end 90.20 new text begin (1) provide a detailed review of the present excise tax collection and compliance new text end 90.21 new text begin system as it applies to both cigarettes and other tobacco products. This must include new text end 90.22 new text begin an assessment of the levels of compliance for each category of products and the effect new text end 90.23 new text begin of the stamping requirement on compliance for each category of products and the effect new text end 90.24 new text begin of the stamping requirement on compliance rates for cigarettes relative to other tobacco new text end 90.25 new text begin products. It also must identify any weaknesses in the system; new text end 90.26 new text begin (2) survey the methods of collection and enforcement used by other states or nations, new text end 90.27 new text begin including identifying and discussing emerging best practices that ensure tracking of both new text end 90.28 new text begin cigarettes and other tobacco products and result in the highest rates of tax collection and new text end 90.29 new text begin compliance. These best practices must consider high-technology alternatives, such as use new text end 90.30 new text begin of bar codes, radio-frequency identification tags, or similar mechanisms for tracking new text end 90.31 new text begin compliance; new text end 90.32 new text begin (3) evaluate the adequacy and effectiveness of the existing penalties and other new text end 90.33 new text begin sanctions for noncompliance; new text end 91.1 new text begin (4) evaluate the adequacy of the resources allocated by the state to enforce the new text end 91.2 new text begin tobacco tax and prevention laws; and new text end 91.3 new text begin (5) make recommendations on implementation of a comprehensive tobacco tax new text end 91.4 new text begin collection system for Minnesota that can be implemented by January 1, 2014, including: new text end 91.5 new text begin (i) recommendations on the specific steps needed to institute and implement the new new text end 91.6 new text begin system, including estimates of the state's costs of doing so and any additional personnel new text end 91.7 new text begin requirements; new text end 91.8 new text begin (ii) recommendations on methods to recover the cost of implementing the system new text end 91.9 new text begin from the industry; new text end 91.10 new text begin (iii) evaluation of the extent to which the proposed system is sufficiently flexible new text end 91.11 new text begin and adaptable to adjust to modifications in the construction, packaging, formatting, and new text end 91.12 new text begin marketing of tobacco products by the industry; and new text end 91.13 new text begin (iv) recommendations to modify existing penalties or to impose new penalties or new text end 91.14 new text begin other sanctions to ensure compliance with the system. new text end 91.15     new text begin Subd. 2. new text end new text begin Due date. new text end new text begin The report required by subdivision 1 is due February 15, 2014. new text end 91.16     new text begin Subd. 3. new text end new text begin Procedure. new text end new text begin The report required under this section must be made in the new text end 91.17 new text begin manner provided under Minnesota Statutes, section 3.195. In addition, copies must be new text end 91.18 new text begin provided to the chairs and ranking minority members of the legislative committees and new text end 91.19 new text begin divisions with jurisdiction over taxation. new text end 91.20     new text begin Subd. 4. new text end new text begin Appropriation. new text end new text begin (a) $100,000 is appropriated from the general fund to the new text end 91.21 new text begin commissioner of revenue for fiscal year 2014 for the cost of preparing the report under new text end 91.22 new text begin subdivision 1. new text end 91.23 new text begin (b) The appropriation under this subdivision is a onetime appropriation and is not new text end 91.24 new text begin included in the base budget. new text end 91.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 91.26    Sec. 28. new text begin REPEALER. new text end 91.27 new text begin Minnesota Statutes 2012, sections 16A.725; and 256.9658, new text end new text begin are repealed. new text end 91.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2013. new text end 91.29ARTICLE 6 91.30INDIVIDUAL INCOME AND CORPORATE FRANCHISE TAXES 91.31    Section 1. Minnesota Statutes 2012, section 116J.8737, subdivision 1, is amended to 91.32read: 92.1    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms 92.2have the meanings given. 92.3(b) "Qualified small business" means a business that has been certified by the 92.4commissioner under subdivision 2. 92.5(c) "Qualified investor" means an investor who has been certified by the 92.6commissioner under subdivision 3. 92.7(d) "Qualified fund" means a pooled angel investment network fund that has been 92.8certified by the commissioner under subdivision 4. 92.9(e) "Qualified investment" means a cash investment in a qualified small business 92.10of a minimum of: 92.11(1) $10,000 in a calendar year by a qualified investor; or 92.12(2) $30,000 in a calendar year by a qualified fund. 92.13A qualified investment must be made in exchange for common stock, a partnership 92.14or membership interest, preferred stock, debt with mandatory conversion to equity, or an 92.15equivalent ownership interest as determined by the commissioner. 92.16(f) "Family" means a family member within the meaning of the Internal Revenue 92.17Code, section 267(c)(4). 92.18(g) "Pass-through entity" means a corporation that for the applicable taxable year is 92.19treated as an S corporation or a general partnership, limited partnership, limited liability 92.20partnership, trust, or limited liability company and which for the applicable taxable year is 92.21not taxed as a corporation under chapter 290. 92.22(h) "Intern" means a student of an accredited institution of higher education, or a 92.23former student who has graduated in the past six months from an accredited institution 92.24of higher education, who is employed by a qualified small business in a nonpermanent 92.25position for a duration of nine months or less that provides training and experience in the 92.26primary business activity of the business. 92.27 new text begin (i) "Liquidation event" means a conversion of qualified investment for cash, cash new text end 92.28 new text begin and other consideration, or any other form of equity or debt interest. new text end 92.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for qualified small businesses new text end 92.30 new text begin certified after June 30, 2013. new text end 92.31    Sec. 2. Minnesota Statutes 2012, section 116J.8737, subdivision 2, is amended to read: 92.32    Subd. 2. Certification of qualified small businesses. (a) Businesses may apply 92.33to the commissioner for certification as a qualified small business for a calendar year. 92.34The application must be in the form and be made under the procedures specified by the 92.35commissioner, accompanied by an application fee of $150. Application fees are deposited 93.1in the small business investment tax credit administration account in the special revenue 93.2fund. The application for certification for 2010 must be made available on the department's 93.3Web site by August 1, 2010. Applications for subsequent years' certification must be made 93.4available on the department's Web site by November 1 of the preceding year. 93.5(b) Within 30 days of receiving an application for certification under this subdivision, 93.6the commissioner must either certify the business as satisfying the conditions required of a 93.7qualified small business, request additional information from the business, or reject the 93.8application for certification. If the commissioner requests additional information from the 93.9business, the commissioner must either certify the business or reject the application within 93.1030 days of receiving the additional information. If the commissioner neither certifies the 93.11business nor rejects the application within 30 days of receiving the original application or 93.12within 30 days of receiving the additional information requested, whichever is later, then 93.13the application is deemed rejected, and the commissioner must refund the $150 application 93.14fee. A business that applies for certification and is rejected may reapply. 93.15(c) To receive certification, a business must satisfy all of the following conditions: 93.16(1) the business has its headquarters in Minnesota; 93.17(2) at least 51 percent of the business's employees are employed in Minnesota, and 93.1851 percent of the business's total payroll is paid or incurred in the state; 93.19(3) the business is engaged in, or is committed to engage in, innovation in Minnesota 93.20in one of the following as its primary business activity: 93.21(i) using proprietary technology to add value to a product, process, or service in a 93.22qualified high-technology field; 93.23(ii) researching or developing a proprietary product, process, or service in a qualified 93.24high-technology field; or 93.25(iii) researching, developing, or producing a new proprietary technology for use in 93.26the fields of agriculture, tourism, forestry, mining, manufacturing, or transportation; 93.27(4) other than the activities specifically listed in clause (3), the business is not 93.28engaged in real estate development, insurance, banking, lending, lobbying, political 93.29consulting, information technology consulting, wholesale or retail trade, leisure, 93.30hospitality, transportation, construction, ethanol production from corn, or professional 93.31services provided by attorneys, accountants, business consultants, physicians, or health 93.32care consultants; 93.33(5) the business has fewer than 25 employees; 93.34(6) the business must pay its employees annual wages of at least 175 percent of the 93.35federal poverty guideline for the year for a family of four and must pay its interns annual 93.36wages of at least 175 percent of the federal minimum wage used for federally covered 94.1employers, except that this requirement must be reduced proportionately for employees 94.2and interns who work less than full-time, and does not apply to an executive, officer, or 94.3member of the board of the business, or to any employee who owns, controls, or holds 94.4power to vote more than 20 percent of the outstanding securities of the business; 94.5(7) the business has new text begin (i) new text end not been in operation for more than ten years new text begin , or (ii) the new text end 94.6 new text begin business has not been in operation for more than 20 years if the business is engaged new text end 94.7 new text begin in the research, development, or production of medical devices or pharmaceuticals for new text end 94.8 new text begin which United States Food and Drug Administration approval is required for use in the new text end 94.9 new text begin treatment or diagnosis of a disease or condition new text end ; 94.10(8) the business has not previously received private equity investments of more 94.11than $4,000,000; and 94.12    (9) the business is not an entity disqualified under section 80A.50, paragraph (b), 94.13clause (3). new text begin ; and new text end 94.14 new text begin (10) the business has not issued securities that are traded on a public exchange. new text end 94.15(d) In applying the limit under paragraph (c), clause (5), the employees in all members 94.16of the unitary business, as defined in section 290.17, subdivision 4, must be included. 94.17(e) In order for a qualified investment in a business to be eligible for tax credits, new text begin : new text end 94.18 new text begin (1) new text end the business must have applied for and received certification for the calendar 94.19year in which the investment was made prior to the date on which the qualified investment 94.20was made. new text begin ; new text end 94.21 new text begin (2) the business must not have issued securities that are traded on a public exchange; new text end 94.22 new text begin (3) the business must not issue securities that are traded on a public exchange within new text end 94.23 new text begin 180 days after the date on which the qualified investment was made; and new text end 94.24 new text begin (4) the business must not have a liquidation event within 180 days after the date on new text end 94.25 new text begin which the qualified investment was made. new text end 94.26(f) The commissioner must maintain a list of businesses certified under this 94.27subdivision for the calendar year and make the list accessible to the public on the 94.28department's Web site. 94.29(g) For purposes of this subdivision, the following terms have the meanings given: 94.30(1) "qualified high-technology field" includes aerospace, agricultural processing, 94.31renewable energy, energy efficiency and conservation, environmental engineering, food 94.32technology, cellulosic ethanol, information technology, materials science technology, 94.33nanotechnology, telecommunications, biotechnology, medical device products, 94.34pharmaceuticals, diagnostics, biologicals, chemistry, veterinary science, and similar 94.35fields; and 95.1(2) "proprietary technology" means the technical innovations that are unique and 95.2legally owned or licensed by a business and includes, without limitation, those innovations 95.3that are patented, patent pending, a subject of trade secrets, or copyrighted. 95.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for qualified small businesses new text end 95.5 new text begin certified after June 30, 2013, except the amendments to paragraph (c), clause (7), are new text end 95.6 new text begin effective the day following final enactment. new text end 95.7    Sec. 3. Minnesota Statutes 2012, section 116J.8737, subdivision 8, is amended to read: 95.8    Subd. 8. Data privacy. (a) Data contained in an application submitted to the 95.9commissioner under subdivision 2, 3, or 4 are nonpublic data, or private data on 95.10individuals, as defined in section 13.02, subdivision 9 or 12, except that the following 95.11data items are public: 95.12(1) the name new text begin , mailing address, telephone number, e-mail address, contact person's new text end 95.13 new text begin name, and industry type new text end of a qualified small business upon approval of the application 95.14and certification by the commissioner under subdivision 2; 95.15(2) the name of a qualified investor upon approval of the application and certification 95.16by the commissioner under subdivision 3; 95.17(3) the name of a qualified fund upon approval of the application and certification 95.18by the commissioner under subdivision 4; 95.19(4) for credit certificates issued under subdivision 5, the amount of the credit 95.20certificate issued, amount of the qualifying investment, the name of the qualifying investor 95.21or qualifying fund that received the certificate, and the name of the qualifying small 95.22business in which the qualifying investment was made; 95.23(5) for credits revoked under subdivision 7, paragraph (a), the amount revoked and 95.24the name of the qualified investor or qualified fund; and 95.25(6) for credits revoked under subdivision 7, paragraphs (b) and (c), the amount 95.26revoked and the name of the qualified small business. 95.27(b) The following data, including data classified as nonpublic or private, must be 95.28provided to the consultant for use in conducting the program evaluation under subdivision 95.2910: 95.30(1) the commissioner of employment and economic development shall provide data 95.31contained in an application for certification received from a qualified small business, 95.32qualified investor, or qualified fund, and any annual reporting information received on a 95.33qualified small business, qualified investor, or qualified fund; and 95.34(2) the commissioner of revenue shall provide data contained in any applicable tax 95.35returns of a qualified small business, qualified investor, or qualified fund. 96.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 96.2    Sec. 4. new text begin [136A.129] GREATER MINNESOTA INTERNSHIP PROGRAM. new text end 96.3     new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin (a) For the purposes of this section, the terms defined in new text end 96.4 new text begin this subdivision have the meanings given to them. new text end 96.5 new text begin (b) "Eligible employer" means a taxpayer under section 290.01 with employees new text end 96.6 new text begin located in greater Minnesota. new text end 96.7 new text begin (c) "Eligible institution" means a Minnesota public postsecondary institution or a new text end 96.8 new text begin Minnesota private, nonprofit, baccalaureate degree-granting college or university. new text end 96.9 new text begin (d) "Eligible student" means a student enrolled in an eligible institution who has new text end 96.10 new text begin completed one-half of the credits necessary for the respective degree or certification. new text end 96.11 new text begin (e) "Greater Minnesota" means the area of the state outside of the counties of Anoka, new text end 96.12 new text begin Carver, Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, Washington, and new text end 96.13 new text begin Wright. new text end 96.14     new text begin Subd. 2. new text end new text begin Program established. new text end new text begin The Office of Higher Education shall administer new text end 96.15 new text begin a greater Minnesota internship program through eligible institutions to provide credit at new text end 96.16 new text begin the eligible institution for internships and tax credits for eligible employers who hire new text end 96.17 new text begin interns for employment in greater Minnesota. new text end 96.18     new text begin Subd. 3. new text end new text begin Program components. new text end new text begin (a) An intern must be an eligible student who has new text end 96.19 new text begin been admitted to a major program that is related to the intern experience as determined new text end 96.20 new text begin by the eligible institution. new text end 96.21 new text begin (b) To participate in the program, an eligible institution must: new text end 96.22 new text begin (1) enter into written agreements with eligible employers to provide internships that new text end 96.23 new text begin are at least 12 weeks long and located in greater Minnesota; new text end 96.24 new text begin (2) determine that the work experience of the internship is related to the eligible new text end 96.25 new text begin student's course of study; and new text end 96.26 new text begin (3) provide academic credit for the successful completion of the internship or ensure new text end 96.27 new text begin that it fulfills requirements necessary to complete a vocational technical education program. new text end 96.28 new text begin (c) To participate in the program, an eligible employer must enter into a written new text end 96.29 new text begin agreement with an eligible institution specifying that the intern: new text end 96.30 new text begin (1) would not have been hired without the tax credit described in subdivision 4; new text end 96.31 new text begin (2) did not work for the employer in the same or a similar job prior to entering new text end 96.32 new text begin the agreement; new text end 96.33 new text begin (3) does not replace an existing employee; new text end 96.34 new text begin (4) has not previously participated in the program; new text end 96.35 new text begin (5) will be employed at a location in greater Minnesota; new text end 97.1 new text begin (6) will be paid at least minimum wage for a minimum of 16 hours per week for a new text end 97.2 new text begin period of at least 12 weeks; and new text end 97.3 new text begin (7) will be supervised and evaluated by the employer. new text end 97.4 new text begin (d) The written agreement between the eligible institution and the eligible employer new text end 97.5 new text begin must certify a credit amount to the employer, not to exceed $2,000 per intern. The total new text end 97.6 new text begin dollar amount of credits that an eligible institution certifies to eligible employers in a new text end 97.7 new text begin calendar year may not exceed the amount of its allocation under subdivision 4. new text end 97.8 new text begin (e) Participating eligible institutions and eligible employers must report annually to new text end 97.9 new text begin the office. The report must include at least the following: new text end 97.10 new text begin (1) the number of interns hired; new text end 97.11 new text begin (2) the number of hours and weeks worked by interns; and new text end 97.12 new text begin (3) the compensation paid to interns. new text end 97.13 new text begin (f) An internship required to complete an academic program does not qualify for the new text end 97.14 new text begin greater Minnesota internship program under this section. new text end 97.15     new text begin Subd. 4. new text end new text begin Tax credit allowed. new text end new text begin An employer is entitled to a tax credit as provided in new text end 97.16 new text begin section 290.06, subdivision 36. The total amount of credits allocated in a calendar year new text end 97.17 new text begin must not exceed $2,000,000. The office shall determine relevant criteria to allocate the new text end 97.18 new text begin tax credits including the geographic distribution of credits to work locations outside the new text end 97.19 new text begin metropolitan area, and shall allocate credits to eligible institutions that meet the criteria on new text end 97.20 new text begin a first come, first served basis. Any credits allocated to an institution but not used may be new text end 97.21 new text begin reallocated to eligible institutions. The office shall allocate a portion of the administrative new text end 97.22 new text begin fee under section 290.06, subdivision 36, to participating eligible institutions for their new text end 97.23 new text begin administrative costs. new text end 97.24     new text begin Subd. 5. new text end new text begin Reports to the legislature. new text end new text begin (a) By February 1, 2015, the office and the new text end 97.25 new text begin Department of Revenue shall report to the legislature on the greater Minnesota internship new text end 97.26 new text begin program. The report must include at least the following: new text end 97.27 new text begin (1) the number and dollar amount of credits allowed; new text end 97.28 new text begin (2) the number of interns employed under the program; and new text end 97.29 new text begin (3) the cost of administering the program. new text end 97.30 new text begin (b) By February 1, 2016, the office and the Department of Revenue shall report to the new text end 97.31 new text begin legislature with an analysis of the effectiveness of the program in stimulating businesses new text end 97.32 new text begin to hire interns and in assisting participating interns in finding permanent career positions. new text end 97.33 new text begin This report must include the number of students who participated in the program who new text end 97.34 new text begin were subsequently employed full-time by the employer. new text end 97.35 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 97.36 new text begin December 31, 2013. new text end 98.1    Sec. 5. Minnesota Statutes 2012, section 289A.08, subdivision 3, is amended to read: 98.2    Subd. 3. Corporations. (a) A corporation that is subject to the state's jurisdiction to 98.3tax under section 290.014, subdivision 5, must file a return, except that a foreign operating 98.4corporation as defined in section 290.01, subdivision 6b, is not required to file a return. 98.5(b) Members of a unitary business that are required to file a combined report on one 98.6return must designate a member of the unitary business to be responsible for tax matters, 98.7including the filing of returns, the payment of taxes, additions to tax, penalties, interest, 98.8or any other payment, and for the receipt of refunds of taxes or interest paid in excess of 98.9taxes lawfully due. The designated member must be a member of the unitary business that 98.10is filing the single combined report and either: 98.11(1) a corporation that is subject to the taxes imposed by chapter 290; or 98.12(2) a corporation that is not subject to the taxes imposed by chapter 290: 98.13(i) Such corporation consents by filing the return as a designated member under this 98.14clause to remit taxes, penalties, interest, or additions to tax due from the members of the 98.15unitary business subject to tax, and receive refunds or other payments on behalf of other 98.16members of the unitary business. The member designated under this clause is a "taxpayer" 98.17for the purposes of this chapter and chapter 270C, and is liable for any liability imposed 98.18on the unitary business under this chapter and chapter 290. 98.19(ii) If the state does not otherwise have the jurisdiction to tax the member designated 98.20under this clause, consenting to be the designated member does not create the jurisdiction 98.21to impose tax on the designated member, other than as described in item (i). 98.22(iii) The member designated under this clause must apply for a business tax account 98.23identification number. 98.24(c) The commissioner shall adopt rules for the filing of one return on behalf of the 98.25members of an affiliated group of corporations that are required to file a combined report. 98.26All members of an affiliated group that are required to file a combined report must file one 98.27return on behalf of the members of the group under rules adopted by the commissioner. 98.28(d) If a corporation claims on a return that it has paid tax in excess of the amount of 98.29taxes lawfully due, that corporation must include on that return information necessary for 98.30payment of the tax in excess of the amount lawfully due by electronic means. 98.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 98.32 new text begin December 31, 2012. new text end 98.33    Sec. 6. Minnesota Statutes 2012, section 290.01, subdivision 19, as amended by Laws 98.342013, chapter 3, section 3, is amended to read: 99.1    Subd. 19. Net income. The term "net income" means the federal taxable income, 99.2as defined in section 63 of the Internal Revenue Code of 1986, as amended through the 99.3date named in this subdivision, incorporating the federal effective dates of changes to the 99.4Internal Revenue Code and any elections made by the taxpayer in accordance with the 99.5Internal Revenue Code in determining federal taxable income for federal income tax 99.6purposes, and with the modifications provided in subdivisions 19a to 19f. 99.7    In the case of a regulated investment company or a fund thereof, as defined in section 99.8851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment 99.9company taxable income as defined in section 852(b)(2) of the Internal Revenue Code, 99.10except that: 99.11    (1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal 99.12Revenue Code does not apply; 99.13    (2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal 99.14Revenue Code must be applied by allowing a deduction for capital gain dividends and 99.15exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal 99.16Revenue Code; and 99.17    (3) the deduction for dividends paid must also be applied in the amount of any 99.18undistributed capital gains which the regulated investment company elects to have treated 99.19as provided in section 852(b)(3)(D) of the Internal Revenue Code. 99.20    The net income of a real estate investment trust as defined and limited by section 99.21856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust 99.22taxable income as defined in section 857(b)(2) of the Internal Revenue Code. 99.23    The net income of a designated settlement fund as defined in section 468B(d) of 99.24the Internal Revenue Code means the gross income as defined in section 468B(b) of the 99.25Internal Revenue Code. 99.26    The Internal Revenue Code of 1986, as amended through April 14, 2011, shall be in 99.27effect for taxable years beginning after December 31, 1996, and before January 1, 2012, 99.28and for taxable years beginning after December 31, 2012. The Internal Revenue Code of 99.291986, as amended through January 3, 2013, is in effect for taxable years beginning after 99.30December 31, 2011, and before January 1, 2013. 99.31 new text begin The provisions of sections 315 and 331 of the American Taxpayer Relief Act of new text end 99.32 new text begin 2012, Public Law 112-240, extension of increased expensing limitations and treatment new text end 99.33 new text begin of certain real property as section 179 property and extension and modification of bonus new text end 99.34 new text begin depreciation, are effective at the same time they become effective for federal purposes. new text end 100.1    Except as otherwise provided, references to the Internal Revenue Code in 100.2subdivisions 19 to 19f mean the code in effect for purposes of determining net income for 100.3the applicable year. 100.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 100.5 new text begin December 31, 2012. new text end 100.6    Sec. 7. Minnesota Statutes 2012, section 290.01, subdivision 19b, is amended to read: 100.7    Subd. 19b. Subtractions from federal taxable income. For individuals, estates, 100.8and trusts, there shall be subtracted from federal taxable income: 100.9    (1) net interest income on obligations of any authority, commission, or 100.10instrumentality of the United States to the extent includable in taxable income for federal 100.11income tax purposes but exempt from state income tax under the laws of the United States; 100.12    (2) if included in federal taxable income, the amount of any overpayment of income 100.13tax to Minnesota or to any other state, for any previous taxable year, whether the amount 100.14is received as a refund or as a credit to another taxable year's income tax liability; 100.15    (3) the amount paid to others, less the amount used to claim the credit allowed under 100.16section 290.0674, not to exceed $1,625 for each qualifying child in grades kindergarten 100.17to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and 100.18transportation of each qualifying child in attending an elementary or secondary school 100.19situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a 100.20resident of this state may legally fulfill the state's compulsory attendance laws, which 100.21is not operated for profit, and which adheres to the provisions of the Civil Rights Act 100.22of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or 100.23tuition as defined in section 290.0674, subdivision 1, clause (1). As used in this clause, 100.24"textbooks" includes books and other instructional materials and equipment purchased 100.25or leased for use in elementary and secondary schools in teaching only those subjects 100.26legally and commonly taught in public elementary and secondary schools in this state. 100.27Equipment expenses qualifying for deduction includes expenses as defined and limited in 100.28section 290.0674, subdivision 1, clause (3). "Textbooks" does not include instructional 100.29books and materials used in the teaching of religious tenets, doctrines, or worship, the 100.30purpose of which is to instill such tenets, doctrines, or worship, nor does it include books 100.31or materials for, or transportation to, extracurricular activities including sporting events, 100.32musical or dramatic events, speech activities, driver's education, or similar programs. No 100.33deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or 100.34the qualifying child's vehicle to provide such transportation for a qualifying child. For 101.1purposes of the subtraction provided by this clause, "qualifying child" has the meaning 101.2given in section 32(c)(3) of the Internal Revenue Code; 101.3    (4) income as provided under section 290.0802; 101.4    (5) to the extent included in federal adjusted gross income, income realized on 101.5disposition of property exempt from tax under section 290.491; 101.6    (6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E) 101.7of the Internal Revenue Code in determining federal taxable income by an individual 101.8who does not itemize deductions for federal income tax purposes for the taxable year, an 101.9amount equal to 50 percent of the excess of charitable contributions over $500 allowable 101.10as a deduction for the taxable year under section 170(a) of the Internal Revenue Code, 101.11under the provisions of Public Law 109-1 and Public Law 111-126; 101.12    (7) for individuals who are allowed a federal foreign tax credit for taxes that do not 101.13qualify for a credit under section 290.06, subdivision 22, an amount equal to the carryover 101.14of subnational foreign taxes for the taxable year, but not to exceed the total subnational 101.15foreign taxes reported in claiming the foreign tax credit. For purposes of this clause, 101.16"federal foreign tax credit" means the credit allowed under section 27 of the Internal 101.17Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed 101.18under section 904(c) of the Internal Revenue Code minus national level foreign taxes to 101.19the extent they exceed the federal foreign tax credit; 101.20    (8) in each of the five tax years immediately following the tax year in which an 101.21addition is required under subdivision 19a, clause (7), or 19c, clause (15) new text begin (12) new text end , in the case 101.22of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the 101.23delayed depreciation. For purposes of this clause, "delayed depreciation" means the amount 101.24of the addition made by the taxpayer under subdivision 19a, clause (7), or subdivision 19c, 101.25clause (15) new text begin (12) new text end , in the case of a shareholder of an S corporation, minus the positive value 101.26of any net operating loss under section 172 of the Internal Revenue Code generated for the 101.27tax year of the addition. The resulting delayed depreciation cannot be less than zero; 101.28    (9) job opportunity building zone income as provided under section 469.316; 101.29    (10) to the extent included in federal taxable income, the amount of compensation 101.30paid to members of the Minnesota National Guard or other reserve components of the 101.31United States military for active service, excluding compensation for services performed 101.32under the Active Guard Reserve (AGR) program. For purposes of this clause, "active 101.33service" means (i) state active service as defined in section 190.05, subdivision 5a, clause 101.34(1); or (ii) federally funded state active service as defined in section 190.05, subdivision 101.355b , but "active service" excludes service performed in accordance with section 190.08, 101.36subdivision 3 ; 102.1    (11) to the extent included in federal taxable income, the amount of compensation 102.2paid to Minnesota residents who are members of the armed forces of the United States 102.3or United Nations for active duty performed under United States Code, title 10; or the 102.4authority of the United Nations; 102.5    (12) an amount, not to exceed $10,000, equal to qualified expenses related to a 102.6qualified donor's donation, while living, of one or more of the qualified donor's organs 102.7to another person for human organ transplantation. For purposes of this clause, "organ" 102.8means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow; 102.9"human organ transplantation" means the medical procedure by which transfer of a human 102.10organ is made from the body of one person to the body of another person; "qualified 102.11expenses" means unreimbursed expenses for both the individual and the qualified donor 102.12for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses 102.13may be subtracted under this clause only once; and "qualified donor" means the individual 102.14or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An 102.15individual may claim the subtraction in this clause for each instance of organ donation for 102.16transplantation during the taxable year in which the qualified expenses occur; 102.17    (13) in each of the five tax years immediately following the tax year in which an 102.18addition is required under subdivision 19a, clause (8), or 19c, clause (16) new text begin (13) new text end , in the case 102.19of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth of 102.20the addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (16) 102.21 new text begin (13) new text end , in the case of a shareholder of a corporation that is an S corporation, minus the 102.22positive value of any net operating loss under section 172 of the Internal Revenue Code 102.23generated for the tax year of the addition. If the net operating loss exceeds the addition for 102.24the tax year, a subtraction is not allowed under this clause; 102.25    (14) to the extent included in the federal taxable income of a nonresident of 102.26Minnesota, compensation paid to a service member as defined in United States Code, title 102.2710, section 101(a)(5), for military service as defined in the Servicemembers Civil Relief 102.28Act, Public Law 108-189, section 101(2); 102.29    (15) to the extent included in federal taxable income, the amount of national service 102.30educational awards received from the National Service Trust under United States Code, 102.31title 42, sections 12601 to 12604, for service in an approved Americorps National Service 102.32program; 102.33(16) to the extent included in federal taxable income, discharge of indebtedness 102.34income resulting from reacquisition of business indebtedness included in federal taxable 102.35income under section 108(i) of the Internal Revenue Code. This subtraction applies only 103.1to the extent that the income was included in net income in a prior year as a result of the 103.2addition under section 290.01, subdivision 19a, clause (16); and 103.3(17) the amount of the net operating loss allowed under section 290.095, subdivision 103.411 , paragraph (c) new text begin ; and new text end 103.5 new text begin (18) the amount of expenses not allowed for federal income tax purposes due new text end 103.6 new text begin to claiming the railroad track maintenance credit under section 45G(a) of the Internal new text end 103.7 new text begin Revenue Code new text end . 103.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 103.9 new text begin December 31, 2012. new text end 103.10    Sec. 8. Minnesota Statutes 2012, section 290.01, subdivision 19c, is amended to read: 103.11    Subd. 19c. Corporations; additions to federal taxable income. For corporations, 103.12there shall be added to federal taxable income: 103.13    (1) the amount of any deduction taken for federal income tax purposes for income, 103.14excise, or franchise taxes based on net income or related minimum taxes, including but not 103.15limited to the tax imposed under section 290.0922, paid by the corporation to Minnesota, 103.16another state, a political subdivision of another state, the District of Columbia, or any 103.17foreign country or possession of the United States; 103.18    (2) interest not subject to federal tax upon obligations of: the United States, its 103.19possessions, its agencies, or its instrumentalities; the state of Minnesota or any other 103.20state, any of its political or governmental subdivisions, any of its municipalities, or any 103.21of its governmental agencies or instrumentalities; the District of Columbia; or Indian 103.22tribal governments; 103.23    (3) exempt-interest dividends received as defined in section 852(b)(5) of the Internal 103.24Revenue Code; 103.25    (4) the amount of any net operating loss deduction taken for federal income tax 103.26purposes under section 172 or 832(c)(10) of the Internal Revenue Code or operations loss 103.27deduction under section 810 of the Internal Revenue Code; 103.28    (5) the amount of any special deductions taken for federal income tax purposes 103.29under sections 241 to 247 and 965 of the Internal Revenue Code; 103.30    (6) losses from the business of mining, as defined in section 290.05, subdivision 1, 103.31clause (a), that are not subject to Minnesota income tax; 103.32    (7) the amount of any capital losses deducted for federal income tax purposes under 103.33sections 1211 and 1212 of the Internal Revenue Code; 103.34    (8) the exempt foreign trade income of a foreign sales corporation under sections 103.35921(a) and 291 of the Internal Revenue Code; 104.1    (9) new text begin (8) new text end the amount of percentage depletion deducted under sections 611 through 104.2614 and 291 of the Internal Revenue Code; 104.3    (10) new text begin (9) new text end for certified pollution control facilities placed in service in a taxable year 104.4beginning before December 31, 1986, and for which amortization deductions were elected 104.5under section 169 of the Internal Revenue Code of 1954, as amended through December 104.631, 1985, the amount of the amortization deduction allowed in computing federal taxable 104.7income for those facilities; 104.8    (11) the amount of any deemed dividend from a foreign operating corporation 104.9determined pursuant to section 290.17, subdivision 4, paragraph (g). The deemed dividend 104.10shall be reduced by the amount of the addition to income required by clauses (20), (21), 104.11(22), and (23); 104.12    (12) new text begin (10) new text end the amount of a partner's pro rata share of net income which does not flow 104.13through to the partner because the partnership elected to pay the tax on the income under 104.14section 6242(a)(2) of the Internal Revenue Code; 104.15    (13) the amount of net income excluded under section 114 of the Internal Revenue 104.16Code; 104.17    (14) new text begin (11) new text end any increase in subpart F income, as defined in section 952(a) of the 104.18Internal Revenue Code, for the taxable year when subpart F income is calculated without 104.19regard to the provisions of Division C, title III, section 303(b) of Public Law 110-343; 104.20    (15) new text begin (12) new text end 80 percent of the depreciation deduction allowed under section 104.21168(k)(1)(A) and (k)(4)(A) of the Internal Revenue Code. For purposes of this clause, if 104.22the taxpayer has an activity that in the taxable year generates a deduction for depreciation 104.23under section 168(k)(1)(A) and (k)(4)(A) and the activity generates a loss for the taxable 104.24year that the taxpayer is not allowed to claim for the taxable year, "the depreciation 104.25allowed under section 168(k)(1)(A) and (k)(4)(A)" for the taxable year is limited to excess 104.26of the depreciation claimed by the activity under section 168(k)(1)(A) and (k)(4)(A) 104.27over the amount of the loss from the activity that is not allowed in the taxable year. In 104.28succeeding taxable years when the losses not allowed in the taxable year are allowed, the 104.29depreciation under section 168(k)(1)(A) and (k)(4)(A) is allowed; 104.30    (16) new text begin (13) new text end 80 percent of the amount by which the deduction allowed by section 179 of 104.31the Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal 104.32Revenue Code of 1986, as amended through December 31, 2003; 104.33    (17) new text begin (14) new text end to the extent deducted in computing federal taxable income, the amount of 104.34the deduction allowable under section 199 of the Internal Revenue Code; 104.35    (18) for taxable years beginning before January 1, 2013, the exclusion allowed under 104.36section 139A of the Internal Revenue Code for federal subsidies for prescription drug plans; 105.1    (19) new text begin (15) new text end the amount of expenses disallowed under section 290.10, subdivision 2; new text begin and new text end 105.2    (20) an amount equal to the interest and intangible expenses, losses, and costs paid, 105.3accrued, or incurred by any member of the taxpayer's unitary group to or for the benefit 105.4of a corporation that is a member of the taxpayer's unitary business group that qualifies 105.5as a foreign operating corporation. For purposes of this clause, intangible expenses and 105.6costs include: 105.7    (i) expenses, losses, and costs for, or related to, the direct or indirect acquisition, 105.8use, maintenance or management, ownership, sale, exchange, or any other disposition of 105.9intangible property; 105.10    (ii) losses incurred, directly or indirectly, from factoring transactions or discounting 105.11transactions; 105.12    (iii) royalty, patent, technical, and copyright fees; 105.13    (iv) licensing fees; and 105.14    (v) other similar expenses and costs. 105.15For purposes of this clause, "intangible property" includes stocks, bonds, patents, patent 105.16applications, trade names, trademarks, service marks, copyrights, mask works, trade 105.17secrets, and similar types of intangible assets. 105.18This clause does not apply to any item of interest or intangible expenses or costs paid, 105.19accrued, or incurred, directly or indirectly, to a foreign operating corporation with respect 105.20to such item of income to the extent that the income to the foreign operating corporation 105.21is income from sources without the United States as defined in subtitle A, chapter 1, 105.22subchapter N, part 1, of the Internal Revenue Code; 105.23    (21) except as already included in the taxpayer's taxable income pursuant to clause 105.24(20), any interest income and income generated from intangible property received or 105.25accrued by a foreign operating corporation that is a member of the taxpayer's unitary 105.26group. For purposes of this clause, income generated from intangible property includes: 105.27    (i) income related to the direct or indirect acquisition, use, maintenance or 105.28management, ownership, sale, exchange, or any other disposition of intangible property; 105.29    (ii) income from factoring transactions or discounting transactions; 105.30    (iii) royalty, patent, technical, and copyright fees; 105.31    (iv) licensing fees; and 105.32    (v) other similar income. 105.33For purposes of this clause, "intangible property" includes stocks, bonds, patents, patent 105.34applications, trade names, trademarks, service marks, copyrights, mask works, trade 105.35secrets, and similar types of intangible assets. 106.1This clause does not apply to any item of interest or intangible income received or accrued 106.2by a foreign operating corporation with respect to such item of income to the extent that 106.3the income is income from sources without the United States as defined in subtitle A, 106.4chapter 1, subchapter N, part 1, of the Internal Revenue Code; 106.5    (22) the dividends attributable to the income of a foreign operating corporation that 106.6is a member of the taxpayer's unitary group in an amount that is equal to the dividends 106.7paid deduction of a real estate investment trust under section 561(a) of the Internal 106.8Revenue Code for amounts paid or accrued by the real estate investment trust to the 106.9foreign operating corporation; 106.10    (23) the income of a foreign operating corporation that is a member of the taxpayer's 106.11unitary group in an amount that is equal to gains derived from the sale of real or personal 106.12property located in the United States; 106.13    (24) for taxable years beginning before January 1, 2010, the additional amount 106.14allowed as a deduction for donation of computer technology and equipment under section 106.15170(e)(6) of the Internal Revenue Code, to the extent deducted from taxable income; and 106.16(25) new text begin (16) new text end discharge of indebtedness income resulting from reacquisition of business 106.17indebtedness and deferred under section 108(i) of the Internal Revenue Code. 106.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 106.19 new text begin December 31, 2012. new text end 106.20    Sec. 9. Minnesota Statutes 2012, section 290.01, subdivision 19d, is amended to read: 106.21    Subd. 19d. Corporations; modifications decreasing federal taxable income. For 106.22corporations, there shall be subtracted from federal taxable income after the increases 106.23provided in subdivision 19c: 106.24    (1) the amount of foreign dividend gross-up added to gross income for federal 106.25income tax purposes under section 78 of the Internal Revenue Code; 106.26    (2) the amount of salary expense not allowed for federal income tax purposes due to 106.27claiming the work opportunity credit under section 51 of the Internal Revenue Code; 106.28    (3) any dividend (not including any distribution in liquidation) paid within the 106.29taxable year by a national or state bank to the United States, or to any instrumentality of 106.30the United States exempt from federal income taxes, on the preferred stock of the bank 106.31owned by the United States or the instrumentality; 106.32    (4) amounts disallowed for intangible drilling costs due to differences between 106.33this chapter and the Internal Revenue Code in taxable years beginning before January 106.341, 1987, as follows: 107.1    (i) to the extent the disallowed costs are represented by physical property, an amount 107.2equal to the allowance for depreciation under Minnesota Statutes 1986, section 290.09, 107.3subdivision 7 , subject to the modifications contained in subdivision 19e; and 107.4    (ii) to the extent the disallowed costs are not represented by physical property, an 107.5amount equal to the allowance for cost depletion under Minnesota Statutes 1986, section 107.6290.09, subdivision 8 ; 107.7    (5) the deduction for capital losses pursuant to sections 1211 and 1212 of the 107.8Internal Revenue Code, except that: 107.9    (i) for capital losses incurred in taxable years beginning after December 31, 1986, 107.10capital loss carrybacks shall not be allowed; 107.11    (ii) for capital losses incurred in taxable years beginning after December 31, 1986, 107.12a capital loss carryover to each of the 15 taxable years succeeding the loss year shall be 107.13allowed; 107.14    (iii) for capital losses incurred in taxable years beginning before January 1, 1987, a 107.15capital loss carryback to each of the three taxable years preceding the loss year, subject to 107.16the provisions of Minnesota Statutes 1986, section 290.16, shall be allowed; and 107.17    (iv) for capital losses incurred in taxable years beginning before January 1, 1987, 107.18a capital loss carryover to each of the five taxable years succeeding the loss year to the 107.19extent such loss was not used in a prior taxable year and subject to the provisions of 107.20Minnesota Statutes 1986, section 290.16, shall be allowed; 107.21    (6) an amount for interest and expenses relating to income not taxable for federal 107.22income tax purposes, if (i) the income is taxable under this chapter and (ii) the interest and 107.23expenses were disallowed as deductions under the provisions of section 171(a)(2), 265 or 107.24291 of the Internal Revenue Code in computing federal taxable income; 107.25    (7) in the case of mines, oil and gas wells, other natural deposits, and timber for 107.26which percentage depletion was disallowed pursuant to subdivision 19c, clause (9) new text begin (8) new text end , a 107.27reasonable allowance for depletion based on actual cost. In the case of leases the deduction 107.28must be apportioned between the lessor and lessee in accordance with rules prescribed 107.29by the commissioner. In the case of property held in trust, the allowable deduction must 107.30be apportioned between the income beneficiaries and the trustee in accordance with the 107.31pertinent provisions of the trust, or if there is no provision in the instrument, on the basis 107.32of the trust's income allocable to each; 107.33    (8) for certified pollution control facilities placed in service in a taxable year 107.34beginning before December 31, 1986, and for which amortization deductions were elected 107.35under section 169 of the Internal Revenue Code of 1954, as amended through December 108.131, 1985, an amount equal to the allowance for depreciation under Minnesota Statutes 108.21986, section 290.09, subdivision 7; 108.3    (9) amounts included in federal taxable income that are due to refunds of income, 108.4excise, or franchise taxes based on net income or related minimum taxes paid by the 108.5corporation to Minnesota, another state, a political subdivision of another state, the 108.6District of Columbia, or a foreign country or possession of the United States to the extent 108.7that the taxes were added to federal taxable income under section 290.01, subdivision 19c, 108.8clause (1), in a prior taxable year; 108.9    (10) 80 percent of royalties, fees, or other like income accrued or received from a 108.10foreign operating corporation or a foreign corporation which is part of the same unitary 108.11business as the receiving corporation, unless the income resulting from such payments or 108.12accruals is income from sources within the United States as defined in subtitle A, chapter 108.131, subchapter N, part 1, of the Internal Revenue Code; 108.14    (11) new text begin (10) new text end income or gains from the business of mining as defined in section 290.05, 108.15subdivision 1 , clause (a), that are not subject to Minnesota franchise tax; 108.16    (12) new text begin (11) new text end the amount of disability access expenditures in the taxable year which are not 108.17allowed to be deducted or capitalized under section 44(d)(7) of the Internal Revenue Code; 108.18    (13) new text begin (12) new text end the amount of qualified research expenses not allowed for federal income 108.19tax purposes under section 280C(c) of the Internal Revenue Code, but only to the extent 108.20that the amount exceeds the amount of the credit allowed under section 290.068; 108.21    (14) new text begin (13) new text end the amount of salary expenses not allowed for federal income tax purposes 108.22due to claiming the Indian employment credit under section 45A(a) of the Internal 108.23Revenue Code; 108.24    (15) for a corporation whose foreign sales corporation, as defined in section 922 108.25of the Internal Revenue Code, constituted a foreign operating corporation during any 108.26taxable year ending before January 1, 1995, and a return was filed by August 15, 1996, 108.27claiming the deduction under section 290.21, subdivision 4, for income received from 108.28the foreign operating corporation, an amount equal to multiplied by the amount of 108.29income excluded under section 114 of the Internal Revenue Code, provided the income is 108.30not income of a foreign operating company; 108.31    (16) new text begin (14) new text end any decrease in subpart F income, as defined in section 952(a) of the 108.32Internal Revenue Code, for the taxable year when subpart F income is calculated without 108.33regard to the provisions of Division C, title III, section 303(b) of Public Law 110-343; 108.34    (17) new text begin (15) new text end in each of the five tax years immediately following the tax year in which an 108.35addition is required under subdivision 19c, clause (15) new text begin (12) new text end , an amount equal to one-fifth 108.36of the delayed depreciation. For purposes of this clause, "delayed depreciation" means the 109.1amount of the addition made by the taxpayer under subdivision 19c, clause (15) new text begin (12) new text end . The 109.2resulting delayed depreciation cannot be less than zero; 109.3    (18) new text begin (16) new text end in each of the five tax years immediately following the tax year in which an 109.4addition is required under subdivision 19c, clause (16) new text begin (13) new text end , an amount equal to one-fifth 109.5of the amount of the addition; and 109.6(19) new text begin (17) new text end to the extent included in federal taxable income, discharge of indebtedness 109.7income resulting from reacquisition of business indebtedness included in federal taxable 109.8income under section 108(i) of the Internal Revenue Code. This subtraction applies only 109.9to the extent that the income was included in net income in a prior year as a result of the 109.10addition under section 290.01, subdivision 19c, clause (25). new text begin (16); and new text end 109.11 new text begin (18) the amount of expenses not allowed for federal income tax purposes due new text end 109.12 new text begin to claiming the railroad track maintenance credit under section 45G(a) of the Internal new text end 109.13 new text begin Revenue Code. new text end 109.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 109.15 new text begin December 31, 2012. new text end 109.16    Sec. 10. Minnesota Statutes 2012, section 290.06, subdivision 2c, is amended to read: 109.17    Subd. 2c. Schedules of rates for individuals, estates, and trusts. (a) The income 109.18taxes imposed by this chapter upon married individuals filing joint returns and surviving 109.19spouses as defined in section 2(a) of the Internal Revenue Code must be computed by 109.20applying to their taxable net income the following schedule of rates: 109.21    (1) On the first $25,680 new text begin $35,480 new text end , 5.35 percent; 109.22    (2) On all over $25,680 new text begin $35,480 new text end , but not over $102,030 new text begin $140,960 new text end , 7.05 percent; 109.23    (3) On all over $102,030 new text begin $140,960, but not over $250,000 new text end , 7.85 percent. new text begin ; new text end 109.24 new text begin (4) On all over $250,000, 9.85 percent. new text end 109.25    Married individuals filing separate returns, estates, and trusts must compute their 109.26income tax by applying the above rates to their taxable income, except that the income 109.27brackets will be one-half of the above amounts. 109.28    (b) The income taxes imposed by this chapter upon unmarried individuals must be 109.29computed by applying to taxable net income the following schedule of rates: 109.30    (1) On the first $17,570 new text begin $24,270 new text end , 5.35 percent; 109.31    (2) On all over $17,570 new text begin $24,270 new text end , but not over $57,710 new text begin $79,730 new text end , 7.05 percent; 109.32    (3) On all over $57,710 new text begin $79,730, but not over $150,000 new text end , 7.85 percent. new text begin ; new text end 109.33 new text begin (4) On all over $150,000, 9.85 percent. new text end 110.1    (c) The income taxes imposed by this chapter upon unmarried individuals qualifying 110.2as a head of household as defined in section 2(b) of the Internal Revenue Code must be 110.3computed by applying to taxable net income the following schedule of rates: 110.4    (1) On the first $21,630 new text begin $29,880 new text end , 5.35 percent; 110.5    (2) On all over $21,630 new text begin $29,880 new text end , but not over $86,910 new text begin $120,070 new text end , 7.05 percent; 110.6    (3) On all over $86,910 new text begin $120,070, but not over $200,000 new text end , 7.85 percent. new text begin ; new text end 110.7 new text begin (4) On all over $200,000, 9.85 percent. new text end 110.8    (d) In lieu of a tax computed according to the rates set forth in this subdivision, the 110.9tax of any individual taxpayer whose taxable net income for the taxable year is less than 110.10an amount determined by the commissioner must be computed in accordance with tables 110.11prepared and issued by the commissioner of revenue based on income brackets of not 110.12more than $100. The amount of tax for each bracket shall be computed at the rates set 110.13forth in this subdivision, provided that the commissioner may disregard a fractional part of 110.14a dollar unless it amounts to 50 cents or more, in which case it may be increased to $1. 110.15    (e) An individual who is not a Minnesota resident for the entire year must compute 110.16the individual's Minnesota income tax as provided in this subdivision. After the 110.17application of the nonrefundable credits provided in this chapter, the tax liability must 110.18then be multiplied by a fraction in which: 110.19    (1) the numerator is the individual's Minnesota source federal adjusted gross income 110.20as defined in section 62 of the Internal Revenue Code and increased by the additions 110.21required under section 290.01, subdivision 19a, clauses (1), (5), (6), (7), (8), (9), (12), 110.22(13), and (16) to (18), and reduced by the Minnesota assignable portion of the subtraction 110.23for United States government interest under section 290.01, subdivision 19b, clause 110.24(1), and the subtractions under section 290.01, subdivision 19b, clauses (8), (9), (13), 110.25(14), (16), and (17), after applying the allocation and assignability provisions of section 110.26290.081 , clause (a), or 290.17; and 110.27    (2) the denominator is the individual's federal adjusted gross income as defined in 110.28section 62 of the Internal Revenue Code of 1986, increased by the amounts specified in 110.29section 290.01, subdivision 19a, clauses (1), (5), (6), (7), (8), (9), (12), (13), and (16) to 110.30(18), and reduced by the amounts specified in section 290.01, subdivision 19b, clauses (1), 110.31(8), (9), (13), (14), (16), and (17). 110.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 110.33 new text begin December 31, 2012. new text end 110.34    Sec. 11. Minnesota Statutes 2012, section 290.06, subdivision 2d, is amended to read: 111.1    Subd. 2d. Inflation adjustment of brackets. (a) For taxable years beginning after 111.2December 31, 2000 new text begin 2013 new text end , the minimum and maximum dollar amounts for each rate 111.3bracket for which a tax is imposed in subdivision 2c shall be adjusted for inflation by the 111.4percentage determined under paragraph (b). For the purpose of making the adjustment as 111.5provided in this subdivision all of the rate brackets provided in subdivision 2c shall be the 111.6rate brackets as they existed for taxable years beginning after December 31, 1999 new text begin 2012 new text end , 111.7and before January 1, 2001 new text begin 2014 new text end . The rate applicable to any rate bracket must not be 111.8changed. The dollar amounts setting forth the tax shall be adjusted to reflect the changes 111.9in the rate brackets. The rate brackets as adjusted must be rounded to the nearest $10 111.10amount. If the rate bracket ends in $5, it must be rounded up to the nearest $10 amount. 111.11(b) The commissioner shall adjust the rate brackets and by the percentage determined 111.12pursuant to the provisions of section 1(f) of the Internal Revenue Code, except that in 111.13section 1(f)(3)(B) the word "1999" new text begin "2012" new text end shall be substituted for the word "1992." For 111.142001 new text begin 2014 new text end , the commissioner shall then determine the percent change from the 12 months 111.15ending on August 31, 1999 new text begin 2012 new text end , to the 12 months ending on August 31, 2000 new text begin 2013 new text end , and 111.16in each subsequent year, from the 12 months ending on August 31, 1999 new text begin 2012 new text end , to the 12 111.17months ending on August 31 of the year preceding the taxable year. The determination of 111.18the commissioner pursuant to this subdivision shall not be considered a "rule" and shall 111.19not be subject to the Administrative Procedure Act contained in chapter 14. 111.20No later than December 15 of each year, the commissioner shall announce the 111.21specific percentage that will be used to adjust the tax rate brackets. 111.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 111.23 new text begin December 31, 2012. new text end 111.24    Sec. 12. Minnesota Statutes 2012, section 290.06, is amended by adding a subdivision 111.25to read: 111.26     new text begin Subd. 36. new text end new text begin Greater Minnesota internship credit. new text end new text begin (a) A taxpayer who is an eligible new text end 111.27 new text begin employer may take a credit against the tax due under this chapter equal to the lesser of: new text end 111.28 new text begin (1) 40 percent of the compensation paid to an intern qualifying under the program new text end 111.29 new text begin established under section 136A.129, but not to exceed $2,000 per intern; or new text end 111.30 new text begin (2) the amount certified to the taxpayer by an eligible institution out of the new text end 111.31 new text begin institution's allocation of credits for the calendar year, as provided in section 136A.129. new text end 111.32 new text begin (b) Credits allowed to a partnership, a limited liability company taxed as a new text end 111.33 new text begin partnership, an S corporation, or multiple owners of property are passed through to the new text end 111.34 new text begin partners, members, shareholders, or owners, respectively, pro rata to each partner, member, new text end 111.35 new text begin shareholder, or owner based on their share of the entity's income for the taxable year. new text end 112.1 new text begin (c) If the amount of credit which the taxpayer is eligible to receive under this new text end 112.2 new text begin subdivision exceeds the taxpayer's tax liability under this chapter, the commissioner of new text end 112.3 new text begin revenue shall refund the excess to the taxpayer. new text end 112.4 new text begin (d) An amount necessary to pay claims for refund provided in this subdivision is new text end 112.5 new text begin appropriated from the general fund to the commissioner of revenue. new text end 112.6 new text begin (e) An amount equal to one percent of the total amount of the credits authorized new text end 112.7 new text begin under section 136A.129, subdivision 4, for an administrative fee for the Office of Higher new text end 112.8 new text begin Education and participating eligible institutions is appropriated from the general fund to new text end 112.9 new text begin the commissioner of revenue, for a transfer to the Office of Higher Education. new text end 112.10 new text begin (f) For purposes of this subdivision, the terms "eligible employer" and "eligible new text end 112.11 new text begin institution" have the meanings given in section 136A.129. new text end 112.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 112.13 new text begin December 31, 2013. new text end 112.14    Sec. 13. Minnesota Statutes 2012, section 290.0677, subdivision 2, is amended to read: 112.15    Subd. 2. Definitions. (a) For purposes of this section new text begin , new text end the following terms have 112.16the meanings given. 112.17    (b) "Designated area" means a: 112.18    (1) combat zone designated by Executive Order from the President of the United 112.19States; 112.20    (2) qualified hazardous duty area, designated in Public Law; or 112.21    (3) location certified by the U. S. Department of Defense as eligible for combat zone 112.22tax benefits due to the location's direct support of military operations. 112.23    (c) "Active military service" means active duty service in any of the United States 112.24armed forces, the National Guard, or reserves. 112.25    (d) "Qualified individual" means an individual who has new text begin : new text end 112.26    (1) either (i) new text begin met one of the following criteria: new text end 112.27     new text begin (i) has new text end served at least 20 years in the military or new text begin ; new text end 112.28    (ii) has a service-connected disability rating of 100 percent for a total and permanent 112.29disability; new text begin or new text end 112.30     new text begin (iii) has been determined by the military to be eligible for compensation from a new text end 112.31 new text begin pension or other retirement pay from the federal government for service in the military, new text end 112.32 new text begin as computed under United States Code, title 10, sections 1401 to 1414, 1447 to 1455, new text end 112.33 new text begin or 12733; new text end and 112.34    (2) separated from military service before the end of the taxable year. 113.1    (e) "Adjusted gross income" has the meaning given in section 61 of the Internal 113.2Revenue Code. 113.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 113.4 new text begin December 31, 2012. new text end 113.5    Sec. 14. Minnesota Statutes 2012, section 290.068, subdivision 3, is amended to read: 113.6    Subd. 3. Limitation; carryover. (a)(1) The credit for a taxable year beginning 113.7before January 1, 2010, new text begin and after December 31, 2012, new text end shall not exceed the liability for tax. 113.8"Liability for tax" for purposes of this section means the new text begin sum of the new text end tax imposed under 113.9section 290.06, subdivision new text begin subdivisions new text end 1 new text begin and 2c new text end , for the taxable year reduced by the sum 113.10of the nonrefundable credits allowed under this chapter new text begin , on all of the entities required to new text end 113.11 new text begin be included on the combined report of the unitary business. If the amount of the credit new text end 113.12 new text begin allowed exceeds the liability for tax of the taxpayer, but is allowed as a result of the new text end 113.13 new text begin liability for tax of other members of the unitary group for the taxable year, the taxpayer new text end 113.14 new text begin must allocate the excess as a research credit to another member of the unitary group new text end . 113.15    (2) In the case of a corporation which is a partner in a partnership, the credit allowed 113.16for the taxable year shall not exceed the lesser of the amount determined under clause (1) 113.17for the taxable year or an amount (separately computed with respect to the corporation's 113.18interest in the trade or business or entity) equal to the amount of tax attributable to that 113.19portion of taxable income which is allocable or apportionable to the corporation's interest 113.20in the trade or business or entity. 113.21    (b) If the amount of the credit determined under this section for any taxable year 113.22exceeds the limitation under clause (a) new text begin including amounts allocated to other members new text end 113.23 new text begin of the unitary group new text end , the excess shall be a research credit carryover to each of the 15 113.24succeeding taxable years. The entire amount of the excess unused credit for the taxable 113.25year shall be carried first to the earliest of the taxable years to which the credit may be 113.26carried and then to each successive year to which the credit may be carried. The amount 113.27of the unused credit which may be added under this clause shall not exceed the taxpayer's 113.28liability for tax less the research credit for the taxable year. 113.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 113.30 new text begin December 31, 2012. new text end 113.31    Sec. 15. Minnesota Statutes 2012, section 290.068, subdivision 6a, is amended to read: 113.32    Subd. 6a. Credit to be refundable. If the amount of credit allowed in this section 113.33for qualified research expenses incurred in taxable years beginning after December 31, 114.12009, new text begin and before January 1, 2013, new text end exceeds the taxpayer's tax liability under this chapter, 114.2the commissioner shall refund the excess amount. The credit allowed for qualified research 114.3expenses incurred in taxable years beginning after December 31, 2009, new text begin and before January new text end 114.4 new text begin 1, 2013, new text end must be used before any research credit earned under subdivision 3. 114.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 114.6 new text begin December 31, 2012. new text end 114.7    Sec. 16. Minnesota Statutes 2012, section 290.0681, subdivision 1, is amended to read: 114.8    Subdivision 1. Definitions. (a) For purposes of this section, the following terms 114.9have the meanings given. 114.10(b) "Account" means the historic credit administration account in the special 114.11revenue fund. 114.12(c) "Office" means the State Historic Preservation Office of the Minnesota Historical 114.13Society. 114.14(d) "Project" means rehabilitation of a certified historic structure, as defined in 114.15section 47(c)(3)(A) of the Internal Revenue Code, that is located in Minnesota and is 114.16allowed a federal credit under section 47(a)(2) of the Internal Revenue Code. 114.17(e) "Society" means the Minnesota Historical Society. 114.18 new text begin (f) "Federal credit" means the credit allowed under section 47(a)(2) of the Internal new text end 114.19 new text begin Revenue Code. new text end 114.20 new text begin (g) "Placed in service" has the meaning used in section 47 of the Internal Revenue new text end 114.21 new text begin Code. new text end 114.22 new text begin (h) "Qualified rehabilitation expenditures" has the meaning given in section 47 of new text end 114.23 new text begin the Internal Revenue Code. new text end 114.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 114.25    Sec. 17. Minnesota Statutes 2012, section 290.0681, subdivision 3, is amended to read: 114.26    Subd. 3. Applications; allocations. (a) To qualify for a credit or grant under this 114.27section, the developer of a project must apply to the office before the rehabilitation begins. 114.28The application must contain the information and be in the form prescribed by the office. 114.29The office may collect a fee for application of up to $5,000 new text begin 0.5 percent of qualified new text end 114.30 new text begin rehabilitation expenditures, up to $40,000 new text end , based on estimated qualified rehabilitation 114.31expenses new text begin expenditures new text end , to offset costs associated with personnel and administrative 114.32expenses related to administering the credit and preparing the economic impact report 114.33in subdivision 9. Application fees are deposited in the account. The application must 115.1indicate if the application is for a credit or a grant in lieu of the credit or a combination of 115.2the two and designate the taxpayer qualifying for the credit or the recipient of the grant. 115.3    (b) Upon approving an application for credit, the office shall issue allocation 115.4certificates that: 115.5    (1) verify eligibility for the credit or grant; 115.6    (2) state the amount of credit or grant anticipated with the project, with the credit 115.7amount equal to 100 percent and the grant amount equal to 90 percent of the federal 115.8credit anticipated in the application; 115.9    (3) state that the credit or grant allowed may increase or decrease if the federal 115.10credit the project receives at the time it is placed in service is different than the amount 115.11anticipated at the time the allocation certificate is issued; and 115.12    (4) state the fiscal year in which the credit or grant is allocated, and that the taxpayer 115.13or grant recipient is entitled to receive the credit or grant at the time the project is placed 115.14in service, provided that date is within three calendar years following the issuance of 115.15the allocation certificate. 115.16    (c) The office, in consultation with the commissioner of revenue, shall determine 115.17if the project is eligible for a credit or a grant under this section new text begin and must notify the new text end 115.18 new text begin developer in writing of its determination new text end . Eligibility for the credit is subject to review 115.19and audit by the commissioner of revenue. 115.20    (d) The federal credit recapture and repayment requirements under section 50 of the 115.21Internal Revenue Code do not apply to the credit allowed under this section. 115.22 new text begin (e) Any decision of the office under paragraph (c) may be challenged as a contested new text end 115.23 new text begin case under chapter 14. The contested case proceeding must be initiated within 45 days of new text end 115.24 new text begin the date of written notification by the office. new text end 115.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment new text end 115.26 new text begin and the change in paragraph (a) applies to applications first received on or after the day new text end 115.27 new text begin following final enactment. new text end 115.28    Sec. 18. Minnesota Statutes 2012, section 290.0681, subdivision 4, is amended to read: 115.29    Subd. 4. Credit certificates new text begin ; grants new text end . (a)(1) The developer of a project for which the 115.30office has issued an allocation certificate must notify the office when the project is placed 115.31in service. Upon verifying that the project has been placed in service, and was allowed a 115.32federal credit, the office must issue a credit certificate to the taxpayer designated in the 115.33application or must issue a grant to the recipient designated in the application. The credit 115.34certificate must state the amount of the credit. 115.35    (2) The credit amount equals the federal credit allowed for the project. 116.1    (3) The grant amount equals 90 percent of the federal credit allowed for the project. 116.2    (b) The recipient of a credit certificate may assign the certificate to another taxpayer, 116.3which is then allowed the credit under this section or section 297I.20, subdivision 3. new text begin An new text end 116.4 new text begin assignment is not valid unless the assignee notifies the commissioner within 30 days of the new text end 116.5 new text begin date that the assignment is made. new text end The commissioner shall prescribe the forms necessary 116.6for new text begin notifying the commissioner of the assignment of a credit certificate and for new text end claiming 116.7a credit by assignment. 116.8     new text begin (c) Credits passed through to partners, members, shareholders, or owners pursuant to new text end 116.9 new text begin subdivision 5 are not an assignment of a credit certificate under this subdivision. new text end 116.10     new text begin (d) A grant agreement between the office and the recipient of a grant may allow the new text end 116.11 new text begin grant to be issued to another individual or entity. new text end 116.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 116.13    Sec. 19. Minnesota Statutes 2012, section 290.0681, subdivision 5, is amended to read: 116.14    Subd. 5. Partnerships; multiple owners. Credits granted to a partnership, a limited 116.15liability company taxed as a partnership, S corporation, or multiple owners of property 116.16are passed through to the partners, members, shareholders, or owners, respectively, pro 116.17rata to each partner, member, shareholder, or owner based on their share of the entity's 116.18assets or as specially allocated in their organizational documents new text begin or any other executed new text end 116.19 new text begin agreement new text end , as of the last day of the taxable year. 116.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 116.21    Sec. 20. Minnesota Statutes 2012, section 290.0681, subdivision 10, is amended to read: 116.22    Subd. 10. Sunset. This section expires after fiscal year 2015 new text begin 2021 new text end , except that 116.23the office's authority to issue credit certificates under subdivision 4 based on allocation 116.24certificates that were issued before fiscal year 2016 new text begin 2022 new text end remains in effect through 2018 116.25 new text begin 2024 new text end , and the reporting requirements in subdivision 9 remain in effect through the year 116.26following the year in which all allocation certificates have either been canceled or resulted 116.27in issuance of credit certificates, or 2019 new text begin 2025 new text end , whichever is earlier. 116.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 116.29    Sec. 21. Minnesota Statutes 2012, section 290.091, subdivision 1, is amended to read: 116.30    Subdivision 1. Imposition of tax. In addition to all other taxes imposed by this 116.31chapter a tax is imposed on individuals, estates, and trusts equal to the excess (if any) of 117.1(a) an amount equal to 6.4 new text begin 6.75 new text end percent of alternative minimum taxable income after 117.2subtracting the exemption amount, over 117.3(b) the regular tax for the taxable year. 117.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 117.5 new text begin December 31, 2012. new text end 117.6    Sec. 22. Minnesota Statutes 2012, section 290.091, subdivision 2, is amended to read: 117.7    Subd. 2. Definitions. For purposes of the tax imposed by this section, the following 117.8terms have the meanings given: 117.9    (a) "Alternative minimum taxable income" means the sum of the following for 117.10the taxable year: 117.11    (1) the taxpayer's federal alternative minimum taxable income as defined in section 117.1255(b)(2) of the Internal Revenue Code; 117.13    (2) the taxpayer's itemized deductions allowed in computing federal alternative 117.14minimum taxable income, but excluding: 117.15    (i) the charitable contribution deduction under section 170 of the Internal Revenue 117.16Code; 117.17    (ii) the medical expense deduction; 117.18    (iii) the casualty, theft, and disaster loss deduction; and 117.19    (iv) the impairment-related work expenses of a disabled person; 117.20    (3) for depletion allowances computed under section 613A(c) of the Internal 117.21Revenue Code, with respect to each property (as defined in section 614 of the Internal 117.22Revenue Code), to the extent not included in federal alternative minimum taxable income, 117.23the excess of the deduction for depletion allowable under section 611 of the Internal 117.24Revenue Code for the taxable year over the adjusted basis of the property at the end of the 117.25taxable year (determined without regard to the depletion deduction for the taxable year); 117.26    (4) to the extent not included in federal alternative minimum taxable income, the 117.27amount of the tax preference for intangible drilling cost under section 57(a)(2) of the 117.28Internal Revenue Code determined without regard to subparagraph (E); 117.29    (5) to the extent not included in federal alternative minimum taxable income, the 117.30amount of interest income as provided by section 290.01, subdivision 19a, clause (1); and 117.31    (6) the amount of addition required by section 290.01, subdivision 19a, clauses (7) 117.32to (9), (12), (13), and (16) to (18); 117.33    less the sum of the amounts determined under the following: 117.34    (1) interest income as defined in section 290.01, subdivision 19b, clause (1); 118.1    (2) an overpayment of state income tax as provided by section 290.01, subdivision 118.219b , clause (2), to the extent included in federal alternative minimum taxable income; 118.3    (3) the amount of investment interest paid or accrued within the taxable year on 118.4indebtedness to the extent that the amount does not exceed net investment income, as 118.5defined in section 163(d)(4) of the Internal Revenue Code. Interest does not include 118.6amounts deducted in computing federal adjusted gross income; 118.7    (4) amounts subtracted from federal taxable income as provided by section 290.01, 118.8subdivision 19b , clauses (6), (8) to (14), and (16); and 118.9(5) the amount of the net operating loss allowed under section 290.095, subdivision 118.1011 , paragraph (c). 118.11    In the case of an estate or trust, alternative minimum taxable income must be 118.12computed as provided in section 59(c) of the Internal Revenue Code. 118.13    (b) "Investment interest" means investment interest as defined in section 163(d)(3) 118.14of the Internal Revenue Code. 118.15    (c) "Net minimum tax" means the minimum tax imposed by this section. 118.16    (d) "Regular tax" means the tax that would be imposed under this chapter (without 118.17regard to this section and section 290.032), reduced by the sum of the nonrefundable 118.18credits allowed under this chapter. 118.19    (e) "Tentative minimum tax" equals 6.4 new text begin 6.75 new text end percent of alternative minimum taxable 118.20income after subtracting the exemption amount determined under subdivision 3. 118.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 118.22 new text begin December 31, 2012. new text end 118.23    Sec. 23. Minnesota Statutes 2012, section 290.091, subdivision 6, is amended to read: 118.24    Subd. 6. Credit for prior years' liability. (a) A credit is allowed against the tax 118.25imposed by this chapter on individuals, trusts, and estates equal to the minimum tax 118.26credit for the taxable year. The minimum tax credit equals the adjusted net minimum 118.27tax for taxable years beginning after December 31, 1988, reduced by the minimum tax 118.28credits allowed in a prior taxable year. The credit may not exceed the excess (if any) for 118.29the taxable year of 118.30(1) the regular tax, over 118.31(2) the greater of (i) the tentative alternative minimum tax, or (ii) zero. 118.32(b) The adjusted net minimum tax for a taxable year equals the lesser of the net 118.33minimum tax or the excess (if any) of 118.34(1) the tentative minimum tax, over 118.35(2) 6.4 new text begin 6.75 new text end percent of the sum of 119.1(i) adjusted gross income as defined in section 62 of the Internal Revenue Code, 119.2(ii) interest income as defined in section 290.01, subdivision 19a, clause (1), 119.3(iii) interest on specified private activity bonds, as defined in section 57(a)(5) of the 119.4Internal Revenue Code, to the extent not included under clause (ii), 119.5(iv) depletion as defined in section 57(a)(1), determined without regard to the last 119.6sentence of paragraph (1), of the Internal Revenue Code, less 119.7(v) the deductions allowed in computing alternative minimum taxable income 119.8provided in subdivision 2, paragraph (a), clause (2) of the first series of clauses and clauses 119.9(1), (2), and (3) of the second series of clauses, and 119.10(vi) the exemption amount determined under subdivision 3. 119.11In the case of an individual who is not a Minnesota resident for the entire year, 119.12adjusted net minimum tax must be multiplied by the fraction defined in section 290.06, 119.13subdivision 2c , paragraph (e). In the case of a trust or estate, adjusted net minimum tax 119.14must be multiplied by the fraction defined under subdivision 4, paragraph (b). 119.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 119.16 new text begin December 31, 2012. new text end 119.17    Sec. 24. Minnesota Statutes 2012, section 290.0921, subdivision 3, is amended to read: 119.18    Subd. 3. Alternative minimum taxable income. "Alternative minimum taxable 119.19income" is Minnesota net income as defined in section 290.01, subdivision 19, and 119.20includes the adjustments and tax preference items in sections 56, 57, 58, and 59(d), (e), 119.21(f), and (h) of the Internal Revenue Code. If a corporation files a separate company 119.22Minnesota tax return, the minimum tax must be computed on a separate company basis. 119.23If a corporation is part of a tax group filing a unitary return, the minimum tax must be 119.24computed on a unitary basis. The following adjustments must be made. 119.25(1) For purposes of the depreciation adjustments under section 56(a)(1) and 119.2656(g)(4)(A) of the Internal Revenue Code, the basis for depreciable property placed in 119.27service in a taxable year beginning before January 1, 1990, is the adjusted basis for federal 119.28income tax purposes, including any modification made in a taxable year under section 119.29290.01, subdivision 19e , or Minnesota Statutes 1986, section 290.09, subdivision 7, 119.30paragraph (c). 119.31For taxable years beginning after December 31, 2000, the amount of any remaining 119.32modification made under section 290.01, subdivision 19e, or Minnesota Statutes 1986, 119.33section 290.09, subdivision 7, paragraph (c), not previously deducted is a depreciation 119.34allowance in the first taxable year after December 31, 2000. 120.1(2) The portion of the depreciation deduction allowed for federal income tax 120.2purposes under section 168(k) of the Internal Revenue Code that is required as an addition 120.3under section 290.01, subdivision 19c, clause (15) new text begin (12) new text end , is disallowed in determining 120.4alternative minimum taxable income. 120.5(3) The subtraction for depreciation allowed under section 290.01, subdivision 120.619d , clause (17) new text begin (15) new text end , is allowed as a depreciation deduction in determining alternative 120.7minimum taxable income. 120.8(4) The alternative tax net operating loss deduction under sections 56(a)(4) and 56(d) 120.9of the Internal Revenue Code does not apply. 120.10(5) The special rule for certain dividends under section 56(g)(4)(C)(ii) of the Internal 120.11Revenue Code does not apply. 120.12(6) The special rule for dividends from section 936 companies under section 120.1356(g)(4)(C)(iii) does not apply. 120.14(7) new text begin (6) new text end The tax preference for depletion under section 57(a)(1) of the Internal 120.15Revenue Code does not apply. 120.16(8) new text begin (7) new text end The tax preference for intangible drilling costs under section 57(a)(2) of the 120.17Internal Revenue Code must be calculated without regard to subparagraph (E) and the 120.18subtraction under section 290.01, subdivision 19d, clause (4). 120.19(9) new text begin (8) new text end The tax preference for tax exempt interest under section 57(a)(5) of the 120.20Internal Revenue Code does not apply. 120.21(10) new text begin (9) new text end The tax preference for charitable contributions of appreciated property 120.22under section 57(a)(6) of the Internal Revenue Code does not apply. 120.23(11) new text begin (10) new text end For purposes of calculating the tax preference for accelerated depreciation 120.24or amortization on certain property placed in service before January 1, 1987, under section 120.2557(a)(7) of the Internal Revenue Code, the deduction allowable for the taxable year is the 120.26deduction allowed under section 290.01, subdivision 19e. 120.27For taxable years beginning after December 31, 2000, the amount of any remaining 120.28modification made under section 290.01, subdivision 19e, not previously deducted is a 120.29depreciation or amortization allowance in the first taxable year after December 31, 2004. 120.30(12) new text begin (11) new text end For purposes of calculating the adjustment for adjusted current earnings 120.31in section 56(g) of the Internal Revenue Code, the term "alternative minimum taxable 120.32income" as it is used in section 56(g) of the Internal Revenue Code, means alternative 120.33minimum taxable income as defined in this subdivision, determined without regard to the 120.34adjustment for adjusted current earnings in section 56(g) of the Internal Revenue Code. 120.35(13) new text begin (12) new text end For purposes of determining the amount of adjusted current earnings under 120.36section 56(g)(3) of the Internal Revenue Code, no adjustment shall be made under section 121.156(g)(4) of the Internal Revenue Code with respect to (i) the amount of foreign dividend 121.2gross-up subtracted as provided in section 290.01, subdivision 19d, clause (1), new text begin or new text end (ii) the 121.3amount of refunds of income, excise, or franchise taxes subtracted as provided in section 121.4290.01, subdivision 19d , clause (9), or (iii) the amount of royalties, fees or other like 121.5income subtracted as provided in section 290.01, subdivision 19d, clause (10). 121.6(14) new text begin (13) new text end Alternative minimum taxable income excludes the income from operating 121.7in a job opportunity building zone as provided under section 469.317. 121.8(15) new text begin (14) new text end Alternative minimum taxable income excludes the income from operating 121.9in a biotechnology and health sciences industry zone as provided under section 469.337. 121.10Items of tax preference must not be reduced below zero as a result of the 121.11modifications in this subdivision. 121.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 121.13 new text begin December 31, 2012. new text end 121.14    Sec. 25. Minnesota Statutes 2012, section 290.0922, subdivision 1, is amended to read: 121.15    Subdivision 1. Imposition. (a) In addition to the tax imposed by this chapter without 121.16regard to this section, the franchise tax imposed on a corporation required to file under 121.17section 289A.08, subdivision 3, other than a corporation treated as an "S" corporation 121.18under section 290.9725 for the taxable year includes a tax equal to the following amounts: 121.19 121.20 If the sum of the corporation's Minnesota property, payrolls, and sales or receipts is: the tax equals: 121.21 less than $ 500,000 $ 0 121.22 $ 500,000 to $ 999,999 $ 100 121.23 $ 1,000,000 to $ 4,999,999 $ 300 121.24 $ 5,000,000 to $ 9,999,999 $ 1,000 121.25 $ 10,000,000 to $ 19,999,999 $ 2,000 121.26 $ 20,000,000 or more $ 5,000 121.27 new text begin less than new text end new text begin $ new text end new text begin 930,000 new text end new text begin $ new text end new text begin 0 new text end 121.28 new text begin $ new text end new text begin 930,000 new text end new text begin to new text end new text begin $ new text end new text begin 1,869,999 new text end new text begin $ new text end new text begin 190 new text end 121.29 new text begin $ new text end new text begin 1,870,000 new text end new text begin to new text end new text begin $ new text end new text begin 9,339,999 new text end new text begin $ new text end new text begin 560 new text end 121.30 new text begin $ new text end new text begin 9,340,000 new text end new text begin to new text end new text begin $ new text end new text begin 18,679,999 new text end new text begin $ new text end new text begin 1,870 new text end 121.31 new text begin $ new text end new text begin 18,680,000 new text end new text begin to new text end new text begin $ new text end new text begin 37,359,999 new text end new text begin $ new text end new text begin 3,740 new text end 121.32 new text begin $ new text end new text begin 37,360,000 new text end new text begin or new text end new text begin more new text end new text begin $ new text end new text begin 9,340 new text end 121.33    (b) A tax is imposed for each taxable year on a corporation required to file a return 121.34under section 289A.12, subdivision 3, that is treated as an "S" corporation under section 121.35290.9725 and on a partnership required to file a return under section 289A.12, subdivision 121.363 , other than a partnership that derives over 80 percent of its income from farming. The 121.37tax imposed under this paragraph is due on or before the due date of the return for the 122.1taxpayer due under section 289A.18, subdivision 1. The commissioner shall prescribe 122.2the return to be used for payment of this tax. The tax under this paragraph is equal to 122.3the following amounts: 122.4 122.5 122.6 122.7 If the sum of the S corporation's or partnership's Minnesota property, payrolls, and sales or receipts is: the tax equals: 122.8 less than $ 500,000 $ 0 122.9 $ 500,000 to $ 999,999 $ 100 122.10 $ 1,000,000 to $ 4,999,999 $ 300 122.11 $ 5,000,000 to $ 9,999,999 $ 1,000 122.12 $ 10,000,000 to $ 19,999,999 $ 2,000 122.13 $ 20,000,000 or more $ 5,000 122.14 new text begin less than new text end new text begin $ new text end new text begin 930,000 new text end new text begin $ new text end new text begin 0 new text end 122.15 new text begin $ new text end new text begin 930,000 new text end new text begin to new text end new text begin $ new text end new text begin 1,869,999 new text end new text begin $ new text end new text begin 190 new text end 122.16 new text begin $ new text end new text begin 1,870,000 new text end new text begin to new text end new text begin $ new text end new text begin 9,339,999 new text end new text begin $ new text end new text begin 560 new text end 122.17 new text begin $ new text end new text begin 9,340,000 new text end new text begin to new text end new text begin $ new text end new text begin 18,679,999 new text end new text begin $ new text end new text begin 1,870 new text end 122.18 new text begin $ new text end new text begin 18,680,000 new text end new text begin to new text end new text begin $ new text end new text begin 37,359,999 new text end new text begin $ new text end new text begin 3,740 new text end 122.19 new text begin $ new text end new text begin 37,360,000 new text end new text begin or new text end new text begin more new text end new text begin $ new text end new text begin 9,340 new text end 122.20     new text begin (c) The commissioner shall adjust the dollar amounts of both the tax and the property, new text end 122.21 new text begin payrolls, and sales or receipts thresholds in paragraphs (a) and (b) by the percentage new text end 122.22 new text begin determined pursuant to the provisions of section 1(f) of the Internal Revenue Code, except new text end 122.23 new text begin that in section 1(f)(3)(B) the word "2012" must be substituted for the word "1992." For new text end 122.24 new text begin 2014, the commissioner shall determine the percentage change from the 12 months ending new text end 122.25 new text begin on August 31, 2012, to the 12 months ending on August 31, 2013, and in each subsequent new text end 122.26 new text begin year, from the 12 months ending on August 31, 2012, to the 12 months ending on August new text end 122.27 new text begin 31 of the year preceding the taxable year. The determination of the commissioner pursuant new text end 122.28 new text begin to this subdivision is not a "rule" subject to the Administrative Procedure Act contained in new text end 122.29 new text begin chapter 14. The tax amounts as adjusted must be rounded to the nearest $10 amount and new text end 122.30 new text begin the threshold amounts must be adjusted to the nearest $10,000 amount. For tax amounts new text end 122.31 new text begin that end in $5, the amount is rounded up to the nearest $10 amount and for the threshold new text end 122.32 new text begin amounts that end in $5,000, the amount is rounded up to the nearest $10,000. new text end 122.33 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 122.34 new text begin December 31, 2012. new text end 122.35    Sec. 26. Minnesota Statutes 2012, section 290.095, subdivision 2, is amended to read: 122.36    Subd. 2. Defined and limited. (a) The term "net operating loss" as used in this 122.37section shall mean a net operating loss as defined in section 172(c) of the Internal Revenue 122.38Code, with the modifications specified in subdivision 4. The deductions provided in 123.1section 290.21 and the modification provided in section 290.01, subdivision 19d, clause 123.2(10), cannot be used in the determination of a net operating loss. 123.3(b) The term "net operating loss deduction" as used in this section means the 123.4aggregate of the net operating loss carryovers to the taxable year, computed in accordance 123.5with subdivision 3. The provisions of section 172(b) of the Internal Revenue Code relating 123.6to the carryback of net operating losses, do not apply. 123.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 123.8 new text begin December 31, 2012. new text end 123.9    Sec. 27. Minnesota Statutes 2012, section 290.10, subdivision 1, is amended to read: 123.10    Subdivision 1. Expenses, interest, and taxes. Except as provided in section 290.17, 123.11subdivision 4 , paragraph (i), In computing the net income of a taxpayer no deduction shall 123.12in any case be allowed for expenses, interest and taxes connected with or allocable against 123.13the production or receipt of all income not included in the measure of the tax imposed by 123.14this chapter, except that for corporations engaged in the business of mining or producing 123.15iron ore, the mining of which is subject to the occupation tax imposed by section 298.01, 123.16subdivision 4 , this shall not prevent the deduction of expenses and other items to the extent 123.17that the expenses and other items are allowable under this chapter and are not deductible, 123.18capitalizable, retainable in basis, or taken into account by allowance or otherwise in 123.19computing the occupation tax and do not exceed the amounts taken for federal income tax 123.20purposes for that year. Occupation taxes imposed under chapter 298, royalty taxes imposed 123.21under chapter 299, or depletion expenses may not be deducted under this subdivision. 123.22    Sec. 28. Minnesota Statutes 2012, section 290.17, subdivision 4, is amended to read: 123.23    Subd. 4. Unitary business principle. (a) If a trade or business conducted wholly 123.24within this state or partly within and partly without this state is part of a unitary business, 123.25the entire income of the unitary business is subject to apportionment pursuant to section 123.26290.191 . Notwithstanding subdivision 2, paragraph (c), none of the income of a unitary 123.27business is considered to be derived from any particular source and none may be allocated 123.28to a particular place except as provided by the applicable apportionment formula. The 123.29provisions of this subdivision do not apply to business income subject to subdivision 5, 123.30income of an insurance company, or income of an investment company determined under 123.31section 290.36. 123.32(b) The term "unitary business" means business activities or operations which 123.33result in a flow of value between them. The term may be applied within a single legal 124.1entity or between multiple entities and without regard to whether each entity is a sole 124.2proprietorship, a corporation, a partnership or a trust. 124.3(c) Unity is presumed whenever there is unity of ownership, operation, and use, 124.4evidenced by centralized management or executive force, centralized purchasing, 124.5advertising, accounting, or other controlled interaction, but the absence of these 124.6centralized activities will not necessarily evidence a nonunitary business. Unity is also 124.7presumed when business activities or operations are of mutual benefit, dependent upon or 124.8contributory to one another, either individually or as a group. 124.9(d) Where a business operation conducted in Minnesota is owned by a business 124.10entity that carries on business activity outside the state different in kind from that 124.11conducted within this state, and the other business is conducted entirely outside the state, it 124.12is presumed that the two business operations are unitary in nature, interrelated, connected, 124.13and interdependent unless it can be shown to the contrary. 124.14(e) Unity of ownership is not deemed to new text begin does not new text end exist when a corporation is new text begin two or new text end 124.15 new text begin more corporations are new text end involved unless that corporation is a member of a group of two or 124.16more business entities and more than 50 percent of the voting stock of each member of 124.17the group new text begin corporation new text end is directly or indirectly owned by a common owner or by common 124.18owners, either corporate or noncorporate, or by one or more of the member corporations 124.19of the group. For this purpose, the term "voting stock" shall include membership interests 124.20of mutual insurance holding companies formed under section 66A.40. 124.21(f) The net income and apportionment factors under section 290.191 or 290.20 of 124.22foreign corporations and other foreign entities which are part of a unitary business shall 124.23not be included in the net income or the apportionment factors of the unitary business new text begin ; new text end 124.24 new text begin except that the income and apportionment factors of a foreign entity, other than an entity new text end 124.25 new text begin treated as a C corporation for federal income tax purposes, that are included in the federal new text end 124.26 new text begin taxable income, as defined in section 63 of the Internal Revenue Code as amended through new text end 124.27 new text begin the date named in section 290.01, subdivision 19, of a domestic corporation, domestic new text end 124.28 new text begin entity, or individual must be included in determining net income and the factors to be used new text end 124.29 new text begin in the apportionment of net income pursuant to section 290.191 or 290.20 new text end . A foreign 124.30corporation or other foreign entity which is new text begin not included on a combined report and which new text end 124.31 new text begin is new text end required to file a return under this chapter shall file on a separate return basis. The net 124.32income and apportionment factors under section or of foreign operating 124.33corporations shall not be included in the net income or the apportionment factors of the 124.34unitary business except as provided in paragraph (g). 124.35(g) The adjusted net income of a foreign operating corporation shall be deemed to 124.36be paid as a dividend on the last day of its taxable year to each shareholder thereof, in 125.1proportion to each shareholder's ownership, with which such corporation is engaged in 125.2a unitary business. Such deemed dividend shall be treated as a dividend under section 125.3290.21, subdivision 4. 125.4Dividends actually paid by a foreign operating corporation to a corporate shareholder 125.5which is a member of the same unitary business as the foreign operating corporation shall 125.6be eliminated from the net income of the unitary business in preparing a combined report 125.7for the unitary business. The adjusted net income of a foreign operating corporation 125.8shall be its net income adjusted as follows: 125.9(1) any taxes paid or accrued to a foreign country, the commonwealth of Puerto 125.10Rico, or a United States possession or political subdivision of any of the foregoing shall 125.11be a deduction; and 125.12(2) the subtraction from federal taxable income for payments received from foreign 125.13corporations or foreign operating corporations under section 290.01, subdivision 19d, 125.14clause (10), shall not be allowed. 125.15If a foreign operating corporation incurs a net loss, neither income nor deduction from 125.16that corporation shall be included in determining the net income of the unitary business. 125.17(h) new text begin (g) new text end For purposes of determining the net income of a unitary business and the 125.18factors to be used in the apportionment of net income pursuant to section 290.191 or 125.19290.20 , there must be included only the income and apportionment factors of domestic 125.20corporations or other domestic entities other than foreign operating corporations that are 125.21determined to be part of the unitary business pursuant to this subdivision, notwithstanding 125.22that foreign corporations or other foreign entities might be included in the unitary 125.23business new text begin ; except that the income and apportionment factors of a foreign entity, other than new text end 125.24 new text begin an entity treated as a C corporation for federal income tax purposes, that is included in the new text end 125.25 new text begin federal taxable income, as defined in section 63 of the Internal Revenue Code as amended new text end 125.26 new text begin through the date named in section 290.01, subdivision 19, of a domestic corporation, new text end 125.27 new text begin domestic entity, or individual must be included in determining net income and the factors new text end 125.28 new text begin to be used in the apportionment of net income pursuant to section 290.191 or 290.20 new text end . 125.29(i) Deductions for expenses, interest, or taxes otherwise allowable under this chapter 125.30that are connected with or allocable against dividends, deemed dividends described 125.31in paragraph (g), or royalties, fees, or other like income described in section 290.01, 125.32subdivision 19d , clause (10), shall not be disallowed. 125.33(j) new text begin (h) new text end Each corporation or other entity, except a sole proprietorship, that is part of 125.34a unitary business must file combined reports as the commissioner determines. On the 125.35reports, all intercompany transactions between entities included pursuant to paragraph (h) 125.36 new text begin (g) new text end must be eliminated and the entire net income of the unitary business determined in 126.1accordance with this subdivision is apportioned among the entities by using each entity's 126.2Minnesota factors for apportionment purposes in the numerators of the apportionment 126.3formula and the total factors for apportionment purposes of all entities included pursuant 126.4to paragraph (h) new text begin (g) new text end in the denominators of the apportionment formula. new text begin Except as new text end 126.5 new text begin otherwise provided by paragraph (f), all sales of the unitary business made within this new text end 126.6 new text begin state pursuant to section 290.191 or 290.20 must be included on the combined report of a new text end 126.7 new text begin corporation or other entity that is a member of the unitary business and is subject to the new text end 126.8 new text begin jurisdiction of this state to impose tax under this chapter. new text end 126.9(k) new text begin (i) new text end If a corporation has been divested from a unitary business and is included in a 126.10combined report for a fractional part of the common accounting period of the combined 126.11report: 126.12(1) its income includable in the combined report is its income incurred for that part 126.13of the year determined by proration or separate accounting; and 126.14(2) its sales, property, and payroll included in the apportionment formula must 126.15be prorated or accounted for separately. 126.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 126.17 new text begin December 31, 2012. new text end 126.18    Sec. 29. Minnesota Statutes 2012, section 290.191, subdivision 5, is amended to read: 126.19    Subd. 5. Determination of sales factor. For purposes of this section, the following 126.20rules apply in determining the sales factor. 126.21    (a) The sales factor includes all sales, gross earnings, or receipts received in the 126.22ordinary course of the business, except that the following types of income are not included 126.23in the sales factor: 126.24    (1) interest; 126.25    (2) dividends; 126.26    (3) sales of capital assets as defined in section 1221 of the Internal Revenue Code; 126.27    (4) sales of property used in the trade or business, except sales of leased property of 126.28a type which is regularly sold as well as leased; new text begin and new text end 126.29    (5) sales of debt instruments as defined in section 1275(a)(1) of the Internal Revenue 126.30Code or sales of stock; and new text begin . new text end 126.31    (6) royalties, fees, or other like income of a type which qualify for a subtraction from 126.32federal taxable income under section 290.01, subdivision 19d, clause (10). 126.33    (b) Sales of tangible personal property are made within this state if the property is 126.34received by a purchaser at a point within this state, and the taxpayer is taxable in this state, 127.1regardless of the f.o.b. point, other conditions of the sale, or the ultimate destination 127.2of the property. 127.3    (c) Tangible personal property delivered to a common or contract carrier or foreign 127.4vessel for delivery to a purchaser in another state or nation is a sale in that state or nation, 127.5regardless of f.o.b. point or other conditions of the sale. 127.6    (d) Notwithstanding paragraphs (b) and (c), when intoxicating liquor, wine, 127.7fermented malt beverages, cigarettes, or tobacco products are sold to a purchaser who is 127.8licensed by a state or political subdivision to resell this property only within the state of 127.9ultimate destination, the sale is made in that state. 127.10    (e) Sales made by or through a corporation that is qualified as a domestic 127.11international sales corporation under section 992 of the Internal Revenue Code are not 127.12considered to have been made within this state. 127.13    (f) Sales, rents, royalties, and other income in connection with real property is 127.14attributed to the state in which the property is located. 127.15    (g) Receipts from the lease or rental of tangible personal property, including finance 127.16leases and true leases, must be attributed to this state if the property is located in this 127.17state and to other states if the property is not located in this state. Receipts from the 127.18lease or rental of moving property including, but not limited to, motor vehicles, rolling 127.19stock, aircraft, vessels, or mobile equipment are included in the numerator of the receipts 127.20factor to the extent that the property is used in this state. The extent of the use of moving 127.21property is determined as follows: 127.22    (1) A motor vehicle is used wholly in the state in which it is registered. 127.23    (2) The extent that rolling stock is used in this state is determined by multiplying 127.24the receipts from the lease or rental of the rolling stock by a fraction, the numerator of 127.25which is the miles traveled within this state by the leased or rented rolling stock and the 127.26denominator of which is the total miles traveled by the leased or rented rolling stock. 127.27    (3) The extent that an aircraft is used in this state is determined by multiplying the 127.28receipts from the lease or rental of the aircraft by a fraction, the numerator of which is 127.29the number of landings of the aircraft in this state and the denominator of which is the 127.30total number of landings of the aircraft. 127.31    (4) The extent that a vessel, mobile equipment, or other mobile property is used in 127.32the state is determined by multiplying the receipts from the lease or rental of the property 127.33by a fraction, the numerator of which is the number of days during the taxable year the 127.34property was in this state and the denominator of which is the total days in the taxable year. 127.35    (h) Royalties and other income not described in paragraph (a), clause (6), received 127.36for the use of or for the privilege of using intangible property, including patents, 128.1know-how, formulas, designs, processes, patterns, copyrights, trade names, service names, 128.2franchises, licenses, contracts, customer lists, or similar items, must be attributed to the 128.3state in which the property is used by the purchaser. If the property is used in more 128.4than one state, the royalties or other income must be apportioned to this state pro rata 128.5according to the portion of use in this state. If the portion of use in this state cannot be 128.6determined, the royalties or other income must be excluded from both the numerator 128.7and the denominator. Intangible property is used in this state if the purchaser uses the 128.8intangible property or the rights therein in the regular course of its business operations in 128.9this state, regardless of the location of the purchaser's customers. 128.10    (i) Sales of intangible property are made within the state in which the property is 128.11used by the purchaser. If the property is used in more than one state, the sales must be 128.12apportioned to this state pro rata according to the portion of use in this state. If the 128.13portion of use in this state cannot be determined, the sale must be excluded from both the 128.14numerator and the denominator of the sales factor. Intangible property is used in this 128.15state if the purchaser used the intangible property in the regular course of its business 128.16operations in this state. 128.17    (j) Receipts from the performance of services must be attributed to the state where 128.18the services are received. For the purposes of this section, receipts from the performance 128.19of services provided to a corporation, partnership, or trust may only be attributed to a state 128.20where it has a fixed place of doing business. If the state where the services are received is 128.21not readily determinable or is a state where the corporation, partnership, or trust receiving 128.22the service does not have a fixed place of doing business, the services shall be deemed 128.23to be received at the location of the office of the customer from which the services were 128.24ordered in the regular course of the customer's trade or business. If the ordering office 128.25cannot be determined, the services shall be deemed to be received at the office of the 128.26customer to which the services are billed. 128.27    (k) For the purposes of this subdivision and subdivision 6, paragraph (l), receipts 128.28from management, distribution, or administrative services performed by a corporation 128.29or trust for a fund of a corporation or trust regulated under United States Code, title 15, 128.30sections 80a-1 through 80a-64, must be attributed to the state where the shareholder of 128.31the fund resides. Under this paragraph, receipts for services attributed to shareholders are 128.32determined on the basis of the ratio of: (1) the average of the outstanding shares in the 128.33fund owned by shareholders residing within Minnesota at the beginning and end of each 128.34year; and (2) the average of the total number of outstanding shares in the fund at the 128.35beginning and end of each year. Residence of the shareholder, in the case of an individual, 128.36is determined by the mailing address furnished by the shareholder to the fund. Residence 129.1of the shareholder, when the shares are held by an insurance company as a depositor for 129.2the insurance company policyholders, is the mailing address of the policyholders. In 129.3the case of an insurance company holding the shares as a depositor for the insurance 129.4company policyholders, if the mailing address of the policyholders cannot be determined 129.5by the taxpayer, the receipts must be excluded from both the numerator and denominator. 129.6Residence of other shareholders is the mailing address of the shareholder. 129.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 129.8 new text begin December 31, 2012. new text end 129.9    Sec. 30. Minnesota Statutes 2012, section 290.21, subdivision 4, is amended to read: 129.10    Subd. 4. Dividends received from another corporation. (a)(1) Eighty percent 129.11of dividends received by a corporation during the taxable year from another corporation, 129.12in which the recipient owns 20 percent or more of the stock, by vote and value, not 129.13including stock described in section 1504(a)(4) of the Internal Revenue Code when the 129.14corporate stock with respect to which dividends are paid does not constitute the stock in 129.15trade of the taxpayer or would not be included in the inventory of the taxpayer, or does not 129.16constitute property held by the taxpayer primarily for sale to customers in the ordinary 129.17course of the taxpayer's trade or business, or when the trade or business of the taxpayer 129.18does not consist principally of the holding of the stocks and the collection of the income 129.19and gains therefrom; and 129.20    (2)(i) the remaining 20 percent of dividends if the dividends received are the stock in 129.21an affiliated company transferred in an overall plan of reorganization and the dividend 129.22is eliminated in consolidation under Treasury Department Regulation 1.1502-14(a), as 129.23amended through December 31, 1989; 129.24    (ii) the remaining 20 percent of dividends if the dividends are received from a 129.25corporation which is subject to tax under section 290.36 and which is a member of an 129.26affiliated group of corporations as defined by the Internal Revenue Code and the dividend 129.27is eliminated in consolidation under Treasury Department Regulation 1.1502-14(a), as 129.28amended through December 31, 1989, or is deducted under an election under section 129.29243(b) of the Internal Revenue Code; or 129.30    (iii) the remaining 20 percent of the dividends if the dividends are received from a 129.31property and casualty insurer as defined under section 60A.60, subdivision 8, which is a 129.32member of an affiliated group of corporations as defined by the Internal Revenue Code 129.33and either: (A) the dividend is eliminated in consolidation under Treasury Regulation 129.341.1502-14(a), as amended through December 31, 1989; or (B) the dividend is deducted 129.35under an election under section 243(b) of the Internal Revenue Code. 130.1    (b) Seventy percent of dividends received by a corporation during the taxable year 130.2from another corporation in which the recipient owns less than 20 percent of the stock, 130.3by vote or value, not including stock described in section 1504(a)(4) of the Internal 130.4Revenue Code when the corporate stock with respect to which dividends are paid does not 130.5constitute the stock in trade of the taxpayer, or does not constitute property held by the 130.6taxpayer primarily for sale to customers in the ordinary course of the taxpayer's trade or 130.7business, or when the trade or business of the taxpayer does not consist principally of the 130.8holding of the stocks and the collection of income and gain therefrom. 130.9    (c) The dividend deduction provided in this subdivision shall be allowed only with 130.10respect to dividends that are included in a corporation's Minnesota taxable net income 130.11for the taxable year. 130.12    The dividend deduction provided in this subdivision does not apply to a dividend 130.13from a corporation which, for the taxable year of the corporation in which the distribution 130.14is made or for the next preceding taxable year of the corporation, is a corporation exempt 130.15from tax under section 501 of the Internal Revenue Code. 130.16 new text begin The dividend deduction provided in this subdivision does not apply to a dividend new text end 130.17 new text begin received from a real estate investment trust as defined in section 856 of the Internal new text end 130.18 new text begin Revenue Code. new text end 130.19    The dividend deduction provided in this subdivision applies to the amount of 130.20regulated investment company dividends only to the extent determined under section 130.21854(b) of the Internal Revenue Code. 130.22    The dividend deduction provided in this subdivision shall not be allowed with 130.23respect to any dividend for which a deduction is not allowed under the provisions of 130.24section 246(c) of the Internal Revenue Code. 130.25    (d) If dividends received by a corporation that does not have nexus with Minnesota 130.26under the provisions of Public Law 86-272 are included as income on the return of 130.27an affiliated corporation permitted or required to file a combined report under section 130.28290.17, subdivision 4 , or 290.34, subdivision 2, then for purposes of this subdivision the 130.29determination as to whether the trade or business of the corporation consists principally 130.30of the holding of stocks and the collection of income and gains therefrom shall be made 130.31with reference to the trade or business of the affiliated corporation having a nexus with 130.32Minnesota. 130.33    (e) The deduction provided by this subdivision does not apply if the dividends are 130.34paid by a FSC as defined in section 922 of the Internal Revenue Code. 130.35    (f) If one or more of the members of the unitary group whose income is included on 130.36the combined report received a dividend, the deduction under this subdivision for each 131.1member of the unitary business required to file a return under this chapter is the product 131.2of: (1) 100 percent of the dividends received by members of the group; (2) the percentage 131.3allowed pursuant to paragraph (a) or (b); and (3) the percentage of the taxpayer's business 131.4income apportionable to this state for the taxable year under section 290.191 or 290.20. 131.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 131.6 new text begin December 31, 2012. new text end 131.7    Sec. 31. Minnesota Statutes 2012, section 298.01, subdivision 3b, is amended to read: 131.8    Subd. 3b. Deductions. (a) For purposes of determining taxable income under 131.9subdivision 3, the deductions from gross income include only those expenses necessary 131.10to convert raw ores to marketable quality. Such expenses include costs associated with 131.11refinement but do not include expenses such as transportation, stockpiling, marketing, or 131.12marine insurance that are incurred after marketable ores are produced, unless the expenses 131.13are included in gross income. The allowable deductions from a mine or plant that mines 131.14and produces more than one mineral, metal, or energy resource must be determined 131.15separately for the purposes of computing the deduction in section 290.01, subdivision 19c, 131.16clause (9) new text begin (8) new text end . These deductions may be combined on one occupation tax return to arrive 131.17at the deduction from gross income for all production. 131.18(b) The provisions of section 290.01, subdivisions 19c, clauses (6) and (9), and 19d, 131.19clauses (7) and (11) new text begin (10) new text end , are not used to determine taxable income. 131.20    Sec. 32. Laws 2010, chapter 216, section 11, the effective date, is amended to read: 131.21EFFECTIVE DATE.This section is effective for taxable years beginning 131.22after December 31, 2009, for certified historic structures for which qualified costs of 131.23rehabilitation are first paid under construction contracts entered into after May 1, 2010 131.24 new text begin rehabilitation expenditures are first paid by the developer or taxpayer after May 1, 2010, new text end 131.25 new text begin for rehabilitation that occurs after May 1, 2010, provided that the application under new text end 131.26 new text begin subdivision 3 is submitted before the project is placed in service new text end . 131.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment new text end 131.28 new text begin and applies retroactively for taxable years beginning after December 31, 2009, and for new text end 131.29 new text begin certified historic structures placed in service after May 1, 2010, but the office may not new text end 131.30 new text begin issue certificates allowed under the change to this section until July 1, 2013. new text end 131.31    Sec. 33. new text begin ESTIMATED TAXES; EXCEPTIONS. new text end 132.1 new text begin No addition to tax, penalties, or interest may be made under Minnesota Statutes, new text end 132.2 new text begin section 289A.25, for any period before September 15, 2013, with respect to an new text end 132.3 new text begin underpayment of estimated tax, to the extent that the underpayment was created or new text end 132.4 new text begin increased by the increase in income tax rates under this article. new text end 132.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 132.6 new text begin December 31, 2012. new text end 132.7    Sec. 34. new text begin REPEALER. new text end 132.8 new text begin Minnesota Statutes 2012, sections 290.01, subdivision 6b; 290.06, subdivision 22a; new text end 132.9 new text begin and 290.0921, subdivision 7, new text end new text begin are repealed. new text end 132.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 132.11 new text begin December 31, 2012. new text end 132.12ARTICLE 7 132.13ESTATE AND GIFT TAXES 132.14    Section 1. Minnesota Statutes 2012, section 270B.01, subdivision 8, is amended to read: 132.15    Subd. 8. Minnesota tax laws. For purposes of this chapter only, unless expressly 132.16stated otherwise, "Minnesota tax laws" means: 132.17    (1) the taxes, refunds, and fees administered by or paid to the commissioner under 132.18chapters 115B, 289A (except taxes imposed under sections 298.01, 298.015, and 298.24), 132.19290, 290A, 291, new text begin 292, new text end 295, 297A, 297B, and 297H, or any similar Indian tribal tax 132.20administered by the commissioner pursuant to any tax agreement between the state and 132.21the Indian tribal government, and includes any laws for the assessment, collection, and 132.22enforcement of those taxes, refunds, and fees; and 132.23    (2) section 273.1315. 132.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for gifts made after December 31, new text end 132.25 new text begin 2012. new text end 132.26    Sec. 2. Minnesota Statutes 2012, section 270B.03, subdivision 1, is amended to read: 132.27    Subdivision 1. Who may inspect. Returns and return information must, on request, 132.28be made open to inspection by or disclosure to the data subject. The request must be made 132.29in writing or in accordance with written procedures of the chief disclosure officer of the 132.30department that have been approved by the commissioner to establish the identification 132.31of the person making the request as the data subject. For purposes of this chapter, the 132.32following are the data subject: 133.1(1) in the case of an individual return, that individual; 133.2(2) in the case of an income tax return filed jointly, either of the individuals with 133.3respect to whom the return is filed; 133.4(3) in the case of a return filed by a business entity, an officer of a corporation, 133.5a shareholder owning more than one percent of the stock, or any shareholder of an S 133.6corporation; a general partner in a partnership; the owner of a sole proprietorship; a 133.7member or manager of a limited liability company; a participant in a joint venture; the 133.8individual who signed the return on behalf of the business entity; or an employee who is 133.9responsible for handling the tax matters of the business entity, such as the tax manager, 133.10bookkeeper, or managing agent; 133.11(4) in the case of an estate return: 133.12(i) the personal representative or trustee of the estate; and 133.13(ii) any beneficiary of the estate as shown on the federal estate tax return; 133.14(5) in the case of a trust return: 133.15(i) the trustee or trustees, jointly or separately; and 133.16(ii) any beneficiary of the trust as shown in the trust instrument; 133.17(6) if liability has been assessed to a transferee under section 270C.58, subdivision 133.181 , the transferee is the data subject with regard to the returns and return information 133.19relating to the assessed liability; 133.20(7) in the case of an Indian tribal government or an Indian tribal government-owned 133.21entity, 133.22(i) the chair of the tribal government, or 133.23(ii) any person authorized by the tribal government; and 133.24(8) in the case of a successor as defined in section 270C.57, subdivision 1, paragraph 133.25(b), the successor is the data subject and information may be disclosed as provided by 133.26section 270C.57, subdivision 4. new text begin ; and new text end 133.27 new text begin (9) in the case of a gift return, the donor. new text end 133.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 133.29    Sec. 3. Minnesota Statutes 2012, section 289A.10, subdivision 1, is amended to read: 133.30    Subdivision 1. Return required. In the case of a decedent who has an interest in 133.31property with a situs in Minnesota, the personal representative must submit a Minnesota 133.32estate tax return to the commissioner, on a form prescribed by the commissioner, if: 133.33(1) a federal estate tax return is required to be filed; or 133.34(2) the new text begin sum of the new text end federal gross estate new text begin and federal adjusted taxable gifts made within new text end 133.35 new text begin three years of the date of the decedent's death new text end exceeds $1,000,000. 134.1The return must contain a computation of the Minnesota estate tax due. The return 134.2must be signed by the personal representative. 134.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for estates of decedents dying after new text end 134.4 new text begin December 31, 2012. new text end 134.5    Sec. 4. Minnesota Statutes 2012, section 291.005, subdivision 1, is amended to read: 134.6    Subdivision 1. Scope. Unless the context otherwise clearly requires, the following 134.7terms used in this chapter shall have the following meanings: 134.8    (1) "Commissioner" means the commissioner of revenue or any person to whom the 134.9commissioner has delegated functions under this chapter. 134.10    (2) "Federal gross estate" means the gross estate of a decedent as required to be valued 134.11and otherwise determined for federal estate tax purposes under the Internal Revenue Code. 134.12    (3) "Internal Revenue Code" means the United States Internal Revenue Code of 134.131986, as amended through April 14, 2011 new text begin January 3, 2013 new text end , but without regard to the 134.14provisions of sections 501 and 901 of Public Law 107-16, as amended by Public Law 134.15111-312, and section 301(c) of Public Law 111-312 new text begin section 2011, paragraph (f), of the new text end 134.16 new text begin Internal Revenue Code new text end . 134.17    (4) "Minnesota adjusted taxable estate" means federal adjusted taxable estate as 134.18defined by section 2011(b)(3) of the Internal Revenue Code, plus 134.19(i) the amount of deduction for state death taxes allowed under section 2058 of the 134.20Internal Revenue Code; 134.21 new text begin (ii) the amount of taxable gifts, as defined in section 292.16, and made by the new text end 134.22 new text begin decedent within three years of the decedent's date of death; new text end less 134.23(ii) new text begin (iii) new text end (A) the value of qualified small business property under section 291.03, 134.24subdivision 9 , and the value of qualified farm property under section 291.03, subdivision 134.2510 , or (B) $4,000,000, whichever is less. 134.26    (5) "Minnesota gross estate" means the federal gross estate of a decedent after (a) 134.27excluding therefrom any property included therein which has its situs outside Minnesota, 134.28and (b) including therein any property omitted from the federal gross estate which is 134.29includable therein, has its situs in Minnesota, and was not disclosed to federal taxing 134.30authorities. 134.31    (6) "Nonresident decedent" means an individual whose domicile at the time of 134.32death was not in Minnesota. 134.33    (7) "Personal representative" means the executor, administrator or other person 134.34appointed by the court to administer and dispose of the property of the decedent. If there 134.35is no executor, administrator or other person appointed, qualified, and acting within this 135.1state, then any person in actual or constructive possession of any property having a situs in 135.2this state which is included in the federal gross estate of the decedent shall be deemed 135.3to be a personal representative to the extent of the property and the Minnesota estate tax 135.4due with respect to the property. 135.5    (8) "Resident decedent" means an individual whose domicile at the time of death 135.6was in Minnesota. 135.7    (9) "Situs of property" means, with respect to new text begin : new text end 135.8     new text begin (i) new text end real property, the state or country in which it is located; with respect to 135.9     new text begin (ii) new text end tangible personal property, the state or country in which it was normally kept or 135.10located at the time of the decedent's death new text begin or for a gift of tangible personal property within new text end 135.11 new text begin three years of death, the state or country in which it was normally kept or located when new text end 135.12 new text begin the gift was executed new text end ; and with respect to 135.13     new text begin (iii) new text end intangible personal property, the state or country in which the decedent was 135.14domiciled at death new text begin or for a gift of intangible personal property within three years of death, new text end 135.15 new text begin the state or country in which the decedent was domiciled when the gift was executed new text end . 135.16     new text begin For a nonresident decedent with an ownership interest in a pass-through entity new text end 135.17 new text begin with assets that include real or tangible personal property, situs of the real or tangible new text end 135.18 new text begin personal property is determined as if the pass-through entity does not exist and the real new text end 135.19 new text begin or tangible personal property is personally owned by the decedent. If the pass-through new text end 135.20 new text begin entity is owned by a person or persons in addition to the decedent, ownership of the new text end 135.21 new text begin property is attributed to the decedent in proportion to the decedent's capital ownership new text end 135.22 new text begin share of the pass-through entity. new text end 135.23 new text begin (10) "Pass-through entity" includes the following: new text end 135.24 new text begin (i) an entity electing S corporation status under section 1362 of the Internal Revenue new text end 135.25 new text begin Code; new text end 135.26 new text begin (ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code; new text end 135.27 new text begin (iii) a single-member limited liability company or similar entity, regardless of new text end 135.28 new text begin whether it is taxed as an association or is disregarded for federal income tax purposes new text end 135.29 new text begin under Code of Federal Regulations, title 26, section 301.7701-3; or new text end 135.30 new text begin (iv) a trust to the extent the property is includible in the decedent's federal gross estate. new text end 135.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for decedents dying after December new text end 135.32 new text begin 31, 2012. new text end 135.33    Sec. 5. Minnesota Statutes 2012, section 291.03, subdivision 1, is amended to read: 135.34    Subdivision 1. Tax amount. (a) The tax imposed shall be an amount equal to the 135.35proportion of the maximum credit for state death taxes computed under section 2011 of 136.1the Internal Revenue Code, but using Minnesota adjusted taxable estate instead of federal 136.2adjusted taxable estate, as the Minnesota gross estate bears to the value of the federal 136.3gross estate. new text begin The tax is reduced by: new text end 136.4     new text begin (1) the gift tax paid by the decedent under section 292.17 on gifts included in the new text end 136.5 new text begin Minnesota adjusted taxable estate and not subtracted as qualified farm or small business new text end 136.6 new text begin property; and new text end 136.7     new text begin (2) any credit allowed under subdivision 1c. new text end 136.8    (b) The tax determined under this subdivision must not be greater than the sum of 136.9the following amounts multiplied by a fraction, the numerator of which is the Minnesota 136.10gross estate and the denominator of which is the federal gross estate: 136.11    (1) the rates and brackets under section 2001(c) of the Internal Revenue Code 136.12multiplied by the sum of: 136.13    (i) the taxable estate, as defined under section 2051 of the Internal Revenue Code; plus 136.14    (ii) adjusted taxable gifts, as defined in section 2001(b) of the Internal Revenue 136.15Code; less 136.16(iii) the lesser of (A) the sum of the value of qualified small business property 136.17under subdivision 9, and the value of qualified farm property under subdivision 10, or 136.18(B) $4,000,000; less 136.19    (2) the amount of tax allowed under section 2001(b)(2) of the Internal Revenue 136.20Code; and less 136.21    (3) the federal credit allowed under section 2010 of the Internal Revenue Code. 136.22    (c) For purposes of this subdivision, "Internal Revenue Code" means the Internal 136.23Revenue Code of 1986, as amended through December 31, 2000. 136.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for decedents dying after December new text end 136.25 new text begin 31, 2012. new text end 136.26    Sec. 6. Minnesota Statutes 2012, section 291.03, is amended by adding a subdivision 136.27to read: 136.28     new text begin Subd. 1c. new text end new text begin Nonresident decedent tax credit. new text end new text begin (a) The estate of a nonresident new text end 136.29 new text begin decedent that is subject to tax under this chapter on the value of Minnesota situs property new text end 136.30 new text begin held in a pass-through entity is allowed a credit against the tax due under this section new text end 136.31 new text begin equal to the lesser of: new text end 136.32 new text begin (1) the amount of estate or inheritance tax paid to another state that is attributable to new text end 136.33 new text begin the Minnesota situs property held in the pass-through entity; or new text end 136.34 new text begin (2) the amount of tax paid under this section attributable to the Minnesota situs new text end 136.35 new text begin property held in the pass-through entity. new text end 137.1 new text begin (b) The amount of tax attributable to the Minnesota situs property held in the new text end 137.2 new text begin pass-through entity must be determined by the increase in the estate or inheritance tax that new text end 137.3 new text begin results from including the market value of the property in the estate or treating the value new text end 137.4 new text begin as a taxable inheritance to the recipient of the property. new text end 137.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for decedents dying after December new text end 137.6 new text begin 31, 2012. new text end 137.7    Sec. 7. Minnesota Statutes 2012, section 291.03, subdivision 8, is amended to read: 137.8    Subd. 8. Definitions. (a) For purposes of this section, the following terms have the 137.9meanings given in this subdivision. 137.10(b) "Family member" means a family member as defined in section 2032A(e)(2) of 137.11the Internal Revenue Code new text begin , or a trust whose present beneficiaries are all family members new text end 137.12 new text begin as defined in section 2032A(e)(2) of the Internal Revenue Code new text end . 137.13(c) "Qualified heir" means a family member who acquired qualified property from 137.14 new text begin upon the death of new text end the decedent and satisfies the requirement under subdivision 9, clause 137.15(6) new text begin (7) new text end , or subdivision 10, clause (4) new text begin (5) new text end , for the property. 137.16(d) "Qualified property" means qualified small business property under subdivision 137.179 and qualified farm property under subdivision 10. 137.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively for estates of decedents new text end 137.19 new text begin dying after June 30, 2011. new text end 137.20    Sec. 8. Minnesota Statutes 2012, section 291.03, subdivision 9, is amended to read: 137.21    Subd. 9. Qualified small business property. Property satisfying all of the following 137.22requirements is qualified small business property: 137.23(1) The value of the property was included in the federal adjusted taxable estate. 137.24(2) The property consists of the assets of a trade or business or shares of stock or 137.25other ownership interests in a corporation or other entity engaged in a trade or business. 137.26The decedent or the decedent's spouse must have materially participated in the trade or 137.27business within the meaning of section 469 of the Internal Revenue Code during the 137.28taxable year that ended before the date of the decedent's death. Shares of stock in a 137.29corporation or an ownership interest in another type of entity do not qualify under this 137.30subdivision if the shares or ownership interests are traded on a public stock exchange at 137.31any time during the three-year period ending on the decedent's date of death. new text begin For purposes new text end 137.32 new text begin of this subdivision, an ownership interest includes the interest the decedent is deemed to new text end 137.33 new text begin own under sections 2036, 2037, and 2038 of the Internal Revenue Code. new text end 138.1(3) new text begin During the taxable year that ended before the decedent's death, the trade or new text end 138.2 new text begin business must not have been a passive activity within the meaning of section 469(c) of the new text end 138.3 new text begin Internal Revenue Code, and the decedent or the decedent's spouse must have materially new text end 138.4 new text begin participated in the trade or business within the meaning of section 469(h) of the Internal new text end 138.5 new text begin Revenue Code, excluding section 469(h)(3) of the Internal Revenue Code and any other new text end 138.6 new text begin provision provided by United States Treasury Department regulation that substitutes new text end 138.7 new text begin material participation in prior taxable years for material participation in the taxable year new text end 138.8 new text begin that ended before the decedent's death. new text end 138.9 new text begin (4) new text end The gross annual sales of the trade or business were $10,000,000 or less for the 138.10last taxable year that ended before the date of the death of the decedent. 138.11(4) new text begin (5) new text end The property does not consist of cash or new text begin , new text end cash equivalents new text begin , publicly traded new text end 138.12 new text begin securities, or assets not used in the operation of the trade or business new text end . For property 138.13consisting of shares of stock or other ownership interests in an entity, the amount new text begin value new text end of 138.14cash or new text begin , new text end cash equivalents new text begin , publicly traded securities, or assets not used in the operation of new text end 138.15 new text begin the trade or business new text end held by the corporation or other entity must be deducted from the 138.16value of the property qualifying under this subdivision in proportion to the decedent's 138.17share of ownership of the entity on the date of death. 138.18(5) new text begin (6) new text end The decedent continuously owned the property new text begin , including property the new text end 138.19 new text begin decedent is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue new text end 138.20 new text begin Code, new text end for the three-year period ending on the date of death of the decedent. new text begin In the case of new text end 138.21 new text begin a sole proprietor, if the property replaced similar property within the three-year period, new text end 138.22 new text begin the replacement property will be treated as having been owned for the three-year period new text end 138.23 new text begin ending on the date of death of the decedent. new text end 138.24(6) A family member continuously uses the property in the operation of the trade or 138.25business for three years following the date of death of the decedent. 138.26(7) new text begin For three years following the date of death of the decedent, the trade or business new text end 138.27 new text begin is not a passive activity within the meaning of section 469(c) of the Internal Revenue Code, new text end 138.28 new text begin and a family member materially participates in the operation of the trade or business within new text end 138.29 new text begin the meaning of section 469(h) of the Internal Revenue Code, excluding section 469(h)(3) new text end 138.30 new text begin of the Internal Revenue Code and any other provision provided by United States Treasury new text end 138.31 new text begin Department regulation that substitutes material participation in prior taxable years for new text end 138.32 new text begin material participation in the three years following the date of death of the decedent. new text end 138.33 new text begin (8) new text end The estate and the qualified heir elect to treat the property as qualified small 138.34business property and agree, in the form prescribed by the commissioner, to pay the 138.35recapture tax under subdivision 11, if applicable. 139.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively for estates of decedents new text end 139.2 new text begin dying after June 30, 2011. new text end 139.3    Sec. 9. Minnesota Statutes 2012, section 291.03, subdivision 10, is amended to read: 139.4    Subd. 10. Qualified farm property. Property satisfying all of the following 139.5requirements is qualified farm property: 139.6(1) The value of the property was included in the federal adjusted taxable estate. 139.7(2) The property consists of a farm meeting the requirements of new text begin agricultural land and new text end 139.8 new text begin is owned by a person or entity that is either not subject to or is in compliance with new text end section 139.9500.24 , and was classified for property tax purposes as the homestead of the decedent 139.10or the decedent's spouse or both under section , and as class 2a property under 139.11section 273.13, subdivision 23. 139.12(3) new text begin For property taxes payable in the taxable year of the decedent's death, the new text end 139.13 new text begin property is classified as class 2a property under section 273.13, subdivision 23, and is new text end 139.14 new text begin classified as agricultural homestead, agricultural relative homestead, or special agricultural new text end 139.15 new text begin homestead under section 273.124. new text end 139.16 new text begin (4) new text end The decedent continuously owned the property new text begin , including property the decedent new text end 139.17 new text begin is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code, new text end for 139.18the three-year period ending on the date of death of the decedent new text begin either by ownership of new text end 139.19 new text begin the agricultural land or pursuant to holding an interest in an entity that is not subject to new text end 139.20 new text begin or is in compliance with section 500.24 new text end . 139.21(4) A family member continuously uses the property in the operation of the trade or 139.22business new text begin (5) The property is classified for property tax purposes as class 2a property under new text end 139.23 new text begin section 273.13, subdivision 23, new text end for three years following the date of death of the decedent. 139.24(5) new text begin (6) new text end The estate and the qualified heir elect to treat the property as qualified farm 139.25property and agree, in a form prescribed by the commissioner, to pay the recapture tax 139.26under subdivision 11, if applicable. 139.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively for estates of decedents new text end 139.28 new text begin dying after June 30, 2011. new text end 139.29    Sec. 10. Minnesota Statutes 2012, section 291.03, subdivision 11, is amended to read: 139.30    Subd. 11. Recapture tax. (a) If, within three years after the decedent's death and 139.31before the death of the qualified heir, the qualified heir disposes of any interest in the 139.32qualified property, other than by a disposition to a family member, or a family member 139.33ceases to use the qualified property which was acquired or passed from the decedent 139.34 new text begin satisfy the requirement under subdivision 9, clause (7); or 10, clause (5) new text end , an additional 140.1estate tax is imposed on the property. new text begin In the case of a sole proprietor, if the qualified heir new text end 140.2 new text begin replaces qualified small business property excluded under subdivision 9 with similar new text end 140.3 new text begin property, then the qualified heir will not be treated as having disposed of an interest in the new text end 140.4 new text begin qualified property. new text end 140.5(b) The amount of the additional tax equals the amount of the exclusion claimed by 140.6the estate under subdivision 8, paragraph (d), multiplied by 16 percent. 140.7(c) The additional tax under this subdivision is due on the day which is six months 140.8after the date of the disposition or cessation in paragraph (a). 140.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively for estates of decedents new text end 140.10 new text begin dying after June 30, 2011. new text end 140.11    Sec. 11. new text begin [292.16] DEFINITIONS. new text end 140.12 new text begin (a) For purposes of this chapter, the following definitions apply. new text end 140.13 new text begin (b) The definitions of terms defined in section 291.005 apply. new text end 140.14 new text begin (c) "Resident" has the meaning given in section 290.01, subdivision 7, paragraph (a). new text end 140.15 new text begin (d) "Taxable gifts" means: new text end 140.16 new text begin (1) the transfers by gift which are included in taxable gifts for federal gift tax new text end 140.17 new text begin purposes under the following sections of the Internal Revenue Code: new text end 140.18 new text begin (i) section 2503; new text end 140.19 new text begin (ii) sections 2511 to 2514; and new text end 140.20 new text begin (iii) sections 2516 to 2519; less new text end 140.21 new text begin (2) the deductions allowed in sections 2522 to 2524 of the Internal Revenue Code. new text end 140.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable gifts made after June new text end 140.23 new text begin 30, 2013. new text end 140.24    Sec. 12. new text begin [292.17] GIFT TAX. new text end 140.25     new text begin Subdivision 1. new text end new text begin Imposition. new text end new text begin (a) A tax is imposed on the transfer of property by gift new text end 140.26 new text begin by any individual resident or nonresident in an amount equal to ten percent of the amount new text end 140.27 new text begin of the taxable gift. new text end 140.28 new text begin (b) The donor is liable for payment of the tax. If the gift tax is not paid when due, new text end 140.29 new text begin the donee of any gift is personally liable for the tax to the extent of the value of the gift. new text end 140.30     new text begin Subd. 2. new text end new text begin Lifetime credit. new text end new text begin A credit is allowed against the tax imposed under this new text end 140.31 new text begin section equal to $100,000. This credit applies to the cumulative amount of taxable gifts new text end 140.32 new text begin made by the donor during the donor's lifetime. new text end 140.33     new text begin Subd. 3. new text end new text begin Out-of-state gifts. new text end new text begin Taxable gifts exclude the transfer of: new text end 141.1 new text begin (1) real property located outside of this state; new text end 141.2 new text begin (2) tangible personal property that was normally kept at a location outside of the new text end 141.3 new text begin state on the date the gift was executed; and new text end 141.4 new text begin (3) intangible personal property made by an individual who is not a resident at new text end 141.5 new text begin the time the gift was executed. new text end 141.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable gifts made after June new text end 141.7 new text begin 30, 2013. new text end 141.8    Sec. 13. new text begin [292.18] RETURNS. new text end 141.9 new text begin (a) Any individual who makes a taxable gift during the taxable year shall file a gift new text end 141.10 new text begin tax return in the form and manner prescribed by the commissioner. new text end 141.11 new text begin (b) If the donor dies before filing the return, the executor of the donor's will or new text end 141.12 new text begin the administrator of the donor's estate shall file the return. If the donor becomes legally new text end 141.13 new text begin incompetent before filing the return, the guardian or conservator shall file the return. new text end 141.14 new text begin (c) The return must include: new text end 141.15 new text begin (1) each gift made during the calendar year which is to be included in computing the new text end 141.16 new text begin taxable gifts; new text end 141.17 new text begin (2) the deductions claimed and allowable under section 292.16, paragraph (d), new text end 141.18 new text begin clause (2); new text end 141.19 new text begin (3) a description of the gift, and the donee's name, address, and Social Security new text end 141.20 new text begin number; new text end 141.21 new text begin (4) the fair market value of gifts not made in money; and new text end 141.22 new text begin (5) any other information the commissioner requires to administer the gift tax. new text end 141.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable gifts made after June new text end 141.24 new text begin 30, 2013. new text end 141.25    Sec. 14. new text begin [292.19] FILING REQUIREMENTS. new text end 141.26 new text begin Gift tax returns must be filed by the April 15 following the close of the calendar new text end 141.27 new text begin year, except if a gift is made during the calendar year in which the donor dies, the return new text end 141.28 new text begin for the donor must be filed by the last date, including extensions, for filing the gift tax new text end 141.29 new text begin return for federal gift tax purposes for the donor. new text end 141.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable gifts made after June new text end 141.31 new text begin 30, 2013. new text end 141.32    Sec. 15. new text begin [292.20] APPRAISAL OF PROPERTY; DECLARATION BY DONOR. new text end 142.1 new text begin The commissioner may require the donor or the donee to show the property subject to new text end 142.2 new text begin the tax under section 292.17 to the commissioner upon demand and may employ a suitable new text end 142.3 new text begin person to appraise the property. The donor shall submit a declaration, in a form prescribed new text end 142.4 new text begin by the commissioner and including any certification required by the commissioner, that the new text end 142.5 new text begin property shown by the donor on the gift tax return includes all of the property transferred by new text end 142.6 new text begin gift for the calendar year and not deductible under section 292.16, paragraph (d), clause (2). new text end 142.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable gifts made after June new text end 142.8 new text begin 30, 2013. new text end 142.9    Sec. 16. new text begin [292.21] ADMINISTRATIVE PROVISIONS. new text end 142.10     new text begin Subdivision 1. new text end new text begin Payment of tax; penalty for late payment. new text end new text begin The tax imposed under new text end 142.11 new text begin section 292.17 is due and payable to the commissioner by the April 15 following the close new text end 142.12 new text begin of the calendar year during which the gift was made. The return required under section new text end 142.13 new text begin 292.19 must be included with the payment. If a taxable gift is made during the calendar new text end 142.14 new text begin year in which the donor dies, the due date is the last date, including extensions, for filing new text end 142.15 new text begin the gift tax return for federal gift tax purposes for the donor. If any person fails to pay the new text end 142.16 new text begin tax due within the time specified under this section, a penalty applies equal to ten percent new text end 142.17 new text begin of the amount due and unpaid or $100, whichever is greater. The unpaid tax and penalty new text end 142.18 new text begin bear interest at the rate under section 270C.40 from the due date of the return. new text end 142.19     new text begin Subd. 2. new text end new text begin Extensions. new text end new text begin The commissioner may, for good cause, extend the time for new text end 142.20 new text begin filing a gift tax return, if a written request is filed with a tentative return accompanied by a new text end 142.21 new text begin payment of the tax, which is estimated in the tentative return, on or before the last day for new text end 142.22 new text begin filing the return. Any person to whom an extension is granted must pay, in addition to the new text end 142.23 new text begin tax, interest at the rate under section 270C.40 from the date on which the tax would have new text end 142.24 new text begin been due without the extension. new text end 142.25     new text begin Subd. 3. new text end new text begin Changes in federal gift tax. new text end new text begin If the amount of a taxpayer's taxable gifts new text end 142.26 new text begin for federal gift tax purposes, as reported on the taxpayer's federal gift tax return for any new text end 142.27 new text begin calendar year, is changed or corrected by the Internal Revenue Service or other officer new text end 142.28 new text begin of the United States or other competent authority, the taxpayer shall report the change or new text end 142.29 new text begin correction in federal taxable gifts within 180 days after the final determination of the change new text end 142.30 new text begin or correction, and concede the accuracy of the determination or provide a letter detailing new text end 142.31 new text begin how the federal determination is incorrect or does not change the Minnesota gift tax. Any new text end 142.32 new text begin taxpayer filing an amended federal gift tax return shall also file within 180 days an amended new text end 142.33 new text begin return under this chapter and shall include any information the commissioner requires. The new text end 142.34 new text begin time for filing the report or amended return may be extended by the commissioner upon due new text end 142.35 new text begin cause shown. Notwithstanding any limitation of time in this chapter, if, upon examination, new text end 143.1 new text begin the commissioner finds that the taxpayer is liable for the payment of an additional tax, the new text end 143.2 new text begin commissioner shall, within a reasonable time from the receipt of the report or amended new text end 143.3 new text begin return, notify the taxpayer of the amount of additional tax, together with interest computed new text end 143.4 new text begin at the rate under section 270C.40 from the date when the original tax was due and payable. new text end 143.5 new text begin Within 30 days of the mailing of the notice, the taxpayer shall pay the commissioner the new text end 143.6 new text begin amount of the additional tax and interest. If, upon examination of the report or amended new text end 143.7 new text begin return and related information, the commissioner finds that the taxpayer has overpaid the new text end 143.8 new text begin tax due the state, the commissioner shall refund the overpayment to the taxpayer. new text end 143.9     new text begin Subd. 4. new text end new text begin Application of federal rules. new text end new text begin In administering the tax under this chapter, new text end 143.10 new text begin the commissioner shall apply the provisions of sections 2701 to 2704 of the Internal new text end 143.11 new text begin Revenue Code. The words "secretary or his delegate," as used in those sections of the new text end 143.12 new text begin Internal Revenue Code, mean the commissioner. new text end 143.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable gifts made after June new text end 143.14 new text begin 30, 2013. new text end 143.15ARTICLE 8 143.16SALES AND USE TAXES; LOCAL SALES TAXES 143.17    Section 1. new text begin [116J.3738] QUALIFIED EXPANSIONS OF GREATER MINNESOTA new text end 143.18 new text begin BUSINESSES. new text end 143.19     new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin (a) For purposes of this section, the following terms new text end 143.20 new text begin have the meanings given unless the context clearly indicates otherwise. new text end 143.21 new text begin (b) "Agricultural processing facility" means one or more facilities or operations new text end 143.22 new text begin that transform, package, sort, or grade livestock or livestock products, agricultural new text end 143.23 new text begin commodities, or plants or plant products into goods that are used for intermediate or final new text end 143.24 new text begin consumption including goods for nonfood use, and surrounding property. new text end 143.25 new text begin (c) "Business" means an individual, corporation, partnership, limited liability new text end 143.26 new text begin company, association, or any other entity engaged in operating a trade or business located new text end 143.27 new text begin in greater Minnesota. new text end 143.28 new text begin (d) "City" means a statutory or home rule charter city. new text end 143.29 new text begin (e) "Greater Minnesota" means the area of the state that excludes the metropolitan new text end 143.30 new text begin area, as defined in section 473.121, subdivision 2. new text end 143.31 new text begin (f) "Qualified business" means a business that satisfies the requirements of subdivision new text end 143.32 new text begin 2, has been certified under subdivision 3, and has not been terminated under subdivision 5. new text end 143.33     new text begin Subd. 2. new text end new text begin Qualified business. new text end new text begin (a) A business is a qualified business if it satisfies the new text end 143.34 new text begin requirement of this paragraph and is not disqualified under the provisions of paragraph new text end 143.35 new text begin (b). To qualify, the business must: new text end 144.1 new text begin (1) have operated its trade or business in a city or cities in greater Minnesota for at new text end 144.2 new text begin least one year before applying under subdivision 3; new text end 144.3 new text begin (2) pay or agree to pay in the future each employee compensation, including benefits new text end 144.4 new text begin not mandated by law, that on an annualized basis equal at least 120 percent of the federal new text end 144.5 new text begin poverty level for a family of four; new text end 144.6 new text begin (3) plan and agree to expand its employment in one or more cities in greater Minnesota new text end 144.7 new text begin by the minimum number of employees required under subdivision 3, paragraph (c); and new text end 144.8 new text begin (4) received certification from the commissioner under subdivision 3 that it is a new text end 144.9 new text begin qualified business. new text end 144.10 new text begin (b) A business is not a qualified business if it is either: new text end 144.11 new text begin (1) primarily engaged in making retail sales to purchasers who are physically present new text end 144.12 new text begin at the business's location or locations in greater Minnesota; or new text end 144.13 new text begin (2) a public utility, as defined in section 336B.01. new text end 144.14 new text begin (c) The requirements in paragraph (a) that the business' operations and expansion be new text end 144.15 new text begin located in a city do not apply to an agricultural processing facility. new text end 144.16     new text begin Subd. 3. new text end new text begin Certification of qualified business. new text end new text begin (a) A business may apply to the new text end 144.17 new text begin commissioner for certification as a qualified business under this section. The commissioner new text end 144.18 new text begin shall specify the form of the application, the manner and times for applying, and the new text end 144.19 new text begin information required to be included in the application. The commissioner may impose an new text end 144.20 new text begin application fee in an amount sufficient to defray the commissioner's cost of processing new text end 144.21 new text begin certifications. A business must file a copy of its application with the chief clerical officer new text end 144.22 new text begin of the city at the same time it applies to the commissioner. For an agricultural processing new text end 144.23 new text begin facility located outside the boundaries of a city, the business must file a copy of the new text end 144.24 new text begin application with the county auditor. new text end 144.25 new text begin (b) The commissioner shall certify each business as a qualified business that: new text end 144.26 new text begin (1) satisfies the requirements of subdivision 2; new text end 144.27 new text begin (2) the commissioner determines would not expand its operations in greater new text end 144.28 new text begin Minnesota without the tax incentives available under subdivision 4; and new text end 144.29 new text begin (3) enters a business subsidy agreement with the commissioner that pledges to new text end 144.30 new text begin satisfy the minimum expansion requirements of paragraph (c) within three years or less new text end 144.31 new text begin following execution of the agreement. new text end 144.32 new text begin The commissioner must act on an application within 60 days after its filing. Failure new text end 144.33 new text begin by the commissioner to take action within the 60-day period is deemed approval of the new text end 144.34 new text begin application. new text end 144.35 new text begin (c) The following minimum expansion requirements apply, based on the number of new text end 144.36 new text begin employees of the business at locations in greater Minnesota: new text end 145.1 new text begin (1) a business that employees 50 or fewer full-time equivalent employees in greater new text end 145.2 new text begin Minnesota when the agreement is executed must increase its employment by five or more new text end 145.3 new text begin full-time equivalent employees; new text end 145.4 new text begin (2) a business that employees more than 50 but fewer than 200 full-time equivalent new text end 145.5 new text begin employees in greater Minnesota when the agreement is executed must increase the number new text end 145.6 new text begin of its full-time equivalent employees in greater Minnesota by at least ten percent; or new text end 145.7 new text begin (3) a business that employees 200 or more full-time equivalent employees in greater new text end 145.8 new text begin Minnesota when the agreement is executed must increase its employment by at least 21 new text end 145.9 new text begin full-time equivalent employees. new text end 145.10 new text begin (d) The city, or a county for an agricultural processing facility located outside the new text end 145.11 new text begin boundaries of a city, in which the business proposes to expand its operations may file new text end 145.12 new text begin comments supporting or opposing the application with the commissioner. The comments new text end 145.13 new text begin must be filed within 30 days after receipt by the city of the application and may include a new text end 145.14 new text begin notice of any contribution the city or county intends to make to encourage or support the new text end 145.15 new text begin business expansion, such as the use of tax increment financing, property tax abatement, new text end 145.16 new text begin additional city or county services, or other financial assistance. new text end 145.17 new text begin (e) Certification of a qualified business is effective for the 12-year period beginning new text end 145.18 new text begin on the first day of the calendar month immediately following execution of the business new text end 145.19 new text begin subsidy agreement. new text end 145.20     new text begin Subd. 4. new text end new text begin Available tax incentives. new text end new text begin A qualified business is entitled to a sales tax new text end 145.21 new text begin exemption, as provided in section 297A.68, subdivision 49, for purchases made during the new text end 145.22 new text begin period the business was certified as a qualified business under this section. new text end 145.23     new text begin Subd. 5. new text end new text begin Termination of status as a qualified business. new text end new text begin (a) The commissioner shall new text end 145.24 new text begin put in place a system for monitoring and ensuring that each certified business meets within new text end 145.25 new text begin three years or less the minimum expansion requirement in its business subsidy agreement new text end 145.26 new text begin and continues to satisfy those requirements for the rest of the duration of the certification new text end 145.27 new text begin under subdivision 3. This system must include regular reporting by the business to the new text end 145.28 new text begin commissioner of its baseline and current employment levels and any other information new text end 145.29 new text begin the commissioner determines may be useful to ensure compliance and for legislative new text end 145.30 new text begin evaluation of the effectiveness of the tax incentives. new text end 145.31 new text begin (b) A business ceases to be a qualified business and to qualify for the sales tax new text end 145.32 new text begin exemption under section 297A.68, subdivision 49, under this subdivision upon the earlier new text end 145.33 new text begin of the following dates: new text end 145.34 new text begin (1) the end of the duration of its designation under subdivision 3, paragraph (e), new text end 145.35 new text begin effective as provided under this subdivision or other provision of law for the tax incentive; new text end 145.36 new text begin or new text end 146.1 new text begin (2) the date the commissioner finds that the business has breached its business new text end 146.2 new text begin subsidy agreement and failed to satisfy the minimum expansion required by subdivision 3 new text end 146.3 new text begin and its agreement. new text end 146.4 new text begin (c) A business may contest the commissioner's finding that it breached its business new text end 146.5 new text begin subsidy agreement under paragraph (b), clause (2), under the contested case procedures in new text end 146.6 new text begin the Administrative Procedure Act, chapter 14. new text end 146.7 new text begin (d) The commissioner, after consulting with the commissioner of revenue, may new text end 146.8 new text begin waive a breach of the business subsidy agreement and permit continued receipt of tax new text end 146.9 new text begin incentives, if the commissioner determines that termination of the tax incentives is not in new text end 146.10 new text begin the best interest of the state or the local government units and the business' breach of the new text end 146.11 new text begin agreement is a result of circumstances beyond its control including, but not limited to: new text end 146.12 new text begin (1) a natural disaster; new text end 146.13 new text begin (2) unforeseen industry trends; new text end 146.14 new text begin (3) a decline in economic activity in the overall or greater Minnesota economy; or new text end 146.15 new text begin (4) loss of a major supplier or customer of the business. new text end 146.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 146.17    Sec. 2. Minnesota Statutes 2012, section 297A.61, subdivision 3, is amended to read: 146.18    Subd. 3. Sale and purchase. (a) "Sale" and "purchase" include, but are not limited 146.19to, each of the transactions listed in this subdivision. new text begin In applying the provisions of this new text end 146.20 new text begin chapter, the terms "tangible personal property" and "retail sale" include the taxable new text end 146.21 new text begin services listed in paragraph (g), clause (6), items (i) to (vi) and (viii), and the provision new text end 146.22 new text begin of these taxable services, unless specifically provided otherwise. Services performed by new text end 146.23 new text begin an employee for an employer are not taxable. Services performed by a partnership or new text end 146.24 new text begin association for another partnership or association are not taxable if one of the entities owns new text end 146.25 new text begin or controls more than 80 percent of the voting power of the equity interest in the other new text end 146.26 new text begin entity. Services performed between members of an affiliated group of corporations are not new text end 146.27 new text begin taxable. For purposes of the preceding sentence, "affiliated group of corporations" means new text end 146.28 new text begin those entities that would be classified as members of an affiliated group as defined under new text end 146.29 new text begin United States Code, title 26, section 1504, disregarding the exclusions in section 1504(b). new text end 146.30    (b) Sale and purchase include: 146.31    (1) any transfer of title or possession, or both, of tangible personal property, whether 146.32absolutely or conditionally, for a consideration in money or by exchange or barter; and 146.33    (2) the leasing of or the granting of a license to use or consume, for a consideration 146.34in money or by exchange or barter, tangible personal property, other than a manufactured 146.35home used for residential purposes for a continuous period of 30 days or more. 147.1    (c) Sale and purchase include the production, fabrication, printing, or processing of 147.2tangible personal property for a consideration for consumers who furnish either directly or 147.3indirectly the materials used in the production, fabrication, printing, or processing. 147.4    (d) Sale and purchase include the preparing for a consideration of food. 147.5Notwithstanding section 297A.67, subdivision 2, taxable food includes, but is not limited 147.6to, the following: 147.7    (1) prepared food sold by the retailer; 147.8    (2) soft drinks; 147.9    (3) candy; 147.10    (4) dietary supplements; and 147.11    (5) all food sold through vending machines. 147.12    (e) A sale and a purchase includes the furnishing for a consideration of electricity, 147.13gas, water, or steam for use or consumption within this state. 147.14    (f) A sale and a purchase includes 147.15     the transfer for a consideration of prewritten computer software whether delivered 147.16electronically, by load and leave, or otherwise. 147.17    (g) A sale and a purchase includes the furnishing for a consideration of the following 147.18services: 147.19    (1) the privilege of admission to places of amusement, recreational areas, or athletic 147.20events, and the making available of amusement devices, tanning facilities, reducing 147.21salons, steam baths, Turkish baths, health clubs, and spas or athletic facilities; 147.22    (2) lodging and related services by a hotel, rooming house, resort, campground, 147.23motel, or trailer camp, including furnishing the guest of the facility with access to 147.24telecommunication services, and the granting of any similar license to use real property in 147.25a specific facility, other than the renting or leasing of it for a continuous period of 30 days 147.26or more under an enforceable written agreement that may not be terminated without prior 147.27notice and including accommodations intermediary services provided in connection with 147.28other services provided under this clause; 147.29    (3) nonresidential parking services, whether on a contractual, hourly, or other 147.30periodic basis, except for parking at a meter; 147.31    (4) the granting of membership in a club, association, or other organization if: 147.32    (i) the club, association, or other organization makes available for the use of its 147.33members sports and athletic facilities, without regard to whether a separate charge is 147.34assessed for use of the facilities; and 147.35    (ii) use of the sports and athletic facility is not made available to the general public 147.36on the same basis as it is made available to members. 148.1Granting of membership means both onetime initiation fees and periodic membership 148.2dues. Sports and athletic facilities include golf courses; tennis, racquetball, handball, and 148.3squash courts; basketball and volleyball facilities; running tracks; exercise equipment; 148.4swimming pools; and other similar athletic or sports facilities; 148.5    (5) delivery of aggregate materials by a third party, excluding delivery of aggregate 148.6material used in road construction; and delivery of concrete block by a third party if the 148.7delivery would be subject to the sales tax if provided by the seller of the concrete block new text begin . new text end 148.8 new text begin For purposes of this clause, "road construction" means construction of: new text end 148.9     new text begin (i) public roads; new text end 148.10     new text begin (ii) cartways; and new text end 148.11     new text begin (iii) private roads in townships located outside of the seven-county metropolitan area new text end 148.12 new text begin up to the point of the emergency response location sign new text end ; and 148.13    (6) services as provided in this clause: 148.14    (i) laundry and dry cleaning services including cleaning, pressing, repairing, altering, 148.15and storing clothes, linen services and supply, cleaning and blocking hats, and carpet, 148.16drapery, upholstery, and industrial cleaning. Laundry and dry cleaning services do not 148.17include services provided by coin operated facilities operated by the customer; 148.18    (ii) motor vehicle washing, waxing, and cleaning services, including services 148.19provided by coin operated facilities operated by the customer, and rustproofing, 148.20undercoating, and towing of motor vehicles; 148.21    (iii) building and residential cleaning, maintenance, and disinfecting services and 148.22pest control and exterminating services; 148.23    (iv) detective, security, burglar, fire alarm, and armored car services; but not 148.24including services performed within the jurisdiction they serve by off-duty licensed peace 148.25officers as defined in section 626.84, subdivision 1, or services provided by a nonprofit 148.26organization new text begin or any organization at the direction of a county new text end for monitoring and electronic 148.27surveillance of persons placed on in-home detention pursuant to court order or under the 148.28direction of the Minnesota Department of Corrections; 148.29    (v) pet grooming services; 148.30    (vi) lawn care, fertilizing, mowing, spraying and sprigging services; garden planting 148.31and maintenance; tree, bush, and shrub pruning, bracing, spraying, and surgery; indoor 148.32plant care; tree, bush, shrub, and stump removal, except when performed as part of a land 148.33clearing contract as defined in section 297A.68, subdivision 40; and tree trimming for 148.34public utility lines. Services performed under a construction contract for the installation of 148.35shrubbery, plants, sod, trees, bushes, and similar items are not taxable; 149.1    (vii) massages, except when provided by a licensed health care facility or 149.2professional or upon written referral from a licensed health care facility or professional for 149.3treatment of illness, injury, or disease; and 149.4    (viii) the furnishing of lodging, board, and care services for animals in kennels and 149.5other similar arrangements, but excluding veterinary and horse boarding services. 149.6    In applying the provisions of this chapter, the terms "tangible personal property" 149.7and "retail sale" include taxable services listed in clause (6), items (i) to (vi) and (viii), 149.8and the provision of these taxable services, unless specifically provided otherwise. 149.9Services performed by an employee for an employer are not taxable. Services performed 149.10by a partnership or association for another partnership or association are not taxable if 149.11one of the entities owns or controls more than 80 percent of the voting power of the 149.12equity interest in the other entity. Services performed between members of an affiliated 149.13group of corporations are not taxable. For purposes of the preceding sentence, "affiliated 149.14group of corporations" means those entities that would be classified as members of an 149.15affiliated group as defined under United States Code, title 26, section 1504, disregarding 149.16the exclusions in section 1504(b). 149.17    For purposes of clause (5), "road construction" means construction of (1) public 149.18roads, (2) cartways, and (3) private roads in townships located outside of the seven-county 149.19metropolitan area up to the point of the emergency response location sign. 149.20    (h) A sale and a purchase includes the furnishing for a consideration of tangible 149.21personal property or taxable services by the United States or any of its agencies or 149.22instrumentalities, or the state of Minnesota, its agencies, instrumentalities, or political 149.23subdivisions. 149.24    (i) A sale and a purchase includes the furnishing for a consideration of 149.25telecommunications services, ancillary services associated with telecommunication 149.26services, cable new text begin and pay new text end television services, and direct satellite services. Telecommunication 149.27services include, but are not limited to, the following services, as defined in section 149.28297A.669 : air-to-ground radiotelephone service, mobile telecommunication service, 149.29postpaid calling service, prepaid calling service, prepaid wireless calling service, and 149.30private communication services. The services in this paragraph are taxed to the extent 149.31allowed under federal law. 149.32    (j) A sale and a purchase includes the furnishing for a consideration of installation if 149.33the installation charges would be subject to the sales tax if the installation were provided 149.34by the seller of the item being installed. 149.35    (k) A sale and a purchase includes the rental of a vehicle by a motor vehicle dealer 149.36to a customer when (1) the vehicle is rented by the customer for a consideration, or (2) 150.1the motor vehicle dealer is reimbursed pursuant to a service contract as defined in section 150.259B.02, subdivision 11. 150.3     new text begin (l) A sale and a purchase includes furnishing for a consideration of specified digital new text end 150.4 new text begin products or other digital products or granting the right for a consideration to use specified new text end 150.5 new text begin digital products or other digital products on a temporary or permanent basis and regardless new text end 150.6 new text begin of whether the purchaser is required to make continued payments for such right. Wherever new text end 150.7 new text begin the term "tangible personal property" is used in this chapter, other than in subdivisions 10 new text end 150.8 new text begin and 38, the provisions also apply to specified digital products, or other digital products, new text end 150.9 new text begin unless specifically provided otherwise or the context indicates otherwise. new text end 150.10 new text begin (m) A sale and purchase includes the furnishing for consideration of the following new text end 150.11 new text begin services: new text end 150.12 new text begin (1) repairing and maintaining electronic and precision equipment, which service can new text end 150.13 new text begin be deducted as a business expense under the Internal Revenue Code. This includes, but new text end 150.14 new text begin is not limited to, repair or maintenance of electronic devices, computers and computer new text end 150.15 new text begin peripherals, monitors, computer terminals, storage devices, and CD-ROM drives; other new text end 150.16 new text begin office equipment such as photocopying machines, printers, and facsimile machines; new text end 150.17 new text begin televisions, stereos, sound systems, video or digital recorders and players; two-way radios new text end 150.18 new text begin and other communications equipment; radar and sonar equipment, scientific instruments, new text end 150.19 new text begin microscopes, and medical equipment; new text end 150.20 new text begin (2) repairing and maintaining commercial and industrial machinery and equipment. new text end 150.21 new text begin For purposes of this subdivision, the following items are not commercial or industrial new text end 150.22 new text begin machinery and equipment: (i) motor vehicles; (ii) furniture and fixtures; (iii) ships; (iv) new text end 150.23 new text begin railroad stock; and (v) aircraft; and new text end 150.24 new text begin (3) warehousing or storage services for tangible personal property, excluding: new text end 150.25 new text begin (i) agricultural products; new text end 150.26 new text begin (ii) refrigerated storage; new text end 150.27 new text begin (iii) electronic data; and new text end 150.28 new text begin (iv) self-storage services and storage of motor vehicles, recreational vehicles, and new text end 150.29 new text begin boats, not eligible to be deducted as a business expense under the Internal Revenue Code. new text end 150.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 150.31 new text begin June 30, 2013, except that paragraph (m), clause (3), is effective for sales and purchases new text end 150.32 new text begin made after March 31, 2014. new text end 150.33    Sec. 3. Minnesota Statutes 2012, section 297A.61, subdivision 4, is amended to read: 150.34    Subd. 4. Retail sale. (a) A "retail sale" means new text begin : new text end 151.1     new text begin (1) new text end any sale, lease, or rental new text begin of tangible personal property new text end for any purpose, other than 151.2resale, sublease, or subrent of items by the purchaser in the normal course of business 151.3as defined in subdivision 21 new text begin ; and new text end 151.4     new text begin (2) any sale of a service enumerated in subdivision 3, for any purpose other than new text end 151.5 new text begin resale by the purchaser in the normal course of business as defined in subdivision 21 new text end . 151.6    (b) A sale of property used by the owner only by leasing it to others or by holding it 151.7in an effort to lease it, and put to no use by the owner other than resale after the lease or 151.8effort to lease, is a sale of property for resale. 151.9    (c) A sale of master computer software that is purchased and used to make copies for 151.10sale or lease is a sale of property for resale. 151.11    (d) A sale of building materials, supplies, and equipment to owners, contractors, 151.12subcontractors, or builders for the erection of buildings or the alteration, repair, or 151.13improvement of real property is a retail sale in whatever quantity sold, whether the sale is 151.14for purposes of resale in the form of real property or otherwise. 151.15    (e) A sale of carpeting, linoleum, or similar floor covering to a person who provides 151.16for installation of the floor covering is a retail sale and not a sale for resale since a sale of 151.17floor covering which includes installation is a contract for the improvement of real property. 151.18    (f) A sale of shrubbery, plants, sod, trees, and similar items to a person who provides 151.19for installation of the items is a retail sale and not a sale for resale since a sale of 151.20shrubbery, plants, sod, trees, and similar items that includes installation is a contract for 151.21the improvement of real property. 151.22    (g) A sale of tangible personal property that is awarded as prizes is a retail sale and 151.23is not considered a sale of property for resale. 151.24    (h) A sale of tangible personal property utilized or employed in the furnishing or 151.25providing of services under subdivision 3, paragraph (g), clause (1), including, but not 151.26limited to, property given as promotional items, is a retail sale and is not considered a 151.27sale of property for resale. 151.28    (i) A sale of tangible personal property used in conducting lawful gambling under 151.29chapter 349 or the State Lottery under chapter 349A, including, but not limited to, property 151.30given as promotional items, is a retail sale and is not considered a sale of property for resale. 151.31    (j) a sale of machines, equipment, or devices that are used to furnish, provide, or 151.32dispense goods or services, including, but not limited to, coin-operated devices, is a retail 151.33sale and is not considered a sale of property for resale. 151.34    (k) In the case of a lease, a retail sale occurs (1) when an obligation to make a lease 151.35payment becomes due under the terms of the agreement or the trade practices of the 151.36lessor or (2) in the case of a lease of a motor vehicle, as defined in section 297B.01, 152.1subdivision 11 , but excluding vehicles with a manufacturer's gross vehicle weight rating 152.2greater than 10,000 pounds and rentals of vehicles for not more than 28 days, at the time 152.3the lease is executed. 152.4    (l) In the case of a conditional sales contract, a retail sale occurs upon the transfer of 152.5title or possession of the tangible personal property. 152.6    (m) A sale of a bundled transaction in which one or more of the products included 152.7in the bundle is a taxable product is a retail sale, except that if one of the products 152.8is a telecommunication service, ancillary service, Internet access, or audio or video 152.9programming service, and the seller has maintained books and records identifying through 152.10reasonable and verifiable standards the portions of the price that are attributable to the 152.11distinct and separately identifiable products, then the products are not considered part of a 152.12bundled transaction. For purposes of this paragraph: 152.13    (1) the books and records maintained by the seller must be maintained in the regular 152.14course of business, and do not include books and records created and maintained by the 152.15seller primarily for tax purposes; 152.16    (2) books and records maintained in the regular course of business include, but are 152.17not limited to, financial statements, general ledgers, invoicing and billing systems and 152.18reports, and reports for regulatory tariffs and other regulatory matters; and 152.19    (3) books and records are maintained primarily for tax purposes when the books 152.20and records identify taxable and nontaxable portions of the price, but the seller maintains 152.21other books and records that identify different prices attributable to the distinct products 152.22included in the same bundled transaction. 152.23     new text begin (n) A sale of motor vehicle repair paint and materials by a motor vehicle repair or new text end 152.24 new text begin body shop business is a retail sale and the sales tax is imposed on the gross receipts from the new text end 152.25 new text begin retail sale of the paint and materials. The motor vehicle repair or body shop that purchases new text end 152.26 new text begin motor vehicle repair paint and motor vehicle repair materials for resale must either: new text end 152.27     new text begin (1) separately state each item of paint and each item of materials, and the sales price new text end 152.28 new text begin of each, on the invoice to the purchaser; or new text end 152.29     new text begin (2) in order to calculate the sales price of the paint and materials, use a method new text end 152.30 new text begin which estimates the amount and monetary value of the paint and materials used in new text end 152.31 new text begin the repair of the motor vehicle by multiplying the number of labor hours by a rate of new text end 152.32 new text begin consideration for the paint and materials used in the repair of the motor vehicle following new text end 152.33 new text begin industry standard practices that fairly calculate the gross receipts from the retail sale of new text end 152.34 new text begin the motor vehicle repair paint and motor vehicle repair materials. An industry standard new text end 152.35 new text begin practice fairly calculates the gross receipts if the sales price of the paint and materials used new text end 152.36 new text begin or consumed in the repair of a motor vehicle equals or exceeds the purchase price paid new text end 153.1 new text begin by the motor vehicle repair or body shop business. Under this clause, the invoice must new text end 153.2 new text begin either separately state the "paint and materials" as a single taxable item, or separately state new text end 153.3 new text begin "paint" as a taxable item and "materials" as a taxable item. This clause does not apply to new text end 153.4 new text begin wholesale transactions at an auto auction facility. new text end 153.5     new text begin (o) A sale of specified digital products or other digital products to an end user with new text end 153.6 new text begin or without rights of permanent use and regardless of whether rights of use are conditioned new text end 153.7 new text begin upon payment by the purchaser is a retail sale. When a digital code has been purchased that new text end 153.8 new text begin relates to specified digital products or other digital products, the subsequent receipt of or new text end 153.9 new text begin access to the related specified digital products or other digital products is not a retail sale. new text end 153.10     new text begin (p) A payment made to a cooperative electric association or public utility as a new text end 153.11 new text begin contribution in aid of construction is a contract for improvement to real property and new text end 153.12 new text begin is not a retail sale. new text end 153.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 153.14 new text begin June 30, 2013. new text end 153.15    Sec. 4. Minnesota Statutes 2012, section 297A.61, subdivision 10, is amended to read: 153.16    Subd. 10. Tangible personal property. (a) "Tangible personal property" means 153.17personal property that can be seen, weighed, measured, felt, or touched, or that is in any 153.18other manner perceptible to the senses. "Tangible personal property" includes, but is not 153.19limited to, electricity, water, gas, steam, and prewritten computer software. 153.20    (b) Tangible personal property does not include: 153.21    (1) large ponderous machinery and equipment used in a business or production 153.22activity which at common law would be considered to be real property; 153.23    (2) property which is subject to an ad valorem property tax; 153.24    (3) property described in section 272.02, subdivision 9, clauses (a) to (d); and 153.25    (4) property described in section 272.03, subdivision 2, clauses (3) and (5). new text begin ; and new text end 153.26 new text begin (5) specified digital products, or other digital products, transferred electronically. new text end 153.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 153.28 new text begin June 30, 2013. new text end 153.29    Sec. 5. Minnesota Statutes 2012, section 297A.61, subdivision 25, is amended to read: 153.30    Subd. 25. Cable new text begin Pay new text end television service. "Cable new text begin Pay new text end television service" means 153.31the transmission of video, audio, or other programming service to purchasers, and the 153.32subscriber interaction, if any, required for the selection or use of the programming service, 153.33regardless of whether the programming is transmitted over facilities owned or operated 154.1by the cable service provider or over facilities owned or operated by one or more dealers 154.2of communications services. The term includes point-to-multipoint distribution new text begin direct to new text end 154.3 new text begin home satellite new text end services by which programming is transmitted or broadcast by microwave 154.4or other equipment directly to the subscriber's premises new text begin , or any similar or comparable new text end 154.5 new text begin method of service new text end . The term includes basic, extended, premium, new text begin all programming services, new text end 154.6 new text begin including subscriptions, digital video recorders, new text end pay-per-view, digital, and music services. 154.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 154.8 new text begin June 30, 2013. new text end 154.9    Sec. 6. Minnesota Statutes 2012, section 297A.61, subdivision 38, is amended to read: 154.10    Subd. 38. Bundled transaction. (a) "Bundled transaction" means the retail sale 154.11of two or more products when the products are otherwise distinct and identifiable, and 154.12the products are sold for one nonitemized price. As used in this subdivision, "product" 154.13includes tangible personal property, services, intangibles, and digital goods new text begin , including new text end 154.14 new text begin specified digital products or other digital products new text end , but does not include real property or 154.15services to real property. A bundled transaction does not include the sale of any products 154.16in which the sales price varies, or is negotiable, based on the selection by the purchaser of 154.17the products included in the transaction. 154.18    (b) For purposes of this subdivision, "distinct and identifiable" products does not 154.19include: 154.20    (1) packaging and other materials, such as containers, boxes, sacks, bags, and 154.21bottles, wrapping, labels, tags, and instruction guides, that accompany the retail sale of the 154.22products and are incidental or immaterial to the retail sale. Examples of packaging that are 154.23incidental or immaterial include grocery sacks, shoe boxes, dry cleaning garment bags, 154.24and express delivery envelopes and boxes; 154.25    (2) a promotional product provided free of charge with the required purchase of 154.26another product. A promotional product is provided free of charge if the sales price of 154.27another product, which is required to be purchased in order to receive the promotional 154.28product, does not vary depending on the inclusion of the promotional product; and 154.29    (3) items included in the definition of sales price. 154.30    (c) For purposes of this subdivision, the term "one nonitemized price" does not 154.31include a price that is separately identified by product on binding sales or other supporting 154.32sales-related documentation made available to the customer in paper or electronic form 154.33including but not limited to an invoice, bill of sale, receipt, contract, service agreement, 154.34lease agreement, periodic notice of rates and services, rate card, or price list. 155.1    (d) A transaction that otherwise meets the definition of a bundled transaction is 155.2not a bundled transaction if it is: 155.3    (1) the retail sale of tangible personal property and a service and the tangible 155.4personal property is essential to the use of the service, and is provided exclusively in 155.5connection with the service, and the true object of the transaction is the service; 155.6    (2) the retail sale of services if one service is provided that is essential to the use or 155.7receipt of a second service and the first service is provided exclusively in connection with 155.8the second service and the true object of the transaction is the second service; 155.9    (3) a transaction that includes taxable products and nontaxable products and the 155.10purchase price or sales price of the taxable products is de minimis; or 155.11    (4) the retail sale of exempt tangible personal property and taxable tangible personal 155.12property if: 155.13    (i) the transaction includes food and food ingredients, drugs, durable medical 155.14equipment, mobility enhancing equipment, over-the-counter drugs, prosthetic devices, 155.15or medical supplies; and 155.16    (ii) the seller's purchase price or sales price of the taxable tangible personal property is 155.1750 percent or less of the total purchase price or sales price of the bundled tangible personal 155.18property. Sellers must not use a combination of the purchase price and sales price of the 155.19tangible personal property when making the 50 percent determination for a transaction. 155.20    (e) For purposes of this subdivision, "purchase price" means the measure subject to 155.21use tax on purchases made by the seller, and "de minimis" means that the seller's purchase 155.22price or sales price of the taxable products is ten percent or less of the total purchase 155.23price or sales price of the bundled products. Sellers shall use either the purchase price 155.24or the sales price of the products to determine if the taxable products are de minimis. 155.25Sellers must not use a combination of the purchase price and sales price of the products 155.26to determine if the taxable products are de minimis. Sellers shall use the full term of a 155.27service contract to determine if the taxable products are de minimis. 155.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 155.29 new text begin June 30, 2013. new text end 155.30    Sec. 7. Minnesota Statutes 2012, section 297A.61, subdivision 45, is amended to read: 155.31    Subd. 45. Ring tone. "Ring tone" means a digitized sound file that is downloaded 155.32onto a device and that may be used to alert the customer of a telecommunication service 155.33 with respect to a communication. new text begin A ring tone does not include ring back tones or other new text end 155.34 new text begin digital audio files that are not stored on the purchaser's communication device. new text end 156.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 156.2 new text begin June 30, 2013. new text end 156.3    Sec. 8. Minnesota Statutes 2012, section 297A.61, is amended by adding a subdivision 156.4to read: 156.5     new text begin Subd. 49. new text end new text begin Motor vehicle repair paint and motor vehicle repair materials. new text end new text begin "Motor new text end 156.6 new text begin vehicle repair paint" means a substance composed of solid matter suspended in a liquid new text end 156.7 new text begin medium and applied as a protective or decorative coating to the surface of a motor vehicle in new text end 156.8 new text begin order to restore the motor vehicle to its original condition, and includes primer, body paint, new text end 156.9 new text begin clear coat, and paint thinner used to paint motor vehicles, as defined in section 297B.01. new text end 156.10 new text begin "Motor vehicle repair materials" means items, other than motor vehicle repair paint new text end 156.11 new text begin or motor vehicle parts, that become a part of a repaired motor vehicle or are consumed in new text end 156.12 new text begin repairing the motor vehicle at retail, and include abrasives, battery water, body filler or new text end 156.13 new text begin putty, bolts and nuts, brake fluid, buffing pads, chamois, cleaning compounds, degreasing new text end 156.14 new text begin compounds, glaze, grease, grinding discs, hydraulic jack oil, lubricants, masking tape, new text end 156.15 new text begin oxygen and acetylene, polishes, rags, razor blades, sandpaper, sanding discs, scuff pads, new text end 156.16 new text begin sealer, solder, solvents, striping tape, tack cloth, thinner, waxes, and welding rods. Motor new text end 156.17 new text begin vehicle repair materials do not include items that are not used directly on the motor vehicle, new text end 156.18 new text begin such as floor dry that is used to clean the shop, or cleaning compounds and rags that are new text end 156.19 new text begin used to clean tools, equipment, or the shop and are not used to clean the motor vehicle. new text end 156.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 156.21 new text begin June 30, 2013. new text end 156.22    Sec. 9. Minnesota Statutes 2012, section 297A.61, is amended by adding a subdivision 156.23to read: 156.24     new text begin Subd. 50. new text end new text begin Digital audio works. new text end new text begin "Digital audio works" means works that result from new text end 156.25 new text begin a fixation of a series of musical, spoken, or other sounds, that are transferred electronically. new text end 156.26 new text begin Digital audio works includes such items as the following which may either be prerecorded new text end 156.27 new text begin or live: songs, music, readings of books or other written materials, speeches, ring tones, or new text end 156.28 new text begin other sound recordings. Digital audio works does not include audio greeting cards sent by new text end 156.29 new text begin electronic mail. Unless the context provides otherwise, in this chapter digital audio works new text end 156.30 new text begin includes the digital code, or a subscription to or access to a digital code, for receiving, new text end 156.31 new text begin accessing, or otherwise obtaining digital audio works. new text end 156.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 156.33 new text begin June 30, 2013. new text end 157.1    Sec. 10. Minnesota Statutes 2012, section 297A.61, is amended by adding a 157.2subdivision to read: 157.3     new text begin Subd. 51. new text end new text begin Digital audiovisual works. new text end new text begin "Digital audiovisual works" means a series new text end 157.4 new text begin of related images which, when shown in succession, impart an impression of motion, new text end 157.5 new text begin together with accompanying sounds, if any, that are transferred electronically. Digital new text end 157.6 new text begin audiovisual works includes such items as motion pictures, movies, musical videos, news new text end 157.7 new text begin and entertainment, and live events. Digital audiovisual works does not include video new text end 157.8 new text begin greeting cards sent by electronic mail. Unless the context provides otherwise, in this new text end 157.9 new text begin chapter digital audiovisual works includes the digital code, or a subscription to or access to new text end 157.10 new text begin a digital code, for receiving, accessing, or otherwise obtaining digital audiovisual works. new text end 157.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 157.12 new text begin June 30, 2013. new text end 157.13    Sec. 11. Minnesota Statutes 2012, section 297A.61, is amended by adding a 157.14subdivision to read: 157.15     new text begin Subd. 52. new text end new text begin Digital books. new text end new text begin "Digital books" means any literary works, other than new text end 157.16 new text begin digital audiovisual works or digital audio works, expressed in words, numbers, or other new text end 157.17 new text begin verbal or numerical symbols or indicia so long as the product is generally recognized in new text end 157.18 new text begin the ordinary and usual sense as a "book." It includes works of fiction and nonfiction and new text end 157.19 new text begin short stories. It does not include periodicals, magazines, newspapers, or other news or new text end 157.20 new text begin information products, chat rooms, or weblogs. Unless the context provides otherwise, in new text end 157.21 new text begin this chapter digital books includes the digital code, or a subscription to or access to a new text end 157.22 new text begin digital code, for receiving, accessing, or otherwise obtaining digital books. new text end 157.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 157.24 new text begin June 30, 2013. new text end 157.25    Sec. 12. Minnesota Statutes 2012, section 297A.61, is amended by adding a 157.26subdivision to read: 157.27     new text begin Subd. 53. new text end new text begin Digital code. new text end new text begin "Digital code" means a code which provides a purchaser new text end 157.28 new text begin with a right to obtain one or more specified digital products or other digital products. new text end 157.29 new text begin A digital code may be transferred electronically, such as through electronic mail, or it new text end 157.30 new text begin may be transferred on a tangible medium, such as on a plastic card, a piece of paper or new text end 157.31 new text begin invoice, or imprinted on another product. A digital code is not a code that represents a new text end 157.32 new text begin stored monetary value that is deducted from a total as it is used by the purchaser, and it new text end 157.33 new text begin is not a code that represents a redeemable card, gift card, or gift certificate that entitles new text end 158.1 new text begin the holder to select a digital product of an indicated cash value. The end user of a digital new text end 158.2 new text begin code is any purchaser except one who receives the contractual right to redistribute a digital new text end 158.3 new text begin product which is the subject of the transaction. new text end 158.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 158.5 new text begin June 30, 2013. new text end 158.6    Sec. 13. Minnesota Statutes 2012, section 297A.61, is amended by adding a 158.7subdivision to read: 158.8     new text begin Subd. 54. new text end new text begin Other digital products. new text end new text begin "Other digital products" means the following new text end 158.9 new text begin items when transferred electronically: new text end 158.10 new text begin (1) greeting cards; and new text end 158.11 new text begin (2) online video or electronic games. new text end 158.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 158.13 new text begin June 30, 2013. new text end 158.14    Sec. 14. Minnesota Statutes 2012, section 297A.61, is amended by adding a 158.15subdivision to read: 158.16     new text begin Subd. 55. new text end new text begin Specified digital products. new text end new text begin "Specified digital products" means digital new text end 158.17 new text begin audio works, digital audiovisual works, and digital books that are transferred electronically new text end 158.18 new text begin to a customer. new text end 158.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 158.20 new text begin June 30, 2013. new text end 158.21    Sec. 15. Minnesota Statutes 2012, section 297A.61, is amended by adding a 158.22subdivision to read: 158.23     new text begin Subd. 56. new text end new text begin Transferred electronically. new text end new text begin "Transferred electronically" means obtained new text end 158.24 new text begin by the purchaser by means other than tangible storage media. For purposes of this new text end 158.25 new text begin subdivision, it is not necessary that a copy of the product be physically transferred to new text end 158.26 new text begin the purchaser. A product will be considered to have been transferred electronically to a new text end 158.27 new text begin purchaser if the purchaser has access to the product. new text end 158.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 158.29 new text begin June 30, 2013. new text end 159.1    Sec. 16. Minnesota Statutes 2012, section 297A.61, is amended by adding a 159.2subdivision to read: 159.3     new text begin Subd. 58. new text end new text begin Self-storage service. new text end new text begin "Self-storage service" means a storage service that new text end 159.4 new text begin provides secure areas, such as rooms, units, compartments or containers, whether accessible new text end 159.5 new text begin from outside or from within a building, that are designated for the use of a purchaser, new text end 159.6 new text begin where the purchaser retains the care custody and control of their property, including new text end 159.7 new text begin self-storage units, mini-storage units, and areas by any other name to which the purchaser new text end 159.8 new text begin retains either unlimited free access or free access within reasonable business hours or upon new text end 159.9 new text begin reasonable notice to the service provider to add or remove property, but does not mean the new text end 159.10 new text begin rental of an entire building, such as a warehouse. Self-storage service does not include new text end 159.11 new text begin general warehousing and storage services where the warehouse typically handles, stores, new text end 159.12 new text begin and retrieves a purchaser's property using the warehouse's staff and equipment, and does new text end 159.13 new text begin not allow the purchaser free access to the storage space and does not include bailments. new text end 159.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2013. new text end 159.15    Sec. 17. Minnesota Statutes 2012, section 297A.64, subdivision 1, is amended to read: 159.16    Subdivision 1. Tax imposed. A tax is imposed on the lease or rental in this state 159.17for not more than 28 days of a passenger automobile as defined in section 168.002, 159.18subdivision 24 , a van as defined in section 168.002, subdivision 40, or a pickup truck as 159.19defined in section 168.002, subdivision 26. The rate of tax is 6.2 new text begin 9.2 new text end percent of the sales 159.20price. The tax applies whether or not the vehicle is licensed in the state. 159.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 159.22 new text begin June 30, 2013. new text end 159.23    Sec. 18. Minnesota Statutes 2012, section 297A.66, subdivision 3, is amended to read: 159.24    Subd. 3. Retailer not maintaining place of business in this state. (a) To the extent 159.25allowed by the United States Constitution and the laws of the United States new text begin in accordance new text end 159.26 new text begin with the terms and conditions of federal remote seller law new text end , a retailer making retail sales 159.27from outside this state to a destination within this state and not maintaining a place of 159.28business in this state shall collect sales and use taxes and remit them to the commissioner 159.29under section 297A.77, new text begin . new text end 159.30 new text begin (b) To the extent allowed by the United States Constitution and the laws of the new text end 159.31 new text begin United States, a retailer making retail sales from outside this state to a destination within new text end 159.32 new text begin this state and not maintaining a place of business in this state shall collect sales and use new text end 160.1 new text begin taxes and remit them to the commissioner under section new text end new text begin , new text end if the retailer engages in 160.2the regular or systematic soliciting of sales from potential customers in this state by: 160.3(1) distribution, by mail or otherwise, of catalogs, periodicals, advertising flyers, or 160.4other written solicitations of business to customers in this state; 160.5(2) display of advertisements on billboards or other outdoor advertising in this state; 160.6(3) advertisements in newspapers published in this state; 160.7(4) advertisements in trade journals or other periodicals the circulation of which is 160.8primarily within this state; 160.9(5) advertisements in a Minnesota edition of a national or regional publication or 160.10a limited regional edition in which this state is included as part of a broader regional or 160.11national publication which are not placed in other geographically defined editions of the 160.12same issue of the same publication; 160.13(6) advertisements in regional or national publications in an edition which is not 160.14by its contents geographically targeted to Minnesota but which is sold over the counter 160.15in Minnesota or by subscription to Minnesota residents; 160.16(7) advertisements broadcast on a radio or television station located in Minnesota; or 160.17(8) any other solicitation by telegraphy, telephone, computer database, cable, optic, 160.18microwave, or other communication system. 160.19This paragraph (a) must be construed without regard to the state from which 160.20distribution of the materials originated or in which they were prepared. 160.21(b) The location within or without this state of independent vendors that provide 160.22products or services to the retailer in connection with its solicitation of customers within this 160.23state, including such products and services as creation of copy, printing, distribution, and 160.24recording, is not considered in determining whether the retailer is required to collect tax. 160.25(c) A retailer not maintaining a place of business in this state is presumed, subject to 160.26rebuttal, to be engaged in regular solicitation within this state if it engages in any of the 160.27activities in paragraph (a) and: 160.28(1) makes 100 or more retail sales from outside this state to destinations in this state 160.29during a period of 12 consecutive months; or 160.30(2) makes ten or more retail sales totaling more than $100,000 from outside this state 160.31to destinations in this state during a period of 12 consecutive months. 160.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after final enactment. new text end 160.33    Sec. 19. Minnesota Statutes 2012, section 297A.66, is amended by adding a 160.34subdivision to read: 161.1     new text begin Subd. 4a. new text end new text begin Solicitor. new text end new text begin (a) "Solicitor," for purposes of subdivision 1, paragraph (a), new text end 161.2 new text begin means a person, whether an independent contractor or other representative, who directly new text end 161.3 new text begin or indirectly solicits business for the retailer. new text end 161.4 new text begin (b) A retailer is presumed to have a solicitor in this state if it enters into an agreement new text end 161.5 new text begin with a resident under which the resident, for a commission or other substantially similar new text end 161.6 new text begin consideration, directly or indirectly refers potential customers, whether by a link on an new text end 161.7 new text begin Internet Web site, or otherwise, to the seller. This paragraph only applies if the total gross new text end 161.8 new text begin receipts are at least $10,000 in the 12-month period ending on the last day of the most recent new text end 161.9 new text begin calendar quarter before the calendar quarter in which the sale is made. For purposes of this new text end 161.10 new text begin paragraph, gross receipts means receipts from sales to customers located in the state who new text end 161.11 new text begin were referred to the retailer by all residents with this type of agreement with the retailer. new text end 161.12 new text begin (c) The presumption under paragraph (b) may be rebutted by proof that the resident new text end 161.13 new text begin with whom the seller has an agreement did not engage in any solicitation in the state new text end 161.14 new text begin on behalf of the retailer that would satisfy the nexus requirement of the United States new text end 161.15 new text begin Constitution during the 12-month period in question. Nothing in this section shall be new text end 161.16 new text begin construed to narrow the scope of the terms affiliate, agent, salesperson, canvasser, or other new text end 161.17 new text begin representative for purposes of subdivision 1, paragraph (a). new text end 161.18 new text begin (d) For purposes of this paragraph, "resident" includes an individual who is a new text end 161.19 new text begin resident of this state, as defined in section 290.01, or a business that owns tangible new text end 161.20 new text begin personal property located in this state or has one or more employees providing services for new text end 161.21 new text begin the business in this state. new text end 161.22 new text begin (e) This subdivision does not apply to chapter 290 and does not expand or contract new text end 161.23 new text begin the jurisdiction to tax a trade or business under chapter 290. new text end 161.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 161.25 new text begin June 30, 2013. new text end 161.26    Sec. 20. Minnesota Statutes 2012, section 297A.665, is amended to read: 161.27297A.665 PRESUMPTION OF TAX; BURDEN OF PROOF. 161.28    (a) For the purpose of the proper administration of this chapter and to prevent 161.29evasion of the tax, until the contrary is established, it is presumed that: 161.30    (1) all gross receipts are subject to the tax; and 161.31    (2) all retail sales for delivery in Minnesota are for storage, use, or other consumption 161.32in Minnesota. 161.33    (b) The burden of proving that a sale is not a taxable retail sale is on the seller. 161.34However, a seller is relieved of liability if: 162.1    (1) the seller obtains a fully completed exemption certificate or all the relevant 162.2information required by section 297A.72, subdivision 2, at the time of the sale or within 162.390 days after the date of the sale; or 162.4    (2) if the seller has not obtained a fully completed exemption certificate or all the 162.5relevant information required by section 297A.72, subdivision 2, within the time provided 162.6in clause (1), within 120 days after a request for substantiation by the commissioner, 162.7the seller either: 162.8    (i) obtains in good faith a fully completed exemption certificate or all the relevant 162.9information required by section 297A.72, subdivision 2, from the purchaser; or 162.10    (ii) proves by other means that the transaction was not subject to tax new text begin ; new text end 162.11     new text begin (3) in the case of drop shipment sales, a seller engaged in drop shipping may claim a new text end 162.12 new text begin resale exemption based on an exemption certificate provided by its customer or reseller, new text end 162.13 new text begin or any other acceptable information available to the seller engaged in drop shipping new text end 162.14 new text begin evidencing qualification for a resale exemption, regardless of whether the customer or new text end 162.15 new text begin reseller is registered to collect and remit sales and use tax in the state new text end . 162.16    (c) Notwithstanding paragraph (b), relief from liability does not apply to a seller who: 162.17    (1) fraudulently fails to collect the tax; or 162.18    (2) solicits purchasers to participate in the unlawful claim of an exemption. 162.19    (d) A certified service provider, as defined in section 297A.995, subdivision 2, is 162.20relieved of liability under this section to the extent a seller who is its client is relieved of 162.21liability. 162.22    (e) A purchaser of tangible personal property or any items listed in section 297A.63 162.23that are shipped or brought to Minnesota by the purchaser has the burden of proving that the 162.24property was not purchased from a retailer for storage, use, or consumption in Minnesota. 162.25    (f) If a seller claims that certain sales are exempt and does not provide the certificate, 162.26information, or proof required by paragraph (b), clause (2), within 120 days after the date 162.27of the commissioner's request for substantiation, then the exemptions claimed by the seller 162.28that required substantiation are disallowed. 162.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 162.30 new text begin June 30, 2013. new text end 162.31    Sec. 21. Minnesota Statutes 2012, section 297A.668, is amended by adding a 162.32subdivision to read: 162.33     new text begin Subd. 6a. new text end new text begin Multiple points of use. new text end new text begin (a) Notwithstanding the provisions of subdivisions new text end 162.34 new text begin 2 and 3, a business purchaser that has not received authorization to pay the tax directly to new text end 162.35 new text begin the commissioner may use an exemption certificate indicating multiple points of use if: new text end 163.1 new text begin (1) the purchaser knows at the time of its purchase of a digital good, computer new text end 163.2 new text begin software delivered electronically, or a service that the good or service will be concurrently new text end 163.3 new text begin available for use in more than one taxing jurisdiction; and new text end 163.4 new text begin (2) the purchaser delivers to the seller the exemption certificate indicating multiple new text end 163.5 new text begin points of use at the time of purchase. new text end 163.6 new text begin (b) Upon receipt of the fully completed exemption certificate indicating multiple new text end 163.7 new text begin points of use, the seller is relieved of the obligation to collect, pay, or remit the applicable new text end 163.8 new text begin tax and the purchaser is obligated to collect, pay, or remit the applicable tax on a direct new text end 163.9 new text begin pay basis. The provisions of section 297A.665 apply to this paragraph. new text end 163.10 new text begin (c) The purchaser delivering the exemption certificate indicating multiple points new text end 163.11 new text begin of use may use any reasonable but consistent and uniform method of apportionment new text end 163.12 new text begin that is supported by the purchaser's business records as they exist at the time of the new text end 163.13 new text begin consummation of the sale. new text end 163.14 new text begin (d) The purchaser shall provide the exemption certificate indicating multiple points new text end 163.15 new text begin of use to the seller at the time of purchase. new text end 163.16 new text begin (e) A purchaser that has received authorization to pay the tax directly to the new text end 163.17 new text begin commissioner is not required to deliver to the seller an exemption certificate indicating new text end 163.18 new text begin multiple points of use. A purchaser that has received authorization to pay the tax directly new text end 163.19 new text begin to the commissioner shall follow the provisions of paragraph (c) in apportioning the tax new text end 163.20 new text begin due on a digital good, computer software delivered electronically, or a service that will be new text end 163.21 new text begin concurrently available for use in more than one taxing jurisdiction. new text end 163.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 163.23 new text begin June 30, 2013. new text end 163.24    Sec. 22. Minnesota Statutes 2012, section 297A.67, subdivision 7, is amended to read: 163.25    Subd. 7. Drugs; medical devices. (a) Sales of the following drugs and medical 163.26devices for human use are exempt: 163.27    (1) drugs, including over-the-counter drugs; 163.28    (2) single-use finger-pricking devices for the extraction of blood and other single-use 163.29devices and single-use diagnostic agents used in diagnosing, monitoring, or treating 163.30diabetes; 163.31    (3) insulin and medical oxygen for human use, regardless of whether prescribed 163.32or sold over the counter; 163.33    (4) prosthetic devices; 163.34    (5) durable medical equipment for home use only; 163.35    (6) mobility enhancing equipment; 164.1    (7) prescription corrective eyeglasses; and 164.2    (8) kidney dialysis equipment, including repair and replacement parts. 164.3 new text begin (b) Items purchased in transactions covered by: new text end 164.4 new text begin (1) Medicare as defined under title XVIII of the Social Security Act, United States new text end 164.5 new text begin Code, title 42, section 1395, et seq.; or new text end 164.6 new text begin (2) Medicaid as defined under title XIX of the Social Security Act, United States new text end 164.7 new text begin Code, title 42, section 1396, et seq. new text end 164.8    (b) new text begin (c) new text end For purposes of this subdivision: 164.9    (1) "Drug" means a compound, substance, or preparation, and any component of 164.10a compound, substance, or preparation, other than food and food ingredients, dietary 164.11supplements, or alcoholic beverages that is: 164.12    (i) recognized in the official United States Pharmacopoeia, official Homeopathic 164.13Pharmacopoeia of the United States, or official National Formulary, and supplement 164.14to any of them; 164.15    (ii) intended for use in the diagnosis, cure, mitigation, treatment, or prevention 164.16of disease; or 164.17    (iii) intended to affect the structure or any function of the body. 164.18    (2) "Durable medical equipment" means equipment, including repair and 164.19replacement parts, new text begin including single-patient use items, new text end but not including mobility enhancing 164.20equipment, that: 164.21    (i) can withstand repeated use; 164.22    (ii) is primarily and customarily used to serve a medical purpose; 164.23    (iii) generally is not useful to a person in the absence of illness or injury; and 164.24    (iv) is not worn in or on the body. 164.25    For purposes of this clause, "repair and replacement parts" includes all components 164.26or attachments used in conjunction with the durable medical equipment, but does not 164.27include new text begin including new text end repair and replacement parts which are for single patient use only. 164.28    (3) "Mobility enhancing equipment" means equipment, including repair and 164.29replacement parts, but not including durable medical equipment, that: 164.30    (i) is primarily and customarily used to provide or increase the ability to move from 164.31one place to another and that is appropriate for use either in a home or a motor vehicle; 164.32    (ii) is not generally used by persons with normal mobility; and 164.33    (iii) does not include any motor vehicle or equipment on a motor vehicle normally 164.34provided by a motor vehicle manufacturer. 164.35    (4) "Over-the-counter drug" means a drug that contains a label that identifies the 164.36product as a drug as required by Code of Federal Regulations, title 21, section 201.66. The 165.1label must include a "drug facts" panel or a statement of the active ingredients with a list of 165.2those ingredients contained in the compound, substance, or preparation. Over-the-counter 165.3drugs do not include grooming and hygiene products, regardless of whether they otherwise 165.4meet the definition. "Grooming and hygiene products" are soaps, cleaning solutions, 165.5shampoo, toothpaste, mouthwash, antiperspirants, and suntan lotions and sunscreens. 165.6    (5) "Prescribed" and "prescription" means a direction in the form of an order, 165.7formula, or recipe issued in any form of oral, written, electronic, or other means of 165.8transmission by a duly licensed health care professional. 165.9    (6) "Prosthetic device" means a replacement, corrective, or supportive device, 165.10including repair and replacement parts, worn on or in the body to: 165.11    (i) artificially replace a missing portion of the body; 165.12    (ii) prevent or correct physical deformity or malfunction; or 165.13    (iii) support a weak or deformed portion of the body. 165.14Prosthetic device does not include corrective eyeglasses. 165.15    (7) "Kidney dialysis equipment" means equipment that: 165.16    (i) is used to remove waste products that build up in the blood when the kidneys are 165.17not able to do so on their own; and 165.18    (ii) can withstand repeated use, including multiple use by a single patient, 165.19notwithstanding the provisions of clause (2). 165.20 new text begin (8) A transaction is covered by Medicare or Medicaid if any portion of the cost of new text end 165.21 new text begin the item purchased in the transaction is paid for or reimbursed by the federal government new text end 165.22 new text begin or the state of Minnesota pursuant to the Medicare or Medicaid program, by a private new text end 165.23 new text begin insurance company administering the Medicare or Medicaid program on behalf of the new text end 165.24 new text begin federal government or the state of Minnesota, or by a managed care organization for the new text end 165.25 new text begin benefit of a patient enrolled in a prepaid program that furnishes medical services in lieu new text end 165.26 new text begin of conventional Medicare or Medicaid coverage pursuant to agreement with the federal new text end 165.27 new text begin government or the state of Minnesota. new text end 165.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 165.29 new text begin June 30, 2013. new text end 165.30    Sec. 23. Minnesota Statutes 2012, section 297A.67, is amended by adding a 165.31subdivision to read: 165.32     new text begin Subd. 7a. new text end new text begin Accessories and supplies. new text end new text begin Accessories and supplies required for the new text end 165.33 new text begin effective use of durable medical equipment for home use only or purchased in a transaction new text end 165.34 new text begin covered by medicare or Medicaid, that are not already exempt under section 297A.67, new text end 165.35 new text begin subdivision 7, are exempt. Accessories and supplies for the effective use of a prosthetic new text end 166.1 new text begin device that are not already exempt under section 297A.67, subdivision 7, are exempt. new text end 166.2 new text begin For purposes of this subdivision "durable medical equipment," "prosthetic device," new text end 166.3 new text begin "Medicare," and "Medicaid" have the definitions given in section 297A.67, subdivision 7. new text end 166.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 166.5 new text begin June 30, 2013. new text end 166.6    Sec. 24. Minnesota Statutes 2012, section 297A.67, subdivision 13, is amended to read: 166.7    Subd. 13. Textbooks. Textbooks new text begin , including digital books, new text end that are prescribed for use 166.8in conjunction with a course of study in a school, college, university, and private career 166.9school to students who are regularly enrolled at such institutions are exempt. For purposes 166.10of this subdivision (1) a "school" is as defined in section 120A.22, subdivision 4; and (2) 166.11"private career school" means a school licensed under section 141.25. 166.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 166.13 new text begin June 30, 2013. new text end 166.14    Sec. 25. Minnesota Statutes 2012, section 297A.68, subdivision 2, is amended to read: 166.15    Subd. 2. Materials consumed in industrial production. (a) Materials stored, used, 166.16or consumed in industrial production of new text begin tangible new text end personal property intended to be sold 166.17ultimately at retail new text begin , new text end are exempt, whether or not the item so used becomes an ingredient 166.18or constituent part of the property produced. Materials that qualify for this exemption 166.19include, but are not limited to, the following: 166.20(1) chemicals, including chemicals used for cleaning food processing machinery 166.21and equipment; 166.22(2) materials, including chemicals, fuels, and electricity purchased by persons 166.23engaged in industrial production to treat waste generated as a result of the production 166.24process; 166.25(3) fuels, electricity, gas, and steam used or consumed in the production process, 166.26except that electricity, gas, or steam used for space heating, cooling, or lighting is exempt 166.27if (i) it is in excess of the average climate control or lighting for the production area, and 166.28(ii) it is necessary to produce that particular product; 166.29(4) petroleum products and lubricants; 166.30(5) packaging materials, including returnable containers used in packaging food 166.31and beverage products; 167.1(6) accessory tools, equipment, and other items that are separate detachable units 167.2with an ordinary useful life of less than 12 months used in producing a direct effect upon 167.3the product; and 167.4(7) the following materials, tools, and equipment used in metal-casting: crucibles, 167.5thermocouple protection sheaths and tubes, stalk tubes, refractory materials, molten metal 167.6filters and filter boxes, degassing lances, and base blocks. 167.7(b) This exemption does not include: 167.8(1) machinery, equipment, implements, tools, accessories, appliances, contrivances 167.9and furniture and fixtures, except those listed in paragraph (a), clause (6); and 167.10(2) petroleum and special fuels used in producing or generating power for propelling 167.11ready-mixed concrete trucks on the public highways of this state. 167.12(c) Industrial production includes, but is not limited to, research, development, 167.13design or production of any tangible personal property, manufacturing, processing (other 167.14than by restaurants and consumers) of agricultural products (whether vegetable or animal), 167.15commercial fishing, refining, smelting, reducing, brewing, distilling, printing, mining, 167.16quarrying, lumbering, generating electricity, the production of road building materials, 167.17and the research, development, design, or production of computer software. Industrial 167.18production does not include painting, cleaning, repairing or similar processing of property 167.19except as part of the original manufacturing process. 167.20(d) Industrial production does not include: 167.21(1) the furnishing of services listed in section 297A.61, subdivision 3, paragraph (g), 167.22clause (6), items (i) to (vi) and (viii) new text begin , or paragraph (m) new text end ; or 167.23(2) the transportation, transmission, or distribution of petroleum, liquefied gas, 167.24natural gas, water, or steam, in, by, or through pipes, lines, tanks, mains, or other means of 167.25transporting those products. For purposes of this paragraph, "transportation, transmission, 167.26or distribution" does not include blending of petroleum or biodiesel fuel as defined 167.27in section 239.77. 167.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 167.29 new text begin June 30, 2013. new text end 167.30    Sec. 26. Minnesota Statutes 2012, section 297A.68, subdivision 5, is amended to read: 167.31    Subd. 5. Capital equipment. (a) Capital equipment is exempt. The tax must be 167.32imposed and collected as if the rate under section 297A.62, subdivision 1, applied, and 167.33then refunded in the manner provided in section . 167.34"Capital equipment" means machinery and equipment purchased or leased, and used 167.35in this state by the purchaser or lessee primarily for manufacturing, fabricating, mining, 168.1or refining tangible personal property to be sold ultimately at retail if the machinery and 168.2equipment are essential to the integrated production process of manufacturing, fabricating, 168.3mining, or refining. Capital equipment also includes machinery and equipment 168.4used primarily to electronically transmit results retrieved by a customer of an online 168.5computerized data retrieval system. 168.6(b) Capital equipment includes, but is not limited to: 168.7(1) machinery and equipment used to operate, control, or regulate the production 168.8equipment; 168.9(2) machinery and equipment used for research and development, design, quality 168.10control, and testing activities; 168.11(3) environmental control devices that are used to maintain conditions such as 168.12temperature, humidity, light, or air pressure when those conditions are essential to and are 168.13part of the production process; 168.14(4) materials and supplies used to construct and install machinery or equipment; 168.15(5) repair and replacement parts, including accessories, whether purchased as spare 168.16parts, repair parts, or as upgrades or modifications to machinery or equipment; 168.17(6) materials used for foundations that support machinery or equipment; 168.18(7) materials used to construct and install special purpose buildings used in the 168.19production process; 168.20(8) ready-mixed concrete equipment in which the ready-mixed concrete is mixed 168.21as part of the delivery process regardless if mounted on a chassis, repair parts for 168.22ready-mixed concrete trucks, and leases of ready-mixed concrete trucks; and 168.23(9) machinery or equipment used for research, development, design, or production 168.24of computer software. 168.25(c) Capital equipment does not include the following: 168.26(1) motor vehicles taxed under chapter 297B; 168.27(2) machinery or equipment used to receive or store raw materials; 168.28(3) building materials, except for materials included in paragraph (b), clauses (6) 168.29and (7); 168.30(4) machinery or equipment used for nonproduction purposes, including, but not 168.31limited to, the following: plant security, fire prevention, first aid, and hospital stations; 168.32support operations or administration; pollution control; and plant cleaning, disposal of 168.33scrap and waste, plant communications, space heating, cooling, lighting, or safety; 168.34(5) farm machinery and aquaculture production equipment as defined by section 168.35297A.61 , subdivisions 12 and 13; 169.1(6) machinery or equipment purchased and installed by a contractor as part of an 169.2improvement to real property; 169.3(7) machinery and equipment used by restaurants in the furnishing, preparing, or 169.4serving of prepared foods as defined in section 297A.61, subdivision 31; 169.5(8) machinery and equipment used to furnish the services listed in section 297A.61, 169.6subdivision 3 , paragraph (g), clause (6), items (i) to (vi) and (viii); 169.7(9) machinery or equipment used in the transportation, transmission, or distribution 169.8of petroleum, liquefied gas, natural gas, water, or steam, in, by, or through pipes, lines, 169.9tanks, mains, or other means of transporting those products. This clause does not apply to 169.10machinery or equipment used to blend petroleum or biodiesel fuel as defined in section 169.11239.77 ; or 169.12(10) any other item that is not essential to the integrated process of manufacturing, 169.13fabricating, mining, or refining. 169.14(d) For purposes of this subdivision: 169.15(1) "Equipment" means independent devices or tools separate from machinery but 169.16essential to an integrated production process, including computers and computer software, 169.17used in operating, controlling, or regulating machinery and equipment; and any subunit or 169.18assembly comprising a component of any machinery or accessory or attachment parts of 169.19machinery, such as tools, dies, jigs, patterns, and molds. 169.20(2) "Fabricating" means to make, build, create, produce, or assemble components or 169.21property to work in a new or different manner. 169.22(3) "Integrated production process" means a process or series of operations through 169.23which tangible personal property is manufactured, fabricated, mined, or refined. For 169.24purposes of this clause, (i) manufacturing begins with the removal of raw materials 169.25from inventory and ends when the last process prior to loading for shipment has been 169.26completed; (ii) fabricating begins with the removal from storage or inventory of the 169.27property to be assembled, processed, altered, or modified and ends with the creation 169.28or production of the new or changed product; (iii) mining begins with the removal of 169.29overburden from the site of the ores, minerals, stone, peat deposit, or surface materials and 169.30ends when the last process before stockpiling is completed; and (iv) refining begins with 169.31the removal from inventory or storage of a natural resource and ends with the conversion 169.32of the item to its completed form. 169.33(4) "Machinery" means mechanical, electronic, or electrical devices, including 169.34computers and computer software, that are purchased or constructed to be used for the 169.35activities set forth in paragraph (a), beginning with the removal of raw materials from 169.36inventory through completion of the product, including packaging of the product. 170.1(5) "Machinery and equipment used for pollution control" means machinery and 170.2equipment used solely to eliminate, prevent, or reduce pollution resulting from an activity 170.3described in paragraph (a). 170.4(6) "Manufacturing" means an operation or series of operations where raw materials 170.5are changed in form, composition, or condition by machinery and equipment and which 170.6results in the production of a new article of tangible personal property. For purposes of 170.7this subdivision, "manufacturing" includes the generation of electricity or steam to be 170.8sold at retail. 170.9(7) "Mining" means the extraction of minerals, ores, stone, or peat. 170.10(8) "Online data retrieval system" means a system whose cumulation of information 170.11is equally available and accessible to all its customers. 170.12(9) "Primarily" means machinery and equipment used 50 percent or more of the time 170.13in an activity described in paragraph (a). 170.14(10) "Refining" means the process of converting a natural resource to an intermediate 170.15or finished product, including the treatment of water to be sold at retail. 170.16(11) This subdivision does not apply to telecommunications equipment as 170.17provided in subdivision 35, and does not apply to wire, cable, fiber, poles, or conduit 170.18for telecommunications services. 170.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 170.20 new text begin August 31, 2014. new text end 170.21    Sec. 27. Minnesota Statutes 2012, section 297A.68, subdivision 42, is amended to read: 170.22    Subd. 42. Qualified data centers. (a) Purchases of enterprise information 170.23technology equipment and computer software for use in a qualified data center new text begin , or a new text end 170.24 new text begin qualified refurbished data center, new text end are exempt. The tax on purchases exempt under this 170.25paragraph must be imposed and collected as if the rate under section 297A.62, subdivision 170.261 , applied, and then refunded after June 30, 2013, in the manner provided in section 170.27297A.75 . This exemption includes enterprise information technology equipment and 170.28computer software purchased to replace or upgrade enterprise information technology 170.29equipment and computer software in a qualified data center new text begin , or a qualified refurbished new text end 170.30 new text begin data center new text end . 170.31(b) Electricity used or consumed in the operation of a qualified data center is exempt. 170.32(c) For purposes of this subdivision, "qualified data center new text begin , or a qualified refurbished new text end 170.33 new text begin data center, new text end " means a facility in Minnesota: 170.34(1) that is comprised of one or more buildings that consist in the aggregate of at least 170.3530,000 new text begin 25,000 new text end square feet, and that are located on a single parcel or on contiguous parcels, 171.1where the total cost of construction or refurbishment, investment in enterprise information 171.2technology equipment, and computer software is at least $50,000,000 new text begin $30,000,000 new text end within 171.3a 24 new text begin 48 new text end -month period; 171.4(2) that is constructed or substantially refurbished after June 30, 2012, where 171.5"substantially refurbished" means that at least 30,000 new text begin 25,000 new text end square feet have been rebuilt 171.6or modified; and new text begin , including: new text end 171.7 new text begin (i) installation of enterprise information technology equipment, environmental new text end 171.8 new text begin control, computer software, and energy efficiency improvements; and new text end 171.9 new text begin (ii) building improvements; and new text end 171.10(3) that is used to house enterprise information technology equipment, where the 171.11facility has the following characteristics: 171.12(i) uninterruptible power supplies, generator backup power, or both; 171.13(ii) sophisticated fire suppression and prevention systems; and 171.14(iii) enhanced security. A facility will be considered to have enhanced security if it 171.15has restricted access to the facility to selected personnel; permanent security guards; video 171.16camera surveillance; an electronic system requiring pass codes, keycards, or biometric 171.17scans, such as hand scans and retinal or fingerprint recognition; or similar security features. 171.18In determining whether the facility has the required square footage, the square 171.19footage of the following spaces shall be included if the spaces support the operation 171.20of enterprise information technology equipment: office space, meeting space, and 171.21mechanical and other support facilities. new text begin For purposes of this subdivision, "computer new text end 171.22 new text begin software" includes, but is not limited to, software utilized or loaded at the qualified data new text end 171.23 new text begin center, including maintenance, licensing, and software customization. new text end 171.24 new text begin (d) For purposes of this subdivision, a "qualified refurbished data center" means an new text end 171.25 new text begin existing facility that qualifies as a data center under paragraph (c), clauses (2) and (3), but new text end 171.26 new text begin that is comprised of one or more buildings that consist in the aggregate of at least 25,000 new text end 171.27 new text begin square feet, and that are located on a single parcel or contiguous parcels, where the total new text end 171.28 new text begin cost of construction or refurbishment, investment in enterprise information technology new text end 171.29 new text begin equipment, and computer software is at least $50,000,000 within a 24-month period. new text end 171.30(d) new text begin (e) new text end For purposes of this subdivision, "enterprise information technology 171.31equipment" means computers and equipment supporting computing, networking, or data 171.32storage, including servers and routers. It includes, but is not limited to: cooling systems, 171.33cooling towers, and other temperature control infrastructure; power infrastructure for 171.34transformation, distribution, or management of electricity used for the maintenance 171.35and operation of a qualified data center, including but not limited to exterior dedicated 171.36business-owned substations, backup power generation systems, battery systems, and 172.1related infrastructure; and racking systems, cabling, and trays, which are necessary for 172.2the maintenance and operation of the qualified data center. 172.3(e) new text begin (f) new text end A qualified data center may claim the exemptions in this subdivision for 172.4purchases made either within 20 years of the date of its first purchase qualifying for the 172.5exemption under paragraph (a), or by June 30, 2042, whichever is earlier. 172.6(f) new text begin (g) new text end The purpose of this exemption is to create jobs in the construction and data 172.7center industries. 172.8(g) new text begin (h) new text end This subdivision is effective for sales and purchases made after June 30, 172.92012, and before July 1, 2042. 172.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 172.11 new text begin June 30, 2013. new text end 172.12    Sec. 28. Minnesota Statutes 2012, section 297A.68, is amended by adding a 172.13subdivision to read: 172.14     new text begin Subd. 49. new text end new text begin Greater Minnesota business expansions. new text end new text begin (a) Purchases and use of new text end 172.15 new text begin tangible personal property or taxable services by a qualified business, as defined in section new text end 172.16 new text begin 116J.3738, are exempt if: new text end 172.17 new text begin (1) the business subsidy agreement provides that the exemption under this new text end 172.18 new text begin subdivision applies; new text end 172.19 new text begin (2) the property or services are primarily used or consumed in greater Minnesota; and new text end 172.20 new text begin (3) the purchase was made and delivery received during the duration of the new text end 172.21 new text begin certification of the business as a qualified business under section 116J.3738. new text end 172.22 new text begin (b) Purchase and use of construction materials and supplies used or consumed in, new text end 172.23 new text begin and equipment incorporated into, the construction of improvements to real property in new text end 172.24 new text begin greater Minnesota are exempt if the improvements after completion of construction are new text end 172.25 new text begin to be used in the conduct of the trade or business of the qualified business, as defined in new text end 172.26 new text begin section 116J.3738. This exemption applies regardless of whether the purchases are made new text end 172.27 new text begin by the business or a contractor. new text end 172.28 new text begin (c) The exemptions under this subdivision apply to a local sales and use tax. new text end 172.29 new text begin (d) The tax on purchases imposed under this subdivision must be imposed and new text end 172.30 new text begin collected as if the rate under section 297A.62 applied, and then refunded in the manner new text end 172.31 new text begin provided in section 297A.75. No more than $7,000,000 may be refunded in a fiscal year new text end 172.32 new text begin for all purchases under this subdivision. Refunds must be allocated on a first come, first new text end 172.33 new text begin served basis. If more than $7,000,000 of eligible claims are made in a fiscal year, claims new text end 172.34 new text begin by qualified businesses carryover to the next fiscal year, and the commissioner must first new text end 172.35 new text begin allocate refunds to qualified businesses eligible for a refund in the preceding fiscal year. new text end 173.1 new text begin Any portion of the balance of funds allocated for refunds under this paragraph does not new text end 173.2 new text begin cancel and shall be carried forward to and available for refunds in subsequent fiscal years. new text end 173.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 173.4 new text begin June 30, 2014. new text end 173.5    Sec. 29. Minnesota Statutes 2012, section 297A.70, subdivision 2, is amended to read: 173.6    Subd. 2. Sales to government. (a) All sales, except those listed in paragraph (b), 173.7to the following governments and political subdivisions, or to the listed agencies or 173.8instrumentalities of governments and political subdivisions, are exempt: 173.9(1) the United States and its agencies and instrumentalities; 173.10(2) school districts, new text begin local governments, new text end the University of Minnesota, state universities, 173.11community colleges, technical colleges, state academies, the Perpich Minnesota Center for 173.12Arts Education, and an instrumentality of a political subdivision that is accredited as an 173.13optional/special function school by the North Central Association of Colleges and Schools; 173.14(3) hospitals and nursing homes owned and operated by political subdivisions of 173.15the state of tangible personal property and taxable services used at or by hospitals and 173.16nursing homes; 173.17(4) the Metropolitan Council, for its purchases of vehicles and repair parts to equip 173.18operations provided for in section 473.4051; 173.19(5) other states or political subdivisions of other states, if the sale would be exempt 173.20from taxation if it occurred in that state; new text begin and new text end 173.21(6) public libraries, public library systems, multicounty, multitype library systems as 173.22defined in section 134.001, county law libraries under chapter 134A, state agency libraries, 173.23the state library under section 480.09, and the Legislative Reference Library; and new text begin . new text end 173.24(7) towns. 173.25(b) This exemption does not apply to the sales of the following products and services: 173.26(1) building, construction, or reconstruction materials purchased by a contractor 173.27or a subcontractor as a part of a lump-sum contract or similar type of contract with a 173.28guaranteed maximum price covering both labor and materials for use in the construction, 173.29alteration, or repair of a building or facility; 173.30(2) construction materials purchased by tax exempt entities or their contractors to 173.31be used in constructing buildings or facilities which will not be used principally by the 173.32tax exempt entities; 173.33(3) the leasing of a motor vehicle as defined in section 297B.01, subdivision 11, 173.34except for leases entered into by the United States or its agencies or instrumentalities; 174.1(4) lodging as defined under section 297A.61, subdivision 3, paragraph (g), clause 174.2(2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in section 174.3297A.67, subdivision 2 , except for lodging, prepared food, candy, soft drinks, and alcoholic 174.4beverages purchased directly by the United States or its agencies or instrumentalities; or 174.5(5) goods or services purchased by a town new text begin local government new text end as inputs to goods and 174.6services that are generally provided by a private business and the purchases would be 174.7taxable if made by a private business engaged in the same activity. 174.8(c) As used in this subdivision, "school districts" means public school entities and 174.9districts of every kind and nature organized under the laws of the state of Minnesota, and 174.10any instrumentality of a school district, as defined in section 471.59. 174.11 new text begin (d) As used in this subdivision, "local governments" means cities, counties, and new text end 174.12 new text begin townships. new text end 174.13(d) new text begin (e) new text end As used in this subdivision, "goods or services generally provided by a private 174.14business" include, but are not limited to, goods or services provided by liquor stores, gas 174.15and electric utilities, golf courses, marinas, health and fitness centers, campgrounds, cafes, 174.16and laundromats. "Goods or services generally provided by a private business" do not 174.17include housing services, sewer and water services, wastewater treatment, ambulance and 174.18other public safety services, correctional services, chore or homemaking services provided 174.19to elderly or disabled individuals, or road and street maintenance or lighting. 174.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 174.21 new text begin December 31, 2013. new text end 174.22    Sec. 30. Minnesota Statutes 2012, section 297A.70, subdivision 4, is amended to read: 174.23    Subd. 4. Sales to nonprofit groups. (a) All sales, except those listed in paragraph 174.24(b), to the following "nonprofit organizations" are exempt: 174.25(1) a corporation, society, association, foundation, or institution organized and 174.26operated exclusively for charitable, religious, or educational purposes if the item 174.27purchased is used in the performance of charitable, religious, or educational functions; and 174.28(2) any senior citizen group or association of groups that: 174.29(i) in general limits membership to persons who are either age 55 or older, or 174.30physically disabled; 174.31(ii) is organized and operated exclusively for pleasure, recreation, and other 174.32nonprofit purposes, not including housing, no part of the net earnings of which inures to 174.33the benefit of any private shareholders; and 174.34(iii) is an exempt organization under section 501(c) of the Internal Revenue Code. 175.1For purposes of this subdivision, charitable purpose includes the maintenance of a 175.2cemetery owned by a religious organization. 175.3(b) This exemption does not apply to the following sales: 175.4(1) building, construction, or reconstruction materials purchased by a contractor 175.5or a subcontractor as a part of a lump-sum contract or similar type of contract with a 175.6guaranteed maximum price covering both labor and materials for use in the construction, 175.7alteration, or repair of a building or facility; 175.8(2) construction materials purchased by tax-exempt entities or their contractors to 175.9be used in constructing buildings or facilities that will not be used principally by the 175.10tax-exempt entities; and 175.11(3) lodging as defined under section 297A.61, subdivision 3, paragraph (g), clause 175.12(2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in section 175.13297A.67, subdivision 2 , except wine purchased by an established religious organization 175.14for sacramental purposes new text begin or as allowed under subdivision 9a new text end ; and 175.15(4) leasing of a motor vehicle as defined in section 297B.01, subdivision 11, except 175.16as provided in paragraph (c). 175.17(c) This exemption applies to the leasing of a motor vehicle as defined in section 175.18297B.01, subdivision 11 , only if the vehicle is: 175.19(1) a truck, as defined in section 168.002, a bus, as defined in section 168.002, or a 175.20passenger automobile, as defined in section 168.002, if the automobile is designed and 175.21used for carrying more than nine persons including the driver; and 175.22(2) intended to be used primarily to transport tangible personal property or 175.23individuals, other than employees, to whom the organization provides service in 175.24performing its charitable, religious, or educational purpose. 175.25(d) A limited liability company also qualifies for exemption under this subdivision if 175.26(1) it consists of a sole member that would qualify for the exemption, and (2) the items 175.27purchased qualify for the exemption. 175.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively for sales and purchases new text end 175.29 new text begin made after June 30, 2012. new text end 175.30    Sec. 31. Minnesota Statutes 2012, section 297A.70, subdivision 5, is amended to read: 175.31    Subd. 5. Veterans groups. Sales to an organization of military service veterans or 175.32an auxiliary unit of an organization of military service veterans are exempt if: 175.33(1) the organization or auxiliary unit is organized within the state of Minnesota 175.34and is exempt from federal taxation under section 501(c), clause (19), of the Internal 175.35Revenue Code; and 176.1(2) the tangible personal property is new text begin or services are new text end for charitable, civic, educational, 176.2or nonprofit uses and not for social, recreational, pleasure, or profit uses. 176.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 176.4 new text begin June 30, 2013. new text end 176.5    Sec. 32. Minnesota Statutes 2012, section 297A.70, subdivision 7, is amended to read: 176.6    Subd. 7. Hospitals and new text begin , new text end outpatient surgical centers new text begin , and critical access dental new text end 176.7 new text begin providers new text end . (a) Sales, except for those listed in paragraph (c) new text begin (d) new text end , to a hospital are exempt, 176.8if the items purchased are used in providing hospital services. For purposes of this 176.9subdivision, "hospital" means a hospital organized and operated for charitable purposes 176.10within the meaning of section 501(c)(3) of the Internal Revenue Code, and licensed under 176.11chapter 144 or by any other jurisdiction, and "hospital services" are services authorized or 176.12required to be performed by a "hospital" under chapter 144. 176.13    (b) Sales, except for those listed in paragraph (c) new text begin (d) new text end , to an outpatient surgical center 176.14are exempt, if the items purchased are used in providing outpatient surgical services. For 176.15purposes of this subdivision, "outpatient surgical center" means an outpatient surgical 176.16center organized and operated for charitable purposes within the meaning of section 176.17501(c)(3) of the Internal Revenue Code, and licensed under chapter 144 or by any other 176.18jurisdiction. For the purposes of this subdivision, "outpatient surgical services" means: 176.19(1) services authorized or required to be performed by an outpatient surgical center under 176.20chapter 144; and (2) urgent care. For purposes of this subdivision, "urgent care" means 176.21health services furnished to a person whose medical condition is sufficiently acute to 176.22require treatment unavailable through, or inappropriate to be provided by, a clinic or 176.23physician's office, but not so acute as to require treatment in a hospital emergency room. 176.24    (c) new text begin Sales, except for those listed in paragraph (d), to a critical access dental provider new text end 176.25 new text begin are exempt, if the items purchased are used in providing critical access dental care new text end 176.26 new text begin services. For the purposes of this subdivision, "critical access dental provider" means a new text end 176.27 new text begin dentist or dental clinic that qualifies under section 256B.76, subdivision 4, paragraph (b) new text end 176.28 new text begin and, in the previous calendar year, had no more than 15 percent of its patients covered by new text end 176.29 new text begin private dental insurance. new text end 176.30     new text begin (d) new text end This exemption does not apply to the following products and services: 176.31    (1) purchases made by a clinic, physician's office, or any other medical facility not 176.32operating as a hospital or new text begin , new text end outpatient surgical center, new text begin or critical access dental provider, new text end 176.33even though the clinic, office, or facility may be owned and operated by a hospital or new text begin , new text end 176.34 outpatient surgical center new text begin , or critical access dental provider new text end ; 177.1    (2) sales under section 297A.61, subdivision 3, paragraph (g), clause (2), and 177.2prepared food, candy, and soft drinks; 177.3    (3) building and construction materials used in constructing buildings or facilities 177.4that will not be used principally by the hospital or new text begin , new text end outpatient surgical center new text begin , or critical new text end 177.5 new text begin access dental provider new text end ; 177.6    (4) building, construction, or reconstruction materials purchased by a contractor or a 177.7subcontractor as a part of a lump-sum contract or similar type of contract with a guaranteed 177.8maximum price covering both labor and materials for use in the construction, alteration, or 177.9repair of a hospital or new text begin , new text end outpatient surgical center new text begin , or critical access dental provider new text end ; or 177.10    (5) the leasing of a motor vehicle as defined in section 297B.01, subdivision 11. 177.11    (d) new text begin (e) new text end A limited liability company also qualifies for exemption under this 177.12subdivision if (1) it consists of a sole member that would qualify for the exemption, and 177.13(2) the items purchased qualify for the exemption. 177.14    (e) new text begin (f) new text end An entity that contains both a hospital and a nonprofit unit may claim this 177.15exemption on purchases made for both the hospital and nonprofit unit provided that: 177.16    (1) the nonprofit unit would have qualified for exemption under subdivision 4; and 177.17    (2) the items purchased would have qualified for the exemption. 177.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively for sales and purchases new text end 177.19 new text begin made after June 30, 2007. Purchasers may apply for a refund of tax paid for qualifying new text end 177.20 new text begin purchases under this subdivision made after June 30, 2007, and before July 1, 2013, in the new text end 177.21 new text begin manner provided in Minnesota Statutes, section 297A.75. Notwithstanding limitations new text end 177.22 new text begin on claims for refunds under Minnesota Statutes, section 297A.40, claims may be filed new text end 177.23 new text begin with the commissioner until June 30, 2014. new text end 177.24    Sec. 33. Minnesota Statutes 2012, section 297A.70, is amended by adding a 177.25subdivision to read: 177.26     new text begin Subd. 9a. new text end new text begin Established religious orders. new text end new text begin (a) Sales of lodging, prepared food, candy, new text end 177.27 new text begin soft drinks, and alcoholic beverages at noncatered events between an established religious new text end 177.28 new text begin order and an affiliated institution of higher education are exempt. new text end 177.29 new text begin (b) For purposes of this subdivision, "established religious order" means an new text end 177.30 new text begin organization directly or indirectly under the control or supervision of a church or new text end 177.31 new text begin convention or association of churches, where members of the organization: new text end 177.32 new text begin (1) normally live together as part of a community; new text end 177.33 new text begin (2) make long-term commitments to live under a strict set of moral and spiritual new text end 177.34 new text begin rules; and new text end 178.1 new text begin (3) work or engage full time in a combination of prayer, religious study, church new text end 178.2 new text begin reform or renewal, or other religious, educational, or charitable goals of the organization. new text end 178.3 new text begin (c) For purposes of this subdivision, an institution of higher education is "affiliated" new text end 178.4 new text begin with an established religious order if members of the religious order are represented new text end 178.5 new text begin on the governing board of the institution of higher education and the two organization new text end 178.6 new text begin share campus space and common facilities. new text end 178.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively for sales and purchases new text end 178.8 new text begin made after June 30, 2012. new text end 178.9    Sec. 34. Minnesota Statutes 2012, section 297A.70, subdivision 13, is amended to read: 178.10    Subd. 13. Fund-raising sales by or for nonprofit groups. (a) The following 178.11sales by the specified organizations for fund-raising purposes are exempt, subject to the 178.12limitations listed in paragraph (b): 178.13(1) all sales made by a nonprofit organization that exists solely for the purpose of 178.14providing educational or social activities for young people primarily age 18 and under; 178.15(2) all sales made by an organization that is a senior citizen group or association of 178.16groups if (i) in general it limits membership to persons age 55 or older; (ii) it is organized 178.17and operated exclusively for pleasure, recreation, and other nonprofit purposes; and (iii) 178.18no part of its net earnings inures to the benefit of any private shareholders; 178.19(3) the sale or use of tickets or admissions to a golf tournament held in Minnesota if 178.20the beneficiary of the tournament's net proceeds qualifies as a tax-exempt organization 178.21under section 501(c)(3) of the Internal Revenue Code; and 178.22(4) sales of candy sold for fund-raising purposes by a nonprofit organization that 178.23provides educational and social activities primarily for young people age 18 and under. 178.24(b) The exemptions listed in paragraph (a) are limited in the following manner: 178.25(1) the exemption under paragraph (a), clauses (1) and (2), applies only if the gross 178.26annual receipts of the organization from fund-raising do not exceed $10,000; and 178.27(2) the exemption under paragraph (a), clause (1), does not apply if the sales are 178.28derived from admission charges or from activities for which the money must be deposited 178.29with the school district treasurer under section 123B.49, subdivision 2, or be recorded in 178.30the same manner as other revenues or expenditures of the school district under section 178.31123B.49, subdivision 4 . 178.32(c) Sales of tangible personal property new text begin and services new text end are exempt if the entire proceeds, 178.33less the necessary expenses for obtaining the property new text begin or services new text end , will be contributed to 178.34a registered combined charitable organization described in section 43A.50, to be used 178.35exclusively for charitable, religious, or educational purposes, and the registered combined 179.1charitable organization has given its written permission for the sale. Sales that occur over 179.2a period of more than 24 days per year are not exempt under this paragraph. 179.3(d) For purposes of this subdivision, a club, association, or other organization of 179.4elementary or secondary school students organized for the purpose of carrying on sports, 179.5educational, or other extracurricular activities is a separate organization from the school 179.6district or school for purposes of applying the $10,000 limit. 179.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 179.8 new text begin June 30, 2013. new text end 179.9    Sec. 35. Minnesota Statutes 2012, section 297A.70, subdivision 14, is amended to read: 179.10    Subd. 14. Fund-raising events sponsored by nonprofit groups. (a) Sales of 179.11tangible personal property new text begin or services new text end at, and admission charges for fund-raising events 179.12sponsored by, a nonprofit organization are exempt if: 179.13(1) all gross receipts are recorded as such, in accordance with generally accepted 179.14accounting practices, on the books of the nonprofit organization; and 179.15(2) the entire proceeds, less the necessary expenses for the event, will be used solely 179.16and exclusively for charitable, religious, or educational purposes. Exempt sales include 179.17the sale of prepared food, candy, and soft drinks at the fund-raising event. 179.18(b) This exemption is limited in the following manner: 179.19(1) it does not apply to admission charges for events involving bingo or other 179.20gambling activities or to charges for use of amusement devices involving bingo or other 179.21gambling activities; 179.22(2) all gross receipts are taxable if the profits are not used solely and exclusively for 179.23charitable, religious, or educational purposes; 179.24(3) it does not apply unless the organization keeps a separate accounting record, 179.25including receipts and disbursements from each fund-raising event that documents all 179.26deductions from gross receipts with receipts and other records; 179.27(4) it does not apply to any sale made by or in the name of a nonprofit corporation as 179.28the active or passive agent of a person that is not a nonprofit corporation; 179.29(5) all gross receipts are taxable if fund-raising events exceed 24 days per year; 179.30(6) it does not apply to fund-raising events conducted on premises leased for more 179.31than five days but less than 30 days; and 179.32(7) it does not apply if the risk of the event is not borne by the nonprofit organization 179.33and the benefit to the nonprofit organization is less than the total amount of the state and 179.34local tax revenues forgone by this exemption. 180.1(c) For purposes of this subdivision, a "nonprofit organization" means any unit of 180.2government, corporation, society, association, foundation, or institution organized and 180.3operated for charitable, religious, educational, civic, fraternal, and senior citizens' or 180.4veterans' purposes, no part of the net earnings of which inures to the benefit of a private 180.5individual. 180.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 180.7 new text begin June 30, 2013. new text end 180.8    Sec. 36. Minnesota Statutes 2012, section 297A.70, is amended by adding a 180.9subdivision to read: 180.10     new text begin Subd. 18. new text end new text begin Nursing homes and boarding care homes. new text end new text begin (a) All sales, except those new text end 180.11 new text begin listed in paragraph (b), to a nursing home licensed under section 144A.02 or a boarding new text end 180.12 new text begin care home certified as a nursing facility under title 19 of the Social Security Act are new text end 180.13 new text begin exempt if the facility: new text end 180.14 new text begin (1) is exempt from federal income taxation pursuant to section 501(c)(3) of the new text end 180.15 new text begin Internal Revenue Code; and new text end 180.16 new text begin (2) is certified to participate in the medical assistance program under title 19 of the new text end 180.17 new text begin Social Security Act, or certifies to the commissioner that it does not discharge residents new text end 180.18 new text begin due to the inability to pay. new text end 180.19 new text begin (b) This exemption does not apply to the following sales: new text end 180.20 new text begin (1) building, construction, or reconstruction materials purchased by a contractor new text end 180.21 new text begin or a subcontractor as a part of a lump-sum contract or similar type of contract with a new text end 180.22 new text begin guaranteed maximum price covering both labor and materials for use in the construction, new text end 180.23 new text begin alteration, or repair of a building or facility; new text end 180.24 new text begin (2) construction materials purchased by tax-exempt entities or their contractors to new text end 180.25 new text begin be used in constructing buildings or facilities that will not be used principally by the new text end 180.26 new text begin tax-exempt entities; new text end 180.27 new text begin (3) lodging as defined under section new text end new text begin 297A.61, subdivision 3 new text end new text begin , paragraph (g), clause new text end 180.28 new text begin (2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in section new text end 180.29 new text begin 297A.67, subdivision 2 new text end new text begin ; and new text end 180.30 new text begin (4) leasing of a motor vehicle as defined in section new text end new text begin 297B.01, subdivision 11 new text end new text begin , except new text end 180.31 new text begin as provided in paragraph (c). new text end 180.32 new text begin (c) This exemption applies to the leasing of a motor vehicle as defined in section new text end 180.33 new text begin 297B.01, subdivision 11 new text end new text begin , only if the vehicle is: new text end 181.1 new text begin (1) a truck, as defined in section new text end new text begin ; a bus, as defined in section new text end new text begin ; or a new text end 181.2 new text begin passenger automobile, as defined in section new text end new text begin , if the automobile is designed and new text end 181.3 new text begin used for carrying more than nine persons including the driver; and new text end 181.4 new text begin (2) intended to be used primarily to transport tangible personal property or residents new text end 181.5 new text begin of the nursing home or boarding care home. new text end 181.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 181.7 new text begin June 30, 2013. new text end 181.8    Sec. 37. Minnesota Statutes 2012, section 297A.71, is amended by adding a 181.9subdivision to read: 181.10     new text begin Subd. 45. new text end new text begin Biopharmaceutical manufacturing facility. new text end new text begin (a) Materials and new text end 181.11 new text begin supplies used or consumed in, capital equipment incorporated into, and privately new text end 181.12 new text begin owned infrastructure in support of the construction, improvement, or expansion of a new text end 181.13 new text begin biopharmaceutical manufacturing facility in the state are exempt if the following criteria new text end 181.14 new text begin are met: new text end 181.15 new text begin (1) the facility is used for the manufacturing of biologics; new text end 181.16 new text begin (2) the total capital investment made at the facility exceeds $50,000,000; and new text end 181.17 new text begin (3) the facility creates and maintains at least 190 full-time equivalent positions at the new text end 181.18 new text begin facility. These positions must be new jobs in Minnesota and not the result of relocating new text end 181.19 new text begin jobs that currently exist in Minnesota. new text end 181.20 new text begin (b) The tax must be imposed and collected as if the rate under section 297A.62 new text end 181.21 new text begin applied, and refunded in the manner provided in section 297A.75. new text end 181.22 new text begin (c) To be eligible for a refund, the owner of the biopharmaceutical manufacturing new text end 181.23 new text begin facility must: new text end 181.24 new text begin (1) initially apply to the Department of Employment and Economic Development new text end 181.25 new text begin for certification no later than one year from the final completion date of construction, new text end 181.26 new text begin improvement, or expansion of the facility; and new text end 181.27 new text begin (2) for each year that the owner of the biopharmaceutical manufacturing facility new text end 181.28 new text begin applies for a refund, the owner must have received written certification from the new text end 181.29 new text begin Department of Employment and Economic Development that the facility has met the new text end 181.30 new text begin criteria of paragraph (a). new text end 181.31 new text begin (d) The refund is to be paid annually at a rate of 25 percent of the total allowable new text end 181.32 new text begin refund payable to date, with the commissioner making annual payments of the remaining new text end 181.33 new text begin refund until all of the refund has been paid. new text end 181.34 new text begin (e) For purposes of this subdivision, "biopharmaceutical" and "biologics" are new text end 181.35 new text begin interchangeable and mean medical drugs or medicinal preparations produced using new text end 182.1 new text begin technology that uses biological systems, living organisms or derivatives of living new text end 182.2 new text begin organisms, to make or modify products or processes for specific use. The medical drugs or new text end 182.3 new text begin medicinal preparations include but are not limited to proteins, antibodies, nucleic acids, new text end 182.4 new text begin and vaccines. new text end 182.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively to capital investments new text end 182.6 new text begin made and jobs created after December 31, 2012, and effective retroactively for sales and new text end 182.7 new text begin purchases made after December 31, 2012, and before July 1, 2019. new text end 182.8    Sec. 38. Minnesota Statutes 2012, section 297A.71, is amended by adding a 182.9subdivision to read: 182.10     new text begin Subd. 46. new text end new text begin Research and development facility. new text end new text begin Materials and supplies used or new text end 182.11 new text begin consumed in, and equipment incorporated into, the construction or improvement of a new text end 182.12 new text begin research and development facility that has laboratory space of at least 400,000 square feet new text end 182.13 new text begin and utilizes both high-intensity and low-intensity laboratories, provided that the project new text end 182.14 new text begin has a total construction cost of at least $140,000,000 within a 24-month period. The tax on new text end 182.15 new text begin purchases imposed under this subdivision must be imposed and collected as if the rate under new text end 182.16 new text begin section 297A.62 applied and then refunded in the manner provided in section 297A.75. new text end 182.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 182.18 new text begin June 30, 2013, and before September 1, 2015. new text end 182.19    Sec. 39. Minnesota Statutes 2012, section 297A.71, is amended by adding a 182.20subdivision to read: 182.21     new text begin Subd. 47. new text end new text begin Industrial measurement manufacturing and controls facility. new text end new text begin (a) new text end 182.22 new text begin Materials and supplies used or consumed in, capital equipment incorporated into, new text end 182.23 new text begin fixtures installed in, and privately owned infrastructure in support of the construction, new text end 182.24 new text begin improvement, or expansion of an industrial measurement manufacturing and controls new text end 182.25 new text begin facility are exempt if: new text end 182.26 new text begin (1) the total capital investment made at the facility is at least $60,000,000; new text end 182.27 new text begin (2) the facility employs at least 250 full-time equivalent employees that are not new text end 182.28 new text begin employees currently employed by the company in the state; and new text end 182.29 new text begin (3) the Department of Employment and Economic Development determines that new text end 182.30 new text begin the expansion, remodeling, or improvement of the facility has a significant impact on new text end 182.31 new text begin the state economy. new text end 183.1 new text begin (b) The tax must be imposed and collected as if the rate under section 297A.62 new text end 183.2 new text begin applied and refunded in the manner provided in section 297A.75, only after the following new text end 183.3 new text begin criteria are met: new text end 183.4 new text begin (1) a refund may not be issued until the owner of the facility has received new text end 183.5 new text begin certification from the Department of Employment and Economic Development that the new text end 183.6 new text begin company meets the requirements in paragraph (a); and new text end 183.7 new text begin (2) to receive the refund, the owner of the industrial measurement manufacturing new text end 183.8 new text begin and controls facility must initially apply to the Department of Employment and Economic new text end 183.9 new text begin Development for certification no later than one year from the final completion date of new text end 183.10 new text begin construction, improvement, or expansion of the industrial measurement manufacturing new text end 183.11 new text begin and controls facility. new text end 183.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 183.13 new text begin June 30, 2013, and before December 31, 2015. new text end 183.14    Sec. 40. Minnesota Statutes 2012, section 297A.75, subdivision 1, is amended to read: 183.15    Subdivision 1. Tax collected. The tax on the gross receipts from the sale of the 183.16following exempt items must be imposed and collected as if the sale were taxable and the 183.17rate under section 297A.62, subdivision 1, applied. The exempt items include: 183.18    (1) capital equipment exempt under section 297A.68, subdivision 5; 183.19    (2) new text begin (1) new text end building materials for an agricultural processing facility exempt under section 183.20297A.71, subdivision 13 ; 183.21    (3) new text begin (2) new text end building materials for mineral production facilities exempt under section 183.22297A.71, subdivision 14 ; 183.23    (4) new text begin (3) new text end building materials for correctional facilities under section 297A.71, 183.24subdivision 3 ; 183.25    (5) new text begin (4) new text end building materials used in a residence for disabled veterans exempt under 183.26section 297A.71, subdivision 11; 183.27    (6) new text begin (5) new text end elevators and building materials exempt under section 297A.71, subdivision 183.2812 ; 183.29    (7) new text begin (6) new text end building materials for the Long Lake Conservation Center exempt under 183.30section 297A.71, subdivision 17; 183.31    (8) new text begin (7) new text end materials and supplies for qualified low-income housing under section 183.32297A.71, subdivision 23 ; 183.33    (9) new text begin (8) new text end materials, supplies, and equipment for municipal electric utility facilities 183.34under section 297A.71, subdivision 35; 184.1    (10) new text begin (9) new text end equipment and materials used for the generation, transmission, and 184.2distribution of electrical energy and an aerial camera package exempt under section 184.3297A.68 , subdivision 37; 184.4    (11) new text begin (10) new text end commuter rail vehicle and repair parts under section 297A.70, subdivision 184.53, paragraph (a), clause (10); 184.6    (12) new text begin (11) new text end materials, supplies, and equipment for construction or improvement of 184.7projects and facilities under section 297A.71, subdivision 40; 184.8(13) new text begin (12) new text end materials, supplies, and equipment for construction or improvement of a 184.9meat processing facility exempt under section 297A.71, subdivision 41; 184.10(14) new text begin (13) new text end materials, supplies, and equipment for construction, improvement, or 184.11expansion of new text begin : new text end 184.12 new text begin (i) new text end an aerospace defense manufacturing facility exempt under section 297A.71, 184.13subdivision 42; 184.14 new text begin (ii) a biopharmaceutical manufacturing facility exempt under section 297A.71, new text end 184.15 new text begin subdivision 45; new text end 184.16 new text begin (iii) a research and development facility exempt under section 297A.71, subdivision new text end 184.17 new text begin 4b; and new text end 184.18 new text begin (iv) an industrial measurement manufacturing and controls facility exempt under new text end 184.19 new text begin section 297A.71, subdivision 47; new text end 184.20(15) new text begin (14) new text end enterprise information technology equipment and computer software for 184.21use in a qualified data center exempt under section 297A.68, subdivision 42; and 184.22(16) new text begin (15) new text end materials, supplies, and equipment for qualifying capital projects under 184.23section 297A.71, subdivision 44 new text begin ; new text end 184.24 new text begin (16) items purchased for use in providing critical access dental services exempt new text end 184.25 new text begin under section 297A.70, subdivision 7, paragraph (c); and new text end 184.26 new text begin (17) items and services purchased under a business subsidy agreement for use or new text end 184.27 new text begin consumption primarily in greater Minnesota exempt under section 297A.68, subdivision 49 new text end . 184.28 new text begin EFFECTIVE DATE. new text end new text begin The change to clause (1) is effective for sales and purchases new text end 184.29 new text begin made after August 31, 2014. The changes in clauses (13), (16), and (17), are effective the new text end 184.30 new text begin day following final enactment. new text end 184.31    Sec. 41. Minnesota Statutes 2012, section 297A.75, subdivision 2, is amended to read: 184.32    Subd. 2. Refund; eligible persons. Upon application on forms prescribed by the 184.33commissioner, a refund equal to the tax paid on the gross receipts of the exempt items 184.34must be paid to the applicant. Only the following persons may apply for the refund: 185.1    (1) for subdivision 1, clauses (1) to (3) new text begin , (2), and (16) new text end , the applicant must be the 185.2purchaser; 185.3    (2) for subdivision 1, clauses (4) new text begin (3) new text end and (7) new text begin (6) new text end , the applicant must be the 185.4governmental subdivision; 185.5    (3) for subdivision 1, clause (5) new text begin (4) new text end , the applicant must be the recipient of the 185.6benefits provided in United States Code, title 38, chapter 21; 185.7    (4) for subdivision 1, clause (6) new text begin (5) new text end , the applicant must be the owner of the 185.8homestead property; 185.9    (5) for subdivision 1, clause (8) new text begin (7) new text end , the owner of the qualified low-income housing 185.10project; 185.11    (6) for subdivision 1, clause (9) new text begin (8) new text end , the applicant must be a municipal electric utility 185.12or a joint venture of municipal electric utilities; 185.13    (7) for subdivision 1, clauses (10), new text begin (9), (12), new text end (13), (14), and (15) new text begin and (17) new text end , the owner 185.14of the qualifying business; and 185.15    (8) for subdivision 1, clauses new text begin (10), new text end (11), (12), and (16) new text begin (15) new text end , the applicant must be 185.16the governmental entity that owns or contracts for the project or facility. 185.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 185.18    Sec. 42. Minnesota Statutes 2012, section 297A.75, subdivision 3, is amended to read: 185.19    Subd. 3. Application. (a) The application must include sufficient information 185.20to permit the commissioner to verify the tax paid. If the tax was paid by a contractor, 185.21subcontractor, or builder, under subdivision 1, clause (4), (5), (6), (7), (8), (9), (10), (11), 185.22(12), (13), (14), new text begin clauses (3) to new text end (15), or (16) new text begin (17) new text end , the contractor, subcontractor, or builder 185.23must furnish to the refund applicant a statement including the cost of the exempt items and 185.24the taxes paid on the items unless otherwise specifically provided by this subdivision. The 185.25provisions of sections 289A.40 and 289A.50 apply to refunds under this section. 185.26    (b) An applicant may not file more than two applications per calendar year for 185.27refunds for taxes paid on capital equipment exempt under section 297A.68, subdivision 5. 185.28    (c) Total refunds for purchases of items in section 297A.71, subdivision 40, must not 185.29exceed $5,000,000 in fiscal years 2010 and 2011. Applications for refunds for purchases 185.30of items in sections 297A.70, subdivision 3, paragraph (a), clause (11), and 297A.71, 185.31subdivision 40, must not be filed until after June 30, 2009. 185.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 185.33    Sec. 43. Minnesota Statutes 2012, section 297A.99, subdivision 1, is amended to read: 186.1    Subdivision 1. Authorization; scope. (a) A political subdivision of this state may 186.2impose a general sales tax (1) under section 297A.992, (2) under section 297A.993, (3) if 186.3permitted by special law, or (4) if the political subdivision enacted and imposed the tax 186.4before January 1, 1982, and its predecessor provision. 186.5    (b) This section governs the imposition of a general sales tax by the political 186.6subdivision. The provisions of this section preempt the provisions of any special law: 186.7    (1) enacted before June 2, 1997, or 186.8    (2) enacted on or after June 2, 1997, that does not explicitly exempt the special law 186.9provision from this section's rules by reference. 186.10    (c) This section does not apply to or preempt a sales tax on motor vehicles or a 186.11special excise tax on motor vehicles. 186.12(d) A political subdivision may not advertise or expend funds for the promotion of a 186.13referendum to support imposing a local option sales tax. 186.14 new text begin (e) Notwithstanding paragraph (d), new text end a political subdivision may only expend funds to new text begin : new text end 186.15 new text begin (1) new text end conduct the referendum. new text begin ; new text end 186.16 new text begin (2) disseminate information included in the resolution adopted under subdivision 2; new text end 186.17 new text begin (3) provide notice of, and conduct public forums at which proponents and opponents new text end 186.18 new text begin on the merits of the referendum are given equal time to express their opinions on the new text end 186.19 new text begin merits of the referendum; new text end 186.20 new text begin (4) provide facts and data on the impact of the proposed sales tax on consumer new text end 186.21 new text begin purchases; and new text end 186.22 new text begin (5) provide facts and data related to the programs and projects to be funded with new text end 186.23 new text begin the sales tax. new text end 186.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 186.25    Sec. 44. Laws 1993, chapter 375, article 9, section 46, subdivision 2, as amended by 186.26Laws 1997, chapter 231, article 7, section 40, Laws 1998, chapter 389, article 8, section 186.2730, Laws 2003, First Special Session chapter 21, article 8, section 13, Laws 2005, First 186.28Special Session chapter 3, article 5, section 26, and Laws 2009, chapter 88, article 4, 186.29section 15, is amended to read: 186.30    Subd. 2. Use of revenues. Revenues received from the tax authorized by subdivision 186.311 may only be used by the city to pay the cost of collecting the tax, and new text begin , except as provided in new text end 186.32 new text begin paragraph (e), new text end to pay for the following projects or to secure or pay any principal, premium, 186.33or interest on bonds issued in accordance with subdivision 3 for the following projects. 186.34    (a) To pay all or a portion of the capital expenses of construction, equipment and 186.35acquisition costs for the expansion and remodeling of the St. Paul Civic Center complex, 187.1including the demolition of the existing arena and the construction and equipping of a 187.2new arena. 187.3    (b) Except as provided in paragraphs (e) and (f), the remainder of the funds must be 187.4spent for: 187.5    (1) capital projects to further residential, cultural, commercial, and economic 187.6development in both downtown St. Paul and St. Paul neighborhoods; and 187.7    (2) capital and operating expenses of cultural organizations in the city, provided 187.8that the amount spent under this clause must equal ten percent of the total amount spent 187.9under this paragraph in any year. 187.10    (c) The amount apportioned under paragraph (b) shall be no less than 60 percent 187.11of the revenues derived from the tax each year, except to the extent that a portion of that 187.12amount is required to pay debt service on (1) bonds issued for the purposes of paragraph (a) 187.13prior to March 1, 1998; or (2) bonds issued for the purposes of paragraph (a) after March 1, 187.141998, but only if the city council determines that 40 percent of the revenues derived from 187.15the tax together with other revenues pledged to the payment of the bonds, including the 187.16proceeds of definitive bonds, is expected to exceed the annual debt service on the bonds. 187.17    (d) If in any year more than 40 percent of the revenue derived from the tax authorized 187.18by subdivision 1 is used to pay debt service on the bonds issued for the purposes of 187.19paragraph (a) and to fund a reserve for the bonds, the amount of the debt service payment 187.20that exceeds 40 percent of the revenue must be determined for that year. In any year when 187.2140 percent of the revenue produced by the sales tax exceeds the amount required to pay 187.22debt service on the bonds and to fund a reserve for the bonds under paragraph (a), the 187.23amount of the excess must be made available for capital projects to further residential, 187.24cultural, commercial, and economic development in the neighborhoods and downtown 187.25until the cumulative amounts determined for all years under the preceding sentence have 187.26been made available under this sentence. The amount made available as reimbursement in 187.27the preceding sentence is not included in the 60 percent determined under paragraph (c). 187.28    (e) In each of calendar years 2006 to 2014, revenue not to exceed $3,500,000 may be 187.29used to pay the principal of bonds issued for capital projects of the city. After December 187.3031, 2014, revenue from the tax imposed under subdivision 1 may not be used for this 187.31purpose. new text begin If the amount necessary to meet obligations under paragraphs (a) and (d) are less new text end 187.32 new text begin than 40 percent of the revenue from the tax in any year, the city may place the difference new text end 187.33 new text begin between 40 percent of the revenue and the amounts allocated under paragraphs (a) and (d) new text end 187.34 new text begin in an economic development fund to be used for any economic development purposes. new text end 187.35    (f) By January 15 of each year, the mayor and the city council must report to the 187.36legislature on the use of sales tax revenues during the preceding one-year period. 188.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after compliance by the new text end 188.2 new text begin governing body of the city of St. Paul with Minnesota Statutes, section 645.021, new text end 188.3 new text begin subdivisions 2 and 3. new text end 188.4    Sec. 45. Laws 1993, chapter 375, article 9, section 46, subdivision 5, as amended by 188.5Laws 1998, chapter 389, article 8, section 32, is amended to read: 188.6    Subd. 5. Expiration of taxing authority. The authority granted by subdivision 1 to 188.7the city to impose a sales tax shall expire on December 31, 2030 new text begin 2042 new text end , or at an earlier 188.8time as the city shall, by ordinance, determine. Any funds remaining after completion of 188.9projects approved under subdivision 2, paragraph (a) and retirement or redemption of any 188.10bonds or other obligations may be placed in the general fund of the city. 188.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after compliance by the new text end 188.12 new text begin governing body of the city of St. Paul with Minnesota Statutes, section 645.021, new text end 188.13 new text begin subdivisions 2 and 3. new text end 188.14    Sec. 46. Laws 2002, chapter 377, article 3, section 25, as amended by Laws 2009, 188.15chapter 88, article 4, section 19, and Laws 2010, chapter 389, article 5, section 3, is 188.16amended to read: 188.17    Sec. 25. ROCHESTER LODGING TAX. 188.18    Subdivision 1. Authorization. Notwithstanding Minnesota Statutes, section 188.19469.190 or 477A.016, or any other law, the city of Rochester may impose an additional 188.20tax of one percent on the gross receipts from the furnishing for consideration of lodging at 188.21a hotel, motel, rooming house, tourist court, or resort, other than the renting or leasing of it 188.22for a continuous period of 30 days or more. 188.23    Subd. 1a. Authorization. Notwithstanding Minnesota Statutes, section 469.190 or 188.24477A.016 , or any other law, and in addition to the tax authorized by subdivision 1, the city 188.25of Rochester may impose an additional tax of one new text begin three new text end percent on the gross receipts from 188.26the furnishing for consideration of lodging at a hotel, motel, rooming house, tourist court, or 188.27resort, other than the renting or leasing of it for a continuous period of 30 days or more only 188.28upon the approval of the city governing body of a total financial package for the project. 188.29    Subd. 2. Disposition of proceeds. (a) The gross proceeds from the tax imposed 188.30under subdivision 1 must be used by the city to fund a local convention or tourism bureau 188.31for the purpose of marketing and promoting the city as a tourist or convention center. 188.32(b) The gross proceeds from the one new text begin three new text end percent tax imposed under subdivision 188.331a shall be used to pay for (1) new text begin design, new text end construction, renovation, improvement, and 188.34expansion of the Mayo Civic Center new text begin Complex new text end and related new text begin infrastructure, including but not new text end 189.1 new text begin limited to, new text end skyway access, lighting, parking, or landscaping; and (2) for payment of any 189.2principal, interest, or premium on bonds issued to finance the construction, renovation, 189.3improvement, and expansion of the Mayo Civic Center Complex. 189.4    Subd. 2a. Bonds. The city of Rochester may issue, without an election, general 189.5obligation bonds of the city, in one or more series, in the aggregate principal amount not to 189.6exceed $43,500,000 new text begin $50,000,000 new text end , to pay for capital and administrative costs for the design, 189.7construction, renovation, improvement, and expansion of the Mayo Civic Center Complex, 189.8and related new text begin infrastructure, including but not limited to, new text end skyway, access, lighting, parking, 189.9and landscaping. The city may pledge the lodging tax authorized by subdivision 1a and the 189.10food and beverage tax authorized under Laws 2009, chapter 88, article 4, section 23, to the 189.11payment of the bonds. The debt represented by the bonds is not included in computing any 189.12debt limitations applicable to the city, and the levy of taxes required by Minnesota Statutes, 189.13section 475.61, to pay the principal of and interest on the bonds is not subject to any levy 189.14limitation or included in computing or applying any levy limitation applicable to the city. 189.15    Subd. 3. Expiration of taxing authority. The authority of the city to impose a tax 189.16under subdivision 1a shall expire when the principal and interest on any bonds or other 189.17obligations issued prior to December 31, 2014, to finance the construction, renovation, 189.18improvement, and expansion of the Mayo Civic Center Complex and related skyway 189.19access, lighting, parking, or landscaping have been paid, including any bonds issued to 189.20refund such bonds, or at an earlier time as the city shall, by ordinance, determine. Any 189.21funds remaining after completion of the project and retirement or redemption of the bonds 189.22shall be placed in the general fund of the city. new text begin The city may, by ordinance, repeal the new text end 189.23 new text begin tax provided that: new text end 189.24 new text begin (1) the revenues raised before the repeal are sufficient to meet all bond or other new text end 189.25 new text begin obligations backed by revenues of the tax; and new text end 189.26 new text begin (2) the repeal date meets the requirements of section 297A.99, subdivision 12. new text end 189.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of new text end 189.28 new text begin the city of Rochester and its chief fiscal officer comply with Minnesota Statutes, section new text end 189.29 new text begin 645.021, subdivisions 2 and 3. new text end 189.30    Sec. 47. Laws 2005, First Special Session chapter 3, article 5, section 37, subdivision 189.312, is amended to read: 189.32    Subd. 2. Use of revenues. (a) Revenues received from the tax authorized by 189.33subdivision 1 by the city of St. Cloud must be used for the cost of collecting and 189.34administering the tax and to pay all or part of the capital or administrative costs of the 189.35development, acquisition, construction, improvement, and securing and paying debt 190.1service on bonds or other obligations issued to finance the following regional projects as 190.2approved by the voters and specifically detailed in the referendum authorizing the tax new text begin or new text end 190.3 new text begin extending the tax new text end : 190.4    (1) St. Cloud Regional Airport; 190.5    (2) regional transportation improvements; 190.6    (3) new text begin regional new text end community and aquatics centers; 190.7    (4) regional public libraries; and 190.8    (5) acquisition and improvement of regional park land and open space. 190.9    (b) Revenues received from the tax authorized by subdivision 1 by the cities of St. 190.10Joseph, Waite Park, Sartell, Sauk Rapids, and St. Augusta must be used for the cost of 190.11collecting and administering the tax and to pay all or part of the capital or administrative 190.12costs of the development, acquisition, construction, improvement, and securing and paying 190.13debt service on bonds or other obligations issued to fund the projects specifically approved 190.14by the voters at the referendum authorizing the tax new text begin or extending the tax new text end . The portion of 190.15revenues from the city going to fund the regional airport or regional library located in the 190.16city of St. Cloud will be as required under the applicable joint powers agreement. 190.17    (c) The use of revenues received from the taxes authorized in subdivision 1 for 190.18projects allowed under paragraphs (a) and (b) are limited to the amount authorized for 190.19each project under the enabling referendum. 190.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for the city that approves them the new text end 190.21 new text begin day after compliance by the governing body of each city with Minnesota Statutes, section new text end 190.22 new text begin 645.021, subdivision 3. new text end 190.23    Sec. 48. Laws 2005, First Special Session chapter 3, article 5, section 37, subdivision 190.244, is amended to read: 190.25    Subd. 4. Termination of tax. The tax imposed in the cities of St. Joseph, St. 190.26Cloud, St. Augusta, Sartell, Sauk Rapids, and Waite Park under subdivision 1 expires 190.27when the city council determines that sufficient funds have been collected from the tax 190.28to retire or redeem the bonds and obligations authorized under subdivision 2, paragraph 190.29(a), but no later than December 31, 2018. new text begin Notwithstanding Minnesota Statutes, section new text end 190.30 new text begin 297A.99, subdivision 3, paragraphs (a), (c), and (d), a city may extend the tax imposed new text end 190.31 new text begin under subdivision 1 through December 31, 2038, if approved by voters of the city no later new text end 190.32 new text begin than November 7, 2017, at either a general election or at a special election held on a first new text end 190.33 new text begin Tuesday after a first Monday in November. new text end 191.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for the city that approves them the new text end 191.2 new text begin day after compliance by the governing body of each city with Minnesota Statutes, section new text end 191.3 new text begin 645.021, subdivision 3. new text end 191.4    Sec. 49. Laws 2008, chapter 366, article 7, section 19, subdivision 3, as amended by 191.5Laws 2011, First Special Session chapter 7, article 4, section 8, is amended to read: 191.6    Subd. 3. Use of revenues. Notwithstanding Minnesota Statutes, section 297A.99, 191.7subdivision 3 , paragraph (b), the proceeds of the tax imposed under this section shall be 191.8used to pay for the costs of new text begin improvements to the Sportsman Park/Ballfields, Riverside new text end 191.9 new text begin Park, Lions Park/Pavilion, Cedar South Park also known as Eldorado Park, and Spring new text end 191.10 new text begin Street Park; improvements to and extension of the River County Bike Trail; new text end acquisition, 191.11 new text begin and new text end construction, improvement, and development of regional parks, bicycle trails, park 191.12land, open space, and new text begin of a new text end pedestrian walkways, as described in the city improvement 191.13plan adopted by the city council by resolution on December 12, 2006, and new text begin walkway new text end 191.14 new text begin over Interstate 94 and State Highway 24; and the acquisition of new text end land and new text begin construction of new text end 191.15buildings for a community and recreation center. The total amount of revenues from the 191.16taxes in subdivisions 1 and 2 that may be used to fund these projects is $12,000,000 191.17plus any associated bond costs. 191.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after compliance by the new text end 191.19 new text begin governing body of the city of Clearwater with Minnesota Statutes, section 645.021, new text end 191.20 new text begin subdivisions 2 and 3. new text end 191.21    Sec. 50. Laws 2010, chapter 389, article 5, section 6, subdivision 6, is amended to read: 191.22    Subd. 6. Use of food and beverages tax. The revenues derived from the tax 191.23imposed under subdivision 5 must be used by the city of Marshall to pay the costs of 191.24collecting and administering the food and beverages tax, to pay all or part of the operating 191.25costs of the new and existing facilities of the Minnesota Emergency Response and 191.26Industry Training Center, including the payment of debt service on bonds issued under 191.27subdivision 2, and to pay all or part of the operating costs of the facilities of the Southwest 191.28Minnesota Regional Amateur Sports Center, including the payment of debt service on 191.29bonds issued under subdivision 2. new text begin Authorized expenses for each organization include, new text end 191.30 new text begin but are not limited to, acquiring property; predesign; design; and paying construction, new text end 191.31 new text begin furnishing, and equipment costs related to these facilities and paying debt service on new text end 191.32 new text begin bonds or other obligations issued by the city. new text end 191.33 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 192.1    Sec. 51. new text begin CITY OF MARSHALL; VALIDATION OF PRIOR ACT. new text end 192.2     new text begin (a) Notwithstanding the time limits in Minnesota Statutes, section 645.021, the city new text end 192.3 new text begin of Marshall may approve Laws 2010, chapter 389, article 5, section 6, as amended by new text end 192.4 new text begin Laws 201l, First Special Session chapter 7, article 4, section 9, and file its approval with new text end 192.5 new text begin the secretary of state by June 15, 2013. If approved as authorized under this paragraph, new text end 192.6 new text begin actions undertaken by the city pursuant to the approval of the voters on November 6, 2012, new text end 192.7 new text begin and otherwise in accordance with Laws 2010, chapter 389, article 5, section 6, as amended new text end 192.8 new text begin by Laws 201l, First Special Session chapter 7, article 4, section 9, are validated. new text end 192.9     new text begin (b) Notwithstanding the time limit on the imposition of tax under Laws 2010, new text end 192.10 new text begin chapter 389, article 5, section 6, subdivision 1, as amended by Laws 201l, First Special new text end 192.11 new text begin Session chapter 7, article 4, section 9, and subject to local approval under paragraph (a), new text end 192.12 new text begin the city of Marshall may impose the tax on or before July 1, 2013. new text end 192.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 192.14    Sec. 52. new text begin CITY OF PROCTOR; VALIDATION OF PRIOR ACT. new text end 192.15     new text begin Notwithstanding the time limits in Minnesota Statutes, section 645.021, the city of new text end 192.16 new text begin Proctor may approve, by resolution, Laws 2008, chapter 366, article 7, section 13, and new text end 192.17 new text begin Laws 2010, chapter 389, article 5, sections 1 and 2, and file its approval with the secretary new text end 192.18 new text begin of state by January 1, 2014. If approved under this paragraph, actions undertaken by new text end 192.19 new text begin the city pursuant to the approval of the voters on November 2, 2010, and otherwise in new text end 192.20 new text begin accordance with those laws are validated. new text end 192.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 192.22    Sec. 53. new text begin REPEALER. new text end 192.23 new text begin (a) new text end new text begin Minnesota Statutes 2012, sections 297A.61, subdivision 27; and 297A.68, new text end 192.24 new text begin subdivision 35, new text end new text begin are repealed. new text end 192.25 new text begin (b) new text end new text begin Laws 2009, chapter 88, article 4, section 23, as amended by Laws 2010, chapter new text end 192.26 new text begin 389, article 5, section 4, new text end new text begin is repealed. new text end 192.27 new text begin EFFECTIVE DATE. new text end new text begin Paragraph (a) is effective for sales and purchases made after new text end 192.28 new text begin June 30, 2013. Paragraph (b) is effective the day following final enactment. new text end 192.29ARTICLE 9 192.30ECONOMIC DEVELOPMENT 192.31    Section 1. Minnesota Statutes 2012, section 469.071, subdivision 5, is amended to read: 193.1    Subd. 5. Exception; parking facilities. Notwithstanding section 469.068, the 193.2Bloomington port authority need not require competitive bidding with respect to a 193.3structured parking facility new text begin or other public improvements new text end constructed in conjunction with, 193.4and directly above or below, or adjacent and integrally related to, a development and 193.5financed with the proceeds of tax increment or new text begin , new text end revenue bonds new text begin , or other funds of the new text end 193.6 new text begin port authority and the city of Bloomington new text end . 193.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon compliance of the governing new text end 193.8 new text begin body of the city of Bloomington with the requirements of Minnesota Statutes, section new text end 193.9 new text begin 645.021, subdivision 3. new text end 193.10    Sec. 2. Minnesota Statutes 2012, section 469.169, is amended by adding a subdivision 193.11to read: 193.12     new text begin Subd. 19. new text end new text begin Additional border city allocation; 2013. new text end new text begin (a) In addition to the tax new text end 193.13 new text begin reductions authorized in subdivisions 12 to 18, the commissioner shall allocate $750,000 new text end 193.14 new text begin for tax reductions to border city enterprise zones in cities located on the western border new text end 193.15 new text begin of the state. The commissioner shall allocate this amount among cities on a per capita new text end 193.16 new text begin basis. Allocations made under this subdivision may be used for tax reductions under new text end 193.17 new text begin section 469.171, or for other offsets of taxes imposed on or remitted by businesses located new text end 193.18 new text begin in the enterprise zone, but only if the municipality determines that the granting of the tax new text end 193.19 new text begin reduction or offset is necessary to retain a business within or attract a business to the zone. new text end 193.20 new text begin The city alternatively may elect to use any portion of the allocation under this paragraph new text end 193.21 new text begin for tax reductions under section 469.1732 or 469.1734. new text end 193.22     new text begin (b) The commissioner shall allocate $750,000 for tax reductions under section new text end 193.23 new text begin 469.1732 or 469.1734 to cities with border city enterprise zones located on the western new text end 193.24 new text begin border of the state. The commissioner shall allocate this amount among the cities on a per new text end 193.25 new text begin capita basis. The city alternatively may elect to use any portion of the allocation provided new text end 193.26 new text begin in this paragraph for tax reductions under section 469.171. new text end 193.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2013. new text end 193.28    Sec. 3. Minnesota Statutes 2012, section 469.176, subdivision 4c, is amended to read: 193.29    Subd. 4c. Economic development districts. (a) Revenue derived from tax increment 193.30from an economic development district may not be used to provide improvements, loans, 193.31subsidies, grants, interest rate subsidies, or assistance in any form to developments 193.32consisting of buildings and ancillary facilities, if more than 15 percent of the buildings and 193.33facilities (determined on the basis of square footage) are used for a purpose other than: 194.1    (1) the manufacturing or production of tangible personal property, including 194.2processing resulting in the change in condition of the property; 194.3    (2) warehousing, storage, and distribution of tangible personal property, excluding 194.4retail sales; 194.5    (3) research and development related to the activities listed in clause (1) or (2); 194.6    (4) telemarketing if that activity is the exclusive use of the property; 194.7    (5) tourism facilities; new text begin or new text end 194.8    (6) qualified border retail facilities; or 194.9    (7) space necessary for and related to the activities listed in clauses (1) to (6) new text begin (5) new text end . 194.10    (b) Notwithstanding the provisions of this subdivision, revenues derived from tax 194.11increment from an economic development district may be used to provide improvements, 194.12loans, subsidies, grants, interest rate subsidies, or assistance in any form for up to 15,000 194.13square feet of any separately owned commercial facility located within the municipal 194.14jurisdiction of a small city, if the revenues derived from increments are spent only to 194.15assist the facility directly or for administrative expenses, the assistance is necessary to 194.16develop the facility, and all of the increments, except those for administrative expenses, 194.17are spent only for activities within the district. 194.18    (c) A city is a small city for purposes of this subdivision if the city was a small city 194.19in the year in which the request for certification was made and applies for the rest of 194.20the duration of the district, regardless of whether the city qualifies or ceases to qualify 194.21as a small city. 194.22    (d) Notwithstanding the requirements of paragraph (a) and the finding requirements 194.23of section 469.174, subdivision 12, tax increments from an economic development district 194.24may be used to provide improvements, loans, subsidies, grants, interest rate subsidies, or 194.25assistance in any form to developments consisting of buildings and ancillary facilities, if 194.26all the following conditions are met: 194.27    (1) the municipality finds that the project will create or retain jobs in this state, 194.28including construction jobs, and that construction of the project would not have 194.29commenced before July 1, 2012, without the authority providing assistance under the 194.30provisions of this paragraph; 194.31    (2) construction of the project begins no later than July 1, 2012; 194.32    (3) the request for certification of the district is made no later than June 30, 2012; and 194.33    (4) for development of housing under this paragraph, the construction must begin 194.34before January 1, 2012. 195.1    The provisions of this paragraph may not be used to assist housing that is developed 195.2to qualify under section 469.1761, subdivision 2 or 3, or similar requirements of other law, 195.3if construction of the project begins later than July 1, 2011. 195.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for districts for which the request for new text end 195.5 new text begin certification was made after June 30, 2012. new text end 195.6    Sec. 4. Minnesota Statutes 2012, section 469.176, subdivision 4g, is amended to read: 195.7    Subd. 4g. General government use prohibited. (a) Tax increments may not be 195.8used to circumvent existing levy limit law. 195.9    (b) No tax increment from any district may be used for the acquisition, construction, 195.10renovation, operation, or maintenance of a building to be used primarily and regularly 195.11for conducting the business of a municipality, county, school district, or any other local 195.12unit of government or the state or federal government. This provision does not prohibit 195.13the use of revenues derived from tax increments for the construction or renovation of 195.14a parking structure. 195.15    (c)(1) Tax increments may not be used to pay for the cost of public improvements, 195.16equipment, or other items, if: 195.17    (i) the improvements, equipment, or other items are located outside of the area of the 195.18tax increment financing district from which the increments were collected; and 195.19    (ii) the improvements, equipment, or items that (A) primarily serve a decorative or 195.20aesthetic purpose, or (B) serve a functional purpose, but their cost is increased by more than 195.21100 percent as a result of the selection of materials, design, or type as compared with more 195.22commonly used materials, designs, or types for similar improvements, equipment, or items. 195.23    (2) The provisions of this paragraph do not apply to expenditures related to the 195.24rehabilitation of historic structures that are: 195.25    (i) individually listed on the National Register of Historic Places; or 195.26    (ii) a contributing element to a historic district listed on the National Register 195.27of Historic Places. 195.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment for new text end 195.29 new text begin all tax increment financing districts, regardless of when the request for certification was new text end 195.30 new text begin made, but applies only to amounts spent after final enactment. new text end 195.31    Sec. 5. Minnesota Statutes 2012, section 469.176, subdivision 6, is amended to read: 195.32    Subd. 6. Action required. (a) If, after four years from the date of certification of 195.33the original net tax capacity of the tax increment financing district pursuant to section 196.1469.177 , no demolition, rehabilitation, or renovation of property or other site preparation, 196.2including qualified improvement of a street adjacent to a parcel but not installation 196.3of utility service including sewer or water systems, has been commenced on a parcel 196.4located within a tax increment financing district by the authority or by the owner of the 196.5parcel in accordance with the tax increment financing plan, no additional tax increment 196.6may be taken from that parcel, and the original net tax capacity of that parcel shall be 196.7excluded from the original net tax capacity of the tax increment financing district. If the 196.8authority or the owner of the parcel subsequently commences demolition, rehabilitation, 196.9or renovation or other site preparation on that parcel including qualified improvement of 196.10a street adjacent to that parcel, in accordance with the tax increment financing plan, the 196.11authority shall certify to the county auditor that the activity has commenced, and the 196.12county auditor shall certify the net tax capacity thereof as most recently certified by the 196.13commissioner of revenue and add it to the original net tax capacity of the tax increment 196.14financing district. The county auditor must enforce the provisions of this subdivision. The 196.15authority must submit to the county auditor evidence that the required activity has taken 196.16place for each parcel in the district. The evidence for a parcel must be submitted by 196.17February 1 of the fifth year following the year in which the parcel was certified as included 196.18in the district. For purposes of this subdivision, qualified improvements of a street are 196.19limited to (1) construction or opening of a new street, (2) relocation of a street, and (3) 196.20substantial reconstruction or rebuilding of an existing street. 196.21(b) For districts which were certified on or after January 1, 2005, and before April 196.2220, 2009, the four-year period under paragraph (a) is increased to six years new text begin deemed to end new text end 196.23 new text begin on December 31, 2016 new text end . 196.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment new text end 196.25 new text begin and applies to districts certified on or after January 1, 2005, and before April 20, 2009. new text end 196.26    Sec. 6. Minnesota Statutes 2012, section 469.177, subdivision 1a, is amended to read: 196.27    Subd. 1a. Original local tax rate. At the time of the initial certification of the 196.28original net tax capacity for a tax increment financing district or a subdistrict, the county 196.29auditor shall certify the original local tax rate that applies to the district or subdistrict. The 196.30original local tax rate is the sum of all the local tax rates new text begin , excluding that portion of the new text end 196.31 new text begin school rate attributable to the general education levy under section 126C.13, new text end that apply 196.32to a property in the district or subdistrict. The local tax rate to be certified is the rate in 196.33effect for the same taxes payable year applicable to the tax capacity values certified as 196.34the district's or subdistrict's original tax capacity. The resulting tax capacity rate is the 196.35original local tax rate for the life of the district or subdistrict. 197.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for districts for which the request for new text end 197.2 new text begin certification is made after April 15, 2013. new text end 197.3    Sec. 7. Minnesota Statutes 2012, section 469.177, is amended by adding a subdivision 197.4to read: 197.5     new text begin Subd. 1d. new text end new text begin Original net tax capacity adjustment; homestead market value new text end 197.6 new text begin exclusion. new text end new text begin (a) Upon approval by the municipality, by resolution, the authority may elect to new text end 197.7 new text begin reduce the original net tax capacity of a qualified district by the amount of the tax capacity new text end 197.8 new text begin attributable to the market value exclusion under section 273.13, subdivision 35, for taxes new text end 197.9 new text begin payable in the year preceding the election. The amount of the reduction may not reduce new text end 197.10 new text begin the original net tax capacity below zero. new text end 197.11     new text begin (b) For purposes of this subdivision, a qualified district means a tax increment new text end 197.12 new text begin financing district that satisfies the following conditions: new text end 197.13     new text begin (1) for taxes payable in 2011, the authority received a homestead market value credit new text end 197.14 new text begin reimbursement under section 273.1384 for the district of $10,000 or more; new text end 197.15     new text begin (2) for taxes payable in 2013, the reduction in captured tax capacity resulting from new text end 197.16 new text begin the market value exclusion for the district was equal to or greater than 1.75 percent of the new text end 197.17 new text begin district's captured tax capacity; and new text end 197.18     new text begin (3) either (i) the authority is permitted to expend increments on activities under the new text end 197.19 new text begin provisions of section 469.1763, subdivision 3, or an equivalent provision of special law new text end 197.20 new text begin on July 1, 2013, or (ii) the district's tax increments received for taxes payable in 2012 new text end 197.21 new text begin exceeded the amount of debt service payments due during calendar year 2012 on bonds new text end 197.22 new text begin issued under section 469.178 to which the district's increments are pledged. new text end 197.23 new text begin The calculation of the amount under clause (2) must reflect any adjustments to original new text end 197.24 new text begin net tax capacity made under subdivision 1, paragraphs (d) and (e), for the homestead new text end 197.25 new text begin market value exclusion. new text end 197.26     new text begin (c) The authority must notify the county auditor of its election under this section no new text end 197.27 new text begin later than July 1, 2014. Notifications made by July 1, 2013, are effective beginning for new text end 197.28 new text begin taxes payable in 2014, and notifications made after July 1, 2013, are effective beginning new text end 197.29 new text begin for taxes payable in 2015. new text end 197.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment new text end 197.31 new text begin and applies to all tax increment financing districts regardless of when the request for new text end 197.32 new text begin certification was made. new text end 197.33    Sec. 8. Minnesota Statutes 2012, section 469.177, is amended by adding a subdivision 197.34to read: 198.1     new text begin Subd. 1e. new text end new text begin Adjustments; qualifying districts. new text end new text begin (a) For any tax increment financing new text end 198.2 new text begin district that satisfies the requirements of paragraph (b), the original net tax capacity must new text end 198.3 new text begin be reduced by the full amount of the original net tax capacity or $20,000, whichever is less. new text end 198.4     new text begin (b) A tax increment financing district qualifies under this subdivision if it satisfies new text end 198.5 new text begin the following conditions: new text end 198.6     new text begin (1) the district was certified after January 1, 2011, and before January 1, 2012; new text end 198.7     new text begin (2) for assessment year 2012, at least 75 percent of the tax capacity of the district new text end 198.8 new text begin is class 4d property; and new text end 198.9     new text begin (3) for assessment year 2012, the average estimated market value is over $115,000 new text end 198.10 new text begin per housing unit for the portion of the property that is class 4d. new text end 198.11 new text begin (c) An authority or a property owner within a tax increment financing district must new text end 198.12 new text begin notify the county assessor of a district that qualifies under this subdivision by July 1, 2013. new text end 198.13 new text begin (d) This subdivision expires on December 31, 2021. new text end 198.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning for taxes payable in 2014. new text end 198.15    Sec. 9. Minnesota Statutes 2012, section 469.177, subdivision 9, is amended to read: 198.16    Subd. 9. Distributions of excess taxes on captured net tax capacity. (a) If the 198.17amount of tax paid on captured net tax capacity exceeds the amount of tax increment, 198.18the county auditor shall distribute the excess new text begin , except increment attributable to the new text end 198.19 new text begin general education levy, new text end to the municipality, county, and school district as follows: each 198.20governmental unit's share of the excess equals 198.21(1) the total amount of the excess for the tax increment financing district, multiplied by 198.22(2) a fraction, the numerator of which is the current local tax rate of the governmental 198.23unit less the governmental unit's local tax rate for the year the original local tax rate for the 198.24district was certified (in no case may this amount be less than zero) and the denominator 198.25of which is the sum of the numerators for the municipality, county, and school district. 198.26If the entire increase in the local tax rate is attributable to a taxing district, other than 198.27the municipality, county, or school district, then the excess must be distributed to the 198.28municipality, county, and school district in proportion to their respective local tax rates. 198.29(b) The amounts distributed shall be deducted in computing the levy limits of the 198.30taxing district for the succeeding taxable year. 198.31(c) In the case of distributions to a school district, the county auditor shall report 198.32amounts distributed to the commissioner of education in the same manner as provided 198.33for excess increments under section 469.176, subdivision 2, and the distribution shall be 198.34deducted from the school district's state aid payments and levy limitation according to 198.35section 127A.49, subdivision 3. 199.1 new text begin (d) The amount of taxes attributable to imposing the general education levy under new text end 199.2 new text begin section 126C.13 must be returned to the school district within which the tax increment new text end 199.3 new text begin financing district is located. new text end 199.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for districts for which the request for new text end 199.5 new text begin certification is made after April 15, 2013. new text end 199.6    Sec. 10. Minnesota Statutes 2012, section 473F.08, is amended by adding a subdivision 199.7to read: 199.8     new text begin Subd. 3c. new text end new text begin Mall of America. new text end new text begin (a) When computing the net tax capacity under section new text end 199.9 new text begin 473F.05, the Hennepin County auditor shall exclude the captured tax capacity of Tax new text end 199.10 new text begin Increment Financing Districts No. 1-C and No. 1-G in the city of Bloomington. new text end 199.11     new text begin (b) Notwithstanding the provisions of subdivision 2, paragraph (a), the new text end 199.12 new text begin commercial-industrial contribution percentage for the city of Bloomington is the new text end 199.13 new text begin contribution net tax capacity divided by the total net tax capacity of commercial-industrial new text end 199.14 new text begin property in the city, excluding any commercial-industrial property that is captured tax new text end 199.15 new text begin capacity of Tax Increment Financing Districts No. 1-C and No. 1-G. new text end 199.16     new text begin (c) The property taxes to be paid on commercial-industrial tax capacity that is new text end 199.17 new text begin included in the captured tax capacity of Tax Increment Financing Districts No. 1-C and new text end 199.18 new text begin No. 1-G in the city of Bloomington must be determined as described in subdivision 6, new text end 199.19 new text begin except that the portion of the tax that is based on the areawide tax rate is to be treated new text end 199.20 new text begin as tax increment under section 469.176. new text end 199.21     new text begin (d) The provisions of this subdivision take effect only if the clerk of the city of new text end 199.22 new text begin Bloomington certifies to the Hennepin County auditor that the city has entered into a new text end 199.23 new text begin binding written agreement with the Metropolitan Council to repair and restore, or to new text end 199.24 new text begin replace, the old Cedar Avenue bridge for use by bicycle commuters and recreational users. new text end 199.25     new text begin (e) This subdivision expires on the earliest of the following dates: new text end 199.26     new text begin (1) when the tax increment financing districts have been decertified in 2024 or 2035, new text end 199.27 new text begin as provided by section 22, subdivision 2 or 4; or new text end 199.28     new text begin (2) on January 1, 2014, if the city clerk fails to make the certification provided in new text end 199.29 new text begin paragraph (d) or if the city fails to file its local approval of section 23 with the secretary new text end 199.30 new text begin of state by December 31, 2013. new text end 199.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning for property taxes payable new text end 199.32 new text begin in 2014. new text end 199.33    Sec. 11. Laws 2008, chapter 366, article 5, section 26, is amended to read: 200.1    Sec. 26. BLOOMINGTON TAX INCREMENT FINANCING; FIVE-YEAR 200.2RULE. 200.3     new text begin (a) new text end The requirements of Minnesota Statutes, section 469.1763, subdivision 3, that 200.4activities must be undertaken within a five-year period from the date of certification of 200.5a tax increment financing district, are increased to a ten-year new text begin 15-year new text end period for the 200.6Port Authority of the City of Bloomington's Tax Increment Financing District No. 1-I, 200.7Bloomington Central Station. 200.8     new text begin (b) Notwithstanding the provisions of Minnesota Statutes, section 469.176, or any new text end 200.9 new text begin other law to the contrary, the city of Bloomington and its port authority may extend the new text end 200.10 new text begin duration limits of the district for a period through December 31, 2039. new text end 200.11     new text begin (c) Effective for taxes payable in 2014, tax increment for the district must be new text end 200.12 new text begin computed using the current local tax rate, notwithstanding the provisions of Minnesota new text end 200.13 new text begin Statutes, section 469.177, subdivision 1a. new text end 200.14 new text begin EFFECTIVE DATE. new text end new text begin Paragraphs (a) and (c) are effective upon compliance by new text end 200.15 new text begin the governing body of the city of Bloomington with the requirements of Minnesota new text end 200.16 new text begin Statutes, section 645.021, subdivision 3. Paragraph (b) is effective upon compliance by new text end 200.17 new text begin the governing bodies of the city of Bloomington, Hennepin County, and Independent new text end 200.18 new text begin School District No. 271 with the requirements of Minnesota Statutes, sections 469.1782, new text end 200.19 new text begin subdivision 2, and 645.021, subdivision 3. new text end 200.20    Sec. 12. Laws 2008, chapter 366, article 5, section 34, as amended by Laws 2009, 200.21chapter 88, article 5, section 11, is amended to read: 200.22    Sec. 34. CITY OF OAKDALE; ORIGINAL TAX CAPACITY new text begin PARCELS new text end 200.23 new text begin DEEMED OCCUPIED new text end . 200.24    (a) The provisions of this section apply to redevelopment tax increment financing 200.25districts created by the Housing and Redevelopment Authority in and for the city of 200.26Oakdale in the areas comprised of the parcels with the following parcel identification 200.27numbers: (1) 3102921320053; 3102921320054; 3102921320055; 3102921320056; 200.283102921320057; 3102921320058; 3102921320062; 3102921320063; 3102921320059; 200.293102921320060; 3102921320061; 3102921330005; and 3102921330004; and (2) 200.302902921330001 and 2902921330005. 200.31    (b) For a district subject to this section, the Housing and Redevelopment Authority 200.32may, when requesting certification of the original tax capacity of the district under 200.33Minnesota Statutes, section , elect to have the original tax capacity of the district 200.34be certified as the tax capacity of the land. 201.1    (c) The authority to request certification of a district under this section expires on 201.2July 1, 2013. 201.3     new text begin (a) Parcel numbers 3102921320054, 3102921320055, 3102921320056, new text end 201.4 new text begin 3102921320057, 3102921320061, and 3102921330004 are deemed to meet the new text end 201.5 new text begin requirements of Minnesota Statutes, section 469.174, subdivision 10, paragraph (d), new text end 201.6 new text begin notwithstanding any contrary provisions of that paragraph, if the following conditions new text end 201.7 new text begin are met: new text end 201.8     new text begin (1) a building located on any part of each of the specified parcels was demolished after new text end 201.9 new text begin the Housing and Redevelopment Authority for the city of Oakdale adopted a resolution new text end 201.10 new text begin under Minnesota Statutes, section 469.174, subdivision 10, paragraph (d), clause (3); new text end 201.11     new text begin (2) the building was removed either by the authority, by a developer under a new text end 201.12 new text begin development agreement with the Housing and Redevelopment Authority for the city of new text end 201.13 new text begin Oakdale, or by the owner of the property without entering into a development agreement new text end 201.14 new text begin with the Housing and Redevelopment Authority for the city of Oakdale; and new text end 201.15     new text begin (3) the request for certification of the parcel as part of a district is filed with the new text end 201.16 new text begin county auditor by December 31, 2017. new text end 201.17     new text begin (b) The provisions of this section allow an election by the Housing and new text end 201.18 new text begin Redevelopment Authority for the city of Oakdale for the parcels deemed occupied under new text end 201.19 new text begin paragraph (a), notwithstanding the provisions of Minnesota Statutes, sections 469.174, new text end 201.20 new text begin subdivision 10, paragraph (d), and 469.177, subdivision 1, paragraph (f). new text end 201.21     new text begin (c) The city may elect, in the tax increment financing plan, to collect increment from new text end 201.22 new text begin a redevelopment district created under the provisions of this section for an additional ten new text end 201.23 new text begin years beyond the limit in Minnesota Statutes, section 469.176, subdivision 1b. new text end 201.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon compliance by the governing new text end 201.25 new text begin body of the city of Oakdale with the requirements of Minnesota Statutes, section 645.021, new text end 201.26 new text begin subdivision 3, except that the provisions of paragraph (c) are effective only upon new text end 201.27 new text begin compliance with Minnesota Statutes, section 469.1782, subdivision 2, by Ramsey County new text end 201.28 new text begin and Independent School District No. 622. new text end 201.29    Sec. 13. Laws 2010, chapter 216, section 55, is amended to read: 201.30    Sec. 55. OAKDALE; TAX INCREMENT FINANCING DISTRICT. 201.31    Subdivision 1. Duration of district. Notwithstanding the provisions of Minnesota 201.32Statutes, section 469.176, subdivision 1b, the city of Oakdale may collect tax increments 201.33from Tax Increment Financing District No. 6 (Bergen Plaza) through December 31, 2024 201.34 new text begin 2040 new text end , subject to the conditions described in subdivision 2. 202.1    Subd. 2. Conditions for extension. (a) Subdivision 1 applies only if the following 202.2conditions are met: 202.3    (1) by July 1, 2011, the city of Oakdale has entered into a development agreement 202.4with a private developer for development or redevelopment of all or a substantial part of 202.5the area new text begin parcels described in clause (2) new text end ; and 202.6    (2) by November 1, 2011, the city of Oakdale or a private developer commences 202.7construction of streets, traffic improvements, water, sewer, or related infrastructure that 202.8serves one or both of the parcels with the following parcel identification numbers: 202.92902921330001 and 2902921330005. For the purposes of this section, construction 202.10commences upon grading or other visible improvements that are part of the subject 202.11infrastructure. 202.12    (b) All tax increments received by the city of Oakdale under subdivision 1 after 202.13December 31, 2016, must be used only to pay costs that are both new text begin : new text end 202.14    (1) related to redevelopment of the parcels specified in this subdivision new text begin or new text end 202.15 new text begin parcel numbers 3102921320053, 3102921320054, 3102921320055, 3102921320056, new text end 202.16 new text begin 3102921320057, 3102921320058, 3102921320059, 3102921320060, 3102921320061, new text end 202.17 new text begin 3102921320062, 3102921320063, 3102921330004, and 3102921330005, new text end including, 202.18without limitation, any of the infrastructure referenced in this subdivision new text begin that serves new text end 202.19 new text begin any of the referenced parcels new text end ; and 202.20    (2) otherwise eligible under law to be paid with increments from the specified tax 202.21increment financing district, except the authority under this clause does not apply to 202.22increments collected after the conclusion of the duration limit under general law. 202.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon compliance by the governing new text end 202.24 new text begin body of the city of Oakdale with the requirements of Minnesota Statutes, section 645.021, new text end 202.25 new text begin subdivision 3, except that the amendments to subdivision 1 are effective only upon new text end 202.26 new text begin compliance with Minnesota Statutes, section 469.1782, subdivision 2, by Ramsey County new text end 202.27 new text begin and Independent School District No. 622. new text end 202.28    Sec. 14. new text begin ST. CLOUD; TAX INCREMENT FINANCING. new text end 202.29     new text begin The request for certification of Tax Increment Financing District No. 2, commonly new text end 202.30 new text begin referred to as the Norwest District, in the city of St. Cloud is deemed to have been made new text end 202.31 new text begin on or after August 1, 1979, and before July 1, 1982. Revenues derived from tax increment new text end 202.32 new text begin for that district must be treated for purposes of any law as revenue of a tax increment new text end 202.33 new text begin financing district for which the request for certification was made during that time period. new text end 203.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon approval by the governing new text end 203.2 new text begin body of the city of St. Cloud and compliance with Minnesota Statutes, section 645.021, new text end 203.3 new text begin subdivision 3. new text end 203.4    Sec. 15. new text begin CITY OF GLENCOE; TAX INCREMENT FINANCING DISTRICT new text end 203.5 new text begin EXTENSION. new text end 203.6     new text begin Subdivision 1. new text end new text begin Duration of district. new text end new text begin Notwithstanding the provisions of Minnesota new text end 203.7 new text begin Statutes, section 469.176, subdivision 1b, paragraph (a), clause (4), or any other law to the new text end 203.8 new text begin contrary, the city of Glencoe may collect tax increments from Tax Increment Financing new text end 203.9 new text begin District No. 4 (McLeod County District No. 007) through December 31, 2023, subject to new text end 203.10 new text begin the conditions in subdivision 2. new text end 203.11     new text begin Subd. 2. new text end new text begin Exclusive use of revenues. new text end new text begin (a) All tax increments derived from Tax new text end 203.12 new text begin Increment Financing District No. 4 (McLeod County District No. 007) that are collected new text end 203.13 new text begin after December 31, 2013, must be used only to pay debt service on or to defease bonds that new text end 203.14 new text begin were outstanding on January 1, 2013 and that were issued to finance improvements serving: new text end 203.15     new text begin (1) Tax Increment Financing District No. 14 (McLeod County District No. 033) new text end 203.16 new text begin (Downtown); new text end 203.17     new text begin (2) Tax Increment Financing District No. 15 (McLeod County District No. 035) new text end 203.18 new text begin (Industrial Park); and new text end 203.19     new text begin (3) benefited properties as further described in proceedings related to the city's series new text end 203.20 new text begin 2007A bonds, dated September 1, 2007, and any bonds issued to refund those bonds. new text end 203.21     new text begin (b) Increments may also be used to pay debt service on or to defease bonds issued to new text end 203.22 new text begin refund the bonds described in paragraph (a), if the refunding bonds do not increase the new text end 203.23 new text begin present value of debt service due on the refunded bonds when the refunding is closed. new text end 203.24     new text begin (c) When the bonds described in paragraphs (a) and (b) have been paid or defeased, new text end 203.25 new text begin the district must be decertified and any remaining increment returned to the city, county, new text end 203.26 new text begin and school district as provided in Minnesota Statutes, section 469.176, subdivision 2, new text end 203.27 new text begin paragraph (c), clause (4). new text end 203.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon compliance by the governing new text end 203.29 new text begin bodies of the city of Glencoe, McLeod County, and Independent School District No. new text end 203.30 new text begin 2859 with the requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and new text end 203.31 new text begin 645.021, subdivision 3. new text end 203.32    Sec. 16. new text begin CITY OF ELY; TAX INCREMENT FINANCING. new text end 204.1     new text begin Subdivision 1. new text end new text begin Extension of district. new text end new text begin Notwithstanding Minnesota Statutes, section new text end 204.2 new text begin 469.176, subdivision 1b, or any other law to the contrary, the city of Ely may collect new text end 204.3 new text begin tax increment from Tax Increment Financing District No. 1 through December 31, new text end 204.4 new text begin 2021. Increments from the district may only be used to pay binding obligations and new text end 204.5 new text begin administrative expenses. new text end 204.6     new text begin Subd. 2. new text end new text begin Binding obligations. new text end new text begin For purposes of this section, "binding obligations" new text end 204.7 new text begin means the binding contractual or debt obligation of Tax Increment Financing District new text end 204.8 new text begin No. 1 entered into before January 1, 2013. new text end 204.9     new text begin Subd. 3. new text end new text begin Expenditures outside district. new text end new text begin Notwithstanding Minnesota Statutes, new text end 204.10 new text begin section 469.1763, subdivision 2, the governing body of the city of Ely may elect to new text end 204.11 new text begin transfer revenues derived from increments from its Tax Increment Financing District No. new text end 204.12 new text begin 3 to the tax increment account established under Minnesota Statutes, section 469.177, new text end 204.13 new text begin subdivision 5, for Tax Increment Financing District No. 1. The amount that may be new text end 204.14 new text begin transferred is limited to the lesser of: new text end 204.15     new text begin (1) $168,000; or new text end 204.16     new text begin (2) the total amount due on binding obligations and outstanding on that date, less the new text end 204.17 new text begin amount of increment collected by Tax Increment Financing District No. 1 after December new text end 204.18 new text begin 31, 2012, and administrative expenses of Tax Increment Financing District No. 1 incurred new text end 204.19 new text begin after December 31, 2012. new text end 204.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon approval by the governing new text end 204.21 new text begin bodies of the city of Ely, St. Louis County, and Independent School District No. 696 with new text end 204.22 new text begin the requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and 645.021, new text end 204.23 new text begin subdivision 3. new text end 204.24    Sec. 17. new text begin DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY; TAX new text end 204.25 new text begin INCREMENT FINANCING DISTRICT. new text end 204.26     new text begin Subdivision 1. new text end new text begin Authorization. new text end new text begin Notwithstanding the provisions of any other law, new text end 204.27 new text begin the Dakota County Community Development Agency may establish a redevelopment tax new text end 204.28 new text begin increment financing district comprised of the properties that (1) were included in the CDA new text end 204.29 new text begin 10 Robert Street and Smith Avenue district in the city of West St. Paul, and (2) were not new text end 204.30 new text begin decertified before July 1, 2012. The district created under this section terminates no later new text end 204.31 new text begin than December 31, 2023. new text end 204.32     new text begin Subd. 2. new text end new text begin Special rules. new text end new text begin The requirements for qualifying a redevelopment district new text end 204.33 new text begin under Minnesota Statutes, section 469.174, subdivision 10, do not apply to parcels located new text end 205.1 new text begin within the district. Minnesota Statutes, section 469.176, subdivision 4j, do not apply to the new text end 205.2 new text begin district. The original tax capacity of the district is $93,239. new text end 205.3     new text begin Subd. 3. new text end new text begin Authorized expenditures. new text end new text begin Tax increment from the district may be new text end 205.4 new text begin expended to pay for any eligible activities authorized by Minnesota Statutes, chapter 469, new text end 205.5 new text begin within the redevelopment area that includes the district provided that the boundaries of the new text end 205.6 new text begin redevelopment area may not be expanded to add new area after April 1, 2013. All such new text end 205.7 new text begin expenditures are deemed to be activities within the district under Minnesota Statutes, new text end 205.8 new text begin section 469.1763, subdivisions 2 and 4. new text end 205.9     new text begin Subd. 4. new text end new text begin Adjusted net tax capacity. new text end new text begin The captured tax capacity of the district must new text end 205.10 new text begin be included in the adjusted net tax capacity of the city, county, and school district for the new text end 205.11 new text begin purposes of determining local government aid, education aid, and county program aid. new text end 205.12 new text begin The county auditor shall report to the commissioner of revenue the amount of the captured new text end 205.13 new text begin tax capacity for the district at the time the assessment abstracts are filed. new text end 205.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon compliance by the governing new text end 205.15 new text begin body of the Dakota County Community Development Agency with the requirements of new text end 205.16 new text begin Minnesota Statutes, section 645.021, subdivision 3. new text end 205.17    Sec. 18. new text begin CITY OF APPLE VALLEY; TAX INCREMENT FINANCING new text end 205.18 new text begin DISTRICT. new text end 205.19     new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin (a) For the purposes of this section, the following terms new text end 205.20 new text begin have the meanings given to them. new text end 205.21 new text begin (b) "City" means the city of Apple Valley. new text end 205.22 new text begin (c) "Project area" means the following parcels: parcel numbers 01-03500-25-010, new text end 205.23 new text begin 01-03500-03-011, 01-03500-02-010, 01-03500-52-011, 01-03500-78-011, new text end 205.24 new text begin 01-03500-77-014, 01-03500-75-010, 01-03400-05-050, new text end 205.25 new text begin (d) "Soil deficiency district" means a type of tax increment financing district new text end 205.26 new text begin consisting of a portion of the project area in which the city finds by resolution that the new text end 205.27 new text begin following conditions exist: new text end 205.28 new text begin (1) unusual terrain or soil deficiencies that occurred over 70 percent of the acreage in new text end 205.29 new text begin the district require substantial filling, grading, or other physical preparation for use; and new text end 205.30 new text begin (2) the estimated cost of the physical preparation under clause (1), but excluding new text end 205.31 new text begin costs directly related to roads as defined in Minnesota Statutes, section 160.01, and local new text end 205.32 new text begin improvements as described in Minnesota Statutes, sections 429.021, subdivision 1, other new text end 206.1 new text begin than clauses (8) to (10), and 430.01, exceeds the fair market value of the land before new text end 206.2 new text begin completion of the preparation. new text end 206.3     new text begin Subd. 2. new text end new text begin Special rules. new text end new text begin (a) If the city elects, upon the adoption of the tax increment new text end 206.4 new text begin financing plan for a district, the rules under this section apply to a redevelopment new text end 206.5 new text begin district, renewal and renovation district, soil condition district, or soil deficiency district new text end 206.6 new text begin established by the city or a development authority of the city in the project area. The city, new text end 206.7 new text begin or a development authority acting on its behalf, may establish one or more soils deficiency new text end 206.8 new text begin districts within the project area. new text end 206.9 new text begin (b) Prior to or upon the adoption of the first tax increment plan subject to the special new text end 206.10 new text begin rules under this subdivision, the city must find by resolution that parcels consisting new text end 206.11 new text begin of at least 70 percent of the acreage of the project area, excluding street and railroad new text end 206.12 new text begin rights-of-way, are characterized by one or more of the following conditions: new text end 206.13 new text begin (1) peat or other soils with geotechnical deficiencies that impair development of new text end 206.14 new text begin commercial buildings or infrastructure; new text end 206.15 new text begin (2) soils or terrain that requires substantial filling in order to permit the development new text end 206.16 new text begin of commercial buildings or infrastructure; new text end 206.17 new text begin (3) landfills, dumps, or similar deposits of municipal or private waste; new text end 206.18 new text begin (4) quarries or similar resource extraction sites; new text end 206.19 new text begin (5) floodway; and new text end 206.20 new text begin (6) substandard buildings, within the meaning of Minnesota Statutes, section new text end 206.21 new text begin 469.174, subdivision 10. new text end 206.22 new text begin (c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by new text end 206.23 new text begin the relevant condition if at least 60 percent of the area of the parcel contains the relevant new text end 206.24 new text begin condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by new text end 206.25 new text begin substandard buildings if substandard buildings occupy at least 30 percent of the area new text end 206.26 new text begin of the parcel. new text end 206.27 new text begin (d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, is new text end 206.28 new text begin extended to ten years for any district, and the period under Minnesota Statutes, section new text end 206.29 new text begin 469.1763, subdivision 4, is extended to 11 years. new text end 206.30 new text begin (e) Notwithstanding any provision to the contrary in Minnesota Statutes, section new text end 206.31 new text begin 469.1763, subdivision 2, paragraph (a), not more than 80 percent of the total revenue new text end 206.32 new text begin derived from tax increments paid by properties in any district, measured over the life of new text end 206.33 new text begin the district, may be expended on activities outside the district but within the project area. new text end 206.34 new text begin (f) For a soil deficiency district: new text end 206.35 new text begin (1) increments may be collected through 20 years after the receipt by the authority of new text end 206.36 new text begin the first increment from the district; and new text end 207.1 new text begin (2) except as otherwise provided in this subdivision, increments may be used only to: new text end 207.2 new text begin (i) acquire parcels on which the improvements described in item (ii) will occur; new text end 207.3 new text begin (ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the new text end 207.4 new text begin additional cost of installing public improvements directly caused by the deficiencies; and new text end 207.5 new text begin (iii) pay for the administrative expenses of the authority allocable to the district. new text end 207.6 new text begin (g) The authority to approve tax increment financing plans to establish tax increment new text end 207.7 new text begin financing districts under this section expires December 31, 2022. new text end 207.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon compliance with Minnesota new text end 207.9 new text begin Statutes, section 645.021, subdivision 3. new text end 207.10    Sec. 19. new text begin CITY OF APPLE VALLEY; USE OF TAX INCREMENT FINANCING. new text end 207.11     new text begin Subdivision 1. new text end new text begin Developments consisting of building and ancillary facilities. new text end 207.12     new text begin Notwithstanding Minnesota Statutes, section 469.176, subdivisions 4c and 4m, the city of new text end 207.13 new text begin Apple Valley may use tax increment financing to provide improvements, loans, subsidies, new text end 207.14 new text begin grants, interest rate subsidies, or assistance in any form to developments consisting of new text end 207.15 new text begin buildings and ancillary facilities, if all of the following conditions are met: new text end 207.16     new text begin (1) the city of Apple Valley finds that the project will create or retain jobs in new text end 207.17 new text begin Minnesota, including construction jobs; new text end 207.18     new text begin (2) the city of Apple Valley finds that construction of the project will not commence new text end 207.19 new text begin before July 1, 2014, without the use of tax increment financing; new text end 207.20     new text begin (3) the request for certification of the district is made no later than June 30, 2014; new text end 207.21     new text begin (4) construction of the project begins no later than July 1, 2014; and new text end 207.22     new text begin (5) for development of housing, construction of the project begins no later than new text end 207.23 new text begin December 31, 2013. new text end 207.24     new text begin Subd. 2. new text end new text begin Extension of authority to spend tax increments. new text end new text begin Notwithstanding the new text end 207.25 new text begin time limits in Minnesota Statutes, section 469.176, subdivision 4m, the city of Apple new text end 207.26 new text begin Valley has the authority to spend tax increments under Minnesota Statutes, section new text end 207.27 new text begin 469.176, subdivision 4m, until December 31, 2014. new text end 207.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon approval by the governing new text end 207.29 new text begin body of the city of Apple Valley and timely compliance with Minnesota Statutes, section new text end 207.30 new text begin 645.021, subdivision 3. new text end 207.31    Sec. 20. new text begin CITY OF MINNEAPOLIS; STREETCAR FINANCING. new text end 208.1     new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin (a) For purposes of this section, the following terms new text end 208.2 new text begin have the meanings given them. new text end 208.3     new text begin (b) "City" means the city of Minneapolis. new text end 208.4     new text begin (c) "County" means Hennepin County. new text end 208.5     new text begin (d) "District" means the areas certified by the city under subdivision 2 for collection new text end 208.6 new text begin of value capture taxes. new text end 208.7     new text begin (e) "Project area" means the area including one city block on either side of a streetcar new text end 208.8 new text begin line designated by the city to serve the downtown and adjacent neighborhoods of the city. new text end 208.9     new text begin Subd. 2. new text end new text begin Authority to establish district. new text end new text begin (a) The governing body of the city may, by new text end 208.10 new text begin resolution, establish a value capture district consisting of some or all of the taxable parcels new text end 208.11 new text begin located within one or more of the following areas of the city, as described in the resolution: new text end 208.12     new text begin (1) the area bounded by Nicollet Avenue on the west, 16th Street East on the south, new text end 208.13 new text begin First Avenue South on the east, and 14th Street East on the north; new text end 208.14     new text begin (2) the area bounded by Spruce Place on the west, 14th Street West on the south, new text end 208.15 new text begin LaSalle Avenue on the east, and Grant Street West on the north; new text end 208.16     new text begin (3) the area bounded by Nicollet Avenue or Mall on the west, Fifth Street South on new text end 208.17 new text begin the south, Marquette Avenue on the east, and Fourth Street South on the north; new text end 208.18     new text begin (4) the area bounded by First Avenue North on the west, Washington Avenue on the new text end 208.19 new text begin south, Hennepin Avenue on the east, and Second Street North on the north; and new text end 208.20 new text begin (5) the area bounded by Fifth Street North East on the west, Central Avenue North new text end 208.21 new text begin East on the southeast, Sixth Street North East on the east, Hennepin Avenue East on the new text end 208.22 new text begin south, and First Avenue North East on the north. new text end 208.23     new text begin (b) The city may establish the district and the project area only after holding a public new text end 208.24 new text begin hearing on its proposed creation after publishing notice of the hearing and the proposal at new text end 208.25 new text begin least once not less than ten days nor more than 30 days before the date of the hearing. new text end 208.26     new text begin Subd. 3. new text end new text begin Calculation of value capture district; administrative provisions. new text end new text begin (a) If new text end 208.27 new text begin the city establishes a value capture district under subdivision 2, the city shall request the new text end 208.28 new text begin county auditor to certify the district for calculation of the district's tax revenues. new text end 208.29     new text begin (b) For purposes of calculating the tax revenues of the district, the county auditor new text end 208.30 new text begin shall treat the district as if it were a request for certification of a tax increment financing new text end 208.31 new text begin district under the provisions of Minnesota Statutes, section 469.177, subdivision 1, new text end 208.32 new text begin and shall calculate the tax revenues of the district for each year of its duration under new text end 208.33 new text begin subdivision 5 as equaling the amount of tax increment that would be computed by new text end 208.34 new text begin applying the provisions of Minnesota Statutes, section 469.177, subdivisions 1, 2, and new text end 208.35 new text begin 3, to determine captured tax capacity and multiplying by the current tax rate, excluding new text end 209.1 new text begin the state general tax rate. The city shall provide the county auditor with the necessary new text end 209.2 new text begin information to certify the district, including the option for calculating revenues derived new text end 209.3 new text begin from the areawide tax rate under Minnesota Statutes, chapter 473F. new text end 209.4     new text begin (c) The county auditor shall pay to the city at the same times provided for settlement new text end 209.5 new text begin of taxes and payment of tax increments the tax revenues of the district. The city must use new text end 209.6 new text begin the tax revenues as provided under subdivision 4. new text end 209.7     new text begin Subd. 4. new text end new text begin Permitted uses of district tax revenues. new text end new text begin (a) In addition to paying for new text end 209.8 new text begin reasonable administrative costs of the district, the city may spend tax revenues of the new text end 209.9 new text begin district for property acquisition, improvements, and equipment to be used for operations new text end 209.10 new text begin within the project area, along with related costs, for: new text end 209.11     new text begin (1) planning, design, and engineering services related to the construction of the new text end 209.12 new text begin streetcar line; new text end 209.13     new text begin (2) acquiring property for, constructing, and installing a streetcar line; new text end 209.14     new text begin (3) acquiring and maintaining equipment and rolling stock and related facilities, such new text end 209.15 new text begin as maintenance facilities, which need not be located in the project area; new text end 209.16     new text begin (4) acquiring, constructing, or improving transit stations; and new text end 209.17     new text begin (5) acquiring or improving public space, including the construction and installation new text end 209.18 new text begin of improvements to streets and sidewalks, decorative lighting and surfaces, and plantings new text end 209.19 new text begin related to the streetcar line. new text end 209.20     new text begin (b) The city may issue bonds or other obligations under Minnesota Statutes, chapter new text end 209.21 new text begin 475, without an election, to fund acquisition or improvement of property of a capital new text end 209.22 new text begin nature authorized by this section, including any costs of issuance. The city may also issue new text end 209.23 new text begin bonds or other obligations to refund those bonds or obligations. Payment of principal new text end 209.24 new text begin and interest on the bonds or other obligations issued under this paragraph is a permitted new text end 209.25 new text begin use of the district's tax revenues. new text end 209.26     new text begin (c) Tax revenues of the district may not be used for the operation of the streetcar line. new text end 209.27     new text begin Subd. 5. new text end new text begin Duration of the district. new text end new text begin A district established under this section is limited new text end 209.28 new text begin to the lesser of (1) 25 years of tax revenues, or (2) the time necessary to collect tax revenues new text end 209.29 new text begin equal to the amount of the capital costs permitted under subdivision 4 or the amount needed new text end 209.30 new text begin to pay or defease bonds or other obligations issued under subdivision 4, whichever is later. new text end 209.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 209.32    Sec. 21. new text begin CITY OF MAPLEWOOD; TAX INCREMENT FINANCING new text end 209.33 new text begin DISTRICT; SPECIAL RULES. new text end 210.1     new text begin (a) If the city of Maplewood elects, upon the adoption of a tax increment financing new text end 210.2 new text begin plan for a district, the rules under this section apply to one or more redevelopment new text end 210.3 new text begin tax increment financing districts established by the city or the economic development new text end 210.4 new text begin authority of the city. The area within which the redevelopment tax increment districts may new text end 210.5 new text begin be created is parcel 362922240002 (the "parcel") or any replatted parcels constituting a new text end 210.6 new text begin part of the parcel and the adjacent rights-of-way. For purposes of this section, the parcel is new text end 210.7 new text begin the "3M Renovation and Retention Project Area" or "project area." new text end 210.8     new text begin (b) The requirements for qualifying redevelopment tax increment districts under new text end 210.9 new text begin Minnesota Statutes, section 469.174, subdivision 10, do not apply to the parcel, which is new text end 210.10 new text begin deemed eligible for inclusion in a redevelopment tax increment district. new text end 210.11     new text begin (c) The 90 percent rule under Minnesota Statutes, section 469.176, subdivision new text end 210.12 new text begin 4j, does not apply to the parcel. new text end 210.13     new text begin (d) The expenditures outside district rule under Minnesota Statutes, section new text end 210.14 new text begin 469.1763, subdivision 2, does not apply; the five-year rule under Minnesota Statutes, new text end 210.15 new text begin section 469.1763, subdivision 3, is extended to ten years; and expenditures must only new text end 210.16 new text begin be made within the project area. new text end 210.17     new text begin (e) If, after one year from the date of certification of the original net tax capacity new text end 210.18 new text begin of the tax increment district, no demolition, rehabilitation, or renovation of property has new text end 210.19 new text begin been commenced on a parcel located within the tax increment district, no additional tax new text end 210.20 new text begin increment may be taken from that parcel, and the original net tax capacity of the parcel new text end 210.21 new text begin shall be excluded from the original net tax capacity of the tax increment district. If 3M new text end 210.22 new text begin Company subsequently commences demolition, rehabilitation, or renovation, the authority new text end 210.23 new text begin shall certify to the county auditor that the activity has commenced, and the county auditor new text end 210.24 new text begin shall certify the net tax capacity thereof as most recently certified by the commissioner new text end 210.25 new text begin of revenue and add it to the original net tax capacity of the tax increment district. The new text end 210.26 new text begin authority must submit to the county auditor evidence that the required activity has taken new text end 210.27 new text begin place for each parcel in the district. new text end 210.28     new text begin (f) The authority to approve a tax increment financing plan and to establish a tax new text end 210.29 new text begin increment financing district under this section expires December 31, 2018. new text end 210.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon approval by the governing new text end 210.31 new text begin body of the city of Maplewood and upon compliance with Minnesota Statutes, section new text end 210.32 new text begin 645.021, subdivision 3. new text end 210.33    Sec. 22. new text begin CITY OF BLOOMINGTON; TAX INCREMENT FINANCING. new text end 211.1     new text begin Subdivision 1. new text end new text begin Addition of property to Tax Increment Financing District new text end 211.2 new text begin No. 1-G. new text end new text begin (a) Notwithstanding the provisions of Minnesota Statutes, section 469.175, new text end 211.3 new text begin subdivision 4, or any other law to the contrary, the governing bodies of the Port Authority new text end 211.4 new text begin of the city of Bloomington and the city of Bloomington may elect to eliminate the real new text end 211.5 new text begin property north of the existing building line on Lot 1, Block 1, Mall of America 7th new text end 211.6 new text begin Addition, exclusive of Lots 2 and 3 from Tax Increment Financing District No. 1-C new text end 211.7 new text begin within Industrial Development District No. 1 Airport South in the city of Bloomington, new text end 211.8 new text begin Minnesota, and expand the boundaries of Tax Increment Financing District No. 1-G new text end 211.9 new text begin to include that property. new text end 211.10     new text begin (b) If the city elects to transfer parcels under this authority, the county auditor shall new text end 211.11 new text begin transfer the original tax capacity of the affected parcels from Tax Increment Financing new text end 211.12 new text begin District No. 1-C to Tax Increment Financing District No. 1-G. new text end 211.13     new text begin Subd. 2. new text end new text begin Authority to extend duration limit; computation of increment. new text end new text begin (a) new text end 211.14 new text begin Notwithstanding Minnesota Statutes, section 469.176, or Laws 1996, chapter 464, article new text end 211.15 new text begin 1, section 8, or any other law to the contrary, the city of Bloomington and its port authority new text end 211.16 new text begin may extend the duration limits of Tax Increment Financing Districts No. 1-C and No. new text end 211.17 new text begin 1-G through December 31, 2034. new text end 211.18     new text begin (b) Effective for property taxes payable in 2017 through 2034, the captured tax new text end 211.19 new text begin capacity of Tax Increment Financing District No. 1-C must be included in computing the new text end 211.20 new text begin tax rates of each local taxing district and the tax increment equals only the amount of tax new text end 211.21 new text begin computed under Minnesota Statutes, section 473F.08, subdivision 3c, paragraph (c). new text end 211.22     new text begin (c) Effective for property taxes payable in 2019 through 2034, the captured tax new text end 211.23 new text begin capacity of Tax Increment Financing District No. 1-G must be included in computing the new text end 211.24 new text begin tax rates of each local taxing district and the tax increment for the district equals only new text end 211.25 new text begin the amount of tax computed under Minnesota Statutes, section 473F.08, subdivision new text end 211.26 new text begin 3c, paragraph (c). new text end 211.27     new text begin Subd. 3. new text end new text begin Treatment of increment. new text end new text begin Increments received under the provisions new text end 211.28 new text begin of subdivision 2, paragraph (b) or (c), and Minnesota Statutes, section 473F.08, new text end 211.29 new text begin subdivision 3c, are deemed to be tax increments of Tax Increment Financing District No. new text end 211.30 new text begin 1-G, notwithstanding any law to the contrary, and without regard to whether they are new text end 211.31 new text begin attributable to captured tax capacity of Tax Increment Financing District No. 1-C. new text end 211.32     new text begin Subd. 4. new text end new text begin Condition. new text end new text begin The authority under this section expires and Tax Increment new text end 211.33 new text begin Financing Districts No. 1-C and No. 1-G must be decertified for taxes payable in 2024 new text end 211.34 new text begin and thereafter, if the total estimated market value of improvements for parcels located in new text end 212.1 new text begin Tax Increment Financing District No. 1-G, as modified, do not exceed $100,000,000 new text end 212.2 new text begin by taxes payable in 2023. new text end 212.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon compliance of the governing new text end 212.4 new text begin body of the city of Bloomington with the requirements of Minnesota Statutes, section new text end 212.5 new text begin 645.021, subdivision 3, but only if the city enters into a binding written agreement with new text end 212.6 new text begin the Metropolitan Council to repair and restore, or to replace, the old Cedar Avenue bridge new text end 212.7 new text begin for use by bicycle commuters and recreational users. This section is effective without new text end 212.8 new text begin approval of the county and school district under Minnesota Statutes, section 469.1782, new text end 212.9 new text begin subdivision 2. The legislature finds that the county and school district are not "affected new text end 212.10 new text begin local government units" within the meaning of Minnesota Statutes, section 469.1782, new text end 212.11 new text begin because the provision allowing extended collection of increment by the tax increment new text end 212.12 new text begin financing districts does not affect their tax bases and tax rates dissimilarly to other counties new text end 212.13 new text begin and school districts in the metropolitan area. new text end 212.14    Sec. 23. new text begin CITY OF BLOOMINGTON; OLD CEDAR AVENUE BRIDGE. new text end 212.15     new text begin (a) Notwithstanding any law to the contrary, the city of Bloomington shall transfer new text end 212.16 new text begin from the tax increment financing accounts for its Tax Increment Financing District No. new text end 212.17 new text begin 1-C and Tax Increment Financing District No. 1-G an amount equal to the tax increment new text end 212.18 new text begin for each district that is computed under the provisions of Minnesota Statutes, section new text end 212.19 new text begin 473F.08, subdivision 3c, for taxes payable in 2014 to an account or fund established for new text end 212.20 new text begin the repair, restoration, or replacement of the Old Cedar Avenue bridge for use by bicycle new text end 212.21 new text begin commuters and recreational users. The city is authorized to and must use the transferred new text end 212.22 new text begin funds to complete the repair, renovation, or replacement of the bridge. new text end 212.23     new text begin (b) No signs, plaques, or markers acknowledging or crediting donations for, new text end 212.24 new text begin sponsorships of, or naming rights may be posted on or in the vicinity of the Old Cedar new text end 212.25 new text begin Avenue bridge. new text end 212.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon compliance by the city of new text end 212.27 new text begin Bloomington with the requirements of Minnesota Statutes, section 645.021, subdivision 3. new text end 212.28ARTICLE 10 212.29DESTINATION MEDICAL CENTER 212.30    Section 1. Minnesota Statutes 2012, section 13.792, is amended to read: 212.3113.792 PRIVATE DONOR GIFT DATA. 212.32The following data maintained by the Minnesota Zoological Garden, the University 212.33of Minnesota, the Minnesota State Colleges and Universities, the Regional Parks 213.1Foundation of the Twin Cities, State Services for the Blind, new text begin the Destination Medical new text end 213.2 new text begin Center Corporation established pursuant to section 469.41, new text end and any related entity subject 213.3to chapter 13 are classified as private or nonpublic: 213.4(1) research information about prospects and donors gathered to aid in determining 213.5appropriateness of solicitation and level of gift request; 213.6(2) specific data in prospect lists that would identify prospects to be solicited, dollar 213.7amounts to be requested, and name of solicitor; 213.8(3) portions of solicitation letters and proposals that identify the prospect being 213.9solicited and the dollar amount being requested; 213.10(4) letters, pledge cards, and other responses received from donors regarding 213.11prospective gifts in response to solicitations; 213.12(5) portions of thank-you letters and other gift acknowledgment communications 213.13that would identify the name of the donor and the specific amount of the gift, pledge, 213.14or pledge payment; 213.15(6) donor financial or estate planning information, or portions of memoranda, letters, 213.16or other documents commenting on any donor's financial circumstances; and 213.17(7) data detailing dates of gifts, payment schedule of gifts, form of gifts, and specific 213.18gift amounts made by donors. 213.19Names of donors and gift ranges are public data. 213.20    Sec. 2. Minnesota Statutes 2012, section 297A.71, is amended by adding a subdivision 213.21to read: 213.22     new text begin Subd. 48. new text end new text begin Construction materials, public infrastructure related to the new text end 213.23 new text begin destination medical center. new text end new text begin Materials and supplies used in, and equipment incorporated new text end 213.24 new text begin into, the construction and improvement of publicly owned buildings and infrastructure new text end 213.25 new text begin included in the development plan adopted under section 469.43, and financed with public new text end 213.26 new text begin funds, are exempt. new text end 213.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 213.28 new text begin June 30, 2015, and before July 1, 2049. new text end 213.29    Sec. 3. new text begin [469.40] DEFINITIONS. new text end 213.30     new text begin Subdivision 1. new text end new text begin Application. new text end new text begin For the purposes of sections 469.40 to 469.47, the new text end 213.31 new text begin terms defined in this section have the meanings given them. new text end 213.32     new text begin Subd. 2. new text end new text begin City. new text end new text begin "City" means the city of Rochester. new text end 213.33     new text begin Subd. 3. new text end new text begin County. new text end new text begin "County" means Olmsted County. new text end 214.1     new text begin Subd. 4. new text end new text begin Destination Medical Center Corporation, corporation, DMCC. new text end 214.2 new text begin "Destination Medical Center Corporation," "corporation," or "DMCC" means the new text end 214.3 new text begin nonprofit corporation created by the city as provided in section 469.41, and organized new text end 214.4 new text begin under chapter 317A. new text end 214.5     new text begin Subd. 5. new text end new text begin Destination Medical Center Development District. new text end new text begin "Destination medical new text end 214.6 new text begin center development district" or "development district" means a geographic area in the city new text end 214.7 new text begin identified in the DMCC development plan in which public infrastructure projects are new text end 214.8 new text begin implemented. new text end 214.9     new text begin Subd. 6. new text end new text begin Development plan. new text end new text begin "Development plan" means the plan adopted by new text end 214.10 new text begin the DMCC under section 469.43. new text end 214.11     new text begin Subd. 7. new text end new text begin Financial interest. new text end new text begin "Financial interest" means a person's direct or indirect new text end 214.12 new text begin ownership or investment interest or compensation arrangement, whether through business, new text end 214.13 new text begin investment, or family, including spouse, children and stepchildren, and other relatives new text end 214.14 new text begin living with the person, as follows: new text end 214.15 new text begin (1) ownership or investment interest in the development, acquisition, or construction new text end 214.16 new text begin of a project in the development district; new text end 214.17 new text begin (2) compensation arrangement with respect to the development, acquisition, or new text end 214.18 new text begin construction of a project in the development district; or new text end 214.19 new text begin (3) potential ownership or investment interest in, or compensation arrangement with new text end 214.20 new text begin respect to, the development, acquisition, or construction of a project in the development new text end 214.21 new text begin district. new text end 214.22     new text begin Subd. 8. new text end new text begin Medical business entity. new text end new text begin "Medical business entity" means a medical new text end 214.23 new text begin business entity with its principal place of business in the city that, as of the effective date new text end 214.24 new text begin of this section, together with all business entities of which it is the sole member or sole new text end 214.25 new text begin shareholder, collectively employs more than 30,000 persons in the state. new text end 214.26     new text begin Subd. 9. new text end new text begin Nonprofit economic development agency, agency. new text end new text begin "Nonprofit economic new text end 214.27 new text begin development agency" or "agency" means the nonprofit agency required under section new text end 214.28 new text begin 469.43 to provide experience and expertise to the DMCC for purposes of developing and new text end 214.29 new text begin marketing the destination medical center. new text end 214.30     new text begin Subd. 10. new text end new text begin Project. new text end new text begin "Project" means a project to implement the development plan, new text end 214.31 new text begin whether public or private. new text end 214.32     new text begin Subd. 11. new text end new text begin Public infrastructure project. new text end new text begin (a) "Public infrastructure project" means new text end 214.33 new text begin a project financed in part or in whole with public money in order to support the medical new text end 214.34 new text begin business entity's development plans, as identified in the DMCC development plan. A new text end 214.35 new text begin public infrastructure project may: new text end 214.36 new text begin (1) acquire real property and other assets associated with the real property; new text end 215.1 new text begin (2) demolish, repair, or rehabilitate buildings; new text end 215.2 new text begin (3) remediate land and buildings as required to prepare the property for acquisition new text end 215.3 new text begin or development; new text end 215.4 new text begin (4) install, construct, or reconstruct elements of public infrastructure required to new text end 215.5 new text begin support the overall development of the destination medical center development district new text end 215.6 new text begin including, but not limited to, streets, roadways, utilities systems and related facilities, new text end 215.7 new text begin utility relocations and replacements, network and communication systems, streetscape new text end 215.8 new text begin improvements, drainage systems, sewer and water systems, subgrade structures and new text end 215.9 new text begin associated improvements, landscaping, façade construction and restoration, wayfinding new text end 215.10 new text begin and signage, and other components of community infrastructure; new text end 215.11 new text begin (5) acquire, construct or reconstruct, and equip parking facilities and other facilities new text end 215.12 new text begin to encourage intermodal transportation and public transit; new text end 215.13 new text begin (6) install, construct or reconstruct, furnish, and equip parks, cultural, and new text end 215.14 new text begin recreational facilities, facilities to promote tourism and hospitality, conferencing and new text end 215.15 new text begin conventions, broadcast and related multimedia infrastructure; new text end 215.16 new text begin (7) make related site improvements including, without limitation, excavation, new text end 215.17 new text begin earth retention, soil stabilization and correction, and site improvements to support the new text end 215.18 new text begin destination medical center development district; new text end 215.19 new text begin (8) prepare land for private development and to sell or lease land; new text end 215.20 new text begin (9) costs of providing relocation benefits to occupants of acquired properties; and new text end 215.21 new text begin (10) construct and equip all or a portion of one or more suitable structures on land new text end 215.22 new text begin owned by the city for sale or lease to private development; provided, however, that the new text end 215.23 new text begin portion of any structure directly financed by the city as a public infrastructure project must new text end 215.24 new text begin not be sold or leased to a medical business entity. new text end 215.25 new text begin (b) A public infrastructure project is not a business subsidy under section 116J.993. new text end 215.26     new text begin Subd. 12. new text end new text begin Year. new text end new text begin "Year" means a calendar year, except where otherwise provided. new text end 215.27    Sec. 4. new text begin [469.41] DESTINATION MEDICAL CENTER CORPORATION new text end 215.28 new text begin ESTABLISHED. new text end 215.29     new text begin Subdivision 1. new text end new text begin DMCC created. new text end new text begin The city must establish a destination medical new text end 215.30 new text begin center corporation as a nonprofit corporation under chapter 317A to provide the city with new text end 215.31 new text begin expertise in preparing and implementing the development plan to establish the city as a new text end 215.32 new text begin destination medical center. Except as provided in sections 469.40 to 469.47, the nonprofit new text end 215.33 new text begin corporation is not subject to laws governing the city. new text end 215.34     new text begin Subd. 2. new text end new text begin Membership; quorum. new text end new text begin (a) The corporation's governing board consists new text end 215.35 new text begin of eight members appointed, as follows: new text end 216.1 new text begin (1) the mayor of the city, or the mayor's designee, subject to approval by the city new text end 216.2 new text begin council; new text end 216.3 new text begin (2) the city council president, or the city council president's designee, subject new text end 216.4 new text begin to approval by the city council; new text end 216.5     new text begin (3) the chair or member of the county board, appointed by the county board; new text end 216.6     new text begin (4) a representative of the medical business entity appointed by and serving at the new text end 216.7 new text begin pleasure of the medical business entity; and new text end 216.8     new text begin (5) four members appointed by the governor, subject to confirmation by the senate. new text end 216.9 new text begin (b) Appointing authorities must make their respective appointments as soon as new text end 216.10 new text begin practicable after the effective date of this section, but no later than 60 days after enactment new text end 216.11 new text begin of this section. new text end 216.12 new text begin (c) A quorum of the board is six members. new text end 216.13     new text begin Subd. 3. new text end new text begin Terms. new text end new text begin (a) A member first appointed after the effective date of this section new text end 216.14 new text begin under subdivision 2, paragraph (a), clauses (1), (2), and (3), serves for a term coterminous new text end 216.15 new text begin with the term of the elected office, but may be reappointed. new text end 216.16     new text begin (b) Two members first appointed after the effective date of this section under new text end 216.17 new text begin subdivision 2, paragraph (a), clause (5), serve from the date of appointment until the first new text end 216.18 new text begin Tuesday after the first Monday in January 2017, and two members first appointed after the new text end 216.19 new text begin effective date of this section under subdivision 2, paragraph (a), clause (5), serve from new text end 216.20 new text begin the date of appointment until the first Tuesday after the first Monday in January 2020. new text end 216.21 new text begin Thereafter, members appointed by the governor serve six-year terms. new text end 216.22     new text begin Subd. 4. new text end new text begin Vacancies. new text end new text begin A vacancy occurs as provided in section 351.02 or upon new text end 216.23 new text begin a member's removal under subdivision 7. A vacancy on the board must be filled by new text end 216.24 new text begin the appointing authority for the balance of the term in the same manner as a regular new text end 216.25 new text begin appointment. new text end 216.26     new text begin Subd. 5. new text end new text begin Chair. new text end new text begin The board must elect a chair from among the governor's appointees. new text end 216.27 new text begin The governor must convene the first meeting within 30 days of completion of all new text end 216.28 new text begin appointments to the board. new text end 216.29     new text begin Subd. 6. new text end new text begin Pay. new text end new text begin Members must be compensated as provided in section 15.0575, new text end 216.30 new text begin subdivision 3. For the purposes of this subdivision, the member representing the medical new text end 216.31 new text begin business entity shall be treated as if an employee of a political subdivision. All money new text end 216.32 new text begin paid for compensation or reimbursement must be paid out of the corporation's budget. new text end 216.33     new text begin Subd. 7. new text end new text begin Removal for cause. new text end new text begin A member may be removed by the board for new text end 216.34 new text begin inefficiency, neglect of duty, or misconduct in office. A member may be removed only new text end 216.35 new text begin after a hearing of the board. A copy of the charges must be given to the board member at new text end 216.36 new text begin least ten days before the hearing. The board member must be given an opportunity to be new text end 217.1 new text begin heard in person or by counsel at the hearing. When written charges have been submitted new text end 217.2 new text begin against a board member, the board may temporarily suspend the member. If the board finds new text end 217.3 new text begin that those charges have not been substantiated, the board member must be immediately new text end 217.4 new text begin reinstated. If a board member is removed, a record of the proceedings, together with the new text end 217.5 new text begin charges and findings, must be filed with the office of the appointing authority. new text end 217.6     new text begin Subd. 8. new text end new text begin Open meeting law; data practices. new text end new text begin Meetings of the corporation and any new text end 217.7 new text begin committee or subcommittee of the corporation are subject to the open meeting law in new text end 217.8 new text begin chapter 13D. The corporation is a government entity for purposes of chapter 13. new text end 217.9     new text begin Subd. 9. new text end new text begin Conflicts of interest. new text end new text begin Except for the member appointed by the medical new text end 217.10 new text begin business entity, a member must not be a director, officer, or employee of the medical new text end 217.11 new text begin business entity. A member must not participate in or vote on a decision of the corporation new text end 217.12 new text begin relating to any project authorized by or under consideration by the corporation in which new text end 217.13 new text begin the member has either a direct or indirect financial interest. No member may serve as a new text end 217.14 new text begin lobbyist, as defined under section 10A.01, subdivision 21. new text end 217.15     new text begin Subd. 10. new text end new text begin Public official. new text end new text begin A member of the corporation is a public official, as new text end 217.16 new text begin defined in section 10A.01, subdivision 35. new text end 217.17     new text begin Subd. 11. new text end new text begin Powers. new text end new text begin The corporation may exercise any other powers that are new text end 217.18 new text begin granted by its articles of incorporation and bylaws to the extent that those powers are not new text end 217.19 new text begin inconsistent with the provisions of sections 469.40 to 469.47. new text end 217.20     new text begin Subd. 12. new text end new text begin Contract for services. new text end new text begin (a) The corporation may contract for the services new text end 217.21 new text begin of the nonprofit economic development agency, financial advisors, other consultants, new text end 217.22 new text begin agents, public accountants, legal counsel, and other persons needed to perform its duties new text end 217.23 new text begin and exercise its powers. The corporation may contract with the city or county to provide new text end 217.24 new text begin administrative, clerical, and accounting services to the corporation. new text end 217.25 new text begin (b) The corporation must contract with the nonprofit agency for the services new text end 217.26 new text begin enumerated in section 469.43, subdivision 6, paragraph (a). The requirement to contract new text end 217.27 new text begin with the nonprofit agency does not limit the corporation's authority to contract with other new text end 217.28 new text begin providers for the services. new text end 217.29     new text begin Subd. 13. new text end new text begin DMCC approval of projects. new text end new text begin A project must be approved by the new text end 217.30 new text begin corporation before it is proposed to the city. The corporation must review the project new text end 217.31 new text begin proposed for consistency with the adopted development plan. new text end 217.32     new text begin Subd. 14. new text end new text begin Dissolution. new text end new text begin The city must provide for the terms for dissolution of the new text end 217.33 new text begin corporation in the articles of incorporation. new text end 217.34    Sec. 5. new text begin [469.42] OFFICERS; DUTIES; ORGANIZATIONAL MATTERS. new text end 218.1     new text begin Subdivision 1. new text end new text begin Bylaws, rules, seal. new text end new text begin The corporation may adopt bylaws and rules of new text end 218.2 new text begin procedure and may adopt an official seal. new text end 218.3     new text begin Subd. 2. new text end new text begin Officers. new text end new text begin The corporation must annually elect a treasurer. The chair must new text end 218.4 new text begin appoint a secretary and assistant treasurer. The secretary and assistant treasurer need new text end 218.5 new text begin not, but may, be members of the board. new text end 218.6     new text begin Subd. 3. new text end new text begin Duties and powers. new text end new text begin The officers have the usual duties and powers of their new text end 218.7 new text begin offices. They may be given other duties and powers by the corporation. The corporation new text end 218.8 new text begin must establish and maintain a Web site. new text end 218.9     new text begin Subd. 4. new text end new text begin Treasurer's duties. new text end new text begin The treasurer: new text end 218.10 new text begin (1) must receive and is responsible for corporation money; new text end 218.11 new text begin (2) is responsible for the acts of the assistant treasurer; new text end 218.12 new text begin (3) must disburse corporation money by check or electronic procedures; new text end 218.13 new text begin (4) must keep an account of the source of all receipts, and of the nature, purpose, and new text end 218.14 new text begin authority of all disbursements; and new text end 218.15 new text begin (5) must file the corporation's detailed financial statement with its secretary at least new text end 218.16 new text begin once a year at times set by the authority. new text end 218.17     new text begin Subd. 5. new text end new text begin Secretary. new text end new text begin The secretary must perform duties as required by the board. new text end 218.18     new text begin Subd. 6. new text end new text begin Assistant treasurer. new text end new text begin The assistant treasurer has the powers and duties of new text end 218.19 new text begin the treasurer if the treasurer is absent or disabled. new text end 218.20    Sec. 6. new text begin [469.43] DEVELOPMENT PLAN. new text end 218.21     new text begin Subdivision 1. new text end new text begin Development plan; adoption by DMCC; notice; findings. new text end new text begin (a) The new text end 218.22 new text begin corporation, working with the city and the nonprofit economic development agency, must new text end 218.23 new text begin prepare and adopt a development plan. The corporation must hold a public hearing before new text end 218.24 new text begin adopting a development plan. At least 60 days before the hearing, the corporation must new text end 218.25 new text begin make copies of the proposed plan available to the public at the corporation and city offices new text end 218.26 new text begin during normal business hours, on the corporation's and city's Web site, and as otherwise new text end 218.27 new text begin determined appropriate by the corporation. At least ten days before the hearing, the new text end 218.28 new text begin corporation must publish notice of the hearing in the official newspaper of the city. The new text end 218.29 new text begin development plan may not be adopted, unless the corporation finds, by resolution, that: new text end 218.30 new text begin (1) the plan provides an outline for the development of the city as a destination new text end 218.31 new text begin medical center, and the plan is sufficiently complete, including the identification of planned new text end 218.32 new text begin and anticipated projects, to indicate its relationship to definite state and local objectives; new text end 218.33 new text begin (2) the proposed development affords maximum opportunity, consistent with the new text end 218.34 new text begin needs of the city, county, and state, for the development of the city by private enterprise new text end 218.35 new text begin as a destination medical center; new text end 219.1 new text begin (3) the proposed development conforms to the general plan for the development of new text end 219.2 new text begin the city and is consistent with the city comprehensive plan; new text end 219.3 new text begin (4) the plan includes: new text end 219.4 new text begin (i) strategic planning consistent with a destination medical center in the core areas of new text end 219.5 new text begin commercial research and technology, learning environment, hospitality and convention, new text end 219.6 new text begin sports and recreation, livable communities, including mixed-use urban development new text end 219.7 new text begin and neighborhood residential development, retail/dining/entertainment, and health and new text end 219.8 new text begin wellness; new text end 219.9 new text begin (ii) estimates of short- and long-range fiscal and economic impacts; new text end 219.10 new text begin (iii) a framework to identify and prioritize short- and long-term public investment new text end 219.11 new text begin and public infrastructure project development and to facilitate private investment new text end 219.12 new text begin and development, including the criteria and process for evaluating and underwriting new text end 219.13 new text begin development proposals; new text end 219.14 new text begin (iv) land use planning; new text end 219.15 new text begin (v) transportation and transit planning; new text end 219.16 new text begin (vi) operational planning required to support the medical center development new text end 219.17 new text begin district; and new text end 219.18 new text begin (vii) ongoing market research plans; and new text end 219.19 new text begin (5) the city has approved the plan. new text end 219.20 new text begin (b) The identification of planned and anticipated projects under paragraph (a), clause new text end 219.21 new text begin (1), must give priority to projects that will pay wages at least equal to the basic cost of living new text end 219.22 new text begin wage as calculated by the commissioner of employment and economic development for new text end 219.23 new text begin the county in which the project is located. The calculation of the basic cost of living wage new text end 219.24 new text begin must be done as provided for under section 116J.013, if enacted by the 2013 legislature. new text end 219.25     new text begin Subd. 2. new text end new text begin Development plan approval by city. new text end new text begin Section 15.99 does not apply to new text end 219.26 new text begin review and approval of the development plan. The city shall act on the development plan new text end 219.27 new text begin within 60 days following its submission by the corporation. The city may incorporate the new text end 219.28 new text begin development plan into the city's comprehensive plan. new text end 219.29     new text begin Subd. 3. new text end new text begin Subject to city requirements. new text end new text begin All projects are subject to the planning, new text end 219.30 new text begin zoning, sanitary, and building laws; ordinances; regulations; and land use plans that apply new text end 219.31 new text begin to the city. new text end 219.32     new text begin Subd. 4. new text end new text begin Modification of development plan. new text end new text begin The corporation may modify the new text end 219.33 new text begin development plan at any time. The corporation must update the development plan not less new text end 219.34 new text begin than every five years. A modification or update under this subdivision must be adopted by new text end 219.35 new text begin the corporation upon the notice and after the public hearing and findings required for the new text end 219.36 new text begin original adoption of the development plan, including approval by the city. new text end 220.1     new text begin Subd. 5. new text end new text begin Medical center development districts; creation; notice; findings. new text end new text begin As new text end 220.2 new text begin part of the development plan, the corporation may create and define the boundaries of new text end 220.3 new text begin medical center development districts and subdistricts at any place or places within the new text end 220.4 new text begin city. Projects may be undertaken within defined medical center development districts new text end 220.5 new text begin consistent with the development plan. new text end 220.6     new text begin Subd. 6. new text end new text begin Nonprofit economic development agency. new text end new text begin (a) The medical business new text end 220.7 new text begin entity must establish a nonprofit economic development agency organized under chapter new text end 220.8 new text begin 317A to provide experience and expertise in developing and marketing the destination new text end 220.9 new text begin medical center. The corporation must engage the agency to assist the corporation in new text end 220.10 new text begin preparing the development plan. The governing board of the agency must be comprised of new text end 220.11 new text begin members of the medical community, city, and county. The agency must collaborate with new text end 220.12 new text begin city, county, and other community representatives. The nonprofit agency must provide new text end 220.13 new text begin services to assist the corporation and city in implementing the goals, objectives, and new text end 220.14 new text begin strategies in the development plan including, but not limited to: new text end 220.15 new text begin (1) facilitating private investment through development of a comprehensive new text end 220.16 new text begin marketing program to global interests; new text end 220.17 new text begin (2) developing and updating the criteria for evaluating and underwriting new text end 220.18 new text begin development proposals; new text end 220.19 new text begin (3) drafting and implementing the development plan, including soliciting and new text end 220.20 new text begin evaluating proposals for development and evaluating and making recommendations to the new text end 220.21 new text begin authority and the city regarding those proposals; new text end 220.22 new text begin (4) providing transactional services in connection with approved projects; new text end 220.23 new text begin (5) developing patient, visitor, and community outreach programs for a destination new text end 220.24 new text begin medical center development district; new text end 220.25 new text begin (6) working with the corporation to acquire and facilitate the sale, lease, or other new text end 220.26 new text begin transactions involving land and real property; new text end 220.27 new text begin (7) seeking financial support for the corporation, the city, and a project; new text end 220.28 new text begin (8) partnering with other development agencies and organizations, the city, and the new text end 220.29 new text begin county in joint efforts to promote economic development and establish a destination new text end 220.30 new text begin medical center; new text end 220.31 new text begin (9) supporting and administering the planning and development activities required to new text end 220.32 new text begin implement the development plan; new text end 220.33 new text begin (10) preparing and supporting the marketing and promotion of the medical center new text end 220.34 new text begin development district; new text end 220.35 new text begin (11) preparing and implementing a program for community and public relations in new text end 220.36 new text begin support of the medical center development district; new text end 221.1 new text begin (12) assisting the corporation or city and others in applications for federal grants, tax new text end 221.2 new text begin credits, and other sources of funding to aid both private and public development; and new text end 221.3 new text begin (13) making other general advisory recommendations to the corporation and the new text end 221.4 new text begin city, as requested. new text end 221.5 new text begin (b) The nonprofit economic development agency must disclose to the city and new text end 221.6 new text begin to the corporation the existence, nature, and all material facts regarding any financial new text end 221.7 new text begin interest its employees or contractors have in any public infrastructure project submitted new text end 221.8 new text begin to the city for approval and any financial interest its employees or contractors have in new text end 221.9 new text begin the destination medical center development. "Contractors" includes affiliates of the new text end 221.10 new text begin contractors or members or shareholders with an ownership interest of more than 20 new text end 221.11 new text begin percent in the contractor. new text end 221.12     new text begin Subd. 7. new text end new text begin Audit of nonprofit economic development agency contract. new text end new text begin Any contract new text end 221.13 new text begin for services between the corporation and the nonprofit economic development agency new text end 221.14 new text begin paid, in whole or in part, with public money provides the corporation, the city, and the state new text end 221.15 new text begin auditor the right to audit the books and records of the agency that are necessary to certify: new text end 221.16 new text begin (1) the nature and extent of the services furnished pursuant to the contract; and new text end 221.17 new text begin (2) that the payment for services and related disbursements complies with all state new text end 221.18 new text begin laws, regulations, and the terms of the contract. new text end 221.19 new text begin Any contract for services between the corporation and the agency paid, in whole new text end 221.20 new text begin or in part, with public money must require the corporation to maintain for the life of the new text end 221.21 new text begin corporation accurate and complete books and records directly relating to the contract. new text end 221.22     new text begin Subd. 8. new text end new text begin Report. new text end new text begin By February 15 of each year, the corporation and city must jointly new text end 221.23 new text begin submit a report to the chairs and ranking minority members of the legislative committees new text end 221.24 new text begin and divisions with jurisdiction over local and state government operations, economic new text end 221.25 new text begin development, and taxes, and to the commissioners of revenue and employment and new text end 221.26 new text begin economic development, and the county. The corporation and city must also submit the new text end 221.27 new text begin report as provided in section 3.195. The report must include: new text end 221.28 new text begin (1) the development plan and any proposed changes to the development plan; new text end 221.29 new text begin (2) progress of projects identified in the development plan; new text end 221.30 new text begin (3) actual costs and financing sources, including the amount paid with state aid under new text end 221.31 new text begin section 469.47, and required local contributions of projects completed in the previous two new text end 221.32 new text begin years by the corporation, city, county, and the medical business entity; new text end 221.33 new text begin (4) estimated costs and financing sources for projects to be started in the next two new text end 221.34 new text begin years by the corporation, city, county, and the medical business entity; and new text end 221.35 new text begin (5) debt service schedules for all outstanding obligations of the city for debt issued new text end 221.36 new text begin for projects identified in the plan. new text end 222.1    Sec. 7. new text begin [469.44] CITY POWERS, DUTIES; AUTHORITY TO ISSUE BONDS. new text end 222.2     new text begin Subdivision 1. new text end new text begin Port authority powers. new text end new text begin The city may exercise the powers of a new text end 222.3 new text begin port authority under sections 469.048 to 469.068 for the purposes of implementing the new text end 222.4 new text begin destination medical center development plan. new text end 222.5     new text begin Subd. 2. new text end new text begin Support to the corporation. new text end new text begin The city must provide financial and new text end 222.6 new text begin administrative support, and office and other space, to the corporation. The city may new text end 222.7 new text begin appropriate city funds to the corporation for its work. new text end 222.8     new text begin Subd. 3. new text end new text begin City to issue debt. new text end new text begin The city may issue general obligation bonds, revenue new text end 222.9 new text begin bonds, or other obligations, as it determines appropriate, to finance public infrastructure new text end 222.10 new text begin projects, as provided by chapter 475. Notwithstanding section 475.53, obligations issued new text end 222.11 new text begin under this section are not subject to the limits on net debt, regardless of their source of new text end 222.12 new text begin security or payment. Notwithstanding section 475.58 or any other law or charter provision new text end 222.13 new text begin to the contrary, issuance of obligations under the provisions of this section are not subject new text end 222.14 new text begin to approval of the electors. The city may pledge any of its revenues, including property new text end 222.15 new text begin taxes, the taxes authorized by sections 469.45 and 469.46, and the state aid under section new text end 222.16 new text begin 469.47, as security for and to pay the obligations. The city must not issue obligations that new text end 222.17 new text begin are only payable from or secured by state aid under section 469.47. new text end 222.18     new text begin Subd. 4. new text end new text begin Local government tax base not reduced. new text end new text begin Nothing in sections 469.40 to new text end 222.19 new text begin 469.47 reduces the tax base or affects the taxes due and payable to the city, the county, new text end 222.20 new text begin or any school district within the boundaries of the city, including without limitation, new text end 222.21 new text begin the city's general local sales tax. new text end 222.22     new text begin Subd. 5. new text end new text begin Project implementation before plan adoption. new text end new text begin The city may exercise the new text end 222.23 new text begin powers under subdivision 3 with respect to any public infrastructure project commenced new text end 222.24 new text begin within the area that will be in the destination medical center development district after the new text end 222.25 new text begin effective date of this section but before the development plan is adopted subject to approval new text end 222.26 new text begin by the corporation. Actions taken under this authority must be approved by the corporation new text end 222.27 new text begin to be credited against the local contribution required under section 469.47, subdivision 4. new text end 222.28     new text begin Subd. 6. new text end new text begin American made steel. new text end new text begin The city must require that a public infrastructure new text end 222.29 new text begin project use American steel products to the extent practicable. In determining whether it new text end 222.30 new text begin is practicable, the city may consider the exceptions to the requirement in Public Law new text end 222.31 new text begin 111-5, section 1605. new text end 222.32     new text begin Subd. 7. new text end new text begin City contracts; construction requirements. new text end new text begin For all public infrastructure new text end 222.33 new text begin projects, the city must make every effort to hire and cause the construction manager and new text end 222.34 new text begin any subcontractors to employ women and members of minority communities. Goals for new text end 222.35 new text begin construction contracts must be established in the manner required under the city's minority new text end 222.36 new text begin and women-owned business enterprises utilization plan. new text end 223.1     new text begin Subd. 8. new text end new text begin Conduit bond issuance. new text end new text begin (a) Upon the request of the corporation or the new text end 223.2 new text begin nonprofit agency, the city or its economic development authority shall issue revenue bonds new text end 223.3 new text begin or other similar obligations for a qualifying project. Revenue bonds or other obligations as new text end 223.4 new text begin used in this subdivision means bonds or other obligations issued under sections 469.152 new text end 223.5 new text begin to 469.165 or under chapter 462C, the interest on which is tax exempt. The city or its new text end 223.6 new text begin development authority shall use its best efforts to issue the bonds or other obligations new text end 223.7 new text begin as promptly and efficiently as possible following the request and the provision of the new text end 223.8 new text begin information and completion of the actions by the corporation or the nonprofit agency that new text end 223.9 new text begin are necessary for the issuance. Upon request of the corporation or nonprofit agency, new text end 223.10 new text begin the city or its economic development authority shall adopt methods and procedures that new text end 223.11 new text begin preserve the confidentiality of private donors or other private participants in the qualifying new text end 223.12 new text begin project, including structures and methods that do not require disclosing information on new text end 223.13 new text begin the donors or participants to the city or its economic development authority, and shall new text end 223.14 new text begin segregate in separate accounts all funds related to a qualifying project from other city new text end 223.15 new text begin and authority funds. new text end 223.16 new text begin (b) For purposes of this section, a "qualifying project" means a project, as that new text end 223.17 new text begin term is defined in section 469.153, or a project that would qualify for financing under new text end 223.18 new text begin chapter 462C, that: new text end 223.19 new text begin (1) the corporation finds is consistent with and will further the goals of the new text end 223.20 new text begin development plan; new text end 223.21 new text begin (2) is located in a medical development district; and new text end 223.22 new text begin (3) has a commitment of private funding sources such as donations of money or new text end 223.23 new text begin in-kind contributions, other than revenues generated by the project, equal to at least ten new text end 223.24 new text begin percent of the total capital cost of the project. new text end 223.25     new text begin Subd. 9. new text end new text begin Public bidding exemption. new text end new text begin (a) Notwithstanding section 469.068 or any new text end 223.26 new text begin other law to the contrary, the city need not require competitive bidding with respect to a new text end 223.27 new text begin parking facility or other public improvements constructed in conjunction with, and directly new text end 223.28 new text begin above or below, or adjacent and integrally related to, a private development financed new text end 223.29 new text begin or developed under the development plan. new text end 223.30 new text begin (b) For purposes of this section, "city" includes the development authority new text end 223.31 new text begin established by the city. new text end 223.32    Sec. 8. new text begin [469.45] CITY TAX AUTHORITY. new text end 223.33     new text begin Subdivision 1. new text end new text begin Rochester, other local taxes authorized. new text end new text begin (a) Notwithstanding new text end 223.34 new text begin section new text end new text begin , or any other contrary provision of law, ordinance, or city charter, and in new text end 223.35 new text begin addition to any taxes the city may impose on these transactions under another statute or new text end 224.1 new text begin law, the city of Rochester may, by ordinance, impose at a rate or rates, determined by the new text end 224.2 new text begin city, any of the following taxes: new text end 224.3 new text begin (1) a tax on the gross receipts from the furnishing for consideration of lodging and new text end 224.4 new text begin related services as defined in section 297A.61, subdivision 3, paragraph (g), clause (2); the new text end 224.5 new text begin city may choose to impose a differential tax based on the number of rooms in the facility; new text end 224.6 new text begin (2) a tax on the gross receipts of food and beverages sold primarily for consumption new text end 224.7 new text begin on the premises by restaurants and places of refreshment that occur in the city of new text end 224.8 new text begin Rochester; the city may elect to impose the tax in a defined district of the city; and new text end 224.9 new text begin (3) a tax on the admission receipts to entertainment and recreational facilities, as new text end 224.10 new text begin defined by ordinance, in the city of Rochester. new text end 224.11 new text begin (b) The provisions of section 297A.99, subdivisions 4 to 13, govern the new text end 224.12 new text begin administration, collection, and enforcement of any tax imposed by the city under new text end 224.13 new text begin paragraph (a). new text end 224.14 new text begin (c) The proceeds of any taxes imposed under this subdivision, less refunds and new text end 224.15 new text begin costs of collection, must be used by the city only to meet its share of obligations for new text end 224.16 new text begin public infrastructure projects contained in the development plan and approved by the new text end 224.17 new text begin corporation, including any associated financing costs. Any tax imposed under paragraph new text end 224.18 new text begin (a) expires at the earlier of December 31, 2049, or when the city council determines new text end 224.19 new text begin that sufficient funds have been raised from the tax plus all other local funding sources new text end 224.20 new text begin authorized in this article to meet the city obligation for financing public infrastructure new text end 224.21 new text begin projects contained in the development plan and approved by the corporation, including new text end 224.22 new text begin any associated financing costs. new text end 224.23     new text begin Subd. 2. new text end new text begin General sales tax authority. new text end new text begin The city may elect to extend the existing new text end 224.24 new text begin local sales and use tax under section 13 or to impose an additional rate of up to one quarter new text end 224.25 new text begin of one percent tax on sales and use under section 11. The proceeds of any extended or new text end 224.26 new text begin additional taxes imposed under this subdivision, less refunds and costs of collection, must new text end 224.27 new text begin be used by the city only to meet its share of obligations for public infrastructure projects new text end 224.28 new text begin contained in the development plan and approved by the corporation, including all financing new text end 224.29 new text begin costs. Revenues collected in any year to meet the obligations must be used for payment of new text end 224.30 new text begin obligations or expenses for public infrastructure projects approved by the corporation. new text end 224.31     new text begin Subd. 3. new text end new text begin Special abatement rules. new text end new text begin (a) If the city or the county elects to use tax new text end 224.32 new text begin abatement under sections 469.1812 to 469.1815 to finance costs of public infrastructure new text end 224.33 new text begin projects, including all financing costs, the special rules under this subdivision apply. new text end 224.34 new text begin Taxes abated for public infrastructure projects must be used only for obligations or other new text end 224.35 new text begin infrastructure projects approved by the corporation. new text end 225.1 new text begin (b) The limitations under section 469.1813, subdivision 6, do not apply to the city new text end 225.2 new text begin or the county. new text end 225.3 new text begin (c) The limitations under section 469.1813, subdivision 8, do not apply and property new text end 225.4 new text begin taxes abated by the city or the county to finance costs of public infrastructure projects are new text end 225.5 new text begin not included for purposes of applying section 469.1813, subdivision 8, to the use of tax new text end 225.6 new text begin abatement for other purposes of the city or the county; however, the total amount of property new text end 225.7 new text begin taxes abated by the city and the county under this authority must not exceed $87,750,000. new text end 225.8     new text begin Subd. 4. new text end new text begin Special tax increment financing rules. new text end new text begin If the city elects to establish new text end 225.9 new text begin one or more redevelopment tax increment financing districts within the area of the new text end 225.10 new text begin destination medical center development district to fund public infrastructure projects, the new text end 225.11 new text begin requirements, definitions, limitations, or restrictions in the following statutes do not apply: new text end 225.12 new text begin sections 469.174, subdivisions 10 and 25, clause (2); 469.176, subdivisions 4j, 4l, and 5; new text end 225.13 new text begin and 469.1763, subdivisions 2, 3, and 4. The provisions of this subdivision expire effective new text end 225.14 new text begin for tax increments expended after December 31, 2049. After that date, the provisions of new text end 225.15 new text begin section 469.1763, subdivision 4, apply to any remaining unspent or unobligated increments. new text end 225.16    Sec. 9. new text begin [469.46] COUNTY TAX AUTHORITY. new text end 225.17 new text begin (a) Notwithstanding sections 297A.99, 297A.993, and 477A.016, or any other new text end 225.18 new text begin contrary provision of law, ordinance, or charter, and in addition to any taxes the county new text end 225.19 new text begin may impose under another law or statute, the Board of Commissioners of Olmsted County new text end 225.20 new text begin may, by resolution, impose a transit tax of up to one quarter of one percent on retail sales new text end 225.21 new text begin and uses taxable under chapter 297A. The provisions of section 297A.99, subdivisions new text end 225.22 new text begin 4 to 13, govern the imposition, administration, collection, and enforcement of the tax new text end 225.23 new text begin authorized under this paragraph. new text end 225.24 new text begin (b) The Board of Commissioners of Olmsted County may, by resolution, levy an new text end 225.25 new text begin annual wheelage tax of up to $10 on each motor vehicle kept in the county when not in new text end 225.26 new text begin operation which is subject to annual registration and taxation under chapter 168, for new text end 225.27 new text begin transportation projects within the county. The wheelage tax must not be imposed on the new text end 225.28 new text begin vehicles exempt from wheelage tax under section 163.051, subdivision 1. The board, new text end 225.29 new text begin by resolution, may provide for collection of the wheelage tax by county officials, or it new text end 225.30 new text begin may request that the tax be collected by the state registrar on behalf of the county. The new text end 225.31 new text begin provisions of section 163.051, subdivisions 2, 2a, 3, and 7, must govern the administration, new text end 225.32 new text begin collection, and enforcement of the tax authorized under this paragraph. The tax authorized new text end 225.33 new text begin under this section is in addition to any tax the county may be authorized to impose under new text end 225.34 new text begin section 163.051, but until January 1, 2018, the county tax imposed under this paragraph, new text end 226.1 new text begin in combination with any tax imposed under section 163.051, must equal the specified new text end 226.2 new text begin rate under section 163.051. new text end 226.3 new text begin (c) The proceeds of any taxes imposed under paragraph (a), less refunds and costs new text end 226.4 new text begin of collection, must be first used by the county to meet its local matching contributions new text end 226.5 new text begin under section 469.47, subdivision 6, for financing transit infrastructure related to the new text end 226.6 new text begin public infrastructure projects contained in the development plan and approved by the new text end 226.7 new text begin corporation, including any financing costs. Revenues collected in any calendar year in new text end 226.8 new text begin excess of the county obligation to pay for projects contained in the development plan may new text end 226.9 new text begin be retained by the county and used for funding other transportation projects, including new text end 226.10 new text begin roads and bridges, airports, and transportation improvements. new text end 226.11 new text begin (d) Any taxes imposed under paragraph (a) expire December 31, 2049, or at an new text end 226.12 new text begin earlier time if approved by resolution of the county board of commissioners. The taxes new text end 226.13 new text begin must not terminate before the county board of commissioners determines that revenues new text end 226.14 new text begin from these taxes and any other revenue source the county dedicates are sufficient to pay new text end 226.15 new text begin the county share of transit project costs and financing costs under the development plan. new text end 226.16    Sec. 10. new text begin [469.47] STATE INFRASTRUCTURE AID. new text end 226.17     new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin (a) For purposes of this section, the following terms new text end 226.18 new text begin have the meanings given them. new text end 226.19 new text begin (b) "Commissioner" means the commissioner of employment and economic new text end 226.20 new text begin development. new text end 226.21 new text begin (c) "Construction projects" means: new text end 226.22 new text begin (1) for expenditures by a medical business entity, construction of buildings in the new text end 226.23 new text begin city for which the building permit was issued after June 30, 2013; and new text end 226.24 new text begin (2) for any other expenditures, construction of privately owned buildings and other new text end 226.25 new text begin improvements that are undertaken pursuant to or as part of the development plan and are new text end 226.26 new text begin located within a medical center development district. new text end 226.27 new text begin (d) "Expenditures" means expenditures made by a medical business entity or by an new text end 226.28 new text begin individual or private entity on construction projects for the capital cost of the project new text end 226.29 new text begin including, but not limited to: new text end 226.30 new text begin (1) design and predesign, including architectural, engineering, and similar services; new text end 226.31 new text begin (2) legal, regulatory, and other compliance costs of the project; new text end 226.32 new text begin (3) land acquisition, demolition of existing improvements, and other site preparation new text end 226.33 new text begin costs; new text end 226.34 new text begin (4) construction costs, including all materials and supplies of the project; and new text end 226.35 new text begin (5) equipment and furnishings that are attached to or become part of the real property. new text end 227.1 new text begin Expenditures excludes supplies and other items with a useful life of less than a new text end 227.2 new text begin year that are not used or consumed in constructing improvements to real property or new text end 227.3 new text begin are otherwise chargeable to capital costs. new text end 227.4 new text begin (e) "Qualified expenditures" has the following meaning. In the first year in which aid new text end 227.5 new text begin is paid under this section, "qualified expenditures" means the total certified expenditures new text end 227.6 new text begin since June 30, 2013, through the end of the preceding year, minus $200,000,000. For new text end 227.7 new text begin subsequent years, "qualified expenditures" means the certified expenditures for the new text end 227.8 new text begin preceding year. new text end 227.9 new text begin (f) "Transit costs" means the portions of a public infrastructure project that are for new text end 227.10 new text begin public transit intended primarily to serve the district, such as transit stations, equipment, new text end 227.11 new text begin rights-of-way, and similar costs. new text end 227.12     new text begin Subd. 2. new text end new text begin Certification of expenditures. new text end new text begin By April 1 of each year, the medical new text end 227.13 new text begin business entity must certify to the commissioner the amount of expenditures made by the new text end 227.14 new text begin medical business entity in the preceding year. For expenditures made by an individual new text end 227.15 new text begin or entity other than the medical business entity, the corporation shall compile the new text end 227.16 new text begin information on the expenditures and may certify the amount to the commissioner. The new text end 227.17 new text begin certification must be made in the form that the commissioner prescribes and include new text end 227.18 new text begin any documentation of and supporting information regarding the expenditures that the new text end 227.19 new text begin commissioner requires. By August 1 of each year, the commissioner must determine the new text end 227.20 new text begin amount of the expenditures for the preceding year. new text end 227.21     new text begin Subd. 3. new text end new text begin General state infrastructure aid. new text end new text begin (a) General state infrastructure aid may new text end 227.22 new text begin not be paid out under this section until total expenditures exceed $200,000,000. new text end 227.23 new text begin (b) The amount of the general state infrastructure aid for a fiscal year equals the sum new text end 227.24 new text begin of qualified expenditures, multiplied by 2.75 percent. The maximum amount of state new text end 227.25 new text begin aid payable in any year is limited to no more than $30,000,000. If the aid entitlement new text end 227.26 new text begin for the year exceeds the maximum annual limit, the excess is an aid carryover to later new text end 227.27 new text begin years. The carryover aid must be paid in the first year in which the aid entitlement for the new text end 227.28 new text begin current year is less than the maximum annual limit, but only to the extent the carryover, new text end 227.29 new text begin when added to the current year aid, is less than the maximum annual limit. If the new text end 227.30 new text begin commissioner determines that the city has made the required matching local contribution new text end 227.31 new text begin under subdivision 4, the commissioner must pay to the city the amount of general state new text end 227.32 new text begin infrastructure aid for the year by September 1. new text end 227.33 new text begin (c) The city must use general state infrastructure aid it receives under this subdivision new text end 227.34 new text begin for improvements and other capital costs related to the public infrastructure projects new text end 227.35 new text begin approved by the corporation, other than transit costs. The city must maintain appropriate new text end 227.36 new text begin records to document the use of the funds under this requirement. new text end 228.1 new text begin (d) The commissioner, in consultation with the commissioner of management and new text end 228.2 new text begin budget, and representatives of the city and the corporation, must establish a total limit on new text end 228.3 new text begin the amount of state aid payable under this subdivision that will be adequate to finance, in new text end 228.4 new text begin combination with the local contribution, $455,000,000 of general public infrastructure new text end 228.5 new text begin projects. new text end 228.6     new text begin Subd. 4. new text end new text begin General aid; local matching contribution. new text end new text begin In order to qualify for general new text end 228.7 new text begin state infrastructure aid, the city must enter a written agreement with the commissioner new text end 228.8 new text begin that requires the city to make a qualifying local matching contribution to pay for new text end 228.9 new text begin $128,000,000 of the cost of public infrastructure projects approved by the corporation, new text end 228.10 new text begin including financing costs, using funds other than state aid received under this section. new text end 228.11 new text begin The $128,000,000 required local matching contribution is reduced by one half of the new text end 228.12 new text begin amounts the city pays for operating and administrative costs of the corporation up to a new text end 228.13 new text begin maximum amount agreed to by the board and the city. The agreement must provide for the new text end 228.14 new text begin manner, timing, and amounts of the city contributions, including the city's commitment new text end 228.15 new text begin for each year. Notwithstanding any law to the contrary, the agreement may provide that new text end 228.16 new text begin the city contributions for public infrastructure project principal costs may be made over a new text end 228.17 new text begin 20-year period at a rate not greater than $1 from the city for each $2.55 from the state. new text end 228.18 new text begin The local match contribution may be provided by the city from any source identified in new text end 228.19 new text begin section 469.45 and any other local tax proceeds or other funds from the city and may new text end 228.20 new text begin include providing funds to assist developers undertaking projects in accordance with the new text end 228.21 new text begin development plan or by the city directly undertaking public infrastructure projects in new text end 228.22 new text begin accordance with the development plan, provided the projects have been approved by the new text end 228.23 new text begin corporation. City contributions that are in excess of this ratio carry forward and are credited new text end 228.24 new text begin towards subsequent years. The commissioner and city may agree to amend the agreement new text end 228.25 new text begin at any time in light of new information or other appropriate factors. The city may enter new text end 228.26 new text begin into arrangements with the county to pay for or otherwise meet the local matching new text end 228.27 new text begin contribution requirement. Any public infrastructure project within the area that will be in new text end 228.28 new text begin the destination medical center development district whose implementation is started or new text end 228.29 new text begin funded by the city after the effective date of this section but before the development plan new text end 228.30 new text begin is adopted, as provided by section 469.46, subdivision 5, will be included for the purposes new text end 228.31 new text begin of determining the amount the city has contributed as required by this section and the new text end 228.32 new text begin agreement with the commissioner, subject to approval by the corporation. new text end 228.33     new text begin Subd. 5. new text end new text begin State transit aid. new text end new text begin (a) The city qualifies for state transit aid under this section new text end 228.34 new text begin if the county contributes the required local matching contribution under subdivision 6 or the new text end 228.35 new text begin city or county has agreed to make an equivalent contribution out of other funds for the year. new text end 229.1 new text begin (b) If the city qualifies for aid under paragraph (a), the commissioner must pay the new text end 229.2 new text begin city the state transit aid in the amount calculated under this paragraph. The amount of the new text end 229.3 new text begin state transit aid for a fiscal year equals the sum of qualified expenditures, as certified by new text end 229.4 new text begin the commissioner for the prior year, multiplied by 0.75 percent, reduced by the amount new text end 229.5 new text begin of the local contribution under subdivision 6. The maximum amount of state transit aid new text end 229.6 new text begin payable in any year is limited to no more than $7,500,000. If the aid entitlement for the new text end 229.7 new text begin year exceeds the maximum annual limit, the excess is an aid carryover to later years. The new text end 229.8 new text begin carryover aid must be paid in the first year in which the aid entitlement for the current year new text end 229.9 new text begin is less than the maximum annual limit, but only to the extent the carryover, when added to new text end 229.10 new text begin the current year aid, is less than the maximum annual limit. new text end 229.11 new text begin (c) The commissioner, in consultation with the commissioner of management and new text end 229.12 new text begin budget, and representatives of the city and the corporation, must establish a total limit on new text end 229.13 new text begin the amount of state aid payable under this subdivision that will be adequate to finance, in new text end 229.14 new text begin combination with the local contribution, $116,000,000 of transit costs. new text end 229.15 new text begin (d) The city must use state transit aid it receives under this subdivision for transit new text end 229.16 new text begin costs. The city must maintain appropriate records to document the use of the funds new text end 229.17 new text begin under this requirement. new text end 229.18     new text begin Subd. 6. new text end new text begin Transit aid; local matching contribution. new text end new text begin (a) The required local matching new text end 229.19 new text begin contribution for state transit aid equals the lesser of: new text end 229.20 new text begin (1) 40 percent of the state transit aid under subdivision 5; or new text end 229.21 new text begin (2) the amount that would be raised by a 0.15 percent sales tax imposed by the new text end 229.22 new text begin county in the preceding year. new text end 229.23 new text begin The county may impose the sales tax or the wheelage tax under section 469.46 new text end 229.24 new text begin to meet this obligation. new text end 229.25 new text begin (b) If the county elects not to impose any of the taxes authorized under section 469.46, new text end 229.26 new text begin the county, or city, or both, may agree to make the local contribution out of other available new text end 229.27 new text begin funds, other than state aid payable under this section. The commissioner of revenue must new text end 229.28 new text begin estimate the required amount and certify it to the commissioner, city, and county. new text end 229.29     new text begin Subd. 7. new text end new text begin Prevailing wage requirement. new text end new text begin During the construction, installation, new text end 229.30 new text begin remodelling, and repairs of any public infrastructure project funded by state aid or a local new text end 229.31 new text begin matching contribution under this section, laborers and mechanics at the site must be paid new text end 229.32 new text begin the prevailing wage rate as defined in section 177.42, subdivision 6, and the project is new text end 229.33 new text begin subject to the requirements of sections 177.30 and 177.41 to 177.44. new text end 229.34     new text begin Subd. 8. new text end new text begin Termination. new text end new text begin No aid may be paid under this section after fiscal year 2049. new text end 230.1     new text begin Subd. 9. new text end new text begin Appropriation. new text end new text begin An amount sufficient to pay the state general infrastructure new text end 230.2 new text begin and state transit aid authorized under this section is appropriated to the commissioner new text end 230.3 new text begin from the general fund. new text end 230.4    Sec. 11. Laws 1998, chapter 389, article 8, section 43, subdivision 1, is amended to read: 230.5    Subdivision 1. Sales and use taxes authorized. new text begin (a) new text end Notwithstanding Minnesota 230.6Statutes, section 477A.016, or any other contrary provision of law, ordinance, or city 230.7charter, upon termination of the taxes authorized under Laws 1992, chapter 511, article 230.88, section 33, subdivision 1, and if approved by the voters of the city at a general or 230.9special election held within one year of the date of final enactment of this act, the city of 230.10Rochester may, by ordinance, impose an additional sales and use tax of up to one-half 230.11of one percent. The provisions of Minnesota Statutes, section new text begin 297A.99 new text end , govern 230.12the imposition, administration, collection, and enforcement of the tax authorized under 230.13this subdivision new text begin paragraph new text end . 230.14 new text begin (b) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any new text end 230.15 new text begin other contrary provision of law, ordinance, or charter, the city of Rochester may, by new text end 230.16 new text begin ordinance, impose an additional sales and use tax of up to one quarter of one percent. The new text end 230.17 new text begin provisions of Minnesota Statutes, section 297A.99, subdivisions 1 and 4 to 13, govern new text end 230.18 new text begin the imposition, administration, collection, and enforcement of the tax authorized under new text end 230.19 new text begin this paragraph. new text end 230.20    Sec. 12. Laws 1998, chapter 389, article 8, section 43, subdivision 3, as amended by 230.21Laws 2005, First Special Session chapter 3, article 5, section 28, and Laws 2011, First 230.22Special Session chapter 7, article 4, section 5, is amended to read: 230.23    Subd. 3. Use of revenues. (a) Revenues received from the taxes authorized by 230.24subdivisions 1 new text begin , paragraph (a), new text end and 2 must be used by the city to pay for the cost of 230.25collecting and administering the taxes and to pay for the following projects: 230.26    (1) transportation infrastructure improvements including regional highway and 230.27airport improvements; 230.28    (2) improvements to the civic center complex; 230.29    (3) a municipal water, sewer, and storm sewer project necessary to improve regional 230.30ground water quality; and 230.31    (4) construction of a regional recreation and sports center and other higher education 230.32facilities available for both community and student use. 230.33    (b) The total amount of capital expenditures or bonds for projects listed in paragraph 230.34(a) that may be paid from the revenues raised from the taxes authorized in this section 231.1may not exceed $111,500,000. The total amount of capital expenditures or bonds for the 231.2project in clause (4) that may be paid from the revenues raised from the taxes authorized 231.3in this section may not exceed $28,000,000. 231.4(c) In addition to the projects authorized in paragraph (a) and not subject to the 231.5amount stated in paragraph (b), the city of Rochester may, if approved by the voters at an 231.6election under subdivision 5, paragraph (c), use the revenues received from the taxes and 231.7bonds authorized in this section to pay the costs of or bonds for the following purposes: 231.8(1) $17,000,000 for capital expenditures and bonds for the following Olmsted 231.9County transportation infrastructure improvements: 231.10(i) County State Aid Highway 34 reconstruction; 231.11(ii) Trunk Highway 63 and County State Aid Highway 16 interchange; 231.12(iii) phase II of the Trunk Highway 52 and County State Aid Highway 22 interchange; 231.13(iv) widening of County State Aid Highway 22 West Circle Drive; and 231.14(v) 60th Avenue Northwest corridor preservation; 231.15(2) $30,000,000 for city transportation projects including: 231.16(i) Trunk Highway 52 and 65th Street interchange; 231.17(ii) NW transportation corridor acquisition; 231.18(iii) Phase I of the Trunk Highway 52 and County State Aid Highway 22 interchange; 231.19(iv) Trunk Highway 14 and Trunk Highway 63 intersection; 231.20(v) Southeast transportation corridor acquisition; 231.21(vi) Rochester International Airport expansion; and 231.22(vii) a transit operations center bus facility; 231.23(3) $14,000,000 for the University of Minnesota Rochester academic and 231.24complementary facilities; 231.25(4) $6,500,000 for the Rochester Community and Technical College/Winona State 231.26University career technical education and science and math facilities; 231.27(5) $6,000,000 for the Rochester Community and Technical College regional 231.28recreation facilities at University Center Rochester; 231.29(6) $20,000,000 for the Destination Medical Community Initiative; 231.30(7) $8,000,000 for the regional public safety and 911 dispatch center facilities; 231.31(8) $20,000,000 for a regional recreation/senior center; 231.32(9) $10,000,000 for an economic development fund; and 231.33(10) $8,000,000 for downtown infrastructure. 231.34(d) No revenues from the taxes raised from the taxes authorized in subdivisions 1 231.35and 2 may be used to fund transportation improvements related to a railroad bypass that 231.36would divert traffic from the city of Rochester. 232.1(e) The city shall use $5,000,000 of the money allocated to the purpose in paragraph 232.2(c), clause (9), for grants to the cities of Byron, Chatfield, Dodge Center, Dover, Elgin, 232.3Eyota, Kasson, Mantorville, Oronoco, Pine Island, Plainview, St. Charles, Stewartville, 232.4Zumbrota, Spring Valley, West Concord, and Hayfield for economic development projects 232.5that these communities would fund through their economic development authority or 232.6housing and redevelopment authority. new text begin Notwithstanding Minnesota Statutes, section new text end 232.7 new text begin 297A.99, subdivisions 2 and 3, if the city decides to extend the taxes in subdivisions 1, new text end 232.8 new text begin paragraph (a), and 2, as allowed under subdivision 5, paragraph (c), the city must use new text end 232.9 new text begin any amount in excess of the amount necessary to meet obligations under paragraphs (a) new text end 232.10 new text begin to (c) from those taxes to fund obligations, including financing costs, related to public new text end 232.11 new text begin infrastructure projects in the development plan adopted under Minnesota Statutes, section new text end 232.12 new text begin 469.43. new text end 232.13 new text begin (f) Revenues from the tax under subdivision 1, paragraph (b), must be used to new text end 232.14 new text begin fund obligations, including financing costs, related to the public infrastructure projects new text end 232.15 new text begin contained in the development plan approved by the DMCC and adopted by the city under new text end 232.16 new text begin Minnesota Statutes, section 469.43. new text end 232.17    Sec. 13. Laws 1998, chapter 389, article 8, section 43, subdivision 5, as amended by 232.18Laws 2005, First Special Session chapter 3, article 5, section 30, and Laws 2011, First 232.19Special Session chapter 7, article 4, section 7, is amended to read: 232.20    Subd. 5. Termination of taxes. (a) The taxes imposed under subdivisions 1 and 2 232.21expire at the later of (1) December 31, 2009, or (2) when the city council determines that 232.22sufficient funds have been received from the taxes to finance the first $71,500,000 of capital 232.23expenditures and bonds for the projects authorized in subdivision 3, including the amount to 232.24prepay or retire at maturity the principal, interest, and premium due on any bonds issued for 232.25the projects under subdivision 4, unless the taxes are extended as allowed in paragraph (b). 232.26Any funds remaining after completion of the project and retirement or redemption of the 232.27bonds shall also be used to fund the projects under subdivision 3. The taxes imposed under 232.28subdivisions 1 and 2 may expire at an earlier time if the city so determines by ordinance. 232.29    (b) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any 232.30other contrary provision of law, ordinance, or city charter, the city of Rochester may, by 232.31ordinance, extend the taxes authorized in subdivisions 1 and 2 beyond December 31, 2009, 232.32if approved by the voters of the city at a special election in 2005 or the general election in 232.332006. The question put to the voters must indicate that an affirmative vote would allow 232.34up to an additional $40,000,000 of sales tax revenues be raised and up to $40,000,000 232.35of bonds to be issued above the amount authorized in the June 23, 1998, referendum for 233.1the projects specified in subdivision 3. If the taxes authorized in subdivisions 1 and 2 are 233.2extended under this paragraph, the taxes expire when the city council determines that 233.3sufficient funds have been received from the taxes to finance the projects and to prepay 233.4or retire at maturity the principal, interest, and premium due on any bonds issued for the 233.5projects under subdivision 4. Any funds remaining after completion of the project and 233.6retirement or redemption of the bonds may be placed in the general fund of the city. 233.7(c) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any 233.8other contrary provision of law, ordinance, or city charter, the city of Rochester may, by 233.9ordinance, extend the taxes authorized in subdivisions 1 new text begin , paragraph (a), new text end and 2 beyond the 233.10date new text begin , up to December 31, 2049, provided that all additional revenues above those necessary new text end 233.11 new text begin to fund the projects and associated financing costs listed in subdivision 3, paragraphs (a) to new text end 233.12 new text begin (e), are committed to fund public infrastructure projects contained in the development plan new text end 233.13 new text begin adopted under Minnesota Statutes, section 469.43, including all financing costs; otherwise new text end 233.14 new text begin the taxes terminate when new text end the city council determines that sufficient funds have been 233.15received from the taxes to finance $111,500,000 of expenditures and bonds for the projects 233.16authorized in subdivision 3, paragraph (a) new text begin paragraphs (a) to (e) new text end , plus an amount equal to 233.17the costs of issuance of the bonds and including the amount to prepay or retire at maturity 233.18the principal, interest, and premiums due on any bonds issued for the projects under 233.19subdivision 4, paragraph (a), if approved by the voters of the city at the general election in 233.202012. If the election to authorize the additional $139,500,000 of bonds plus an amount 233.21equal to the costs of the issuance of the bonds is placed on the general election ballot in 233.222012, the city may continue to collect the taxes authorized in subdivisions 1 and 2 until 233.23December 31, 2012. The question put to the voters must indicate that an affirmative vote 233.24would allow sales tax revenues be raised for an extended period of time and an additional 233.25$139,500,000 of bonds plus an amount equal to the costs of issuance of the bonds, to be 233.26issued above the amount authorized in the previous elections required under paragraphs 233.27(a) and (b) for the projects and amounts specified in subdivision 3. If the taxes authorized 233.28in subdivisions 1 and 2 are extended under this paragraph, the taxes expire when the city 233.29council determines that $139,500,000 has been received from the taxes to finance the 233.30projects plus an amount sufficient to prepay or retire at maturity the principal, interest, 233.31and premium due on any bonds issued for the projects under subdivision 4, including any 233.32bonds issued to refund the bonds. Any funds remaining after completion of the projects 233.33and retirement or redemption of the bonds may be placed in the general fund of the city. 233.34 new text begin (d) The tax imposed under subdivision 1, paragraph (b), expires at the earlier of new text end 233.35 new text begin 2049, or when the city council determines that sufficient funds have been raised from the new text end 233.36 new text begin tax plus all other city funding sources authorized in this article to meet the city obligation new text end 234.1 new text begin for financing the public infrastructure projects contained in the development plan adopted new text end 234.2 new text begin under Minnesota Statutes, section 469.43, including all financing costs. new text end 234.3    Sec. 14. new text begin ROCHESTER SALES TAX SHARING. new text end 234.4 new text begin The city council may, after holding a public hearing and passing a resolution, use new text end 234.5 new text begin $5,000,000 of the $10,000,000 allocated to an economic development fund in Laws 1998, new text end 234.6 new text begin chapter 389, article 8, section 43, subdivision 3, as amended by Laws 2005, First Special new text end 234.7 new text begin Session chapter 3, article 5, section 28, and Laws 2011, First Special Session chapter 7, new text end 234.8 new text begin article 4, section 5, paragraph (c), clause (9), for grants to any or all of the cities of Byron, new text end 234.9 new text begin Chatfield, Dodge Center, Dover, Elgin, Eyota, Hayfield, Kasson, Mantorville, Oronoco, new text end 234.10 new text begin Pine Island, Plainview, Spring Valley, St. Charles, Stewartville, West Concord, and new text end 234.11 new text begin Zumbrota for economic development projects that these communities would fund through new text end 234.12 new text begin their economic development authority or housing and redevelopment authority. The new text end 234.13 new text begin public hearing may be part of a regular city council meeting. If the council does not pass new text end 234.14 new text begin the resolution by September 1, 2013, the $5,000,000 may not be used for grants to the new text end 234.15 new text begin other cities but shall instead be used to fund public infrastructure projects contained in the new text end 234.16 new text begin development plan under Minnesota Statutes, section 469.42. new text end 234.17    Sec. 15. new text begin OLMSTED INTERREGIONAL PASSENGER RAIL STUDY. new text end 234.18 new text begin The study by the Olmsted County Regional Rail authority, in conjunction with the new text end 234.19 new text begin Minnesota Department of Transportation, on interregional passenger rail, and funded new text end 234.20 new text begin under Laws 2009, chapter 93, article 1, section 11, subdivision 5, must include analysis new text end 234.21 new text begin of the feasibility of a high-speed rail connection between Rochester and the Mall of new text end 234.22 new text begin America via Minnesota State Highway 77 with connections to the Minneapolis-St. Paul new text end 234.23 new text begin International Airport and the Union Depot in St. Paul; and, to the extent feasible, take into new text end 234.24 new text begin account available data, forecasts, available transportation demand modeling information, new text end 234.25 new text begin and transportation impacts of major economic initiatives and proposals including, but not new text end 234.26 new text begin limited to, expansion of the Mayo Clinic. new text end 234.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 234.28    Sec. 16. new text begin EFFECTIVE DATE. new text end 234.29 new text begin Except as otherwise provided, this article is effective the day after the governing new text end 234.30 new text begin body of the city of Rochester and its chief clerical officer timely comply with Minnesota new text end 234.31 new text begin Statutes, section 645.021, subdivisions 2 and 3. new text end 235.1ARTICLE 11 235.2MINERALS TAXES 235.3    Section 1. Minnesota Statutes 2012, section 126C.48, subdivision 8, is amended to read: 235.4    Subd. 8. Taconite payment and other reductions. (1) Reductions in levies 235.5pursuant to subdivision 1 must be made prior to the reductions in clause (2). 235.6(2) Notwithstanding any other law to the contrary, districts that have revenue 235.7pursuant to sections 298.018; 298.225; 298.24 to 298.28, except an amount distributed 235.8under sections 298.26; 298.28, subdivision 4, paragraphs (c), clause (ii), and (d); 298.34 235.9to 298.39; 298.391 to 298.396; 298.405; 477A.15; and any law imposing a tax upon 235.10severed mineral values must reduce the levies authorized by this chapter and chapters 235.11120B, 122A, 123A, 123B, 124A, 124D, 125A, and 127A by 95 percent of new text begin the sum of new text end the 235.12previous year's revenue specified under this clause new text begin and the amount attributable to the same new text end 235.13 new text begin production year distributed to the cities and townships within the school district under new text end 235.14 new text begin section 298.28, subdivision 2, paragraph (c) new text end . 235.15(3) The amount of any voter approved referendum, facilities down payment, and 235.16debt levies shall not be reduced by more than 50 percent under this subdivision. In 235.17administering this paragraph, the commissioner shall first reduce the nonvoter approved 235.18levies of a district; then, if any payments, severed mineral value tax revenue or recognized 235.19revenue under paragraph (2) remains, the commissioner shall reduce any voter approved 235.20referendum levies authorized under section 126C.17; then, if any payments, severed 235.21mineral value tax revenue or recognized revenue under paragraph (2) remains, the 235.22commissioner shall reduce any voter approved facilities down payment levies authorized 235.23under section 123B.63 and then, if any payments, severed mineral value tax revenue or 235.24recognized revenue under paragraph (2) remains, the commissioner shall reduce any 235.25voter approved debt levies. 235.26(4) Before computing the reduction pursuant to this subdivision of the health and 235.27safety levy authorized by sections 123B.57 and 126C.40, subdivision 5, the commissioner 235.28shall ascertain from each affected school district the amount it proposes to levy under 235.29each section or subdivision. The reduction shall be computed on the basis of the amount 235.30so ascertained. 235.31(5) To the extent the levy reduction calculated under paragraph (2) exceeds the 235.32limitation in paragraph (3), an amount equal to the excess must be distributed from the 235.33school district's distribution under sections 298.225, 298.28, and 477A.15 in the following 235.34year to the cities and townships within the school district in the proportion that their 235.35taxable net tax capacity within the school district bears to the taxable net tax capacity of 235.36the school district for property taxes payable in the year prior to distribution. No city or 236.1township shall receive a distribution greater than its levy for taxes payable in the year prior 236.2to distribution. The commissioner of revenue shall certify the distributions of cities and 236.3towns under this paragraph to the county auditor by September 30 of the year preceding 236.4distribution. The county auditor shall reduce the proposed and final levies of cities and 236.5towns receiving distributions by the amount of their distribution. Distributions to the cities 236.6and towns shall be made at the times provided under section 298.27. 236.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for levies certified in 2013 and later. new text end 236.8    Sec. 2. Minnesota Statutes 2012, section 298.17, is amended to read: 236.9298.17 OCCUPATION TAXES TO BE APPORTIONED. 236.10 new text begin (a) new text end All occupation taxes paid by persons, copartnerships, companies, joint stock 236.11companies, corporations, and associations, however or for whatever purpose organized, 236.12engaged in the business of mining or producing iron ore or other ores, when collected 236.13shall be apportioned and distributed in accordance with the Constitution of the state of 236.14Minnesota, article X, section 3, in the manner following: 90 percent shall be deposited 236.15in the state treasury and credited to the general fund of which four-ninths shall be used 236.16for the support of elementary and secondary schools; and ten percent of the proceeds of 236.17the tax imposed by this section shall be deposited in the state treasury and credited to the 236.18general fund for the general support of the university. 236.19 new text begin (b) new text end Of the moneys apportioned to the general fund by this section new text begin : (1) there is new text end 236.20 new text begin annually appropriated and credited to the mining environmental and regulatory account in new text end 236.21 new text begin the special revenue fund an amount equal to that which would have been generated by a new text end 236.22 new text begin two and one-half cent tax imposed by section new text end new text begin on each taxable ton produced in the new text end 236.23 new text begin preceding calendar year. Money in the mining environmental and regulatory account is new text end 236.24 new text begin appropriated annually to the commissioner of natural resources to fund agency staff to new text end 236.25 new text begin work on environmental issues and provide regulatory services for ferrous and nonferrous new text end 236.26 new text begin mining operations in this state. Payment to the mining environmental and regulatory new text end 236.27 new text begin account shall be made by July 1 annually. The commissioner of natural resources shall new text end 236.28 new text begin execute an interagency agreement with the pollution control agency to assist with the new text end 236.29 new text begin provision of environmental regulatory services such as monitoring and permitting required new text end 236.30 new text begin for ferrous and nonferrous mining operations; and (2) new text end there is annually appropriated and 236.31credited to the Iron Range Resources and Rehabilitation Board account in the special 236.32revenue fund an amount equal to that which would have been generated by a 1.5 cent tax 236.33imposed by section 298.24 on each taxable ton produced in the preceding calendar year, to 236.34be expended for the purposes of section 298.22. 237.1The money appropriated pursuant to this section new text begin clause (2) new text end shall be used (1) new text begin (i) new text end 237.2 to provide environmental development grants to local governments located within any 237.3county in region 3 as defined in governor's executive order number 60, issued on June 237.412, 1970, which does not contain a municipality qualifying pursuant to section 273.134, 237.5paragraph (b) , or (2) new text begin (ii) new text end to provide economic development loans or grants to businesses 237.6located within any such county, provided that the county board or an advisory group 237.7appointed by the county board to provide recommendations on economic development 237.8shall make recommendations to the Iron Range Resources and Rehabilitation Board 237.9regarding the loans. Payment to the Iron Range Resources and Rehabilitation Board 237.10account shall be made by May 15 annually. 237.11 new text begin (c) new text end Of the money allocated to Koochiching County, one-third must be paid to the 237.12Koochiching County Economic Development Commission. 237.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning for the 2013 production new text end 237.14 new text begin year. new text end 237.15    Sec. 3. Minnesota Statutes 2012, section 298.227, as amended by Laws 2013, chapter 237.163, section 17, is amended to read: 237.17298.227 TACONITE ECONOMIC DEVELOPMENT FUND. 237.18    (a) An amount equal to that distributed pursuant to each taconite producer's taxable 237.19production and qualifying sales under section 298.28, subdivision 9a, shall be held by 237.20the Iron Range Resources and Rehabilitation Board in a separate taconite economic 237.21development fund for each taconite and direct reduced ore producer. Money from the 237.22fund for each producer shall be released by the commissioner after review by a joint 237.23committee consisting of an equal number of representatives of the salaried employees and 237.24the nonsalaried production and maintenance employees of that producer. The District 11 237.25director of the United States Steelworkers of America, on advice of each local employee 237.26president, shall select the employee members. In nonorganized operations, the employee 237.27committee shall be elected by the nonsalaried production and maintenance employees. The 237.28review must be completed no later than six months after the producer presents a proposal 237.29for expenditure of the funds to the committee. The funds held pursuant to this section may 237.30be released only for workforce development and associated public facility improvement, 237.31or for acquisition of plant and stationary mining equipment and facilities for the producer 237.32or for research and development in Minnesota on new mining, or taconite, iron, or steel 237.33production technology, but only if the producer provides a matching expenditure new text begin equal to new text end 237.34 new text begin the amount of the distribution new text end to be used for the same purpose of at least 50 percent of 238.1the distribution based on 14.7 cents per ton beginning with distributions in 2002 new text begin 2014 new text end . 238.2Effective for proposals for expenditures of money from the fund beginning May 26, 2007, 238.3the commissioner may not release the funds before the next scheduled meeting of the 238.4board. If a proposed expenditure is not approved by the board, the funds must be deposited 238.5in the Taconite Environmental Protection Fund under sections 298.222 to 298.225. If a 238.6producer uses money which has been released from the fund prior to May 26, 2007 to 238.7procure haulage trucks, mobile equipment, or mining shovels, and the producer removes 238.8the piece of equipment from the taconite tax relief area defined in section 273.134 within 238.9ten years from the date of receipt of the money from the fund, a portion of the money 238.10granted from the fund must be repaid to the taconite economic development fund. The 238.11portion of the money to be repaid is 100 percent of the grant if the equipment is removed 238.12from the taconite tax relief area within 12 months after receipt of the money from the fund, 238.13declining by ten percent for each of the subsequent nine years during which the equipment 238.14remains within the taconite tax relief area. If a taconite production facility is sold after 238.15operations at the facility had ceased, any money remaining in the fund for the former 238.16producer may be released to the purchaser of the facility on the terms otherwise applicable 238.17to the former producer under this section. If a producer fails to provide matching funds 238.18for a proposed expenditure within six months after the commissioner approves release 238.19of the funds, the funds are available for release to another producer in proportion to the 238.20distribution provided and under the conditions of this section. Any portion of the fund 238.21which is not released by the commissioner within one year of its deposit in the fund shall 238.22be divided between the taconite environmental protection fund created in section 298.223 238.23and the Douglas J. Johnson economic protection trust fund created in section 298.292 for 238.24placement in their respective special accounts. Two-thirds of the unreleased funds shall be 238.25distributed to the taconite environmental protection fund and one-third to the Douglas J. 238.26Johnson economic protection trust fund. 238.27    (b)(i) Notwithstanding the requirements of paragraph (a), setting the amount of 238.28distributions and the review process, an amount equal to ten cents per taxable ton of 238.29production in 2007, for distribution in 2008 only, that would otherwise be distributed 238.30under paragraph (a), may be used for a loan or grant for the cost of providing for a 238.31value-added wood product facility located in the taconite tax relief area and in a county 238.32that contains a city of the first class. This amount must be deducted from the distribution 238.33under paragraph (a) for which a matching expenditure by the producer is not required. The 238.34granting of the loan or grant is subject to approval by the board. If the money is provided 238.35as a loan, interest must be payable on the loan at the rate prescribed in section 298.2213, 238.36subdivision 3 . (ii) Repayments of the loan and interest, if any, must be deposited in the 239.1taconite environment protection fund under sections 298.222 to 298.225. If a loan or 239.2grant is not made under this paragraph by July 1, 2012, the amount that had been made 239.3available for the loan under this paragraph must be transferred to the taconite environment 239.4protection fund under sections 298.222 to 298.225. (iii) Money distributed in 2008 to the 239.5fund established under this section that exceeds ten cents per ton is available to qualifying 239.6producers under paragraph (a) on a pro rata basis. 239.7(c) Repayment or transfer of money to the taconite environmental protection fund 239.8under paragraph (b), item (ii), must be allocated by the Iron Range Resources and 239.9Rehabilitation Board for public works projects in house legislative districts in the same 239.10proportion as taxable tonnage of production in 2007 in each house legislative district, for 239.11distribution in 2008, bears to total taxable tonnage of production in 2007, for distribution 239.12in 2008. Notwithstanding any other law to the contrary, expenditures under this paragraph 239.13do not require approval by the governor. For purposes of this paragraph, "house legislative 239.14districts" means the legislative districts in existence on May 15, 2009. 239.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning for the 2014 distribution. new text end 239.16    Sec. 4. Minnesota Statutes 2012, section 298.24, subdivision 1, is amended to read: 239.17    Subdivision 1. Imposed; calculation. (a) For concentrate produced in 2001, 2002, 239.18and 2003 new text begin 2013 new text end , there is imposed upon taconite and iron sulphides, and upon the mining 239.19and quarrying thereof, and upon the production of iron ore concentrate therefrom, and 239.20upon the concentrate so produced, a tax of $2.103 new text begin $2.56 new text end per gross ton of merchantable 239.21iron ore concentrate produced therefrom. For concentrates produced in 2005, the tax rate 239.22is the same rate imposed for concentrates produced in 2004. For concentrates produced in 239.232009 and subsequent years, The tax is also imposed upon other iron-bearing material. 239.24    (b) For concentrates produced in 2006 new text begin 2014 new text end and subsequent years, the tax rate shall 239.25be equal to the preceding year's tax rate plus an amount equal to the preceding year's tax 239.26rate multiplied by the percentage increase in the implicit price deflator from the fourth 239.27quarter of the second preceding year to the fourth quarter of the preceding year. "Implicit 239.28price deflator" means the implicit price deflator for the gross domestic product prepared by 239.29the Bureau of Economic Analysis of the United States Department of Commerce. 239.30    (c) An additional tax is imposed equal to three cents per gross ton of merchantable 239.31iron ore concentrate for each one percent that the iron content of the product exceeds 72 239.32percent, when dried at 212 degrees Fahrenheit. 239.33    (d) The tax on taconite and iron sulphides shall be imposed on the average of the 239.34production for the current year and the previous two years. The rate of the tax imposed 239.35will be the current year's tax rate. This clause shall not apply in the case of the closing 240.1of a taconite facility if the property taxes on the facility would be higher if this clause 240.2and section 298.25 were not applicable. The tax on other iron-bearing material shall be 240.3imposed on the current year production. 240.4    (e) If the tax or any part of the tax imposed by this subdivision is held to be 240.5unconstitutional, a tax of $2.103 new text begin $2.56 new text end per gross ton of merchantable iron ore concentrate 240.6produced shall be imposed. 240.7    (f) Consistent with the intent of this subdivision to impose a tax based upon the 240.8weight of merchantable iron ore concentrate, the commissioner of revenue may indirectly 240.9determine the weight of merchantable iron ore concentrate included in fluxed pellets by 240.10subtracting the weight of the limestone, dolomite, or olivine derivatives or other basic 240.11flux additives included in the pellets from the weight of the pellets. For purposes of this 240.12paragraph, "fluxed pellets" are pellets produced in a process in which limestone, dolomite, 240.13olivine, or other basic flux additives are combined with merchantable iron ore concentrate. 240.14No subtraction from the weight of the pellets shall be allowed for binders, mineral and 240.15chemical additives other than basic flux additives, or moisture. 240.16    (g)(1) Notwithstanding any other provision of this subdivision, for the first two years 240.17of a plant's commercial production of direct reduced ore from ore mined in this state, no 240.18tax is imposed under this section. As used in this paragraph, "commercial production" is 240.19production of more than 50,000 tons of direct reduced ore in the current year or in any prior 240.20year, "noncommercial production" is production of 50,000 tons or less of direct reduced ore 240.21in any year, and "direct reduced ore" is ore that results in a product that has an iron content 240.22of at least 75 percent. For the third year of a plant's commercial production of direct 240.23reduced ore, the rate to be applied to direct reduced ore is 25 percent of the rate otherwise 240.24determined under this subdivision. For the fourth commercial production year, the rate is 240.2550 percent of the rate otherwise determined under this subdivision; for the fifth commercial 240.26production year, the rate is 75 percent of the rate otherwise determined under this 240.27subdivision; and for all subsequent commercial production years, the full rate is imposed. 240.28    (2) Subject to clause (1), production of direct reduced ore in this state is subject to 240.29the tax imposed by this section, but if that production is not produced by a producer of 240.30taconite, iron sulfides, or other iron-bearing material, the production of taconite, iron 240.31sulfides, or other iron-bearing material, that is consumed in the production of direct 240.32reduced iron in this state is not subject to the tax imposed by this section on taconite, 240.33iron sulfides, or other iron-bearing material. 240.34    (3) Notwithstanding any other provision of this subdivision, no tax is imposed 240.35on direct reduced ore under this section during the facility's noncommercial production 240.36of direct reduced ore. The taconite or iron sulphides consumed in the noncommercial 241.1production of direct reduced ore is subject to the tax imposed by this section on taconite 241.2and iron sulphides. Three-year average production of direct reduced ore does not 241.3include production of direct reduced ore in any noncommercial year. Three-year average 241.4production for a direct reduced ore facility that has noncommercial production is the 241.5average of the commercial production of direct reduced ore for the current year and the 241.6previous two commercial years. 241.7    (4) This paragraph applies only to plants for which all environmental permits have 241.8been obtained and construction has begun before July 1, 2008. 241.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning for the 2013 production new text end 241.10 new text begin year. new text end 241.11    Sec. 5. Minnesota Statutes 2012, section 298.28, subdivision 4, is amended to read: 241.12    Subd. 4. School districts. (a) 23.15 new text begin 32.15 new text end cents per taxable ton, plus the increase 241.13provided in paragraph (d), less the amount that would have been computed under 241.14Minnesota Statutes 2008, section 126C.21, subdivision 4, for the current year for that 241.15district, must be allocated to qualifying school districts to be distributed, based upon the 241.16certification of the commissioner of revenue, under paragraphs (b), (c), and (f). 241.17    (b)(i) 3.43 cents per taxable ton must be distributed to the school districts in which 241.18the lands from which taconite was mined or quarried were located or within which the 241.19concentrate was produced. The distribution must be based on the apportionment formula 241.20prescribed in subdivision 2. 241.21    (ii) Four cents per taxable ton from each taconite facility must be distributed to 241.22each affected school district for deposit in a fund dedicated to building maintenance 241.23and repairs, as follows: 241.24    (1) proceeds from Keewatin Taconite or its successor are distributed to Independent 241.25School Districts Nos. 316, Coleraine, and 319, Nashwauk-Keewatin, or their successor 241.26districts; 241.27    (2) proceeds from the Hibbing Taconite Company or its successor are distributed to 241.28Independent School Districts Nos. 695, Chisholm, and 701, Hibbing, or their successor 241.29districts; 241.30    (3) proceeds from the Mittal Steel Company and Minntac or their successors are 241.31distributed to Independent School Districts Nos. 712, Mountain Iron-Buhl, 706, Virginia, 241.322711, Mesabi East, and 2154, Eveleth-Gilbert, or their successor districts; 241.33    (4) proceeds from the Northshore Mining Company or its successor are distributed 241.34to Independent School Districts Nos. 2142, St. Louis County, and 381, Lake Superior, 241.35or their successor districts; and 242.1    (5) proceeds from United Taconite or its successor are distributed to Independent 242.2School Districts Nos. 2142, St. Louis County, and 2154, Eveleth-Gilbert, or their 242.3successor districts. 242.4    Revenues that are required to be distributed to more than one district shall be 242.5apportioned according to the number of pupil units identified in section 126C.05, 242.6subdivision 1 , enrolled in the second previous year. 242.7    (c)(i) 15.72 new text begin 24.72 new text end cents per taxable ton, less any amount distributed under paragraph 242.8(e), shall be distributed to a group of school districts comprised of those school districts 242.9which qualify as a tax relief area under section 273.134, paragraph (b), or in which there is 242.10a qualifying municipality as defined by section 273.134, paragraph (a), in direct proportion 242.11to school district indexes as follows: for each school district, its pupil units determined 242.12under section 126C.05 for the prior school year shall be multiplied by the ratio of the 242.13average adjusted net tax capacity per pupil unit for school districts receiving aid under 242.14this clause as calculated pursuant to chapters 122A, 126C, and 127A for the school year 242.15ending prior to distribution to the adjusted net tax capacity per pupil unit of the district. 242.16Each district shall receive that portion of the distribution which its index bears to the sum 242.17of the indices for all school districts that receive the distributions. 242.18    (ii) Notwithstanding clause (i), each school district that receives a distribution 242.19under sections 298.018; 298.23 to 298.28, exclusive of any amount received under this 242.20clause; 298.34 to 298.39; 298.391 to 298.396; 298.405; or any law imposing a tax on 242.21severed mineral values after reduction for any portion distributed to cities and towns 242.22under section 126C.48, subdivision 8, paragraph (5), that is less than the amount of its 242.23levy reduction under section 126C.48, subdivision 8, for the second year prior to the 242.24year of the distribution shall receive a distribution equal to the difference; the amount 242.25necessary to make this payment shall be derived from proportionate reductions in the 242.26initial distribution to other school districts under clause (i). If there are insufficient tax 242.27proceeds to make the distribution provided under this paragraph in any year, money must 242.28be transferred from the taconite property tax relief account in subdivision 6, to the extent 242.29of the shortfall in the distribution. 242.30    (d) new text begin (1) new text end Any school district described in paragraph (c) where a levy increase pursuant 242.31to section 126C.17, subdivision 9, was authorized by referendum for taxes payable in 242.322001, shall receive a distribution of 21.3 cents per ton. Each district shall receive $175 242.33times the pupil units identified in section 126C.05, subdivision 1, enrolled in the second 242.34previous year or the 1983-1984 school year, whichever is greater, less the product of 1.8 242.35percent times the district's taxable net tax capacity in the second previous year new text begin 2011 new text end . 243.1 new text begin (2) Districts qualifying under paragraph (c) must receive additional taconite aid each new text end 243.2 new text begin year equal to 22.5 percent of the amount obtained by subtracting: new text end 243.3 new text begin (i) 1.8 percent of the district's net tax capacity for 2011, from: new text end 243.4 new text begin (ii) the district's weighted average daily membership for fiscal year 2012 multiplied new text end 243.5 new text begin by the sum of: new text end 243.6 new text begin (A) $415, plus new text end 243.7 new text begin (B) the district's referendum revenue allowance for fiscal year 2013. new text end 243.8    If the total amount provided by paragraph (d) is insufficient to make the payments 243.9herein required then the entitlement of $175 per pupil unit shall be reduced uniformly 243.10so as not to exceed the funds available. Any amounts received by a qualifying school 243.11district in any fiscal year pursuant to paragraph (d) shall not be applied to reduce general 243.12education aid which the district receives pursuant to section 126C.13 or the permissible 243.13levies of the district. Any amount remaining after the payments provided in this paragraph 243.14shall be paid to the commissioner of Iron Range resources and rehabilitation who shall 243.15deposit the same in the taconite environmental protection fund and the Douglas J. Johnson 243.16economic protection trust fund as provided in subdivision 11. 243.17    Each district receiving money according to this paragraph shall reserve the lesser of 243.18the amount received under this paragraph or $25 times the number of pupil units served 243.19in the district. It may use the money for early childhood programs or for outcome-based 243.20learning programs that enhance the academic quality of the district's curriculum. The 243.21outcome-based learning programs must be approved by the commissioner of education. 243.22    (e) There shall be distributed to any school district the amount which the school 243.23district was entitled to receive under section 298.32 in 1975. 243.24    (f) Four cents per taxable ton must be distributed to qualifying school districts 243.25according to the distribution specified in paragraph (b), clause (ii), and two new text begin 11 new text end cents 243.26per taxable ton must be distributed according to the distribution specified in paragraph 243.27(c). These amounts are not subject to sections 126C.21, subdivision 4, and 126C.48, 243.28subdivision 8 . 243.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning for the 2014 distribution. new text end 243.30    Sec. 6. Minnesota Statutes 2012, section 298.28, subdivision 6, is amended to read: 243.31    Subd. 6. Property tax relief. (a) In 2002 new text begin 2014 new text end and thereafter, 33.9 new text begin 34.8 new text end cents per 243.32taxable ton, less any amount required to be distributed under paragraphs (b) and (c), or 243.33section 298.2961, subdivision 5, must be allocated to St. Louis County acting as the 243.34counties' fiscal agent, to be distributed as provided in sections 273.134 to 273.136. 244.1    (b) If an electric power plant owned by and providing the primary source of power 244.2for a taxpayer mining and concentrating taconite is located in a county other than the 244.3county in which the mining and the concentrating processes are conducted, .1875 cent per 244.4taxable ton of the tax imposed and collected from such taxpayer shall be paid to the county. 244.5    (c) If an electric power plant owned by and providing the primary source of power 244.6for a taxpayer mining and concentrating taconite is located in a school district other than 244.7a school district in which the mining and concentrating processes are conducted, .4541 244.8cent per taxable ton of the tax imposed and collected from the taxpayer shall be paid to 244.9the school district. 244.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning for the 2014 distribution. new text end 244.11    Sec. 7. Minnesota Statutes 2012, section 298.28, subdivision 9c, is amended to read: 244.12    Subd. 9c. Temporary Distribution; city of Eveleth. 0.20 cent per taxable ton 244.13must be paid to the city of Eveleth for distribution in 2007 through 2011 only new text begin 2013 new text end 244.14 new text begin and thereafter new text end , to be used for the support of the Hockey Hall of Fame, provided that it 244.15continues to operate in that city, and provided that the city of Eveleth certifies to the St. 244.16Louis County auditor that it has received donations for the support of the Hockey Hall of 244.17Fame from professional hockey organizations or other donors in an amount at least equal 244.18to the amount of the distribution under this subdivision. If the Hockey Hall of Fame 244.19ceases to operate in the city of Eveleth prior to receipt of the distribution in either new text begin any new text end 244.20year, and the governing body of the city determines that it is unlikely to resume operation 244.21there within a six-month period, the distribution under this subdivision shall be made to 244.22the Iron Range Resources and Rehabilitation Board. If the amount of the distribution 244.23authorized under this subdivision exceeds the total amount of donations for the support of 244.24the Hockey Hall of Fame during the 12-month period ending 30 days before the date of 244.25the distribution, the amount by which 0.20 cent per ton exceeds the donations shall be 244.26distributed to the Iron Range Resources and Rehabilitation Board. 244.27    Sec. 8. Minnesota Statutes 2012, section 298.28, subdivision 10, is amended to read: 244.28    Subd. 10. Increase. (a) Except as provided in paragraph (b), beginning with 244.29distributions in 2000, the amount determined under subdivision 9 shall be increased in the 244.30same proportion as the increase in the implicit price deflator as provided in section 298.24, 244.31subdivision 1 . Beginning with distributions in 2003 new text begin 2015 new text end , the amount determined under 244.32subdivision 6, paragraph (a), shall be increased in the same proportion as the increase in 244.33the implicit price deflator as provided in section 298.24, subdivision 1. 245.1(b) For distributions in 2005 and subsequent years, an amount equal to the increased 245.2tax proceeds attributable to the increase in the implicit price deflator as provided in 245.3section 298.24, subdivision 1, for taxes paid in 2005, except for the amount of revenue 245.4increases provided in subdivision 4, paragraph (d), is distributed to the grant and loan fund 245.5established in section 298.2961, subdivision 4. 245.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning for the 2014 distribution. new text end 245.7    Sec. 9. new text begin IRON RANGE FISCAL DISPARITIES STUDY. new text end 245.8 new text begin The commissioner of revenue, in coordination with the commissioner of the Iron new text end 245.9 new text begin Range Resources and Rehabilitation Board, shall conduct a study of the tax relief new text end 245.10 new text begin area revenue distribution program contained in Minnesota Statutes, chapter 276A, new text end 245.11 new text begin commonly known as the Iron Range fiscal disparities program. By February 1, 2014, the new text end 245.12 new text begin commissioner of revenue shall submit a report to the chairs and ranking minority members new text end 245.13 new text begin of the house of representatives and senate tax committees consisting of the findings of the new text end 245.14 new text begin study and identification of issues for policy makers to consider. The study must analyze: new text end 245.15 new text begin (1) trends in population, property tax base, property tax rates, and contribution new text end 245.16 new text begin and distribution capacity across the region; new text end 245.17 new text begin (2) the volatility of the program's distribution and causes of the volatility; new text end 245.18 new text begin (3) the impact of state tax policy changes on the fiscal disparities program; and new text end 245.19 new text begin (4) the interaction between the program and the distribution of property tax aids and new text end 245.20 new text begin credits, taconite aid, and Iron Range Resources and Rehabilitation Board funding across new text end 245.21 new text begin the region. new text end 245.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective June 1, 2013. new text end 245.23    Sec. 10. new text begin 2013 DISTRIBUTION ONLY. new text end 245.24 new text begin For the 2013 distribution, a special fund is established to receive 38.7 cents per ton of new text end 245.25 new text begin any excess of the balance remaining after distribution of amounts required under Minnesota new text end 245.26 new text begin Statutes, section 298.28, subdivision 6. The following amounts are allocated to St. Louis new text end 245.27 new text begin County acting as the fiscal agent for the recipients for the following specific purposes: new text end 245.28 new text begin (1) 5.1 cents per ton to the city of Hibbing for improvements to the city's water new text end 245.29 new text begin supply system; new text end 245.30 new text begin (2) 4.3 cents per ton to the city of Mountain Iron for the cost of moving utilities new text end 245.31 new text begin required as a result of actions undertaken by United States Steel Corporation; new text end 245.32 new text begin (3) 2.5 cents per ton to the city of Biwabik for improvements to the city's water supply new text end 245.33 new text begin system, payable upon agreement with ArcelorMittal to satisfy water permit conditions; new text end 246.1 new text begin (4) 2 cents per ton to the city of Tower for the Tower Marina; new text end 246.2 new text begin (5) 2.4 cents per ton to the city of Grand Rapids for an eco-friendly heat transfer new text end 246.3 new text begin system to replace aging effluent lines and for parking lot repaving; new text end 246.4 new text begin (6) 2.4 cents per ton to the city of Two Harbors for wastewater treatment plant new text end 246.5 new text begin improvements; new text end 246.6 new text begin (7) 0.9 cents per ton to the city of Ely for the sanitary sewer replacement project; new text end 246.7 new text begin (8) 0.6 cents per ton to the town of Crystal Bay for debt service of the Claire Nelson new text end 246.8 new text begin Intermodal Transportation Center; new text end 246.9 new text begin (9) 0.5 cents per ton to the Greenway Joint Recreation Board for the Coleraine new text end 246.10 new text begin hockey arena renovations; new text end 246.11 new text begin (10) 1.2 cents per ton for the West Range Regional Fire Hall and Training Center new text end 246.12 new text begin to merge the existing fire services of Coleraine, Bovey, Taconite Marble, Calumet, and new text end 246.13 new text begin Greenway Township; new text end 246.14 new text begin (11) 2.5 cents per ton to the city of Hibbing for the Memorial Building; new text end 246.15 new text begin (12) 0.7 cents per ton to the city of Chisholm for public works infrastructure; new text end 246.16 new text begin (13) 1.8 cents per ton to the Crane Lake Water and Sanitary District for sanitary new text end 246.17 new text begin sewer extension; new text end 246.18 new text begin (14) 2.5 cents per ton for the city of Buhl for the roof on the Mesabi Academy; new text end 246.19 new text begin (15) 1.2 cents per ton to the city of Gilbert for the New Jersey/Ohio Avenue project; new text end 246.20 new text begin (16) 1.5 cents per ton to the city of Cook for street improvements, business park new text end 246.21 new text begin infrastructure, and a maintenance garage; new text end 246.22 new text begin (17) 0.5 cents per ton to the city of Cook for a water line project; new text end 246.23 new text begin (18) 1.8 cents per ton to the city of Eveleth to be used for Jones Street reconstruction new text end 246.24 new text begin and the city auditorium; new text end 246.25 new text begin (19) 0.5 cents for the city of Keewatin for an electrical substation and water line new text end 246.26 new text begin replacements; new text end 246.27 new text begin (20) 3.3 cents for the city of Virginia for Fourth Street North infrastructure and new text end 246.28 new text begin Franklin Park improvement; and new text end 246.29 new text begin (21) 0.5 cents per ton to the city of Grand Rapids for an economic development new text end 246.30 new text begin project. new text end 246.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for the 2013 distribution, and all new text end 246.32 new text begin payments must be made separately and within ten days of the date of the August 2013 new text end 246.33 new text begin payment. This section supersedes article 5, section 46, of 2013 H.F. No. 729, if enacted in new text end 246.34 new text begin the 2013 regular session of the legislature. new text end 247.1    Sec. 11. new text begin IRON RANGE RESOURCES AND REHABILITATION new text end 247.2 new text begin COMMISSIONER; BONDS AUTHORIZED. new text end 247.3     new text begin Subdivision 1. new text end new text begin Issuance; purpose. new text end new text begin Notwithstanding any provision of Minnesota new text end 247.4 new text begin Statutes, chapter 298, to the contrary, the commissioner of Iron Range resources and new text end 247.5 new text begin rehabilitation shall issue revenue bonds in a principal amount of $38,000,000 plus an new text end 247.6 new text begin amount sufficient to pay costs of issuance in one or more series, and thereafter may new text end 247.7 new text begin issue bonds to refund those bonds. The proceeds of the bonds must be used to pay costs new text end 247.8 new text begin of issuance and to make grants to school districts located in the taconite tax relief area new text end 247.9 new text begin defined in Minnesota Statutes, section 273.134, or the taconite assistance area defined new text end 247.10 new text begin in Minnesota Statutes, section 273.1341, to be used by the school districts to pay for new text end 247.11 new text begin building projects, such as energy efficiency, technology, infrastructure, health, safety, and new text end 247.12 new text begin maintenance improvements. Proceeds granted to School District No. 2142 must be used new text end 247.13 new text begin to reduce debt service on the building bond passed on December 8, 2009. new text end 247.14     new text begin Subd. 2. new text end new text begin Appropriation. new text end new text begin (a) There is annually appropriated from the distribution of new text end 247.15 new text begin taconite production tax revenues under Minnesota Statues, section 298.28, prior to the new text end 247.16 new text begin calculation of the amount of the remainder under Minnesota Statutes, section 298.28, new text end 247.17 new text begin subdivision 11, an amount sufficient to pay when due the principal and interest on the new text end 247.18 new text begin bonds issued pursuant to subdivision 1. The appropriation under this section must not new text end 247.19 new text begin exceed an amount equal to ten cents per taxable ton. new text end 247.20     new text begin (b) If in any year the amount available under paragraph (a) is insufficient to pay new text end 247.21 new text begin principal and interest due on the bonds in that year, an additional amount is appropriated new text end 247.22 new text begin from the Douglas J. Johnson fund to make up the deficiency. new text end 247.23     new text begin (c) The appropriation under this subdivision terminates upon payment or maturity of new text end 247.24 new text begin the last of the bonds issued under this section. new text end 247.25     new text begin Subd. 3. new text end new text begin Credit enhancement. new text end new text begin The bonds issued under this section are "debt new text end 247.26 new text begin obligations" and the commissioner of Iron Range resources and rehabilitation is a "district" new text end 247.27 new text begin for purposes of Minnesota Statutes, section 126C.55, provided that advances made under new text end 247.28 new text begin Minnesota Statutes, section 126C.55, subdivision 2, are not subject to Minnesota Statutes, new text end 247.29 new text begin section 126C.55, subdivisions 4 to 7. new text end 247.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment and new text end 247.31 new text begin applies beginning with the 2014 distribution under Minnesota Statutes, section 298.28. new text end 247.32ARTICLE 12 247.33PUBLIC FINANCE 247.34    Section 1. Minnesota Statutes 2012, section 118A.04, subdivision 3, is amended to read: 248.1    Subd. 3. State and local securities. Funds may be invested in the following: 248.2(1) any security which is a general obligation of any state or local government with 248.3taxing powers which is rated "A" or better by a national bond rating service; 248.4(2) any security which is a revenue obligation of any state or local government with 248.5taxing powers which is rated "AA" or better by a national bond rating service; and 248.6(3) a general obligation of the Minnesota housing finance agency which is a moral 248.7obligation of the state of Minnesota and is rated "A" or better by a national bond rating 248.8agency. new text begin ; and new text end 248.9 new text begin (4) any security which is an obligation of a school district with an original maturity new text end 248.10 new text begin not exceeding 13 months and (i) rated in the highest category by a national bond rating new text end 248.11 new text begin service or (ii) enrolled in the credit enhancement program pursuant to section 126C.55. new text end 248.12    Sec. 2. Minnesota Statutes 2012, section 118A.05, subdivision 5, is amended to read: 248.13    Subd. 5. Guaranteed investment contracts. Agreements or contracts for 248.14guaranteed investment contracts may be entered into if they are issued or guaranteed 248.15by United States commercial banks, domestic branches of foreign banks, United States 248.16insurance companies, or their Canadian subsidiaries, or the domestic affiliates of any 248.17of the foregoing. The credit quality of the issuer's or guarantor's short- and long-term 248.18unsecured debt must be rated in one of the two highest categories by a nationally 248.19recognized rating agency. new text begin Agreements or contracts for guaranteed investment contracts new text end 248.20 new text begin with a term of 18 months or less may be entered into regardless of the credit quality of new text end 248.21 new text begin the issuer's or guarantor's long-term unsecured debt, provided that the credit quality of new text end 248.22 new text begin the issuer's short-term unsecured debt is rated in the highest category by a nationally new text end 248.23 new text begin recognized rating agency. new text end Should the issuer's or guarantor's credit quality be downgraded 248.24below "A", the government entity must have withdrawal rights. 248.25    Sec. 3. Minnesota Statutes 2012, section 216C.436, subdivision 7, is amended to read: 248.26    Subd. 7. Repayment. An implementing entity that finances an energy improvement 248.27under this section must: 248.28(1) secure payment with a lien against the benefited qualifying real property; and 248.29(2) collect repayments as a special assessment as provided for in section 429.101 248.30or by charter new text begin , provided that special assessments may be made payable in up to 20 equal new text end 248.31 new text begin annual installments new text end . 248.32If the implementing entity is an authority, the local government that authorized 248.33the authority to act as implementing entity shall impose and collect special assessments 249.1necessary to pay debt service on bonds issued by the implementing entity under subdivision 249.28, and shall transfer all collections of the assessments upon receipt to the authority. 249.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 249.4    Sec. 4. Minnesota Statutes 2012, section 373.01, subdivision 3, is amended to read: 249.5    Subd. 3. Capital notes. (a) A county board may, by resolution and without 249.6referendum, issue capital notes subject to the county debt limit to purchase capital 249.7equipment useful for county purposes that has an expected useful life at least equal to the 249.8term of the notes. The notes shall be payable in not more than ten years and shall be 249.9issued on terms and in a manner the board determines. A tax levy shall be made for 249.10payment of the principal and interest on the notes, in accordance with section 475.61, 249.11as in the case of bonds. 249.12    (b) For purposes of this subdivision, "capital equipment" means: 249.13    (1) public safety, ambulance, road construction or maintenance, and medical 249.14equipment; and 249.15    (2) computer hardware and software, whether bundled with machinery or equipment 249.16or unbundled new text begin , together with application development services and training related to the new text end 249.17 new text begin use of the computer hardware or software new text end . 249.18    Sec. 5. Minnesota Statutes 2012, section 373.40, subdivision 1, is amended to read: 249.19    Subdivision 1. Definitions. For purposes of this section, the following terms have 249.20the meanings given. 249.21(a) "Bonds" means an obligation as defined under section 475.51. 249.22(b) "Capital improvement" means acquisition or betterment of public lands, 249.23buildings, or other improvements within the county for the purpose of a county courthouse, 249.24administrative building, health or social service facility, correctional facility, jail, law 249.25enforcement center, hospital, morgue, library, park, qualified indoor ice arena, roads 249.26and bridges, new text begin public works facilities, fairground buildings, and records and data storage new text end 249.27 new text begin facilities, new text end and the acquisition of development rights in the form of conservation easements 249.28under chapter 84C. An improvement must have an expected useful life of five years or more 249.29to qualify. "Capital improvement" does not include a recreation or sports facility building 249.30(such as, but not limited to, a gymnasium, ice arena, racquet sports facility, swimming 249.31pool, exercise room or health spa), unless the building is part of an outdoor park facility 249.32and is incidental to the primary purpose of outdoor recreation. new text begin For purposes of this section, new text end 249.33 new text begin "capital improvement" includes expenditures for purposes described in this paragraph that new text end 249.34 new text begin have been incurred by a county before approval of a capital improvement plan, if such new text end 250.1 new text begin expenditures are included in a capital improvement plan approved on or before the date of new text end 250.2 new text begin the public hearing under subdivision 2 regarding issuance of bonds for such expenditures. new text end 250.3(c) "Metropolitan county" means a county located in the seven-county metropolitan 250.4area as defined in section 473.121 or a county with a population of 90,000 or more. 250.5(d) "Population" means the population established by the most recent of the 250.6following (determined as of the date the resolution authorizing the bonds was adopted): 250.7(1) the federal decennial census, 250.8(2) a special census conducted under contract by the United States Bureau of the 250.9Census, or 250.10(3) a population estimate made either by the Metropolitan Council or by the state 250.11demographer under section 4A.02. 250.12(e) "Qualified indoor ice arena" means a facility that meets the requirements of 250.13section 373.43. 250.14(f) "Tax capacity" means total taxable market value, but does not include captured 250.15market value. 250.16    Sec. 6. Minnesota Statutes 2012, section 373.40, subdivision 2, is amended to read: 250.17    Subd. 2. Application of election requirement. (a) Bonds issued by a county 250.18to finance capital improvements under an approved capital improvement plan are not 250.19subject to the election requirements of section 375.18 or 475.58. The bonds must be 250.20approved by vote of at least three-fifths of the members of the county board. In the case 250.21of a metropolitan county, the bonds must be approved by vote of at least two-thirds of 250.22the members of the county board. 250.23(b) Before issuance of bonds qualifying under this section, the county must publish 250.24a notice of its intention to issue the bonds and the date and time of a hearing to obtain 250.25public comment on the matter. The notice must be published in the official newspaper 250.26of the county or in a newspaper of general circulation in the county. The notice must be 250.27published at least 14, but not more than 28, days before the date of the hearing. 250.28(c) A county may issue the bonds only upon obtaining the approval of a majority of 250.29the voters voting on the question of issuing the obligations, if a petition requesting a vote 250.30on the issuance is signed by voters equal to five percent of the votes cast in the county in 250.31the last new text begin county new text end general election and is filed with the county auditor within 30 days after 250.32the public hearing. The commissioner of revenue shall prepare a suggested form of the 250.33question to be presented at the election. new text begin If the county elects not to submit the question to new text end 250.34 new text begin the voters, the county shall not propose the issuance of bonds under this section for the new text end 250.35 new text begin same purpose and in the same amount for a period of 365 days from the date of receipt new text end 251.1 new text begin of the petition. If the question of issuing the bonds is submitted and not approved by the new text end 251.2 new text begin voters, the provisions of section 475.58, subdivision 1a, shall apply. new text end 251.3    Sec. 7. Minnesota Statutes 2012, section 383D.41, is amended by adding a subdivision 251.4to read: 251.5     new text begin Subd. 10. new text end new text begin Housing improvement areas. new text end new text begin (a) In addition to its other powers, the new text end 251.6 new text begin Dakota County Community Development Agency shall have all powers of a city under new text end 251.7 new text begin sections 428A.11 to 428A.21 in connection with housing improvement areas in Dakota new text end 251.8 new text begin County. new text end 251.9 new text begin (b) For purposes of the Dakota County Community Development Agency's exercise new text end 251.10 new text begin of the powers granted in this subdivision, references in sections 428A.11 to 428A.21 to: new text end 251.11 new text begin (1) a "mayor" shall be references to the chair of the board of commissioners of the new text end 251.12 new text begin Dakota County Community Development Agency; new text end 251.13 new text begin (2) a "council" shall be references to the board of commissioners of the Dakota new text end 251.14 new text begin County Community Development Agency; and new text end 251.15 new text begin (3) a "city clerk" shall be references to an official of the Dakota County Community new text end 251.16 new text begin Development Agency designated by the executive director of the Dakota County new text end 251.17 new text begin Community Development Agency. new text end 251.18 new text begin (c) Notwithstanding sections 428A.11, subdivision 3, and 428A.13, subdivision 1, new text end 251.19 new text begin the governing body of the Dakota County Community Development Agency may adopt new text end 251.20 new text begin a resolution, rather than an ordinance, establishing one or more housing improvement new text end 251.21 new text begin areas, and "enabling ordinance" for purposes of sections 428A.11 to 428A.21 means a new text end 251.22 new text begin resolution under this clause. new text end 251.23 new text begin (d) The community development agency (1) shall send a copy of each petition new text end 251.24 new text begin for the establishment of a housing improvement area to the city in which the proposed new text end 251.25 new text begin housing improvement area is located, and (2) may not hold the public hearing required in new text end 251.26 new text begin section 428A.13, subdivision 2, fewer than 30 days after the date on which the related new text end 251.27 new text begin application was sent pursuant to clause (1). The community development agency may new text end 251.28 new text begin not establish a housing improvement area if the applicable city council opposes the new text end 251.29 new text begin establishment by resolution adopted within 30 days after the petition required to be sent new text end 251.30 new text begin pursuant to clause (1). new text end 251.31    Sec. 8. Minnesota Statutes 2012, section 410.32, is amended to read: 251.32410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT. 252.1    (a) Notwithstanding any contrary provision of other law or charter, a home rule 252.2charter city may, by resolution and without public referendum, issue capital notes subject 252.3to the city debt limit to purchase capital equipment. 252.4    (b) For purposes of this section, "capital equipment" means: 252.5    (1) public safety equipment, ambulance and other medical equipment, road 252.6construction and maintenance equipment, and other capital equipment; and 252.7    (2) computer hardware and software, whether bundled with machinery or equipment 252.8or unbundled new text begin , together with application development services and training related to the new text end 252.9 new text begin use of the computer hardware and software new text end . 252.10    (c) The equipment or software must have an expected useful life at least as long 252.11as the term of the notes. 252.12    (d) The notes shall be payable in not more than ten years and be issued on terms and 252.13in the manner the city determines. The total principal amount of the capital notes issued 252.14in a fiscal year shall not exceed 0.03 percent of the market value of taxable property 252.15in the city for that year. 252.16    (e) A tax levy shall be made for the payment of the principal and interest on the 252.17notes, in accordance with section 475.61, as in the case of bonds. 252.18    (f) Notes issued under this section shall require an affirmative vote of two-thirds of 252.19the governing body of the city. 252.20    (g) Notwithstanding a contrary provision of other law or charter, a home rule charter 252.21city may also issue capital notes subject to its debt limit in the manner and subject to the 252.22limitations applicable to statutory cities pursuant to section 412.301. 252.23    Sec. 9. Minnesota Statutes 2012, section 412.301, is amended to read: 252.24412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT. 252.25    (a) The council may issue certificates of indebtedness or capital notes subject to the 252.26city debt limits to purchase capital equipment. 252.27    (b) For purposes of this section, "capital equipment" means: 252.28    (1) public safety equipment, ambulance and other medical equipment, road 252.29construction and maintenance equipment, and other capital equipment; and 252.30    (2) computer hardware and software, whether bundled with machinery or equipment 252.31or unbundled new text begin , together with application development services and training related to the new text end 252.32 new text begin use of the computer hardware or software new text end . 252.33    (c) The equipment or software must have an expected useful life at least as long as 252.34the terms of the certificates or notes. 253.1    (d) Such certificates or notes shall be payable in not more than ten years and shall be 253.2issued on such terms and in such manner as the council may determine. 253.3    (e) If the amount of the certificates or notes to be issued to finance any such purchase 253.4exceeds 0.25 percent of the market value of taxable property in the city, they shall not 253.5be issued for at least ten days after publication in the official newspaper of a council 253.6resolution determining to issue them; and if before the end of that time, a petition asking 253.7for an election on the proposition signed by voters equal to ten percent of the number of 253.8voters at the last regular municipal election is filed with the clerk, such certificates or notes 253.9shall not be issued until the proposition of their issuance has been approved by a majority 253.10of the votes cast on the question at a regular or special election. 253.11    (f) A tax levy shall be made for the payment of the principal and interest on such 253.12certificates or notes, in accordance with section 475.61, as in the case of bonds. 253.13    Sec. 10. Minnesota Statutes 2012, section 473.39, is amended by adding a subdivision 253.14to read: 253.15     new text begin Subd. 1s. new text end new text begin Obligations. new text end new text begin After July 1, 2013, in addition to other authority in this new text end 253.16 new text begin section, the council may issue certificates of indebtedness, bonds, or other obligations new text end 253.17 new text begin under this section in an amount not exceeding $35,800,000 for capital expenditures as new text end 253.18 new text begin prescribed in the council's transit capital improvement program and for related costs, new text end 253.19 new text begin including the costs of issuance and sale of the obligations. new text end 253.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment new text end 253.21 new text begin and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and new text end 253.22 new text begin Washington. This section is not effective if the legislature authorizes and enacts issuance new text end 253.23 new text begin authority of at least $35,800,000 in 2013 H.F. No. 1444. If the legislature authorizes and new text end 253.24 new text begin enacts issuance authority of less than $35,800,000 in 2013 H.F. No. 1444, this section new text end 253.25 new text begin prevails, regardless of order of enactment. new text end 253.26    Sec. 11. Minnesota Statutes 2012, section 473.606, subdivision 3, is amended to read: 253.27    Subd. 3. Treasurer; investments. The treasurer shall receive and be responsible 253.28for all moneys of the corporation, from whatever source derived, and the same shall be 253.29considered public funds. The treasurer shall disburse the moneys of the corporation only 253.30on orders made by the executive and operating officer, herein provided for, countersigned 253.31by such other officer or such employee of the corporation as may be authorized and 253.32directed so to do by the corporation, showing the name of the claimant and the nature of 253.33the claim. No disbursement shall be certified by such officers until the same have been 253.34approved by said commissioners at a meeting thereof. Whenever the executive director of 254.1the corporation shall certify, pursuant to action taken by the commissioners at a meeting 254.2thereof, that there are moneys and the amount thereof in the possession of the treasurer not 254.3currently needed, then the treasurer may invest said amount or any part thereof in: 254.4(a) Treasury bonds, certificates of indebtedness, bonds or notes of the United States 254.5of America, or bonds, notes or certificates of indebtedness of the state of Minnesota, all of 254.6which must mature not later than three years from the date of purchase. 254.7(b) Bonds, notes, debentures or other obligations issued by any agency or 254.8instrumentality of the United States or any securities guaranteed by the United States 254.9government, or for which the credit of the United States is pledged for the payment of 254.10the principal and interest thereof, all of which must mature not later than three years 254.11from date of purchase. 254.12(c) Commercial paper of prime quality, or rated among the top third of the quality 254.13categories, not applicable to defaulted paper, as defined by a nationally recognized 254.14organization which rates such securities as eligible for investment in the state employees 254.15retirement fund except that any nonbanking issuing corporation, or parent company in the 254.16case of paper issued by operating utility or finance subsidiaries, must have total assets 254.17exceeding $500,000,000. Such commercial paper may constitute no more than 30 percent 254.18of the book value of the fund at the time of purchase, and the commercial paper of any 254.19one corporation shall not constitute more than four percent of the book value of the fund 254.20at the time of such investment. 254.21(d) Any securities eligible under the preceding provisions, purchased with 254.22simultaneous repurchase agreement under which the securities will be sold to the particular 254.23dealer on a specified date at a predetermined price. In such instances, all maturities of 254.24United States government securities, or securities issued or guaranteed by the United 254.25States government or an agency thereof, may be purchased so long as any such securities 254.26which mature later than three years from the date of purchase have a current market 254.27value exceeding the purchase price by at least five percent on the date of purchase, and 254.28so long as such repurchase agreement involving securities extending beyond three years 254.29in maturity be limited to a period not exceeding 45 days. 254.30(e) Certificates of deposit issued by any official depository of the commission. The 254.31commission may purchase certificates of deposit from a depository bank in an amount 254.32exceeding that insured by federal depository insurance to the extent that those certificates 254.33are secured by collateral maintained by the bank in a manner as prescribed for investments 254.34of the State Board of Investment. 254.35(f) securities approved for investment under section 118A.04. 255.1Whenever it shall appear to the commissioners that any invested funds are needed 255.2for current purposes before the maturity dates of the securities held, they shall cause the 255.3executive director to so certify to the treasurer and it shall then be the duty of the treasurer 255.4to order the sale or conversion into cash of the securities in the amount so certified. All 255.5interest and profit on said investments shall be credited to and constitute a part of the 255.6funds of the commission. The treasurer shall keep an account of all moneys received 255.7and disbursed, and at least once a year, at times to be designated by the corporation, file 255.8with the secretary a financial statement of the corporation, showing in appropriate and 255.9identifiable groupings the receipts and disbursements since the last approved statements; 255.10moneys on hand and the purposes for which the same are appropriated; and shall keep an 255.11account of all securities purchased as herein provided, the funds from which purchased 255.12and the interest and profit which may have accrued thereon, and shall accompany the 255.13financial statement aforesaid with a statement setting forth such account. The corporation 255.14may pay to the treasurer from time to time compensation in such amount as it may 255.15determine to cover clerk hire to enable the treasurer to carry out duties and those required 255.16in connection with bonds issued by the corporation as in this act authorized. 255.17    Sec. 12. Minnesota Statutes 2012, section 474A.04, subdivision 1a, is amended to read: 255.18    Subd. 1a. Entitlement reservations; carryforward; deduction. Any amount 255.19returned by an entitlement issuer before July 15 shall be reallocated through the housing 255.20pool. Any amount returned on or after July 15 shall be reallocated through the unified 255.21pool. An amount returned after the last Monday in November shall be reallocated to the 255.22Minnesota Housing Finance Agency. Any amount of bonding authority that an entitlement 255.23issuer carries forward under federal tax law that is not permanently issued or for which 255.24the governing body of the entitlement issuer has not enacted a resolution electing to use 255.25the authority for mortgage credit certificates and has not provided a notice of issue to the 255.26commissioner before 4:30 p.m. on the last business day in December of the succeeding 255.27calendar year shall be deducted from the entitlement allocation for that entitlement issuer 255.28in the next succeeding calendar year. Any amount deducted from an entitlement issuer's 255.29allocation under this subdivision shall be reallocated to other entitlement issuers, the 255.30housing pool, the small issue pool, and the public facilities pool on a proportional basis 255.31consistent with section . 255.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment new text end 255.33 new text begin and applies to any bonding authority allocated in 2012 and subsequent years. new text end 255.34    Sec. 13. Minnesota Statutes 2012, section 474A.062, is amended to read: 256.1474A.062 MINNESOTA OFFICE OF HIGHER EDUCATION 120-DAY 256.2ISSUANCE EXEMPTION. 256.3    The Minnesota Office of Higher Education is exempt from the 120-day issuance 256.4requirements in this chapter and may carry forward allocations for student loan bonds into 256.5one successive calendar year, subject to carryforward notice requirements of section 256.6474A.131, subdivision 2 . 256.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment new text end 256.8 new text begin and applies to any bonding authority allocated in 2012 and subsequent years. new text end 256.9    Sec. 14. Minnesota Statutes 2012, section 474A.091, subdivision 3a, is amended to read: 256.10    Subd. 3a. Mortgage bonds. (a) Bonding authority remaining in the unified pool on 256.11October 1 is available for single-family housing programs for cities that applied in January 256.12and received an allocation under section 474A.061, subdivision 2a, in the same calendar 256.13year. The Minnesota Housing Finance Agency shall receive an allocation for mortgage 256.14bonds pursuant to this section, minus any amounts for a city or consortium that intends to 256.15issue bonds on its own behalf under paragraph (c). 256.16    (b) The agency may issue bonds on behalf of participating cities. The agency shall 256.17request an allocation from the commissioner for all applicants who choose to have the 256.18agency issue bonds on their behalf and the commissioner shall allocate the requested 256.19amount to the agency. Allocations shall be awarded by the commissioner each Monday 256.20commencing on the first Monday in October through the last Monday in November for 256.21applications received by 4:30 p.m. on the Monday of the week preceding an allocation. 256.22    For cities who choose to have the agency issue bonds on their behalf, allocations 256.23will be made loan by loan, on a first-come, first-served basis among the cities. The 256.24agency shall submit an application fee pursuant to section 474A.03, subdivision 4, and an 256.25application deposit equal to two percent of the requested allocation to the commissioner 256.26when requesting an allocation from the unified pool. After awarding an allocation and 256.27receiving a notice of issuance for mortgage bonds issued on behalf of the participating 256.28cities, the commissioner shall transfer the application deposit to the Minnesota Housing 256.29Finance Agency. 256.30    For purposes of paragraphs (a) to (d), "city" means a county or a consortium of 256.31local government units that agree through a joint powers agreement to apply together 256.32for single-family housing programs, and has the meaning given it in section 462C.02, 256.33subdivision 6 . "Agency" means the Minnesota Housing Finance Agency. 256.34    (c) Any city that received an allocation pursuant to section 474A.061, subdivision 256.352a, paragraph (f) , in the current year that wishes to receive an additional allocation from 257.1the unified pool and issue bonds on its own behalf or pursuant to a joint powers agreement 257.2shall notify the Minnesota Housing Finance Agency by the third Monday in September. 257.3The total amount of allocation for mortgage bonds for a city choosing to issue bonds on its 257.4own behalf or through a joint powers agreement is limited to the lesser of: (i) the amount 257.5requested, or (ii) the product of the total amount available for mortgage bonds from the 257.6unified pool, multiplied by the ratio of the population of each city that applied in January 257.7and received an allocation under section 474A.061, subdivision 2a, in the same calendar 257.8year, as determined by the most recent estimate of the city's population released by the 257.9state demographer's office to the total of the population of all the cities that applied in 257.10January and received an allocation under section 474A.061, subdivision 2a, in the same 257.11calendar year. If a city choosing to issue bonds on its own behalf or through a joint powers 257.12agreement is located within a county that has also chosen to issue bonds on its own behalf 257.13or through a joint powers agreement, the city's population will be deducted from the 257.14county's population in calculating the amount of allocations under this paragraph. 257.15    The Minnesota Housing Finance Agency shall notify each city choosing to issue 257.16bonds on its own behalf or pursuant to a joint powers agreement of the amount of its 257.17allocation by October 15. Upon determining the amount of the allocation of each choosing 257.18to issue bonds on its own behalf or through a joint powers agreement, the agency shall 257.19forward a list specifying the amounts allotted to each city. 257.20    A city that chooses to issue bonds on its own behalf or through a joint powers 257.21agreement may request an allocation from the commissioner by forwarding an application 257.22with an application fee pursuant to section 474A.03, subdivision 4, and an application 257.23deposit equal to two percent of the requested amount to the commissioner no later than 257.244:30 p.m. on the Monday of the week preceding an allocation. Allocations to cities that 257.25choose to issue bonds on their own behalf shall be awarded by the commissioner on 257.26the first Monday after October 15 through the last Monday in November. No city may 257.27receive an allocation from the commissioner after the last Monday in November. The 257.28commissioner shall allocate the requested amount to the city or cities subject to the 257.29limitations under this subdivision. 257.30    If a city issues mortgage bonds from an allocation received under this paragraph, 257.31the issuer must provide for the recycling of funds into new loans. If the issuer is not 257.32able to provide for recycling, the issuer must notify the commissioner in writing of the 257.33reason that recycling was not possible and the reason the issuer elected not to have the 257.34Minnesota Housing Finance Agency issue the bonds. "Recycling" means the use of money 257.35generated from the repayment and prepayment of loans for further eligible loans or for the 257.36redemption of bonds and the issuance of current refunding bonds. 258.1    (d) No entitlement city or county or city in an entitlement county may apply for or 258.2be allocated authority to issue mortgage bonds or use mortgage credit certificates from 258.3the unified pool. 258.4    (e) An allocation awarded to the agency for mortgage bonds under this section 258.5may be carried forward by the agency into the next succeeding calendar year subject to 258.6notice requirements under section 474A.131 and is available until the last business day in 258.7December of that succeeding calendar year. 258.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment new text end 258.9 new text begin and applies to any bonding authority allocated in 2012 and subsequent years. new text end 258.10    Sec. 15. Minnesota Statutes 2012, section 475.521, subdivision 1, is amended to read: 258.11    Subdivision 1. Definitions. For purposes of this section, the following terms have 258.12the meanings given. 258.13(a) "Bonds" mean an obligation defined under section 475.51. 258.14(b) "Capital improvement" means acquisition or betterment of public lands, 258.15buildings or other improvements for the purpose of a city hall, town hall, library, public 258.16safety facility, and public works facility. An improvement must have an expected useful 258.17life of five years or more to qualify. Capital improvement does not include light rail transit 258.18or any activity related to it, or a park, road, bridge, administrative building other than a 258.19city or town hall, or land for any of those facilities. new text begin For purposes of this section, "capital new text end 258.20 new text begin improvement" includes expenditures for purposes described in this paragraph that have new text end 258.21 new text begin been incurred by a municipality before approval of a capital improvement plan, if such new text end 258.22 new text begin expenditures are included in a capital improvement plan approved on or before the date of new text end 258.23 new text begin the public hearing under subdivision 2 regarding issuance of bonds for such expenditures. new text end 258.24(c) "Municipality" means a home rule charter or statutory city or a town described in 258.25section 368.01, subdivision 1 or 1a. 258.26    Sec. 16. Minnesota Statutes 2012, section 475.521, subdivision 2, is amended to read: 258.27    Subd. 2. Election requirement. (a) Bonds issued by a municipality to finance 258.28capital improvements under an approved capital improvements plan are not subject to the 258.29election requirements of section 475.58. The bonds must be approved by an affirmative 258.30vote of three-fifths of the members of a five-member governing body. In the case of a 258.31governing body having more or less than five members, the bonds must be approved by a 258.32vote of at least two-thirds of the members of the governing body. 258.33(b) Before the issuance of bonds qualifying under this section, the municipality 258.34must publish a notice of its intention to issue the bonds and the date and time of the 259.1hearing to obtain public comment on the matter. The notice must be published in the 259.2official newspaper of the municipality or in a newspaper of general circulation in the 259.3municipality. Additionally, the notice may be posted on the official Web site, if any, of the 259.4municipality. The notice must be published at least 14 but not more than 28 days before 259.5the date of the hearing. 259.6(c) A municipality may issue the bonds only after obtaining the approval of a 259.7majority of the voters voting on the question of issuing the obligations, if a petition 259.8requesting a vote on the issuance is signed by voters equal to five percent of the votes cast 259.9in the municipality in the last new text begin municipal new text end general election and is filed with the clerk within 259.1030 days after the public hearing. The commissioner of revenue shall prepare a suggested 259.11form of the question to be presented at the election. new text begin If the municipality elects not to submit new text end 259.12 new text begin the question to the voters, the municipality shall not propose the issuance of bonds under new text end 259.13 new text begin this section for the same purpose and in the same amount for a period of 365 days from the new text end 259.14 new text begin date of receipt of the petition. If the question of issuing the bonds is submitted and not new text end 259.15 new text begin approved by the voters, the provisions of section 475.58, subdivision 1a, shall apply. new text end 259.16    Sec. 17. Minnesota Statutes 2012, section 475.58, subdivision 3b, is amended to read: 259.17    Subd. 3b. Street reconstruction new text begin and bituminous overlays new text end . (a) A municipality may, 259.18without regard to the election requirement under subdivision 1, issue and sell obligations 259.19for street reconstruction new text begin or bituminous overlays new text end , if the following conditions are met: 259.20    (1) the streets are reconstructed new text begin or overlaid new text end under a street reconstruction new text begin or overlay new text end 259.21plan that describes the street reconstruction new text begin or overlay new text end to be financed, the estimated costs, 259.22and any planned reconstruction new text begin or overlay new text end of other streets in the municipality over the 259.23next five years, and the plan and issuance of the obligations has been approved by a vote 259.24of all of the members of the governing body present at the meeting following a public 259.25hearing for which notice has been published in the official newspaper at least ten days but 259.26not more than 28 days prior to the hearing; and 259.27    (2) if a petition requesting a vote on the issuance is signed by voters equal to 259.28five percent of the votes cast in the last municipal general election and is filed with the 259.29municipal clerk within 30 days of the public hearing, the municipality may issue the bonds 259.30only after obtaining the approval of a majority of the voters voting on the question of the 259.31issuance of the obligations. new text begin If the municipality elects not to submit the question to the new text end 259.32 new text begin voters, the municipality shall not propose the issuance of bonds under this section for the new text end 259.33 new text begin same purpose and in the same amount for a period of 365 days from the date of receipt new text end 259.34 new text begin of the petition. If the question of issuing the bonds is submitted and not approved by the new text end 259.35 new text begin voters, the provisions of section 475.58, subdivision 1a, shall apply. new text end 260.1    (b) Obligations issued under this subdivision are subject to the debt limit of the 260.2municipality and are not excluded from net debt under section 475.51, subdivision 4. 260.3    (c) For purposes of this subdivision, street reconstruction new text begin and bituminous overlays new text end 260.4includes utility replacement and relocation and other activities incidental to the street 260.5reconstruction, turn lanes and other improvements having a substantial public safety 260.6function, realignments, other modifications to intersect with state and county roads, and 260.7the local share of state and county road projects. new text begin For purposes of this subdivision, "street new text end 260.8 new text begin reconstruction" includes expenditures for street reconstruction that have been incurred new text end 260.9 new text begin by a municipality before approval of a street reconstruction plan, if such expenditures new text end 260.10 new text begin are included in a street reconstruction plan approved on or before the date of the public new text end 260.11 new text begin hearing under paragraph (a), clause (1), regarding issuance of bonds for such expenditures. new text end 260.12    (d) Except in the case of turn lanes, safety improvements, realignments, intersection 260.13modifications, and the local share of state and county road projects, street reconstruction 260.14 new text begin and bituminous overlays new text end does not include the portion of project cost allocable to widening 260.15a street or adding curbs and gutters where none previously existed. 260.16    Sec. 18. Laws 1971, chapter 773, section 1, subdivision 2, as amended by Laws 1974, 260.17chapter 351, section 5, Laws 1976, chapter 234, sections 1 and 7, Laws 1978, chapter 788, 260.18section 1, Laws 1981, chapter 369, section 1, Laws 1983, chapter 302, section 1, Laws 260.191988, chapter 513, section 1, Laws 1992, chapter 511, article 9, section 23, Laws 1998, 260.20chapter 389, article 3, section 27, and Laws 2002, chapter 390, section 23, is amended to 260.21read: 260.22    Subd. 2. For each of the years 2003 to 2013 new text begin to 2024 new text end , the city of St. Paul is 260.23authorized to issue bonds in the aggregate principal amount of $20,000,000 for each year. 260.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after compliance by the new text end 260.25 new text begin governing body of the city of St. Paul with Minnesota Statutes, section 645.021, new text end 260.26 new text begin subdivisions 2 and 3. new text end 260.27    Sec. 19. new text begin CARRYFORWARD OF BONDING AUTHORITY FOR 2011; NO new text end 260.28 new text begin DEDUCTION FROM ENTITLEMENT ALLOCATION. new text end 260.29     new text begin Notwithstanding Minnesota Statutes, section 474A.04, subdivision 1a, bonding new text end 260.30 new text begin authority that was allocated to an entitlement issuer in 2011 and that was carried forward new text end 260.31 new text begin under federal tax law, but for which the entitlement issuer did not provide a notice of issue new text end 260.32 new text begin to the commissioner of management and budget before 4:30 p.m. on the last business new text end 260.33 new text begin day of December 2012 must not be deducted from the entitlement allocation for that new text end 260.34 new text begin entitlement issuer in 2013. new text end 261.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment new text end 261.2 new text begin and applies retroactively to rescind any reallocation by the commissioner of management new text end 261.3 new text begin and budget under Minnesota Statues, section 474A.04, subdivision 1a, of any amounts so new text end 261.4 new text begin deducted. new text end 261.5    Sec. 20. new text begin LOCAL MATCH; INDEPENDENT SCHOOL DISTRICT NO. 435; new text end 261.6 new text begin WAUBUN-OGEMA-WHITE EARTH. new text end 261.7 new text begin (a) Independent School District No. 435, Waubun-Ogema-White Earth, may expand new text end 261.8 new text begin classroom space at its Ogema Elementary site using a grant of $551,532 that was awarded new text end 261.9 new text begin to the district by the Department of Human Services on August 12, 2012, pursuant to a new text end 261.10 new text begin grant agreement as provided by Minnesota Statutes, section 16A.695, subdivision 9. new text end 261.11 new text begin Notwithstanding Minnesota Statutes, section 16A.695, subdivision 6, to satisfy the match new text end 261.12 new text begin requirements of the grant agreement, the district may use a lease-purchase agreement. new text end 261.13 new text begin Notwithstanding Minnesota Statutes, section 465.71, the lease-purchase agreement must new text end 261.14 new text begin provide that the title to the lease-purchased property must be held by the district. new text end 261.15 new text begin (b) Notwithstanding Minnesota Statutes, section 126C.13, subdivision 4, if the new text end 261.16 new text begin school district enters a lease-purchase agreement to satisfy the local match under new text end 261.17 new text begin paragraph (a), but fails to make a lease-purchase payment, the commissioner of education new text end 261.18 new text begin shall reduce its general education aid under Minnesota Statutes, section 126C.13, new text end 261.19 new text begin subdivision 4, by the amount of the lease-purchase payment. new text end 261.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 261.21    Sec. 21. new text begin LEGISLATIVE OFFICE FACILITIES. new text end 261.22 new text begin (a) The commissioner of administration may enter into a long-term lease-purchase new text end 261.23 new text begin agreement for a term of up to 25 years, to predesign, design, construct, and equip offices, new text end 261.24 new text begin hearing rooms, and parking facilities for legislative and other functions. The facility must new text end 261.25 new text begin be located on the block bounded by Sherburne Avenue on the north, Park Street on the new text end 261.26 new text begin west, University Avenue on the south, and North Capitol Boulevard on the east. The new text end 261.27 new text begin legislative office facility must provide office accommodations for all senators and senate new text end 261.28 new text begin staff who do not have offices in the Capitol building and on-site parking facilities for all new text end 261.29 new text begin members and staff and disabled visitors to senate offices. A parking structure may also new text end 261.30 new text begin be built on the state-owned land located in the block bounded by Sherburne Avenue new text end 261.31 new text begin on the north, Park Street on the east, University Avenue on the south, and Rice Street new text end 261.32 new text begin on the west. The commissioner of management and budget may issue lease revenue new text end 261.33 new text begin bonds or certificates of participation associated with the lease-purchase agreement. The new text end 261.34 new text begin lease-purchase agreements must not be terminated, except for nonappropriation of new text end 262.1 new text begin money. The lease-purchase agreements must provide the state with a unilateral right to new text end 262.2 new text begin purchase the leased premises at specified times for specified amounts. The lease-purchase new text end 262.3 new text begin agreements are exempt from Minnesota Statutes, section 16B.24, subdivisions 6 and 6a. new text end 262.4 new text begin (b) The facilities under the lease-purchase agreement are exempt from the design new text end 262.5 new text begin competition requirement under Minnesota Statutes, section 15B.10. Notwithstanding new text end 262.6 new text begin anything to the contrary under Minnesota Statutes, sections 16C.32 and 16C.33, if the new text end 262.7 new text begin commissioner of administration elects to use a design-build delivery method to design and new text end 262.8 new text begin construct one or more facilities under this appropriation, the Capitol Area Architectural and new text end 262.9 new text begin Planning Board, in cooperation with the commissioner, shall create a selection committee new text end 262.10 new text begin to act as the board under Minnesota Statutes, sections 16C.32 and 16C.33, for the design new text end 262.11 new text begin and construction of the facilities. Notwithstanding Minnesota Statutes, section 16B.33, if new text end 262.12 new text begin the commissioner elects to contract with a primary designer to design one or more facilities new text end 262.13 new text begin under this appropriation, the Capitol Area Architectural and Planning Board, in cooperation new text end 262.14 new text begin with the commissioner, shall create a selection committee to conduct the selection process new text end 262.15 new text begin in accordance with standards under Minnesota Statutes, chapters 15B, 16B, and 16C. A new text end 262.16 new text begin selection committee created under this section must contain no more than seven members, new text end 262.17 new text begin including at least three representatives designated by the senate Committee on Rules and new text end 262.18 new text begin Administration and three representatives designated by the speaker of the house. new text end 262.19 new text begin (c) Notwithstanding any provision to the contrary in Minnesota Statutes, sections new text end 262.20 new text begin 16C.32 and 16C.33, if the commissioner of administration elects to use a design-build new text end 262.21 new text begin delivery method to design, construct, and equip one or more facilities and associated new text end 262.22 new text begin infrastructure to provide audio and video broadcast services for the Capitol building, State new text end 262.23 new text begin Office Building, and a new legislative office building, if applicable, the commissioner new text end 262.24 new text begin shall create a selection committee to act as the board under Minnesota Statutes, sections new text end 262.25 new text begin 16C.32 and 16C.33, to design, build, and equip the facilities. The selected design-builder new text end 262.26 new text begin may self-perform trade work or name an audio and video subcontractor as a member of new text end 262.27 new text begin the design-builder's team. If an audio and video subcontractor is named as a member of new text end 262.28 new text begin the design-builder's team, the design-builder is not required to competitively bid the trade new text end 262.29 new text begin work. Notwithstanding Minnesota Statutes, section 16C.33, subdivision 5, paragraph (b), new text end 262.30 new text begin after obtaining and evaluating qualifications from each design-builder, in accordance new text end 262.31 new text begin with the weighted criteria and subcriteria and procedures provided in the request for new text end 262.32 new text begin qualifications, the selection committee shall select a short list of up to five proposals. If new text end 262.33 new text begin the commissioner does not receive any proposals, the commissioner may either: new text end 262.34 new text begin (1) solicit new proposals; new text end 262.35 new text begin (2) revise the request for qualifications and thereafter solicit new proposals using new text end 262.36 new text begin the revised request for qualifications; or new text end 263.1 new text begin (3) request selection of a primary designer under Minnesota Statutes, section new text end 263.2 new text begin 16B.33, 16C.08, or 16C.095, and proceed with competitive bidding pursuant to Minnesota new text end 263.3 new text begin Statutes, sections 16C.25 to 16C.29. new text end 263.4 new text begin (d) The commissioner of administration may enter into a ground lease for state-owned new text end 263.5 new text begin property in the capitol area in conjunction with the execution of a lease-purchase new text end 263.6 new text begin agreement entered into under this section for any improvements constructed on that site. new text end 263.7 new text begin Notwithstanding the requirements of Minnesota Statutes, section 16A.695, subdivision 2, new text end 263.8 new text begin paragraph (b), the ground lease must be for a term equal to the term of the lease-purchase new text end 263.9 new text begin agreement, and must include an option to purchase the land at its then fair market value, if new text end 263.10 new text begin the improvements are not purchased by the state at the end of the term of the lease-purchase new text end 263.11 new text begin agreement, or at any earlier time that the lease-purchase agreement is terminated. new text end 263.12 new text begin (e) The commissioner of administration must not prepare final plans and new text end 263.13 new text begin specifications for any construction authorized under this section until the program plan new text end 263.14 new text begin and cost estimates for all elements necessary to complete the project have been approved new text end 263.15 new text begin by the senate Committee on Rules and Administration. new text end 263.16 new text begin (f) $3,000,000 is appropriated in fiscal year 2014 from the general fund to the new text end 263.17 new text begin commissioner of administration for predesign and design of facilities authorized under new text end 263.18 new text begin paragraph (a). This appropriation is available for expenditure the day following final new text end 263.19 new text begin enactment and until June 30, 2015. new text end 263.20 new text begin (g) The commissioner of administration may reserve a portion of money from new text end 263.21 new text begin appropriations for office space costs of the legislature to fund future repairs for facilities new text end 263.22 new text begin constructed under the authority provided in this section. Money reserved under this new text end 263.23 new text begin paragraph must be credited to a segregated account for each building in the special new text end 263.24 new text begin revenue fund and is appropriated to the commissioner to make the repairs. When the state new text end 263.25 new text begin acquires title to a building with an account established under this paragraph, the account new text end 263.26 new text begin for that building must be abolished and the balance remaining in the account must be new text end 263.27 new text begin transferred to the appropriate asset preservation and replacement account. new text end 263.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 263.29    Sec. 22. new text begin APPROPRIATION; RELOCATION EXPENSES. new text end 263.30 new text begin $1,860,000 is appropriated from the general fund to the commissioner of new text end 263.31 new text begin administration for rent loss and relocation expenses related to the Capitol renovation new text end 263.32 new text begin project for fiscal year 2014. Notwithstanding Minnesota Statutes, section 16A.642, new text end 263.33 new text begin this appropriation is available until June 30, 2015. The base for this appropriation is new text end 263.34 new text begin $1,380,000 in fiscal year 2016, $960,000 in fiscal year 2017, and $0 after that. new text end 264.1ARTICLE 13 264.2MISCELLANEOUS PROVISIONS 264.3    Section 1. Minnesota Statutes 2012, section 16A.727, is amended to read: 264.416A.727 BACKUP REVENUES; FOOTBALL STADIUM FUNDING. 264.5    (a) If the commissioner of management and budget determines that the amount of 264.6revenues under section 297E.021, subdivision 2, for the next fiscal year new text begin , plus $20,000,000, new text end 264.7 will be less than the amounts specified in section 297E.021, subdivision 3, paragraph (a), 264.8 clause (1), items (i) to (iii), for that fiscal year, the commissioner may implement the 264.9revenue options authorized in Laws 2012, chapter 299, article 6; provided that this section 264.10does not constitute a pledge of tax revenues as security for the payment of principal and 264.11interest on appropriation bonds issued under section 16A.695. If the commissioner 264.12determines to exercise the authority under this section for a fiscal year, the commissioner 264.13must implement the revenue options, as necessary, in the following order: 264.14    (1) a sports-themed lottery game under section 349A.20; and 264.15(2) a tax on suites as provided under section 473J.14. 264.16    (b) Revenue raised under the authority granted by this section must be deposited 264.17in the general fund. 264.18    (c) If the commissioner determines to implement one or more of the revenue options 264.19authorized by this section, each subsequent year the commissioner must determine if 264.20the revenue is needed and will be imposed and collected for the next fiscal year. If the 264.21commissioner determines that one or more revenue options implemented for a fiscal year 264.22are not needed for a subsequent fiscal year, the commissioner must terminate them in the 264.23reverse order they were required to be implemented by paragraph (a) with the last option 264.24implemented terminated first and so forth. 264.25    (d) Before implementing a revenue source authorized under this section, the 264.26commissioner must report the intent to do so to the Legislative Commission on Planning 264.27and Fiscal Policy. The commissioner must inform the commission of determinations to 264.28continue or discontinue each revenue source for a subsequent fiscal year. 264.29(e) The provisions of this section no longer apply after the Minnesota Sports 264.30Facilities Authority certifies to the commissioner that it has determined that the revenues 264.31of the general fund under section 297A.994, the increased revenues under chapter 297E, 264.32and other available resources of the authority provide adequate financial security for 264.33the state and the authority. 264.34 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 265.1    Sec. 2. new text begin [116V.03] APPROPRIATION. new text end 265.2 new text begin $1,000,000 in fiscal year 2014 and each year thereafter is appropriated from the new text end 265.3 new text begin general fund to the commissioner of revenue for transfer to the agricultural project new text end 265.4 new text begin utilization account in the special revenue fund for the Agricultural Utilization Research new text end 265.5 new text begin Institute established under section 116V.01. new text end 265.6    Sec. 3. Minnesota Statutes 2012, section 237.52, subdivision 3, is amended to read: 265.7    Subd. 3. Collection. Every provider of services capable of originating a TRS call, 265.8including cellular communications and other nonwire access services, in this state shall new text begin , new text end 265.9 new text begin except as provided in subdivision 3a, new text end collect the charges established by the commission 265.10under subdivision 2 and transfer amounts collected to the commissioner of public 265.11safety in the same manner as provided in section 403.11, subdivision 1, paragraph (d). 265.12The commissioner of public safety must deposit the receipts in the fund established in 265.13subdivision 1. 265.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2014. new text end 265.15    Sec. 4. Minnesota Statutes 2012, section 237.52, is amended by adding a subdivision 265.16to read: 265.17     new text begin Subd. 3a. new text end new text begin Fee for prepaid wireless telecommunications service. new text end new text begin The fee new text end 265.18 new text begin established in subdivision 2 does not apply to prepaid wireless telecommunications new text end 265.19 new text begin services as defined in section 403.02, subdivision 17b, which are instead subject to the new text end 265.20 new text begin prepaid wireless telecommunications access Minnesota fee established in section 403.161, new text end 265.21 new text begin subdivision 1, paragraph (b). Collection, remittance, and deposit of prepaid wireless new text end 265.22 new text begin telecommunications access Minnesota fees are governed by sections 403.161 and 403.162. new text end 265.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2014. new text end 265.24    Sec. 5. Minnesota Statutes 2012, section 270B.01, subdivision 8, is amended to read: 265.25    Subd. 8. Minnesota tax laws. For purposes of this chapter only, unless expressly 265.26stated otherwise, "Minnesota tax laws" means: 265.27    (1) the taxes, refunds, and fees administered by or paid to the commissioner under 265.28chapters 115B, 289A (except taxes imposed under sections 298.01, 298.015, and 298.24), 265.29290, 290A, 291, 295, 297A, 297B, and 297H, new text begin and 403, new text end or any similar Indian tribal tax 265.30administered by the commissioner pursuant to any tax agreement between the state and 265.31the Indian tribal government, and includes any laws for the assessment, collection, and 265.32enforcement of those taxes, refunds, and fees; and 266.1    (2) section 273.1315. 266.2 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2014. new text end 266.3    Sec. 6. Minnesota Statutes 2012, section 270B.12, subdivision 4, is amended to read: 266.4    Subd. 4. Department of Public Safety. The commissioner may disclose return 266.5information to the Department of Public Safety for the purpose of and to the extent 266.6necessary to administer section new text begin sections new text end 270C.725 new text begin and 403.16 to 403.162 new text end . 266.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2014. new text end 266.8    Sec. 7. Minnesota Statutes 2012, section 270C.03, subdivision 1, is amended to read: 266.9    Subdivision 1. Powers and duties. The commissioner shall have and exercise 266.10the following powers and duties: 266.11    (1) administer and enforce the assessment and collection of taxes; 266.12    (2) make determinations, corrections, and assessments with respect to taxes, 266.13including interest, additions to taxes, and assessable penalties; 266.14    (3) use statistical or other sampling techniques consistent with generally accepted 266.15auditing standards in examining returns or records and making assessments; 266.16    (4) investigate the tax laws of other states and countries, and formulate and submit 266.17to the legislature such legislation as the commissioner may deem expedient to prevent 266.18evasions of state revenue laws and to secure just and equal taxation and improvement in 266.19the system of state revenue laws; 266.20    (5) consult and confer with the governor upon the subject of taxation, the 266.21administration of the laws in regard thereto, and the progress of the work of the 266.22department, and furnish the governor, from time to time, such assistance and information 266.23as the governor may require relating to tax matters; 266.24    (6) execute and administer any agreement with the secretary of the treasury or the 266.25Bureau of Alcohol, Tobacco, Firearms and Explosives in the Department of Justice of the 266.26United States or a representative of another state regarding the exchange of information 266.27and administration of the state revenue laws; 266.28    (7) require town, city, county, and other public officers to report information as to the 266.29collection of taxes received from licenses and other sources, and such other information 266.30as may be needful in the work of the commissioner, in such form as the commissioner 266.31may prescribe; 266.32    (8) authorize the use of unmarked motor vehicles to conduct seizures or criminal 266.33investigations pursuant to the commissioner's authority; 267.1    (9) new text begin authorize the participation in audits performed by the Multistate Tax Commission. new text end 267.2 new text begin For the purposes of chapter 270B, the Multistate Tax Commission will be considered to be new text end 267.3 new text begin a state for the purposes of auditing corporate sales, excise, and income tax returns. new text end 267.4     new text begin (10) new text end maintain toll-free telephone access for taxpayer assistance for calls from 267.5locations within the state; and 267.6    (10) new text begin (11) new text end exercise other powers and authority and perform other duties required of or 267.7imposed upon the commissioner by law. 267.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 267.9    Sec. 8. Minnesota Statutes 2012, section 271.06, subdivision 2a, as added by Laws 267.102013, chapter 36, section 1, is amended to read: 267.11    Subd. 2a. Timely mailing treated as timely filing. (a) If, after the period prescribed 267.12by subdivision 2, the original notice of appeal, proof of service upon the commissioner, 267.13and filing fee are delivered by mail in the United States new text begin mail new text end to the Tax Court administrator 267.14or the court administrator of district court acting as court administrator of the Tax Court, 267.15then the date of filing is the date of the United States postmark stamped on the envelope 267.16or other appropriate wrapper in which the notice of appeal, proof of service upon the 267.17commissioner, and filing fee are mailed. 267.18(b) This subdivision applies only if the postmark date falls within the period 267.19prescribed by subdivision 2 and the original notice of appeal, proof of service upon the 267.20commissioner, and filing fee are new text begin , within the time prescribed by subdivision 2, new text end deposited in 267.21the mail in the United States in an envelope or other appropriate wrapper, postage prepaid, 267.22properly addressed to the Tax Court administrator or the court administrator of district 267.23court acting as court administrator of the Tax Court. 267.24(c) Only the postmark of the United States Postal Service qualifies as proof of 267.25timely mailing under this subdivision. Private postage meters do not qualify as proof of 267.26timely filing under this subdivision. If the original notice of appeal, proof of service 267.27upon the commissioner, and filing fee are sent by United States registered mail, the date 267.28of registration is the postmark date. If the original notice of appeal, proof of service 267.29upon the commissioner, and filing fee are sent by United States certified mail and the 267.30sender's receipt is postmarked by the postal employee to whom the envelope containing 267.31the original notice of appeal, proof of service upon the commissioner, and filing fee is 267.32presented, the date of the United States postmark on the receipt is the postmark date. 267.33(d) A reference in this section to mail in the United States new text begin mail new text end must be treated as 267.34including a reference to any designated delivery service and a reference in this section to 267.35a postmark by the United States Postal Service must be treated as including a reference 268.1to any date recorded or marked by any designated delivery service in accordance with 268.2section 7502(f) of the Internal Revenue Code. 268.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for filings delivered by the United new text end 268.4 new text begin States Postal Service with a postmark date after August 1, 2013. new text end 268.5    Sec. 9. Minnesota Statutes 2012, section 297E.021, subdivision 3, is amended to read: 268.6    Subd. 3. Available revenues. For purposes of this section, "available revenues" 268.7equals the amount determined under subdivision 2 new text begin , plus up to $20,000,000 each fiscal year new text end 268.8 new text begin from the taxes imposed under section 290.06, subdivision 1 new text end : 268.9(1) reduced by the following amounts paid for the fiscal year under: 268.10    (i) the appropriation to principal and interest on appropriation bonds under section 268.1116A.965, subdivision 8 ; 268.12    (ii) the appropriation from the general fund to make operating expense payments 268.13under section 473J.13, subdivision 2, paragraph (b); 268.14    (iii) the appropriation for contributions to the capital reserve fund under section 268.15473J.13, subdivision 4 , paragraph (c); 268.16    (iv) the appropriations under Laws 2012, chapter 299, article 4, for administration 268.17and any successor appropriation; 268.18    (v) the reduction in revenues resulting from the sales tax exemptions under section 268.19297A.71, subdivision 43 ; 268.20    (vi) reimbursements authorized by section 473J.15, subdivision 2, paragraph (d); 268.21    (vii) the compulsive gambling appropriations under section 297E.02, subdivision 3, 268.22paragraph (c), and any successor appropriation; and 268.23(viii) the appropriation for the city of St. Paul under section 16A.726, paragraph 268.24(c); and 268.25    (2) increased by the revenue deposited in the general fund under section 297A.994, 268.26subdivision 4, clauses (1) to (3), for the fiscal year. 268.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 268.28    Sec. 10. Minnesota Statutes 2012, section 403.02, is amended by adding a subdivision 268.29to read: 268.30     new text begin Subd. 17b. new text end new text begin Prepaid wireless telecommunications service. new text end new text begin "Prepaid wireless new text end 268.31 new text begin telecommunications service" means a wireless telecommunications service that allows the new text end 268.32 new text begin caller to dial 911 to access the 911 system, which service must be paid for in advance and is: new text end 269.1 new text begin (1) sold in predetermined units or dollars of which the number declines with use in a new text end 269.2 new text begin known amount; or new text end 269.3 new text begin (2) provides unlimited use for a predetermined time period. new text end 269.4 new text begin The inclusion of nontelecommunications services, including the download of digital new text end 269.5 new text begin products delivered electronically, content, and ancillary services, with a prepaid wireless new text end 269.6 new text begin telecommunications service does not preclude that service from being considered a new text end 269.7 new text begin prepaid wireless telecommunications service under this chapter. new text end 269.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2014. new text end 269.9    Sec. 11. Minnesota Statutes 2012, section 403.02, is amended by adding a subdivision 269.10to read: 269.11     new text begin Subd. 20a. new text end new text begin Wireless telecommunications service. new text end new text begin Wireless telecommunications new text end 269.12 new text begin service means a commercial mobile radio service, as that term is defined in United new text end 269.13 new text begin States Code, title 47, section 332, subsection (d), including all broadband personal new text end 269.14 new text begin communication services, wireless radio telephone services, and geographic area new text end 269.15 new text begin specialized mobile radio licensees, that offer real-time, two-way voice service new text end 269.16 new text begin interconnected with the public switched telephone network. new text end 269.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2014. new text end 269.18    Sec. 12. Minnesota Statutes 2012, section 403.02, subdivision 21, is amended to read: 269.19    Subd. 21. Wireless telecommunications service provider. "Wireless 269.20telecommunications service provider" means a provider of commercial mobile radio 269.21services, as that term is defined in United States Code, title 47, section 332, subsection 269.22(d), including all broadband personal communications services, wireless radio telephone 269.23services, geographic area specialized and enhanced specialized mobile radio services, and 269.24incumbent wide area specialized mobile radio licensees, that offers real-time, two-way 269.25voice service interconnected with the public switched telephone network and that is doing 269.26business in the state of Minnesota new text begin wireless telecommunications service new text end . 269.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2014. new text end 269.28    Sec. 13. Minnesota Statutes 2012, section 403.06, subdivision 1a, is amended to read: 269.29    Subd. 1a. Biennial budget; annual financial report. The commissioner shall 269.30prepare a biennial budget for maintaining the 911 system. By December 15 of each year, 269.31the commissioner shall submit a report to the legislature detailing the expenditures for 269.32maintaining the 911 system, the 911 fees collected, the balance of the 911 fund, and the 270.1911-related administrative expenses of the commissioner new text begin , and the most recent forecast of new text end 270.2 new text begin revenues and expenditures for the 911 emergency telecommunications service account, new text end 270.3 new text begin including a separate projection of E911 fees from prepaid wireless customers and new text end 270.4 new text begin projections of year-end fund balances new text end . The commissioner is authorized to expend money 270.5that has been appropriated to pay for the maintenance, enhancements, and expansion 270.6of the 911 system. 270.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 270.8    Sec. 14. Minnesota Statutes 2012, section 403.11, subdivision 1, is amended to read: 270.9    Subdivision 1. Emergency telecommunications service fee; account. (a) Each 270.10customer of a wireless or wire-line switched or packet-based telecommunications service 270.11provider connected to the public switched telephone network that furnishes service capable 270.12of originating a 911 emergency telephone call is assessed a fee based upon the number 270.13of wired or wireless telephone lines, or their equivalent, to cover the costs of ongoing 270.14maintenance and related improvements for trunking and central office switching equipment 270.15for 911 emergency telecommunications service, to offset administrative and staffing costs 270.16of the commissioner related to managing the 911 emergency telecommunications service 270.17program, to make distributions provided for in section 403.113, and to offset the costs, 270.18including administrative and staffing costs, incurred by the State Patrol Division of the 270.19Department of Public Safety in handling 911 emergency calls made from wireless phones. 270.20    (b) Money remaining in the 911 emergency telecommunications service account 270.21after all other obligations are paid must not cancel and is carried forward to subsequent 270.22years and may be appropriated from time to time to the commissioner to provide financial 270.23assistance to counties for the improvement of local emergency telecommunications 270.24services. The improvements may include providing access to 911 service for 270.25telecommunications service subscribers currently without access and upgrading existing 270.26911 service to include automatic number identification, local location identification, 270.27automatic location identification, and other improvements specified in revised county 270.28911 plans approved by the commissioner. 270.29    (c) The fee may not be less than eight cents nor more than 65 cents a month until 270.30June 30, 2008, not less than eight cents nor more than 75 cents a month until June 30, 270.312009, not less than eight cents nor more than 85 cents a month until June 30, 2010, and 270.32not less than eight cents nor more than 95 cents a month on or after July 1, 2010, for 270.33each customer access line or other basic access service, including trunk equivalents as 270.34designated by the Public Utilities Commission for access charge purposes and including 270.35wireless telecommunications services. With the approval of the commissioner of 271.1management and budget, the commissioner of public safety shall establish the amount of 271.2the fee within the limits specified and inform the companies and carriers of the amount to 271.3be collected. When the revenue bonds authorized under section 403.27, subdivision 1, 271.4have been fully paid or defeased, the commissioner shall reduce the fee to reflect that debt 271.5service on the bonds is no longer needed. The commissioner shall provide companies and 271.6carriers a minimum of 45 days' notice of each fee change. The fee must be the same for all 271.7customers new text begin , except that the fee imposed under this subdivision does not apply to prepaid new text end 271.8 new text begin wireless telecommunications service, which is instead subject to the fee imposed under new text end 271.9 new text begin section 403.161, subdivision 1, paragraph (a) new text end . 271.10    (d) The fee must be collected by each wireless or wire-line telecommunications 271.11service provider subject to the fee. Fees are payable to and must be submitted to the 271.12commissioner monthly before the 25th of each month following the month of collection, 271.13except that fees may be submitted quarterly if less than $250 a month is due, or annually if 271.14less than $25 a month is due. Receipts must be deposited in the state treasury and credited 271.15to a 911 emergency telecommunications service account in the special revenue fund. The 271.16money in the account may only be used for 911 telecommunications services. 271.17    (e) This subdivision does not apply to customers of interexchange carriers. 271.18    (f) The installation and recurring charges for integrating wireless 911 calls into 271.19enhanced 911 systems are eligible for payment by the commissioner if the 911 service 271.20provider is included in the statewide design plan and the charges are made pursuant to 271.21contract. 271.22    (g) Competitive local exchanges carriers holding certificates of authority from the 271.23Public Utilities Commission are eligible to receive payment for recurring 911 services. 271.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2014. new text end 271.25    Sec. 15. Minnesota Statutes 2012, section 403.11, is amended by adding a subdivision 271.26to read: 271.27     new text begin Subd. 3d. new text end new text begin Eligible telecommunications carrier; requirement. new text end new text begin No wireless new text end 271.28 new text begin communications provider may provide telecommunications services under a designation new text end 271.29 new text begin of eligible telecommunications carrier, as provided under Minnesota Rule 7811.1400, new text end 271.30 new text begin until and unless the commissioner of public safety certifies to the chair of the public new text end 271.31 new text begin utilities commission that the wireless telecommunications provider is not in arrears in new text end 271.32 new text begin amounts owed to the 911 emergency telecommunications service account in the special new text end 271.33 new text begin revenue fund. new text end 271.34 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 272.1    Sec. 16. Minnesota Statutes 2012, section 403.11, is amended by adding a subdivision 272.2to read: 272.3     new text begin Subd. 6. new text end new text begin Report. new text end new text begin (a) Beginning September 1, 2013, and continuing semiannually new text end 272.4 new text begin thereafter, each wireless telecommunications service provider shall report to the new text end 272.5 new text begin commissioner, based on the mobile telephone number, both the total number of prepaid new text end 272.6 new text begin wireless telecommunications subscribers sourced to Minnesota and the total number of new text end 272.7 new text begin wireless telecommunications subscribers sourced to Minnesota. The report must be filed new text end 272.8 new text begin on the same schedule as Federal Communications Commission Form 477. new text end 272.9 new text begin (b) The commissioner shall make a standard form available to all wireless new text end 272.10 new text begin telecommunications service providers for submitting information required to compile new text end 272.11 new text begin the report required under this subdivision. new text end 272.12 new text begin (c) The information provided to the commissioner under this subdivision is new text end 272.13 new text begin considered trade secret information under section 13.37 and may only be used for purposes new text end 272.14 new text begin of administering this chapter. new text end 272.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2014. new text end 272.16    Sec. 17. new text begin [403.16] DEFINITIONS. new text end 272.17     new text begin Subdivision 1. new text end new text begin Scope. new text end new text begin For the purposes of sections 403.16 to 403.164, the terms new text end 272.18 new text begin defined in this section have the meanings given them. new text end 272.19     new text begin Subd. 2. new text end new text begin Consumer. new text end new text begin "Consumer" means a person who purchases prepaid wireless new text end 272.20 new text begin telecommunications service in a retail transaction. new text end 272.21     new text begin Subd. 3. new text end new text begin Department. new text end new text begin "Department" means the Department of Revenue. new text end 272.22     new text begin Subd. 4. new text end new text begin Prepaid wireless E911 fee. new text end new text begin "Prepaid wireless E911 fee" means the fee that new text end 272.23 new text begin is required to be collected by a seller from a consumer as established in section 403.161, new text end 272.24 new text begin subdivision 1, paragraph (a). new text end 272.25     new text begin Subd. 5. new text end new text begin Prepaid wireless telecommunications access Minnesota fee. new text end new text begin "Prepaid new text end 272.26 new text begin wireless telecommunications access Minnesota fee" means the fee that is required to be new text end 272.27 new text begin collected by a seller from a consumer as established in section 403.161, subdivision 1, new text end 272.28 new text begin paragraph (b). new text end 272.29     new text begin Subd. 6. new text end new text begin Provider. new text end new text begin "Provider" means a person that provides prepaid wireless new text end 272.30 new text begin telecommunications service under a license issued by the Federal Communications new text end 272.31 new text begin Commission. new text end 272.32     new text begin Subd. 7. new text end new text begin Retail transaction. new text end new text begin "Retail transaction" means the purchase of prepaid new text end 272.33 new text begin wireless telecommunications service from a seller for any purpose other than resale. new text end 272.34     new text begin Subd. 8. new text end new text begin Seller. new text end new text begin "Seller" means a person who sells prepaid wireless new text end 272.35 new text begin telecommunications service to another person. new text end 273.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2014. new text end 273.2    Sec. 18. new text begin [403.161] PREPAID WIRELESS FEES IMPOSED; COLLECTION; new text end 273.3 new text begin REMITTANCE. new text end 273.4     new text begin Subdivision 1. new text end new text begin Fees imposed. new text end new text begin (a) A prepaid wireless E911 fee of 80 cents per retail new text end 273.5 new text begin transaction is imposed on prepaid wireless telecommunications service until the fee is new text end 273.6 new text begin adjusted as an amount per retail transaction under subdivision 7. new text end 273.7 new text begin (b) A prepaid wireless telecommunications access Minnesota fee, in the amount of new text end 273.8 new text begin the monthly charge provided for in section 237.52, subdivision 2, is imposed on each new text end 273.9 new text begin retail transaction for prepaid wireless telecommunications service until the fee is adjusted new text end 273.10 new text begin as an amount per retail transaction under subdivision 7. new text end 273.11     new text begin Subd. 2. new text end new text begin Exemption. new text end new text begin The fees established under subdivision 1 are not imposed on a new text end 273.12 new text begin minimal amount of prepaid wireless telecommunications service that is sold with a prepaid new text end 273.13 new text begin wireless device and is charged a single nonitemized price, and a seller may not apply the new text end 273.14 new text begin fees to such a transaction. For purposes of this subdivision, a minimal amount of service new text end 273.15 new text begin means an amount of service denominated as either ten minutes or less or $5 or less. new text end 273.16     new text begin Subd. 3. new text end new text begin Fee collected. new text end new text begin The prepaid wireless E911 and telecommunications new text end 273.17 new text begin access Minnesota fees must be collected by the seller from the consumer for each retail new text end 273.18 new text begin transaction occurring in this state. The amount of each fee must be combined into one new text end 273.19 new text begin amount, which must be separately stated on an invoice, receipt, or other similar document new text end 273.20 new text begin that is provided to the consumer by the seller. new text end 273.21     new text begin Subd. 4. new text end new text begin Sales and use tax treatment. new text end new text begin For purposes of this section, a retail new text end 273.22 new text begin transaction conducted in person by a consumer at a business location of the seller must new text end 273.23 new text begin be treated as occurring in this state if that business location is in this state, and any other new text end 273.24 new text begin retail transaction must be treated as occurring in this state if the retail transaction is treated new text end 273.25 new text begin as occurring in this state for purposes of the sales and use tax as specified in section new text end 273.26 new text begin 297A.669, subdivision 3, paragraph (c). new text end 273.27     new text begin Subd. 5. new text end new text begin Remittance. new text end new text begin The prepaid wireless E911 and telecommunications access new text end 273.28 new text begin Minnesota fees are the liability of the consumer and not of the seller or of any provider, new text end 273.29 new text begin except that the seller is liable to remit all fees as provided in section 403.162. new text end 273.30     new text begin Subd. 6. new text end new text begin Exclusion for calculating other charges. new text end new text begin The combined amount of the new text end 273.31 new text begin prepaid wireless E911 and telecommunications access Minnesota fees collected by a seller new text end 273.32 new text begin from a consumer must not be included in the base for measuring any tax, fee, surcharge, new text end 273.33 new text begin or other charge that is imposed by this state, any political subdivision of this state, or new text end 273.34 new text begin any intergovernmental agency. new text end 274.1     new text begin Subd. 7. new text end new text begin Fee changes. new text end new text begin (a) The prepaid wireless E911 and telecommunications new text end 274.2 new text begin access Minnesota fee must be proportionately increased or reduced upon any change to new text end 274.3 new text begin the fee imposed under section 403.11, subdivision 1, paragraph (c), after July 1, 2013, or new text end 274.4 new text begin the fee imposed under section 237.52, subdivision 2, as applicable. new text end 274.5 new text begin (b) The department shall post notice of any fee changes on its Web site at least 30 new text end 274.6 new text begin days in advance of the effective date of the fee changes. It is the responsibility of sellers to new text end 274.7 new text begin monitor the department's Web site for notice of fee changes. new text end 274.8 new text begin (c) Fee changes are effective 60 days after the first day of the first calendar month new text end 274.9 new text begin after the commissioner of public safety or the Public Utilities Commission, as applicable, new text end 274.10 new text begin changes the fee. new text end 274.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2014. new text end 274.12    Sec. 19. new text begin [403.162] ADMINISTRATION OF PREPAID WIRELESS E911 FEES. new text end 274.13     new text begin Subdivision 1. new text end new text begin Remittance. new text end new text begin Prepaid wireless E911 and telecommunications access new text end 274.14 new text begin Minnesota fees collected by sellers must be remitted to the commissioner of revenue new text end 274.15 new text begin at the times and in the manner provided by chapter 297A with respect to the general new text end 274.16 new text begin sales and use tax. The commissioner of revenue shall establish registration and payment new text end 274.17 new text begin procedures that substantially coincide with the registration and payment procedures that new text end 274.18 new text begin apply in chapter 297A. new text end 274.19     new text begin Subd. 2. new text end new text begin Seller's fee retention. new text end new text begin A seller may deduct and retain three percent of new text end 274.20 new text begin prepaid wireless E911 and telecommunications access Minnesota fees collected by the new text end 274.21 new text begin seller from consumers. new text end 274.22     new text begin Subd. 3. new text end new text begin Department of Revenue provisions. new text end new text begin The audit, assessment, appeal, new text end 274.23 new text begin collection, refund, penalty, interest, enforcement, and administrative provisions of new text end 274.24 new text begin chapters 270C and 289A that are applicable to the taxes imposed by chapter 297A apply new text end 274.25 new text begin to any fee imposed under section 403.161. new text end 274.26     new text begin Subd. 4. new text end new text begin Procedures for resale transactions. new text end new text begin The commissioner of revenue shall new text end 274.27 new text begin establish procedures by which a seller of prepaid wireless telecommunications service new text end 274.28 new text begin may document that a sale is not a retail transaction. These procedures must substantially new text end 274.29 new text begin coincide with the procedures for documenting sale for resale transactions as provided in new text end 274.30 new text begin chapter 297A. new text end 274.31     new text begin Subd. 5. new text end new text begin Fees deposited. new text end new text begin (a) The commissioner of revenue shall, based on new text end 274.32 new text begin the relative proportion of the prepaid wireless E911 fee and the prepaid wireless new text end 274.33 new text begin telecommunications access Minnesota fee imposed per retail transaction, divide the fees new text end 274.34 new text begin collected in corresponding proportions. Within 30 days of receipt of the collected fees, new text end 274.35 new text begin the commissioner shall: new text end 275.1 new text begin (1) deposit the proportion of the collected fees attributable to the prepaid wireless new text end 275.2 new text begin E911 fee in the 911 emergency telecommunications service account in the special revenue new text end 275.3 new text begin fund; and new text end 275.4 new text begin (2) deposit the proportion of collected fees attributable to the prepaid wireless new text end 275.5 new text begin telecommunications access Minnesota fee in the telecommunications access fund new text end 275.6 new text begin established in section 237.52, subdivision 1. new text end 275.7 new text begin (b) The department may deduct and retain an amount, not to exceed two percent of new text end 275.8 new text begin collected fees, to reimburse its direct costs of administering the collection and remittance new text end 275.9 new text begin of prepaid wireless E911 fees and prepaid wireless telecommunications access Minnesota new text end 275.10 new text begin fees. new text end 275.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2014. new text end 275.12    Sec. 20. new text begin [403.163] LIABILITY PROTECTION FOR SELLERS AND new text end 275.13 new text begin PROVIDERS. new text end 275.14 new text begin (a) A provider or seller of prepaid wireless telecommunications service is not liable new text end 275.15 new text begin for damages to any person resulting from or incurred in connection with providing any new text end 275.16 new text begin lawful assistance in good faith to any investigative or law enforcement officer of the new text end 275.17 new text begin United States, this or any other state, or any political subdivision of this or any other state. new text end 275.18 new text begin (b) In addition to the protection from liability provided by paragraph (a), section new text end 275.19 new text begin 403.08, subdivision 11, applies to sellers and providers. new text end 275.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 275.21    Sec. 21. new text begin [403.164] EXCLUSIVITY OF PREPAID WIRELESS E911 FEE. new text end 275.22 new text begin The prepaid wireless E911 fee imposed by section 403.161 is the only E911 funding new text end 275.23 new text begin obligation imposed with respect to prepaid wireless telecommunications service in this new text end 275.24 new text begin state, and no tax, fee, surcharge, or other charge may be imposed by this state, any political new text end 275.25 new text begin subdivision of this state, or any intergovernmental agency, for E911 funding purposes, new text end 275.26 new text begin upon any provider, seller, or consumer with respect to the sale, purchase, use, or provision new text end 275.27 new text begin of prepaid wireless telecommunications service. new text end 275.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2014. new text end 275.29    Sec. 22. new text begin PURPOSE STATEMENTS; TAX EXPENDITURES. new text end 275.30     new text begin Subdivision 1. new text end new text begin Authority. new text end new text begin This section is intended to fulfill the requirement under new text end 275.31 new text begin Minnesota Statutes, section 3.192, that a bill creating, renewing, or continuing a tax new text end 276.1 new text begin expenditure provide a purpose for the tax expenditure and a standard or goal against new text end 276.2 new text begin which its effectiveness may be measured. new text end 276.3     new text begin Subd. 2. new text end new text begin Federal conformity. new text end new text begin The provisions of article 6 conforming Minnesota new text end 276.4 new text begin individual income tax to changes in federal law related to bonus depreciation and section new text end 276.5 new text begin 179 expensing are intended to simplify compliance with and administration of the new text end 276.6 new text begin individual income tax. new text end 276.7     new text begin Subd. 3. new text end new text begin Sales tax exemption for certain aircraft parts and labor. new text end new text begin The provisions new text end 276.8 new text begin of article 5 exempting parts and labor for certain aircraft, is intended to encourage the new text end 276.9 new text begin growth of the aviation services industry in the state. new text end 276.10     new text begin Subd. 4. new text end new text begin Railroad track maintenance subtraction. new text end new text begin The provisions of article 6 new text end 276.11 new text begin allowing an individual income and corporate franchise tax subtraction for the amount new text end 276.12 new text begin allowed under the federal credit for railroad maintenance expenses, are intended to new text end 276.13 new text begin increase the combined federal and state tax incentives available to Class II and Class III new text end 276.14 new text begin railroads for maintaining and upgrading track in Minnesota. The standard against which new text end 276.15 new text begin effectiveness is to be measured is the additional miles of track maintained or upgraded new text end 276.16 new text begin following allowance of the state tax subtraction in addition to the existing federal tax credit. new text end 276.17     new text begin Subd. 5. new text end new text begin Historic structure rehabilitation credit. new text end new text begin The provisions of article 6 new text end 276.18 new text begin extending the sunset date of the historic structure rehabilitation credit and modifying new text end 276.19 new text begin the effective date of the credit, are intended to encourage the preservation of historic new text end 276.20 new text begin structures in Minnesota and to create and retain jobs related to rehabilitation of historic new text end 276.21 new text begin structures in the state. The standard against which the effectiveness of the extension new text end 276.22 new text begin of the credit and modification of the effective date is to be measured is the number of new text end 276.23 new text begin jobs created through the rehabilitation of historic structures and the number of historic new text end 276.24 new text begin structures rehabilitated and placed in service. new text end 276.25     new text begin Subd. 6. new text end new text begin Greater Minnesota internship credit. new text end new text begin The provisions of article 6 new text end 276.26 new text begin providing a tax credit to employers of qualified interns, are intended to encourage new text end 276.27 new text begin Minnesota businesses to employ and provide valuable education and work experience new text end 276.28 new text begin to Minnesota students and foster long-term relationships between students and greater new text end 276.29 new text begin Minnesota employers. The standard against which the effectiveness of the extension of the new text end 276.30 new text begin credit is the number of students who participated in the program who were subsequently new text end 276.31 new text begin employed full time by the employer. new text end 277.1     new text begin Subd. 7. new text end new text begin Sales tax exemption for greater Minnesota business expansion. new text end new text begin The new text end 277.2 new text begin provisions of article 8 are intended to induce existing businesses in greater Minnesota to new text end 277.3 new text begin increase investment and expand employment in greater Minnesota. new text end 277.4     new text begin Subd. 8. new text end new text begin Expansion of sales tax exemption on durable medical products and new text end 277.5 new text begin prosthetics. new text end new text begin The provisions of article 8 expanding the definition of items included in new text end 277.6 new text begin repair and replacement parts of durable medical equipment and prosthetics and exempting new text end 277.7 new text begin Medicare and medicaid purchases is intended to simplify sales tax administration in this new text end 277.8 new text begin area and provide relief for sellers who cannot collect the tax under these programs. new text end 277.9     new text begin Subd. 9. new text end new text begin Sales tax exemption for established religious orders. new text end new text begin The provisions new text end 277.10 new text begin of article 8 exempting certain sales between a religious order and an affiliated institute new text end 277.11 new text begin of higher education, is intended to retain an existing sales tax exemption that exists new text end 277.12 new text begin between St. John's Abbey and St. John's University after a governing restructure between new text end 277.13 new text begin the two entities. new text end 277.14     new text begin Subd. 10. new text end new text begin Sales tax exemption for certain dental providers. new text end new text begin The provisions new text end 277.15 new text begin of article 8 exempting certain purchases by qualifying critical access dental providers, new text end 277.16 new text begin is intended to assist critical access dental providers in defraying the overall cost of the new text end 277.17 new text begin services they provide to underserved communities. new text end 277.18     new text begin Subd. 11. new text end new text begin Sales tax exemption for nursing homes and boarding care homes. new text end 277.19 new text begin The provisions of article 8 exempting certain nursing homes and boarding care homes is new text end 277.20 new text begin intended to clarify that an existing exemption for these facilities is not affected by a recent new text end 277.21 new text begin property tax case related to defining nonprofit organizations engaged in charitable activities. new text end 277.22     new text begin Subd. 12. new text end new text begin Construction sales tax exemptions. new text end new text begin The provisions of article 8 new text end 277.23 new text begin exempting from sales tax construction materials for various entities, are intended to new text end 277.24 new text begin increase jobs and reduce tax pyramiding by reducing the tax on inputs used to provide new text end 277.25 new text begin taxable goods and services. new text end 277.26     new text begin Subd. 13. new text end new text begin Sales tax exemption on certain public infrastructure. new text end new text begin The provisions new text end 277.27 new text begin of article 10 exempting construction materials used in public infrastructure projects related new text end 277.28 new text begin to the destination medical center plan is intended to reduce city costs for those projects. new text end 277.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 277.30    Sec. 23. new text begin APPROPRIATIONS. new text end 278.1 new text begin (a) $950,000 is appropriated from the general fund to the commissioner of revenue new text end 278.2 new text begin in fiscal year 2014 for administering this act. This appropriation does not cancel but is new text end 278.3 new text begin available until June 30, 2015. $300,000 of this amount is added to the annual base budget. new text end 278.4 new text begin (b) $25,000 in fiscal year 2014 and $25,000 in fiscal year 2015 are appropriated new text end 278.5 new text begin from the general fund to the commissioner of employment and economic development for new text end 278.6 new text begin administering the provisions of article 10. new text end 278.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 278.8    Sec. 24. new text begin REPEALER. new text end 278.9 new text begin Minnesota Statutes 2012, sections 290.171; 290.173; and 290.174, new text end new text begin are repealed. new text end 278.10ARTICLE 14 278.11MARKET VALUE DEFINITIONS 278.12    Section 1. Minnesota Statutes 2012, section 38.18, is amended to read: 278.1338.18 COUNTY FAIRGROUNDS; IMPROVEMENT AIDED. 278.14    Any new text begin Each new text end town, statutory city, or school district in this state, now or hereafter new text begin at any new text end 278.15 new text begin time new text end having a new text begin an estimated new text end market value of all its taxable property, exclusive of money and 278.16credits, of more than $105,000,000, and having a county fair located within its corporate 278.17limits, is hereby authorized to aid in defraying new text begin may pay new text end part of the expense of improving 278.18any such new text begin the new text end fairground, by appropriating and paying over to the treasurer of the county 278.19owning the fairground such sum of money, not exceeding $10,000, for each of the political 278.20subdivisions, as the new text begin its new text end governing body of the town, statutory city, or school district may, 278.21by resolution, determine new text begin determines new text end to be for the best interest of the political subdivision, new text begin . new text end 278.22 The sums so appropriated to new text begin amounts paid to the county must new text end be used solely for the purpose 278.23of aiding in the improvement of new text begin to improve new text end the fairground in such new text begin the new text end manner as the county 278.24board of the county shall determine new text begin determines new text end to be for the best interest of the county. 278.25    Sec. 2. Minnesota Statutes 2012, section 40A.15, subdivision 2, is amended to read: 278.26    Subd. 2. Eligible recipients. All counties within the state, municipalities that prepare 278.27plans and official controls instead of a county, and districts are eligible for assistance 278.28under the program. Counties and districts may apply for assistance on behalf of other 278.29municipalities. In order to be eligible for financial assistance a county or municipality must 278.30agree to levy at least 0.01209 percent of taxable new text begin estimated new text end market value for agricultural 278.31land preservation and conservation activities or otherwise spend the equivalent amount of 278.32local money on those activities, or spend $15,000 of local money, whichever is less. 279.1    Sec. 3. Minnesota Statutes 2012, section 69.011, subdivision 1, is amended to read: 279.2    Subdivision 1. Definitions. Unless the language or context clearly indicates that 279.3a different meaning is intended, the following words and terms, for the purposes of this 279.4chapter and chapters 423, 423A, 424 and 424A, have the meanings ascribed to them: 279.5    (a) "Commissioner" means the commissioner of revenue. 279.6    (b) "Municipality" means: 279.7    (1) a home rule charter or statutory city; 279.8    (2) an organized town; 279.9    (3) a park district subject to chapter 398; 279.10    (4) the University of Minnesota; 279.11    (5) for purposes of the fire state aid program only, an American Indian tribal 279.12government entity located within a federally recognized American Indian reservation; 279.13    (6) for purposes of the police state aid program only, an American Indian tribal 279.14government with a tribal police department which exercises state arrest powers under 279.15section 626.90, 626.91, 626.92, or 626.93; 279.16    (7) for purposes of the police state aid program only, the Metropolitan Airports 279.17Commission; and 279.18    (8) for purposes of the police state aid program only, the Department of Natural 279.19Resources and the Department of Public Safety with respect to peace officers covered 279.20under chapter 352B. 279.21    (c) "Minnesota Firetown Premium Report" means a form prescribed by the 279.22commissioner containing space for reporting by insurers of fire, lightning, sprinkler 279.23leakage and extended coverage premiums received upon risks located or to be performed 279.24in this state less return premiums and dividends. 279.25    (d) "Firetown" means the area serviced by any municipality having a qualified fire 279.26department or a qualified incorporated fire department having a subsidiary volunteer 279.27firefighters' relief association. 279.28    (e) " new text begin Estimated new text end market value" means latest available new text begin estimated new text end market value of all 279.29property in a taxing jurisdiction, whether the property is subject to taxation, or exempt 279.30from ad valorem taxation obtained from information which appears on abstracts filed with 279.31the commissioner of revenue or equalized by the State Board of Equalization. 279.32    (f) "Minnesota Aid to Police Premium Report" means a form prescribed by the 279.33commissioner for reporting by each fire and casualty insurer of all premiums received 279.34upon direct business received by it in this state, or by its agents for it, in cash or otherwise, 279.35during the preceding calendar year, with reference to insurance written for insuring against 279.36the perils contained in auto insurance coverages as reported in the Minnesota business 280.1schedule of the annual financial statement which each insurer is required to file with 280.2the commissioner in accordance with the governing laws or rules less return premiums 280.3and dividends. 280.4    (g) "Peace officer" means any person: 280.5    (1) whose primary source of income derived from wages is from direct employment 280.6by a municipality or county as a law enforcement officer on a full-time basis of not less 280.7than 30 hours per week; 280.8    (2) who has been employed for a minimum of six months prior to December 31 280.9preceding the date of the current year's certification under subdivision 2, clause (b); 280.10    (3) who is sworn to enforce the general criminal laws of the state and local ordinances; 280.11    (4) who is licensed by the Peace Officers Standards and Training Board and is 280.12authorized to arrest with a warrant; and 280.13    (5) who is a member of the State Patrol retirement plan or the public employees 280.14police and fire fund. 280.15    (h) "Full-time equivalent number of peace officers providing contract service" means 280.16the integral or fractional number of peace officers which would be necessary to provide 280.17the contract service if all peace officers providing service were employed on a full-time 280.18basis as defined by the employing unit and the municipality receiving the contract service. 280.19    (i) "Retirement benefits other than a service pension" means any disbursement 280.20authorized under section 424A.05, subdivision 3, clauses (3) and (4). 280.21    (j) "Municipal clerk, municipal clerk-treasurer, or county auditor" means: 280.22    (1) for the police state aid program and police relief association financial reports: 280.23    (i) the person who was elected or appointed to the specified position or, in the 280.24absence of the person, another person who is designated by the applicable governing body; 280.25    (ii) in a park district, the secretary of the board of park district commissioners; 280.26    (iii) in the case of the University of Minnesota, the official designated by the Board 280.27of Regents; 280.28    (iv) for the Metropolitan Airports Commission, the person designated by the 280.29commission; 280.30    (v) for the Department of Natural Resources or the Department of Public Safety, the 280.31respective commissioner; 280.32    (vi) for a tribal police department which exercises state arrest powers under section 280.33626.90 , 626.91, 626.92, or 626.93, the person designated by the applicable American 280.34Indian tribal government; and 280.35    (2) for the fire state aid program and fire relief association financial reports, the 280.36person who was elected or appointed to the specified position, or, for governmental 281.1entities other than counties, if the governing body of the governmental entity designates 281.2the position to perform the function, the chief financial official of the governmental entity 281.3or the chief administrative official of the governmental entity. 281.4    (k) "Voluntary statewide lump-sum volunteer firefighter retirement plan" means the 281.5retirement plan established by chapter 353G. 281.6    Sec. 4. Minnesota Statutes 2012, section 69.021, subdivision 7, is amended to read: 281.7    Subd. 7. Apportionment of fire state aid to municipalities and relief associations. 281.8    (a) The commissioner shall apportion the fire state aid relative to the premiums reported 281.9on the Minnesota Firetown Premium Reports filed under this chapter to each municipality 281.10and/or firefighters relief association. 281.11    (b) The commissioner shall calculate an initial fire state aid allocation amount for 281.12each municipality or fire department under paragraph (c) and a minimum fire state aid 281.13allocation amount for each municipality or fire department under paragraph (d). The 281.14municipality or fire department must receive the larger fire state aid amount. 281.15    (c) The initial fire state aid allocation amount is the amount available for 281.16apportionment as fire state aid under subdivision 5, without inclusion of any additional 281.17funding amount to support a minimum fire state aid amount under section 423A.02, 281.18subdivision 3 , allocated one-half in proportion to the population as shown in the last official 281.19statewide federal census for each fire town and one-half in proportion to the new text begin estimated new text end 281.20market value of each fire town, including (1) the new text begin estimated new text end market value of tax-exempt 281.21property and (2) the new text begin estimated new text end market value of natural resources lands receiving in lieu 281.22payments under sections 477A.11 to 477A.14, but excluding the new text begin estimated new text end market value 281.23of minerals. In the case of incorporated or municipal fire departments furnishing fire 281.24protection to other cities, towns, or townships as evidenced by valid fire service contracts 281.25filed with the commissioner, the distribution must be adjusted proportionately to take 281.26into consideration the crossover fire protection service. Necessary adjustments must be 281.27made to subsequent apportionments. In the case of municipalities or independent fire 281.28departments qualifying for the aid, the commissioner shall calculate the state aid for the 281.29municipality or relief association on the basis of the population and the new text begin estimated new text end market 281.30value of the area furnished fire protection service by the fire department as evidenced by 281.31duly executed and valid fire service agreements filed with the commissioner. If one or 281.32more fire departments are furnishing contracted fire service to a city, town, or township, 281.33only the population and new text begin estimated new text end market value of the area served by each fire department 281.34may be considered in calculating the state aid and the fire departments furnishing service 281.35shall enter into an agreement apportioning among themselves the percent of the population 282.1and the new text begin estimated new text end market value of each service area. The agreement must be in writing 282.2and must be filed with the commissioner. 282.3    (d) The minimum fire state aid allocation amount is the amount in addition to the 282.4initial fire state allocation amount that is derived from any additional funding amount 282.5to support a minimum fire state aid amount under section 423A.02, subdivision 3, and 282.6allocated to municipalities with volunteer firefighters relief associations or covered by the 282.7voluntary statewide lump-sum volunteer firefighter retirement plan based on the number 282.8of active volunteer firefighters who are members of the relief association as reported 282.9in the annual financial reporting for the calendar year 1993 to the Office of the State 282.10Auditor, but not to exceed 30 active volunteer firefighters, so that all municipalities or 282.11fire departments with volunteer firefighters relief associations receive in total at least a 282.12minimum fire state aid amount per 1993 active volunteer firefighter to a maximum of 282.1330 firefighters. If a relief association is established after calendar year 1993 and before 282.14calendar year 2000, the number of active volunteer firefighters who are members of the 282.15relief association as reported in the annual financial reporting for calendar year 1998 282.16to the Office of the State Auditor, but not to exceed 30 active volunteer firefighters, 282.17shall be used in this determination. If a relief association is established after calendar 282.18year 1999, the number of active volunteer firefighters who are members of the relief 282.19association as reported in the first annual financial reporting submitted to the Office of 282.20the State Auditor, but not to exceed 20 active volunteer firefighters, must be used in this 282.21determination. If a relief association is terminated as a result of providing retirement 282.22coverage for volunteer firefighters by the voluntary statewide lump-sum volunteer 282.23firefighter retirement plan under chapter 353G, the number of active volunteer firefighters 282.24of the municipality covered by the statewide plan as certified by the executive director of 282.25the Public Employees Retirement Association to the commissioner and the state auditor, 282.26but not to exceed 30 active firefighters, must be used in this determination. 282.27    (e) Unless the firefighters of the applicable fire department are members of the 282.28voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid must 282.29be paid to the treasurer of the municipality where the fire department is located and the 282.30treasurer of the municipality shall, within 30 days of receipt of the fire state aid, transmit 282.31the aid to the relief association if the relief association has filed a financial report with the 282.32treasurer of the municipality and has met all other statutory provisions pertaining to the 282.33aid apportionment. If the firefighters of the applicable fire department are members of 282.34the voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid 282.35must be paid to the executive director of the Public Employees Retirement Association 282.36and deposited in the voluntary statewide lump-sum volunteer firefighter retirement fund. 283.1    (f) The commissioner may make rules to permit the administration of the provisions 283.2of this section. 283.3    (g) Any adjustments needed to correct prior misallocations must be made to 283.4subsequent apportionments. 283.5    Sec. 5. Minnesota Statutes 2012, section 69.021, subdivision 8, is amended to read: 283.6    Subd. 8. Population and new text begin estimated new text end market value. (a) In computations relating to 283.7fire state aid requiring the use of population figures, only official statewide federal census 283.8figures are to be used. Increases or decreases in population disclosed by reason of any 283.9special census must not be taken into consideration. 283.10    (b) In calculations relating to fire state aid requiring the use of new text begin estimated new text end market 283.11value property figures, only the latest available new text begin estimated new text end market value property figures 283.12may be used. 283.13    Sec. 6. Minnesota Statutes 2012, section 88.51, subdivision 3, is amended to read: 283.14    Subd. 3. Determination of new text begin estimated new text end market value. In determining the net tax 283.15capacity of property within any taxing district the value of the surface of lands within any 283.16auxiliary forest therein, as determined by the county board under the provisions of section 283.1788.48, subdivision 3 , shall, for all purposes except the levying of taxes on lands within any 283.18such forest, be deemed the new text begin estimated new text end market value thereof. 283.19    Sec. 7. Minnesota Statutes 2012, section 103B.245, subdivision 3, is amended to read: 283.20    Subd. 3. Tax. After adoption of the ordinance under subdivision 2, a local 283.21government unit may annually levy a tax on all taxable property in the district for the 283.22purposes for which the tax district is established. The tax may not exceed 0.02418 percent 283.23of new text begin estimated new text end market value on taxable property located in rural towns other than urban 283.24towns, unless allowed by resolution of the town electors. The proceeds of the tax shall 283.25be paid into a fund reserved for these purposes. Any proceeds remaining in the reserve 283.26fund at the time the tax is terminated or the district is dissolved shall be transferred and 283.27irrevocably pledged to the debt service fund of the local unit to be used solely to reduce 283.28tax levies for bonded indebtedness of taxable property in the district. 283.29    Sec. 8. Minnesota Statutes 2012, section 103B.251, subdivision 8, is amended to read: 283.30    Subd. 8. Tax. (a) For the payment of principal and interest on the bonds issued 283.31under subdivision 7 and the payment required under subdivision 6, the county shall 283.32irrevocably pledge and appropriate the proceeds of a tax levied on all taxable property 284.1located within the territory of the watershed management organization or subwatershed 284.2unit for which the bonds are issued. Each year until the reserve for payment of the bonds 284.3is sufficient to retire the bonds, the county shall levy on all taxable property in the territory 284.4of the organization or unit, without respect to any statutory or other limitation on taxes, an 284.5amount of taxes sufficient to pay principal and interest on the bonds and to restore any 284.6deficiencies in reserves required to be maintained for payment of the bonds. 284.7    (b) The tax levied on rural towns other than urban towns may not exceed 0.02418 284.8percent of taxable new text begin estimated new text end market value, unless approved by resolution of the town 284.9electors. 284.10    (c) If at any time the amounts available from the levy on property in the territory of 284.11the organization are insufficient to pay principal and interest on the bonds when due, the 284.12county shall make payment from any available funds in the county treasury. 284.13    (d) The amount of any taxes which are required to be levied outside of the territory 284.14of the watershed management organization or unit or taken from the general funds of the 284.15county to pay principal or interest on the bonds shall be reimbursed to the county from 284.16taxes levied within the territory of the watershed management organization or unit. 284.17    Sec. 9. Minnesota Statutes 2012, section 103B.635, subdivision 2, is amended to read: 284.18    Subd. 2. Municipal funding of district. (a) The governing body or board of 284.19supervisors of each municipality in the district must provide the funds necessary to meet 284.20its proportion of the total cost determined by the board, provided the total funding from 284.21all municipalities in the district for the costs shall not exceed an amount equal to .00242 284.22percent of the total taxable new text begin estimated new text end market value within the district, unless three-fourths 284.23of the municipalities in the district pass a resolution concurring to the additional costs. 284.24    (b) The funds must be deposited in the treasury of the district in amounts and at 284.25times as the treasurer of the district requires. 284.26    Sec. 10. Minnesota Statutes 2012, section 103B.691, subdivision 2, is amended to read: 284.27    Subd. 2. Municipal funding of district. (a) The governing body or board of 284.28supervisors of each municipality in the district shall provide the funds necessary to meet its 284.29proportion of the total cost to be borne by the municipalities as finally certified by the board. 284.30    (b) The municipality's funds may be raised by any means within the authority of 284.31the municipality. The municipalities may each levy a tax not to exceed .02418 percent of 284.32taxable new text begin estimated new text end market value on the taxable property located in the district to provide 284.33the funds. The levy shall be within all other limitations provided by law. 285.1    (c) The funds must be deposited into the treasury of the district in amounts and at 285.2times as the treasurer of the district requires. 285.3    Sec. 11. Minnesota Statutes 2012, section 103D.905, subdivision 2, is amended to read: 285.4    Subd. 2. Organizational expense fund. (a) An organizational expense fund, 285.5consisting of an ad valorem tax levy, shall not exceed 0.01596 percent of taxable new text begin estimated new text end 285.6 market value, or $60,000, whichever is less. The money in the fund shall be used for 285.7organizational expenses and preparation of the watershed management plan for projects. 285.8    (b) The managers may borrow from the affected counties up to 75 percent of the 285.9anticipated funds to be collected from the organizational expense fund levy and the 285.10counties affected may make the advancements. 285.11    (c) The advancement of anticipated funds shall be apportioned among affected 285.12counties in the same ratio as the net tax capacity of the area of the counties within 285.13the watershed district bears to the net tax capacity of the entire watershed district. If a 285.14watershed district is enlarged, an organizational expense fund may be levied against the 285.15area added to the watershed district in the same manner as provided in this subdivision. 285.16    (d) Unexpended funds collected for the organizational expense may be transferred to 285.17the administrative fund and used for the purposes of the administrative fund. 285.18    Sec. 12. Minnesota Statutes 2012, section 103D.905, subdivision 3, is amended to read: 285.19    Subd. 3. General fund. A general fund, consisting of an ad valorem tax levy, may 285.20not exceed 0.048 percent of taxable new text begin estimated new text end market value, or $250,000, whichever is 285.21less. The money in the fund shall be used for general administrative expenses and for 285.22the construction or implementation and maintenance of projects of common benefit to 285.23the watershed district. The managers may make an annual levy for the general fund as 285.24provided in section 103D.911. In addition to the annual general levy, the managers may 285.25annually levy a tax not to exceed 0.00798 percent of taxable new text begin estimated new text end market value 285.26for a period not to exceed 15 consecutive years to pay the cost attributable to the basic 285.27water management features of projects initiated by petition of a political subdivision 285.28within the watershed district or by petition of at least 50 resident owners whose property 285.29is within the watershed district. 285.30    Sec. 13. Minnesota Statutes 2012, section 103D.905, subdivision 8, is amended to read: 285.31    Subd. 8. Survey and data acquisition fund. (a) A survey and data acquisition fund 285.32is established and used only if other funds are not available to the watershed district to pay 285.33for making necessary surveys and acquiring data. 286.1    (b) The survey and data acquisition fund consists of the proceeds of a property tax 286.2that can be levied only once every five years. The levy may not exceed 0.02418 percent of 286.3taxable new text begin estimated new text end market value. 286.4    (c) The balance of the survey and data acquisition fund may not exceed $50,000. 286.5    (d) In a subsequent proceeding for a project where a survey has been made, the 286.6attributable cost of the survey as determined by the managers shall be included as a part of 286.7the cost of the work and the sum shall be repaid to the survey and data acquisition fund. 286.8    Sec. 14. Minnesota Statutes 2012, section 117.025, subdivision 7, is amended to read: 286.9    Subd. 7. Structurally substandard. "Structurally substandard" means a building: 286.10    (1) that was inspected by the appropriate local government and cited for one or more 286.11enforceable housing, maintenance, or building code violations; 286.12    (2) in which the cited building code violations involve one or more of the following: 286.13    (i) a roof and roof framing element; 286.14    (ii) support walls, beams, and headers; 286.15    (iii) foundation, footings, and subgrade conditions; 286.16    (iv) light and ventilation; 286.17    (v) fire protection, including egress; 286.18    (vi) internal utilities, including electricity, gas, and water; 286.19    (vii) flooring and flooring elements; or 286.20    (viii) walls, insulation, and exterior envelope; 286.21    (3) in which the cited housing, maintenance, or building code violations have not 286.22been remedied after two notices to cure the noncompliance; and 286.23    (4) has uncured housing, maintenance, and building code violations, satisfaction of 286.24which would cost more than 50 percent of the assessor's taxable new text begin estimated new text end market value 286.25for the building, excluding land value, as determined under section 273.11 for property 286.26taxes payable in the year in which the condemnation is commenced. 286.27A local government is authorized to seek from a judge or magistrate an administrative 286.28warrant to gain access to inspect a specific building in a proposed development or 286.29redevelopment area upon showing of probable cause that a specific code violation has 286.30occurred and that the violation has not been cured, and that the owner has denied the local 286.31government access to the property. Items of evidence that may support a conclusion of 286.32probable cause may include recent fire or police inspections, housing inspection, exterior 286.33evidence of deterioration, or other similar reliable evidence of deterioration in the specific 286.34building. 287.1    Sec. 15. Minnesota Statutes 2012, section 127A.48, subdivision 1, is amended to read: 287.2    Subdivision 1. Computation. The Department of Revenue must annually conduct 287.3an assessment/sales ratio study of the taxable property in each new text begin county, city, town, and new text end 287.4school district in accordance with the procedures in subdivisions 2 and 3. Based upon the 287.5results of this assessment/sales ratio study, the Department of Revenue must determine an 287.6aggregate equalized net tax capacity for the various classes of taxable property in each 287.7 new text begin taxing new text end district, new text begin the aggregate of new text end which tax capacity shall be new text begin is new text end designated as the adjusted net 287.8tax capacity. new text begin The adjusted net tax capacity must be reduced by the captured tax capacity of new text end 287.9 new text begin tax increment districts under section 469.177, subdivision 2, fiscal disparities contribution new text end 287.10 new text begin tax capacities under sections 276A.06 and 473F.08, and the tax capacity of transmission new text end 287.11 new text begin lines required to be subtracted from the local tax base under section 273.425; and increased new text end 287.12 new text begin by fiscal disparities distribution tax capacities under sections 276A.06 and 473F.08. new text end The 287.13adjusted net tax capacities shall be determined using the net tax capacity percentages in 287.14effect for the assessment year following the assessment year of the study. The Department 287.15of Revenue must make whatever estimates are necessary to account for changes in the 287.16classification system. The Department of Revenue may incur the expense necessary to 287.17make the determinations. The commissioner of revenue may reimburse any county or 287.18governmental official for requested services performed in ascertaining the adjusted net tax 287.19capacity. On or before March 15 annually, the Department of Revenue shall file with the 287.20chair of the Tax Committee of the house of representatives and the chair of the Committee 287.21on Taxes and Tax laws of the senate a report of adjusted net tax capacities new text begin for school new text end 287.22 new text begin districts new text end . On or before June 15 annually, the Department of Revenue shall file its final report 287.23on the adjusted net tax capacities new text begin for school districts new text end established by the previous year's 287.24assessments and the current year's net tax capacity percentages with the commissioner of 287.25education and each county auditor for those new text begin school new text end districts for which the auditor has the 287.26responsibility for determination of local tax rates. A copy of the report so filed shall be 287.27mailed to the clerk of each new text begin school new text end district involved and to the county assessor or supervisor 287.28of assessments of the county or counties in which each new text begin school new text end district is located. 287.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 287.30    Sec. 16. Minnesota Statutes 2012, section 138.053, is amended to read: 287.31138.053 COUNTY HISTORICAL SOCIETY; TAX LEVY; CITIES OR 287.32TOWNS. 287.33    The governing body of any home rule charter or statutory city or town may annually 287.34appropriate from its general fund an amount not to exceed 0.02418 percent of taxable 288.1 new text begin estimated new text end market value, derived from ad valorem taxes on property or other revenues, to 288.2be paid to the historical society of its respective county to be used for the promotion of 288.3historical work and to aid in defraying the expenses of carrying on the historical work in the 288.4county. No city or town may appropriate any funds for the benefit of any historical society 288.5unless the society is affiliated with and approved by the Minnesota Historical Society. 288.6    Sec. 17. Minnesota Statutes 2012, section 144F.01, subdivision 4, is amended to read: 288.7    Subd. 4. Property tax levy authority. The district's board may levy a tax on the 288.8taxable real and personal property in the district. The ad valorem tax levy may not exceed 288.90.048 percent of the taxable new text begin estimated new text end market value of the district or $400,000, whichever 288.10is less. The proceeds of the levy must be used as provided in subdivision 5. The board shall 288.11certify the levy at the times as provided under section 275.07. The board shall provide the 288.12county with whatever information is necessary to identify the property that is located within 288.13the district. If the boundaries include a part of a parcel, the entire parcel shall be included 288.14in the district. The county auditors must spread, collect, and distribute the proceeds of the 288.15tax at the same time and in the same manner as provided by law for all other property taxes. 288.16    Sec. 18. Minnesota Statutes 2012, section 162.07, subdivision 3, is amended to read: 288.17    Subd. 3. Computation for rural counties. An amount equal to a levy of 0.01596 288.18percent on each rural county's total taxable new text begin estimated new text end market value for the last preceding 288.19calendar year shall be computed and shall be subtracted from the county's total estimated 288.20construction costs. The result thereof shall be the money needs of the county. For the 288.21purpose of this section, "rural counties" means all counties having a population of less 288.22than 175,000. 288.23    Sec. 19. Minnesota Statutes 2012, section 162.07, subdivision 4, is amended to read: 288.24    Subd. 4. Computation for urban counties. An amount equal to a levy of 0.00967 288.25percent on each urban county's total taxable new text begin estimated new text end market value for the last preceding 288.26calendar year shall be computed and shall be subtracted from the county's total estimated 288.27construction costs. The result thereof shall be the money needs of the county. For 288.28the purpose of this section, "urban counties" means all counties having a population 288.29of 175,000 or more. 288.30    Sec. 20. Minnesota Statutes 2012, section 163.04, subdivision 3, is amended to read: 288.31    Subd. 3. Bridges within certain cities. When the council of any statutory city or 288.32city of the third or fourth class may determine that it is necessary to build or improve any 289.1bridge or bridges, including approaches thereto, and any dam or retaining works connected 289.2therewith, upon or forming a part of streets or highways either wholly or partly within 289.3its limits, the county board shall appropriate one-half of the money as may be necessary 289.4therefor from the county road and bridge fund, not exceeding during any year one-half 289.5the amount of taxes paid into the county road and bridge fund during the preceding year, 289.6on property within the corporate limits of the city. The appropriation shall be made upon 289.7the petition of the council, which petition shall be filed by the council with the county 289.8board prior to the fixing by the board of the annual county tax levy. The county board 289.9shall determine the plans and specifications, shall let all necessary contracts, shall have 289.10charge of construction, and upon its request, warrants in payment thereof shall be issued 289.11by the county auditor, from time to time, as the construction work proceeds. Any unpaid 289.12balance may be paid or advanced by the city. On petition of the council, the appropriations 289.13of the county board, during not to exceed three successive years, may be made to apply 289.14on the construction of the same items and to repay any money advanced by the city in 289.15the construction thereof. None of the provisions of this section shall be construed to 289.16be mandatory as applied to any city whose new text begin estimated new text end market value exceeds $2,100 per 289.17capita of its population. 289.18    Sec. 21. Minnesota Statutes 2012, section 163.06, subdivision 6, is amended to read: 289.19    Subd. 6. Expenditure in certain counties. In any county having not less than 95 289.20nor more than 105 full and fractional townships, and having a new text begin an estimated new text end market value 289.21of not less than $12,000,000 nor more than $21,000,000, exclusive of money and credits, 289.22 the county board, by resolution, may expend the funds provided in subdivision 4 in any 289.23organized or unorganized township new text begin town or unorganized territory new text end or portion thereof in 289.24such county. 289.25    Sec. 22. Minnesota Statutes 2012, section 165.10, subdivision 1, is amended to read: 289.26    Subdivision 1. Certain counties may issue and sell. The county board of any 289.27county having no outstanding road and bridge bonds may issue and sell county road bonds 289.28in an amount not exceeding 0.12089 percent of the new text begin estimated new text end market value of the taxable 289.29property within the county exclusive of money and credits, for the purpose of constructing, 289.30reconstructing, improving, or maintaining any bridge or bridges on any highway under its 289.31jurisdiction, without submitting the matter to a vote of the electors of the county. 289.32    Sec. 23. Minnesota Statutes 2012, section 272.03, is amended by adding a subdivision 289.33to read: 290.1     new text begin Subd. 14. new text end new text begin Estimated market value. new text end new text begin "Estimated market value" means the assessor's new text end 290.2 new text begin determination of market value, including the effects of any orders made under section new text end 290.3 new text begin 270.12 or chapter 274, for the parcel. The provisions of section 273.032 apply for certain new text end 290.4 new text begin uses in determining the total estimated market value for the taxing jurisdiction. new text end 290.5    Sec. 24. Minnesota Statutes 2012, section 272.03, is amended by adding a subdivision 290.6to read: 290.7     new text begin Subd. 15. new text end new text begin Taxable market value. new text end new text begin "Taxable market value" means estimated market new text end 290.8 new text begin value for the parcel as reduced by market value exclusions, deferments of value, or other new text end 290.9 new text begin adjustments required by law, that reduce market value before the application of class rates. new text end 290.10    Sec. 25. Minnesota Statutes 2012, section 273.032, is amended to read: 290.11273.032 MARKET VALUE DEFINITION. 290.12     new text begin (a) Unless otherwise provided, new text end for the purpose of determining any property tax 290.13levy limitation based on market value new text begin or any limit on net debt, the issuance of bonds, new text end 290.14 new text begin certificates of indebtedness, or capital notes based on market value new text end , any qualification to 290.15receive state aid based on market value, or any state aid amount based on market value, the 290.16terms "market value," "taxable new text begin estimated new text end market value," and "market valuation," whether 290.17equalized or unequalized, mean the total taxable new text begin estimated new text end market value of new text begin taxable new text end property 290.18within the local unit of government before any new text begin of the following or similar new text end adjustments for new text begin : new text end 290.19     new text begin (1) the market value exclusions under: new text end 290.20     new text begin (i) section 273.11, subdivisions 14a and 14c (vacant platted land); new text end 290.21     new text begin (ii) section 273.11, subdivision 16 (certain improvements to homestead property); new text end 290.22     new text begin (iii) section 273.11, subdivisions 19 and 20 (certain improvements to business new text end 290.23 new text begin properties); new text end 290.24     new text begin (iv) section 273.11, subdivision 21 (homestead property damaged by mold); new text end 290.25     new text begin (v) section 273.11, subdivision 22 (qualifying lead hazardous reduction projects); new text end 290.26     new text begin (vi) section 273.13, subdivision 34 (homestead of a disabled veteran or family new text end 290.27 new text begin caregiver); new text end 290.28     new text begin (vii) section 273.13, subdivision 35 (homestead market value exclusion); or new text end 290.29     new text begin (2) the deferment of value under: new text end 290.30     new text begin (i) the Minnesota Agricultural Property Tax Law, section 273.111; new text end 290.31     new text begin (ii) the Aggregate Resource Preservation Law, section 273.1115; new text end 290.32     new text begin (iii) the Minnesota Open Space Property Tax Law, section 273.112; new text end 290.33     new text begin (iv) the rural preserves property tax program, section 273.114; or new text end 290.34     new text begin (v) the Metropolitan Agricultural Preserves Act, section 473H.10; or new text end 291.1     new text begin (3) the adjustments to tax capacity for: new text end 291.2     new text begin (i) new text end tax increment, new text begin financing under sections 469.174 to 469.1794; new text end 291.3     new text begin (ii) new text end fiscal disparity, new text begin disparities under chapter 276A or 473F; or new text end 291.4     new text begin (iii) new text end powerline credit, or wind energy values, but after the limited market adjustments 291.5under section 273.11, subdivision 1a, and after the market value exclusions of certain 291.6improvements to homestead property under section 273.11, subdivision 16 new text begin under section new text end 291.7 new text begin 273.425 new text end . 291.8     new text begin (b) Estimated market value under paragraph (a) also includes the market value new text end 291.9 new text begin of tax-exempt property if the applicable law specifically provides that the limitation, new text end 291.10 new text begin qualification, or aid calculation includes tax-exempt property. new text end 291.11     new text begin (c) new text end Unless otherwise provided, "market value," "taxable new text begin estimated new text end market value," 291.12and "market valuation" for purposes of this paragraph new text begin property tax levy limitations and new text end 291.13 new text begin calculation of state aid new text end , refer to the taxable new text begin estimated new text end market value for the previous 291.14assessment year new text begin and for purposes of limits on net debt, the issuance of bonds, certificates of new text end 291.15 new text begin indebtedness, or capital notes refer to the estimated market value as last finally equalized new text end . 291.16    For the purpose of determining any net debt limit based on market value, or any limit 291.17on the issuance of bonds, certificates of indebtedness, or capital notes based on market 291.18value, the terms "market value," "taxable market value," and "market valuation," whether 291.19equalized or unequalized, mean the total taxable market value of property within the local 291.20unit of government before any adjustments for tax increment, fiscal disparity, powerline 291.21credit, or wind energy values, but after the limited market value adjustments under section 291.22, subdivision 1a, and after the market value exclusions of certain improvements to 291.23homestead property under section , subdivision 16. Unless otherwise provided, 291.24"market value," "taxable market value," and "market valuation" for purposes of this 291.25paragraph, mean the taxable market value as last finally equalized. 291.26     new text begin (d) For purposes of a provision of a home rule charter or of any special law that is not new text end 291.27 new text begin codified in the statutes and that imposes a levy limitation based on market value or any limit new text end 291.28 new text begin on debt, the issuance of bonds, certificates of indebtedness, or capital notes based on market new text end 291.29 new text begin value, the terms "market value," "taxable market value," and "market valuation," whether new text end 291.30 new text begin equalized or unequalized, mean "estimated market value" as defined in paragraph (a). new text end 291.31    Sec. 26. Minnesota Statutes 2012, section 273.11, subdivision 1, is amended to read: 291.32    Subdivision 1. Generally. Except as provided in this section or section 273.17, 291.33subdivision 1 , all property shall be valued at its market value. The market value as 291.34determined pursuant to this section shall be stated such that any amount under $100 is 291.35rounded up to $100 and any amount exceeding $100 shall be rounded to the nearest $100. 292.1In estimating and determining such value, the assessor shall not adopt a lower or different 292.2standard of value because the same is to serve as a basis of taxation, nor shall the assessor 292.3adopt as a criterion of value the price for which such property would sell at a forced sale, 292.4or in the aggregate with all the property in the town or district; but the assessor shall value 292.5each article or description of property by itself, and at such sum or price as the assessor 292.6believes the same to be fairly worth in money. The assessor shall take into account the 292.7effect on the market value of property of environmental factors in the vicinity of the 292.8property. In assessing any tract or lot of real property, the value of the land, exclusive of 292.9structures and improvements, shall be determined, and also the value of all structures and 292.10improvements thereon, and the aggregate value of the property, including all structures 292.11and improvements, excluding the value of crops growing upon cultivated land. In valuing 292.12real property upon which there is a mine or quarry, it shall be valued at such price as such 292.13property, including the mine or quarry, would sell for at a fair, voluntary sale, for cash, 292.14if the material being mined or quarried is not subject to taxation under section 298.015 292.15and the mine or quarry is not exempt from the general property tax under section 298.25. 292.16In valuing real property which is vacant, platted property shall be assessed as provided 292.17in subdivision 14 new text begin subdivisions 14a and 14c new text end . All property, or the use thereof, which is 292.18taxable under section 272.01, subdivision 2, or 273.19, shall be valued at the market 292.19value of such property and not at the value of a leasehold estate in such property, or at 292.20some lesser value than its market value. 292.21    Sec. 27. Minnesota Statutes 2012, section 273.124, subdivision 3a, is amended to read: 292.22    Subd. 3a. Manufactured home park cooperative. (a) When a manufactured home 292.23park is owned by a corporation or association organized under chapter 308A or 308B, 292.24and each person who owns a share or shares in the corporation or association is entitled 292.25to occupy a lot within the park, the corporation or association may claim homestead 292.26treatment for the park. Each lot must be designated by legal description or number, and 292.27each lot is limited to not more than one-half acre of land. 292.28    (b) The manufactured home park shall be entitled to homestead treatment if all 292.29of the following criteria are met: 292.30    (1) the occupant or the cooperative corporation or association is paying the ad 292.31valorem property taxes and any special assessments levied against the land and structure 292.32either directly, or indirectly through dues to the corporation or association; and 292.33    (2) the corporation or association organized under chapter 308A or 308B is wholly 292.34owned by persons having a right to occupy a lot owned by the corporation or association. 293.1    (c) A charitable corporation, organized under the laws of Minnesota with no 293.2outstanding stock, and granted a ruling by the Internal Revenue Service for 501(c)(3) 293.3tax-exempt status, qualifies for homestead treatment with respect to a manufactured home 293.4park if its members hold residential participation warrants entitling them to occupy a lot 293.5in the manufactured home park. 293.6    (d) "Homestead treatment" under this subdivision means the class rate provided for 293.7class 4c property classified under section 273.13, subdivision 25, paragraph (d), clause (5), 293.8item (ii). The homestead market value credit new text begin exclusion new text end under section new text begin 273.13, new text end 293.9 new text begin subdivision 35, new text end does not apply and the property taxes assessed against the park shall not 293.10be included in the determination of taxes payable for rent paid under section 290A.03. 293.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2013 and new text end 293.12 new text begin thereafter. new text end 293.13    Sec. 28. Minnesota Statutes 2012, section 273.124, subdivision 13, is amended to read: 293.14    Subd. 13. Homestead application. (a) A person who meets the homestead 293.15requirements under subdivision 1 must file a homestead application with the county 293.16assessor to initially obtain homestead classification. 293.17    (b) The format and contents of a uniform homestead application shall be prescribed 293.18by the commissioner of revenue. The application must clearly inform the taxpayer that 293.19this application must be signed by all owners who occupy the property or by the qualifying 293.20relative and returned to the county assessor in order for the property to receive homestead 293.21treatment. 293.22    (c) Every property owner applying for homestead classification must furnish to the 293.23county assessor the Social Security number of each occupant who is listed as an owner 293.24of the property on the deed of record, the name and address of each owner who does not 293.25occupy the property, and the name and Social Security number of each owner's spouse who 293.26occupies the property. The application must be signed by each owner who occupies the 293.27property and by each owner's spouse who occupies the property, or, in the case of property 293.28that qualifies as a homestead under subdivision 1, paragraph (c), by the qualifying relative. 293.29    If a property owner occupies a homestead, the property owner's spouse may not 293.30claim another property as a homestead unless the property owner and the property owner's 293.31spouse file with the assessor an affidavit or other proof required by the assessor stating that 293.32the property qualifies as a homestead under subdivision 1, paragraph (e). 293.33    Owners or spouses occupying residences owned by their spouses and previously 293.34occupied with the other spouse, either of whom fail to include the other spouse's name 293.35and Social Security number on the homestead application or provide the affidavits or 294.1other proof requested, will be deemed to have elected to receive only partial homestead 294.2treatment of their residence. The remainder of the residence will be classified as 294.3nonhomestead residential. When an owner or spouse's name and Social Security number 294.4appear on homestead applications for two separate residences and only one application is 294.5signed, the owner or spouse will be deemed to have elected to homestead the residence for 294.6which the application was signed. 294.7    The Social Security numbers, state or federal tax returns or tax return information, 294.8including the federal income tax schedule F required by this section, or affidavits or other 294.9proofs of the property owners and spouses submitted under this or another section to 294.10support a claim for a property tax homestead classification are private data on individuals as 294.11defined by section 13.02, subdivision 12, but, notwithstanding that section, the private data 294.12may be disclosed to the commissioner of revenue, or, for purposes of proceeding under the 294.13Revenue Recapture Act to recover personal property taxes owing, to the county treasurer. 294.14    (d) If residential real estate is occupied and used for purposes of a homestead by a 294.15relative of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in 294.16order for the property to receive homestead status, a homestead application must be filed 294.17with the assessor. The Social Security number of each relative and spouse of a relative 294.18occupying the property shall be required on the homestead application filed under this 294.19subdivision. If a different relative of the owner subsequently occupies the property, the 294.20owner of the property must notify the assessor within 30 days of the change in occupancy. 294.21The Social Security number of a relative or relative's spouse occupying the property 294.22is private data on individuals as defined by section 13.02, subdivision 12, but may be 294.23disclosed to the commissioner of revenue, or, for the purposes of proceeding under the 294.24Revenue Recapture Act to recover personal property taxes owing, to the county treasurer. 294.25    (e) The homestead application shall also notify the property owners that the 294.26application filed under this section will not be mailed annually and that if the property 294.27is granted homestead status for any assessment year, that same property shall remain 294.28classified as homestead until the property is sold or transferred to another person, or 294.29the owners, the spouse of the owner, or the relatives no longer use the property as their 294.30homestead. Upon the sale or transfer of the homestead property, a certificate of value must 294.31be timely filed with the county auditor as provided under section 272.115. Failure to 294.32notify the assessor within 30 days that the property has been sold, transferred, or that the 294.33owner, the spouse of the owner, or the relative is no longer occupying the property as a 294.34homestead, shall result in the penalty provided under this subdivision and the property 294.35will lose its current homestead status. 295.1    (f) If the homestead application is not returned within 30 days, the county will send a 295.2second application to the present owners of record. The notice of proposed property taxes 295.3prepared under section 275.065, subdivision 3, shall reflect the property's classification. If 295.4a homestead application has not been filed with the county by December 15, the assessor 295.5shall classify the property as nonhomestead for the current assessment year for taxes 295.6payable in the following year, provided that the owner may be entitled to receive the 295.7homestead classification by proper application under section 375.192. 295.8    (g) At the request of the commissioner, each county must give the commissioner a 295.9list that includes the name and Social Security number of each occupant of homestead 295.10property who is the property owner, property owner's spouse, qualifying relative of a 295.11property owner, or a spouse of a qualifying relative. The commissioner shall use the 295.12information provided on the lists as appropriate under the law, including for the detection 295.13of improper claims by owners, or relatives of owners, under chapter 290A. 295.14    (h) If the commissioner finds that a property owner may be claiming a fraudulent 295.15homestead, the commissioner shall notify the appropriate counties. Within 90 days of 295.16the notification, the county assessor shall investigate to determine if the homestead 295.17classification was properly claimed. If the property owner does not qualify, the county 295.18assessor shall notify the county auditor who will determine the amount of homestead 295.19benefits that had been improperly allowed. For the purpose of this section, "homestead 295.20benefits" means the tax reduction resulting from the classification as a homestead new text begin and the new text end 295.21 new text begin homestead market value exclusion new text end under section 273.13, the taconite homestead credit 295.22under section 273.135, the residential homestead and agricultural homestead credits new text begin credit new text end 295.23 under section 273.1384, and the supplemental homestead credit under section 273.1391. 295.24    The county auditor shall send a notice to the person who owned the affected property 295.25at the time the homestead application related to the improper homestead was filed, 295.26demanding reimbursement of the homestead benefits plus a penalty equal to 100 percent 295.27of the homestead benefits. The person notified may appeal the county's determination 295.28by serving copies of a petition for review with county officials as provided in section 295.29278.01 and filing proof of service as provided in section 278.01 with the Minnesota Tax 295.30Court within 60 days of the date of the notice from the county. Procedurally, the appeal 295.31is governed by the provisions in chapter 271 which apply to the appeal of a property tax 295.32assessment or levy, but without requiring any prepayment of the amount in controversy. If 295.33the amount of homestead benefits and penalty is not paid within 60 days, and if no appeal 295.34has been filed, the county auditor shall certify the amount of taxes and penalty to the county 295.35treasurer. The county treasurer will add interest to the unpaid homestead benefits and 295.36penalty amounts at the rate provided in section 279.03 for real property taxes becoming 296.1delinquent in the calendar year during which the amount remains unpaid. Interest may be 296.2assessed for the period beginning 60 days after demand for payment was made. 296.3    If the person notified is the current owner of the property, the treasurer may add the 296.4total amount of homestead benefits, penalty, interest, and costs to the ad valorem taxes 296.5otherwise payable on the property by including the amounts on the property tax statements 296.6under section 276.04, subdivision 3. The amounts added under this paragraph to the ad 296.7valorem taxes shall include interest accrued through December 31 of the year preceding 296.8the taxes payable year for which the amounts are first added. These amounts, when added 296.9to the property tax statement, become subject to all the laws for the enforcement of real or 296.10personal property taxes for that year, and for any subsequent year. 296.11    If the person notified is not the current owner of the property, the treasurer may 296.12collect the amounts due under the Revenue Recapture Act in chapter 270A, or use any of 296.13the powers granted in sections 277.20 and 277.21 without exclusion, to enforce payment 296.14of the homestead benefits, penalty, interest, and costs, as if those amounts were delinquent 296.15tax obligations of the person who owned the property at the time the application related to 296.16the improperly allowed homestead was filed. The treasurer may relieve a prior owner of 296.17personal liability for the homestead benefits, penalty, interest, and costs, and instead extend 296.18those amounts on the tax lists against the property as provided in this paragraph to the extent 296.19that the current owner agrees in writing. On all demands, billings, property tax statements, 296.20and related correspondence, the county must list and state separately the amounts of 296.21homestead benefits, penalty, interest and costs being demanded, billed or assessed. 296.22    (i) Any amount of homestead benefits recovered by the county from the property 296.23owner shall be distributed to the county, city or town, and school district where the 296.24property is located in the same proportion that each taxing district's levy was to the total 296.25of the three taxing districts' levy for the current year. Any amount recovered attributable 296.26to taconite homestead credit shall be transmitted to the St. Louis County auditor to be 296.27deposited in the taconite property tax relief account. Any amount recovered that is 296.28attributable to supplemental homestead credit is to be transmitted to the commissioner of 296.29revenue for deposit in the general fund of the state treasury. The total amount of penalty 296.30collected must be deposited in the county general fund. 296.31    (j) If a property owner has applied for more than one homestead and the county 296.32assessors cannot determine which property should be classified as homestead, the county 296.33assessors will refer the information to the commissioner. The commissioner shall make 296.34the determination and notify the counties within 60 days. 296.35    (k) In addition to lists of homestead properties, the commissioner may ask the 296.36counties to furnish lists of all properties and the record owners. The Social Security 297.1numbers and federal identification numbers that are maintained by a county or city 297.2assessor for property tax administration purposes, and that may appear on the lists retain 297.3their classification as private or nonpublic data; but may be viewed, accessed, and used by 297.4the county auditor or treasurer of the same county for the limited purpose of assisting the 297.5commissioner in the preparation of microdata samples under section 270C.12. 297.6    (l) On or before April 30 each year beginning in 2007, each county must provide the 297.7commissioner with the following data for each parcel of homestead property by electronic 297.8means as defined in section 289A.02, subdivision 8: 297.9    (i) the property identification number assigned to the parcel for purposes of taxes 297.10payable in the current year; 297.11    (ii) the name and Social Security number of each occupant of homestead property 297.12who is the property owner, property owner's spouse, qualifying relative of a property 297.13owner, or spouse of a qualifying relative; 297.14    (iii) the classification of the property under section 273.13 for taxes payable in the 297.15current year and in the prior year; 297.16    (iv) an indication of whether the property was classified as a homestead for taxes 297.17payable in the current year because of occupancy by a relative of the owner or by a 297.18spouse of a relative; 297.19    (v) the property taxes payable as defined in section 290A.03, subdivision 13, for the 297.20current year and the prior year; 297.21    (vi) the market value of improvements to the property first assessed for tax purposes 297.22for taxes payable in the current year; 297.23    (vii) the assessor's estimated market value assigned to the property for taxes payable 297.24in the current year and the prior year; 297.25    (viii) the taxable market value assigned to the property for taxes payable in the 297.26current year and the prior year; 297.27    (ix) whether there are delinquent property taxes owing on the homestead; 297.28    (x) the unique taxing district in which the property is located; and 297.29    (xi) such other information as the commissioner decides is necessary. 297.30    The commissioner shall use the information provided on the lists as appropriate 297.31under the law, including for the detection of improper claims by owners, or relatives 297.32of owners, under chapter 290A. 297.33 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2013 and new text end 297.34 new text begin thereafter. new text end 297.35    Sec. 29. Minnesota Statutes 2012, section 273.13, subdivision 21b, is amended to read: 298.1    Subd. 21b. new text begin Net new text end tax capacity. (a) Gross tax capacity means the product of the 298.2appropriate gross class rates in this section and market values. 298.3    (b) Net tax capacity means the product of the appropriate net class rates in this 298.4section and new text begin taxable new text end market values. 298.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 298.6    Sec. 30. Minnesota Statutes 2012, section 273.1398, subdivision 3, is amended to read: 298.7    Subd. 3. Disparity reduction aid. The amount of disparity aid certified for each 298.8taxing district within each unique taxing jurisdiction for taxes payable in the prior year 298.9shall be multiplied by the ratio of (1) the jurisdiction's tax capacity using the class rates for 298.10taxes payable in the year for which aid is being computed, to (2) its tax capacity using 298.11the class rates for taxes payable in the year prior to that for which aid is being computed, 298.12both based upon new text begin taxable new text end market values for taxes payable in the year prior to that for which 298.13aid is being computed. If the commissioner determines that insufficient information is 298.14available to reasonably and timely calculate the numerator in this ratio for the first taxes 298.15payable year that a class rate change or new class rate is effective, the commissioner shall 298.16omit the effects of that class rate change or new class rate when calculating this ratio for 298.17aid payable in that taxes payable year. For aid payable in the year following a year for 298.18which such omission was made, the commissioner shall use in the denominator for the 298.19class that was changed or created, the tax capacity for taxes payable two years prior to that 298.20in which the aid is payable, based on new text begin taxable new text end market values for taxes payable in the year 298.21prior to that for which aid is being computed. 298.22    Sec. 31. Minnesota Statutes 2012, section 273.1398, subdivision 4, is amended to read: 298.23    Subd. 4. Disparity reduction credit. (a) Beginning with taxes payable in 1989, 298.24class 4a and class 3a property qualifies for a disparity reduction credit if: (1) the property 298.25is located in a border city that has an enterprise zone, as defined in section 469.166; (2) 298.26the property is located in a city with a population greater than 2,500 and less than 35,000 298.27according to the 1980 decennial census; (3) the city is adjacent to a city in another state or 298.28immediately adjacent to a city adjacent to a city in another state; and (4) the adjacent city 298.29in the other state has a population of greater than 5,000 and less than 75,000 according to 298.30the 1980 decennial census. 298.31    (b) The credit is an amount sufficient to reduce (i) the taxes levied on class 4a 298.32property to 2.3 percent of the property's new text begin taxable new text end market value and (ii) the tax on class 3a 298.33property to 2.3 percent of new text begin taxable new text end market value. 299.1    (c) The county auditor shall annually certify the costs of the credits to the 299.2Department of Revenue. The department shall reimburse local governments for the 299.3property taxes forgone as the result of the credits in proportion to their total levies. 299.4    Sec. 32. Minnesota Statutes 2012, section 275.011, subdivision 1, is amended to read: 299.5    Subdivision 1. Determination of levy limit. The property tax levied for any 299.6purpose under a special law that is not codified in Minnesota Statutes or a city charter 299.7provision and that is subject to a mill rate limitation imposed by the special law or city 299.8charter provision, excluding levies subject to mill rate limitations that use adjusted 299.9assessed values determined by the commissioner of revenue under section 124.2131, must 299.10not exceed the following amount for the years specified: 299.11    (a) for taxes payable in 1988, the product of the applicable mill rate limitation 299.12imposed by special law or city charter provision multiplied by the total assessed valuation 299.13of all taxable property subject to the tax as adjusted by the provisions of Minnesota 299.14Statutes 1986, sections 272.64; 273.13, subdivision 7a; and 275.49; 299.15    (b) for taxes payable in 1989, the product of (1) the property tax levy limitation for 299.16the taxes payable year 1988 determined under clause (a) multiplied by (2) an index for 299.17market valuation changes equal to the assessment year 1988 total market valuation of all 299.18taxable property subject to the tax divided by the assessment year 1987 total market 299.19valuation of all taxable property subject to the tax; and 299.20    (c) for taxes payable in 1990 and subsequent years, the product of (1) the property 299.21tax levy limitation for the previous year determined pursuant to this subdivision multiplied 299.22by (2) an index for market valuation changes equal to the total market valuation of all 299.23taxable property subject to the tax for the current assessment year divided by the total 299.24market valuation of all taxable property subject to the tax for the previous assessment year. 299.25    For the purpose of determining the property tax levy limitation for the taxes payable 299.26year 1988 new text begin 2014 new text end and subsequent years under this subdivision, "total market valuation" 299.27means the total new text begin estimated new text end market valuation new text begin value new text end of all taxable property subject to the 299.28tax without valuation adjustments for fiscal disparities (chapters 276A and 473F), tax 299.29increment financing (sections to 469.179), or powerline credit (section 273.425) 299.30 new text begin as provided under section 273.032 new text end . 299.31    Sec. 33. Minnesota Statutes 2012, section 275.077, subdivision 2, is amended to read: 299.32    Subd. 2. Correction of levy amount. The difference between the correct levy and 299.33the erroneous levy shall be added to the township levy for the subsequent levy year; 299.34provided that if the amount of the difference exceeds 0.12089 percent of taxable new text begin estimated new text end 300.1 market value, the excess shall be added to the township levy for the second and later 300.2subsequent levy years, not to exceed an additional levy of 0.12089 percent of taxable 300.3 new text begin estimated new text end market value in any year, until the full amount of the difference has been levied. 300.4The funds collected from the corrected levies shall be used to reimburse the county for the 300.5payment required by subdivision 1. 300.6    Sec. 34. Minnesota Statutes 2012, section 275.71, subdivision 4, is amended to read: 300.7    Subd. 4. Adjusted levy limit base. For taxes levied in 2008 through 2010, the 300.8adjusted levy limit base is equal to the levy limit base computed under subdivision 2 300.9or section 275.72, multiplied by: 300.10    (1) one plus the percentage growth in the implicit price deflator, but the percentage 300.11shall not be less than zero or exceed 3.9 percent; 300.12    (2) one plus a percentage equal to 50 percent of the percentage increase in the number 300.13of households, if any, for the most recent 12-month period for which data is available; and 300.14    (3) one plus a percentage equal to 50 percent of the percentage increase in the 300.15taxable new text begin estimated new text end market value of the jurisdiction due to new construction of class 3 300.16property, as defined in section 273.13, subdivision 4, except for state-assessed utility and 300.17railroad property, for the most recent year for which data is available. 300.18    Sec. 35. Minnesota Statutes 2012, section 276.04, subdivision 2, is amended to read: 300.19    Subd. 2. Contents of tax statements. (a) The treasurer shall provide for the printing 300.20of the tax statements. The commissioner of revenue shall prescribe the form of the property 300.21tax statement and its contents. The tax statement must not state or imply that property tax 300.22credits are paid by the state of Minnesota. The statement must contain a tabulated statement 300.23of the dollar amount due to each taxing authority and the amount of the state tax from the 300.24parcel of real property for which a particular tax statement is prepared. The dollar amounts 300.25attributable to the county, the state tax, the voter approved school tax, the other local school 300.26tax, the township or municipality, and the total of the metropolitan special taxing districts 300.27as defined in section 275.065, subdivision 3, paragraph (i), must be separately stated. 300.28The amounts due all other special taxing districts, if any, may be aggregated except that 300.29any levies made by the regional rail authorities in the county of Anoka, Carver, Dakota, 300.30Hennepin, Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate 300.31line directly under the appropriate county's levy. If the county levy under this paragraph 300.32includes an amount for a lake improvement district as defined under sections 103B.501 300.33to 103B.581, the amount attributable for that purpose must be separately stated from the 300.34remaining county levy amount. In the case of Ramsey County, if the county levy under this 301.1paragraph includes an amount for public library service under section 134.07, the amount 301.2attributable for that purpose may be separated from the remaining county levy amount. 301.3The amount of the tax on homesteads qualifying under the senior citizens' property tax 301.4deferral program under chapter 290B is the total amount of property tax before subtraction 301.5of the deferred property tax amount. The amount of the tax on contamination value 301.6imposed under sections 270.91 to 270.98, if any, must also be separately stated. The dollar 301.7amounts, including the dollar amount of any special assessments, may be rounded to the 301.8nearest even whole dollar. For purposes of this section whole odd-numbered dollars may 301.9be adjusted to the next higher even-numbered dollar. The amount of market value excluded 301.10under section 273.11, subdivision 16, if any, must also be listed on the tax statement. 301.11    (b) The property tax statements for manufactured homes and sectional structures 301.12taxed as personal property shall contain the same information that is required on the 301.13tax statements for real property. 301.14    (c) Real and personal property tax statements must contain the following information 301.15in the order given in this paragraph. The information must contain the current year tax 301.16information in the right column with the corresponding information for the previous year 301.17in a column on the left: 301.18    (1) the property's estimated market value under section 273.11, subdivision 1; 301.19    (2) the property's homestead market value exclusion under section 273.13, 301.20subdivision 35; 301.21    (3) the property's taxable market value after reductions under sections , 301.22subdivisions 1a and 16, and 273.13, subdivision 35 new text begin section 272.03, subdivision 15 new text end ; 301.23    (4) the property's gross tax, before credits; 301.24    (5) for homestead agricultural properties, the credit under section 273.1384; 301.25    (6) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135; 301.26273.1391 ; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of 301.27credit received under section 273.135 must be separately stated and identified as "taconite 301.28tax relief"; and 301.29    (7) the net tax payable in the manner required in paragraph (a). 301.30    (d) If the county uses envelopes for mailing property tax statements and if the county 301.31agrees, a taxing district may include a notice with the property tax statement notifying 301.32taxpayers when the taxing district will begin its budget deliberations for the current 301.33year, and encouraging taxpayers to attend the hearings. If the county allows notices to 301.34be included in the envelope containing the property tax statement, and if more than 301.35one taxing district relative to a given property decides to include a notice with the tax 302.1statement, the county treasurer or auditor must coordinate the process and may combine 302.2the information on a single announcement. 302.3    Sec. 36. Minnesota Statutes 2012, section 276A.01, subdivision 10, is amended to read: 302.4    Subd. 10. new text begin Adjusted new text end market value. " new text begin Adjusted new text end market value" of real and personal 302.5property within a municipality means the assessor's estimated new text begin taxable new text end market value new text begin , new text end 302.6 new text begin as defined in section 272.03, new text end of all real and personal property, including the value of 302.7manufactured housing, within the municipality. For purposes of sections to 302.8, the commissioner of revenue shall annually make determinations and reports 302.9with respect to each municipality which are comparable to those it makes for school 302.10districts new text begin , adjusted for sales ratios in a manner similar to the adjustments made to city and new text end 302.11 new text begin town net tax capacities new text end under section 127A.48, subdivisions 1 to 6, in the same manner 302.12and at the same times prescribed by the subdivision. The commissioner of revenue shall 302.13annually determine, for each municipality, information comparable to that required by 302.14section 475.53, subdivision 4, for school districts, as soon as practicable after it becomes 302.15available. The commissioner of revenue shall then compute the equalized market value of 302.16property within each municipality. 302.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 302.18    Sec. 37. Minnesota Statutes 2012, section 276A.01, subdivision 12, is amended to read: 302.19    Subd. 12. Fiscal capacity. "Fiscal capacity" of a municipality means its valuation 302.20 new text begin adjusted market value new text end , determined as of January 2 of any year, divided by its population, 302.21determined as of a date in the same year. 302.22    Sec. 38. Minnesota Statutes 2012, section 276A.01, subdivision 13, is amended to read: 302.23    Subd. 13. Average fiscal capacity. "Average fiscal capacity" of municipalities 302.24means the sum of the valuations new text begin adjusted market values new text end of all municipalities, determined 302.25as of January 2 of any year, divided by the sum of their populations, determined as of 302.26a date in the same year. 302.27    Sec. 39. Minnesota Statutes 2012, section 276A.01, subdivision 15, is amended to read: 302.28    Subd. 15. Net tax capacity. "Net tax capacity" means the new text begin taxable new text end market value of 302.29real and personal property multiplied by its net tax capacity rates in section 273.13. 302.30    Sec. 40. Minnesota Statutes 2012, section 276A.06, subdivision 10, is amended to read: 303.1    Subd. 10. Adjustment of values for other computations. For the purpose of 303.2computing the amount or rate of any salary, aid, tax, or debt authorized, required, or 303.3limited by any provision of any law or charter, where the authorization, requirement, or 303.4limitation is related to any value or valuation of taxable property within any governmental 303.5unit, the value or net tax capacity new text begin fiscal capacity under section 276A.01, subdivision 12, a new text end 303.6 new text begin municipality's taxable market value new text end must be adjusted to reflect the adjustments new text begin reductions new text end 303.7 to net tax capacity effected by subdivision 2, new text begin clause (a), new text end provided that: (1) in determining 303.8the new text begin taxable new text end market value of commercial-industrial property or any class thereof within 303.9a governmental unit for any purpose other than section new text begin municipality new text end , (a) the 303.10reduction required by this subdivision is that amount which bears the same proportion to 303.11the amount subtracted from the governmental unit's new text begin municipality's new text end net tax capacity pursuant 303.12to subdivision 2, clause (a), as the new text begin taxable new text end market value of commercial-industrial property, 303.13or such class thereof, located within the governmental unit new text begin municipality new text end bears to the net 303.14tax capacity of commercial-industrial property, or such class thereof, located within the 303.15governmental unit, and (b) the increase required by this subdivision is that amount which 303.16bears the same proportion to the amount added to the governmental unit's net tax capacity 303.17pursuant to subdivision 2, clause (b), as the market value of commercial-industrial property, 303.18or such class thereof, located within the governmental unit bears to the net tax capacity of 303.19commercial-industrial property, or such class thereof, located within the governmental unit; 303.20and (2) in determining the market value of real property within a municipality for purposes 303.21of section , the adjustment prescribed by clause (1)(a) must be made and that 303.22prescribed by clause (1)(b) must not be made new text begin municipality. No adjustment shall be made new text end 303.23 new text begin to taxable market value for the increase in net tax capacity under subdivision 2, clause (b) new text end . 303.24    Sec. 41. Minnesota Statutes 2012, section 287.08, is amended to read: 303.25287.08 TAX, HOW PAYABLE; RECEIPTS. 303.26    (a) The tax imposed by sections 287.01 to 287.12 must be paid to the treasurer of 303.27any county in this state in which the real property or some part is located at or before 303.28the time of filing the mortgage for record. The treasurer shall endorse receipt on the 303.29mortgage and the receipt is conclusive proof that the tax has been paid in the amount 303.30stated and authorizes any county recorder or registrar of titles to record the mortgage. Its 303.31form, in substance, shall be "registration tax hereon of ..................... dollars paid." If the 303.32mortgage is exempt from taxation the endorsement shall, in substance, be "exempt from 303.33registration tax." In either case the receipt must be signed by the treasurer. In case the 303.34treasurer is unable to determine whether a claim of exemption should be allowed, the tax 303.35must be paid as in the case of a taxable mortgage. For documents submitted electronically, 304.1the endorsements and tax amount shall be affixed electronically and no signature by the 304.2treasurer will be required. The actual payment method must be arranged in advance 304.3between the submitter and the receiving county. 304.4    (b) The county treasurer may refund in whole or in part any mortgage registry tax 304.5overpayment if a written application by the taxpayer is submitted to the county treasurer 304.6within 3-1/2 years from the date of the overpayment. If the county has not issued a denial 304.7of the application, the taxpayer may bring an action in Tax Court in the county in which 304.8the tax was paid at any time after the expiration of six months from the time that the 304.9application was submitted. A denial of refund may be appealed within 60 days from 304.10the date of the denial by bringing an action in Tax Court in the county in which the tax 304.11was paid. The action is commenced by the serving of a petition for relief on the county 304.12treasurer, and by filing a copy with the court. The county attorney shall defend the action. 304.13The county treasurer shall notify the treasurer of each county that has or would receive a 304.14portion of the tax as paid. 304.15    (c) If the county treasurer determines a refund should be paid, or if a refund is 304.16ordered by the court, the county treasurer of each county that actually received a portion 304.17of the tax shall immediately pay a proportionate share of three percent of the refund 304.18using any available county funds. The county treasurer of each county that received, or 304.19would have received, a portion of the tax shall also pay their county's proportionate share 304.20of the remaining 97 percent of the court-ordered refund on or before the 20th day of the 304.21following month using solely the mortgage registry tax funds that would be paid to the 304.22commissioner of revenue on that date under section 287.12. If the funds on hand under 304.23this procedure are insufficient to fully fund 97 percent of the court-ordered refund, the 304.24county treasurer of the county in which the action was brought shall file a claim with the 304.25commissioner of revenue under section 16A.48 for the remaining portion of 97 percent of 304.26the refund, and shall pay over the remaining portion upon receipt of a warrant from the 304.27state issued pursuant to the claim. 304.28    (d) When any mortgage covers real property located in more than one county in this 304.29state the total tax must be paid to the treasurer of the county where the mortgage is first 304.30presented for recording, and the payment must be receipted as provided in paragraph 304.31(a). If the principal debt or obligation secured by such a multiple county mortgage 304.32exceeds $10,000,000, the nonstate portion of the tax must be divided and paid over by 304.33the county treasurer receiving it, on or before the 20th day of each month after receipt, 304.34to the county or counties entitled in the ratio that the new text begin estimated new text end market value of the real 304.35property covered by the mortgage in each county bears to the new text begin estimated new text end market value of 304.36all the real property in this state described in the mortgage. In making the division and 305.1payment the county treasurer shall send a statement giving the description of the real 305.2property described in the mortgage and the new text begin estimated new text end market value of the part located in 305.3each county. For this purpose, the treasurer of any county may require the treasurer of 305.4any other county to certify to the former the new text begin estimated new text end market valuation new text begin value new text end of any tract 305.5of real property in any mortgage. 305.6    (e) The mortgagor must pay the tax imposed by sections 287.01 to 287.12. The 305.7mortgagee may undertake to collect and remit the tax on behalf of the mortgagor. If the 305.8mortgagee collects money from the mortgagor to remit the tax on behalf of the mortgagor, 305.9the mortgagee has a fiduciary duty to remit the tax on behalf of the mortgagor as to the 305.10amount of the tax collected for that purpose and the mortgagor is relieved of any further 305.11obligation to pay the tax as to the amount collected by the mortgagee for this purpose. 305.12    Sec. 42. Minnesota Statutes 2012, section 287.23, subdivision 1, is amended to read: 305.13    Subdivision 1. Real property outside county. If any taxable deed or instrument 305.14describes any real property located in more than one county in this state, the total tax must 305.15be paid to the treasurer of the county where the document is first presented for recording, 305.16and the payment must be receipted as provided in section 287.08. If the net consideration 305.17exceeds $700,000, the nonstate portion of the tax must be divided and paid over by the 305.18county treasurer receiving it, on or before the 20th day of each month after receipt, to 305.19the county or counties entitled in the ratio which the new text begin estimated new text end market value of the real 305.20property covered by the document in each county bears to the new text begin estimated new text end market value of 305.21all the real property in this state described in the document. In making the division and 305.22payment the county treasurer shall send a statement to the other involved counties giving 305.23the description of the real property described in the document and the new text begin estimated new text end market 305.24value of the part located in each county. The treasurer of any county may require the 305.25treasurer of any other county to certify to the former the new text begin estimated new text end market valuation new text begin value new text end 305.26 of any parcel of real property for this purpose. 305.27    Sec. 43. Minnesota Statutes 2012, section 353G.08, subdivision 2, is amended to read: 305.28    Subd. 2. Cash flow funding requirement. If the executive director determines that 305.29an account in the voluntary statewide lump-sum volunteer firefighter retirement plan has 305.30insufficient assets to meet the service pensions determined payable from the account, 305.31the executive director shall certify the amount of the potential service pension shortfall 305.32to the municipality or municipalities and the municipality or municipalities shall make 305.33an additional employer contribution to the account within ten days of the certification. 305.34If more than one municipality is associated with the account, unless the municipalities 306.1agree to a different allocation, the municipalities shall allocate the additional employer 306.2contribution one-half in proportion to the population of each municipality and one-half in 306.3proportion to the new text begin estimated new text end market value of the property of each municipality. 306.4    Sec. 44. Minnesota Statutes 2012, section 365.025, subdivision 4, is amended to read: 306.5    Subd. 4. Major purchases: notice, petition, election. Before buying anything 306.6under subdivision 2 that costs more than 0.24177 percent of the new text begin estimated new text end market value of 306.7the town, the town must follow this subdivision. 306.8    The town must publish in its official newspaper the board's resolution to pay for the 306.9property over time. Then a petition for an election on the contract may be filed with the 306.10clerk. The petition must be filed within ten days after the resolution is published. To require 306.11the election the petition must be signed by a number of voters equal to ten percent of the 306.12voters at the last regular town election. The contract then must be approved by a majority of 306.13those voting on the question. The question may be voted on at a regular or special election. 306.14    Sec. 45. Minnesota Statutes 2012, section 366.095, subdivision 1, is amended to read: 306.15    Subdivision 1. Certificates of indebtedness. The town board may issue certificates 306.16of indebtedness within the debt limits for a town purpose otherwise authorized by law. 306.17The certificates shall be payable in not more than ten years and be issued on the terms and 306.18in the manner as the board may determine. If the amount of the certificates to be issued 306.19exceeds 0.25 percent of the new text begin estimated new text end market value of the town, they shall not be issued 306.20for at least ten days after publication in a newspaper of general circulation in the town of 306.21the board's resolution determining to issue them. If within that time, a petition asking for 306.22an election on the proposition signed by voters equal to ten percent of the number of voters 306.23at the last regular town election is filed with the clerk, the certificates shall not be issued 306.24until their issuance has been approved by a majority of the votes cast on the question at 306.25a regular or special election. A tax levy shall be made to pay the principal and interest 306.26on the certificates as in the case of bonds. 306.27    Sec. 46. Minnesota Statutes 2012, section 366.27, is amended to read: 306.28366.27 FIREFIGHTERS' RELIEF; TAX LEVY. 306.29    The town board of any town in this state having therein a platted portion on 306.30which resides 1,200 or more people, and wherein a duly incorporated firefighters' relief 306.31association is located may each year levy a tax not to exceed 0.00806 percent of taxable 306.32 new text begin estimated new text end market value for the benefit of the relief association. 307.1    Sec. 47. Minnesota Statutes 2012, section 368.01, subdivision 23, is amended to read: 307.2    Subd. 23. Financing purchase of certain equipment. The town board may issue 307.3certificates of indebtedness within debt limits to purchase fire or police equipment or 307.4ambulance equipment or street construction or maintenance equipment. The certificates 307.5shall be payable in not more than five years and be issued on terms and in the manner as the 307.6board may determine. If the amount of the certificates to be issued to finance a purchase 307.7exceeds 0.24177 percent of the new text begin estimated new text end market value of the town, excluding money 307.8and credits, they shall not be issued for at least ten days after publication in the official 307.9newspaper of a town board resolution determining to issue them. If before the end of that 307.10time, a petition asking for an election on the proposition signed by voters equal to ten 307.11percent of the number of voters at the last regular town election is filed with the clerk, the 307.12certificates shall not be issued until the proposition of their issuance has been approved by a 307.13majority of the votes cast on the question at a regular or special election. A tax levy shall be 307.14made for the payment of the principal and interest on the certificates as in the case of bonds. 307.15    Sec. 48. Minnesota Statutes 2012, section 368.47, is amended to read: 307.16368.47 TOWNS MAY BE DISSOLVED. 307.17    (1) When the voters residing within a town have failed to elect any town officials for 307.18more than ten years continuously; 307.19    (2) when a town has failed for a period of ten years to exercise any of the powers 307.20and functions of a town; 307.21    (3) when the new text begin estimated new text end market value of a town drops to less than $165,000; 307.22    (4) when the tax delinquency of a town, exclusive of taxes that are delinquent or 307.23unpaid because they are contested in proceedings for the enforcement of taxes, amounts to 307.2412 percent of its market value; or 307.25    (5) when the state or federal government has acquired title to 50 percent of the 307.26real estate of a town, 307.27which facts, or any of them, may be found and determined by the resolution of the county 307.28board of the county in which the town is located, according to the official records in the 307.29office of the county auditor, the county board by resolution may declare the town, naming 307.30it, dissolved and no longer entitled to exercise any of the powers or functions of a town. 307.31    In Cass, Itasca, and St. Louis Counties, before the dissolution is effective the voters 307.32of the town shall express their approval or disapproval. The town clerk shall, upon a 307.33petition signed by a majority of the registered voters of the town, filed with the clerk at 307.34least 60 days before a regular or special town election, give notice at the same time and 307.35in the same manner of the election that the question of dissolution of the town will be 308.1submitted for determination at the election. At the election the question shall be voted 308.2upon by a separate ballot, the terms of which shall be either "for dissolution" or "against 308.3dissolution." The ballot shall be deposited in a separate ballot box and the result of the 308.4voting canvassed, certified, and returned in the same manner and at the same time as 308.5other facts and returns of the election. If a majority of the votes cast at the election are 308.6for dissolution, the town shall be dissolved. If a majority of the votes cast at the election 308.7are against dissolution, the town shall not be dissolved. 308.8    When a town is dissolved under sections 368.47 to 368.49 the county shall acquire 308.9title to any telephone company or other business conducted by the town. The business 308.10shall be operated by the board of county commissioners until it can be sold. The 308.11subscribers or patrons of the business shall have the first opportunity of purchase. If the 308.12town has any outstanding indebtedness chargeable to the business, the county auditor shall 308.13levy a tax against the property situated in the dissolved town to pay the indebtedness 308.14as it becomes due. 308.15    Sec. 49. Minnesota Statutes 2012, section 370.01, is amended to read: 308.16370.01 CHANGE OF BOUNDARIES; CREATION OF NEW COUNTIES. 308.17    The boundaries of counties may be changed by taking territory from a county and 308.18attaching it to an adjoining county, and new counties may be established out of territory of 308.19one or more existing counties. A new county shall contain at least 400 square miles and 308.20have at least 4,000 inhabitants. A proposed new county must have a total taxable new text begin estimated new text end 308.21 market value of at least 35 percent of (i) the total taxable new text begin estimated new text end market value of the 308.22existing county, or (ii) the average total taxable new text begin estimated new text end market value of the existing 308.23counties, included in the proposition. The determination of the taxable new text begin estimated new text end market 308.24value of a county must be made by the commissioner of revenue. An existing county shall 308.25not be reduced in area below 400 square miles, have less than 4,000 inhabitants, or have a 308.26total taxable new text begin estimated new text end market value of less than that required of a new county. 308.27    No change in the boundaries of any county having an area of more than 2,500 square 308.28miles, whether by the creation of a new county, or otherwise, shall detach from the existing 308.29county any territory within 12 miles of the county seat. 308.30    Sec. 50. Minnesota Statutes 2012, section 373.40, subdivision 1, is amended to read: 308.31    Subdivision 1. Definitions. For purposes of this section, the following terms have 308.32the meanings given. 308.33    (a) "Bonds" means an obligation as defined under section 475.51. 309.1    (b) "Capital improvement" means acquisition or betterment of public lands, 309.2buildings, or other improvements within the county for the purpose of a county courthouse, 309.3administrative building, health or social service facility, correctional facility, jail, law 309.4enforcement center, hospital, morgue, library, park, qualified indoor ice arena, roads and 309.5bridges, and the acquisition of development rights in the form of conservation easements 309.6under chapter 84C. An improvement must have an expected useful life of five years or 309.7more to qualify. "Capital improvement" does not include a recreation or sports facility 309.8building (such as, but not limited to, a gymnasium, ice arena, racquet sports facility, 309.9swimming pool, exercise room or health spa), unless the building is part of an outdoor 309.10park facility and is incidental to the primary purpose of outdoor recreation. 309.11    (c) "Metropolitan county" means a county located in the seven-county metropolitan 309.12area as defined in section 473.121 or a county with a population of 90,000 or more. 309.13    (d) "Population" means the population established by the most recent of the 309.14following (determined as of the date the resolution authorizing the bonds was adopted): 309.15    (1) the federal decennial census, 309.16    (2) a special census conducted under contract by the United States Bureau of the 309.17Census, or 309.18    (3) a population estimate made either by the Metropolitan Council or by the state 309.19demographer under section 4A.02. 309.20    (e) "Qualified indoor ice arena" means a facility that meets the requirements of 309.21section 373.43. 309.22    (f) "Tax capacity" means total taxable market value, but does not include captured 309.23market value. 309.24    Sec. 51. Minnesota Statutes 2012, section 373.40, subdivision 4, is amended to read: 309.25    Subd. 4. Limitations on amount. A county may not issue bonds under this section 309.26if the maximum amount of principal and interest to become due in any year on all the 309.27outstanding bonds issued pursuant to this section (including the bonds to be issued) will 309.28equal or exceed 0.12 percent of taxable new text begin the estimated new text end market value of property in the 309.29county. Calculation of the limit must be made using the taxable new text begin estimated new text end market value for 309.30the taxes payable year in which the obligations are issued and sold. This section does not 309.31limit the authority to issue bonds under any other special or general law. 309.32    Sec. 52. Minnesota Statutes 2012, section 375.167, subdivision 1, is amended to read: 309.33    Subdivision 1. Appropriations. Notwithstanding any contrary law, a county board 309.34may appropriate from the general revenue fund to any nonprofit corporation a sum not 310.1to exceed 0.00604 percent of taxable new text begin estimated new text end market value to provide legal assistance 310.2to persons who are unable to afford private legal counsel. 310.3    Sec. 53. Minnesota Statutes 2012, section 375.18, subdivision 3, is amended to read: 310.4    Subd. 3. Courthouse. Each county board may erect, furnish, and maintain a 310.5suitable courthouse. No indebtedness shall be created for a courthouse in excess of an 310.6amount equal to a levy of 0.04030 percent of taxable new text begin estimated new text end market value without the 310.7approval of a majority of the voters of the county voting on the question of issuing the 310.8obligation at an election. 310.9    Sec. 54. Minnesota Statutes 2012, section 375.555, is amended to read: 310.10375.555 FUNDING. 310.11    To implement the county emergency jobs program, the county board may expend 310.12an amount equal to what would be generated by a levy of 0.01209 percent of taxable 310.13 new text begin estimated new text end market value. The money to be expended may be from any available funds 310.14not otherwise earmarked. 310.15    Sec. 55. Minnesota Statutes 2012, section 383B.152, is amended to read: 310.16383B.152 BUILDING AND MAINTENANCE FUND. 310.17    The county board may by resolution levy a tax to provide money which shall be kept 310.18in a fund known as the county reserve building and maintenance fund. Money in the fund 310.19shall be used solely for the construction, maintenance, and equipping of county buildings 310.20that are constructed or maintained by the board. The levy shall not be subject to any limit 310.21fixed by any other law or by any board of tax levy or other corresponding body, but shall 310.22not exceed 0.02215 percent of taxable new text begin estimated new text end market value, less the amount required by 310.23chapter 475 to be levied in the year for the payment of the principal of and interest on all 310.24bonds issued pursuant to Extra Session Laws 1967, chapter 47, section 1. 310.25    Sec. 56. Minnesota Statutes 2012, section 383B.245, is amended to read: 310.26383B.245 LIBRARY LEVY. 310.27    (a) The county board may levy a tax on the taxable property within the county to 310.28acquire, better, and construct county library buildings and branches and to pay principal 310.29and interest on bonds issued for that purpose. 310.30    (b) The county board may by resolution adopted by a five-sevenths vote issue and 310.31sell general obligation bonds of the county in the manner provided in sections 475.60 to 311.1475.73 . The bonds shall not be subject to the limitations of sections 475.51 to 475.59, 311.2but the maturity years and amounts and interest rates of each series of bonds shall be 311.3fixed so that the maximum amount of principal and interest to become due in any year, 311.4on the bonds of that series and of all outstanding series issued by or for the purposes of 311.5libraries, shall not exceed an amount equal to 0.01612 percent of new text begin estimated new text end market value 311.6of all taxable property in the county as last finally equalized before the issuance of the new 311.7series. When the tax levy authorized in this section is collected it shall be appropriated 311.8and credited to a debt service fund for the bonds in amounts required each year in lieu of a 311.9countywide tax levy for the debt service fund under section 475.61. 311.10    Sec. 57. Minnesota Statutes 2012, section 383B.73, subdivision 1, is amended to read: 311.11    Subdivision 1. Levy. To provide funds for the purposes of the Three Rivers Park 311.12District as set forth in its annual budget, in lieu of the levies authorized by any other 311.13special law for such purposes, the Board of Park District Commissioners may levy taxes 311.14on all the taxable property in the county and park district at a rate not exceeding 0.03224 311.15percent of new text begin estimated new text end market value. Notwithstanding section 398.16, on or before October 311.161 of each year, after public hearing, the Board of Park District Commissioners shall adopt 311.17a budget for the ensuing year and shall determine the total amount necessary to be raised 311.18from ad valorem tax levies to meet its budget. The Board of Park District Commissioners 311.19shall submit the budget to the county board. The county board may veto or modify an item 311.20contained in the budget. If the county board determines to veto or to modify an item in the 311.21budget, it must, within 15 days after the budget was submitted by the district board, state 311.22in writing the specific reasons for its objection to the item vetoed or the reason for the 311.23modification. The Park District Board, after consideration of the county board's objections 311.24and proposed modifications, may reapprove a vetoed item or the original version of an item 311.25with respect to which a modification has been proposed, by a two-thirds majority. If the 311.26district board does not reapprove a vetoed item, the item shall be deleted from the budget. 311.27If the district board does not reapprove the original version of a modified item, the item 311.28shall be included in the budget as modified by the county board. After adoption of the final 311.29budget and no later than October 1, the superintendent of the park district shall certify to the 311.30office of the Hennepin County director of tax and public records exercising the functions 311.31of the county auditor the total amount to be raised from ad valorem tax levies to meet its 311.32budget for the ensuing year. The director of tax and public records shall add the amount of 311.33any levy certified by the district to other tax levies on the property of the county within the 311.34district for collection by the director of tax and public records with other taxes. When 312.1collected, the director shall make settlement of such taxes with the district in the same 312.2manner as other taxes are distributed to the other political subdivisions in Hennepin County. 312.3    Sec. 58. Minnesota Statutes 2012, section 383E.20, is amended to read: 312.4383E.20 BONDING FOR COUNTY LIBRARY BUILDINGS. 312.5    The Anoka County Board may, by resolution adopted by a four-sevenths vote, issue 312.6and sell general obligation bonds of the county in the manner provided in chapter 475 to 312.7acquire, better, and construct county library buildings. The bonds shall not be subject to the 312.8requirements of sections 475.57 to 475.59. The maturity years and amounts and interest 312.9rates of each series of bonds shall be fixed so that the maximum amount of principal and 312.10interest to become due in any year, on the bonds of that series and of all outstanding series 312.11issued by or for the purposes of libraries, shall not exceed an amount equal to .01 percent 312.12of the taxable new text begin estimated new text end market value of all taxable property in the county, excluding any 312.13taxable property taxed by any city for the support of any free public library. When the tax 312.14levy authorized in this section is collected, it shall be appropriated and credited to a debt 312.15service fund for the bonds. The tax levy for the debt service fund under section 475.61 312.16shall be reduced by the amount available or reasonably anticipated to be available in the 312.17fund to make payments otherwise payable from the levy pursuant to section 475.61. 312.18    Sec. 59. Minnesota Statutes 2012, section 383E.23, is amended to read: 312.19383E.23 LIBRARY TAX. 312.20    The Anoka County Board may levy a tax of not more than .01 percent of the taxable 312.21 new text begin estimated new text end market value of taxable property located within the county excluding any 312.22taxable property taxed by any city for the support of any free public library, to acquire, 312.23better, and construct county library buildings and to pay principal and interest on bonds 312.24issued for that purpose. The tax shall be disregarded in the calculation of levies or limits 312.25on levies provided by section 373.40, or other law. 312.26    Sec. 60. Minnesota Statutes 2012, section 385.31, is amended to read: 312.27385.31 PAYMENT OF COUNTY ORDERS OR WARRANTS. 312.28    When any order or warrant drawn on the treasurer is presented for payment, if there 312.29is money in the treasury for that purpose, the county treasurer shall redeem the same, and 312.30write across the entire face thereof the word "redeemed," the date of the redemption, and 312.31the treasurer's official signature. If there is not sufficient funds in the proper accounts to 312.32pay such orders they shall be numbered and registered in their order of presentation, 313.1and proper endorsement thereof shall be made on such orders and they shall be entitled 313.2to payment in like order. Such orders shall bear interest at not to exceed the rate of six 313.3percent per annum from such date of presentment. The treasurer, as soon as there is 313.4sufficient money in the treasury, shall appropriate and set apart a sum sufficient for the 313.5payment of the orders so presented and registered, and, if entitled to interest, issue to the 313.6original holder a notice that interest will cease in 30 days from the date of such notice; and, 313.7if orders thus entitled to priority of payment are not then presented, the next in order of 313.8registry may be paid until such orders are presented. No interest shall be paid on any order, 313.9except upon a warrant drawn by the county auditor for that purpose, giving the number 313.10and the date of the order on account of which the interest warrant is drawn. In any county 313.11in this state now or hereafter having a new text begin an estimated new text end market value of all taxable property, 313.12exclusive of money and credits, of not less than $1,033,000,000, the county treasurer, in 313.13order to save payment of interest on county warrants drawn upon a fund in which there 313.14shall be temporarily insufficient money in the treasury to redeem the same, may borrow 313.15temporarily from any other fund in the county treasury in which there is a sufficient balance 313.16to care for the needs of such fund and allow a temporary loan or transfer to any other fund, 313.17and may pay such warrants out of such funds. Any such money so transferred and used in 313.18redeeming such county warrants shall be returned to the fund from which drawn as soon 313.19as money shall come in to the credit of such fund on which any such warrant was drawn 313.20and paid as aforesaid. Any county operating on a cash basis may use a combined form of 313.21warrant or order and check, which, when signed by the chair of the county board and by 313.22the auditor, is an order or warrant for the payment of the claim, and, when countersigned 313.23by the county treasurer, is a check for the payment of the amount thereof. 313.24    Sec. 61. Minnesota Statutes 2012, section 394.36, subdivision 1, is amended to read: 313.25    Subdivision 1. Continuation of nonconformity; limitations. Except as provided in 313.26subdivision 2, 3, or 4, any nonconformity, including the lawful use or occupation of land 313.27or premises existing at the time of the adoption of an official control under this chapter, 313.28may be continued, although the use or occupation does not conform to the official control. 313.29If the nonconformity or occupancy is discontinued for a period of more than one year, or 313.30any nonconforming building or structure is destroyed by fire or other peril to the extent of 313.3150 percent of its new text begin estimated new text end market value, any subsequent use or occupancy of the land or 313.32premises shall be a conforming use or occupancy. 313.33    Sec. 62. Minnesota Statutes 2012, section 398A.04, subdivision 8, is amended to read: 314.1    Subd. 8. Taxation. Before deciding to exercise the power to tax, the authority shall 314.2give six weeks' published notice in all municipalities in the region. If a number of voters 314.3in the region equal to five percent of those who voted for candidates for governor at the 314.4last gubernatorial election present a petition within nine weeks of the first published notice 314.5to the secretary of state requesting that the matter be submitted to popular vote, it shall be 314.6submitted at the next general election. The question prepared shall be: 314.7    "Shall the regional rail authority have the power to impose a property tax? 314.8 Yes ..... 314.9 No ..... " 314.10    If a majority of those voting on the question approve or if no petition is presented 314.11within the prescribed time the authority may levy a tax at any annual rate not exceeding 314.120.04835 percent of new text begin estimated new text end market value of all taxable property situated within the 314.13municipality or municipalities named in its organization resolution. Its recording officer 314.14shall file, on or before September 15, in the office of the county auditor of each county 314.15in which territory under the jurisdiction of the authority is located a certified copy of the 314.16board of commissioners' resolution levying the tax, and each county auditor shall assess 314.17and extend upon the tax rolls of each municipality named in the organization resolution the 314.18portion of the tax that bears the same ratio to the whole amount that the net tax capacity of 314.19taxable property in that municipality bears to the net tax capacity of taxable property in 314.20all municipalities named in the organization resolution. Collections of the tax shall be 314.21remitted by each county treasurer to the treasurer of the authority. For taxes levied in 1991, 314.22the amount levied for light rail transit purposes under this subdivision shall not exceed 75 314.23percent of the amount levied in 1990 for light rail transit purposes under this subdivision. 314.24    Sec. 63. Minnesota Statutes 2012, section 401.05, subdivision 3, is amended to read: 314.25    Subd. 3. Leasing. (a) A county or joint powers board of a group of counties 314.26which acquires or constructs and equips or improves facilities under this chapter may, 314.27with the approval of the board of county commissioners of each county, enter into a 314.28lease agreement with a city situated within any of the counties, or a county housing and 314.29redevelopment authority established under chapter 469 or any special law. Under the lease 314.30agreement, the city or county housing and redevelopment authority shall: 314.31    (1) construct or acquire and equip or improve a facility in accordance with plans 314.32prepared by or at the request of a county or joint powers board of the group of counties 314.33and approved by the commissioner of corrections; and 314.34    (2) finance the facility by the issuance of revenue bonds. 315.1    (b) The county or joint powers board of a group of counties may lease the facility 315.2site, improvements, and equipment for a term upon rental sufficient to produce revenue 315.3for the prompt payment of the revenue bonds and all interest accruing on them. Upon 315.4completion of payment, the lessee shall acquire title. The real and personal property 315.5acquired for the facility constitutes a project and the lease agreement constitutes a revenue 315.6agreement as provided in sections 469.152 to 469.165. All proceedings by the city or 315.7county housing and redevelopment authority and the county or joint powers board shall be 315.8as provided in sections 469.152 to 469.165, with the following adjustments: 315.9    (1) no tax may be imposed upon the property; 315.10    (2) the approval of the project by the commissioner of employment and economic 315.11development is not required; 315.12    (3) the Department of Corrections shall be furnished and shall record information 315.13concerning each project as it may prescribe, in lieu of reports required on other projects to 315.14the commissioner of employment and economic development; 315.15    (4) the rentals required to be paid under the lease agreement shall not exceed in any 315.16year one-tenth of one percent of the new text begin estimated new text end market value of property within the county 315.17or group of counties as last equalized before the execution of the lease agreement; 315.18    (5) the county or group of counties shall provide for payment of all rentals due 315.19during the term of the lease agreement in the manner required in subdivision 4; 315.20    (6) no mortgage on the facilities shall be granted for the security of the bonds, but 315.21compliance with clause (5) may be enforced as a nondiscretionary duty of the county 315.22or group of counties; and 315.23    (7) the county or the joint powers board of the group of counties may sublease any 315.24part of the facilities for purposes consistent with their maintenance and operation. 315.25    Sec. 64. Minnesota Statutes 2012, section 410.32, is amended to read: 315.26410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT. 315.27    (a) Notwithstanding any contrary provision of other law or charter, a home rule 315.28charter city may, by resolution and without public referendum, issue capital notes subject 315.29to the city debt limit to purchase capital equipment. 315.30    (b) For purposes of this section, "capital equipment" means: 315.31    (1) public safety equipment, ambulance and other medical equipment, road 315.32construction and maintenance equipment, and other capital equipment; and 315.33    (2) computer hardware and software, whether bundled with machinery or equipment 315.34or unbundled. 316.1    (c) The equipment or software must have an expected useful life at least as long 316.2as the term of the notes. 316.3    (d) The notes shall be payable in not more than ten years and be issued on terms 316.4and in the manner the city determines. The total principal amount of the capital notes 316.5issued in a fiscal year shall not exceed 0.03 percent of the new text begin estimated new text end market value of 316.6taxable property in the city for that year. 316.7    (e) A tax levy shall be made for the payment of the principal and interest on the 316.8notes, in accordance with section 475.61, as in the case of bonds. 316.9    (f) Notes issued under this section shall require an affirmative vote of two-thirds of 316.10the governing body of the city. 316.11    (g) Notwithstanding a contrary provision of other law or charter, a home rule charter 316.12city may also issue capital notes subject to its debt limit in the manner and subject to the 316.13limitations applicable to statutory cities pursuant to section 412.301. 316.14    Sec. 65. Minnesota Statutes 2012, section 412.221, subdivision 2, is amended to read: 316.15    Subd. 2. Contracts. The council shall have power to make such contracts as may 316.16be deemed necessary or desirable to make effective any power possessed by the council. 316.17The city may purchase personal property through a conditional sales contract and real 316.18property through a contract for deed under which contracts the seller is confined to the 316.19remedy of recovery of the property in case of nonpayment of all or part of the purchase 316.20price, which shall be payable over a period of not to exceed five years. When the contract 316.21price of property to be purchased by contract for deed or conditional sales contract 316.22exceeds 0.24177 percent of the new text begin estimated new text end market value of the city, the city may not enter 316.23into such a contract for at least ten days after publication in the official newspaper of a 316.24council resolution determining to purchase property by such a contract; and, if before the 316.25end of that time a petition asking for an election on the proposition signed by voters equal 316.26to ten percent of the number of voters at the last regular city election is filed with the clerk, 316.27the city may not enter into such a contract until the proposition has been approved by a 316.28majority of the votes cast on the question at a regular or special election. 316.29    Sec. 66. Minnesota Statutes 2012, section 412.301, is amended to read: 316.30412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT. 316.31    (a) The council may issue certificates of indebtedness or capital notes subject to the 316.32city debt limits to purchase capital equipment. 316.33    (b) For purposes of this section, "capital equipment" means: 317.1    (1) public safety equipment, ambulance and other medical equipment, road 317.2construction and maintenance equipment, and other capital equipment; and 317.3    (2) computer hardware and software, whether bundled with machinery or equipment 317.4or unbundled. 317.5    (c) The equipment or software must have an expected useful life at least as long as 317.6the terms of the certificates or notes. 317.7    (d) Such certificates or notes shall be payable in not more than ten years and shall be 317.8issued on such terms and in such manner as the council may determine. 317.9    (e) If the amount of the certificates or notes to be issued to finance any such purchase 317.10exceeds 0.25 percent of the new text begin estimated new text end market value of taxable property in the city, they 317.11shall not be issued for at least ten days after publication in the official newspaper of 317.12a council resolution determining to issue them; and if before the end of that time, a 317.13petition asking for an election on the proposition signed by voters equal to ten percent 317.14of the number of voters at the last regular municipal election is filed with the clerk, such 317.15certificates or notes shall not be issued until the proposition of their issuance has been 317.16approved by a majority of the votes cast on the question at a regular or special election. 317.17    (f) A tax levy shall be made for the payment of the principal and interest on such 317.18certificates or notes, in accordance with section 475.61, as in the case of bonds. 317.19    Sec. 67. Minnesota Statutes 2012, section 428A.02, subdivision 1, is amended to read: 317.20    Subdivision 1. Ordinance. The governing body of a city may adopt an ordinance 317.21establishing a special service district. Only property that is classified under section 273.13 317.22and used for commercial, industrial, or public utility purposes, or is vacant land zoned or 317.23designated on a land use plan for commercial or industrial use and located in the special 317.24service district, may be subject to the charges imposed by the city on the special service 317.25district. Other types of property may be included within the boundaries of the special 317.26service district but are not subject to the levies or charges imposed by the city on the 317.27special service district. If 50 percent or more of the new text begin estimated new text end market value of a parcel of 317.28property is classified under section 273.13 as commercial, industrial, or vacant land zoned 317.29or designated on a land use plan for commercial or industrial use, or public utility for the 317.30current assessment year, then the entire new text begin taxable new text end market value of the property is subject to a 317.31service charge based on net tax capacity for purposes of sections 428A.01 to 428A.10. 317.32The ordinance shall describe with particularity the area within the city to be included in 317.33the district and the special services to be furnished in the district. The ordinance may not 317.34be adopted until after a public hearing has been held on the question. Notice of the hearing 317.35shall include the time and place of hearing, a map showing the boundaries of the proposed 318.1district, and a statement that all persons owning property in the proposed district that 318.2would be subject to a service charge will be given opportunity to be heard at the hearing. 318.3Within 30 days after adoption of the ordinance under this subdivision, the governing body 318.4shall send a copy of the ordinance to the commissioner of revenue. 318.5    Sec. 68. Minnesota Statutes 2012, section 430.102, subdivision 2, is amended to read: 318.6    Subd. 2. Council approval; special tax levy limitation. The council shall receive 318.7and consider the estimate required in subdivision 1 and the items of cost after notice and 318.8hearing before it or its appropriate committee as it considers necessary or expedient, and 318.9shall approve the estimate, with necessary amendments. The amounts of each item of cost 318.10estimated are then appropriated to operate, maintain, and improve the pedestrian mall 318.11during the next fiscal year. The amount of the special tax to be charged under subdivision 318.121, clause (3), must not, however, exceed 0.12089 percent of new text begin estimated new text end market value of 318.13taxable property in the district. The council shall make any necessary adjustment in costs of 318.14operating and maintaining the district to keep the amount of the tax within this limitation. 318.15    Sec. 69. Minnesota Statutes 2012, section 447.10, is amended to read: 318.16447.10 TAX LEVY FOR OPERATING AND MAINTAINING HOSPITAL. 318.17    The governing body of a city of the first class owning a hospital may annually levy 318.18a tax to operate and maintain the hospital. The tax must not exceed 0.00806 percent of 318.19taxable new text begin estimated new text end market value. 318.20    Sec. 70. Minnesota Statutes 2012, section 450.19, is amended to read: 318.21450.19 TOURIST CAMPING GROUNDS. 318.22    A home rule charter or statutory city or town may establish and maintain public 318.23tourist camping grounds. The governing body thereof may acquire by lease, purchase, or 318.24gift, suitable lands located either within or without the corporate limits for use as public 318.25tourist camping grounds and provide for the equipment, operation, and maintenance 318.26of the same. The amount that may be expended for the maintenance, improvement, or 318.27operation of tourist camping grounds shall not exceed, in any year, a sum equal to 0.00806 318.28percent of taxable new text begin estimated new text end market value. 318.29    Sec. 71. Minnesota Statutes 2012, section 450.25, is amended to read: 318.30450.25 MUSEUM, GALLERY, OR SCHOOL OF ARTS OR CRAFTS; TAX 318.31LEVY. 319.1    After the acquisition of any museum, gallery, or school of arts or crafts, the board 319.2of park commissioners of the city in which it is located shall cause to be included in the 319.3annual tax levy upon all the taxable property of the county in which the museum, gallery, 319.4or school of arts or crafts is located, a tax of 0.00846 percent of new text begin estimated new text end market value. 319.5The board shall certify the levy to the county auditor and it shall be added to, and collected 319.6with and as part of, the general, real, and personal property taxes, with like penalties and 319.7interest, in case of nonpayment and default, and all provisions of law in respect to the 319.8levy, collection, and enforcement of other taxes shall, so far as applicable, be followed in 319.9respect of these taxes. All of these taxes, penalties, and interest, when collected, shall be 319.10paid to the city treasurer of the city in which is located the museum, gallery, or school 319.11of arts or crafts and credited to a fund to be known as the park museum fund, and shall 319.12be used only for the purposes specified in sections 450.23 to 450.25. Any part of the 319.13proceeds of the levy not expended for the purposes specified in section 450.24 may be 319.14used for the erection of new buildings for the same purposes. 319.15    Sec. 72. Minnesota Statutes 2012, section 458A.10, is amended to read: 319.16458A.10 PROPERTY TAX. 319.17    The commission shall annually levy a tax not to exceed 0.12089 percent of new text begin estimated new text end 319.18market value on all the taxable property in the transit area at a rate sufficient to produce 319.19an amount necessary for the purposes of sections 458A.01 to 458A.15, other than the 319.20payment of principal and interest due on any revenue bonds issued pursuant to section 319.21458A.05 . Property taxes levied under this section shall be certified by the commission to 319.22the county auditors of the transit area, extended, assessed, and collected in the manner 319.23provided by law for the property taxes levied by the governing bodies of cities. The 319.24proceeds of the taxes levied under this section shall be remitted by the respective county 319.25treasurers to the treasurer of the commission, who shall credit the same to the funds of 319.26the commission for use for the purposes of sections 458A.01 to 458A.15 subject to any 319.27applicable pledges or limitations on account of tax anticipation certificates or other 319.28specific purposes. At any time after making a tax levy under this section and certifying 319.29it to the county auditors, the commission may issue general obligation certificates of 319.30indebtedness in anticipation of the collection of the taxes as provided by section 412.261. 319.31    Sec. 73. Minnesota Statutes 2012, section 458A.31, subdivision 1, is amended to read: 319.32    Subdivision 1. Levy limit. Notwithstanding anything to the contrary contained in 319.33the charter of the city of Duluth, any ordinance thereof, or any statute applicable thereto, 319.34limiting the amount levied in any one year for general or special purposes, the city council 320.1of the city of Duluth shall each year levy a tax in an amount not to exceed 0.07253 320.2percent of taxable new text begin estimated new text end market value, by ordinance. An ordinance fixing the levy 320.3shall take effect immediately upon its passage and approval. The proceeds of the levy 320.4shall be paid into the city treasury and deposited in the operating fund provided for in 320.5section 458A.24, subdivision 3. 320.6    Sec. 74. Minnesota Statutes 2012, section 465.04, is amended to read: 320.7465.04 ACCEPTANCE OF GIFTS. 320.8    Cities of the second, third, or fourth class, having at any time a new text begin an estimated new text end 320.9 market value of not more than $41,000,000, exclusive of money and credits, as officially 320.10equalized by the commissioner of revenue, either under home rule charter or under the 320.11laws of this state, in addition to all other powers possessed by them, hereby are authorized 320.12and empowered to receive and accept gifts and donations for the use and benefit of 320.13such cities and the inhabitants thereof upon terms and conditions to be approved by the 320.14governing bodies of such cities; and such cities are authorized to comply with and perform 320.15such terms and conditions, which may include payment to the donor or donors of interest 320.16on the value of the gift at not exceeding five percent per annum payable annually or 320.17semiannually, during the remainder of the natural life or lives of such donor or donors. 320.18    Sec. 75. Minnesota Statutes 2012, section 469.033, subdivision 6, is amended to read: 320.19    Subd. 6. Operation area as taxing district, special tax. All of the territory included 320.20within the area of operation of any authority shall constitute a taxing district for the 320.21purpose of levying and collecting special benefit taxes as provided in this subdivision. All 320.22of the taxable property, both real and personal, within that taxing district shall be deemed 320.23to be benefited by projects to the extent of the special taxes levied under this subdivision. 320.24Subject to the consent by resolution of the governing body of the city in and for which 320.25it was created, an authority may levy a tax upon all taxable property within that taxing 320.26district. The tax shall be extended, spread, and included with and as a part of the general 320.27taxes for state, county, and municipal purposes by the county auditor, to be collected and 320.28enforced therewith, together with the penalty, interest, and costs. As the tax, including any 320.29penalties, interest, and costs, is collected by the county treasurer it shall be accumulated 320.30and kept in a separate fund to be known as the "housing and redevelopment project fund." 320.31The money in the fund shall be turned over to the authority at the same time and in the same 320.32manner that the tax collections for the city are turned over to the city, and shall be expended 320.33only for the purposes of sections 469.001 to 469.047. It shall be paid out upon vouchers 320.34signed by the chair of the authority or an authorized representative. The amount of the 321.1levy shall be an amount approved by the governing body of the city, but shall not exceed 321.20.0185 percent of taxable new text begin estimated new text end market value. The authority shall each year formulate 321.3and file a budget in accordance with the budget procedure of the city in the same manner as 321.4required of executive departments of the city or, if no budgets are required to be filed, by 321.5August 1. The amount of the tax levy for the following year shall be based on that budget. 321.6    Sec. 76. Minnesota Statutes 2012, section 469.034, subdivision 2, is amended to read: 321.7    Subd. 2. General obligation revenue bonds. (a) An authority may pledge the 321.8general obligation of the general jurisdiction governmental unit as additional security for 321.9bonds payable from income or revenues of the project or the authority. The authority 321.10must find that the pledged revenues will equal or exceed 110 percent of the principal and 321.11interest due on the bonds for each year. The proceeds of the bonds must be used for a 321.12qualified housing development project or projects. The obligations must be issued and 321.13sold in the manner and following the procedures provided by chapter 475, except the 321.14obligations are not subject to approval by the electors, and the maturities may extend to 321.15not more than 35 years for obligations sold to finance housing for the elderly and 40 years 321.16for other obligations issued under this subdivision. The authority is the municipality for 321.17purposes of chapter 475. 321.18    (b) The principal amount of the issue must be approved by the governing body of 321.19the general jurisdiction governmental unit whose general obligation is pledged. Public 321.20hearings must be held on issuance of the obligations by both the authority and the general 321.21jurisdiction governmental unit. The hearings must be held at least 15 days, but not more 321.22than 120 days, before the sale of the obligations. 321.23    (c) The maximum amount of general obligation bonds that may be issued and 321.24outstanding under this section equals the greater of (1) one-half of one percent of the 321.25taxable new text begin estimated new text end market value of the general jurisdiction governmental unit whose 321.26general obligation is pledged, or (2) $3,000,000. In the case of county or multicounty 321.27general obligation bonds, the outstanding general obligation bonds of all cities in the 321.28county or counties issued under this subdivision must be added in calculating the limit 321.29under clause (1). 321.30    (d) "General jurisdiction governmental unit" means the city in which the housing 321.31development project is located. In the case of a county or multicounty authority, the 321.32county or counties may act as the general jurisdiction governmental unit. In the case of 321.33a multicounty authority, the pledge of the general obligation is a pledge of a tax on the 321.34taxable property in each of the counties. 322.1    (e) "Qualified housing development project" means a housing development project 322.2providing housing either for the elderly or for individuals and families with incomes not 322.3greater than 80 percent of the median family income as estimated by the United States 322.4Department of Housing and Urban Development for the standard metropolitan statistical 322.5area or the nonmetropolitan county in which the project is located. The project must be 322.6owned for the term of the bonds either by the authority or by a limited partnership or other 322.7entity in which the authority or another entity under the sole control of the authority is 322.8the sole general partner and the partnership or other entity must receive (1) an allocation 322.9from the Department of Management and Budget or an entitlement issuer of tax-exempt 322.10bonding authority for the project and a preliminary determination by the Minnesota 322.11Housing Finance Agency or the applicable suballocator of tax credits that the project 322.12will qualify for four percent low-income housing tax credits or (2) a reservation of nine 322.13percent low-income housing tax credits from the Minnesota Housing Finance Agency or a 322.14suballocator of tax credits for the project. A qualified housing development project may 322.15admit nonelderly individuals and families with higher incomes if: 322.16    (1) three years have passed since initial occupancy; 322.17    (2) the authority finds the project is experiencing unanticipated vacancies resulting in 322.18insufficient revenues, because of changes in population or other unforeseen circumstances 322.19that occurred after the initial finding of adequate revenues; and 322.20    (3) the authority finds a tax levy or payment from general assets of the general 322.21jurisdiction governmental unit will be necessary to pay debt service on the bonds if higher 322.22income individuals or families are not admitted. 322.23    (f) The authority may issue bonds to refund bonds issued under this subdivision in 322.24accordance with section 475.67. The finding of the adequacy of pledged revenues required 322.25by paragraph (a) and the public hearing required by paragraph (b) shall not apply to the 322.26issuance of refunding bonds. This paragraph applies to refunding bonds issued on and 322.27after July 1, 1992. 322.28    Sec. 77. Minnesota Statutes 2012, section 469.053, subdivision 4, is amended to read: 322.29    Subd. 4. Mandatory city levy. A city shall, at the request of the port authority, levy 322.30a tax in any year for the benefit of the port authority. The tax must not exceed 0.01813 322.31percent of taxable new text begin estimated new text end market value. The amount levied must be paid by the city 322.32treasurer to the treasurer of the port authority, to be spent by the authority. 322.33    Sec. 78. Minnesota Statutes 2012, section 469.053, subdivision 4a, is amended to read: 323.1    Subd. 4a. Seaway port authority levy. A levy made under this subdivision shall 323.2replace the mandatory city levy under subdivision 4. A seaway port authority is a special 323.3taxing district under section 275.066 and may levy a tax in any year for the benefit of the 323.4seaway port authority. The tax must not exceed 0.01813 percent of taxable new text begin estimated new text end 323.5 market value. The county auditor shall distribute the proceeds of the property tax levy to 323.6the seaway port authority. 323.7    Sec. 79. Minnesota Statutes 2012, section 469.053, subdivision 6, is amended to read: 323.8    Subd. 6. Discretionary city levy. Upon request of a port authority, the port 323.9authority's city may levy a tax to be spent by and for its port authority. The tax must 323.10enable the port authority to carry out efficiently and in the public interest sections 469.048 323.11to 469.068 to create and develop industrial development districts. The levy must not be 323.12more than 0.00282 percent of taxable new text begin estimated new text end market value. The county treasurer shall 323.13pay the proceeds of the tax to the port authority treasurer. The money may be spent by 323.14the authority in performance of its duties to create and develop industrial development 323.15districts. In spending the money the authority must judge what best serves the public 323.16interest. The levy in this subdivision is in addition to the levy in subdivision 4. 323.17    Sec. 80. Minnesota Statutes 2012, section 469.107, subdivision 1, is amended to read: 323.18    Subdivision 1. City tax levy. A city may, at the request of the authority, levy a tax in 323.19any year for the benefit of the authority. The tax must be not more than 0.01813 percent of 323.20taxable new text begin estimated new text end market value. The amount levied must be paid by the city treasurer to 323.21the treasurer of the authority, to be spent by the authority. 323.22    Sec. 81. Minnesota Statutes 2012, section 469.180, subdivision 2, is amended to read: 323.23    Subd. 2. Tax levies. Notwithstanding any law, the county board of any county may 323.24appropriate from the general revenue fund a sum not to exceed a county levy of 0.00080 323.25percent of taxable new text begin estimated new text end market value to carry out the purposes of this section. 323.26    Sec. 82. Minnesota Statutes 2012, section 469.187, is amended to read: 323.27469.187 FIRST CLASS CITY SPENDING FOR PUBLICITY; PUBLICITY 323.28BOARD. 323.29    Any city of the first class may expend money for city publicity purposes. The city may 323.30levy a tax, not exceeding 0.00080 percent of taxable new text begin estimated new text end market value. The proceeds 323.31of the levy shall be expended in the manner and for the city publicity purposes the council 324.1directs. The council may establish and provide for a publicity board or bureau to administer 324.2the fund, subject to the conditions and limitations the council prescribes by ordinance. 324.3    Sec. 83. Minnesota Statutes 2012, section 469.206, is amended to read: 324.4469.206 HAZARDOUS PROPERTY PENALTY. 324.5    A city may assess a penalty up to one percent of the new text begin estimated new text end market value of 324.6real property, including any building located within the city that the city determines to 324.7be hazardous as defined in section 463.15, subdivision 3. The city shall send a written 324.8notice to the address to which the property tax statement is sent at least 90 days before it 324.9may assess the penalty. If the owner of the property has not paid the penalty or fixed the 324.10property within 90 days after receiving notice of the penalty, the penalty is considered 324.11delinquent and is increased by 25 percent each 60 days the penalty is not paid and the 324.12property remains hazardous. For the purposes of this section, a penalty that is delinquent 324.13is considered a delinquent property tax and subject to chapters 279, 280, and 281, in the 324.14same manner as delinquent property taxes. 324.15    Sec. 84. Minnesota Statutes 2012, section 471.24, is amended to read: 324.16471.24 TOWNS, STATUTORY CITIES; JOINT MAINTENANCE OF 324.17CEMETERY. 324.18    Where a statutory city or town owns and maintains an established cemetery or burial 324.19ground, either within or without the municipal limits, the statutory city or town may, by 324.20mutual agreement with contiguous statutory cities and towns, each having a new text begin an estimated new text end 324.21 market value of not less than $2,000,000, join together in the maintenance of such public 324.22cemetery or burial ground for the use of the inhabitants of each of such municipalities; and 324.23each such municipality is hereby authorized, by action of its council or governing body, 324.24to levy a tax or make an appropriation for the annual support and maintenance of such 324.25cemetery or burial ground; provided, the amount thus appropriated by each municipality 324.26shall not exceed a total of $10,000 in any one year. 324.27    Sec. 85. Minnesota Statutes 2012, section 471.571, subdivision 1, is amended to read: 324.28    Subdivision 1. Application. This section applies to each city in which the net tax 324.29capacity of real and personal property consists in part of iron ore or lands containing 324.30taconite or semitaconite and in which the total taxable new text begin estimated new text end market value of real 324.31and personal property exceeds $2,500,000. 324.32    Sec. 86. Minnesota Statutes 2012, section 471.571, subdivision 2, is amended to read: 325.1    Subd. 2. Creation of fund, tax levy. The governing body of the city may create a 325.2permanent improvement and replacement fund to be maintained by an annual tax levy. 325.3The governing body may levy a tax in excess of any charter limitation for the support of 325.4the permanent improvement and replacement fund, but not exceeding the following: 325.5    (a) in cities having a population of not more than 500 inhabitants, the lesser of $20 325.6per capita or 0.08059 percent of taxable new text begin estimated new text end market value; 325.7    (b) in cities having a population of more than 500 and less than 2500 new text begin 2,500 new text end , the 325.8greater of $12.50 per capita or $10,000 but not exceeding 0.08059 percent of taxable 325.9 new text begin estimated new text end market value; 325.10    (c) in cities having a population of more than 2500 new text begin 2,500 or more new text end inhabitants, 325.11the greater of $10 per capita or $31,500 but not exceeding 0.08059 percent of taxable 325.12 new text begin estimated new text end market value. 325.13    Sec. 87. Minnesota Statutes 2012, section 471.73, is amended to read: 325.14471.73 ACCEPTANCE OF PROVISIONS. 325.15    In the case of any city within the class specified in new text begin section new text end 471.72 having a new text begin an new text end 325.16 new text begin estimated new text end market value, as defined in section , in excess of $37,000,000; and in the 325.17case of any statutory city within such class having a new text begin an estimated new text end market value, as defined 325.18in section , of less than $5,000,000; and in the case of any statutory city within such 325.19class which is governed by Laws 1933, chapter 211, or Laws 1937, chapter 356; and in 325.20the case of any statutory city within such class which is governed by Laws 1929, chapter 325.21208, and has a new text begin an estimated new text end market value of less than $83,000,000; and in the case of 325.22any school district within such class having a new text begin an estimated new text end market value, as defined in 325.23section , of more than $54,000,000; and in the case of all towns within said class; 325.24sections 471.71 to 471.83 apply only if the governing body of the city or statutory city, the 325.25board of the school district, or the town board of the town shall have adopted a resolution 325.26determining to issue bonds under the provisions of sections 471.71 to 471.83 or to go 325.27upon a cash basis in accordance with the provisions thereof. 325.28    Sec. 88. Minnesota Statutes 2012, section 473.325, subdivision 2, is amended to read: 325.29    Subd. 2. Chapter 475 applies; exceptions. The Metropolitan Council shall sell and 325.30issue the bonds in the manner provided in chapter 475, and shall have the same powers 325.31and duties as a municipality issuing bonds under that law, except that the approval of a 325.32majority of the electors shall not be required and the net debt limitations shall not apply. 325.33The terms of each series of bonds shall be fixed so that the amount of principal and interest 325.34on all outstanding and undischarged bonds, together with the bonds proposed to be issued, 326.1due in any year shall not exceed 0.01209 percent of new text begin estimated new text end market value of all taxable 326.2property in the metropolitan area as last finally equalized prior to a proposed issue. The 326.3bonds shall be secured in accordance with section 475.61, subdivision 1, and any taxes 326.4required for their payment shall be levied by the council, shall not affect the amount or rate 326.5of taxes which may be levied by the council for other purposes, shall be spread against all 326.6taxable property in the metropolitan area and shall not be subject to limitation as to rate or 326.7amount. Any taxes certified by the council to the county auditors for collection shall be 326.8reduced by the amount received by the council from the commissioner of management and 326.9budget or the federal government for the purpose of paying the principal and interest on 326.10bonds to which the levy relates. The council shall certify the fact and amount of all money 326.11so received to the county auditors, and the auditors shall reduce the levies previously made 326.12for the bonds in the manner and to the extent provided in section 475.61, subdivision 3. 326.13    Sec. 89. Minnesota Statutes 2012, section 473.629, is amended to read: 326.14473.629 VALUE OF PROPERTY FOR BOND ISSUES BY SCHOOL 326.15DISTRICTS. 326.16    As to any lands to be detached from any school district under the provisions hereof 326.17 new text begin section 473.625 new text end , notwithstanding such prospective new text begin the new text end detachment, the new text begin estimated market new text end 326.18value of such new text begin the detached new text end lands and the net tax capacity of taxable properties now located 326.19therein or thereon shall be and new text begin on the lands on the date of the detachment new text end constitute 326.20from and after the date of the enactment hereof a part of the new text begin estimated market new text end value of 326.21properties upon the basis of which such new text begin used to calculate the net debt limit of the new text end school 326.22district may issue its bonds, new text begin . new text end The value of such new text begin the new text end lands for such purpose to be new text begin and other new text end 326.23 new text begin taxable properties for purposes of the school district's net debt limit are new text end 33-1/3 percent of 326.24the new text begin estimated new text end market value thereof as determined and certified by said new text begin the new text end assessor to said 326.25 new text begin the new text end school district, and it shall be the duty of such new text begin the new text end assessor annually on or before the 326.26tenth day of October from and after the passage hereof, to so new text begin of each year, shall new text end determine 326.27and certify new text begin that value new text end ; provided, however, that the value of such new text begin the new text end detached lands and 326.28such taxable properties shall never exceed 20 percent of the new text begin estimated market new text end value of 326.29all properties constituting and making up the basis aforesaid new text begin used to calculate the net new text end 326.30 new text begin debt limit of the school district new text end . 326.31    Sec. 90. Minnesota Statutes 2012, section 473.661, subdivision 3, is amended to read: 326.32    Subd. 3. Levy limit. In any budget certified by the commissioners under this section, 326.33the amount included for operation and maintenance shall not exceed an amount which, 326.34when extended against the property taxable therefor under section 473.621, subdivision 5, 327.1will require a levy at a rate of 0.00806 percent of new text begin estimated new text end market value. Taxes levied by 327.2the corporation shall not affect the amount or rate of taxes which may be levied by any other 327.3local government unit within the metropolitan area under the provisions of any charter. 327.4    Sec. 91. Minnesota Statutes 2012, section 473.667, subdivision 9, is amended to read: 327.5    Subd. 9. Additional taxes. Nothing herein shall prevent the commission from 327.6levying a tax not to exceed 0.00121 percent of new text begin estimated new text end market value on taxable property 327.7within its taxing jurisdiction, in addition to any levies found necessary for the debt 327.8service fund authorized by section 473.671. Nothing herein shall prevent the levy and 327.9appropriation for purposes of the commission of any other tax on property or on any 327.10income, transaction, or privilege, when and if authorized by law. All collections of any 327.11taxes so levied shall be included in the revenues appropriated for the purposes referred 327.12to in this section, unless otherwise provided in the law authorizing the levies; but no 327.13covenant as to the continuance or as to the rate and amount of any such levy shall be made 327.14with the holders of the commission's bonds unless specifically authorized by law. 327.15    Sec. 92. Minnesota Statutes 2012, section 473.671, is amended to read: 327.16473.671 LIMIT OF TAX LEVY. 327.17    The taxes levied against the property of the metropolitan area in any one year shall 327.18not exceed 0.00806 percent of taxable new text begin estimated new text end market value, exclusive of taxes levied 327.19to pay the principal or interest on any bonds or indebtedness of the city issued under 327.20Laws 1943, chapter 500, and exclusive of any taxes levied to pay the share of the city for 327.21payments on bonded indebtedness of the corporation provided for in Laws 1943, chapter 327.22500. The levy of taxes authorized in Laws 1943, chapter 500, shall be in addition to the 327.23maximum rate allowed to be levied to defray the cost of government under the provisions 327.24of the charter of any city affected by Laws 1943, chapter 500. 327.25    Sec. 93. Minnesota Statutes 2012, section 473.711, subdivision 2a, is amended to read: 327.26    Subd. 2a. Tax levy. (a) The commission may levy a tax on all taxable property in the 327.27district as defined in section 473.702 to provide funds for the purposes of sections 473.701 327.28to 473.716. The tax shall not exceed the property tax levy limitation determined in this 327.29subdivision. A participating county may agree to levy an additional tax to be used by the 327.30commission for the purposes of sections 473.701 to 473.716 but the sum of the county's and 327.31commission's taxes may not exceed the county's proportionate share of the property tax levy 327.32limitation determined under this subdivision based on the ratio of its total net tax capacity 327.33to the total net tax capacity of the entire district as adjusted by section 270.12, subdivision 328.13 . The auditor of each county in the district shall add the amount of the levy made by the 328.2district to other taxes of the county for collection by the county treasurer with other taxes. 328.3When collected, the county treasurer shall make settlement of the tax with the district in 328.4the same manner as other taxes are distributed to political subdivisions. No county shall 328.5levy any tax for mosquito, disease vectoring tick, and black gnat (Simuliidae) control 328.6except under this section. The levy shall be in addition to other taxes authorized by law. 328.7    (b) The property tax levied by the Metropolitan Mosquito Control Commission shall 328.8not exceed the product of (i) the commission's property tax levy limitation for the previous 328.9year determined under this subdivision multiplied by (ii) an index for market valuation 328.10changes equal to the total new text begin estimated new text end market valuation new text begin value new text end of all taxable property for the 328.11current tax payable year located within the district plus any area that has been added to the 328.12district since the previous year, divided by the total new text begin estimated new text end market valuation new text begin value new text end of all 328.13taxable property located within the district for the previous taxes payable year. 328.14    (c) For the purpose of determining the commission's property tax levy limitation 328.15under this subdivision, "total market valuation" means the total market valuation of all 328.16taxable property within the district without valuation adjustments for fiscal disparities 328.17(chapter 473F), tax increment financing (sections to 469.179), and high voltage 328.18transmission lines (section 273.425). 328.19    Sec. 94. Minnesota Statutes 2012, section 473F.02, subdivision 12, is amended to read: 328.20    Subd. 12. new text begin Adjusted new text end market value. " new text begin Adjusted new text end market value" of real and personal 328.21property within a municipality means the assessor's estimated new text begin taxable new text end market value new text begin , new text end 328.22 new text begin as defined in section 272.03, new text end of all real and personal property, including the value of 328.23manufactured housing, within the municipality new text begin , adjusted for sales ratios in a manner new text end 328.24 new text begin similar to the adjustments made to city and town net tax capacities new text end . For purposes 328.25of sections to , the commissioner of revenue shall annually make 328.26determinations and reports with respect to each municipality which are comparable to 328.27those it makes for school districts under section 127A.48, subdivisions 1 to 6, in the same 328.28manner and at the same times as are prescribed by the subdivisions. The commissioner 328.29of revenue shall annually determine, for each municipality, information comparable to 328.30that required by section 475.53, subdivision 4, for school districts, as soon as practicable 328.31after it becomes available. The commissioner of revenue shall then compute the equalized 328.32market value of property within each municipality using the aggregate sales ratios from 328.33the Department of Revenue's sales ratio study. 328.34    Sec. 95. Minnesota Statutes 2012, section 473F.02, subdivision 14, is amended to read: 329.1    Subd. 14. Fiscal capacity. "Fiscal capacity" of a municipality means its valuation 329.2 new text begin adjusted market value new text end , determined as of January 2 of any year, divided by its population, 329.3determined as of a date in the same year. 329.4    Sec. 96. Minnesota Statutes 2012, section 473F.02, subdivision 15, is amended to read: 329.5    Subd. 15. Average fiscal capacity. "Average fiscal capacity" of municipalities 329.6means the sum of the valuations new text begin adjusted market values new text end of all municipalities, determined 329.7as of January 2 of any year, divided by the sum of their populations, determined as of 329.8a date in the same year. 329.9    Sec. 97. Minnesota Statutes 2012, section 473F.02, subdivision 23, is amended to read: 329.10    Subd. 23. Net tax capacity. "Net tax capacity" means the new text begin taxable new text end market value of 329.11real and personal property multiplied by its net tax capacity rates in section 273.13. 329.12    Sec. 98. Minnesota Statutes 2012, section 473F.08, subdivision 10, is amended to read: 329.13    Subd. 10. Adjustment of value or net tax capacity. For the purpose of computing 329.14the amount or rate of any salary, aid, tax, or debt authorized, required, or limited by any 329.15provision of any law or charter, where such authorization, requirement, or limitation 329.16is related in any manner to any value or valuation of taxable property within any 329.17governmental unit, such value or net tax capacity new text begin fiscal capacity under section 473F.02, new text end 329.18 new text begin subdivision 14, a municipality's taxable market value new text end shall be adjusted to reflect the 329.19adjustments new text begin reductions new text end to net tax capacity effected by subdivision 2, new text begin clause (a), new text end provided 329.20that: (1) in determining the new text begin taxable new text end market value of commercial-industrial property 329.21or any class thereof within a governmental unit for any purpose other than section 329.22 new text begin municipality new text end , (a) the reduction required by this subdivision shall be that amount 329.23which bears the same proportion to the amount subtracted from the governmental unit's 329.24 new text begin municipality's new text end net tax capacity pursuant to subdivision 2, clause (a), as the new text begin taxable new text end 329.25market value of commercial-industrial property, or such class thereof, located within the 329.26governmental unit new text begin municipality new text end bears to the net tax capacity of commercial-industrial 329.27property, or such class thereof, located within the governmental unit, and (b) the increase 329.28required by this subdivision shall be that amount which bears the same proportion to 329.29the amount added to the governmental unit's net tax capacity pursuant to subdivision 2, 329.30clause (b), as the market value of commercial-industrial property, or such class thereof, 329.31located within the governmental unit bears to the net tax capacity of commercial-industrial 329.32property, or such class thereof, located within the governmental unit; and (2) in determining 329.33the market value of real property within a municipality for purposes of section , 330.1the adjustment prescribed by clause (1)(a) hereof shall be made and that prescribed by 330.2clause (1)(b) hereof shall not be made new text begin municipality new text end . new text begin No adjustment shall be made to new text end 330.3 new text begin taxable market value for the increase in net tax capacity under subdivision 2, clause (b). new text end 330.4    Sec. 99. Minnesota Statutes 2012, section 475.521, subdivision 4, is amended to read: 330.5    Subd. 4. Limitations on amount. A municipality may not issue bonds under this 330.6section if the maximum amount of principal and interest to become due in any year on 330.7all the outstanding bonds issued under this section, including the bonds to be issued, 330.8will equal or exceed 0.16 percent of the taxable new text begin estimated new text end market value of property 330.9in the municipality. Calculation of the limit must be made using the taxable new text begin estimated new text end 330.10 market value for the taxes payable year in which the obligations are issued and sold. In 330.11the case of a municipality with a population of 2,500 or more, the bonds are subject to 330.12the net debt limits under section 475.53. In the case of a shared facility in which more 330.13than one municipality participates, upon compliance by each participating municipality 330.14with the requirements of subdivision 2, the limitations in this subdivision and the net debt 330.15represented by the bonds shall be allocated to each participating municipality in proportion 330.16to its required financial contribution to the financing of the shared facility, as set forth in 330.17the joint powers agreement relating to the shared facility. This section does not limit the 330.18authority to issue bonds under any other special or general law. 330.19    Sec. 100. Minnesota Statutes 2012, section 475.53, subdivision 1, is amended to read: 330.20    Subdivision 1. Generally. Except as otherwise provided in sections 475.51 to 330.21475.74 , no municipality, except a school district or a city of the first class, shall incur or be 330.22subject to a net debt in excess of three percent of the new text begin estimated new text end market value of taxable 330.23property in the municipality. 330.24    Sec. 101. Minnesota Statutes 2012, section 475.53, subdivision 3, is amended to read: 330.25    Subd. 3. Cities first class. Unless its charter permits a greater net debt a city of 330.26the first class may not incur a net debt in excess of two percent of the new text begin estimated new text end market 330.27value of all taxable property therein. If the charter of the city permits a net debt of the city 330.28in excess of two percent of its valuation, it may not incur a net debt in excess of 3-2/3 330.29percent of the new text begin estimated new text end market value of the taxable property therein. 330.30    The county auditor, at the time of preparing the tax list of the city, shall compile a 330.31statement setting forth the total net tax capacity and the total new text begin estimated new text end market value of 330.32each class of taxable property in such city for such year. 331.1    Sec. 102. Minnesota Statutes 2012, section 475.53, subdivision 4, is amended to read: 331.2    Subd. 4. School districts. Except as otherwise provided by law, no school district 331.3shall be subject to a net debt in excess of 15 percent of the actual new text begin estimated new text end market value of 331.4all taxable property situated within its corporate limits, as computed in accordance with this 331.5subdivision. The county auditor of each county containing taxable real or personal property 331.6situated within any school district shall certify to the district upon request the new text begin estimated new text end 331.7market value of all such property. Whenever the commissioner of revenue, in accordance 331.8with section 127A.48, subdivisions 1 to 6, has determined that the net tax capacity of any 331.9district furnished by county auditors is not based upon the new text begin adjusted new text end market value of taxable 331.10property in the district new text begin exceeds the estimated market value of property within the district new text end , 331.11the commissioner of revenue shall certify to the district upon request the ratio most recently 331.12ascertained to exist between such new text begin the estimated market new text end value and the actual new text begin adjusted new text end 331.13 market value of property within the district. new text begin , and new text end the actual market value of property 331.14within a district, on which its debt limit under this subdivision is new text begin will be new text end based, is (a) the 331.15value certified by the county auditors, or (b) this new text begin on the estimated market new text end value divided by 331.16the ratio certified by the commissioner of revenue, whichever results in a higher value. 331.17    Sec. 103. Minnesota Statutes 2012, section 475.58, subdivision 2, is amended to read: 331.18    Subd. 2. Funding, refunding. Any county, city, town, or school district whose 331.19outstanding gross debt, including all items referred to in section 475.51, subdivision 331.204 , exceed in amount 1.62 percent of its new text begin estimated new text end market value may issue bonds under 331.21this subdivision for the purpose of funding or refunding such indebtedness or any part 331.22thereof. A list of the items of indebtedness to be funded or refunded shall be made by the 331.23recording officer and treasurer and filed in the office of the recording officer. The initial 331.24resolution of the governing body shall refer to this subdivision as authority for the issue, 331.25state the amount of bonds to be issued and refer to the list of indebtedness to be funded or 331.26refunded. This resolution shall be published once each week for two successive weeks 331.27in a legal newspaper published in the municipality or if there be no such newspaper, in 331.28a legal newspaper published in the county seat. Such bonds may be issued without the 331.29submission of the question of their issue to the electors unless within ten days after the 331.30second publication of the resolution a petition requesting such election signed by ten or 331.31more voters who are taxpayers of the municipality, shall be filed with the recording officer. 331.32In event such petition is filed, no bonds shall be issued hereunder unless authorized by a 331.33majority of the electors voting on the question. 331.34    Sec. 104. Minnesota Statutes 2012, section 475.73, subdivision 1, is amended to read: 332.1    Subdivision 1. May purchase these bonds; conditions. Obligations sold under the 332.2provisions of section 475.60 may be purchased by the State Board of Investment if the 332.3obligations meet the requirements of section 11A.24, subdivision 2, upon the approval of 332.4the attorney general as to form and execution of the application therefor, and under rules 332.5as the board may specify, and the state board shall have authority to purchase the same 332.6to an amount not exceeding 3.63 percent of the new text begin estimated new text end market value of the taxable 332.7property of the municipality, according to the last preceding assessment. The obligations 332.8shall not run for a shorter period than one year, nor for a longer period than 30 years and 332.9shall bear interest at a rate to be fixed by the state board but not less than two percent per 332.10annum. Forthwith upon the delivery to the state of Minnesota of any obligations issued by 332.11virtue thereof, the commissioner of management and budget shall certify to the respective 332.12auditors of the various counties wherein are situated the municipalities issuing the same, 332.13the number, denomination, amount, rate of interest and date of maturity of each obligation. 332.14    Sec. 105. Minnesota Statutes 2012, section 477A.011, subdivision 20, is amended to 332.15read: 332.16    Subd. 20. City net tax capacity. "City net tax capacity" means (1) the net tax 332.17capacity computed using the net tax capacity rates in section for taxes payable 332.18in the year of the aid distribution, and the market values, after the exclusion in section 332.19273.13, subdivision 35, for taxes payable in the year prior to the aid distribution plus (2) 332.20a city's fiscal disparities distribution tax capacity under section 276A.06, subdivision 2, 332.21paragraph (b), or 473F.08, subdivision 2, paragraph (b), for taxes payable in the year prior 332.22to that for which aids are being calculated. The market value utilized in computing city 332.23net tax capacity shall be reduced by the sum of (1) a city's market value of commercial 332.24industrial property as defined in section 276A.01, subdivision 3, or 473F.02, subdivision 3, 332.25multiplied by the ratio determined pursuant to section 276A.06, subdivision 2, paragraph 332.26(a), or 473F.08, subdivision 2, paragraph (a), (2) the market value of the captured value 332.27of tax increment financing districts as defined in section 469.177, subdivision 2, and (3) 332.28the market value of transmission lines deducted from a city's total net tax capacity under 332.29section . The city net tax capacity will be computed using equalized market values 332.30 new text begin the city's adjusted net tax capacity under section 273.1325 new text end . 332.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 332.32    Sec. 106. Minnesota Statutes 2012, section 477A.0124, subdivision 2, is amended to 332.33read: 333.1    Subd. 2. Definitions. (a) For the purposes of this section, the following terms 333.2have the meanings given them. 333.3    (b) "County program aid" means the sum of "county need aid," "county tax base 333.4equalization aid," and "county transition aid." 333.5    (c) "Age-adjusted population" means a county's population multiplied by the county 333.6age index. 333.7    (d) "County age index" means the percentage of the population over age 65 within 333.8the county divided by the percentage of the population over age 65 within the state, except 333.9that the age index for any county may not be greater than 1.8 nor less than 0.8. 333.10    (e) "Population over age 65" means the population over age 65 established as of 333.11July 15 in an aid calculation year by the most recent federal census, by a special census 333.12conducted under contract with the United States Bureau of the Census, by a population 333.13estimate made by the Metropolitan Council, or by a population estimate of the state 333.14demographer made pursuant to section 4A.02, whichever is the most recent as to the stated 333.15date of the count or estimate for the preceding calendar year and which has been certified 333.16to the commissioner of revenue on or before July 15 of the aid calculation year. A revision 333.17to an estimate or count is effective for these purposes only if certified to the commissioner 333.18on or before July 15 of the aid calculation year. Clerical errors in the certification or use of 333.19estimates and counts established as of July 15 in the aid calculation year are subject to 333.20correction within the time periods allowed under section 477A.014. 333.21    (f) "Part I crimes" means the three-year average annual number of Part I crimes 333.22reported for each county by the Department of Public Safety for the most recent years 333.23available. By July 1 of each year, the commissioner of public safety shall certify to the 333.24commissioner of revenue the number of Part I crimes reported for each county for the 333.25three most recent calendar years available. 333.26    (g) "Households receiving food stamps" means the average monthly number of 333.27households receiving food stamps for the three most recent years for which data is 333.28available. By July 1 of each year, the commissioner of human services must certify to the 333.29commissioner of revenue the average monthly number of households in the state and in 333.30each county that receive food stamps, for the three most recent calendar years available. 333.31    (h) "County net tax capacity" means the net tax capacity of the county, computed 333.32analogously to city net tax capacity under section 477A.011, subdivision 20 new text begin county's new text end 333.33 new text begin adjusted net tax capacity under section 273.1325 new text end . 333.34 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 333.35    Sec. 107. Minnesota Statutes 2012, section 641.23, is amended to read: 334.1641.23 FUNDS; HOW PROVIDED. 334.2    Before any contract is made for the erection of a county jail, sheriff's residence, or 334.3both, the county board shall either levy a sufficient tax to provide the necessary funds, or 334.4issue county bonds therefor in accordance with the provisions of chapter 475, provided 334.5that no election is required if the amount of all bonds issued for this purpose and interest 334.6on them which are due and payable in any year does not exceed an amount equal to 334.70.09671 percent of new text begin estimated new text end market value of taxable property within the county, as last 334.8determined before the bonds are issued. 334.9    Sec. 108. Minnesota Statutes 2012, section 641.24, is amended to read: 334.10641.24 LEASING. 334.11    The county may, by resolution of the county board, enter into a lease agreement with 334.12any statutory or home rule charter city situated within the county, or a county housing and 334.13redevelopment authority established pursuant to chapter 469 or any special law whereby 334.14the city or county housing and redevelopment authority will construct a jail or other law 334.15enforcement facilities for the county sheriff, deputy sheriffs, and other employees of the 334.16sheriff and other law enforcement agencies, in accordance with plans prepared by or at 334.17the request of the county board and, when required, approved by the commissioner of 334.18corrections and will finance it by the issuance of revenue bonds, and the county may lease 334.19the site and improvements for a term and upon rentals sufficient to produce revenue for the 334.20prompt payment of the bonds and all interest accruing thereon and, upon completion of 334.21payment, will acquire title thereto. The real and personal property acquired for the jail 334.22shall constitute a project and the lease agreement shall constitute a revenue agreement 334.23as contemplated in chapter 469, and all proceedings shall be taken by the city or county 334.24housing and redevelopment authority and the county in the manner and with the force and 334.25effect provided in chapter 469; provided that: 334.26    (1) no tax shall be imposed upon or in lieu of a tax upon the property; 334.27    (2) the approval of the project by the commissioner of commerce shall not be required; 334.28    (3) the Department of Corrections shall be furnished and shall record such 334.29information concerning each project as it may prescribe; 334.30    (4) the rentals required to be paid under the lease agreement shall not exceed in any 334.31year one-tenth of one percent of the new text begin estimated new text end market value of property within the county, 334.32as last finally equalized before the execution of the agreement; 334.33    (5) the county board shall provide for the payment of all rentals due during the term 334.34of the lease, in the manner required in section 641.264, subdivision 2; 335.1    (6) no mortgage on the property shall be granted for the security of the bonds, but 335.2compliance with clause (5) hereof may be enforced as a nondiscretionary duty of the 335.3county board; and 335.4    (7) the county board may sublease any part of the jail property for purposes consistent 335.5with the maintenance and operation of a county jail or other law enforcement facility. 335.6    Sec. 109. Minnesota Statutes 2012, section 645.44, is amended by adding a subdivision 335.7to read: 335.8     new text begin Subd. 20. new text end new text begin Estimated market value. new text end new text begin When used in determining or calculating a new text end 335.9 new text begin limit on taxation, spending, state aid amounts, or debt, bond, certificate of indebtedness, or new text end 335.10 new text begin capital note issuance by or for a local government unit, "estimated market value" has the new text end 335.11 new text begin meaning given in section 273.032. new text end 335.12    Sec. 110. new text begin REVISOR'S INSTRUCTION. new text end 335.13     new text begin The revisor of statutes shall recodify Minnesota Statutes, section 127A.48, new text end 335.14 new text begin subdivisions 1 to 6, as section 273.1325, subdivisions 1 to 6, and change all new text end 335.15 new text begin cross-references to the affected subdivisions accordingly. new text end 335.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 335.17    Sec. 111. new text begin REPEALER. new text end 335.18 new text begin Minnesota Statutes 2012, sections 276A.01, subdivision 11; 473F.02, subdivision new text end 335.19 new text begin 13; and 477A.011, subdivision 21, new text end new text begin are repealed. new text end 335.20    Sec. 112. new text begin EFFECTIVE DATE. new text end 335.21     new text begin Unless otherwise specifically provided, this article is effective the day following new text end 335.22 new text begin final enactment for purposes of limits on net debt, the issuance of bonds, certificates of new text end 335.23 new text begin indebtedness, and capital notes and is effective beginning for taxes payable in 2014 for new text end 335.24 new text begin all other purposes. new text end 335.25ARTICLE 15 335.26DEPARTMENT POLICY AND TECHNICAL: INCOME AND 335.27FRANCHISE TAXES; ESTATE TAXES 335.28    Section 1. Minnesota Statutes 2012, section 289A.10, is amended by adding a 335.29subdivision to read: 335.30     new text begin Subd. 1a. new text end new text begin Recapture tax return required. new text end new text begin If a disposition or cessation as provided new text end 335.31 new text begin by section 291.03, subdivision 11, paragraph (a), has occurred, the qualified heir, as new text end 336.1 new text begin defined under section 291.03, subdivision 8, paragraph (c), or personal representative of new text end 336.2 new text begin the decedent's estate must submit a recapture tax return to the commissioner. new text end 336.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for estates of decedents dying after new text end 336.4 new text begin June 30, 2011. new text end 336.5    Sec. 2. Minnesota Statutes 2012, section 289A.12, subdivision 14, is amended to read: 336.6    Subd. 14. Regulated investment companies; reporting exempt-interest 336.7dividends. (a) A regulated investment company paying $10 or more in exempt-interest 336.8dividends to an individual who is a resident of Minnesota must make a return indicating 336.9the amount of the exempt-interest dividends, the name, address, and Social Security 336.10number of the recipient, and any other information that the commissioner specifies. The 336.11return must be provided to the shareholder by February 15 of the year following the year 336.12of the payment. The return provided to the shareholder must include a clear statement, 336.13in the form prescribed by the commissioner, that the exempt-interest dividends must be 336.14included in the computation of Minnesota taxable income. By June 1 of each year, the 336.15regulated investment company must file a copy of the return with the commissioner. 336.16    (b) This subdivision applies to regulated investment companies required to register 336.17under chapter 80A. 336.18    (c) new text begin (b) new text end For purposes of this subdivision, the following definitions apply. 336.19    (1) "Exempt-interest dividends" mean exempt-interest dividends as defined in 336.20section 852(b)(5) of the Internal Revenue Code, but does not include the portion of 336.21exempt-interest dividends that are not required to be added to federal taxable income 336.22under section 290.01, subdivision 19a, clause (1)(ii). 336.23    (2) "Regulated investment company" means regulated investment company as 336.24defined in section 851(a) of the Internal Revenue Code or a fund of the regulated 336.25investment company as defined in section 851(g) of the Internal Revenue Code. 336.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 336.27    Sec. 3. Minnesota Statutes 2012, section 289A.12, is amended by adding a subdivision 336.28to read: 336.29     new text begin Subd. 18. new text end new text begin Returns by qualified heirs. new text end new text begin A qualified heir, as defined in section 291.03, new text end 336.30 new text begin subdivision 8, paragraph (c), must file two returns with the commissioner attesting that new text end 336.31 new text begin no disposition or cessation as provided by section 291.03, subdivision 11, paragraph new text end 336.32 new text begin (a), occurred. The first return must be filed no earlier than 24 months and no later than new text end 337.1 new text begin 26 months after the decedent's death. The second return must be filed no earlier than 36 new text end 337.2 new text begin months and no later than 39 months after the decedent's death. new text end 337.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for returns required to be filed after new text end 337.4 new text begin December 31, 2013. new text end 337.5    Sec. 4. Minnesota Statutes 2012, section 289A.18, is amended by adding a subdivision 337.6to read: 337.7     new text begin Subd. 3a. new text end new text begin Recapture tax return. new text end new text begin A recapture tax return must be filed with the new text end 337.8 new text begin commissioner within six months after the date of the disposition or cessation as provided new text end 337.9 new text begin by section 291.03, subdivision 11, paragraph (a). new text end 337.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for estates of decedents dying after new text end 337.11 new text begin June 30, 2011. new text end 337.12    Sec. 5. Minnesota Statutes 2012, section 289A.20, subdivision 3, is amended to read: 337.13    Subd. 3. Estate tax. Taxes imposed by chapter 291 new text begin section 291.03, subdivision 1, new text end 337.14 take effect at and upon the death of the person whose estate is subject to taxation and are 337.15due and payable on or before the expiration of nine months from that death. 337.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for estates of decedents dying after new text end 337.17 new text begin June 30, 2011. new text end 337.18    Sec. 6. Minnesota Statutes 2012, section 289A.20, is amended by adding a subdivision 337.19to read: 337.20     new text begin Subd. 3a. new text end new text begin Recapture tax. new text end new text begin The additional estate tax imposed by section 291.03, new text end 337.21 new text begin subdivision 11, paragraph (b), is due and payable on or before the expiration of the date new text end 337.22 new text begin provided by section 291.03, subdivision 11, paragraph (c). new text end 337.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for estates of decedents dying after new text end 337.24 new text begin June 30, 2011. new text end 337.25    Sec. 7. Minnesota Statutes 2012, section 289A.26, subdivision 3, is amended to read: 337.26    Subd. 3. Short taxable year. (a) new text begin A corporation or new text end an entity with a short taxable year 337.27of less than 12 months, but at least four months, must pay estimated tax in equal installments 337.28on or before the 15th day of the third, sixth, ninth, and final month of the short taxable 337.29year, to the extent applicable based on the number of months in the short taxable year. 338.1(b) new text begin A corporation or new text end an entity is not required to make estimated tax payments for a 338.2short taxable year unless its tax liability before the first day of the last month of the taxable 338.3year can reasonably be expected to exceed $500. 338.4(c) No payment is required for a short taxable year of less than four months. 338.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 338.6    Sec. 8. Minnesota Statutes 2012, section 289A.26, subdivision 4, is amended to read: 338.7    Subd. 4. Underpayment of estimated tax. If there is an underpayment of estimated 338.8tax by a corporation new text begin or an entity new text end , there shall be added to the tax for the taxable year an 338.9amount determined at the rate in section 270C.40 on the amount of the underpayment, 338.10determined under subdivision 5, for the period of the underpayment determined under 338.11subdivision 6. This subdivision does not apply in the first taxable year that a corporation is 338.12subject to the tax imposed under section 290.02 new text begin or an entity is subject to the tax imposed new text end 338.13 new text begin under section 290.05, subdivision 3 new text end . 338.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 338.15    Sec. 9. Minnesota Statutes 2012, section 289A.26, subdivision 7, is amended to read: 338.16    Subd. 7. Required installments. (a) Except as otherwise provided in this 338.17subdivision, the amount of a required installment is 25 percent of the required annual 338.18payment. 338.19(b) Except as otherwise provided in this subdivision, the term "required annual 338.20payment" means the lesser of: 338.21(1) 100 percent of the tax shown on the return for the taxable year, or, if no return is 338.22filed, 100 percent of the tax for that year; or 338.23(2) 100 percent of the tax shown on the return of the new text begin corporation or new text end entity for the 338.24preceding taxable year provided the return was for a full 12-month period, showed a 338.25liability, and was filed by the new text begin corporation or new text end entity. 338.26(c) Except for determining the first required installment for any taxable year, 338.27paragraph (b), clause (2), does not apply in the case of a large corporation. The term 338.28"large corporation" means a corporation or any predecessor corporation that had taxable 338.29net income of $1,000,000 or more for any taxable year during the testing period. The 338.30term "testing period" means the three taxable years immediately preceding the taxable 338.31year involved. A reduction allowed to a large corporation for the first installment that is 338.32allowed by applying paragraph (b), clause (2), must be recaptured by increasing the next 338.33required installment by the amount of the reduction. 339.1(d) In the case of a required installment, if the corporation new text begin or entity new text end establishes that 339.2the annualized income installment is less than the amount determined in paragraph (a), the 339.3amount of the required installment is the annualized income installment and the recapture 339.4of previous quarters' reductions allowed by this paragraph must be recovered by increasing 339.5later required installments to the extent the reductions have not previously been recovered. 339.6(e) The "annualized income installment" is the excess, if any, of: 339.7(1) an amount equal to the applicable percentage of the tax for the taxable year 339.8computed by placing on an annualized basis the taxable income: 339.9(i) for the first two months of the taxable year, in the case of the first required 339.10installment; 339.11(ii) for the first two months or for the first five months of the taxable year, in the 339.12case of the second required installment; 339.13(iii) for the first six months or for the first eight months of the taxable year, in the 339.14case of the third required installment; and 339.15(iv) for the first nine months or for the first 11 months of the taxable year, in the 339.16case of the fourth required installment, over 339.17(2) the aggregate amount of any prior required installments for the taxable year. 339.18(3) For the purpose of this paragraph, the annualized income shall be computed 339.19by placing on an annualized basis the taxable income for the year up to the end of the 339.20month preceding the due date for the quarterly payment multiplied by 12 and dividing 339.21the resulting amount by the number of months in the taxable year (2, 5, 6, 8, 9, or 11 as 339.22the case may be) referred to in clause (1). 339.23(4) The "applicable percentage" used in clause (1) is: 339.24 339.25 339.26 For the following required installments: The applicable percentage is: 339.27 1st 25 339.28 2nd 50 339.29 3rd 75 339.30 4th 100 339.31(f)(1) If this paragraph applies, the amount determined for any installment must 339.32be determined in the following manner: 339.33(i) take the taxable income for the months during the taxable year preceding the 339.34filing month; 339.35(ii) divide that amount by the base period percentage for the months during the 339.36taxable year preceding the filing month; 339.37(iii) determine the tax on the amount determined under item (ii); and 340.1(iv) multiply the tax computed under item (iii) by the base period percentage for the 340.2filing month and the months during the taxable year preceding the filing month. 340.3(2) For purposes of this paragraph: 340.4(i) the "base period percentage" for a period of months is the average percent that the 340.5taxable income for the corresponding months in each of the three preceding taxable years 340.6bears to the taxable income for the three preceding taxable years; 340.7(ii) the term "filing month" means the month in which the installment is required 340.8to be paid; 340.9(iii) this paragraph only applies if the base period percentage for any six consecutive 340.10months of the taxable year equals or exceeds 70 percent; and 340.11(iv) the commissioner may provide by rule for the determination of the base period 340.12percentage in the case of reorganizations, new corporations new text begin or entities new text end , and other similar 340.13circumstances. 340.14(3) In the case of a required installment determined under this paragraph, if the 340.15 new text begin corporation or new text end entity determines that the installment is less than the amount determined in 340.16paragraph (a), the amount of the required installment is the amount determined under this 340.17paragraph and the recapture of previous quarters' reductions allowed by this paragraph 340.18must be recovered by increasing later required installments to the extent the reductions 340.19have not previously been recovered. 340.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 340.21    Sec. 10. Minnesota Statutes 2012, section 289A.26, subdivision 9, is amended to read: 340.22    Subd. 9. Failure to file an estimate. In the case of new text begin a corporation or new text end an entity 340.23that fails to file an estimated tax for a taxable year when one is required, the period of 340.24the underpayment runs from the four installment dates in subdivision 2 or 3, whichever 340.25applies, to the earlier of the periods in subdivision 6, clauses (1) and (2). 340.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 340.27    Sec. 11. Minnesota Statutes 2012, section 290.9705, subdivision 1, is amended to read: 340.28    Subdivision 1. Withholding of payments to out-of-state contractors. (a) In this 340.29section, "person" means a person, corporation, or cooperative, the state of Minnesota and 340.30its political subdivisions, and a city, county, and school district in Minnesota. 340.31(b) A person who in the regular course of business is hiring, contracting, or having a 340.32contract with a nonresident person or foreign corporation, as defined in Minnesota Statutes 340.331986, section 290.01, subdivision 5, to perform construction work in Minnesota, shall 341.1deduct and withhold eight percent of cumulative calendar year payments new text begin made new text end to the 341.2contractor which exceed new text begin if the value of the contract exceeds new text end $50,000. 341.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for payments made to contractors new text end 341.4 new text begin after December 31, 2013. new text end 341.5ARTICLE 16 341.6DEPARTMENT POLICY AND TECHNICAL: SALES AND USE 341.7TAXES; SPECIAL TAXES 341.8    Section 1. Minnesota Statutes 2012, section 287.20, is amended by adding a 341.9subdivision to read: 341.10     new text begin Subd. 11. new text end new text begin Partition. new text end new text begin "Partition" means the division by conveyance of real property new text end 341.11 new text begin that is held jointly or in common by two or more persons into individually owned interests. new text end 341.12 new text begin If one of the co-owners gives consideration for all or a part of the individually owned new text end 341.13 new text begin interest conveyed to them, that portion of the conveyance is not a part of the partition. new text end 341.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 341.15    Sec. 2. Minnesota Statutes 2012, section 289A.20, subdivision 4, is amended to read: 341.16    Subd. 4. Sales and use tax. (a) The taxes imposed by chapter 297A are due and 341.17payable to the commissioner monthly on or before the 20th day of the month following 341.18the month in which the taxable event occurred, or following another reporting period 341.19as the commissioner prescribes or as allowed under section 289A.18, subdivision 4, 341.20paragraph (f) or (g), except that: 341.21(1) use taxes due on an annual use tax return as provided under section 289A.11, 341.22subdivision 1 , are payable by April 15 following the close of the calendar year; and new text begin . new text end 341.23(2) except as provided in paragraph (f), for a vendor having a liability of $120,000 341.24or more during a fiscal year ending June 30, 2009, and fiscal years thereafter, the taxes 341.25imposed by chapter 297A, except as provided in paragraph (b), are due and payable to the 341.26commissioner monthly in the following manner: 341.27(i) On or before the 14th day of the month following the month in which the taxable 341.28event occurred, the vendor must remit to the commissioner 90 percent of the estimated 341.29liability for the month in which the taxable event occurred. 341.30(ii) On or before the 20th day of the month in which the taxable event occurs, the 341.31vendor must remit to the commissioner a prepayment for the month in which the taxable 341.32event occurs equal to 67 percent of the liability for the previous month. 341.33(iii) On or before the 20th day of the month following the month in which the taxable 341.34event occurred, the vendor must pay any additional amount of tax not previously remitted 342.1under either item (i) or (ii ) or, if the payment made under item (i) or (ii) was greater than 342.2the vendor's liability for the month in which the taxable event occurred, the vendor may 342.3take a credit against the next month's liability in a manner prescribed by the commissioner. 342.4(iv) Once the vendor first pays under either item (i) or (ii), the vendor is required to 342.5continue to make payments in the same manner, as long as the vendor continues having a 342.6liability of $120,000 or more during the most recent fiscal year ending June 30. 342.7(v) Notwithstanding items (i), (ii), and (iv), if a vendor fails to make the required 342.8payment in the first month that the vendor is required to make a payment under either item 342.9(i) or (ii), then the vendor is deemed to have elected to pay under item (ii) and must make 342.10subsequent monthly payments in the manner provided in item (ii). 342.11(vi) For vendors making an accelerated payment under item (ii), for the first month 342.12that the vendor is required to make the accelerated payment, on the 20th of that month, the 342.13vendor will pay 100 percent of the liability for the previous month and a prepayment for 342.14the first month equal to 67 percent of the liability for the previous month. 342.15    (b) Notwithstanding paragraph (a), A vendor having a liability of $120,000 or more 342.16during a fiscal year ending June 30 must remit the June liability for the next year in the 342.17following manner: 342.18    (1) Two business days before June 30 of the year, the vendor must remit 90 percent 342.19of the estimated June liability to the commissioner. 342.20    (2) On or before August 20 of the year, the vendor must pay any additional amount 342.21of tax not remitted in June. 342.22    (c) A vendor having a liability of: 342.23    (1) $10,000 or more, but less than $120,000 during a fiscal year ending June 30, 342.242009, and fiscal years thereafter, must remit by electronic means all liabilities on returns 342.25due for periods beginning in the subsequent calendar year on or before the 20th day of 342.26the month following the month in which the taxable event occurred, or on or before the 342.2720th day of the month following the month in which the sale is reported under section 342.28289A.18, subdivision 4 ; or 342.29(2) $120,000 or more, during a fiscal year ending June 30, 2009, and fiscal years 342.30thereafter, must remit by electronic means all liabilities in the manner provided in 342.31paragraph (a), clause (2), on returns due for periods beginning in the subsequent calendar 342.32year, except for 90 percent of the estimated June liability, which is due two business days 342.33before June 30. The remaining amount of the June liability is due on August 20. 342.34(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's 342.35religious beliefs from paying electronically shall be allowed to remit the payment by mail. 342.36The filer must notify the commissioner of revenue of the intent to pay by mail before 343.1doing so on a form prescribed by the commissioner. No extra fee may be charged to a 343.2person making payment by mail under this paragraph. The payment must be postmarked 343.3at least two business days before the due date for making the payment in order to be 343.4considered paid on a timely basis. 343.5(e) Whenever the liability is $120,000 or more separately for: (1) the tax imposed 343.6under chapter 297A; (2) a fee that is to be reported on the same return as and paid with the 343.7chapter 297A taxes; or (3) any other tax that is to be reported on the same return as and 343.8paid with the chapter 297A taxes, then the payment of all the liabilities on the return must 343.9be accelerated as provided in this subdivision. 343.10(f) At the start of the first calendar quarter at least 90 days after the cash flow account 343.11established in section 16A.152, subdivision 1, and the budget reserve account established in 343.12section 16A.152, subdivision 1a, reach the amounts listed in section 16A.152, subdivision 343.132 , paragraph (a), the remittance of the accelerated payments required under paragraph (a), 343.14clause (2), must be suspended. The commissioner of management and budget shall notify 343.15the commissioner of revenue when the accounts have reached the required amounts. 343.16Beginning with the suspension of paragraph (a), clause (2), for a vendor with a liability of 343.17$120,000 or more during a fiscal year ending June 30, 2009, and fiscal years thereafter, the 343.18taxes imposed by chapter 297A are due and payable to the commissioner on the 20th day 343.19of the month following the month in which the taxable event occurred. Payments of tax 343.20liabilities for taxable events occurring in June under paragraph (b) are not changed. 343.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 343.22    Sec. 3. Minnesota Statutes 2012, section 297A.665, is amended to read: 343.23297A.665 PRESUMPTION OF TAX; BURDEN OF PROOF. 343.24    (a) For the purpose of the proper administration of this chapter and to prevent 343.25evasion of the tax, until the contrary is established, it is presumed that: 343.26    (1) all gross receipts are subject to the tax; and 343.27    (2) all retail sales for delivery in Minnesota are for storage, use, or other consumption 343.28in Minnesota. 343.29    (b) The burden of proving that a sale is not a taxable retail sale is on the seller. 343.30However, a seller is relieved of liability if: 343.31    (1) the seller obtains a fully completed exemption certificate or all the relevant 343.32information required by section 297A.72, subdivision 2, at the time of the sale or within 343.3390 days after the date of the sale; or 344.1    (2) if the seller has not obtained a fully completed exemption certificate or all the 344.2relevant information required by section 297A.72, subdivision 2, within the time provided 344.3in clause (1), within 120 days after a request for substantiation by the commissioner, 344.4the seller either: 344.5    (i) obtains in good faith new text begin from the purchaser new text end a fully completed exemption certificate 344.6or all the relevant information required by section 297A.72, subdivision 2, from the 344.7purchaser new text begin taken in good faith which means that the exemption certificate claims an new text end 344.8 new text begin exemption that (A) was statutorily available on the date of the transaction, (B) could be new text end 344.9 new text begin applicable to the item for which the exemption is claimed, and (C) is reasonable for the new text end 344.10 new text begin purchaser's type of business new text end ; or 344.11    (ii) proves by other means that the transaction was not subject to tax. 344.12    (c) Notwithstanding paragraph (b), relief from liability does not apply to a seller who: 344.13    (1) fraudulently fails to collect the tax; or 344.14    (2) solicits purchasers to participate in the unlawful claim of an exemption. 344.15 new text begin (d) Notwithstanding paragraph (b), relief from liability does not apply to a seller new text end 344.16 new text begin who has obtained information under paragraph (b), clause (2), if through the audit process new text end 344.17 new text begin the commissioner finds the following: new text end 344.18 new text begin (1) that at the time the information was provided the seller had knowledge or had new text end 344.19 new text begin reason to know that the information relating to the exemption was materially false; or new text end 344.20 new text begin (2) that the seller knowingly participated in activity intended to purposefully evade new text end 344.21 new text begin the sales tax due on the transaction. new text end 344.22    (d) new text begin (e) new text end A certified service provider, as defined in section 297A.995, subdivision 2, is 344.23relieved of liability under this section to the extent a seller who is its client is relieved of 344.24liability. 344.25    (e) new text begin (f) new text end A purchaser of tangible personal property or any items listed in section 297A.63 344.26that are shipped or brought to Minnesota by the purchaser has the burden of proving that the 344.27property was not purchased from a retailer for storage, use, or consumption in Minnesota. 344.28(f) new text begin (g) new text end If a seller claims that certain sales are exempt and does not provide the 344.29certificate, information, or proof required by paragraph (b), clause (2), within 120 days 344.30after the date of the commissioner's request for substantiation, then the exemptions 344.31claimed by the seller that required substantiation are disallowed. 344.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively from January 1, 2013. new text end 344.33    Sec. 4. Minnesota Statutes 2012, section 297F.01, subdivision 23, is amended to read: 344.34    Subd. 23. Wholesale sales price. "Wholesale sales price" means the price stated 344.35on the price list in effect at the time of sale for which a manufacturer or person sells a 345.1tobacco product to a distributor, exclusive of any discount, promotional offer, or other 345.2reduction. For purposes of this subdivision, "price list" means the manufacturer's price at 345.3which tobacco products are made available for sale to all distributors on an ongoing basis 345.4 new text begin at which a distributor purchases a tobacco product. Wholesale sales price includes the new text end 345.5 new text begin applicable federal excise tax, freight charges, or packaging costs, regardless of whether new text end 345.6 new text begin they were included in the purchase price new text end . 345.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for purchases made after December new text end 345.8 new text begin 31, 2013. new text end 345.9    Sec. 5. Minnesota Statutes 2012, section 297G.04, subdivision 2, is amended to read: 345.10    Subd. 2. Tax credit. A qualified brewer producing fermented malt beverages 345.11is entitled to a tax credit of $4.60 per barrel on 25,000 barrels sold in any fiscal year 345.12beginning July 1, regardless of the alcohol content of the product. Qualified brewers may 345.13take the credit on the 18th day of each month, but the total credit allowed may not exceed 345.14in any fiscal year the lesser of: 345.15(1) the liability for tax; or 345.16(2) $115,000. 345.17For purposes of this subdivision, a "qualified brewer" means a brewer, whether 345.18or not located in this state, manufacturing less than 100,000 barrels of fermented malt 345.19beverages in the calendar year immediately preceding the calendar new text begin fiscal new text end year for which 345.20the credit under this subdivision is claimed. In determining the number of barrels, all 345.21brands or labels of a brewer must be combined. All facilities for the manufacture of 345.22fermented malt beverages owned or controlled by the same person, corporation, or other 345.23entity must be treated as a single brewer. 345.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 345.25    Sec. 6. Minnesota Statutes 2012, section 297I.05, subdivision 7, is amended to read: 345.26    Subd. 7. Nonadmitted insurance premium tax. (a) A tax is imposed on surplus 345.27lines brokers. The rate of tax is equal to three percent of the gross premiums less return 345.28premiums paid by an insured whose home state is Minnesota. 345.29(b) A tax is imposed on persons, firms, or corporations new text begin a person, firm, corporation, new text end 345.30 new text begin or purchasing group as defined in section 60E.02, or any member of a purchasing group, new text end 345.31 that procure new text begin procures new text end insurance directly from a nonadmitted insurer. The rate of tax is 345.32equal to two percent of the gross premiums less return premiums paid by an insured 345.33whose home state is Minnesota. 346.1(c) No state other than the home state of an insured may require any premium tax 346.2payment for nonadmitted insurance. When Minnesota is the home state of the insured, 346.3as provided under section 297I.01, 100 percent of the gross premiums are taxable in 346.4Minnesota with no allocation of the tax to other states. 346.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for premiums received after new text end 346.6 new text begin December 31, 2013. new text end 346.7    Sec. 7. Minnesota Statutes 2012, section 297I.05, subdivision 11, is amended to read: 346.8    Subd. 11. Retaliatory provisions. (a) If any other state or country imposes any 346.9taxes, fines, deposits, penalties, licenses, or fees upon any insurance companies of this 346.10state and their agents doing business in another state or country that are in addition to or in 346.11excess of those imposed by the laws of this state upon foreign insurance companies and 346.12their agents doing business in this state, the same taxes, fines, deposits, penalties, licenses, 346.13and fees are imposed upon every similar insurance company of that state or country and 346.14their agents doing or applying to do business in this state. 346.15(b) If any conditions precedent to the right to do business in any other state or 346.16country are imposed by the laws of that state or country, beyond those imposed upon 346.17foreign companies by the laws of this state, the same conditions precedent are imposed 346.18upon every similar insurance company of that state or country and their agents doing or 346.19applying to do business in that state. 346.20(c) For purposes of this subdivision, "taxes, fines, deposits, penalties, licenses, or 346.21fees" means an amount of money that is deposited in the general revenue fund of the state 346.22or other similar fund in another state or country and is not dedicated to a special purpose 346.23or use or money deposited in the general revenue fund of the state or other similar fund in 346.24another state or country and appropriated to the commissioner of commerce or insurance 346.25for the operation of the Department of Commerce or other similar agency with jurisdiction 346.26over insurance. Taxes, fines, deposits, penalties, licenses, or fees do not include: 346.27(1) special purpose obligations or assessments imposed in connection with particular 346.28kinds of insurance, including but not limited to assessments imposed in connection with 346.29residual market mechanisms; or 346.30(2) assessments made by the insurance guaranty association, life and health 346.31guarantee association, or similar association. 346.32(d) This subdivision applies to taxes imposed under subdivisions 1, new text begin ; new text end 3, new text begin ; new text end 4, 6, and new text begin ; new text end 12, 346.33paragraph (a), clauses (1) and (2) new text begin ; and 14 new text end . 346.34(e) This subdivision does not apply to insurance companies organized or domiciled 346.35in a state or country, the laws of which do not impose retaliatory taxes, fines, deposits, 347.1penalties, licenses, or fees or which grant, on a reciprocal basis, exemptions from 347.2retaliatory taxes, fines, deposits, penalties, licenses, or fees to insurance companies 347.3domiciled in this state. 347.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 347.5    Sec. 8. Minnesota Statutes 2012, section 297I.05, subdivision 12, is amended to read: 347.6    Subd. 12. Other entities. (a) A tax is imposed equal to two percent of: 347.7    (1) gross premiums less return premiums written for risks resident or located in 347.8Minnesota by a risk retention group; 347.9    (2) gross premiums less return premiums received by an attorney in fact acting 347.10in accordance with chapter 71A; 347.11    (3) gross premiums less return premiums received pursuant to assigned risk policies 347.12and contracts of coverage under chapter 79; new text begin and new text end 347.13    (4) the direct funded premium received by the reinsurance association under section 347.1479.34 from self-insurers approved under section 176.181 and political subdivisions that 347.15self-insure; and new text begin . new text end 347.16    (5) gross premiums less return premiums paid to an insurer other than a licensed 347.17insurance company or a surplus lines broker for coverage of risks resident or located in 347.18Minnesota by a purchasing group or any members of the purchasing group to a broker or 347.19agent for the purchasing group. 347.20    (b) A tax is imposed on a joint self-insurance plan operating under chapter 60F. The 347.21rate of tax is equal to two percent of the total amount of claims paid during the fund year, 347.22with no deduction for claims wholly or partially reimbursed through stop-loss insurance. 347.23    (c) A tax is imposed on a joint self-insurance plan operating under chapter 62H. 347.24The rate of tax is equal to two percent of the total amount of claims paid during the 347.25fund's fiscal year, with no deduction for claims wholly or partially reimbursed through 347.26stop-loss insurance. 347.27    (d) A tax is imposed equal to the tax imposed under section 297I.05, subdivision 5, 347.28on the gross premiums less return premiums on all coverages received by an accountable 347.29provider network or agents of an accountable provider network in Minnesota, in cash or 347.30otherwise, during the year. 347.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for premiums received after new text end 347.32 new text begin December 31, 2013. new text end 347.33    Sec. 9. Minnesota Statutes 2012, section 297I.30, subdivision 1, is amended to read: 348.1    Subdivision 1. General rule. On or before March 1, every taxpayer subject to 348.2taxation under section 297I.05, subdivisions 1 to 5, new text begin ; new text end 7, paragraph (b), new text begin ; new text end 12, paragraphs (a), 348.3clauses (1) to (4), (b), (c), and (d), new text begin ; new text end and 14, shall file an annual return for the preceding 348.4calendar year in the form prescribed by the commissioner. 348.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for premiums received after new text end 348.6 new text begin December 31, 2013. new text end 348.7    Sec. 10. Minnesota Statutes 2012, section 297I.30, subdivision 2, is amended to read: 348.8    Subd. 2. Surplus lines brokers and purchasing groups. On or before February 348.915 and August 15 of each year, every surplus lines broker subject to taxation under 348.10section 297I.05, subdivision 7, paragraph (a), and every purchasing group or member of 348.11a purchasing group subject to tax under section 297I.05, subdivision 12, paragraph (a), 348.12clause (5), shall file a return with the commissioner for the preceding six-month period 348.13ending December 31, or June 30, in the form prescribed by the commissioner. 348.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for premiums received after new text end 348.15 new text begin December 31, 2013. new text end 348.16    Sec. 11. new text begin REPEALER. new text end 348.17 new text begin Minnesota Statutes 2012, section 289A.60, subdivision 31, new text end new text begin is repealed. new text end 348.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 348.19ARTICLE 17 348.20DEPARTMENT POLICY AND TECHNICAL: MINERALS 348.21TAXES; PROPERTY TAX 348.22    Section 1. Minnesota Statutes 2012, section 123A.455, subdivision 1, is amended to 348.23read: 348.24    Subdivision 1. Definitions. "Split residential property parcel" means a parcel of 348.25real estate that is located within the boundaries of more than one school district and that 348.26is classified as residential property under: 348.27    (1) section 273.13, subdivision 22, paragraph (a) or (b); 348.28    (2) section 273.13, subdivision 25, paragraph (b), clause (1); or 348.29    (3) section 273.13, subdivision 25, paragraph (c), clause (1). 348.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2014 and new text end 348.31 new text begin thereafter. new text end 349.1    Sec. 2. Minnesota Statutes 2012, section 270.077, is amended to read: 349.2270.077 TAXES CREDITED TO STATE AIRPORTS FUND. 349.3    All taxes levied under sections 270.071 to 270.079 must be new text begin collected by the new text end 349.4 new text begin commissioner and new text end credited to the state airports fund created in section 360.017. 349.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 349.6    Sec. 3. Minnesota Statutes 2012, section 270.41, subdivision 5, is amended to read: 349.7    Subd. 5. Prohibited activity. A licensed assessor or other person employed by an 349.8assessment jurisdiction or contracting with an assessment jurisdiction for the purpose 349.9of valuing or classifying property for property tax purposes is prohibited from making 349.10appraisals or analyses, accepting an appraisal assignment, or preparing an appraisal report 349.11as defined in section 82B.021, subdivisions 2, 4, 6, and 7, on any property within the 349.12assessment jurisdiction where the individual is employed or performing the duties of the 349.13assessor under contract. Violation of this prohibition shall result in immediate revocation 349.14of the individual's license to assess property for property tax purposes. This prohibition 349.15must not be construed to prohibit an individual from carrying out any duties required 349.16for the proper assessment of property for property tax purposes or performing duties 349.17enumerated in section 273.061, subdivision 7 or 8. If a formal resolution has been adopted 349.18by the governing body of a governmental unit, which specifies the purposes for which 349.19such work will be done, this prohibition does not apply to appraisal activities undertaken 349.20on behalf of and at the request of the governmental unit that has employed or contracted 349.21with the individual. The resolution may only allow appraisal activities which are related to 349.22condemnations, right-of-way acquisitions, new text begin land exchanges, new text end or special assessments. 349.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 349.24    Sec. 4. Minnesota Statutes 2012, section 270C.34, subdivision 1, is amended to read: 349.25    Subdivision 1. Authority. (a) The commissioner may abate, reduce, or refund any 349.26penalty or interest that is imposed by a law administered by the commissioner, or imposed 349.27by section 270.0725, subdivision 1 or 2, new text begin or 270.075, subdivision 2, new text end as a result of the late 349.28payment of tax or late filing of a return, or any part of an additional tax charge under 349.29section 289A.25, subdivision 2, or 289A.26, subdivision 4, if the failure to timely pay the 349.30tax or failure to timely file the return is due to reasonable cause, or if the taxpayer is located 349.31in a presidentially declared disaster or in a presidentially declared state of emergency area 349.32or in an area declared to be in a state of emergency by the governor under section 12.31. 350.1    (b) The commissioner shall abate any part of a penalty or additional tax charge 350.2under section 289A.25, subdivision 2, or 289A.26, subdivision 4, attributable to erroneous 350.3advice given to the taxpayer in writing by an employee of the department acting in 350.4an official capacity, if the advice: 350.5    (1) was reasonably relied on and was in response to a specific written request of the 350.6taxpayer; and 350.7    (2) was not the result of failure by the taxpayer to provide adequate or accurate 350.8information. 350.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 350.10    Sec. 5. Minnesota Statutes 2012, section 272.01, subdivision 2, is amended to read: 350.11    Subd. 2. Exempt property used by private entity for profit. (a) When any real or 350.12personal property which is exempt from ad valorem taxes, and taxes in lieu thereof, is 350.13leased, loaned, or otherwise made available and used by a private individual, association, 350.14or corporation in connection with a business conducted for profit, there shall be imposed a 350.15tax, for the privilege of so using or possessing such real or personal property, in the same 350.16amount and to the same extent as though the lessee or user was the owner of such property. 350.17    (b) The tax imposed by this subdivision shall not apply to: 350.18    (1) property leased or used as a concession in or relative to the use in whole 350.19or part of a public park, market, fairgrounds, port authority, economic development 350.20authority established under chapter 469, municipal auditorium, municipal parking facility, 350.21municipal museum, or municipal stadium; 350.22    (2) property of an airport owned by a city, town, county, or group thereof which is: 350.23    (i) leased to or used by any person or entity including a fixed base operator; and 350.24    (ii) used as a hangar for the storage or repair of aircraft or to provide aviation goods, 350.25services, or facilities to the airport or general public; 350.26the exception from taxation provided in this clause does not apply to: 350.27    (i) property located at an airport owned or operated by the Metropolitan Airports 350.28Commission or by a city of over 50,000 population according to the most recent federal 350.29census or such a city's airport authority; or 350.30    (ii) hangars leased by a private individual, association, or corporation in connection 350.31with a business conducted for profit other than an aviation-related business; 350.32    (3) property constituting or used as a public pedestrian ramp or concourse in 350.33connection with a public airport; 350.34    (4) property constituting or used as a passenger check-in area or ticket sale counter, 350.35boarding area, or luggage claim area in connection with a public airport but not the 351.1airports owned or operated by the Metropolitan Airports Commission or cities of over 351.250,000 population or an airport authority therein. Real estate owned by a municipality 351.3in connection with the operation of a public airport and leased or used for agricultural 351.4purposes is not exempt; 351.5    (5) property leased, loaned, or otherwise made available to a private individual, 351.6corporation, or association under a cooperative farming agreement made pursuant to 351.7section 97A.135; or 351.8    (6) property leased, loaned, or otherwise made available to a private individual, 351.9corporation, or association under section 272.68, subdivision 4. 351.10    (c) Taxes imposed by this subdivision are payable as in the case of personal property 351.11taxes and shall be assessed to the lessees or users of real or personal property in the same 351.12manner as taxes assessed to owners of real or personal property, except that such taxes 351.13shall not become a lien against the property. When due, the taxes shall constitute a debt due 351.14from the lessee or user to the state, township, city, county, and school district for which the 351.15taxes were assessed and shall be collected in the same manner as personal property taxes. 351.16If property subject to the tax imposed by this subdivision is leased or used jointly by two or 351.17more persons, each lessee or user shall be jointly and severally liable for payment of the tax. 351.18    (d) The tax on real property of the new text begin federal government, the new text end state or any of its political 351.19subdivisions that is leased by new text begin , loaned, or otherwise made available to new text end a private individual, 351.20association, or corporation and becomes taxable under this subdivision or other provision 351.21of law must be assessed and collected as a personal property assessment. The taxes do 351.22not become a lien against the real property. 351.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 351.24    Sec. 6. Minnesota Statutes 2012, section 272.02, subdivision 97, is amended to read: 351.25    Subd. 97. Property used in business of mining subject to net proceeds tax. The 351.26following property used in the business of mining that is subject to the net proceeds tax 351.27under section 298.015 is exempt: 351.28    (1) deposits of ores, metals, and minerals and the lands in which they are contained; 351.29    (2) all real and personal property used in mining, quarrying, producing, or refining 351.30ores, minerals, or metals, including lands occupied by or used in connection with the 351.31mining, quarrying, production, or ore refining facilities; and 351.32    (3) concentrate or direct reduced ore. 351.33    This exemption applies for each year that a person subject to tax under section 351.34298.015 uses the property for mining, quarrying, producing, or refining ores, metals, or 351.35minerals. 352.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 352.2    Sec. 7. Minnesota Statutes 2012, section 272.03, subdivision 9, is amended to read: 352.3    Subd. 9. Person. "Person" includes new text begin means an individual, association, estate, trust, new text end 352.4 new text begin partnership, new text end firm, company, or corporation. 352.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 352.6    Sec. 8. Minnesota Statutes 2012, section 273.114, subdivision 6, is amended to read: 352.7    Subd. 6. Additional taxes. new text begin (a) new text end When real property which is being, or has been 352.8valued and assessed under this section new text begin is sold, transferred, or new text end no longer qualifies under 352.9subdivision 2, the portion new text begin sold, transferred, or new text end no longer qualifying shall be subject to 352.10additional taxes in the amount equal to the difference between the taxes determined in 352.11accordance with subdivision 3 and the amount determined under subdivision 4, provided 352.12that the amount determined under subdivision 4 shall not be greater than it would have 352.13been had the actual bona fide sale price of the real property at an arm's-length transaction 352.14been used in lieu of the market value determined under subdivision 4. The additional taxes 352.15shall be extended against the property on the tax list for new text begin taxes payable in new text end the current year, 352.16provided that no interest or penalties shall be levied on the additional taxes if timely paid 352.17and new text begin provided new text end that the additional taxes shall only be levied with respect to the current year 352.18plus two prior years that the property has been valued and assessed under this section. 352.19     new text begin (b) In the case of a sale or transfer, the additional taxes under paragraph (a) shall not new text end 352.20 new text begin be extended against the property if the new owner submits a successful application under new text end 352.21 new text begin this section by the later of May 1 of the current year or 30 days after the sale or transfer. new text end 352.22     new text begin (c) For the purposes of this section, the following events do not constitute a sale or new text end 352.23 new text begin transfer for property that qualified under subdivision 2 prior to the event: new text end 352.24     new text begin (1) death of a property owner when the surviving owners retain ownership of the new text end 352.25 new text begin property; new text end 352.26     new text begin (2) divorce of a married couple when one of the spouses retains ownership of the new text end 352.27 new text begin property; new text end 352.28     new text begin (3) marriage of a single property owner when that owner retains ownership of the new text end 352.29 new text begin property in whole or in part; new text end 352.30     new text begin (4) the organization or reorganization of a farm ownership entity that is not prohibited new text end 352.31 new text begin from owning agricultural land in this state under section 500.24, if all owners maintain the new text end 352.32 new text begin same beneficial interest both before and after the organization or reorganization; and new text end 353.1     new text begin (5) transfer of the property to a trust or trustee, provided that the individual owners new text end 353.2 new text begin of the property are the grantors of the trust and they maintain the same beneficial interest new text end 353.3 new text begin both before and after placement of the property in trust. new text end 353.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 353.5    Sec. 9. Minnesota Statutes 2012, section 273.13, subdivision 23, is amended to read: 353.6    Subd. 23. Class 2. (a) An agricultural homestead consists of class 2a agricultural 353.7land that is homesteaded, along with any class 2b rural vacant land that is contiguous to 353.8the class 2a land under the same ownership. The market value of the house and garage 353.9and immediately surrounding one acre of land has the same class rates as class 1a or 1b 353.10property under subdivision 22. The value of the remaining land including improvements 353.11up to the first tier valuation limit of agricultural homestead property has a net class rate 353.12of 0.5 percent of market value. The remaining property over the first tier has a class rate 353.13of one percent of market value. For purposes of this subdivision, the "first tier valuation 353.14limit of agricultural homestead property" and "first tier" means the limit certified under 353.15section 273.11, subdivision 23. 353.16    (b) Class 2a agricultural land consists of parcels of property, or portions thereof, that 353.17are agricultural land and buildings. Class 2a property has a net class rate of one percent of 353.18market value, unless it is part of an agricultural homestead under paragraph (a). Class 2a 353.19property must also include any property that would otherwise be classified as 2b, but is 353.20interspersed with class 2a property, including but not limited to sloughs, wooded wind 353.21shelters, acreage abutting ditches, ravines, rock piles, land subject to a setback requirement, 353.22and other similar land that is impractical for the assessor to value separately from the rest of 353.23the property or that is unlikely to be able to be sold separately from the rest of the property. 353.24    An assessor may classify the part of a parcel described in this subdivision that is used 353.25for agricultural purposes as class 2a and the remainder in the class appropriate to its use. 353.26    (c) Class 2b rural vacant land consists of parcels of property, or portions thereof, 353.27that are unplatted real estate, rural in character and not used for agricultural purposes, 353.28including land used for growing trees for timber, lumber, and wood and wood products, 353.29that is not improved with a structure. The presence of a minor, ancillary nonresidential 353.30structure as defined by the commissioner of revenue does not disqualify the property from 353.31classification under this paragraph. Any parcel of 20 acres or more improved with a 353.32structure that is not a minor, ancillary nonresidential structure must be split-classified, and 353.33ten acres must be assigned to the split parcel containing the structure. Class 2b property 353.34has a net class rate of one percent of market value unless it is part of an agricultural 353.35homestead under paragraph (a), or qualifies as class 2c under paragraph (d). 354.1    (d) Class 2c managed forest land consists of no less than 20 and no more than 1,920 354.2acres statewide per taxpayer that is being managed under a forest management plan that 354.3meets the requirements of chapter 290C, but is not enrolled in the sustainable forest 354.4resource management incentive program. It has a class rate of .65 percent, provided that 354.5the owner of the property must apply to the assessor in order for the property to initially 354.6qualify for the reduced rate and provide the information required by the assessor to verify 354.7that the property qualifies for the reduced rate. If the assessor receives the application 354.8and information before May 1 in an assessment year, the property qualifies beginning 354.9with that assessment year. If the assessor receives the application and information after 354.10April 30 in an assessment year, the property may not qualify until the next assessment 354.11year. The commissioner of natural resources must concur that the land is qualified. The 354.12commissioner of natural resources shall annually provide county assessors verification 354.13information on a timely basis. The presence of a minor, ancillary nonresidential structure 354.14as defined by the commissioner of revenue does not disqualify the property from 354.15classification under this paragraph. 354.16    (e) Agricultural land as used in this section means new text begin : new text end 354.17     new text begin (1) new text end contiguous acreage of ten acres or more, used during the preceding year for 354.18agricultural purposes. new text begin ; or new text end 354.19     new text begin (2) contiguous acreage used during the preceding year for an intensive livestock or new text end 354.20 new text begin poultry confinement operation, provided that land used only for pasturing or grazing new text end 354.21 new text begin does not qualify under this clause. new text end 354.22    "Agricultural purposes" as used in this section means the raising, cultivation, drying, 354.23or storage of agricultural products for sale, or the storage of machinery or equipment 354.24used in support of agricultural production by the same farm entity. For a property to be 354.25classified as agricultural based only on the drying or storage of agricultural products, 354.26the products being dried or stored must have been produced by the same farm entity as 354.27the entity operating the drying or storage facility. "Agricultural purposes" also includes 354.28enrollment in the Reinvest in Minnesota program under sections 103F.501 to 103F.535 or 354.29the federal Conservation Reserve Program as contained in Public Law 99-198 or a similar 354.30state or federal conservation program if the property was classified as agricultural (i) 354.31under this subdivision for the assessment year 2002 new text begin taxes payable in 2003 because of its new text end 354.32 new text begin enrollment in a qualifying program and the land remains enrolled new text end or (ii) in the year prior 354.33to its enrollment. Agricultural classification shall not be based upon the market value of 354.34any residential structures on the parcel or contiguous parcels under the same ownership. 355.1     new text begin "Contiguous acreage," for purposes of this paragraph, means all of, or a contiguous new text end 355.2 new text begin portion of, a tax parcel as described in section 272.193, or all of, or a contiguous portion new text end 355.3 new text begin of, a set of contiguous tax parcels under that section that are owned by the same person. new text end 355.4    (f) Real estate of new text begin Agricultural land under this section also includes: new text end 355.5     new text begin (1) contiguous acreage that is new text end less than ten acres, which is new text begin in size and new text end exclusively or 355.6intensively used new text begin in the preceding year new text end for raising or cultivating agricultural products, shall 355.7be considered as agricultural land. To qualify under this paragraph, property that includes 355.8a residential structure must be used intensively for one of the following purposes: new text begin ; or new text end 355.9     new text begin (2) contiguous acreage that contains a residence and is less than 11 acres in size, if new text end 355.10 new text begin the contiguous acreage exclusive of the house, garage, and surrounding one acre of land new text end 355.11 new text begin was used in the preceding year for one or more of the following three uses: new text end 355.12    (i) for new text begin an intensive grain new text end drying or storage of grain new text begin operation, new text end or new text begin for intensive new text end 355.13 new text begin machinery or equipment new text end storage of machinery or equipment new text begin activities new text end used to support 355.14agricultural activities on other parcels of property operated by the same farming entity; 355.15    (ii) as a nursery, provided that only those acres used new text begin intensively new text end to produce nursery 355.16stock are considered agricultural land; new text begin or new text end 355.17    (iii) for livestock or poultry confinement, provided that land that is used only for 355.18pasturing and grazing does not qualify; or 355.19    (iv) new text begin (iii) new text end for new text begin intensive new text end market farming; for purposes of this paragraph, "market 355.20farming" means the cultivation of one or more fruits or vegetables or production of animal 355.21or other agricultural products for sale to local markets by the farmer or an organization 355.22with which the farmer is affiliated. 355.23     new text begin "Contiguous acreage," for purposes of this paragraph, means all of a tax parcel as new text end 355.24 new text begin described in section 272.193, or all of a set of contiguous tax parcels under that section new text end 355.25 new text begin that are owned by the same person. new text end 355.26    (g) Land shall be classified as agricultural even if all or a portion of the agricultural 355.27use of that property is the leasing to, or use by another person for agricultural purposes. 355.28    Classification under this subdivision is not determinative for qualifying under 355.29section 273.111. 355.30    (h) The property classification under this section supersedes, for property tax 355.31purposes only, any locally administered agricultural policies or land use restrictions that 355.32define minimum or maximum farm acreage. 355.33    (i) The term "agricultural products" as used in this subdivision includes production 355.34for sale of: 356.1    (1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing 356.2animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains, 356.3bees, and apiary products by the owner; 356.4    (2) fish bred for sale and consumption if the fish breeding occurs on land zoned 356.5for agricultural use; 356.6    (3) the commercial boarding of horses, which may include related horse training and 356.7riding instruction, if the boarding is done on property that is also used for raising pasture 356.8to graze horses or raising or cultivating other agricultural products as defined in clause (1); 356.9    (4) property which is owned and operated by nonprofit organizations used for 356.10equestrian activities, excluding racing; 356.11    (5) game birds and waterfowl bred and raised (i) on a game farm licensed under 356.12section 97A.105, provided that the annual licensing report to the Department of Natural 356.13Resources, which must be submitted annually by March 30 to the assessor, indicates 356.14that at least 500 birds were raised or used for breeding stock on the property during the 356.15preceding year and that the owner provides a copy of the owner's most recent schedule F; 356.16or (ii) for use on a shooting preserve licensed under section 97A.115; 356.17    (6) insects primarily bred to be used as food for animals; 356.18    (7) trees, grown for sale as a crop, including short rotation woody crops, and not 356.19sold for timber, lumber, wood, or wood products; and 356.20    (8) maple syrup taken from trees grown by a person licensed by the Minnesota 356.21Department of Agriculture under chapter 28A as a food processor. 356.22    (j) If a parcel used for agricultural purposes is also used for commercial or industrial 356.23purposes, including but not limited to: 356.24    (1) wholesale and retail sales; 356.25    (2) processing of raw agricultural products or other goods; 356.26    (3) warehousing or storage of processed goods; and 356.27    (4) office facilities for the support of the activities enumerated in clauses (1), (2), 356.28and (3), 356.29the assessor shall classify the part of the parcel used for agricultural purposes as class 356.301b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its 356.31use. The grading, sorting, and packaging of raw agricultural products for first sale is 356.32considered an agricultural purpose. A greenhouse or other building where horticultural 356.33or nursery products are grown that is also used for the conduct of retail sales must be 356.34classified as agricultural if it is primarily used for the growing of horticultural or nursery 356.35products from seed, cuttings, or roots and occasionally as a showroom for the retail sale of 357.1those products. Use of a greenhouse or building only for the display of already grown 357.2horticultural or nursery products does not qualify as an agricultural purpose. 357.3    (k) The assessor shall determine and list separately on the records the market value 357.4of the homestead dwelling and the one acre of land on which that dwelling is located. If 357.5any farm buildings or structures are located on this homesteaded acre of land, their market 357.6value shall not be included in this separate determination. 357.7    (l) Class 2d airport landing area consists of a landing area or public access area of 357.8a privately owned public use airport. It has a class rate of one percent of market value. 357.9To qualify for classification under this paragraph, a privately owned public use airport 357.10must be licensed as a public airport under section 360.018. For purposes of this paragraph, 357.11"landing area" means that part of a privately owned public use airport properly cleared, 357.12regularly maintained, and made available to the public for use by aircraft and includes 357.13runways, taxiways, aprons, and sites upon which are situated landing or navigational aids. 357.14A landing area also includes land underlying both the primary surface and the approach 357.15surfaces that comply with all of the following: 357.16    (i) the land is properly cleared and regularly maintained for the primary purposes of 357.17the landing, taking off, and taxiing of aircraft; but that portion of the land that contains 357.18facilities for servicing, repair, or maintenance of aircraft is not included as a landing area; 357.19    (ii) the land is part of the airport property; and 357.20    (iii) the land is not used for commercial or residential purposes. 357.21The land contained in a landing area under this paragraph must be described and certified 357.22by the commissioner of transportation. The certification is effective until it is modified, 357.23or until the airport or landing area no longer meets the requirements of this paragraph. 357.24For purposes of this paragraph, "public access area" means property used as an aircraft 357.25parking ramp, apron, or storage hangar, or an arrival and departure building in connection 357.26with the airport. 357.27    (m) Class 2e consists of land with a commercial aggregate deposit that is not actively 357.28being mined and is not otherwise classified as class 2a or 2b, provided that the land is not 357.29located in a county that has elected to opt-out of the aggregate preservation program as 357.30provided in section 273.1115, subdivision 6. It has a class rate of one percent of market 357.31value. To qualify for classification under this paragraph, the property must be at least 357.32ten contiguous acres in size and the owner of the property must record with the county 357.33recorder of the county in which the property is located an affidavit containing: 357.34    (1) a legal description of the property; 357.35    (2) a disclosure that the property contains a commercial aggregate deposit that is not 357.36actively being mined but is present on the entire parcel enrolled; 358.1    (3) documentation that the conditional use under the county or local zoning 358.2ordinance of this property is for mining; and 358.3    (4) documentation that a permit has been issued by the local unit of government 358.4or the mining activity is allowed under local ordinance. The disclosure must include a 358.5statement from a registered professional geologist, engineer, or soil scientist delineating 358.6the deposit and certifying that it is a commercial aggregate deposit. 358.7    For purposes of this section and section 273.1115, "commercial aggregate deposit" 358.8means a deposit that will yield crushed stone or sand and gravel that is suitable for use 358.9as a construction aggregate; and "actively mined" means the removal of top soil and 358.10overburden in preparation for excavation or excavation of a commercial deposit. 358.11    (n) When any portion of the property under this subdivision or subdivision 22 begins 358.12to be actively mined, the owner must file a supplemental affidavit within 60 days from 358.13the day any aggregate is removed stating the number of acres of the property that is 358.14actively being mined. The acres actively being mined must be (1) valued and classified 358.15under subdivision 24 in the next subsequent assessment year, and (2) removed from the 358.16aggregate resource preservation property tax program under section 273.1115, if the 358.17land was enrolled in that program. Copies of the original affidavit and all supplemental 358.18affidavits must be filed with the county assessor, the local zoning administrator, and the 358.19Department of Natural Resources, Division of Land and Minerals. A supplemental 358.20affidavit must be filed each time a subsequent portion of the property is actively mined, 358.21provided that the minimum acreage change is five acres, even if the actual mining activity 358.22constitutes less than five acres. 358.23    (o) The definitions prescribed by the commissioner under paragraphs (c) and (d) are 358.24not rules and are exempt from the rulemaking provisions of chapter 14, and the provisions 358.25in section 14.386 concerning exempt rules do not apply. 358.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2014 and new text end 358.27 new text begin thereafter. new text end 358.28    Sec. 10. Minnesota Statutes 2012, section 273.19, subdivision 1, is amended to read: 358.29    Subdivision 1. Tax-exempt property; lease. Except as provided in subdivision 3 or 358.304, tax-exempt property held under a lease for a term of at least one year, and not taxable 358.31under section 272.01, subdivision 2, or under a contract for the purchase thereof, shall be 358.32considered, for all purposes of taxation, as the property of the person holding it. In this 358.33subdivision, "tax-exempt property" means property owned by the United States, the state 358.34 new text begin or any of its political subdivisions new text end , a school, or any religious, scientific, or benevolent 358.35society or institution, incorporated or unincorporated, or any corporation whose property 359.1is not taxed in the same manner as other property. This subdivision does not apply to 359.2property exempt from taxation under section 272.01, subdivision 2, paragraph (b), clauses 359.3(2), (3), and (4), or to property exempt from taxation under section 272.0213. 359.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 359.5    Sec. 11. Minnesota Statutes 2012, section 273.372, subdivision 4, is amended to read: 359.6    Subd. 4. Administrative appeals. (a) Companies that submit the reports under 359.7section 270.82 or 273.371 by the date specified in that section, or by the date specified by 359.8the commissioner in an extension, may appeal administratively to the commissioner prior 359.9to bringing an action in court by submitting new text begin . new text end 359.10     new text begin (b) Companies that must submit reports under section 270.82 must submit new text end a written 359.11request with new text begin to new text end the commissioner for a conference within ten days after the date of the 359.12commissioner's valuation certification or notice to the company, or by May new text begin June new text end 15, 359.13whichever is earlier. 359.14     new text begin (c) Companies that submit reports under section 273.371 must submit a written new text end 359.15 new text begin request to the commissioner for a conference within ten days after the date of the new text end 359.16 new text begin commissioner's valuation certification or notice to the company, or by July 1, whichever new text end 359.17 new text begin is earlier. new text end 359.18     new text begin (d) new text end The commissioner shall conduct the conference upon the commissioner's entire 359.19files and records and such further information as may be offered. The conference must 359.20be held no later than 20 days after the date of the commissioner's valuation certification 359.21or notice to the company, or by the date specified by the commissioner in an extension. 359.22Within 60 days after the conference the commissioner shall make a final determination of 359.23the matter and shall notify the company promptly of the determination. The conference 359.24is not a contested case hearing. 359.25    (b) new text begin (e) new text end In addition to the opportunity for a conference under paragraph (a), the 359.26commissioner shall also provide the railroad and utility companies the opportunity to 359.27discuss any questions or concerns relating to the values established by the commissioner 359.28through certification or notice in a less formal manner. This does not change or modify 359.29the deadline for requesting a conference under paragraph (a), the deadline in section 359.30271.06 for appealing an order of the commissioner, or the deadline in section 278.01 for 359.31appealing property taxes in court. 359.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with assessment year 2014. new text end 359.33    Sec. 12. Minnesota Statutes 2012, section 273.39, is amended to read: 360.1273.39 RURAL AREA. 360.2    As used in sections 273.39 to 273.41, the term "rural area" shall be deemed to mean 360.3any area of the state not included within the boundaries of any incorporated new text begin statutory new text end 360.4 new text begin city or home rule charter new text end city, and such term shall be deemed to include both farm and 360.5nonfarm population thereof. 360.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 360.7    Sec. 13. Minnesota Statutes 2012, section 279.06, subdivision 1, is amended to read: 360.8    Subdivision 1. List and notice. Within five days after the filing of such list, the 360.9court administrator shall return a copy thereof to the county auditor, with a notice prepared 360.10and signed by the court administrator, and attached thereto, which may be substantially in 360.11the following form: 360.12 State of Minnesota ) 360.13 ) ss. 360.14 County of ..... ) 360.15 District Court 360.16 ..... Judicial District. 360.17    The state of Minnesota, to all persons, companies, or corporations who have or claim 360.18any estate, right, title, or interest in, claim to, or lien upon, any of the several parcels of 360.19land described in the list hereto attached: 360.20    The list of taxes and penalties on real property for the county of ............................... 360.21remaining delinquent on the first Monday in January, ......., has been filed in the office of 360.22the court administrator of the district court of said county, of which that hereto attached is a 360.23copy. Therefore, you, and each of you, are hereby required to file in the office of said court 360.24administrator, on or before the 20th day after the publication of this notice and list, your 360.25answer, in writing, setting forth any objection or defense you may have to the taxes, or any 360.26part thereof, upon any parcel of land described in the list, in, to, or on which you have or 360.27claim any estate, right, title, interest, claim, or lien, and, in default thereof, judgment will 360.28be entered against such parcel of land for the taxes on such list appearing against it, and 360.29for all penalties, interest, and costs. Based upon said judgment, the land shall be sold to 360.30the state of Minnesota on the second Monday in May, ....... The period of redemption for 360.31all lands sold to the state at a tax judgment sale shall be three years from the date of sale to 360.32the state of Minnesota if the land is within an incorporated area unless it is: 360.33    (a) nonagricultural homesteaded land as defined in section 273.13, subdivision 22; 360.34    (b) homesteaded agricultural land as defined in section 273.13, subdivision 23, 360.35paragraph (a); 361.1    (c) seasonal residential recreational land as defined in section 273.13, subdivisions 361.222, paragraph (c) , and 25, paragraph (d), clause (1), in which event the period of 361.3redemption is five years from the date of sale to the state of Minnesota; 361.4    (d) abandoned property and pursuant to section a court order has been 361.5entered shortening the redemption period to five weeks; or 361.6    (e) vacant property as described under section 281.174, subdivision 2, and for which 361.7a court order is entered shortening the redemption period under section . 361.8    The period of redemption for all other lands sold to the state at a tax judgment sale 361.9shall be five years from the date of sale. 361.10    Inquiries as to the proceedings set forth above can be made to the county auditor of 361.11..... county whose address is ...... 361.12 (Signed) ..... , 361.13 361.14 Court Administrator of the District Court of the County of ..... 361.15 (Here insert list.) 361.16     new text begin The notice must contain a narrative description of the various periods to redeem new text end 361.17 new text begin specified in sections 281.17, 281.173, and 281.174, in the manner prescribed by the new text end 361.18 new text begin commissioner of revenue under subdivision 2. new text end 361.19    The list referred to in the notice shall be substantially in the following form: 361.20    List of real property for the county of ......................., on which taxes remain 361.21delinquent on the first Monday in January, ....... 361.22Town of (Fairfield), 361.23Township (40), Range (20), 361.24 361.25 361.26 361.27 361.28 361.29 361.30 361.31 Names (and Current Filed Addresses) for the Taxpayers and Fee Owners and in Addition Those Parties Who Have Filed Their Addresses Pursuant to section 276.041 Subdivision of Section Section Tax Parcel Number Total Tax and Penalty 361.32 $ cts. 361.33 361.34 John Jones (825 Fremont Fairfield, MN 55000) S.E. 1/4 of S.W. 1/4 10 23101 2.20 362.1 362.2 362.3 362.4 362.5 362.6 362.7 362.8 362.9 362.10 362.11 362.12 362.13 362.14 362.15 362.16 362.17 362.18 362.19 Bruce Smith (2059 Hand Fairfield, MN 55000) and Fairfield State Bank (100 Main Street Fairfield, MN 55000) That part of N.E. 1/4 of S.W. 1/4 desc. as follows: Beg. at the S.E. corner of said N.E. 1/4 of S.W. 1/4; thence N. along the E. line of said N.E. 1/4 of S.W. 1/4 a distance of 600 ft.; thence W. parallel with the S. line of said N.E. 1/4 of S.W. 1/4 a distance of 600 ft.; thence S. parallel with said E. line a distance of 600 ft. to S. line of said N.E. 1/4 of S.W. 1/4; thence E. along said S. line a distance of 600 ft. to the point of beg. 21 33211 3.15 362.20    As to platted property, the form of heading shall conform to circumstances and be 362.21substantially in the following form: 362.22City of (Smithtown) 362.23Brown's Addition, or Subdivision 362.24 362.25 362.26 362.27 362.28 362.29 362.30 362.31 Names (and Current Filed Addresses) for the Taxpayers and Fee Owners and in Addition Those Parties Who Have Filed Their Addresses Pursuant to section 276.041 Lot Block Tax Parcel Number Total Tax and Penalty 362.32 $ cts. 362.33 362.34 John Jones (825 Fremont Fairfield, MN 55000) 15 9 58243 2.20 362.35 362.36 362.37 362.38 362.39 Bruce Smith (2059 Hand Fairfield, MN 55000) and Fairfield State Bank (100 Main Street Fairfield, MN 55000) 16 9 58244 3.15 362.40    The names, descriptions, and figures employed in parentheses in the above forms are 362.41merely for purposes of illustration. 362.42    The name of the town, township, range or city, and addition or subdivision, as the 362.43case may be, shall be repeated at the head of each column of the printed lists as brought 362.44forward from the preceding column. 362.45    Errors in the list shall not be deemed to be a material defect to affect the validity 362.46of the judgment and sale. 363.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for lists and notices required after new text end 363.2 new text begin December 31, 2013. new text end 363.3    Sec. 14. Minnesota Statutes 2012, section 290B.04, subdivision 2, is amended to read: 363.4    Subd. 2. Approval; recording. The commissioner shall approve all initial 363.5applications that qualify under this chapter and shall notify qualifying homeowners on or 363.6before December 1. The commissioner may investigate the facts or require confirmation 363.7in regard to an application. The commissioner shall record or file a notice of qualification 363.8for deferral, including the names of the qualifying homeowners and a legal description 363.9of the property, in the office of the county recorder, or registrar of titles, whichever is 363.10applicable, in the county where the qualifying property is located. The notice must state 363.11that it serves as a notice of lien and that it includes deferrals under this section for future 363.12years. new text begin The commissioner shall prescribe the form of the notice. Execution of the notice new text end 363.13 new text begin by the original or facsimile signature of the commissioner or a delegate entitles them to new text end 363.14 new text begin be recorded, and no other attestation, certification, or acknowledgment is necessary. new text end The 363.15homeowner shall pay the recording or filing fees for the notice, which, notwithstanding 363.16section 357.18, shall be paid by the homeowner at the time of satisfaction of the lien. 363.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for notices that are both executed new text end 363.18 new text begin and recorded after June 30, 2013. new text end 363.19    Sec. 15. Minnesota Statutes 2012, section 298.01, subdivision 3, is amended to read: 363.20    Subd. 3. Occupation tax; other ores. Every person engaged in the business of 363.21mining, refining, or producing ores, metals, or minerals in this state, except iron ore or 363.22taconite concentrates, shall pay an occupation tax to the state of Minnesota as provided 363.23in this subdivision. For purposes of this subdivision, mining includes the application of 363.24hydrometallurgical processes. new text begin Hydrometallurgical processes are processes that extract new text end 363.25 new text begin the ores, metals, or minerals, by use of aqueous solutions that leach, concentrate, and new text end 363.26 new text begin recover the ore, metal, or mineral. new text end The tax is determined in the same manner as the tax 363.27imposed by section 290.02, except that sections 290.05, subdivision 1, clause (a), 290.17, 363.28subdivision 4 , and 290.191, subdivision 2, do not apply, and the occupation tax must 363.29be computed by applying to taxable income the rate of 2.45 percent. A person subject 363.30to occupation tax under this section shall apportion its net income on the basis of the 363.31percentage obtained by taking the sum of: 363.32    (1) 75 percent of the percentage which the sales made within this state in connection 363.33with the trade or business during the tax period are of the total sales wherever made in 363.34connection with the trade or business during the tax period; 364.1    (2) 12.5 percent of the percentage which the total tangible property used by the 364.2taxpayer in this state in connection with the trade or business during the tax period is of 364.3the total tangible property, wherever located, used by the taxpayer in connection with the 364.4trade or business during the tax period; and 364.5    (3) 12.5 percent of the percentage which the taxpayer's total payrolls paid or incurred 364.6in this state or paid in respect to labor performed in this state in connection with the trade 364.7or business during the tax period are of the taxpayer's total payrolls paid or incurred in 364.8connection with the trade or business during the tax period. 364.9    The tax is in addition to all other taxes. 364.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 364.11    Sec. 16. Minnesota Statutes 2012, section 298.018, is amended to read: 364.12298.018 DISTRIBUTION OF PROCEEDS. 364.13    Subdivision 1. Within taconite assistance area. The proceeds of the tax paid 364.14under sections 298.015 and 298.016 on new text begin ores, metals, or new text end minerals and energy resources 364.15 mined or extracted within the taconite assistance area defined in section 273.1341, shall 364.16be allocated as follows: 364.17    (1) five percent to the city or town within which the minerals or energy resources 364.18are mined or extracted; 364.19    (2) ten percent to the taconite municipal aid account to be distributed as provided 364.20in section 298.282; 364.21    (3) ten percent to the school district within which the minerals or energy resources 364.22are mined or extracted; 364.23    (4) 20 percent to a group of school districts comprised of those school districts 364.24wherein the mineral or energy resource was mined or extracted or in which there is a 364.25qualifying municipality as defined by section 273.134, paragraph (b), in direct proportion 364.26to school district indexes as follows: for each school district, its pupil units determined 364.27under section 126C.05 for the prior school year shall be multiplied by the ratio of the 364.28average adjusted net tax capacity per pupil unit for school districts receiving aid under 364.29this clause as calculated pursuant to chapters 122A, 126C, and 127A for the school year 364.30ending prior to distribution to the adjusted net tax capacity per pupil unit of the district. 364.31Each district shall receive that portion of the distribution which its index bears to the sum 364.32of the indices for all school districts that receive the distributions; 364.33    (5) 20 percent to the county within which the minerals or energy resources are 364.34mined or extracted; 365.1    (6) 20 percent to St. Louis County acting as the counties' fiscal agent to be 365.2distributed as provided in sections 273.134 to 273.136; 365.3    (7) five percent to the Iron Range Resources and Rehabilitation Board for the 365.4purposes of section 298.22; 365.5    (8) five percent to the Douglas J. Johnson economic protection trust fund; and 365.6    (9) five percent to the taconite environmental protection fund. 365.7    The proceeds of the tax shall be distributed on July 15 each year. 365.8    Subd. 2. Outside taconite assistance area. The proceeds of the tax paid under 365.9sections 298.015 and 298.016 on new text begin ores, metals, or new text end minerals and energy resources mined 365.10or extracted outside of the taconite assistance area defined in section 273.1341, shall 365.11be deposited in the general fund. 365.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 365.13    Sec. 17. Minnesota Statutes 2012, section 373.01, subdivision 1, is amended to read: 365.14    Subdivision 1. Public corporation; listed powers. (a) Each county is a body politic 365.15and corporate and may: 365.16    (1) Sue and be sued. 365.17    (2) Acquire and hold real and personal property for the use of the county, and lands 365.18sold for taxes as provided by law. 365.19    (3) Purchase and hold for the benefit of the county real estate sold by virtue of 365.20judicial proceedings, to which the county is a party. 365.21    (4) Sell, lease, and convey real or personal estate owned by the county, and give 365.22contracts or options to sell, lease, or convey it, and make orders respecting it as deemed 365.23conducive to the interests of the county's inhabitants. 365.24    (5) Make all contracts and do all other acts in relation to the property and concerns 365.25of the county necessary to the exercise of its corporate powers. 365.26    (b) No sale, lease, or conveyance of real estate owned by the county, except the lease 365.27of a residence acquired for the furtherance of an approved capital improvement project, nor 365.28any contract or option for it, shall be valid, without first advertising for bids or proposals in 365.29the official newspaper of the county for three consecutive weeks and once in a newspaper 365.30of general circulation in the area where the property is located. The notice shall state the 365.31time and place of considering the proposals, contain a legal description of any real estate, 365.32and a brief description of any personal property. Leases that do not exceed $15,000 for any 365.33one year may be negotiated and are not subject to the competitive bid procedures of this 365.34section. All proposals estimated to exceed $15,000 in any one year shall be considered at 366.1the time set for the bid opening, and the one most favorable to the county accepted, but the 366.2county board may, in the interest of the county, reject any or all proposals. 366.3    (c) Sales of personal property the value of which is estimated to be $15,000 or 366.4more shall be made only after advertising for bids or proposals in the county's official 366.5newspaper, on the county's Web site, or in a recognized industry trade journal. At the same 366.6time it posts on its Web site or publishes in a trade journal, the county must publish in the 366.7official newspaper, either as part of the minutes of a regular meeting of the county board 366.8or in a separate notice, a summary of all requests for bids or proposals that the county 366.9advertises on its Web site or in a trade journal. After publication in the official newspaper, 366.10on the Web site, or in a trade journal, bids or proposals may be solicited and accepted by 366.11the electronic selling process authorized in section 471.345, subdivision 17. Sales of 366.12personal property the value of which is estimated to be less than $15,000 may be made 366.13either on competitive bids or in the open market, in the discretion of the county board. 366.14"Web site" means a specific, addressable location provided on a server connected to the 366.15Internet and hosting World Wide Web pages and other files that are generally accessible 366.16on the Internet all or most of a day. 366.17    (d) Notwithstanding anything to the contrary herein, the county may, when acquiring 366.18real property for county highway right-of-way, exchange parcels of real property of 366.19substantially similar or equal value without advertising for bids. The estimated values for 366.20these parcels shall be determined by the county assessor. 366.21    (e) Notwithstanding anything in this section to the contrary, the county may, when 366.22acquiring real property for purposes other than county highway right-of-way, exchange 366.23parcels of real property of substantially similar or equal value without advertising for 366.24bids. The estimated values for these parcels must be determined by the county assessor 366.25or a private appraisal performed by a licensed Minnesota real estate appraiser. new text begin For the new text end 366.26 new text begin purpose of determining for the county the estimated values of parcels proposed to be new text end 366.27 new text begin exchanged, the county assessor need not be licensed under chapter 82B. new text end Before giving 366.28final approval to any exchange of land, the county board shall hold a public hearing on 366.29the exchange. At least two weeks before the hearing, the county auditor shall post a 366.30notice in the auditor's office and the official newspaper of the county of the hearing that 366.31contains a description of the lands affected. 366.32    (f) If real estate or personal property remains unsold after advertising for and 366.33consideration of bids or proposals the county may employ a broker to sell the property. 366.34The broker may sell the property for not less than 90 percent of its appraised market value 366.35as determined by the county. The broker's fee shall be set by agreement with the county but 366.36may not exceed ten percent of the sale price and must be paid from the proceeds of the sale. 367.1    (g) A county or its agent may rent a county-owned residence acquired for the 367.2furtherance of an approved capital improvement project subject to the conditions set 367.3by the county board and not subject to the conditions for lease otherwise provided by 367.4paragraph (a), clause (4), and paragraphs (b), (c), (d), (f), and (h). 367.5    (h) In no case shall lands be disposed of without there being reserved to the county 367.6all iron ore and other valuable minerals in and upon the lands, with right to explore for, 367.7mine and remove the iron ore and other valuable minerals, nor shall the minerals and 367.8mineral rights be disposed of, either before or after disposition of the surface rights, 367.9otherwise than by mining lease, in similar general form to that provided by section 93.20 367.10for mining leases affecting state lands. The lease shall be for a term not exceeding 50 367.11years, and be issued on a royalty basis, the royalty to be not less than 25 cents per ton of 367.122,240 pounds, and fix a minimum amount of royalty payable during each year, whether 367.13mineral is removed or not. Prospecting options for mining leases may be granted for 367.14periods not exceeding one year. The options shall require, among other things, periodical 367.15showings to the county board of the results of exploration work done. 367.16    (i) Notwithstanding anything in this subdivision to the contrary, the county may, 367.17when selling real property owned in fee simple that cannot be improved because of 367.18noncompliance with local ordinances regarding minimum area, shape, frontage, or access, 367.19proceed to sell the nonconforming parcel without advertising for bid. At the county's 367.20discretion, the real property may be restricted to sale to adjoining landowners or may be 367.21sold to any other interested party. The property shall be sold to the highest bidder, but in no 367.22case shall the property be sold for less than 90 percent of its fair market value as determined 367.23by the county assessor. All owners of land adjoining the land to be sold shall be given a 367.24written notice at least 30 days before the sale. This paragraph shall be liberally construed to 367.25encourage the sale of nonconforming real property and promote its return to the tax roles. 367.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 367.27    Sec. 18. new text begin REPEALER. new text end 367.28 new text begin Minnesota Statutes 2012, sections 272.69; and 273.11, subdivisions 1a and 22, new text end new text begin are new text end 367.29 new text begin repealed. new text end 367.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 367.31ARTICLE 18 367.32DEPARTMENT POLICY AND TECHNICAL: MISCELLANEOUS PROVISIONS 367.33    Section 1. Minnesota Statutes 2012, section 16A.46, is amended to read: 368.116A.46 LOST OR DESTROYED WARRANT DUPLICATE; INDEMNITY. 368.2     new text begin Subdivision 1. new text end new text begin Duplicate warrant. new text end The commissioner may issue a duplicate of an 368.3unpaid warrant to an owner if the owner certifies that the original was lost or destroyed. The 368.4commissioner may require certification be documented by affidavit. new text begin The commissioner new text end 368.5 new text begin may refuse to issue a duplicate of an unpaid state warrant. If the commissioner acts in new text end 368.6 new text begin good faith, the commissioner is not liable, whether the application is granted or denied. new text end 368.7     new text begin Subd. 2. new text end new text begin Original warrant is void. new text end When the duplicate is issued, the original is 368.8void. The commissioner may require an indemnity bond from the applicant to the state for 368.9double the amount of the warrant for anyone damaged by the issuance of the duplicate. 368.10The commissioner may refuse to issue a duplicate of an unpaid state warrant. If the 368.11commissioner acts in good faith the commissioner is not liable, whether the application is 368.12granted or denied new text begin is not liable to any holder who took the void original warrant for value, new text end 368.13 new text begin whether or not the commissioner required an indemnity bond from the applicant new text end . 368.14     new text begin Subd. 3. new text end new text begin Unpaid refund or rebate. new text end For an unpaid refund or rebate issued under a 368.15tax law administered by the commissioner of revenue that has been lost or destroyed, an 368.16affidavit is not required for the commissioner to issue a duplicate if the duplicate is issued 368.17to the same name and Social Security number as the original warrant and that information 368.18is verified on a tax return filed by the recipient. 368.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 368.20    Sec. 2. Minnesota Statutes 2012, section 270C.38, subdivision 1, is amended to read: 368.21    Subdivision 1. Sufficient notice. new text begin (a) new text end If no method of notification of a written 368.22determination or action of the commissioner is otherwise specifically provided for by 368.23law, notice of the determination or action sent postage prepaid by United States mail to 368.24the taxpayer or other person affected by the determination or action at the taxpayer's 368.25or person's last known address, is sufficient. If the taxpayer or person being notified is 368.26deceased or is under a legal disability, or, in the case of a corporation being notified that 368.27has terminated its existence, notice to the last known address of the taxpayer, person, or 368.28corporation is sufficient, unless the department has been provided with a new address by a 368.29party authorized to receive notices from the commissioner. 368.30 new text begin (b) If a taxpayer or other person agrees to accept notification by electronic means, new text end 368.31 new text begin notice of a determination or action of the commissioner sent by electronic mail to the new text end 368.32 new text begin taxpayer's or person's last known electronic mailing address as provided for in section new text end 368.33 new text begin 325L.08 is sufficient. new text end 368.34 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 369.1    Sec. 3. Minnesota Statutes 2012, section 270C.42, subdivision 2, is amended to read: 369.2    Subd. 2. Penalty for failure to pay electronically. In addition to other applicable 369.3penalties imposed by law, after notification from the commissioner to the taxpayer that 369.4payments for a tax payable to the commissioner are required to be made by electronic 369.5means, and the payments are remitted by some other means, there is a penalty in the 369.6amount of five percent of each payment that should have been remitted electronically. 369.7After the commissioner's initial notification to the taxpayer that payments are required to 369.8be made by electronic means, the commissioner is not required to notify the taxpayer in 369.9subsequent periods if the initial notification specified the amount of tax liability at which a 369.10taxpayer is required to remit payments by electronic means. The penalty can be abated 369.11under the abatement procedures prescribed in section 270C.34 if the failure to remit the 369.12payment electronically is due to reasonable cause. The penalty bears interest at the rate 369.13specified in section 270C.40 from the due date of the payment of the tax new text begin provided in new text end 369.14 new text begin section 270C.40, subdivision 3, new text end to the date of payment of the penalty. 369.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 369.16    Sec. 4. Minnesota Statutes 2012, section 287.385, subdivision 7, is amended to read: 369.17    Subd. 7. Interest on penalties. A penalty imposed under this chapter bears interest 369.18from the date payment was required to be paid, including any extensions, new text begin provided in new text end 369.19 new text begin section 270C.40, subdivision 3, new text end to the date of payment of the penalty. 369.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 369.21    Sec. 5. Minnesota Statutes 2012, section 289A.55, subdivision 9, is amended to read: 369.22    Subd. 9. Interest on penalties. (a) A penalty imposed under section 289A.60, 369.23subdivision 1 , 2, 2a, 4, 5, 6, or 21 bears interest from the date the return or payment 369.24was required to be filed or paid, including any extensions new text begin provided in section 270C.40, new text end 369.25 new text begin subdivision 3 new text end , to the date of payment of the penalty. 369.26(b) A penalty not included in paragraph (a) bears interest only if it is not paid within 369.2760 days from the date of notice. In that case interest is imposed from the date of notice 369.28to the date of payment. 369.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 369.30    Sec. 6. Minnesota Statutes 2012, section 289A.60, subdivision 4, is amended to read: 370.1    Subd. 4. Substantial understatement of liability; penalty. (a) The commissioner 370.2of revenue shall impose a penalty for substantial understatement of any tax payable to the 370.3commissioner, except a tax imposed under chapter 297A. 370.4(b) There must be added to the tax an amount equal to 20 percent of the amount of any 370.5underpayment attributable to the understatement. There is a substantial understatement of 370.6tax for the period if the amount of the understatement for the period exceeds the greater of: 370.7(1) ten percent of the tax required to be shown on the return for the period; or 370.8(2)(i) $10,000 in the case of a mining company or a corporation, other than an S 370.9corporation as defined in section 290.9725, when the tax is imposed by chapter 290 or 370.10section 298.01 or 298.015, or 370.11(ii) $5,000 in the case of any other taxpayer, and in the case of a mining company or 370.12a corporation any tax not imposed by chapter 290 or section 298.01 or 298.015. 370.13(c) For a corporation, other than an S corporation, there is also a substantial 370.14understatement of tax for any taxable year if the amount of the understatement for the 370.15taxable year exceeds the lesser of: 370.16(1) ten percent of the tax required to be shown on the return for the taxable year 370.17(or, if greater, $10,000); or 370.18(2) $10,000,000. 370.19(d) The term "understatement" means the excess of the amount of the tax required 370.20to be shown on the return for the period, over the amount of the tax imposed that is 370.21shown on the return. The excess must be determined without regard to items to which 370.22subdivision 27 applies. The amount of the understatement shall be reduced by that part of 370.23the understatement that is attributable to the tax treatment of any item by the taxpayer if 370.24(1) there is or was substantial authority for the treatment, or (2)(i) any item with respect to 370.25which the relevant facts affecting the item's tax treatment are adequately disclosed in the 370.26return or in a statement attached to the return and (ii) there is a reasonable basis for the tax 370.27treatment of the item. The exception for substantial authority under clause (1) does not 370.28apply to positions listed by the Secretary of the Treasury under section 6662(d)(3) of the 370.29Internal Revenue Code. A corporation does not have a reasonable basis for its tax treatment 370.30of an item attributable to a multiple-party financing transaction if the treatment does not 370.31clearly reflect the income of the corporation within the meaning of section 6662(d)(2)(B) 370.32of the Internal Revenue Code. The special rules in cases involving tax shelters provided in 370.33section 6662(d)(2)(C) of the Internal Revenue Code shall apply and shall apply to a tax 370.34shelter the principal purpose of which is the avoidance or evasion of state taxes. 370.35(e) The commissioner may abate all or any part of the addition to the tax provided 370.36by this section on a showing by the taxpayer that there was reasonable cause for the 371.1understatement, or part of it, and that the taxpayer acted in good faith. The additional tax 371.2and penalty shall bear interest at the rate new text begin as new text end specified in section 270C.40 from the time 371.3the tax should have been paid until paid. 371.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 371.5    Sec. 7. Minnesota Statutes 2012, section 296A.01, subdivision 7, is amended to read: 371.6    Subd. 7. Aviation gasoline. "Aviation gasoline" means any gasoline that is 371.7capable of use for the purpose of producing or generating power for propelling internal 371.8combustion engine aircraft, that meets the specifications in ASTM specification D910-07a 371.9 new text begin D910-11 new text end , and that either: 371.10    (1) is invoiced and billed by a producer, manufacturer, refiner, or blender to a 371.11distributor or dealer, by a distributor to a dealer or consumer, or by a dealer to consumer, 371.12as "aviation gasoline"; or 371.13    (2) whether or not invoiced and billed as provided in clause (1), is received, sold, 371.14stored, or withdrawn from storage by any person, to be used for the purpose of producing 371.15or generating power for propelling internal combustion engine aircraft. 371.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 371.17    Sec. 8. Minnesota Statutes 2012, section 296A.01, subdivision 8, is amended to read: 371.18    Subd. 8. Aviation turbine fuel and jet fuel. "Aviation turbine fuel" and "jet 371.19fuel" mean blends of hydrocarbons derived from crude petroleum, natural gasoline, and 371.20synthetic hydrocarbons, intended for use in aviation turbine engines, and that meet the 371.21specifications in ASTM specification D1655-08a new text begin D1655-12 new text end . 371.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 371.23    Sec. 9. Minnesota Statutes 2012, section 296A.01, is amended by adding a subdivision 371.24to read: 371.25     new text begin Subd. 8b. new text end new text begin Biobutanol. new text end new text begin "Biobutanol" means isobutyl alcohol produced by new text end 371.26 new text begin fermenting agriculturally generated organic material that is to be blended with gasoline new text end 371.27 new text begin and meets either: new text end 371.28     new text begin (1) the initial ASTM Standard Specification for Butanol for Blending with Gasoline new text end 371.29 new text begin for use as an Automotive Spark-Ignition Engine Fuel once it has been released by ASTM new text end 371.30 new text begin for general distribution; or new text end 371.31     new text begin (2) in the absence of an ASTM Standard Specification, the following list of new text end 371.32 new text begin requirements: new text end 372.1     new text begin (i) visually free of sediment and suspended matter; new text end 372.2     new text begin (ii) clear and bright at the ambient temperature of 21 degrees Celsius or the ambient new text end 372.3 new text begin temperature whichever is higher; new text end 372.4     new text begin (iii) free of any adulterant or contaminant that can render it unacceptable for its new text end 372.5 new text begin commonly used applications; new text end 372.6     new text begin (iv) contains not less than 96 volume percent isobutyl alcohol; new text end 372.7     new text begin (v) contains not more than 0.4 volume percent methanol; new text end 372.8     new text begin (vi) contains not more than 1.0 volume percent water as determined by ASTM new text end 372.9 new text begin standard test method E203 or E1064; new text end 372.10     new text begin (vii) acidity (as acetic acid) of not more than 0.007 mass percent as determined new text end 372.11 new text begin by ASTM standard test method D1613; new text end 372.12     new text begin (viii) solvent washed gum content of not more than 5.0 milligrams per 100 milliliters new text end 372.13 new text begin as determined by ASTM standard test method D381; new text end 372.14     new text begin (ix) sulfur content of not more than 30 parts per million as determined by ASTM new text end 372.15 new text begin standard test method D2622 or D5453; and new text end 372.16     new text begin (x) contains not more than 4 parts per million total inorganic sulfate. new text end 372.17    Sec. 10. Minnesota Statutes 2012, section 296A.01, subdivision 14, is amended to read: 372.18    Subd. 14. Diesel fuel oil. "Diesel fuel oil" means a petroleum distillate or blend of 372.19petroleum distillate and residual fuels that is intended for use as a motor fuel in internal 372.20combustion diesel engines and that meets ASTM specification D975-07b new text begin D975-11b new text end . 372.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 372.22    Sec. 11. Minnesota Statutes 2012, section 296A.01, subdivision 19, is amended to read: 372.23    Subd. 19. E85. "E85" means a petroleum product that is a blend of agriculturally 372.24derived denatured ethanol and gasoline or natural gasoline that typically contains new text begin not more new text end 372.25 new text begin than new text end 85 percent ethanol by volume, but at a minimum must contain 60 new text begin greater than 50 new text end 372.26 percent ethanol by volume. For the purposes of this chapter, the energy content of E85 372.27will be considered to be 82,000 BTUs per gallon. E85 produced for use as a motor fuel in 372.28alternative fuel vehicles as defined in subdivision 5 must comply with ASTM specification 372.29D5798-07 new text begin D5798-11 new text end . 372.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 372.31    Sec. 12. Minnesota Statutes 2012, section 296A.01, subdivision 20, is amended to read: 373.1    Subd. 20. Ethanol, denatured. "Ethanol, denatured" means ethanol that is to 373.2be blended with gasoline, has been agriculturally derived, and complies with ASTM 373.3specification D4806-08 new text begin D4806-11a new text end . This includes the requirement that ethanol may be 373.4denatured only as specified in Code of Federal Regulations, title 27, parts 20 and 21. 373.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 373.6    Sec. 13. Minnesota Statutes 2012, section 296A.01, subdivision 23, is amended to read: 373.7    Subd. 23. Gasoline. (a) "Gasoline" means: 373.8    (1) all products commonly or commercially known or sold as gasoline regardless of 373.9their classification or uses, except casinghead gasoline, absorption gasoline, condensation 373.10gasoline, drip gasoline, or natural gasoline that under the requirements of section 239.761, 373.11subdivision 3 , must not be blended with gasoline that has been sold, transferred, or 373.12otherwise removed from a refinery or terminal; and 373.13    (2) any liquid prepared, advertised, offered for sale or sold for use as, or commonly 373.14and commercially used as, a fuel in spark-ignition, internal combustion engines, and that 373.15when tested by the Weights and Measures Division meets the specifications in ASTM 373.16specification D4814-08b new text begin D4814-11b new text end . 373.17    (b) Gasoline that is not blended with ethanol must not be contaminated with water or 373.18other impurities and must comply with both ASTM specification D4814-08b new text begin D4814-11b new text end 373.19 and the volatility requirements in Code of Federal Regulations, title 40, part 80. 373.20    (c) After gasoline is sold, transferred, or otherwise removed from a refinery or 373.21terminal, a person responsible for the product: 373.22    (1) may blend the gasoline with agriculturally derived ethanol, as provided in 373.23subdivision 24; 373.24    (2) must not blend the gasoline with any oxygenate other than denatured, 373.25agriculturally derived ethanol; 373.26    (3) must not blend the gasoline with other petroleum products that are not gasoline 373.27or denatured, agriculturally derived ethanol; 373.28    (4) must not blend the gasoline with products commonly and commercially known 373.29as casinghead gasoline, absorption gasoline, condensation gasoline, drip gasoline, or 373.30natural gasoline; and 373.31    (5) may blend the gasoline with a detergent additive, an antiknock additive, or an 373.32additive designed to replace tetra-ethyl lead, that is registered by the EPA. 373.33 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 374.1    Sec. 14. Minnesota Statutes 2012, section 296A.01, subdivision 24, is amended to read: 374.2    Subd. 24. Gasoline blended with nonethanol oxygenate. "Gasoline blended with 374.3nonethanol oxygenate" means gasoline blended with ETBE, MTBE, or other alcohol 374.4or ether, except denatured ethanol, that is approved as an oxygenate by the EPA, and 374.5that complies with ASTM specification D4814-08b new text begin D4814-11b new text end . Oxygenates, other than 374.6denatured ethanol, must not be blended into gasoline after the gasoline has been sold, 374.7transferred, or otherwise removed from a refinery or terminal. 374.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 374.9    Sec. 15. Minnesota Statutes 2012, section 296A.01, subdivision 26, is amended to read: 374.10    Subd. 26. Heating fuel oil. "Heating fuel oil" means a petroleum distillate, blend 374.11of petroleum distillates and residuals, or petroleum residual heating fuel that meets the 374.12specifications in ASTM specification D396-08b new text begin D396-12 new text end . 374.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 374.14    Sec. 16. Minnesota Statutes 2012, section 296A.22, subdivision 1, is amended to read: 374.15    Subdivision 1. Penalty for failure to pay tax, general rule. Upon the failure of 374.16any person to pay any tax or fee when due, a penalty of one percent per day for the first 374.17ten days of delinquency shall accrue, and thereafter the tax, fees, and penalty shall bear 374.18interest at the rate specified in section 270C.40 new text begin until paid new text end . 374.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 374.20    Sec. 17. Minnesota Statutes 2012, section 296A.22, subdivision 3, is amended to read: 374.21    Subd. 3. Operating without license. If any person operates as a distributor, special 374.22fuel dealer, bulk purchaser, or motor carrier without first securing the license required 374.23under this chapter, any tax or fee imposed by this chapter shall become immediately due 374.24and payable. A penalty of 25 percent is imposed upon the tax and fee due. The tax, new text begin and new text end 374.25 fees, and penalty shall bear interest at the rate specified in section 270C.40. new text begin The penalty new text end 374.26 new text begin imposed in this subdivision shall bear interest from the date provided in section 270C.40, new text end 374.27 new text begin subdivision 3, to the date of payment of the penalty. new text end 374.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 374.29    Sec. 18. Minnesota Statutes 2012, section 297B.11, is amended to read: 375.1297B.11 REGISTRAR AS AGENT OF COMMISSIONER OF REVENUE; 375.2POWERS. 375.3The state commissioner of revenue is charged with the administration of the 375.4sales tax on motor vehicles. The commissioner may prescribe all rules not inconsistent 375.5with the provisions of this chapter, necessary and advisable for the proper and efficient 375.6administration of the law. The collection of this sales tax on motor vehicles shall be 375.7carried out by the motor vehicle registrar who shall act as the agent of the commissioner 375.8and who shall be subject to all rules not inconsistent with the provisions of this chapter, 375.9that may be prescribed by the commissioner. 375.10The provisions of chapters 270C, 289A, and 297A relating to the commissioner's 375.11authority to audit, assess, and collect the tax, and to issue refunds and to hear appeals, 375.12are applicable to the sales tax on motor vehicles. The commissioner may impose civil 375.13penalties as provided in chapters 289A and 297A, and the additional tax and penalties 375.14are subject to interest at the rate provided in section 270C.40 new text begin from the date provided in new text end 375.15 new text begin section 270C.40, subdivision 3, until paid new text end . 375.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 375.17    Sec. 19. Minnesota Statutes 2012, section 297E.14, subdivision 7, is amended to read: 375.18    Subd. 7. Interest on penalties. (a) A penalty imposed under section 297E.12, 375.19subdivision 1 , 2, 3, 4, or 5, bears interest from the date the return or payment was required 375.20to be filed or paid, including any extensions new text begin provided in section 270C.40, subdivision new text end 375.21 new text begin 3 new text end , to the date of payment of the penalty. 375.22(b) A penalty not included in paragraph (a) bears interest only if it is not paid within 375.23ten days from the date of notice. In that case interest is imposed from the date of notice 375.24to the date of payment. 375.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 375.26    Sec. 20. Minnesota Statutes 2012, section 297F.09, subdivision 9, is amended to read: 375.27    Subd. 9. Interest. The amount of tax not timely paid, together with any penalty 375.28imposed in this section, bears interest at the rate specified in section 270C.40 from the 375.29time such tax should have been paid until paid. new text begin The penalty imposed in this section bears new text end 375.30 new text begin interest at the rate specified in section 270C.40 from the date provided in section 270C.40, new text end 375.31 new text begin subdivision 3, to the date of payment of the penalty. new text end Any interest and penalty is added to 375.32the tax and collected as a part of it. 375.33 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 376.1    Sec. 21. Minnesota Statutes 2012, section 297F.18, subdivision 7, is amended to read: 376.2    Subd. 7. Interest on penalties. (a) A penalty imposed under section 297F.19, 376.3subdivisions 2 to 7, bears interest from the date the return or payment was required to be 376.4filed or paid, including any extensions new text begin provided in section 270C.40, subdivision 3 new text end , to the 376.5date of payment of the penalty. 376.6(b) A penalty not included in paragraph (a) bears interest only if it is not paid within 376.7ten days from the date of the notice. In that case interest is imposed from the date of notice 376.8to the date of payment. 376.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 376.10    Sec. 22. Minnesota Statutes 2012, section 297G.09, subdivision 8, is amended to read: 376.11    Subd. 8. Interest. The amount of tax not timely paid, together with any penalty 376.12imposed by this chapter, bears interest at the rate specified in section 270C.40 from the 376.13time the tax should have been paid until paid. new text begin Any penalty imposed by this chapter bears new text end 376.14 new text begin interest from the date provided in section 270C.40, subdivision 3, to the date of payment new text end 376.15 new text begin of the penalty. new text end Any interest and penalty is added to the tax and collected as a part of it. 376.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 376.17    Sec. 23. Minnesota Statutes 2012, section 297G.17, subdivision 7, is amended to read: 376.18    Subd. 7. Interest on penalties. (a) A penalty imposed under section 297G.18, 376.19subdivisions 2 to 7, bears interest from the date the return or payment was required to be 376.20filed or paid, including any extensions new text begin provided in section 270C.40, subdivision 3 new text end , to the 376.21date of payment of the penalty. 376.22(b) A penalty not included in paragraph (a) bears interest only if it is not paid within 376.23ten days from the date of the notice. In that case interest is imposed from the date of notice 376.24to the date of payment. 376.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 376.26    Sec. 24. Minnesota Statutes 2012, section 297I.80, subdivision 1, is amended to read: 376.27    Subdivision 1. Payable to commissioner. (a) When interest is required under this 376.28section, interest is computed at the rate specified in section 270C.40. 376.29(b) If a tax or surcharge is not paid within the time named by law for payment, the 376.30unpaid tax or surcharge bears interest from the date the tax or surcharge should have been 376.31paid until the date the tax or surcharge is paid. 377.1(c) Whenever a taxpayer is liable for additional tax or surcharge because of a 377.2redetermination by the commissioner or other reason, the additional tax or surcharge 377.3bears interest from the time the tax or surcharge should have been paid until the date the 377.4tax or surcharge is paid. 377.5(d) A penalty bears interest from the date the return or payment was required to be 377.6filed or paid new text begin provided in section 270C.40, subdivision 3, new text end to the date of payment of the 377.7penalty. 377.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 377.9    Sec. 25. Minnesota Statutes 2012, section 469.319, subdivision 4, is amended to read: 377.10    Subd. 4. Repayment procedures. (a) For the repayment of taxes imposed under 377.11chapter 290 or 297A or local taxes collected pursuant to section 297A.99, a business must 377.12file an amended return with the commissioner of revenue and pay any taxes required 377.13to be repaid within 30 days after becoming subject to repayment under this section. 377.14The amount required to be repaid is determined by calculating the tax for the period or 377.15periods for which repayment is required without regard to the exemptions and credits 377.16allowed under section 469.315. 377.17    (b) For the repayment of taxes imposed under chapter 297B, a business must pay any 377.18taxes required to be repaid to the motor vehicle registrar, as agent for the commissioner of 377.19revenue, within 30 days after becoming subject to repayment under this section. 377.20    (c) For the repayment of property taxes, the county auditor shall prepare a tax 377.21statement for the business, applying the applicable tax extension rates for each payable 377.22year and provide a copy to the business and to the taxpayer of record. The business must 377.23pay the taxes to the county treasurer within 30 days after receipt of the tax statement. The 377.24business or the taxpayer of record may appeal the valuation and determination of the 377.25property tax to the Tax Court within 30 days after receipt of the tax statement. 377.26    (d) The provisions of chapters 270C and 289A relating to the commissioner's 377.27authority to audit, assess, and collect the tax and to hear appeals are applicable to the 377.28repayment required under paragraphs (a) and (b). The commissioner may impose civil 377.29penalties as provided in chapter 289A, and the additional tax and penalties are subject 377.30to interest at the rate provided in section 270C.40, new text begin . The additional tax shall bear interest new text end 377.31 from 30 days after becoming subject to repayment under this section until the date the 377.32tax is paid. new text begin Any penalty imposed pursuant to this section shall bear interest from the date new text end 377.33 new text begin provided in section 270C.40, subdivision 3, to the date of payment of the penalty. new text end 377.34    (e) If a property tax is not repaid under paragraph (c), the county treasurer shall 377.35add the amount required to be repaid to the property taxes assessed against the property 378.1for payment in the year following the year in which the auditor provided the statement 378.2under paragraph (c). 378.3    (f) For determining the tax required to be repaid, a reduction of a state or local sales or 378.4use tax is deemed to have been received on the date that the good or service was purchased 378.5or first put to a taxable use. In the case of an income tax or franchise tax, including the 378.6credit payable under section 469.318, a reduction of tax is deemed to have been received 378.7for the two most recent tax years that have ended prior to the date that the business became 378.8subject to repayment under this section. In the case of a property tax, a reduction of tax is 378.9deemed to have been received for the taxes payable in the year that the business became 378.10subject to repayment under this section and for the taxes payable in the prior year. 378.11    (g) The commissioner may assess the repayment of taxes under paragraph (d) any 378.12time within two years after the business becomes subject to repayment under subdivision 378.131, or within any period of limitations for the assessment of tax under section 289A.38, 378.14whichever period is later. The county auditor may send the statement under paragraph 378.15(c) any time within three years after the business becomes subject to repayment under 378.16subdivision 1. 378.17    (h) A business is not entitled to any income tax or franchise tax benefits, including 378.18refundable credits, for any part of the year in which the business becomes subject to 378.19repayment under this section nor for any year thereafter. Property is not exempt from tax 378.20under section 272.02, subdivision 64, for any taxes payable in the year following the year 378.21in which the property became subject to repayment under this section nor for any year 378.22thereafter. A business is not eligible for any sales tax benefits beginning with goods 378.23or services purchased or first put to a taxable use on the day that the business becomes 378.24subject to repayment under this section. 378.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 378.26    Sec. 26. Minnesota Statutes 2012, section 469.340, subdivision 4, is amended to read: 378.27    Subd. 4. Repayment procedures. (a) For the repayment of taxes imposed under 378.28chapter 290 or 297A or local taxes collected pursuant to section 297A.99, a business must 378.29file an amended return with the commissioner of revenue and pay any taxes required to be 378.30repaid within 30 days after ceasing to do business in the zone. The amount required to be 378.31repaid is determined by calculating the tax for the period or periods for which repayment 378.32is required without regard to the exemptions and credits allowed under section 469.336. 378.33(b) For the repayment of property taxes, the county auditor shall prepare a tax 378.34statement for the business, applying the applicable tax extension rates for each payable 378.35year and provide a copy to the business. The business must pay the taxes to the county 379.1treasurer within 30 days after receipt of the tax statement. The taxpayer may appeal the 379.2valuation and determination of the property tax to the Tax Court within 30 days after 379.3receipt of the tax statement. 379.4(c) The provisions of chapters 270C and 289A relating to the commissioner's 379.5authority to audit, assess, and collect the tax and to hear appeals are applicable to the 379.6repayment required under paragraph (a). The commissioner may impose civil penalties as 379.7provided in chapter 289A, and the additional tax and penalties are subject to interest at the 379.8rate provided in section 270C.40, new text begin . The additional tax shall bear interest new text end from 30 days after 379.9ceasing to do business in the biotechnology and health sciences industry zone until the 379.10date the tax is paid. new text begin Any penalty imposed pursuant to this section shall bear interest from new text end 379.11 new text begin the date provided in section 270C.40, subdivision 3, to the date of payment of the penalty. new text end 379.12(d) If a property tax is not repaid under paragraph (b), the county treasurer shall add 379.13the amount required to be repaid to the property taxes assessed against the property for 379.14payment in the year following the year in which the treasurer discovers that the business 379.15ceased to operate in the biotechnology and health sciences industry zone. 379.16(e) For determining the tax required to be repaid, a tax reduction is deemed to have 379.17been received on the date that the tax would have been due if the taxpayer had not been 379.18entitled to the exemption, or on the date a refund was issued for a refundable credit. 379.19(f) The commissioner may assess the repayment of taxes under paragraph (c) any 379.20time within two years after the business ceases to operate in the biotechnology and health 379.21sciences industry zone, or within any period of limitations for the assessment of tax under 379.22section 289A.38, whichever period is later. 379.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end " 379.24Delete the title and insert: 379.25"A bill for an act 379.26relating to financing and operation of state and local government; making 379.27changes to individual income, corporate franchise, property, sales and use, 379.28estate, mineral, tobacco, alcohol, special, local, and other taxes and tax-related 379.29provisions modifying the property tax refund; changing property tax aids and 379.30credits; modifying the Sustainable Forest Incentive Act; modifying education 379.31aids and levies; providing additional pension funding; modifying definitions and 379.32distributions for property taxes; providing for property tax exemptions; modifying 379.33the payment in lieu of tax provisions; modifying education aids and levies; 379.34modifying tobacco tax provisions; making changes to additions and subtractions 379.35from federal taxable income; providing for federal conformity; changing income 379.36tax rates for individuals, estates, and trusts; providing income tax credits; 379.37modifying estate tax provisions; providing for a state gift tax; expanding the sales 379.38tax base; modifying the duty to collect and remit sales taxes for certain sellers; 379.39imposing the sales tax on digital products and selected services; modifying the 379.40definition of sale and purchase; modifying provisions for the rental motor vehicle 379.41tax rate; providing for multiple points of use certificates; modifying sales tax 379.42exemptions; authorizing local sales taxes; authorizing economic development 380.1powers; modifying tax increment financing rules; providing authority, 380.2organization, powers, duties, and requiring a prevailing wage for development 380.3of a Destination Medical Center; authorizing state infrastructure aid; modifying 380.4the distribution of taconite production taxes; authorizing taconite production tax 380.5bonds for grants to school districts; modifying and providing provisions for 380.6public finance; providing funding for legislative office facilities; modifying the 380.7definition of market value for tax, debt, and other purposes; making conforming, 380.8policy, and technical changes to tax provisions; requiring studies and reports; 380.9appropriating money;amending Minnesota Statutes 2012, sections 13.792; 380.1016A.46; 16A.727; 38.18; 40A.15, subdivision 2; 69.011, subdivision 1; 69.021, 380.11subdivisions 7, 8; 88.51, subdivision 3; 103B.102, subdivision 3; 103B.245, 380.12subdivision 3; 103B.251, subdivision 8; 103B.335; 103B.3369, subdivision 5; 380.13103B.635, subdivision 2; 103B.691, subdivision 2; 103C.501, subdivision 4; 380.14103D.905, subdivisions 2, 3, 8; 103F.405, subdivision 1; 116J.8737, subdivisions 380.151, 2, 8; 117.025, subdivision 7; 118A.04, subdivision 3; 118A.05, subdivision 380.165; 123A.455, subdivision 1; 126C.10, subdivision 1, by adding a subdivision; 380.17126C.13, subdivision 4; 126C.17; 126C.48, subdivision 8; 127A.48, subdivision 380.181; 138.053; 144F.01, subdivision 4; 162.07, subdivisions 3, 4; 163.04, subdivision 380.193; 163.06, subdivision 6; 165.10, subdivision 1; 168.012, subdivision 9, by 380.20adding a subdivision; 216C.436, subdivision 7; 237.52, subdivision 3, by adding 380.21a subdivision; 270.077; 270.41, subdivisions 3, 5, by adding a subdivision; 380.22270.45; 270B.01, subdivision 8; 270B.03, subdivision 1; 270B.12, subdivision 380.234; 270C.03, subdivision 1; 270C.34, subdivision 1; 270C.38, subdivision 1; 380.24270C.42, subdivision 2; 270C.56, subdivision 1; 271.06, subdivision 2a, as added; 380.25272.01, subdivision 2; 272.02, subdivisions 39, 97, by adding subdivisions; 380.26272.03, subdivision 9, by adding subdivisions; 273.032; 273.061, subdivision 380.272; 273.0645; 273.11, subdivision 1; 273.114, subdivision 6; 273.117; 273.124, 380.28subdivisions 3a, 13; 273.13, subdivisions 21b, 23, 25; 273.1398, subdivisions 3, 380.294; 273.19, subdivision 1; 273.372, subdivision 4; 273.39; 275.011, subdivision 1; 380.30275.077, subdivision 2; 275.71, subdivision 4; 276.04, subdivision 2; 276A.01, 380.31subdivisions 10, 12, 13, 15; 276A.06, subdivision 10; 279.01, subdivision 1, by 380.32adding a subdivision; 279.02; 279.06, subdivision 1; 279.37, subdivisions 1a, 2; 380.33281.14; 281.17; 287.05, by adding a subdivision; 287.08; 287.20, by adding a 380.34subdivision; 287.23, subdivision 1; 287.385, subdivision 7; 289A.08, subdivision 380.353; 289A.10, subdivision 1, by adding a subdivision; 289A.12, subdivision 14, by 380.36adding a subdivision; 289A.18, by adding a subdivision; 289A.20, subdivisions 380.373, 4, by adding a subdivision; 289A.26, subdivisions 3, 4, 7, 9; 289A.55, 380.38subdivision 9; 289A.60, subdivision 4; 290.01, subdivisions 19, as amended, 380.3919b, 19c, 19d; 290.06, subdivisions 2c, 2d, by adding a subdivision; 290.0677, 380.40subdivision 2; 290.068, subdivisions 3, 6a; 290.0681, subdivisions 1, 3, 4, 5, 10; 380.41290.091, subdivisions 1, 2, 6; 290.0921, subdivision 3; 290.0922, subdivision 1; 380.42290.095, subdivision 2; 290.10, subdivision 1; 290.17, subdivision 4; 290.191, 380.43subdivision 5; 290.21, subdivision 4; 290.9705, subdivision 1; 290A.03, 380.44subdivision 3; 290A.04, subdivisions 2, 2a, 4; 290B.04, subdivision 2; 290C.02, 380.45subdivision 6; 290C.03; 290C.055; 290C.07; 291.005, subdivision 1; 291.03, 380.46subdivisions 1, 8, 9, 10, 11, by adding a subdivision; 296A.01, subdivisions 7, 8, 380.4714, 19, 20, 23, 24, 26, by adding a subdivision; 296A.09, subdivision 2; 296A.17, 380.48subdivision 3; 296A.22, subdivisions 1, 3; 297A.61, subdivisions 3, 4, 10, 25, 380.4938, 45, by adding subdivisions; 297A.64, subdivision 1; 297A.66, subdivision 380.503, by adding a subdivision; 297A.665; 297A.668, by adding a subdivision; 380.51297A.67, subdivisions 7, 13, by adding a subdivision; 297A.68, subdivisions 380.522, 5, 42, by adding a subdivision; 297A.70, subdivisions 2, 4, 5, 7, 13, 14, by 380.53adding subdivisions; 297A.71, by adding subdivisions; 297A.75, subdivisions 380.541, 2, 3; 297A.82, subdivision 4, by adding a subdivision; 297A.99, subdivision 380.551; 297B.11; 297E.021, subdivision 3; 297E.14, subdivision 7; 297F.01, 380.56subdivisions 3, 19, 23, by adding subdivisions; 297F.05, subdivisions 1, 3, 4, by 380.57adding subdivisions; 297F.09, subdivision 9; 297F.18, subdivision 7; 297F.24, 380.58subdivision 1; 297F.25, subdivision 1; 297G.04, subdivision 2; 297G.09, 381.1subdivision 8; 297G.17, subdivision 7; 297I.05, subdivisions 7, 11, 12; 297I.30, 381.2subdivisions 1, 2; 297I.80, subdivision 1; 298.01, subdivisions 3, 3b; 298.018; 381.3298.17; 298.227, as amended; 298.24, subdivision 1; 298.28, subdivisions 4, 6, 381.49c, 10; 325D.32, subdivision 2; 325F.781, subdivision 1; 349.166, subdivision 381.51; 353G.08, subdivision 2; 360.531; 360.66; 365.025, subdivision 4; 366.095, 381.6subdivision 1; 366.27; 368.01, subdivision 23; 368.47; 370.01; 373.01, 381.7subdivisions 1, 3; 373.40, subdivisions 1, 2, 4; 375.167, subdivision 1; 375.18, 381.8subdivision 3; 375.555; 383A.80, subdivision 4; 383B.152; 383B.245; 383B.73, 381.9subdivision 1; 383B.80, subdivision 4; 383D.41, by adding a subdivision; 381.10383E.20; 383E.23; 385.31; 394.36, subdivision 1; 398A.04, subdivision 8; 381.11401.05, subdivision 3; 403.02, subdivision 21, by adding subdivisions; 403.06, 381.12subdivision 1a; 403.11, subdivision 1, by adding subdivisions; 410.32; 412.221, 381.13subdivision 2; 412.301; 428A.02, subdivision 1; 428A.101; 428A.21; 430.102, 381.14subdivision 2; 447.10; 450.19; 450.25; 458A.10; 458A.31, subdivision 1; 465.04; 381.15469.033, subdivision 6; 469.034, subdivision 2; 469.053, subdivisions 4, 4a, 6; 381.16469.071, subdivision 5; 469.107, subdivision 1; 469.169, by adding a subdivision; 381.17469.176, subdivisions 4c, 4g, 6; 469.177, subdivisions 1a, 9, by adding 381.18subdivisions; 469.180, subdivision 2; 469.187; 469.206; 469.319, subdivision 381.194; 469.340, subdivision 4; 471.24; 471.571, subdivisions 1, 2; 471.73; 473.325, 381.20subdivision 2; 473.39, by adding a subdivision; 473.606, subdivision 3; 473.629; 381.21473.661, subdivision 3; 473.667, subdivision 9; 473.671; 473.711, subdivision 381.222a; 473F.02, subdivisions 12, 14, 15, 23; 473F.08, subdivisions 3a, 10, by adding 381.23a subdivision; 474A.04, subdivision 1a; 474A.062; 474A.091, subdivision 3a; 381.24475.521, subdivisions 1, 2, 4; 475.53, subdivisions 1, 3, 4; 475.58, subdivisions 381.252, 3b; 475.73, subdivision 1; 477A.011, subdivisions 20, 30, 34, 42, by adding 381.26subdivisions; 477A.0124, subdivision 2; 477A.013, subdivisions 1, 8, 9, by 381.27adding a subdivision; 477A.015; 477A.03, subdivisions 2a, 2b, by adding a 381.28subdivision; 477A.11, subdivisions 3, 4, by adding subdivisions; 477A.12, 381.29subdivisions 1, 2, 3; 477A.14, subdivision 1, by adding a subdivision; 641.23; 381.30641.24; 645.44, by adding a subdivision; Laws 1971, chapter 773, section 1, 381.31subdivision 2, as amended; Laws 1988, chapter 645, section 3, as amended; 381.32Laws 1993, chapter 375, article 9, section 46, subdivisions 2, as amended, 5, as 381.33amended; Laws 1998, chapter 389, article 8, section 43, subdivisions 1, 3, as 381.34amended, 5, as amended; Laws 1999, chapter 243, article 6, section 11; Laws 381.352002, chapter 377, article 3, section 25, as amended; Laws 2005, First Special 381.36Session chapter 3, article 5, section 37, subdivisions 2, 4; Laws 2006, chapter 381.37259, article 11, section 3, as amended; Laws 2008, chapter 366, article 5, sections 381.3826; 33; 34, as amended; article 7, section 19, subdivision 3, as amended; Laws 381.392009, chapter 88, article 2, section 46, subdivisions 1, 3; Laws 2010, chapter 216, 381.40sections 11; 55; Laws 2010, chapter 389, article 1, section 12; article 5, section 6, 381.41subdivision 6; proposing coding for new law in Minnesota Statutes, chapters 116J; 381.42116V; 124D; 136A; 270C; 287; 290A; 292; 403; 423A; 469; 477A; repealing 381.43Minnesota Statutes 2012, sections 16A.725; 97A.061; 256.9658; 272.69; 273.11, 381.44subdivisions 1a, 22; 276A.01, subdivision 11; 289A.60, subdivision 31; 290.01, 381.45subdivision 6b; 290.06, subdivision 22a; 290.0921, subdivision 7; 290.171; 381.46290.173; 290.174; 297A.61, subdivision 27; 297A.68, subdivision 35; 473F.02, 381.47subdivision 13; 477A.011, subdivisions 2a, 19, 21, 29, 31, 32, 33, 36, 39, 40, 41; 381.48477A.013, subdivisions 11, 12; 477A.0133; 477A.0134; Laws 1973, chapter 567, 381.49section 7, as amended; Laws 2009, chapter 88, article 4, section 23, as amended." 382.1 We request the adoption of this report and repassage of the bill. 382.2 House Conferees: 382.3 ..... ..... 382.4 Ann Lenczewski Jim Davnie 382.5 ..... ..... 382.6 Tom Anzelc John Benson 382.7 ..... 382.8 Kim Norton 382.9 Senate Conferees: 382.10 ..... ..... 382.11 Rod Skoe Ann H. Rest 382.12 ..... ..... 382.13 Kari Dziedzic Lyle Koenen 382.14 ..... 382.15 David H. Senjem