<a id="pl.1.3"></a><var>1.3</var>changes to individual income, corporate franchise, property, sales and use, <br/>
<a id="pl.1.4"></a><var>1.4</var>estate, mineral, tobacco, local, and other taxes and tax-related provisions; <br/>
<a id="pl.1.5"></a><var>1.5</var>modifying the property tax refund for renters; changing property tax aids <br/>
<a id="pl.1.6"></a><var>1.6</var>and credits; modifying pension aids; providing pension funding; changing <br/>
<a id="pl.1.7"></a><var>1.7</var>provisions of the Sustainable Forest Incentive Act; modifying definitions and <br/>
<a id="pl.1.8"></a><var>1.8</var>distributions for property taxes; providing exemptions; modifying education <br/>
<a id="pl.1.9"></a><var>1.9</var>aids and levies; imposing a sports memorabilia gross receipts tax; changing tax <br/>
<a id="pl.1.10"></a><var>1.10</var>rates on tobacco; providing reimbursement for certain property tax abatements; <br/>
<a id="pl.1.11"></a><var>1.11</var>modifying the small business investment tax credit; making changes to <br/>
<a id="pl.1.12"></a><var>1.12</var>additions and subtractions from federal taxable income; changing rates for <br/>
<a id="pl.1.13"></a><var>1.13</var>individuals, estates, and trusts; providing income tax credits; modifying estate <br/>
<a id="pl.1.14"></a><var>1.14</var>tax exclusions for qualifying small business and farm property; expanding the <br/>
<a id="pl.1.15"></a><var>1.15</var>sales tax base and reducing the sales tax rate; modifying the definition of sale <br/>
<a id="pl.1.16"></a><var>1.16</var>and purchase; changing the tax rate and modifying provisions for the rental <br/>
<a id="pl.1.17"></a><var>1.17</var>motor vehicle tax; providing for multiple points of use certificates; modifying <br/>
<a id="pl.1.18"></a><var>1.18</var>exemptions; authorizing local sales taxes; authorizing economic development <br/>
<a id="pl.1.19"></a><var>1.19</var>powers; providing authority, organization, powers, and duties for development <br/>
<a id="pl.1.20"></a><var>1.20</var>of a Destination Medical Center; authorizing state infrastructure aid; modifying <br/>
<a id="pl.1.21"></a><var>1.21</var>the distribution of taconite production taxes; authorizing taconite production <br/>
<a id="pl.1.22"></a><var>1.22</var>tax bonds for grants to school districts; modifying and providing provisions <br/>
<a id="pl.1.23"></a><var>1.23</var>for public finance; providing funding for capitol renovations; modifying the <br/>
<a id="pl.1.24"></a><var>1.24</var>definition of market value for tax, debt, and other purposes; making conforming, <br/>
<a id="pl.1.25"></a><var>1.25</var>policy, and technical changes to tax provisions; requiring studies and reports; <br/>
<a id="pl.1.26"></a><var>1.26</var>appropriating money;amending Minnesota Statutes 2012, sections 13.4965, <br/>
<a id="pl.1.27"></a><var>1.27</var>subdivision 3; 16A.46; 16C.03, subdivision 18; 38.18; 40A.15, subdivision 2; <br/>
<a id="pl.1.28"></a><var>1.28</var>69.011, subdivision 1; 69.021, subdivisions 7, 8, by adding a subdivision; 88.51, <br/>
<a id="pl.1.29"></a><var>1.29</var>subdivision 3; 103B.102, subdivision 3; 103B.245, subdivision 3; 103B.251, <br/>
<a id="pl.1.30"></a><var>1.30</var>subdivision 8; 103B.335; 103B.3369, subdivision 5; 103B.635, subdivision <br/>
<a id="pl.1.31"></a><var>1.31</var>2; 103B.691, subdivision 2; 103C.501, subdivision 4; 103D.905, subdivisions <br/>
<a id="pl.1.32"></a><var>1.32</var>2, 3, 8; 103F.405, subdivision 1; 116J.8737, subdivisions 1, 2, 5, 7, 9, 12, by <br/>
<a id="pl.1.33"></a><var>1.33</var>adding a subdivision; 117.025, subdivision 7; 118A.04, subdivision 3; 118A.05, <br/>
<a id="pl.1.34"></a><var>1.34</var>subdivision 5; 123A.455, subdivision 1; 124D.11, subdivision 1; 126C.10, <br/>
<a id="pl.1.35"></a><var>1.35</var>subdivisions 1, 27, by adding subdivisions; 126C.13, subdivision 4, by adding <br/>
<a id="pl.1.36"></a><var>1.36</var>a subdivision; 126C.17; 126C.48, subdivision 8; 127A.48, subdivision 1; <br/>
<a id="pl.1.37"></a><var>1.37</var>138.053; 144F.01, subdivision 4; 162.07, subdivisions 3, 4; 163.04, subdivision <br/>
<a id="pl.1.38"></a><var>1.38</var>3; 163.06, subdivision 6; 165.10, subdivision 1; 168.012, subdivision 9, <br/>
<a id="pl.1.39"></a><var>1.39</var>by adding a subdivision; 237.52, subdivision 3, by adding a subdivision; <br/>
<a id="pl.2.1"></a><var>2.1</var>270.077; 270.41, subdivision 5; 270B.01, subdivision 8; 270B.12, subdivision <br/>
<a id="pl.2.2"></a><var>2.2</var>4; 270C.03, subdivision 1; 270C.34, subdivision 1; 270C.38, subdivision 1; <br/>
<a id="pl.2.3"></a><var>2.3</var>270C.42, subdivision 2; 270C.56, subdivision 1; 272.01, subdivision 2; 272.02, <br/>
<a id="pl.2.4"></a><var>2.4</var>subdivisions 10, 97, by adding subdivisions; 272.025, subdivision 1; 272.03, <br/>
<a id="pl.2.5"></a><var>2.5</var>subdivision 9, by adding subdivisions; 273.032; 273.11, subdivision 1; 273.114, <br/>
<a id="pl.2.6"></a><var>2.6</var>subdivision 6; 273.117; 273.124, subdivisions 3a, 13, 14, 21; 273.128, by adding <br/>
<a id="pl.2.7"></a><var>2.7</var>a subdivision; 273.13, subdivisions 21b, 23, 25; 273.1315, subdivisions 1, 2; <br/>
<a id="pl.2.8"></a><var>2.8</var>273.1398, subdivisions 3, 4; 273.19, subdivision 1; 273.372, subdivision 4; <br/>
<a id="pl.2.9"></a><var>2.9</var>273.39; 275.011, subdivision 1; 275.025, subdivisions 1, 2; 275.077, subdivision <br/>
<a id="pl.2.10"></a><var>2.10</var>2; 275.71, subdivision 4; 276.04, subdivision 2; 276A.01, subdivisions 10, 12, <br/>
<a id="pl.2.11"></a><var>2.11</var>13, 15; 276A.06, subdivision 10; 279.06, subdivision 1; 279.37, subdivisions 1a, <br/>
<a id="pl.2.12"></a><var>2.12</var>2; 281.14; 281.17; 287.05, by adding a subdivision; 287.08; 287.20, by adding a <br/>
<a id="pl.2.13"></a><var>2.13</var>subdivision; 287.23, subdivision 1; 287.385, subdivision 7; 289A.08, subdivision <br/>
<a id="pl.2.14"></a><var>2.14</var>3; 289A.10, by adding a subdivision; 289A.12, subdivision 14, by adding a <br/>
<a id="pl.2.15"></a><var>2.15</var>subdivision; 289A.18, by adding a subdivision; 289A.20, subdivisions 3, 4, by <br/>
<a id="pl.2.16"></a><var>2.16</var>adding a subdivision; 289A.26, subdivisions 3, 4, 7, 9; 289A.55, subdivision 9; <br/>
<a id="pl.2.17"></a><var>2.17</var>289A.60, subdivision 4; 290.01, subdivisions 19b, 19c, 19d; 290.06, subdivisions <br/>
<a id="pl.2.18"></a><var>2.18</var>1, 2c, 2d, by adding a subdivision; 290.0677, subdivisions 1, 1a, 2; 290.068, <br/>
<a id="pl.2.19"></a><var>2.19</var>subdivision 1; 290.0681, subdivisions 1, 3, 4, 5, 7, 10; 290.091, subdivision 2; <br/>
<a id="pl.2.20"></a><var>2.20</var>290.0921, subdivisions 1, 3; 290.0922, subdivision 1; 290.095, subdivision 2; <br/>
<a id="pl.2.21"></a><var>2.21</var>290.17, subdivision 4; 290.191, subdivision 5; 290.21, subdivision 4; 290.9705, <br/>
<a id="pl.2.22"></a><var>2.22</var>subdivision 1; 290A.03, subdivision 3; 290A.04, subdivisions 2a, 4; 290A.25; <br/>
<a id="pl.2.23"></a><var>2.23</var>290B.04, subdivision 2; 290C.02, subdivision 6; 290C.03; 290C.055; 290C.07; <br/>
<a id="pl.2.24"></a><var>2.24</var>291.03, subdivisions 8, 9, 10, 11; 296A.01, subdivision 19; 296A.09, subdivision <br/>
<a id="pl.2.25"></a><var>2.25</var>2; 296A.17, subdivision 3; 296A.22, subdivisions 1, 3; 297A.61, subdivisions <br/>
<a id="pl.2.26"></a><var>2.26</var>3, 4, 10, 17a, 25, 38, 45, by adding subdivisions; 297A.62, subdivisions 1, 1a; <br/>
<a id="pl.2.27"></a><var>2.27</var>297A.64, subdivision 1; 297A.65; 297A.66, subdivisions 1, 3, by adding a <br/>
<a id="pl.2.28"></a><var>2.28</var>subdivision; 297A.665; 297A.668, by adding a subdivision; 297A.67, subdivision <br/>
<a id="pl.2.29"></a><var>2.29</var>7, by adding a subdivision; 297A.68, subdivisions 2, 5, 10, 42, by adding a <br/>
<a id="pl.2.30"></a><var>2.30</var>subdivision; 297A.70, subdivisions 2, 4, 5, 7, 13, 14, by adding subdivisions; <br/>
<a id="pl.2.31"></a><var>2.31</var>297A.71, by adding subdivisions; 297A.75, subdivisions 1, 2, 3; 297A.815, <br/>
<a id="pl.2.32"></a><var>2.32</var>subdivision 3; 297A.82, subdivision 4, by adding a subdivision; 297A.99, <br/>
<a id="pl.2.33"></a><var>2.33</var>subdivision 1; 297B.11; 297E.02, subdivisions 1, 6; 297E.14, subdivision 7; <br/>
<a id="pl.2.34"></a><var>2.34</var>297F.01, subdivisions 19, 23, by adding subdivisions; 297F.05, subdivisions <br/>
<a id="pl.2.35"></a><var>2.35</var>1, 3, 4, by adding subdivisions; 297F.09, subdivision 9; 297F.18, subdivision <br/>
<a id="pl.2.36"></a><var>2.36</var>7; 297F.24, subdivision 1; 297F.25, subdivision 1; 297G.04, subdivision 2; <br/>
<a id="pl.2.37"></a><var>2.37</var>297G.09, subdivision 8; 297G.17, subdivision 7; 297I.05, subdivisions 7, 11, <br/>
<a id="pl.2.38"></a><var>2.38</var>12; 297I.30, subdivisions 1, 2; 297I.80, subdivision 1; 298.01, subdivisions <br/>
<a id="pl.2.39"></a><var>2.39</var>3, 3b; 298.018; 298.17; 298.227, as amended; 298.24, subdivision 1; 298.28, <br/>
<a id="pl.2.40"></a><var>2.40</var>subdivisions 4, 6; 325F.781, subdivision 1; 349.166, subdivision 1; 353G.08, <br/>
<a id="pl.2.41"></a><var>2.41</var>subdivision 2; 360.531; 360.66; 365.025, subdivision 4; 366.095, subdivision <br/>
<a id="pl.2.42"></a><var>2.42</var>1; 366.27; 368.01, subdivision 23; 368.47; 370.01; 373.01, subdivision 1; <br/>
<a id="pl.2.43"></a><var>2.43</var>373.40, subdivisions 1, 2, 4; 375.167, subdivision 1; 375.18, subdivision 3; <br/>
<a id="pl.2.44"></a><var>2.44</var>375.555; 383A.80, subdivision 4; 383B.152; 383B.245; 383B.73, subdivision 1; <br/>
<a id="pl.2.45"></a><var>2.45</var>383B.80, subdivision 4; 383D.41, by adding a subdivision; 383E.20; 383E.23; <br/>
<a id="pl.2.46"></a><var>2.46</var>385.31; 394.36, subdivision 1; 398A.04, subdivision 8; 401.05, subdivision 3; <br/>
<a id="pl.2.47"></a><var>2.47</var>403.02, subdivision 21, by adding subdivisions; 403.06, subdivision 1a; 403.11, <br/>
<a id="pl.2.48"></a><var>2.48</var>subdivision 1, by adding a subdivision; 410.32; 412.221, subdivision 2; 412.301; <br/>
<a id="pl.2.49"></a><var>2.49</var>428A.02, subdivision 1; 428A.101; 428A.21; 430.102, subdivision 2; 435.19, <br/>
<a id="pl.2.50"></a><var>2.50</var>subdivision 2, by adding a subdivision; 447.10; 450.19; 450.25; 458A.10; <br/>
<a id="pl.2.51"></a><var>2.51</var>458A.31, subdivision 1; 465.04; 469.033, subdivision 6; 469.034, subdivision 2; <br/>
<a id="pl.2.52"></a><var>2.52</var>469.053, subdivisions 4, 4a, 6; 469.107, subdivision 1; 469.174, subdivision 2, <br/>
<a id="pl.2.53"></a><var>2.53</var>by adding subdivisions; 469.175, subdivision 3; 469.176, subdivisions 1b, 4b, 4c, <br/>
<a id="pl.2.54"></a><var>2.54</var>4m, 6, by adding a subdivision; 469.1763, subdivisions 3, 4; 469.177, subdivision <br/>
<a id="pl.2.55"></a><var>2.55</var>1a; 469.180, subdivision 2; 469.187; 469.206; 469.319, subdivision 4; 469.340, <br/>
<a id="pl.2.56"></a><var>2.56</var>subdivision 4; 471.24; 471.571, subdivisions 1, 2; 471.73; 473.325, subdivision 2; <br/>
<a id="pl.2.57"></a><var>2.57</var>473.606, subdivision 3; 473.629; 473.661, subdivision 3; 473.667, subdivision 9; <br/>
<a id="pl.2.58"></a><var>2.58</var>473.671; 473.711, subdivision 2a; 473F.02, subdivisions 12, 14, 15, 23; 473F.08, <br/>
<a id="pl.3.1"></a><var>3.1</var>subdivision 10, by adding a subdivision; 474A.04, subdivision 1a; 474A.062; <br/>
<a id="pl.3.2"></a><var>3.2</var>474A.091, subdivision 3a; 475.521, subdivisions 1, 2, 4; 475.53, subdivisions 1, <br/>
<a id="pl.3.3"></a><var>3.3</var>3, 4; 475.58, subdivisions 2, 3b; 475.73, subdivision 1; 477A.011, subdivisions <br/>
<a id="pl.3.4"></a><var>3.4</var>20, 30, 34, 42, by adding subdivisions; 477A.0124, subdivision 2; 477A.013, <br/>
<a id="pl.3.5"></a><var>3.5</var>subdivisions 1, 8, 9, by adding a subdivision; 477A.03, subdivisions 2a, 2b, <br/>
<a id="pl.3.6"></a><var>3.6</var>by adding a subdivision; 477A.11, subdivisions 3, 4, by adding subdivisions; <br/>
<a id="pl.3.7"></a><var>3.7</var>477A.12, subdivisions 1, 2, 3; 477A.14, subdivision 1, by adding a subdivision; <br/>
<a id="pl.3.8"></a><var>3.8</var>641.23; 641.24; 645.44, by adding a subdivision; Laws 1971, chapter 773, section <br/>
<a id="pl.3.9"></a><var>3.9</var>1, subdivision 2, as amended; Laws 1988, chapter 645, section 3, as amended; <br/>
<a id="pl.3.10"></a><var>3.10</var>Laws 1993, chapter 375, article 9, section 46, subdivisions 2, as amended, 5, as <br/>
<a id="pl.3.11"></a><var>3.11</var>amended; Laws 1998, chapter 389, article 8, section 43, subdivisions 1, 3, as <br/>
<a id="pl.3.12"></a><var>3.12</var>amended, 5, as amended; Laws 1999, chapter 243, article 6, section 11; Laws <br/>
<a id="pl.3.13"></a><var>3.13</var>2002, chapter 377, article 3, section 25, as amended; Laws 2005, First Special <br/>
<a id="pl.3.14"></a><var>3.14</var>Session chapter 3, article 5, section 37, subdivisions 2, 4; Laws 2006, chapter <br/>
<a id="pl.3.15"></a><var>3.15</var>259, article 11, section 3, as amended; Laws 2008, chapter 366, article 5, sections <br/>
<a id="pl.3.16"></a><var>3.16</var>26; 33; 34, as amended; article 7, section 19, subdivision 3, as amended; Laws <br/>
<a id="pl.3.17"></a><var>3.17</var>2009, chapter 88, article 2, section 46, subdivisions 1, 3; Laws 2010, chapter <br/>
<a id="pl.3.18"></a><var>3.18</var>216, sections 11; 55; Laws 2010, chapter 389, article 1, section 12; proposing <br/>
<a id="pl.3.19"></a><var>3.19</var>coding for new law in Minnesota Statutes, chapters 116J; 124D; 136A; 270C; <br/>
<a id="pl.3.20"></a><var>3.20</var>273; 287; 290; 295; 403; 469; 477A; repealing Minnesota Statutes 2012, sections <br/>
<a id="pl.3.21"></a><var>3.21</var>16A.725; 256.9658; 272.69; 273.11, subdivisions 1a, 22; 275.025, subdivision <br/>
<a id="pl.3.22"></a><var>3.22</var>4; 276A.01, subdivision 11; 289A.60, subdivision 31; 290.01, subdivision 6b; <br/>
<a id="pl.3.23"></a><var>3.23</var>290.0921, subdivision 7; 290.171; 290.173; 290.174; 297A.61, subdivision 27; <br/>
<a id="pl.3.24"></a><var>3.24</var>297A.66, subdivision 4; 297A.67, subdivision 8; 297A.68, subdivisions 9, 22, <br/>
<a id="pl.3.25"></a><var>3.25</var>35; 473F.02, subdivision 13; 477A.011, subdivisions 2a, 19, 21, 29, 31, 32, 33, <br/>
<a id="pl.3.26"></a><var>3.26</var>36, 39, 40, 41; 477A.013, subdivisions 11, 12; 477A.0133; 477A.0134.<br/>
<a id="pl.3.27"></a><var>3.27</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.1.0.0"></a>

<a id="bill.1.1.0"></a><a id="pl.3.30"></a><var>3.30</var>    Section 1. Minnesota Statutes 2012, section 69.021, is amended by adding a <br/>
<a id="pl.3.31"></a><var>3.31</var>subdivision to read:<br/>
<a id="pl.3.32"></a><var>3.32</var>    Subd. 12. <b>Pension aid accounts.</b> (a) $745,000 is appropriated from the general <br/>
<a id="pl.3.33"></a><var>3.33</var>fund, in fiscal year 2015 and each year thereafter, to the commissioner of revenue for the <br/>
<a id="pl.3.34"></a><var>3.34</var>purposes of pension aid. The commissioner shall administer the account and allocate <br/>
<a id="pl.3.35"></a><var>3.35</var>money in the account as follows:<br/>
<a id="pl.3.36"></a><var>3.36</var>(1) $130,065 as supplemental state pension funding paid to the executive director of <br/>
<a id="pl.3.37"></a><var>3.37</var>the Public Employees Retirement Association for deposit in the public employees police <br/>
<a id="pl.3.38"></a><var>3.38</var>and fire retirement fund established by section 353.65, subdivision 1;<br/>
<a id="pl.3.39"></a><var>3.39</var>(2) $64,935 to municipalities employing firefighters with retirement coverage by the <br/>
<a id="pl.3.40"></a><var>3.40</var>public employees police and fire retirement plan, allocated in proportion to the relationship <br/>
<a id="pl.3.41"></a><var>3.41</var>that the preceding June 30 number of firefighters employed by each municipality who have <br/>
<a id="pl.3.42"></a><var>3.42</var>public employees police and fire retirement plan coverage bears to the total preceding <br/>
<a id="pl.3.43"></a><var>3.43</var>June 30 number of municipal firefighters covered by the public employees police and <br/>
<a id="pl.3.44"></a><var>3.44</var>fire retirement plan; and<br/>
<a id="pl.4.1"></a><var>4.1</var>(3) $550,000 for municipalities other than the municipalities receiving a <br/>
<a id="pl.4.2"></a><var>4.2</var>disbursement under clause (2) which qualified to receive fire state aid in that calendar year, <br/>
<a id="pl.4.3"></a><var>4.3</var>allocated in proportion to the most recent amount of fire state aid paid under subdivision 7 <br/>
<a id="pl.4.4"></a><var>4.4</var>for the municipality bears to the most recent total fire state aid for all municipalities other <br/>
<a id="pl.4.5"></a><var>4.5</var>than the municipalities receiving a disbursement under clause (2) paid under subdivision <br/>
<a id="pl.4.6"></a><var>4.6</var>7, with the allocated amount for fire departments participating in the voluntary statewide <br/>
<a id="pl.4.7"></a><var>4.7</var>lump-sum volunteer firefighter retirement plan paid to the executive director of the Public <br/>
<a id="pl.4.8"></a><var>4.8</var>Employees Retirement Association for deposit in the fund established by section 353G.02, <br/>
<a id="pl.4.9"></a><var>4.9</var>subdivision 3, and credited to the respective account and with the balance paid to the <br/>
<a id="pl.4.10"></a><var>4.10</var>treasurer of each municipality for transmittal within 30 days of receipt to the treasurer of <br/>
<a id="pl.4.11"></a><var>4.11</var>the applicable volunteer firefighter relief association for deposit in its special fund.<br/>
<a id="pl.4.12"></a><var>4.12</var>(b) $1,550,00 is appropriated from the general fund in fiscal year 2015 to the <br/>
<a id="pl.4.13"></a><var>4.13</var>commissioner of revenue for the purposes of pension aid. The commissioner shall <br/>
<a id="pl.4.14"></a><var>4.14</var>administer the account and allocate money in the account as follows:<br/>
<a id="pl.4.15"></a><var>4.15</var>(1) one-third to be distributed as police state aid as provided under subdivision 7a; and<br/>
<a id="pl.4.16"></a><var>4.16</var>(2) two-thirds to be apportioned, on the basis of the number of active police officers <br/>
<a id="pl.4.17"></a><var>4.17</var>certified for police state aid receipt under section 69.011, subdivisions 2 and 2b, between:<br/>
<a id="pl.4.18"></a><var>4.18</var>(i) the executive director of the Public Employees Retirement Association for <br/>
<a id="pl.4.19"></a><var>4.19</var>deposit as a supplemental state pension funding aid in the public employees police and fire <br/>
<a id="pl.4.20"></a><var>4.20</var>retirement fund established by section 353.65, subdivision 1; and<br/>
<a id="pl.4.21"></a><var>4.21</var>(ii) the executive director of the Minnesota State Retirement System for deposit as a <br/>
<a id="pl.4.22"></a><var>4.22</var>supplemental state pension funding aid in the state patrol retirement fund.<br/>
<a id="pl.4.23"></a><var>4.23</var>(c) On or before September 1, annually, the executive director of the Public <br/>
<a id="pl.4.24"></a><var>4.24</var>Employees Retirement Association shall report to the commissioner the following:<br/>
<a id="pl.4.25"></a><var>4.25</var>(1) the municipalities which employ firefighters with retirement coverage by the <br/>
<a id="pl.4.26"></a><var>4.26</var>public employees police and fire retirement plan;<br/>
<a id="pl.4.27"></a><var>4.27</var>(2) the number of firefighters with public employees police and fire retirement plan <br/>
<a id="pl.4.28"></a><var>4.28</var>employed by each municipality;<br/>
<a id="pl.4.29"></a><var>4.29</var>(3) the fire departments covered by the voluntary statewide lump-sum volunteer <br/>
<a id="pl.4.30"></a><var>4.30</var>firefighter retirement plan; and<br/>
<a id="pl.4.31"></a><var>4.31</var>(4) any other information requested by the commissioner to administer the surcharge <br/>
<a id="pl.4.32"></a><var>4.32</var>fire pension aid account.<br/>
<a id="pl.4.33"></a><var>4.33</var>(d) For this subdivision, (i) the number of firefighters employed by a municipality <br/>
<a id="pl.4.34"></a><var>4.34</var>who have public employees police and fire retirement plan coverage means the number <br/>
<a id="pl.4.35"></a><var>4.35</var>of firefighters with public employees police and fire retirement plan coverage that were <br/>
<a id="pl.4.36"></a><var>4.36</var>employed by the municipality for not less than 30 hours per week for a minimum of six <br/>
<a id="pl.5.1"></a><var>5.1</var>months prior to December 31 preceding the date of the payment under this section and, if <br/>
<a id="pl.5.2"></a><var>5.2</var>the person was employed for less than the full year, prorated to the number of full months <br/>
<a id="pl.5.3"></a><var>5.3</var>employed; and, (ii) the number of active police officers certified for police state aid receipt <br/>
<a id="pl.5.4"></a><var>5.4</var>under section 69.011, subdivisions 2 and 2b means, for each municipality, the number of <br/>
<a id="pl.5.5"></a><var>5.5</var>police officers meeting the definition of peace officer in section 69.011, subdivision 1, <br/>
<a id="pl.5.6"></a><var>5.6</var>counted as provided and limited by section 69.011, subdivisions 2 and 2b.<br/>
<a id="pl.5.7"></a><var>5.7</var>(e) The payments under this section shall be made on October 1 each year, based on <br/>
<a id="pl.5.8"></a><var>5.8</var>the amount in the temporary fire pension aid account and the amount in the temporary <br/>
<a id="pl.5.9"></a><var>5.9</var>police pension aid account on the preceding June 30, with interest at 1 percent for each <br/>
<a id="pl.5.10"></a><var>5.10</var>month, or portion of a month, that the amount remains unpaid after October 1. The <br/>
<a id="pl.5.11"></a><var>5.11</var>amounts necessary to make the payments under this subdivision are annually appropriated <br/>
<a id="pl.5.12"></a><var>5.12</var>to the commissioner from the temporary fire and police pension aid accounts. Any <br/>
<a id="pl.5.13"></a><var>5.13</var>necessary adjustments shall be made to subsequent payments.<br/>
<a id="pl.5.14"></a><var>5.14</var>(f) The provisions of this chapter that prevent municipalities and relief associations <br/>
<a id="pl.5.15"></a><var>5.15</var>from being eligible for, or receiving state aid under this chapter until the applicable <br/>
<a id="pl.5.16"></a><var>5.16</var>financial reporting requirements have been complied with, apply to the amounts payable <br/>
<a id="pl.5.17"></a><var>5.17</var>to municipalities and relief associations under this subdivision.<br/>
<a id="pl.5.18"></a><var>5.18</var>(g) The appropriations in paragraphs (a) and (b) end on (i) December 31, 2020, or <br/>
<a id="pl.5.19"></a><var>5.19</var>(ii), if earlier, on the December 31 next following the actuarial valuation date on which the <br/>
<a id="pl.5.20"></a><var>5.20</var>assets of the retirement plan on a market value equals or exceeds 90 percent of the total <br/>
<a id="pl.5.21"></a><var>5.21</var>actuarial accrued liabilities of the retirement plan as disclosed in an actuarial valuation <br/>
<a id="pl.5.22"></a><var>5.22</var>prepared under Minnesota Statutes, section 356.215, and the Standards for Actuarial Work <br/>
<a id="pl.5.23"></a><var>5.23</var>promulgated by the Legislative Commission on Pensions and Retirement, for the State <br/>
<a id="pl.5.24"></a><var>5.24</var>Patrol retirement plan or the public employees police and fire retirement plan, whichever <br/>
<a id="pl.5.25"></a><var>5.25</var>occurs last.<br/>
<a id="pl.5.26"></a><var>5.26</var>(h) The base for fiscal year 2016 and thereafter under paragraph (a) is $7,450,000 <br/>
<a id="pl.5.27"></a><var>5.27</var>and the distribution in clauses (1) to (3) are adjusted accordingly. The base for fiscal year <br/>
<a id="pl.5.28"></a><var>5.28</var>2016 and thereafter, under paragraph (b), is $15,500,000.<br/>
<a id="pl.5.29"></a><var>5.29</var><b>EFFECTIVE DATE.</b>This section is effective beginning in the fiscal year beginning <br/>
<a id="pl.5.30"></a><var>5.30</var>July 1, 2014.<br/>
<br/>
<a id="bill.1.2.0"></a><a id="pl.5.31"></a><var>5.31</var>    Sec. 2. Minnesota Statutes 2012, section 477A.011, subdivision 30, is amended to read:<br/>
<a id="pl.5.32"></a><var>5.32</var>    Subd. 30. <b>Pre-1940 housing percentage.</b> (a) Except as provided in paragraph (b), <br/>
<a id="pl.5.33"></a><var>5.33</var>"pre-1940 housing percentage" for a city is 100 times the most recent federal census count <br/>
<a id="pl.5.34"></a><var>5.34</var>by the United States Bureau of the Census of all housing units in the city built before <br/>
<a id="pl.6.1"></a><var>6.1</var>1940, divided by the total number of all housing units in the city. Housing units includes <br/>
<a id="pl.6.2"></a><var>6.2</var>both occupied and vacant housing units as defined by the federal census.<br/>
<a id="pl.6.3"></a><var>6.3</var>(b) For the city of East Grand Forks only, "pre-1940 housing percentage" is equal <br/>
<a id="pl.6.4"></a><var>6.4</var>to 100 times the 1990 federal census count of all housing units in the city built before <br/>
<a id="pl.6.5"></a><var>6.5</var>1940, divided by the most recent counts by the United States Bureau of the Census of all <br/>
<a id="pl.6.6"></a><var>6.6</var>housing units in the city. Housing units includes both occupied and vacant housing units <br/>
<a id="pl.6.7"></a><var>6.7</var>as defined by the federal census.<br/>
<a id="pl.6.8"></a><var>6.8</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.6.9"></a><var>6.9</var>2014 and thereafter.<br/>
<br/>
<a id="bill.1.3.0"></a><a id="pl.6.10"></a><var>6.10</var>    Sec. 3. Minnesota Statutes 2012, section 477A.011, is amended by adding a <br/>
<a id="pl.6.11"></a><var>6.11</var>subdivision to read:<br/>
<a id="pl.6.12"></a><var>6.12</var>    Subd. 30a. <b>Percent of housing built between 1940 and 1970.</b> "Percent of housing <br/>
<a id="pl.6.13"></a><var>6.13</var>built between 1940 and 1970" is equal to 100 times the most recent count by the United <br/>
<a id="pl.6.14"></a><var>6.14</var>States Bureau of the Census of all housing units in the city built after 1939 but before <br/>
<a id="pl.6.15"></a><var>6.15</var>1970, divided by the total number of all housing units in the city. Housing units includes <br/>
<a id="pl.6.16"></a><var>6.16</var>both occupied and vacant housing units as defined by the federal census.<br/>
<a id="pl.6.17"></a><var>6.17</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.6.18"></a><var>6.18</var>2014 and thereafter.<br/>
<br/>
<a id="bill.1.4.0"></a><a id="pl.6.19"></a><var>6.19</var>    Sec. 4. Minnesota Statutes 2012, section 477A.011, subdivision 34, is amended to read:<br/>
<a id="pl.6.20"></a><var>6.20</var>    Subd. 34. <b>City revenue need.</b> (a) For a city with a population equal to or greater <br/>
<a id="pl.6.21"></a><var>6.21</var>than 2,500 10,000, "city revenue need" is the greater of 285 or 1.15 times the sum of (1) <br/>
<a id="pl.6.22"></a><var>6.22</var>5.0734098 4.59 times the pre-1940 housing percentage; plus (2) 19.141678 times the <br/>
<a id="pl.6.23"></a><var>6.23</var>population decline percentage 0.622 times the percent of housing built between 1940 and <br/>
<a id="pl.6.24"></a><var>6.24</var>1970; plus (3) 2504.06334 times the road accidents factor 169.415 times the jobs per <br/>
<a id="pl.6.25"></a><var>6.25</var>capita; plus (4) 
         <statute_ref>355.0547</statute_ref>; minus (5) the metropolitan area factor; minus (6) 49.10638 <br/>
<a id="pl.6.26"></a><var>6.26</var>times the household size the sparsity adjustment, plus (5) 307.664.<br/>
<a id="pl.6.27"></a><var>6.27</var>    (b) For a city with a population equal to or greater than 2,500 and less than 10,000, <br/>
<a id="pl.6.28"></a><var>6.28</var>"city revenue need" is 1.15 times the sum of (1) 572.62; plus (2) 5.026 times the pre-1940 <br/>
<a id="pl.6.29"></a><var>6.29</var>housing percentage; minus (3) 53.768 times household size; plus (4) 14.022 times peak <br/>
<a id="pl.6.30"></a><var>6.30</var>population decline.<br/>
<a id="pl.6.31"></a><var>6.31</var>    (b) (c) For a city with a population less than 2,500, "city revenue need" is the sum of <br/>
<a id="pl.6.32"></a><var>6.32</var>(1) 
<statute_ref>2.387</statute_ref> times the pre-1940 housing percentage; plus (2) 2.67591 times the commercial <br/>
<a id="pl.6.33"></a><var>6.33</var>industrial percentage; plus (3) 3.16042 times the population decline percentage; plus (4) <br/>
<a id="pl.7.1"></a><var>7.1</var><statute_ref>1.206</statute_ref> times the transformed population; minus (5) 
<statute_ref>62.772</statute_ref> 410 plus 0.367 times the city's <br/>
<a id="pl.7.2"></a><var>7.2</var>population over 100. The city revenue need under this paragraph shall not exceed 630.<br/>
<a id="pl.7.3"></a><var>7.3</var>    (c) (d) For a city with a population of at least 2,500 or more and a population in one <br/>
<a id="pl.7.4"></a><var>7.4</var>of the most recently available five years that was less than 2,500, "city revenue need" <br/>
<a id="pl.7.5"></a><var>7.5</var>is the sum of (1) its city revenue need calculated under paragraph (a) multiplied by its <br/>
<a id="pl.7.6"></a><var>7.6</var>transition factor; plus (2) its city revenue need calculated under the formula in paragraph <br/>
<a id="pl.7.7"></a><var>7.7</var>(b) multiplied by the difference between one and its transition factor. For purposes of this <br/>
<a id="pl.7.8"></a><var>7.8</var>paragraph, a city's "transition factor" is equal to 0.2 multiplied by the number of years that <br/>
<a id="pl.7.9"></a><var>7.9</var>the city's population estimate has been 2,500 or more. This provision only applies for aids <br/>
<a id="pl.7.10"></a><var>7.10</var>payable in calendar years 2006 to 2008 to cities with a 2002 population of less than 2,500. <br/>
<a id="pl.7.11"></a><var>7.11</var>It applies to any city for aids payable in 2009 and thereafter but less than 3,000, the "city <br/>
<a id="pl.7.12"></a><var>7.12</var>revenue need" equals (1) the transition factor times the city's revenue need calculated in <br/>
<a id="pl.7.13"></a><var>7.13</var>paragraph (b) plus (2) 630 times the difference between one and the transition factor. For <br/>
<a id="pl.7.14"></a><var>7.14</var>a city with a population of at least 10,000 but less than 10,500, the "city revenue need" <br/>
<a id="pl.7.15"></a><var>7.15</var>equals (1) the transition factor times the city's revenue need calculated in paragraph (a) <br/>
<a id="pl.7.16"></a><var>7.16</var>plus (2) the city's revenue need calculated under the formula in paragraph (b) times the <br/>
<a id="pl.7.17"></a><var>7.17</var>difference between one and the transition factor. For purposes of this paragraph "transition <br/>
<a id="pl.7.18"></a><var>7.18</var>factor" is 0.2 percent times the amount that the city's population exceeds the minimum <br/>
<a id="pl.7.19"></a><var>7.19</var>threshold in either of the first two sentences.<br/>
<a id="pl.7.20"></a><var>7.20</var>    (d) (e) The city revenue need cannot be less than zero.<br/>
<a id="pl.7.21"></a><var>7.21</var>    (e) (f) For calendar year 2005 2015 and subsequent years, the city revenue need for <br/>
<a id="pl.7.22"></a><var>7.22</var>a city, as determined in paragraphs (a) to (d) (e), is multiplied by the ratio of the annual <br/>
<a id="pl.7.23"></a><var>7.23</var>implicit price deflator for government consumption expenditures and gross investment for <br/>
<a id="pl.7.24"></a><var>7.24</var>state and local governments as prepared by the United States Department of Commerce, <br/>
<a id="pl.7.25"></a><var>7.25</var>for the most recently available year to the 2003 2013 implicit price deflator for state <br/>
<a id="pl.7.26"></a><var>7.26</var>and local government purchases.<br/>
<a id="pl.7.27"></a><var>7.27</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.7.28"></a><var>7.28</var>2014 and thereafter.<br/>
<br/>
<a id="bill.1.5.0"></a><a id="pl.7.29"></a><var>7.29</var>    Sec. 5. Minnesota Statutes 2012, section 477A.011, subdivision 42, is amended to read:<br/>
<a id="pl.7.30"></a><var>7.30</var>    Subd. 42. <b>City jobs base</b><b> Jobs per capita</b><b>.</b> (a) "City jobs base" for a city with a <br/>
<a id="pl.7.31"></a><var>7.31</var>population of 5,000 or more is equal to the product of (1) $25.20, (2) the number of <br/>
<a id="pl.7.32"></a><var>7.32</var>jobs per capita in the city, and (3) its population. For cities with a population less than <br/>
<a id="pl.7.33"></a><var>7.33</var>5,000, the city jobs base is equal to zero. For a city receiving aid under 
<statute_ref>subdivision 36</statute_ref>, <br/>
<a id="pl.7.34"></a><var>7.34</var>paragraph (k), its city jobs base is reduced by the lesser of 36 percent of the amount of <br/>
<a id="pl.8.1"></a><var>8.1</var>aid received under that paragraph or $1,000,000. No city's city jobs base may exceed <br/>
<a id="pl.8.2"></a><var>8.2</var>$4,725,000 under this paragraph.<br/>
<a id="pl.8.3"></a><var>8.3</var>    (b) For calendar year 2010 and subsequent years, the city jobs base for a city, as <br/>
<a id="pl.8.4"></a><var>8.4</var>determined in paragraph (a), is multiplied by the ratio of the appropriation under section <br/>
<a id="pl.8.5"></a><var>8.5</var><statute_ref>477A.03, subdivision 2a</statute_ref>, for the year in which the aid is paid to the appropriation under <br/>
<a id="pl.8.6"></a><var>8.6</var>that section for aids payable in 2009.<br/>
<a id="pl.8.7"></a><var>8.7</var>    (c) For purposes of this subdivision, "Jobs per capita in the city" means (1) the <br/>
<a id="pl.8.8"></a><var>8.8</var>average annual number of employees in the city based on the data from the Quarterly <br/>
<a id="pl.8.9"></a><var>8.9</var>Census of Employment and Wages, as reported by the Department of Employment and <br/>
<a id="pl.8.10"></a><var>8.10</var>Economic Development, for the most recent calendar year available as of May 1, 2008<br/>
<a id="pl.8.11"></a><var>8.11</var> November 1 of every odd-numbered year, divided by (2) the city's population for the <br/>
<a id="pl.8.12"></a><var>8.12</var>same calendar year as the employment data. The commissioner of the Department of <br/>
<a id="pl.8.13"></a><var>8.13</var>Employment and Economic Development shall certify to the city the average annual <br/>
<a id="pl.8.14"></a><var>8.14</var>number of employees for each city by June 1, 2008 January 15, of every even-numbered <br/>
<a id="pl.8.15"></a><var>8.15</var>year beginning with January 15, 2014.. A city may challenge an estimate under this <br/>
<a id="pl.8.16"></a><var>8.16</var>paragraph by filing its specific objection, including the names of employers that it feels <br/>
<a id="pl.8.17"></a><var>8.17</var>may have misreported data, in writing with the commissioner by June 20, 2008 December <br/>
<a id="pl.8.18"></a><var>8.18</var>1 of every odd-numbered year. The commissioner shall make every reasonable effort <br/>
<a id="pl.8.19"></a><var>8.19</var>to address the specific objection and adjust the data as necessary. The commissioner <br/>
<a id="pl.8.20"></a><var>8.20</var>shall certify the estimates of the annual employment to the commissioner of revenue by <br/>
<a id="pl.8.21"></a><var>8.21</var>July 15, 2008 January 15 of all even-numbered years, including any estimates still under <br/>
<a id="pl.8.22"></a><var>8.22</var>objection. For aids payable in 2014 "jobs per capita" shall be based on the annual number <br/>
<a id="pl.8.23"></a><var>8.23</var>of employees and population for calendar year 2010 without additional review.<br/>
<a id="pl.8.24"></a><var>8.24</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.8.25"></a><var>8.25</var>2014 and thereafter.<br/>
<br/>
<a id="bill.1.6.0"></a><a id="pl.8.26"></a><var>8.26</var>    Sec. 6. Minnesota Statutes 2012, section 477A.011, is amended by adding a <br/>
<a id="pl.8.27"></a><var>8.27</var>subdivision to read:<br/>
<a id="pl.8.28"></a><var>8.28</var>    Subd. 44. <b>Peak population decline.</b> "Peak population decline" is equal to 100 <br/>
<a id="pl.8.29"></a><var>8.29</var>times the difference between one and the ratio of the city's current population, to the <br/>
<a id="pl.8.30"></a><var>8.30</var>highest city population reported in a federal census from the 1970 census or later. "Peak <br/>
<a id="pl.8.31"></a><var>8.31</var>population decline" shall not be less than zero.<br/>
<a id="pl.8.32"></a><var>8.32</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.8.33"></a><var>8.33</var>2014 and thereafter.<br/>
<br/>
<a id="bill.1.7.0"></a><a id="pl.9.1"></a><var>9.1</var>    Sec. 7. Minnesota Statutes 2012, section 477A.011, is amended by adding a <br/>
<a id="pl.9.2"></a><var>9.2</var>subdivision to read:<br/>
<a id="pl.9.3"></a><var>9.3</var>    Subd. 45. <b>Sparsity adjustment.</b> For a city with a population of 10,000 or more, the <br/>
<a id="pl.9.4"></a><var>9.4</var>sparsity adjustment is 100 for any city with an average population density less than 150 <br/>
<a id="pl.9.5"></a><var>9.5</var>per square mile. The sparsity adjustment is zero for all other cities.<br/>
<a id="pl.9.6"></a><var>9.6</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.9.7"></a><var>9.7</var>2014 and thereafter.<br/>
<br/>
<a id="bill.1.8.0"></a><a id="pl.9.8"></a><var>9.8</var>    Sec. 8. Minnesota Statutes 2012, section 477A.013, subdivision 1, is amended to read:<br/>
<a id="pl.9.9"></a><var>9.9</var>    Subdivision 1. <b>Towns.</b> In 2002, no town is eligible for a distribution under this <br/>
<a id="pl.9.10"></a><var>9.10</var>subdivision. In 2014 and thereafter, each town is eligible for a distribution under this <br/>
<a id="pl.9.11"></a><var>9.11</var>subdivision equal to the product of (i) its agricultural property factor, (ii) its town area <br/>
<a id="pl.9.12"></a><var>9.12</var>factor, (iii) its population factor, and (iv) 0.00225. As used in this subdivision, the <br/>
<a id="pl.9.13"></a><var>9.13</var>following terms have the meanings given them:<br/>
<a id="pl.9.14"></a><var>9.14</var>(1) "agricultural property factor" means the ratio of the adjusted net tax capacity of <br/>
<a id="pl.9.15"></a><var>9.15</var>agricultural property located in a town, divided by the adjusted net tax capacity of all other <br/>
<a id="pl.9.16"></a><var>9.16</var>property located in the town. The agricultural property factor cannot exceed eight;<br/>
<a id="pl.9.17"></a><var>9.17</var>(2) "agricultural property" means property classified under section 273.13, as <br/>
<a id="pl.9.18"></a><var>9.18</var>homestead and nonhomestead agricultural property, rural vacant land, and noncommercial <br/>
<a id="pl.9.19"></a><var>9.19</var>seasonal recreational property;<br/>
<a id="pl.9.20"></a><var>9.20</var>(3) "town area factor" means the most recent estimate of total acreage, not to exceed <br/>
<a id="pl.9.21"></a><var>9.21</var>50,000 acres, located in the township available as of July 1 in the aid calculation year, <br/>
<a id="pl.9.22"></a><var>9.22</var>estimated or established by:<br/>
<a id="pl.9.23"></a><var>9.23</var>(i) the United States Bureau of the Census;<br/>
<a id="pl.9.24"></a><var>9.24</var>(ii) the State Land Management Information Center; or<br/>
<a id="pl.9.25"></a><var>9.25</var>(iii) the secretary of state; and<br/>
<a id="pl.9.26"></a><var>9.26</var>(4) "population factor" means the square root of the towns population.<br/>
<a id="pl.9.27"></a><var>9.27</var>If the sum of the aids payable to all towns under this subdivision exceeds the limit <br/>
<a id="pl.9.28"></a><var>9.28</var>under section 477A.03, subdivision 2c, the distribution to each town must be reduced <br/>
<a id="pl.9.29"></a><var>9.29</var>proportionately so that the total amount of aids distributed under this section does not <br/>
<a id="pl.9.30"></a><var>9.30</var>exceed the limit in section 477A.03, subdivision 2c.<br/>
<a id="pl.9.31"></a><var>9.31</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.9.32"></a><var>9.32</var>2014 and thereafter.<br/>
<br/>
<a id="bill.1.9.0"></a><a id="pl.9.33"></a><var>9.33</var>    Sec. 9. Minnesota Statutes 2012, section 477A.013, subdivision 8, is amended to read:<br/>
<a id="pl.10.1"></a><var>10.1</var>    Subd. 8. <b>City formula aid.</b> (a) For aids payable in 2014 only, the formula aid for a <br/>
<a id="pl.10.2"></a><var>10.2</var>city is equal to the sum of (1) its 2013 certified aid and (2) the product of (i) the difference <br/>
<a id="pl.10.3"></a><var>10.3</var>between its unmet need and its 2013 certified aid and (ii) the aid gap percentage.<br/>
<a id="pl.10.4"></a><var>10.4</var>    (b) For aids payable in 2015 and thereafter, the formula aid for a city is equal to <br/>
<a id="pl.10.5"></a><var>10.5</var>the sum of (1) its city jobs base, (2) its small city aid base, and (3) the need increase <br/>
<a id="pl.10.6"></a><var>10.6</var>percentage multiplied by the average of its unmet need for the most recently available two <br/>
<a id="pl.10.7"></a><var>10.7</var>years formula aid in the previous year and (2) the product of (i) the difference between <br/>
<a id="pl.10.8"></a><var>10.8</var>its unmet need and its certified aid in the previous year under subdivision 9, and (ii) <br/>
<a id="pl.10.9"></a><var>10.9</var>the aid gap percentage.<br/>
<a id="pl.10.10"></a><var>10.10</var>No city may have a formula aid amount less than zero. The need increase aid gap<br/>
<a id="pl.10.11"></a><var>10.11</var> percentage must be the same for all cities.<br/>
<a id="pl.10.12"></a><var>10.12</var>    The applicable need increase aid gap percentage must be calculated by the <br/>
<a id="pl.10.13"></a><var>10.13</var>Department of Revenue so that the total of the aid under subdivision 9 equals the total <br/>
<a id="pl.10.14"></a><var>10.14</var>amount available for aid under section 
         <statute_ref>477A.03</statute_ref>. Data used in calculating aids to cities <br/>
<a id="pl.10.15"></a><var>10.15</var>under sections 
         <statute_ref>477A.011</statute_ref> to 
         <statute_ref>477A.013</statute_ref> shall be the most recently available data as of <br/>
<a id="pl.10.16"></a><var>10.16</var>January 1 in the year in which the aid is calculated except that the data used to compute "net <br/>
<a id="pl.10.17"></a><var>10.17</var>levy" in subdivision 9 is the data most recently available at the time of the aid computation.<br/>
<a id="pl.10.18"></a><var>10.18</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.10.19"></a><var>10.19</var>2014 and thereafter.<br/>
<br/>
<a id="bill.1.10.0"></a><a id="pl.10.20"></a><var>10.20</var>    Sec. 10. Minnesota Statutes 2012, section 477A.013, subdivision 9, is amended to read:<br/>
<a id="pl.10.21"></a><var>10.21</var>    Subd. 9. <b>City aid distribution.</b> (a) In calendar year 2013  2014 and thereafter, each <br/>
<a id="pl.10.22"></a><var>10.22</var>city shall receive an aid distribution equal to the sum of (1) the city formula aid under <br/>
<a id="pl.10.23"></a><var>10.23</var>subdivision 8, and (2) its city aid base aid adjustment under subdivision 13.<br/>
<a id="pl.10.24"></a><var>10.24</var>    (b) For aids payable in 2013 and 2014 only, the total aid in the previous year for <br/>
<a id="pl.10.25"></a><var>10.25</var>any city shall mean the amount of aid it was certified to receive for aids payable in 2012 <br/>
<a id="pl.10.26"></a><var>10.26</var>under this section. For aids payable in 2015 and thereafter, the total aid in the previous <br/>
<a id="pl.10.27"></a><var>10.27</var>year for any city means the amount of aid it was certified to receive under this section in <br/>
<a id="pl.10.28"></a><var>10.28</var>the previous payable year.<br/>
<a id="pl.10.29"></a><var>10.29</var>    (c) For aids payable in 2010 and thereafter, the total aid for any city shall not exceed <br/>
<a id="pl.10.30"></a><var>10.30</var>the sum of (1) ten percent of the city's net levy for the year prior to the aid distribution <br/>
<a id="pl.10.31"></a><var>10.31</var>plus (2) its total aid in the previous year. For aids payable in 2009 and thereafter, the total <br/>
<a id="pl.10.32"></a><var>10.32</var>aid for any city with a population of 2,500 or more may not be less than its total aid under <br/>
<a id="pl.10.33"></a><var>10.33</var>this section in the previous year minus the lesser of $10 multiplied by its population, or ten <br/>
<a id="pl.10.34"></a><var>10.34</var>percent of its net levy in the year prior to the aid distribution.<br/>
<a id="pl.11.1"></a><var>11.1</var>    (d) (b) For aids payable in 2014 only, the total aid for a city may not be less than the <br/>
<a id="pl.11.2"></a><var>11.2</var>amount it was certified to receive in 2013. For aids payable in 2010 2015 and thereafter, <br/>
<a id="pl.11.3"></a><var>11.3</var>the total aid for a city with a population less than 2,500 must not be less than the amount <br/>
<a id="pl.11.4"></a><var>11.4</var>it was certified to receive in the previous year minus the lesser of $10 multiplied by its <br/>
<a id="pl.11.5"></a><var>11.5</var>population, or five percent of its 2003 certified aid amount. For aids payable in 2009 only, <br/>
<a id="pl.11.6"></a><var>11.6</var>the total aid for a city with a population less than 2,500 must not be less than what it <br/>
<a id="pl.11.7"></a><var>11.7</var>received under this section in the previous year unless its total aid in calendar year 2008 <br/>
<a id="pl.11.8"></a><var>11.8</var>was aid under section 
<statute_ref>477A.011</statute_ref>, subdivision 36, paragraph (s), in which case its minimum <br/>
<a id="pl.11.9"></a><var>11.9</var>aid is zero its net levy in the year prior to the aid distribution.<br/>
<a id="pl.11.10"></a><var>11.10</var>    (e) A city's aid loss under this section may not exceed $300,000 in any year in <br/>
<a id="pl.11.11"></a><var>11.11</var>which the total city aid appropriation under section 
<statute_ref>477A.03, subdivision 2a</statute_ref>, is equal or <br/>
<a id="pl.11.12"></a><var>11.12</var>greater than the appropriation under that subdivision in the previous year, unless the <br/>
<a id="pl.11.13"></a><var>11.13</var>city has an adjustment in its city net tax capacity under the process described in section <br/>
<a id="pl.11.14"></a><var>11.14</var><statute_ref>469.174, subdivision 28</statute_ref>.<br/>
<a id="pl.11.15"></a><var>11.15</var>    (f) If a city's net tax capacity used in calculating aid under this section has decreased <br/>
<a id="pl.11.16"></a><var>11.16</var>in any year by more than 25 percent from its net tax capacity in the previous year due to <br/>
<a id="pl.11.17"></a><var>11.17</var>property becoming tax-exempt Indian land, the city's maximum allowed aid increase <br/>
<a id="pl.11.18"></a><var>11.18</var>under paragraph (c) shall be increased by an amount equal to (1) the city's tax rate in the <br/>
<a id="pl.11.19"></a><var>11.19</var>year of the aid calculation, multiplied by (2) the amount of its net tax capacity decrease <br/>
<a id="pl.11.20"></a><var>11.20</var>resulting from the property becoming tax exempt.<br/>
<a id="pl.11.21"></a><var>11.21</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.11.22"></a><var>11.22</var>2014 and thereafter.<br/>
<br/>
<a id="bill.1.11.0"></a><a id="pl.11.23"></a><var>11.23</var>    Sec. 11. Minnesota Statutes 2012, section 477A.013, is amended by adding a <br/>
<a id="pl.11.24"></a><var>11.24</var>subdivision to read:<br/>
<a id="pl.11.25"></a><var>11.25</var>    Subd. 13. <b>Certified aid adjustments.</b> (a) A city that received an aid base increase <br/>
<a id="pl.11.26"></a><var>11.26</var>under Minnesota Statutes 2012, section 477A.011, subdivision 36, paragraph (e), shall <br/>
<a id="pl.11.27"></a><var>11.27</var>have its total aid under subdivision 9 increased by an amount equal to $150,000 for aids <br/>
<a id="pl.11.28"></a><var>11.28</var>payable in 2014 through 2018.<br/>
<a id="pl.11.29"></a><var>11.29</var>(b) A city that received an aid base increase under section 477A.011, subdivision 36, <br/>
<a id="pl.11.30"></a><var>11.30</var>paragraph (r), shall have its total aid under subdivision 9 increased by an amount equal to <br/>
<a id="pl.11.31"></a><var>11.31</var>$160,000 for aids payable in 2014 and thereafter.<br/>
<a id="pl.11.32"></a><var>11.32</var>(c) A city that received a temporary aid increase under Minnesota Statutes 2012, <br/>
<a id="pl.11.33"></a><var>11.33</var>section 477A.011, subdivision 36, paragraph (m), (v), or (w), shall have its total aid under <br/>
<a id="pl.11.34"></a><var>11.34</var>subdivision 9 decreased by the amount of its aid base increase under those paragraphs in <br/>
<a id="pl.11.35"></a><var>11.35</var>calendar year 2013.<br/>
<br/>
<a id="bill.1.12.0"></a><a id="pl.12.1"></a><var>12.1</var>    Sec. 12. Minnesota Statutes 2012, section 477A.03, subdivision 2a, is amended to read:<br/>
<a id="pl.12.2"></a><var>12.2</var>    Subd. 2a. <b>Cities.</b> For aids payable in 2013 2014 and thereafter, the total aid paid <br/>
<a id="pl.12.3"></a><var>12.3</var>under section 
         <statute_ref>477A.013, subdivision 9</statute_ref>, is $426,438,012 $506,438,012.<br/>
<a id="pl.12.4"></a><var>12.4</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.12.5"></a><var>12.5</var>2014 and thereafter.<br/>
<br/>
<a id="bill.1.13.0"></a><a id="pl.12.6"></a><var>12.6</var>    Sec. 13. Minnesota Statutes 2012, section 477A.03, subdivision 2b, is amended to read:<br/>
<a id="pl.12.7"></a><var>12.7</var>    Subd. 2b. <b>Counties.</b> (a) For aids payable in 2013 2014 and thereafter, the total aid <br/>
<a id="pl.12.8"></a><var>12.8</var>payable under section 
         <statute_ref>477A.0124, subdivision 3</statute_ref>, is $80,795,000 $100,795,000. Each <br/>
<a id="pl.12.9"></a><var>12.9</var>calendar year, $500,000 of this appropriation shall be retained by the commissioner <br/>
<a id="pl.12.10"></a><var>12.10</var>of revenue to make reimbursements to the commissioner of management and budget <br/>
<a id="pl.12.11"></a><var>12.11</var>for payments made under section 
         <statute_ref>611.27</statute_ref>. For calendar year 2004, the amount shall <br/>
<a id="pl.12.12"></a><var>12.12</var>be in addition to the payments authorized under section 
<statute_ref>477A.0124, subdivision 1</statute_ref>. <br/>
<a id="pl.12.13"></a><var>12.13</var>For calendar year 2005 and subsequent years, the amount shall be deducted from the <br/>
<a id="pl.12.14"></a><var>12.14</var>appropriation under this paragraph. The reimbursements shall be to defray the additional <br/>
<a id="pl.12.15"></a><var>12.15</var>costs associated with court-ordered counsel under section 
         <statute_ref>611.27</statute_ref>. Any retained amounts <br/>
<a id="pl.12.16"></a><var>12.16</var>not used for reimbursement in a year shall be included in the next distribution of county <br/>
<a id="pl.12.17"></a><var>12.17</var>need aid that is certified to the county auditors for the purpose of property tax reduction <br/>
<a id="pl.12.18"></a><var>12.18</var>for the next taxes payable year.<br/>
<a id="pl.12.19"></a><var>12.19</var>    (b) For aids payable in 2013 2014 and thereafter, the total aid under section <br/>
<statute_ref><a id="pl.12.20"></a><var>12.20</var>477A.0124, subdivision 4
         </statute_ref>, is $84,909,575 $104,909,575. The commissioner of <br/>
<a id="pl.12.21"></a><var>12.21</var>management and budget shall bill the commissioner of revenue for the cost of preparation <br/>
<a id="pl.12.22"></a><var>12.22</var>of local impact notes as required by section 
         <statute_ref>3.987</statute_ref>, not to exceed $207,000 in each fiscal <br/>
<a id="pl.12.23"></a><var>12.23</var>year 2004 and thereafter. The commissioner of education shall bill the commissioner of <br/>
<a id="pl.12.24"></a><var>12.24</var>revenue for the cost of preparation of local impact notes for school districts as required <br/>
<a id="pl.12.25"></a><var>12.25</var>by section 
         <statute_ref>3.987</statute_ref>, not to exceed $7,000 in each fiscal year 2004 and thereafter. The <br/>
<a id="pl.12.26"></a><var>12.26</var>commissioner of revenue shall deduct the amounts billed under this paragraph from <br/>
<a id="pl.12.27"></a><var>12.27</var>the appropriation under this paragraph. The amounts deducted are appropriated to the <br/>
<a id="pl.12.28"></a><var>12.28</var>commissioner of management and budget and the commissioner of education for the <br/>
<a id="pl.12.29"></a><var>12.29</var>preparation of local impact notes.<br/>
<a id="pl.12.30"></a><var>12.30</var><b>EFFECTIVE DATE.</b>This section is effective for aid payable in 2014 and thereafter.<br/>
<br/>
<a id="bill.1.14.0"></a><a id="pl.12.31"></a><var>12.31</var>    Sec. 14. Minnesota Statutes 2012, section 477A.03, is amended by adding a <br/>
<a id="pl.12.32"></a><var>12.32</var>subdivision to read:<br/>
<a id="pl.13.1"></a><var>13.1</var>    Subd. 2c. <b>Towns.</b> For aids payable in 2014, the total aids paid under section <br/>
<a id="pl.13.2"></a><var>13.2</var>477A.013, subdivision 1, is limited to $5,000,000. For aids payable in 2015 and thereafter, <br/>
<a id="pl.13.3"></a><var>13.3</var>the total aids paid under section 477A.013, subdivision 1, is limited to the amount certified <br/>
<a id="pl.13.4"></a><var>13.4</var>to be paid in the previous year.<br/>
<a id="pl.13.5"></a><var>13.5</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.13.6"></a><var>13.6</var>2014 and thereafter.<br/>
<br/>
<a id="bill.1.15.0"></a><a id="pl.13.7"></a><var>13.7</var>    Sec. 15. <b>[477A.10] NATURAL RESOURCES LAND PAYMENTS IN LIEU; </b><br/>
<a id="pl.13.8"></a><var>13.8</var><b>PURPOSE.</b><br/>
<a id="pl.13.9"></a><var>13.9</var>The purposes of sections 477A.11 to 477A.14 are:<br/>
<a id="pl.13.10"></a><var>13.10</var>(1) to compensate local units of government for the loss of tax base from state <br/>
<a id="pl.13.11"></a><var>13.11</var>ownership of land and the need to provide services for state land;<br/>
<a id="pl.13.12"></a><var>13.12</var>(2) to address the disproportionate impact of state land ownership on local units of <br/>
<a id="pl.13.13"></a><var>13.13</var>government with a large proportion of state land; and<br/>
<a id="pl.13.14"></a><var>13.14</var>(3) to address the need to manage state lands held in trust for the local taxing districts.<br/>
<br/>
<a id="bill.1.16.0"></a><a id="pl.13.15"></a><var>13.15</var>    Sec. 16. Minnesota Statutes 2012, section 477A.11, subdivision 3, is amended to read:<br/>
<a id="pl.13.16"></a><var>13.16</var>    Subd. 3. <b>Acquired natural resources land.</b> "Acquired natural resources land" <br/>
<a id="pl.13.17"></a><var>13.17</var>means:<br/>
<a id="pl.13.18"></a><var>13.18</var>(1) any land, other than wildlife management land, presently administered by the <br/>
<a id="pl.13.19"></a><var>13.19</var>commissioner in which the state acquired by purchase, condemnation, or gift, a fee title <br/>
<a id="pl.13.20"></a><var>13.20</var>interest in lands which were previously privately owned; and<br/>
<a id="pl.13.21"></a><var>13.21</var>(2) lands acquired by the state under chapter 84A that are designated as state parks, <br/>
<a id="pl.13.22"></a><var>13.22</var>state recreation areas, scientific and natural areas, or wildlife management areas.<br/>
<a id="pl.13.23"></a><var>13.23</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.13.24"></a><var>13.24</var>2013 and thereafter.<br/>
<br/>
<a id="bill.1.17.0"></a><a id="pl.13.25"></a><var>13.25</var>    Sec. 17. Minnesota Statutes 2012, section 477A.11, subdivision 4, is amended to read:<br/>
<a id="pl.13.26"></a><var>13.26</var>    Subd. 4. <b>Other natural resources land.</b> "Other natural resources land" means <br/>
<a id="pl.13.27"></a><var>13.27</var>any other land, other than acquired natural resource land or wildlife management land,<br/>
<a id="pl.13.28"></a><var>13.28</var> presently owned in fee title by the state and administered by the commissioner, or <br/>
<a id="pl.13.29"></a><var>13.29</var>any tax-forfeited land, other than platted lots within a city or those lands described <br/>
<a id="pl.13.30"></a><var>13.30</var>under subdivision 3, clause (2), which is owned by the state and administered by the <br/>
<a id="pl.13.31"></a><var>13.31</var>commissioner or by the county in which it is located.<br/>
<a id="pl.14.1"></a><var>14.1</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.14.2"></a><var>14.2</var>2013 and thereafter.<br/>
<br/>
<a id="bill.1.18.0"></a><a id="pl.14.3"></a><var>14.3</var>    Sec. 18. Minnesota Statutes 2012, section 477A.11, is amended by adding a <br/>
<a id="pl.14.4"></a><var>14.4</var>subdivision to read:<br/>
<a id="pl.14.5"></a><var>14.5</var>    Subd. 6. <b>Military game refuge.</b> "Military game refuge" means land owned in <br/>
<a id="pl.14.6"></a><var>14.6</var>fee by another state agency for military purposes and designated as a state game refuge <br/>
<a id="pl.14.7"></a><var>14.7</var>under section 97A.085.<br/>
<a id="pl.14.8"></a><var>14.8</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.14.9"></a><var>14.9</var>2013 and thereafter.<br/>
<br/>
<a id="bill.1.19.0"></a><a id="pl.14.10"></a><var>14.10</var>    Sec. 19. Minnesota Statutes 2012, section 477A.11, is amended by adding a <br/>
<a id="pl.14.11"></a><var>14.11</var>subdivision to read:<br/>
<a id="pl.14.12"></a><var>14.12</var>    Subd. 7. <b>Transportation wetland.</b> "Transportation wetland" means land <br/>
<a id="pl.14.13"></a><var>14.13</var>administered by the Department of Transportation in which the state acquired, by purchase <br/>
<a id="pl.14.14"></a><var>14.14</var>from a private owner, a fee title interest in over 500 acres of land within a county to <br/>
<a id="pl.14.15"></a><var>14.15</var>replace wetland losses from transportation projects.<br/>
<a id="pl.14.16"></a><var>14.16</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.14.17"></a><var>14.17</var>2013 and thereafter.<br/>
<br/>
<a id="bill.1.20.0"></a><a id="pl.14.18"></a><var>14.18</var>    Sec. 20. Minnesota Statutes 2012, section 477A.11, is amended by adding a <br/>
<a id="pl.14.19"></a><var>14.19</var>subdivision to read:<br/>
<a id="pl.14.20"></a><var>14.20</var>    Subd. 8. <b>Wildlife management land.</b> "Wildlife management land" means land <br/>
<a id="pl.14.21"></a><var>14.21</var>administered by the commissioner in which the state acquired, from a private owner by <br/>
<a id="pl.14.22"></a><var>14.22</var>purchase, condemnation, or gift, a fee interest under the authority granted in chapter 94 or <br/>
<a id="pl.14.23"></a><var>14.23</var>97A for wildlife management purposes and actually used as a wildlife management area.<br/>
<a id="pl.14.24"></a><var>14.24</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.14.25"></a><var>14.25</var>2013 and thereafter.<br/>
<br/>
<a id="bill.1.21.0"></a><a id="pl.14.26"></a><var>14.26</var>    Sec. 21. Minnesota Statutes 2012, section 477A.12, subdivision 1, is amended to read:<br/>
<a id="pl.14.27"></a><var>14.27</var>    Subdivision 1. <b>Types of land; payments.</b> (a) As an offset for expenses incurred <br/>
<a id="pl.14.28"></a><var>14.28</var>by counties and towns in support of natural resources lands, The following amounts are <br/>
<a id="pl.14.29"></a><var>14.29</var>annually appropriated to the commissioner of natural resources from the general fund for <br/>
<a id="pl.14.30"></a><var>14.30</var>transfer to the commissioner of revenue. The commissioner of revenue shall pay the <br/>
<a id="pl.15.1"></a><var>15.1</var>transferred funds to counties as required by sections 
         <statute_ref>477A.11</statute_ref> to 
         <statute_ref>477A.14</statute_ref>. The amounts, <br/>
<a id="pl.15.2"></a><var>15.2</var>based on the acreage as of July 1 of each year prior to the payment year, are:<br/>
<a id="pl.15.3"></a><var>15.3</var>(1) for acquired natural resources land, $5.133 multiplied by the total number of acres <br/>
<a id="pl.15.4"></a><var>15.4</var>of acquired natural resources land or, at the county's option three-fourths of one percent of <br/>
<a id="pl.15.5"></a><var>15.5</var>the appraised value of all acquired natural resources land in the county, whichever is greater;<br/>
<a id="pl.15.6"></a><var>15.6</var>(2) $5.133, multiplied by the total number of acres of transportation wetland or, at <br/>
<a id="pl.15.7"></a><var>15.7</var>the county's option, three-fourths of one percent of the appraised value of all acquired <br/>
<a id="pl.15.8"></a><var>15.8</var>natural resources land in the county, whichever is greater;<br/>
<a id="pl.15.9"></a><var>15.9</var>(3) three-fourths of one percent of the appraised value of all wildlife management <br/>
<a id="pl.15.10"></a><var>15.10</var>land in the county;<br/>
<a id="pl.15.11"></a><var>15.11</var>(4) 50 percent of the dollar amount as determined under clause (1), multiplied by <br/>
<a id="pl.15.12"></a><var>15.12</var>the number of acres of military refuge land in the county;<br/>
<a id="pl.15.13"></a><var>15.13</var>$1.283 (5) $1.50,  multiplied by the number of acres of county-administered other <br/>
<a id="pl.15.14"></a><var>15.14</var>natural resources land in the county;<br/>
<a id="pl.15.15"></a><var>15.15</var>(3) $1.283 (6) $5.133,  multiplied by the total number of acres of land utilization <br/>
<a id="pl.15.16"></a><var>15.16</var>project land in the county; and<br/>
<a id="pl.15.17"></a><var>15.17</var>(4) 64.2 cents (7) $1.50,  multiplied by the number of acres of <br/>
<a id="pl.15.18"></a><var>15.18</var>commissioner-administered other natural resources land located in each the county as of <br/>
<a id="pl.15.19"></a><var>15.19</var>July 1 of each year prior to the payment year.; and <br/>
<a id="pl.15.20"></a><var>15.20</var>    (8) without regard to acreage, $300,000 for local assessments under section 84A.55, <br/>
<a id="pl.15.21"></a><var>15.21</var>subdivision 9.<br/>
<a id="pl.15.22"></a><var>15.22</var>(b) The amount determined under paragraph (a), clause (1), is payable for land <br/>
<a id="pl.15.23"></a><var>15.23</var>that is acquired from a private owner and owned by the Department of Transportation <br/>
<a id="pl.15.24"></a><var>15.24</var>for the purpose of replacing wetland losses caused by transportation projects, but only <br/>
<a id="pl.15.25"></a><var>15.25</var>if the county contains more than 500 acres of such land at the time the certification is <br/>
<a id="pl.15.26"></a><var>15.26</var>made under subdivision 2.<br/>
<a id="pl.15.27"></a><var>15.27</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.15.28"></a><var>15.28</var>2013 and thereafter.<br/>
<br/>
<a id="bill.1.22.0"></a><a id="pl.15.29"></a><var>15.29</var>    Sec. 22. Minnesota Statutes 2012, section 477A.12, subdivision 2, is amended to read:<br/>
<a id="pl.15.30"></a><var>15.30</var>    Subd. 2. <b>Procedure.</b> Lands for which payments in lieu are made pursuant to <br/>
<a id="pl.15.31"></a><var>15.31</var>section 
<statute_ref>97A.061, subdivision 3</statute_ref>, and Laws 1973, chapter 567, shall not be eligible for <br/>
<a id="pl.15.32"></a><var>15.32</var>payments under this section. Each county auditor shall certify to the Department of <br/>
<a id="pl.15.33"></a><var>15.33</var>Natural Resources during July of each year prior to the payment year the number of acres <br/>
<a id="pl.15.34"></a><var>15.34</var>of county-administered other natural resources land within the county. The Department of <br/>
<a id="pl.15.35"></a><var>15.35</var>Natural resources may, in addition to the certification of acreage, require descriptive lists <br/>
<a id="pl.16.1"></a><var>16.1</var>of land so certified. The commissioner of natural resources shall determine and certify to <br/>
<a id="pl.16.2"></a><var>16.2</var>the commissioner of revenue by March 1 of the payment year:<br/>
<a id="pl.16.3"></a><var>16.3</var>(1) the number of acres and most recent appraised value of acquired natural <br/>
<a id="pl.16.4"></a><var>16.4</var>resources land, wildlife management land, and military refuge land within each county;<br/>
<a id="pl.16.5"></a><var>16.5</var>(2) the number of acres of commissioner-administered natural resources land within <br/>
<a id="pl.16.6"></a><var>16.6</var>each county;<br/>
<a id="pl.16.7"></a><var>16.7</var>(3) the number of acres of county-administered other natural resources land within <br/>
<a id="pl.16.8"></a><var>16.8</var>each county, based on the reports filed by each county auditor with the commissioner <br/>
<a id="pl.16.9"></a><var>16.9</var>of natural resources; and<br/>
<a id="pl.16.10"></a><var>16.10</var>(4) the number of acres of land utilization project land within each county.<br/>
<a id="pl.16.11"></a><var>16.11</var>The commissioner of transportation shall determine and certify to the commissioner <br/>
<a id="pl.16.12"></a><var>16.12</var>of revenue by March 1 of the payment year the number of acres of land transportation <br/>
<a id="pl.16.13"></a><var>16.13</var>wetland and the appraised value of the land described in subdivision 1, paragraph (b), but <br/>
<a id="pl.16.14"></a><var>16.14</var>only if it exceeds 500 acres in a county.<br/>
<a id="pl.16.15"></a><var>16.15</var>The commissioner of revenue shall determine the distributions provided for in this <br/>
<a id="pl.16.16"></a><var>16.16</var>section using the number of acres and appraised values certified by the commissioner of <br/>
<a id="pl.16.17"></a><var>16.17</var>natural resources and the commissioner of transportation by March 1 of the payment year.<br/>
<a id="pl.16.18"></a><var>16.18</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.16.19"></a><var>16.19</var>2013 and thereafter.<br/>
<br/>
<a id="bill.1.23.0"></a><a id="pl.16.20"></a><var>16.20</var>    Sec. 23. Minnesota Statutes 2012, section 477A.12, subdivision 3, is amended to read:<br/>
<a id="pl.16.21"></a><var>16.21</var>    Subd. 3. <b>Determination of appraised value.</b> For the purposes of this section, the <br/>
<a id="pl.16.22"></a><var>16.22</var>appraised value of acquired natural resources land is the purchase price for the first five <br/>
<a id="pl.16.23"></a><var>16.23</var>years after acquisition until the next six-year appraisal required under this subdivision. <br/>
<a id="pl.16.24"></a><var>16.24</var>The appraised value of acquired natural resources land received as a donation is the value <br/>
<a id="pl.16.25"></a><var>16.25</var>determined for the commissioner of natural resources by a licensed appraiser, or the <br/>
<a id="pl.16.26"></a><var>16.26</var>county assessor's estimated market value if no appraisal is done. The appraised value must <br/>
<a id="pl.16.27"></a><var>16.27</var>be determined by the county assessor every five six years after the land is acquired. All <br/>
<a id="pl.16.28"></a><var>16.28</var>reappraisals shall be done in the same year as county assessors are required to assess <br/>
<a id="pl.16.29"></a><var>16.29</var>exempt land under section 273.18.<br/>
<a id="pl.16.30"></a><var>16.30</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.16.31"></a><var>16.31</var>2013 and thereafter.<br/>
<br/>
<a id="bill.1.24.0"></a><a id="pl.16.32"></a><var>16.32</var>    Sec. 24. Minnesota Statutes 2012, section 477A.14, subdivision 1, is amended to read:<br/>
<a id="pl.17.1"></a><var>17.1</var>    Subdivision 1. <b>General distribution.</b> Except as provided in subdivision 2 or in <br/>
<a id="pl.17.2"></a><var>17.2</var>section 
<statute_ref>97A.061, subdivision 5</statute_ref> subdivisions 2 and 3, 40 percent of the total payment to <br/>
<a id="pl.17.3"></a><var>17.3</var>the county shall be deposited in the county general revenue fund to be used to provide <br/>
<a id="pl.17.4"></a><var>17.4</var>property tax levy reduction. The remainder shall be distributed by the county in the <br/>
<a id="pl.17.5"></a><var>17.5</var>following priority:<br/>
<a id="pl.17.6"></a><var>17.6</var>(a) 64.2 cents,  for each acre of county-administered other natural resources land shall <br/>
<a id="pl.17.7"></a><var>17.7</var>be deposited in a resource development fund to be created within the county treasury for <br/>
<a id="pl.17.8"></a><var>17.8</var>use in resource development, forest management, game and fish habitat improvement, and <br/>
<a id="pl.17.9"></a><var>17.9</var>recreational development and maintenance of county-administered other natural resources <br/>
<a id="pl.17.10"></a><var>17.10</var>land. Any county receiving less than $5,000 annually for the resource development fund <br/>
<a id="pl.17.11"></a><var>17.11</var>may elect to deposit that amount in the county general revenue fund;<br/>
<a id="pl.17.12"></a><var>17.12</var>(b) from the funds remaining, within 30 days of receipt of the payment to the county, <br/>
<a id="pl.17.13"></a><var>17.13</var>the county treasurer shall pay each organized township 51.3 cents for each acre of acquired <br/>
<a id="pl.17.14"></a><var>17.14</var>natural resources land and each acre of land described in section 
<statute_ref>477A.12, subdivision 1</statute_ref>, <br/>
<a id="pl.17.15"></a><var>17.15</var>paragraph (b), and 12.8 cents for each acre of other natural resources land and each acre of <br/>
<a id="pl.17.16"></a><var>17.16</var>land utilization project land located within its boundaries ten percent of the amount received <br/>
<a id="pl.17.17"></a><var>17.17</var>under section 477A.12, subdivision 1, clauses (1), (2), and (5) to (7). Payments for natural <br/>
<a id="pl.17.18"></a><var>17.18</var>resources lands not located in an organized township shall be deposited in the county <br/>
<a id="pl.17.19"></a><var>17.19</var>general revenue fund. Payments to counties and townships pursuant to this paragraph shall <br/>
<a id="pl.17.20"></a><var>17.20</var>be used to provide property tax levy reduction, except that of the payments for natural <br/>
<a id="pl.17.21"></a><var>17.21</var>resources lands not located in an organized township, the county may allocate the amount <br/>
<a id="pl.17.22"></a><var>17.22</var>determined to be necessary for maintenance of roads in unorganized townships. Provided <br/>
<a id="pl.17.23"></a><var>17.23</var>that, if the total payment to the county pursuant to section 
         <statute_ref>477A.12</statute_ref> is not sufficient to fully <br/>
<a id="pl.17.24"></a><var>17.24</var>fund the distribution provided for in this clause, the amount available shall be distributed <br/>
<a id="pl.17.25"></a><var>17.25</var>to each township and the county general revenue fund on a pro rata basis; and<br/>
<a id="pl.17.26"></a><var>17.26</var>(c) any remaining funds shall be deposited in the county general revenue fund. <br/>
<a id="pl.17.27"></a><var>17.27</var>Provided that, if the distribution to the county general revenue fund exceeds $35,000, the <br/>
<a id="pl.17.28"></a><var>17.28</var>excess shall be used to provide property tax levy reduction.<br/>
<a id="pl.17.29"></a><var>17.29</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.17.30"></a><var>17.30</var>2013 and thereafter.<br/>
<br/>
<a id="bill.1.25.0"></a><a id="pl.17.31"></a><var>17.31</var>    Sec. 25. Minnesota Statutes 2012, section 477A.14, is amended by adding a <br/>
<a id="pl.17.32"></a><var>17.32</var>subdivision to read:<br/>
<a id="pl.17.33"></a><var>17.33</var>    Subd. 3. <b>Distribution for wildlife management lands and military refuge lands.</b><br/>
<a id="pl.17.34"></a><var>17.34</var>(a) The county treasurer shall allocate the payment for wildlife management land and <br/>
<a id="pl.17.35"></a><var>17.35</var>military game refuge land among the county, towns, and school districts on the same basis <br/>
<a id="pl.18.1"></a><var>18.1</var>as if the payments were taxes on the land received in the year. Payment of a town's or a <br/>
<a id="pl.18.2"></a><var>18.2</var>school district's allocation must be made by the county treasurer to the town or school <br/>
<a id="pl.18.3"></a><var>18.3</var>district within 30 days of receipt of the payment to the county. The county's share of the <br/>
<a id="pl.18.4"></a><var>18.4</var>payment shall be deposited in the county general revenue fund.<br/>
<a id="pl.18.5"></a><var>18.5</var>(b) The county treasurer of a county with a population over 39,000, but less than <br/>
<a id="pl.18.6"></a><var>18.6</var>42,000, in the 1950 federal census shall allocate the payment only among the towns and <br/>
<a id="pl.18.7"></a><var>18.7</var>school districts on the same basis as if the payments were taxes on the lands received <br/>
<a id="pl.18.8"></a><var>18.8</var>in the current year.<br/>
<a id="pl.18.9"></a><var>18.9</var>(c) If a town received a payment in calendar year 2006 or thereafter under this <br/>
<a id="pl.18.10"></a><var>18.10</var>subdivision, and subsequently incorporated as a city, the city shall continue to receive any <br/>
<a id="pl.18.11"></a><var>18.11</var>future year's allocations of wildlife land payments that would have been made to the town <br/>
<a id="pl.18.12"></a><var>18.12</var>had it not incorporated, provided that the payments shall terminate if the governing body <br/>
<a id="pl.18.13"></a><var>18.13</var>of the city passes an ordinance that prohibits hunting within the boundaries of the city.<br/>
<a id="pl.18.14"></a><var>18.14</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.18.15"></a><var>18.15</var>2013 and thereafter.<br/>
<br/>
<a id="bill.1.26.0"></a><a id="pl.18.16"></a><var>18.16</var>    Sec. 26. Laws 2006, chapter 259, article 11, section 3, as amended by Laws 2008, <br/>
<a id="pl.18.17"></a><var>18.17</var>chapter 154, article 1, section 4, is amended to read:<br/>
<a id="pl.18.18"></a><var>18.18</var>    Sec. 3. <b>MAHNOMEN COUNTY; COUNTY, CITY, SCHOOL DISTRICT, </b><br/>
<a id="pl.18.19"></a><var>18.19</var><b>PROPERTY TAX REIMBURSEMENT.</b><br/>
<a id="pl.18.20"></a><var>18.20</var>    Subdivision 1.  <b>Aid appropriation.</b> $600,000 $1,200,000 is appropriated annually <br/>
<a id="pl.18.21"></a><var>18.21</var>from the general fund to the commissioner of revenue to be used to make payments to <br/>
<a id="pl.18.22"></a><var>18.22</var>compensate for the loss of property tax revenue related to the trust conversion application <br/>
<a id="pl.18.23"></a><var>18.23</var>of the Shooting Star Casino. The commissioner shall pay the county of Mahnomen, <br/>
<a id="pl.18.24"></a><var>18.24</var>$450,000 $900,000; the city of Mahnomen, $80,000 $160,000; and Independent School <br/>
<a id="pl.18.25"></a><var>18.25</var>District No. 432, Mahnomen, $70,000 $140,000. The payments shall be made on July 20, <br/>
<a id="pl.18.26"></a><var>18.26</var>of 2008 2013 and each subsequent year. <br/>
<a id="pl.18.27"></a><var>18.27</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year  <br/>
<a id="pl.18.28"></a><var>18.28</var>2013 and thereafter.<br/>
<br/>
<a id="bill.1.27.0"></a><a id="pl.18.29"></a><var>18.29</var>    Sec. 27. <b> REPEALER.</b><br/>
<a id="pl.18.30"></a><var>18.30</var>Minnesota Statutes 2012, sections 477A.011, subdivisions 2a, 19, 29, 31, 32, 33, <br/>
<a id="pl.18.31"></a><var>18.31</var>36, 39, 40, and 41; 477A.013, subdivisions 11 and 12; 477A.0133; and 477A.0134, are <br/>
<a id="pl.18.32"></a><var>18.32</var>repealed.<br/>
<a id="pl.19.1"></a><var>19.1</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.19.2"></a><var>19.2</var>2014 and thereafter.<br/>
<br/>
<a id="bill.2.0.0"></a>

<a id="bill.2.1.0"></a><a id="pl.19.5"></a><var>19.5</var>    Section 1. Minnesota Statutes 2012, section 103B.102, subdivision 3, is amended to <br/>
<a id="pl.19.6"></a><var>19.6</var>read:<br/>
<a id="pl.19.7"></a><var>19.7</var>    Subd. 3. <b>Evaluation and report.</b> The Board of Water and Soil Resources shall <br/>
<a id="pl.19.8"></a><var>19.8</var>evaluate performance, financial, and activity information for each local water management <br/>
<a id="pl.19.9"></a><var>19.9</var>entity. The board shall evaluate the entities' progress in accomplishing their adopted plans <br/>
<a id="pl.19.10"></a><var>19.10</var>on a regular basis as determined by the board based on budget and operations of the local <br/>
<a id="pl.19.11"></a><var>19.11</var>water management entity, but not less than once every five ten years. The board shall <br/>
<a id="pl.19.12"></a><var>19.12</var>maintain a summary of local water management entity performance on the board's Web site. <br/>
<a id="pl.19.13"></a><var>19.13</var>Beginning February 1, 2008, and annually thereafter, the board shall provide an analysis <br/>
<a id="pl.19.14"></a><var>19.14</var>of local water management entity performance to the chairs of the house of representatives <br/>
<a id="pl.19.15"></a><var>19.15</var>and senate committees having jurisdiction over environment and natural resources policy.<br/>
<br/>
<a id="bill.2.2.0"></a><a id="pl.19.16"></a><var>19.16</var>    Sec. 2. Minnesota Statutes 2012, section 103B.335, is amended to read:<br/>
<a id="pl.19.17"></a><var>19.17</var><b>103B.335 TAX LEVY AUTHORITY.</b><br/>
<a id="pl.19.18"></a><var>19.18</var>    Subdivision 1. <b>Local water planning and management.</b> The governing body of <br/>
<a id="pl.19.19"></a><var>19.19</var>any county, municipality, or township may levy a tax in an amount required to implement <br/>
<a id="pl.19.20"></a><var>19.20</var>sections 
         <statute_ref>103B.301</statute_ref> to 
         <statute_ref>103B.355</statute_ref> or a comprehensive watershed management plan as <br/>
<a id="pl.19.21"></a><var>19.21</var>defined in section 103B.3363.<br/>
<a id="pl.19.22"></a><var>19.22</var>    Subd. 2. <b>Priority programs; conservation and watershed districts.</b> A county <br/>
<a id="pl.19.23"></a><var>19.23</var>may levy amounts necessary to pay the reasonable increased costs to soil and water <br/>
<a id="pl.19.24"></a><var>19.24</var>conservation districts and watershed districts of administering and implementing priority <br/>
<a id="pl.19.25"></a><var>19.25</var>programs identified in an approved and adopted plan or a comprehensive watershed <br/>
<a id="pl.19.26"></a><var>19.26</var>management plan as defined in section 103B.3363.<br/>
<br/>
<a id="bill.2.3.0"></a><a id="pl.19.27"></a><var>19.27</var>    Sec. 3. Minnesota Statutes 2012, section 103B.3369, subdivision 5, is amended to read:<br/>
<a id="pl.19.28"></a><var>19.28</var>    Subd. 5. <b>Financial assistance.</b> A base grant may be awarded to a county that <br/>
<a id="pl.19.29"></a><var>19.29</var>provides a match utilizing a water implementation tax or other local source. A water <br/>
<a id="pl.19.30"></a><var>19.30</var>implementation tax that a county intends to use as a match to the base grant must be <br/>
<a id="pl.19.31"></a><var>19.31</var>levied at a rate sufficient to generate a minimum amount determined by the board. <br/>
<a id="pl.19.32"></a><var>19.32</var>The board may award performance-based grants to local units of government that are <br/>
<a id="pl.20.1"></a><var>20.1</var>responsible for implementing elements of applicable portions of watershed management <br/>
<a id="pl.20.2"></a><var>20.2</var>plans, comprehensive plans, local water management plans, or comprehensive watershed <br/>
<a id="pl.20.3"></a><var>20.3</var>management plans, developed or amended, adopted and approved, according to chapter <br/>
<a id="pl.20.4"></a><var>20.4</var>103B, 103C, or 103D. Upon request by a local government unit, the board may also <br/>
<a id="pl.20.5"></a><var>20.5</var>award performance-based grants to local units of government to carry out TMDL <br/>
<a id="pl.20.6"></a><var>20.6</var>implementation plans as provided in chapter 114D, if the TMDL implementation plan has <br/>
<a id="pl.20.7"></a><var>20.7</var>been incorporated into the local water management plan according to the procedures for <br/>
<a id="pl.20.8"></a><var>20.8</var>approving comprehensive plans, watershed management plans, local water management <br/>
<a id="pl.20.9"></a><var>20.9</var>plans, or comprehensive watershed management plans under chapter 103B, 103C, or <br/>
<a id="pl.20.10"></a><var>20.10</var>103D, or if the TMDL implementation plan has undergone a public review process. <br/>
<a id="pl.20.11"></a><var>20.11</var>Notwithstanding section 
         <statute_ref>16A.41</statute_ref>, the board may award performance-based grants on an <br/>
<a id="pl.20.12"></a><var>20.12</var>advanced basis. The fee authorized in section 40A.152 may be used as a local match <br/>
<a id="pl.20.13"></a><var>20.13</var>or as a supplement to state funding to accomplish implementation of comprehensive <br/>
<a id="pl.20.14"></a><var>20.14</var>plans, watershed management plans, local water management plans, or comprehensive <br/>
<a id="pl.20.15"></a><var>20.15</var>watershed management plans under chapter 103B, 103C, or 103D.<br/>
<br/>
<a id="bill.2.4.0"></a><a id="pl.20.16"></a><var>20.16</var>    Sec. 4. Minnesota Statutes 2012, section 103C.501, subdivision 4, is amended to read:<br/>
<a id="pl.20.17"></a><var>20.17</var>    Subd. 4. <b>Cost-sharing funds.</b> (a) The state board shall allocate at least 70 percent <br/>
<a id="pl.20.18"></a><var>20.18</var>of cost-sharing funds to areas with high priority erosion, sedimentation, or water quality <br/>
<a id="pl.20.19"></a><var>20.19</var>problems or water quantity problems due to altered hydrology. The areas must be selected <br/>
<a id="pl.20.20"></a><var>20.20</var>based on the statewide priorities established by the state board. <br/>
<a id="pl.20.21"></a><var>20.21</var>(b) The allocated funds must be used for conservation practices for high priority <br/>
<a id="pl.20.22"></a><var>20.22</var>problems identified in the comprehensive and annual work plans of the districts, for <br/>
<a id="pl.20.23"></a><var>20.23</var>the technical assistance portion of the grant funds to leverage federal or other nonstate <br/>
<a id="pl.20.24"></a><var>20.24</var>funds, or to address high-priority needs identified in local water management plans or <br/>
<a id="pl.20.25"></a><var>20.25</var>comprehensive watershed management plans.<br/>
<a id="pl.20.26"></a><var>20.26</var>(b) The remaining cost-sharing funds may be allocated to districts as follows:<br/>
<a id="pl.20.27"></a><var>20.27</var>(1) for technical and administrative assistance, not more than 20 percent of the <br/>
<a id="pl.20.28"></a><var>20.28</var>funds; and<br/>
<a id="pl.20.29"></a><var>20.29</var>(2) for conservation practices for lower priority erosion, sedimentation, or water <br/>
<a id="pl.20.30"></a><var>20.30</var>quality problems.<br/>
<br/>
<a id="bill.2.5.0"></a><a id="pl.20.31"></a><var>20.31</var>    Sec. 5. Minnesota Statutes 2012, section 103F.405, subdivision 1, is amended to read:<br/>
<a id="pl.20.32"></a><var>20.32</var>    Subdivision 1. <b>Authority.</b> Each statutory or home rule charter city, town, or <br/>
<a id="pl.20.33"></a><var>20.33</var>county that has planning and zoning authority under sections 
         <statute_ref>366.10</statute_ref> to 
         <statute_ref>366.19</statute_ref>, 
         <statute_ref>394.21</statute_ref> <br/>
<a id="pl.20.34"></a><var>20.34</var>to 
         <statute_ref>394.37</statute_ref>, or 
         <statute_ref>462.351</statute_ref> to 
         <statute_ref>462.365</statute_ref> is encouraged to adopt a soil loss ordinance. The soil <br/>
<a id="pl.21.1"></a><var>21.1</var>loss ordinance must use the soil loss tolerance for each soil series described in the United <br/>
<a id="pl.21.2"></a><var>21.2</var>States Soil Natural Resources Conservation Service Field Office Technical Guide, or <br/>
<a id="pl.21.3"></a><var>21.3</var>another method approved by the Board of Water and Soil Resources, to determine the <br/>
<a id="pl.21.4"></a><var>21.4</var>soil loss limits, but the soil loss limits must be attainable by the best practicable soil <br/>
<a id="pl.21.5"></a><var>21.5</var>conservation practice. Ordinances adopted by local governments within the metropolitan <br/>
<a id="pl.21.6"></a><var>21.6</var>area defined in section 
<statute_ref>473.121</statute_ref> must be consistent with local water management plans <br/>
<a id="pl.21.7"></a><var>21.7</var>adopted under section 
<statute_ref>103B.235</statute_ref> a comprehensive plan, local water management plan, or <br/>
<a id="pl.21.8"></a><var>21.8</var>watershed management plan developed or amended, adopted and approved, according <br/>
<a id="pl.21.9"></a><var>21.9</var>to chapter 103B, 103C, or 103D.<br/>
<br/>
<a id="bill.2.6.0"></a><a id="pl.21.10"></a><var>21.10</var>    Sec. 6. Minnesota Statutes 2012, section 168.012, subdivision 9, is amended to read:<br/>
<a id="pl.21.11"></a><var>21.11</var>    Subd. 9. <b>Manufactured homes and park trailers.</b> Manufactured homes and park <br/>
<a id="pl.21.12"></a><var>21.12</var>trailers shall not be taxed as motor vehicles using the public streets and highways and shall <br/>
<a id="pl.21.13"></a><var>21.13</var>be exempt from the motor vehicle tax provisions of this chapter. Except as provided in <br/>
<a id="pl.21.14"></a><var>21.14</var>section 
         <statute_ref>273.125</statute_ref>, manufactured homes and park trailers shall be taxed as personal property. <br/>
<a id="pl.21.15"></a><var>21.15</var>The provisions of Minnesota Statutes 1957, section 
         <statute_ref>272.02</statute_ref> or any other act providing for <br/>
<a id="pl.21.16"></a><var>21.16</var>tax exemption shall be inapplicable to manufactured homes and park trailers, except <br/>
<a id="pl.21.17"></a><var>21.17</var>such manufactured homes as are held by a licensed dealer or limited dealer, as defined <br/>
<a id="pl.21.18"></a><var>21.18</var>in section 327B.04, and exempted as inventory under subdivision 9a. Travel trailers not <br/>
<a id="pl.21.19"></a><var>21.19</var>conspicuously displaying current registration plates on the property tax assessment date <br/>
<a id="pl.21.20"></a><var>21.20</var>shall be taxed as manufactured homes if occupied as human dwelling places.<br/>
<a id="pl.21.21"></a><var>21.21</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2014 and <br/>
<a id="pl.21.22"></a><var>21.22</var>thereafter.<br/>
<br/>
<a id="bill.2.7.0"></a><a id="pl.21.23"></a><var>21.23</var>    Sec. 7. Minnesota Statutes 2012, section 168.012, is amended by adding a subdivision <br/>
<a id="pl.21.24"></a><var>21.24</var>to read:<br/>
<a id="pl.21.25"></a><var>21.25</var>    Subd. 9a. <b>Manufactured home as dealer inventory.</b> Manufactured homes as <br/>
<a id="pl.21.26"></a><var>21.26</var>defined in section 327.31, subdivision 6, shall be considered as dealer inventory, on the <br/>
<a id="pl.21.27"></a><var>21.27</var>January 2 assessment date, if the home:<br/>
<a id="pl.21.28"></a><var>21.28</var>(1) is listed as inventory and held by a licensed or limited dealer;<br/>
<a id="pl.21.29"></a><var>21.29</var>(2) is unoccupied and not available for rent;<br/>
<a id="pl.21.30"></a><var>21.30</var>(3) may or may not be permanently connected to utilities when located in a <br/>
<a id="pl.21.31"></a><var>21.31</var>manufactured park; and<br/>
<a id="pl.21.32"></a><var>21.32</var>(4) may or may not be temporarily connected to utilities when located at a dealer's <br/>
<a id="pl.21.33"></a><var>21.33</var>sales center.<br/>
<a id="pl.22.1"></a><var>22.1</var>The exemption under this subdivision is allowable for up to five assessment years after <br/>
<a id="pl.22.2"></a><var>22.2</var>the date a home is initially claimed as dealer inventory.<br/>
<a id="pl.22.3"></a><var>22.3</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2014 and <br/>
<a id="pl.22.4"></a><var>22.4</var>thereafter.<br/>
<br/>
<a id="bill.2.8.0"></a><a id="pl.22.5"></a><var>22.5</var>    Sec. 8. <b>[270C.9901] ASSESSOR ACCREDITATION.</b><br/>
<a id="pl.22.6"></a><var>22.6</var>Every individual that appraises or physically inspects real property for the purpose of <br/>
<a id="pl.22.7"></a><var>22.7</var>determining its valuation or classification for property tax purposes must obtain licensure <br/>
<a id="pl.22.8"></a><var>22.8</var>as an accredited assessor from the Minnesota State Board of Assessors by July 1, 2017, or <br/>
<a id="pl.22.9"></a><var>22.9</var>by the time the individual is licensed as a certified assessor, whichever is later.<br/>
<a id="pl.22.10"></a><var>22.10</var><b>EFFECTIVE DATE.</b>This section is effective beginning January 1, 2014.<br/>
<br/>
<a id="bill.2.9.0"></a><a id="pl.22.11"></a><var>22.11</var>    Sec. 9. Minnesota Statutes 2012, section 272.02, subdivision 10, is amended to read:<br/>
<a id="pl.22.12"></a><var>22.12</var>    Subd. 10. <b>Personal property used for pollution control.</b> Personal property used <br/>
<a id="pl.22.13"></a><var>22.13</var>primarily for the abatement and control of air, water, or land pollution is exempt to the <br/>
<a id="pl.22.14"></a><var>22.14</var>extent that it is so used, and real but only if it is not required to be installed by a standard, <br/>
<a id="pl.22.15"></a><var>22.15</var>rule, criteria, guideline, policy, or order of the Minnesota Pollution Control Agency or if it <br/>
<a id="pl.22.16"></a><var>22.16</var>is part of a system for the abatement of pollution that was not required to be installed by <br/>
<a id="pl.22.17"></a><var>22.17</var>a standard, rule, criteria, guideline, policy, or order of the Minnesota Pollution Control <br/>
<a id="pl.22.18"></a><var>22.18</var>Agency when it was originally installed. Real property is exempt if it is used primarily for <br/>
<a id="pl.22.19"></a><var>22.19</var>abatement and control of air, water, or land pollution as part of an agricultural operation, <br/>
<a id="pl.22.20"></a><var>22.20</var>as a part of a centralized treatment and recovery facility operating under a permit <br/>
<a id="pl.22.21"></a><var>22.21</var>issued by the Minnesota Pollution Control Agency pursuant to chapters 
         <statute_ref>115</statute_ref> and 
         <statute_ref>116</statute_ref> <br/>
<a id="pl.22.22"></a><var>22.22</var>and Minnesota Rules, parts 7001.0500 to 7001.0730, and 7045.0020 to 7045.1260, as a <br/>
<a id="pl.22.23"></a><var>22.23</var>wastewater treatment facility and for the treatment, recovery, and stabilization of metals, <br/>
<a id="pl.22.24"></a><var>22.24</var>oils, chemicals, water, sludges, or inorganic materials from hazardous industrial wastes, <br/>
<a id="pl.22.25"></a><var>22.25</var>or as part of an electric generation system. For purposes of this subdivision, personal <br/>
<a id="pl.22.26"></a><var>22.26</var>property includes ponderous machinery and equipment used in a business or production <br/>
<a id="pl.22.27"></a><var>22.27</var>activity that at common law is considered real property.<br/>
<a id="pl.22.28"></a><var>22.28</var>Any taxpayer requesting exemption of all or a portion of any real property or any <br/>
<a id="pl.22.29"></a><var>22.29</var>equipment or device, or part thereof, operated primarily for the control or abatement of <br/>
<a id="pl.22.30"></a><var>22.30</var>air, water, or land pollution shall file an application with the commissioner of revenue. <br/>
<a id="pl.22.31"></a><var>22.31</var>The Minnesota Pollution Control Agency shall upon request of the commissioner furnish <br/>
<a id="pl.22.32"></a><var>22.32</var>information and advice to the commissioner.<br/>
<a id="pl.23.1"></a><var>23.1</var>The information and advice furnished by the Minnesota Pollution Control Agency <br/>
<a id="pl.23.2"></a><var>23.2</var>must include statements as to whether the equipment, device, or real property meets <br/>
<a id="pl.23.3"></a><var>23.3</var>a standard, rule, criteria, guideline, policy, or order of the Minnesota Pollution Control <br/>
<a id="pl.23.4"></a><var>23.4</var>Agency, and whether the equipment, device, or real property is installed or operated <br/>
<a id="pl.23.5"></a><var>23.5</var>in accordance with it. On determining that property qualifies for exemption, the <br/>
<a id="pl.23.6"></a><var>23.6</var>commissioner shall issue an order exempting the property from taxation. The equipment, <br/>
<a id="pl.23.7"></a><var>23.7</var>device, or real property shall continue to be exempt from taxation as long as the order <br/>
<a id="pl.23.8"></a><var>23.8</var>issued by the commissioner remains in effect.<br/>
<br/>
<a id="bill.2.10.0"></a><a id="pl.23.9"></a><var>23.9</var>    Sec. 10. Minnesota Statutes 2012, section 272.02, is amended by adding a subdivision <br/>
<a id="pl.23.10"></a><var>23.10</var>to read:<br/>
<a id="pl.23.11"></a><var>23.11</var>    Subd. 98. <b>Certain property owned by an Indian tribe.</b> (a) Property is exempt that:<br/>
<a id="pl.23.12"></a><var>23.12</var>(1) was classified as 3a under section 273.13, subdivision 24, for taxes payable <br/>
<a id="pl.23.13"></a><var>23.13</var>in 2013;<br/>
<a id="pl.23.14"></a><var>23.14</var>(2) is located in a city of the first class with a population greater than 300,000 as of <br/>
<a id="pl.23.15"></a><var>23.15</var>the 2010 federal census;<br/>
<a id="pl.23.16"></a><var>23.16</var>(3) was, on January 2, 2012, and for the current assessment, is owned by a federally <br/>
<a id="pl.23.17"></a><var>23.17</var>recognized Indian tribe, or its instrumentality, that is located within the state of Minnesota; <br/>
<a id="pl.23.18"></a><var>23.18</var>and<br/>
<a id="pl.23.19"></a><var>23.19</var>(4) is used exclusively for tribal purposes or institutions of purely public charity as <br/>
<a id="pl.23.20"></a><var>23.20</var>defined in subdivision 7.<br/>
<a id="pl.23.21"></a><var>23.21</var>(b) For purposes of this subdivision, a "tribal purpose" means a public purpose <br/>
<a id="pl.23.22"></a><var>23.22</var>as defined in subdivision 8 and includes noncommercial tribal government activities. <br/>
<a id="pl.23.23"></a><var>23.23</var>Property that qualifies for the exemption under this subdivision is limited to no more than <br/>
<a id="pl.23.24"></a><var>23.24</var>two contiguous parcels and structures that do not exceed in the aggregate 20,000 square <br/>
<a id="pl.23.25"></a><var>23.25</var>feet. Property acquired for single-family housing, market-rate apartments, agricultural, or <br/>
<a id="pl.23.26"></a><var>23.26</var>forestry does not qualify for this exemption. The exemption created by this subdivision <br/>
<a id="pl.23.27"></a><var>23.27</var>expires with taxes payable in 2024.<br/>
<a id="pl.23.28"></a><var>23.28</var><b>EFFECTIVE DATE.</b>This section is effective beginning with taxes payable in 2014.<br/>
<br/>
<a id="bill.2.11.0"></a><a id="pl.23.29"></a><var>23.29</var>    Sec. 11. Minnesota Statutes 2012, section 272.02, is amended by adding a subdivision <br/>
<a id="pl.23.30"></a><var>23.30</var>to read:<br/>
<a id="pl.23.31"></a><var>23.31</var>    Subd. 99. <b>Electric generation facility; personal property.</b> (a) Notwithstanding <br/>
<a id="pl.23.32"></a><var>23.32</var>subdivision 9, clause (a), and section 453.54, subdivision 20, attached machinery and <br/>
<a id="pl.23.33"></a><var>23.33</var>other personal property which is part of an electric generation facility that exceeds five <br/>
<a id="pl.24.1"></a><var>24.1</var>megawatts of installed capacity and meets the requirements of this subdivision is exempt. <br/>
<a id="pl.24.2"></a><var>24.2</var>At the time of construction, the facility must:<br/>
<a id="pl.24.3"></a><var>24.3</var>    (1) be designed to utilize natural gas as a primary fuel;<br/>
<a id="pl.24.4"></a><var>24.4</var>    (2) be owned and operated by a municipal power agency as defined in section <br/>
<a id="pl.24.5"></a><var>24.5</var>453.52, subdivision 8;<br/>
<a id="pl.24.6"></a><var>24.6</var>    (3) be designed to utilize reciprocating engines paired with generators to produce <br/>
<a id="pl.24.7"></a><var>24.7</var>electrical power;<br/>
<a id="pl.24.8"></a><var>24.8</var>    (4) be located within the service territory of a municipal power agency's electrical <br/>
<a id="pl.24.9"></a><var>24.9</var>municipal utility that serves load exclusively in a metropolitan county as defined in <br/>
<a id="pl.24.10"></a><var>24.10</var>section 473.121, subdivision 4; <br/>
<a id="pl.24.11"></a><var>24.11</var>(5) be designed to connect directly with a municipality's substation; and<br/>
<a id="pl.24.12"></a><var>24.12</var>(6) have received, by resolution, the approval from the governing body of the county <br/>
<a id="pl.24.13"></a><var>24.13</var>and the city for the exemption of personal property under this subdivision.<br/>
<a id="pl.24.14"></a><var>24.14</var>    (b) Construction of the facility must be commenced after June 1, 2013, and before <br/>
<a id="pl.24.15"></a><var>24.15</var>June 1, 2017. Property eligible for this exemption does not include electric transmission <br/>
<a id="pl.24.16"></a><var>24.16</var>lines and interconnections or gas pipelines and interconnections appurtenant to the <br/>
<a id="pl.24.17"></a><var>24.17</var>property or the facility.<br/>
<a id="pl.24.18"></a><var>24.18</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2013, taxes <br/>
<a id="pl.24.19"></a><var>24.19</var>payable in 2014, and thereafter.<br/>
<br/>
<a id="bill.2.12.0"></a><a id="pl.24.20"></a><var>24.20</var>    Sec. 12. Minnesota Statutes 2012, section 272.025, subdivision 1, is amended to read:<br/>
<a id="pl.24.21"></a><var>24.21</var>    Subdivision 1. <b>Statement of exemption.</b> (a) Except in the case of property owned <br/>
<a id="pl.24.22"></a><var>24.22</var>by the state of Minnesota or any political subdivision thereof, and property exempt from <br/>
<a id="pl.24.23"></a><var>24.23</var>taxation under section 
         <statute_ref>272.02, subdivisions 9, 10, 13, 15, 18, 20, and 22</statute_ref> to 25, and at <br/>
<a id="pl.24.24"></a><var>24.24</var>the times provided in subdivision 3, a taxpayer claiming an exemption from taxation <br/>
<a id="pl.24.25"></a><var>24.25</var>on property described in section 
         <statute_ref>272.02</statute_ref>, subdivisions 1 to 33, must file a statement of <br/>
<a id="pl.24.26"></a><var>24.26</var>exemption with the assessor of the assessment district in which the property is located.<br/>
<a id="pl.24.27"></a><var>24.27</var>(b) A taxpayer claiming an exemption from taxation on property described in section <br/>
<statute_ref><a id="pl.24.28"></a><var>24.28</var>272.02, subdivision 10
         </statute_ref>, must file a statement of exemption with the commissioner of <br/>
<a id="pl.24.29"></a><var>24.29</var>revenue, and with the assessor of the assessment district in which the property is located,<br/>
<a id="pl.24.30"></a><var>24.30</var> on or before February 15 of each year for which the taxpayer claims an exemption.<br/>
<a id="pl.24.31"></a><var>24.31</var>(c) In case of sickness, absence or other disability or for good cause, the assessor <br/>
<a id="pl.24.32"></a><var>24.32</var>or the commissioner may extend the time for filing the statement of exemption for a <br/>
<a id="pl.24.33"></a><var>24.33</var>period not to exceed 60 days.<br/>
<a id="pl.24.34"></a><var>24.34</var>(d) The commissioner of revenue shall prescribe the form and contents of the <br/>
<a id="pl.24.35"></a><var>24.35</var>statement of exemption.<br/>
<br/>
<a id="bill.2.13.0"></a><a id="pl.25.1"></a><var>25.1</var>    Sec. 13. Minnesota Statutes 2012, section 273.117, is amended to read:<br/>
<a id="pl.25.2"></a><var>25.2</var><b>273.117 CONSERVATION PROPERTY TAX VALUATION.</b><br/>
<a id="pl.25.3"></a><var>25.3</var>    The value of real property which is subject to a conservation restriction or easement <br/>
<a id="pl.25.4"></a><var>25.4</var>may be adjusted shall not be reduced by the assessor if:<br/>
<a id="pl.25.5"></a><var>25.5</var>    (a) the restriction or easement is for a conservation purpose as defined in section <br/>
<statute_ref><a id="pl.25.6"></a><var>25.6</var>84.64, subdivision 2
         </statute_ref>, and is recorded on the property; and<br/>
<a id="pl.25.7"></a><var>25.7</var>    (b) the property is being used in accordance with the terms of the conservation <br/>
<a id="pl.25.8"></a><var>25.8</var>restriction or easement.<br/>
<a id="pl.25.9"></a><var>25.9</var>This section does not apply to (1) conservation restrictions or easements covering <br/>
<a id="pl.25.10"></a><var>25.10</var>riparian buffers along lakes, rivers, and streams that are used for water quantity or quality <br/>
<a id="pl.25.11"></a><var>25.11</var>control; or (2) parcels of land in excess of 1,920 acres that allow public motorized access.<br/>
<a id="pl.25.12"></a><var>25.12</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2013 and <br/>
<a id="pl.25.13"></a><var>25.13</var>thereafter, and for taxes payable in 2014 and thereafter.<br/>
<br/>
<a id="bill.2.14.0"></a><a id="pl.25.14"></a><var>25.14</var>    Sec. 14. Minnesota Statutes 2012, section 273.124, subdivision 14, is amended to read:<br/>
<a id="pl.25.15"></a><var>25.15</var>    Subd. 14. <b>Agricultural homesteads; special provisions. </b> (a) Real estate of less than <br/>
<a id="pl.25.16"></a><var>25.16</var>ten acres that is the homestead of its owner must be classified as class 2a under section <br/>
<statute_ref><a id="pl.25.17"></a><var>25.17</var>273.13, subdivision 23
         </statute_ref>, paragraph (a), if:<br/>
<a id="pl.25.18"></a><var>25.18</var>    (1) the parcel on which the house is located is contiguous on at least two sides to (i) <br/>
<a id="pl.25.19"></a><var>25.19</var>agricultural land, (ii) land owned or administered by the United States Fish and Wildlife <br/>
<a id="pl.25.20"></a><var>25.20</var>Service, or (iii) land administered by the Department of Natural Resources on which in <br/>
<a id="pl.25.21"></a><var>25.21</var>lieu taxes are paid under sections 
         <statute_ref>477A.11</statute_ref> to 
         <statute_ref>477A.14</statute_ref>;<br/>
<a id="pl.25.22"></a><var>25.22</var>    (2) its owner also owns a noncontiguous parcel of agricultural land that is at least <br/>
<a id="pl.25.23"></a><var>25.23</var>20 acres;<br/>
<a id="pl.25.24"></a><var>25.24</var>    (3) the noncontiguous land is located not farther than four townships or cities, or a <br/>
<a id="pl.25.25"></a><var>25.25</var>combination of townships or cities from the homestead; and<br/>
<a id="pl.25.26"></a><var>25.26</var>    (4) the agricultural use value of the noncontiguous land and farm buildings is equal <br/>
<a id="pl.25.27"></a><var>25.27</var>to at least 50 percent of the market value of the house, garage, and one acre of land.<br/>
<a id="pl.25.28"></a><var>25.28</var>    Homesteads initially classified as class 2a under the provisions of this paragraph shall <br/>
<a id="pl.25.29"></a><var>25.29</var>remain classified as class 2a, irrespective of subsequent changes in the use of adjoining <br/>
<a id="pl.25.30"></a><var>25.30</var>properties, as long as the homestead remains under the same ownership, the owner owns a <br/>
<a id="pl.25.31"></a><var>25.31</var>noncontiguous parcel of agricultural land that is at least 20 acres, and the agricultural use <br/>
<a id="pl.25.32"></a><var>25.32</var>value qualifies under clause (4). Homestead classification under this paragraph is limited <br/>
<a id="pl.25.33"></a><var>25.33</var>to property that qualified under this paragraph for the 1998 assessment.<br/>
<a id="pl.26.1"></a><var>26.1</var>    (b)(i) Agricultural property shall be classified as the owner's homestead, to the same <br/>
<a id="pl.26.2"></a><var>26.2</var>extent as other agricultural homestead property, if all of the following criteria are met:<br/>
<a id="pl.26.3"></a><var>26.3</var>    (1) the agricultural property consists of at least 40 acres including undivided <br/>
<a id="pl.26.4"></a><var>26.4</var>government lots and correctional 40's;<br/>
<a id="pl.26.5"></a><var>26.5</var>    (2) the owner, the owner's spouse, or a grandchild, child, sibling, or parent of the <br/>
<a id="pl.26.6"></a><var>26.6</var>owner or of the owner's spouse, is actively farming the agricultural property, either on the <br/>
<a id="pl.26.7"></a><var>26.7</var>person's own behalf as an individual or on behalf of a partnership operating a family farm, <br/>
<a id="pl.26.8"></a><var>26.8</var>family farm corporation, joint family farm venture, or limited liability company of which <br/>
<a id="pl.26.9"></a><var>26.9</var>the person is a partner, shareholder, or member;<br/>
<a id="pl.26.10"></a><var>26.10</var>    (3) both the owner of the agricultural property and the person who is actively <br/>
<a id="pl.26.11"></a><var>26.11</var>farming the agricultural property under clause (2), are Minnesota residents;<br/>
<a id="pl.26.12"></a><var>26.12</var>    (4) neither the owner nor the spouse of the owner claims another agricultural <br/>
<a id="pl.26.13"></a><var>26.13</var>homestead in Minnesota; and<br/>
<a id="pl.26.14"></a><var>26.14</var>    (5) neither the owner nor the person actively farming the agricultural property lives <br/>
<a id="pl.26.15"></a><var>26.15</var>farther than four townships or cities, or a combination of four townships or cities, from the <br/>
<a id="pl.26.16"></a><var>26.16</var>agricultural property, except that if the owner or the owner's spouse is required to live in <br/>
<a id="pl.26.17"></a><var>26.17</var>employer-provided housing, the owner or owner's spouse, whichever is actively farming <br/>
<a id="pl.26.18"></a><var>26.18</var>the agricultural property, may live more than four townships or cities, or combination of <br/>
<a id="pl.26.19"></a><var>26.19</var>four townships or cities from the agricultural property.<br/>
<a id="pl.26.20"></a><var>26.20</var>    The relationship under this paragraph may be either by blood or marriage.<br/>
<a id="pl.26.21"></a><var>26.21</var>    (ii) Agricultural property held by a trustee under a trust is eligible for agricultural <br/>
<a id="pl.26.22"></a><var>26.22</var>homestead classification under this paragraph if the qualifications in clause (i) are met, <br/>
<a id="pl.26.23"></a><var>26.23</var>except that "owner" means the grantor of the trust.<br/>
<a id="pl.26.24"></a><var>26.24</var>    (iii) Property containing the residence of an owner who owns qualified property <br/>
<a id="pl.26.25"></a><var>26.25</var>under clause (i) shall be classified as part of the owner's agricultural homestead, if that <br/>
<a id="pl.26.26"></a><var>26.26</var>property is also used for noncommercial storage or drying of agricultural crops.<br/>
<a id="pl.26.27"></a><var>26.27</var>(iv) As used in this paragraph, "agricultural property" means class 2a property and <br/>
<a id="pl.26.28"></a><var>26.28</var>any class 2b property that is contiguous to and under the same ownership as the class 2a <br/>
<a id="pl.26.29"></a><var>26.29</var>property.<br/>
<a id="pl.26.30"></a><var>26.30</var>    (c) (b) Noncontiguous land shall be included as part of a homestead under section <br/>
<statute_ref><a id="pl.26.31"></a><var>26.31</var>273.13, subdivision 23
         </statute_ref>, paragraph (a), only if the homestead is classified as class 2a <br/>
<a id="pl.26.32"></a><var>26.32</var>and the detached land is located in the same township or city, or not farther than four <br/>
<a id="pl.26.33"></a><var>26.33</var>townships or cities or combination thereof from the homestead. Any taxpayer of these <br/>
<a id="pl.26.34"></a><var>26.34</var>noncontiguous lands must notify the county assessor that the noncontiguous land is part of <br/>
<a id="pl.26.35"></a><var>26.35</var>the taxpayer's homestead, and, if the homestead is located in another county, the taxpayer <br/>
<a id="pl.26.36"></a><var>26.36</var>must also notify the assessor of the other county.<br/>
<a id="pl.27.1"></a><var>27.1</var>    (d) (c) Agricultural land used for purposes of a homestead and actively farmed by a <br/>
<a id="pl.27.2"></a><var>27.2</var>person holding a vested remainder interest in it must be classified as a homestead under <br/>
<a id="pl.27.3"></a><var>27.3</var>section 
         <statute_ref>273.13, subdivision 23</statute_ref>, paragraph (a). If agricultural land is classified class 2a, <br/>
<a id="pl.27.4"></a><var>27.4</var>any other dwellings on the land used for purposes of a homestead by persons holding <br/>
<a id="pl.27.5"></a><var>27.5</var>vested remainder interests who are actively engaged in farming the property, and up to <br/>
<a id="pl.27.6"></a><var>27.6</var>one acre of the land surrounding each homestead and reasonably necessary for the use of <br/>
<a id="pl.27.7"></a><var>27.7</var>the dwelling as a home, must also be assessed class 2a.<br/>
<a id="pl.27.8"></a><var>27.8</var>    (e) (d) Agricultural land and buildings that were class 2a homestead property under <br/>
<a id="pl.27.9"></a><var>27.9</var>section 
         <statute_ref>273.13, subdivision 23</statute_ref>, paragraph (a), for the 1997 assessment shall remain <br/>
<a id="pl.27.10"></a><var>27.10</var>classified as agricultural homesteads for subsequent assessments if:<br/>
<a id="pl.27.11"></a><var>27.11</var>    (1) the property owner abandoned the homestead dwelling located on the agricultural <br/>
<a id="pl.27.12"></a><var>27.12</var>homestead as a result of the April 1997 floods;<br/>
<a id="pl.27.13"></a><var>27.13</var>    (2) the property is located in the county of Polk, Clay, Kittson, Marshall, Norman, <br/>
<a id="pl.27.14"></a><var>27.14</var>or Wilkin;<br/>
<a id="pl.27.15"></a><var>27.15</var>    (3) the agricultural land and buildings remain under the same ownership for the <br/>
<a id="pl.27.16"></a><var>27.16</var>current assessment year as existed for the 1997 assessment year and continue to be used <br/>
<a id="pl.27.17"></a><var>27.17</var>for agricultural purposes;<br/>
<a id="pl.27.18"></a><var>27.18</var>    (4) the dwelling occupied by the owner is located in Minnesota and is within 30 <br/>
<a id="pl.27.19"></a><var>27.19</var>miles of one of the parcels of agricultural land that is owned by the taxpayer; and<br/>
<a id="pl.27.20"></a><var>27.20</var>    (5) the owner notifies the county assessor that the relocation was due to the 1997 <br/>
<a id="pl.27.21"></a><var>27.21</var>floods, and the owner furnishes the assessor any information deemed necessary by the <br/>
<a id="pl.27.22"></a><var>27.22</var>assessor in verifying the change in dwelling. Further notifications to the assessor are not <br/>
<a id="pl.27.23"></a><var>27.23</var>required if the property continues to meet all the requirements in this paragraph and any <br/>
<a id="pl.27.24"></a><var>27.24</var>dwellings on the agricultural land remain uninhabited.<br/>
<a id="pl.27.25"></a><var>27.25</var>    (f) Agricultural land and buildings that were class 2a homestead property under <br/>
<a id="pl.27.26"></a><var>27.26</var>section 
<statute_ref>273.13, subdivision 23</statute_ref>, paragraph (a), for the 1998 assessment shall remain <br/>
<a id="pl.27.27"></a><var>27.27</var>classified agricultural homesteads for subsequent assessments if:<br/>
<a id="pl.27.28"></a><var>27.28</var>    (1) the property owner abandoned the homestead dwelling located on the agricultural <br/>
<a id="pl.27.29"></a><var>27.29</var>homestead as a result of damage caused by a March 29, 1998, tornado;<br/>
<a id="pl.27.30"></a><var>27.30</var>    (2) the property is located in the county of Blue Earth, Brown, Cottonwood, <br/>
<a id="pl.27.31"></a><var>27.31</var>LeSueur, Nicollet, Nobles, or Rice;<br/>
<a id="pl.27.32"></a><var>27.32</var>    (3) the agricultural land and buildings remain under the same ownership for the <br/>
<a id="pl.27.33"></a><var>27.33</var>current assessment year as existed for the 1998 assessment year;<br/>
<a id="pl.27.34"></a><var>27.34</var>    (4) the dwelling occupied by the owner is located in this state and is within 50 miles <br/>
<a id="pl.27.35"></a><var>27.35</var>of one of the parcels of agricultural land that is owned by the taxpayer; and<br/>
<a id="pl.28.1"></a><var>28.1</var>    (5) the owner notifies the county assessor that the relocation was due to a March 29, <br/>
<a id="pl.28.2"></a><var>28.2</var>1998, tornado, and the owner furnishes the assessor any information deemed necessary by <br/>
<a id="pl.28.3"></a><var>28.3</var>the assessor in verifying the change in homestead dwelling. For taxes payable in 1999, the <br/>
<a id="pl.28.4"></a><var>28.4</var>owner must notify the assessor by December 1, 1998. Further notifications to the assessor <br/>
<a id="pl.28.5"></a><var>28.5</var>are not required if the property continues to meet all the requirements in this paragraph <br/>
<a id="pl.28.6"></a><var>28.6</var>and any dwellings on the agricultural land remain uninhabited.<br/>
<a id="pl.28.7"></a><var>28.7</var>    (g) Agricultural property of a family farm corporation, joint family farm venture, <br/>
<a id="pl.28.8"></a><var>28.8</var>family farm limited liability company, or partnership operating a family farm as described <br/>
<a id="pl.28.9"></a><var>28.9</var>under subdivision 8 shall be classified homestead, to the same extent as other agricultural <br/>
<a id="pl.28.10"></a><var>28.10</var>homestead property, if all of the following criteria are met:<br/>
<a id="pl.28.11"></a><var>28.11</var>    (1) the property consists of at least 40 acres including undivided government lots <br/>
<a id="pl.28.12"></a><var>28.12</var>and correctional 40's;<br/>
<a id="pl.28.13"></a><var>28.13</var>    (2) a shareholder, member, or partner of that entity is actively farming the <br/>
<a id="pl.28.14"></a><var>28.14</var>agricultural property;<br/>
<a id="pl.28.15"></a><var>28.15</var>    (3) that shareholder, member, or partner who is actively farming the agricultural <br/>
<a id="pl.28.16"></a><var>28.16</var>property is a Minnesota resident;<br/>
<a id="pl.28.17"></a><var>28.17</var>    (4) neither that shareholder, member, or partner, nor the spouse of that shareholder, <br/>
<a id="pl.28.18"></a><var>28.18</var>member, or partner claims another agricultural homestead in Minnesota; and<br/>
<a id="pl.28.19"></a><var>28.19</var>    (5) that shareholder, member, or partner does not live farther than four townships or <br/>
<a id="pl.28.20"></a><var>28.20</var>cities, or a combination of four townships or cities, from the agricultural property.<br/>
<a id="pl.28.21"></a><var>28.21</var>    Homestead treatment applies under this paragraph for property leased to a family <br/>
<a id="pl.28.22"></a><var>28.22</var>farm corporation, joint farm venture, limited liability company, or partnership operating a <br/>
<a id="pl.28.23"></a><var>28.23</var>family farm if legal title to the property is in the name of an individual who is a member, <br/>
<a id="pl.28.24"></a><var>28.24</var>shareholder, or partner in the entity.<br/>
<a id="pl.28.25"></a><var>28.25</var>    (h) (e) To be eligible for the special agricultural homestead under this subdivision, <br/>
<a id="pl.28.26"></a><var>28.26</var>an initial full application must be submitted to the county assessor where the property is <br/>
<a id="pl.28.27"></a><var>28.27</var>located. Owners and the persons who are actively farming the property shall be required <br/>
<a id="pl.28.28"></a><var>28.28</var>to complete only a one-page abbreviated version of the application in each subsequent <br/>
<a id="pl.28.29"></a><var>28.29</var>year provided that none of the following items have changed since the initial application:<br/>
<a id="pl.28.30"></a><var>28.30</var>    (1) the day-to-day operation, administration, and financial risks remain the same;<br/>
<a id="pl.28.31"></a><var>28.31</var>    (2) the owners and the persons actively farming the property continue to live within <br/>
<a id="pl.28.32"></a><var>28.32</var>the four townships or city criteria and are Minnesota residents;<br/>
<a id="pl.28.33"></a><var>28.33</var>    (3) the same operator of the agricultural property is listed with the Farm Service <br/>
<a id="pl.28.34"></a><var>28.34</var>Agency;<br/>
<a id="pl.28.35"></a><var>28.35</var>    (4) a Schedule F or equivalent income tax form was filed for the most recent year;<br/>
<a id="pl.28.36"></a><var>28.36</var>    (5) the property's acreage is unchanged; and<br/>
<a id="pl.29.1"></a><var>29.1</var>    (6) none of the property's acres have been enrolled in a federal or state farm program <br/>
<a id="pl.29.2"></a><var>29.2</var>since the initial application.<br/>
<a id="pl.29.3"></a><var>29.3</var>    The owners and any persons who are actively farming the property must include <br/>
<a id="pl.29.4"></a><var>29.4</var>the appropriate Social Security numbers, and sign and date the application. If any of the <br/>
<a id="pl.29.5"></a><var>29.5</var>specified information has changed since the full application was filed, the owner must <br/>
<a id="pl.29.6"></a><var>29.6</var>notify the assessor, and must complete a new application to determine if the property <br/>
<a id="pl.29.7"></a><var>29.7</var>continues to qualify for the special agricultural homestead. The commissioner of revenue <br/>
<a id="pl.29.8"></a><var>29.8</var>shall prepare a standard reapplication form for use by the assessors.<br/>
<a id="pl.29.9"></a><var>29.9</var>    (i) (f) Agricultural land and buildings that were class 2a homestead property under <br/>
<a id="pl.29.10"></a><var>29.10</var>section 
         <statute_ref>273.13, subdivision 23</statute_ref>, paragraph (a), for the 2007 assessment shall remain <br/>
<a id="pl.29.11"></a><var>29.11</var>classified agricultural homesteads for subsequent assessments if:<br/>
<a id="pl.29.12"></a><var>29.12</var>    (1) the property owner abandoned the homestead dwelling located on the agricultural <br/>
<a id="pl.29.13"></a><var>29.13</var>homestead as a result of damage caused by the August 2007 floods;<br/>
<a id="pl.29.14"></a><var>29.14</var>    (2) the property is located in the county of Dodge, Fillmore, Houston, Olmsted, <br/>
<a id="pl.29.15"></a><var>29.15</var>Steele, Wabasha, or Winona;<br/>
<a id="pl.29.16"></a><var>29.16</var>    (3) the agricultural land and buildings remain under the same ownership for the <br/>
<a id="pl.29.17"></a><var>29.17</var>current assessment year as existed for the 2007 assessment year;<br/>
<a id="pl.29.18"></a><var>29.18</var>    (4) the dwelling occupied by the owner is located in this state and is within 50 miles <br/>
<a id="pl.29.19"></a><var>29.19</var>of one of the parcels of agricultural land that is owned by the taxpayer; and<br/>
<a id="pl.29.20"></a><var>29.20</var>    (5) the owner notifies the county assessor that the relocation was due to the August <br/>
<a id="pl.29.21"></a><var>29.21</var>2007 floods, and the owner furnishes the assessor any information deemed necessary by <br/>
<a id="pl.29.22"></a><var>29.22</var>the assessor in verifying the change in homestead dwelling. For taxes payable in 2009, the <br/>
<a id="pl.29.23"></a><var>29.23</var>owner must notify the assessor by December 1, 2008. Further notifications to the assessor <br/>
<a id="pl.29.24"></a><var>29.24</var>are not required if the property continues to meet all the requirements in this paragraph <br/>
<a id="pl.29.25"></a><var>29.25</var>and any dwellings on the agricultural land remain uninhabited.<br/>
<a id="pl.29.26"></a><var>29.26</var>    (j) Agricultural land and buildings that were class 2a homestead property under <br/>
<a id="pl.29.27"></a><var>29.27</var>section 
<statute_ref>273.13, subdivision 23</statute_ref>, paragraph (a), for the 2008 assessment shall remain <br/>
<a id="pl.29.28"></a><var>29.28</var>classified as agricultural homesteads for subsequent assessments if:<br/>
<a id="pl.29.29"></a><var>29.29</var>    (1) the property owner abandoned the homestead dwelling located on the agricultural <br/>
<a id="pl.29.30"></a><var>29.30</var>homestead as a result of the March 2009 floods;<br/>
<a id="pl.29.31"></a><var>29.31</var>    (2) the property is located in the county of Marshall;<br/>
<a id="pl.29.32"></a><var>29.32</var>    (3) the agricultural land and buildings remain under the same ownership for the <br/>
<a id="pl.29.33"></a><var>29.33</var>current assessment year as existed for the 2008 assessment year and continue to be used <br/>
<a id="pl.29.34"></a><var>29.34</var>for agricultural purposes;<br/>
<a id="pl.29.35"></a><var>29.35</var>    (4) the dwelling occupied by the owner is located in Minnesota and is within 50 <br/>
<a id="pl.29.36"></a><var>29.36</var>miles of one of the parcels of agricultural land that is owned by the taxpayer; and<br/>
<a id="pl.30.1"></a><var>30.1</var>    (5) the owner notifies the county assessor that the relocation was due to the 2009 <br/>
<a id="pl.30.2"></a><var>30.2</var>floods, and the owner furnishes the assessor any information deemed necessary by the <br/>
<a id="pl.30.3"></a><var>30.3</var>assessor in verifying the change in dwelling. Further notifications to the assessor are not <br/>
<a id="pl.30.4"></a><var>30.4</var>required if the property continues to meet all the requirements in this paragraph and any <br/>
<a id="pl.30.5"></a><var>30.5</var>dwellings on the agricultural land remain uninhabited.<br/>
<a id="pl.30.6"></a><var>30.6</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2015 and <br/>
<a id="pl.30.7"></a><var>30.7</var>thereafter.<br/>
<br/>
<a id="bill.2.15.0"></a><a id="pl.30.8"></a><var>30.8</var>    Sec. 15. Minnesota Statutes 2012, section 273.124, subdivision 21, is amended to read:<br/>
<a id="pl.30.9"></a><var>30.9</var>    Subd. 21. <b>Trust property; homestead.</b> Real or personal property held by a trustee <br/>
<a id="pl.30.10"></a><var>30.10</var>under a trust is eligible for classification as homestead property if the property satisfies the <br/>
<a id="pl.30.11"></a><var>30.11</var>requirements of paragraph (a), (b), (c), or (d).<br/>
<a id="pl.30.12"></a><var>30.12</var>    (a) The grantor or surviving spouse of the grantor of the trust occupies and uses the <br/>
<a id="pl.30.13"></a><var>30.13</var>property as a homestead.<br/>
<a id="pl.30.14"></a><var>30.14</var>    (b) A relative or surviving relative of the grantor who meets the requirements <br/>
<a id="pl.30.15"></a><var>30.15</var>of subdivision 1, paragraph (c), in the case of residential real estate; or subdivision 1, <br/>
<a id="pl.30.16"></a><var>30.16</var>paragraph (d), in the case of agricultural property, occupies and uses the property as <br/>
<a id="pl.30.17"></a><var>30.17</var>a homestead.<br/>
<a id="pl.30.18"></a><var>30.18</var>    (c) A family farm corporation, joint farm venture, limited liability company, or <br/>
<a id="pl.30.19"></a><var>30.19</var>partnership operating a family farm in which the grantor or the grantor's surviving spouse <br/>
<a id="pl.30.20"></a><var>30.20</var>is a shareholder, member, or partner rents the property; and, either (1) a shareholder, <br/>
<a id="pl.30.21"></a><var>30.21</var>member, or partner of the corporation, joint farm venture, limited liability company, or <br/>
<a id="pl.30.22"></a><var>30.22</var>partnership occupies and uses the property as a homestead; or (2) the property is at least <br/>
<a id="pl.30.23"></a><var>30.23</var>40 acres, including undivided government lots and correctional 40's, and a shareholder, <br/>
<a id="pl.30.24"></a><var>30.24</var>member, or partner of the tenant-entity is actively farming the property on behalf of the <br/>
<a id="pl.30.25"></a><var>30.25</var>corporation, joint farm venture, limited liability company, or partnership.<br/>
<a id="pl.30.26"></a><var>30.26</var>    (d) A person who has received homestead classification for property taxes payable in <br/>
<a id="pl.30.27"></a><var>30.27</var>2000 on the basis of an unqualified legal right under the terms of the trust agreement to <br/>
<a id="pl.30.28"></a><var>30.28</var>occupy the property as that person's homestead and who continues to use the property as <br/>
<a id="pl.30.29"></a><var>30.29</var>a homestead; or, a person who received the homestead classification for taxes payable <br/>
<a id="pl.30.30"></a><var>30.30</var>in 2005 under paragraph (c) who does not qualify under paragraph (c) for taxes payable <br/>
<a id="pl.30.31"></a><var>30.31</var>in 2006 or thereafter but who continues to qualify under paragraph (c) as it existed for <br/>
<a id="pl.30.32"></a><var>30.32</var>taxes payable in 2005.<br/>
<a id="pl.30.33"></a><var>30.33</var>    For purposes of this subdivision, "grantor" is defined as the person creating or <br/>
<a id="pl.30.34"></a><var>30.34</var>establishing a testamentary, inter Vivos, revocable or irrevocable trust by written <br/>
<a id="pl.30.35"></a><var>30.35</var>instrument or through the exercise of a power of appointment.<br/>
<a id="pl.31.1"></a><var>31.1</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2015 and <br/>
<a id="pl.31.2"></a><var>31.2</var>thereafter.<br/>
<br/>
<a id="bill.2.16.0"></a><a id="pl.31.3"></a><var>31.3</var>    Sec. 16. Minnesota Statutes 2012, section 273.128, is amended by adding a subdivision <br/>
<a id="pl.31.4"></a><var>31.4</var>to read:<br/>
<a id="pl.31.5"></a><var>31.5</var>    Subd. 1a. <b>Determination of property tax maximum.</b> (a) Property taxes on the <br/>
<a id="pl.31.6"></a><var>31.6</var>portion of a rental property certified as class 4d may not exceed ten percent of the gross <br/>
<a id="pl.31.7"></a><var>31.7</var>potential rent for the calendar year in which an application is filed for the units that qualify <br/>
<a id="pl.31.8"></a><var>31.8</var>for certification under this section. "Gross potential rent" means the maximum annual rent <br/>
<a id="pl.31.9"></a><var>31.9</var>the owner of a property is authorized to charge for rental housing units subject to a legally <br/>
<a id="pl.31.10"></a><var>31.10</var>binding rent restriction agreement, assuming that all of the units are occupied at all times. <br/>
<a id="pl.31.11"></a><var>31.11</var>The Housing Finance Agency will adjust gross potential rent annually to the extent of and <br/>
<a id="pl.31.12"></a><var>31.12</var>in accordance with changes in the rent restrictions set forth in the rent restriction agreement.<br/>
<a id="pl.31.13"></a><var>31.13</var>    (b) In order to determine the gross potential rent for a rental property, a separate <br/>
<a id="pl.31.14"></a><var>31.14</var>application must be filed with the Housing Finance Agency by March 31 of the assessment <br/>
<a id="pl.31.15"></a><var>31.15</var>year to establish the maximum property taxes for the portion of a property certified under <br/>
<a id="pl.31.16"></a><var>31.16</var>this section. In addition to the information required in subdivision 2, the application <br/>
<a id="pl.31.17"></a><var>31.17</var>under this subdivision must include a true and correct copy of any regulatory agreements <br/>
<a id="pl.31.18"></a><var>31.18</var>or other documents establishing the rent restrictions for the units eligible for class 4d <br/>
<a id="pl.31.19"></a><var>31.19</var>classification, unless such documentation was provided to the Housing Finance Agency <br/>
<a id="pl.31.20"></a><var>31.20</var>in a previous year and the owner certifies that the rent restrictions have not changed. <br/>
<a id="pl.31.21"></a><var>31.21</var>The Housing Finance Agency may charge an application fee approximately equal to the <br/>
<a id="pl.31.22"></a><var>31.22</var>costs of determining the gross potential rent for the property, any annual adjustments and <br/>
<a id="pl.31.23"></a><var>31.23</var>processing, and reviewing the application. The applicant must pay the application fee to <br/>
<a id="pl.31.24"></a><var>31.24</var>the Housing Finance Agency for deposit in the housing development fund. The application <br/>
<a id="pl.31.25"></a><var>31.25</var>fee under this subdivision is in addition to the application fee under subdivision 2.<br/>
<a id="pl.31.26"></a><var>31.26</var>    (c) By June 1 of each assessment year, the Housing Finance Agency must certify to <br/>
<a id="pl.31.27"></a><var>31.27</var>the appropriate county or city assessors, the specific properties that are qualified for the <br/>
<a id="pl.31.28"></a><var>31.28</var>maximum property tax limitation and the amount of the annual gross potential rent for the <br/>
<a id="pl.31.29"></a><var>31.29</var>units in the building that qualify for class 4d certification. The auditor shall calculate the <br/>
<a id="pl.31.30"></a><var>31.30</var>maximum property tax for the units that qualify based on the certification from the Housing <br/>
<a id="pl.31.31"></a><var>31.31</var>Finance Agency for taxes payable the year following the assessment year certification.<br/>
<a id="pl.31.32"></a><var>31.32</var><b>EFFECTIVE DATE.</b>This section is effective beginning with assessment year 2015.<br/>
<br/>
<a id="bill.2.17.0"></a><a id="pl.31.33"></a><var>31.33</var>    Sec. 17. Minnesota Statutes 2012, section 273.1398, subdivision 4, is amended to read:<br/>
<a id="pl.32.1"></a><var>32.1</var>    Subd. 4. <b>Disparity reduction credit.</b> (a) Beginning with taxes payable in 1989, <br/>
<a id="pl.32.2"></a><var>32.2</var>class 4a and class 3a property qualifies for a disparity reduction credit if: (1) the property <br/>
<a id="pl.32.3"></a><var>32.3</var>is located in a border city that has an enterprise zone, as defined in section 
         <statute_ref>469.166</statute_ref>; (2) <br/>
<a id="pl.32.4"></a><var>32.4</var>the property is located in a city with a population greater than 2,500 and less than 35,000 <br/>
<a id="pl.32.5"></a><var>32.5</var>according to the 1980 decennial census; (3) the city is adjacent to a city in another state or <br/>
<a id="pl.32.6"></a><var>32.6</var>immediately adjacent to a city adjacent to a city in another state; and (4) the adjacent city <br/>
<a id="pl.32.7"></a><var>32.7</var>in the other state has a population of greater than 5,000 and less than 75,000 according to <br/>
<a id="pl.32.8"></a><var>32.8</var>the 1980 decennial census.<br/>
<a id="pl.32.9"></a><var>32.9</var>    (b) The credit is an amount sufficient to reduce (i) the taxes levied on class 4a <br/>
<a id="pl.32.10"></a><var>32.10</var>property to 2.3 1.9 percent of the property's market value and (ii) the tax on class 3a <br/>
<a id="pl.32.11"></a><var>32.11</var>property to 2.3 1.9 percent of market value.<br/>
<a id="pl.32.12"></a><var>32.12</var>    (c) The county auditor shall annually certify the costs of the credits to the <br/>
<a id="pl.32.13"></a><var>32.13</var>Department of Revenue. The department shall reimburse local governments for the <br/>
<a id="pl.32.14"></a><var>32.14</var>property taxes forgone as the result of the credits in proportion to their total levies.<br/>
<a id="pl.32.15"></a><var>32.15</var><b>EFFECTIVE DATE.</b>This section is effective beginning with taxes payable in 2014.<br/>
<br/>
<a id="bill.2.18.0"></a><a id="pl.32.16"></a><var>32.16</var>    Sec. 18. Minnesota Statutes 2012, section 275.025, subdivision 1, is amended to read:<br/>
<a id="pl.32.17"></a><var>32.17</var>    Subdivision 1. <b>Levy amount.</b> The state general levy is levied against <br/>
<a id="pl.32.18"></a><var>32.18</var>commercial-industrial property and seasonal residential recreational property, as defined <br/>
<a id="pl.32.19"></a><var>32.19</var>in this section. The state general levy base amount is $592,000,000 for taxes payable in <br/>
<a id="pl.32.20"></a><var>32.20</var>2002. For taxes payable in subsequent years on seasonal residential recreational property, <br/>
<a id="pl.32.21"></a><var>32.21</var>the levy base amount is increased each year by multiplying the levy base amount for that <br/>
<a id="pl.32.22"></a><var>32.22</var>class of property for the prior year by the sum of one plus the rate of increase, if any, in the <br/>
<a id="pl.32.23"></a><var>32.23</var>implicit price deflator for government consumption expenditures and gross investment for <br/>
<a id="pl.32.24"></a><var>32.24</var>state and local governments prepared by the Bureau of Economic Analysts of the United <br/>
<a id="pl.32.25"></a><var>32.25</var>States Department of Commerce for the 12-month period ending March 31 of the year <br/>
<a id="pl.32.26"></a><var>32.26</var>prior to the year the taxes are payable. For taxes payable in 2014 and subsequent years <br/>
<a id="pl.32.27"></a><var>32.27</var>on commercial-industrial property, the tax is imposed under this subdivision at the rate <br/>
<a id="pl.32.28"></a><var>32.28</var>of the tax imposed under this subdivision for taxes payable in 2002. The tax under this <br/>
<a id="pl.32.29"></a><var>32.29</var>section is not treated as a local tax rate under section 
         <statute_ref>469.177</statute_ref> and is not the levy of a <br/>
<a id="pl.32.30"></a><var>32.30</var>governmental unit under chapters 276A and 473F.<br/>
<a id="pl.32.31"></a><var>32.31</var>The commissioner shall increase or decrease the preliminary or final rate for a year <br/>
<a id="pl.32.32"></a><var>32.32</var>as necessary to account for errors and tax base changes that affected a preliminary or final <br/>
<a id="pl.32.33"></a><var>32.33</var>rate for either of the two preceding years. Adjustments are allowed to the extent that the <br/>
<a id="pl.32.34"></a><var>32.34</var>necessary information is available to the commissioner at the time the rates for a year must <br/>
<a id="pl.32.35"></a><var>32.35</var>be certified, and for the following reasons:<br/>
<a id="pl.33.1"></a><var>33.1</var>(1) an erroneous report of taxable value by a local official;<br/>
<a id="pl.33.2"></a><var>33.2</var>(2) an erroneous calculation by the commissioner; and<br/>
<a id="pl.33.3"></a><var>33.3</var>(3) an increase or decrease in taxable value for commercial-industrial or seasonal <br/>
<a id="pl.33.4"></a><var>33.4</var>residential recreational property reported on the abstracts of tax lists submitted under <br/>
<a id="pl.33.5"></a><var>33.5</var>section 
         <statute_ref>275.29</statute_ref> that was not reported on the abstracts of assessment submitted under <br/>
<a id="pl.33.6"></a><var>33.6</var>section 
         <statute_ref>270C.89</statute_ref> for the same year.<br/>
<a id="pl.33.7"></a><var>33.7</var>The commissioner may, but need not, make adjustments if the total difference in the tax <br/>
<a id="pl.33.8"></a><var>33.8</var>levied for the year would be less than $100,000.<br/>
<a id="pl.33.9"></a><var>33.9</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2014 and <br/>
<a id="pl.33.10"></a><var>33.10</var>thereafter.<br/>
<br/>
<a id="bill.2.19.0"></a><a id="pl.33.11"></a><var>33.11</var>    Sec. 19. Minnesota Statutes 2012, section 275.025, subdivision 2, is amended to read:<br/>
<a id="pl.33.12"></a><var>33.12</var>    Subd. 2. <b>Commercial-industrial tax capacity.</b> For the purposes of this section, <br/>
<a id="pl.33.13"></a><var>33.13</var>"commercial-industrial tax capacity" means the tax capacity of all taxable property <br/>
<a id="pl.33.14"></a><var>33.14</var>classified as class 3 or class 5(1) under section 
         <statute_ref>273.13</statute_ref>, except for electric generation <br/>
<a id="pl.33.15"></a><var>33.15</var>attached machinery under class 3 and property described in section 
         <statute_ref>473.625</statute_ref>. County <br/>
<a id="pl.33.16"></a><var>33.16</var>commercial-industrial tax capacity amounts are not adjusted for the captured net tax <br/>
<a id="pl.33.17"></a><var>33.17</var>capacity of a tax increment financing district under section 
         <statute_ref>469.177, subdivision 2</statute_ref>, the <br/>
<a id="pl.33.18"></a><var>33.18</var>net tax capacity of transmission lines deducted from a local government's total net tax <br/>
<a id="pl.33.19"></a><var>33.19</var>capacity under section 
         <statute_ref>273.425</statute_ref>, or fiscal disparities contribution and distribution net <br/>
<a id="pl.33.20"></a><var>33.20</var>tax capacities under chapter 276A or 473F.<br/>
<a id="pl.33.21"></a><var>33.21</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2014 and <br/>
<a id="pl.33.22"></a><var>33.22</var>thereafter.<br/>
<br/>
<a id="bill.2.20.0"></a><a id="pl.33.23"></a><var>33.23</var>    Sec. 20. Minnesota Statutes 2012, section 279.37, subdivision 1a, is amended to read:<br/>
<a id="pl.33.24"></a><var>33.24</var>    Subd. 1a. <b>Class 3a property.</b> (a) The delinquent taxes upon a parcel of property <br/>
<a id="pl.33.25"></a><var>33.25</var>which was classified class 3a, for the previous year's assessment and had a total market <br/>
<a id="pl.33.26"></a><var>33.26</var>value of $500,000 or less for that same assessment shall be eligible to be composed into a <br/>
<a id="pl.33.27"></a><var>33.27</var>confession of judgment with the approval of the county auditor. Property qualifying under <br/>
<a id="pl.33.28"></a><var>33.28</var>this subdivision shall be subject to the same provisions as provided in this section except <br/>
<a id="pl.33.29"></a><var>33.29</var>as provided in paragraphs (b) to (d) (f).<br/>
<a id="pl.33.30"></a><var>33.30</var>    (b) Current year taxes and penalty due at the time the confession of judgment <br/>
<a id="pl.33.31"></a><var>33.31</var>is entered must be paid.<br/>
<a id="pl.33.32"></a><var>33.32</var>    (c) The down payment must include all special assessments due in the current tax <br/>
<a id="pl.33.33"></a><var>33.33</var>year, all delinquent special assessments, and 20 percent of the ad valorem tax, penalties, <br/>
<a id="pl.34.1"></a><var>34.1</var>and interest accrued against the parcel. The balance remaining is payable in four equal <br/>
<a id="pl.34.2"></a><var>34.2</var>annual installments. A municipality as defined in section 429.011, cities of the first class, <br/>
<a id="pl.34.3"></a><var>34.3</var>and other special assessment authorities, who have certified special assessments against <br/>
<a id="pl.34.4"></a><var>34.4</var>any parcel of property, may, through resolution, waive the requirement of payment of all <br/>
<a id="pl.34.5"></a><var>34.5</var>current and delinquent special assessments at the time the confession is entered. If the <br/>
<a id="pl.34.6"></a><var>34.6</var>municipality, city, or authority grants the waiver, 100 percent of all current year taxes, <br/>
<a id="pl.34.7"></a><var>34.7</var>special assessments, and penalties due at the time, along with 20 percent of all delinquent <br/>
<a id="pl.34.8"></a><var>34.8</var>taxes, special assessments, penalties, interest, and fees must be paid. The balance <br/>
<a id="pl.34.9"></a><var>34.9</var>remaining shall be subject to and included in the installment plan.<br/>
<a id="pl.34.10"></a><var>34.10</var>(d) When there are current and delinquent special assessments certified and billed <br/>
<a id="pl.34.11"></a><var>34.11</var>against a parcel, the assessment authority or municipality as defined in section 429.011 <br/>
<a id="pl.34.12"></a><var>34.12</var>may abate under section 375.192, subdivision 2, all special assessments and the penalty <br/>
<a id="pl.34.13"></a><var>34.13</var>and interest affiliated with the special assessments, and reassess the special assessments, <br/>
<a id="pl.34.14"></a><var>34.14</var>penalties, and interest accrued thereon, under section 429.071, subdivision 2. The <br/>
<a id="pl.34.15"></a><var>34.15</var>municipality shall notify the county auditor of its intent to reassess as a precondition <br/>
<a id="pl.34.16"></a><var>34.16</var>to the entry of the confession of judgment. Upon the notice to abate and reassess, the <br/>
<a id="pl.34.17"></a><var>34.17</var>municipality shall, through resolution, notify the county auditor to remove all current <br/>
<a id="pl.34.18"></a><var>34.18</var>and delinquent special assessments and the accrued penalty and interest on the special <br/>
<a id="pl.34.19"></a><var>34.19</var>assessments, and the payment of all or a portion of the current and delinquent assessments <br/>
<a id="pl.34.20"></a><var>34.20</var>shall not be required as part of the down payment due at the time the confession of <br/>
<a id="pl.34.21"></a><var>34.21</var>judgment is entered in accordance with paragraph (c).<br/>
<a id="pl.34.22"></a><var>34.22</var>    (d) (e) The amounts entered in judgment bear interest at the rate provided in section <br/>
<statute_ref><a id="pl.34.23"></a><var>34.23</var>279.03, subdivision 1a
         </statute_ref>, commencing with the date the judgment is entered. The interest <br/>
<a id="pl.34.24"></a><var>34.24</var>rate is subject to change each year on the unpaid balance in the manner provided in section <br/>
<statute_ref><a id="pl.34.25"></a><var>34.25</var>279.03, subdivision 1a
         </statute_ref>.<br/>
<a id="pl.34.26"></a><var>34.26</var>(f) The county auditor may require conditions on properties including, but not <br/>
<a id="pl.34.27"></a><var>34.27</var>limited to, environmental remediation action plan requirements, restrictions, or covenants, <br/>
<a id="pl.34.28"></a><var>34.28</var>when considering a request for approval of eligibility for composition into a confession of <br/>
<a id="pl.34.29"></a><var>34.29</var>judgment for delinquent taxes upon a parcel of property which was classified class 3a, for <br/>
<a id="pl.34.30"></a><var>34.30</var>the previous year's assessment.<br/>
<br/>
<a id="bill.2.21.0"></a><a id="pl.34.31"></a><var>34.31</var>    Sec. 21. Minnesota Statutes 2012, section 279.37, subdivision 2, is amended to read:<br/>
<a id="pl.34.32"></a><var>34.32</var>    Subd. 2. <b>Installment payments.</b> The owner of any such parcel, or any person to <br/>
<a id="pl.34.33"></a><var>34.33</var>whom the right to pay taxes has been given by statute, mortgage, or other agreement, may <br/>
<a id="pl.34.34"></a><var>34.34</var>make and file with the county auditor of the county in which the parcel is located a written <br/>
<a id="pl.34.35"></a><var>34.35</var>offer to pay the current taxes each year before they become delinquent, or to contest the <br/>
<a id="pl.35.1"></a><var>35.1</var>taxes under Minnesota Statutes 1941, sections 
         <statute_ref>278.01</statute_ref> to 
         <statute_ref>278.13</statute_ref>, and agree to confess <br/>
<a id="pl.35.2"></a><var>35.2</var>judgment for the amount provided, as determined by the county auditor. By filing the <br/>
<a id="pl.35.3"></a><var>35.3</var>offer, the owner waives all irregularities in connection with the tax proceedings affecting <br/>
<a id="pl.35.4"></a><var>35.4</var>the parcel and any defense or objection which the owner may have to the proceedings, and <br/>
<a id="pl.35.5"></a><var>35.5</var>also waives the requirements of any notice of default in the payment of any installment or <br/>
<a id="pl.35.6"></a><var>35.6</var>interest to become due pursuant to the composite judgment to be so entered. Unless the <br/>
<a id="pl.35.7"></a><var>35.7</var>property is subject to subdivision 1a, with the offer, the owner shall (i) tender one-tenth of <br/>
<a id="pl.35.8"></a><var>35.8</var>the amount of the delinquent taxes, costs, penalty, and interest, and shall (ii) tender all <br/>
<a id="pl.35.9"></a><var>35.9</var>current year taxes and penalty due at the time the confession of judgment is entered. In the <br/>
<a id="pl.35.10"></a><var>35.10</var>offer, the owner shall agree to pay the balance in nine equal installments, with interest as <br/>
<a id="pl.35.11"></a><var>35.11</var>provided in section 
         <statute_ref>279.03</statute_ref>, payable annually on installments remaining unpaid from time <br/>
<a id="pl.35.12"></a><var>35.12</var>to time, on or before December 31 of each year following the year in which judgment <br/>
<a id="pl.35.13"></a><var>35.13</var>was confessed. The offer must be substantially as follows:<br/>
<a id="pl.35.14"></a><var>35.14</var>"To the court administrator of the district court of ........... county, I, ....................., <br/>
<a id="pl.35.15"></a><var>35.15</var>am the owner of the following described parcel of real estate located in .................... <br/>
<a id="pl.35.16"></a><var>35.16</var>county, Minnesota:<br/>
<a id="pl.35.17"></a><var>35.17</var>.............................. Upon that real estate there are delinquent taxes for the year ........., and <br/>
<a id="pl.35.18"></a><var>35.18</var>prior years, as follows: (here insert year of delinquency and the total amount of delinquent <br/>
<a id="pl.35.19"></a><var>35.19</var>taxes, costs, interest, and penalty). By signing this document I offer to confess judgment in <br/>
<a id="pl.35.20"></a><var>35.20</var>the sum of $...... and waive all irregularities in the tax proceedings affecting these taxes and <br/>
<a id="pl.35.21"></a><var>35.21</var>any defense or objection which I may have to them, and direct judgment to be entered for <br/>
<a id="pl.35.22"></a><var>35.22</var>the amount stated above, minus the sum of $............, to be paid with this document, which <br/>
<a id="pl.35.23"></a><var>35.23</var>is one-tenth or one-fifth of the amount of the taxes, costs, penalty, and interest stated above. <br/>
<a id="pl.35.24"></a><var>35.24</var>I agree to pay the balance of the judgment in nine or four equal, annual installments, with <br/>
<a id="pl.35.25"></a><var>35.25</var>interest as provided in section 
         <statute_ref>279.03</statute_ref>, payable annually, on the installments remaining <br/>
<a id="pl.35.26"></a><var>35.26</var>unpaid. I agree to pay the installments and interest on or before December 31 of each year <br/>
<a id="pl.35.27"></a><var>35.27</var>following the year in which this judgment is confessed and current taxes each year before <br/>
<a id="pl.35.28"></a><var>35.28</var>they become delinquent, or within 30 days after the entry of final judgment in proceedings <br/>
<a id="pl.35.29"></a><var>35.29</var>to contest the taxes under Minnesota Statutes, sections 
         <statute_ref>278.01</statute_ref> to 
         <statute_ref>278.13</statute_ref>.<br/>
<a id="pl.35.30"></a><var>35.30</var>Dated .............., ......."<br/>
<br/>
<a id="bill.2.22.0"></a><a id="pl.35.31"></a><var>35.31</var>    Sec. 22. Minnesota Statutes 2012, section 281.14, is amended to read:<br/>
<a id="pl.35.32"></a><var>35.32</var><b>281.14 EXPIRATION OF TIME FOR REDEMPTION.</b><br/>
<a id="pl.35.33"></a><var>35.33</var>The time for redemption from any tax sale, whether made to the state or to a private <br/>
<a id="pl.35.34"></a><var>35.34</var>person, shall not expire until notice of expiration of redemption, as provided in section <br/>
<a id="pl.35.35"></a><var>35.35</var><statute_ref>281.13</statute_ref> 281.17, shall have been given.<br/>
<br/>
<a id="bill.2.23.0"></a><a id="pl.36.1"></a><var>36.1</var>    Sec. 23. Minnesota Statutes 2012, section 281.17, is amended to read:<br/>
<a id="pl.36.2"></a><var>36.2</var><b>281.17 PERIOD FOR REDEMPTION.</b><br/>
<a id="pl.36.3"></a><var>36.3</var>Except for properties for which the period of redemption has been limited under <br/>
<a id="pl.36.4"></a><var>36.4</var>sections 
         <statute_ref>281.173</statute_ref> and 
         <statute_ref>281.174</statute_ref>, the following periods for redemption apply.<br/>
<a id="pl.36.5"></a><var>36.5</var>The period of redemption for all lands sold to the state at a tax judgment sale shall <br/>
<a id="pl.36.6"></a><var>36.6</var>be three years from the date of sale to the state of Minnesota if the land is within an <br/>
<a id="pl.36.7"></a><var>36.7</var>incorporated area unless it is: (a) nonagricultural homesteaded land as defined in section <br/>
<a id="pl.36.8"></a><var>36.8</var><statute_ref>273.13, subdivision 22</statute_ref>; (b) homesteaded agricultural land as defined in section 
<statute_ref>273.13, <br/>
<a id="pl.36.9"></a><var>36.9</var>subdivision 23
</statute_ref>, paragraph (a); or (c) seasonal residential recreational land as defined in <br/>
<a id="pl.36.10"></a><var>36.10</var>section 
<statute_ref>273.13, subdivision 22</statute_ref>, paragraph (c), or 25, paragraph (d), clause (1), for which <br/>
<a id="pl.36.11"></a><var>36.11</var>the period of redemption is five years from the date of sale to the state of Minnesota.<br/>
<a id="pl.36.12"></a><var>36.12</var>The period of redemption for homesteaded lands as defined in section 
         <statute_ref>273.13, <br/>
<a id="pl.36.13"></a><var>36.13</var>subdivision 22
         </statute_ref>, located in a targeted neighborhood as defined in Laws 1987, chapter 386, <br/>
<a id="pl.36.14"></a><var>36.14</var>article 6, section 4, and sold to the state at a tax judgment sale is three years from the date <br/>
<a id="pl.36.15"></a><var>36.15</var>of sale. The period of redemption for all lands located in a targeted neighborhood as <br/>
<a id="pl.36.16"></a><var>36.16</var>defined in Laws 1987, chapter 386, article 6, section 4, except (1) homesteaded lands as <br/>
<a id="pl.36.17"></a><var>36.17</var>defined in section 
         <statute_ref>273.13, subdivision 22</statute_ref>, and (2) for periods of redemption beginning <br/>
<a id="pl.36.18"></a><var>36.18</var>after June 30, 1991, but before July 1, 1996, lands located in the Loring Park targeted <br/>
<a id="pl.36.19"></a><var>36.19</var>neighborhood on which a notice of lis pendens has been served, and sold to the state at a <br/>
<a id="pl.36.20"></a><var>36.20</var>tax judgment sale is one year from the date of sale.<br/>
<a id="pl.36.21"></a><var>36.21</var>The period of redemption for all real property constituting a mixed municipal solid <br/>
<a id="pl.36.22"></a><var>36.22</var>waste disposal facility that is a qualified facility under section 
         <statute_ref>115B.39, subdivision 1</statute_ref>, is <br/>
<a id="pl.36.23"></a><var>36.23</var>one year from the date of the sale to the state of Minnesota.<br/>
<a id="pl.36.24"></a><var>36.24</var>The period of redemption for all other lands sold to the state at a tax judgment <br/>
<a id="pl.36.25"></a><var>36.25</var>sale shall be five years from the date of sale, except that the period of redemption for <br/>
<a id="pl.36.26"></a><var>36.26</var>nonhomesteaded agricultural land as defined in section 
<statute_ref>273.13, subdivision 23</statute_ref>, paragraph <br/>
<a id="pl.36.27"></a><var>36.27</var>(b), shall be two years from the date of sale if at that time that property is owned by a <br/>
<a id="pl.36.28"></a><var>36.28</var>person who owns one or more parcels of property on which taxes are delinquent, and the <br/>
<a id="pl.36.29"></a><var>36.29</var>delinquent taxes are more than 25 percent of the prior year's school district levy.<br/>
<br/>
<a id="bill.2.24.0"></a><a id="pl.36.30"></a><var>36.30</var>    Sec. 24. Minnesota Statutes 2012, section 290A.03, subdivision 3, is amended to read:<br/>
<a id="pl.36.31"></a><var>36.31</var>    Subd. 3. <b>Income.</b> (1) "Income" means the sum of the following:<br/>
<a id="pl.36.32"></a><var>36.32</var>(a) federal adjusted gross income as defined in the Internal Revenue Code; and<br/>
<a id="pl.36.33"></a><var>36.33</var>(b) the sum of the following amounts to the extent not included in clause (a):<br/>
<a id="pl.36.34"></a><var>36.34</var>(i) all nontaxable income;<br/>
<a id="pl.37.1"></a><var>37.1</var>(ii) the amount of a passive activity loss that is not disallowed as a result of section <br/>
<a id="pl.37.2"></a><var>37.2</var>469, paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity <br/>
<a id="pl.37.3"></a><var>37.3</var>loss carryover allowed under section 469(b) of the Internal Revenue Code;<br/>
<a id="pl.37.4"></a><var>37.4</var>(iii) an amount equal to the total of any discharge of qualified farm indebtedness <br/>
<a id="pl.37.5"></a><var>37.5</var>of a solvent individual excluded from gross income under section 108(g) of the Internal <br/>
<a id="pl.37.6"></a><var>37.6</var>Revenue Code;<br/>
<a id="pl.37.7"></a><var>37.7</var>(iv) cash public assistance and relief;<br/>
<a id="pl.37.8"></a><var>37.8</var>(v) any pension or annuity (including railroad retirement benefits, all payments <br/>
<a id="pl.37.9"></a><var>37.9</var>received under the federal Social Security Act, Supplemental Security Income, and <br/>
<a id="pl.37.10"></a><var>37.10</var>veterans benefits), which was not exclusively funded by the claimant or spouse, or which <br/>
<a id="pl.37.11"></a><var>37.11</var>was funded exclusively by the claimant or spouse and which funding payments were <br/>
<a id="pl.37.12"></a><var>37.12</var>excluded from federal adjusted gross income in the years when the payments were made;<br/>
<a id="pl.37.13"></a><var>37.13</var>(vi) interest received from the federal or a state government or any instrumentality <br/>
<a id="pl.37.14"></a><var>37.14</var>or political subdivision thereof;<br/>
<a id="pl.37.15"></a><var>37.15</var>(vii) workers' compensation;<br/>
<a id="pl.37.16"></a><var>37.16</var>(viii) nontaxable strike benefits;<br/>
<a id="pl.37.17"></a><var>37.17</var>(ix) the gross amounts of payments received in the nature of disability income or <br/>
<a id="pl.37.18"></a><var>37.18</var>sick pay as a result of accident, sickness, or other disability, whether funded through <br/>
<a id="pl.37.19"></a><var>37.19</var>insurance or otherwise;<br/>
<a id="pl.37.20"></a><var>37.20</var>(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of <br/>
<a id="pl.37.21"></a><var>37.21</var>1986, as amended through December 31, 1995;<br/>
<a id="pl.37.22"></a><var>37.22</var>(xi) contributions made by the claimant to an individual retirement account, <br/>
<a id="pl.37.23"></a><var>37.23</var>including a qualified voluntary employee contribution; simplified employee pension plan; <br/>
<a id="pl.37.24"></a><var>37.24</var>self-employed retirement plan; cash or deferred arrangement plan under section 401(k) <br/>
<a id="pl.37.25"></a><var>37.25</var>of the Internal Revenue Code; or deferred compensation plan under section 457 of the <br/>
<a id="pl.37.26"></a><var>37.26</var>Internal Revenue Code;<br/>
<a id="pl.37.27"></a><var>37.27</var>(xii) nontaxable scholarship or fellowship grants;<br/>
<a id="pl.37.28"></a><var>37.28</var>(xiii) the amount of deduction allowed under section 199 of the Internal Revenue <br/>
<a id="pl.37.29"></a><var>37.29</var>Code;<br/>
<a id="pl.37.30"></a><var>37.30</var>(xiv) the amount of deduction allowed under section 220 or 223 of the Internal <br/>
<a id="pl.37.31"></a><var>37.31</var>Revenue Code;<br/>
<a id="pl.37.32"></a><var>37.32</var>(xv) the amount of tuition expenses required to be added to income under section <br/>
<statute_ref><a id="pl.37.33"></a><var>37.33</var>290.01, subdivision 19a
         </statute_ref>, clause (12);<br/>
<a id="pl.37.34"></a><var>37.34</var>(xvi) the amount deducted for certain expenses of elementary and secondary school <br/>
<a id="pl.37.35"></a><var>37.35</var>teachers under section 62(a)(2)(D) of the Internal Revenue Code; and<br/>
<a id="pl.37.36"></a><var>37.36</var>(xvii) unemployment compensation.<br/>
<a id="pl.38.1"></a><var>38.1</var>In the case of an individual who files an income tax return on a fiscal year basis, the <br/>
<a id="pl.38.2"></a><var>38.2</var>term "federal adjusted gross income" shall mean federal adjusted gross income reflected <br/>
<a id="pl.38.3"></a><var>38.3</var>in the fiscal year ending in the calendar year. Federal adjusted gross income shall not be <br/>
<a id="pl.38.4"></a><var>38.4</var>reduced by the amount of a net operating loss carryback or carryforward or a capital loss <br/>
<a id="pl.38.5"></a><var>38.5</var>carryback or carryforward allowed for the year.<br/>
<a id="pl.38.6"></a><var>38.6</var>(2) "Income" does not include:<br/>
<a id="pl.38.7"></a><var>38.7</var>(a) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;<br/>
<a id="pl.38.8"></a><var>38.8</var>(b) amounts of any pension or annuity which was exclusively funded by the claimant <br/>
<a id="pl.38.9"></a><var>38.9</var>or spouse and which funding payments were not excluded from federal adjusted gross <br/>
<a id="pl.38.10"></a><var>38.10</var>income in the years when the payments were made;<br/>
<a id="pl.38.11"></a><var>38.11</var>(c) surplus food or other relief in kind supplied by a governmental agency;<br/>
<a id="pl.38.12"></a><var>38.12</var>(d) relief granted under this chapter;<br/>
<a id="pl.38.13"></a><var>38.13</var>(e) child support payments received under a temporary or final decree of dissolution <br/>
<a id="pl.38.14"></a><var>38.14</var>or legal separation; or<br/>
<a id="pl.38.15"></a><var>38.15</var>(f) restitution payments received by eligible individuals and excludable interest as <br/>
<a id="pl.38.16"></a><var>38.16</var>defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of <br/>
<a id="pl.38.17"></a><var>38.17</var>2001, Public Law 107-16.<br/>
<a id="pl.38.18"></a><var>38.18</var>(3) The sum of the following amounts may be subtracted from income A claimant, <br/>
<a id="pl.38.19"></a><var>38.19</var>other than one who has rent constituting property taxes, may subtract from income the <br/>
<a id="pl.38.20"></a><var>38.20</var>sum of the following amounts:<br/>
<a id="pl.38.21"></a><var>38.21</var>(a) for the claimant's first dependent, the exemption amount multiplied by 1.4;<br/>
<a id="pl.38.22"></a><var>38.22</var>(b) for the claimant's second dependent, the exemption amount multiplied by 1.3;<br/>
<a id="pl.38.23"></a><var>38.23</var>(c) for the claimant's third dependent, the exemption amount multiplied by 1.2;<br/>
<a id="pl.38.24"></a><var>38.24</var>(d) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;<br/>
<a id="pl.38.25"></a><var>38.25</var>(e) for the claimant's fifth dependent, the exemption amount; and<br/>
<a id="pl.38.26"></a><var>38.26</var>(f) if the claimant or claimant's spouse who occupies the homestead was disabled <br/>
<a id="pl.38.27"></a><var>38.27</var>or attained the age of 65 on or before December 31 of the year for which the taxes were <br/>
<a id="pl.38.28"></a><var>38.28</var>levied or rent paid, the exemption amount.<br/>
<a id="pl.38.29"></a><var>38.29</var>(4) A claimant who has rent constituting property taxes may subtract from income <br/>
<a id="pl.38.30"></a><var>38.30</var>the sum of the following amounts:<br/>
<a id="pl.38.31"></a><var>38.31</var>(a) for the claimant's first dependent, the exemption amount multiplied by 1.5;<br/>
<a id="pl.38.32"></a><var>38.32</var>(b) for the claimant's second dependent, the exemption amount multiplied by 1.4;<br/>
<a id="pl.38.33"></a><var>38.33</var>(c) for the claimant's third dependent, the exemption amount multiplied by 1.3;<br/>
<a id="pl.38.34"></a><var>38.34</var>(d) for the claimant's fourth dependent, the exemption amount multiplied by 1.2;<br/>
<a id="pl.38.35"></a><var>38.35</var>(e) for the claimant's fifth dependent, the exemption amount multiplied by 1.1;<br/>
<a id="pl.39.1"></a><var>39.1</var>(f) if the claimant was disabled or attained the age of 65 on or before December 31 <br/>
<a id="pl.39.2"></a><var>39.2</var>of the year for which the rent constituting property taxes was paid, the exemption amount <br/>
<a id="pl.39.3"></a><var>39.3</var>times 1.5; and<br/>
<a id="pl.39.4"></a><var>39.4</var>(g) if the claimant's spouse who occupies the homestead was disabled or attained the <br/>
<a id="pl.39.5"></a><var>39.5</var>age of 65 on or before December 31 of the year for which the rent constituting property <br/>
<a id="pl.39.6"></a><var>39.6</var>taxes were paid, the exemption amount.<br/>
<a id="pl.39.7"></a><var>39.7</var>For purposes of this subdivision, the "exemption amount" means the exemption <br/>
<a id="pl.39.8"></a><var>39.8</var>amount under section 151(d) of the Internal Revenue Code for the taxable year for which <br/>
<a id="pl.39.9"></a><var>39.9</var>the income is reported.<br/>
<a id="pl.39.10"></a><var>39.10</var><b>EFFECTIVE DATE.</b>This section is effective beginning with refunds based on rent <br/>
<a id="pl.39.11"></a><var>39.11</var>constituting property taxes paid after December 31, 2012.<br/>
<br/>
<a id="bill.2.25.0"></a><a id="pl.39.12"></a><var>39.12</var>    Sec. 25. Minnesota Statutes 2012, section 290A.04, subdivision 2a, is amended to read:<br/>
<a id="pl.39.13"></a><var>39.13</var>    Subd. 2a. <b>Renters.</b> A claimant whose rent constituting property taxes exceeds the <br/>
<a id="pl.39.14"></a><var>39.14</var>percentage of the household income stated below must pay an amount equal to the percent <br/>
<a id="pl.39.15"></a><var>39.15</var>of income shown for the appropriate household income level along with the percent to <br/>
<a id="pl.39.16"></a><var>39.16</var>be paid by the claimant of the remaining amount of rent constituting property taxes. The <br/>
<a id="pl.39.17"></a><var>39.17</var>state refund equals the amount of rent constituting property taxes that remain, up to the <br/>
<a id="pl.39.18"></a><var>39.18</var>maximum state refund amount shown below.<br/>
<table>
<col width="50px"/>
<col width="17.5"/>
<col width="17.5"/>
<col width="12.5"/>
<col width="12.5"/>
<col width="5"/>
<tr>
<td><a id="pl.39.19"></a><var>39.19</var><br/>
<a id="pl.39.20"></a><var>39.20</var><br/>
<a id="pl.39.21"></a><var>39.21</var><br/>
</td>
<td align="right">Household Income<br/>
</td>
<td align="center">Percent of Income<br/>
</td>
<td align="right">Percent Paid by<br/>
                  		Claimant<br/>
</td>
<td align="right" colspan="2">Maximum <br/>
                  		State<br/>
                  		Refund<br/>
</td>
</tr>
<tr>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td><a id="pl.39.22"></a><var>39.22</var><br/>
<a id="pl.39.23"></a><var>39.23</var><br/>
</td>
<td align="right">$0 to 3,589<br/>
4,910<br/>
</td>
<td align="center">1.0 percent<br/>
</td>
<td align="right">5 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
1,790<br/>
</td>
</tr>
<tr>
<td><a id="pl.39.24"></a><var>39.24</var><br/>
<a id="pl.39.25"></a><var>39.25</var><br/>
</td>
<td align="right">3,590 to 4,779<br/>
4,911 to 6,530<br/>
</td>
<td align="center">1.0 percent<br/>
</td>
<td align="right">10<br/>
5 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
1,790<br/>
</td>
</tr>
<tr>
<td><a id="pl.39.26"></a><var>39.26</var><br/>
<a id="pl.39.27"></a><var>39.27</var><br/>
</td>
<td align="right">4,780 to 5,969<br/>
6,531 to 8,160<br/>
</td>
<td align="center">1.1 percent<br/>
</td>
<td align="right">10<br/>
5 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
1,790<br/>
</td>
</tr>
<tr>
<td><a id="pl.39.28"></a><var>39.28</var><br/>
<a id="pl.39.29"></a><var>39.29</var><br/>
</td>
<td align="right">5,970 to 8,369<br/>
8,161 to 11,440<br/>
</td>
<td align="center">1.2 percent<br/>
</td>
<td align="right">10<br/>
5 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
1,790<br/>
</td>
</tr>
<tr>
<td><a id="pl.39.30"></a><var>39.30</var><br/>
<a id="pl.39.31"></a><var>39.31</var><br/>
</td>
<td align="right">8,370 to 10,759<br/>
11,441 to 14,710<br/>
</td>
<td align="center">1.3 percent<br/>
</td>
<td align="right">15<br/>
10 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
1,790<br/>
</td>
</tr>
<tr>
<td><a id="pl.39.32"></a><var>39.32</var><br/>
<a id="pl.39.33"></a><var>39.33</var><br/>
</td>
<td align="right">10,760 to 11,949<br/>
14,711 to 16,340<br/>
</td>
<td align="center">1.4 percent<br/>
</td>
<td align="right">15<br/>
10 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
1,790<br/>
</td>
</tr>
<tr>
<td><a id="pl.39.34"></a><var>39.34</var><br/>
<a id="pl.39.35"></a><var>39.35</var><br/>
</td>
<td align="right">11,950 to 13,139<br/>
16,341 to 17,960<br/>
</td>
<td align="center">1.4 percent<br/>
</td>
<td align="right">20<br/>
15 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
1,790<br/>
</td>
</tr>
<tr>
<td><a id="pl.39.36"></a><var>39.36</var><br/>
<a id="pl.39.37"></a><var>39.37</var><br/>
</td>
<td align="right">13,140 to 15,539<br/>
17,961 to 21,240<br/>
</td>
<td align="center">1.5 percent<br/>
</td>
<td align="right">20<br/>
15 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
1,790<br/>
</td>
</tr>
<tr>
<td><a id="pl.39.38"></a><var>39.38</var><br/>
<a id="pl.39.39"></a><var>39.39</var><br/>
</td>
<td align="right">15,540 to 16,729<br/>
21,241 to 22,870<br/>
</td>
<td align="center">1.6 percent<br/>
</td>
<td align="right">20<br/>
15 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
1,790<br/>
</td>
</tr>
<tr>
<td><a id="pl.40.1"></a><var>40.1</var><br/>
<a id="pl.40.2"></a><var>40.2</var><br/>
</td>
<td align="right">16,730 to 17,919<br/>
22,871 to 24,500<br/>
</td>
<td align="center">1.7 percent<br/>
</td>
<td align="right">25<br/>
20 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
1,790<br/>
</td>
</tr>
<tr>
<td><a id="pl.40.3"></a><var>40.3</var><br/>
<a id="pl.40.4"></a><var>40.4</var><br/>
</td>
<td align="right">17,920 to 20,319<br/>
24,501 to 27,780<br/>
</td>
<td align="center">1.8 percent<br/>
</td>
<td align="right">25<br/>
20 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
1,790<br/>
</td>
</tr>
<tr>
<td><a id="pl.40.5"></a><var>40.5</var><br/>
<a id="pl.40.6"></a><var>40.6</var><br/>
</td>
<td align="right">20,320 to 21,509<br/>
27,781 to 29,400<br/>
</td>
<td align="center">1.9 percent<br/>
</td>
<td align="right">30<br/>
25 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
1,790<br/>
</td>
</tr>
<tr>
<td><a id="pl.40.7"></a><var>40.7</var><br/>
<a id="pl.40.8"></a><var>40.8</var><br/>
</td>
<td align="right">21,510 to 22,699<br/>
29,401 to 31,030<br/>
</td>
<td align="center">2.0 percent<br/>
</td>
<td align="right">30<br/>
25 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
1,790<br/>
</td>
</tr>
<tr>
<td><a id="pl.40.9"></a><var>40.9</var><br/>
<a id="pl.40.10"></a><var>40.10</var><br/>
</td>
<td align="right">22,700 to 23,899<br/>
31,031 to 32,670<br/>
</td>
<td align="center">2.2 percent<br/>
</td>
<td align="right">30<br/>
25 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
1,790<br/>
</td>
</tr>
<tr>
<td><a id="pl.40.11"></a><var>40.11</var><br/>
<a id="pl.40.12"></a><var>40.12</var><br/>
</td>
<td align="right">23,900 to 25,089<br/>
32,671 to 34,300<br/>
</td>
<td align="center">2.4 percent<br/>
</td>
<td align="right">30<br/>
25 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
1,790<br/>
</td>
</tr>
<tr>
<td><a id="pl.40.13"></a><var>40.13</var><br/>
<a id="pl.40.14"></a><var>40.14</var><br/>
</td>
<td align="right">25,090 to 26,289<br/>
34,301 to 35,940<br/>
</td>
<td align="center">2.6 percent<br/>
</td>
<td align="right">35<br/>
30 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
1,790<br/>
</td>
</tr>
<tr>
<td><a id="pl.40.15"></a><var>40.15</var><br/>
<a id="pl.40.16"></a><var>40.16</var><br/>
</td>
<td align="right">26,290 to 27,489<br/>
35,941 to 37,580<br/>
</td>
<td align="center">2.7 percent<br/>
</td>
<td align="right">35<br/>
30 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
1,790<br/>
</td>
</tr>
<tr>
<td><a id="pl.40.17"></a><var>40.17</var><br/>
<a id="pl.40.18"></a><var>40.18</var><br/>
</td>
<td align="right">27,490 to 28,679<br/>
37,581 to 39,200<br/>
</td>
<td align="center">2.8 percent<br/>
</td>
<td align="right">35<br/>
30 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
1,790<br/>
</td>
</tr>
<tr>
<td><a id="pl.40.19"></a><var>40.19</var><br/>
<a id="pl.40.20"></a><var>40.20</var><br/>
</td>
<td align="right">28,680 to 29,869<br/>
39,201 to 40,830<br/>
</td>
<td align="center">2.9 percent<br/>
</td>
<td align="right">40<br/>
35 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
1,790<br/>
</td>
</tr>
<tr>
<td><a id="pl.40.21"></a><var>40.21</var><br/>
<a id="pl.40.22"></a><var>40.22</var><br/>
</td>
<td align="right">29,870 to 31,079<br/>
40,831 to 42,490<br/>
</td>
<td align="center">3.0 percent<br/>
</td>
<td align="right">40<br/>
35 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
1,790<br/>
</td>
</tr>
<tr>
<td><a id="pl.40.23"></a><var>40.23</var><br/>
<a id="pl.40.24"></a><var>40.24</var><br/>
</td>
<td align="right">31,080 to 32,269<br/>
42,491 to 44,110<br/>
</td>
<td align="center">3.1 percent<br/>
</td>
<td align="right">40<br/>
35 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
1,790<br/>
</td>
</tr>
<tr>
<td><a id="pl.40.25"></a><var>40.25</var><br/>
<a id="pl.40.26"></a><var>40.26</var><br/>
</td>
<td align="right">32,270 to 33,459<br/>
44,111 to 45,740<br/>
</td>
<td align="center">3.2 percent<br/>
</td>
<td align="right">40<br/>
35 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,190<br/>
1,790<br/>
</td>
</tr>
<tr>
<td><a id="pl.40.27"></a><var>40.27</var><br/>
<a id="pl.40.28"></a><var>40.28</var><br/>
</td>
<td align="right">33,460 to 34,649<br/>
45,741 to 47,370<br/>
</td>
<td align="center">3.3 percent<br/>
</td>
<td align="right">45<br/>
40 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">1,080<br/>
1,630<br/>
</td>
</tr>
<tr>
<td><a id="pl.40.29"></a><var>40.29</var><br/>
<a id="pl.40.30"></a><var>40.30</var><br/>
</td>
<td align="right">34,650 to 35,849<br/>
47,371 to 49,010<br/>
</td>
<td align="center">3.4 percent<br/>
</td>
<td align="right">45<br/>
40 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">960<br/>
1,440<br/>
</td>
</tr>
<tr>
<td><a id="pl.40.31"></a><var>40.31</var><br/>
<a id="pl.40.32"></a><var>40.32</var><br/>
</td>
<td align="right">35,850 to 37,049<br/>
49,011 to 50,650<br/>
</td>
<td align="center">3.5 percent<br/>
</td>
<td align="right">45<br/>
40 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">830<br/>
1,240<br/>
</td>
</tr>
<tr>
<td><a id="pl.40.33"></a><var>40.33</var><br/>
<a id="pl.40.34"></a><var>40.34</var><br/>
</td>
<td align="right">37,050 to 38,239<br/>
50,651 to 52,270<br/>
</td>
<td align="center">3.5 percent<br/>
</td>
<td align="right">50<br/>
45 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">720<br/>
1,080<br/>
</td>
</tr>
<tr>
<td><a id="pl.40.35"></a><var>40.35</var><br/>
<a id="pl.40.36"></a><var>40.36</var><br/>
</td>
<td align="right">38,240 to 39,439<br/>
52,271 to 53,910<br/>
</td>
<td align="center">3.5 percent<br/>
</td>
<td align="right">50<br/>
45 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">600<br/>
900<br/>
</td>
</tr>
<tr>
<td><a id="pl.40.37"></a><var>40.37</var><br/>
<a id="pl.40.38"></a><var>40.38</var><br/>
</td>
<td align="right">38,440 to 40,629<br/>
53,911 to 55,540<br/>
</td>
<td align="center">3.5 percent<br/>
</td>
<td align="right">50<br/>
45 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">360<br/>
540<br/>
</td>
</tr>
<tr>
<td><a id="pl.40.39"></a><var>40.39</var><br/>
<a id="pl.40.40"></a><var>40.40</var><br/>
</td>
<td align="right">40,630 to 41,819<br/>
55,541 to 57,170<br/>
</td>
<td align="center">3.5 percent<br/>
</td>
<td align="right">50<br/>
45 percent<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">120<br/>
180<br/>
</td>
</tr>
</table><a id="pl.40.41"></a><var>40.41</var>The payment made to a claimant is the amount of the state refund calculated under <br/>
<a id="pl.40.42"></a><var>40.42</var>this subdivision. No payment is allowed if the claimant's household income is $41,820 or<br/>
<a id="pl.40.43"></a><var>40.43</var> more than $57,170.<br/>
<a id="pl.40.44"></a><var>40.44</var><b>EFFECTIVE DATE.</b>This section is effective beginning with refunds based on rent <br/>
<a id="pl.40.45"></a><var>40.45</var>constituting property taxes paid after December 31, 2012.<br/>
<br/>
<a id="bill.2.26.0"></a><a id="pl.41.1"></a><var>41.1</var>    Sec. 26. Minnesota Statutes 2012, section 290A.04, subdivision 4, is amended to read:<br/>
<a id="pl.41.2"></a><var>41.2</var>    Subd. 4. <b>Inflation adjustment.</b> (a) Beginning for property tax refunds payable in <br/>
<a id="pl.41.3"></a><var>41.3</var>calendar year 2002, the commissioner shall annually adjust the dollar amounts of the <br/>
<a id="pl.41.4"></a><var>41.4</var>income thresholds and the maximum refunds under subdivisions 2 and 2a for inflation. <br/>
<a id="pl.41.5"></a><var>41.5</var>The commissioner shall make the inflation adjustments in accordance with section 1(f) of <br/>
<a id="pl.41.6"></a><var>41.6</var>the Internal Revenue Code, except that for purposes of this subdivision the percentage <br/>
<a id="pl.41.7"></a><var>41.7</var>increase shall be determined as provided in this subdivision.<br/>
<a id="pl.41.8"></a><var>41.8</var>(b) In adjusting the dollar amounts of the income thresholds and the maximum <br/>
<a id="pl.41.9"></a><var>41.9</var>refunds under subdivision 2 for inflation, the percentage increase shall be determined from <br/>
<a id="pl.41.10"></a><var>41.10</var>the year ending on June 30, 2011, to the year ending on June 30 of the year preceding that <br/>
<a id="pl.41.11"></a><var>41.11</var>in which the refund is payable.<br/>
<a id="pl.41.12"></a><var>41.12</var>(c) In adjusting the dollar amounts of the income thresholds and the maximum <br/>
<a id="pl.41.13"></a><var>41.13</var>refunds under subdivision 2a for inflation, the percentage increase shall be determined <br/>
<a id="pl.41.14"></a><var>41.14</var>from the year ending on June 30, 2000 2013, to the year ending on June 30 of the year <br/>
<a id="pl.41.15"></a><var>41.15</var>preceding that in which the refund is payable.<br/>
<a id="pl.41.16"></a><var>41.16</var>(d) The commissioner shall use the appropriate percentage increase to annually <br/>
<a id="pl.41.17"></a><var>41.17</var>adjust the income thresholds and maximum refunds under subdivisions 2 and 2a for <br/>
<a id="pl.41.18"></a><var>41.18</var>inflation without regard to whether or not the income tax brackets are adjusted for inflation <br/>
<a id="pl.41.19"></a><var>41.19</var>in that year. The commissioner shall round the thresholds and the maximum amounts, <br/>
<a id="pl.41.20"></a><var>41.20</var>as adjusted to the nearest $10 amount. If the amount ends in $5, the commissioner shall <br/>
<a id="pl.41.21"></a><var>41.21</var>round it up to the next $10 amount.<br/>
<a id="pl.41.22"></a><var>41.22</var>(e) The commissioner shall annually announce the adjusted refund schedule at the <br/>
<a id="pl.41.23"></a><var>41.23</var>same time provided under section 
         <statute_ref>290.06</statute_ref>. The determination of the commissioner under <br/>
<a id="pl.41.24"></a><var>41.24</var>this subdivision is not a rule under the Administrative Procedure Act.<br/>
<a id="pl.41.25"></a><var>41.25</var><b>EFFECTIVE DATE.</b>This section is effective beginning with refunds based on <br/>
<a id="pl.41.26"></a><var>41.26</var>rent paid after December 31, 2013.<br/>
<br/>
<a id="bill.2.27.0"></a><a id="pl.41.27"></a><var>41.27</var>    Sec. 27. Minnesota Statutes 2012, section 290C.02, subdivision 6, is amended to read:<br/>
<a id="pl.41.28"></a><var>41.28</var>    Subd. 6. <b>Forest land.</b> "Forest land" means land containing a minimum of 20 <br/>
<a id="pl.41.29"></a><var>41.29</var>contiguous acres for which the owner has implemented a forest management plan that was <br/>
<a id="pl.41.30"></a><var>41.30</var>prepared or updated within the past ten years by an approved plan writer. For purposes of <br/>
<a id="pl.41.31"></a><var>41.31</var>this subdivision, acres are considered to be contiguous even if they are separated by a road, <br/>
<a id="pl.41.32"></a><var>41.32</var>waterway, railroad track, or other similar intervening property. At least 50 percent of the <br/>
<a id="pl.41.33"></a><var>41.33</var>contiguous acreage must meet the definition of forest land in section 
         <statute_ref>88.01, subdivision <br/>
<a id="pl.41.34"></a><var>41.34</var>7
         </statute_ref>. For the purposes of sections 
         <statute_ref>290C.01</statute_ref> to 
         <statute_ref>290C.11</statute_ref>, forest land does not include (i) <br/>
<a id="pl.41.35"></a><var>41.35</var>land used for residential or agricultural purposes, (ii) land enrolled in the reinvest in <br/>
<a id="pl.42.1"></a><var>42.1</var>Minnesota program, a state or federal conservation reserve or easement reserve program <br/>
<a id="pl.42.2"></a><var>42.2</var>under sections 
         <statute_ref>103F.501</statute_ref> to 
         <statute_ref>103F.531</statute_ref>, the Minnesota agricultural property tax law under <br/>
<a id="pl.42.3"></a><var>42.3</var>section 
         <statute_ref>273.111</statute_ref>, or land subject to agricultural land preservation controls or restrictions <br/>
<a id="pl.42.4"></a><var>42.4</var>as defined in section 
         <statute_ref>40A.02</statute_ref> or under the Metropolitan Agricultural Preserves Act under <br/>
<a id="pl.42.5"></a><var>42.5</var>chapter 473H, or (iii) land exceeding 60,000 acres that is subject to a single conservation <br/>
<a id="pl.42.6"></a><var>42.6</var>easement funded under section 97A.056 or a comparable permanent easement conveyed <br/>
<a id="pl.42.7"></a><var>42.7</var>to a governmental nonprofit entity; (iv) any land that becomes subject to a conservation <br/>
<a id="pl.42.8"></a><var>42.8</var>easement funded under section 97A.056 or a comparable permanent easement conveyed to <br/>
<a id="pl.42.9"></a><var>42.9</var>a governmental or nonprofit entity after the effective date of this act; or (v) land improved <br/>
<a id="pl.42.10"></a><var>42.10</var>with a structure, pavement, sewer, campsite, or any road, other than a township road, used <br/>
<a id="pl.42.11"></a><var>42.11</var>for purposes not prescribed in the forest management plan.<br/>
<a id="pl.42.12"></a><var>42.12</var><b>EFFECTIVE DATE.</b>This section is effective for calculations made in 2013 and <br/>
<a id="pl.42.13"></a><var>42.13</var>thereafter.<br/>
<br/>
<a id="bill.2.28.0"></a><a id="pl.42.14"></a><var>42.14</var>    Sec. 28. Minnesota Statutes 2012, section 290C.03, is amended to read:<br/>
<a id="pl.42.15"></a><var>42.15</var><b>290C.03 ELIGIBILITY REQUIREMENTS.</b><br/>
<a id="pl.42.16"></a><var>42.16</var>(a) Land may be enrolled in the sustainable forest incentive program under this <br/>
<a id="pl.42.17"></a><var>42.17</var>chapter if all of the following conditions are met:<br/>
<a id="pl.42.18"></a><var>42.18</var>(1) the land consists of at least 20 contiguous acres and at least 50 percent of the <br/>
<a id="pl.42.19"></a><var>42.19</var>land must meet the definition of forest land in section 
         <statute_ref>88.01, subdivision 7</statute_ref>, during the <br/>
<a id="pl.42.20"></a><var>42.20</var>enrollment;<br/>
<a id="pl.42.21"></a><var>42.21</var>(2) a forest management plan for the land must be prepared by an approved plan <br/>
<a id="pl.42.22"></a><var>42.22</var>writer and implemented during the period in which the land is enrolled;<br/>
<a id="pl.42.23"></a><var>42.23</var>(3) timber harvesting and forest management guidelines must be used in conjunction <br/>
<a id="pl.42.24"></a><var>42.24</var>with any timber harvesting or forest management activities conducted on the land during <br/>
<a id="pl.42.25"></a><var>42.25</var>the period in which the land is enrolled;<br/>
<a id="pl.42.26"></a><var>42.26</var>(4) the land must be enrolled for a minimum of eight years;<br/>
<a id="pl.42.27"></a><var>42.27</var>(5) there are no delinquent property taxes on the land; and<br/>
<a id="pl.42.28"></a><var>42.28</var>(6) claimants enrolling more than 1,920 acres in the sustainable forest incentive <br/>
<a id="pl.42.29"></a><var>42.29</var>program must allow year-round, nonmotorized access to fish and wildlife resources and <br/>
<a id="pl.42.30"></a><var>42.30</var>motorized access on established and maintained roads and trails, unless the road or trail is <br/>
<a id="pl.42.31"></a><var>42.31</var>temporarily closed for safety, natural resource, or road damage reasons on enrolled land <br/>
<a id="pl.42.32"></a><var>42.32</var>except within one-fourth mile of a permanent dwelling or during periods of high fire <br/>
<a id="pl.42.33"></a><var>42.33</var>hazard as determined by the commissioner of natural resources.<br/>
<a id="pl.43.1"></a><var>43.1</var>(b) Claimants required to allow access under paragraph (a), clause (6), do not by <br/>
<a id="pl.43.2"></a><var>43.2</var>that action:<br/>
<a id="pl.43.3"></a><var>43.3</var>(1) extend any assurance that the land is safe for any purpose;<br/>
<a id="pl.43.4"></a><var>43.4</var>(2) confer upon the person the legal status of an invitee or licensee to whom a duty <br/>
<a id="pl.43.5"></a><var>43.5</var>of care is owed; or<br/>
<a id="pl.43.6"></a><var>43.6</var>(3) assume responsibility for or incur liability for any injury to the person or property <br/>
<a id="pl.43.7"></a><var>43.7</var>caused by an act or omission of the person.<br/>
<a id="pl.43.8"></a><var>43.8</var><b>EFFECTIVE DATE.</b>This section is effective for calculations made in 2013 and <br/>
<a id="pl.43.9"></a><var>43.9</var>thereafter.<br/>
<br/>
<a id="bill.2.29.0"></a><a id="pl.43.10"></a><var>43.10</var>    Sec. 29. Minnesota Statutes 2012, section 290C.055, is amended to read:<br/>
<a id="pl.43.11"></a><var>43.11</var><b>290C.055 LENGTH OF COVENANT.</b><br/>
<a id="pl.43.12"></a><var>43.12</var>(a) The covenant remains in effect for a minimum of eight years. If land is removed <br/>
<a id="pl.43.13"></a><var>43.13</var>from the program before it has been enrolled for four years, the covenant remains in <br/>
<a id="pl.43.14"></a><var>43.14</var>effect for eight years from the date recorded.<br/>
<a id="pl.43.15"></a><var>43.15</var>(b) If land that has been enrolled for four years or more is removed from the program <br/>
<a id="pl.43.16"></a><var>43.16</var>for any reason, there is a waiting period before the covenant terminates. The covenant <br/>
<a id="pl.43.17"></a><var>43.17</var>terminates on January 1 of the fifth calendar year that begins after the date that:<br/>
<a id="pl.43.18"></a><var>43.18</var>(1) the commissioner receives notification from the claimant that the claimant wishes <br/>
<a id="pl.43.19"></a><var>43.19</var>to remove the land from the program under section 
         <statute_ref>290C.10</statute_ref>; or<br/>
<a id="pl.43.20"></a><var>43.20</var>(2) the date that the land is removed from the program under section 
         <statute_ref>290C.11</statute_ref>.<br/>
<a id="pl.43.21"></a><var>43.21</var>(c) Notwithstanding the other provisions of this section, the covenant is terminated:<br/>
<a id="pl.43.22"></a><var>43.22</var>(1) at the same time that the land is removed from the program due to acquisition of <br/>
<a id="pl.43.23"></a><var>43.23</var>title or possession for a public purpose under section 
         <statute_ref>290C.10</statute_ref>; or<br/>
<a id="pl.43.24"></a><var>43.24</var>(2) at the request of the claimant after a reduction in payments due to changes in the <br/>
<a id="pl.43.25"></a><var>43.25</var>payment formula under section 290C.07.<br/>
<a id="pl.43.26"></a><var>43.26</var><b>EFFECTIVE DATE.</b>This section is effective for calculations made in 2013 and <br/>
<a id="pl.43.27"></a><var>43.27</var>thereafter.<br/>
<br/>
<a id="bill.2.30.0"></a><a id="pl.43.28"></a><var>43.28</var>    Sec. 30. Minnesota Statutes 2012, section 290C.07, is amended to read:<br/>
<a id="pl.43.29"></a><var>43.29</var><b>290C.07 CALCULATION OF INCENTIVE PAYMENT.</b><br/>
<a id="pl.43.30"></a><var>43.30</var>    (a) An approved claimant under the sustainable forest incentive program is eligible <br/>
<a id="pl.43.31"></a><var>43.31</var>to receive an annual payment. The payment shall equal $7 $7.25 per acre for each acre <br/>
<a id="pl.43.32"></a><var>43.32</var>enrolled in the sustainable forest incentive program.<br/>
<a id="pl.44.1"></a><var>44.1</var>(b) The annual payment for each Social Security number or state or federal business <br/>
<a id="pl.44.2"></a><var>44.2</var>tax identification number must not exceed $100,000.<br/>
<a id="pl.44.3"></a><var>44.3</var><b>EFFECTIVE DATE.</b>This section is effective for calculations made in 2013 and <br/>
<a id="pl.44.4"></a><var>44.4</var>thereafter.<br/>
<br/>
<a id="bill.2.31.0"></a><a id="pl.44.5"></a><var>44.5</var>    Sec. 31. Minnesota Statutes 2012, section 428A.101, is amended to read:<br/>
<a id="pl.44.6"></a><var>44.6</var><b>428A.101 DEADLINE FOR SPECIAL SERVICE DISTRICT UNDER </b><br/>
<a id="pl.44.7"></a><var>44.7</var><b>GENERAL LAW.</b><br/>
<a id="pl.44.8"></a><var>44.8</var>The establishment of a new special service district after June 30, 2013 2018, requires <br/>
<a id="pl.44.9"></a><var>44.9</var>enactment of a special law authorizing the establishment.<br/>
<a id="pl.44.10"></a><var>44.10</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.32.0"></a><a id="pl.44.11"></a><var>44.11</var>    Sec. 32. Minnesota Statutes 2012, section 428A.21, is amended to read:<br/>
<a id="pl.44.12"></a><var>44.12</var><b>428A.21 DEADLINE FOR HOUSING IMPROVEMENT DISTRICTS UNDER </b><br/>
<a id="pl.44.13"></a><var>44.13</var><b>GENERAL LAW.</b><br/>
<a id="pl.44.14"></a><var>44.14</var>The establishment of a new housing improvement area after June 30, 2013 2018, <br/>
<a id="pl.44.15"></a><var>44.15</var>requires enactment of a special law authorizing the establishment of the area.<br/>
<a id="pl.44.16"></a><var>44.16</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.33.0"></a><a id="pl.44.17"></a><var>44.17</var>    Sec. 33. Minnesota Statutes 2012, section 435.19, subdivision 2, is amended to read:<br/>
<a id="pl.44.18"></a><var>44.18</var>    Subd. 2. <b>State property.</b> In the case of property owned by the state or any <br/>
<a id="pl.44.19"></a><var>44.19</var>instrumentality thereof, the governing body of the city or town may must determine <br/>
<a id="pl.44.20"></a><var>44.20</var>the amount that would have been assessed had the land been privately owned. Such<br/>
<a id="pl.44.21"></a><var>44.21</var> The determination shall be made only after the governing body has held a hearing on <br/>
<a id="pl.44.22"></a><var>44.22</var>the proposed assessment after at least two weeks' notice of the hearing has been given <br/>
<a id="pl.44.23"></a><var>44.23</var>by registered or certified mail to the head of the instrumentality, department or agency <br/>
<a id="pl.44.24"></a><var>44.24</var>having jurisdiction over the property. The instrumentality, department, or agency may, <br/>
<a id="pl.44.25"></a><var>44.25</var>after consultation and agreement by the governing body of the city or town, pay an <br/>
<a id="pl.44.26"></a><var>44.26</var>amount less than the amount determined. The amount thus determined may be paid by <br/>
<a id="pl.44.27"></a><var>44.27</var>the instrumentality, department or agency from available funds. If no funds are available <br/>
<a id="pl.44.28"></a><var>44.28</var>and such instrumentality, department or agency is supported in whole or in part by <br/>
<a id="pl.44.29"></a><var>44.29</var>appropriations from the general fund, then it shall include in its next budget request the <br/>
<a id="pl.44.30"></a><var>44.30</var>amount thus determined. No instrumentality, department or agency shall be bound by the <br/>
<a id="pl.44.31"></a><var>44.31</var>determination of the governing body and may pay from available funds or recommend <br/>
<a id="pl.45.1"></a><var>45.1</var>payment in such lesser amount as it determines is the measure of the benefit received by <br/>
<a id="pl.45.2"></a><var>45.2</var>the land from the improvement.<br/>
<a id="pl.45.3"></a><var>45.3</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2013 and <br/>
<a id="pl.45.4"></a><var>45.4</var>thereafter, for taxes payable in 2014 and thereafter.<br/>
<br/>
<a id="bill.2.34.0"></a><a id="pl.45.5"></a><var>45.5</var>    Sec. 34. Minnesota Statutes 2012, section 435.19, is amended by adding a subdivision <br/>
<a id="pl.45.6"></a><var>45.6</var>to read:<br/>
<a id="pl.45.7"></a><var>45.7</var>    Subd. 6. <b>Appropriation.</b> (a) There is annually appropriated from the general <br/>
<a id="pl.45.8"></a><var>45.8</var>fund and credited to the agency assessment account in the special revenue fund, <br/>
<a id="pl.45.9"></a><var>45.9</var>$5,000,000 in fiscal year 2014 and each year thereafter. Money in the agency assessment <br/>
<a id="pl.45.10"></a><var>45.10</var>account is appropriated annually to the commissioner of revenue for grants to reimburse <br/>
<a id="pl.45.11"></a><var>45.11</var>instrumentalities, departments, or agencies for payment of special assessments, as required <br/>
<a id="pl.45.12"></a><var>45.12</var>under subdivision 2.<br/>
<a id="pl.45.13"></a><var>45.13</var>(b) Of the amounts appropriated in paragraph (a), the commissioner shall first <br/>
<a id="pl.45.14"></a><var>45.14</var>allocate $2,000,000 in fiscal year 2014 only to the city of Moose Lake to reimburse for <br/>
<a id="pl.45.15"></a><var>45.15</var>payments related to connection of state facilities to the sewer line.<br/>
<a id="pl.45.16"></a><var>45.16</var>(c) Notwithstanding the allocation under paragraph (b), the commissioner shall <br/>
<a id="pl.45.17"></a><var>45.17</var>distribute the reimbursements equally between the metropolitan area and greater Minnesota.<br/>
<a id="pl.45.18"></a><var>45.18</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.2.35.0"></a><a id="pl.45.19"></a><var>45.19</var>    Sec. 35. Minnesota Statutes 2012, section 473F.08, is amended by adding a subdivision <br/>
<a id="pl.45.20"></a><var>45.20</var>to read:<br/>
<a id="pl.45.21"></a><var>45.21</var>    Subd. 3c. <b>Bloomington computation.</b> Effective for property taxes payable in <br/>
<a id="pl.45.22"></a><var>45.22</var>2014 through taxes payable in 2023, after the Hennepin County auditor has computed <br/>
<a id="pl.45.23"></a><var>45.23</var>the areawide portion of the levy for the city of Bloomington pursuant to subdivision 3, <br/>
<a id="pl.45.24"></a><var>45.24</var>clause (a), the auditor shall annually add $4,000,000 to the city of Bloomington's areawide <br/>
<a id="pl.45.25"></a><var>45.25</var>portion of the levy. The total areawide portion of the levy for the city of Bloomington, <br/>
<a id="pl.45.26"></a><var>45.26</var>including the additional $4,000,000 certified pursuant to this subdivision shall be certified <br/>
<a id="pl.45.27"></a><var>45.27</var>by the Hennepin County auditor to the administrative auditor pursuant to subdivision 5. <br/>
<a id="pl.45.28"></a><var>45.28</var>The Hennepin County auditor shall distribute to the city of Bloomington the additional <br/>
<a id="pl.45.29"></a><var>45.29</var>areawide portion of the levy computed pursuant to this subdivision at the same time <br/>
<a id="pl.45.30"></a><var>45.30</var>that payments are made to the other counties pursuant to subdivision 7a. The additional <br/>
<a id="pl.45.31"></a><var>45.31</var>distribution to the city of Bloomington under this subdivision terminates effective for <br/>
<a id="pl.45.32"></a><var>45.32</var>taxes payable year 2023.<br/>
<a id="pl.46.1"></a><var>46.1</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable years 2014 through <br/>
<a id="pl.46.2"></a><var>46.2</var>2023. <br/>
<br/>
<a id="bill.2.36.0"></a><a id="pl.46.3"></a><var>46.3</var>    Sec. 36. Laws 1988, chapter 645, section 3, as amended by Laws 1999, chapter 243, <br/>
<a id="pl.46.4"></a><var>46.4</var>article 6, section 9, Laws 2000, chapter 490, article 6, section 15, and Laws 2008, chapter <br/>
<a id="pl.46.5"></a><var>46.5</var>154, article 2, section 30, is amended to read:<br/>
<a id="pl.46.6"></a><var>46.6</var>    Sec. 3. <b>TAX; PAYMENT OF EXPENSES.</b><br/>
<a id="pl.46.7"></a><var>46.7</var>    (a) The tax levied by the hospital district under Minnesota Statutes, section 
         <statute_ref>447.34</statute_ref>, <br/>
<a id="pl.46.8"></a><var>46.8</var>must not be levied at a rate that exceeds the amount authorized to be levied under that <br/>
<a id="pl.46.9"></a><var>46.9</var>section. The proceeds of the tax may be used for all purposes of the hospital district, <br/>
<a id="pl.46.10"></a><var>46.10</var>except as provided in paragraph (b).<br/>
<a id="pl.46.11"></a><var>46.11</var>    (b) 0.015 percent of taxable market value of the tax in paragraph (a) may be used <br/>
<a id="pl.46.12"></a><var>46.12</var>solely by the Cook ambulance service and the Orr ambulance service for the purpose of <br/>
<a id="pl.46.13"></a><var>46.13</var>capital expenditures as it relates to:<br/>
<a id="pl.46.14"></a><var>46.14</var>(1) ambulance acquisitions for the Cook ambulance service and the Orr ambulance <br/>
<a id="pl.46.15"></a><var>46.15</var>service and not;<br/>
<a id="pl.46.16"></a><var>46.16</var>(2) attached and portable equipment for use in and for the ambulances; and<br/>
<a id="pl.46.17"></a><var>46.17</var>(3) parts and replacement parts for maintenance and repair of the ambulances.<br/>
<a id="pl.46.18"></a><var>46.18</var>The money may not be used for administrative, operation,  or salary expenses.<br/>
<a id="pl.46.19"></a><var>46.19</var>    (c) The part of the levy referred to in paragraph (b) must be administered by the <br/>
<a id="pl.46.20"></a><var>46.20</var>Cook Hospital and passed on in equal amounts directly to the Cook area ambulance <br/>
<a id="pl.46.21"></a><var>46.21</var>service board and the city of Orr to be held in trust until funding for a new ambulance is <br/>
<a id="pl.46.22"></a><var>46.22</var>needed by either the Cook ambulance service or the Orr ambulance service used for the <br/>
<a id="pl.46.23"></a><var>46.23</var>purposes in paragraph (b).<br/>
<br/>
<a id="bill.2.37.0"></a><a id="pl.46.24"></a><var>46.24</var>    Sec. 37. Laws 1999, chapter 243, article 6, section 11, is amended to read:<br/>
<a id="pl.46.25"></a><var>46.25</var>    Sec. 11. <b>CEMETERY LEVY FOR SAWYER BY CARLTON COUNTY.</b><br/>
<a id="pl.46.26"></a><var>46.26</var>    Subdivision 1. <b>Levy authorized.</b> Notwithstanding other law to the contrary, the <br/>
<a id="pl.46.27"></a><var>46.27</var>Carlton county board of commissioners may annually levy in and for the unorganized <br/>
<a id="pl.46.28"></a><var>46.28</var>township of Sawyer an amount up to $1,000 annually for cemetery purposes, beginning <br/>
<a id="pl.46.29"></a><var>46.29</var>with taxes payable in 2000 and ending with taxes payable in 2009.<br/>
<a id="pl.46.30"></a><var>46.30</var>    Subd. 2. <b>Effective date.</b> This section is effective June 1, 1999, without local <br/>
<a id="pl.46.31"></a><var>46.31</var>approval.<br/>
<a id="pl.46.32"></a><var>46.32</var><b>EFFECTIVE DATE.</b>This section applies to taxes payable in 2014 and thereafter, <br/>
<a id="pl.46.33"></a><var>46.33</var>and is effective the day after the Carlton county board of commissioners and its chief <br/>
<a id="pl.47.1"></a><var>47.1</var>clerical officer timely complete their compliance with Minnesota Statutes, section <br/>
<a id="pl.47.2"></a><var>47.2</var>645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.2.38.0"></a><a id="pl.47.3"></a><var>47.3</var>    Sec. 38. Laws 2008, chapter 366, article 5, section 33, the effective date, is amended to <br/>
<a id="pl.47.4"></a><var>47.4</var>read:<br/>
<a id="pl.47.5"></a><var>47.5</var><b>EFFECTIVE DATE.</b>This section is effective for taxes levied in 2008, payable in <br/>
<a id="pl.47.6"></a><var>47.6</var>2009, and is repealed effective for taxes levied in 2013 2018, payable in 2014 2019, <br/>
<a id="pl.47.7"></a><var>47.7</var>and thereafter.<br/>
<a id="pl.47.8"></a><var>47.8</var><b>EFFECTIVE DATE.</b>This section is effective beginning with taxes payable in 2014.<br/>
<br/>
<a id="bill.2.39.0"></a><a id="pl.47.9"></a><var>47.9</var>    Sec. 39. Laws 2009, chapter 88, article 2, section 46, subdivision 1, is amended to read:<br/>
<a id="pl.47.10"></a><var>47.10</var>    Subdivision 1. <b>Agreement.</b> The city of Cloquet and Perch Lake Township, by <br/>
<a id="pl.47.11"></a><var>47.11</var>resolution of each of their governing bodies, may establish the Cloquet Area Fire and <br/>
<a id="pl.47.12"></a><var>47.12</var>Ambulance Taxing District for the purpose of providing fire and or ambulance services, <br/>
<a id="pl.47.13"></a><var>47.13</var>or both,  throughout the district. In this section, "municipality" means home rule charter <br/>
<a id="pl.47.14"></a><var>47.14</var>and statutory cities, towns, and Indian tribes. The district may exercise all the powers <br/>
<a id="pl.47.15"></a><var>47.15</var>relating to fire and ambulance services of the municipalities that receive fire and or<br/>
<a id="pl.47.16"></a><var>47.16</var> ambulance services, or both,  from the district. Upon application, any other municipality <br/>
<a id="pl.47.17"></a><var>47.17</var>that is contiguous to a municipality that is a member of the district may join the district <br/>
<a id="pl.47.18"></a><var>47.18</var>with the agreement of the municipalities that comprise the district at the time of its <br/>
<a id="pl.47.19"></a><var>47.19</var>application to join.<br/>
<br/>
<a id="bill.2.40.0"></a><a id="pl.47.20"></a><var>47.20</var>    Sec. 40. Laws 2009, chapter 88, article 2, section 46, subdivision 3, is amended to read:<br/>
<a id="pl.47.21"></a><var>47.21</var>    Subd. 3. <b>Tax.</b> The district board may impose a property tax on taxable property <br/>
<a id="pl.47.22"></a><var>47.22</var>in the district as provided in this subdivision. This The board shall annually determine <br/>
<a id="pl.47.23"></a><var>47.23</var>the total amount of the levy that is attributable to the cost of providing fire services <br/>
<a id="pl.47.24"></a><var>47.24</var>and the cost of providing ambulance services within the primary service area. For <br/>
<a id="pl.47.25"></a><var>47.25</var>those municipalities that only receive ambulance services, the costs for the provision of <br/>
<a id="pl.47.26"></a><var>47.26</var>ambulance services shall be levied against taxable property within those municipalities <br/>
<a id="pl.47.27"></a><var>47.27</var>at a rate necessary not to exceed 0.019 percent of the taxable market value. For those <br/>
<a id="pl.47.28"></a><var>47.28</var>municipalities that receive both fire and ambulance services, the tax shall be imposed at a <br/>
<a id="pl.47.29"></a><var>47.29</var>rate that does not exceed 0.2835 percent of taxable market value for taxes payable in 2010. <br/>
<a id="pl.47.30"></a><var>47.30</var>The board shall annually determine the separate amounts of the levy that are attributable <br/>
<a id="pl.47.31"></a><var>47.31</var>to the cost of providing fire services and the cost of providing ambulance services. Costs <br/>
<a id="pl.47.32"></a><var>47.32</var>for the provision of ambulance services shall be levied against taxable property within the <br/>
<a id="pl.48.1"></a><var>48.1</var>area of the district that receive the services. Costs for the provision of fire services shall be <br/>
<a id="pl.48.2"></a><var>48.2</var>levied against taxable property within the area of the district that receive the services.<br/>
<a id="pl.48.3"></a><var>48.3</var>When a member municipality opts to receive fire service from the district or an <br/>
<a id="pl.48.4"></a><var>48.4</var>additional municipality becomes a member of the district, the additional cost of providing <br/>
<a id="pl.48.5"></a><var>48.5</var>ambulance and fire services to that municipality will community shall be determined by <br/>
<a id="pl.48.6"></a><var>48.6</var>the board and added to the maximum levy amount.<br/>
<a id="pl.48.7"></a><var>48.7</var>Each county auditor of a county that contains a municipality subject to the tax under <br/>
<a id="pl.48.8"></a><var>48.8</var>this section must collect the tax and pay it to the Fire and Ambulance Special Taxing <br/>
<a id="pl.48.9"></a><var>48.9</var>District. The district may also impose other fees or charges as allowed by law for the <br/>
<a id="pl.48.10"></a><var>48.10</var>provision of fire and ambulance services.<br/>
<br/>
<a id="bill.2.41.0"></a><a id="pl.48.11"></a><var>48.11</var>    Sec. 41. Laws 2010, chapter 389, article 1, section 12, the effective date, is amended to <br/>
<a id="pl.48.12"></a><var>48.12</var>read:<br/>
<a id="pl.48.13"></a><var>48.13</var><b>EFFECTIVE DATE.</b>This section is effective for assessment years 2010 and 2011<br/>
<a id="pl.48.14"></a><var>48.14</var> through 2016, for taxes payable in 2011 and 2012 through 2017.<br/>
<a id="pl.48.15"></a><var>48.15</var><b>EFFECTIVE DATE.</b>This section is effective for assessment years 2012 through <br/>
<a id="pl.48.16"></a><var>48.16</var>2016.<br/>
<br/>
<a id="bill.2.42.0"></a><a id="pl.48.17"></a><var>48.17</var>    Sec. 42. <b>REIMBURSEMENT FOR PROPERTY TAX ABATEMENTS; </b><br/>
<a id="pl.48.18"></a><var>48.18</var><b>APPROPRIATION.</b><br/>
<a id="pl.48.19"></a><var>48.19</var>    Subdivision 1. <b>Reimbursement.</b> The commissioner of revenue shall reimburse <br/>
<a id="pl.48.20"></a><var>48.20</var>taxing jurisdictions for property tax abatements granted in Hennepin County under Laws <br/>
<a id="pl.48.21"></a><var>48.21</var>2011, First Special Session chapter 7, article 5, section 13, notwithstanding the time limits <br/>
<a id="pl.48.22"></a><var>48.22</var>contained in that section. The reimbursements must be made to each taxing jurisdiction <br/>
<a id="pl.48.23"></a><var>48.23</var>pursuant to the certification of the Hennepin County auditor.<br/>
<a id="pl.48.24"></a><var>48.24</var>    Subd. 2. <b>Appropriation.</b> In fiscal year 2014 only, $336,000 is appropriated to the <br/>
<a id="pl.48.25"></a><var>48.25</var>commissioner of revenue from the general fund to make the payments required in this <br/>
<a id="pl.48.26"></a><var>48.26</var>section.<br/>
<a id="pl.48.27"></a><var>48.27</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.43.0"></a><a id="pl.48.28"></a><var>48.28</var>    Sec. 43. <b>ST. PAUL BALL PARK, PROPERTY TAX EXEMPTION; SPECIAL </b><br/>
<a id="pl.48.29"></a><var>48.29</var><b>ASSESSMENT.</b><br/>
<a id="pl.48.30"></a><var>48.30</var>Any real or personal property acquired, owned, leased, controlled, used, or occupied <br/>
<a id="pl.48.31"></a><var>48.31</var>by the city of St. Paul for the primary purpose of providing a ball park for a minor league <br/>
<a id="pl.48.32"></a><var>48.32</var>baseball team is declared to be acquired, owned, leased, controlled, used, and occupied for <br/>
<a id="pl.49.1"></a><var>49.1</var>public, governmental, and municipal purposes, and is exempt from ad valorem taxation <br/>
<a id="pl.49.2"></a><var>49.2</var>by the state or any political subdivision of the state, provided that the properties are <br/>
<a id="pl.49.3"></a><var>49.3</var>subject to special assessments levied by a political subdivision for a local improvement in <br/>
<a id="pl.49.4"></a><var>49.4</var>amounts proportionate to and not exceeding the special benefit received by the properties <br/>
<a id="pl.49.5"></a><var>49.5</var>from the improvement. In determining the special benefit received by the properties, no <br/>
<a id="pl.49.6"></a><var>49.6</var>possible use of any of the properties in any manner different from their intended use <br/>
<a id="pl.49.7"></a><var>49.7</var>for providing a minor league ballpark at the time may be considered. Notwithstanding <br/>
<a id="pl.49.8"></a><var>49.8</var>Minnesota Statutes, section 
<statute_ref>272.01</statute_ref>, subdivision 2, or 
<statute_ref>273.19</statute_ref>, real or personal property <br/>
<a id="pl.49.9"></a><var>49.9</var>subject to a lease or use agreement between the city and another person for uses related to <br/>
<a id="pl.49.10"></a><var>49.10</var>the purposes of the operation of the ballpark and related parking facilities is exempt from <br/>
<a id="pl.49.11"></a><var>49.11</var>taxation regardless of the length of the lease or use agreement. This section, insofar as it <br/>
<a id="pl.49.12"></a><var>49.12</var>provides an exemption or special treatment, does not apply to any real property that is <br/>
<a id="pl.49.13"></a><var>49.13</var>leased for residential, business, or commercial development or other purposes different <br/>
<a id="pl.49.14"></a><var>49.14</var>from those necessary to the provision and operation of the ball park.<br/>
<a id="pl.49.15"></a><var>49.15</var><b>EFFECTIVE DATE.</b>This section is effective the day after compliance by the <br/>
<a id="pl.49.16"></a><var>49.16</var>governing body of the city of St. Paul with Minnesota Statutes, section 645.021, <br/>
<a id="pl.49.17"></a><var>49.17</var>subdivisions 2 and 3.<br/>
<br/>
<a id="bill.2.44.0"></a><a id="pl.49.18"></a><var>49.18</var>    Sec. 44. <b>PUBLIC ENTERTAINMENT FACILITY; PROPERTY TAX </b><br/>
<a id="pl.49.19"></a><var>49.19</var><b>EXEMPTION; SPECIAL ASSESSMENT.</b><br/>
<a id="pl.49.20"></a><var>49.20</var>Any real or personal property acquired, owned, leased, controlled, used, or occupied <br/>
<a id="pl.49.21"></a><var>49.21</var>by the city of Minneapolis for the primary purpose of providing an arena for a professional <br/>
<a id="pl.49.22"></a><var>49.22</var>basketball team is declared to be acquired, owned, leased, controlled, used, and occupied <br/>
<a id="pl.49.23"></a><var>49.23</var>for public, governmental, and municipal purposes, and is exempt from ad valorem taxation <br/>
<a id="pl.49.24"></a><var>49.24</var>by the state or any political subdivision of the state, provided that the properties are <br/>
<a id="pl.49.25"></a><var>49.25</var>subject to special assessments levied by a political subdivision for a local improvement in <br/>
<a id="pl.49.26"></a><var>49.26</var>amounts proportionate to and not exceeding the special benefit received by the properties <br/>
<a id="pl.49.27"></a><var>49.27</var>from the improvement. In determining the special benefit received by the properties, no <br/>
<a id="pl.49.28"></a><var>49.28</var>possible use of any of the properties in any manner different from their intended use for <br/>
<a id="pl.49.29"></a><var>49.29</var>providing a professional basketball arena at the time may be considered. Notwithstanding <br/>
<a id="pl.49.30"></a><var>49.30</var>Minnesota Statutes, section 
<statute_ref>272.01</statute_ref>, subdivision 2, or 
<statute_ref>273.19</statute_ref>, real or personal property <br/>
<a id="pl.49.31"></a><var>49.31</var>subject to a lease or use agreement between the city and another person for uses related to <br/>
<a id="pl.49.32"></a><var>49.32</var>the purposes of the operation of the arena and related parking facilities is exempt from <br/>
<a id="pl.49.33"></a><var>49.33</var>taxation regardless of the length of the lease or use agreement. This section, insofar as <br/>
<a id="pl.49.34"></a><var>49.34</var>it provides an exemption or special treatment, does not apply to any real property that <br/>
<a id="pl.50.1"></a><var>50.1</var>is leased for residential, business, or commercial development, or for other purposes <br/>
<a id="pl.50.2"></a><var>50.2</var>different from those necessary to the provision and operation of the arena.<br/>
<a id="pl.50.3"></a><var>50.3</var><b>EFFECTIVE DATE.</b>This section is effective the day after compliance by the <br/>
<a id="pl.50.4"></a><var>50.4</var>governing body of the city of Minneapolis with Minnesota Statutes, section 645.021, <br/>
<a id="pl.50.5"></a><var>50.5</var>subdivisions 2 and 3.<br/>
<br/>
<a id="bill.2.45.0"></a><a id="pl.50.6"></a><var>50.6</var>    Sec. 45. <b>PUBLIC ENTERTAINMENT FACILITY; CONSTRUCTION </b><br/>
<a id="pl.50.7"></a><var>50.7</var><b>MANAGER AT RISK.</b><br/>
<a id="pl.50.8"></a><var>50.8</var>(a) For any real or personal property acquired, owned, leased, controlled, used, or <br/>
<a id="pl.50.9"></a><var>50.9</var>occupied by the city of Minneapolis for the primary purpose of providing an arena for <br/>
<a id="pl.50.10"></a><var>50.10</var>a professional basketball team, the city of Minneapolis may contract for construction, <br/>
<a id="pl.50.11"></a><var>50.11</var>materials, supplies, and equipment in accordance with Minnesota Statutes, section <br/>
<a id="pl.50.12"></a><var>50.12</var>471.345, except that the city may employ or contract with persons, firms, or corporations <br/>
<a id="pl.50.13"></a><var>50.13</var>to perform one or more or all of the functions of an engineer, architect, construction <br/>
<a id="pl.50.14"></a><var>50.14</var>manager, or program manager with respect to all or any part of a project to renovate, <br/>
<a id="pl.50.15"></a><var>50.15</var>refurbish, and remodel the arena under either the traditional design-bid-build or <br/>
<a id="pl.50.16"></a><var>50.16</var>construction manager at risk, or a combination thereof.<br/>
<a id="pl.50.17"></a><var>50.17</var>(b) The city may prepare a request for proposals for one or more of the functions <br/>
<a id="pl.50.18"></a><var>50.18</var>described in paragraph (a). The request must be published in a newspaper of general <br/>
<a id="pl.50.19"></a><var>50.19</var>circulation. The city may prequalify offerors by issuing a request for qualifications, in <br/>
<a id="pl.50.20"></a><var>50.20</var>advance of the request for proposals, and select a short list of responsible offerors to <br/>
<a id="pl.50.21"></a><var>50.21</var>submit proposals.<br/>
<a id="pl.50.22"></a><var>50.22</var>(c) As provided in the request for proposals, the city may conduct discussions and <br/>
<a id="pl.50.23"></a><var>50.23</var>negotiations with responsible offerors in order to determine which proposal is most <br/>
<a id="pl.50.24"></a><var>50.24</var>advantageous to the city and to negotiate the terms of an agreement. In conducting <br/>
<a id="pl.50.25"></a><var>50.25</var>discussions, there shall be no disclosure of any information derived from proposals <br/>
<a id="pl.50.26"></a><var>50.26</var>submitted by competing offerors and the content of all proposals is nonpublic data under <br/>
<a id="pl.50.27"></a><var>50.27</var>Minnesota Statutes, chapter 13, until such time as a notice to award a contract is given <br/>
<a id="pl.50.28"></a><var>50.28</var>by the city.<br/>
<a id="pl.50.29"></a><var>50.29</var>(d) Upon agreement on the guaranteed maximum price, the construction manager <br/>
<a id="pl.50.30"></a><var>50.30</var>or program manager may enter into contracts with subcontractors for labor, materials, <br/>
<a id="pl.50.31"></a><var>50.31</var>supplies, and equipment for the renovation project through the process of public bidding, <br/>
<a id="pl.50.32"></a><var>50.32</var>except that the construction manager or program manager may, with the consent of the city:<br/>
<a id="pl.50.33"></a><var>50.33</var>(1) narrow the listing of eligible bidders to those that the construction manager <br/>
<a id="pl.50.34"></a><var>50.34</var>or program manager determines to possess sufficient expertise to perform the intended <br/>
<a id="pl.50.35"></a><var>50.35</var>functions;<br/>
<a id="pl.51.1"></a><var>51.1</var>(2) award contracts to the subcontractors that the construction manager or program <br/>
<a id="pl.51.2"></a><var>51.2</var>manager determines provide the best value under a request for proposals, as described <br/>
<a id="pl.51.3"></a><var>51.3</var>in Minnesota Statutes, section 16C.28, subdivision 1, paragraph (a), clause (2)(c), that <br/>
<a id="pl.51.4"></a><var>51.4</var>are not required to be the lowest responsible bidder; and<br/>
<a id="pl.51.5"></a><var>51.5</var>(3) for work the construction manager or program manager determines to be <br/>
<a id="pl.51.6"></a><var>51.6</var>critical to the completion schedule, perform work with its own forces without soliciting <br/>
<a id="pl.51.7"></a><var>51.7</var>competitive bids or proposals, if the construction manager or program manager provides <br/>
<a id="pl.51.8"></a><var>51.8</var>evidence of competitive pricing.<br/>
<a id="pl.51.9"></a><var>51.9</var><b>EFFECTIVE DATE.</b>This section is effective the day after compliance by the <br/>
<a id="pl.51.10"></a><var>51.10</var>governing body of the city of Minneapolis with Minnesota Statutes, section 645.021, <br/>
<a id="pl.51.11"></a><var>51.11</var>subdivisions 2 and 3.<br/>
<br/>
<a id="bill.2.46.0"></a><a id="pl.51.12"></a><var>51.12</var>    Sec. 46. <b>MORATORIUM ON CHANGES IN ASSESSMENT PRACTICE.</b><br/>
<a id="pl.51.13"></a><var>51.13</var>(a) An assessor may not deviate from current practices or policies used generally in <br/>
<a id="pl.51.14"></a><var>51.14</var>assessing or determining the taxable status of property used in the production of biofuels, <br/>
<a id="pl.51.15"></a><var>51.15</var>wine, beer, distilled beverages, or dairy products.<br/>
<a id="pl.51.16"></a><var>51.16</var>(b) An assessor may not change the taxable status of any existing property involved <br/>
<a id="pl.51.17"></a><var>51.17</var>in the industrial processes identified in paragraph (a), unless the change is made as a result <br/>
<a id="pl.51.18"></a><var>51.18</var>of a change in the use of property, or to correct an error. For currently taxable properties, <br/>
<a id="pl.51.19"></a><var>51.19</var>the assessor may change the estimated market value of the property.<br/>
<a id="pl.51.20"></a><var>51.20</var><b>EFFECTIVE DATE.</b>This section is effective for assessment years 2013 and 2014 <br/>
<a id="pl.51.21"></a><var>51.21</var>only.<br/>
<br/>
<a id="bill.2.47.0"></a><a id="pl.51.22"></a><var>51.22</var>    Sec. 47. <b>STUDY AND REPORT ON CERTAIN PROPERTY USED IN </b><br/>
<a id="pl.51.23"></a><var>51.23</var><b>BUSINESS AND PRODUCTION.</b><br/>
<a id="pl.51.24"></a><var>51.24</var>In order to provide the legislature with information and recommendations related <br/>
<a id="pl.51.25"></a><var>51.25</var>to the past, present, and future options for assessment of property used in business <br/>
<a id="pl.51.26"></a><var>51.26</var>and production activities, the commissioner of revenue with the cooperation of the <br/>
<a id="pl.51.27"></a><var>51.27</var>commissioners of agriculture and economic development must study the impact of <br/>
<a id="pl.51.28"></a><var>51.28</var>alternative interpretations and application related to the real and personal property <br/>
<a id="pl.51.29"></a><var>51.29</var>provisions contained in Minnesota Statutes, section 272.03, subdivisions 1 and 2. The <br/>
<a id="pl.51.30"></a><var>51.30</var>commissioner must report a summary of findings and recommendations to the chairs and <br/>
<a id="pl.51.31"></a><var>51.31</var>ranking minority members of the agriculture, energy, and tax committees of the senate and <br/>
<a id="pl.51.32"></a><var>51.32</var>house of representatives by February 1, 2014. The commissioner shall provide for the <br/>
<a id="pl.51.33"></a><var>51.33</var>involvement and participation stakeholders from the business and production industry in <br/>
<a id="pl.52.1"></a><var>52.1</var>the study and recommendations. The study and recommendations shall include, but not <br/>
<a id="pl.52.2"></a><var>52.2</var>be limited to:<br/>
<a id="pl.52.3"></a><var>52.3</var>(1) the past and present tax application to process in the production of a product;<br/>
<a id="pl.52.4"></a><var>52.4</var>(2) exemption from real property for process components of production such as <br/>
<a id="pl.52.5"></a><var>52.5</var>tanks or containment vessels or other devices wherein a molecular, chemical, or biological <br/>
<a id="pl.52.6"></a><var>52.6</var>change occurs such that the intended output from the production process is a different <br/>
<a id="pl.52.7"></a><var>52.7</var>substance from that which was introduced into the tanks, vessels, or other devices <br/>
<a id="pl.52.8"></a><var>52.8</var>and removal of a tank, device or vessel from the process that would stop or harm the <br/>
<a id="pl.52.9"></a><var>52.9</var>production of the final intended product;<br/>
<a id="pl.52.10"></a><var>52.10</var>(3) definitions for process equipment;<br/>
<a id="pl.52.11"></a><var>52.11</var>(4) the potential economic and competitive impact in relation to other midwestern <br/>
<a id="pl.52.12"></a><var>52.12</var>states;<br/>
<a id="pl.52.13"></a><var>52.13</var>(5) the impact on state and local taxes from 2009 to the present and into the future;<br/>
<a id="pl.52.14"></a><var>52.14</var>(6) the past, present, and future impact on business and production industries;<br/>
<a id="pl.52.15"></a><var>52.15</var>(7) impact on Minnesota's renewable energy goal attainment; and<br/>
<a id="pl.52.16"></a><var>52.16</var>(8) other elements considered important for legislative consideration.<br/>
<a id="pl.52.17"></a><var>52.17</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.48.0"></a><a id="pl.52.18"></a><var>52.18</var>    Sec. 48. <b>REENROLLMENT; SUSTAINABLE FOREST INCENTIVE </b><br/>
<a id="pl.52.19"></a><var>52.19</var><b>PROGRAM.</b><br/>
<a id="pl.52.20"></a><var>52.20</var>A person who elected to terminate participation in the sustainable forest incentive <br/>
<a id="pl.52.21"></a><var>52.21</var>program, as provided in Laws 2011, First Special Session chapter 7, article 6, section 12, <br/>
<a id="pl.52.22"></a><var>52.22</var>may reenroll lands for which the claimant terminated participation. A person must apply <br/>
<a id="pl.52.23"></a><var>52.23</var>for reenrollment under this section within 60 days after the effective date of this section.<br/>
<a id="pl.52.24"></a><var>52.24</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.49.0"></a><a id="pl.52.25"></a><var>52.25</var>    Sec. 49. <b>PROPERTY TAX SAVINGS REPORT.</b><br/>
<a id="pl.52.26"></a><var>52.26</var>(a) In addition to the certification of its proposed property tax levy under Minnesota <br/>
<a id="pl.52.27"></a><var>52.27</var>Statutes, section 275.065, each city that has a population over 500 and each county shall <br/>
<a id="pl.52.28"></a><var>52.28</var>also include the amount of sales and use tax paid, or was estimated to be paid, in 2012.<br/>
<a id="pl.52.29"></a><var>52.29</var>(b) At the time the notice of the proposed property taxes is mailed as required under <br/>
<a id="pl.52.30"></a><var>52.30</var>Minnesota Statutes, section 275.065, subdivision 3, the county treasurer shall also include <br/>
<a id="pl.52.31"></a><var>52.31</var>a separate statement providing a list of sales and use tax certified by the county and cities <br/>
<a id="pl.52.32"></a><var>52.32</var>within their jurisdiction.<br/>
<a id="pl.53.1"></a><var>53.1</var>(c) At the public hearing required under Minnesota Statutes, section 275.065, <br/>
<a id="pl.53.2"></a><var>53.2</var>subdivision 3, the county and city must discuss the estimated savings realized to their <br/>
<a id="pl.53.3"></a><var>53.3</var>budgets that resulted from the sales tax exemption authorized under Minnesota Statutes, <br/>
<a id="pl.53.4"></a><var>53.4</var>section 297A.70, subdivision 2, and how those savings will be used for property tax levy <br/>
<a id="pl.53.5"></a><var>53.5</var>reductions, fee reductions, and other purposes as deemed appropriate.<br/>
<a id="pl.53.6"></a><var>53.6</var>Reasonable costs of preparing the notice required in this section must be apportioned <br/>
<a id="pl.53.7"></a><var>53.7</var>between taxing jurisdictions as follows:<br/>
<a id="pl.53.8"></a><var>53.8</var>(1) one-half is allocated to the county; and<br/>
<a id="pl.53.9"></a><var>53.9</var>(2) one-half is allocated among the cities.<br/>
<a id="pl.53.10"></a><var>53.10</var>The amount allocated in clause (2) must be further apportioned among all the cities <br/>
<a id="pl.53.11"></a><var>53.11</var>in the proportion that the number of parcels in the city bears to the number of parcels in all <br/>
<a id="pl.53.12"></a><var>53.12</var>the cities that have populations over 500.<br/>
<a id="pl.53.13"></a><var>53.13</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment, <br/>
<a id="pl.53.14"></a><var>53.14</var>for taxes levied in 2013 and payable in 2014.<br/>
<br/>
<a id="bill.2.50.0"></a><a id="pl.53.15"></a><var>53.15</var>    Sec. 50. <b>METROPOLITAN FISCAL DISPARITIES WORKING GROUP.</b><br/>
<a id="pl.53.16"></a><var>53.16</var>(a) The commissioner of revenue shall convene a working group of interested <br/>
<a id="pl.53.17"></a><var>53.17</var>individuals to examine the issues faced by local governments that are required to pay for <br/>
<a id="pl.53.18"></a><var>53.18</var>services which are otherwise generally provided throughout the seven-county metropolitan <br/>
<a id="pl.53.19"></a><var>53.19</var>area by the Metropolitan Council. The commissioner of revenue shall chair the initial <br/>
<a id="pl.53.20"></a><var>53.20</var>meeting, and the working group shall elect a chair at that initial meeting. The working <br/>
<a id="pl.53.21"></a><var>53.21</var>group will meet at the call of the chair, but must meet at least three times during the <br/>
<a id="pl.53.22"></a><var>53.22</var>legislative interim. Members of the working group shall serve without compensation. The <br/>
<a id="pl.53.23"></a><var>53.23</var>commissioner of revenue must provide administrative support to the working group.<br/>
<a id="pl.53.24"></a><var>53.24</var>(b) The working group may make its advisory recommendations to the chairs of <br/>
<a id="pl.53.25"></a><var>53.25</var>house of representatives and senate tax committees on or before February 1, 2014, at <br/>
<a id="pl.53.26"></a><var>53.26</var>which time the working group shall expire.<br/>
<a id="pl.53.27"></a><var>53.27</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.51.0"></a><a id="pl.53.28"></a><var>53.28</var>    Sec. 51. <b> REPEALER.</b><br/>
<a id="pl.53.29"></a><var>53.29</var>Minnesota Statutes 2012, section 275.025, subdivision 4, is repealed.<br/>
<a id="pl.53.30"></a><var>53.30</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2014.<br/>
<br/>
<a id="bill.3.0.0"></a>

<a id="bill.3.1.0"></a><a id="pl.54.3"></a><var>54.3</var>    Section 1. Minnesota Statutes 2012, section 124D.11, subdivision 1, is amended to read:<br/>
<a id="pl.54.4"></a><var>54.4</var>    Subdivision 1. <b>General education revenue.</b> (a) General education revenue must <br/>
<a id="pl.54.5"></a><var>54.5</var>be paid to a charter school as though it were a district. The general education revenue <br/>
<a id="pl.54.6"></a><var>54.6</var>for each adjusted marginal cost pupil unit is the state average general education revenue <br/>
<a id="pl.54.7"></a><var>54.7</var>per pupil unit, plus the referendum equalization aid allowance in the pupil's district of <br/>
<a id="pl.54.8"></a><var>54.8</var>residence, minus an amount equal to the product of the formula allowance according <br/>
<a id="pl.54.9"></a><var>54.9</var>to section 
         <statute_ref>126C.10, subdivision 2</statute_ref>, times .0485 .0465, calculated without basic skills <br/>
<a id="pl.54.10"></a><var>54.10</var>revenue, extended time revenue, alternative teacher compensation revenue, equity <br/>
<a id="pl.54.11"></a><var>54.11</var>revenue, pension adjustment revenue, transition revenue, education advancement revenue, <br/>
<a id="pl.54.12"></a><var>54.12</var>and transportation sparsity revenue, plus basic skills revenue, extended time revenue, <br/>
<a id="pl.54.13"></a><var>54.13</var>basic alternative teacher compensation aid according to section 
<statute_ref>126C.10, subdivision 34</statute_ref>,<br/>
<a id="pl.54.14"></a><var>54.14</var> equity revenue, pension adjustment revenue, and transition revenue as though the school <br/>
<a id="pl.54.15"></a><var>54.15</var>were a school district. The general education revenue for each extended time marginal <br/>
<a id="pl.54.16"></a><var>54.16</var>cost pupil unit equals $4,378 $4,722.<br/>
<a id="pl.54.17"></a><var>54.17</var>(b) Notwithstanding paragraph (a), for charter schools in the first year of operation, <br/>
<a id="pl.54.18"></a><var>54.18</var>general education revenue shall be computed using the number of adjusted pupil units <br/>
<a id="pl.54.19"></a><var>54.19</var>in the current fiscal year.<br/>
<a id="pl.54.20"></a><var>54.20</var><b>EFFECTIVE DATE.</b>This section is effective for revenue for fiscal year 2015 <br/>
<a id="pl.54.21"></a><var>54.21</var>and later.<br/>
<br/>
<a id="bill.3.2.0"></a><a id="pl.54.22"></a><var>54.22</var>    Sec. 2. <b>[124D.862] ACHIEVEMENT AND INTEGRATION REVENUE.</b><br/>
<a id="pl.54.23"></a><var>54.23</var>    Subdivision 1. <b>Eligibility.</b> A school district is eligible for achievement and <br/>
<a id="pl.54.24"></a><var>54.24</var>integration revenue under this section if the district has a biennial achievement and <br/>
<a id="pl.54.25"></a><var>54.25</var>integration plan approved by the department under section 124D.861. Priority for funding <br/>
<a id="pl.54.26"></a><var>54.26</var>must be given to eligible school districts that include methods that have been effective in <br/>
<a id="pl.54.27"></a><var>54.27</var>reducing disparities in student achievement in the district's biennial plan.<br/>
<a id="pl.54.28"></a><var>54.28</var>    Subd. 2. <b>Achievement and integration revenue.</b> (a) For fiscal year 2014, initial <br/>
<a id="pl.54.29"></a><var>54.29</var>achievement and integration revenue for an eligible district equals the lesser of the <br/>
<a id="pl.54.30"></a><var>54.30</var>district's expenditure for the fiscal year under its budget according to subdivision 1a or the <br/>
<a id="pl.54.31"></a><var>54.31</var>greater of: (1) 90 percent of the district's integration revenue for fiscal year 2013 under <br/>
<a id="pl.54.32"></a><var>54.32</var>Minnesota Statutes 2012, section 124D.86, or (2) the sum of: (i) $361 times the district's <br/>
<a id="pl.54.33"></a><var>54.33</var>adjusted pupil units for the prior fiscal year computed using the pupil unit weights effective <br/>
<a id="pl.54.34"></a><var>54.34</var>under section 126C.05 for fiscal year 2015 and later, times the district's enrollment of <br/>
<a id="pl.55.1"></a><var>55.1</var>protected students as a percent of its total enrollment on October 1 of the prior fiscal year, <br/>
<a id="pl.55.2"></a><var>55.2</var>plus (ii) $100 times the district's adjusted pupil units for the prior fiscal year computed <br/>
<a id="pl.55.3"></a><var>55.3</var>using the pupil unit weights effective under section 126C.05 for fiscal year 2015 and later <br/>
<a id="pl.55.4"></a><var>55.4</var>times the district's enrollment of protected students as a percent of its total enrollment on <br/>
<a id="pl.55.5"></a><var>55.5</var>October 1 of the prior fiscal year times the district's focus rating for the prior fiscal year <br/>
<a id="pl.55.6"></a><var>55.6</var>under Minnesota's 2012 Elementary and Secondary Education Act flexibility request.<br/>
<a id="pl.55.7"></a><var>55.7</var>(b) For fiscal year 2015 and later, initial achievement and integration revenue for <br/>
<a id="pl.55.8"></a><var>55.8</var>an eligible district equals the lesser of the district's expenditure for the fiscal year under <br/>
<a id="pl.55.9"></a><var>55.9</var>its budget according to subdivision 1a or the greater of: (1) 63 percent of the district's <br/>
<a id="pl.55.10"></a><var>55.10</var>integration revenue for fiscal year 2013 under Minnesota Statutes 2012, section 124D.86, <br/>
<a id="pl.55.11"></a><var>55.11</var>or (2) the sum of: (i) $361 times the district's adjusted pupil units for the prior fiscal year <br/>
<a id="pl.55.12"></a><var>55.12</var>computed using the pupil unit weights effective under section 126C.05 for fiscal year 2015 <br/>
<a id="pl.55.13"></a><var>55.13</var>and later, times the district's enrollment of protected students as a percent of its total <br/>
<a id="pl.55.14"></a><var>55.14</var>enrollment on October 1 of the prior fiscal year, plus (ii) 100 times the district's adjusted <br/>
<a id="pl.55.15"></a><var>55.15</var>pupil units for the prior fiscal year computed using the pupil unit weights effective under <br/>
<a id="pl.55.16"></a><var>55.16</var>section 126C.05 for fiscal year 2015 and later, times the district's enrollment of protected <br/>
<a id="pl.55.17"></a><var>55.17</var>students as a percent of its total enrollment on October 1 of the prior fiscal year times the <br/>
<a id="pl.55.18"></a><var>55.18</var>district's focus rating for the prior fiscal year under Minnesota's 2012 Elementary and <br/>
<a id="pl.55.19"></a><var>55.19</var>Secondary Education Act flexibility request.<br/>
<a id="pl.55.20"></a><var>55.20</var>(c) In each year, .02 percent of each district's initial achievement and integration <br/>
<a id="pl.55.21"></a><var>55.21</var>revenue is transferred to the Department of Education for the oversight and accountability <br/>
<a id="pl.55.22"></a><var>55.22</var>activities required under this section and section 124D.861.<br/>
<a id="pl.55.23"></a><var>55.23</var>(d) A district that did not meet its achievement goals established in section 124D.861 <br/>
<a id="pl.55.24"></a><var>55.24</var>for the previous biennium must report to the commissioner the reasons why the goals were <br/>
<a id="pl.55.25"></a><var>55.25</var>not met. The district must submit a two-year improvement plan to achieve the unmet goals <br/>
<a id="pl.55.26"></a><var>55.26</var>from its achievement and integration plan. A district that does not meet its goals in the <br/>
<a id="pl.55.27"></a><var>55.27</var>improvement plan must have its initial achievement and integration revenue reduced by <br/>
<a id="pl.55.28"></a><var>55.28</var>20 percent for the current year.<br/>
<a id="pl.55.29"></a><var>55.29</var>(e) Any revenue saved by the reductions in paragraph (d) must be proportionately <br/>
<a id="pl.55.30"></a><var>55.30</var>reallocated on a per adjusted pupil unit basis to all districts that met their achievement <br/>
<a id="pl.55.31"></a><var>55.31</var>goals in the previous biennium.<br/>
<a id="pl.55.32"></a><var>55.32</var>    Subd. 3. <b>Achievement and integration aid.</b> A district's achievement and <br/>
<a id="pl.55.33"></a><var>55.33</var>integration aid for fiscal year 2014 and later equals the difference between the district's <br/>
<a id="pl.55.34"></a><var>55.34</var>achievement and integration revenue and its achievement and integration levy.<br/>
<a id="pl.55.35"></a><var>55.35</var>    Subd. 4. <b>Achievement and integration levy.</b>  For fiscal year 2014 and later, <br/>
<a id="pl.55.36"></a><var>55.36</var>a district may levy an amount equal to 30 percent of the district's achievement and <br/>
<a id="pl.56.1"></a><var>56.1</var>integration revenue as defined in subdivision 2. For fiscal year 2014 only, a district's <br/>
<a id="pl.56.2"></a><var>56.2</var>achievement and integration levy equals the amount the district was authorized to levy <br/>
<a id="pl.56.3"></a><var>56.3</var>under Laws 2011, First Special Session chapter 11, article 2, section 49, paragraph (f).<br/>
<a id="pl.56.4"></a><var>56.4</var>    Subd. 5. <b>Revenue reserved.</b> Integration revenue received under this section must <br/>
<a id="pl.56.5"></a><var>56.5</var>be reserved and used only for the programs authorized in subdivision 6.<br/>
<a id="pl.56.6"></a><var>56.6</var>    Subd. 6. <b>Revenue uses.</b> At least 80 percent of a district's achievement and <br/>
<a id="pl.56.7"></a><var>56.7</var>integration revenue received under this section must be used for innovative and integrated <br/>
<a id="pl.56.8"></a><var>56.8</var>learning environments, family engagement activities, and other approved programs <br/>
<a id="pl.56.9"></a><var>56.9</var>providing direct services to students. Up to 20 percent of the revenue may be used for <br/>
<a id="pl.56.10"></a><var>56.10</var>professional development and staff development activities, and not more than ten percent <br/>
<a id="pl.56.11"></a><var>56.11</var>of this share of the revenue may be used for administrative expenditures.<br/>
<a id="pl.56.12"></a><var>56.12</var><b>EFFECTIVE DATE.</b>This section is effective for revenue for fiscal year 2014 <br/>
<a id="pl.56.13"></a><var>56.13</var>and later.<br/>
<br/>
<a id="bill.3.3.0"></a><a id="pl.56.14"></a><var>56.14</var>    Sec. 3. Minnesota Statutes 2012, section 126C.10, subdivision 1, is amended to read:<br/>
<a id="pl.56.15"></a><var>56.15</var>    Subdivision 1. <b>General education revenue.</b> (a) For fiscal years 2013 and 2014, the <br/>
<a id="pl.56.16"></a><var>56.16</var>general education revenue for each district equals the sum of the district's basic revenue, <br/>
<a id="pl.56.17"></a><var>56.17</var>extended time revenue, gifted and talented revenue, small schools revenue, basic skills <br/>
<a id="pl.56.18"></a><var>56.18</var>revenue, training and experience revenue, secondary sparsity revenue, elementary sparsity <br/>
<a id="pl.56.19"></a><var>56.19</var>revenue, transportation sparsity revenue, total operating capital revenue, equity revenue, <br/>
<a id="pl.56.20"></a><var>56.20</var>alternative teacher compensation revenue, and transition revenue.<br/>
<a id="pl.56.21"></a><var>56.21</var>(b)  For fiscal year 2015 and later, the general education revenue for each district <br/>
<a id="pl.56.22"></a><var>56.22</var>equals the sum of the district's basic revenue, extended time revenue, gifted and talented <br/>
<a id="pl.56.23"></a><var>56.23</var>revenue, declining enrollment revenue, small schools revenue, basic supplemental <br/>
<a id="pl.56.24"></a><var>56.24</var>revenue, basic skills revenue, secondary sparsity revenue, elementary sparsity revenue, <br/>
<a id="pl.56.25"></a><var>56.25</var>transportation sparsity revenue, total operating capital revenue, education advancement <br/>
<a id="pl.56.26"></a><var>56.26</var>revenue, equity revenue, pension adjustment revenue, safe schools revenue, and transition <br/>
<a id="pl.56.27"></a><var>56.27</var>revenue.<br/>
<br/>
<a id="bill.3.4.0"></a><a id="pl.56.28"></a><var>56.28</var>    Sec. 4. Minnesota Statutes 2012, section 126C.10, subdivision 27, is amended to read:<br/>
<a id="pl.56.29"></a><var>56.29</var>    Subd. 27. <b>District equity index.</b> (a) A district's equity index equals the greater <br/>
<a id="pl.56.30"></a><var>56.30</var>of zero or the ratio of the sum of the district equity gap amount to the regional equity <br/>
<a id="pl.56.31"></a><var>56.31</var>gap amount $1,600 minus the district's referendum revenue under section 126C.17, <br/>
<a id="pl.56.32"></a><var>56.32</var>subdivision 4, per adjusted pupil unit to $1,600.<br/>
<a id="pl.57.1"></a><var>57.1</var>(b) A charter school's equity index equals the greater of zero or the ratio of $1,600 <br/>
<a id="pl.57.2"></a><var>57.2</var>minus the school's general education revenue attributable to referendum equalization aid <br/>
<a id="pl.57.3"></a><var>57.3</var>under section 124D.11, subdivision 1, per adjusted pupil unit to $1,600.<br/>
<a id="pl.57.4"></a><var>57.4</var><b>EFFECTIVE DATE.</b>This section is effective for revenue for fiscal year 2015 <br/>
<a id="pl.57.5"></a><var>57.5</var>and later.<br/>
<br/>
<a id="bill.3.5.0"></a><a id="pl.57.6"></a><var>57.6</var>    Sec. 5. Minnesota Statutes 2012, section 126C.10, is amended by adding a subdivision <br/>
<a id="pl.57.7"></a><var>57.7</var>to read:<br/>
<a id="pl.57.8"></a><var>57.8</var>    Subd. 37. <b>Education advancement revenue.</b> The education advancement revenue <br/>
<a id="pl.57.9"></a><var>57.9</var>for each district equals the advancement allowance times the adjusted pupil units for the <br/>
<a id="pl.57.10"></a><var>57.10</var>school year. The advancement allowance for fiscal year 2015 and later years is $300.<br/>
<a id="pl.57.11"></a><var>57.11</var><b>EFFECTIVE DATE.</b>This section is effective for revenue for fiscal year 2015 <br/>
<a id="pl.57.12"></a><var>57.12</var>and later.<br/>
<br/>
<a id="bill.3.6.0"></a><a id="pl.57.13"></a><var>57.13</var>    Sec. 6. Minnesota Statutes 2012, section 126C.10, is amended by adding a subdivision <br/>
<a id="pl.57.14"></a><var>57.14</var>to read:<br/>
<a id="pl.57.15"></a><var>57.15</var>    Subd. 39. <b>Education advancement levy.</b> To obtain education advancement <br/>
<a id="pl.57.16"></a><var>57.16</var>revenue, a district may levy an amount not more than the product of its education <br/>
<a id="pl.57.17"></a><var>57.17</var>advancement revenue for the fiscal year times the lesser of one or the ratio of its <br/>
<a id="pl.57.18"></a><var>57.18</var>referendum market value per resident pupil unit to the education advancement revenue <br/>
<a id="pl.57.19"></a><var>57.19</var>equalizing factor. The education advancement revenue equalizing factor equals $785,000. <br/>
<a id="pl.57.20"></a><var>57.20</var>If a district adopts a board resolution to levy less than the permitted levy, the district's <br/>
<a id="pl.57.21"></a><var>57.21</var>education advancement aid shall be reduced proportionately.<br/>
<a id="pl.57.22"></a><var>57.22</var><b>EFFECTIVE DATE.</b>This section is effective for revenue for fiscal year 2015 <br/>
<a id="pl.57.23"></a><var>57.23</var>and later.<br/>
<br/>
<a id="bill.3.7.0"></a><a id="pl.57.24"></a><var>57.24</var>    Sec. 7. Minnesota Statutes 2012, section 126C.10, is amended by adding a subdivision <br/>
<a id="pl.57.25"></a><var>57.25</var>to read:<br/>
<a id="pl.57.26"></a><var>57.26</var>    Subd. 40. <b>Education advancement aid.</b> For fiscal year 2015 and later, a school <br/>
<a id="pl.57.27"></a><var>57.27</var>district's education advancement aid is the product of: (1) the difference between the <br/>
<a id="pl.57.28"></a><var>57.28</var>district's education advancement revenue and the education advancement levy; times (2) <br/>
<a id="pl.57.29"></a><var>57.29</var>the ratio of the actual amount levied to the permitted levy.<br/>
<a id="pl.57.30"></a><var>57.30</var><b>EFFECTIVE DATE.</b>This section is effective for revenue for fiscal year 2015 <br/>
<a id="pl.57.31"></a><var>57.31</var>and later.<br/>
<br/>
<a id="bill.3.8.0"></a><a id="pl.58.1"></a><var>58.1</var>    Sec. 8. Minnesota Statutes 2012, section 126C.13, is amended by adding a subdivision <br/>
<a id="pl.58.2"></a><var>58.2</var>to read:<br/>
<a id="pl.58.3"></a><var>58.3</var>    Subd. 3c. <b>General education levy; districts off the formula.</b> (a) If the amount of <br/>
<a id="pl.58.4"></a><var>58.4</var>the general education levy for a district exceeds the district's general education revenue, <br/>
<a id="pl.58.5"></a><var>58.5</var>excluding equity revenue, transition revenue, and education advancement revenue, the <br/>
<a id="pl.58.6"></a><var>58.6</var>amount of the general education levy must be limited to the district's general education <br/>
<a id="pl.58.7"></a><var>58.7</var>revenue, excluding equity revenue, transition revenue, and education advancement revenue.<br/>
<a id="pl.58.8"></a><var>58.8</var>    (b) A levy made according to this subdivision shall also be construed to be the levy <br/>
<a id="pl.58.9"></a><var>58.9</var>made according to subdivision 3b.<br/>
<br/>
<a id="bill.3.9.0"></a><a id="pl.58.10"></a><var>58.10</var>    Sec. 9. Minnesota Statutes 2012, section 126C.13, subdivision 4, is amended to read:<br/>
<a id="pl.58.11"></a><var>58.11</var>    Subd. 4. <b>General education aid.</b> (a) For fiscal years 2007 2013 and later 2014 only, <br/>
<a id="pl.58.12"></a><var>58.12</var>a district's general education aid is the sum of the following amounts:<br/>
<a id="pl.58.13"></a><var>58.13</var>    (1) general education revenue, excluding equity revenue, total operating capital <br/>
<a id="pl.58.14"></a><var>58.14</var>revenue, alternative teacher compensation revenue, and transition revenue;<br/>
<a id="pl.58.15"></a><var>58.15</var>    (2) operating capital aid under section 
         <statute_ref>126C.10, subdivision 13b</statute_ref>;<br/>
<a id="pl.58.16"></a><var>58.16</var>    (3) equity aid under section 
         <statute_ref>126C.10, subdivision 30</statute_ref>;<br/>
<a id="pl.58.17"></a><var>58.17</var>    (4) alternative teacher compensation aid under section 
         <statute_ref>126C.10, subdivision 36</statute_ref>;<br/>
<a id="pl.58.18"></a><var>58.18</var>    (5) transition aid under section 
         <statute_ref>126C.10, subdivision 33</statute_ref>;<br/>
<a id="pl.58.19"></a><var>58.19</var>    (6) shared time aid under section 
         <statute_ref>126C.01, subdivision 7</statute_ref>;<br/>
<a id="pl.58.20"></a><var>58.20</var>    (7) referendum aid under section 
         <statute_ref>126C.17</statute_ref>, subdivisions 7 and 7a; and<br/>
<a id="pl.58.21"></a><var>58.21</var>    (8) online learning aid according to section 
         <statute_ref>124D.096</statute_ref>.<br/>
<a id="pl.58.22"></a><var>58.22</var>(b) For fiscal year 2015 and later, a district's general education aid equals:<br/>
<a id="pl.58.23"></a><var>58.23</var>(1) general education revenue, excluding equity revenue, transition revenue, and <br/>
<a id="pl.58.24"></a><var>58.24</var>education advancement revenue, minus the general education levy, multiplied times the <br/>
<a id="pl.58.25"></a><var>58.25</var>ratio of the actual amount of general education levied to the permitted general education <br/>
<a id="pl.58.26"></a><var>58.26</var>levy; plus<br/>
<a id="pl.58.27"></a><var>58.27</var>(2) equity aid under section 126C.10, subdivision 30; plus<br/>
<a id="pl.58.28"></a><var>58.28</var>(3) transition aid under section 126C.10, subdivision 33; plus<br/>
<a id="pl.58.29"></a><var>58.29</var>(4) education advancement aid under section 126C.10, subdivision 40; plus<br/>
<a id="pl.58.30"></a><var>58.30</var>(5) shared time aid under section 126C.10, subdivision 7; plus<br/>
<a id="pl.58.31"></a><var>58.31</var>(6) referendum aid under section 126C.17, subdivisions 7 and 7a; plus<br/>
<a id="pl.58.32"></a><var>58.32</var>(7) online learning aid under section 124D.096.<br/>
<br/>
<a id="bill.3.10.0"></a><a id="pl.58.33"></a><var>58.33</var>    Sec. 10. Minnesota Statutes 2012, section 126C.17, is amended to read:<br/>
<a id="pl.58.34"></a><var>58.34</var><b>126C.17 REFERENDUM REVENUE.</b><br/>
<a id="pl.59.1"></a><var>59.1</var>    Subdivision 1. <b>Referendum allowance.</b> (a) For fiscal year 2003 and later, a district's <br/>
<a id="pl.59.2"></a><var>59.2</var>initial referendum revenue allowance equals the sum of the allowance under section <br/>
<a id="pl.59.3"></a><var>59.3</var><statute_ref>126C.16, subdivision 2</statute_ref>, plus any additional allowance per resident marginal cost pupil <br/>
<a id="pl.59.4"></a><var>59.4</var>unit authorized under subdivision 9 before May 1, 2001, for fiscal year 2002 and later, <br/>
<a id="pl.59.5"></a><var>59.5</var>plus the referendum conversion allowance approved under subdivision 13, minus $415. <br/>
<a id="pl.59.6"></a><var>59.6</var>For districts with more than one referendum authority, the reduction must be computed <br/>
<a id="pl.59.7"></a><var>59.7</var>separately for each authority. The reduction must be applied first to the referendum <br/>
<a id="pl.59.8"></a><var>59.8</var>conversion allowance and next to the authority with the earliest expiration date. A <br/>
<a id="pl.59.9"></a><var>59.9</var>district's initial referendum revenue allowance may not be less than zero.<br/>
<a id="pl.59.10"></a><var>59.10</var>(b) For fiscal year 2003, a district's referendum revenue allowance equals the initial <br/>
<a id="pl.59.11"></a><var>59.11</var>referendum allowance plus any additional allowance per resident marginal cost pupil unit <br/>
<a id="pl.59.12"></a><var>59.12</var>authorized under subdivision 9 between April 30, 2001, and December 30, 2001, for <br/>
<a id="pl.59.13"></a><var>59.13</var>fiscal year 2003 and later.<br/>
<a id="pl.59.14"></a><var>59.14</var>(c) For fiscal year 2004 and later, a district's referendum revenue allowance equals <br/>
<a id="pl.59.15"></a><var>59.15</var>the sum of:<br/>
<a id="pl.59.16"></a><var>59.16</var>(1) the product of (i) the ratio of the resident marginal cost pupil units the district <br/>
<a id="pl.59.17"></a><var>59.17</var>would have counted for fiscal year 2004 under Minnesota Statutes 2002, section 
<statute_ref>126C.05</statute_ref>, <br/>
<a id="pl.59.18"></a><var>59.18</var>to the district's resident marginal cost pupil units for fiscal year 2004, times (ii) the initial <br/>
<a id="pl.59.19"></a><var>59.19</var>referendum allowance plus any additional allowance per resident marginal cost pupil unit <br/>
<a id="pl.59.20"></a><var>59.20</var>authorized under subdivision 9 between April 30, 2001, and May 30, 2003, for fiscal <br/>
<a id="pl.59.21"></a><var>59.21</var>year 2003 and later, plus<br/>
<a id="pl.59.22"></a><var>59.22</var>(2) any additional allowance per resident marginal cost pupil unit authorized under <br/>
<a id="pl.59.23"></a><var>59.23</var>subdivision 9 after May 30, 2003, for fiscal year 2005 and later.<br/>
<a id="pl.59.24"></a><var>59.24</var>(a) A district's initial referendum allowance for fiscal year 2015 equals the result of <br/>
<a id="pl.59.25"></a><var>59.25</var>the following calculations:<br/>
<a id="pl.59.26"></a><var>59.26</var>(1) multiply the referendum allowance the district would have received for fiscal <br/>
<a id="pl.59.27"></a><var>59.27</var>year 2015 under section 126C.17, subdivision 1, based on elections held before July 1, <br/>
<a id="pl.59.28"></a><var>59.28</var>2013, by the resident marginal cost pupil units the district would have counted for fiscal <br/>
<a id="pl.59.29"></a><var>59.29</var>year 2015 under section 126C.05;<br/>
<a id="pl.59.30"></a><var>59.30</var>(2) add to the result of clause (1) the adjustment the district would have received <br/>
<a id="pl.59.31"></a><var>59.31</var>under section 127A.47, subdivision 7, paragraphs (a), (b), and (c), based on elections <br/>
<a id="pl.59.32"></a><var>59.32</var>held before July 1, 2013;<br/>
<a id="pl.59.33"></a><var>59.33</var>(3) divide the result of clause (2) by the district's adjusted pupil units for fiscal <br/>
<a id="pl.59.34"></a><var>59.34</var>year 2015, notwithstanding section 126C.05, subdivision 1, paragraph (d), calculated as <br/>
<a id="pl.59.35"></a><var>59.35</var>though a kindergarten pupil not included in section 126C.05, subdivision 1, paragraph <br/>
<a id="pl.59.36"></a><var>59.36</var>(c), is counted as 0.55 pupil units, and subtract $300; and<br/>
<a id="pl.60.1"></a><var>60.1</var>(4) if the result of clause (3) is less than zero, set the allowance to zero.<br/>
<a id="pl.60.2"></a><var>60.2</var>(b) A district's referendum allowance equals the sum of the district's initial <br/>
<a id="pl.60.3"></a><var>60.3</var>referendum allowance for fiscal year 2015, plus any additional referendum allowance per <br/>
<a id="pl.60.4"></a><var>60.4</var>adjusted pupil unit authorized after June 30, 2013, minus any allowances expiring in fiscal <br/>
<a id="pl.60.5"></a><var>60.5</var>year 2016 or later. For a district with more than one referendum allowance for fiscal year <br/>
<a id="pl.60.6"></a><var>60.6</var>2015 under section 126C.17, the allowance calculated under paragraph (a) must be divided <br/>
<a id="pl.60.7"></a><var>60.7</var>into components such that the same percentage of the district's allowance expires at the <br/>
<a id="pl.60.8"></a><var>60.8</var>same time as the old allowances would have expired under section 126C.17.<br/>
<a id="pl.60.9"></a><var>60.9</var>    Subd. 2. <b>Referendum allowance limit.</b> (a) Notwithstanding subdivision 1, for fiscal <br/>
<a id="pl.60.10"></a><var>60.10</var>year 2007 2015 and later, a district's referendum allowance must not exceed the greater of:<br/>
<a id="pl.60.11"></a><var>60.11</var>(1) the sum of: (i) a district's referendum allowance for fiscal year 1994 times 1.177 <br/>
<a id="pl.60.12"></a><var>60.12</var>times the annual inflationary increase as calculated under paragraph (b) plus (ii) its <br/>
<a id="pl.60.13"></a><var>60.13</var>referendum conversion allowance for fiscal year 2003, minus (iii) $215;<br/>
<a id="pl.60.14"></a><var>60.14</var>(2) the greater of (i): 26 percent of the formula allowance or (ii) $1,294 times is the <br/>
<a id="pl.60.15"></a><var>60.15</var>base referendum amount calculated in paragraph (b) minus $300. A district's referendum <br/>
<a id="pl.60.16"></a><var>60.16</var>allowance under this subdivision must not be less than zero.<br/>
<a id="pl.60.17"></a><var>60.17</var>(b) The base referendum amount is the annual inflationary increase as calculated <br/>
<a id="pl.60.18"></a><var>60.18</var>under paragraph (b); or times the greatest of:<br/>
<a id="pl.60.19"></a><var>60.19</var>(1) $1,845;<br/>
<a id="pl.60.20"></a><var>60.20</var>(2) the sum of the referendum revenue the district would have received for fiscal year <br/>
<a id="pl.60.21"></a><var>60.21</var>2015 under section 126C.17, subdivision 4, based on elections held before July 1, 2013, <br/>
<a id="pl.60.22"></a><var>60.22</var>and the adjustment the district would have received under section 127A.47, subdivision <br/>
<a id="pl.60.23"></a><var>60.23</var>7, paragraphs (a), (b), and (c), based on elections held before July 1, 2013, divided by <br/>
<a id="pl.60.24"></a><var>60.24</var>the district's adjusted pupil units for fiscal year 2015, notwithstanding section 126C.05, <br/>
<a id="pl.60.25"></a><var>60.25</var>subdivision 1, paragraph (d), calculated as though a kindergarten pupil not included in <br/>
<a id="pl.60.26"></a><var>60.26</var>section 126C.05, subdivision 1, paragraph (c), is counted as 0.55 pupil units; or<br/>
<a id="pl.60.27"></a><var>60.27</var>(3) the product of the referendum allowance limit the district would have received <br/>
<a id="pl.60.28"></a><var>60.28</var>for fiscal year 2015 under section 126C.17, subdivision 2, and the resident marginal cost <br/>
<a id="pl.60.29"></a><var>60.29</var>pupil units the district would have received for fiscal year 2015 under section 126C.05, <br/>
<a id="pl.60.30"></a><var>60.30</var>subdivision 6, plus the adjustment the district would have received under section 127A.47, <br/>
<a id="pl.60.31"></a><var>60.31</var>subdivision 7, paragraphs (a), (b), and (c), based on elections held before July 1, 2013, <br/>
<a id="pl.60.32"></a><var>60.32</var>divided by the district's adjusted pupil units for fiscal year 2015, notwithstanding section <br/>
<a id="pl.60.33"></a><var>60.33</var>126C.05, subdivision 1, paragraph (d), calculated as though a kindergarten pupil not <br/>
<a id="pl.60.34"></a><var>60.34</var>included in section 126C.05, subdivision 1, paragraph (c), is counted as 0.55 pupil units; or<br/>
<a id="pl.61.1"></a><var>61.1</var>(3) (4) for a newly reorganized district created after July 1, 2006 2013, the referendum <br/>
<a id="pl.61.2"></a><var>61.2</var>revenue authority for each reorganizing district in the year preceding reorganization divided <br/>
<a id="pl.61.3"></a><var>61.3</var>by its resident marginal cost adjusted pupil units for the year preceding reorganization.<br/>
<a id="pl.61.4"></a><var>61.4</var>(b) (c) For purposes of this subdivision, for fiscal year 2005 2016 and later, <br/>
<a id="pl.61.5"></a><var>61.5</var>"inflationary increase" means one plus the percentage change in the Consumer Price Index <br/>
<a id="pl.61.6"></a><var>61.6</var>for urban consumers, as prepared by the United States Bureau of Labor Standards, for the <br/>
<a id="pl.61.7"></a><var>61.7</var>current fiscal year to fiscal year 2004 2015. For fiscal years 2009 year 2016 and later, for <br/>
<a id="pl.61.8"></a><var>61.8</var>purposes of paragraph (a), clause (1) (3), the inflationary increase equals the inflationary <br/>
<a id="pl.61.9"></a><var>61.9</var>increase for fiscal year 2008 plus one-fourth of the percentage increase in the formula <br/>
<a id="pl.61.10"></a><var>61.10</var>allowance for that year compared with the formula allowance for fiscal year 2008 2015.<br/>
<a id="pl.61.11"></a><var>61.11</var>    Subd. 3. <b>Sparsity exception.</b> A district that qualifies for sparsity revenue under <br/>
<a id="pl.61.12"></a><var>61.12</var>section 
         <statute_ref>126C.10</statute_ref> is not subject to a referendum allowance limit.<br/>
<a id="pl.61.13"></a><var>61.13</var>    Subd. 4. <b>Total referendum revenue.</b> The total referendum revenue for each district <br/>
<a id="pl.61.14"></a><var>61.14</var>equals the district's referendum allowance times the resident marginal cost adjusted pupil <br/>
<a id="pl.61.15"></a><var>61.15</var>units for the school year.<br/>
<a id="pl.61.16"></a><var>61.16</var>    Subd. 5. <b>Referendum equalization revenue.</b> (a) For fiscal year 2003 and later,<br/>
<a id="pl.61.17"></a><var>61.17</var> A district's referendum equalization revenue equals the sum of the first tier referendum <br/>
<a id="pl.61.18"></a><var>61.18</var>equalization revenue and the second tier referendum equalization revenue.<br/>
<a id="pl.61.19"></a><var>61.19</var>(b) A district's first tier referendum equalization revenue equals the district's first <br/>
<a id="pl.61.20"></a><var>61.20</var>tier referendum equalization allowance times the district's resident marginal cost adjusted<br/>
<a id="pl.61.21"></a><var>61.21</var> pupil units for that year.<br/>
<a id="pl.61.22"></a><var>61.22</var>(c) For fiscal year 2006, a district's first tier referendum equalization allowance <br/>
<a id="pl.61.23"></a><var>61.23</var>equals the lesser of the district's referendum allowance under subdivision 1 or $500. For <br/>
<a id="pl.61.24"></a><var>61.24</var>fiscal year 2007, a district's first tier referendum equalization allowance equals the lesser <br/>
<a id="pl.61.25"></a><var>61.25</var>of the district's referendum allowance under subdivision 1 or $600.<br/>
<a id="pl.61.26"></a><var>61.26</var>For fiscal year 2008 and later, A district's first tier referendum equalization allowance <br/>
<a id="pl.61.27"></a><var>61.27</var>equals the lesser of the district's referendum allowance under subdivision 1 or $700 $775.<br/>
<a id="pl.61.28"></a><var>61.28</var>(d) A district's second tier referendum equalization revenue equals the district's <br/>
<a id="pl.61.29"></a><var>61.29</var>second tier referendum equalization allowance times the district's resident marginal cost<br/>
<a id="pl.61.30"></a><var>61.30</var> adjusted pupil units for that year.<br/>
<a id="pl.61.31"></a><var>61.31</var>(e) For fiscal year 2006, a district's second tier referendum equalization allowance <br/>
<a id="pl.61.32"></a><var>61.32</var>equals the lesser of the district's referendum allowance under subdivision 1 or 18.6 percent <br/>
<a id="pl.61.33"></a><var>61.33</var>of the formula allowance, minus the district's first tier referendum equalization allowance. <br/>
<a id="pl.61.34"></a><var>61.34</var>For fiscal year 2007 and later, A district's second tier referendum equalization allowance <br/>
<a id="pl.61.35"></a><var>61.35</var>equals the lesser of the district's referendum allowance under subdivision 1 or 26 25 percent <br/>
<a id="pl.61.36"></a><var>61.36</var>of the formula allowance, minus the district's first tier referendum equalization allowance.<br/>
<a id="pl.62.1"></a><var>62.1</var>(f) Notwithstanding paragraph (e), the second tier referendum allowance for a <br/>
<a id="pl.62.2"></a><var>62.2</var>district qualifying for secondary sparsity revenue under section 
         <statute_ref>126C.10, subdivision 7</statute_ref>, or <br/>
<a id="pl.62.3"></a><var>62.3</var>elementary sparsity revenue under section 
         <statute_ref>126C.10, subdivision 8</statute_ref>, equals the district's <br/>
<a id="pl.62.4"></a><var>62.4</var>referendum allowance under subdivision 1 minus the district's first tier referendum <br/>
<a id="pl.62.5"></a><var>62.5</var>equalization allowance.<br/>
<a id="pl.62.6"></a><var>62.6</var>    Subd. 6. <b>Referendum equalization levy.</b> (a) For fiscal year 2003 and later, <br/>
<a id="pl.62.7"></a><var>62.7</var>a district's referendum equalization levy equals the sum of the first tier referendum <br/>
<a id="pl.62.8"></a><var>62.8</var>equalization levy and the second tier referendum equalization levy.<br/>
<a id="pl.62.9"></a><var>62.9</var>(b) A district's first tier referendum equalization levy equals the district's first tier <br/>
<a id="pl.62.10"></a><var>62.10</var>referendum equalization revenue times the lesser of one or the ratio of the district's <br/>
<a id="pl.62.11"></a><var>62.11</var>referendum market value per resident marginal cost pupil unit to $476,000 $538,200.<br/>
<a id="pl.62.12"></a><var>62.12</var>(c) A district's second tier referendum equalization levy equals the district's second <br/>
<a id="pl.62.13"></a><var>62.13</var>tier referendum equalization revenue times the lesser of one or the ratio of the district's <br/>
<a id="pl.62.14"></a><var>62.14</var>referendum market value per resident marginal cost pupil unit to $270,000 $259,415.<br/>
<a id="pl.62.15"></a><var>62.15</var>    Subd. 7. <b>Referendum equalization aid.</b> (a) A district's referendum equalization aid <br/>
<a id="pl.62.16"></a><var>62.16</var>equals the difference between its referendum equalization revenue and levy.<br/>
<a id="pl.62.17"></a><var>62.17</var>(b) If a district's actual levy for first or second tier referendum equalization revenue <br/>
<a id="pl.62.18"></a><var>62.18</var>is less than its maximum levy limit for that tier, aid shall be proportionately reduced.<br/>
<a id="pl.62.19"></a><var>62.19</var>(c) Notwithstanding paragraph (a), the referendum equalization aid for a district, <br/>
<a id="pl.62.20"></a><var>62.20</var>where the referendum equalization aid under paragraph (a) exceeds 90 percent of the <br/>
<a id="pl.62.21"></a><var>62.21</var>referendum revenue, must not exceed 26 25 percent of the formula allowance times the <br/>
<a id="pl.62.22"></a><var>62.22</var>district's resident marginal cost adjusted pupil units. A district's referendum levy is <br/>
<a id="pl.62.23"></a><var>62.23</var>increased by the amount of any reduction in referendum aid under this paragraph.<br/>
<a id="pl.62.24"></a><var>62.24</var>    Subd. 7a. <b>Referendum tax base replacement aid.</b> For each school district that <br/>
<a id="pl.62.25"></a><var>62.25</var>had a referendum allowance for fiscal year 2002 exceeding $415, for each separately <br/>
<a id="pl.62.26"></a><var>62.26</var>authorized referendum levy, the commissioner of revenue, in consultation with the <br/>
<a id="pl.62.27"></a><var>62.27</var>commissioner of education, shall certify the amount of the referendum levy in taxes <br/>
<a id="pl.62.28"></a><var>62.28</var>payable year 2001 attributable to the portion of the referendum allowance exceeding $415 <br/>
<a id="pl.62.29"></a><var>62.29</var>levied against property classified as class 2, noncommercial 4c(1), or 4c(4), under section <br/>
<statute_ref><a id="pl.62.30"></a><var>62.30</var>273.13
         </statute_ref>, excluding the portion of the tax paid by the portion of class 2a property consisting <br/>
<a id="pl.62.31"></a><var>62.31</var>of the house, garage, and surrounding one acre of land. The resulting amount must be <br/>
<a id="pl.62.32"></a><var>62.32</var>used to reduce the district's referendum levy amount otherwise determined, and must be <br/>
<a id="pl.62.33"></a><var>62.33</var>paid to the district each year that the referendum authority remains in effect, is renewed, <br/>
<a id="pl.62.34"></a><var>62.34</var>or new referendum authority is approved. The aid payable under this subdivision must <br/>
<a id="pl.62.35"></a><var>62.35</var>be subtracted from the district's referendum equalization aid under subdivision 7. The <br/>
<a id="pl.62.36"></a><var>62.36</var>referendum equalization aid after the subtraction must not be less than zero.<br/>
<a id="pl.63.1"></a><var>63.1</var>    Subd. 7b. <b>Referendum aid guarantee.</b> (a) Notwithstanding subdivision 7, a <br/>
<a id="pl.63.2"></a><var>63.2</var>district's referendum equalization aid for fiscal year 2015 must not be less than the sum of <br/>
<a id="pl.63.3"></a><var>63.3</var>the referendum equalization aid the district would have received for fiscal year 2015 under <br/>
<a id="pl.63.4"></a><var>63.4</var>section 126C.17, subdivision 7, and the adjustment the district would have received under <br/>
<a id="pl.63.5"></a><var>63.5</var>section 127A.47, subdivision 7, paragraphs (a), (b), and (c).<br/>
<a id="pl.63.6"></a><var>63.6</var>(b) Notwithstanding subdivision 7, referendum equalization aid for fiscal year 2016 <br/>
<a id="pl.63.7"></a><var>63.7</var>and later, for a district qualifying for additional aid under paragraph (a) for fiscal year <br/>
<a id="pl.63.8"></a><var>63.8</var>2015, must not be less than the product of (1) the district's referendum equalization aid <br/>
<a id="pl.63.9"></a><var>63.9</var>for fiscal year 2015, times (2) the lesser of one or the ratio of the district's referendum <br/>
<a id="pl.63.10"></a><var>63.10</var>revenue for that school year to the district's referendum revenue for fiscal year 2015, times <br/>
<a id="pl.63.11"></a><var>63.11</var>(3) the lesser of one or the ratio of the district's referendum market value used for fiscal <br/>
<a id="pl.63.12"></a><var>63.12</var>year 2015 referendum equalization calculations to the district's referendum market value <br/>
<a id="pl.63.13"></a><var>63.13</var>used for that year's referendum equalization calculations.<br/>
<a id="pl.63.14"></a><var>63.14</var>    Subd. 8. <b>Unequalized referendum levy.</b> Each year, a district may levy an amount <br/>
<a id="pl.63.15"></a><var>63.15</var>equal to the difference between its total referendum revenue according to subdivision 4 <br/>
<a id="pl.63.16"></a><var>63.16</var>and its referendum equalization revenue according to subdivision 5.<br/>
<a id="pl.63.17"></a><var>63.17</var>    Subd. 9. <b>Referendum revenue.</b> (a) The revenue authorized by section 
         <statute_ref>126C.10, <br/>
<a id="pl.63.18"></a><var>63.18</var>subdivision 1
         </statute_ref>, may be increased in the amount approved by the voters of the district <br/>
<a id="pl.63.19"></a><var>63.19</var>at a referendum called for the purpose. The referendum may be called by the board. <br/>
<a id="pl.63.20"></a><var>63.20</var>The referendum must be conducted one or two calendar years before the increased levy <br/>
<a id="pl.63.21"></a><var>63.21</var>authority, if approved, first becomes payable. Only one election to approve an increase <br/>
<a id="pl.63.22"></a><var>63.22</var>may be held in a calendar year. Unless the referendum is conducted by mail under <br/>
<a id="pl.63.23"></a><var>63.23</var>subdivision 11, paragraph (a), the referendum must be held on the first Tuesday after the <br/>
<a id="pl.63.24"></a><var>63.24</var>first Monday in November. The ballot must state the maximum amount of the increased <br/>
<a id="pl.63.25"></a><var>63.25</var>revenue per resident marginal cost adjusted pupil unit. The ballot may state a schedule, <br/>
<a id="pl.63.26"></a><var>63.26</var>determined by the board, of increased revenue per resident marginal cost adjusted pupil <br/>
<a id="pl.63.27"></a><var>63.27</var>unit that differs from year to year over the number of years for which the increased revenue <br/>
<a id="pl.63.28"></a><var>63.28</var>is authorized or may state that the amount shall increase annually by the rate of inflation. <br/>
<a id="pl.63.29"></a><var>63.29</var>For this purpose, the rate of inflation shall be the annual inflationary increase calculated <br/>
<a id="pl.63.30"></a><var>63.30</var>under subdivision 2, paragraph (b). The ballot may state that existing referendum levy <br/>
<a id="pl.63.31"></a><var>63.31</var>authority is expiring. In this case, the ballot may also compare the proposed levy authority <br/>
<a id="pl.63.32"></a><var>63.32</var>to the existing expiring levy authority, and express the proposed increase as the amount, if <br/>
<a id="pl.63.33"></a><var>63.33</var>any, over the expiring referendum levy authority. The ballot must designate the specific <br/>
<a id="pl.63.34"></a><var>63.34</var>number of years, not to exceed ten, for which the referendum authorization applies. The <br/>
<a id="pl.63.35"></a><var>63.35</var>ballot, including a ballot on the question to revoke or reduce the increased revenue amount <br/>
<a id="pl.63.36"></a><var>63.36</var>under paragraph (c), must abbreviate the term "per resident marginal cost adjusted pupil <br/>
<a id="pl.64.1"></a><var>64.1</var>unit" as "per pupil." The notice required under section 
         <statute_ref>275.60</statute_ref> may be modified to read, in <br/>
<a id="pl.64.2"></a><var>64.2</var>cases of renewing existing levies at the same amount per pupil as in the previous year:<br/>
<a id="pl.64.3"></a><var>64.3</var>"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING <br/>
<a id="pl.64.4"></a><var>64.4</var>TO EXTEND AN EXISTING PROPERTY TAX REFERENDUM THAT IS <br/>
<a id="pl.64.5"></a><var>64.5</var>SCHEDULED TO EXPIRE."<br/>
<a id="pl.64.6"></a><var>64.6</var>    The ballot may contain a textual portion with the information required in this <br/>
<a id="pl.64.7"></a><var>64.7</var>subdivision and a question stating substantially the following:<br/>
<a id="pl.64.8"></a><var>64.8</var>    "Shall the increase in the revenue proposed by (petition to) the board of ........., <br/>
<a id="pl.64.9"></a><var>64.9</var>School District No. .., be approved?"<br/>
<a id="pl.64.10"></a><var>64.10</var>    If approved, an amount equal to the approved revenue per resident marginal cost<br/>
<a id="pl.64.11"></a><var>64.11</var> adjusted pupil unit times the resident marginal cost adjusted pupil units for the school <br/>
<a id="pl.64.12"></a><var>64.12</var>year beginning in the year after the levy is certified shall be authorized for certification <br/>
<a id="pl.64.13"></a><var>64.13</var>for the number of years approved, if applicable, or until revoked or reduced by the voters <br/>
<a id="pl.64.14"></a><var>64.14</var>of the district at a subsequent referendum.<br/>
<a id="pl.64.15"></a><var>64.15</var>    (b) The board must prepare and deliver by first class mail at least 15 days but no more <br/>
<a id="pl.64.16"></a><var>64.16</var>than 30 days before the day of the referendum to each taxpayer a notice of the referendum <br/>
<a id="pl.64.17"></a><var>64.17</var>and the proposed revenue increase. The board need not mail more than one notice to any <br/>
<a id="pl.64.18"></a><var>64.18</var>taxpayer. For the purpose of giving mailed notice under this subdivision, owners must be <br/>
<a id="pl.64.19"></a><var>64.19</var>those shown to be owners on the records of the county auditor or, in any county where <br/>
<a id="pl.64.20"></a><var>64.20</var>tax statements are mailed by the county treasurer, on the records of the county treasurer. <br/>
<a id="pl.64.21"></a><var>64.21</var>Every property owner whose name does not appear on the records of the county auditor <br/>
<a id="pl.64.22"></a><var>64.22</var>or the county treasurer is deemed to have waived this mailed notice unless the owner <br/>
<a id="pl.64.23"></a><var>64.23</var>has requested in writing that the county auditor or county treasurer, as the case may be, <br/>
<a id="pl.64.24"></a><var>64.24</var>include the name on the records for this purpose. The notice must project the anticipated <br/>
<a id="pl.64.25"></a><var>64.25</var>amount of tax increase in annual dollars for typical residential homesteads, agricultural <br/>
<a id="pl.64.26"></a><var>64.26</var>homesteads, apartments, and commercial-industrial property within the school district.<br/>
<a id="pl.64.27"></a><var>64.27</var>    The notice for a referendum may state that an existing referendum levy is expiring <br/>
<a id="pl.64.28"></a><var>64.28</var>and project the anticipated amount of increase over the existing referendum levy in <br/>
<a id="pl.64.29"></a><var>64.29</var>the first year, if any, in annual dollars for typical residential homesteads, agricultural <br/>
<a id="pl.64.30"></a><var>64.30</var>homesteads, apartments, and commercial-industrial property within the district.<br/>
<a id="pl.64.31"></a><var>64.31</var>    The notice must include the following statement: "Passage of this referendum will <br/>
<a id="pl.64.32"></a><var>64.32</var>result in an increase in your property taxes." However, in cases of renewing existing levies, <br/>
<a id="pl.64.33"></a><var>64.33</var>the notice may include the following statement: "Passage of this referendum extends an <br/>
<a id="pl.64.34"></a><var>64.34</var>existing operating referendum at the same amount per pupil as in the previous year."<br/>
<a id="pl.64.35"></a><var>64.35</var>    (c) A referendum on the question of revoking or reducing the increased revenue <br/>
<a id="pl.64.36"></a><var>64.36</var>amount authorized pursuant to paragraph (a) may be called by the board. A referendum to <br/>
<a id="pl.65.1"></a><var>65.1</var>revoke or reduce the revenue amount must state the amount per resident marginal cost <br/>
<a id="pl.65.2"></a><var>65.2</var>pupil unit by which the authority is to be reduced. Revenue authority approved by the <br/>
<a id="pl.65.3"></a><var>65.3</var>voters of the district pursuant to paragraph (a) must be available to the school district at <br/>
<a id="pl.65.4"></a><var>65.4</var>least once before it is subject to a referendum on its revocation or reduction for subsequent <br/>
<a id="pl.65.5"></a><var>65.5</var>years. Only one revocation or reduction referendum may be held to revoke or reduce <br/>
<a id="pl.65.6"></a><var>65.6</var>referendum revenue for any specific year and for years thereafter.<br/>
<a id="pl.65.7"></a><var>65.7</var>    (d) The approval of 50 percent plus one of those voting on the question is required to <br/>
<a id="pl.65.8"></a><var>65.8</var>pass a referendum authorized by this subdivision.<br/>
<a id="pl.65.9"></a><var>65.9</var>    (e) At least 15 days before the day of the referendum, the district must submit a <br/>
<a id="pl.65.10"></a><var>65.10</var>copy of the notice required under paragraph (b) to the commissioner and to the county <br/>
<a id="pl.65.11"></a><var>65.11</var>auditor of each county in which the district is located. Within 15 days after the results <br/>
<a id="pl.65.12"></a><var>65.12</var>of the referendum have been certified by the board, or in the case of a recount, the <br/>
<a id="pl.65.13"></a><var>65.13</var>certification of the results of the recount by the canvassing board, the district must notify <br/>
<a id="pl.65.14"></a><var>65.14</var>the commissioner of the results of the referendum.<br/>
<a id="pl.65.15"></a><var>65.15</var>    Subd. 10. <b>School referendum levy; market value.</b> A school referendum levy must <br/>
<a id="pl.65.16"></a><var>65.16</var>be levied against the referendum market value of all taxable property as defined in section <br/>
<statute_ref><a id="pl.65.17"></a><var>65.17</var>126C.01, subdivision 3
         </statute_ref>. Any referendum levy amount subject to the requirements of this <br/>
<a id="pl.65.18"></a><var>65.18</var>subdivision must be certified separately to the county auditor under section 
         <statute_ref>275.07</statute_ref>.<br/>
<a id="pl.65.19"></a><var>65.19</var>    Subd. 11. <b>Referendum date.</b> (a) Except for a referendum held under paragraph (b), <br/>
<a id="pl.65.20"></a><var>65.20</var>any referendum under this section held on a day other than the first Tuesday after the first <br/>
<a id="pl.65.21"></a><var>65.21</var>Monday in November must be conducted by mail in accordance with section 
         <statute_ref>204B.46</statute_ref>. <br/>
<a id="pl.65.22"></a><var>65.22</var>Notwithstanding subdivision 9, paragraph (b), to the contrary, in the case of a referendum <br/>
<a id="pl.65.23"></a><var>65.23</var>conducted by mail under this paragraph, the notice required by subdivision 9, paragraph (b), <br/>
<a id="pl.65.24"></a><var>65.24</var>must be prepared and delivered by first-class mail at least 20 days before the referendum.<br/>
<a id="pl.65.25"></a><var>65.25</var>(b) In addition to the referenda allowed in subdivision 9, clause (a), the commissioner <br/>
<a id="pl.65.26"></a><var>65.26</var>may grant authority to a district to hold a referendum on a different day if the district is in <br/>
<a id="pl.65.27"></a><var>65.27</var>statutory operating debt and has an approved plan or has received an extension from the <br/>
<a id="pl.65.28"></a><var>65.28</var>department to file a plan to eliminate the statutory operating debt.<br/>
<a id="pl.65.29"></a><var>65.29</var>(c) The commissioner must approve, deny, or modify each district's request for a <br/>
<a id="pl.65.30"></a><var>65.30</var>referendum levy on a different day within 60 days of receiving the request from a district.<br/>
<a id="pl.65.31"></a><var>65.31</var>    Subd. 13. <b>Referendum conversion allowance.</b> A school district that received <br/>
<a id="pl.65.32"></a><var>65.32</var>supplemental or transition revenue in fiscal year 2002 may convert its supplemental <br/>
<a id="pl.65.33"></a><var>65.33</var>revenue conversion allowance and transition revenue conversion allowance to additional <br/>
<a id="pl.65.34"></a><var>65.34</var>referendum allowance under subdivision 1 for fiscal year 2003 and thereafter. A majority <br/>
<a id="pl.65.35"></a><var>65.35</var>of the school board must approve the conversion at a public meeting before November 1, <br/>
<a id="pl.65.36"></a><var>65.36</var>2001. For a district with other referendum authority, the referendum conversion allowance <br/>
<a id="pl.66.1"></a><var>66.1</var>approved by the board continues until the portion of the district's other referendum <br/>
<a id="pl.66.2"></a><var>66.2</var>authority with the earliest expiration date after June 30, 2006, expires. For a district <br/>
<a id="pl.66.3"></a><var>66.3</var>with no other referendum authority, the referendum conversion allowance approved by <br/>
<a id="pl.66.4"></a><var>66.4</var>the board continues until June 30, 2012.<br/>
<a id="pl.66.5"></a><var>66.5</var><b>EFFECTIVE DATE.</b>This section is effective for revenue for fiscal year 2015 <br/>
<a id="pl.66.6"></a><var>66.6</var>and later.<br/>
<br/>
<a id="bill.3.11.0"></a><a id="pl.66.7"></a><var>66.7</var>    Sec. 11. <b>DIRECTION TO THE COMMISSIONER.</b><br/>
<a id="pl.66.8"></a><var>66.8</var>In computing the reduction to a school district's referendum allowance, the <br/>
<a id="pl.66.9"></a><var>66.9</var>commissioner of education must first reduce a district's referendum allowance with the <br/>
<a id="pl.66.10"></a><var>66.10</var>earliest expiration date and then, if necessary, reduce additional referendum authority <br/>
<a id="pl.66.11"></a><var>66.11</var>allowances based on the next earliest expiration date.<br/>
<br/>
<a id="bill.3.12.0"></a><a id="pl.66.12"></a><var>66.12</var>    Sec. 12. <b>OPERATING REFERENDUM FREEZE, FISCAL YEAR 2015.</b><br/>
<a id="pl.66.13"></a><var>66.13</var>(a) Notwithstanding Minnesota Statutes, section 126C.17, subdivision 9, a school <br/>
<a id="pl.66.14"></a><var>66.14</var>district may not authorize an increase to its operating referendum in fiscal year 2015. A <br/>
<a id="pl.66.15"></a><var>66.15</var>school district may reauthorize an operating referendum that is expiring in fiscal year <br/>
<a id="pl.66.16"></a><var>66.16</var>2015. If a school district asks the voters to reauthorize operating referendum authority <br/>
<a id="pl.66.17"></a><var>66.17</var>that is expiring in fiscal year 2015, it may request a reauthorization of that expiring <br/>
<a id="pl.66.18"></a><var>66.18</var>authority minus $300.<br/>
<a id="pl.66.19"></a><var>66.19</var>(b) Paragraph (a) shall not apply to a district if, prior to April 22, 2013, the board <br/>
<a id="pl.66.20"></a><var>66.20</var>adopted a resolution to conduct a referendum in 2013.<br/>
<br/>
<a id="bill.3.13.0"></a><a id="pl.66.21"></a><var>66.21</var>    Sec. 13. <b>CURRENT YEAR AID PERCENTAGE; APPROPRIATION </b><br/>
<a id="pl.66.22"></a><var>66.22</var><b>ADJUSTMENTS.</b><br/>
<a id="pl.66.23"></a><var>66.23</var>(a) Notwithstanding Minnesota Statutes, section 127A.45, subdivision 2, paragraph <br/>
<a id="pl.66.24"></a><var>66.24</var>(d), in fiscal year 2014 and later, the commissioner of education shall reduce the current <br/>
<a id="pl.66.25"></a><var>66.25</var>year aid payment percentage under Minnesota Statutes, section 127A.45, subdivision <br/>
<a id="pl.66.26"></a><var>66.26</var>2, paragraph (d), by 0.2.<br/>
<a id="pl.66.27"></a><var>66.27</var>(b) For fiscal year 2014 and later, the commissioner of education shall adjust all <br/>
<a id="pl.66.28"></a><var>66.28</var>appropriations in 2013 House File No. 630, if enacted, that are calculated based on a <br/>
<a id="pl.66.29"></a><var>66.29</var>current year aid payment percentage and a final adjustment payment to reflect the current <br/>
<a id="pl.66.30"></a><var>66.30</var>year aid payment percentage, under Minnesota Statutes, section 127A.45, subdivision 2, <br/>
<a id="pl.66.31"></a><var>66.31</var>paragraph (d), as modified by paragraph (a).<br/>
<br/>
<a id="bill.3.14.0"></a><a id="pl.66.32"></a><var>66.32</var>    Sec. 14. <b>APPROPRIATIONS.</b><br/>
<a id="pl.67.1"></a><var>67.1</var>    Subdivision 1. <b>Department of Education.</b> The sums indicated in this section are <br/>
<a id="pl.67.2"></a><var>67.2</var>appropriated from the general fund to the Department of Education for the fiscal years <br/>
<a id="pl.67.3"></a><var>67.3</var>designated and are in addition to any amounts appropriated in any other bill for the same <br/>
<a id="pl.67.4"></a><var>67.4</var>purpose.<br/>
<a id="pl.67.5"></a><var>67.5</var>    Subd. 2. <b>General education aid.</b> For general education aid under Minnesota <br/>
<a id="pl.67.6"></a><var>67.6</var>Statutes, section 126C.13, subdivision 4:<br/>
<table>
<col width="50px"/>
<col width="29px"/>
<col width="16px"/>
<col width="105px"/>
<col width="42px"/>
<col width="42px"/>
<tr>
<td><a id="pl.67.7"></a><var>67.7</var><br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">36,460,000<br/>
</td>
<td align="right">.....<br/>
</td>
<td align="right">2014<br/>
</td>
</tr>
<tr>
<td><a id="pl.67.8"></a><var>67.8</var><br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">54,765,000<br/>
</td>
<td align="right">.....<br/>
</td>
<td align="right">2015<br/>
</td>
</tr>
</table><a id="pl.67.9"></a><var>67.9</var>The 2014 appropriation includes $0 for fiscal year 2013 and $36,460,000 for fiscal <br/>
<a id="pl.67.10"></a><var>67.10</var>year 2014.<br/>
<a id="pl.67.11"></a><var>67.11</var>The 2015 appropriation includes $12,185,000 for fiscal year 2014 and $42,580,000 <br/>
<a id="pl.67.12"></a><var>67.12</var>for fiscal year 2015.<br/>
<br/>
<a id="bill.4.0.0"></a>

<a id="bill.4.1.0"></a><a id="pl.67.15"></a><var>67.15</var>    Section 1. Minnesota Statutes 2012, section 237.52, subdivision 3, is amended to read:<br/>
<a id="pl.67.16"></a><var>67.16</var>    Subd. 3. <b>Collection.</b> Every provider of services capable of originating a TRS call, <br/>
<a id="pl.67.17"></a><var>67.17</var>including cellular communications and other nonwire access services, in this state shall, <br/>
<a id="pl.67.18"></a><var>67.18</var>except as provided in subdivision 3a, collect the charges established by the commission <br/>
<a id="pl.67.19"></a><var>67.19</var>under subdivision 2 and transfer amounts collected to the commissioner of public <br/>
<a id="pl.67.20"></a><var>67.20</var>safety in the same manner as provided in section 
         <statute_ref>403.11, subdivision 1</statute_ref>, paragraph (d). <br/>
<a id="pl.67.21"></a><var>67.21</var>The commissioner of public safety must deposit the receipts in the fund established in <br/>
<a id="pl.67.22"></a><var>67.22</var>subdivision 1.<br/>
<a id="pl.67.23"></a><var>67.23</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2014.<br/>
<br/>
<a id="bill.4.2.0"></a><a id="pl.67.24"></a><var>67.24</var>    Sec. 2. Minnesota Statutes 2012, section 237.52, is amended by adding a subdivision <br/>
<a id="pl.67.25"></a><var>67.25</var>to read:<br/>
<a id="pl.67.26"></a><var>67.26</var>    Subd. 3a. <b>Fee for prepaid wireless telecommunications service.</b> The fee <br/>
<a id="pl.67.27"></a><var>67.27</var>established in subdivision 2 does not apply to prepaid wireless telecommunications <br/>
<a id="pl.67.28"></a><var>67.28</var>services as defined in section 403.02, subdivision 17b, which are instead subject to the <br/>
<a id="pl.67.29"></a><var>67.29</var>prepaid wireless telecommunications access Minnesota fee established in section 403.161, <br/>
<a id="pl.67.30"></a><var>67.30</var>subdivision 1, paragraph (b). Collection, remittance, and deposit of prepaid wireless <br/>
<a id="pl.67.31"></a><var>67.31</var>telecommunications access Minnesota fees are governed by sections 403.161 and 403.162.<br/>
<a id="pl.67.32"></a><var>67.32</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2014.<br/>
<br/>
<a id="bill.4.3.0"></a><a id="pl.68.1"></a><var>68.1</var>    Sec. 3. Minnesota Statutes 2012, section 270B.01, subdivision 8, is amended to read:<br/>
<a id="pl.68.2"></a><var>68.2</var>    Subd. 8. <b>Minnesota tax laws.</b> For purposes of this chapter only, unless expressly <br/>
<a id="pl.68.3"></a><var>68.3</var>stated otherwise, "Minnesota tax laws" means:<br/>
<a id="pl.68.4"></a><var>68.4</var>    (1) the taxes, refunds, and fees administered by or paid to the commissioner under <br/>
<a id="pl.68.5"></a><var>68.5</var>chapters 115B, 289A (except taxes imposed under sections 
         <statute_ref>298.01</statute_ref>, 
         <statute_ref>298.015</statute_ref>, and 
         <statute_ref>298.24</statute_ref>), <br/>
<a id="pl.68.6"></a><var>68.6</var>290, 290A, 291, 295, 297A, 297B, and 297H, and 403, or any similar Indian tribal tax <br/>
<a id="pl.68.7"></a><var>68.7</var>administered by the commissioner pursuant to any tax agreement between the state and <br/>
<a id="pl.68.8"></a><var>68.8</var>the Indian tribal government, and includes any laws for the assessment, collection, and <br/>
<a id="pl.68.9"></a><var>68.9</var>enforcement of those taxes, refunds, and fees; and<br/>
<a id="pl.68.10"></a><var>68.10</var>    (2) section 
         <statute_ref>273.1315</statute_ref>.<br/>
<a id="pl.68.11"></a><var>68.11</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2014.<br/>
<br/>
<a id="bill.4.4.0"></a><a id="pl.68.12"></a><var>68.12</var>    Sec. 4. Minnesota Statutes 2012, section 270B.12, subdivision 4, is amended to read:<br/>
<a id="pl.68.13"></a><var>68.13</var>    Subd. 4. <b>Department of Public Safety.</b> The commissioner may disclose return <br/>
<a id="pl.68.14"></a><var>68.14</var>information to the Department of Public Safety for the purpose of and to the extent <br/>
<a id="pl.68.15"></a><var>68.15</var>necessary to administer section sections
<statute_ref>270C.725</statute_ref> and 403.16 to 403.162.<br/>
<a id="pl.68.16"></a><var>68.16</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2014.<br/>
<br/>
<a id="bill.4.5.0"></a><a id="pl.68.17"></a><var>68.17</var>    Sec. 5. Minnesota Statutes 2012, section 270C.03, subdivision 1, is amended to read:<br/>
<a id="pl.68.18"></a><var>68.18</var>    Subdivision 1. <b>Powers and duties.</b> The commissioner shall have and exercise <br/>
<a id="pl.68.19"></a><var>68.19</var>the following powers and duties:<br/>
<a id="pl.68.20"></a><var>68.20</var>    (1) administer and enforce the assessment and collection of taxes;<br/>
<a id="pl.68.21"></a><var>68.21</var>    (2) make determinations, corrections, and assessments with respect to taxes, <br/>
<a id="pl.68.22"></a><var>68.22</var>including interest, additions to taxes, and assessable penalties;<br/>
<a id="pl.68.23"></a><var>68.23</var>    (3) use statistical or other sampling techniques consistent with generally accepted <br/>
<a id="pl.68.24"></a><var>68.24</var>auditing standards in examining returns or records and making assessments;<br/>
<a id="pl.68.25"></a><var>68.25</var>    (4) investigate the tax laws of other states and countries, and formulate and submit <br/>
<a id="pl.68.26"></a><var>68.26</var>to the legislature such legislation as the commissioner may deem expedient to prevent <br/>
<a id="pl.68.27"></a><var>68.27</var>evasions of state revenue laws and to secure just and equal taxation and improvement in <br/>
<a id="pl.68.28"></a><var>68.28</var>the system of state revenue laws;<br/>
<a id="pl.68.29"></a><var>68.29</var>    (5) consult and confer with the governor upon the subject of taxation, the <br/>
<a id="pl.68.30"></a><var>68.30</var>administration of the laws in regard thereto, and the progress of the work of the <br/>
<a id="pl.68.31"></a><var>68.31</var>department, and furnish the governor, from time to time, such assistance and information <br/>
<a id="pl.68.32"></a><var>68.32</var>as the governor may require relating to tax matters;<br/>
<a id="pl.69.1"></a><var>69.1</var>    (6) execute and administer any agreement with the secretary of the treasury or the <br/>
<a id="pl.69.2"></a><var>69.2</var>Bureau of Alcohol, Tobacco, Firearms and Explosives in the Department of Justice of the <br/>
<a id="pl.69.3"></a><var>69.3</var>United States or a representative of another state regarding the exchange of information <br/>
<a id="pl.69.4"></a><var>69.4</var>and administration of the state revenue laws;<br/>
<a id="pl.69.5"></a><var>69.5</var>    (7) require town, city, county, and other public officers to report information as to the <br/>
<a id="pl.69.6"></a><var>69.6</var>collection of taxes received from licenses and other sources, and such other information <br/>
<a id="pl.69.7"></a><var>69.7</var>as may be needful in the work of the commissioner, in such form as the commissioner <br/>
<a id="pl.69.8"></a><var>69.8</var>may prescribe;<br/>
<a id="pl.69.9"></a><var>69.9</var>    (8) authorize the use of unmarked motor vehicles to conduct seizures or criminal <br/>
<a id="pl.69.10"></a><var>69.10</var>investigations pursuant to the commissioner's authority;<br/>
<a id="pl.69.11"></a><var>69.11</var>    (9) authorize the participation in audits performed by the Multistate Tax Commission. <br/>
<a id="pl.69.12"></a><var>69.12</var>For the purposes of chapter 270B, the Multistate Tax Commission will be considered to be <br/>
<a id="pl.69.13"></a><var>69.13</var>a state for the purposes of auditing corporate sales, excise, and income tax returns.<br/>
<a id="pl.69.14"></a><var>69.14</var>    (10) maintain toll-free telephone access for taxpayer assistance for calls from <br/>
<a id="pl.69.15"></a><var>69.15</var>locations within the state; and<br/>
<a id="pl.69.16"></a><var>69.16</var>    (10) (11) exercise other powers and authority and perform other duties required of or <br/>
<a id="pl.69.17"></a><var>69.17</var>imposed upon the commissioner by law.<br/>
<a id="pl.69.18"></a><var>69.18</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.6.0"></a><a id="pl.69.19"></a><var>69.19</var>    Sec. 6. Minnesota Statutes 2012, section 270C.56, subdivision 1, is amended to read:<br/>
<a id="pl.69.20"></a><var>69.20</var>    Subdivision 1. <b>Liability imposed.</b> A person who, either singly or jointly with <br/>
<a id="pl.69.21"></a><var>69.21</var>others, has the control of, supervision of, or responsibility for filing returns or reports, <br/>
<a id="pl.69.22"></a><var>69.22</var>paying taxes, or collecting or withholding and remitting taxes and who fails to do so, or a <br/>
<a id="pl.69.23"></a><var>69.23</var>person who is liable under any other law, is liable for the payment of taxes arising under <br/>
<a id="pl.69.24"></a><var>69.24</var>chapters 295, 296A, 297A, 297F, and 297G, or sections 
         <statute_ref>256.9658, 290.92,</statute_ref> and 
         <statute_ref>297E.02</statute_ref>, <br/>
<a id="pl.69.25"></a><var>69.25</var>and the applicable penalties and interest on those taxes.<br/>
<a id="pl.69.26"></a><var>69.26</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.4.7.0"></a><a id="pl.69.27"></a><var>69.27</var>    Sec. 7. Minnesota Statutes 2012, section 287.05, is amended by adding a subdivision <br/>
<a id="pl.69.28"></a><var>69.28</var>to read:<br/>
<a id="pl.69.29"></a><var>69.29</var>    Subd. 10. <b>Hennepin and Ramsey Counties.</b> For properties located in Hennepin <br/>
<a id="pl.69.30"></a><var>69.30</var>and Ramsey Counties, the county may impose an additional mortgage registry tax as <br/>
<a id="pl.69.31"></a><var>69.31</var>defined in sections 383A.80 and 383B.80.<br/>
<a id="pl.69.32"></a><var>69.32</var><b>EFFECTIVE DATE.</b>This section is effective for all deeds and mortgages <br/>
<a id="pl.69.33"></a><var>69.33</var>acknowledged on or after July 1, 2013.<br/>
<br/>
<a id="bill.4.8.0"></a><a id="pl.70.1"></a><var>70.1</var>    Sec. 8. <b>[287.40] HENNEPIN AND RAMSEY COUNTIES.</b><br/>
<a id="pl.70.2"></a><var>70.2</var>    For properties located in Hennepin and Ramsey Counties, the county may impose an <br/>
<a id="pl.70.3"></a><var>70.3</var>additional deed tax as defined in sections 383A.80 and 383B.80.<br/>
<a id="pl.70.4"></a><var>70.4</var><b>EFFECTIVE DATE.</b>This section is effective for all deeds and mortgages <br/>
<a id="pl.70.5"></a><var>70.5</var>acknowledged on or after July 1, 2013.<br/>
<br/>
<a id="bill.4.9.0"></a><a id="pl.70.6"></a><var>70.6</var>    Sec. 9. <b>[295.61] SPORTS MEMORABILIA GROSS RECEIPTS TAX.</b><br/>
<a id="pl.70.7"></a><var>70.7</var>    Subdivision 1. <b>Definitions.</b> (a) For purposes of this section, the following terms <br/>
<a id="pl.70.8"></a><var>70.8</var>have the meanings given, unless the context clearly indicates otherwise.<br/>
<a id="pl.70.9"></a><var>70.9</var>(b) "Commissioner" means the commissioner of revenue.<br/>
<a id="pl.70.10"></a><var>70.10</var>(c) "Sale" means a transfer of title or possession of tangible personal property, <br/>
<a id="pl.70.11"></a><var>70.11</var>whether absolutely or conditionally.<br/>
<a id="pl.70.12"></a><var>70.12</var>(d) "Sports memorabilia" means items available for sale to the public that are sold <br/>
<a id="pl.70.13"></a><var>70.13</var>under a license granted by any professional or Collegiate Division I sports league or <br/>
<a id="pl.70.14"></a><var>70.14</var>association, a team that is a franchise of a professional sports league or association, or <br/>
<a id="pl.70.15"></a><var>70.15</var>a team that is an affiliate or subsidiary of a professional sports league or association, <br/>
<a id="pl.70.16"></a><var>70.16</var>including:<br/>
<a id="pl.70.17"></a><var>70.17</var>(1) one-of-a-kind items related to sports figures, teams, or events;<br/>
<a id="pl.70.18"></a><var>70.18</var>(2) trading cards;<br/>
<a id="pl.70.19"></a><var>70.19</var>(3) photographs;<br/>
<a id="pl.70.20"></a><var>70.20</var>(4) clothing;<br/>
<a id="pl.70.21"></a><var>70.21</var>(5) sports event licensed items;<br/>
<a id="pl.70.22"></a><var>70.22</var>(6) sports equipment; and<br/>
<a id="pl.70.23"></a><var>70.23</var>(7) similar items, but not food or beverage items.<br/>
<a id="pl.70.24"></a><var>70.24</var>(e) "Wholesale" or "sale at wholesale" means a sale to a retailer, as defined in <br/>
<a id="pl.70.25"></a><var>70.25</var>section 297A.61, subdivision 9, for the purpose of reselling the property to a third party. <br/>
<a id="pl.70.26"></a><var>70.26</var>Wholesale does not mean a sale to a wholesaler.<br/>
<a id="pl.70.27"></a><var>70.27</var>(f) "Wholesaler" means any person making wholesale sales of sports memorabilia <br/>
<a id="pl.70.28"></a><var>70.28</var>to purchasers in the state.<br/>
<a id="pl.70.29"></a><var>70.29</var>    Subd. 2. <b>Imposition.</b> A tax is imposed on each sale at wholesale of sports <br/>
<a id="pl.70.30"></a><var>70.30</var>memorabilia equal to 13 percent of the gross revenues from the sale.<br/>
<a id="pl.70.31"></a><var>70.31</var>    Subd. 3. <b>Quarterly returns.</b>  Each wholesaler must file quarterly returns and make <br/>
<a id="pl.70.32"></a><var>70.32</var>payments by April 18 for the quarter ending March 31; July 18 for the quarter ending June <br/>
<a id="pl.70.33"></a><var>70.33</var>30; October 18 for the quarter ending September 30; and January 18 of the following <br/>
<a id="pl.70.34"></a><var>70.34</var>calendar year for the quarter ending December 31.<br/>
<a id="pl.71.1"></a><var>71.1</var>    Subd. 4. <b>Compensating use tax.</b> If the tax is not paid under subdivision 2, a <br/>
<a id="pl.71.2"></a><var>71.2</var>compensating tax is imposed on a retailer or possessor for sale of sports memorabilia in <br/>
<a id="pl.71.3"></a><var>71.3</var>the state. The rate of tax equals the rate under subdivision 2 and must be paid by the <br/>
<a id="pl.71.4"></a><var>71.4</var>retailer or possessor for sale of the items.<br/>
<a id="pl.71.5"></a><var>71.5</var>    Subd. 5. <b>Allocation for youth sports.</b> Five percent of the revenue collected <br/>
<a id="pl.71.6"></a><var>71.6</var>under subdivision 2 is appropriated to the commissioner for grants to counties for youth <br/>
<a id="pl.71.7"></a><var>71.7</var>and amateur sports.<br/>
<a id="pl.71.8"></a><var>71.8</var>    Subd. 6. <b>Administrative provisions.</b> Unless specifically provided otherwise by this <br/>
<a id="pl.71.9"></a><var>71.9</var>section, the relevant audit, assessment, refund, penalty, interest, enforcement, collection <br/>
<a id="pl.71.10"></a><var>71.10</var>remedies, appeal, and administrative provisions of chapters 270C and 289A apply to <br/>
<a id="pl.71.11"></a><var>71.11</var>taxes imposed under this section.<br/>
<a id="pl.71.12"></a><var>71.12</var>    Subd. 7. <b>Disposition of revenues.</b> The commissioner shall deposit the revenues <br/>
<a id="pl.71.13"></a><var>71.13</var>from the tax, less the amount allocated in under subdivision 5, in the general fund.<br/>
<a id="pl.71.14"></a><var>71.14</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.71.15"></a><var>71.15</var>June 30, 2013.<br/>
<br/>
<a id="bill.4.10.0"></a><a id="pl.71.16"></a><var>71.16</var>    Sec. 10. Minnesota Statutes 2012, section 296A.09, subdivision 2, is amended to read:<br/>
<a id="pl.71.17"></a><var>71.17</var>    Subd. 2. <b>Jet fuel and </b><b>special fuel tax imposed.</b> There is imposed an excise tax <br/>
<a id="pl.71.18"></a><var>71.18</var>of the same rate 15 cents per gallon as the aviation gasoline on all jet fuel or special <br/>
<a id="pl.71.19"></a><var>71.19</var>fuel received, sold, stored, or withdrawn from storage in this state, for use as substitutes <br/>
<a id="pl.71.20"></a><var>71.20</var>for aviation gasoline and not otherwise taxed as gasoline. Jet fuel is defined in section <br/>
<statute_ref><a id="pl.71.21"></a><var>71.21</var>296A.01, subdivision 8
         </statute_ref>.<br/>
<a id="pl.71.22"></a><var>71.22</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2014, and applied to sales <br/>
<a id="pl.71.23"></a><var>71.23</var>and purchases made on or after that date.<br/>
<br/>
<a id="bill.4.11.0"></a><a id="pl.71.24"></a><var>71.24</var>    Sec. 11. Minnesota Statutes 2012, section 296A.17, subdivision 3, is amended to read:<br/>
<a id="pl.71.25"></a><var>71.25</var>    Subd. 3. <b>Refund on graduated basis.</b> Any person who has directly or indirectly <br/>
<a id="pl.71.26"></a><var>71.26</var>paid the excise tax on aviation gasoline or special fuel for aircraft use provided for by this <br/>
<a id="pl.71.27"></a><var>71.27</var>chapter under subdivision 2, and the airflight property tax under section 270.72, shall, as <br/>
<a id="pl.71.28"></a><var>71.28</var>to all such aviation gasoline and special fuel received, stored, or withdrawn from storage <br/>
<a id="pl.71.29"></a><var>71.29</var>by the person in this state in any calendar year and not sold or otherwise disposed of to <br/>
<a id="pl.71.30"></a><var>71.30</var>others, or intended for sale or other disposition to others, on which such tax has been so <br/>
<a id="pl.71.31"></a><var>71.31</var>paid, be entitled to the following graduated reductions in such tax for that calendar year, to <br/>
<a id="pl.71.32"></a><var>71.32</var>be obtained by means of the following refunds:<br/>
<a id="pl.72.1"></a><var>72.1</var>(1) on each gallon of such aviation gasoline or special fuel up to 50,000 gallons, all <br/>
<a id="pl.72.2"></a><var>72.2</var>but five cents per gallon;<br/>
<a id="pl.72.3"></a><var>72.3</var>(2) on each gallon of such aviation gasoline or special fuel above 50,000 gallons and <br/>
<a id="pl.72.4"></a><var>72.4</var>not more than 150,000 gallons, all but two cents per gallon;<br/>
<a id="pl.72.5"></a><var>72.5</var>(3) on each gallon of such aviation gasoline or special fuel above 150,000 gallons <br/>
<a id="pl.72.6"></a><var>72.6</var>and not more than 200,000 gallons, all but one cent per gallon;<br/>
<a id="pl.72.7"></a><var>72.7</var>(4) on each gallon of such aviation gasoline or special fuel above 200,000, all but <br/>
<a id="pl.72.8"></a><var>72.8</var>one-half cent per gallon.<br/>
<a id="pl.72.9"></a><var>72.9</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2014, and applied to sales <br/>
<a id="pl.72.10"></a><var>72.10</var>and purchases made on or after that date.<br/>
<br/>
<a id="bill.4.12.0"></a><a id="pl.72.11"></a><var>72.11</var>    Sec. 12. Minnesota Statutes 2012, section 297A.82, subdivision 4, is amended to read:<br/>
<a id="pl.72.12"></a><var>72.12</var>    Subd. 4. <b>Exemptions.</b> (a) The following transactions are exempt from the tax <br/>
<a id="pl.72.13"></a><var>72.13</var>imposed in this chapter to the extent provided.<br/>
<a id="pl.72.14"></a><var>72.14</var>(b) The purchase or use of aircraft previously registered in Minnesota by a <br/>
<a id="pl.72.15"></a><var>72.15</var>corporation or partnership is exempt if the transfer constitutes a transfer within the <br/>
<a id="pl.72.16"></a><var>72.16</var>meaning of section 351 or 721 of the Internal Revenue Code.<br/>
<a id="pl.72.17"></a><var>72.17</var>(c) The sale to or purchase, storage, use, or consumption by a licensed aircraft dealer <br/>
<a id="pl.72.18"></a><var>72.18</var>of an aircraft for which a commercial use permit has been issued pursuant to section <br/>
<statute_ref><a id="pl.72.19"></a><var>72.19</var>360.654
         </statute_ref> is exempt, if the aircraft is resold while the permit is in effect.<br/>
<a id="pl.72.20"></a><var>72.20</var>(d) Air flight equipment when sold to, or purchased, stored, used, or consumed by <br/>
<a id="pl.72.21"></a><var>72.21</var>airline companies, as defined in section 
         <statute_ref>270.071, subdivision 4</statute_ref>, is exempt. For purposes <br/>
<a id="pl.72.22"></a><var>72.22</var>of this subdivision, "air flight equipment" includes airplanes and parts necessary for the <br/>
<a id="pl.72.23"></a><var>72.23</var>repair and maintenance of such air flight equipment, and flight simulators, but does <br/>
<a id="pl.72.24"></a><var>72.24</var>not include airplanes with a gross weight of less than 30,000 pounds that are used on <br/>
<a id="pl.72.25"></a><var>72.25</var>intermittent or irregularly timed flights.<br/>
<a id="pl.72.26"></a><var>72.26</var>(e) Sales of, and the storage, distribution, use, or consumption of aircraft, as defined <br/>
<a id="pl.72.27"></a><var>72.27</var>in section 
         <statute_ref>360.511</statute_ref> and approved by the Federal Aviation Administration, and which the <br/>
<a id="pl.72.28"></a><var>72.28</var>seller delivers to a purchaser outside Minnesota or which, without intermediate use, is <br/>
<a id="pl.72.29"></a><var>72.29</var>shipped or transported outside Minnesota by the purchaser are exempt, but only if the <br/>
<a id="pl.72.30"></a><var>72.30</var>purchaser is not a resident of Minnesota and provided that the aircraft is not thereafter <br/>
<a id="pl.72.31"></a><var>72.31</var>returned to a point within Minnesota, except in the course of interstate commerce or <br/>
<a id="pl.72.32"></a><var>72.32</var>isolated and occasional use, and will be registered in another state or country upon its <br/>
<a id="pl.72.33"></a><var>72.33</var>removal from Minnesota. This exemption applies even if the purchaser takes possession of <br/>
<a id="pl.72.34"></a><var>72.34</var>the aircraft in Minnesota and uses the aircraft in the state exclusively for training purposes <br/>
<a id="pl.72.35"></a><var>72.35</var>for a period not to exceed ten days prior to removing the aircraft from this state.<br/>
<a id="pl.73.1"></a><var>73.1</var>(f) The sale or purchase of the following items that relate to aircraft operated under <br/>
<a id="pl.73.2"></a><var>73.2</var>Federal Aviation Regulations, Parts 91 and 135, and associated installation charges: <br/>
<a id="pl.73.3"></a><var>73.3</var>equipment and parts necessary for repair and maintenance of aircraft; and equipment <br/>
<a id="pl.73.4"></a><var>73.4</var>and parts to upgrade and improve aircraft.<br/>
<a id="pl.73.5"></a><var>73.5</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2014, and applied to sales <br/>
<a id="pl.73.6"></a><var>73.6</var>and purchases made on or after that date.<br/>
<br/>
<a id="bill.4.13.0"></a><a id="pl.73.7"></a><var>73.7</var>    Sec. 13. Minnesota Statutes 2012, section 297A.82, is amended by adding a <br/>
<a id="pl.73.8"></a><var>73.8</var>subdivision to read:<br/>
<a id="pl.73.9"></a><var>73.9</var>    Subd. 4a. <b>Deposit in state airports fund.</b>  Tax revenue collected from the sale or <br/>
<a id="pl.73.10"></a><var>73.10</var>purchase of an aircraft taxable under this chapter must be deposited in the state airports <br/>
<a id="pl.73.11"></a><var>73.11</var>fund, established in section 360.017.<br/>
<a id="pl.73.12"></a><var>73.12</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2014, and applied to sales <br/>
<a id="pl.73.13"></a><var>73.13</var>and purchases made on or after that date.<br/>
<br/>
<a id="bill.4.14.0"></a><a id="pl.73.14"></a><var>73.14</var>    Sec. 14. Minnesota Statutes 2012, section 297E.02, subdivision 1, is amended to read:<br/>
<a id="pl.73.15"></a><var>73.15</var>    Subdivision 1. <b>Imposition.</b> (a) A tax is imposed on all lawful gambling other than <br/>
<a id="pl.73.16"></a><var>73.16</var>(1) paper or electronic pull-tab deals or games; (2) tipboard deals or games; (3) electronic <br/>
<a id="pl.73.17"></a><var>73.17</var>linked bingo; and (4) items listed in section 
         <statute_ref>297E.01, subdivision 8</statute_ref>, clauses (4) and (5), at <br/>
<a id="pl.73.18"></a><var>73.18</var>the rate of 8.5 percent on the gross receipts as defined in section 
         <statute_ref>297E.01, subdivision 8</statute_ref>, <br/>
<a id="pl.73.19"></a><var>73.19</var>less prizes actually paid.<br/>
<a id="pl.73.20"></a><var>73.20</var>(b) A tax is imposed on the conduct of paper pull-tabs, at the rate of 9 percent on <br/>
<a id="pl.73.21"></a><var>73.21</var>the gross receipts as defined in section 297E.01, subdivision 8, less prizes actually paid. <br/>
<a id="pl.73.22"></a><var>73.22</var>The tax imposed under this paragraph applies only to an organization that conducts lawful <br/>
<a id="pl.73.23"></a><var>73.23</var>gambling in a location where at least 50 percent of its annual gross receipts are received <br/>
<a id="pl.73.24"></a><var>73.24</var>from paper bingo as of January 1, 2013.<br/>
<a id="pl.73.25"></a><var>73.25</var>(c) The tax imposed by this subdivision is in lieu of the tax imposed by section <br/>
<statute_ref><a id="pl.73.26"></a><var>73.26</var>297A.62
         </statute_ref> and all local taxes and license fees except a fee authorized under section 
         <statute_ref>349.16, <br/>
<a id="pl.73.27"></a><var>73.27</var>subdivision 8
         </statute_ref>, or a tax authorized under subdivision 5.<br/>
<a id="pl.73.28"></a><var>73.28</var>(d) The tax imposed under this subdivision is payable by the organization or party <br/>
<a id="pl.73.29"></a><var>73.29</var>conducting, directly or indirectly, the gambling.<br/>
<a id="pl.73.30"></a><var>73.30</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.4.15.0"></a><a id="pl.73.31"></a><var>73.31</var>    Sec. 15. Minnesota Statutes 2012, section 297E.02, subdivision 6, is amended to read:<br/>
<a id="pl.74.1"></a><var>74.1</var>    Subd. 6. <b>Combined net receipts tax.</b> (a) In addition to the taxes imposed under <br/>
<a id="pl.74.2"></a><var>74.2</var>subdivision 1, a tax is imposed on the combined receipts of the organization. As used in <br/>
<a id="pl.74.3"></a><var>74.3</var>this section, "combined net receipts" is the sum of the organization's gross receipts from <br/>
<a id="pl.74.4"></a><var>74.4</var>lawful gambling less gross receipts directly derived from the conduct of paper bingo, <br/>
<a id="pl.74.5"></a><var>74.5</var>raffles, and paddle wheels, as defined in section 
         <statute_ref>297E.01, subdivision 8</statute_ref>, and less the net <br/>
<a id="pl.74.6"></a><var>74.6</var>prizes actually paid, other than prizes actually paid for paper bingo, raffles, and paddle <br/>
<a id="pl.74.7"></a><var>74.7</var>wheels, for the fiscal year. The combined net receipts of an organization are subject to a <br/>
<a id="pl.74.8"></a><var>74.8</var>tax computed according to the following schedule:<br/>
<table>
<col width="50px"/>
<col width="5"/>
<col width="20"/>
<col width="5"/>
<col width="27.5"/>
<col width="7.5"/>
<tr>
<td><a id="pl.74.9"></a><var>74.9</var><br/>
<a id="pl.74.10"></a><var>74.10</var><br/>
<a id="pl.74.11"></a><var>74.11</var><br/>
</td>
<td align="left"></td>
<td align="left">If the combined net <br/>
                  		receipts for the fiscal year <br/>
                  		are:<br/>
</td>
<td align="left"></td>
<td align="left" valign="top">The tax is:<br/>
</td>
<td align="left" valign="top"></td>
</tr>
<tr>
<td><a id="pl.74.12"></a><var>74.12</var><br/>
</td>
<td align="left"></td>
<td align="left" valign="top">Not over $87,500<br/>
</td>
<td align="left"></td>
<td align="left" valign="top">nine percent<br/>
</td>
<td align="left"></td>
</tr>
<tr>
<td><a id="pl.74.13"></a><var>74.13</var><br/>
<a id="pl.74.14"></a><var>74.14</var><br/>
</td>
<td align="left"></td>
<td align="left" valign="top">Over $87,500, but not over <br/>
                  		$122,500<br/>
</td>
<td align="left"></td>
<td align="left" valign="top">$7,875 plus 18 percent of the amount <br/>
                  		over $87,500, but not over $122,500<br/>
</td>
<td align="left"></td>
</tr>
<tr>
<td><a id="pl.74.15"></a><var>74.15</var><br/>
<a id="pl.74.16"></a><var>74.16</var><br/>
</td>
<td align="left"></td>
<td align="left" valign="top">Over $122,500, but not <br/>
                  		over $157,500<br/>
</td>
<td align="left"></td>
<td align="left" valign="top">$14,175 plus 27 percent of the amount <br/>
                  		over $122,500, but not over $157,500<br/>
</td>
<td align="left"></td>
</tr>
<tr>
<td><a id="pl.74.17"></a><var>74.17</var><br/>
<a id="pl.74.18"></a><var>74.18</var><br/>
</td>
<td align="left"></td>
<td align="left" valign="top">Over $157,500<br/>
</td>
<td align="left"></td>
<td align="left" valign="top">$23,625 plus 36 percent of the <br/>
                  		amount over $157,500<br/>
</td>
<td align="left"></td>
</tr>
</table><a id="pl.74.19"></a><var>74.19</var>(b) On or before April 1, 2016, the commissioner shall estimate the total amount of <br/>
<a id="pl.74.20"></a><var>74.20</var>revenue, including interest and penalties, that will be collected for fiscal year 2016 from <br/>
<a id="pl.74.21"></a><var>74.21</var>taxes imposed under this chapter. If the amount estimated by the commissioner equals <br/>
<a id="pl.74.22"></a><var>74.22</var>or exceeds $94,800,000, the commissioner shall certify that effective July 1, 2016, the <br/>
<a id="pl.74.23"></a><var>74.23</var>rates under this paragraph apply in lieu of the rates under paragraph (a) and shall publish a <br/>
<a id="pl.74.24"></a><var>74.24</var>notice to that effect in the State Register and notify each taxpayer by June 1, 2016. If the <br/>
<a id="pl.74.25"></a><var>74.25</var>rates under this section apply, the combined net receipts of an organization are subject to a <br/>
<a id="pl.74.26"></a><var>74.26</var>tax computed according to the following schedule:<br/>
<table>
<col width="50px"/>
<col width="5"/>
<col width="20"/>
<col width="5"/>
<col width="27.5"/>
<col width="7.5"/>
<tr>
<td><a id="pl.74.27"></a><var>74.27</var><br/>
<a id="pl.74.28"></a><var>74.28</var><br/>
<a id="pl.74.29"></a><var>74.29</var><br/>
</td>
<td></td>
<td>If the combined net <br/>
                  		receipts for the fiscal year <br/>
                  		are:<br/>
</td>
<td></td>
<td valign="top">The tax is:<br/>
</td>
<td valign="top"></td>
</tr>
<tr>
<td><a id="pl.74.30"></a><var>74.30</var><br/>
</td>
<td></td>
<td>Not over $87,500<br/>
</td>
<td></td>
<td>8.5 percent<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.74.31"></a><var>74.31</var><br/>
<a id="pl.74.32"></a><var>74.32</var><br/>
</td>
<td></td>
<td valign="top">Over $87,500, but not over <br/>
                  		$122,500<br/>
</td>
<td></td>
<td>$7,438 plus 17 percent of the amount <br/>
                  		over $87,500, but not over $122,500<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.74.33"></a><var>74.33</var><br/>
<a id="pl.74.34"></a><var>74.34</var><br/>
<a id="pl.74.35"></a><var>74.35</var><br/>
</td>
<td></td>
<td valign="top">Over $122,500, but not <br/>
                  		over $157,500<br/>
</td>
<td></td>
<td valign="top">$13,388 plus 25.5 percent of the <br/>
                  		amount over $122,500, but not over <br/>
                  		$157,500<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.74.36"></a><var>74.36</var><br/>
<a id="pl.74.37"></a><var>74.37</var><br/>
</td>
<td></td>
<td valign="top">Over $157,500<br/>
</td>
<td></td>
<td>$22,313 plus 34 percent of the <br/>
                  		amount over $157,500<br/>
</td>
<td></td>
</tr>
</table><a id="pl.74.38"></a><var>74.38</var>(c) Gross receipts derived from sports-themed tipboards are exempt from taxation <br/>
<a id="pl.74.39"></a><var>74.39</var>under this section. For purposes of this paragraph, a sports-themed tipboard means a <br/>
<a id="pl.74.40"></a><var>74.40</var>sports-themed tipboard as defined in section 
         <statute_ref>349.12, subdivision 34</statute_ref>, under which the <br/>
<a id="pl.74.41"></a><var>74.41</var>winning numbers are determined by the numerical outcome of a professional sporting event.<br/>
<a id="pl.75.1"></a><var>75.1</var>(d) If an organization conducts lawful gambling in a location where, as of January 1, <br/>
<a id="pl.75.2"></a><var>75.2</var>2013, at least 50 percent of its annual gross receipts are derived from paper bingo, the <br/>
<a id="pl.75.3"></a><var>75.3</var>organization is exempt from taxation under this subdivision with respect to its receipts <br/>
<a id="pl.75.4"></a><var>75.4</var>from paper pull-tabs.<br/>
<a id="pl.75.5"></a><var>75.5</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.4.16.0"></a><a id="pl.75.6"></a><var>75.6</var>    Sec. 16. Minnesota Statutes 2012, section 297F.01, is amended by adding a subdivision <br/>
<a id="pl.75.7"></a><var>75.7</var>to read:<br/>
<a id="pl.75.8"></a><var>75.8</var>    Subd. 9b. <b>Little cigar.</b> "Little cigar" means any roll for smoking made in whole or <br/>
<a id="pl.75.9"></a><var>75.9</var>in part of tobacco if the product is wrapped in a substance containing tobacco other than <br/>
<a id="pl.75.10"></a><var>75.10</var>natural leaf tobacco, uses an integrated cellulose acetate or other similar filter, and weighs <br/>
<a id="pl.75.11"></a><var>75.11</var>not more than 4-1/2 pounds per thousand.<br/>
<a id="pl.75.12"></a><var>75.12</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.4.17.0"></a><a id="pl.75.13"></a><var>75.13</var>    Sec. 17. Minnesota Statutes 2012, section 297F.01, is amended by adding a subdivision <br/>
<a id="pl.75.14"></a><var>75.14</var>to read:<br/>
<a id="pl.75.15"></a><var>75.15</var>    Subd. 10b. <b>Moist snuff.</b> "Moist snuff" means any finely cut, ground, or powdered <br/>
<a id="pl.75.16"></a><var>75.16</var>smokeless tobacco that is intended to be placed or dipped in the mouth.<br/>
<a id="pl.75.17"></a><var>75.17</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.4.18.0"></a><a id="pl.75.18"></a><var>75.18</var>    Sec. 18. Minnesota Statutes 2012, section 297F.01, is amended by adding a subdivision <br/>
<a id="pl.75.19"></a><var>75.19</var>to read:<br/>
<a id="pl.75.20"></a><var>75.20</var>    Subd. 13a. <b>Premium cigar.</b> "Premium cigar" means any cigar that is <br/>
<a id="pl.75.21"></a><var>75.21</var>hand-constructed and hand-rolled, has a wrapper that is made entirely from whole tobacco <br/>
<a id="pl.75.22"></a><var>75.22</var>leaf, has a filler and binder that is made entirely of tobacco, except for adhesives or other <br/>
<a id="pl.75.23"></a><var>75.23</var>materials used to maintain size, texture, or flavor, and has a wholesale price of no less <br/>
<a id="pl.75.24"></a><var>75.24</var>than $2.<br/>
<a id="pl.75.25"></a><var>75.25</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.4.19.0"></a><a id="pl.75.26"></a><var>75.26</var>    Sec. 19. Minnesota Statutes 2012, section 297F.01, subdivision 19, is amended to read:<br/>
<a id="pl.75.27"></a><var>75.27</var>    Subd. 19. <b>Tobacco products.</b> (a) "Tobacco products" means any product <br/>
<a id="pl.75.28"></a><var>75.28</var>containing, made, or derived from tobacco that is intended for human consumption, <br/>
<a id="pl.75.29"></a><var>75.29</var>whether chewed, smoked, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by <br/>
<a id="pl.75.30"></a><var>75.30</var>any other means, or any component, part, or accessory of a tobacco product, including, <br/>
<a id="pl.76.1"></a><var>76.1</var>but not limited to, cigars; little cigars; cheroots; stogies; periques; granulated, plug cut, <br/>
<a id="pl.76.2"></a><var>76.2</var>crimp cut, ready rubbed, and other smoking tobacco; snuff; snuff flour; cavendish; plug <br/>
<a id="pl.76.3"></a><var>76.3</var>and twist tobacco; fine-cut and other chewing tobacco; shorts; refuse scraps, clippings, <br/>
<a id="pl.76.4"></a><var>76.4</var>cuttings and sweepings of tobacco, and other kinds and forms of tobacco; but does not <br/>
<a id="pl.76.5"></a><var>76.5</var>include cigarettes as defined in this section. Tobacco products excludes any tobacco <br/>
<a id="pl.76.6"></a><var>76.6</var>product that has been approved by the United States Food and Drug Administration for <br/>
<a id="pl.76.7"></a><var>76.7</var>sale as a tobacco cessation product, as a tobacco dependence product, or for other medical <br/>
<a id="pl.76.8"></a><var>76.8</var>purposes, and is being marketed and sold solely for such an approved purpose.<br/>
<a id="pl.76.9"></a><var>76.9</var>(b) Except for the imposition of tax under section 297F.05, subdivisions 3 and 4, <br/>
<a id="pl.76.10"></a><var>76.10</var>tobacco products includes a premium cigar, as defined in subdivision 13a. <br/>
<a id="pl.76.11"></a><var>76.11</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.4.20.0"></a><a id="pl.76.12"></a><var>76.12</var>    Sec. 20. Minnesota Statutes 2012, section 297F.05, subdivision 1, is amended to read:<br/>
<a id="pl.76.13"></a><var>76.13</var>    Subdivision 1. <b>Rates; cigarettes.</b> A tax is imposed upon the sale of cigarettes in <br/>
<a id="pl.76.14"></a><var>76.14</var>this state, upon having cigarettes in possession in this state with intent to sell, upon any <br/>
<a id="pl.76.15"></a><var>76.15</var>person engaged in business as a distributor, and upon the use or storage by consumers, at <br/>
<a id="pl.76.16"></a><var>76.16</var>the following rates:<br/>
<a id="pl.76.17"></a><var>76.17</var>(1) on cigarettes weighing not more than three pounds per thousand, 24 108.5 mills, <br/>
<a id="pl.76.18"></a><var>76.18</var>or 10.85 cents, on each such cigarette; and<br/>
<a id="pl.76.19"></a><var>76.19</var>(2) on cigarettes weighing more than three pounds per thousand, 48 217 mills, or <br/>
<a id="pl.76.20"></a><var>76.20</var>21.7 cents, on each such cigarette.<br/>
<a id="pl.76.21"></a><var>76.21</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.4.21.0"></a><a id="pl.76.22"></a><var>76.22</var>    Sec. 21. Minnesota Statutes 2012, section 297F.05, is amended by adding a subdivision <br/>
<a id="pl.76.23"></a><var>76.23</var>to read:<br/>
<a id="pl.76.24"></a><var>76.24</var>    Subd. 1a. <b>Annual indexing.</b> (a) Each year the commissioner shall adjust the <br/>
<a id="pl.76.25"></a><var>76.25</var>tax rates under subdivision 1, including any adjustment made in prior years under this <br/>
<a id="pl.76.26"></a><var>76.26</var>subdivision, by multiplying the mill rates for the current calendar year by an adjustment <br/>
<a id="pl.76.27"></a><var>76.27</var>factor. The adjustment factor equals the in-lieu sales tax rate that applies to the following <br/>
<a id="pl.76.28"></a><var>76.28</var>calendar year divided by the in-lieu sales tax rate for the current calendar year. For <br/>
<a id="pl.76.29"></a><var>76.29</var>purposes of this subdivision, "in-lieu sales tax rate" means the tax rate established under <br/>
<a id="pl.76.30"></a><var>76.30</var>section 297F.25, subdivision 1, rounded to 1/100 of one cent per cigarette.<br/>
<a id="pl.76.31"></a><var>76.31</var>    (b) The commissioner shall publish the resulting rate by November 1 and the rate <br/>
<a id="pl.76.32"></a><var>76.32</var>applies to sales made on or after January 1 of the following year.<br/>
<a id="pl.77.1"></a><var>77.1</var>(c) The determination of the commissioner under this subdivision is not a rule and is <br/>
<a id="pl.77.2"></a><var>77.2</var>not subject to the Administrative Procedure Act in chapter 14.<br/>
<a id="pl.77.3"></a><var>77.3</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.4.22.0"></a><a id="pl.77.4"></a><var>77.4</var>    Sec. 22. Minnesota Statutes 2012, section 297F.05, subdivision 3, is amended to read:<br/>
<a id="pl.77.5"></a><var>77.5</var>    Subd. 3. <b>Rates; tobacco products.</b> (a) Except as provided in subdivision 3a, a tax is <br/>
<a id="pl.77.6"></a><var>77.6</var>imposed upon all tobacco products in this state and upon any person engaged in business <br/>
<a id="pl.77.7"></a><var>77.7</var>as a distributor, at the rate of 35 90 percent of the wholesale sales price of the tobacco <br/>
<a id="pl.77.8"></a><var>77.8</var>products. The tax is imposed at the time the distributor:<br/>
<a id="pl.77.9"></a><var>77.9</var>(1) brings, or causes to be brought, into this state from outside the state tobacco <br/>
<a id="pl.77.10"></a><var>77.10</var>products for sale;<br/>
<a id="pl.77.11"></a><var>77.11</var>(2) makes, manufactures, or fabricates tobacco products in this state for sale in <br/>
<a id="pl.77.12"></a><var>77.12</var>this state; or<br/>
<a id="pl.77.13"></a><var>77.13</var>(3) ships or transports tobacco products to retailers in this state, to be sold by those <br/>
<a id="pl.77.14"></a><var>77.14</var>retailers.<br/>
<a id="pl.77.15"></a><var>77.15</var>(b) Notwithstanding paragraph (a), a minimum tax equal to the rate imposed on a pack <br/>
<a id="pl.77.16"></a><var>77.16</var>of 20 cigarettes weighing not more than three pounds per thousand, as established under <br/>
<a id="pl.77.17"></a><var>77.17</var>subdivision 1, and adjusted by subdivision 1a, is imposed on each container of moist snuff.<br/>
<a id="pl.77.18"></a><var>77.18</var>For purposes of this subdivision, a "container" means the smallest consumer-size can, <br/>
<a id="pl.77.19"></a><var>77.19</var>package, or other container that is marketed or packaged by the manufacturer, distributor, <br/>
<a id="pl.77.20"></a><var>77.20</var>or retailer for separate sale to a retail purchaser.<br/>
<a id="pl.77.21"></a><var>77.21</var>(c) Notwithstanding paragraph (a), for little cigars, the tax on each little cigar shall <br/>
<a id="pl.77.22"></a><var>77.22</var>be equal to the tax imposed per cigarette under subdivision 1, clause (1), and adjusted by <br/>
<a id="pl.77.23"></a><var>77.23</var>subdivision 1a, and any successor provision taxing cigarettes.<br/>
<a id="pl.77.24"></a><var>77.24</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013, except the minimum <br/>
<a id="pl.77.25"></a><var>77.25</var>tax under paragraph (b) is effective January 1, 2014.<br/>
<br/>
<a id="bill.4.23.0"></a><a id="pl.77.26"></a><var>77.26</var>    Sec. 23. Minnesota Statutes 2012, section 297F.05, is amended by adding a subdivision <br/>
<a id="pl.77.27"></a><var>77.27</var>to read:<br/>
<a id="pl.77.28"></a><var>77.28</var>    Subd. 3a. <b>Rates; tobacco.</b> (a) A tax is imposed upon all premium cigars in this state <br/>
<a id="pl.77.29"></a><var>77.29</var>and upon any person engaged in business as a tobacco product distributor, at the lesser of:<br/>
<a id="pl.77.30"></a><var>77.30</var>(1) the rate of 70 percent of the wholesale sales price of the premium cigars; or<br/>
<a id="pl.77.31"></a><var>77.31</var>(2) $3.50 per premium cigar.<br/>
<a id="pl.77.32"></a><var>77.32</var>(b) The tax imposed under paragraph (a) is imposed at the time the tobacco products <br/>
<a id="pl.77.33"></a><var>77.33</var>distributor:<br/>
<a id="pl.78.1"></a><var>78.1</var>(1) brings, or causes to be brought, into this state from outside the state premium <br/>
<a id="pl.78.2"></a><var>78.2</var>cigars for sale;<br/>
<a id="pl.78.3"></a><var>78.3</var>(2) makes, manufactures, or fabricates premium cigars in this state for sale in this <br/>
<a id="pl.78.4"></a><var>78.4</var>state; or<br/>
<a id="pl.78.5"></a><var>78.5</var>(3) ships or transports premium cigars to retailers in this state, to be sold by those <br/>
<a id="pl.78.6"></a><var>78.6</var>retailers.<br/>
<a id="pl.78.7"></a><var>78.7</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.4.24.0"></a><a id="pl.78.8"></a><var>78.8</var>    Sec. 24. Minnesota Statutes 2012, section 297F.05, subdivision 4, is amended to read:<br/>
<a id="pl.78.9"></a><var>78.9</var>    Subd. 4. <b>Use tax; tobacco products.</b> (a) Except as provided in subdivision 4a, a tax <br/>
<a id="pl.78.10"></a><var>78.10</var>is imposed upon the use or storage by consumers of tobacco products in this state, and <br/>
<a id="pl.78.11"></a><var>78.11</var>upon such consumers, at the rate of 35 90 percent of the cost to the consumer of the tobacco <br/>
<a id="pl.78.12"></a><var>78.12</var>products or the minimum tax under subdivision 3, paragraph (b), whichever is greater.<br/>
<a id="pl.78.13"></a><var>78.13</var>(b) Notwithstanding paragraph (a), for little cigars, the tax on each little cigar <br/>
<a id="pl.78.14"></a><var>78.14</var>shall be equal to the tax imposed per cigarette under subdivision 1, clause (1), and any <br/>
<a id="pl.78.15"></a><var>78.15</var>successor provision taxing cigarettes.<br/>
<a id="pl.78.16"></a><var>78.16</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.4.25.0"></a><a id="pl.78.17"></a><var>78.17</var>    Sec. 25. Minnesota Statutes 2012, section 297F.05, is amended by adding a subdivision <br/>
<a id="pl.78.18"></a><var>78.18</var>to read:<br/>
<a id="pl.78.19"></a><var>78.19</var>    Subd. 4a. <b>Use tax; premium cigars.</b> A tax is imposed upon the use or storage by <br/>
<a id="pl.78.20"></a><var>78.20</var>consumers of all premium cigars in this state, and upon such consumers, at the lesser of:<br/>
<a id="pl.78.21"></a><var>78.21</var>(1) the rate of 70 percent of the cost to the consumer of the premium cigars; or<br/>
<a id="pl.78.22"></a><var>78.22</var>(2) $3.50 per premium cigar.<br/>
<a id="pl.78.23"></a><var>78.23</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.4.26.0"></a><a id="pl.78.24"></a><var>78.24</var>    Sec. 26. Minnesota Statutes 2012, section 297F.24, subdivision 1, is amended to read:<br/>
<a id="pl.78.25"></a><var>78.25</var>    Subdivision 1. <b>Fee imposed.</b> (a) A fee is imposed upon the sale of nonsettlement <br/>
<a id="pl.78.26"></a><var>78.26</var>cigarettes in this state, upon having nonsettlement cigarettes in possession in this state <br/>
<a id="pl.78.27"></a><var>78.27</var>with intent to sell, upon any person engaged in business as a distributor, and upon the use <br/>
<a id="pl.78.28"></a><var>78.28</var>or storage by consumers of nonsettlement cigarettes. The fee equals a rate of 1.75 2.5 <br/>
<a id="pl.78.29"></a><var>78.29</var>cents per cigarette.<br/>
<a id="pl.78.30"></a><var>78.30</var>(b) The purpose of this fee is to:<br/>
<a id="pl.78.31"></a><var>78.31</var>(1) ensure that manufacturers of nonsettlement cigarettes pay fees to the state that <br/>
<a id="pl.78.32"></a><var>78.32</var>are comparable to costs attributable to the use of the cigarettes;<br/>
<a id="pl.79.1"></a><var>79.1</var>(2) prevent manufacturers of nonsettlement cigarettes from undermining the state's <br/>
<a id="pl.79.2"></a><var>79.2</var>policy of discouraging underage smoking by offering nonsettlement cigarettes at prices <br/>
<a id="pl.79.3"></a><var>79.3</var>substantially below the cigarettes of other manufacturers; and<br/>
<a id="pl.79.4"></a><var>79.4</var>(3) fund such other purposes as the legislature determines appropriate.<br/>
<br/>
<a id="bill.4.27.0"></a><a id="pl.79.5"></a><var>79.5</var>    Sec. 27. Minnesota Statutes 2012, section 297F.25, subdivision 1, is amended to read:<br/>
<a id="pl.79.6"></a><var>79.6</var>    Subdivision 1. <b>Imposition.</b> (a) A tax is imposed on distributors on the sale of <br/>
<a id="pl.79.7"></a><var>79.7</var>cigarettes by a cigarette distributor to a retailer or cigarette subjobber for resale in this <br/>
<a id="pl.79.8"></a><var>79.8</var>state. The tax is equal to 6.5 percent of the weighted average retail price and must be <br/>
<a id="pl.79.9"></a><var>79.9</var>expressed in cents per pack rounded to the nearest one-tenth of a cent. The weighted <br/>
<a id="pl.79.10"></a><var>79.10</var>average retail price must be determined annually, with new rates published by November <br/>
<a id="pl.79.11"></a><var>79.11</var>1, and effective for sales on or after January 1 of the following year. The weighted average <br/>
<a id="pl.79.12"></a><var>79.12</var>retail price must be established by surveying cigarette retailers statewide in a manner <br/>
<a id="pl.79.13"></a><var>79.13</var>and time determined by the commissioner. The commissioner shall make an inflation <br/>
<a id="pl.79.14"></a><var>79.14</var>adjustment in accordance with the Consumer Price Index for all urban consumers inflation <br/>
<a id="pl.79.15"></a><var>79.15</var>indicator as published in the most recent state budget forecast. The commissioner shall use <br/>
<a id="pl.79.16"></a><var>79.16</var>the inflation factor for the calendar year in which the new tax rate takes effect. If the survey <br/>
<a id="pl.79.17"></a><var>79.17</var>indicates that the average retail price of cigarettes has not increased relative to the average <br/>
<a id="pl.79.18"></a><var>79.18</var>retail price in the previous year's survey, then the commissioner shall not make an inflation <br/>
<a id="pl.79.19"></a><var>79.19</var>adjustment. The determination of the commissioner pursuant to this subdivision is not a <br/>
<a id="pl.79.20"></a><var>79.20</var>"rule" and is not subject to the Administrative Procedure Act contained in chapter 14. For <br/>
<a id="pl.79.21"></a><var>79.21</var>packs of cigarettes with other than 20 cigarettes, the tax must be adjusted proportionally.<br/>
<a id="pl.79.22"></a><var>79.22</var>(b) Notwithstanding paragraph (a), and in lieu of a survey of cigarette retailers, the <br/>
<a id="pl.79.23"></a><var>79.23</var>tax calculation of the weighted average retail price for the sales of cigarettes from August <br/>
<a id="pl.79.24"></a><var>79.24</var>1, 2011, through December 31, 2011, shall be calculated by: (1) increasing the average <br/>
<a id="pl.79.25"></a><var>79.25</var>retail price per pack of 20 cigarettes from the most recent survey by the percentage change <br/>
<a id="pl.79.26"></a><var>79.26</var>in a weighted average of the presumed legal prices for cigarettes during the year after <br/>
<a id="pl.79.27"></a><var>79.27</var>completion of that survey, as reported and published by the Department of Commerce <br/>
<a id="pl.79.28"></a><var>79.28</var>under section 
<statute_ref>325D.371</statute_ref>; (2) subtracting the sales tax included in the retail price; and (3) <br/>
<a id="pl.79.29"></a><var>79.29</var>adjusting for expected inflation. The rate must be published by May 1 and is effective for <br/>
<a id="pl.79.30"></a><var>79.30</var>sales after July 31. If the weighted average of the presumed legal prices indicates that the <br/>
<a id="pl.79.31"></a><var>79.31</var>average retail price of cigarettes has not increased relative to the average retail price in the <br/>
<a id="pl.79.32"></a><var>79.32</var>most recent survey, then no inflation adjustment must be made for any period that a rate <br/>
<a id="pl.79.33"></a><var>79.33</var>change in section 297F.05, subdivision 1, is enacted after the current effective January 1 <br/>
<a id="pl.79.34"></a><var>79.34</var>rate and prior to the following January 1, the commissioner of revenue shall make a <br/>
<a id="pl.80.1"></a><var>80.1</var>proportionate adjustment to the sales tax rate. For packs of cigarettes with other than 20 <br/>
<a id="pl.80.2"></a><var>80.2</var>cigarettes, the sales tax must be adjusted proportionally.<br/>
<a id="pl.80.3"></a><var>80.3</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.4.28.0"></a><a id="pl.80.4"></a><var>80.4</var>    Sec. 28. Minnesota Statutes 2012, section 325F.781, subdivision 1, is amended to read:<br/>
<a id="pl.80.5"></a><var>80.5</var>    Subdivision 1. <b>Definitions.</b> (a) For purposes of this section, the following terms <br/>
<a id="pl.80.6"></a><var>80.6</var>have the meanings given, unless the language or context clearly provides otherwise.<br/>
<a id="pl.80.7"></a><var>80.7</var>(b) "Consumer" means an individual who purchases, receives, or possesses tobacco <br/>
<a id="pl.80.8"></a><var>80.8</var>products for personal consumption and not for resale.<br/>
<a id="pl.80.9"></a><var>80.9</var>(c) "Delivery sale" means:<br/>
<a id="pl.80.10"></a><var>80.10</var>(1) a sale of tobacco products to a consumer in this state when:<br/>
<a id="pl.80.11"></a><var>80.11</var>(i) the purchaser submits the order for the sale by means of a telephonic or other <br/>
<a id="pl.80.12"></a><var>80.12</var>method of voice transmission, the mail or any other delivery service, or the Internet or <br/>
<a id="pl.80.13"></a><var>80.13</var>other online service; or<br/>
<a id="pl.80.14"></a><var>80.14</var>(ii) the tobacco products are delivered by use of the mail or other delivery service; or<br/>
<a id="pl.80.15"></a><var>80.15</var>(2) a sale of tobacco products that satisfies the criteria in clause (1), item (i), <br/>
<a id="pl.80.16"></a><var>80.16</var>regardless of whether the seller is located inside or outside of the state.<br/>
<a id="pl.80.17"></a><var>80.17</var>A sale of tobacco products to an individual in this state must be treated as a sale to a <br/>
<a id="pl.80.18"></a><var>80.18</var>consumer, unless the individual is licensed as a distributor or retailer of tobacco products.<br/>
<a id="pl.80.19"></a><var>80.19</var>(d) "Delivery service" means a person, including the United States Postal Service, <br/>
<a id="pl.80.20"></a><var>80.20</var>that is engaged in the commercial delivery of letters, packages, or other containers.<br/>
<a id="pl.80.21"></a><var>80.21</var>(e) "Distributor" means a person, whether located inside or outside of this state, <br/>
<a id="pl.80.22"></a><var>80.22</var>other than a retailer, who sells or distributes tobacco products in the state. Distributor does <br/>
<a id="pl.80.23"></a><var>80.23</var>not include a tobacco products manufacturer, export warehouse proprietor, or importer <br/>
<a id="pl.80.24"></a><var>80.24</var>with a valid permit under United States Code, title 26, section 5712 (1997), if the person <br/>
<a id="pl.80.25"></a><var>80.25</var>sells or distributes tobacco products in this state only to distributors who hold valid and <br/>
<a id="pl.80.26"></a><var>80.26</var>current licenses under the laws of a state, or to an export warehouse proprietor or another <br/>
<a id="pl.80.27"></a><var>80.27</var>manufacturer. Distributor does not include a common or contract carrier that is transporting <br/>
<a id="pl.80.28"></a><var>80.28</var>tobacco products under a proper bill of lading or freight bill that states the quantity, source, <br/>
<a id="pl.80.29"></a><var>80.29</var>and destination of tobacco products, or a person who ships tobacco products through this <br/>
<a id="pl.80.30"></a><var>80.30</var>state by common or contract carrier under a bill of lading or freight bill.<br/>
<a id="pl.80.31"></a><var>80.31</var>(f) "Retailer" means a person, whether located inside or outside this state, who sells <br/>
<a id="pl.80.32"></a><var>80.32</var>or distributes tobacco products to a consumer in this state.<br/>
<a id="pl.80.33"></a><var>80.33</var>(g) "Tobacco products" means:<br/>
<a id="pl.80.34"></a><var>80.34</var>(1) cigarettes, as defined in section 
         <statute_ref>297F.01, subdivision 3</statute_ref>; and<br/>
<a id="pl.80.35"></a><var>80.35</var>(2) smokeless tobacco as defined in section 
         <statute_ref>325F.76</statute_ref>.; and<br/>
<a id="pl.81.1"></a><var>81.1</var>(3) premium cigars as defined in section 297F.01, subdivision 13a.<br/>
<a id="pl.81.2"></a><var>81.2</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.4.29.0"></a><a id="pl.81.3"></a><var>81.3</var>    Sec. 29. Minnesota Statutes 2012, section 349.166, subdivision 1, is amended to read:<br/>
<a id="pl.81.4"></a><var>81.4</var>    Subdivision 1. <b>Exclusions.</b> (a) Bingo, with the exception of linked bingo games, may <br/>
<a id="pl.81.5"></a><var>81.5</var>be conducted without a license and without complying with sections 
         <statute_ref>349.168</statute_ref>, subdivisions <br/>
<a id="pl.81.6"></a><var>81.6</var>1 and 2; 
         <statute_ref>349.17</statute_ref>, subdivisions 4 and 5; 
         <statute_ref>349.18, subdivision 1</statute_ref>; and 
         <statute_ref>349.19</statute_ref>, if it is conducted:<br/>
<a id="pl.81.7"></a><var>81.7</var>(1) by an organization in connection with a county fair, the state fair, or a civic <br/>
<a id="pl.81.8"></a><var>81.8</var>celebration and is not conducted for more than 12 consecutive days and is limited to no more <br/>
<a id="pl.81.9"></a><var>81.9</var>than four separate applications for activities applied for and approved in a calendar year; or<br/>
<a id="pl.81.10"></a><var>81.10</var>(2) by an organization that conducts bingo on four or fewer days in a calendar year.<br/>
<a id="pl.81.11"></a><var>81.11</var>An organization that holds a license to conduct lawful gambling under this chapter <br/>
<a id="pl.81.12"></a><var>81.12</var>may not conduct bingo under this subdivision.<br/>
<a id="pl.81.13"></a><var>81.13</var>(b) Bingo may be conducted within a nursing home or a senior citizen housing <br/>
<a id="pl.81.14"></a><var>81.14</var>project or by a senior citizen organization if the prizes for a single bingo game do not <br/>
<a id="pl.81.15"></a><var>81.15</var>exceed $10, total prizes awarded at a single bingo occasion do not exceed $200, no more <br/>
<a id="pl.81.16"></a><var>81.16</var>than two bingo occasions are held by the organization or at the facility each week, only <br/>
<a id="pl.81.17"></a><var>81.17</var>members of the organization or residents of the nursing home or housing project are <br/>
<a id="pl.81.18"></a><var>81.18</var>allowed to play in a bingo game, no compensation is paid for any persons who conduct the <br/>
<a id="pl.81.19"></a><var>81.19</var>bingo, and a manager is appointed to supervise the bingo. Bingo conducted under this <br/>
<a id="pl.81.20"></a><var>81.20</var>paragraph is exempt from sections 
         <statute_ref>349.11</statute_ref> to 
         <statute_ref>349.23</statute_ref>, and the board may not require an <br/>
<a id="pl.81.21"></a><var>81.21</var>organization that conducts bingo under this paragraph, or the manager who supervises the <br/>
<a id="pl.81.22"></a><var>81.22</var>bingo, to register or file a report with the board. The gross receipts from bingo conducted <br/>
<a id="pl.81.23"></a><var>81.23</var>under the limitations of this subdivision are exempt from taxation under chapter 297A.<br/>
<a id="pl.81.24"></a><var>81.24</var>(c) Raffles may be conducted by an organization without registering with the board if <br/>
<a id="pl.81.25"></a><var>81.25</var>the value of all raffle prizes awarded by the organization in a calendar year does not exceed <br/>
<a id="pl.81.26"></a><var>81.26</var>$1,500 or, if the organization is a 501(c)(3) organization, if the value of all raffle prizes <br/>
<a id="pl.81.27"></a><var>81.27</var>awarded by the organization at one event in a calendar year does not exceed $50,000.<br/>
<a id="pl.81.28"></a><var>81.28</var>(d) Except as provided in paragraph (b), the organization must maintain all required <br/>
<a id="pl.81.29"></a><var>81.29</var>records of excluded gambling activity for 3-1/2 years.<br/>
<a id="pl.81.30"></a><var>81.30</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.4.30.0"></a><a id="pl.81.31"></a><var>81.31</var>    Sec. 30. Minnesota Statutes 2012, section 360.531, is amended to read:<br/>
<a id="pl.81.32"></a><var>81.32</var><b>360.531 TAXATION.</b><br/>
<a id="pl.82.1"></a><var>82.1</var>    Subdivision 1. <b>In lieu tax.</b> All aircraft using the air space overlying the state of <br/>
<a id="pl.82.2"></a><var>82.2</var>Minnesota or the airports thereof, except as set forth in section 
         <statute_ref>360.55</statute_ref>, shall be taxed in <br/>
<a id="pl.82.3"></a><var>82.3</var>lieu of all other taxes thereon, on the basis and at the rate for the period January 1, 1966, to <br/>
<a id="pl.82.4"></a><var>82.4</var>June 30, 1967, and for each fiscal year as follows.<br/>
<a id="pl.82.5"></a><var>82.5</var>    Subd. 2. <b>Rate.</b> The tax shall be at the rate of one percent of value; provided that <br/>
<a id="pl.82.6"></a><var>82.6</var>the minimum tax on an aircraft subject to the provisions of sections 
<statute_ref>360.511</statute_ref> to 
<statute_ref>360.67<br/>
</statute_ref><a id="pl.82.7"></a><var>82.7</var> shall not be less than 25 percent of the tax on said aircraft computed on its base price or <br/>
<a id="pl.82.8"></a><var>82.8</var>$50 whichever is the higher. as follows:<br/>
<table>
<col width="50px"/>
<col width="25.299999999999997"/>
<col width="2.2"/>
<col width="16.9"/>
<tr>
<td><a id="pl.82.9"></a><var>82.9</var><br/>
</td>
<td>Base Price<br/>
</td>
<td align="center"></td>
<td align="left">Tax<br/>
</td>
</tr>
<tr>
<td><a id="pl.82.10"></a><var>82.10</var><br/>
</td>
<td>Under $499,999<br/>
</td>
<td align="center"></td>
<td>$100<br/>
</td>
</tr>
<tr>
<td><a id="pl.82.11"></a><var>82.11</var><br/>
</td>
<td>$500,000 to $999,999<br/>
</td>
<td align="center"></td>
<td>$200<br/>
</td>
</tr>
<tr>
<td><a id="pl.82.12"></a><var>82.12</var><br/>
</td>
<td>$1,000,000 to $2,499,999<br/>
</td>
<td align="center"></td>
<td align="left">$2,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.82.13"></a><var>82.13</var><br/>
</td>
<td>$2,500,000 to $4,999,999<br/>
</td>
<td align="center"></td>
<td align="left">$4,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.82.14"></a><var>82.14</var><br/>
</td>
<td>$5,000,000 to $7,499,999<br/>
</td>
<td align="center"></td>
<td align="left">$7,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.82.15"></a><var>82.15</var><br/>
</td>
<td>$7,500,000 to $9,999,999<br/>
</td>
<td align="center"></td>
<td align="left">$10,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.82.16"></a><var>82.16</var><br/>
</td>
<td>$10,000,000 to $12,499,999<br/>
</td>
<td align="center"></td>
<td>$12,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.82.17"></a><var>82.17</var><br/>
</td>
<td>$12,500,000 to $14,999,999<br/>
</td>
<td align="center"></td>
<td>$15,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.82.18"></a><var>82.18</var><br/>
</td>
<td>$15,000,000 to $17,499,999<br/>
</td>
<td align="center"></td>
<td align="left">$17,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.82.19"></a><var>82.19</var><br/>
</td>
<td>$17,500,000 to $19,999,999<br/>
</td>
<td align="center"></td>
<td>$20,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.82.20"></a><var>82.20</var><br/>
</td>
<td>$20,000,000 to $22,499,999<br/>
</td>
<td align="center"></td>
<td>$22,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.82.21"></a><var>82.21</var><br/>
</td>
<td>$22,500,000 to $24,999,999<br/>
</td>
<td align="center"></td>
<td align="left">$25,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.82.22"></a><var>82.22</var><br/>
</td>
<td>$25,000,000 to $27,499,999<br/>
</td>
<td align="center"></td>
<td>$27,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.82.23"></a><var>82.23</var><br/>
</td>
<td>$27,500,000 to $29,999,999<br/>
</td>
<td align="center"></td>
<td align="left">$30,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.82.24"></a><var>82.24</var><br/>
</td>
<td>$30,000,000 to $39,999,999<br/>
</td>
<td align="center"></td>
<td align="left">$50,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.82.25"></a><var>82.25</var><br/>
</td>
<td>$40,000,000 and over<br/>
</td>
<td align="center"></td>
<td>$75,000<br/>
</td>
</tr>
</table><a id="pl.82.26"></a><var>82.26</var>    Subd. 3. <b>First year of life.</b> "First year of life" means the year the aircraft was <br/>
<a id="pl.82.27"></a><var>82.27</var>manufactured.<br/>
<a id="pl.82.28"></a><var>82.28</var>    Subd. 4. <b>Base price for taxation.</b> For the purpose of fixing a base price for taxation <br/>
<a id="pl.82.29"></a><var>82.29</var>from which depreciation in value at a fixed percent per annum can be counted, such , the <br/>
<a id="pl.82.30"></a><var>82.30</var>base price is defined as follows:<br/>
<a id="pl.82.31"></a><var>82.31</var>(a) The base price for taxation of an aircraft shall be the manufacturer's list price.<br/>
<a id="pl.82.32"></a><var>82.32</var>(b) The commissioner shall have authority to fix the base value for taxation purposes <br/>
<a id="pl.82.33"></a><var>82.33</var>of any aircraft of which no such similar or corresponding model has been manufactured, <br/>
<a id="pl.82.34"></a><var>82.34</var>and of any rebuilt or foreign aircraft, any aircraft on which a record of the list price is not <br/>
<a id="pl.82.35"></a><var>82.35</var>available, or any military aircraft converted for civilian use, using as a basis for such <br/>
<a id="pl.82.36"></a><var>82.36</var>valuation the list price of aircraft with comparable performance characteristics, and taking <br/>
<a id="pl.82.37"></a><var>82.37</var>into consideration the age and condition of the aircraft.<br/>
<a id="pl.82.38"></a><var>82.38</var>    Subd. 5. <b>Similarity of corresponding model.</b> Models shall be deemed similar if <br/>
<a id="pl.82.39"></a><var>82.39</var>substantially alike and of the same make. Models shall be deemed to be corresponding <br/>
<a id="pl.83.1"></a><var>83.1</var>models for the purpose of taxation under sections 
         <statute_ref>360.54</statute_ref> to 
         <statute_ref>360.67</statute_ref> if of the same make <br/>
<a id="pl.83.2"></a><var>83.2</var>and having approximately the same weight and type of frame and the same style and <br/>
<a id="pl.83.3"></a><var>83.3</var>size of motor.<br/>
<a id="pl.83.4"></a><var>83.4</var>    Subd. 6. <b>Depreciation.</b> After the first year of aircraft life the base value for taxation <br/>
<a id="pl.83.5"></a><var>83.5</var>purposes shall be reduced as follows: ten percent the second year, and 15 percent the third <br/>
<a id="pl.83.6"></a><var>83.6</var>and each succeeding year thereafter, but in no event shall such tax be reduced below <br/>
<a id="pl.83.7"></a><var>83.7</var>the minimum.<br/>
<a id="pl.83.8"></a><var>83.8</var>    Subd. 7. <b>Prorating tax.</b> When an aircraft first becomes subject to taxation during the <br/>
<a id="pl.83.9"></a><var>83.9</var>period for which the tax is to be paid, the tax on it shall be for the remainder of that period, <br/>
<a id="pl.83.10"></a><var>83.10</var>prorated on a monthly basis of 1/12 of the annual tax for each calendar month counting the <br/>
<a id="pl.83.11"></a><var>83.11</var>month during which it becomes subject to the tax as the first month of such period.<br/>
<a id="pl.83.12"></a><var>83.12</var>    Subd. 8. <b>Tax, fiscal year.</b> Every aircraft subject to the provisions of sections <br/>
<statute_ref><a id="pl.83.13"></a><var>83.13</var>360.511
         </statute_ref> to 
         <statute_ref>360.67</statute_ref> which has at any time since April 19, 1945, used the air space overlying <br/>
<a id="pl.83.14"></a><var>83.14</var>the state of Minnesota or the airports thereof shall be taxed for the period from January 1, <br/>
<a id="pl.83.15"></a><var>83.15</var>1966, through June 30, 1967, and for each fiscal year thereafter in which it is so used. Any <br/>
<a id="pl.83.16"></a><var>83.16</var>aircraft which does not use the air space overlying the state of Minnesota or the airports <br/>
<a id="pl.83.17"></a><var>83.17</var>thereof at any time during the period of January 1, 1966, to and including June 30, 1967, <br/>
<a id="pl.83.18"></a><var>83.18</var>or at any time during any fiscal year thereafter shall not be subject to the tax provided by <br/>
<a id="pl.83.19"></a><var>83.19</var>sections 
         <statute_ref>360.511</statute_ref> to 
         <statute_ref>360.67</statute_ref> for such period. Rebuilt aircraft shall be subject to the tax <br/>
<a id="pl.83.20"></a><var>83.20</var>provided by sections 
         <statute_ref>360.511</statute_ref> to 
         <statute_ref>360.67</statute_ref> for that portion of the aforesaid periods remaining <br/>
<a id="pl.83.21"></a><var>83.21</var>after the aircraft has been rebuilt, prorated on a monthly basis.<br/>
<a id="pl.83.22"></a><var>83.22</var>    Subd. 9. <b>Assessed as personal property in certain cases.</b> Aircraft subject to <br/>
<a id="pl.83.23"></a><var>83.23</var>taxation under the provisions of sections 
         <statute_ref>360.54</statute_ref> to 
         <statute_ref>360.67</statute_ref> shall not be assessed as personal <br/>
<a id="pl.83.24"></a><var>83.24</var>property and shall be subject to no tax except as provided for by these sections. Aircraft <br/>
<a id="pl.83.25"></a><var>83.25</var>not subject to taxation as provided in these sections, but subject to taxation as personal <br/>
<a id="pl.83.26"></a><var>83.26</var>property within the state of Minnesota shall be assessed and valued at 33-1/3 percent of <br/>
<a id="pl.83.27"></a><var>83.27</var>the market value thereof and taxed at the rate and in the manner provided by law for the <br/>
<a id="pl.83.28"></a><var>83.28</var>taxation of ordinary personal property. If the person against whom any tax has been levied <br/>
<a id="pl.83.29"></a><var>83.29</var>on the ad valorem basis because of any aircraft shall, during the calendar year for which <br/>
<a id="pl.83.30"></a><var>83.30</var>such ad valorem tax is levied, be also taxed under provisions of these sections, then and in <br/>
<a id="pl.83.31"></a><var>83.31</var>that event, upon proper showing, the commissioner of revenue shall grant to the person <br/>
<a id="pl.83.32"></a><var>83.32</var>against whom said ad valorem tax was levied, such reduction or abatement of net tax <br/>
<a id="pl.83.33"></a><var>83.33</var>capacity or taxes as was occasioned by the so-called ad valorem tax imposed. If the ad <br/>
<a id="pl.83.34"></a><var>83.34</var>valorem tax upon any aircraft has been assessed against a dealer in new and used aircraft, <br/>
<a id="pl.83.35"></a><var>83.35</var>and the tax imposed by these sections for the required period is thereafter paid by the <br/>
<a id="pl.83.36"></a><var>83.36</var>owner, then and in that event, upon proper showing, the commissioner of revenue, upon <br/>
<a id="pl.84.1"></a><var>84.1</var>the application of said dealer, shall grant to such dealer against whom said ad valorem tax <br/>
<a id="pl.84.2"></a><var>84.2</var>was levied such reduction or abatement of net tax capacity or taxes as was occasioned <br/>
<a id="pl.84.3"></a><var>84.3</var>by the so-called ad valorem tax imposed.<br/>
<a id="pl.84.4"></a><var>84.4</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2014, and applies to aircraft <br/>
<a id="pl.84.5"></a><var>84.5</var>tax due on or after that date.<br/>
<br/>
<a id="bill.4.31.0"></a><a id="pl.84.6"></a><var>84.6</var>    Sec. 31. Minnesota Statutes 2012, section 360.66, is amended to read:<br/>
<a id="pl.84.7"></a><var>84.7</var><b>360.66 STATE AIRPORTS FUND.</b><br/>
<a id="pl.84.8"></a><var>84.8</var>    Subdivision 1. <b>Tax credited to fund.</b> The proceeds of the tax imposed on aircraft <br/>
<a id="pl.84.9"></a><var>84.9</var>under sections 
         <statute_ref>360.54</statute_ref> 360.531 to 
         <statute_ref>360.67</statute_ref> and all fees and penalties provided for therein <br/>
<a id="pl.84.10"></a><var>84.10</var>shall be collected by the commissioner and paid into the state treasury and credited to the <br/>
<a id="pl.84.11"></a><var>84.11</var>state airports fund created by other statutes of this state.<br/>
<a id="pl.84.12"></a><var>84.12</var>    Subd. 2. <b>Reimbursement for expenses.</b> There shall be transferred by the <br/>
<a id="pl.84.13"></a><var>84.13</var>commissioner of management and budget each year from the state airports fund to the <br/>
<a id="pl.84.14"></a><var>84.14</var>general fund in the state treasury the amount expended from the latter fund for expenses of <br/>
<a id="pl.84.15"></a><var>84.15</var>administering the provisions of sections 
         <statute_ref>360.54</statute_ref> 360.531 to 
         <statute_ref>360.67</statute_ref>.<br/>
<a id="pl.84.16"></a><var>84.16</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2014, and applies to aircraft <br/>
<a id="pl.84.17"></a><var>84.17</var>tax due on or after that date.<br/>
<br/>
<a id="bill.4.32.0"></a><a id="pl.84.18"></a><var>84.18</var>    Sec. 32. Minnesota Statutes 2012, section 383A.80, subdivision 4, is amended to read:<br/>
<a id="pl.84.19"></a><var>84.19</var>    Subd. 4. <b>Expiration.</b> The authority to impose the tax under this section expires <br/>
<a id="pl.84.20"></a><var>84.20</var>January 1, 2013 2023.<br/>
<a id="pl.84.21"></a><var>84.21</var><b>EFFECTIVE DATE.</b>This section is effective for all deeds and mortgages <br/>
<a id="pl.84.22"></a><var>84.22</var>acknowledged on or after July 1, 2013.<br/>
<br/>
<a id="bill.4.33.0"></a><a id="pl.84.23"></a><var>84.23</var>    Sec. 33. Minnesota Statutes 2012, section 383B.80, subdivision 4, is amended to read:<br/>
<a id="pl.84.24"></a><var>84.24</var>    Subd. 4. <b>Expiration.</b> The authority to impose the tax under this section expires <br/>
<a id="pl.84.25"></a><var>84.25</var>January 1, 2013 2023.<br/>
<a id="pl.84.26"></a><var>84.26</var><b>EFFECTIVE DATE.</b>This section is effective for all deeds and mortgages <br/>
<a id="pl.84.27"></a><var>84.27</var>acknowledged on or after July 1, 2013.<br/>
<br/>
<a id="bill.4.34.0"></a><a id="pl.84.28"></a><var>84.28</var>    Sec. 34. Minnesota Statutes 2012, section 403.02, is amended by adding a subdivision <br/>
<a id="pl.84.29"></a><var>84.29</var>to read:<br/>
<a id="pl.85.1"></a><var>85.1</var>    Subd. 17b. <b>Prepaid wireless telecommunications service.</b> "Prepaid wireless <br/>
<a id="pl.85.2"></a><var>85.2</var>telecommunications service" means a wireless telecommunications service that allows the <br/>
<a id="pl.85.3"></a><var>85.3</var>caller to dial 911 to access the 911 system, which service must be paid for in advance and is:<br/>
<a id="pl.85.4"></a><var>85.4</var>(1) sold in predetermined units or dollars of which the number declines with use in a <br/>
<a id="pl.85.5"></a><var>85.5</var>known amount; or<br/>
<a id="pl.85.6"></a><var>85.6</var>(2) provides unlimited use for a predetermined time period.<br/>
<a id="pl.85.7"></a><var>85.7</var>The  inclusion of nontelecommunications services, including the download of digital <br/>
<a id="pl.85.8"></a><var>85.8</var>products delivered electronically, content, and ancillary services, with a prepaid wireless <br/>
<a id="pl.85.9"></a><var>85.9</var>telephone service does not preclude that service from being considered a prepaid wireless <br/>
<a id="pl.85.10"></a><var>85.10</var>telephone service under this chapter.<br/>
<a id="pl.85.11"></a><var>85.11</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2014.<br/>
<br/>
<a id="bill.4.35.0"></a><a id="pl.85.12"></a><var>85.12</var>    Sec. 35. Minnesota Statutes 2012, section 403.02, is amended by adding a subdivision <br/>
<a id="pl.85.13"></a><var>85.13</var>to read:<br/>
<a id="pl.85.14"></a><var>85.14</var>    Subd. 20a. <b>Wireless telecommunications service.</b> "Wireless telecommunications <br/>
<a id="pl.85.15"></a><var>85.15</var>service" means a commercial mobile radio service, as that term is defined in United <br/>
<a id="pl.85.16"></a><var>85.16</var>States Code, title 47, section 332, subsection (d), including all broadband personal <br/>
<a id="pl.85.17"></a><var>85.17</var>communication services, wireless radio telephone services, and geographic area <br/>
<a id="pl.85.18"></a><var>85.18</var>specialized mobile radio licensees, that offer real-time, two-way voice service <br/>
<a id="pl.85.19"></a><var>85.19</var>interconnected with the public switched telephone network.<br/>
<a id="pl.85.20"></a><var>85.20</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2014.<br/>
<br/>
<a id="bill.4.36.0"></a><a id="pl.85.21"></a><var>85.21</var>    Sec. 36. Minnesota Statutes 2012, section 403.02, subdivision 21, is amended to read:<br/>
<a id="pl.85.22"></a><var>85.22</var>    Subd. 21. <b>Wireless telecommunications service provider.</b> "Wireless <br/>
<a id="pl.85.23"></a><var>85.23</var>telecommunications service provider" means a provider of commercial mobile radio <br/>
<a id="pl.85.24"></a><var>85.24</var>services, as that term is defined in United States Code, title 47, section 332, subsection <br/>
<a id="pl.85.25"></a><var>85.25</var>(d), including all broadband personal communications services, wireless radio telephone <br/>
<a id="pl.85.26"></a><var>85.26</var>services, geographic area specialized and enhanced specialized mobile radio services, and <br/>
<a id="pl.85.27"></a><var>85.27</var>incumbent wide area specialized mobile radio licensees, that offers real-time, two-way <br/>
<a id="pl.85.28"></a><var>85.28</var>voice service interconnected with the public switched telephone network and that is doing <br/>
<a id="pl.85.29"></a><var>85.29</var>business in the state of Minnesota wireless telecommunications service.<br/>
<a id="pl.85.30"></a><var>85.30</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2014.<br/>
<br/>
<a id="bill.4.37.0"></a><a id="pl.85.31"></a><var>85.31</var>    Sec. 37. Minnesota Statutes 2012, section 403.06, subdivision 1a, is amended to read:<br/>
<a id="pl.86.1"></a><var>86.1</var>    Subd. 1a. <b>Biennial budget; annual financial report.</b> The commissioner shall <br/>
<a id="pl.86.2"></a><var>86.2</var>prepare a biennial budget for maintaining the 911 system. By December 15 of each year, <br/>
<a id="pl.86.3"></a><var>86.3</var>the commissioner shall submit a report to the legislature detailing the expenditures for <br/>
<a id="pl.86.4"></a><var>86.4</var>maintaining the 911 system, the 911 fees collected, the balance of the 911 fund, and the <br/>
<a id="pl.86.5"></a><var>86.5</var>911-related administrative expenses of the commissioner, and of a separate accounting <br/>
<a id="pl.86.6"></a><var>86.6</var>of E911 fees from prepaid wireless customers. The commissioner is authorized to <br/>
<a id="pl.86.7"></a><var>86.7</var>expend money that has been appropriated to pay for the maintenance, enhancements, <br/>
<a id="pl.86.8"></a><var>86.8</var>and expansion of the 911 system.<br/>
<a id="pl.86.9"></a><var>86.9</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2014.<br/>
<br/>
<a id="bill.4.38.0"></a><a id="pl.86.10"></a><var>86.10</var>    Sec. 38. Minnesota Statutes 2012, section 403.11, subdivision 1, is amended to read:<br/>
<a id="pl.86.11"></a><var>86.11</var>    Subdivision 1. <b>Emergency telecommunications service fee; account.</b> (a) Each <br/>
<a id="pl.86.12"></a><var>86.12</var>customer of a wireless or wire-line switched or packet-based telecommunications service <br/>
<a id="pl.86.13"></a><var>86.13</var>provider connected to the public switched telephone network that furnishes service capable <br/>
<a id="pl.86.14"></a><var>86.14</var>of originating a 911 emergency telephone call is assessed a fee based upon the number <br/>
<a id="pl.86.15"></a><var>86.15</var>of wired or wireless telephone lines, or their equivalent, to cover the costs of ongoing <br/>
<a id="pl.86.16"></a><var>86.16</var>maintenance and related improvements for trunking and central office switching equipment <br/>
<a id="pl.86.17"></a><var>86.17</var>for 911 emergency telecommunications service, to offset administrative and staffing costs <br/>
<a id="pl.86.18"></a><var>86.18</var>of the commissioner related to managing the 911 emergency telecommunications service <br/>
<a id="pl.86.19"></a><var>86.19</var>program, to make distributions provided for in section 
         <statute_ref>403.113</statute_ref>, and to offset the costs, <br/>
<a id="pl.86.20"></a><var>86.20</var>including administrative and staffing costs, incurred by the State Patrol Division of the <br/>
<a id="pl.86.21"></a><var>86.21</var>Department of Public Safety in handling 911 emergency calls made from wireless phones.<br/>
<a id="pl.86.22"></a><var>86.22</var>    (b) Money remaining in the 911 emergency telecommunications service account <br/>
<a id="pl.86.23"></a><var>86.23</var>after all other obligations are paid must not cancel and is carried forward to subsequent <br/>
<a id="pl.86.24"></a><var>86.24</var>years and may be appropriated from time to time to the commissioner to provide financial <br/>
<a id="pl.86.25"></a><var>86.25</var>assistance to counties for the improvement of local emergency telecommunications <br/>
<a id="pl.86.26"></a><var>86.26</var>services. The improvements may include providing access to 911 service for <br/>
<a id="pl.86.27"></a><var>86.27</var>telecommunications service subscribers currently without access and upgrading existing <br/>
<a id="pl.86.28"></a><var>86.28</var>911 service to include automatic number identification, local location identification, <br/>
<a id="pl.86.29"></a><var>86.29</var>automatic location identification, and other improvements specified in revised county <br/>
<a id="pl.86.30"></a><var>86.30</var>911 plans approved by the commissioner.<br/>
<a id="pl.86.31"></a><var>86.31</var>    (c) The fee may not be less than eight cents nor more than 65 cents a month until <br/>
<a id="pl.86.32"></a><var>86.32</var>June 30, 2008, not less than eight cents nor more than 75 cents a month until June 30, <br/>
<a id="pl.86.33"></a><var>86.33</var>2009, not less than eight cents nor more than 85 cents a month until June 30, 2010, and <br/>
<a id="pl.86.34"></a><var>86.34</var>not less than eight cents nor more than 95 cents a month on or after July 1, 2010, for <br/>
<a id="pl.86.35"></a><var>86.35</var>each customer access line or other basic access service, including trunk equivalents as <br/>
<a id="pl.87.1"></a><var>87.1</var>designated by the Public Utilities Commission for access charge purposes and including <br/>
<a id="pl.87.2"></a><var>87.2</var>wireless telecommunications services. With the approval of the commissioner of <br/>
<a id="pl.87.3"></a><var>87.3</var>management and budget, the commissioner of public safety shall establish the amount of <br/>
<a id="pl.87.4"></a><var>87.4</var>the fee within the limits specified and inform the companies and carriers of the amount to <br/>
<a id="pl.87.5"></a><var>87.5</var>be collected. When the revenue bonds authorized under section 
         <statute_ref>403.27, subdivision 1</statute_ref>, <br/>
<a id="pl.87.6"></a><var>87.6</var>have been fully paid or defeased, the commissioner shall reduce the fee to reflect that debt <br/>
<a id="pl.87.7"></a><var>87.7</var>service on the bonds is no longer needed. The commissioner shall provide companies and <br/>
<a id="pl.87.8"></a><var>87.8</var>carriers a minimum of 45 days' notice of each fee change. The fee must be the same for all <br/>
<a id="pl.87.9"></a><var>87.9</var>customers, except that the fee imposed under  this subdivision does not apply to prepaid <br/>
<a id="pl.87.10"></a><var>87.10</var>wireless telecommunications service, which is instead subject to the fee imposed under <br/>
<a id="pl.87.11"></a><var>87.11</var>section 403.161, subdivision 1, paragraph (a).<br/>
<a id="pl.87.12"></a><var>87.12</var>    (d) The fee must be collected by each wireless or wire-line telecommunications <br/>
<a id="pl.87.13"></a><var>87.13</var>service provider subject to the fee. Fees are payable to and must be submitted to the <br/>
<a id="pl.87.14"></a><var>87.14</var>commissioner monthly before the 25th of each month following the month of collection, <br/>
<a id="pl.87.15"></a><var>87.15</var>except that fees may be submitted quarterly if less than $250 a month is due, or annually if <br/>
<a id="pl.87.16"></a><var>87.16</var>less than $25 a month is due. Receipts must be deposited in the state treasury and credited <br/>
<a id="pl.87.17"></a><var>87.17</var>to a 911 emergency telecommunications service account in the special revenue fund. The <br/>
<a id="pl.87.18"></a><var>87.18</var>money in the account may only be used for 911 telecommunications services.<br/>
<a id="pl.87.19"></a><var>87.19</var>    (e) This subdivision does not apply to customers of interexchange carriers.<br/>
<a id="pl.87.20"></a><var>87.20</var>    (f) The installation and recurring charges for integrating wireless 911 calls into <br/>
<a id="pl.87.21"></a><var>87.21</var>enhanced 911 systems are eligible for payment by the commissioner if the 911 service <br/>
<a id="pl.87.22"></a><var>87.22</var>provider is included in the statewide design plan and the charges are made pursuant to <br/>
<a id="pl.87.23"></a><var>87.23</var>contract.<br/>
<a id="pl.87.24"></a><var>87.24</var>    (g) Competitive local exchanges carriers holding certificates of authority from the <br/>
<a id="pl.87.25"></a><var>87.25</var>Public Utilities Commission are eligible to receive payment for recurring 911 services.<br/>
<a id="pl.87.26"></a><var>87.26</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2014.<br/>
<br/>
<a id="bill.4.39.0"></a><a id="pl.87.27"></a><var>87.27</var>    Sec. 39. Minnesota Statutes 2012, section 403.11, is amended by adding a subdivision <br/>
<a id="pl.87.28"></a><var>87.28</var>to read:<br/>
<a id="pl.87.29"></a><var>87.29</var>    Subd. 6. <b>Report.</b> (a) Beginning September 1, 2013, and continuing semiannually <br/>
<a id="pl.87.30"></a><var>87.30</var>thereafter, each wireless telecommunications service provider shall report to the <br/>
<a id="pl.87.31"></a><var>87.31</var>commissioner, based on the mobile telephone number, both the total number of prepaid <br/>
<a id="pl.87.32"></a><var>87.32</var>wireless telecommunications subscribers sourced to Minnesota and the total number of <br/>
<a id="pl.87.33"></a><var>87.33</var>wireless telecommunications subscribers sourced to Minnesota. The report must be filed <br/>
<a id="pl.87.34"></a><var>87.34</var>on the same schedule as Federal Communications Commission Form 477.<br/>
<a id="pl.88.1"></a><var>88.1</var>(b) The commissioner shall make a standard form available to all wireless <br/>
<a id="pl.88.2"></a><var>88.2</var>telecommunications service providers for submitting information required to compile <br/>
<a id="pl.88.3"></a><var>88.3</var>the report required under this subdivision.<br/>
<a id="pl.88.4"></a><var>88.4</var>(c) The information provided to the commissioner under this subdivision is <br/>
<a id="pl.88.5"></a><var>88.5</var>considered trade secret data under section 13.37 and may only be used for purposes of <br/>
<a id="pl.88.6"></a><var>88.6</var>administering this chapter.<br/>
<a id="pl.88.7"></a><var>88.7</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.40.0"></a><a id="pl.88.8"></a><var>88.8</var>    Sec. 40. <b>[403.16] DEFINITIONS.</b><br/>
<a id="pl.88.9"></a><var>88.9</var>    Subdivision 1. <b>Scope.</b> For the purposes of sections 403.16 to 403.164, the terms <br/>
<a id="pl.88.10"></a><var>88.10</var>defined in this section have the meanings given them.<br/>
<a id="pl.88.11"></a><var>88.11</var>    Subd. 2. <b>Consumer.</b> "Consumer" means a person who purchases prepaid wireless <br/>
<a id="pl.88.12"></a><var>88.12</var>telecommunications service in a retail transaction.<br/>
<a id="pl.88.13"></a><var>88.13</var>    Subd. 3. <b>Department.</b> "Department" means the Department of Revenue.<br/>
<a id="pl.88.14"></a><var>88.14</var>    Subd. 4. <b>Prepaid wireless E911 fee.</b> "Prepaid wireless E911 fee" means the fee that <br/>
<a id="pl.88.15"></a><var>88.15</var>is required to be collected by a seller from a consumer as established in section 403.161, <br/>
<a id="pl.88.16"></a><var>88.16</var>subdivision 1, paragraph (a).<br/>
<a id="pl.88.17"></a><var>88.17</var>    Subd. 5. <b>Prepaid wireless telecommunications access Minnesota fee.</b> "Prepaid <br/>
<a id="pl.88.18"></a><var>88.18</var>wireless telecommunications access Minnesota fee" means the fee that is required to be <br/>
<a id="pl.88.19"></a><var>88.19</var>collected by a seller from a consumer as established in section 403.161, subdivision 1, <br/>
<a id="pl.88.20"></a><var>88.20</var>paragraph (b).<br/>
<a id="pl.88.21"></a><var>88.21</var>    Subd. 6. <b>Provider.</b> "Provider" means a person that provides prepaid wireless <br/>
<a id="pl.88.22"></a><var>88.22</var>telecommunications service under a license issued by the Federal Communications <br/>
<a id="pl.88.23"></a><var>88.23</var>Commission.<br/>
<a id="pl.88.24"></a><var>88.24</var>    Subd. 7. <b>Retail transaction.</b> "Retail transaction" means the purchase of prepaid <br/>
<a id="pl.88.25"></a><var>88.25</var>wireless telecommunications service from a seller for any purpose other than resale.<br/>
<a id="pl.88.26"></a><var>88.26</var>    Subd. 8. <b>Seller.</b> "Seller" means a person who sells prepaid wireless <br/>
<a id="pl.88.27"></a><var>88.27</var>telecommunications service to another person.<br/>
<a id="pl.88.28"></a><var>88.28</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.41.0"></a><a id="pl.88.29"></a><var>88.29</var>    Sec. 41. <b>[403.161] PREPAID WIRELESS FEES IMPOSED; COLLECTION; </b><br/>
<a id="pl.88.30"></a><var>88.30</var><b>REMITTANCE.</b><br/>
<a id="pl.88.31"></a><var>88.31</var>    Subdivision 1. <b>Fees imposed.</b> (a) A prepaid wireless E911 fee of 80 cents per retail <br/>
<a id="pl.88.32"></a><var>88.32</var>transaction is imposed on prepaid wireless telecommunications service until the fee is <br/>
<a id="pl.88.33"></a><var>88.33</var>adjusted as an amount per retail transaction under subdivision 6.<br/>
<a id="pl.89.1"></a><var>89.1</var>(b) A prepaid wireless telecommunications access Minnesota fee, in the amount of <br/>
<a id="pl.89.2"></a><var>89.2</var>the monthly charge provided for in section 237.52, subdivision 2, is imposed on each <br/>
<a id="pl.89.3"></a><var>89.3</var>retail transaction for prepaid wireless telecommunications service until the fee is adjusted <br/>
<a id="pl.89.4"></a><var>89.4</var>as an amount per retail transaction under subdivision 6.<br/>
<a id="pl.89.5"></a><var>89.5</var>    Subd. 2. <b>Exemption.</b> The fees established under subdivision 1 are not imposed on a <br/>
<a id="pl.89.6"></a><var>89.6</var>minimal amount of prepaid wireless telecommunications service that is sold with a prepaid <br/>
<a id="pl.89.7"></a><var>89.7</var>wireless device and is charged a single nonitemized price, and a seller may not apply the <br/>
<a id="pl.89.8"></a><var>89.8</var>fees to such a transaction. For purposes of this subdivision, a minimal amount of service <br/>
<a id="pl.89.9"></a><var>89.9</var>means an amount of service denominated as either ten minutes or less or $5 or less.<br/>
<a id="pl.89.10"></a><var>89.10</var>    Subd. 3. <b>Fee collected.</b> The prepaid wireless E911 and telecommunications <br/>
<a id="pl.89.11"></a><var>89.11</var>access Minnesota fees must be collected by the seller from the consumer for each retail <br/>
<a id="pl.89.12"></a><var>89.12</var>transaction occurring in this state. The amount of each fee must be combined into one <br/>
<a id="pl.89.13"></a><var>89.13</var>amount, which must be separately stated on an invoice, receipt, or other similar document <br/>
<a id="pl.89.14"></a><var>89.14</var>that is provided to the consumer by the seller, or otherwise disclosed to the consumer.<br/>
<a id="pl.89.15"></a><var>89.15</var>    Subd. 4. <b>Sales and use tax treatment.</b> For purposes of this section, a retail <br/>
<a id="pl.89.16"></a><var>89.16</var>transaction conducted in person by a consumer at a business location of the seller must <br/>
<a id="pl.89.17"></a><var>89.17</var>be treated as occurring in this state if that business location is in this state, and any other <br/>
<a id="pl.89.18"></a><var>89.18</var>retail transaction must be treated as occurring in this state if the retail transaction is treated <br/>
<a id="pl.89.19"></a><var>89.19</var>as occurring in this state for purposes of the sales and use tax as specified in section <br/>
<a id="pl.89.20"></a><var>89.20</var>297A.669, subdivision 3, paragraph (c).<br/>
<a id="pl.89.21"></a><var>89.21</var>    Subd. 5. <b>Remittance.</b> The prepaid wireless E911 and telecommunications access <br/>
<a id="pl.89.22"></a><var>89.22</var>Minnesota fees are the liability of the consumer and not of the seller or of any provider, <br/>
<a id="pl.89.23"></a><var>89.23</var>except that the seller is liable to remit all fees that the seller collects from consumers as <br/>
<a id="pl.89.24"></a><var>89.24</var>provided in section 403.162, including all fees that the seller is deemed to collect in which <br/>
<a id="pl.89.25"></a><var>89.25</var>the amount of the fee has not been separately stated on an invoice, receipt, or other similar <br/>
<a id="pl.89.26"></a><var>89.26</var>document provided to the consumer by the seller.<br/>
<a id="pl.89.27"></a><var>89.27</var>    Subd. 6. <b>Exclusion for calculating other charges.</b> The combined amount of the <br/>
<a id="pl.89.28"></a><var>89.28</var>prepaid wireless E911 and telecommunications access Minnesota fees collected by a seller <br/>
<a id="pl.89.29"></a><var>89.29</var>from a consumer must not be included in the base for measuring any tax, fee, surcharge, <br/>
<a id="pl.89.30"></a><var>89.30</var>or other charge that is imposed by this state, any political subdivision of this state, or <br/>
<a id="pl.89.31"></a><var>89.31</var>any intergovernmental agency.<br/>
<a id="pl.89.32"></a><var>89.32</var>    Subd. 7. <b>Fee changes.</b> (a) The prepaid wireless E911 and telecommunications <br/>
<a id="pl.89.33"></a><var>89.33</var>access Minnesota fee must be proportionately increased or reduced upon any change to <br/>
<a id="pl.89.34"></a><var>89.34</var>the fee imposed under section 403.11, subdivision 1, paragraph (c), after July 1, 2013, or <br/>
<a id="pl.89.35"></a><var>89.35</var>the fee imposed under section 237.52, subdivision 2, as applicable.<br/>
<a id="pl.90.1"></a><var>90.1</var>(b) The department shall post notice of any fee changes on its Web site at least 30 <br/>
<a id="pl.90.2"></a><var>90.2</var>days in advance of the effective date of the fee changes. It is the responsibility of sellers to <br/>
<a id="pl.90.3"></a><var>90.3</var>monitor the department's Web site for notice of fee changes.<br/>
<a id="pl.90.4"></a><var>90.4</var>(c) Fee changes are effective 60 days after the first day of the first calendar month <br/>
<a id="pl.90.5"></a><var>90.5</var>after the commissioner of public safety or the Public Utilities Commission, as applicable, <br/>
<a id="pl.90.6"></a><var>90.6</var>changes the fee.<br/>
<a id="pl.90.7"></a><var>90.7</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2014.<br/>
<br/>
<a id="bill.4.42.0"></a><a id="pl.90.8"></a><var>90.8</var>    Sec. 42. <b>[403.162] ADMINISTRATION OF PREPAID WIRELESS E911 FEES.</b><br/>
<a id="pl.90.9"></a><var>90.9</var>    Subdivision 1. <b>Remittance.</b> Prepaid wireless E911 and telecommunications access <br/>
<a id="pl.90.10"></a><var>90.10</var>Minnesota fees collected by sellers must be remitted to the  commissioner of revenue <br/>
<a id="pl.90.11"></a><var>90.11</var>at the times and in the manner provided by chapter 297A with respect to the general <br/>
<a id="pl.90.12"></a><var>90.12</var>sales and use tax. The commissioner of revenue shall establish registration and payment <br/>
<a id="pl.90.13"></a><var>90.13</var>procedures that substantially coincide with the registration and payment procedures that <br/>
<a id="pl.90.14"></a><var>90.14</var>apply in chapter 297A.<br/>
<a id="pl.90.15"></a><var>90.15</var>    Subd. 2. <b>Seller's fee retention.</b> A seller may deduct and retain three percent of <br/>
<a id="pl.90.16"></a><var>90.16</var>prepaid wireless E911 and telecommunications access Minnesota fees collected by the <br/>
<a id="pl.90.17"></a><var>90.17</var>seller from consumers.<br/>
<a id="pl.90.18"></a><var>90.18</var>    Subd. 3. <b>Audit; appeal.</b> The audit and appeal procedures applicable under chapter <br/>
<a id="pl.90.19"></a><var>90.19</var>297A apply to any fee imposed under section 403.161.<br/>
<a id="pl.90.20"></a><var>90.20</var>    Subd. 4. <b>Procedures for resale transactions.</b> The commissioner of revenue shall <br/>
<a id="pl.90.21"></a><var>90.21</var>establish procedures by which a seller of prepaid wireless telecommunications service <br/>
<a id="pl.90.22"></a><var>90.22</var>may document that a sale is not a retail transaction. These procedures must substantially <br/>
<a id="pl.90.23"></a><var>90.23</var>coincide with the procedures for documenting sale for resale transactions as provided in <br/>
<a id="pl.90.24"></a><var>90.24</var>chapter 297A.<br/>
<a id="pl.90.25"></a><var>90.25</var>    Subd. 5. <b>Fees deposited.</b> (a) The commissioner of revenue shall, based on <br/>
<a id="pl.90.26"></a><var>90.26</var>the relative proportion of the prepaid wireless E911 fee and the prepaid wireless <br/>
<a id="pl.90.27"></a><var>90.27</var>telecommunications access Minnesota fee imposed per retail transaction, divide the fees <br/>
<a id="pl.90.28"></a><var>90.28</var>collected in corresponding proportions. Within 30 days of receipt of the collected fees, <br/>
<a id="pl.90.29"></a><var>90.29</var>the commissioner shall:<br/>
<a id="pl.90.30"></a><var>90.30</var>(1) deposit the proportion of the collected fees attributable to the prepaid wireless <br/>
<a id="pl.90.31"></a><var>90.31</var>E911 fee in the 911 emergency telecommunications service account in the special revenue <br/>
<a id="pl.90.32"></a><var>90.32</var>fund; and<br/>
<a id="pl.90.33"></a><var>90.33</var>(2) deposit the proportion of collected fees attributable to the prepaid wireless <br/>
<a id="pl.90.34"></a><var>90.34</var>telecommunications access Minnesota fee in the telecommunications access fund <br/>
<a id="pl.90.35"></a><var>90.35</var>established in section 237.52, subdivision 1.<br/>
<a id="pl.91.1"></a><var>91.1</var>(b) The department may deduct and retain an amount, not to exceed two percent of <br/>
<a id="pl.91.2"></a><var>91.2</var>collected fees, to reimburse its direct costs of administering the collection and remittance <br/>
<a id="pl.91.3"></a><var>91.3</var>of prepaid wireless E911 fees and prepaid wireless telecommunications access Minnesota <br/>
<a id="pl.91.4"></a><var>91.4</var>fees.<br/>
<a id="pl.91.5"></a><var>91.5</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2014.<br/>
<br/>
<a id="bill.4.43.0"></a><a id="pl.91.6"></a><var>91.6</var>    Sec. 43. <b>[403.163] LIABILITY PROTECTION FOR SELLERS AND </b><br/>
<a id="pl.91.7"></a><var>91.7</var><b>PROVIDERS.</b><br/>
<a id="pl.91.8"></a><var>91.8</var>(a) A provider or seller of prepaid wireless telecommunications service is not liable <br/>
<a id="pl.91.9"></a><var>91.9</var>for damages to any person resulting from or incurred in connection with providing any <br/>
<a id="pl.91.10"></a><var>91.10</var>lawful assistance in good faith to any investigative or law enforcement officer of the <br/>
<a id="pl.91.11"></a><var>91.11</var>United States, this or any other state, or any political subdivision of this or any other state. <br/>
<a id="pl.91.12"></a><var>91.12</var>(b) In addition to the protection from liability provided by paragraphs (a) and (b), <br/>
<a id="pl.91.13"></a><var>91.13</var>section 403.08, subdivision 11, applies to sellers and providers.<br/>
<a id="pl.91.14"></a><var>91.14</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2014.<br/>
<br/>
<a id="bill.4.44.0"></a><a id="pl.91.15"></a><var>91.15</var>    Sec. 44. <b>[403.164] EXCLUSIVITY OF PREPAID WIRELESS E911 FEE.</b><br/>
<a id="pl.91.16"></a><var>91.16</var>The prepaid wireless E911 fee imposed by section 403.161 is the only E911 funding <br/>
<a id="pl.91.17"></a><var>91.17</var>obligation imposed with respect to prepaid wireless telecommunications service in this <br/>
<a id="pl.91.18"></a><var>91.18</var>state, and no tax, fee, surcharge, or other charge may be imposed by this state, any political <br/>
<a id="pl.91.19"></a><var>91.19</var>subdivision of this state, or any intergovernmental agency, for E911 funding purposes, <br/>
<a id="pl.91.20"></a><var>91.20</var>upon any provider, seller, or consumer with respect to the sale, purchase, use, or provision <br/>
<a id="pl.91.21"></a><var>91.21</var>of prepaid wireless telecommunications service.<br/>
<a id="pl.91.22"></a><var>91.22</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2014.<br/>
<br/>
<a id="bill.4.45.0"></a><a id="pl.91.23"></a><var>91.23</var>    Sec. 45. <b>FLOOR STOCKS TAX.</b><br/>
<a id="pl.91.24"></a><var>91.24</var>(a) A floor stocks cigarette tax is imposed on every person engaged in the business <br/>
<a id="pl.91.25"></a><var>91.25</var>in this state as a distributor, retailer, subjobber, vendor, manufacturer, or manufacturer's <br/>
<a id="pl.91.26"></a><var>91.26</var>representative of cigarettes, on the stamped cigarettes and unaffixed stamps in the person's <br/>
<a id="pl.91.27"></a><var>91.27</var>possession or under the person's control at 12:01 a.m. on July 1, 2013. The tax is imposed <br/>
<a id="pl.91.28"></a><var>91.28</var>at the following rates:<br/>
<a id="pl.91.29"></a><var>91.29</var>(1) on cigarettes weighing not more than three pounds per thousand, 47 mills on <br/>
<a id="pl.91.30"></a><var>91.30</var>each cigarette; and<br/>
<a id="pl.91.31"></a><var>91.31</var>(2) on cigarettes weighing more than three pounds per thousand, 94 mills on each <br/>
<a id="pl.91.32"></a><var>91.32</var>cigarette.<br/>
<a id="pl.92.1"></a><var>92.1</var>(b) Each distributor, on or before July 10, 2013, shall file a return with the <br/>
<a id="pl.92.2"></a><var>92.2</var>commissioner of revenue, in the form the commissioner prescribes, showing the stamped <br/>
<a id="pl.92.3"></a><var>92.3</var>cigarettes and unaffixed stamps on hand at 12:01 a.m. on July 1, 2013, and the amount of <br/>
<a id="pl.92.4"></a><var>92.4</var>tax due on the cigarettes and unaffixed stamps.<br/>
<a id="pl.92.5"></a><var>92.5</var>(c) Each retailer, subjobber, vendor, manufacturer, or manufacturer's representative, <br/>
<a id="pl.92.6"></a><var>92.6</var>on or before July 31, 2013, shall file a return with the commissioner of revenue, in the <br/>
<a id="pl.92.7"></a><var>92.7</var>form the commissioner prescribes, showing the cigarettes on hand at 12:01 a.m. on July 1, <br/>
<a id="pl.92.8"></a><var>92.8</var>2013, and the amount of tax due on the cigarettes.<br/>
<a id="pl.92.9"></a><var>92.9</var>(d) The tax imposed by this section is due and payable on or before September 4, <br/>
<a id="pl.92.10"></a><var>92.10</var>2013, and after that date bears interest at the rate of one percent per month.<br/>
<a id="pl.92.11"></a><var>92.11</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.4.46.0"></a><a id="pl.92.12"></a><var>92.12</var>    Sec. 46. <b>TAXES AND FEES PAID BY INDIANS AND INDIAN TRIBES.</b><br/>
<a id="pl.92.13"></a><var>92.13</var>    Subdivision 1. <b>Health impact fees imposed from 2005 through 2009.</b> (a) The <br/>
<a id="pl.92.14"></a><var>92.14</var>commissioner of revenue shall recompute all cigarette and tobacco products excise tax <br/>
<a id="pl.92.15"></a><var>92.15</var>refunds and payments for periods after July 31, 2005, but before January 1, 2010, that <br/>
<a id="pl.92.16"></a><var>92.16</var>were made to Indian tribes under agreements entered into under Minnesota Statutes, <br/>
<a id="pl.92.17"></a><var>92.17</var>section 270C.19.<br/>
<a id="pl.92.18"></a><var>92.18</var>(b) In making the recomputation for each year, the commissioner must (1) use a per <br/>
<a id="pl.92.19"></a><var>92.19</var>capita amount, as that phrase is used in the agreements, equal to the sum of (i) the average <br/>
<a id="pl.92.20"></a><var>92.20</var>statewide per capita cigarette and tobacco products excise tax paid during the applicable <br/>
<a id="pl.92.21"></a><var>92.21</var>state fiscal year plus (ii) the statewide average per capita health impact fee paid on cigarette <br/>
<a id="pl.92.22"></a><var>92.22</var>and tobacco products during the applicable state fiscal year, and (2) add the health impact <br/>
<a id="pl.92.23"></a><var>92.23</var>fees collected on cigarettes and tobacco products delivered onto the reservation to the total <br/>
<a id="pl.92.24"></a><var>92.24</var>cigarette and tobacco products excise tax collected on cigarettes and tobacco products <br/>
<a id="pl.92.25"></a><var>92.25</var>delivered onto the reservation to determine the tax base to share under the agreements.<br/>
<a id="pl.92.26"></a><var>92.26</var>(c) The additional payments to each tribe payable under this section are equal to the <br/>
<a id="pl.92.27"></a><var>92.27</var>amount determined under the recomputation for the tribe minus the amount previously <br/>
<a id="pl.92.28"></a><var>92.28</var>paid as a cigarette and tobacco products excise tax or health impact fee refund or payment <br/>
<a id="pl.92.29"></a><var>92.29</var>to the tribe under any agreement entered into under Minnesota Statutes, section 270C.19.<br/>
<a id="pl.92.30"></a><var>92.30</var>(d) The commissioner shall compute the additional payments required under this <br/>
<a id="pl.92.31"></a><var>92.31</var>section based on information available to the commissioner. The tribe does not need to <br/>
<a id="pl.92.32"></a><var>92.32</var>file a claim for payment.<br/>
<a id="pl.92.33"></a><var>92.33</var>(e) The additional payments under this subdivision must only be paid to a tribe that <br/>
<a id="pl.92.34"></a><var>92.34</var>has entered into an agreement under Minnesota Statutes, section 270C.19, subdivision 5, <br/>
<a id="pl.93.1"></a><var>93.1</var>that covers health impact fees imposed on cigarettes and tobacco products delivered onto <br/>
<a id="pl.93.2"></a><var>93.2</var>the reservation after December 31, 2009.<br/>
<a id="pl.93.3"></a><var>93.3</var>    Subd. 2. <b>Limited authority to enter into health impact fee agreements.</b> (a) <br/>
<a id="pl.93.4"></a><var>93.4</var>Notwithstanding Minnesota Statutes, section 270C.19, or any other law, the commissioner <br/>
<a id="pl.93.5"></a><var>93.5</var>must not enter into any agreement covering health impact fees imposed on cigarettes and <br/>
<a id="pl.93.6"></a><var>93.6</var>tobacco products sold, purchased, or delivered onto a reservation before January 1, 2010.<br/>
<a id="pl.93.7"></a><var>93.7</var>(b) Notwithstanding Minnesota Statutes, section 270C.19, or any other law, the <br/>
<a id="pl.93.8"></a><var>93.8</var>commissioner is not authorized to enter into any agreement covering the health impact <br/>
<a id="pl.93.9"></a><var>93.9</var>fee imposed on cigarettes and tobacco products sold, purchased, or delivered onto a <br/>
<a id="pl.93.10"></a><var>93.10</var>reservation after December 31, 2009.<br/>
<a id="pl.93.11"></a><var>93.11</var>    Subd. 3. <b>Payments to tribes under existing agreements.</b> (a) The commissioner <br/>
<a id="pl.93.12"></a><var>93.12</var>must not make refunds and payments of health impact fees required under any agreement <br/>
<a id="pl.93.13"></a><var>93.13</var>entered into under Minnesota Statutes, section 270C.19, subdivision 5, for any period after <br/>
<a id="pl.93.14"></a><var>93.14</var>the health impact fee has been repealed.<br/>
<a id="pl.93.15"></a><var>93.15</var>(b) The commissioner must adjust all annual cigarette and tobacco products excise <br/>
<a id="pl.93.16"></a><var>93.16</var>tax per capita amounts under existing tax agreements entered into under Minnesota <br/>
<a id="pl.93.17"></a><var>93.17</var>Statutes, section 270C.19, subdivisions 1 and 2, to $95, effective for refunds due for the <br/>
<a id="pl.93.18"></a><var>93.18</var>quarter ending September 30, 2013. This amount may be changed upon mutual agreement <br/>
<a id="pl.93.19"></a><var>93.19</var>of the parties to the agreement to more accurately reflect taxes paid on the reservation <br/>
<a id="pl.93.20"></a><var>93.20</var>by tribal members.<br/>
<a id="pl.93.21"></a><var>93.21</var>    Subd. 4. <b>Appropriation.</b> An amount necessary to make refunds and payments <br/>
<a id="pl.93.22"></a><var>93.22</var>under this section is appropriated to the commissioner from the general fund.<br/>
<a id="pl.93.23"></a><var>93.23</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment, <br/>
<a id="pl.93.24"></a><var>93.24</var>except that subdivision 2, paragraph (b), is effective January 2, 2014.<br/>
<br/>
<a id="bill.4.47.0"></a><a id="pl.93.25"></a><var>93.25</var>    Sec. 47. <b>REPORT.</b><br/>
<a id="pl.93.26"></a><var>93.26</var>On or before June 30, 2016, and every four years thereafter, the commissioner of <br/>
<a id="pl.93.27"></a><var>93.27</var>transportation, in consultation with the commissioner of revenue, shall prepare and submit <br/>
<a id="pl.93.28"></a><var>93.28</var>to the chairs and ranking minority members of the senate and house of representatives <br/>
<a id="pl.93.29"></a><var>93.29</var>committees with jurisdiction over transportation policy and budget, a report that identifies <br/>
<a id="pl.93.30"></a><var>93.30</var>the amount and sources of annual revenues attributable to each type of aviation tax, along <br/>
<a id="pl.93.31"></a><var>93.31</var>with annual expenditures from the state airports fund, and any other transfers out of the <br/>
<a id="pl.93.32"></a><var>93.32</var>fund, during the previous four years. The report must include draft legislation for any <br/>
<a id="pl.93.33"></a><var>93.33</var>recommended statutory changes to ensure the future adequacy of the state airports fund.<br/>
<a id="pl.94.1"></a><var>94.1</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2014, and applies to aircraft <br/>
<a id="pl.94.2"></a><var>94.2</var>tax due on or after that date.<br/>
<br/>
<a id="bill.4.48.0"></a><a id="pl.94.3"></a><var>94.3</var>    Sec. 48. <b>ARMER GRANTS.</b><br/>
<a id="pl.94.4"></a><var>94.4</var>$1,500,000 in fiscal year 2014 and $1,500,000 in fiscal year 2015 is appropriated <br/>
<a id="pl.94.5"></a><var>94.5</var>from the 911 account of the state government special revenue fund to the commissioner of <br/>
<a id="pl.94.6"></a><var>94.6</var>public safety for grants to counties to reimburse for the sales tax costs associated with <br/>
<a id="pl.94.7"></a><var>94.7</var>upgrading public safety radio systems prior to January 1, 2013. The commissioner of <br/>
<a id="pl.94.8"></a><var>94.8</var>public safety shall give preference to counties that did not receive state or federal grants to <br/>
<a id="pl.94.9"></a><var>94.9</var>upgrade their public safety radio systems. This is a onetime appropriation.<br/>
<a id="pl.94.10"></a><var>94.10</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2014.<br/>
<br/>
<a id="bill.4.49.0"></a><a id="pl.94.11"></a><var>94.11</var>    Sec. 49. <b>TOBACCO TAX COLLECTION REPORT.</b><br/>
<a id="pl.94.12"></a><var>94.12</var>    Subdivision 1. <b>Report to legislature.</b> (a) The commissioner of revenue shall report <br/>
<a id="pl.94.13"></a><var>94.13</var>to the 2014 legislature on the tobacco tax collection system, including recommendations <br/>
<a id="pl.94.14"></a><var>94.14</var>to improve compliance under the excise tax for both cigarettes and other tobacco products. <br/>
<a id="pl.94.15"></a><var>94.15</var>The purpose of the report is to provide information and guidance to the legislature on <br/>
<a id="pl.94.16"></a><var>94.16</var>improvements to the tobacco tax collection system to:<br/>
<a id="pl.94.17"></a><var>94.17</var>(1) provide a unified system of collecting both the cigarette and other tobacco <br/>
<a id="pl.94.18"></a><var>94.18</var>taxes, regardless of category, size, or shape, that ensures the highest reasonable rates of <br/>
<a id="pl.94.19"></a><var>94.19</var>tax collection;<br/>
<a id="pl.94.20"></a><var>94.20</var>(2) discourage tax evasion; and<br/>
<a id="pl.94.21"></a><var>94.21</var>(3) help to prevent illegal sale of tobacco products, which may make these products <br/>
<a id="pl.94.22"></a><var>94.22</var>more accessible to youth.<br/>
<a id="pl.94.23"></a><var>94.23</var>(b) In the report, the commissioner shall:<br/>
<a id="pl.94.24"></a><var>94.24</var>(1) provide a detailed review of the present excise tax collection and compliance <br/>
<a id="pl.94.25"></a><var>94.25</var>system as it applies to both cigarettes and other tobacco products. This must include <br/>
<a id="pl.94.26"></a><var>94.26</var>an assessment of the levels of compliance for each category of products and the effect <br/>
<a id="pl.94.27"></a><var>94.27</var>of the stamping requirement on compliance for each category of products and the effect <br/>
<a id="pl.94.28"></a><var>94.28</var>of the stamping requirement on compliance rates for cigarettes relative to other tobacco <br/>
<a id="pl.94.29"></a><var>94.29</var>products. It also must identify any weaknesses in the system;<br/>
<a id="pl.94.30"></a><var>94.30</var>(2) survey the methods of collection and enforcement used by other states or nations, <br/>
<a id="pl.94.31"></a><var>94.31</var>including identifying and discussing emerging best practices that ensure tracking of both <br/>
<a id="pl.94.32"></a><var>94.32</var>cigarettes and other tobacco products and result in the highest rates of tax collection and <br/>
<a id="pl.94.33"></a><var>94.33</var>compliance. These best practices must consider high-technology alternatives, such as use <br/>
<a id="pl.95.1"></a><var>95.1</var>of bar codes, radio-frequency identification tags, or similar mechanisms for tracking <br/>
<a id="pl.95.2"></a><var>95.2</var>compliance;<br/>
<a id="pl.95.3"></a><var>95.3</var>(3) evaluate the adequacy and effectiveness of the existing penalties and other <br/>
<a id="pl.95.4"></a><var>95.4</var>sanctions for noncompliance;<br/>
<a id="pl.95.5"></a><var>95.5</var>(4) evaluate the adequacy of the resources allocated by the state to enforce the <br/>
<a id="pl.95.6"></a><var>95.6</var>tobacco tax and prevention laws; and<br/>
<a id="pl.95.7"></a><var>95.7</var>(5) make recommendations on implementation of a comprehensive tobacco tax <br/>
<a id="pl.95.8"></a><var>95.8</var>collection system for Minnesota that can be implemented by January 1, 2014, including:<br/>
<a id="pl.95.9"></a><var>95.9</var>(i) recommendations on the specific steps needed to institute and implement the new <br/>
<a id="pl.95.10"></a><var>95.10</var>system, including estimates of the state's costs of doing so and any additional personnel <br/>
<a id="pl.95.11"></a><var>95.11</var>requirements;<br/>
<a id="pl.95.12"></a><var>95.12</var>(ii) recommendations on methods to recover the cost of implementing the system <br/>
<a id="pl.95.13"></a><var>95.13</var>from the industry;<br/>
<a id="pl.95.14"></a><var>95.14</var>(iii) evaluation of the extent to which the proposed system is sufficiently flexible <br/>
<a id="pl.95.15"></a><var>95.15</var>and adaptable to adjust to modifications in the construction, packaging, formatting, and <br/>
<a id="pl.95.16"></a><var>95.16</var>marketing of tobacco products by the industry; and<br/>
<a id="pl.95.17"></a><var>95.17</var>(iv) recommendations to modify existing penalties or to impose new penalties or <br/>
<a id="pl.95.18"></a><var>95.18</var>other sanctions to ensure compliance with the system.<br/>
<a id="pl.95.19"></a><var>95.19</var>    Subd. 2. <b>Due date.</b> The report required by subdivision 1 is due January 1, 2014.<br/>
<a id="pl.95.20"></a><var>95.20</var>    Subd. 3. <b>Procedure.</b> The report required under this section must be made in the <br/>
<a id="pl.95.21"></a><var>95.21</var>manner provided under Minnesota Statutes, section 3.195. In addition, copies must be <br/>
<a id="pl.95.22"></a><var>95.22</var>provided to the chairs and ranking minority members of the legislative committees and <br/>
<a id="pl.95.23"></a><var>95.23</var>divisions with jurisdiction over taxation.<br/>
<a id="pl.95.24"></a><var>95.24</var>    Subd. 4. <b>Appropriation.</b> (a) $100,000 is appropriated from the general fund to the <br/>
<a id="pl.95.25"></a><var>95.25</var>commissioner of revenue for fiscal year 2014 for the cost of preparing the report under <br/>
<a id="pl.95.26"></a><var>95.26</var>subdivision 1.<br/>
<a id="pl.95.27"></a><var>95.27</var>(b) The appropriation under this subdivision is a onetime appropriation and is not <br/>
<a id="pl.95.28"></a><var>95.28</var>included in the base budget.<br/>
<a id="pl.95.29"></a><var>95.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.50.0"></a><a id="pl.95.30"></a><var>95.30</var>    Sec. 50. <b> REPEALER.</b><br/>
<a id="pl.95.31"></a><var>95.31</var>Minnesota Statutes 2012, sections 16A.725; 256.9658; 290.171; 290.173; and <br/>
<a id="pl.95.32"></a><var>95.32</var>290.174, are repealed.<br/>
<a id="pl.95.33"></a><var>95.33</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.5.0.0"></a>

<a id="bill.5.1.0"></a><a id="pl.96.3"></a><var>96.3</var>    Section 1. <b>[116J.3738] QUALIFIED EXPANSIONS OF GREATER MINNESOTA </b><br/>
<a id="pl.96.4"></a><var>96.4</var><b>BUSINESSES.</b><br/>
<a id="pl.96.5"></a><var>96.5</var>    Subdivision 1. <b>Definitions.</b> (a) For purposes of this section, the following terms <br/>
<a id="pl.96.6"></a><var>96.6</var>have the meanings given unless the context clearly indicates otherwise.<br/>
<a id="pl.96.7"></a><var>96.7</var>(b) "Agricultural processing facility" means one or more facilities or operations <br/>
<a id="pl.96.8"></a><var>96.8</var>that transform, package, sort, or grade livestock or livestock products, agricultural <br/>
<a id="pl.96.9"></a><var>96.9</var>commodities, or plants or plant products into goods that are used for intermediate or final <br/>
<a id="pl.96.10"></a><var>96.10</var>consumption including goods for nonfood use, and surrounding property. <br/>
<a id="pl.96.11"></a><var>96.11</var>(c) "Business" means an individual, corporation, partnership, limited liability <br/>
<a id="pl.96.12"></a><var>96.12</var>company, association, or any other entity engaged in operating a trade or business located <br/>
<a id="pl.96.13"></a><var>96.13</var>in greater Minnesota.<br/>
<a id="pl.96.14"></a><var>96.14</var>(d) "City" means a statutory or home rule charter city.<br/>
<a id="pl.96.15"></a><var>96.15</var>(e) "Greater Minnesota" means the area of the state that excludes the metropolitan <br/>
<a id="pl.96.16"></a><var>96.16</var>area, as defined in section 473.121, subdivision 2.<br/>
<a id="pl.96.17"></a><var>96.17</var>(f) "Qualified business" means a business that satisfies the requirements of subdivision <br/>
<a id="pl.96.18"></a><var>96.18</var>2, has been certified under subdivision 3, and has not been terminated under subdivision 5.<br/>
<a id="pl.96.19"></a><var>96.19</var>    Subd. 2. <b>Qualified business.</b> (a) A business is a qualified business if it satisfies the <br/>
<a id="pl.96.20"></a><var>96.20</var>requirement of this paragraph and is not disqualified under the provisions of paragraph <br/>
<a id="pl.96.21"></a><var>96.21</var>(b). To qualify, the business must:<br/>
<a id="pl.96.22"></a><var>96.22</var>(1) have operated its trade or business in a city or cities in greater Minnesota for at <br/>
<a id="pl.96.23"></a><var>96.23</var>least one year before applying under subdivision 3;<br/>
<a id="pl.96.24"></a><var>96.24</var>(2) pay or agree to pay in the future each employee compensation, including benefits <br/>
<a id="pl.96.25"></a><var>96.25</var>not mandated by law, that on an annualized basis equal at least 120 percent of the federal <br/>
<a id="pl.96.26"></a><var>96.26</var>poverty level for a family of four;<br/>
<a id="pl.96.27"></a><var>96.27</var>(3) plan and agree to expand its employment in one or more cities in greater Minnesota <br/>
<a id="pl.96.28"></a><var>96.28</var>by the minimum number of employees required under subdivision 3, paragraph (c); and<br/>
<a id="pl.96.29"></a><var>96.29</var>(4) received certification from the commissioner under subdivision 3 that it is a <br/>
<a id="pl.96.30"></a><var>96.30</var>qualified business.<br/>
<a id="pl.96.31"></a><var>96.31</var>(b) A business is not a qualified business if it is either:<br/>
<a id="pl.96.32"></a><var>96.32</var>(1) primarily engaged in making retail sales to purchasers who are physically present <br/>
<a id="pl.96.33"></a><var>96.33</var>at the business's location or locations in greater Minnesota; or<br/>
<a id="pl.96.34"></a><var>96.34</var>(2) a public utility, as defined in section 336B.01.<br/>
<a id="pl.97.1"></a><var>97.1</var>(c) The requirements in paragraph (a) that the business' operations and expansion be <br/>
<a id="pl.97.2"></a><var>97.2</var>located in a city do not apply to an agricultural processing facility.<br/>
<a id="pl.97.3"></a><var>97.3</var>    Subd. 3. <b>Certification of qualified business.</b> (a) A business may apply to <br/>
<a id="pl.97.4"></a><var>97.4</var>the commissioner for certification as a qualified business under this section. The <br/>
<a id="pl.97.5"></a><var>97.5</var>commissioner shall specify the form of the application, the manner and times for applying, <br/>
<a id="pl.97.6"></a><var>97.6</var>and the information required to be included in the application. The commissioner may <br/>
<a id="pl.97.7"></a><var>97.7</var>impose an application fee in an amount sufficient to defray the commissioner's cost of <br/>
<a id="pl.97.8"></a><var>97.8</var>processing certifications. A business must file a copy of its application with the chief <br/>
<a id="pl.97.9"></a><var>97.9</var>clerical officer of the city at the same it applies to the commissioner.  For an agricultural <br/>
<a id="pl.97.10"></a><var>97.10</var>processing facility located outside the boundaries of a city, the business must file a copy <br/>
<a id="pl.97.11"></a><var>97.11</var>of the application with the county auditor.<br/>
<a id="pl.97.12"></a><var>97.12</var>(b) The commissioner shall certify each business as a qualified business that:<br/>
<a id="pl.97.13"></a><var>97.13</var>(1) satisfies the requirements of subdivision 2;<br/>
<a id="pl.97.14"></a><var>97.14</var>(2) the commissioner determines would not expand its operations in greater <br/>
<a id="pl.97.15"></a><var>97.15</var>Minnesota without the tax incentives available under subdivision 4; and <br/>
<a id="pl.97.16"></a><var>97.16</var>(3) enters a business subsidy agreement with the commissioner that pledges to <br/>
<a id="pl.97.17"></a><var>97.17</var>satisfy the minimum expansion requirements of paragraph (c) within three years or less <br/>
<a id="pl.97.18"></a><var>97.18</var>following execution of the agreement.<br/>
<a id="pl.97.19"></a><var>97.19</var>The commissioner must act on an application within 60 days after its filing. Failure <br/>
<a id="pl.97.20"></a><var>97.20</var>by the commissioner to take action within the 60-day period is deemed approval of the <br/>
<a id="pl.97.21"></a><var>97.21</var>application.<br/>
<a id="pl.97.22"></a><var>97.22</var>(c) The following minimum expansion requirements apply, based on the number of <br/>
<a id="pl.97.23"></a><var>97.23</var>employees of the business at locations in greater Minnesota:<br/>
<a id="pl.97.24"></a><var>97.24</var>(1) a business that employees 50 or fewer full-time equivalent employees in greater <br/>
<a id="pl.97.25"></a><var>97.25</var>Minnesota when the agreement is executed must increase its employment by five or more <br/>
<a id="pl.97.26"></a><var>97.26</var>full-time equivalent employees;<br/>
<a id="pl.97.27"></a><var>97.27</var>(2) a business that employees more than 50 but fewer than 200 full-time equivalent <br/>
<a id="pl.97.28"></a><var>97.28</var>employees in greater Minnesota when the agreement is executed must increase the number <br/>
<a id="pl.97.29"></a><var>97.29</var>of its full-time equivalent employees in greater Minnesota by at least ten percent; or<br/>
<a id="pl.97.30"></a><var>97.30</var>(3) a business that employees 200 or more full-time equivalent employees in greater <br/>
<a id="pl.97.31"></a><var>97.31</var>Minnesota when the agreement is executed must increase its employment by at least 21 <br/>
<a id="pl.97.32"></a><var>97.32</var>full-time equivalent employees.<br/>
<a id="pl.97.33"></a><var>97.33</var>(d) The city, or a county for an agricultural processing facility located outside the <br/>
<a id="pl.97.34"></a><var>97.34</var>boundaries of a city, in which the business proposes to expand its operations may file <br/>
<a id="pl.97.35"></a><var>97.35</var>comments supporting or opposing the application with the commissioner. The comments <br/>
<a id="pl.97.36"></a><var>97.36</var>must be filed within 30 days after receipt by the city of the application and may include a <br/>
<a id="pl.98.1"></a><var>98.1</var>notice of any contribution the city or county intends to make to encourage or support the <br/>
<a id="pl.98.2"></a><var>98.2</var>business expansion, such as the use of tax increment financing, property tax abatement, <br/>
<a id="pl.98.3"></a><var>98.3</var>additional city or county services, or other financial assistance.<br/>
<a id="pl.98.4"></a><var>98.4</var>(e) Certification of a qualified business is effective for the 12-year period beginning <br/>
<a id="pl.98.5"></a><var>98.5</var>on the first day of the calendar month immediately following execution of the business <br/>
<a id="pl.98.6"></a><var>98.6</var>subsidy agreement.<br/>
<a id="pl.98.7"></a><var>98.7</var>    Subd. 4. <b>Available tax incentives.</b> A qualified business is entitled to one or more <br/>
<a id="pl.98.8"></a><var>98.8</var>of the following tax incentives as provided under its business subsidy agreement with <br/>
<a id="pl.98.9"></a><var>98.9</var>the commissioner:<br/>
<a id="pl.98.10"></a><var>98.10</var>(1) a sales tax exemption, as provided in section 297A.68, subdivision 44, for <br/>
<a id="pl.98.11"></a><var>98.11</var>purchases made during the period the business was certified as a qualified business under <br/>
<a id="pl.98.12"></a><var>98.12</var>this section; and<br/>
<a id="pl.98.13"></a><var>98.13</var>(2) the jobs credit, as provided in section 290.0682, effective for taxable years <br/>
<a id="pl.98.14"></a><var>98.14</var>beginning during a calendar year in which certification of the business as a qualified <br/>
<a id="pl.98.15"></a><var>98.15</var>business applies under this section.<br/>
<a id="pl.98.16"></a><var>98.16</var>    Subd. 5. <b>Termination of status as a qualified business.</b> (a) The commissioner shall <br/>
<a id="pl.98.17"></a><var>98.17</var>put in place a system for monitoring and ensuring that each certified business meets within <br/>
<a id="pl.98.18"></a><var>98.18</var>three years or less the minimum expansion requirement in its business subsidy agreement <br/>
<a id="pl.98.19"></a><var>98.19</var>and continues to satisfy those requirements for the rest of the duration of the certification <br/>
<a id="pl.98.20"></a><var>98.20</var>under subdivision 3. This system must include regular reporting by the business to the <br/>
<a id="pl.98.21"></a><var>98.21</var>commissioner of its baseline and current employment levels and any other information <br/>
<a id="pl.98.22"></a><var>98.22</var>the commissioner determines may be useful to ensure compliance and for legislative <br/>
<a id="pl.98.23"></a><var>98.23</var>evaluation of the effectiveness of the tax incentives.<br/>
<a id="pl.98.24"></a><var>98.24</var>(b) A business ceases to be a qualified business and to qualify for the sales tax <br/>
<a id="pl.98.25"></a><var>98.25</var>exemption under section 297A.68, subdivision 49, under this subdivision upon the earlier <br/>
<a id="pl.98.26"></a><var>98.26</var>of the following dates:<br/>
<a id="pl.98.27"></a><var>98.27</var>(1) the end of the duration of its designation under subdivision 3, paragraph (e), <br/>
<a id="pl.98.28"></a><var>98.28</var>effective as provided under this subdivision or other provision of law for the tax incentive; <br/>
<a id="pl.98.29"></a><var>98.29</var>or<br/>
<a id="pl.98.30"></a><var>98.30</var>(2) the date the commissioner finds that the business has breached its business <br/>
<a id="pl.98.31"></a><var>98.31</var>subsidy agreement and failed to satisfy the minimum expansion required by subdivision 3 <br/>
<a id="pl.98.32"></a><var>98.32</var>and its agreement.<br/>
<a id="pl.98.33"></a><var>98.33</var>(c) A business may contest the commissioner's finding that it breached its business <br/>
<a id="pl.98.34"></a><var>98.34</var>subsidy agreement under paragraph (b), clause (2), under the contested case procedures in <br/>
<a id="pl.98.35"></a><var>98.35</var>the Administrative Procedure Act, chapter 14.<br/>
<a id="pl.99.1"></a><var>99.1</var>(d) The commissioner, after consulting with the commissioner of revenue, may <br/>
<a id="pl.99.2"></a><var>99.2</var>waive a breach of the business subsidy agreement and permit continued receipt of tax <br/>
<a id="pl.99.3"></a><var>99.3</var>incentives, if the commissioner determines that termination of the tax incentives is not in <br/>
<a id="pl.99.4"></a><var>99.4</var>the best interest of the state or the local government units and the business' breach of the <br/>
<a id="pl.99.5"></a><var>99.5</var>agreement is a result of circumstances beyond its control including, but not limited to:<br/>
<a id="pl.99.6"></a><var>99.6</var>(1) a natural disaster;<br/>
<a id="pl.99.7"></a><var>99.7</var>(2) unforeseen industry trends;<br/>
<a id="pl.99.8"></a><var>99.8</var>(3) a decline in economic activity in the overall or greater Minnesota economy; or<br/>
<a id="pl.99.9"></a><var>99.9</var>(4) loss of a major supplier or customer of the business.<br/>
<a id="pl.99.10"></a><var>99.10</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.2.0"></a><a id="pl.99.11"></a><var>99.11</var>    Sec. 2. Minnesota Statutes 2012, section 116J.8737, subdivision 1, is amended to read:<br/>
<a id="pl.99.12"></a><var>99.12</var>    Subdivision 1. <b>Definitions.</b> (a) For the purposes of this section, the following terms <br/>
<a id="pl.99.13"></a><var>99.13</var>have the meanings given.<br/>
<a id="pl.99.14"></a><var>99.14</var>(b) "Qualified small business" means a business that has been certified by the <br/>
<a id="pl.99.15"></a><var>99.15</var>commissioner under subdivision 2.<br/>
<a id="pl.99.16"></a><var>99.16</var>(c) "Qualified investor" means an investor who has been certified by the <br/>
<a id="pl.99.17"></a><var>99.17</var>commissioner under subdivision 3.<br/>
<a id="pl.99.18"></a><var>99.18</var>(d) "Qualified fund" means a pooled angel investment network fund that has been <br/>
<a id="pl.99.19"></a><var>99.19</var>certified by the commissioner under subdivision 4.<br/>
<a id="pl.99.20"></a><var>99.20</var>(e) "Qualified investment" means a cash investment in a qualified small business <br/>
<a id="pl.99.21"></a><var>99.21</var>of a minimum of:<br/>
<a id="pl.99.22"></a><var>99.22</var>(1) $10,000 in a calendar year by a qualified investor; or<br/>
<a id="pl.99.23"></a><var>99.23</var>(2) $30,000 in a calendar year by a qualified fund.<br/>
<a id="pl.99.24"></a><var>99.24</var>A qualified investment must be made in exchange for common stock, a partnership <br/>
<a id="pl.99.25"></a><var>99.25</var>or membership interest, preferred stock, debt with mandatory conversion to equity, or an <br/>
<a id="pl.99.26"></a><var>99.26</var>equivalent ownership interest as determined by the commissioner.<br/>
<a id="pl.99.27"></a><var>99.27</var>(f) "Family" means a family member within the meaning of the Internal Revenue <br/>
<a id="pl.99.28"></a><var>99.28</var>Code, section 267(c)(4).<br/>
<a id="pl.99.29"></a><var>99.29</var>(g) "Pass-through entity" means a corporation that for the applicable taxable year is <br/>
<a id="pl.99.30"></a><var>99.30</var>treated as an S corporation or a general partnership, limited partnership, limited liability <br/>
<a id="pl.99.31"></a><var>99.31</var>partnership, trust, or limited liability company and which for the applicable taxable year is <br/>
<a id="pl.99.32"></a><var>99.32</var>not taxed as a corporation under chapter 290.<br/>
<a id="pl.99.33"></a><var>99.33</var>(h) "Intern" means a student of an accredited institution of higher education, or a <br/>
<a id="pl.99.34"></a><var>99.34</var>former student who has graduated in the past six months from an accredited institution <br/>
<a id="pl.99.35"></a><var>99.35</var>of higher education, who is employed by a qualified small business in a nonpermanent <br/>
<a id="pl.100.1"></a><var>100.1</var>position for a duration of nine months or less that provides training and experience in the <br/>
<a id="pl.100.2"></a><var>100.2</var>primary business activity of the business.<br/>
<a id="pl.100.3"></a><var>100.3</var>(i) "Qualified greater Minnesota business" means a qualified small business that <br/>
<a id="pl.100.4"></a><var>100.4</var>is also certified by the commissioner as a qualified greater Minnesota business under <br/>
<a id="pl.100.5"></a><var>100.5</var>subdivision 2, paragraph (h).<br/>
<a id="pl.100.6"></a><var>100.6</var>(j) "Liquidation event" means a conversion of qualified investment for cash, cash <br/>
<a id="pl.100.7"></a><var>100.7</var>and other consideration, or any other form of equity or debt interest.<br/>
<a id="pl.100.8"></a><var>100.8</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.3.0"></a><a id="pl.100.9"></a><var>100.9</var>    Sec. 3. Minnesota Statutes 2012, section 116J.8737, subdivision 2, is amended to read:<br/>
<a id="pl.100.10"></a><var>100.10</var>    Subd. 2. <b>Certification of qualified small businesses.</b> (a) Businesses may apply <br/>
<a id="pl.100.11"></a><var>100.11</var>to the commissioner for certification as a qualified small business for a calendar year. <br/>
<a id="pl.100.12"></a><var>100.12</var>In addition, the business' application may request certification as a qualified greater <br/>
<a id="pl.100.13"></a><var>100.13</var>Minnesota business under paragraph (h). The application must be in the form and <br/>
<a id="pl.100.14"></a><var>100.14</var>be made under the procedures specified by the commissioner, accompanied by an <br/>
<a id="pl.100.15"></a><var>100.15</var>application fee of $150. Application fees are deposited in the small business investment <br/>
<a id="pl.100.16"></a><var>100.16</var>tax credit administration account in the special revenue fund. The application for <br/>
<a id="pl.100.17"></a><var>100.17</var>certification for 2010 must be made available on the department's Web site by August 1, <br/>
<a id="pl.100.18"></a><var>100.18</var>2010. Applications for subsequent years' certification must be made available on the <br/>
<a id="pl.100.19"></a><var>100.19</var>department's Web site by November 1 of the preceding year.<br/>
<a id="pl.100.20"></a><var>100.20</var>(b) Within 30 days of receiving an application for certification under this <br/>
<a id="pl.100.21"></a><var>100.21</var>subdivision, the commissioner must either certify the business as satisfying the conditions <br/>
<a id="pl.100.22"></a><var>100.22</var>required of a qualified small business or a qualified greater Minnesota business, request <br/>
<a id="pl.100.23"></a><var>100.23</var>additional information from the business, or reject the application for certification. If <br/>
<a id="pl.100.24"></a><var>100.24</var>the commissioner requests additional information from the business, the commissioner <br/>
<a id="pl.100.25"></a><var>100.25</var>must either certify the business or reject the application within 30 days of receiving the <br/>
<a id="pl.100.26"></a><var>100.26</var>additional information. If the commissioner neither certifies the business nor rejects <br/>
<a id="pl.100.27"></a><var>100.27</var>the application within 30 days of receiving the original application or within 30 days of <br/>
<a id="pl.100.28"></a><var>100.28</var>receiving the additional information requested, whichever is later, then the application is <br/>
<a id="pl.100.29"></a><var>100.29</var>deemed rejected, and the commissioner must refund the $150 application fee. A business <br/>
<a id="pl.100.30"></a><var>100.30</var>that applies for certification and is rejected may reapply.<br/>
<a id="pl.100.31"></a><var>100.31</var>(c) To receive certification as a qualified small business, a business must satisfy <br/>
<a id="pl.100.32"></a><var>100.32</var>all of the following conditions:<br/>
<a id="pl.100.33"></a><var>100.33</var>(1) the business has its headquarters in Minnesota;<br/>
<a id="pl.100.34"></a><var>100.34</var>(2) at least 51 percent of the business's employees are employed in Minnesota, and <br/>
<a id="pl.100.35"></a><var>100.35</var>51 percent of the business's total payroll is paid or incurred in the state;<br/>
<a id="pl.101.1"></a><var>101.1</var>(3) the business is engaged in, or is committed to engage in, innovation in Minnesota <br/>
<a id="pl.101.2"></a><var>101.2</var>in one of the following as its primary business activity:<br/>
<a id="pl.101.3"></a><var>101.3</var>(i) using proprietary technology to add value to a product, process, or service in a <br/>
<a id="pl.101.4"></a><var>101.4</var>qualified high-technology field;<br/>
<a id="pl.101.5"></a><var>101.5</var>(ii) researching or developing a proprietary product, process, or service in a qualified <br/>
<a id="pl.101.6"></a><var>101.6</var>high-technology field; or<br/>
<a id="pl.101.7"></a><var>101.7</var>(iii) researching, developing, or producing a new proprietary technology for use in <br/>
<a id="pl.101.8"></a><var>101.8</var>the fields of agriculture, tourism, forestry, mining, manufacturing, or transportation;<br/>
<a id="pl.101.9"></a><var>101.9</var>(4) other than the activities specifically listed in clause (3), the business is not <br/>
<a id="pl.101.10"></a><var>101.10</var>engaged in real estate development, insurance, banking, lending, lobbying, political <br/>
<a id="pl.101.11"></a><var>101.11</var>consulting, information technology consulting, wholesale or retail trade, leisure, <br/>
<a id="pl.101.12"></a><var>101.12</var>hospitality, transportation, construction, ethanol production from corn, or professional <br/>
<a id="pl.101.13"></a><var>101.13</var>services provided by attorneys, accountants, business consultants, physicians, or health <br/>
<a id="pl.101.14"></a><var>101.14</var>care consultants;<br/>
<a id="pl.101.15"></a><var>101.15</var>(5) the business has fewer than 25 employees;<br/>
<a id="pl.101.16"></a><var>101.16</var>(6) the business must pay its employees annual wages of at least 175 percent of the <br/>
<a id="pl.101.17"></a><var>101.17</var>federal poverty guideline for the year for a family of four and must pay its interns annual <br/>
<a id="pl.101.18"></a><var>101.18</var>wages of at least 175 percent of the federal minimum wage used for federally covered <br/>
<a id="pl.101.19"></a><var>101.19</var>employers, except that this requirement must be reduced proportionately for employees <br/>
<a id="pl.101.20"></a><var>101.20</var>and interns who work less than full-time, and does not apply to an executive, officer, or <br/>
<a id="pl.101.21"></a><var>101.21</var>member of the board of the business, or to any employee who owns, controls, or holds <br/>
<a id="pl.101.22"></a><var>101.22</var>power to vote more than 20 percent of the outstanding securities of the business;<br/>
<a id="pl.101.23"></a><var>101.23</var>(7) the business has not been in operation for more than ten years;<br/>
<a id="pl.101.24"></a><var>101.24</var>(8) the business has not previously received private equity investments of more <br/>
<a id="pl.101.25"></a><var>101.25</var>than $4,000,000; and<br/>
<a id="pl.101.26"></a><var>101.26</var>    (9) the business is not an entity disqualified under section 
         <statute_ref>80A.50</statute_ref>, paragraph (b), <br/>
<a id="pl.101.27"></a><var>101.27</var>clause (3); and<br/>
<a id="pl.101.28"></a><var>101.28</var>    (10) the business has not issued securities that are traded on a public exchange.<br/>
<a id="pl.101.29"></a><var>101.29</var>(d) In applying the limit under paragraph (c), clause (5), the employees in all members <br/>
<a id="pl.101.30"></a><var>101.30</var>of the unitary business, as defined in section 
         <statute_ref>290.17, subdivision 4</statute_ref>, must be included.<br/>
<a id="pl.101.31"></a><var>101.31</var>(e) In order for a qualified investment in a business to be eligible for tax credits, the <br/>
<a id="pl.101.32"></a><var>101.32</var>business:<br/>
<a id="pl.101.33"></a><var>101.33</var>(1) the business must have applied for and received certification for the calendar <br/>
<a id="pl.101.34"></a><var>101.34</var>year in which the investment was made prior to the date on which the qualified investment <br/>
<a id="pl.101.35"></a><var>101.35</var>was made;<br/>
<a id="pl.101.36"></a><var>101.36</var>(2) must not have issued securities that are traded on a public exchange;<br/>
<a id="pl.102.1"></a><var>102.1</var>(3) must not issue securities that are traded on a public exchange within 180 days <br/>
<a id="pl.102.2"></a><var>102.2</var>after the date on which the qualified investment was made; and<br/>
<a id="pl.102.3"></a><var>102.3</var>(4) must not have a liquidation event within 180 days after the date on which a <br/>
<a id="pl.102.4"></a><var>102.4</var>qualified investment was made.<br/>
<a id="pl.102.5"></a><var>102.5</var>(f) The commissioner must maintain a list of qualified small businesses and qualified <br/>
<a id="pl.102.6"></a><var>102.6</var>greater Minnesota businesses certified under this subdivision for the calendar year and <br/>
<a id="pl.102.7"></a><var>102.7</var>make the list accessible to the public on the department's Web site.<br/>
<a id="pl.102.8"></a><var>102.8</var>(g) For purposes of this subdivision, the following terms have the meanings given:<br/>
<a id="pl.102.9"></a><var>102.9</var>(1) "qualified high-technology field" includes aerospace, agricultural processing, <br/>
<a id="pl.102.10"></a><var>102.10</var>renewable energy, energy efficiency and conservation, environmental engineering, food <br/>
<a id="pl.102.11"></a><var>102.11</var>technology, cellulosic ethanol, information technology, materials science technology, <br/>
<a id="pl.102.12"></a><var>102.12</var>nanotechnology, telecommunications, biotechnology, medical device products, <br/>
<a id="pl.102.13"></a><var>102.13</var>pharmaceuticals, diagnostics, biologicals, chemistry, veterinary science, and similar <br/>
<a id="pl.102.14"></a><var>102.14</var>fields; and<br/>
<a id="pl.102.15"></a><var>102.15</var>(2) "proprietary technology" means the technical innovations that are unique and <br/>
<a id="pl.102.16"></a><var>102.16</var>legally owned or licensed by a business and includes, without limitation, those innovations <br/>
<a id="pl.102.17"></a><var>102.17</var>that are patented, patent pending, a subject of trade secrets, or copyrighted.; and<br/>
<a id="pl.102.18"></a><var>102.18</var>(3) "greater Minnesota" means the area of Minnesota located outside of the <br/>
<a id="pl.102.19"></a><var>102.19</var>metropolitan area as defined in section 473.121, subdivision 2.<br/>
<a id="pl.102.20"></a><var>102.20</var>(h) To receive certification as a qualified greater Minnesota business, a business must <br/>
<a id="pl.102.21"></a><var>102.21</var>satisfy all of the requirements of paragraph (c) and must satisfy the following conditions:<br/>
<a id="pl.102.22"></a><var>102.22</var>(1) the business has its headquarters in greater Minnesota; and<br/>
<a id="pl.102.23"></a><var>102.23</var>(2) at least 51 percent of the business's employees are employed in greater Minnesota, <br/>
<a id="pl.102.24"></a><var>102.24</var>and 51 percent of the business's total payroll is paid or incurred in greater Minnesota.<br/>
<a id="pl.102.25"></a><var>102.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.4.0"></a><a id="pl.102.26"></a><var>102.26</var>    Sec. 4. Minnesota Statutes 2012, section 116J.8737, subdivision 5, is amended to read:<br/>
<a id="pl.102.27"></a><var>102.27</var>    Subd. 5. <b>Credit allowed.</b> (a) A qualified investor or qualified fund is eligible for a <br/>
<a id="pl.102.28"></a><var>102.28</var>credit equal to 25 percent of the qualified investment in a qualified small business.<br/>
<a id="pl.102.29"></a><var>102.29</var> Investments made by a pass-through entity qualify for a credit only if the entity is a <br/>
<a id="pl.102.30"></a><var>102.30</var>qualified fund. The commissioner must not allocate more than $11,000,000 in credits to <br/>
<a id="pl.102.31"></a><var>102.31</var>qualified investors or qualified funds for taxable years beginning after December 31, 2009, <br/>
<a id="pl.102.32"></a><var>102.32</var>and before January 1, 2011, and must not allocate more than $12,000,000 in credits per <br/>
<a id="pl.102.33"></a><var>102.33</var>year for taxable years beginning after December 31, 2010, and before January 1, 2015<br/>
<a id="pl.102.34"></a><var>102.34</var> 2013, or more than $17,000,000 in credits per year for taxable years beginning after <br/>
<a id="pl.103.1"></a><var>103.1</var>December 31, 2012, and before January 1, 2015. Any portion of a taxable year's credits <br/>
<a id="pl.103.2"></a><var>103.2</var>that is not allocated by the commissioner does not cancel and may be carried forward to <br/>
<a id="pl.103.3"></a><var>103.3</var>subsequent taxable years until all credits have been allocated.<br/>
<a id="pl.103.4"></a><var>103.4</var>(b) The commissioner may not allocate more than a total maximum amount in credits <br/>
<a id="pl.103.5"></a><var>103.5</var>for a taxable year to a qualified investor for the investor's cumulative qualified investments <br/>
<a id="pl.103.6"></a><var>103.6</var>as an individual qualified investor and as an investor in a qualified fund; for married <br/>
<a id="pl.103.7"></a><var>103.7</var>couples filing joint returns the maximum is $250,000, and for all other filers the maximum <br/>
<a id="pl.103.8"></a><var>103.8</var>is $125,000. The commissioner may not allocate more than a total of $1,000,000 in credits <br/>
<a id="pl.103.9"></a><var>103.9</var>over all taxable years for qualified investments in any one qualified small business.<br/>
<a id="pl.103.10"></a><var>103.10</var>(c) The commissioner may not allocate a credit to a qualified investor either as an <br/>
<a id="pl.103.11"></a><var>103.11</var>individual qualified investor or as an investor in a qualified fund if the investor receives <br/>
<a id="pl.103.12"></a><var>103.12</var>more than 50 percent of the investor's gross annual income from the qualified small <br/>
<a id="pl.103.13"></a><var>103.13</var>business in which the qualified investment is proposed. A member of the family of an <br/>
<a id="pl.103.14"></a><var>103.14</var>individual disqualified by this paragraph is not eligible for a credit under this section. For <br/>
<a id="pl.103.15"></a><var>103.15</var>a married couple filing a joint return, the limitations in this paragraph apply collectively <br/>
<a id="pl.103.16"></a><var>103.16</var>to the investor and spouse. For purposes of determining the ownership interest of an <br/>
<a id="pl.103.17"></a><var>103.17</var>investor under this paragraph, the rules under section 267(c) and 267(e) of the Internal <br/>
<a id="pl.103.18"></a><var>103.18</var>Revenue Code apply.<br/>
<a id="pl.103.19"></a><var>103.19</var>(d) Applications for tax credits for 2010 must be made available on the department's <br/>
<a id="pl.103.20"></a><var>103.20</var>Web site by September 1, 2010, and the department must begin accepting applications <br/>
<a id="pl.103.21"></a><var>103.21</var>by September 1, 2010. Applications for subsequent years must be made available by <br/>
<a id="pl.103.22"></a><var>103.22</var>November 1 of the preceding year.<br/>
<a id="pl.103.23"></a><var>103.23</var>(e) Qualified investors and qualified funds must apply to the commissioner for tax <br/>
<a id="pl.103.24"></a><var>103.24</var>credits. Tax credits must be allocated to qualified investors or qualified funds in the order <br/>
<a id="pl.103.25"></a><var>103.25</var>that the tax credit request applications are filed with the department. The commissioner <br/>
<a id="pl.103.26"></a><var>103.26</var>must approve or reject tax credit request applications within 15 days of receiving the <br/>
<a id="pl.103.27"></a><var>103.27</var>application. The investment specified in the application must be made within 60 days of <br/>
<a id="pl.103.28"></a><var>103.28</var>the allocation of the credits. If the investment is not made within 60 days, the credit <br/>
<a id="pl.103.29"></a><var>103.29</var>allocation is canceled and available for reallocation. A qualified investor or qualified fund <br/>
<a id="pl.103.30"></a><var>103.30</var>that fails to invest as specified in the application, within 60 days of allocation of the <br/>
<a id="pl.103.31"></a><var>103.31</var>credits, must notify the commissioner of the failure to invest within five business days of <br/>
<a id="pl.103.32"></a><var>103.32</var>the expiration of the 60-day investment period.<br/>
<a id="pl.103.33"></a><var>103.33</var>(f) All tax credit request applications filed with the department on the same day must <br/>
<a id="pl.103.34"></a><var>103.34</var>be treated as having been filed contemporaneously. If two or more qualified investors or <br/>
<a id="pl.103.35"></a><var>103.35</var>qualified funds file tax credit request applications on the same day, and the aggregate <br/>
<a id="pl.103.36"></a><var>103.36</var>amount of credit allocation claims exceeds the aggregate limit of credits under this section <br/>
<a id="pl.104.1"></a><var>104.1</var>or the lesser amount of credits that remain unallocated on that day, then the credits must <br/>
<a id="pl.104.2"></a><var>104.2</var>be allocated among the qualified investors or qualified funds who filed on that day on a <br/>
<a id="pl.104.3"></a><var>104.3</var>pro rata basis with respect to the amounts claimed. The pro rata allocation for any one <br/>
<a id="pl.104.4"></a><var>104.4</var>qualified investor or qualified fund is the product obtained by multiplying a fraction, <br/>
<a id="pl.104.5"></a><var>104.5</var>the numerator of which is the amount of the credit allocation claim filed on behalf of <br/>
<a id="pl.104.6"></a><var>104.6</var>a qualified investor and the denominator of which is the total of all credit allocation <br/>
<a id="pl.104.7"></a><var>104.7</var>claims filed on behalf of all applicants on that day, by the amount of credits that remain <br/>
<a id="pl.104.8"></a><var>104.8</var>unallocated on that day for the taxable year.<br/>
<a id="pl.104.9"></a><var>104.9</var>(g) A qualified investor or qualified fund, or a qualified small business acting on their <br/>
<a id="pl.104.10"></a><var>104.10</var>behalf, must notify the commissioner when an investment for which credits were allocated <br/>
<a id="pl.104.11"></a><var>104.11</var>has been made, and the taxable year in which the investment was made. A qualified fund <br/>
<a id="pl.104.12"></a><var>104.12</var>must also provide the commissioner with a statement indicating the amount invested by <br/>
<a id="pl.104.13"></a><var>104.13</var>each investor in the qualified fund based on each investor's share of the assets of the <br/>
<a id="pl.104.14"></a><var>104.14</var>qualified fund at the time of the qualified investment. After receiving notification that the <br/>
<a id="pl.104.15"></a><var>104.15</var>investment was made, the commissioner must issue credit certificates for the taxable year <br/>
<a id="pl.104.16"></a><var>104.16</var>in which the investment was made to the qualified investor or, for an investment made by <br/>
<a id="pl.104.17"></a><var>104.17</var>a qualified fund, to each qualified investor who is an investor in the fund. The certificate <br/>
<a id="pl.104.18"></a><var>104.18</var>must state that the credit is subject to revocation if the qualified investor or qualified <br/>
<a id="pl.104.19"></a><var>104.19</var>fund does not hold the investment in the qualified small business for at least three years, <br/>
<a id="pl.104.20"></a><var>104.20</var>consisting of the calendar year in which the investment was made and the two following <br/>
<a id="pl.104.21"></a><var>104.21</var>years. The three-year holding period does not apply if:<br/>
<a id="pl.104.22"></a><var>104.22</var>(1) the investment by the qualified investor or qualified fund becomes worthless <br/>
<a id="pl.104.23"></a><var>104.23</var>before the end of the three-year period;<br/>
<a id="pl.104.24"></a><var>104.24</var>(2) 80 percent or more of the assets of the qualified small business is sold before <br/>
<a id="pl.104.25"></a><var>104.25</var>the end of the three-year period;<br/>
<a id="pl.104.26"></a><var>104.26</var>(3) the qualified small business is sold before the end of the three-year period; or<br/>
<a id="pl.104.27"></a><var>104.27</var>(4) the qualified small business's common stock begins trading on a public exchange <br/>
<a id="pl.104.28"></a><var>104.28</var>before the end of the three-year period.<br/>
<a id="pl.104.29"></a><var>104.29</var>(h) The commissioner must notify the commissioner of revenue of credit certificates <br/>
<a id="pl.104.30"></a><var>104.30</var>issued under this section.<br/>
<a id="pl.104.31"></a><var>104.31</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment for <br/>
<a id="pl.104.32"></a><var>104.32</var>taxable years beginning after December 31, 2012.<br/>
<br/>
<a id="bill.5.5.0"></a><a id="pl.104.33"></a><var>104.33</var>    Sec. 5. Minnesota Statutes 2012, section 116J.8737, is amended by adding a <br/>
<a id="pl.104.34"></a><var>104.34</var>subdivision to read:<br/>
<a id="pl.105.1"></a><var>105.1</var>    Subd. 5a. <b>Promotion of credit in greater Minnesota.</b> (a) By July 1, 2013, the <br/>
<a id="pl.105.2"></a><var>105.2</var>commissioner shall develop a plan to increase awareness of and use of the credit for <br/>
<a id="pl.105.3"></a><var>105.3</var>investments in greater Minnesota businesses with a target goal that a minimum of 30 <br/>
<a id="pl.105.4"></a><var>105.4</var>percent of the credit will be awarded for those investments during the second half <br/>
<a id="pl.105.5"></a><var>105.5</var>of calendar year 2013 and for each full calendar year thereafter. Beginning with the <br/>
<a id="pl.105.6"></a><var>105.6</var>legislative report due on March 15, 2014, under subdivision 9, the commissioner shall <br/>
<a id="pl.105.7"></a><var>105.7</var>report on its plan under this subdivision and the results achieved.<br/>
<a id="pl.105.8"></a><var>105.8</var>(b) If the target goal of 30 percent under paragraph (a) is not achieved for the <br/>
<a id="pl.105.9"></a><var>105.9</var>six-month period ending on December 31, 2013, the credit percentage under subdivision <br/>
<a id="pl.105.10"></a><var>105.10</var>5, paragraph (a), is increased to 40 percent for a qualified investment made after December <br/>
<a id="pl.105.11"></a><var>105.11</var>31, 2013, in a greater Minnesota business. This paragraph does not apply and the credit <br/>
<a id="pl.105.12"></a><var>105.12</var>percentage for all qualified investments is the rate provided under subdivision 5 for any <br/>
<a id="pl.105.13"></a><var>105.13</var>calendar year beginning after a calendar year for which the commissioner determines the <br/>
<a id="pl.105.14"></a><var>105.14</var>30 percent target has been satisfied. The commissioner shall timely post notification of <br/>
<a id="pl.105.15"></a><var>105.15</var>changes in the credit rate under this paragraph on the department's Web site.<br/>
<a id="pl.105.16"></a><var>105.16</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.6.0"></a><a id="pl.105.17"></a><var>105.17</var>    Sec. 6. Minnesota Statutes 2012, section 116J.8737, subdivision 7, is amended to read:<br/>
<a id="pl.105.18"></a><var>105.18</var>    Subd. 7. <b>Revocation of credits.</b> (a) If the commissioner determines that a <br/>
<a id="pl.105.19"></a><var>105.19</var>qualified investor or qualified fund did not meet the three-year holding period required in <br/>
<a id="pl.105.20"></a><var>105.20</var>subdivision 5, paragraph (g), any credit allocated and certified to the investor or fund is <br/>
<a id="pl.105.21"></a><var>105.21</var>revoked and must be repaid by the investor.<br/>
<a id="pl.105.22"></a><var>105.22</var>(b) If the commissioner determines that a business did not meet the employment <br/>
<a id="pl.105.23"></a><var>105.23</var>and payroll requirements in subdivision 2, paragraph (c), clause (2), or paragraph (h), as <br/>
<a id="pl.105.24"></a><var>105.24</var>applicable, in any of the five calendar years following the year in which an investment in the <br/>
<a id="pl.105.25"></a><var>105.25</var>business that qualified for a tax credit under this section was made, the business must repay <br/>
<a id="pl.105.26"></a><var>105.26</var>the following percentage of the credits allowed for qualified investments in the business:<br/>
<table>
<col width="50px"/>
<col width="15"/>
<col width="17.5"/>
<col width="17.5"/>
<col width="15"/>
<tr>
<td><a id="pl.105.27"></a><var>105.27</var><br/>
</td>
<td align="center" colspan="2">Year following the year in which<br/>
</td>
<td align="center" colspan="2">Percentage of credit required<br/>
</td>
</tr>
<tr>
<td><a id="pl.105.28"></a><var>105.28</var><br/>
</td>
<td align="center" colspan="2">the investment was made:<br/>
</td>
<td align="center" colspan="2">to be repaid:<br/>
</td>
</tr>
<tr>
<td><a id="pl.105.29"></a><var>105.29</var><br/>
</td>
<td></td>
<td>First<br/>
</td>
<td align="right">100%<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.105.30"></a><var>105.30</var><br/>
</td>
<td></td>
<td>Second<br/>
</td>
<td align="right">80%<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.105.31"></a><var>105.31</var><br/>
</td>
<td></td>
<td>Third<br/>
</td>
<td align="right">60%<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.105.32"></a><var>105.32</var><br/>
</td>
<td></td>
<td>Fourth<br/>
</td>
<td align="right">40%<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.105.33"></a><var>105.33</var><br/>
</td>
<td></td>
<td>Fifth<br/>
</td>
<td align="right">20%<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.105.34"></a><var>105.34</var><br/>
</td>
<td></td>
<td>Sixth and later<br/>
</td>
<td align="right">0<br/>
</td>
<td></td>
</tr>
</table><a id="pl.105.35"></a><var>105.35</var>(c) The commissioner must notify the commissioner of revenue of every credit <br/>
<a id="pl.105.36"></a><var>105.36</var>revoked and subject to full or partial repayment under this section.<br/>
<a id="pl.106.1"></a><var>106.1</var>(d) For the repayment of credits allowed under this section and section 
         <statute_ref>290.0692</statute_ref>, <br/>
<a id="pl.106.2"></a><var>106.2</var>a qualified small business, qualified investor, or investor in a qualified fund must file an <br/>
<a id="pl.106.3"></a><var>106.3</var>amended return with the commissioner of revenue and pay any amounts required to be <br/>
<a id="pl.106.4"></a><var>106.4</var>repaid within 30 days after becoming subject to repayment under this section.<br/>
<a id="pl.106.5"></a><var>106.5</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.7.0"></a><a id="pl.106.6"></a><var>106.6</var>    Sec. 7. Minnesota Statutes 2012, section 116J.8737, subdivision 9, is amended to read:<br/>
<a id="pl.106.7"></a><var>106.7</var>    Subd. 9. <b>Report to legislature.</b> Beginning in 2011, the commissioner must <br/>
<a id="pl.106.8"></a><var>106.8</var>annually report by March 15 to the chairs and ranking minority members of the legislative <br/>
<a id="pl.106.9"></a><var>106.9</var>committees having jurisdiction over taxes and economic development in the senate and <br/>
<a id="pl.106.10"></a><var>106.10</var>the house of representatives, in compliance with sections 
         <statute_ref>3.195</statute_ref> and 
         <statute_ref>3.197</statute_ref>, on the tax <br/>
<a id="pl.106.11"></a><var>106.11</var>credits issued under this section. The report must include:<br/>
<a id="pl.106.12"></a><var>106.12</var>(1) the number and amount of the credits issued;<br/>
<a id="pl.106.13"></a><var>106.13</var>(2) the recipients of the credits;<br/>
<a id="pl.106.14"></a><var>106.14</var>(3) for each qualified small business, its location, line of business, and if it received <br/>
<a id="pl.106.15"></a><var>106.15</var>an investment resulting in certification of tax credits;<br/>
<a id="pl.106.16"></a><var>106.16</var>(4) the total amount of investment in each qualified small business resulting in <br/>
<a id="pl.106.17"></a><var>106.17</var>certification of tax credits;<br/>
<a id="pl.106.18"></a><var>106.18</var>(5) for each qualified small business that received investments resulting in tax <br/>
<a id="pl.106.19"></a><var>106.19</var>credits, the total amount of additional investment that did not qualify for the tax credit;<br/>
<a id="pl.106.20"></a><var>106.20</var>(6) the number and amount of credits revoked under subdivision 7;<br/>
<a id="pl.106.21"></a><var>106.21</var>(7) the number and amount of credits that are no longer subject to the three-year <br/>
<a id="pl.106.22"></a><var>106.22</var>holding period because of the exceptions under subdivision 5, paragraph (g), clauses <br/>
<a id="pl.106.23"></a><var>106.23</var>(1) to (4); and<br/>
<a id="pl.106.24"></a><var>106.24</var>(8) the number of qualified small businesses that are women or minority-owned; and<br/>
<a id="pl.106.25"></a><var>106.25</var>(9) any other information relevant to evaluating the effect of these credits.<br/>
<a id="pl.106.26"></a><var>106.26</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.8.0"></a><a id="pl.106.27"></a><var>106.27</var>    Sec. 8. Minnesota Statutes 2012, section 116J.8737, subdivision 12, is amended to read:<br/>
<a id="pl.106.28"></a><var>106.28</var>    Subd. 12. <b>Sunset.</b> This section expires for taxable years beginning after December <br/>
<a id="pl.106.29"></a><var>106.29</var>31, 2014 2015, except that reporting requirements under subdivision 6 and revocation <br/>
<a id="pl.106.30"></a><var>106.30</var>of credits under subdivision 7 remain in effect through 2016 2017 for qualified <br/>
<a id="pl.106.31"></a><var>106.31</var>investors and qualified funds, and through 2018 2019 for qualified small businesses, <br/>
<a id="pl.106.32"></a><var>106.32</var>reporting requirements under subdivision 9 remain in effect through 2019 2020, and the <br/>
<a id="pl.106.33"></a><var>106.33</var>appropriation in subdivision 11 remains in effect through 2018 2019.<br/>
<a id="pl.107.1"></a><var>107.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.9.0"></a><a id="pl.107.2"></a><var>107.2</var>    Sec. 9. <b>[136A.129] GREATER MINNESOTA INTERNSHIP PROGRAM.</b><br/>
<a id="pl.107.3"></a><var>107.3</var>    Subdivision 1. <b>Definitions.</b> (a) For the purposes of this section, the terms defined in <br/>
<a id="pl.107.4"></a><var>107.4</var>this subdivision have the meanings given to them.<br/>
<a id="pl.107.5"></a><var>107.5</var>(b) "Eligible employer" means a taxpayer under section 290.01 with employees <br/>
<a id="pl.107.6"></a><var>107.6</var>located in greater Minnesota.<br/>
<a id="pl.107.7"></a><var>107.7</var>(c) "Eligible institution" means a Minnesota public postsecondary institution or a <br/>
<a id="pl.107.8"></a><var>107.8</var>Minnesota private, nonprofit, baccalaureate degree-granting college or university.<br/>
<a id="pl.107.9"></a><var>107.9</var>(d) "Eligible student" means a student enrolled in an eligible institution who has <br/>
<a id="pl.107.10"></a><var>107.10</var>completed one-half of the credits necessary for the respective degree or certification.<br/>
<a id="pl.107.11"></a><var>107.11</var>(e) "Greater Minnesota" means the area of the state outside of the counties of Anoka, <br/>
<a id="pl.107.12"></a><var>107.12</var>Carver, Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, Washington, and <br/>
<a id="pl.107.13"></a><var>107.13</var>Wright.<br/>
<a id="pl.107.14"></a><var>107.14</var>    Subd. 2. <b>Program established.</b> The Office of Higher Education shall administer <br/>
<a id="pl.107.15"></a><var>107.15</var>a greater Minnesota internship program through eligible institutions to provide credit at <br/>
<a id="pl.107.16"></a><var>107.16</var>the eligible institution for internships and tax credits for eligible employers who hire <br/>
<a id="pl.107.17"></a><var>107.17</var>interns for employment in greater Minnesota. The purpose of the program is to encourage <br/>
<a id="pl.107.18"></a><var>107.18</var>Minnesota businesses to:<br/>
<a id="pl.107.19"></a><var>107.19</var>(1) employ and provide valuable experience to Minnesota students; and<br/>
<a id="pl.107.20"></a><var>107.20</var>(2) foster long-term relationships between the students and greater Minnesota <br/>
<a id="pl.107.21"></a><var>107.21</var>employers.<br/>
<a id="pl.107.22"></a><var>107.22</var>    Subd. 3. <b>Program components.</b> (a) An intern must be an eligible student who has <br/>
<a id="pl.107.23"></a><var>107.23</var>been admitted to a major program that is related to the intern experience as determined <br/>
<a id="pl.107.24"></a><var>107.24</var>by the eligible institution.<br/>
<a id="pl.107.25"></a><var>107.25</var>(b) To participate in the program, an eligible institution must:<br/>
<a id="pl.107.26"></a><var>107.26</var>(1) enter into written agreements with eligible employers to provide internships that <br/>
<a id="pl.107.27"></a><var>107.27</var>are at least 12 weeks long and located in greater Minnesota;<br/>
<a id="pl.107.28"></a><var>107.28</var>(2) determine that the work experience of the internship is related to the eligible <br/>
<a id="pl.107.29"></a><var>107.29</var>student's course of study; and<br/>
<a id="pl.107.30"></a><var>107.30</var>(3) provide academic credit for the successful completion of the internship or ensure <br/>
<a id="pl.107.31"></a><var>107.31</var>that it fulfills requirements necessary to complete a vocational technical education program.<br/>
<a id="pl.107.32"></a><var>107.32</var>(c) To participate in the program, an eligible employer must enter into a written <br/>
<a id="pl.107.33"></a><var>107.33</var>agreement with an eligible institution specifying that the intern:<br/>
<a id="pl.107.34"></a><var>107.34</var>(1) would not have been hired without the tax credit described in subdivision 4;<br/>
<a id="pl.108.1"></a><var>108.1</var>(2) did not work for the employer in the same or a similar job prior to entering <br/>
<a id="pl.108.2"></a><var>108.2</var>the agreement;<br/>
<a id="pl.108.3"></a><var>108.3</var>(3) does not replace an existing employee;<br/>
<a id="pl.108.4"></a><var>108.4</var>(4) has not previously participated in the program;<br/>
<a id="pl.108.5"></a><var>108.5</var>(5) will be employed at a location in greater Minnesota;<br/>
<a id="pl.108.6"></a><var>108.6</var>(6) will be paid at least minimum wage for a minimum of 16 hours per week for a <br/>
<a id="pl.108.7"></a><var>108.7</var>period of at least 12 weeks; and<br/>
<a id="pl.108.8"></a><var>108.8</var>(7) will be supervised and evaluated by the employer.<br/>
<a id="pl.108.9"></a><var>108.9</var>(d) Participating eligible institutions and eligible employers must report annually to <br/>
<a id="pl.108.10"></a><var>108.10</var>the office. The report must include at least the following:<br/>
<a id="pl.108.11"></a><var>108.11</var>(1) the number of interns hired;<br/>
<a id="pl.108.12"></a><var>108.12</var>(2) the number of hours and weeks worked by interns; and<br/>
<a id="pl.108.13"></a><var>108.13</var>(3) the compensation paid to interns.<br/>
<a id="pl.108.14"></a><var>108.14</var>(e) An internship required to complete an academic program does not qualify for the <br/>
<a id="pl.108.15"></a><var>108.15</var>greater Minnesota internship program under this section.<br/>
<a id="pl.108.16"></a><var>108.16</var>    Subd. 4. <b>Tax credit allowed.</b> An employer is entitled to a tax credit as provided <br/>
<a id="pl.108.17"></a><var>108.17</var>in section 290.06, subdivision 3b. The office shall allocate tax credits authorized in <br/>
<a id="pl.108.18"></a><var>108.18</var>subdivision 4 to eligible institutions on a first come, first served basis. The office shall <br/>
<a id="pl.108.19"></a><var>108.19</var>determine relevant criteria to allocate the tax credits including the geographic distribution <br/>
<a id="pl.108.20"></a><var>108.20</var>of credits to work locations outside the metropolitan area. Any credits allocated to an <br/>
<a id="pl.108.21"></a><var>108.21</var>institution but not used may be reallocated to eligible institutions. The office shall allocate <br/>
<a id="pl.108.22"></a><var>108.22</var>a portion of the administrative fee under section 290.06, subdivision 36, to participating <br/>
<a id="pl.108.23"></a><var>108.23</var>eligible institutions for their administrative costs.<br/>
<a id="pl.108.24"></a><var>108.24</var>    Subd. 5. <b>Reports to the legislature.</b> (a) By February 1, 2015, the office and the <br/>
<a id="pl.108.25"></a><var>108.25</var>Department of Revenue shall report to the legislature on the greater Minnesota internship <br/>
<a id="pl.108.26"></a><var>108.26</var>program. The report must include at least the following:<br/>
<a id="pl.108.27"></a><var>108.27</var>(1) the number and dollar amount of credits allowed;<br/>
<a id="pl.108.28"></a><var>108.28</var>(2) the number of interns employed under the program; and<br/>
<a id="pl.108.29"></a><var>108.29</var>(3) the cost of administering the program.<br/>
<a id="pl.108.30"></a><var>108.30</var>(b) By February 1, 2016, the office and the Department of Revenue shall report to the <br/>
<a id="pl.108.31"></a><var>108.31</var>legislature with an analysis of the effectiveness of the program in stimulating businesses <br/>
<a id="pl.108.32"></a><var>108.32</var>to hire interns and in assisting participating interns in finding permanent career positions. <br/>
<a id="pl.108.33"></a><var>108.33</var>This report must include the number of students who participated in the program who <br/>
<a id="pl.108.34"></a><var>108.34</var>were subsequently employed full-time by the employer.<br/>
<a id="pl.108.35"></a><var>108.35</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.108.36"></a><var>108.36</var>December 31, 2013.<br/>
<br/>
<a id="bill.5.10.0"></a><a id="pl.109.1"></a><var>109.1</var>    Sec. 10. Minnesota Statutes 2012, section 289A.08, subdivision 3, is amended to read:<br/>
<a id="pl.109.2"></a><var>109.2</var>    Subd. 3. <b>Corporations.</b> (a) A corporation that is subject to the state's jurisdiction to <br/>
<a id="pl.109.3"></a><var>109.3</var>tax under section 
         <statute_ref>290.014, subdivision 5</statute_ref>, must file a return, except that a foreign operating <br/>
<a id="pl.109.4"></a><var>109.4</var>corporation as defined in section 
<statute_ref>290.01, subdivision 6b</statute_ref>, is not required to file a return.<br/>
<a id="pl.109.5"></a><var>109.5</var>(b) Members of a unitary business that are required to file a combined report on one <br/>
<a id="pl.109.6"></a><var>109.6</var>return must designate a member of the unitary business to be responsible for tax matters, <br/>
<a id="pl.109.7"></a><var>109.7</var>including the filing of returns, the payment of taxes, additions to tax, penalties, interest, <br/>
<a id="pl.109.8"></a><var>109.8</var>or any other payment, and for the receipt of refunds of taxes or interest paid in excess of <br/>
<a id="pl.109.9"></a><var>109.9</var>taxes lawfully due. The designated member must be a member of the unitary business that <br/>
<a id="pl.109.10"></a><var>109.10</var>is filing the single combined report and either:<br/>
<a id="pl.109.11"></a><var>109.11</var>(1) a corporation that is subject to the taxes imposed by chapter 290; or<br/>
<a id="pl.109.12"></a><var>109.12</var>(2) a corporation that is not subject to the taxes imposed by chapter 290:<br/>
<a id="pl.109.13"></a><var>109.13</var>(i) Such corporation consents by filing the return as a designated member under this <br/>
<a id="pl.109.14"></a><var>109.14</var>clause to remit taxes, penalties, interest, or additions to tax due from the members of the <br/>
<a id="pl.109.15"></a><var>109.15</var>unitary business subject to tax, and receive refunds or other payments on behalf of other <br/>
<a id="pl.109.16"></a><var>109.16</var>members of the unitary business. The member designated under this clause is a "taxpayer" <br/>
<a id="pl.109.17"></a><var>109.17</var>for the purposes of this chapter and chapter 270C, and is liable for any liability imposed <br/>
<a id="pl.109.18"></a><var>109.18</var>on the unitary business under this chapter and chapter 290.<br/>
<a id="pl.109.19"></a><var>109.19</var>(ii) If the state does not otherwise have the jurisdiction to tax the member designated <br/>
<a id="pl.109.20"></a><var>109.20</var>under this clause, consenting to be the designated member does not create the jurisdiction <br/>
<a id="pl.109.21"></a><var>109.21</var>to impose tax on the designated member, other than as described in item (i).<br/>
<a id="pl.109.22"></a><var>109.22</var>(iii) The member designated under this clause must apply for a business tax account <br/>
<a id="pl.109.23"></a><var>109.23</var>identification number.<br/>
<a id="pl.109.24"></a><var>109.24</var>(c) The commissioner shall adopt rules for the filing of one return on behalf of the <br/>
<a id="pl.109.25"></a><var>109.25</var>members of an affiliated group of corporations that are required to file a combined report. <br/>
<a id="pl.109.26"></a><var>109.26</var>All members of an affiliated group that are required to file a combined report must file one <br/>
<a id="pl.109.27"></a><var>109.27</var>return on behalf of the members of the group under rules adopted by the commissioner.<br/>
<a id="pl.109.28"></a><var>109.28</var>(d) If a corporation claims on a return that it has paid tax in excess of the amount of <br/>
<a id="pl.109.29"></a><var>109.29</var>taxes lawfully due, that corporation must include on that return information necessary for <br/>
<a id="pl.109.30"></a><var>109.30</var>payment of the tax in excess of the amount lawfully due by electronic means.<br/>
<a id="pl.109.31"></a><var>109.31</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.109.32"></a><var>109.32</var>December 31, 2012.<br/>
<br/>
<a id="bill.5.11.0"></a><a id="pl.109.33"></a><var>109.33</var>    Sec. 11. Minnesota Statutes 2012, section 290.01, subdivision 19b, is amended to read:<br/>
<a id="pl.109.34"></a><var>109.34</var>    Subd. 19b. <b>Subtractions from federal taxable income.</b> For individuals, estates, <br/>
<a id="pl.109.35"></a><var>109.35</var>and trusts, there shall be subtracted from federal taxable income:<br/>
<a id="pl.110.1"></a><var>110.1</var>    (1) net interest income on obligations of any authority, commission, or <br/>
<a id="pl.110.2"></a><var>110.2</var>instrumentality of the United States to the extent includable in taxable income for federal <br/>
<a id="pl.110.3"></a><var>110.3</var>income tax purposes but exempt from state income tax under the laws of the United States;<br/>
<a id="pl.110.4"></a><var>110.4</var>    (2) if included in federal taxable income, the amount of any overpayment of income <br/>
<a id="pl.110.5"></a><var>110.5</var>tax to Minnesota or to any other state, for any previous taxable year, whether the amount <br/>
<a id="pl.110.6"></a><var>110.6</var>is received as a refund or as a credit to another taxable year's income tax liability;<br/>
<a id="pl.110.7"></a><var>110.7</var>    (3) the amount paid to others, less the amount used to claim the credit allowed under <br/>
<a id="pl.110.8"></a><var>110.8</var>section 
         <statute_ref>290.0674</statute_ref>, not to exceed $1,625 for each qualifying child in grades kindergarten <br/>
<a id="pl.110.9"></a><var>110.9</var>to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and <br/>
<a id="pl.110.10"></a><var>110.10</var>transportation of each qualifying child in attending an elementary or secondary school <br/>
<a id="pl.110.11"></a><var>110.11</var>situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a <br/>
<a id="pl.110.12"></a><var>110.12</var>resident of this state may legally fulfill the state's compulsory attendance laws, which <br/>
<a id="pl.110.13"></a><var>110.13</var>is not operated for profit, and which adheres to the provisions of the Civil Rights Act <br/>
<a id="pl.110.14"></a><var>110.14</var>of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or <br/>
<a id="pl.110.15"></a><var>110.15</var>tuition as defined in section 
         <statute_ref>290.0674, subdivision 1</statute_ref>, clause (1). As used in this clause, <br/>
<a id="pl.110.16"></a><var>110.16</var>"textbooks" includes books and other instructional materials and equipment purchased <br/>
<a id="pl.110.17"></a><var>110.17</var>or leased for use in elementary and secondary schools in teaching only those subjects <br/>
<a id="pl.110.18"></a><var>110.18</var>legally and commonly taught in public elementary and secondary schools in this state. <br/>
<a id="pl.110.19"></a><var>110.19</var>Equipment expenses qualifying for deduction includes expenses as defined and limited in <br/>
<a id="pl.110.20"></a><var>110.20</var>section 
         <statute_ref>290.0674, subdivision 1</statute_ref>, clause (3). "Textbooks" does not include instructional <br/>
<a id="pl.110.21"></a><var>110.21</var>books and materials used in the teaching of religious tenets, doctrines, or worship, the <br/>
<a id="pl.110.22"></a><var>110.22</var>purpose of which is to instill such tenets, doctrines, or worship, nor does it include books <br/>
<a id="pl.110.23"></a><var>110.23</var>or materials for, or transportation to, extracurricular activities including sporting events, <br/>
<a id="pl.110.24"></a><var>110.24</var>musical or dramatic events, speech activities, driver's education, or similar programs. No <br/>
<a id="pl.110.25"></a><var>110.25</var>deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or <br/>
<a id="pl.110.26"></a><var>110.26</var>the qualifying child's vehicle to provide such transportation for a qualifying child. For <br/>
<a id="pl.110.27"></a><var>110.27</var>purposes of the subtraction provided by this clause, "qualifying child" has the meaning <br/>
<a id="pl.110.28"></a><var>110.28</var>given in section 32(c)(3) of the Internal Revenue Code;<br/>
<a id="pl.110.29"></a><var>110.29</var>    (4) income as provided under section 
         <statute_ref>290.0802</statute_ref>;<br/>
<a id="pl.110.30"></a><var>110.30</var>    (5) to the extent included in federal adjusted gross income, income realized on <br/>
<a id="pl.110.31"></a><var>110.31</var>disposition of property exempt from tax under section 
         <statute_ref>290.491</statute_ref>;<br/>
<a id="pl.110.32"></a><var>110.32</var>    (6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E) <br/>
<a id="pl.110.33"></a><var>110.33</var>of the Internal Revenue Code in determining federal taxable income by an individual <br/>
<a id="pl.110.34"></a><var>110.34</var>who does not itemize deductions for federal income tax purposes for the taxable year, an <br/>
<a id="pl.110.35"></a><var>110.35</var>amount equal to 50 percent of the excess of charitable contributions over $500 allowable <br/>
<a id="pl.111.1"></a><var>111.1</var>as a deduction for the taxable year under section 170(a) of the Internal Revenue Code, <br/>
<a id="pl.111.2"></a><var>111.2</var>under the provisions of Public Law 109-1 and Public Law 111-126;<br/>
<a id="pl.111.3"></a><var>111.3</var>    (7) for individuals who are allowed a federal foreign tax credit for taxes that do not <br/>
<a id="pl.111.4"></a><var>111.4</var>qualify for a credit under section 
         <statute_ref>290.06, subdivision 22</statute_ref>, an amount equal to the carryover <br/>
<a id="pl.111.5"></a><var>111.5</var>of subnational foreign taxes for the taxable year, but not to exceed the total subnational <br/>
<a id="pl.111.6"></a><var>111.6</var>foreign taxes reported in claiming the foreign tax credit. For purposes of this clause, <br/>
<a id="pl.111.7"></a><var>111.7</var>"federal foreign tax credit" means the credit allowed under section 27 of the Internal <br/>
<a id="pl.111.8"></a><var>111.8</var>Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed <br/>
<a id="pl.111.9"></a><var>111.9</var>under section 904(c) of the Internal Revenue Code minus national level foreign taxes to <br/>
<a id="pl.111.10"></a><var>111.10</var>the extent they exceed the federal foreign tax credit;<br/>
<a id="pl.111.11"></a><var>111.11</var>    (8) in each of the five tax years immediately following the tax year in which an <br/>
<a id="pl.111.12"></a><var>111.12</var>addition is required under subdivision 19a, clause (7), or 19c, clause (15) (13), in the case <br/>
<a id="pl.111.13"></a><var>111.13</var>of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the <br/>
<a id="pl.111.14"></a><var>111.14</var>delayed depreciation. For purposes of this clause, "delayed depreciation" means the amount <br/>
<a id="pl.111.15"></a><var>111.15</var>of the addition made by the taxpayer under subdivision 19a, clause (7), or subdivision 19c, <br/>
<a id="pl.111.16"></a><var>111.16</var>clause (15) (13), in the case of a shareholder of an S corporation, minus the positive value <br/>
<a id="pl.111.17"></a><var>111.17</var>of any net operating loss under section 172 of the Internal Revenue Code generated for the <br/>
<a id="pl.111.18"></a><var>111.18</var>tax year of the addition. The resulting delayed depreciation cannot be less than zero;<br/>
<a id="pl.111.19"></a><var>111.19</var>    (9) job opportunity building zone income as provided under section 
         <statute_ref>469.316</statute_ref>;<br/>
<a id="pl.111.20"></a><var>111.20</var>    (10) to the extent included in federal taxable income, the amount of compensation <br/>
<a id="pl.111.21"></a><var>111.21</var>paid to members of the Minnesota National Guard or other reserve components of the <br/>
<a id="pl.111.22"></a><var>111.22</var>United States military for active service, excluding compensation for services performed <br/>
<a id="pl.111.23"></a><var>111.23</var>under the Active Guard Reserve (AGR) program. For purposes of this clause, "active <br/>
<a id="pl.111.24"></a><var>111.24</var>service" means (i) state active service as defined in section 
         <statute_ref>190.05, subdivision 5a</statute_ref>, clause <br/>
<a id="pl.111.25"></a><var>111.25</var>(1); or (ii) federally funded state active service as defined in section 
         <statute_ref>190.05, subdivision <br/>
<a id="pl.111.26"></a><var>111.26</var>5b
         </statute_ref>, but "active service" excludes service performed in accordance with section 
         <statute_ref>190.08, <br/>
<a id="pl.111.27"></a><var>111.27</var>subdivision 3
         </statute_ref>;<br/>
<a id="pl.111.28"></a><var>111.28</var>    (11) to the extent included in federal taxable income, the amount of compensation <br/>
<a id="pl.111.29"></a><var>111.29</var>paid to Minnesota residents who are members of the armed forces of the United States <br/>
<a id="pl.111.30"></a><var>111.30</var>or United Nations for active duty performed under United States Code, title 10; or the <br/>
<a id="pl.111.31"></a><var>111.31</var>authority of the United Nations;<br/>
<a id="pl.111.32"></a><var>111.32</var>    (12) an amount, not to exceed $10,000, equal to qualified expenses related to a <br/>
<a id="pl.111.33"></a><var>111.33</var>qualified donor's donation, while living, of one or more of the qualified donor's organs <br/>
<a id="pl.111.34"></a><var>111.34</var>to another person for human organ transplantation. For purposes of this clause, "organ" <br/>
<a id="pl.111.35"></a><var>111.35</var>means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow; <br/>
<a id="pl.111.36"></a><var>111.36</var>"human organ transplantation" means the medical procedure by which transfer of a human <br/>
<a id="pl.112.1"></a><var>112.1</var>organ is made from the body of one person to the body of another person; "qualified <br/>
<a id="pl.112.2"></a><var>112.2</var>expenses" means unreimbursed expenses for both the individual and the qualified donor <br/>
<a id="pl.112.3"></a><var>112.3</var>for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses <br/>
<a id="pl.112.4"></a><var>112.4</var>may be subtracted under this clause only once; and "qualified donor" means the individual <br/>
<a id="pl.112.5"></a><var>112.5</var>or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An <br/>
<a id="pl.112.6"></a><var>112.6</var>individual may claim the subtraction in this clause for each instance of organ donation for <br/>
<a id="pl.112.7"></a><var>112.7</var>transplantation during the taxable year in which the qualified expenses occur;<br/>
<a id="pl.112.8"></a><var>112.8</var>    (13) in each of the five tax years immediately following the tax year in which an <br/>
<a id="pl.112.9"></a><var>112.9</var>addition is required under subdivision 19a, clause (8), or 19c, clause (16) (14), in the case <br/>
<a id="pl.112.10"></a><var>112.10</var>of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth of <br/>
<a id="pl.112.11"></a><var>112.11</var>the addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (16)<br/>
<a id="pl.112.12"></a><var>112.12</var> (14), in the case of a shareholder of a corporation that is an S corporation, minus the <br/>
<a id="pl.112.13"></a><var>112.13</var>positive value of any net operating loss under section 172 of the Internal Revenue Code <br/>
<a id="pl.112.14"></a><var>112.14</var>generated for the tax year of the addition. If the net operating loss exceeds the addition for <br/>
<a id="pl.112.15"></a><var>112.15</var>the tax year, a subtraction is not allowed under this clause;<br/>
<a id="pl.112.16"></a><var>112.16</var>    (14) to the extent included in the federal taxable income of a nonresident of <br/>
<a id="pl.112.17"></a><var>112.17</var>Minnesota, compensation paid to a service member as defined in United States Code, title <br/>
<a id="pl.112.18"></a><var>112.18</var>10, section 101(a)(5), for military service as defined in the Servicemembers Civil Relief <br/>
<a id="pl.112.19"></a><var>112.19</var>Act, Public Law 108-189, section 101(2);<br/>
<a id="pl.112.20"></a><var>112.20</var>    (15) to the extent included in federal taxable income, the amount of national service <br/>
<a id="pl.112.21"></a><var>112.21</var>educational awards received from the National Service Trust under United States Code, <br/>
<a id="pl.112.22"></a><var>112.22</var>title 42, sections 12601 to 12604, for service in an approved Americorps National Service <br/>
<a id="pl.112.23"></a><var>112.23</var>program;<br/>
<a id="pl.112.24"></a><var>112.24</var>(16) to the extent included in federal taxable income, discharge of indebtedness <br/>
<a id="pl.112.25"></a><var>112.25</var>income resulting from reacquisition of business indebtedness included in federal taxable <br/>
<a id="pl.112.26"></a><var>112.26</var>income under section 108(i) of the Internal Revenue Code. This subtraction applies only <br/>
<a id="pl.112.27"></a><var>112.27</var>to the extent that the income was included in net income in a prior year as a result of the <br/>
<a id="pl.112.28"></a><var>112.28</var>addition under section 
         <statute_ref>290.01, subdivision 19a</statute_ref>, clause (16); and<br/>
<a id="pl.112.29"></a><var>112.29</var>(17) the amount of the net operating loss allowed under section 
         <statute_ref>290.095, subdivision <br/>
<a id="pl.112.30"></a><var>112.30</var>11
         </statute_ref>, paragraph (c); <br/>
<a id="pl.112.31"></a><var>112.31</var>(18) in the year that the expenditures are made for railroad track maintenance, as <br/>
<a id="pl.112.32"></a><var>112.32</var>defined in section 45G(d) of the Internal Revenue Code, in the case of a shareholder of a <br/>
<a id="pl.112.33"></a><var>112.33</var>corporation that is an S corporation or a partner in a partnership, an amount equal to the <br/>
<a id="pl.112.34"></a><var>112.34</var>credit awarded pursuant to section 45G(a) of the Internal Revenue Code. The subtraction <br/>
<a id="pl.112.35"></a><var>112.35</var>shall be reduced to an amount equal to the percentage of the shareholder's or partner's <br/>
<a id="pl.112.36"></a><var>112.36</var>share of the net income of the S corporation or partnership.; and <br/>
<a id="pl.113.1"></a><var>113.1</var>(19) to the extent included in federal taxable income, the previous year's average <br/>
<a id="pl.113.2"></a><var>113.2</var>dental provider's reimbursement from the Minnesota medical assistance program in the <br/>
<a id="pl.113.3"></a><var>113.3</var>taxable year for which the subtraction is claimed multiplied by the dental provider's total <br/>
<a id="pl.113.4"></a><var>113.4</var>number of patients enrolled in the Minnesota medical assistance program for the year, <br/>
<a id="pl.113.5"></a><var>113.5</var>up to $25,000 for a taxable year. For purposes of this clause, "dental provider" means a <br/>
<a id="pl.113.6"></a><var>113.6</var>licensed provider of dental services that treats patients eligible for medical assistance <br/>
<a id="pl.113.7"></a><var>113.7</var>under section 256B.056.<br/>
<a id="pl.113.8"></a><var>113.8</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.113.9"></a><var>113.9</var>December 31, 2012.<br/>
<br/>
<a id="bill.5.12.0"></a><a id="pl.113.10"></a><var>113.10</var>    Sec. 12. Minnesota Statutes 2012, section 290.01, subdivision 19c, is amended to read:<br/>
<a id="pl.113.11"></a><var>113.11</var>    Subd. 19c. <b>Corporations; additions to federal taxable income.</b> For corporations, <br/>
<a id="pl.113.12"></a><var>113.12</var>there shall be added to federal taxable income:<br/>
<a id="pl.113.13"></a><var>113.13</var>    (1) the amount of any deduction taken for federal income tax purposes for income, <br/>
<a id="pl.113.14"></a><var>113.14</var>excise, or franchise taxes based on net income or related minimum taxes, including but not <br/>
<a id="pl.113.15"></a><var>113.15</var>limited to the tax imposed under section 
         <statute_ref>290.0922</statute_ref>, paid by the corporation to Minnesota, <br/>
<a id="pl.113.16"></a><var>113.16</var>another state, a political subdivision of another state, the District of Columbia, or any <br/>
<a id="pl.113.17"></a><var>113.17</var>foreign country or possession of the United States;<br/>
<a id="pl.113.18"></a><var>113.18</var>    (2) interest not subject to federal tax upon obligations of: the United States, its <br/>
<a id="pl.113.19"></a><var>113.19</var>possessions, its agencies, or its instrumentalities; the state of Minnesota or any other <br/>
<a id="pl.113.20"></a><var>113.20</var>state, any of its political or governmental subdivisions, any of its municipalities, or any <br/>
<a id="pl.113.21"></a><var>113.21</var>of its governmental agencies or instrumentalities; the District of Columbia; or Indian <br/>
<a id="pl.113.22"></a><var>113.22</var>tribal governments;<br/>
<a id="pl.113.23"></a><var>113.23</var>    (3) exempt-interest dividends received as defined in section 852(b)(5) of the Internal <br/>
<a id="pl.113.24"></a><var>113.24</var>Revenue Code;<br/>
<a id="pl.113.25"></a><var>113.25</var>    (4) the amount of any net operating loss deduction taken for federal income tax <br/>
<a id="pl.113.26"></a><var>113.26</var>purposes under section 172 or 832(c)(10) of the Internal Revenue Code or operations loss <br/>
<a id="pl.113.27"></a><var>113.27</var>deduction under section 810 of the Internal Revenue Code;<br/>
<a id="pl.113.28"></a><var>113.28</var>    (5) the amount of any special deductions taken for federal income tax purposes <br/>
<a id="pl.113.29"></a><var>113.29</var>under sections 241 to 247 and 965 of the Internal Revenue Code;<br/>
<a id="pl.113.30"></a><var>113.30</var>    (6) losses from the business of mining, as defined in section 
         <statute_ref>290.05, subdivision 1</statute_ref>, <br/>
<a id="pl.113.31"></a><var>113.31</var>clause (a), that are not subject to Minnesota income tax;<br/>
<a id="pl.113.32"></a><var>113.32</var>    (7) the amount of any capital losses deducted for federal income tax purposes under <br/>
<a id="pl.113.33"></a><var>113.33</var>sections 1211 and 1212 of the Internal Revenue Code;<br/>
<a id="pl.113.34"></a><var>113.34</var>    (8) the exempt foreign trade income of a foreign sales corporation under sections <br/>
<a id="pl.113.35"></a><var>113.35</var>921(a) and 291 of the Internal Revenue Code;<br/>
<a id="pl.114.1"></a><var>114.1</var>    (9) the amount of percentage depletion deducted under sections 611 through 614 and <br/>
<a id="pl.114.2"></a><var>114.2</var>291 of the Internal Revenue Code;<br/>
<a id="pl.114.3"></a><var>114.3</var>    (10) for certified pollution control facilities placed in service in a taxable year <br/>
<a id="pl.114.4"></a><var>114.4</var>beginning before December 31, 1986, and for which amortization deductions were elected <br/>
<a id="pl.114.5"></a><var>114.5</var>under section 169 of the Internal Revenue Code of 1954, as amended through December <br/>
<a id="pl.114.6"></a><var>114.6</var>31, 1985, the amount of the amortization deduction allowed in computing federal taxable <br/>
<a id="pl.114.7"></a><var>114.7</var>income for those facilities;<br/>
<a id="pl.114.8"></a><var>114.8</var>    (11) the amount of any deemed dividend from a foreign operating corporation <br/>
<a id="pl.114.9"></a><var>114.9</var>determined pursuant to section 
<statute_ref>290.17, subdivision 4</statute_ref>, paragraph (g). The deemed dividend <br/>
<a id="pl.114.10"></a><var>114.10</var>shall be reduced by the amount of the addition to income required by clauses (20), (21), <br/>
<a id="pl.114.11"></a><var>114.11</var>(22), and (23);<br/>
<a id="pl.114.12"></a><var>114.12</var>    (12) (11) the amount of a partner's pro rata share of net income which does not flow <br/>
<a id="pl.114.13"></a><var>114.13</var>through to the partner because the partnership elected to pay the tax on the income under <br/>
<a id="pl.114.14"></a><var>114.14</var>section 6242(a)(2) of the Internal Revenue Code;<br/>
<a id="pl.114.15"></a><var>114.15</var>    (13) the amount of net income excluded under section 114 of the Internal Revenue <br/>
<a id="pl.114.16"></a><var>114.16</var>Code;<br/>
<a id="pl.114.17"></a><var>114.17</var>    (14) (12) any increase in subpart F income, as defined in section 952(a) of the <br/>
<a id="pl.114.18"></a><var>114.18</var>Internal Revenue Code, for the taxable year when subpart F income is calculated without <br/>
<a id="pl.114.19"></a><var>114.19</var>regard to the provisions of Division C, title III, section 303(b) of Public Law 110-343;<br/>
<a id="pl.114.20"></a><var>114.20</var>    (15) (13) 80 percent of the depreciation deduction allowed under section <br/>
<a id="pl.114.21"></a><var>114.21</var>168(k)(1)(A) and (k)(4)(A) of the Internal Revenue Code. For purposes of this clause, if <br/>
<a id="pl.114.22"></a><var>114.22</var>the taxpayer has an activity that in the taxable year generates a deduction for depreciation <br/>
<a id="pl.114.23"></a><var>114.23</var>under section 168(k)(1)(A) and (k)(4)(A) and the activity generates a loss for the taxable <br/>
<a id="pl.114.24"></a><var>114.24</var>year that the taxpayer is not allowed to claim for the taxable year, "the depreciation <br/>
<a id="pl.114.25"></a><var>114.25</var>allowed under section 168(k)(1)(A) and (k)(4)(A)" for the taxable year is limited to excess <br/>
<a id="pl.114.26"></a><var>114.26</var>of the depreciation claimed by the activity under section 168(k)(1)(A) and (k)(4)(A) <br/>
<a id="pl.114.27"></a><var>114.27</var>over the amount of the loss from the activity that is not allowed in the taxable year. In <br/>
<a id="pl.114.28"></a><var>114.28</var>succeeding taxable years when the losses not allowed in the taxable year are allowed, the <br/>
<a id="pl.114.29"></a><var>114.29</var>depreciation under section 168(k)(1)(A) and (k)(4)(A) is allowed;<br/>
<a id="pl.114.30"></a><var>114.30</var>    (16) (14) 80 percent of the amount by which the deduction allowed by section 179 of <br/>
<a id="pl.114.31"></a><var>114.31</var>the Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal <br/>
<a id="pl.114.32"></a><var>114.32</var>Revenue Code of 1986, as amended through December 31, 2003;<br/>
<a id="pl.114.33"></a><var>114.33</var>    (17) (15) to the extent deducted in computing federal taxable income, the amount of <br/>
<a id="pl.114.34"></a><var>114.34</var>the deduction allowable under section 199 of the Internal Revenue Code;<br/>
<a id="pl.115.1"></a><var>115.1</var>    (18) (16) for taxable years beginning before January 1, 2013, the exclusion allowed <br/>
<a id="pl.115.2"></a><var>115.2</var>under section 139A of the Internal Revenue Code for federal subsidies for prescription <br/>
<a id="pl.115.3"></a><var>115.3</var>drug plans;<br/>
<a id="pl.115.4"></a><var>115.4</var>    (19) (17) the amount of expenses disallowed under section 
         <statute_ref>290.10, subdivision 2</statute_ref>;<br/>
<a id="pl.115.5"></a><var>115.5</var>    (20) an amount equal to the interest and intangible expenses, losses, and costs paid, <br/>
<a id="pl.115.6"></a><var>115.6</var>accrued, or incurred by any member of the taxpayer's unitary group to or for the benefit <br/>
<a id="pl.115.7"></a><var>115.7</var>of a corporation that is a member of the taxpayer's unitary business group that qualifies <br/>
<a id="pl.115.8"></a><var>115.8</var>as a foreign operating corporation. For purposes of this clause, intangible expenses and <br/>
<a id="pl.115.9"></a><var>115.9</var>costs include:<br/>
<a id="pl.115.10"></a><var>115.10</var>    (i) expenses, losses, and costs for, or related to, the direct or indirect acquisition, <br/>
<a id="pl.115.11"></a><var>115.11</var>use, maintenance or management, ownership, sale, exchange, or any other disposition of <br/>
<a id="pl.115.12"></a><var>115.12</var>intangible property;<br/>
<a id="pl.115.13"></a><var>115.13</var>    (ii) losses incurred, directly or indirectly, from factoring transactions or discounting <br/>
<a id="pl.115.14"></a><var>115.14</var>transactions;<br/>
<a id="pl.115.15"></a><var>115.15</var>    (iii) royalty, patent, technical, and copyright fees;<br/>
<a id="pl.115.16"></a><var>115.16</var>    (iv) licensing fees; and<br/>
<a id="pl.115.17"></a><var>115.17</var>    (v) other similar expenses and costs.<br/>
<a id="pl.115.18"></a><var>115.18</var>For purposes of this clause, "intangible property" includes stocks, bonds, patents, patent <br/>
<a id="pl.115.19"></a><var>115.19</var>applications, trade names, trademarks, service marks, copyrights, mask works, trade <br/>
<a id="pl.115.20"></a><var>115.20</var>secrets, and similar types of intangible assets.<br/>
<a id="pl.115.21"></a><var>115.21</var>This clause does not apply to any item of interest or intangible expenses or costs paid, <br/>
<a id="pl.115.22"></a><var>115.22</var>accrued, or incurred, directly or indirectly, to a foreign operating corporation with respect <br/>
<a id="pl.115.23"></a><var>115.23</var>to such item of income to the extent that the income to the foreign operating corporation <br/>
<a id="pl.115.24"></a><var>115.24</var>is income from sources without the United States as defined in subtitle A, chapter 1, <br/>
<a id="pl.115.25"></a><var>115.25</var>subchapter N, part 1, of the Internal Revenue Code;<br/>
<a id="pl.115.26"></a><var>115.26</var>    (21) except as already included in the taxpayer's taxable income pursuant to clause <br/>
<a id="pl.115.27"></a><var>115.27</var>(20), any interest income and income generated from intangible property received or <br/>
<a id="pl.115.28"></a><var>115.28</var>accrued by a foreign operating corporation that is a member of the taxpayer's unitary <br/>
<a id="pl.115.29"></a><var>115.29</var>group. For purposes of this clause, income generated from intangible property includes:<br/>
<a id="pl.115.30"></a><var>115.30</var>    (i) income related to the direct or indirect acquisition, use, maintenance or <br/>
<a id="pl.115.31"></a><var>115.31</var>management, ownership, sale, exchange, or any other disposition of intangible property;<br/>
<a id="pl.115.32"></a><var>115.32</var>    (ii) income from factoring transactions or discounting transactions;<br/>
<a id="pl.115.33"></a><var>115.33</var>    (iii) royalty, patent, technical, and copyright fees;<br/>
<a id="pl.115.34"></a><var>115.34</var>    (iv) licensing fees; and<br/>
<a id="pl.115.35"></a><var>115.35</var>    (v) other similar income.<br/>
<a id="pl.116.1"></a><var>116.1</var>For purposes of this clause, "intangible property" includes stocks, bonds, patents, patent <br/>
<a id="pl.116.2"></a><var>116.2</var>applications, trade names, trademarks, service marks, copyrights, mask works, trade <br/>
<a id="pl.116.3"></a><var>116.3</var>secrets, and similar types of intangible assets.<br/>
<a id="pl.116.4"></a><var>116.4</var>This clause does not apply to any item of interest or intangible income received or accrued <br/>
<a id="pl.116.5"></a><var>116.5</var>by a foreign operating corporation with respect to such item of income to the extent that <br/>
<a id="pl.116.6"></a><var>116.6</var>the income is income from sources without the United States as defined in subtitle A, <br/>
<a id="pl.116.7"></a><var>116.7</var>chapter 1, subchapter N, part 1, of the Internal Revenue Code;<br/>
<a id="pl.116.8"></a><var>116.8</var>    (22) the dividends attributable to the income of a foreign operating corporation that <br/>
<a id="pl.116.9"></a><var>116.9</var>is a member of the taxpayer's unitary group in an amount that is equal to the dividends <br/>
<a id="pl.116.10"></a><var>116.10</var>paid deduction of a real estate investment trust under section 561(a) of the Internal <br/>
<a id="pl.116.11"></a><var>116.11</var>Revenue Code for amounts paid or accrued by the real estate investment trust to the <br/>
<a id="pl.116.12"></a><var>116.12</var>foreign operating corporation;<br/>
<a id="pl.116.13"></a><var>116.13</var>    (23) the income of a foreign operating corporation that is a member of the taxpayer's <br/>
<a id="pl.116.14"></a><var>116.14</var>unitary group in an amount that is equal to gains derived from the sale of real or personal <br/>
<a id="pl.116.15"></a><var>116.15</var>property located in the United States;<br/>
<a id="pl.116.16"></a><var>116.16</var>    (24) (18) for taxable years beginning before January 1, 2010, the additional amount <br/>
<a id="pl.116.17"></a><var>116.17</var>allowed as a deduction for donation of computer technology and equipment under section <br/>
<a id="pl.116.18"></a><var>116.18</var>170(e)(6) of the Internal Revenue Code, to the extent deducted from taxable income; and<br/>
<a id="pl.116.19"></a><var>116.19</var>(25) (19) discharge of indebtedness income resulting from reacquisition of business <br/>
<a id="pl.116.20"></a><var>116.20</var>indebtedness and deferred under section 108(i) of the Internal Revenue Code.<br/>
<a id="pl.116.21"></a><var>116.21</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.116.22"></a><var>116.22</var>December 31, 2012.<br/>
<br/>
<a id="bill.5.13.0"></a><a id="pl.116.23"></a><var>116.23</var>    Sec. 13. Minnesota Statutes 2012, section 290.01, subdivision 19d, is amended to read:<br/>
<a id="pl.116.24"></a><var>116.24</var>    Subd. 19d. <b>Corporations; modifications decreasing federal taxable income.</b> For <br/>
<a id="pl.116.25"></a><var>116.25</var>corporations, there shall be subtracted from federal taxable income after the increases <br/>
<a id="pl.116.26"></a><var>116.26</var>provided in subdivision 19c:<br/>
<a id="pl.116.27"></a><var>116.27</var>    (1) the amount of foreign dividend gross-up added to gross income for federal <br/>
<a id="pl.116.28"></a><var>116.28</var>income tax purposes under section 78 of the Internal Revenue Code;<br/>
<a id="pl.116.29"></a><var>116.29</var>    (2) the amount of salary expense not allowed for federal income tax purposes due to <br/>
<a id="pl.116.30"></a><var>116.30</var>claiming the work opportunity credit under section 51 of the Internal Revenue Code;<br/>
<a id="pl.116.31"></a><var>116.31</var>    (3) any dividend (not including any distribution in liquidation) paid within the <br/>
<a id="pl.116.32"></a><var>116.32</var>taxable year by a national or state bank to the United States, or to any instrumentality of <br/>
<a id="pl.116.33"></a><var>116.33</var>the United States exempt from federal income taxes, on the preferred stock of the bank <br/>
<a id="pl.116.34"></a><var>116.34</var>owned by the United States or the instrumentality;<br/>
<a id="pl.117.1"></a><var>117.1</var>    (4) amounts disallowed for intangible drilling costs due to differences between <br/>
<a id="pl.117.2"></a><var>117.2</var>this chapter and the Internal Revenue Code in taxable years beginning before January <br/>
<a id="pl.117.3"></a><var>117.3</var>1, 1987, as follows:<br/>
<a id="pl.117.4"></a><var>117.4</var>    (i) to the extent the disallowed costs are represented by physical property, an amount <br/>
<a id="pl.117.5"></a><var>117.5</var>equal to the allowance for depreciation under Minnesota Statutes 1986, section 
         <statute_ref>290.09, <br/>
<a id="pl.117.6"></a><var>117.6</var>subdivision 7
         </statute_ref>, subject to the modifications contained in subdivision 19e; and<br/>
<a id="pl.117.7"></a><var>117.7</var>    (ii) to the extent the disallowed costs are not represented by physical property, an <br/>
<a id="pl.117.8"></a><var>117.8</var>amount equal to the allowance for cost depletion under Minnesota Statutes 1986, section <br/>
<statute_ref><a id="pl.117.9"></a><var>117.9</var>290.09, subdivision 8
         </statute_ref>;<br/>
<a id="pl.117.10"></a><var>117.10</var>    (5) the deduction for capital losses pursuant to sections 1211 and 1212 of the <br/>
<a id="pl.117.11"></a><var>117.11</var>Internal Revenue Code, except that:<br/>
<a id="pl.117.12"></a><var>117.12</var>    (i) for capital losses incurred in taxable years beginning after December 31, 1986, <br/>
<a id="pl.117.13"></a><var>117.13</var>capital loss carrybacks shall not be allowed;<br/>
<a id="pl.117.14"></a><var>117.14</var>    (ii) for capital losses incurred in taxable years beginning after December 31, 1986, <br/>
<a id="pl.117.15"></a><var>117.15</var>a capital loss carryover to each of the 15 taxable years succeeding the loss year shall be <br/>
<a id="pl.117.16"></a><var>117.16</var>allowed;<br/>
<a id="pl.117.17"></a><var>117.17</var>    (iii) for capital losses incurred in taxable years beginning before January 1, 1987, a <br/>
<a id="pl.117.18"></a><var>117.18</var>capital loss carryback to each of the three taxable years preceding the loss year, subject to <br/>
<a id="pl.117.19"></a><var>117.19</var>the provisions of Minnesota Statutes 1986, section 
         <statute_ref>290.16</statute_ref>, shall be allowed; and<br/>
<a id="pl.117.20"></a><var>117.20</var>    (iv) for capital losses incurred in taxable years beginning before January 1, 1987, <br/>
<a id="pl.117.21"></a><var>117.21</var>a capital loss carryover to each of the five taxable years succeeding the loss year to the <br/>
<a id="pl.117.22"></a><var>117.22</var>extent such loss was not used in a prior taxable year and subject to the provisions of <br/>
<a id="pl.117.23"></a><var>117.23</var>Minnesota Statutes 1986, section 
         <statute_ref>290.16</statute_ref>, shall be allowed;<br/>
<a id="pl.117.24"></a><var>117.24</var>    (6) an amount for interest and expenses relating to income not taxable for federal <br/>
<a id="pl.117.25"></a><var>117.25</var>income tax purposes, if (i) the income is taxable under this chapter and (ii) the interest and <br/>
<a id="pl.117.26"></a><var>117.26</var>expenses were disallowed as deductions under the provisions of section 171(a)(2), 265 or <br/>
<a id="pl.117.27"></a><var>117.27</var>291 of the Internal Revenue Code in computing federal taxable income;<br/>
<a id="pl.117.28"></a><var>117.28</var>    (7) in the case of mines, oil and gas wells, other natural deposits, and timber for <br/>
<a id="pl.117.29"></a><var>117.29</var>which percentage depletion was disallowed pursuant to subdivision 19c, clause (9), a <br/>
<a id="pl.117.30"></a><var>117.30</var>reasonable allowance for depletion based on actual cost. In the case of leases the deduction <br/>
<a id="pl.117.31"></a><var>117.31</var>must be apportioned between the lessor and lessee in accordance with rules prescribed <br/>
<a id="pl.117.32"></a><var>117.32</var>by the commissioner. In the case of property held in trust, the allowable deduction must <br/>
<a id="pl.117.33"></a><var>117.33</var>be apportioned between the income beneficiaries and the trustee in accordance with the <br/>
<a id="pl.117.34"></a><var>117.34</var>pertinent provisions of the trust, or if there is no provision in the instrument, on the basis <br/>
<a id="pl.117.35"></a><var>117.35</var>of the trust's income allocable to each;<br/>
<a id="pl.118.1"></a><var>118.1</var>    (8) for certified pollution control facilities placed in service in a taxable year <br/>
<a id="pl.118.2"></a><var>118.2</var>beginning before December 31, 1986, and for which amortization deductions were elected <br/>
<a id="pl.118.3"></a><var>118.3</var>under section 169 of the Internal Revenue Code of 1954, as amended through December <br/>
<a id="pl.118.4"></a><var>118.4</var>31, 1985, an amount equal to the allowance for depreciation under Minnesota Statutes <br/>
<a id="pl.118.5"></a><var>118.5</var>1986, section 
         <statute_ref>290.09, subdivision 7</statute_ref>;<br/>
<a id="pl.118.6"></a><var>118.6</var>    (9) amounts included in federal taxable income that are due to refunds of income, <br/>
<a id="pl.118.7"></a><var>118.7</var>excise, or franchise taxes based on net income or related minimum taxes paid by the <br/>
<a id="pl.118.8"></a><var>118.8</var>corporation to Minnesota, another state, a political subdivision of another state, the <br/>
<a id="pl.118.9"></a><var>118.9</var>District of Columbia, or a foreign country or possession of the United States to the extent <br/>
<a id="pl.118.10"></a><var>118.10</var>that the taxes were added to federal taxable income under section 290.01, subdivision 19c, <br/>
<a id="pl.118.11"></a><var>118.11</var>clause (1), in a prior taxable year;<br/>
<a id="pl.118.12"></a><var>118.12</var>    (10) 80 percent of royalties, fees, or other like income accrued or received from a <br/>
<a id="pl.118.13"></a><var>118.13</var>foreign operating corporation or a foreign corporation which is part of the same unitary <br/>
<a id="pl.118.14"></a><var>118.14</var>business as the receiving corporation, unless the income resulting from such payments or <br/>
<a id="pl.118.15"></a><var>118.15</var>accruals is income from sources within the United States as defined in subtitle A, chapter <br/>
<a id="pl.118.16"></a><var>118.16</var>1, subchapter N, part 1, of the Internal Revenue Code;<br/>
<a id="pl.118.17"></a><var>118.17</var>    (11) (10) income or gains from the business of mining as defined in section 
         <statute_ref>290.05, <br/>
<a id="pl.118.18"></a><var>118.18</var>subdivision 1
         </statute_ref>, clause (a), that are not subject to Minnesota franchise tax;<br/>
<a id="pl.118.19"></a><var>118.19</var>    (12) (11) the amount of disability access expenditures in the taxable year which are not <br/>
<a id="pl.118.20"></a><var>118.20</var>allowed to be deducted or capitalized under section 44(d)(7) of the Internal Revenue Code;<br/>
<a id="pl.118.21"></a><var>118.21</var>    (13) (12) the amount of qualified research expenses not allowed for federal income <br/>
<a id="pl.118.22"></a><var>118.22</var>tax purposes under section 280C(c) of the Internal Revenue Code, but only to the extent <br/>
<a id="pl.118.23"></a><var>118.23</var>that the amount exceeds the amount of the credit allowed under section 
         <statute_ref>290.068</statute_ref>;<br/>
<a id="pl.118.24"></a><var>118.24</var>    (14) (13) the amount of salary expenses not allowed for federal income tax purposes <br/>
<a id="pl.118.25"></a><var>118.25</var>due to claiming the Indian employment credit under section 45A(a) of the Internal <br/>
<a id="pl.118.26"></a><var>118.26</var>Revenue Code;<br/>
<a id="pl.118.27"></a><var>118.27</var>    (15) (14) for a corporation whose foreign sales corporation, as defined in section <br/>
<a id="pl.118.28"></a><var>118.28</var>922 of the Internal Revenue Code, constituted a foreign operating corporation during any <br/>
<a id="pl.118.29"></a><var>118.29</var>taxable year ending before January 1, 1995, and a return was filed by August 15, 1996, <br/>
<a id="pl.118.30"></a><var>118.30</var>claiming the deduction under section 
         <statute_ref>290.21, subdivision 4</statute_ref>, for income received from <br/>
<a id="pl.118.31"></a><var>118.31</var>the foreign operating corporation, an amount equal to 
         <statute_ref>1.23</statute_ref> multiplied by the amount of <br/>
<a id="pl.118.32"></a><var>118.32</var>income excluded under section 114 of the Internal Revenue Code, provided the income is <br/>
<a id="pl.118.33"></a><var>118.33</var>not income of a foreign operating company;<br/>
<a id="pl.118.34"></a><var>118.34</var>    (16) any decrease in subpart F income, as defined in section 952(a) of the Internal <br/>
<a id="pl.118.35"></a><var>118.35</var>Revenue Code, for the taxable year when subpart F income is calculated without regard to <br/>
<a id="pl.118.36"></a><var>118.36</var>the provisions of Division C, title III, section 303(b) of Public Law 110-343;<br/>
<a id="pl.119.1"></a><var>119.1</var>    (17) (15) in each of the five tax years immediately following the tax year in which an <br/>
<a id="pl.119.2"></a><var>119.2</var>addition is required under subdivision 19c, clause (15) (13), an amount equal to one-fifth <br/>
<a id="pl.119.3"></a><var>119.3</var>of the delayed depreciation. For purposes of this clause, "delayed depreciation" means the <br/>
<a id="pl.119.4"></a><var>119.4</var>amount of the addition made by the taxpayer under subdivision 19c, clause (15) (13). The <br/>
<a id="pl.119.5"></a><var>119.5</var>resulting delayed depreciation cannot be less than zero;<br/>
<a id="pl.119.6"></a><var>119.6</var>    (18) (16) in each of the five tax years immediately following the tax year in which an <br/>
<a id="pl.119.7"></a><var>119.7</var>addition is required under subdivision 19c, clause (16) (14), an amount equal to one-fifth <br/>
<a id="pl.119.8"></a><var>119.8</var>of the amount of the addition; and<br/>
<a id="pl.119.9"></a><var>119.9</var>(19) (17) to the extent included in federal taxable income, discharge of indebtedness <br/>
<a id="pl.119.10"></a><var>119.10</var>income resulting from reacquisition of business indebtedness included in federal taxable <br/>
<a id="pl.119.11"></a><var>119.11</var>income under section 108(i) of the Internal Revenue Code. This subtraction applies only <br/>
<a id="pl.119.12"></a><var>119.12</var>to the extent that the income was included in net income in a prior year as a result of the <br/>
<a id="pl.119.13"></a><var>119.13</var>addition under section 290.01, subdivision 19c, clause (25) (19); <br/>
<a id="pl.119.14"></a><var>119.14</var>(18) in the year that the expenditures are made for railroad track maintenance, as <br/>
<a id="pl.119.15"></a><var>119.15</var>defined in section 45G(d) of the Internal Revenue Code, an amount equal to the credit <br/>
<a id="pl.119.16"></a><var>119.16</var>awarded pursuant to section 45G(a) of the Internal Revenue Code.; and <br/>
<a id="pl.119.17"></a><var>119.17</var>(19) to the extent included in federal taxable income, the previous year's average <br/>
<a id="pl.119.18"></a><var>119.18</var>dental provider's reimbursement from the Minnesota medical assistance program in the <br/>
<a id="pl.119.19"></a><var>119.19</var>taxable year for which the subtraction is claimed multiplied by the dental provider's total <br/>
<a id="pl.119.20"></a><var>119.20</var>number of patients enrolled in the Minnesota medical assistance program for the year, <br/>
<a id="pl.119.21"></a><var>119.21</var>up to $25,000 for a taxable year. For purposes of this clause, "dental provider" means a <br/>
<a id="pl.119.22"></a><var>119.22</var>licensed provider of dental services that treats patients eligible for medical assistance <br/>
<a id="pl.119.23"></a><var>119.23</var>under section 256B.056.<br/>
<a id="pl.119.24"></a><var>119.24</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.119.25"></a><var>119.25</var>December 31, 2012.<br/>
<br/>
<a id="bill.5.14.0"></a><a id="pl.119.26"></a><var>119.26</var>    Sec. 14. Minnesota Statutes 2012, section 290.06, subdivision 1, is amended to read:<br/>
<a id="pl.119.27"></a><var>119.27</var>    Subdivision 1. <b>Computation, corporations.</b> The franchise tax imposed upon <br/>
<a id="pl.119.28"></a><var>119.28</var>corporations shall be computed by applying to their taxable income the rate of 9.8 9.0 <br/>
<a id="pl.119.29"></a><var>119.29</var>percent.<br/>
<a id="pl.119.30"></a><var>119.30</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.119.31"></a><var>119.31</var>December 31, 2012.<br/>
<br/>
<a id="bill.5.15.0"></a><a id="pl.119.32"></a><var>119.32</var>    Sec. 15. Minnesota Statutes 2012, section 290.06, subdivision 2c, is amended to read:<br/>
<a id="pl.120.1"></a><var>120.1</var>    Subd. 2c. <b>Schedules of rates for individuals, estates, and trusts.</b> (a) The income <br/>
<a id="pl.120.2"></a><var>120.2</var>taxes imposed by this chapter upon married individuals filing joint returns and surviving <br/>
<a id="pl.120.3"></a><var>120.3</var>spouses as defined in section 2(a) of the Internal Revenue Code must be computed by <br/>
<a id="pl.120.4"></a><var>120.4</var>applying to their taxable net income the following schedule of rates:<br/>
<a id="pl.120.5"></a><var>120.5</var>    (1) On the first $25,680 $35,480, 5.35 percent;<br/>
<a id="pl.120.6"></a><var>120.6</var>    (2) On all over $25,680 $35,480, but not over $102,030 $140,960, 7.05 percent;<br/>
<a id="pl.120.7"></a><var>120.7</var>    (3) On all over $102,030 $140,960, 7.85 9.4 percent.<br/>
<a id="pl.120.8"></a><var>120.8</var>    Married individuals filing separate returns, estates, and trusts must compute their <br/>
<a id="pl.120.9"></a><var>120.9</var>income tax by applying the above rates to their taxable income, except that the income <br/>
<a id="pl.120.10"></a><var>120.10</var>brackets will be one-half of the above amounts.<br/>
<a id="pl.120.11"></a><var>120.11</var>    (b) The income taxes imposed by this chapter upon unmarried individuals must be <br/>
<a id="pl.120.12"></a><var>120.12</var>computed by applying to taxable net income the following schedule of rates:<br/>
<a id="pl.120.13"></a><var>120.13</var>    (1) On the first $17,570 $24,270, 5.35 percent;<br/>
<a id="pl.120.14"></a><var>120.14</var>    (2) On all over $17,570 $24,270, but not over $57,710 $79,730, 7.05 percent;<br/>
<a id="pl.120.15"></a><var>120.15</var>    (3) On all over $57,710 $79,730, 7.85 9.4 percent.<br/>
<a id="pl.120.16"></a><var>120.16</var>    (c) The income taxes imposed by this chapter upon unmarried individuals qualifying <br/>
<a id="pl.120.17"></a><var>120.17</var>as a head of household as defined in section 2(b) of the Internal Revenue Code must be <br/>
<a id="pl.120.18"></a><var>120.18</var>computed by applying to taxable net income the following schedule of rates:<br/>
<a id="pl.120.19"></a><var>120.19</var>    (1) On the first $21,630 $29,880, 5.35 percent;<br/>
<a id="pl.120.20"></a><var>120.20</var>    (2) On all over $21,630 $29,880, but not over $86,910 $120,070, 7.05 percent;<br/>
<a id="pl.120.21"></a><var>120.21</var>    (3) On all over $86,910 $120,070, 7.85 9.4 percent.<br/>
<a id="pl.120.22"></a><var>120.22</var>    (d) In lieu of a tax computed according to the rates set forth in this subdivision, the <br/>
<a id="pl.120.23"></a><var>120.23</var>tax of any individual taxpayer whose taxable net income for the taxable year is less than <br/>
<a id="pl.120.24"></a><var>120.24</var>an amount determined by the commissioner must be computed in accordance with tables <br/>
<a id="pl.120.25"></a><var>120.25</var>prepared and issued by the commissioner of revenue based on income brackets of not <br/>
<a id="pl.120.26"></a><var>120.26</var>more than $100. The amount of tax for each bracket shall be computed at the rates set <br/>
<a id="pl.120.27"></a><var>120.27</var>forth in this subdivision, provided that the commissioner may disregard a fractional part of <br/>
<a id="pl.120.28"></a><var>120.28</var>a dollar unless it amounts to 50 cents or more, in which case it may be increased to $1.<br/>
<a id="pl.120.29"></a><var>120.29</var>    (e) An individual who is not a Minnesota resident for the entire year must compute <br/>
<a id="pl.120.30"></a><var>120.30</var>the individual's Minnesota income tax as provided in this subdivision. After the <br/>
<a id="pl.120.31"></a><var>120.31</var>application of the nonrefundable credits provided in this chapter, the tax liability must <br/>
<a id="pl.120.32"></a><var>120.32</var>then be multiplied by a fraction in which:<br/>
<a id="pl.120.33"></a><var>120.33</var>    (1) the numerator is the individual's Minnesota source federal adjusted gross income <br/>
<a id="pl.120.34"></a><var>120.34</var>as defined in section 62 of the Internal Revenue Code and increased by the additions <br/>
<a id="pl.120.35"></a><var>120.35</var>required under section 
         <statute_ref>290.01, subdivision 19a</statute_ref>, clauses (1), (5), (6), (7), (8), (9), (12), <br/>
<a id="pl.120.36"></a><var>120.36</var>(13), and (16) to (18), and reduced by the Minnesota assignable portion of the subtraction <br/>
<a id="pl.121.1"></a><var>121.1</var>for United States government interest under section 
         <statute_ref>290.01, subdivision 19b</statute_ref>, clause <br/>
<a id="pl.121.2"></a><var>121.2</var>(1), and the subtractions under section 
         <statute_ref>290.01, subdivision 19b</statute_ref>, clauses (8), (9), (13), <br/>
<a id="pl.121.3"></a><var>121.3</var>(14), (16), and (17), after applying the allocation and assignability provisions of section <br/>
<statute_ref><a id="pl.121.4"></a><var>121.4</var>290.081
         </statute_ref>, clause (a), or 
         <statute_ref>290.17</statute_ref>; and<br/>
<a id="pl.121.5"></a><var>121.5</var>    (2) the denominator is the individual's federal adjusted gross income as defined in <br/>
<a id="pl.121.6"></a><var>121.6</var>section 62 of the Internal Revenue Code of 1986, increased by the amounts specified in <br/>
<a id="pl.121.7"></a><var>121.7</var>section 
         <statute_ref>290.01, subdivision 19a</statute_ref>, clauses (1), (5), (6), (7), (8), (9), (12), (13), and (16) to <br/>
<a id="pl.121.8"></a><var>121.8</var>(18), and reduced by the amounts specified in section 
         <statute_ref>290.01, subdivision 19b</statute_ref>, clauses (1), <br/>
<a id="pl.121.9"></a><var>121.9</var>(8), (9), (13), (14), (16), and (17).<br/>
<a id="pl.121.10"></a><var>121.10</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.121.11"></a><var>121.11</var>December 31, 2012.<br/>
<br/>
<a id="bill.5.16.0"></a><a id="pl.121.12"></a><var>121.12</var>    Sec. 16. Minnesota Statutes 2012, section 290.06, subdivision 2d, is amended to read:<br/>
<a id="pl.121.13"></a><var>121.13</var>    Subd. 2d. <b>Inflation adjustment of brackets.</b> (a) For taxable years beginning after <br/>
<a id="pl.121.14"></a><var>121.14</var>December 31, 2000 2013, the minimum and maximum dollar amounts for each rate <br/>
<a id="pl.121.15"></a><var>121.15</var>bracket for which a tax is imposed in subdivision 2c shall be adjusted for inflation by the <br/>
<a id="pl.121.16"></a><var>121.16</var>percentage determined under paragraph (b). For the purpose of making the adjustment as <br/>
<a id="pl.121.17"></a><var>121.17</var>provided in this subdivision all of the rate brackets provided in subdivision 2c shall be the <br/>
<a id="pl.121.18"></a><var>121.18</var>rate brackets as they existed for taxable years beginning after December 31, 1999 2012, <br/>
<a id="pl.121.19"></a><var>121.19</var>and before January 1, 2001 2014. The rate applicable to any rate bracket must not be <br/>
<a id="pl.121.20"></a><var>121.20</var>changed. The dollar amounts setting forth the tax shall be adjusted to reflect the changes <br/>
<a id="pl.121.21"></a><var>121.21</var>in the rate brackets. The rate brackets as adjusted must be rounded to the nearest $10 <br/>
<a id="pl.121.22"></a><var>121.22</var>amount. If the rate bracket ends in $5, it must be rounded up to the nearest $10 amount.<br/>
<a id="pl.121.23"></a><var>121.23</var>(b) The commissioner shall adjust the rate brackets and by the percentage determined <br/>
<a id="pl.121.24"></a><var>121.24</var>pursuant to the provisions of section 1(f) of the Internal Revenue Code, except that in <br/>
<a id="pl.121.25"></a><var>121.25</var>section 1(f)(3)(B) the word "1999" "2012" shall be substituted for the word "1992." For <br/>
<a id="pl.121.26"></a><var>121.26</var>2001 2014, the commissioner shall then determine the percent change from the 12 months <br/>
<a id="pl.121.27"></a><var>121.27</var>ending on August 31, 1999 2012, to the 12 months ending on August 31, 2000 2013, and <br/>
<a id="pl.121.28"></a><var>121.28</var>in each subsequent year, from the 12 months ending on August 31, 1999 2012, to the 12 <br/>
<a id="pl.121.29"></a><var>121.29</var>months ending on August 31 of the year preceding the taxable year. The determination of <br/>
<a id="pl.121.30"></a><var>121.30</var>the commissioner pursuant to this subdivision shall not be considered a "rule" and shall <br/>
<a id="pl.121.31"></a><var>121.31</var>not be subject to the Administrative Procedure Act contained in chapter 14.<br/>
<a id="pl.121.32"></a><var>121.32</var>No later than December 15 of each year, the commissioner shall announce the <br/>
<a id="pl.121.33"></a><var>121.33</var>specific percentage that will be used to adjust the tax rate brackets.<br/>
<a id="pl.122.1"></a><var>122.1</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.122.2"></a><var>122.2</var>December 31, 2012.<br/>
<br/>
<a id="bill.5.17.0"></a><a id="pl.122.3"></a><var>122.3</var>    Sec. 17. Minnesota Statutes 2012, section 290.06, is amended by adding a subdivision <br/>
<a id="pl.122.4"></a><var>122.4</var>to read:<br/>
<a id="pl.122.5"></a><var>122.5</var>    Subd. 36. <b>Greater Minnesota internship credit.</b> (a) A taxpayer may take a credit <br/>
<a id="pl.122.6"></a><var>122.6</var>against the tax due under this chapter equal to the lesser of:<br/>
<a id="pl.122.7"></a><var>122.7</var>(1) 40 percent of the compensation paid to an intern qualifying under the program <br/>
<a id="pl.122.8"></a><var>122.8</var>established under section 136A.129, but not to exceed $2,000 per intern; or<br/>
<a id="pl.122.9"></a><var>122.9</var>(2) the amount certified by the Office of Higher Education under section 136A.129 <br/>
<a id="pl.122.10"></a><var>122.10</var>to the taxpayer.<br/>
<a id="pl.122.11"></a><var>122.11</var>(b) Credits allowed to a partnership, a limited liability company taxed as a <br/>
<a id="pl.122.12"></a><var>122.12</var>partnership, an S corporation, or multiple owners of property are passed through to the <br/>
<a id="pl.122.13"></a><var>122.13</var>partners, members, shareholders, or owners, respectively, pro rata to each partner, member, <br/>
<a id="pl.122.14"></a><var>122.14</var>shareholder, or owner based on their share of the entity's income for the taxable year.<br/>
<a id="pl.122.15"></a><var>122.15</var>(c) If the amount of credit which the taxpayer is eligible to receive under this <br/>
<a id="pl.122.16"></a><var>122.16</var>subdivision exceeds the taxpayer's tax liability under this chapter, the commissioner of <br/>
<a id="pl.122.17"></a><var>122.17</var>revenue shall refund the excess to the taxpayer.<br/>
<a id="pl.122.18"></a><var>122.18</var>(d) The amount necessary to:<br/>
<a id="pl.122.19"></a><var>122.19</var>(1) pay claims for the refund provided in this subdivision; and<br/>
<a id="pl.122.20"></a><var>122.20</var>(2) an amount equal to one percent of the total amount of the credits authorized <br/>
<a id="pl.122.21"></a><var>122.21</var>under this subdivision for an administrative fee for the Office of Higher Education <br/>
<a id="pl.122.22"></a><var>122.22</var>and participating eligible institutions is appropriated from the general fund to the <br/>
<a id="pl.122.23"></a><var>122.23</var>commissioner of revenue, not to exceed $2,020,000.<br/>
<a id="pl.122.24"></a><var>122.24</var>The commissioner of revenue shall transfer the amount of the administrative fee to <br/>
<a id="pl.122.25"></a><var>122.25</var>the Office of Higher Education.<br/>
<a id="pl.122.26"></a><var>122.26</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.122.27"></a><var>122.27</var>December 31, 2013.<br/>
<br/>
<a id="bill.5.18.0"></a><a id="pl.122.28"></a><var>122.28</var>    Sec. 18. Minnesota Statutes 2012, section 290.0677, subdivision 1, is amended to read:<br/>
<a id="pl.122.29"></a><var>122.29</var>    Subdivision 1. <b>Credit allowed; current military service. </b> (a) An individual is <br/>
<a id="pl.122.30"></a><var>122.30</var>allowed a credit against the tax due under this chapter equal to $59 for each month or <br/>
<a id="pl.122.31"></a><var>122.31</var>portion thereof that the individual was in active military service in a designated area after <br/>
<a id="pl.122.32"></a><var>122.32</var>September 11, 2001, and before January 1, 2009, while a Minnesota domiciliary.<br/>
<a id="pl.123.1"></a><var>123.1</var>    (b) An individual is allowed a credit against the tax due under this chapter equal <br/>
<a id="pl.123.2"></a><var>123.2</var>to $120 $200 for each month or portion thereof that the individual was in active military <br/>
<a id="pl.123.3"></a><var>123.3</var>service in a designated area after December 31, 2008, while a Minnesota domiciliary.<br/>
<a id="pl.123.4"></a><var>123.4</var>    (c) For active service performed after September 11, 2001, and before December 31, <br/>
<a id="pl.123.5"></a><var>123.5</var>2006, the individual may claim the credit in the taxable year beginning after December 31, <br/>
<a id="pl.123.6"></a><var>123.6</var>2005, and before January 1, 2007.<br/>
<a id="pl.123.7"></a><var>123.7</var>    (d) For active service performed after December 31, 2006, the individual may claim <br/>
<a id="pl.123.8"></a><var>123.8</var>the credit for the taxable year in which the active service was performed.<br/>
<a id="pl.123.9"></a><var>123.9</var>    (e) If an individual entitled to the credit died prior to January 1, 2006, the individual's <br/>
<a id="pl.123.10"></a><var>123.10</var>estate or heirs at law, if the individual's probate estate has closed or the estate was not <br/>
<a id="pl.123.11"></a><var>123.11</var>probated, may claim the credit.<br/>
<a id="pl.123.12"></a><var>123.12</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.123.13"></a><var>123.13</var>December 31, 2012.<br/>
<br/>
<a id="bill.5.19.0"></a><a id="pl.123.14"></a><var>123.14</var>    Sec. 19. Minnesota Statutes 2012, section 290.0677, subdivision 1a, is amended to read:<br/>
<a id="pl.123.15"></a><var>123.15</var>    Subd. 1a. <b>Credit allowed; past military service.</b> (a) A qualified individual is <br/>
<a id="pl.123.16"></a><var>123.16</var>allowed a credit against the tax imposed under this chapter for past military service. The <br/>
<a id="pl.123.17"></a><var>123.17</var>credit equals $750 $1,500. The credit allowed under this subdivision is reduced by ten <br/>
<a id="pl.123.18"></a><var>123.18</var>percent of adjusted gross income in excess of $30,000, but in no case is the credit less <br/>
<a id="pl.123.19"></a><var>123.19</var>than zero.<br/>
<a id="pl.123.20"></a><var>123.20</var>    (b) For a nonresident or a part-year resident, the credit under this subdivision <br/>
<a id="pl.123.21"></a><var>123.21</var>must be allocated based on the percentage calculated under section 
         <statute_ref>290.06, subdivision <br/>
<a id="pl.123.22"></a><var>123.22</var>2c
         </statute_ref>, paragraph (e).<br/>
<a id="pl.123.23"></a><var>123.23</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.123.24"></a><var>123.24</var>December 31, 2012.<br/>
<br/>
<a id="bill.5.20.0"></a><a id="pl.123.25"></a><var>123.25</var>    Sec. 20. Minnesota Statutes 2012, section 290.0677, subdivision 2, is amended to read:<br/>
<a id="pl.123.26"></a><var>123.26</var>    Subd. 2. <b>Definitions.</b> (a) For purposes of this section, the following terms have <br/>
<a id="pl.123.27"></a><var>123.27</var>the meanings given.<br/>
<a id="pl.123.28"></a><var>123.28</var>    (b) "Designated area" means a:<br/>
<a id="pl.123.29"></a><var>123.29</var>    (1) combat zone designated by Executive Order from the President of the United <br/>
<a id="pl.123.30"></a><var>123.30</var>States;<br/>
<a id="pl.123.31"></a><var>123.31</var>    (2) qualified hazardous duty area, designated in Public Law; or<br/>
<a id="pl.123.32"></a><var>123.32</var>    (3) location certified by the U. S. Department of Defense as eligible for combat zone <br/>
<a id="pl.123.33"></a><var>123.33</var>tax benefits due to the location's direct support of military operations.<br/>
<a id="pl.124.1"></a><var>124.1</var>    (c) "Active military service" means active duty service in any of the United States <br/>
<a id="pl.124.2"></a><var>124.2</var>armed forces, the National Guard, or reserves.<br/>
<a id="pl.124.3"></a><var>124.3</var>    (d) "Qualified individual" means an individual who has:<br/>
<a id="pl.124.4"></a><var>124.4</var>    (1) either (i) met one of the following criteria:<br/>
<a id="pl.124.5"></a><var>124.5</var>    (i) has served at least 20 years in the military or;<br/>
<a id="pl.124.6"></a><var>124.6</var>    (ii) has a service-connected disability rating of 100 percent for a total and permanent <br/>
<a id="pl.124.7"></a><var>124.7</var>disability; or<br/>
<a id="pl.124.8"></a><var>124.8</var>    (iii) has been determined by the military to be eligible for compensation from a <br/>
<a id="pl.124.9"></a><var>124.9</var>pension or other retirement pay from the federal government for service in the military, <br/>
<a id="pl.124.10"></a><var>124.10</var>as computed under United States Code, title 10, sections 1401 to 1414, 1447 to 1455, <br/>
<a id="pl.124.11"></a><var>124.11</var>or 12733; and<br/>
<a id="pl.124.12"></a><var>124.12</var>    (2) separated from military service before the end of the taxable year.<br/>
<a id="pl.124.13"></a><var>124.13</var>    (e) "Adjusted gross income" has the meaning given in section 61 of the Internal <br/>
<a id="pl.124.14"></a><var>124.14</var>Revenue Code.<br/>
<a id="pl.124.15"></a><var>124.15</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.124.16"></a><var>124.16</var>December 31, 2012.<br/>
<br/>
<a id="bill.5.21.0"></a><a id="pl.124.17"></a><var>124.17</var>    Sec. 21. Minnesota Statutes 2012, section 290.068, subdivision 1, is amended to read:<br/>
<a id="pl.124.18"></a><var>124.18</var>    Subdivision 1. <b>Credit allowed.</b> A corporation, partners in a partnership, or <br/>
<a id="pl.124.19"></a><var>124.19</var>shareholders in a corporation treated as an "S" corporation under section 
         <statute_ref>290.9725</statute_ref> are <br/>
<a id="pl.124.20"></a><var>124.20</var>allowed a credit against the tax computed under this chapter for the taxable year equal to:<br/>
<a id="pl.124.21"></a><var>124.21</var>    (a) ten percent of the first $2,000,000 of the excess (if any) of<br/>
<a id="pl.124.22"></a><var>124.22</var>    (1) the qualified research expenses for the taxable year, over<br/>
<a id="pl.124.23"></a><var>124.23</var>    (2) the base amount; and<br/>
<a id="pl.124.24"></a><var>124.24</var>    (b) 2.5 3.75 percent on all of such excess expenses over $2,000,000.<br/>
<a id="pl.124.25"></a><var>124.25</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.124.26"></a><var>124.26</var>December 31, 2012.<br/>
<br/>
<a id="bill.5.22.0"></a><a id="pl.124.27"></a><var>124.27</var>    Sec. 22. Minnesota Statutes 2012, section 290.0681, subdivision 1, is amended to read:<br/>
<a id="pl.124.28"></a><var>124.28</var>    Subdivision 1. <b>Definitions.</b> (a) For purposes of this section, the following terms <br/>
<a id="pl.124.29"></a><var>124.29</var>have the meanings given.<br/>
<a id="pl.124.30"></a><var>124.30</var>(b) "Account" means the historic credit administration account in the special <br/>
<a id="pl.124.31"></a><var>124.31</var>revenue fund.<br/>
<a id="pl.124.32"></a><var>124.32</var>(c) "Office" means the State Historic Preservation Office of the Minnesota Historical <br/>
<a id="pl.124.33"></a><var>124.33</var>Society.<br/>
<a id="pl.125.1"></a><var>125.1</var>(d) "Project" means rehabilitation of a certified historic structure, as defined in <br/>
<a id="pl.125.2"></a><var>125.2</var>section 47(c)(3)(A) of the Internal Revenue Code, that is located in Minnesota and is <br/>
<a id="pl.125.3"></a><var>125.3</var>allowed a federal credit under section 47(a)(2) of the Internal Revenue Code.<br/>
<a id="pl.125.4"></a><var>125.4</var>(e) "Society" means the Minnesota Historical Society.<br/>
<a id="pl.125.5"></a><var>125.5</var>(f) "Federal credit" means the credit allowed under section 47(a)(2) of the Internal <br/>
<a id="pl.125.6"></a><var>125.6</var>Revenue Code.<br/>
<a id="pl.125.7"></a><var>125.7</var>(g) "Placed in service" has the meaning used in section 47 of the Internal Revenue <br/>
<a id="pl.125.8"></a><var>125.8</var>Code.<br/>
<a id="pl.125.9"></a><var>125.9</var>(h) "Qualified rehabilitation expenditures" has the meaning given in section 47 of <br/>
<a id="pl.125.10"></a><var>125.10</var>the Internal Revenue Code.<br/>
<a id="pl.125.11"></a><var>125.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.23.0"></a><a id="pl.125.12"></a><var>125.12</var>    Sec. 23. Minnesota Statutes 2012, section 290.0681, subdivision 3, is amended to read:<br/>
<a id="pl.125.13"></a><var>125.13</var>    Subd. 3. <b>Applications; allocations.</b> (a) To qualify for a credit or grant under this <br/>
<a id="pl.125.14"></a><var>125.14</var>section, the developer of a project must apply to the office before the rehabilitation begins. <br/>
<a id="pl.125.15"></a><var>125.15</var>The application must contain the information and be in the form prescribed by the office. <br/>
<a id="pl.125.16"></a><var>125.16</var>The office may collect a fee for application of up to $5,000 0.5 percent of qualified <br/>
<a id="pl.125.17"></a><var>125.17</var>rehabilitation expenditures, up to $45,000, based on estimated qualified rehabilitation <br/>
<a id="pl.125.18"></a><var>125.18</var>expenses expenditures, to offset costs associated with personnel and administrative <br/>
<a id="pl.125.19"></a><var>125.19</var>expenses related to administering the credit and preparing the economic impact report <br/>
<a id="pl.125.20"></a><var>125.20</var>in subdivision 9. Application fees are deposited in the account. The application must <br/>
<a id="pl.125.21"></a><var>125.21</var>indicate if the application is for a credit or a grant in lieu of the credit or a combination of <br/>
<a id="pl.125.22"></a><var>125.22</var>the two and designate the taxpayer qualifying for the credit or the recipient of the grant.<br/>
<a id="pl.125.23"></a><var>125.23</var>    (b) Upon approving an application for credit, the office shall issue allocation <br/>
<a id="pl.125.24"></a><var>125.24</var>certificates that:<br/>
<a id="pl.125.25"></a><var>125.25</var>    (1) verify eligibility for the credit or grant;<br/>
<a id="pl.125.26"></a><var>125.26</var>    (2) state the amount of credit or grant anticipated with the project, with the credit <br/>
<a id="pl.125.27"></a><var>125.27</var>amount equal to 100 percent and the grant amount equal to 90 percent of the federal <br/>
<a id="pl.125.28"></a><var>125.28</var>credit anticipated in the application;<br/>
<a id="pl.125.29"></a><var>125.29</var>    (3) state that the credit or grant allowed may increase or decrease if the federal <br/>
<a id="pl.125.30"></a><var>125.30</var>credit the project receives at the time it is placed in service is different than the amount <br/>
<a id="pl.125.31"></a><var>125.31</var>anticipated at the time the allocation certificate is issued; and<br/>
<a id="pl.125.32"></a><var>125.32</var>    (4) state the fiscal year in which the credit or grant is allocated, and that the taxpayer <br/>
<a id="pl.125.33"></a><var>125.33</var>or grant recipient is entitled to receive the credit or grant at the time the project is placed <br/>
<a id="pl.125.34"></a><var>125.34</var>in service, provided that date is within three calendar years following the issuance of <br/>
<a id="pl.125.35"></a><var>125.35</var>the allocation certificate.<br/>
<a id="pl.126.1"></a><var>126.1</var>    (c) The office, in consultation with the commissioner of revenue, shall determine <br/>
<a id="pl.126.2"></a><var>126.2</var>if the project is eligible for a credit or a grant under this section and must notify the <br/>
<a id="pl.126.3"></a><var>126.3</var>developer in writing of its determination. Eligibility for the credit is subject to review <br/>
<a id="pl.126.4"></a><var>126.4</var>and audit by the commissioner of revenue.<br/>
<a id="pl.126.5"></a><var>126.5</var>    (d) The federal credit recapture and repayment requirements under section 50 of the <br/>
<a id="pl.126.6"></a><var>126.6</var>Internal Revenue Code do not apply to the credit allowed under this section.<br/>
<a id="pl.126.7"></a><var>126.7</var>(e) Any decision of the office under paragraph (c) may be challenged as a contested <br/>
<a id="pl.126.8"></a><var>126.8</var>case under chapter 14. The contested case proceeding must be initiated within 45 days of <br/>
<a id="pl.126.9"></a><var>126.9</var>the date of written notification by the office.<br/>
<a id="pl.126.10"></a><var>126.10</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.24.0"></a><a id="pl.126.11"></a><var>126.11</var>    Sec. 24. Minnesota Statutes 2012, section 290.0681, subdivision 4, is amended to read:<br/>
<a id="pl.126.12"></a><var>126.12</var>    Subd. 4. <b>Credit certificates</b><b>; grants</b><b>.</b> (a)(1) The developer of a project for which the <br/>
<a id="pl.126.13"></a><var>126.13</var>office has issued an allocation certificate must notify the office when the project is placed <br/>
<a id="pl.126.14"></a><var>126.14</var>in service. Upon verifying that the project has been placed in service, and was allowed a <br/>
<a id="pl.126.15"></a><var>126.15</var>federal credit, the office must issue a credit certificate to the taxpayer designated in the <br/>
<a id="pl.126.16"></a><var>126.16</var>application or must issue a grant to the recipient designated in the application. Credit <br/>
<a id="pl.126.17"></a><var>126.17</var>certificates will be issued on a first come, first served basis according to the date and time <br/>
<a id="pl.126.18"></a><var>126.18</var>of verification required under this clause. The total amount of all credits issued in any <br/>
<a id="pl.126.19"></a><var>126.19</var>fiscal year under this subdivision must not exceed $15,000,000. The credit certificate <br/>
<a id="pl.126.20"></a><var>126.20</var>must state the amount of the credit.<br/>
<a id="pl.126.21"></a><var>126.21</var>    (2) The credit amount equals the federal credit allowed for the project.<br/>
<a id="pl.126.22"></a><var>126.22</var>    (3) The grant amount equals 90 percent of the federal credit allowed for the project.<br/>
<a id="pl.126.23"></a><var>126.23</var>    (b) The recipient of a credit certificate may assign the certificate to another taxpayer, <br/>
<a id="pl.126.24"></a><var>126.24</var>which is then allowed the credit under this section or section 
         <statute_ref>297I.20, subdivision 3</statute_ref>.  An <br/>
<a id="pl.126.25"></a><var>126.25</var>assignment is not valid unless the assignee notifies the commissioner within 30 days of the <br/>
<a id="pl.126.26"></a><var>126.26</var>date that the assignment is made. The commissioner shall prescribe the forms necessary <br/>
<a id="pl.126.27"></a><var>126.27</var>for notifying the commissioner of the assignment of a credit certificate and for claiming <br/>
<a id="pl.126.28"></a><var>126.28</var>a credit by assignment.<br/>
<a id="pl.126.29"></a><var>126.29</var>    (c) Credits passed through to partners, members, shareholders, or owners pursuant to <br/>
<a id="pl.126.30"></a><var>126.30</var>subdivision 5 are not an assignment of a credit certificate under this subdivision.<br/>
<a id="pl.126.31"></a><var>126.31</var>    (d) A grant agreement between the office and the recipient of a grant may allow the <br/>
<a id="pl.126.32"></a><var>126.32</var>grant to be issued to another individual or entity.<br/>
<a id="pl.126.33"></a><var>126.33</var><b>EFFECTIVE DATE.</b>Paragraph (a) is effective beginning fiscal year 2016. <br/>
<a id="pl.126.34"></a><var>126.34</var>Paragraph (b) is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.25.0"></a><a id="pl.127.1"></a><var>127.1</var>    Sec. 25. Minnesota Statutes 2012, section 290.0681, subdivision 5, is amended to read:<br/>
<a id="pl.127.2"></a><var>127.2</var>    Subd. 5. <b>Partnerships; multiple owners.</b> Credits granted to a partnership, a limited <br/>
<a id="pl.127.3"></a><var>127.3</var>liability company taxed as a partnership, S corporation, or multiple owners of property <br/>
<a id="pl.127.4"></a><var>127.4</var>are passed through to the partners, members, shareholders, or owners, respectively, pro <br/>
<a id="pl.127.5"></a><var>127.5</var>rata to each partner, member, shareholder, or owner based on their share of the entity's <br/>
<a id="pl.127.6"></a><var>127.6</var>assets or as specially allocated in their organizational documents or any other executed <br/>
<a id="pl.127.7"></a><var>127.7</var>agreement, as of the last day of the taxable year.<br/>
<a id="pl.127.8"></a><var>127.8</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.26.0"></a><a id="pl.127.9"></a><var>127.9</var>    Sec. 26. Minnesota Statutes 2012, section 290.0681, subdivision 7, is amended to read:<br/>
<a id="pl.127.10"></a><var>127.10</var>    Subd. 7. <b>Appropriations.</b> (a) An amount sufficient to pay the refunds authorized <br/>
<a id="pl.127.11"></a><var>127.11</var>under this section is appropriated to the commissioner from the general fund.<br/>
<a id="pl.127.12"></a><var>127.12</var>(b) Subject to the limitation in paragraph (a), an amount sufficient to pay the grants <br/>
<a id="pl.127.13"></a><var>127.13</var>authorized under this section is appropriated to the society from the general fund.<br/>
<a id="pl.127.14"></a><var>127.14</var>(c) Amounts in the account are appropriated to the society for costs associated with <br/>
<a id="pl.127.15"></a><var>127.15</var>personnel and administrative expenses related to administering the credit for historic <br/>
<a id="pl.127.16"></a><var>127.16</var>structure rehabilitation in this section, for refunding application fees under subdivision <br/>
<a id="pl.127.17"></a><var>127.17</var>3, and for costs associated with preparing the determination of economic impact report <br/>
<a id="pl.127.18"></a><var>127.18</var>required in subdivision 9.<br/>
<a id="pl.127.19"></a><var>127.19</var><b>EFFECTIVE DATE.</b>This section is effective beginning fiscal year 2016.<br/>
<br/>
<a id="bill.5.27.0"></a><a id="pl.127.20"></a><var>127.20</var>    Sec. 27. Minnesota Statutes 2012, section 290.0681, subdivision 10, is amended to read:<br/>
<a id="pl.127.21"></a><var>127.21</var>    Subd. 10. <b>Sunset.</b> This section expires after fiscal year 2015 2021, except that <br/>
<a id="pl.127.22"></a><var>127.22</var>the office's authority to issue credit certificates under subdivision 4 based on allocation <br/>
<a id="pl.127.23"></a><var>127.23</var>certificates that were issued before fiscal year 2016 2022 remains in effect through 2018<br/>
<a id="pl.127.24"></a><var>127.24</var> 2024, and the reporting requirements in subdivision 9 remain in effect through the year <br/>
<a id="pl.127.25"></a><var>127.25</var>following the year in which all allocation certificates have either been canceled or resulted <br/>
<a id="pl.127.26"></a><var>127.26</var>in issuance of credit certificates, or 2019 2025, whichever is earlier.<br/>
<a id="pl.127.27"></a><var>127.27</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.5.28.0"></a><a id="pl.127.28"></a><var>127.28</var>    Sec. 28. <b>[290.0682] JOBS CREDIT; GREATER MINNESOTA BUSINESS </b><br/>
<a id="pl.127.29"></a><var>127.29</var><b>EXPANSIONS.</b><br/>
<a id="pl.127.30"></a><var>127.30</var>    Subdivision 1. <b>Credit allowed.</b> (a) If authorized by its business subsidy agreement, a <br/>
<a id="pl.127.31"></a><var>127.31</var>qualified business is allowed a credit against the taxes imposed under chapter 290. Credits <br/>
<a id="pl.127.32"></a><var>127.32</var>must be awarded on a first come, first served basis. The credit equals seven percent of:<br/>
<a id="pl.128.1"></a><var>128.1</var>(1) the lesser of:<br/>
<a id="pl.128.2"></a><var>128.2</var>(i) the greater Minnesota payroll for the taxable year, less the greater Minnesota <br/>
<a id="pl.128.3"></a><var>128.3</var>payroll for the base year; or<br/>
<a id="pl.128.4"></a><var>128.4</var>(ii) the total Minnesota payroll for the taxable year, less the total Minnesota payroll <br/>
<a id="pl.128.5"></a><var>128.5</var>for the base year; minus<br/>
<a id="pl.128.6"></a><var>128.6</var>(2)(i) $35,000 multiplied by (ii) the number of full-time equivalent employees that <br/>
<a id="pl.128.7"></a><var>128.7</var>the qualified business employs in greater Minnesota for the taxable year, minus the <br/>
<a id="pl.128.8"></a><var>128.8</var>number of full-time equivalent employees the business employed in greater Minnesota in <br/>
<a id="pl.128.9"></a><var>128.9</var>the base year, but not less than zero.<br/>
<a id="pl.128.10"></a><var>128.10</var>(b) The total amount of credits allowed under paragraph (a) to all qualified <br/>
<a id="pl.128.11"></a><var>128.11</var>businesses must not exceed $5,000,000 in a calendar year.<br/>
<a id="pl.128.12"></a><var>128.12</var>    Subd. 2. <b>Definitions.</b> (a) For purposes of this section, the following terms have <br/>
<a id="pl.128.13"></a><var>128.13</var>the meanings given.<br/>
<a id="pl.128.14"></a><var>128.14</var>(b) "Base year" means the taxable year beginning during the calendar year prior to <br/>
<a id="pl.128.15"></a><var>128.15</var>the calendar year in which the qualified business was certified under section 116J.3738.<br/>
<a id="pl.128.16"></a><var>128.16</var>(c) "Full-time equivalent employees" means the equivalent of annualized expected <br/>
<a id="pl.128.17"></a><var>128.17</var>hours of work equal to 2,080 hours.<br/>
<a id="pl.128.18"></a><var>128.18</var>(d) "Greater Minnesota" has the meaning given in section 116J.3738.<br/>
<a id="pl.128.19"></a><var>128.19</var>(e) "Greater Minnesota payroll" is that portion of the payroll factor under section <br/>
<a id="pl.128.20"></a><var>128.20</var>290.191 that represents:<br/>
<a id="pl.128.21"></a><var>128.21</var>(1) wages or salaries paid to an individual for services performed in greater <br/>
<a id="pl.128.22"></a><var>128.22</var>Minnesota; plus<br/>
<a id="pl.128.23"></a><var>128.23</var>(2) wages or salaries paid to individuals working from offices within greater <br/>
<a id="pl.128.24"></a><var>128.24</var>Minnesota if their employment requires them to work outside of greater Minnesota and the <br/>
<a id="pl.128.25"></a><var>128.25</var>work is incidental to the work performed by the individual within greater Minnesota; less<br/>
<a id="pl.128.26"></a><var>128.26</var>(3) the amount of compensation attributable to any employee whose wages or salary <br/>
<a id="pl.128.27"></a><var>128.27</var>are included in clause (1) or (2) that exceeds $125,000.<br/>
<a id="pl.128.28"></a><var>128.28</var>(f) "Minnesota payroll" means the wages or salaries attributed to Minnesota under <br/>
<a id="pl.128.29"></a><var>128.29</var>section 290.191, subdivision 12, for the qualified business or the unitary business of which <br/>
<a id="pl.128.30"></a><var>128.30</var>the qualified business is a part, whichever is greater.<br/>
<a id="pl.128.31"></a><var>128.31</var>(g) "Qualified business" means a qualified business certified under section <br/>
<a id="pl.128.32"></a><var>128.32</var>116J.3738, subdivision 3.<br/>
<a id="pl.128.33"></a><var>128.33</var>    Subd. 3. <b>Inflation adjustment.</b> For taxable years beginning after December 31, <br/>
<a id="pl.128.34"></a><var>128.34</var>2014, the dollar amounts in subdivision 1, clause (2), and subdivision 2, paragraph (e), are <br/>
<a id="pl.128.35"></a><var>128.35</var>annually adjusted for inflation. The commissioner of revenue shall adjust the amounts by <br/>
<a id="pl.128.36"></a><var>128.36</var>the percentage determined under section 290.06, subdivision 2d, for the taxable year.<br/>
<a id="pl.129.1"></a><var>129.1</var>    Subd. 4. <b>Refundable.</b> If the amount of the credit exceeds the liability for tax under <br/>
<a id="pl.129.2"></a><var>129.2</var>this chapter, the commissioner of revenue shall refund the excess to the qualified business. <br/>
<a id="pl.129.3"></a><var>129.3</var>    Subd. 5. <b>Appropriation.</b> An amount sufficient to pay the refunds authorized by this <br/>
<a id="pl.129.4"></a><var>129.4</var>section is appropriated to the commissioner of revenue from the general fund.<br/>
<a id="pl.129.5"></a><var>129.5</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.129.6"></a><var>129.6</var>December 31, 2013.<br/>
<br/>
<a id="bill.5.29.0"></a><a id="pl.129.7"></a><var>129.7</var>    Sec. 29. <b>[290.0683] CLOTHING SALES TAX CREDIT.</b><br/>
<a id="pl.129.8"></a><var>129.8</var>    Subdivision 1. <b>Definitions.</b> (a) For purposes of this section, the following terms <br/>
<a id="pl.129.9"></a><var>129.9</var>have the meanings given.<br/>
<a id="pl.129.10"></a><var>129.10</var>(b) "Income" has the meaning given in section 290.067, subdivision 2a.<br/>
<a id="pl.129.11"></a><var>129.11</var>(c) "Dependent" has the meaning given in section 152 of the Internal Revenue Code.<br/>
<a id="pl.129.12"></a><var>129.12</var>    Subd. 2. <b>Credit allowed.</b> A taxpayer is allowed a refundable credit against the tax <br/>
<a id="pl.129.13"></a><var>129.13</var>imposed under this chapter. The credit is equal to $60 for a married couple filing a joint <br/>
<a id="pl.129.14"></a><var>129.14</var>return, and $30 for all other filers, plus $30 for the first dependent claimed on the return, <br/>
<a id="pl.129.15"></a><var>129.15</var>$15 for each of the second and third dependents claimed on the return, $10 for the fourth <br/>
<a id="pl.129.16"></a><var>129.16</var>dependent claimed on the return, and $5 for each subsequent dependent.<br/>
<a id="pl.129.17"></a><var>129.17</var>    Subd. 3. <b>Limitations.</b> The credit allowed in this section is reduced by $10 for every <br/>
<a id="pl.129.18"></a><var>129.18</var>$1,000 of income in excess of 200 percent of the federal poverty guidelines.<br/>
<a id="pl.129.19"></a><var>129.19</var>    Subd. 4. <b>Appropriation.</b> An amount sufficient to pay the refunds required by this <br/>
<a id="pl.129.20"></a><var>129.20</var>section is appropriated to the commissioner from the general fund.<br/>
<a id="pl.129.21"></a><var>129.21</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.129.22"></a><var>129.22</var>December 31, 2012.<br/>
<br/>
<a id="bill.5.30.0"></a><a id="pl.129.23"></a><var>129.23</var>    Sec. 30. Minnesota Statutes 2012, section 290.091, subdivision 2, is amended to read:<br/>
<a id="pl.129.24"></a><var>129.24</var>    Subd. 2. <b>Definitions.</b> For purposes of the tax imposed by this section, the following <br/>
<a id="pl.129.25"></a><var>129.25</var>terms have the meanings given:<br/>
<a id="pl.129.26"></a><var>129.26</var>    (a) "Alternative minimum taxable income" means the sum of the following for <br/>
<a id="pl.129.27"></a><var>129.27</var>the taxable year:<br/>
<a id="pl.129.28"></a><var>129.28</var>    (1) the taxpayer's federal alternative minimum taxable income as defined in section <br/>
<a id="pl.129.29"></a><var>129.29</var>55(b)(2) of the Internal Revenue Code;<br/>
<a id="pl.129.30"></a><var>129.30</var>    (2) the taxpayer's itemized deductions allowed in computing federal alternative <br/>
<a id="pl.129.31"></a><var>129.31</var>minimum taxable income, but excluding:<br/>
<a id="pl.129.32"></a><var>129.32</var>    (i) the charitable contribution deduction under section 170 of the Internal Revenue <br/>
<a id="pl.129.33"></a><var>129.33</var>Code;<br/>
<a id="pl.130.1"></a><var>130.1</var>    (ii) the medical expense deduction;<br/>
<a id="pl.130.2"></a><var>130.2</var>    (iii) the casualty, theft, and disaster loss deduction; and<br/>
<a id="pl.130.3"></a><var>130.3</var>    (iv) the impairment-related work expenses of a disabled person;<br/>
<a id="pl.130.4"></a><var>130.4</var>    (3) for depletion allowances computed under section 613A(c) of the Internal <br/>
<a id="pl.130.5"></a><var>130.5</var>Revenue Code, with respect to each property (as defined in section 614 of the Internal <br/>
<a id="pl.130.6"></a><var>130.6</var>Revenue Code), to the extent not included in federal alternative minimum taxable income, <br/>
<a id="pl.130.7"></a><var>130.7</var>the excess of the deduction for depletion allowable under section 611 of the Internal <br/>
<a id="pl.130.8"></a><var>130.8</var>Revenue Code for the taxable year over the adjusted basis of the property at the end of the <br/>
<a id="pl.130.9"></a><var>130.9</var>taxable year (determined without regard to the depletion deduction for the taxable year);<br/>
<a id="pl.130.10"></a><var>130.10</var>    (4) to the extent not included in federal alternative minimum taxable income, the <br/>
<a id="pl.130.11"></a><var>130.11</var>amount of the tax preference for intangible drilling cost under section 57(a)(2) of the <br/>
<a id="pl.130.12"></a><var>130.12</var>Internal Revenue Code determined without regard to subparagraph (E);<br/>
<a id="pl.130.13"></a><var>130.13</var>    (5) to the extent not included in federal alternative minimum taxable income, the <br/>
<a id="pl.130.14"></a><var>130.14</var>amount of interest income as provided by section 
         <statute_ref>290.01, subdivision 19a</statute_ref>, clause (1); and<br/>
<a id="pl.130.15"></a><var>130.15</var>    (6) the amount of addition required by section 
         <statute_ref>290.01, subdivision 19a</statute_ref>, clauses (7) <br/>
<a id="pl.130.16"></a><var>130.16</var>to (9), (12), (13), and (16) to (18);<br/>
<a id="pl.130.17"></a><var>130.17</var>    less the sum of the amounts determined under the following:<br/>
<a id="pl.130.18"></a><var>130.18</var>    (1) interest income as defined in section 
         <statute_ref>290.01, subdivision 19b</statute_ref>, clause (1);<br/>
<a id="pl.130.19"></a><var>130.19</var>    (2) an overpayment of state income tax as provided by section 
         <statute_ref>290.01, subdivision <br/>
<a id="pl.130.20"></a><var>130.20</var>19b
         </statute_ref>, clause (2), to the extent included in federal alternative minimum taxable income;<br/>
<a id="pl.130.21"></a><var>130.21</var>    (3) the amount of investment interest paid or accrued within the taxable year on <br/>
<a id="pl.130.22"></a><var>130.22</var>indebtedness to the extent that the amount does not exceed net investment income, as <br/>
<a id="pl.130.23"></a><var>130.23</var>defined in section 163(d)(4) of the Internal Revenue Code. Interest does not include <br/>
<a id="pl.130.24"></a><var>130.24</var>amounts deducted in computing federal adjusted gross income;<br/>
<a id="pl.130.25"></a><var>130.25</var>    (4) amounts subtracted from federal taxable income as provided by section 
         <statute_ref>290.01, <br/>
<a id="pl.130.26"></a><var>130.26</var>subdivision 19b
         </statute_ref>, clauses (6), (8) to (14), and (16), and (18); and<br/>
<a id="pl.130.27"></a><var>130.27</var>(5) the amount of the net operating loss allowed under section 
         <statute_ref>290.095, subdivision <br/>
<a id="pl.130.28"></a><var>130.28</var>11
         </statute_ref>, paragraph (c).<br/>
<a id="pl.130.29"></a><var>130.29</var>    In the case of an estate or trust, alternative minimum taxable income must be <br/>
<a id="pl.130.30"></a><var>130.30</var>computed as provided in section 59(c) of the Internal Revenue Code.<br/>
<a id="pl.130.31"></a><var>130.31</var>    (b) "Investment interest" means investment interest as defined in section 163(d)(3) <br/>
<a id="pl.130.32"></a><var>130.32</var>of the Internal Revenue Code.<br/>
<a id="pl.130.33"></a><var>130.33</var>    (c) "Net minimum tax" means the minimum tax imposed by this section.<br/>
<a id="pl.130.34"></a><var>130.34</var>    (d) "Regular tax" means the tax that would be imposed under this chapter (without <br/>
<a id="pl.130.35"></a><var>130.35</var>regard to this section and section 290.032), reduced by the sum of the nonrefundable <br/>
<a id="pl.130.36"></a><var>130.36</var>credits allowed under this chapter.<br/>
<a id="pl.131.1"></a><var>131.1</var>    (e) "Tentative minimum tax" equals 6.4 percent of alternative minimum taxable <br/>
<a id="pl.131.2"></a><var>131.2</var>income after subtracting the exemption amount determined under subdivision 3.<br/>
<a id="pl.131.3"></a><var>131.3</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.131.4"></a><var>131.4</var>December 31, 2012.<br/>
<br/>
<a id="bill.5.31.0"></a><a id="pl.131.5"></a><var>131.5</var>    Sec. 31. Minnesota Statutes 2012, section 290.0921, subdivision 1, is amended to read:<br/>
<a id="pl.131.6"></a><var>131.6</var>    Subdivision 1. <b>Tax imposed.</b> In addition to the taxes computed under this chapter <br/>
<a id="pl.131.7"></a><var>131.7</var>without regard to this section, the franchise tax imposed on corporations includes a tax <br/>
<a id="pl.131.8"></a><var>131.8</var>equal to the excess, if any, for the taxable year of:<br/>
<a id="pl.131.9"></a><var>131.9</var>(1) 5.8 5.3 percent of Minnesota alternative minimum taxable income; over<br/>
<a id="pl.131.10"></a><var>131.10</var>(2) the tax imposed under section 
         <statute_ref>290.06, subdivision 1</statute_ref>, without regard to this section.<br/>
<a id="pl.131.11"></a><var>131.11</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.131.12"></a><var>131.12</var>December 31, 2012.<br/>
<br/>
<a id="bill.5.32.0"></a><a id="pl.131.13"></a><var>131.13</var>    Sec. 32. Minnesota Statutes 2012, section 290.0921, subdivision 3, is amended to read:<br/>
<a id="pl.131.14"></a><var>131.14</var>    Subd. 3. <b>Alternative minimum taxable income.</b> "Alternative minimum taxable <br/>
<a id="pl.131.15"></a><var>131.15</var>income" is Minnesota net income as defined in section 
         <statute_ref>290.01, subdivision 19</statute_ref>, and <br/>
<a id="pl.131.16"></a><var>131.16</var>includes the adjustments and tax preference items in sections 56, 57, 58, and 59(d), (e), <br/>
<a id="pl.131.17"></a><var>131.17</var>(f), and (h) of the Internal Revenue Code. If a corporation files a separate company <br/>
<a id="pl.131.18"></a><var>131.18</var>Minnesota tax return, the minimum tax must be computed on a separate company basis. <br/>
<a id="pl.131.19"></a><var>131.19</var>If a corporation is part of a tax group filing a unitary return, the minimum tax must be <br/>
<a id="pl.131.20"></a><var>131.20</var>computed on a unitary basis. The following adjustments must be made.<br/>
<a id="pl.131.21"></a><var>131.21</var>(1) For purposes of the depreciation adjustments under section 56(a)(1) and <br/>
<a id="pl.131.22"></a><var>131.22</var>56(g)(4)(A) of the Internal Revenue Code, the basis for depreciable property placed in <br/>
<a id="pl.131.23"></a><var>131.23</var>service in a taxable year beginning before January 1, 1990, is the adjusted basis for federal <br/>
<a id="pl.131.24"></a><var>131.24</var>income tax purposes, including any modification made in a taxable year under section <br/>
<statute_ref><a id="pl.131.25"></a><var>131.25</var>290.01, subdivision 19e
         </statute_ref>, or Minnesota Statutes 1986, section 
         <statute_ref>290.09, subdivision 7</statute_ref>, <br/>
<a id="pl.131.26"></a><var>131.26</var>paragraph (c).<br/>
<a id="pl.131.27"></a><var>131.27</var>For taxable years beginning after December 31, 2000, the amount of any remaining <br/>
<a id="pl.131.28"></a><var>131.28</var>modification made under section 
         <statute_ref>290.01, subdivision 19e</statute_ref>, or Minnesota Statutes 1986, <br/>
<a id="pl.131.29"></a><var>131.29</var>section 
         <statute_ref>290.09, subdivision 7</statute_ref>, paragraph (c), not previously deducted is a depreciation <br/>
<a id="pl.131.30"></a><var>131.30</var>allowance in the first taxable year after December 31, 2000.<br/>
<a id="pl.131.31"></a><var>131.31</var>(2) The portion of the depreciation deduction allowed for federal income tax <br/>
<a id="pl.131.32"></a><var>131.32</var>purposes under section 168(k) of the Internal Revenue Code that is required as an addition <br/>
<a id="pl.132.1"></a><var>132.1</var>under section 
         <statute_ref>290.01, subdivision 19c</statute_ref>, clause (15) (13), is disallowed in determining <br/>
<a id="pl.132.2"></a><var>132.2</var>alternative minimum taxable income.<br/>
<a id="pl.132.3"></a><var>132.3</var>(3) The subtraction for depreciation allowed under section 
         <statute_ref>290.01, subdivision <br/>
<a id="pl.132.4"></a><var>132.4</var>19d
         </statute_ref>, clause (17) (16), is allowed as a depreciation deduction in determining alternative <br/>
<a id="pl.132.5"></a><var>132.5</var>minimum taxable income.<br/>
<a id="pl.132.6"></a><var>132.6</var>(4) The alternative tax net operating loss deduction under sections 56(a)(4) and 56(d) <br/>
<a id="pl.132.7"></a><var>132.7</var>of the Internal Revenue Code does not apply.<br/>
<a id="pl.132.8"></a><var>132.8</var>(5) The special rule for certain dividends under section 56(g)(4)(C)(ii) of the Internal <br/>
<a id="pl.132.9"></a><var>132.9</var>Revenue Code does not apply.<br/>
<a id="pl.132.10"></a><var>132.10</var>(6) The special rule for dividends from section 936 companies under section <br/>
<a id="pl.132.11"></a><var>132.11</var>56(g)(4)(C)(iii) does not apply.<br/>
<a id="pl.132.12"></a><var>132.12</var>(7) (6) The tax preference for depletion under section 57(a)(1) of the Internal <br/>
<a id="pl.132.13"></a><var>132.13</var>Revenue Code does not apply.<br/>
<a id="pl.132.14"></a><var>132.14</var>(8) (7) The tax preference for intangible drilling costs under section 57(a)(2) of the <br/>
<a id="pl.132.15"></a><var>132.15</var>Internal Revenue Code must be calculated without regard to subparagraph (E) and the <br/>
<a id="pl.132.16"></a><var>132.16</var>subtraction under section 
         <statute_ref>290.01, subdivision 19d</statute_ref>, clause (4).<br/>
<a id="pl.132.17"></a><var>132.17</var>(9) (8) The tax preference for tax exempt interest under section 57(a)(5) of the <br/>
<a id="pl.132.18"></a><var>132.18</var>Internal Revenue Code does not apply.<br/>
<a id="pl.132.19"></a><var>132.19</var>(10) (9) The tax preference for charitable contributions of appreciated property <br/>
<a id="pl.132.20"></a><var>132.20</var>under section 57(a)(6) of the Internal Revenue Code does not apply.<br/>
<a id="pl.132.21"></a><var>132.21</var>(11) (10) For purposes of calculating the tax preference for accelerated depreciation <br/>
<a id="pl.132.22"></a><var>132.22</var>or amortization on certain property placed in service before January 1, 1987, under section <br/>
<a id="pl.132.23"></a><var>132.23</var>57(a)(7) of the Internal Revenue Code, the deduction allowable for the taxable year is the <br/>
<a id="pl.132.24"></a><var>132.24</var>deduction allowed under section 
         <statute_ref>290.01, subdivision 19e</statute_ref>.<br/>
<a id="pl.132.25"></a><var>132.25</var>For taxable years beginning after December 31, 2000, the amount of any remaining <br/>
<a id="pl.132.26"></a><var>132.26</var>modification made under section 
         <statute_ref>290.01, subdivision 19e</statute_ref>, not previously deducted is a <br/>
<a id="pl.132.27"></a><var>132.27</var>depreciation or amortization allowance in the first taxable year after December 31, 2004.<br/>
<a id="pl.132.28"></a><var>132.28</var>(12) (11) For purposes of calculating the adjustment for adjusted current earnings <br/>
<a id="pl.132.29"></a><var>132.29</var>in section 56(g) of the Internal Revenue Code, the term "alternative minimum taxable <br/>
<a id="pl.132.30"></a><var>132.30</var>income" as it is used in section 56(g) of the Internal Revenue Code, means alternative <br/>
<a id="pl.132.31"></a><var>132.31</var>minimum taxable income as defined in this subdivision, determined without regard to the <br/>
<a id="pl.132.32"></a><var>132.32</var>adjustment for adjusted current earnings in section 56(g) of the Internal Revenue Code.<br/>
<a id="pl.132.33"></a><var>132.33</var>(13) (12) For purposes of determining the amount of adjusted current earnings <br/>
<a id="pl.132.34"></a><var>132.34</var>under section 56(g)(3) of the Internal Revenue Code, no adjustment shall be made under <br/>
<a id="pl.132.35"></a><var>132.35</var>section 56(g)(4) of the Internal Revenue Code with respect to (i) the amount of foreign <br/>
<a id="pl.132.36"></a><var>132.36</var>dividend gross-up subtracted as provided in section 
         <statute_ref>290.01, subdivision 19d</statute_ref>, clause (1), <br/>
<a id="pl.133.1"></a><var>133.1</var>(ii) the amount of refunds of income, excise, or franchise taxes subtracted as provided in <br/>
<a id="pl.133.2"></a><var>133.2</var>section 
         <statute_ref>290.01, subdivision 19d</statute_ref>, clause (9), or (iii) the amount of royalties, fees or other <br/>
<a id="pl.133.3"></a><var>133.3</var>like income subtracted as provided in section 
<statute_ref>290.01, subdivision 19d</statute_ref>, clause (10).<br/>
<a id="pl.133.4"></a><var>133.4</var>(14) (13) Alternative minimum taxable income excludes the income from operating <br/>
<a id="pl.133.5"></a><var>133.5</var>in a job opportunity building zone as provided under section 
         <statute_ref>469.317</statute_ref>.<br/>
<a id="pl.133.6"></a><var>133.6</var>(15) (14) Alternative minimum taxable income excludes the income from operating <br/>
<a id="pl.133.7"></a><var>133.7</var>in a biotechnology and health sciences industry zone as provided under section 
         <statute_ref>469.337</statute_ref>.<br/>
<a id="pl.133.8"></a><var>133.8</var>Items of tax preference must not be reduced below zero as a result of the <br/>
<a id="pl.133.9"></a><var>133.9</var>modifications in this subdivision.<br/>
<a id="pl.133.10"></a><var>133.10</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.133.11"></a><var>133.11</var>December 31, 2012.<br/>
<br/>
<a id="bill.5.33.0"></a><a id="pl.133.12"></a><var>133.12</var>    Sec. 33. Minnesota Statutes 2012, section 290.0922, subdivision 1, is amended to read:<br/>
<a id="pl.133.13"></a><var>133.13</var>    Subdivision 1. <b>Imposition.</b> (a) In addition to the tax imposed by this chapter without <br/>
<a id="pl.133.14"></a><var>133.14</var>regard to this section, the franchise tax imposed on a corporation required to file under <br/>
<a id="pl.133.15"></a><var>133.15</var>section 
         <statute_ref>289A.08, subdivision 3</statute_ref>, other than a corporation treated as an "S" corporation <br/>
<a id="pl.133.16"></a><var>133.16</var>under section 
         <statute_ref>290.9725</statute_ref> for the taxable year includes a tax equal to the following amounts:<br/>
<table>
<col width="50px"/>
<col width="5"/>
<col width="2.5"/>
<col width="8.4"/>
<col width="2.5"/>
<col width="4"/>
<col width="8.6"/>
<col width="12.5"/>
<col width="2.5"/>
<col width="4.5"/>
<col width="13.600000000000001"/>
<tr>
<td><a id="pl.133.17"></a><var>133.17</var><br/>
<a id="pl.133.18"></a><var>133.18</var><br/>
</td>
<td colspan="6" valign="top">If the sum of the corporation's Minnesota <br/>
                  		property, payrolls, and sales or receipts is:<br/>
</td>
<td></td>
<td align="left" colspan="3">the tax equals: <br/>
</td>
</tr>
<tr>
<td><a id="pl.133.19"></a><var>133.19</var><br/>
<a id="pl.133.20"></a><var>133.20</var><br/>
</td>
<td></td>
<td></td>
<td align="right" colspan="2">less than <br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">500,000<br/>
930,000<br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">0<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.133.21"></a><var>133.21</var><br/>
<a id="pl.133.22"></a><var>133.22</var><br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">500,000<br/>
930,000<br/>
</td>
<td align="right">to<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">999,999<br/>
1,869,999<br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">100<br/>
190<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.133.23"></a><var>133.23</var><br/>
<a id="pl.133.24"></a><var>133.24</var><br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">1,000,000<br/>
1,870,000<br/>
</td>
<td align="right">to<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">4,999,999<br/>
9,339,999<br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">300<br/>
560<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.133.25"></a><var>133.25</var><br/>
<a id="pl.133.26"></a><var>133.26</var><br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">5,000,000<br/>
9,340,000<br/>
</td>
<td align="right">to<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">9,999,999<br/>
18,679,999<br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">1,000<br/>
1,870<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.133.27"></a><var>133.27</var><br/>
<a id="pl.133.28"></a><var>133.28</var><br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">10,000,000<br/>
18,680,000<br/>
</td>
<td align="right">to<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">19,999,999<br/>
37,359,999<br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">2,000<br/>
3,740<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.133.29"></a><var>133.29</var><br/>
<a id="pl.133.30"></a><var>133.30</var><br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">20,000,000<br/>
37,360,000<br/>
</td>
<td align="right">or <br/>
</td>
<td align="right">more<br/>
</td>
<td></td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">5,000<br/>
9,340<br/>
</td>
<td></td>
</tr>
</table><a id="pl.133.31"></a><var>133.31</var>(b) A tax is imposed for each taxable year on a corporation required to file a return <br/>
<a id="pl.133.32"></a><var>133.32</var>under section 
         <statute_ref>289A.12, subdivision 3</statute_ref>, that is treated as an "S" corporation under section <br/>
<statute_ref><a id="pl.133.33"></a><var>133.33</var>290.9725
         </statute_ref> and on a partnership required to file a return under section 
         <statute_ref>289A.12, subdivision <br/>
<a id="pl.133.34"></a><var>133.34</var>3
         </statute_ref>, other than a partnership that derives over 80 percent of its income from farming. The <br/>
<a id="pl.133.35"></a><var>133.35</var>tax imposed under this paragraph is due on or before the due date of the return for the <br/>
<a id="pl.133.36"></a><var>133.36</var>taxpayer due under section 
         <statute_ref>289A.18, subdivision 1</statute_ref>. The commissioner shall prescribe <br/>
<a id="pl.133.37"></a><var>133.37</var>the return to be used for payment of this tax. The tax under this paragraph is equal to <br/>
<a id="pl.133.38"></a><var>133.38</var>the following amounts:<br/>
<table>
<col width="50px"/>
<col width="5"/>
<col width="2.5"/>
<col width="8.4"/>
<col width="2.5"/>
<col width="4"/>
<col width="8.5"/>
<col width="12.5"/>
<col width="2.5"/>
<col width="4.4"/>
<col width="13.600000000000001"/>
<tr>
<td><a id="pl.134.1"></a><var>134.1</var><br/>
<a id="pl.134.2"></a><var>134.2</var><br/>
<a id="pl.134.3"></a><var>134.3</var><br/>
<a id="pl.134.4"></a><var>134.4</var><br/>
</td>
<td colspan="5">If the sum of the S corporation's <br/>
                  		or partnership's Minnesota <br/>
                  		property, payrolls, and sales or <br/>
                  		receipts is:<br/>
</td>
<td></td>
<td></td>
<td colspan="3">the tax equals: <br/>
</td>
</tr>
<tr>
<td><a id="pl.134.5"></a><var>134.5</var><br/>
<a id="pl.134.6"></a><var>134.6</var><br/>
</td>
<td></td>
<td></td>
<td align="right" colspan="2">less than<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">500,000<br/>
930,000<br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">0<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.134.7"></a><var>134.7</var><br/>
<a id="pl.134.8"></a><var>134.8</var><br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">500,000<br/>
930,000<br/>
</td>
<td align="right">to<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">999,999<br/>
1,869,999<br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">100<br/>
190<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.134.9"></a><var>134.9</var><br/>
<a id="pl.134.10"></a><var>134.10</var><br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">1,000,000<br/>
1,870,000<br/>
</td>
<td align="right">to<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">4,999,999<br/>
9,339,999<br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">300<br/>
560<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.134.11"></a><var>134.11</var><br/>
<a id="pl.134.12"></a><var>134.12</var><br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">5,000,000<br/>
9,340,000<br/>
</td>
<td align="right">to<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">9,999,999<br/>
18,679,999<br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">1,000<br/>
1,870<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.134.13"></a><var>134.13</var><br/>
<a id="pl.134.14"></a><var>134.14</var><br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">10,000,000<br/>
18,680,000<br/>
</td>
<td align="right">to<br/>
</td>
<td align="right">$<br/>
</td>
<td align="right">19,999,999<br/>
37,359,999<br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">2,000<br/>
3,740<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.134.15"></a><var>134.15</var><br/>
<a id="pl.134.16"></a><var>134.16</var><br/>
</td>
<td></td>
<td align="right">$<br/>
</td>
<td align="right">20,000,000<br/>
37,360,000<br/>
</td>
<td align="right">or<br/>
</td>
<td align="right">more<br/>
</td>
<td></td>
<td align="right"></td>
<td align="right">$<br/>
</td>
<td align="right">5,000<br/>
9,340<br/>
</td>
<td></td>
</tr>
</table><a id="pl.134.17"></a><var>134.17</var>(c) The commissioner shall adjust the dollar amounts of both the tax and the property, <br/>
<a id="pl.134.18"></a><var>134.18</var>payrolls, and sales or receipts thresholds in paragraphs (a) and (b) by the percentage <br/>
<a id="pl.134.19"></a><var>134.19</var>determined pursuant to the provisions of section 1(f) of the Internal Revenue Code, except <br/>
<a id="pl.134.20"></a><var>134.20</var>that in section 1(f)(3)(B) the year 2012 must be substituted for the year 1992. For 2014, <br/>
<a id="pl.134.21"></a><var>134.21</var>the commissioner shall determine the percentage change from the 12 months ending on <br/>
<a id="pl.134.22"></a><var>134.22</var>August 31, 2012, to the 12 months ending on August 31, 2013, and in each subsequent <br/>
<a id="pl.134.23"></a><var>134.23</var>year, from the 12 months ending on August 31, 2012, to the 12 months ending on August <br/>
<a id="pl.134.24"></a><var>134.24</var>31 of the year preceding the taxable year. The determination of the commissioner pursuant <br/>
<a id="pl.134.25"></a><var>134.25</var>to this subdivision is not a rule subject to the Administrative Procedure Act contained in <br/>
<a id="pl.134.26"></a><var>134.26</var>chapter 14. The tax amounts as adjusted must be rounded to the nearest $10 amount and <br/>
<a id="pl.134.27"></a><var>134.27</var>the threshold amounts must be adjusted to the nearest $10,000 amount. For tax amounts <br/>
<a id="pl.134.28"></a><var>134.28</var>that end in $5, the amount is rounded up to the nearest $10 amount and for threshold <br/>
<a id="pl.134.29"></a><var>134.29</var>amounts that end in $5,000, the amount is rounded up to the nearest $10,000.<br/>
<a id="pl.134.30"></a><var>134.30</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.134.31"></a><var>134.31</var>December 31, 2012.<br/>
<br/>
<a id="bill.5.34.0"></a><a id="pl.134.32"></a><var>134.32</var>    Sec. 34. Minnesota Statutes 2012, section 290.095, subdivision 2, is amended to read:<br/>
<a id="pl.134.33"></a><var>134.33</var>    Subd. 2. <b>Defined and limited.</b> (a) The term "net operating loss" as used in this <br/>
<a id="pl.134.34"></a><var>134.34</var>section shall mean a net operating loss as defined in section 172(c) of the Internal Revenue <br/>
<a id="pl.134.35"></a><var>134.35</var>Code, with the modifications specified in subdivision 4. The deductions provided in <br/>
<a id="pl.134.36"></a><var>134.36</var>section 
         <statute_ref>290.21</statute_ref> and the modification provided in section 
<statute_ref>290.01, subdivision 19d</statute_ref>, clause <br/>
<a id="pl.134.37"></a><var>134.37</var>(10), cannot be used in the determination of a net operating loss.<br/>
<a id="pl.134.38"></a><var>134.38</var>(b) The term "net operating loss deduction" as used in this section means the <br/>
<a id="pl.134.39"></a><var>134.39</var>aggregate of the net operating loss carryovers to the taxable year, computed in accordance <br/>
<a id="pl.135.1"></a><var>135.1</var>with subdivision 3. The provisions of section 172(b) of the Internal Revenue Code relating <br/>
<a id="pl.135.2"></a><var>135.2</var>to the carryback of net operating losses, do not apply.<br/>
<a id="pl.135.3"></a><var>135.3</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.135.4"></a><var>135.4</var>December 31, 2012.<br/>
<br/>
<a id="bill.5.35.0"></a><a id="pl.135.5"></a><var>135.5</var>    Sec. 35. Minnesota Statutes 2012, section 290.17, subdivision 4, is amended to read:<br/>
<a id="pl.135.6"></a><var>135.6</var>    Subd. 4. <b>Unitary business principle.</b> (a) If a trade or business conducted wholly <br/>
<a id="pl.135.7"></a><var>135.7</var>within this state or partly within and partly without this state is part of a unitary business, <br/>
<a id="pl.135.8"></a><var>135.8</var>the entire income of the unitary business is subject to apportionment pursuant to section <br/>
<statute_ref><a id="pl.135.9"></a><var>135.9</var>290.191
         </statute_ref>. Notwithstanding subdivision 2, paragraph (c), none of the income of a unitary <br/>
<a id="pl.135.10"></a><var>135.10</var>business is considered to be derived from any particular source and none may be allocated <br/>
<a id="pl.135.11"></a><var>135.11</var>to a particular place except as provided by the applicable apportionment formula. The <br/>
<a id="pl.135.12"></a><var>135.12</var>provisions of this subdivision do not apply to business income subject to subdivision 5, <br/>
<a id="pl.135.13"></a><var>135.13</var>income of an insurance company, or income of an investment company determined under <br/>
<a id="pl.135.14"></a><var>135.14</var>section 
         <statute_ref>290.36</statute_ref>.<br/>
<a id="pl.135.15"></a><var>135.15</var>(b) The term "unitary business" means business activities or operations which <br/>
<a id="pl.135.16"></a><var>135.16</var>result in a flow of value between them. The term may be applied within a single legal <br/>
<a id="pl.135.17"></a><var>135.17</var>entity or between multiple entities and without regard to whether each entity is a sole <br/>
<a id="pl.135.18"></a><var>135.18</var>proprietorship, a corporation, a partnership or a trust.<br/>
<a id="pl.135.19"></a><var>135.19</var>(c) Unity is presumed whenever there is unity of ownership, operation, and use, <br/>
<a id="pl.135.20"></a><var>135.20</var>evidenced by centralized management or executive force, centralized purchasing, <br/>
<a id="pl.135.21"></a><var>135.21</var>advertising, accounting, or other controlled interaction, but the absence of these <br/>
<a id="pl.135.22"></a><var>135.22</var>centralized activities will not necessarily evidence a nonunitary business. Unity is also <br/>
<a id="pl.135.23"></a><var>135.23</var>presumed when business activities or operations are of mutual benefit, dependent upon or <br/>
<a id="pl.135.24"></a><var>135.24</var>contributory to one another, either individually or as a group.<br/>
<a id="pl.135.25"></a><var>135.25</var>(d) Where a business operation conducted in Minnesota is owned by a business <br/>
<a id="pl.135.26"></a><var>135.26</var>entity that carries on business activity outside the state different in kind from that <br/>
<a id="pl.135.27"></a><var>135.27</var>conducted within this state, and the other business is conducted entirely outside the state, it <br/>
<a id="pl.135.28"></a><var>135.28</var>is presumed that the two business operations are unitary in nature, interrelated, connected, <br/>
<a id="pl.135.29"></a><var>135.29</var>and interdependent unless it can be shown to the contrary.<br/>
<a id="pl.135.30"></a><var>135.30</var>(e) Unity of ownership is not deemed to does not exist when a corporation is two or <br/>
<a id="pl.135.31"></a><var>135.31</var>more corporations are involved unless that corporation is a member of a group of two or <br/>
<a id="pl.135.32"></a><var>135.32</var>more business entities and more than 50 percent of the voting stock of each member of <br/>
<a id="pl.135.33"></a><var>135.33</var>the group corporation is directly or indirectly owned by a common owner or by common <br/>
<a id="pl.135.34"></a><var>135.34</var>owners, either corporate or noncorporate, or by one or more of the member corporations <br/>
<a id="pl.136.1"></a><var>136.1</var>of the group. For this purpose, the term "voting stock" shall include membership interests <br/>
<a id="pl.136.2"></a><var>136.2</var>of mutual insurance holding companies formed under section 
         <statute_ref>66A.40</statute_ref>.<br/>
<a id="pl.136.3"></a><var>136.3</var>(f) The net income and apportionment factors under section 
         <statute_ref>290.191</statute_ref> or 
         <statute_ref>290.20</statute_ref> of <br/>
<a id="pl.136.4"></a><var>136.4</var>foreign corporations and other foreign entities which are part of a unitary business shall not <br/>
<a id="pl.136.5"></a><var>136.5</var>be included in the net income or the apportionment factors of the unitary business; except <br/>
<a id="pl.136.6"></a><var>136.6</var>that the income and apportionment factors of a foreign corporation, foreign partnership, or <br/>
<a id="pl.136.7"></a><var>136.7</var>other foreign entity, that are included in the federal taxable income, as defined in section <br/>
<a id="pl.136.8"></a><var>136.8</var>63 of the Internal Revenue Code as amended through the date named in section 290.01, <br/>
<a id="pl.136.9"></a><var>136.9</var>subdivision 19, of a domestic corporation, domestic entity, or individual must be included <br/>
<a id="pl.136.10"></a><var>136.10</var>in determining net income and the factors to be used in the apportionment of net income <br/>
<a id="pl.136.11"></a><var>136.11</var>pursuant to section 290.191 or 290.20. A foreign corporation or other foreign entity which <br/>
<a id="pl.136.12"></a><var>136.12</var>is not part of a unitary business and which is required to file a return under this chapter shall <br/>
<a id="pl.136.13"></a><var>136.13</var>file on a separate return basis. The net income and apportionment factors under section <br/>
<a id="pl.136.14"></a><var>136.14</var><statute_ref>290.191</statute_ref> or 
<statute_ref>290.20</statute_ref> of foreign operating corporations shall not be included in the net income <br/>
<a id="pl.136.15"></a><var>136.15</var>or the apportionment factors of the unitary business except as provided in paragraph (g).<br/>
<a id="pl.136.16"></a><var>136.16</var>(g) The adjusted net income of a foreign operating corporation shall be deemed to <br/>
<a id="pl.136.17"></a><var>136.17</var>be paid as a dividend on the last day of its taxable year to each shareholder thereof, in <br/>
<a id="pl.136.18"></a><var>136.18</var>proportion to each shareholder's ownership, with which such corporation is engaged in <br/>
<a id="pl.136.19"></a><var>136.19</var>a unitary business. Such deemed dividend shall be treated as a dividend under section <br/>
<a id="pl.136.20"></a><var>136.20</var><statute_ref>290.21, subdivision 4</statute_ref>.<br/>
<a id="pl.136.21"></a><var>136.21</var>Dividends actually paid by a foreign operating corporation to a corporate shareholder <br/>
<a id="pl.136.22"></a><var>136.22</var>which is a member of the same unitary business as the foreign operating corporation shall <br/>
<a id="pl.136.23"></a><var>136.23</var>be eliminated from the net income of the unitary business in preparing a combined report <br/>
<a id="pl.136.24"></a><var>136.24</var>for the unitary business. The adjusted net income of a foreign operating corporation <br/>
<a id="pl.136.25"></a><var>136.25</var>shall be its net income adjusted as follows:<br/>
<a id="pl.136.26"></a><var>136.26</var>(1) any taxes paid or accrued to a foreign country, the commonwealth of Puerto <br/>
<a id="pl.136.27"></a><var>136.27</var>Rico, or a United States possession or political subdivision of any of the foregoing shall <br/>
<a id="pl.136.28"></a><var>136.28</var>be a deduction; and<br/>
<a id="pl.136.29"></a><var>136.29</var>(2) the subtraction from federal taxable income for payments received from foreign <br/>
<a id="pl.136.30"></a><var>136.30</var>corporations or foreign operating corporations under section 
<statute_ref>290.01, subdivision 19d</statute_ref>, <br/>
<a id="pl.136.31"></a><var>136.31</var>clause (10), shall not be allowed.<br/>
<a id="pl.136.32"></a><var>136.32</var>If a foreign operating corporation incurs a net loss, neither income nor deduction from <br/>
<a id="pl.136.33"></a><var>136.33</var>that corporation shall be included in determining the net income of the unitary business.<br/>
<a id="pl.136.34"></a><var>136.34</var>(h) (g) For purposes of determining the net income of a unitary business and the <br/>
<a id="pl.136.35"></a><var>136.35</var>factors to be used in the apportionment of net income pursuant to section 
         <statute_ref>290.191</statute_ref> or <br/>
<statute_ref><a id="pl.136.36"></a><var>136.36</var>290.20
         </statute_ref>, there must be included only the income and apportionment factors of domestic <br/>
<a id="pl.137.1"></a><var>137.1</var>corporations or other domestic entities other than foreign operating corporations that are <br/>
<a id="pl.137.2"></a><var>137.2</var>determined to be part of the unitary business pursuant to this subdivision, notwithstanding <br/>
<a id="pl.137.3"></a><var>137.3</var>that foreign corporations or other foreign entities might be included in the unitary <br/>
<a id="pl.137.4"></a><var>137.4</var>business; except that the income and apportionment factors of a foreign corporation, <br/>
<a id="pl.137.5"></a><var>137.5</var>foreign partnership, or other foreign entity, that is included in the federal taxable income, <br/>
<a id="pl.137.6"></a><var>137.6</var>as defined in section 63 of the Internal Revenue Code as amended through the date <br/>
<a id="pl.137.7"></a><var>137.7</var>named in section 290.01, subdivision 19, of a domestic corporation, domestic entity, or <br/>
<a id="pl.137.8"></a><var>137.8</var>individual must be included in determining net income and the factors to be used in the <br/>
<a id="pl.137.9"></a><var>137.9</var>apportionment of net income pursuant to section 290.191 or 290.20.<br/>
<a id="pl.137.10"></a><var>137.10</var>(i) Deductions for expenses, interest, or taxes otherwise allowable under this chapter <br/>
<a id="pl.137.11"></a><var>137.11</var>that are connected with or allocable against dividends, deemed dividends described <br/>
<a id="pl.137.12"></a><var>137.12</var>in paragraph (g), or royalties, fees, or other like income described in section 
<statute_ref>290.01, <br/>
<a id="pl.137.13"></a><var>137.13</var>subdivision 19d
</statute_ref>, clause (10), shall not be disallowed.<br/>
<a id="pl.137.14"></a><var>137.14</var>(j) (h) Each corporation or other entity, except a sole proprietorship, that is part of <br/>
<a id="pl.137.15"></a><var>137.15</var>a unitary business must file combined reports as the commissioner determines. On the <br/>
<a id="pl.137.16"></a><var>137.16</var>reports, all intercompany transactions between entities included pursuant to paragraph (h)<br/>
<a id="pl.137.17"></a><var>137.17</var> (g) must be eliminated and the entire net income of the unitary business determined in <br/>
<a id="pl.137.18"></a><var>137.18</var>accordance with this subdivision is apportioned among the entities by using each entity's <br/>
<a id="pl.137.19"></a><var>137.19</var>Minnesota factors for apportionment purposes in the numerators of the apportionment <br/>
<a id="pl.137.20"></a><var>137.20</var>formula and the total factors for apportionment purposes of all entities included pursuant to <br/>
<a id="pl.137.21"></a><var>137.21</var>paragraph (h) (g) in the denominators of the apportionment formula. All sales of the unitary <br/>
<a id="pl.137.22"></a><var>137.22</var>business made within this state pursuant to section 290.191 or 290.20 must be included <br/>
<a id="pl.137.23"></a><var>137.23</var>on the combined report of a corporation or other entity that is a member of the unitary <br/>
<a id="pl.137.24"></a><var>137.24</var>business and is subject to the jurisdiction of this state to impose tax under this chapter.<br/>
<a id="pl.137.25"></a><var>137.25</var>(k) (i) If a corporation has been divested from a unitary business and is included in a <br/>
<a id="pl.137.26"></a><var>137.26</var>combined report for a fractional part of the common accounting period of the combined <br/>
<a id="pl.137.27"></a><var>137.27</var>report:<br/>
<a id="pl.137.28"></a><var>137.28</var>(1) its income includable in the combined report is its income incurred for that part <br/>
<a id="pl.137.29"></a><var>137.29</var>of the year determined by proration or separate accounting; and<br/>
<a id="pl.137.30"></a><var>137.30</var>(2) its sales, property, and payroll included in the apportionment formula must <br/>
<a id="pl.137.31"></a><var>137.31</var>be prorated or accounted for separately.<br/>
<a id="pl.137.32"></a><var>137.32</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.137.33"></a><var>137.33</var>December 31, 2012.<br/>
<br/>
<a id="bill.5.36.0"></a><a id="pl.137.34"></a><var>137.34</var>    Sec. 36. Minnesota Statutes 2012, section 290.191, subdivision 5, is amended to read:<br/>
<a id="pl.138.1"></a><var>138.1</var>    Subd. 5. <b>Determination of sales factor.</b> For purposes of this section, the following <br/>
<a id="pl.138.2"></a><var>138.2</var>rules apply in determining the sales factor.<br/>
<a id="pl.138.3"></a><var>138.3</var>    (a) The sales factor includes all sales, gross earnings, or receipts received in the <br/>
<a id="pl.138.4"></a><var>138.4</var>ordinary course of the business, except that the following types of income are not included <br/>
<a id="pl.138.5"></a><var>138.5</var>in the sales factor:<br/>
<a id="pl.138.6"></a><var>138.6</var>    (1) interest;<br/>
<a id="pl.138.7"></a><var>138.7</var>    (2) dividends;<br/>
<a id="pl.138.8"></a><var>138.8</var>    (3) sales of capital assets as defined in section 1221 of the Internal Revenue Code;<br/>
<a id="pl.138.9"></a><var>138.9</var>    (4) sales of property used in the trade or business, except sales of leased property of <br/>
<a id="pl.138.10"></a><var>138.10</var>a type which is regularly sold as well as leased; and<br/>
<a id="pl.138.11"></a><var>138.11</var>    (5) sales of debt instruments as defined in section 1275(a)(1) of the Internal Revenue <br/>
<a id="pl.138.12"></a><var>138.12</var>Code or sales of stock; and.<br/>
<a id="pl.138.13"></a><var>138.13</var>    (6) royalties, fees, or other like income of a type which qualify for a subtraction from <br/>
<a id="pl.138.14"></a><var>138.14</var>federal taxable income under section 
<statute_ref>290.01, subdivision 19d</statute_ref>, clause (10).<br/>
<a id="pl.138.15"></a><var>138.15</var>    (b) Sales of tangible personal property are made within this state if the property is <br/>
<a id="pl.138.16"></a><var>138.16</var>received by a purchaser at a point within this state, and the taxpayer is taxable in this state, <br/>
<a id="pl.138.17"></a><var>138.17</var>regardless of the f.o.b. point, other conditions of the sale, or the ultimate destination <br/>
<a id="pl.138.18"></a><var>138.18</var>of the property.<br/>
<a id="pl.138.19"></a><var>138.19</var>    (c) Tangible personal property delivered to a common or contract carrier or foreign <br/>
<a id="pl.138.20"></a><var>138.20</var>vessel for delivery to a purchaser in another state or nation is a sale in that state or nation, <br/>
<a id="pl.138.21"></a><var>138.21</var>regardless of f.o.b. point or other conditions of the sale.<br/>
<a id="pl.138.22"></a><var>138.22</var>    (d) Notwithstanding paragraphs (b) and (c), when intoxicating liquor, wine, <br/>
<a id="pl.138.23"></a><var>138.23</var>fermented malt beverages, cigarettes, or tobacco products are sold to a purchaser who is <br/>
<a id="pl.138.24"></a><var>138.24</var>licensed by a state or political subdivision to resell this property only within the state of <br/>
<a id="pl.138.25"></a><var>138.25</var>ultimate destination, the sale is made in that state.<br/>
<a id="pl.138.26"></a><var>138.26</var>    (e) Sales made by or through a corporation that is qualified as a domestic <br/>
<a id="pl.138.27"></a><var>138.27</var>international sales corporation under section 992 of the Internal Revenue Code are not <br/>
<a id="pl.138.28"></a><var>138.28</var>considered to have been made within this state.<br/>
<a id="pl.138.29"></a><var>138.29</var>    (f) Sales, rents, royalties, and other income in connection with real property is <br/>
<a id="pl.138.30"></a><var>138.30</var>attributed to the state in which the property is located.<br/>
<a id="pl.138.31"></a><var>138.31</var>    (g) Receipts from the lease or rental of tangible personal property, including finance <br/>
<a id="pl.138.32"></a><var>138.32</var>leases and true leases, must be attributed to this state if the property is located in this <br/>
<a id="pl.138.33"></a><var>138.33</var>state and to other states if the property is not located in this state. Receipts from the <br/>
<a id="pl.138.34"></a><var>138.34</var>lease or rental of moving property including, but not limited to, motor vehicles, rolling <br/>
<a id="pl.138.35"></a><var>138.35</var>stock, aircraft, vessels, or mobile equipment are included in the numerator of the receipts <br/>
<a id="pl.139.1"></a><var>139.1</var>factor to the extent that the property is used in this state. The extent of the use of moving <br/>
<a id="pl.139.2"></a><var>139.2</var>property is determined as follows:<br/>
<a id="pl.139.3"></a><var>139.3</var>    (1) A motor vehicle is used wholly in the state in which it is registered.<br/>
<a id="pl.139.4"></a><var>139.4</var>    (2) The extent that rolling stock is used in this state is determined by multiplying <br/>
<a id="pl.139.5"></a><var>139.5</var>the receipts from the lease or rental of the rolling stock by a fraction, the numerator of <br/>
<a id="pl.139.6"></a><var>139.6</var>which is the miles traveled within this state by the leased or rented rolling stock and the <br/>
<a id="pl.139.7"></a><var>139.7</var>denominator of which is the total miles traveled by the leased or rented rolling stock.<br/>
<a id="pl.139.8"></a><var>139.8</var>    (3) The extent that an aircraft is used in this state is determined by multiplying the <br/>
<a id="pl.139.9"></a><var>139.9</var>receipts from the lease or rental of the aircraft by a fraction, the numerator of which is <br/>
<a id="pl.139.10"></a><var>139.10</var>the number of landings of the aircraft in this state and the denominator of which is the <br/>
<a id="pl.139.11"></a><var>139.11</var>total number of landings of the aircraft.<br/>
<a id="pl.139.12"></a><var>139.12</var>    (4) The extent that a vessel, mobile equipment, or other mobile property is used in <br/>
<a id="pl.139.13"></a><var>139.13</var>the state is determined by multiplying the receipts from the lease or rental of the property <br/>
<a id="pl.139.14"></a><var>139.14</var>by a fraction, the numerator of which is the number of days during the taxable year the <br/>
<a id="pl.139.15"></a><var>139.15</var>property was in this state and the denominator of which is the total days in the taxable year.<br/>
<a id="pl.139.16"></a><var>139.16</var>    (h) Royalties and other income not described in paragraph (a), clause (6), received <br/>
<a id="pl.139.17"></a><var>139.17</var>for the use of or for the privilege of using intangible property, including patents, <br/>
<a id="pl.139.18"></a><var>139.18</var>know-how, formulas, designs, processes, patterns, copyrights, trade names, service names, <br/>
<a id="pl.139.19"></a><var>139.19</var>franchises, licenses, contracts, customer lists, or similar items, must be attributed to the <br/>
<a id="pl.139.20"></a><var>139.20</var>state in which the property is used by the purchaser. If the property is used in more <br/>
<a id="pl.139.21"></a><var>139.21</var>than one state, the royalties or other income must be apportioned to this state pro rata <br/>
<a id="pl.139.22"></a><var>139.22</var>according to the portion of use in this state. If the portion of use in this state cannot be <br/>
<a id="pl.139.23"></a><var>139.23</var>determined, the royalties or other income must be excluded from both the numerator <br/>
<a id="pl.139.24"></a><var>139.24</var>and the denominator. Intangible property is used in this state if the purchaser uses the <br/>
<a id="pl.139.25"></a><var>139.25</var>intangible property or the rights therein in the regular course of its business operations in <br/>
<a id="pl.139.26"></a><var>139.26</var>this state, regardless of the location of the purchaser's customers.<br/>
<a id="pl.139.27"></a><var>139.27</var>    (i) Sales of intangible property are made within the state in which the property is <br/>
<a id="pl.139.28"></a><var>139.28</var>used by the purchaser. If the property is used in more than one state, the sales must be <br/>
<a id="pl.139.29"></a><var>139.29</var>apportioned to this state pro rata according to the portion of use in this state. If the <br/>
<a id="pl.139.30"></a><var>139.30</var>portion of use in this state cannot be determined, the sale must be excluded from both the <br/>
<a id="pl.139.31"></a><var>139.31</var>numerator and the denominator of the sales factor. Intangible property is used in this <br/>
<a id="pl.139.32"></a><var>139.32</var>state if the purchaser used the intangible property in the regular course of its business <br/>
<a id="pl.139.33"></a><var>139.33</var>operations in this state.<br/>
<a id="pl.139.34"></a><var>139.34</var>    (j) Receipts from the performance of services must be attributed to the state where <br/>
<a id="pl.139.35"></a><var>139.35</var>the services are received. For the purposes of this section, receipts from the performance <br/>
<a id="pl.139.36"></a><var>139.36</var>of services provided to a corporation, partnership, or trust may only be attributed to a state <br/>
<a id="pl.140.1"></a><var>140.1</var>where it has a fixed place of doing business. If the state where the services are received is <br/>
<a id="pl.140.2"></a><var>140.2</var>not readily determinable or is a state where the corporation, partnership, or trust receiving <br/>
<a id="pl.140.3"></a><var>140.3</var>the service does not have a fixed place of doing business, the services shall be deemed <br/>
<a id="pl.140.4"></a><var>140.4</var>to be received at the location of the office of the customer from which the services were <br/>
<a id="pl.140.5"></a><var>140.5</var>ordered in the regular course of the customer's trade or business. If the ordering office <br/>
<a id="pl.140.6"></a><var>140.6</var>cannot be determined, the services shall be deemed to be received at the office of the <br/>
<a id="pl.140.7"></a><var>140.7</var>customer to which the services are billed.<br/>
<a id="pl.140.8"></a><var>140.8</var>    (k) For the purposes of this subdivision and subdivision 6, paragraph (l), receipts <br/>
<a id="pl.140.9"></a><var>140.9</var>from management, distribution, or administrative services performed by a corporation <br/>
<a id="pl.140.10"></a><var>140.10</var>or trust for a fund of a corporation or trust regulated under United States Code, title 15, <br/>
<a id="pl.140.11"></a><var>140.11</var>sections 80a-1 through 80a-64, must be attributed to the state where the shareholder of <br/>
<a id="pl.140.12"></a><var>140.12</var>the fund resides. Under this paragraph, receipts for services attributed to shareholders are <br/>
<a id="pl.140.13"></a><var>140.13</var>determined on the basis of the ratio of: (1) the average of the outstanding shares in the <br/>
<a id="pl.140.14"></a><var>140.14</var>fund owned by shareholders residing within Minnesota at the beginning and end of each <br/>
<a id="pl.140.15"></a><var>140.15</var>year; and (2) the average of the total number of outstanding shares in the fund at the <br/>
<a id="pl.140.16"></a><var>140.16</var>beginning and end of each year. Residence of the shareholder, in the case of an individual, <br/>
<a id="pl.140.17"></a><var>140.17</var>is determined by the mailing address furnished by the shareholder to the fund. Residence <br/>
<a id="pl.140.18"></a><var>140.18</var>of the shareholder, when the shares are held by an insurance company as a depositor for <br/>
<a id="pl.140.19"></a><var>140.19</var>the insurance company policyholders, is the mailing address of the policyholders. In <br/>
<a id="pl.140.20"></a><var>140.20</var>the case of an insurance company holding the shares as a depositor for the insurance <br/>
<a id="pl.140.21"></a><var>140.21</var>company policyholders, if the mailing address of the policyholders cannot be determined <br/>
<a id="pl.140.22"></a><var>140.22</var>by the taxpayer, the receipts must be excluded from both the numerator and denominator. <br/>
<a id="pl.140.23"></a><var>140.23</var>Residence of other shareholders is the mailing address of the shareholder.<br/>
<a id="pl.140.24"></a><var>140.24</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.140.25"></a><var>140.25</var>December 31, 2012.<br/>
<br/>
<a id="bill.5.37.0"></a><a id="pl.140.26"></a><var>140.26</var>    Sec. 37. Minnesota Statutes 2012, section 290.21, subdivision 4, is amended to read:<br/>
<a id="pl.140.27"></a><var>140.27</var>    Subd. 4. <b>Dividends received from another corporation.</b> (a)(1) Eighty percent <br/>
<a id="pl.140.28"></a><var>140.28</var>of dividends received by a corporation during the taxable year from another corporation, <br/>
<a id="pl.140.29"></a><var>140.29</var>in which the recipient owns 20 percent or more of the stock, by vote and value, not <br/>
<a id="pl.140.30"></a><var>140.30</var>including stock described in section 1504(a)(4) of the Internal Revenue Code when the <br/>
<a id="pl.140.31"></a><var>140.31</var>corporate stock with respect to which dividends are paid does not constitute the stock in <br/>
<a id="pl.140.32"></a><var>140.32</var>trade of the taxpayer or would not be included in the inventory of the taxpayer, or does not <br/>
<a id="pl.140.33"></a><var>140.33</var>constitute property held by the taxpayer primarily for sale to customers in the ordinary <br/>
<a id="pl.140.34"></a><var>140.34</var>course of the taxpayer's trade or business, or when the trade or business of the taxpayer <br/>
<a id="pl.141.1"></a><var>141.1</var>does not consist principally of the holding of the stocks and the collection of the income <br/>
<a id="pl.141.2"></a><var>141.2</var>and gains therefrom; and<br/>
<a id="pl.141.3"></a><var>141.3</var>    (2)(i) the remaining 20 percent of dividends if the dividends received are the stock in <br/>
<a id="pl.141.4"></a><var>141.4</var>an affiliated company transferred in an overall plan of reorganization and the dividend <br/>
<a id="pl.141.5"></a><var>141.5</var>is eliminated in consolidation under Treasury Department Regulation 1.1502-14(a), as <br/>
<a id="pl.141.6"></a><var>141.6</var>amended through December 31, 1989;<br/>
<a id="pl.141.7"></a><var>141.7</var>    (ii) the remaining 20 percent of dividends if the dividends are received from a <br/>
<a id="pl.141.8"></a><var>141.8</var>corporation which is subject to tax under section 
         <statute_ref>290.36</statute_ref> and which is a member of an <br/>
<a id="pl.141.9"></a><var>141.9</var>affiliated group of corporations as defined by the Internal Revenue Code and the dividend <br/>
<a id="pl.141.10"></a><var>141.10</var>is eliminated in consolidation under Treasury Department Regulation 1.1502-14(a), as <br/>
<a id="pl.141.11"></a><var>141.11</var>amended through December 31, 1989, or is deducted under an election under section <br/>
<a id="pl.141.12"></a><var>141.12</var>243(b) of the Internal Revenue Code; or<br/>
<a id="pl.141.13"></a><var>141.13</var>    (iii) the remaining 20 percent of the dividends if the dividends are received from a <br/>
<a id="pl.141.14"></a><var>141.14</var>property and casualty insurer as defined under section 
         <statute_ref>60A.60, subdivision 8</statute_ref>, which is a <br/>
<a id="pl.141.15"></a><var>141.15</var>member of an affiliated group of corporations as defined by the Internal Revenue Code <br/>
<a id="pl.141.16"></a><var>141.16</var>and either: (A) the dividend is eliminated in consolidation under Treasury Regulation <br/>
<a id="pl.141.17"></a><var>141.17</var>1.1502-14(a), as amended through December 31, 1989; or (B) the dividend is deducted <br/>
<a id="pl.141.18"></a><var>141.18</var>under an election under section 243(b) of the Internal Revenue Code.<br/>
<a id="pl.141.19"></a><var>141.19</var>    (b) Seventy percent of dividends received by a corporation during the taxable year <br/>
<a id="pl.141.20"></a><var>141.20</var>from another corporation in which the recipient owns less than 20 percent of the stock, <br/>
<a id="pl.141.21"></a><var>141.21</var>by vote or value, not including stock described in section 1504(a)(4) of the Internal <br/>
<a id="pl.141.22"></a><var>141.22</var>Revenue Code when the corporate stock with respect to which dividends are paid does not <br/>
<a id="pl.141.23"></a><var>141.23</var>constitute the stock in trade of the taxpayer, or does not constitute property held by the <br/>
<a id="pl.141.24"></a><var>141.24</var>taxpayer primarily for sale to customers in the ordinary course of the taxpayer's trade or <br/>
<a id="pl.141.25"></a><var>141.25</var>business, or when the trade or business of the taxpayer does not consist principally of the <br/>
<a id="pl.141.26"></a><var>141.26</var>holding of the stocks and the collection of income and gain therefrom.<br/>
<a id="pl.141.27"></a><var>141.27</var>    (c) The dividend deduction provided in this subdivision shall be allowed only with <br/>
<a id="pl.141.28"></a><var>141.28</var>respect to dividends that are included in a corporation's Minnesota taxable net income <br/>
<a id="pl.141.29"></a><var>141.29</var>for the taxable year.<br/>
<a id="pl.141.30"></a><var>141.30</var>    The dividend deduction provided in this subdivision does not apply to a dividend <br/>
<a id="pl.141.31"></a><var>141.31</var>from a corporation which, for the taxable year of the corporation in which the distribution <br/>
<a id="pl.141.32"></a><var>141.32</var>is made or for the next preceding taxable year of the corporation, is a corporation exempt <br/>
<a id="pl.141.33"></a><var>141.33</var>from tax under section 501 of the Internal Revenue Code.<br/>
<a id="pl.141.34"></a><var>141.34</var>The dividend deduction provided in this subdivision does not apply to a dividend <br/>
<a id="pl.141.35"></a><var>141.35</var>received from a real estate investment trust as defined in section 856 of the Internal <br/>
<a id="pl.141.36"></a><var>141.36</var>Revenue Code.<br/>
<a id="pl.142.1"></a><var>142.1</var>    The dividend deduction provided in this subdivision applies to the amount of <br/>
<a id="pl.142.2"></a><var>142.2</var>regulated investment company dividends only to the extent determined under section <br/>
<a id="pl.142.3"></a><var>142.3</var>854(b) of the Internal Revenue Code.<br/>
<a id="pl.142.4"></a><var>142.4</var>    The dividend deduction provided in this subdivision shall not be allowed with <br/>
<a id="pl.142.5"></a><var>142.5</var>respect to any dividend for which a deduction is not allowed under the provisions of <br/>
<a id="pl.142.6"></a><var>142.6</var>section 246(c) of the Internal Revenue Code.<br/>
<a id="pl.142.7"></a><var>142.7</var>    (d) If dividends received by a corporation that does not have nexus with Minnesota <br/>
<a id="pl.142.8"></a><var>142.8</var>under the provisions of Public Law 86-272 are included as income on the return of <br/>
<a id="pl.142.9"></a><var>142.9</var>an affiliated corporation permitted or required to file a combined report under section <br/>
<statute_ref><a id="pl.142.10"></a><var>142.10</var>290.17, subdivision 4
         </statute_ref>, or 
         <statute_ref>290.34, subdivision 2</statute_ref>, then for purposes of this subdivision the <br/>
<a id="pl.142.11"></a><var>142.11</var>determination as to whether the trade or business of the corporation consists principally <br/>
<a id="pl.142.12"></a><var>142.12</var>of the holding of stocks and the collection of income and gains therefrom shall be made <br/>
<a id="pl.142.13"></a><var>142.13</var>with reference to the trade or business of the affiliated corporation having a nexus with <br/>
<a id="pl.142.14"></a><var>142.14</var>Minnesota.<br/>
<a id="pl.142.15"></a><var>142.15</var>    (e) The deduction provided by this subdivision does not apply if the dividends are <br/>
<a id="pl.142.16"></a><var>142.16</var>paid by a FSC as defined in section 922 of the Internal Revenue Code.<br/>
<a id="pl.142.17"></a><var>142.17</var>    (f) If one or more of the members of the unitary group whose income is included on <br/>
<a id="pl.142.18"></a><var>142.18</var>the combined report received a dividend, the deduction under this subdivision for each <br/>
<a id="pl.142.19"></a><var>142.19</var>member of the unitary business required to file a return under this chapter is the product <br/>
<a id="pl.142.20"></a><var>142.20</var>of: (1) 100 percent of the dividends received by members of the group; (2) the percentage <br/>
<a id="pl.142.21"></a><var>142.21</var>allowed pursuant to paragraph (a) or (b); and (3) the percentage of the taxpayer's business <br/>
<a id="pl.142.22"></a><var>142.22</var>income apportionable to this state for the taxable year under section 
         <statute_ref>290.191</statute_ref> or 
         <statute_ref>290.20</statute_ref>.<br/>
<a id="pl.142.23"></a><var>142.23</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.142.24"></a><var>142.24</var>December 31, 2012.<br/>
<br/>
<a id="bill.5.38.0"></a><a id="pl.142.25"></a><var>142.25</var>    Sec. 38. Minnesota Statutes 2012, section 297G.04, subdivision 2, is amended to read:<br/>
<a id="pl.142.26"></a><var>142.26</var>    Subd. 2. <b>Tax credit.</b> A qualified brewer producing fermented malt beverages <br/>
<a id="pl.142.27"></a><var>142.27</var>is entitled to a tax credit of $4.60 per barrel on 25,000 barrels sold in any fiscal year <br/>
<a id="pl.142.28"></a><var>142.28</var>beginning July 1, regardless of the alcohol content of the product. Qualified brewers may <br/>
<a id="pl.142.29"></a><var>142.29</var>take the credit on the 18th day of each month, but the total credit allowed may not exceed <br/>
<a id="pl.142.30"></a><var>142.30</var>in any fiscal year the lesser of:<br/>
<a id="pl.142.31"></a><var>142.31</var>    (1) the liability for tax; or<br/>
<a id="pl.142.32"></a><var>142.32</var>    (2) $115,000.<br/>
<a id="pl.142.33"></a><var>142.33</var>    For purposes of this subdivision, a "qualified brewer" means a brewer, whether or <br/>
<a id="pl.142.34"></a><var>142.34</var>not located in this state, manufacturing less than 100,000 250,000 barrels of fermented <br/>
<a id="pl.142.35"></a><var>142.35</var>malt beverages in the calendar year immediately preceding the calendar year for which <br/>
<a id="pl.143.1"></a><var>143.1</var>the credit under this subdivision is claimed. In determining the number of barrels, all <br/>
<a id="pl.143.2"></a><var>143.2</var>brands or labels of a brewer must be combined. All facilities for the manufacture of <br/>
<a id="pl.143.3"></a><var>143.3</var>fermented malt beverages owned or controlled by the same person, corporation, or other <br/>
<a id="pl.143.4"></a><var>143.4</var>entity must be treated as a single brewer.<br/>
<a id="pl.143.5"></a><var>143.5</var><b>EFFECTIVE DATE.</b>This section is effective for determinations based on calendar <br/>
<a id="pl.143.6"></a><var>143.6</var>year 2012 production and thereafter.<br/>
<br/>
<a id="bill.5.39.0"></a><a id="pl.143.7"></a><var>143.7</var>    Sec. 39. Minnesota Statutes 2012, section 298.01, subdivision 3b, is amended to read:<br/>
<a id="pl.143.8"></a><var>143.8</var>    Subd. 3b. <b>Deductions.</b> (a) For purposes of determining taxable income under <br/>
<a id="pl.143.9"></a><var>143.9</var>subdivision 3, the deductions from gross income include only those expenses necessary <br/>
<a id="pl.143.10"></a><var>143.10</var>to convert raw ores to marketable quality. Such expenses include costs associated with <br/>
<a id="pl.143.11"></a><var>143.11</var>refinement but do not include expenses such as transportation, stockpiling, marketing, or <br/>
<a id="pl.143.12"></a><var>143.12</var>marine insurance that are incurred after marketable ores are produced, unless the expenses <br/>
<a id="pl.143.13"></a><var>143.13</var>are included in gross income. The allowable deductions from a mine or plant that mines <br/>
<a id="pl.143.14"></a><var>143.14</var>and produces more than one mineral, metal, or energy resource must be determined <br/>
<a id="pl.143.15"></a><var>143.15</var>separately for the purposes of computing the deduction in section 
         <statute_ref>290.01</statute_ref>, subdivision 19c, <br/>
<a id="pl.143.16"></a><var>143.16</var>clause (9). These deductions may be combined on one occupation tax return to arrive at <br/>
<a id="pl.143.17"></a><var>143.17</var>the deduction from gross income for all production.<br/>
<a id="pl.143.18"></a><var>143.18</var>(b) The provisions of section 
         <statute_ref>290.01, subdivisions 19c, clauses (6)</statute_ref> and (9), and 19d, <br/>
<a id="pl.143.19"></a><var>143.19</var>clauses (7) and (11) (10), are not used to determine taxable income.<br/>
<a id="pl.143.20"></a><var>143.20</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.143.21"></a><var>143.21</var>December 31, 2012.<br/>
<br/>
<a id="bill.5.40.0"></a><a id="pl.143.22"></a><var>143.22</var>    Sec. 40. Laws 2010, chapter 216, section 11, the effective date, is amended to read:<br/>
<a id="pl.143.23"></a><var>143.23</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning <br/>
<a id="pl.143.24"></a><var>143.24</var>after December 31, 2009, for certified historic structures for which qualified costs of <br/>
<a id="pl.143.25"></a><var>143.25</var>rehabilitation are first paid under construction contracts entered into after May 1, 2010<br/>
<a id="pl.143.26"></a><var>143.26</var> rehabilitation expenditures are first paid by the developer or taxpayer after May 1, 2010, <br/>
<a id="pl.143.27"></a><var>143.27</var>for rehabilitation that occurs after May 1, 2010, provided that the application under <br/>
<a id="pl.143.28"></a><var>143.28</var>subdivision 3 is submitted before the project is placed in service.<br/>
<a id="pl.143.29"></a><var>143.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.143.30"></a><var>143.30</var>and applies retroactively for taxable years beginning after December 31, 2009, and for <br/>
<a id="pl.143.31"></a><var>143.31</var>certified historic structures placed in service after May 1, 2010, but the office may not <br/>
<a id="pl.143.32"></a><var>143.32</var>issue certificates allowed under the change to this section until July 1, 2013.<br/>
<br/>
<a id="bill.5.41.0"></a><a id="pl.144.1"></a><var>144.1</var>    Sec. 41. <b>CLOTHING SALES TAX CREDIT; TAX YEAR 2013.</b><br/>
<a id="pl.144.2"></a><var>144.2</var>For tax year 2013 only, the credit calculated under Minnesota Statutes, section <br/>
<a id="pl.144.3"></a><var>144.3</var>290.0683, is the credit under Minnesota Statutes, section 290.0683, subdivision 2, after <br/>
<a id="pl.144.4"></a><var>144.4</var>limitations imposed under Minnesota Statutes, section 290.0683, subdivision 3, multiplied <br/>
<a id="pl.144.5"></a><var>144.5</var>by one-half.<br/>
<a id="pl.144.6"></a><var>144.6</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.144.7"></a><var>144.7</var>December 31, 2012.<br/>
<br/>
<a id="bill.5.42.0"></a><a id="pl.144.8"></a><var>144.8</var>    Sec. 42. <b> REPEALER.</b><br/>
<a id="pl.144.9"></a><var>144.9</var>Minnesota Statutes 2012, sections 290.01, subdivision 6b; and 290.0921, subdivision <br/>
<a id="pl.144.10"></a><var>144.10</var>7, are repealed.<br/>
<a id="pl.144.11"></a><var>144.11</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.144.12"></a><var>144.12</var>December 31, 2012.<br/>
<br/>
<a id="bill.6.0.0"></a>

<a id="bill.6.1.0"></a><a id="pl.144.15"></a><var>144.15</var>    Section 1. Minnesota Statutes 2012, section 291.03, subdivision 8, is amended to read:<br/>
<a id="pl.144.16"></a><var>144.16</var>    Subd. 8. <b>Definitions.</b> (a) For purposes of this section, the following terms have the <br/>
<a id="pl.144.17"></a><var>144.17</var>meanings given in this subdivision.<br/>
<a id="pl.144.18"></a><var>144.18</var>(b) "Family member" means a family member as defined in section 2032A(e)(2) of <br/>
<a id="pl.144.19"></a><var>144.19</var>the Internal Revenue Code, or a trust whose present beneficiaries are all family members <br/>
<a id="pl.144.20"></a><var>144.20</var>as defined in section 2032A(e)(2) of the Internal Revenue Code.<br/>
<a id="pl.144.21"></a><var>144.21</var>(c) "Qualified heir" means a family member who acquired qualified property from<br/>
<a id="pl.144.22"></a><var>144.22</var> upon the death of the decedent and satisfies the requirement under subdivision 9, clause <br/>
<a id="pl.144.23"></a><var>144.23</var>(6) (7), or subdivision 10, clause (4) (5), for the property.<br/>
<a id="pl.144.24"></a><var>144.24</var>(d) "Qualified property" means qualified small business property under subdivision <br/>
<a id="pl.144.25"></a><var>144.25</var>9 and qualified farm property under subdivision 10.<br/>
<a id="pl.144.26"></a><var>144.26</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for estates of decedents <br/>
<a id="pl.144.27"></a><var>144.27</var>dying after June 30, 2011.<br/>
<br/>
<a id="bill.6.2.0"></a><a id="pl.144.28"></a><var>144.28</var>    Sec. 2. Minnesota Statutes 2012, section 291.03, subdivision 9, is amended to read:<br/>
<a id="pl.144.29"></a><var>144.29</var>    Subd. 9. <b>Qualified small business property.</b> Property satisfying all of the following <br/>
<a id="pl.144.30"></a><var>144.30</var>requirements is qualified small business property:<br/>
<a id="pl.144.31"></a><var>144.31</var>(1) The value of the property was included in the federal adjusted taxable estate.<br/>
<a id="pl.145.1"></a><var>145.1</var>(2) The property consists of the assets of a trade or business or shares of stock or <br/>
<a id="pl.145.2"></a><var>145.2</var>other ownership interests in a corporation or other entity engaged in a trade or business. <br/>
<a id="pl.145.3"></a><var>145.3</var>The decedent or the decedent's spouse must have materially participated in the trade or <br/>
<a id="pl.145.4"></a><var>145.4</var>business within the meaning of section 469 of the Internal Revenue Code during the <br/>
<a id="pl.145.5"></a><var>145.5</var>taxable year that ended before the date of the decedent's death. Shares of stock in a <br/>
<a id="pl.145.6"></a><var>145.6</var>corporation or an ownership interest in another type of entity do not qualify under this <br/>
<a id="pl.145.7"></a><var>145.7</var>subdivision if the shares or ownership interests are traded on a public stock exchange at <br/>
<a id="pl.145.8"></a><var>145.8</var>any time during the three-year period ending on the decedent's date of death. For purposes <br/>
<a id="pl.145.9"></a><var>145.9</var>of this subdivision, an ownership interest includes the interest the decedent is deemed to <br/>
<a id="pl.145.10"></a><var>145.10</var>own under sections 2036, 2037, and 2038 of the Internal Revenue Code.<br/>
<a id="pl.145.11"></a><var>145.11</var>(3) During the taxable year that ended before the decedent's death, the trade or <br/>
<a id="pl.145.12"></a><var>145.12</var>business must not have been a passive activity within the meaning of section 469(c) of the <br/>
<a id="pl.145.13"></a><var>145.13</var>Internal Revenue Code, and the decedent or the decedent's spouse must have materially <br/>
<a id="pl.145.14"></a><var>145.14</var>participated in the trade or business within the meaning of section 469(h) of the Internal <br/>
<a id="pl.145.15"></a><var>145.15</var>Revenue Code, excluding section 469(h)(3) of the Internal Revenue Code and any other <br/>
<a id="pl.145.16"></a><var>145.16</var>provision provided by United States Treasury Department regulation that substitutes <br/>
<a id="pl.145.17"></a><var>145.17</var>material participation in prior taxable years for material participation in the taxable year <br/>
<a id="pl.145.18"></a><var>145.18</var>that ended before the decedent's death.<br/>
<a id="pl.145.19"></a><var>145.19</var>(4) The gross annual sales of the trade or business were $10,000,000 or less for the <br/>
<a id="pl.145.20"></a><var>145.20</var>last taxable year that ended before the date of the death of the decedent.<br/>
<a id="pl.145.21"></a><var>145.21</var>(4) (5) The property does not consist of cash or, cash equivalents, publicly traded <br/>
<a id="pl.145.22"></a><var>145.22</var>securities, or assets not used in the operation of the trade or business. For property <br/>
<a id="pl.145.23"></a><var>145.23</var>consisting of shares of stock or other ownership interests in an entity, the amount value of <br/>
<a id="pl.145.24"></a><var>145.24</var>cash or, cash equivalents, publicly traded securities, or assets not used in the operation of <br/>
<a id="pl.145.25"></a><var>145.25</var>the trade or business held by the corporation or other entity must be deducted from the <br/>
<a id="pl.145.26"></a><var>145.26</var>value of the property qualifying under this subdivision in proportion to the decedent's <br/>
<a id="pl.145.27"></a><var>145.27</var>share of ownership of the entity on the date of death.<br/>
<a id="pl.145.28"></a><var>145.28</var>(5) (6) The decedent continuously owned the property, including property the <br/>
<a id="pl.145.29"></a><var>145.29</var>decedent is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue <br/>
<a id="pl.145.30"></a><var>145.30</var>Code, for the three-year period ending on the date of death of the decedent. In the case of <br/>
<a id="pl.145.31"></a><var>145.31</var>a sole proprietor, if the property replaced similar property within the three-year period, <br/>
<a id="pl.145.32"></a><var>145.32</var>the replacement property will be treated as having been owned for the three-year period <br/>
<a id="pl.145.33"></a><var>145.33</var>ending on the date of death of the decedent.<br/>
<a id="pl.145.34"></a><var>145.34</var>(6) A family member continuously uses the property in the operation of the trade or <br/>
<a id="pl.145.35"></a><var>145.35</var>business for three years following the date of death of the decedent.<br/>
<a id="pl.146.1"></a><var>146.1</var>(7) For three years following the date of death of the decedent, the trade or business <br/>
<a id="pl.146.2"></a><var>146.2</var>is not a passive activity within the meaning of section 469(c) of the Internal Revenue Code, <br/>
<a id="pl.146.3"></a><var>146.3</var>and a family member materially participates in the operation of the trade or business within <br/>
<a id="pl.146.4"></a><var>146.4</var>the meaning of section 469(h) of the Internal Revenue Code, excluding section 469(h)(3) <br/>
<a id="pl.146.5"></a><var>146.5</var>of the Internal Revenue Code and any other provision provided by United States Treasury <br/>
<a id="pl.146.6"></a><var>146.6</var>Department regulation that substitutes material participation in prior taxable years for <br/>
<a id="pl.146.7"></a><var>146.7</var>material participation in the three years following the date of death of the decedent.<br/>
<a id="pl.146.8"></a><var>146.8</var>(8) The estate and the qualified heir elect to treat the property as qualified small <br/>
<a id="pl.146.9"></a><var>146.9</var>business property and agree, in the form prescribed by the commissioner, to pay the <br/>
<a id="pl.146.10"></a><var>146.10</var>recapture tax under subdivision 11, if applicable.<br/>
<a id="pl.146.11"></a><var>146.11</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for estates of decedents <br/>
<a id="pl.146.12"></a><var>146.12</var>dying after June 30, 2011.<br/>
<br/>
<a id="bill.6.3.0"></a><a id="pl.146.13"></a><var>146.13</var>    Sec. 3. Minnesota Statutes 2012, section 291.03, subdivision 10, is amended to read:<br/>
<a id="pl.146.14"></a><var>146.14</var>    Subd. 10. <b>Qualified farm property.</b> Property satisfying all of the following <br/>
<a id="pl.146.15"></a><var>146.15</var>requirements is qualified farm property:<br/>
<a id="pl.146.16"></a><var>146.16</var>(1) The value of the property was included in the federal adjusted taxable estate.<br/>
<a id="pl.146.17"></a><var>146.17</var>(2) The property consists of a farm meeting the requirements of  agricultural land as <br/>
<a id="pl.146.18"></a><var>146.18</var>defined in section 500.24, subdivision 2, paragraph (g), and is owned by a person or entity <br/>
<a id="pl.146.19"></a><var>146.19</var>that is either not subject to or is in compliance with section 
         <statute_ref>500.24</statute_ref>, and was classified for <br/>
<a id="pl.146.20"></a><var>146.20</var>property tax purposes as the homestead of the decedent or the decedent's spouse or both <br/>
<a id="pl.146.21"></a><var>146.21</var>under section 
<statute_ref>273.124</statute_ref>, and as class 2a property under section 
<statute_ref>273.13, subdivision 23</statute_ref>.<br/>
<a id="pl.146.22"></a><var>146.22</var>(3) For property taxes payable in the taxable year of the decedent's death, the <br/>
<a id="pl.146.23"></a><var>146.23</var>decedent's interest in the property was classified as the homestead of the decedent, the <br/>
<a id="pl.146.24"></a><var>146.24</var>decedent's spouse, or both under section 273.124 and as class 2a property under section <br/>
<a id="pl.146.25"></a><var>146.25</var>273.13, subdivision 23.<br/>
<a id="pl.146.26"></a><var>146.26</var>(4) The decedent continuously owned the property, including property the decedent <br/>
<a id="pl.146.27"></a><var>146.27</var>is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code, for <br/>
<a id="pl.146.28"></a><var>146.28</var>the three-year period ending on the date of death of the decedent either by ownership of <br/>
<a id="pl.146.29"></a><var>146.29</var>the agricultural land or pursuant to holding an interest in an entity that is not subject to <br/>
<a id="pl.146.30"></a><var>146.30</var>or is in compliance with section 500.24.<br/>
<a id="pl.146.31"></a><var>146.31</var>(4) A family member continuously uses the property in the operation of the trade or <br/>
<a id="pl.146.32"></a><var>146.32</var>business (5) The property is classified for property tax purposes as class 2a property under <br/>
<a id="pl.146.33"></a><var>146.33</var>section 273.13, subdivision 23, for three years following the date of death of the decedent.<br/>
<a id="pl.147.1"></a><var>147.1</var>(5) (6)  The estate and the qualified heir elect to treat the property as qualified farm <br/>
<a id="pl.147.2"></a><var>147.2</var>property and agree, in a form prescribed by the commissioner, to pay the recapture tax <br/>
<a id="pl.147.3"></a><var>147.3</var>under subdivision 11, if applicable.<br/>
<a id="pl.147.4"></a><var>147.4</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for estates of decedents <br/>
<a id="pl.147.5"></a><var>147.5</var>dying after June 30, 2011.<br/>
<br/>
<a id="bill.6.4.0"></a><a id="pl.147.6"></a><var>147.6</var>    Sec. 4. Minnesota Statutes 2012, section 291.03, subdivision 11, is amended to read:<br/>
<a id="pl.147.7"></a><var>147.7</var>    Subd. 11. <b>Recapture tax.</b> (a) If, within three years after the decedent's death and <br/>
<a id="pl.147.8"></a><var>147.8</var>before the death of the qualified heir, the qualified heir disposes of any interest in the <br/>
<a id="pl.147.9"></a><var>147.9</var>qualified property, other than by a disposition to a family member, or a family member <br/>
<a id="pl.147.10"></a><var>147.10</var>ceases to use the qualified property which was acquired or passed from the decedent<br/>
<a id="pl.147.11"></a><var>147.11</var> satisfy the requirement under subdivision 9, clause (7); or 10, clause (5), an additional <br/>
<a id="pl.147.12"></a><var>147.12</var>estate tax is imposed on the property. In the case of a sole proprietor, if the qualified heir <br/>
<a id="pl.147.13"></a><var>147.13</var>replaces qualified small business property excluded under subdivision 9 with similar <br/>
<a id="pl.147.14"></a><var>147.14</var>property, then the qualified heir will not be treated as having disposed of an interest in the <br/>
<a id="pl.147.15"></a><var>147.15</var>qualified property.<br/>
<a id="pl.147.16"></a><var>147.16</var>(b) The amount of the additional tax equals the amount of the exclusion claimed by <br/>
<a id="pl.147.17"></a><var>147.17</var>the estate under subdivision 8, paragraph (d), multiplied by 16 percent.<br/>
<a id="pl.147.18"></a><var>147.18</var>(c) The additional tax under this subdivision is due on the day which is six months <br/>
<a id="pl.147.19"></a><var>147.19</var>after the date of the disposition or cessation in paragraph (a).<br/>
<a id="pl.147.20"></a><var>147.20</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for estates of decedents <br/>
<a id="pl.147.21"></a><var>147.21</var>dying after June 30, 2011.<br/>
<br/>
<a id="bill.7.0.0"></a>

<a id="bill.7.1.0"></a><a id="pl.147.24"></a><var>147.24</var>    Section 1. Minnesota Statutes 2012, section 16C.03, subdivision 18, is amended to read:<br/>
<a id="pl.147.25"></a><var>147.25</var>    Subd. 18. <b>Contracts with foreign vendors.</b> (a) The commissioner and other <br/>
<a id="pl.147.26"></a><var>147.26</var>agencies to which this section applies and the legislative branch of government shall, <br/>
<a id="pl.147.27"></a><var>147.27</var>subject to paragraph (d), cancel a contract for goods or services from a vendor or an <br/>
<a id="pl.147.28"></a><var>147.28</var>affiliate of a vendor or suspend or debar a vendor or an affiliate of a vendor from future <br/>
<a id="pl.147.29"></a><var>147.29</var>contracts upon notification from the commissioner of revenue that the vendor or an <br/>
<a id="pl.147.30"></a><var>147.30</var>affiliate of the vendor has not registered to collect the sales and use tax imposed under <br/>
<a id="pl.147.31"></a><var>147.31</var>chapter 297A on its sales in Minnesota or to a destination in Minnesota. This subdivision <br/>
<a id="pl.147.32"></a><var>147.32</var>shall not apply to state colleges and universities, the courts, and any agency in the judicial <br/>
<a id="pl.147.33"></a><var>147.33</var>branch of government. For purposes of this subdivision, the term "affiliate" means any <br/>
<a id="pl.148.1"></a><var>148.1</var>person or entity that is controlled by, or is under common control of, a vendor through <br/>
<a id="pl.148.2"></a><var>148.2</var>stock ownership or other affiliation.<br/>
<a id="pl.148.3"></a><var>148.3</var>    (b) Beginning January 1, 2006, Each vendor or affiliate of a vendor selling goods or <br/>
<a id="pl.148.4"></a><var>148.4</var>services, subject to tax under chapter 297A, to an agency or the legislature must register <br/>
<a id="pl.148.5"></a><var>148.5</var>with the commissioner of revenue as provided in section 297A.83, and comply with all legal <br/>
<a id="pl.148.6"></a><var>148.6</var>requirements imposed on a person maintaining a place of business in this state, including <br/>
<a id="pl.148.7"></a><var>148.7</var>the requirement to collect and remit sales and use tax on all taxable sales to customers in <br/>
<a id="pl.148.8"></a><var>148.8</var>the state, and provide its Minnesota sales and use tax business identification number, upon <br/>
<a id="pl.148.9"></a><var>148.9</var>request, to show that the vendor is registered to collect Minnesota sales or use tax.<br/>
<a id="pl.148.10"></a><var>148.10</var>    (c) The commissioner of revenue shall periodically provide to the commissioner <br/>
<a id="pl.148.11"></a><var>148.11</var>and the legislative branch a list of vendors who have not registered to collect Minnesota <br/>
<a id="pl.148.12"></a><var>148.12</var>sales and use tax and who are subject to being suspended or debarred as vendors or having <br/>
<a id="pl.148.13"></a><var>148.13</var>their contracts canceled.<br/>
<a id="pl.148.14"></a><var>148.14</var>    (d) The provisions of this subdivision may be waived by the commissioner or the <br/>
<a id="pl.148.15"></a><var>148.15</var>legislative branch when the vendor is the single source of such goods or services, in the <br/>
<a id="pl.148.16"></a><var>148.16</var>event of an emergency, or when it is in the best interests of the state as determined by the <br/>
<a id="pl.148.17"></a><var>148.17</var>commissioner in consultation with the commissioner of revenue. Such consultation is not <br/>
<a id="pl.148.18"></a><var>148.18</var>a disclosure violation under chapter 270B.<br/>
<a id="pl.148.19"></a><var>148.19</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.148.20"></a><var>148.20</var>June 30, 2013.<br/>
<br/>
<a id="bill.7.2.0"></a><a id="pl.148.21"></a><var>148.21</var>    Sec. 2. Minnesota Statutes 2012, section 297A.61, subdivision 3, is amended to read:<br/>
<a id="pl.148.22"></a><var>148.22</var>    Subd. 3. <b>Sale and purchase.</b> (a) "Sale" and "purchase" include, but are not <br/>
<a id="pl.148.23"></a><var>148.23</var>limited to, each of the transactions listed in this subdivision. In applying the provisions <br/>
<a id="pl.148.24"></a><var>148.24</var>of this chapter, the terms "tangible personal property" and "retail sale" include taxable <br/>
<a id="pl.148.25"></a><var>148.25</var>services listed in clause (6), items (i) to (vi) and (viii), and the provision of these taxable <br/>
<a id="pl.148.26"></a><var>148.26</var>services, unless specifically provided otherwise. Services performed by an employee <br/>
<a id="pl.148.27"></a><var>148.27</var>for an employer are not taxable. Services performed by a partnership or association for <br/>
<a id="pl.148.28"></a><var>148.28</var>another partnership or association are not taxable if one of the entities owns or controls <br/>
<a id="pl.148.29"></a><var>148.29</var>more than 80 percent of the voting power of the equity interest in the other entity. Services <br/>
<a id="pl.148.30"></a><var>148.30</var>performed between members of an affiliated group of corporations are not taxable. For <br/>
<a id="pl.148.31"></a><var>148.31</var>purposes of the preceding sentence, "affiliated group of corporations" means those entities <br/>
<a id="pl.148.32"></a><var>148.32</var>that would be classified as members of an affiliated group as defined under United States <br/>
<a id="pl.148.33"></a><var>148.33</var>Code, title 26, section 1504, disregarding the exclusions in section 1504(b).<br/>
<a id="pl.148.34"></a><var>148.34</var>    (b) Sale and purchase include:<br/>
<a id="pl.149.1"></a><var>149.1</var>    (1) any transfer of title or possession, or both, of tangible personal property, whether <br/>
<a id="pl.149.2"></a><var>149.2</var>absolutely or conditionally, for a consideration in money or by exchange or barter; and<br/>
<a id="pl.149.3"></a><var>149.3</var>    (2) the leasing of or the granting of a license to use or consume, for a consideration <br/>
<a id="pl.149.4"></a><var>149.4</var>in money or by exchange or barter, tangible personal property, other than a manufactured <br/>
<a id="pl.149.5"></a><var>149.5</var>home used for residential purposes for a continuous period of 30 days or more.<br/>
<a id="pl.149.6"></a><var>149.6</var>    (c) Sale and purchase include the production, fabrication, printing, or processing of <br/>
<a id="pl.149.7"></a><var>149.7</var>tangible personal property for a consideration for consumers who furnish either directly or <br/>
<a id="pl.149.8"></a><var>149.8</var>indirectly the materials used in the production, fabrication, printing, or processing.<br/>
<a id="pl.149.9"></a><var>149.9</var>    (d) Sale and purchase include the preparing for a consideration of food. <br/>
<a id="pl.149.10"></a><var>149.10</var>Notwithstanding section 
         <statute_ref>297A.67, subdivision 2</statute_ref>, taxable food includes, but is not limited <br/>
<a id="pl.149.11"></a><var>149.11</var>to, the following:<br/>
<a id="pl.149.12"></a><var>149.12</var>    (1) prepared food sold by the retailer;<br/>
<a id="pl.149.13"></a><var>149.13</var>    (2) soft drinks;<br/>
<a id="pl.149.14"></a><var>149.14</var>    (3) candy;<br/>
<a id="pl.149.15"></a><var>149.15</var>    (4) dietary supplements; and<br/>
<a id="pl.149.16"></a><var>149.16</var>    (5) all food sold through vending machines.<br/>
<a id="pl.149.17"></a><var>149.17</var>    (e) A sale and a purchase includes the furnishing for a consideration of electricity, <br/>
<a id="pl.149.18"></a><var>149.18</var>gas, water, or steam for use or consumption within this state.<br/>
<a id="pl.149.19"></a><var>149.19</var>    (f) A sale and a purchase includes:<br/>
<a id="pl.149.20"></a><var>149.20</var>    (1) the transfer for a consideration of prewritten computer software whether <br/>
<a id="pl.149.21"></a><var>149.21</var>delivered electronically, by load and leave, or otherwise.; and<br/>
<a id="pl.149.22"></a><var>149.22</var>    (2) the receipt of custom computer software whether delivered electronically, by <br/>
<a id="pl.149.23"></a><var>149.23</var>load and leave, or otherwise.<br/>
<a id="pl.149.24"></a><var>149.24</var>    (g) A sale and a purchase includes the furnishing for a consideration of the following <br/>
<a id="pl.149.25"></a><var>149.25</var>services:<br/>
<a id="pl.149.26"></a><var>149.26</var>    (1) the privilege of admission to places of amusement, exhibitions, recreational <br/>
<a id="pl.149.27"></a><var>149.27</var>areas, or athletic events, including the rental of box seats and suites at professional athletic <br/>
<a id="pl.149.28"></a><var>149.28</var>events, and the making available of amusement devices, tanning facilities, reducing salons, <br/>
<a id="pl.149.29"></a><var>149.29</var>steam baths, Turkish baths, health clubs, and spas or athletic facilities. "Exhibitions" <br/>
<a id="pl.149.30"></a><var>149.30</var>means trade shows, boat shows, home shows, garden shows, and other similar events;<br/>
<a id="pl.149.31"></a><var>149.31</var>    (2) lodging and related services by a hotel, rooming house, resort, campground, <br/>
<a id="pl.149.32"></a><var>149.32</var>motel, or trailer camp, including furnishing the guest of the facility with access to <br/>
<a id="pl.149.33"></a><var>149.33</var>telecommunication services, and the granting of any similar license to use real property in <br/>
<a id="pl.149.34"></a><var>149.34</var>a specific facility, other than the renting or leasing of it for a continuous period of 30 days <br/>
<a id="pl.149.35"></a><var>149.35</var>or more under an enforceable written agreement that may not be terminated without prior <br/>
<a id="pl.150.1"></a><var>150.1</var>notice and including accommodations intermediary services provided in connection with <br/>
<a id="pl.150.2"></a><var>150.2</var>other services provided under this clause;<br/>
<a id="pl.150.3"></a><var>150.3</var>    (3) nonresidential parking services, whether on a contractual, hourly, or other <br/>
<a id="pl.150.4"></a><var>150.4</var>periodic basis, except for parking at a meter;<br/>
<a id="pl.150.5"></a><var>150.5</var>    (4) the granting of membership in a club, association, or other organization if:<br/>
<a id="pl.150.6"></a><var>150.6</var>    (i) the club, association, or other organization makes available for the use of its <br/>
<a id="pl.150.7"></a><var>150.7</var>members sports and athletic facilities, without regard to whether a separate charge is <br/>
<a id="pl.150.8"></a><var>150.8</var>assessed for use of the facilities; and<br/>
<a id="pl.150.9"></a><var>150.9</var>    (ii) use of the sports and athletic facility is not made available to the general public <br/>
<a id="pl.150.10"></a><var>150.10</var>on the same basis as it is made available to members.<br/>
<a id="pl.150.11"></a><var>150.11</var>Granting of membership means both onetime initiation fees and periodic membership <br/>
<a id="pl.150.12"></a><var>150.12</var>dues. Sports and athletic facilities include golf courses; tennis, racquetball, handball, and <br/>
<a id="pl.150.13"></a><var>150.13</var>squash courts; basketball and volleyball facilities; running tracks; exercise equipment; <br/>
<a id="pl.150.14"></a><var>150.14</var>swimming pools; and other similar athletic or sports facilities;<br/>
<a id="pl.150.15"></a><var>150.15</var>    (5) delivery of aggregate materials by a third party, excluding delivery of aggregate <br/>
<a id="pl.150.16"></a><var>150.16</var>material used in road construction; and delivery of concrete block by a third party if the <br/>
<a id="pl.150.17"></a><var>150.17</var>delivery would be subject to the sales tax if provided by the seller of the concrete block. <br/>
<a id="pl.150.18"></a><var>150.18</var>For purposes of this clause, "road construction" means construction of:<br/>
<a id="pl.150.19"></a><var>150.19</var>    (i) public roads;<br/>
<a id="pl.150.20"></a><var>150.20</var>    (ii) cartways; and<br/>
<a id="pl.150.21"></a><var>150.21</var>    (iii) private roads in townships located outside of the seven-county metropolitan area <br/>
<a id="pl.150.22"></a><var>150.22</var>up to the point of the emergency response location sign; and<br/>
<a id="pl.150.23"></a><var>150.23</var>    (6) services as provided in this clause:<br/>
<a id="pl.150.24"></a><var>150.24</var>    (i) laundry and dry cleaning services including cleaning, pressing, repairing, altering, <br/>
<a id="pl.150.25"></a><var>150.25</var>and storing clothes, linen services and supply, cleaning and blocking hats, and carpet, <br/>
<a id="pl.150.26"></a><var>150.26</var>drapery, upholstery, and industrial cleaning. Laundry and dry cleaning services do not <br/>
<a id="pl.150.27"></a><var>150.27</var>include services provided by coin operated facilities operated by the customer;<br/>
<a id="pl.150.28"></a><var>150.28</var>    (ii) motor vehicle washing, waxing, and cleaning services, including services <br/>
<a id="pl.150.29"></a><var>150.29</var>provided by coin operated facilities operated by the customer, and rustproofing, <br/>
<a id="pl.150.30"></a><var>150.30</var>undercoating, and towing of motor vehicles;<br/>
<a id="pl.150.31"></a><var>150.31</var>    (iii) building and residential cleaning, maintenance, and disinfecting services and <br/>
<a id="pl.150.32"></a><var>150.32</var>pest control and exterminating services;<br/>
<a id="pl.150.33"></a><var>150.33</var>    (iv) detective, security, burglar, fire alarm, and armored car services; but not <br/>
<a id="pl.150.34"></a><var>150.34</var>including services performed within the jurisdiction they serve by off-duty licensed peace <br/>
<a id="pl.150.35"></a><var>150.35</var>officers as defined in section 
         <statute_ref>626.84, subdivision 1</statute_ref>, or services provided by a nonprofit <br/>
<a id="pl.150.36"></a><var>150.36</var>organization or any organization at the direction of a county for monitoring and electronic <br/>
<a id="pl.151.1"></a><var>151.1</var>surveillance of persons placed on in-home detention pursuant to court order or under the <br/>
<a id="pl.151.2"></a><var>151.2</var>direction of the Minnesota Department of Corrections;<br/>
<a id="pl.151.3"></a><var>151.3</var>    (v) pet grooming services;<br/>
<a id="pl.151.4"></a><var>151.4</var>    (vi) lawn care, fertilizing, mowing, spraying and sprigging services; garden planting <br/>
<a id="pl.151.5"></a><var>151.5</var>and maintenance; tree, bush, and shrub pruning, bracing, spraying, and surgery; indoor <br/>
<a id="pl.151.6"></a><var>151.6</var>plant care; tree, bush, shrub, and stump removal, except when performed as part of a land <br/>
<a id="pl.151.7"></a><var>151.7</var>clearing contract as defined in section 
         <statute_ref>297A.68, subdivision 40</statute_ref>; and tree trimming for <br/>
<a id="pl.151.8"></a><var>151.8</var>public utility lines. Services performed under a construction contract for the installation of <br/>
<a id="pl.151.9"></a><var>151.9</var>shrubbery, plants, sod, trees, bushes, and similar items are not taxable;<br/>
<a id="pl.151.10"></a><var>151.10</var>    (vii) massages, except when provided by a licensed health care facility or <br/>
<a id="pl.151.11"></a><var>151.11</var>professional or upon written referral from a licensed health care facility or professional for <br/>
<a id="pl.151.12"></a><var>151.12</var>treatment of illness, injury, or disease; and<br/>
<a id="pl.151.13"></a><var>151.13</var>    (viii) the furnishing of lodging, board, and care services for animals in kennels and <br/>
<a id="pl.151.14"></a><var>151.14</var>other similar arrangements, but excluding veterinary and horse boarding services.<br/>
<a id="pl.151.15"></a><var>151.15</var>    In applying the provisions of this chapter, the terms "tangible personal property" <br/>
<a id="pl.151.16"></a><var>151.16</var>and "retail sale" include taxable services listed in clause (6), items (i) to (vi) and (viii), <br/>
<a id="pl.151.17"></a><var>151.17</var>and the provision of these taxable services, unless specifically provided otherwise. <br/>
<a id="pl.151.18"></a><var>151.18</var>Services performed by an employee for an employer are not taxable. Services performed <br/>
<a id="pl.151.19"></a><var>151.19</var>by a partnership or association for another partnership or association are not taxable if <br/>
<a id="pl.151.20"></a><var>151.20</var>one of the entities owns or controls more than 80 percent of the voting power of the <br/>
<a id="pl.151.21"></a><var>151.21</var>equity interest in the other entity. Services performed between members of an affiliated <br/>
<a id="pl.151.22"></a><var>151.22</var>group of corporations are not taxable. For purposes of the preceding sentence, "affiliated <br/>
<a id="pl.151.23"></a><var>151.23</var>group of corporations" means those entities that would be classified as members of an <br/>
<a id="pl.151.24"></a><var>151.24</var>affiliated group as defined under United States Code, title 26, section 1504, disregarding <br/>
<a id="pl.151.25"></a><var>151.25</var>the exclusions in section 1504(b).<br/>
<a id="pl.151.26"></a><var>151.26</var>    For purposes of clause (5), "road construction" means construction of (1) public <br/>
<a id="pl.151.27"></a><var>151.27</var>roads, (2) cartways, and (3) private roads in townships located outside of the seven-county <br/>
<a id="pl.151.28"></a><var>151.28</var>metropolitan area up to the point of the emergency response location sign.<br/>
<a id="pl.151.29"></a><var>151.29</var>    (h) A sale and a purchase includes the furnishing for a consideration of tangible <br/>
<a id="pl.151.30"></a><var>151.30</var>personal property or taxable services by the United States or any of its agencies or <br/>
<a id="pl.151.31"></a><var>151.31</var>instrumentalities, or the state of Minnesota, its agencies, instrumentalities, or political <br/>
<a id="pl.151.32"></a><var>151.32</var>subdivisions.<br/>
<a id="pl.151.33"></a><var>151.33</var>    (i) A sale and a purchase includes the furnishing for a consideration of <br/>
<a id="pl.151.34"></a><var>151.34</var>telecommunications services, ancillary services associated with telecommunication <br/>
<a id="pl.151.35"></a><var>151.35</var>services, cable and pay television services, and direct satellite services. Telecommunication <br/>
<a id="pl.151.36"></a><var>151.36</var>services include, but are not limited to, the following services, as defined in section <br/>
<statute_ref><a id="pl.152.1"></a><var>152.1</var>297A.669
         </statute_ref>: air-to-ground radiotelephone service, mobile telecommunication service, <br/>
<a id="pl.152.2"></a><var>152.2</var>postpaid calling service, prepaid calling service, prepaid wireless calling service, and <br/>
<a id="pl.152.3"></a><var>152.3</var>private communication services. The services in this paragraph are taxed to the extent <br/>
<a id="pl.152.4"></a><var>152.4</var>allowed under federal law.<br/>
<a id="pl.152.5"></a><var>152.5</var>    (j) A sale and a purchase includes the furnishing for a consideration of installation if <br/>
<a id="pl.152.6"></a><var>152.6</var>the installation charges would be subject to the sales tax if the installation were provided <br/>
<a id="pl.152.7"></a><var>152.7</var>by the seller of the item being installed.<br/>
<a id="pl.152.8"></a><var>152.8</var>    (k) A sale and a purchase includes the rental of a vehicle by a motor vehicle dealer <br/>
<a id="pl.152.9"></a><var>152.9</var>to a customer when (1) the vehicle is rented by the customer for a consideration, or (2) <br/>
<a id="pl.152.10"></a><var>152.10</var>the motor vehicle dealer is reimbursed pursuant to a service contract as defined in section <br/>
<statute_ref><a id="pl.152.11"></a><var>152.11</var>59B.02, subdivision
         </statute_ref> 11.<br/>
<a id="pl.152.12"></a><var>152.12</var>    (l) A sale and a purchase includes granting the right for a consideration to use <br/>
<a id="pl.152.13"></a><var>152.13</var>specified digital products or other digital products on a temporary or permanent basis and <br/>
<a id="pl.152.14"></a><var>152.14</var>regardless of whether the purchaser is required to make continued payments for such <br/>
<a id="pl.152.15"></a><var>152.15</var>right. Wherever the term "tangible personal property" is used in this chapter, other than in <br/>
<a id="pl.152.16"></a><var>152.16</var>subdivisions 10 and 38, the provisions also apply to specified digital products, or other <br/>
<a id="pl.152.17"></a><var>152.17</var>digital products, unless specifically provided otherwise or the context indicates otherwise.<br/>
<a id="pl.152.18"></a><var>152.18</var>(m) A sale and purchase includes:<br/>
<a id="pl.152.19"></a><var>152.19</var>(1) any service performed for the care, cleansing, beautification, or alteration of the <br/>
<a id="pl.152.20"></a><var>152.20</var>appearance of the body, skin, nails, or hair, or in the enhancement of personal relaxation, <br/>
<a id="pl.152.21"></a><var>152.21</var>appearance, or health, but excluding mortuary services;<br/>
<a id="pl.152.22"></a><var>152.22</var>(2) repair labor for:<br/>
<a id="pl.152.23"></a><var>152.23</var>(i) farm machinery as defined under section 297A.61, subdivision 12;<br/>
<a id="pl.152.24"></a><var>152.24</var>(ii) motor vehicles as defined under section 297B.01, subdivision 11, except for <br/>
<a id="pl.152.25"></a><var>152.25</var>motor vehicles sold at wholesale auction at an auto auction facility; and<br/>
<a id="pl.152.26"></a><var>152.26</var>(iii) any other tangible personal property;<br/>
<a id="pl.152.27"></a><var>152.27</var>(3) warehousing or storage services for tangible personal property excluding storage <br/>
<a id="pl.152.28"></a><var>152.28</var>of farm products, refrigerated food, and electronic data; and<br/>
<a id="pl.152.29"></a><var>152.29</var>(4) the furnishing for consideration of documents prepared in connection with any <br/>
<a id="pl.152.30"></a><var>152.30</var>legal proceeding, including a trial hearing, deposition, arbitration, or mediation, except <br/>
<a id="pl.152.31"></a><var>152.31</var>for such documents prepared for a public defender or a public defender corporation <br/>
<a id="pl.152.32"></a><var>152.32</var>under chapter 611.<br/>
<a id="pl.152.33"></a><var>152.33</var>(n) A sale and purchase also is the personal services of event planning,  dating <br/>
<a id="pl.152.34"></a><var>152.34</var>services, personal shopping, personal concierge services, or personal or household <br/>
<a id="pl.152.35"></a><var>152.35</var>organizing services.<br/>
<a id="pl.153.1"></a><var>153.1</var>(o) In applying the provisions of this chapter, the terms "tangible personal property" <br/>
<a id="pl.153.2"></a><var>153.2</var>and "retail sale" include taxable services listed in paragraph (g), clause (6), items (i) to (vi) <br/>
<a id="pl.153.3"></a><var>153.3</var>and (viii), and paragraphs (m) and (n), and the provision of these taxable services, unless <br/>
<a id="pl.153.4"></a><var>153.4</var>specifically provided otherwise.<br/>
<a id="pl.153.5"></a><var>153.5</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.153.6"></a><var>153.6</var>June 30, 2013.<br/>
<br/>
<a id="bill.7.3.0"></a><a id="pl.153.7"></a><var>153.7</var>    Sec. 3. Minnesota Statutes 2012, section 297A.61, subdivision 4, is amended to read:<br/>
<a id="pl.153.8"></a><var>153.8</var>    Subd. 4. <b>Retail sale.</b> (a) A "retail sale" means:<br/>
<a id="pl.153.9"></a><var>153.9</var>    (1) any sale, lease, or rental of tangible personal property for any purpose, other than <br/>
<a id="pl.153.10"></a><var>153.10</var>resale, sublease, or subrent of items by the purchaser in the normal course of business <br/>
<a id="pl.153.11"></a><var>153.11</var>as defined in subdivision 21; and<br/>
<a id="pl.153.12"></a><var>153.12</var>    (2) any sale of a service enumerated in subdivision 3, for any purpose other than <br/>
<a id="pl.153.13"></a><var>153.13</var>resale by the purchaser in the normal course of business as defined in subdivision 21.<br/>
<a id="pl.153.14"></a><var>153.14</var>    (b) A sale of property used by the owner only by leasing it to others or by holding it <br/>
<a id="pl.153.15"></a><var>153.15</var>in an effort to lease it, and put to no use by the owner other than resale after the lease or <br/>
<a id="pl.153.16"></a><var>153.16</var>effort to lease, is a sale of property for resale.<br/>
<a id="pl.153.17"></a><var>153.17</var>    (c) A sale of master computer software that is purchased and used to make copies for <br/>
<a id="pl.153.18"></a><var>153.18</var>sale or lease is a sale of property for resale.<br/>
<a id="pl.153.19"></a><var>153.19</var>    (d) A sale of building materials, supplies, and equipment to owners, contractors, <br/>
<a id="pl.153.20"></a><var>153.20</var>subcontractors, or builders for the erection of buildings or the alteration, repair, or <br/>
<a id="pl.153.21"></a><var>153.21</var>improvement of real property is a retail sale in whatever quantity sold, whether the sale is <br/>
<a id="pl.153.22"></a><var>153.22</var>for purposes of resale in the form of real property or otherwise.<br/>
<a id="pl.153.23"></a><var>153.23</var>    (e) A sale of carpeting, linoleum, or similar floor covering to a person who provides <br/>
<a id="pl.153.24"></a><var>153.24</var>for installation of the floor covering is a retail sale and not a sale for resale since a sale of <br/>
<a id="pl.153.25"></a><var>153.25</var>floor covering which includes installation is a contract for the improvement of real property.<br/>
<a id="pl.153.26"></a><var>153.26</var>    (f) A sale of shrubbery, plants, sod, trees, and similar items to a person who provides <br/>
<a id="pl.153.27"></a><var>153.27</var>for installation of the items is a retail sale and not a sale for resale since a sale of <br/>
<a id="pl.153.28"></a><var>153.28</var>shrubbery, plants, sod, trees, and similar items that includes installation is a contract for <br/>
<a id="pl.153.29"></a><var>153.29</var>the improvement of real property.<br/>
<a id="pl.153.30"></a><var>153.30</var>    (g) A sale of tangible personal property that is awarded as prizes is a retail sale and <br/>
<a id="pl.153.31"></a><var>153.31</var>is not considered a sale of property for resale.<br/>
<a id="pl.153.32"></a><var>153.32</var>    (h) A sale of tangible personal property utilized or employed in the furnishing or <br/>
<a id="pl.153.33"></a><var>153.33</var>providing of services under subdivision 3, paragraph (g), clause (1), including, but not <br/>
<a id="pl.153.34"></a><var>153.34</var>limited to, property given as promotional items, is a retail sale and is not considered a <br/>
<a id="pl.153.35"></a><var>153.35</var>sale of property for resale.<br/>
<a id="pl.154.1"></a><var>154.1</var>    (i) A sale of tangible personal property used in conducting lawful gambling under <br/>
<a id="pl.154.2"></a><var>154.2</var>chapter 349 or the State Lottery under chapter 349A, including, but not limited to, property <br/>
<a id="pl.154.3"></a><var>154.3</var>given as promotional items, is a retail sale and is not considered a sale of property for resale.<br/>
<a id="pl.154.4"></a><var>154.4</var>    (j) A sale of machines, equipment, or devices that are used to furnish, provide, or <br/>
<a id="pl.154.5"></a><var>154.5</var>dispense goods or services, including, but not limited to, coin-operated devices, is a retail <br/>
<a id="pl.154.6"></a><var>154.6</var>sale and is not considered a sale of property for resale.<br/>
<a id="pl.154.7"></a><var>154.7</var>    (k) In the case of a lease, a retail sale occurs (1) when an obligation to make a lease <br/>
<a id="pl.154.8"></a><var>154.8</var>payment becomes due under the terms of the agreement or the trade practices of the <br/>
<a id="pl.154.9"></a><var>154.9</var>lessor or (2) in the case of a lease of a motor vehicle, as defined in section 
         <statute_ref>297B.01, <br/>
<a id="pl.154.10"></a><var>154.10</var>subdivision 11
         </statute_ref>, but excluding vehicles with a manufacturer's gross vehicle weight rating <br/>
<a id="pl.154.11"></a><var>154.11</var>greater than 10,000 pounds and rentals of vehicles for not more than 28 days, at the time <br/>
<a id="pl.154.12"></a><var>154.12</var>the lease is executed.<br/>
<a id="pl.154.13"></a><var>154.13</var>    (l) In the case of a conditional sales contract, a retail sale occurs upon the transfer of <br/>
<a id="pl.154.14"></a><var>154.14</var>title or possession of the tangible personal property.<br/>
<a id="pl.154.15"></a><var>154.15</var>    (m) A sale of a bundled transaction in which one or more of the products included <br/>
<a id="pl.154.16"></a><var>154.16</var>in the bundle is a taxable product is a retail sale, except that if one of the products <br/>
<a id="pl.154.17"></a><var>154.17</var>is a telecommunication service, ancillary service, Internet access, or audio or video <br/>
<a id="pl.154.18"></a><var>154.18</var>programming service, and the seller has maintained books and records identifying through <br/>
<a id="pl.154.19"></a><var>154.19</var>reasonable and verifiable standards the portions of the price that are attributable to the <br/>
<a id="pl.154.20"></a><var>154.20</var>distinct and separately identifiable products, then the products are not considered part of a <br/>
<a id="pl.154.21"></a><var>154.21</var>bundled transaction. For purposes of this paragraph:<br/>
<a id="pl.154.22"></a><var>154.22</var>    (1) the books and records maintained by the seller must be maintained in the regular <br/>
<a id="pl.154.23"></a><var>154.23</var>course of business, and do not include books and records created and maintained by the <br/>
<a id="pl.154.24"></a><var>154.24</var>seller primarily for tax purposes;<br/>
<a id="pl.154.25"></a><var>154.25</var>    (2) books and records maintained in the regular course of business include, but are <br/>
<a id="pl.154.26"></a><var>154.26</var>not limited to, financial statements, general ledgers, invoicing and billing systems and <br/>
<a id="pl.154.27"></a><var>154.27</var>reports, and reports for regulatory tariffs and other regulatory matters; and<br/>
<a id="pl.154.28"></a><var>154.28</var>    (3) books and records are maintained primarily for tax purposes when the books <br/>
<a id="pl.154.29"></a><var>154.29</var>and records identify taxable and nontaxable portions of the price, but the seller maintains <br/>
<a id="pl.154.30"></a><var>154.30</var>other books and records that identify different prices attributable to the distinct products <br/>
<a id="pl.154.31"></a><var>154.31</var>included in the same bundled transaction.<br/>
<a id="pl.154.32"></a><var>154.32</var>(n) A sale of motor vehicle repair paint and materials by a motor vehicle repair or <br/>
<a id="pl.154.33"></a><var>154.33</var>body shop business is a retail sale and the sales tax is imposed on the gross receipts from the <br/>
<a id="pl.154.34"></a><var>154.34</var>retail sale of the paint and materials. The motor vehicle repair or body shop that purchases <br/>
<a id="pl.154.35"></a><var>154.35</var>motor vehicle repair paint and motor vehicle repair materials for resale must either:<br/>
<a id="pl.155.1"></a><var>155.1</var>(1) separately state each item of paint and each item of materials, and the sales price <br/>
<a id="pl.155.2"></a><var>155.2</var>of each, on the invoice to the purchaser; or<br/>
<a id="pl.155.3"></a><var>155.3</var>(2) in order to calculate the sales price of the paint and materials, use a method <br/>
<a id="pl.155.4"></a><var>155.4</var>which estimates the amount and monetary value of the paint and materials used in <br/>
<a id="pl.155.5"></a><var>155.5</var>the repair of the motor vehicle by multiplying the number of labor hours by a rate of <br/>
<a id="pl.155.6"></a><var>155.6</var>consideration for the paint and materials used in the repair of the motor vehicle following <br/>
<a id="pl.155.7"></a><var>155.7</var>industry standard practices that fairly calculate the gross receipts from the retail sale of <br/>
<a id="pl.155.8"></a><var>155.8</var>the motor vehicle repair paint and motor vehicle repair materials. An industry standard <br/>
<a id="pl.155.9"></a><var>155.9</var>practice fairly calculates the gross receipts if the sales price of the paint and materials used <br/>
<a id="pl.155.10"></a><var>155.10</var>or consumed in the repair of a motor vehicle equals or exceeds the purchase price paid <br/>
<a id="pl.155.11"></a><var>155.11</var>by the motor vehicle repair or body shop business. Under clause (1), the invoice must <br/>
<a id="pl.155.12"></a><var>155.12</var>either separately state the "paint and materials" as a single taxable item, or separately state <br/>
<a id="pl.155.13"></a><var>155.13</var>"paint" as a taxable item and "materials" as a taxable item. This clause does not apply to <br/>
<a id="pl.155.14"></a><var>155.14</var>wholesale transactions at an auto auction facility.<br/>
<a id="pl.155.15"></a><var>155.15</var>    (o) A sale of specified digital products or other digital products to an end user with <br/>
<a id="pl.155.16"></a><var>155.16</var>or without rights of permanent use and regardless of whether rights of use are conditioned <br/>
<a id="pl.155.17"></a><var>155.17</var>upon continued payment by the purchaser is a retail sale. When a digital code has been <br/>
<a id="pl.155.18"></a><var>155.18</var>purchased that relates to specified digital products or other digital products, the subsequent <br/>
<a id="pl.155.19"></a><var>155.19</var>receipt of or access to the related specified digital products or other digital products <br/>
<a id="pl.155.20"></a><var>155.20</var>is not a retail sale.<br/>
<a id="pl.155.21"></a><var>155.21</var>    (p) A payment made to an electric cooperative or public utility for contribution in <br/>
<a id="pl.155.22"></a><var>155.22</var>aid of construction is a contract for improvement to real property and is not a retail sale.<br/>
<a id="pl.155.23"></a><var>155.23</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.155.24"></a><var>155.24</var>June 30, 2013.<br/>
<br/>
<a id="bill.7.4.0"></a><a id="pl.155.25"></a><var>155.25</var>    Sec. 4. Minnesota Statutes 2012, section 297A.61, subdivision 10, is amended to read:<br/>
<a id="pl.155.26"></a><var>155.26</var>    Subd. 10. <b>Tangible personal property.</b> (a) "Tangible personal property" means <br/>
<a id="pl.155.27"></a><var>155.27</var>personal property that can be seen, weighed, measured, felt, or touched, or that is in any <br/>
<a id="pl.155.28"></a><var>155.28</var>other manner perceptible to the senses. "Tangible personal property" includes, but is not <br/>
<a id="pl.155.29"></a><var>155.29</var>limited to, electricity, water, gas, steam, and prewritten computer software.<br/>
<a id="pl.155.30"></a><var>155.30</var>    (b) Tangible personal property does not include:<br/>
<a id="pl.155.31"></a><var>155.31</var>    (1) large ponderous machinery and equipment used in a business or production <br/>
<a id="pl.155.32"></a><var>155.32</var>activity which at common law would be considered to be real property;<br/>
<a id="pl.155.33"></a><var>155.33</var>    (2) property which is subject to an ad valorem property tax;<br/>
<a id="pl.155.34"></a><var>155.34</var>    (3) property described in section 
         <statute_ref>272.02, subdivision 9</statute_ref>, clauses (a) to (d); and<br/>
<a id="pl.155.35"></a><var>155.35</var>    (4) property described in section 
         <statute_ref>272.03, subdivision 2</statute_ref>, clauses (3) and (5).; and<br/>
<a id="pl.156.1"></a><var>156.1</var>(5) specified digital products, or other digital products, transferred electronically, <br/>
<a id="pl.156.2"></a><var>156.2</var>except that prewritten computer software delivered electronically is tangible personal <br/>
<a id="pl.156.3"></a><var>156.3</var>property.<br/>
<a id="pl.156.4"></a><var>156.4</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.156.5"></a><var>156.5</var>June 30, 2013.<br/>
<br/>
<a id="bill.7.5.0"></a><a id="pl.156.6"></a><var>156.6</var>    Sec. 5. Minnesota Statutes 2012, section 297A.61, subdivision 17a, is amended to read:<br/>
<a id="pl.156.7"></a><var>156.7</var>    Subd. 17a. <b>Delivered electronically.</b> "Delivered electronically" means delivered <br/>
<a id="pl.156.8"></a><var>156.8</var>to the purchaser by means other than tangible storage media and, unless the context <br/>
<a id="pl.156.9"></a><var>156.9</var>indicates otherwise, applies to the delivery of computer software. Computer software is <br/>
<a id="pl.156.10"></a><var>156.10</var>not considered delivered electronically to a purchaser simply because the purchaser has <br/>
<a id="pl.156.11"></a><var>156.11</var>access to the product.<br/>
<a id="pl.156.12"></a><var>156.12</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases the day <br/>
<a id="pl.156.13"></a><var>156.13</var>following final enactment.<br/>
<br/>
<a id="bill.7.6.0"></a><a id="pl.156.14"></a><var>156.14</var>    Sec. 6. Minnesota Statutes 2012, section 297A.61, subdivision 25, is amended to read:<br/>
<a id="pl.156.15"></a><var>156.15</var>    Subd. 25. <b>Cable</b><b> Pay</b><b> television service.</b> "Cable Pay television service" means <br/>
<a id="pl.156.16"></a><var>156.16</var>the transmission of video, audio, or other programming service to purchasers, and the <br/>
<a id="pl.156.17"></a><var>156.17</var>subscriber interaction, if any, required for the selection or use of the programming service, <br/>
<a id="pl.156.18"></a><var>156.18</var>regardless of whether the programming is transmitted over facilities owned or operated <br/>
<a id="pl.156.19"></a><var>156.19</var>by the cable service provider or over facilities owned or operated by one or more dealers <br/>
<a id="pl.156.20"></a><var>156.20</var>of communications services. The term includes point-to-multipoint distribution direct to <br/>
<a id="pl.156.21"></a><var>156.21</var>home satellite services by which programming is transmitted or broadcast by microwave <br/>
<a id="pl.156.22"></a><var>156.22</var>or other equipment directly to the subscriber's premises, or any similar or comparable <br/>
<a id="pl.156.23"></a><var>156.23</var>method of service. The term includes basic, extended, premium, all programming services, <br/>
<a id="pl.156.24"></a><var>156.24</var>including subscriptions, digital video recorders, pay-per-view, digital, and music services.<br/>
<a id="pl.156.25"></a><var>156.25</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.156.26"></a><var>156.26</var>June 30, 2013.<br/>
<br/>
<a id="bill.7.7.0"></a><a id="pl.156.27"></a><var>156.27</var>    Sec. 7. Minnesota Statutes 2012, section 297A.61, subdivision 38, is amended to read:<br/>
<a id="pl.156.28"></a><var>156.28</var>    Subd. 38. <b>Bundled transaction.</b> (a) "Bundled transaction" means the retail sale <br/>
<a id="pl.156.29"></a><var>156.29</var>of two or more products when the products are otherwise distinct and identifiable, and <br/>
<a id="pl.156.30"></a><var>156.30</var>the products are sold for one nonitemized price. As used in this subdivision, "product" <br/>
<a id="pl.156.31"></a><var>156.31</var>includes tangible personal property, services, intangibles, and digital goods, including <br/>
<a id="pl.156.32"></a><var>156.32</var>specified digital products or other digital products, but does not include real property or <br/>
<a id="pl.157.1"></a><var>157.1</var>services to real property. A bundled transaction does not include the sale of any products <br/>
<a id="pl.157.2"></a><var>157.2</var>in which the sales price varies, or is negotiable, based on the selection by the purchaser of <br/>
<a id="pl.157.3"></a><var>157.3</var>the products included in the transaction.<br/>
<a id="pl.157.4"></a><var>157.4</var>    (b) For purposes of this subdivision, "distinct and identifiable" products does not <br/>
<a id="pl.157.5"></a><var>157.5</var>include:<br/>
<a id="pl.157.6"></a><var>157.6</var>    (1) packaging and other materials, such as containers, boxes, sacks, bags, and <br/>
<a id="pl.157.7"></a><var>157.7</var>bottles, wrapping, labels, tags, and instruction guides, that accompany the retail sale of the <br/>
<a id="pl.157.8"></a><var>157.8</var>products and are incidental or immaterial to the retail sale. Examples of packaging that are <br/>
<a id="pl.157.9"></a><var>157.9</var>incidental or immaterial include grocery sacks, shoe boxes, dry cleaning garment bags, <br/>
<a id="pl.157.10"></a><var>157.10</var>and express delivery envelopes and boxes;<br/>
<a id="pl.157.11"></a><var>157.11</var>    (2) a promotional product provided free of charge with the required purchase of <br/>
<a id="pl.157.12"></a><var>157.12</var>another product. A promotional product is provided free of charge if the sales price of <br/>
<a id="pl.157.13"></a><var>157.13</var>another product, which is required to be purchased in order to receive the promotional <br/>
<a id="pl.157.14"></a><var>157.14</var>product, does not vary depending on the inclusion of the promotional product; and<br/>
<a id="pl.157.15"></a><var>157.15</var>    (3) items included in the definition of sales price.<br/>
<a id="pl.157.16"></a><var>157.16</var>    (c) For purposes of this subdivision, the term "one nonitemized price" does not <br/>
<a id="pl.157.17"></a><var>157.17</var>include a price that is separately identified by product on binding sales or other supporting <br/>
<a id="pl.157.18"></a><var>157.18</var>sales-related documentation made available to the customer in paper or electronic form <br/>
<a id="pl.157.19"></a><var>157.19</var>including but not limited to an invoice, bill of sale, receipt, contract, service agreement, <br/>
<a id="pl.157.20"></a><var>157.20</var>lease agreement, periodic notice of rates and services, rate card, or price list.<br/>
<a id="pl.157.21"></a><var>157.21</var>    (d) A transaction that otherwise meets the definition of a bundled transaction is <br/>
<a id="pl.157.22"></a><var>157.22</var>not a bundled transaction if it is:<br/>
<a id="pl.157.23"></a><var>157.23</var>    (1) the retail sale of tangible personal property and a service and the tangible <br/>
<a id="pl.157.24"></a><var>157.24</var>personal property is essential to the use of the service, and is provided exclusively in <br/>
<a id="pl.157.25"></a><var>157.25</var>connection with the service, and the true object of the transaction is the service;<br/>
<a id="pl.157.26"></a><var>157.26</var>    (2) the retail sale of services if one service is provided that is essential to the use or <br/>
<a id="pl.157.27"></a><var>157.27</var>receipt of a second service and the first service is provided exclusively in connection with <br/>
<a id="pl.157.28"></a><var>157.28</var>the second service and the true object of the transaction is the second service;<br/>
<a id="pl.157.29"></a><var>157.29</var>    (3) a transaction that includes taxable products and nontaxable products and the <br/>
<a id="pl.157.30"></a><var>157.30</var>purchase price or sales price of the taxable products is de minimis; or<br/>
<a id="pl.157.31"></a><var>157.31</var>    (4) the retail sale of exempt tangible personal property and taxable tangible personal <br/>
<a id="pl.157.32"></a><var>157.32</var>property if:<br/>
<a id="pl.157.33"></a><var>157.33</var>    (i) the transaction includes food and food ingredients, drugs, durable medical <br/>
<a id="pl.157.34"></a><var>157.34</var>equipment, mobility enhancing equipment, over-the-counter drugs, prosthetic devices, <br/>
<a id="pl.157.35"></a><var>157.35</var>or medical supplies; and<br/>
<a id="pl.158.1"></a><var>158.1</var>    (ii) the seller's purchase price or sales price of the taxable tangible personal property is <br/>
<a id="pl.158.2"></a><var>158.2</var>50 percent or less of the total purchase price or sales price of the bundled tangible personal <br/>
<a id="pl.158.3"></a><var>158.3</var>property. Sellers must not use a combination of the purchase price and sales price of the <br/>
<a id="pl.158.4"></a><var>158.4</var>tangible personal property when making the 50 percent determination for a transaction.<br/>
<a id="pl.158.5"></a><var>158.5</var>    (e) For purposes of this subdivision, "purchase price" means the measure subject to <br/>
<a id="pl.158.6"></a><var>158.6</var>use tax on purchases made by the seller, and "de minimis" means that the seller's purchase <br/>
<a id="pl.158.7"></a><var>158.7</var>price or sales price of the taxable products is ten percent or less of the total purchase <br/>
<a id="pl.158.8"></a><var>158.8</var>price or sales price of the bundled products. Sellers shall use either the purchase price <br/>
<a id="pl.158.9"></a><var>158.9</var>or the sales price of the products to determine if the taxable products are de minimis. <br/>
<a id="pl.158.10"></a><var>158.10</var>Sellers must not use a combination of the purchase price and sales price of the products <br/>
<a id="pl.158.11"></a><var>158.11</var>to determine if the taxable products are de minimis. Sellers shall use the full term of a <br/>
<a id="pl.158.12"></a><var>158.12</var>service contract to determine if the taxable products are de minimis.<br/>
<a id="pl.158.13"></a><var>158.13</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.158.14"></a><var>158.14</var>June 30, 2013.<br/>
<br/>
<a id="bill.7.8.0"></a><a id="pl.158.15"></a><var>158.15</var>    Sec. 8. Minnesota Statutes 2012, section 297A.61, subdivision 45, is amended to read:<br/>
<a id="pl.158.16"></a><var>158.16</var>    Subd. 45. <b>Ring tone.</b> "Ring tone" means a digitized sound file that is downloaded <br/>
<a id="pl.158.17"></a><var>158.17</var>onto a device and that may be used to alert the customer of a telecommunication service<br/>
<a id="pl.158.18"></a><var>158.18</var> with respect to a communication. A ring tone does not include ring back tones or other <br/>
<a id="pl.158.19"></a><var>158.19</var>digital audio files that are not stored on the purchaser's communication device.<br/>
<a id="pl.158.20"></a><var>158.20</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.158.21"></a><var>158.21</var>June 30, 2013.<br/>
<br/>
<a id="bill.7.9.0"></a><a id="pl.158.22"></a><var>158.22</var>    Sec. 9. Minnesota Statutes 2012, section 297A.61, is amended by adding a subdivision <br/>
<a id="pl.158.23"></a><var>158.23</var>to read:<br/>
<a id="pl.158.24"></a><var>158.24</var>    Subd. 49. <b>Motor vehicle repair paint and motor vehicle repair materials.</b><br/>
<a id="pl.158.25"></a><var>158.25</var>"Motor vehicle repair paint" means a substance composed of solid matter suspended in a <br/>
<a id="pl.158.26"></a><var>158.26</var>liquid medium and applied as a protective or decorative coating to the surface of a motor <br/>
<a id="pl.158.27"></a><var>158.27</var>vehicle in order to restore the motor vehicle to its original condition, and includes primer, <br/>
<a id="pl.158.28"></a><var>158.28</var>body paint, clear coat, and paint thinner used to paint motor vehicles, as defined in section <br/>
<a id="pl.158.29"></a><var>158.29</var>297B.01. "Motor vehicle repair materials" means items, other than motor vehicle repair <br/>
<a id="pl.158.30"></a><var>158.30</var>paint or motor vehicle parts, that become a part of a repaired motor vehicle or are consumed <br/>
<a id="pl.158.31"></a><var>158.31</var>in repairing the motor vehicle at retail, and include abrasives, battery water, body filler or <br/>
<a id="pl.158.32"></a><var>158.32</var>putty, bolts and nuts, brake fluid, buffing pads, chamois, cleaning compounds, degreasing <br/>
<a id="pl.158.33"></a><var>158.33</var>compounds, glaze, grease, grinding discs, hydraulic jack oil, lubricants, masking tape, <br/>
<a id="pl.159.1"></a><var>159.1</var>oxygen and acetylene, polishes, rags, razor blades, sandpaper, sanding discs, scuff pads, <br/>
<a id="pl.159.2"></a><var>159.2</var>sealer, solder, solvents, striping tape, tack cloth, thinner, waxes, and welding rods. Motor <br/>
<a id="pl.159.3"></a><var>159.3</var>vehicle repair materials do not include items that are not used directly on the motor vehicle, <br/>
<a id="pl.159.4"></a><var>159.4</var>such as floor dry that is used to clean the shop, or cleaning compounds and rags that are <br/>
<a id="pl.159.5"></a><var>159.5</var>used to clean tools, equipment, or the shop and are not used to clean the motor vehicle.<br/>
<a id="pl.159.6"></a><var>159.6</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.159.7"></a><var>159.7</var>June 30, 2013.<br/>
<br/>
<a id="bill.7.10.0"></a><a id="pl.159.8"></a><var>159.8</var>    Sec. 10. Minnesota Statutes 2012, section 297A.61, is amended by adding a <br/>
<a id="pl.159.9"></a><var>159.9</var>subdivision to read:<br/>
<a id="pl.159.10"></a><var>159.10</var>    Subd. 50. <b>Digital audio works.</b> "Digital audio works" means works that result from <br/>
<a id="pl.159.11"></a><var>159.11</var>a fixation of a series of musical, spoken, or other sounds, that are transferred electronically. <br/>
<a id="pl.159.12"></a><var>159.12</var>Digital audio works includes such items as the following which may either be prerecorded <br/>
<a id="pl.159.13"></a><var>159.13</var>or live: songs, music, readings of books or other written materials, speeches, ring tones, or <br/>
<a id="pl.159.14"></a><var>159.14</var>other sound recordings. Digital audio works does not include audio greeting cards sent by <br/>
<a id="pl.159.15"></a><var>159.15</var>electronic mail. Unless the context provides otherwise, in this chapter digital audio works <br/>
<a id="pl.159.16"></a><var>159.16</var>includes the digital code, or a subscription to or access to a digital code, for receiving, <br/>
<a id="pl.159.17"></a><var>159.17</var>accessing, or otherwise obtaining digital audio works.<br/>
<a id="pl.159.18"></a><var>159.18</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.159.19"></a><var>159.19</var>June 30, 2013.<br/>
<br/>
<a id="bill.7.11.0"></a><a id="pl.159.20"></a><var>159.20</var>    Sec. 11. Minnesota Statutes 2012, section 297A.61, is amended by adding a <br/>
<a id="pl.159.21"></a><var>159.21</var>subdivision to read:<br/>
<a id="pl.159.22"></a><var>159.22</var>    Subd. 51. <b>Digital audiovisual works.</b> "Digital audiovisual works" means a series <br/>
<a id="pl.159.23"></a><var>159.23</var>of related images which, when shown in succession, impart an impression of motion, <br/>
<a id="pl.159.24"></a><var>159.24</var>together with accompanying sounds, if any, that are transferred electronically. Digital <br/>
<a id="pl.159.25"></a><var>159.25</var>audiovisual works includes such items as motion pictures, movies, musical videos, news <br/>
<a id="pl.159.26"></a><var>159.26</var>and entertainment, and live events. Digital audiovisual works does not include video <br/>
<a id="pl.159.27"></a><var>159.27</var>greeting cards sent by electronic mail. Unless the context provides otherwise, in this <br/>
<a id="pl.159.28"></a><var>159.28</var>chapter digital audiovisual works includes the digital code, or a subscription to or access to <br/>
<a id="pl.159.29"></a><var>159.29</var>a digital code, for receiving, accessing, or otherwise obtaining digital audiovisual works.<br/>
<a id="pl.159.30"></a><var>159.30</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.159.31"></a><var>159.31</var>June 30, 2013.<br/>
<br/>
<a id="bill.7.12.0"></a><a id="pl.160.1"></a><var>160.1</var>    Sec. 12. Minnesota Statutes 2012, section 297A.61, is amended by adding a <br/>
<a id="pl.160.2"></a><var>160.2</var>subdivision to read:<br/>
<a id="pl.160.3"></a><var>160.3</var>    Subd. 52. <b>Digital books.</b> "Digital books" means any literary works, other than <br/>
<a id="pl.160.4"></a><var>160.4</var>digital audiovisual works or digital audio works, expressed in words, numbers, or other <br/>
<a id="pl.160.5"></a><var>160.5</var>verbal or numerical symbols or indicia so long as the product is generally recognized in <br/>
<a id="pl.160.6"></a><var>160.6</var>the ordinary and usual sense as a "book." It includes works of fiction and nonfiction and <br/>
<a id="pl.160.7"></a><var>160.7</var>short stories. It does not include periodicals, magazines, newspapers, or other news or <br/>
<a id="pl.160.8"></a><var>160.8</var>information products, chat rooms, or weblogs. Unless the context provides otherwise, in <br/>
<a id="pl.160.9"></a><var>160.9</var>this chapter digital books includes the digital code, or a subscription to or access to a <br/>
<a id="pl.160.10"></a><var>160.10</var>digital code, for receiving, accessing, or otherwise obtaining digital books.<br/>
<a id="pl.160.11"></a><var>160.11</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.160.12"></a><var>160.12</var>June 30, 2013.<br/>
<br/>
<a id="bill.7.13.0"></a><a id="pl.160.13"></a><var>160.13</var>    Sec. 13. Minnesota Statutes 2012, section 297A.61, is amended by adding a <br/>
<a id="pl.160.14"></a><var>160.14</var>subdivision to read:<br/>
<a id="pl.160.15"></a><var>160.15</var>    Subd. 53. <b>Digital code.</b> "Digital code" means a code which provides a purchaser <br/>
<a id="pl.160.16"></a><var>160.16</var>with a right to obtain one or more specified digital products or other digital products. <br/>
<a id="pl.160.17"></a><var>160.17</var>A digital code may be transferred electronically, such as through electronic mail, or it <br/>
<a id="pl.160.18"></a><var>160.18</var>may be transferred on a tangible medium, such as on a plastic card, a piece of paper or <br/>
<a id="pl.160.19"></a><var>160.19</var>invoice, or imprinted on another product. A digital code is not a code that represents a <br/>
<a id="pl.160.20"></a><var>160.20</var>stored monetary value that is deducted from a total as it is used by the purchaser, and it <br/>
<a id="pl.160.21"></a><var>160.21</var>is not a code that represents a redeemable card, gift card, or gift certificate that entitles <br/>
<a id="pl.160.22"></a><var>160.22</var>the holder to select a digital product of an indicated cash value. The end user of a digital <br/>
<a id="pl.160.23"></a><var>160.23</var>code is any purchaser except one who receives the contractual right to redistribute a digital <br/>
<a id="pl.160.24"></a><var>160.24</var>product which is the subject of the transaction.<br/>
<a id="pl.160.25"></a><var>160.25</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.160.26"></a><var>160.26</var>June 30, 2013.<br/>
<br/>
<a id="bill.7.14.0"></a><a id="pl.160.27"></a><var>160.27</var>    Sec. 14. Minnesota Statutes 2012, section 297A.61, is amended by adding a <br/>
<a id="pl.160.28"></a><var>160.28</var>subdivision to read:<br/>
<a id="pl.160.29"></a><var>160.29</var>    Subd. 54. <b>Other digital products.</b> "Other digital products" means the following <br/>
<a id="pl.160.30"></a><var>160.30</var>items when transferred electronically:<br/>
<a id="pl.160.31"></a><var>160.31</var>(1) greeting cards;<br/>
<a id="pl.160.32"></a><var>160.32</var>(2) finished artwork available for reproduction, display, or similar purposes;<br/>
<a id="pl.160.33"></a><var>160.33</var>(3) video or electronic games;<br/>
<a id="pl.161.1"></a><var>161.1</var>(4) periodicals;<br/>
<a id="pl.161.2"></a><var>161.2</var>(5) magazines; and<br/>
<a id="pl.161.3"></a><var>161.3</var>(6) other news or information products, excluding newspapers.<br/>
<a id="pl.161.4"></a><var>161.4</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.161.5"></a><var>161.5</var>June 30, 2013.<br/>
<br/>
<a id="bill.7.15.0"></a><a id="pl.161.6"></a><var>161.6</var>    Sec. 15. Minnesota Statutes 2012, section 297A.61, is amended by adding a <br/>
<a id="pl.161.7"></a><var>161.7</var>subdivision to read:<br/>
<a id="pl.161.8"></a><var>161.8</var>    Subd. 55. <b>Specified digital products.</b> "Specified digital products" means digital <br/>
<a id="pl.161.9"></a><var>161.9</var>audio works, digital audiovisual works, and digital books that are transferred electronically <br/>
<a id="pl.161.10"></a><var>161.10</var>to a customer.<br/>
<a id="pl.161.11"></a><var>161.11</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.161.12"></a><var>161.12</var>June 30, 2013.<br/>
<br/>
<a id="bill.7.16.0"></a><a id="pl.161.13"></a><var>161.13</var>    Sec. 16. Minnesota Statutes 2012, section 297A.61, is amended by adding a <br/>
<a id="pl.161.14"></a><var>161.14</var>subdivision to read:<br/>
<a id="pl.161.15"></a><var>161.15</var>    Subd. 56. <b>Transferred electronically.</b> "Transferred electronically" means obtained <br/>
<a id="pl.161.16"></a><var>161.16</var>by the purchaser by means other than tangible storage media. For purposes of this <br/>
<a id="pl.161.17"></a><var>161.17</var>subdivision, it is not necessary that a copy of the product be physically transferred to <br/>
<a id="pl.161.18"></a><var>161.18</var>the purchaser. A product will be considered to have been transferred electronically to a <br/>
<a id="pl.161.19"></a><var>161.19</var>purchaser if the purchaser has access to the product.<br/>
<a id="pl.161.20"></a><var>161.20</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.161.21"></a><var>161.21</var>June 30, 2013.<br/>
<br/>
<a id="bill.7.17.0"></a><a id="pl.161.22"></a><var>161.22</var>    Sec. 17. Minnesota Statutes 2012, section 297A.62, subdivision 1, is amended to read:<br/>
<a id="pl.161.23"></a><var>161.23</var>    Subdivision 1. <b>Generally.</b> Except as otherwise provided in subdivision 3 or in this <br/>
<a id="pl.161.24"></a><var>161.24</var>chapter, a sales tax of 6.5 5.675 percent is imposed on the gross receipts from retail sales <br/>
<a id="pl.161.25"></a><var>161.25</var>as defined in section 
         <statute_ref>297A.61, subdivision 4</statute_ref>, made in this state or to a destination in this <br/>
<a id="pl.161.26"></a><var>161.26</var>state by a person who is required to have or voluntarily obtains a permit under section <br/>
<statute_ref><a id="pl.161.27"></a><var>161.27</var>297A.83, subdivision 1
         </statute_ref>.<br/>
<a id="pl.161.28"></a><var>161.28</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.161.29"></a><var>161.29</var>June 30, 2013.<br/>
<br/>
<a id="bill.7.18.0"></a><a id="pl.161.30"></a><var>161.30</var>    Sec. 18. Minnesota Statutes 2012, section 297A.62, subdivision 1a, is amended to read:<br/>
<a id="pl.162.1"></a><var>162.1</var>    Subd. 1a. <b>Constitutionally required sales tax increase.</b> Except as otherwise <br/>
<a id="pl.162.2"></a><var>162.2</var>provided in subdivision 3 or in this chapter, an additional sales tax of 0.375 0.325 percent, <br/>
<a id="pl.162.3"></a><var>162.3</var>as required under the Minnesota Constitution, article XI, section 15, is imposed on the gross <br/>
<a id="pl.162.4"></a><var>162.4</var>receipts from retail sales as defined in section 
         <statute_ref>297A.61, subdivision 4</statute_ref>, made in this state or <br/>
<a id="pl.162.5"></a><var>162.5</var>to a destination in this state by a person who is required to have or voluntarily obtains a <br/>
<a id="pl.162.6"></a><var>162.6</var>permit under section 
         <statute_ref>297A.83, subdivision 1</statute_ref>. This additional tax expires July 1, 2034.<br/>
<a id="pl.162.7"></a><var>162.7</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.162.8"></a><var>162.8</var>June 30, 2013.<br/>
<br/>
<a id="bill.7.19.0"></a><a id="pl.162.9"></a><var>162.9</var>    Sec. 19. Minnesota Statutes 2012, section 297A.64, subdivision 1, is amended to read:<br/>
<a id="pl.162.10"></a><var>162.10</var>    Subdivision 1. <b>Tax imposed.</b> A tax is imposed on the lease or rental in this state <br/>
<a id="pl.162.11"></a><var>162.11</var>for not more than 28 days of a passenger automobile as defined in section 
         <statute_ref>168.002, <br/>
<a id="pl.162.12"></a><var>162.12</var>subdivision 24
         </statute_ref>, a van as defined in section 
         <statute_ref>168.002, subdivision 40</statute_ref>, or a pickup truck as <br/>
<a id="pl.162.13"></a><var>162.13</var>defined in section 
         <statute_ref>168.002, subdivision 26</statute_ref>. The rate of tax is 6.2 9.2 percent of the sales <br/>
<a id="pl.162.14"></a><var>162.14</var>price. The tax applies whether or not the vehicle is licensed in the state.<br/>
<a id="pl.162.15"></a><var>162.15</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.162.16"></a><var>162.16</var>June 30, 2013.<br/>
<br/>
<a id="bill.7.20.0"></a><a id="pl.162.17"></a><var>162.17</var>    Sec. 20. Minnesota Statutes 2012, section 297A.65, is amended to read:<br/>
<a id="pl.162.18"></a><var>162.18</var><b>297A.65 LOTTERY TICKETS; IN LIEU TAX.</b><br/>
<a id="pl.162.19"></a><var>162.19</var>Sales of state lottery tickets are exempt from the tax imposed under section <br/>
<statute_ref><a id="pl.162.20"></a><var>162.20</var>297A.62
         </statute_ref>. The State Lottery must on or before the 20th day of each month transmit to <br/>
<a id="pl.162.21"></a><var>162.21</var>the commissioner of revenue an amount equal to the gross receipts from the sale of <br/>
<a id="pl.162.22"></a><var>162.22</var>lottery tickets for the previous month multiplied by the a tax rate under section 
<statute_ref>297A.62, <br/>
<a id="pl.162.23"></a><var>162.23</var>subdivision 1
</statute_ref> of 6.5 percent. The resulting payment is in lieu of the sales tax that otherwise <br/>
<a id="pl.162.24"></a><var>162.24</var>would be imposed by this chapter. The commissioner shall deposit the money transmitted <br/>
<a id="pl.162.25"></a><var>162.25</var>as provided by section 
         <statute_ref>297A.94</statute_ref> and the money must be treated as other proceeds of the <br/>
<a id="pl.162.26"></a><var>162.26</var>sales tax. For purposes of this section, "gross receipts" means the proceeds of the sale <br/>
<a id="pl.162.27"></a><var>162.27</var>of tickets before deduction of a commission or other compensation paid to the vendor or <br/>
<a id="pl.162.28"></a><var>162.28</var>retailer for selling tickets.<br/>
<a id="pl.162.29"></a><var>162.29</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.162.30"></a><var>162.30</var>June 30, 2013.<br/>
<br/>
<a id="bill.7.21.0"></a><a id="pl.162.31"></a><var>162.31</var>    Sec. 21. Minnesota Statutes 2012, section 297A.66, subdivision 1, is amended to read:<br/>
<a id="pl.163.1"></a><var>163.1</var>    Subdivision 1. <b>Definitions.</b> (a) To the extent allowed by the United States <br/>
<a id="pl.163.2"></a><var>163.2</var>Constitution and the laws of the United States,  A"retailer maintaining a place of business <br/>
<a id="pl.163.3"></a><var>163.3</var>in this state," or a similar term, means a retailer:<br/>
<a id="pl.163.4"></a><var>163.4</var>    (1) having or maintaining within this state, directly or by a subsidiary or an affiliate,<br/>
<a id="pl.163.5"></a><var>163.5</var> an office, place of distribution, sales or sample room or place, warehouse, or other place <br/>
<a id="pl.163.6"></a><var>163.6</var>of business; or<br/>
<a id="pl.163.7"></a><var>163.7</var>    (2) having utilizing a representative, including, but not limited to, an affiliate, agent, <br/>
<a id="pl.163.8"></a><var>163.8</var>salesperson, canvasser, or solicitor operating in this state under the authority of the retailer <br/>
<a id="pl.163.9"></a><var>163.9</var>or its subsidiary, for any purpose, including the repairing, selling, delivering, installing, or <br/>
<a id="pl.163.10"></a><var>163.10</var>soliciting of orders for the retailer's goods or services, or the leasing of tangible personal <br/>
<a id="pl.163.11"></a><var>163.11</var>property located in this state, whether the place of business or agent, representative, affiliate,<br/>
<a id="pl.163.12"></a><var>163.12</var> salesperson, canvasser, or solicitor is located in the state permanently or temporarily, or <br/>
<a id="pl.163.13"></a><var>163.13</var>whether or not the retailer, subsidiary, or affiliate is authorized to do business in this state.<br/>
<a id="pl.163.14"></a><var>163.14</var>    (b) "Destination of a sale" means the location to which the retailer makes delivery of <br/>
<a id="pl.163.15"></a><var>163.15</var>the property sold, or causes the property to be delivered, to the purchaser of the property, <br/>
<a id="pl.163.16"></a><var>163.16</var>or to the agent or designee of the purchaser. The delivery may be made by any means, <br/>
<a id="pl.163.17"></a><var>163.17</var>including the United States Postal Service or a for-hire carrier.<br/>
<a id="pl.163.18"></a><var>163.18</var>    (c) A retailer shall be presumed to be "maintaining a place of business in this state" if:<br/>
<a id="pl.163.19"></a><var>163.19</var>    (1) any person, other than a person acting in the person's capacity as a common <br/>
<a id="pl.163.20"></a><var>163.20</var>carrier, that has substantial nexus with this state:<br/>
<a id="pl.163.21"></a><var>163.21</var>    (i) sells a similar line of products as the retailer and does so under the same or <br/>
<a id="pl.163.22"></a><var>163.22</var>a similar business name;<br/>
<a id="pl.163.23"></a><var>163.23</var>    (ii) maintains an office, distribution facility, warehouse or storage place, or similar <br/>
<a id="pl.163.24"></a><var>163.24</var>place of business in the state to facilitate the delivery of property or services sold by the <br/>
<a id="pl.163.25"></a><var>163.25</var>retailer to the retailer's customers;<br/>
<a id="pl.163.26"></a><var>163.26</var>    (iii) uses trademarks, service marks, or trade names in the state that are substantially <br/>
<a id="pl.163.27"></a><var>163.27</var>the same or substantially similar to those used by the retailer;<br/>
<a id="pl.163.28"></a><var>163.28</var>    (iv) delivers, installs, assembles, or performs maintenance services for the retailer's <br/>
<a id="pl.163.29"></a><var>163.29</var>customers within the state;<br/>
<a id="pl.163.30"></a><var>163.30</var>    (v) facilitates the retailer's delivery of property to customers in the state by allowing <br/>
<a id="pl.163.31"></a><var>163.31</var>the retailer's customers to pick up property sold by the retailer at an office, distribution <br/>
<a id="pl.163.32"></a><var>163.32</var>facility, warehouse, storage space, or similar place of business maintained by the person in <br/>
<a id="pl.163.33"></a><var>163.33</var>the state;<br/>
<a id="pl.163.34"></a><var>163.34</var>    (vi) conducts any other activities in the state that are significantly associated with the <br/>
<a id="pl.163.35"></a><var>163.35</var>retailer's ability to establish and maintain a market in the state for the retailer's sales; or<br/>
<a id="pl.163.36"></a><var>163.36</var>    (2) any affiliated person has substantial nexus with the state.<br/>
<a id="pl.164.1"></a><var>164.1</var>    (d) The presumptions in paragraph (c) may be rebutted by demonstrating that the <br/>
<a id="pl.164.2"></a><var>164.2</var>activities of the person or affiliated person in the state are not significantly associated with <br/>
<a id="pl.164.3"></a><var>164.3</var>the retailer's ability to establish or maintain a market in this state for the retailer's sales.<br/>
<a id="pl.164.4"></a><var>164.4</var>    (e) "Affiliated person" means any person that is a member of the same controlled <br/>
<a id="pl.164.5"></a><var>164.5</var>group of corporations, as defined in section 1563(a) of the Internal Revenue Code as <br/>
<a id="pl.164.6"></a><var>164.6</var>the retailer, or any other entity that, notwithstanding its form of organization, bears the <br/>
<a id="pl.164.7"></a><var>164.7</var>same ownership relationship to the retailer as a corporation that is a member of the same <br/>
<a id="pl.164.8"></a><var>164.8</var>controlled group of corporations as defined in section 1563(a) of the Internal Revenue Code.<br/>
<a id="pl.164.9"></a><var>164.9</var>    (f) "Solicitor" means a person, whether an independent contractor or other <br/>
<a id="pl.164.10"></a><var>164.10</var>representative, who directly or indirectly solicits business for the retailer.<br/>
<a id="pl.164.11"></a><var>164.11</var>     (1) A retailer is presumed to have a solicitor in this state if it enters into an agreement <br/>
<a id="pl.164.12"></a><var>164.12</var>with one or more persons under which the person, for a commission or other consideration, <br/>
<a id="pl.164.13"></a><var>164.13</var>while within this state directly or indirectly refers potential customers, whether by a link <br/>
<a id="pl.164.14"></a><var>164.14</var>on an Internet Web site, by telemarketing, by an in-person oral presentation, or otherwise, <br/>
<a id="pl.164.15"></a><var>164.15</var>to the retailer, if the cumulative gross receipts from the sales by the retailer to customers in <br/>
<a id="pl.164.16"></a><var>164.16</var>the state who are referred to the retailer by all persons within this state with this type of an <br/>
<a id="pl.164.17"></a><var>164.17</var>agreement with the retailer is in excess of $10,000 during the preceding 12 months.<br/>
<a id="pl.164.18"></a><var>164.18</var>    (2) The presumption in clause (1) may be rebutted by submitting proof that the <br/>
<a id="pl.164.19"></a><var>164.19</var>persons with whom the retailer has an agreement did not engage in any activity within the <br/>
<a id="pl.164.20"></a><var>164.20</var>state that was significantly associated with the retailer's ability to establish or maintain <br/>
<a id="pl.164.21"></a><var>164.21</var>the retailer's market in the state during the preceding 12 months. Such proof may consist <br/>
<a id="pl.164.22"></a><var>164.22</var>of sworn written statements from all of the persons within this state with whom the <br/>
<a id="pl.164.23"></a><var>164.23</var>retailer has an agreement stating that they did not engage in any solicitation in this state <br/>
<a id="pl.164.24"></a><var>164.24</var>on behalf of the retailer during the preceding year, provided that such statements were <br/>
<a id="pl.164.25"></a><var>164.25</var>provided and obtained in good faith.<br/>
<a id="pl.164.26"></a><var>164.26</var>    (3) Nothing in this section shall be construed to narrow the scope of the terms <br/>
<a id="pl.164.27"></a><var>164.27</var>"agent," "salesperson," "canvasser," or "other representative" for purposes of subdivision <br/>
<a id="pl.164.28"></a><var>164.28</var>1, paragraph (a).<br/>
<a id="pl.164.29"></a><var>164.29</var>This section does not apply to chapter 290 and does not expand or contract the <br/>
<a id="pl.164.30"></a><var>164.30</var>jurisdiction to tax a trade or business under chapter 290.<br/>
<a id="pl.164.31"></a><var>164.31</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.164.32"></a><var>164.32</var>June 30, 2013.<br/>
<br/>
<a id="bill.7.22.0"></a><a id="pl.164.33"></a><var>164.33</var>    Sec. 22. Minnesota Statutes 2012, section 297A.66, subdivision 3, is amended to read:<br/>
<a id="pl.164.34"></a><var>164.34</var>    Subd. 3. <b>Retailer not maintaining place of business in this state.</b> (a) To the <br/>
<a id="pl.164.35"></a><var>164.35</var>extent allowed by the United States Constitution and the laws of the United States, a <br/>
<a id="pl.165.1"></a><var>165.1</var>retailer making retail sales from outside this state to a destination within this state and <br/>
<a id="pl.165.2"></a><var>165.2</var>not maintaining a place of business in this state shall collect sales and use taxes and remit <br/>
<a id="pl.165.3"></a><var>165.3</var>them to the commissioner under section 
<statute_ref>297A.77</statute_ref>, if the retailer engages in the regular or <br/>
<a id="pl.165.4"></a><var>165.4</var>systematic soliciting of sales from potential customers in this state by:<br/>
<a id="pl.165.5"></a><var>165.5</var>    (1) distribution, by mail or otherwise, of catalogs, periodicals, advertising flyers, or <br/>
<a id="pl.165.6"></a><var>165.6</var>other written solicitations of business to customers in this state;<br/>
<a id="pl.165.7"></a><var>165.7</var>    (2) display of advertisements on billboards or other outdoor advertising in this state;<br/>
<a id="pl.165.8"></a><var>165.8</var>    (3) advertisements in newspapers published in this state;<br/>
<a id="pl.165.9"></a><var>165.9</var>    (4) advertisements in trade journals or other periodicals the circulation of which is <br/>
<a id="pl.165.10"></a><var>165.10</var>primarily within this state;<br/>
<a id="pl.165.11"></a><var>165.11</var>    (5) advertisements in a Minnesota edition of a national or regional publication or <br/>
<a id="pl.165.12"></a><var>165.12</var>a limited regional edition in which this state is included as part of a broader regional or <br/>
<a id="pl.165.13"></a><var>165.13</var>national publication which are not placed in other geographically defined editions of the <br/>
<a id="pl.165.14"></a><var>165.14</var>same issue of the same publication;<br/>
<a id="pl.165.15"></a><var>165.15</var>    (6) advertisements in regional or national publications in an edition which is not <br/>
<a id="pl.165.16"></a><var>165.16</var>by its contents geographically targeted to Minnesota but which is sold over the counter <br/>
<a id="pl.165.17"></a><var>165.17</var>in Minnesota or by subscription to Minnesota residents;<br/>
<a id="pl.165.18"></a><var>165.18</var>    (7) advertisements broadcast on a radio or television station located in Minnesota; or<br/>
<a id="pl.165.19"></a><var>165.19</var>    (8) any other solicitation by telegraphy, telephone, computer database, cable, optic, <br/>
<a id="pl.165.20"></a><var>165.20</var>microwave, or other communication system.<br/>
<a id="pl.165.21"></a><var>165.21</var>    This paragraph (a) must be construed without regard to the state from which <br/>
<a id="pl.165.22"></a><var>165.22</var>distribution of the materials originated or in which they were prepared.<br/>
<a id="pl.165.23"></a><var>165.23</var>    (b) The location within or without this state of independent vendors that provide <br/>
<a id="pl.165.24"></a><var>165.24</var>products or services to the retailer in connection with its solicitation of customers within this <br/>
<a id="pl.165.25"></a><var>165.25</var>state, including such products and services as creation of copy, printing, distribution, and <br/>
<a id="pl.165.26"></a><var>165.26</var>recording, is not considered in determining whether the retailer is required to collect tax.<br/>
<a id="pl.165.27"></a><var>165.27</var>    (c) A retailer not maintaining a place of business in this state is presumed, subject to <br/>
<a id="pl.165.28"></a><var>165.28</var>rebuttal, to be engaged in regular solicitation within this state if it engages in any of the <br/>
<a id="pl.165.29"></a><var>165.29</var>activities in paragraph (a) and:<br/>
<a id="pl.165.30"></a><var>165.30</var>    (1) makes 100 or more retail sales from outside this state to destinations in this state <br/>
<a id="pl.165.31"></a><var>165.31</var>during a period of 12 consecutive months; or<br/>
<a id="pl.165.32"></a><var>165.32</var>    (2) makes ten or more retail sales totaling more than $100,000 from outside this state <br/>
<a id="pl.165.33"></a><var>165.33</var>to destinations in this state during a period of 12 consecutive months.<br/>
<a id="pl.165.34"></a><var>165.34</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.165.35"></a><var>165.35</var>June 30, 2013.<br/>
<br/>
<a id="bill.7.23.0"></a><a id="pl.166.1"></a><var>166.1</var>    Sec. 23. Minnesota Statutes 2012, section 297A.66, is amended by adding a <br/>
<a id="pl.166.2"></a><var>166.2</var>subdivision to read:<br/>
<a id="pl.166.3"></a><var>166.3</var>    Subd. 7. <b>Severability.</b> The legislature intends that the provisions of this section <br/>
<a id="pl.166.4"></a><var>166.4</var>are severable. If any provision contained in this bill is held invalid or unconstitutional, or <br/>
<a id="pl.166.5"></a><var>166.5</var>its application is held invalid or unconstitutional, that finding shall not affect the other <br/>
<a id="pl.166.6"></a><var>166.6</var>provisions or applications that can be given effect without the invalid or unconstitutional <br/>
<a id="pl.166.7"></a><var>166.7</var>provision or application.<br/>
<a id="pl.166.8"></a><var>166.8</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2013.<br/>
<br/>
<a id="bill.7.24.0"></a><a id="pl.166.9"></a><var>166.9</var>    Sec. 24. Minnesota Statutes 2012, section 297A.665, is amended to read:<br/>
<a id="pl.166.10"></a><var>166.10</var><b>297A.665 PRESUMPTION OF TAX; BURDEN OF PROOF.</b><br/>
<a id="pl.166.11"></a><var>166.11</var>    (a) For the purpose of the proper administration of this chapter and to prevent <br/>
<a id="pl.166.12"></a><var>166.12</var>evasion of the tax, until the contrary is established, it is presumed that:<br/>
<a id="pl.166.13"></a><var>166.13</var>    (1) all gross receipts are subject to the tax; and<br/>
<a id="pl.166.14"></a><var>166.14</var>    (2) all retail sales for delivery in Minnesota are for storage, use, or other consumption <br/>
<a id="pl.166.15"></a><var>166.15</var>in Minnesota.<br/>
<a id="pl.166.16"></a><var>166.16</var>    (b) The burden of proving that a sale is not a taxable retail sale is on the seller. <br/>
<a id="pl.166.17"></a><var>166.17</var>However, a seller is relieved of liability if:<br/>
<a id="pl.166.18"></a><var>166.18</var>    (1) the seller obtains a fully completed exemption certificate or all the relevant <br/>
<a id="pl.166.19"></a><var>166.19</var>information required by section 
         <statute_ref>297A.72, subdivision 2</statute_ref>, at the time of the sale or within <br/>
<a id="pl.166.20"></a><var>166.20</var>90 days after the date of the sale; or<br/>
<a id="pl.166.21"></a><var>166.21</var>    (2) if the seller has not obtained a fully completed exemption certificate or all the <br/>
<a id="pl.166.22"></a><var>166.22</var>relevant information required by section 
         <statute_ref>297A.72, subdivision 2</statute_ref>, within the time provided <br/>
<a id="pl.166.23"></a><var>166.23</var>in clause (1), within 120 days after a request for substantiation by the commissioner, <br/>
<a id="pl.166.24"></a><var>166.24</var>the seller either:<br/>
<a id="pl.166.25"></a><var>166.25</var>    (i) obtains in good faith a fully completed exemption certificate or all the relevant <br/>
<a id="pl.166.26"></a><var>166.26</var>information required by section 
         <statute_ref>297A.72, subdivision 2</statute_ref>, from the purchaser; or<br/>
<a id="pl.166.27"></a><var>166.27</var>    (ii) proves by other means that the transaction was not subject to tax;<br/>
<a id="pl.166.28"></a><var>166.28</var>    (3) in the case of drop shipment sales, a seller engaged in drop shipping may claim a <br/>
<a id="pl.166.29"></a><var>166.29</var>resale exemption based on an exemption certificate provided by its customer or reseller, <br/>
<a id="pl.166.30"></a><var>166.30</var>or any other acceptable information available to the seller engaged in drop shipping <br/>
<a id="pl.166.31"></a><var>166.31</var>evidencing qualification for a resale exemption, regardless of whether the customer or <br/>
<a id="pl.166.32"></a><var>166.32</var>e-seller is registered to collect and remit sales and use tax in the state.<br/>
<a id="pl.166.33"></a><var>166.33</var>    (c) Notwithstanding paragraph (b), relief from liability does not apply to a seller who:<br/>
<a id="pl.166.34"></a><var>166.34</var>    (1) fraudulently fails to collect the tax; or<br/>
<a id="pl.167.1"></a><var>167.1</var>    (2) solicits purchasers to participate in the unlawful claim of an exemption.<br/>
<a id="pl.167.2"></a><var>167.2</var>    (d) A certified service provider, as defined in section 
         <statute_ref>297A.995, subdivision 2</statute_ref>, is <br/>
<a id="pl.167.3"></a><var>167.3</var>relieved of liability under this section to the extent a seller who is its client is relieved of <br/>
<a id="pl.167.4"></a><var>167.4</var>liability.<br/>
<a id="pl.167.5"></a><var>167.5</var>    (e) A purchaser of tangible personal property or any items listed in section 
         <statute_ref>297A.63 <br/>
</statute_ref><a id="pl.167.6"></a><var>167.6</var>that are shipped or brought to Minnesota by the purchaser has the burden of proving that the <br/>
<a id="pl.167.7"></a><var>167.7</var>property was not purchased from a retailer for storage, use, or consumption in Minnesota.<br/>
<a id="pl.167.8"></a><var>167.8</var>    (f) If a seller claims that certain sales are exempt and does not provide the certificate, <br/>
<a id="pl.167.9"></a><var>167.9</var>information, or proof required by paragraph (b), clause (2), within 120 days after the date <br/>
<a id="pl.167.10"></a><var>167.10</var>of the commissioner's request for substantiation, then the exemptions claimed by the seller <br/>
<a id="pl.167.11"></a><var>167.11</var>that required substantiation are disallowed.<br/>
<a id="pl.167.12"></a><var>167.12</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.167.13"></a><var>167.13</var>June 30, 2013.<br/>
<br/>
<a id="bill.7.25.0"></a><a id="pl.167.14"></a><var>167.14</var>    Sec. 25. Minnesota Statutes 2012, section 297A.668, is amended by adding a <br/>
<a id="pl.167.15"></a><var>167.15</var>subdivision to read:<br/>
<a id="pl.167.16"></a><var>167.16</var>    Subd. 6a. <b>Multiple points of use.</b> (a) Notwithstanding the provisions of <br/>
<a id="pl.167.17"></a><var>167.17</var>subdivisions 2 and 3, a business purchaser that is not a holder of a direct pay permit that <br/>
<a id="pl.167.18"></a><var>167.18</var>purchases electronically delivered goods or services that will be concurrently available for <br/>
<a id="pl.167.19"></a><var>167.19</var>use in more than one taxing jurisdiction may deliver to the seller in conjunction with its <br/>
<a id="pl.167.20"></a><var>167.20</var>purchase a multiple points of use certificate disclosing this fact. <br/>
<a id="pl.167.21"></a><var>167.21</var>(b) Upon receipt of the multiple points of use certificate, the seller is relieved of the <br/>
<a id="pl.167.22"></a><var>167.22</var>obligation to collect, pay, or remit the applicable tax and the purchaser is obligated to <br/>
<a id="pl.167.23"></a><var>167.23</var>collect, pay, or remit the applicable tax on a direct pay basis. <br/>
<a id="pl.167.24"></a><var>167.24</var>(c) The purchaser delivering the multiple points of use certificate has sole discretion <br/>
<a id="pl.167.25"></a><var>167.25</var>to use any reasonable but consistent and uniform method of apportionment that is supported <br/>
<a id="pl.167.26"></a><var>167.26</var>by the purchaser's business records as they exist at the time of the consummation of the sale.<br/>
<a id="pl.167.27"></a><var>167.27</var>(d) The multiple points of use certificate remains in effect for all future sales by the <br/>
<a id="pl.167.28"></a><var>167.28</var>seller to the purchaser until it is revoked by the purchaser in writing. <br/>
<a id="pl.167.29"></a><var>167.29</var>(e) A holder of a direct pay permit is not required to deliver a multiple points of use <br/>
<a id="pl.167.30"></a><var>167.30</var>certificate to the seller.  A direct pay permit holder shall follow the provisions of paragraph <br/>
<a id="pl.167.31"></a><var>167.31</var>(c) in apportioning the tax due on electronically delivered goods or services that will be <br/>
<a id="pl.167.32"></a><var>167.32</var>concurrently available for use in more than one taxing jurisdiction. <br/>
<a id="pl.167.33"></a><var>167.33</var>(f) A seller is relieved of liability if:<br/>
<a id="pl.168.1"></a><var>168.1</var>(1) the seller obtains a fully completed multiple points of use certificate or all the <br/>
<a id="pl.168.2"></a><var>168.2</var>relevant information required by section 297A.72, subdivision 2, at the time of the sale or <br/>
<a id="pl.168.3"></a><var>168.3</var>within 90 days after the date of the sale; or<br/>
<a id="pl.168.4"></a><var>168.4</var>(2) within 120 days after a request for substantiation by the commissioner, the <br/>
<a id="pl.168.5"></a><var>168.5</var>seller either:<br/>
<a id="pl.168.6"></a><var>168.6</var>(i) obtains in good faith a fully completed multiple points of use certificate or all the <br/>
<a id="pl.168.7"></a><var>168.7</var>relevant information required by section 297A.72, subdivision 2, from the purchaser; or<br/>
<a id="pl.168.8"></a><var>168.8</var>(ii) proves by other means that the transaction was not subject to tax.<br/>
<a id="pl.168.9"></a><var>168.9</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.168.10"></a><var>168.10</var>June 30, 2013.<br/>
<br/>
<a id="bill.7.26.0"></a><a id="pl.168.11"></a><var>168.11</var>    Sec. 26. Minnesota Statutes 2012, section 297A.67, subdivision 7, is amended to read:<br/>
<a id="pl.168.12"></a><var>168.12</var>    Subd. 7. <b>Drugs; medical devices.</b> (a) Sales of the following drugs and medical <br/>
<a id="pl.168.13"></a><var>168.13</var>devices for human use are exempt:<br/>
<a id="pl.168.14"></a><var>168.14</var>    (1) prescription drugs, including over-the-counter drugs;<br/>
<a id="pl.168.15"></a><var>168.15</var>    (2) single-use finger-pricking devices for the extraction of blood and other single-use <br/>
<a id="pl.168.16"></a><var>168.16</var>devices and single-use diagnostic agents used in diagnosing, monitoring, or treating <br/>
<a id="pl.168.17"></a><var>168.17</var>diabetes;<br/>
<a id="pl.168.18"></a><var>168.18</var>    (3) insulin and medical oxygen for human use, regardless of whether prescribed <br/>
<a id="pl.168.19"></a><var>168.19</var>or sold over the counter;<br/>
<a id="pl.168.20"></a><var>168.20</var>    (4) prosthetic devices;<br/>
<a id="pl.168.21"></a><var>168.21</var>    (5) durable medical equipment for home use only;<br/>
<a id="pl.168.22"></a><var>168.22</var>    (6) mobility enhancing equipment;<br/>
<a id="pl.168.23"></a><var>168.23</var>    (7) prescription corrective eyeglasses; and<br/>
<a id="pl.168.24"></a><var>168.24</var>    (8) kidney dialysis equipment, including repair and replacement parts.<br/>
<a id="pl.168.25"></a><var>168.25</var>(b) Items purchased in transactions covered by:<br/>
<a id="pl.168.26"></a><var>168.26</var>(1) Medicare as defined under title XVIII of the Social Security Act, United States <br/>
<a id="pl.168.27"></a><var>168.27</var>Code, title 42, section 1395, et seq.; or<br/>
<a id="pl.168.28"></a><var>168.28</var>(2) Medicaid as defined under title XIX of the Social Security Act, United States <br/>
<a id="pl.168.29"></a><var>168.29</var>Code, title 42, section 1396, et. seq.<br/>
<a id="pl.168.30"></a><var>168.30</var>    (b) (c) For purposes of this subdivision:<br/>
<a id="pl.168.31"></a><var>168.31</var>    (1) "Drug" means a compound, substance, or preparation, and any component of <br/>
<a id="pl.168.32"></a><var>168.32</var>a compound, substance, or preparation, other than food and food ingredients, dietary <br/>
<a id="pl.168.33"></a><var>168.33</var>supplements, or alcoholic beverages that is:<br/>
<a id="pl.169.1"></a><var>169.1</var>    (i) recognized in the official United States Pharmacopoeia, official Homeopathic <br/>
<a id="pl.169.2"></a><var>169.2</var>Pharmacopoeia of the United States, or official National Formulary, and supplement <br/>
<a id="pl.169.3"></a><var>169.3</var>to any of them;<br/>
<a id="pl.169.4"></a><var>169.4</var>    (ii) intended for use in the diagnosis, cure, mitigation, treatment, or prevention <br/>
<a id="pl.169.5"></a><var>169.5</var>of disease; or<br/>
<a id="pl.169.6"></a><var>169.6</var>    (iii) intended to affect the structure or any function of the body.<br/>
<a id="pl.169.7"></a><var>169.7</var>    (2) "Durable medical equipment" means equipment, including repair and <br/>
<a id="pl.169.8"></a><var>169.8</var>replacement parts, including single-patient use items, but not including mobility enhancing <br/>
<a id="pl.169.9"></a><var>169.9</var>equipment, that:<br/>
<a id="pl.169.10"></a><var>169.10</var>    (i) can withstand repeated use;<br/>
<a id="pl.169.11"></a><var>169.11</var>    (ii) is primarily and customarily used to serve a medical purpose;<br/>
<a id="pl.169.12"></a><var>169.12</var>    (iii) generally is not useful to a person in the absence of illness or injury; and<br/>
<a id="pl.169.13"></a><var>169.13</var>    (iv) is not worn in or on the body.<br/>
<a id="pl.169.14"></a><var>169.14</var>    For purposes of this clause, "repair and replacement parts" includes all components <br/>
<a id="pl.169.15"></a><var>169.15</var>or attachments used in conjunction with the durable medical equipment, but does not <br/>
<a id="pl.169.16"></a><var>169.16</var>include including repair and replacement parts which are for single patient use only.<br/>
<a id="pl.169.17"></a><var>169.17</var>    (3) "Mobility enhancing equipment" means equipment, including repair and <br/>
<a id="pl.169.18"></a><var>169.18</var>replacement parts, but not including durable medical equipment, that:<br/>
<a id="pl.169.19"></a><var>169.19</var>    (i) is primarily and customarily used to provide or increase the ability to move from <br/>
<a id="pl.169.20"></a><var>169.20</var>one place to another and that is appropriate for use either in a home or a motor vehicle;<br/>
<a id="pl.169.21"></a><var>169.21</var>    (ii) is not generally used by persons with normal mobility; and<br/>
<a id="pl.169.22"></a><var>169.22</var>    (iii) does not include any motor vehicle or equipment on a motor vehicle normally <br/>
<a id="pl.169.23"></a><var>169.23</var>provided by a motor vehicle manufacturer.<br/>
<a id="pl.169.24"></a><var>169.24</var>    (4) "Over-the-counter drug" means a drug that contains a label that identifies the <br/>
<a id="pl.169.25"></a><var>169.25</var>product as a drug as required by Code of Federal Regulations, title 21, section 201.66. The <br/>
<a id="pl.169.26"></a><var>169.26</var>label must include a "drug facts" panel or a statement of the active ingredients with a list of <br/>
<a id="pl.169.27"></a><var>169.27</var>those ingredients contained in the compound, substance, or preparation. Over-the-counter <br/>
<a id="pl.169.28"></a><var>169.28</var>drugs do not include grooming and hygiene products, regardless of whether they otherwise <br/>
<a id="pl.169.29"></a><var>169.29</var>meet the definition. "Grooming and hygiene products" are soaps, cleaning solutions, <br/>
<a id="pl.169.30"></a><var>169.30</var>shampoo, toothpaste, mouthwash, antiperspirants, and suntan lotions and sunscreens.<br/>
<a id="pl.169.31"></a><var>169.31</var>    (5) (4) "Prescribed" and "prescription" means a direction in the form of an order, <br/>
<a id="pl.169.32"></a><var>169.32</var>formula, or recipe issued in any form of oral, written, electronic, or other means of <br/>
<a id="pl.169.33"></a><var>169.33</var>transmission by a duly licensed health care professional.<br/>
<a id="pl.169.34"></a><var>169.34</var>    (6) (5) "Prosthetic device" means a replacement, corrective, or supportive device, <br/>
<a id="pl.169.35"></a><var>169.35</var>including repair and replacement parts, worn on or in the body to:<br/>
<a id="pl.169.36"></a><var>169.36</var>    (i) artificially replace a missing portion of the body;<br/>
<a id="pl.170.1"></a><var>170.1</var>    (ii) prevent or correct physical deformity or malfunction; or<br/>
<a id="pl.170.2"></a><var>170.2</var>    (iii) support a weak or deformed portion of the body.<br/>
<a id="pl.170.3"></a><var>170.3</var>Prosthetic device does not include corrective eyeglasses.<br/>
<a id="pl.170.4"></a><var>170.4</var>    (7) (6) "Kidney dialysis equipment" means equipment that:<br/>
<a id="pl.170.5"></a><var>170.5</var>    (i) is used to remove waste products that build up in the blood when the kidneys are <br/>
<a id="pl.170.6"></a><var>170.6</var>not able to do so on their own; and<br/>
<a id="pl.170.7"></a><var>170.7</var>    (ii) can withstand repeated use, including multiple use by a single patient, <br/>
<a id="pl.170.8"></a><var>170.8</var>notwithstanding the provisions of clause (2).<br/>
<a id="pl.170.9"></a><var>170.9</var>(7) A transaction is covered by Medicare or Medicaid if any portion of the cost of <br/>
<a id="pl.170.10"></a><var>170.10</var>the item purchased in the transaction is paid for or reimbursed by the federal government <br/>
<a id="pl.170.11"></a><var>170.11</var>or the state of Minnesota pursuant to the Medicare or Medicaid program, by a private <br/>
<a id="pl.170.12"></a><var>170.12</var>insurance company administering the Medicare or Medicaid program on behalf of the <br/>
<a id="pl.170.13"></a><var>170.13</var>federal government or the state of Minnesota, or by a managed care organization for the <br/>
<a id="pl.170.14"></a><var>170.14</var>benefit of a patient enrolled in a prepaid program that furnishes medical services in lieu <br/>
<a id="pl.170.15"></a><var>170.15</var>of conventional Medicare or Medicaid coverage pursuant to agreement with the federal <br/>
<a id="pl.170.16"></a><var>170.16</var>government or the state of Minnesota.<br/>
<a id="pl.170.17"></a><var>170.17</var><b>EFFECTIVE DATE.</b>Changes to paragraph (a), clause (1), and paragraph (c), <br/>
<a id="pl.170.18"></a><var>170.18</var>clause (4), are effective for sales and purchases made after June 30, 2013. Changes to <br/>
<a id="pl.170.19"></a><var>170.19</var>paragraph (b) and paragraph (c), clauses (2) and (7), are effective retroactively for sales <br/>
<a id="pl.170.20"></a><var>170.20</var>and purchases made after April 1, 2009. Purchasers may apply for a refund of tax paid on <br/>
<a id="pl.170.21"></a><var>170.21</var>qualifying purchases under paragraph (b) and paragraph (c), clauses (2) and (7), made <br/>
<a id="pl.170.22"></a><var>170.22</var>after April 1, 2009, and before July 1, 2013, in the manner provided in section 297A.75. <br/>
<a id="pl.170.23"></a><var>170.23</var>Notwithstanding limitations on claims for refunds under section 289A.40, claims may be <br/>
<a id="pl.170.24"></a><var>170.24</var>filed with the commissioner until June 30, 2014.<br/>
<br/>
<a id="bill.7.27.0"></a><a id="pl.170.25"></a><var>170.25</var>    Sec. 27. Minnesota Statutes 2012, section 297A.67, is amended by adding a <br/>
<a id="pl.170.26"></a><var>170.26</var>subdivision to read:<br/>
<a id="pl.170.27"></a><var>170.27</var>    Subd. 7a. <b>Accessories and supplies.</b> Accessories and supplies required for the <br/>
<a id="pl.170.28"></a><var>170.28</var>effective use of durable medical equipment for home use only or purchased in a transaction <br/>
<a id="pl.170.29"></a><var>170.29</var>covered by medicare or Medicaid, that are not already exempt under section 297A.67, <br/>
<a id="pl.170.30"></a><var>170.30</var>subdivision 7, are exempt. Accessories and supplies for the effective use of a prosthetic <br/>
<a id="pl.170.31"></a><var>170.31</var>device that are not already exempt under section 297A.67, subdivision 7, are exempt. <br/>
<a id="pl.170.32"></a><var>170.32</var>For purposes of this subdivision "durable medical equipment," "prosthetic device," <br/>
<a id="pl.170.33"></a><var>170.33</var>"Medicare," and "Medicaid" have the definitions given in section 297A.67, subdivision 7.<br/>
<a id="pl.171.1"></a><var>171.1</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for sales and purchases <br/>
<a id="pl.171.2"></a><var>171.2</var>made after April 1, 2009. Purchasers may apply for a refund of tax paid on qualifying <br/>
<a id="pl.171.3"></a><var>171.3</var>purchases under this section made after April 1, 2009, and before July 1, 2013, in the <br/>
<a id="pl.171.4"></a><var>171.4</var>manner provided in section 297A.75. Notwithstanding limitations on claims for refunds <br/>
<a id="pl.171.5"></a><var>171.5</var>under section 289A.40, claims may be filed with the commissioner until June 30, 2014.<br/>
<br/>
<a id="bill.7.28.0"></a><a id="pl.171.6"></a><var>171.6</var>    Sec. 28. Minnesota Statutes 2012, section 297A.68, subdivision 2, is amended to read:<br/>
<a id="pl.171.7"></a><var>171.7</var>    Subd. 2. <b>Materials consumed in industrial production.</b> (a) Materials stored, used, <br/>
<a id="pl.171.8"></a><var>171.8</var>or consumed in industrial production of tangible personal property intended to be sold <br/>
<a id="pl.171.9"></a><var>171.9</var>ultimately at retail, are exempt, whether or not the item so used becomes an ingredient <br/>
<a id="pl.171.10"></a><var>171.10</var>or constituent part of the property produced. Materials that qualify for this exemption <br/>
<a id="pl.171.11"></a><var>171.11</var>include, but are not limited to, the following:<br/>
<a id="pl.171.12"></a><var>171.12</var>(1) chemicals, including chemicals used for cleaning food processing machinery <br/>
<a id="pl.171.13"></a><var>171.13</var>and equipment;<br/>
<a id="pl.171.14"></a><var>171.14</var>(2) materials, including chemicals, fuels, and electricity purchased by persons <br/>
<a id="pl.171.15"></a><var>171.15</var>engaged in industrial production to treat waste generated as a result of the production <br/>
<a id="pl.171.16"></a><var>171.16</var>process;<br/>
<a id="pl.171.17"></a><var>171.17</var>(3) fuels, electricity, gas, and steam used or consumed in the production process, <br/>
<a id="pl.171.18"></a><var>171.18</var>except that electricity, gas, or steam used for space heating, cooling, or lighting is exempt <br/>
<a id="pl.171.19"></a><var>171.19</var>if (i) it is in excess of the average climate control or lighting for the production area, and <br/>
<a id="pl.171.20"></a><var>171.20</var>(ii) it is necessary to produce that particular product;<br/>
<a id="pl.171.21"></a><var>171.21</var>(4) petroleum products and lubricants;<br/>
<a id="pl.171.22"></a><var>171.22</var>(5) packaging materials, including returnable containers used in packaging food <br/>
<a id="pl.171.23"></a><var>171.23</var>and beverage products;<br/>
<a id="pl.171.24"></a><var>171.24</var>(6) accessory tools, equipment, and other items that are separate detachable units <br/>
<a id="pl.171.25"></a><var>171.25</var>with an ordinary useful life of less than 12 months used in producing a direct effect upon <br/>
<a id="pl.171.26"></a><var>171.26</var>the product; and<br/>
<a id="pl.171.27"></a><var>171.27</var>(7) the following materials, tools, and equipment used in metal-casting: crucibles, <br/>
<a id="pl.171.28"></a><var>171.28</var>thermocouple protection sheaths and tubes, stalk tubes, refractory materials, molten metal <br/>
<a id="pl.171.29"></a><var>171.29</var>filters and filter boxes, degassing lances, and base blocks.<br/>
<a id="pl.171.30"></a><var>171.30</var>(b) This exemption does not include:<br/>
<a id="pl.171.31"></a><var>171.31</var>(1) machinery, equipment, implements, tools, accessories, appliances, contrivances <br/>
<a id="pl.171.32"></a><var>171.32</var>and furniture and fixtures, except those listed in paragraph (a), clause (6); and<br/>
<a id="pl.171.33"></a><var>171.33</var>(2) petroleum and special fuels used in producing or generating power for propelling <br/>
<a id="pl.171.34"></a><var>171.34</var>ready-mixed concrete trucks on the public highways of this state.<br/>
<a id="pl.172.1"></a><var>172.1</var>(c) Industrial production includes, but is not limited to, research, development, <br/>
<a id="pl.172.2"></a><var>172.2</var>design or production of any tangible personal property, manufacturing, processing (other <br/>
<a id="pl.172.3"></a><var>172.3</var>than by restaurants and consumers) of agricultural products (whether vegetable or animal), <br/>
<a id="pl.172.4"></a><var>172.4</var>commercial fishing, refining, smelting, reducing, brewing, distilling, printing, mining, <br/>
<a id="pl.172.5"></a><var>172.5</var>quarrying, lumbering, generating electricity, the production of road building materials, <br/>
<a id="pl.172.6"></a><var>172.6</var>and the research, development, design, or production of computer software. Industrial <br/>
<a id="pl.172.7"></a><var>172.7</var>production does not include painting, cleaning, repairing or similar processing of property <br/>
<a id="pl.172.8"></a><var>172.8</var>except as part of the original manufacturing process.<br/>
<a id="pl.172.9"></a><var>172.9</var>(d) Industrial production does not include:<br/>
<a id="pl.172.10"></a><var>172.10</var>(1) the furnishing of services listed in section 
         <statute_ref>297A.61, subdivision 3</statute_ref>, paragraph (g), <br/>
<a id="pl.172.11"></a><var>172.11</var>clause (6), items (i) to (vi) and (viii), or paragraph (m) or (n); or<br/>
<a id="pl.172.12"></a><var>172.12</var>(2) the transportation, transmission, or distribution of petroleum, liquefied gas, <br/>
<a id="pl.172.13"></a><var>172.13</var>natural gas, water, or steam, in, by, or through pipes, lines, tanks, mains, or other means of <br/>
<a id="pl.172.14"></a><var>172.14</var>transporting those products. For purposes of this paragraph, "transportation, transmission, <br/>
<a id="pl.172.15"></a><var>172.15</var>or distribution" does not include blending of petroleum or biodiesel fuel as defined <br/>
<a id="pl.172.16"></a><var>172.16</var>in section 
         <statute_ref>239.77</statute_ref>.<br/>
<a id="pl.172.17"></a><var>172.17</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.172.18"></a><var>172.18</var>June 30, 2013.<br/>
<br/>
<a id="bill.7.29.0"></a><a id="pl.172.19"></a><var>172.19</var>    Sec. 29. Minnesota Statutes 2012, section 297A.68, subdivision 5, is amended to read:<br/>
<a id="pl.172.20"></a><var>172.20</var>    Subd. 5. <b>Capital equipment.</b> (a) Capital equipment is exempt. Except as provided <br/>
<a id="pl.172.21"></a><var>172.21</var>in paragraphs (e) and (f), the tax must be imposed and collected as if the rate under section <br/>
<statute_ref><a id="pl.172.22"></a><var>172.22</var>297A.62, subdivision 1
         </statute_ref>, applied, and then refunded in the manner provided in section <br/>
<statute_ref><a id="pl.172.23"></a><var>172.23</var>297A.75
         </statute_ref>.<br/>
<a id="pl.172.24"></a><var>172.24</var>"Capital equipment" means machinery and equipment purchased or leased, and used <br/>
<a id="pl.172.25"></a><var>172.25</var>in this state by the purchaser or lessee primarily for manufacturing, fabricating, mining, <br/>
<a id="pl.172.26"></a><var>172.26</var>or refining tangible personal property to be sold ultimately at retail if the machinery and <br/>
<a id="pl.172.27"></a><var>172.27</var>equipment are essential to the integrated production process of manufacturing, fabricating, <br/>
<a id="pl.172.28"></a><var>172.28</var>mining, or refining. Capital equipment also includes machinery and equipment <br/>
<a id="pl.172.29"></a><var>172.29</var>used primarily to electronically transmit results retrieved by a customer of an online <br/>
<a id="pl.172.30"></a><var>172.30</var>computerized data retrieval system.<br/>
<a id="pl.172.31"></a><var>172.31</var>(b) Capital equipment includes, but is not limited to:<br/>
<a id="pl.172.32"></a><var>172.32</var>(1) machinery and equipment used to operate, control, or regulate the production <br/>
<a id="pl.172.33"></a><var>172.33</var>equipment;<br/>
<a id="pl.172.34"></a><var>172.34</var>(2) machinery and equipment used for research and development, design, quality <br/>
<a id="pl.172.35"></a><var>172.35</var>control, and testing activities;<br/>
<a id="pl.173.1"></a><var>173.1</var>(3) environmental control devices that are used to maintain conditions such as <br/>
<a id="pl.173.2"></a><var>173.2</var>temperature, humidity, light, or air pressure when those conditions are essential to and are <br/>
<a id="pl.173.3"></a><var>173.3</var>part of the production process;<br/>
<a id="pl.173.4"></a><var>173.4</var>(4) materials and supplies used to construct and install machinery or equipment;<br/>
<a id="pl.173.5"></a><var>173.5</var>(5) repair and replacement parts, including accessories, whether purchased as spare <br/>
<a id="pl.173.6"></a><var>173.6</var>parts, repair parts, or as upgrades or modifications to machinery or equipment;<br/>
<a id="pl.173.7"></a><var>173.7</var>(6) materials used for foundations that support machinery or equipment;<br/>
<a id="pl.173.8"></a><var>173.8</var>(7) materials used to construct and install special purpose buildings used in the <br/>
<a id="pl.173.9"></a><var>173.9</var>production process;<br/>
<a id="pl.173.10"></a><var>173.10</var>(8) ready-mixed concrete equipment in which the ready-mixed concrete is mixed <br/>
<a id="pl.173.11"></a><var>173.11</var>as part of the delivery process regardless if mounted on a chassis, repair parts for <br/>
<a id="pl.173.12"></a><var>173.12</var>ready-mixed concrete trucks, and leases of ready-mixed concrete trucks; and<br/>
<a id="pl.173.13"></a><var>173.13</var>(9) machinery or equipment used for research, development, design, or production <br/>
<a id="pl.173.14"></a><var>173.14</var>of computer software.<br/>
<a id="pl.173.15"></a><var>173.15</var>(c) Capital equipment does not include the following:<br/>
<a id="pl.173.16"></a><var>173.16</var>(1) motor vehicles taxed under chapter 297B;<br/>
<a id="pl.173.17"></a><var>173.17</var>(2) machinery or equipment used to receive or store raw materials;<br/>
<a id="pl.173.18"></a><var>173.18</var>(3) building materials, except for materials included in paragraph (b), clauses (6) <br/>
<a id="pl.173.19"></a><var>173.19</var>and (7);<br/>
<a id="pl.173.20"></a><var>173.20</var>(4) machinery or equipment used for nonproduction purposes, including, but not <br/>
<a id="pl.173.21"></a><var>173.21</var>limited to, the following: plant security, fire prevention, first aid, and hospital stations; <br/>
<a id="pl.173.22"></a><var>173.22</var>support operations or administration; pollution control; and plant cleaning, disposal of <br/>
<a id="pl.173.23"></a><var>173.23</var>scrap and waste, plant communications, space heating, cooling, lighting, or safety;<br/>
<a id="pl.173.24"></a><var>173.24</var>(5) farm machinery and aquaculture production equipment as defined by section <br/>
<statute_ref><a id="pl.173.25"></a><var>173.25</var>297A.61
         </statute_ref>, subdivisions 12 and 13;<br/>
<a id="pl.173.26"></a><var>173.26</var>(6) machinery or equipment purchased and installed by a contractor as part of an <br/>
<a id="pl.173.27"></a><var>173.27</var>improvement to real property;<br/>
<a id="pl.173.28"></a><var>173.28</var>(7) machinery and equipment used by restaurants in the furnishing, preparing, or <br/>
<a id="pl.173.29"></a><var>173.29</var>serving of prepared foods as defined in section 
         <statute_ref>297A.61, subdivision 31</statute_ref>;<br/>
<a id="pl.173.30"></a><var>173.30</var>(8) machinery and equipment used to furnish the services listed in section 
         <statute_ref>297A.61, <br/>
<a id="pl.173.31"></a><var>173.31</var>subdivision 3
         </statute_ref>, paragraph (g), clause (6), items (i) to (vi) and (viii);<br/>
<a id="pl.173.32"></a><var>173.32</var>(9) machinery or equipment used in the transportation, transmission, or distribution <br/>
<a id="pl.173.33"></a><var>173.33</var>of petroleum, liquefied gas, natural gas, water, or steam, in, by, or through pipes, lines, <br/>
<a id="pl.173.34"></a><var>173.34</var>tanks, mains, or other means of transporting those products. This clause does not apply to <br/>
<a id="pl.173.35"></a><var>173.35</var>machinery or equipment used to blend petroleum or biodiesel fuel as defined in section <br/>
<statute_ref><a id="pl.173.36"></a><var>173.36</var>239.77
         </statute_ref>; or<br/>
<a id="pl.174.1"></a><var>174.1</var>(10) any other item that is not essential to the integrated process of manufacturing, <br/>
<a id="pl.174.2"></a><var>174.2</var>fabricating, mining, or refining.<br/>
<a id="pl.174.3"></a><var>174.3</var>(d) For purposes of this subdivision:<br/>
<a id="pl.174.4"></a><var>174.4</var>(1) "Equipment" means independent devices or tools separate from machinery but <br/>
<a id="pl.174.5"></a><var>174.5</var>essential to an integrated production process, including computers and computer software, <br/>
<a id="pl.174.6"></a><var>174.6</var>used in operating, controlling, or regulating machinery and equipment; and any subunit or <br/>
<a id="pl.174.7"></a><var>174.7</var>assembly comprising a component of any machinery or accessory or attachment parts of <br/>
<a id="pl.174.8"></a><var>174.8</var>machinery, such as tools, dies, jigs, patterns, and molds.<br/>
<a id="pl.174.9"></a><var>174.9</var>(2) "Fabricating" means to make, build, create, produce, or assemble components or <br/>
<a id="pl.174.10"></a><var>174.10</var>property to work in a new or different manner.<br/>
<a id="pl.174.11"></a><var>174.11</var>(3) "Integrated production process" means a process or series of operations through <br/>
<a id="pl.174.12"></a><var>174.12</var>which tangible personal property is manufactured, fabricated, mined, or refined. For <br/>
<a id="pl.174.13"></a><var>174.13</var>purposes of this clause, (i) manufacturing begins with the removal of raw materials <br/>
<a id="pl.174.14"></a><var>174.14</var>from inventory and ends when the last process prior to loading for shipment has been <br/>
<a id="pl.174.15"></a><var>174.15</var>completed; (ii) fabricating begins with the removal from storage or inventory of the <br/>
<a id="pl.174.16"></a><var>174.16</var>property to be assembled, processed, altered, or modified and ends with the creation <br/>
<a id="pl.174.17"></a><var>174.17</var>or production of the new or changed product; (iii) mining begins with the removal of <br/>
<a id="pl.174.18"></a><var>174.18</var>overburden from the site of the ores, minerals, stone, peat deposit, or surface materials and <br/>
<a id="pl.174.19"></a><var>174.19</var>ends when the last process before stockpiling is completed; and (iv) refining begins with <br/>
<a id="pl.174.20"></a><var>174.20</var>the removal from inventory or storage of a natural resource and ends with the conversion <br/>
<a id="pl.174.21"></a><var>174.21</var>of the item to its completed form.<br/>
<a id="pl.174.22"></a><var>174.22</var>(4) "Machinery" means mechanical, electronic, or electrical devices, including <br/>
<a id="pl.174.23"></a><var>174.23</var>computers and computer software, that are purchased or constructed to be used for the <br/>
<a id="pl.174.24"></a><var>174.24</var>activities set forth in paragraph (a), beginning with the removal of raw materials from <br/>
<a id="pl.174.25"></a><var>174.25</var>inventory through completion of the product, including packaging of the product.<br/>
<a id="pl.174.26"></a><var>174.26</var>(5) "Machinery and equipment used for pollution control" means machinery and <br/>
<a id="pl.174.27"></a><var>174.27</var>equipment used solely to eliminate, prevent, or reduce pollution resulting from an activity <br/>
<a id="pl.174.28"></a><var>174.28</var>described in paragraph (a).<br/>
<a id="pl.174.29"></a><var>174.29</var>(6) "Manufacturing" means an operation or series of operations where raw materials <br/>
<a id="pl.174.30"></a><var>174.30</var>are changed in form, composition, or condition by machinery and equipment and which <br/>
<a id="pl.174.31"></a><var>174.31</var>results in the production of a new article of tangible personal property. For purposes of <br/>
<a id="pl.174.32"></a><var>174.32</var>this subdivision, "manufacturing" includes the generation of electricity or steam to be <br/>
<a id="pl.174.33"></a><var>174.33</var>sold at retail.<br/>
<a id="pl.174.34"></a><var>174.34</var>(7) "Mining" means the extraction of minerals, ores, stone, or peat.<br/>
<a id="pl.174.35"></a><var>174.35</var>(8) "Online data retrieval system" means a system whose cumulation of information <br/>
<a id="pl.174.36"></a><var>174.36</var>is equally available and accessible to all its customers.<br/>
<a id="pl.175.1"></a><var>175.1</var>(9) "Primarily" means machinery and equipment used 50 percent or more of the time <br/>
<a id="pl.175.2"></a><var>175.2</var>in an activity described in paragraph (a).<br/>
<a id="pl.175.3"></a><var>175.3</var>(10) "Refining" means the process of converting a natural resource to an intermediate <br/>
<a id="pl.175.4"></a><var>175.4</var>or finished product, including the treatment of water to be sold at retail.<br/>
<a id="pl.175.5"></a><var>175.5</var>(11) This subdivision does not apply to telecommunications equipment as <br/>
<a id="pl.175.6"></a><var>175.6</var>provided in subdivision 35, and does not apply to wire, cable, fiber, poles, or conduit <br/>
<a id="pl.175.7"></a><var>175.7</var>for telecommunications services.<br/>
<a id="pl.175.8"></a><var>175.8</var>(e) Materials exempt under this section may be purchased without imposing and <br/>
<a id="pl.175.9"></a><var>175.9</var>collecting the tax and without applying for a refund under section 297A.75, provided that:<br/>
<a id="pl.175.10"></a><var>175.10</var>(1) the purchaser employed not more than 80 full-time equivalent employees at <br/>
<a id="pl.175.11"></a><var>175.11</var>any time during calendar year 2013; and<br/>
<a id="pl.175.12"></a><var>175.12</var>(2) if another business owns at least 20 percent of the purchaser, then the sum of the <br/>
<a id="pl.175.13"></a><var>175.13</var>number of full-time equivalent employees employed by the purchaser and the number <br/>
<a id="pl.175.14"></a><var>175.14</var>of full-time equivalent employees employed by any other business that owns at least 20 <br/>
<a id="pl.175.15"></a><var>175.15</var>percent of the purchaser's business is not more than 80 full-time equivalent employees <br/>
<a id="pl.175.16"></a><var>175.16</var>during calendar year 2013. This clause must be applied for each business that owns at <br/>
<a id="pl.175.17"></a><var>175.17</var>least 20 percent of the purchaser.<br/>
<a id="pl.175.18"></a><var>175.18</var>(f) For the state's fiscal year 2016 and thereafter, all purchases exempt under this <br/>
<a id="pl.175.19"></a><var>175.19</var>section may be purchased without imposing and collecting the tax and without applying <br/>
<a id="pl.175.20"></a><var>175.20</var>for a refund under section 297A.75.<br/>
<a id="pl.175.21"></a><var>175.21</var><b>EFFECTIVE DATE.</b>Paragraph (e) is effective for sales and purchases made <br/>
<a id="pl.175.22"></a><var>175.22</var>after June 30, 2014, and through June 30, 2015. Paragraph (f) is effective for sales and <br/>
<a id="pl.175.23"></a><var>175.23</var>purchases made after June 30, 2015.<br/>
<br/>
<a id="bill.7.30.0"></a><a id="pl.175.24"></a><var>175.24</var>    Sec. 30. Minnesota Statutes 2012, section 297A.68, subdivision 10, is amended to read:<br/>
<a id="pl.175.25"></a><var>175.25</var>    Subd. 10. <b>Publications; publication materials.</b> Tangible personal property that <br/>
<a id="pl.175.26"></a><var>175.26</var>is used or consumed in producing any publication regularly issued at average intervals <br/>
<a id="pl.175.27"></a><var>175.27</var>not exceeding three months is exempt, and any such publication is exempt. "Publication" <br/>
<a id="pl.175.28"></a><var>175.28</var>includes, but is not limited to, a qualified newspaper as defined by section 
         <statute_ref>331A.02</statute_ref>, <br/>
<a id="pl.175.29"></a><var>175.29</var>together with any supplements or enclosures. "Publication" does not include magazines <br/>
<a id="pl.175.30"></a><var>175.30</var>and periodicals, whether  sold over the counter or by subscription. Tangible personal <br/>
<a id="pl.175.31"></a><var>175.31</var>property that is used or consumed in producing a publication does not include machinery, <br/>
<a id="pl.175.32"></a><var>175.32</var>equipment, implements, tools, accessories, appliances, contrivances, furniture, and fixtures <br/>
<a id="pl.175.33"></a><var>175.33</var>used in the publication, or fuel, electricity, gas, or steam used for space heating or lighting.<br/>
<a id="pl.175.34"></a><var>175.34</var>Advertising contained in a publication is a nontaxable service and is exempt. <br/>
<a id="pl.175.35"></a><var>175.35</var>Persons who publish or sell newspapers are engaging in a nontaxable service with <br/>
<a id="pl.176.1"></a><var>176.1</var>respect to gross receipts realized from such news-gathering or news-publishing activities, <br/>
<a id="pl.176.2"></a><var>176.2</var>including the sale of advertising.<br/>
<a id="pl.176.3"></a><var>176.3</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.176.4"></a><var>176.4</var>June 30, 2013.<br/>
<br/>
<a id="bill.7.31.0"></a><a id="pl.176.5"></a><var>176.5</var>    Sec. 31. Minnesota Statutes 2012, section 297A.68, subdivision 42, is amended to read:<br/>
<a id="pl.176.6"></a><var>176.6</var>    Subd. 42. <b>Qualified data centers.</b> (a) Purchases of enterprise information <br/>
<a id="pl.176.7"></a><var>176.7</var>technology equipment and computer software for use in a qualified data center are exempt. <br/>
<a id="pl.176.8"></a><var>176.8</var>The tax on purchases exempt under this paragraph must be imposed and collected as if the <br/>
<a id="pl.176.9"></a><var>176.9</var>rate under section 
         <statute_ref>297A.62, subdivision 1</statute_ref>, applied, and then refunded after June 30, 2013, <br/>
<a id="pl.176.10"></a><var>176.10</var>in the manner provided in section 
         <statute_ref>297A.75</statute_ref>. This exemption includes enterprise information <br/>
<a id="pl.176.11"></a><var>176.11</var>technology equipment and computer software purchased to replace or upgrade enterprise <br/>
<a id="pl.176.12"></a><var>176.12</var>information technology equipment and computer software in a qualified data center.<br/>
<a id="pl.176.13"></a><var>176.13</var>(b) Electricity used or consumed in the operation of a qualified data center is exempt.<br/>
<a id="pl.176.14"></a><var>176.14</var>(c) For purposes of this subdivision, "qualified data center" means a facility in <br/>
<a id="pl.176.15"></a><var>176.15</var>Minnesota:<br/>
<a id="pl.176.16"></a><var>176.16</var>(1) that is comprised of one or more buildings that consist in the aggregate of at least <br/>
<a id="pl.176.17"></a><var>176.17</var>30,000 25,000 square feet, and that are located on a single parcel or on contiguous parcels, <br/>
<a id="pl.176.18"></a><var>176.18</var>where the total cost of construction or refurbishment, investment in enterprise information <br/>
<a id="pl.176.19"></a><var>176.19</var>technology equipment, and computer software is at least $50,000,000 $20,000,000 within <br/>
<a id="pl.176.20"></a><var>176.20</var>a 24-month period;<br/>
<a id="pl.176.21"></a><var>176.21</var>(2) that is constructed or substantially refurbished after June 30, 2012, where <br/>
<a id="pl.176.22"></a><var>176.22</var>"substantially refurbished" means that at least 30,000 25,000 square feet have been rebuilt <br/>
<a id="pl.176.23"></a><var>176.23</var>or modified; and, including:<br/>
<a id="pl.176.24"></a><var>176.24</var>(i) installation of enterprise information technology equipment, environmental <br/>
<a id="pl.176.25"></a><var>176.25</var>control, and energy efficiency improvements; and<br/>
<a id="pl.176.26"></a><var>176.26</var>(ii) building improvements; and<br/>
<a id="pl.176.27"></a><var>176.27</var>(3) that is used to house enterprise information technology equipment, where the <br/>
<a id="pl.176.28"></a><var>176.28</var>facility has the following characteristics:<br/>
<a id="pl.176.29"></a><var>176.29</var>(i) uninterruptible power supplies, generator backup power, or both;<br/>
<a id="pl.176.30"></a><var>176.30</var>(ii) sophisticated fire suppression and prevention systems; and<br/>
<a id="pl.176.31"></a><var>176.31</var>(iii) enhanced security. A facility will be considered to have enhanced security if it <br/>
<a id="pl.176.32"></a><var>176.32</var>has restricted access to the facility to selected personnel; permanent security guards; video <br/>
<a id="pl.176.33"></a><var>176.33</var>camera surveillance; an electronic system requiring pass codes, keycards, or biometric <br/>
<a id="pl.176.34"></a><var>176.34</var>scans, such as hand scans and retinal or fingerprint recognition; or similar security features.<br/>
<a id="pl.177.1"></a><var>177.1</var>In determining whether the facility has the required square footage, the square <br/>
<a id="pl.177.2"></a><var>177.2</var>footage of the following spaces shall be included if the spaces support the operation <br/>
<a id="pl.177.3"></a><var>177.3</var>of enterprise information technology equipment: office space, meeting space, and <br/>
<a id="pl.177.4"></a><var>177.4</var>mechanical and other support facilities. For purposes of this subdivision, "computer <br/>
<a id="pl.177.5"></a><var>177.5</var>software" includes, but is not limited to, software utilized or loaded at the qualified data <br/>
<a id="pl.177.6"></a><var>177.6</var>center, including maintenance, licensing, and software customization.<br/>
<a id="pl.177.7"></a><var>177.7</var>(d) For purposes of this subdivision, "enterprise information technology equipment" <br/>
<a id="pl.177.8"></a><var>177.8</var>means computers and equipment supporting computing, networking, or data storage, <br/>
<a id="pl.177.9"></a><var>177.9</var>including servers and routers. It includes, but is not limited to: cooling systems, <br/>
<a id="pl.177.10"></a><var>177.10</var>cooling towers, and other temperature control infrastructure; power infrastructure for <br/>
<a id="pl.177.11"></a><var>177.11</var>transformation, distribution, or management of electricity used for the maintenance <br/>
<a id="pl.177.12"></a><var>177.12</var>and operation of a qualified data center, including but not limited to exterior dedicated <br/>
<a id="pl.177.13"></a><var>177.13</var>business-owned substations, backup power generation systems, battery systems, and <br/>
<a id="pl.177.14"></a><var>177.14</var>related infrastructure; and racking systems, cabling, and trays, which are necessary for <br/>
<a id="pl.177.15"></a><var>177.15</var>the maintenance and operation of the qualified data center.<br/>
<a id="pl.177.16"></a><var>177.16</var>(e) A qualified data center may claim the exemptions in this subdivision for <br/>
<a id="pl.177.17"></a><var>177.17</var>purchases made either within 20 years of the date of its first purchase qualifying for the <br/>
<a id="pl.177.18"></a><var>177.18</var>exemption under paragraph (a), or by June 30, 2042, whichever is earlier.<br/>
<a id="pl.177.19"></a><var>177.19</var>(f) The purpose of this exemption is to create jobs in the construction and data <br/>
<a id="pl.177.20"></a><var>177.20</var>center industries.<br/>
<a id="pl.177.21"></a><var>177.21</var>(g) This subdivision is effective for sales and purchases made after June 30, 2012, <br/>
<a id="pl.177.22"></a><var>177.22</var>and before July 1, 2042.<br/>
<a id="pl.177.23"></a><var>177.23</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.177.24"></a><var>177.24</var>June 30, 2013.<br/>
<br/>
<a id="bill.7.32.0"></a><a id="pl.177.25"></a><var>177.25</var>    Sec. 32. Minnesota Statutes 2012, section 297A.68, is amended by adding a <br/>
<a id="pl.177.26"></a><var>177.26</var>subdivision to read:<br/>
<a id="pl.177.27"></a><var>177.27</var>    Subd. 49. <b>Greater Minnesota business expansions.</b> (a) Purchases and use of <br/>
<a id="pl.177.28"></a><var>177.28</var>tangible personal property or taxable services by a qualified business, as defined in section <br/>
<a id="pl.177.29"></a><var>177.29</var>116J.3738, are exempt if:<br/>
<a id="pl.177.30"></a><var>177.30</var>(1) the business subsidy agreement provides that the exemption under this <br/>
<a id="pl.177.31"></a><var>177.31</var>subdivision applies;<br/>
<a id="pl.177.32"></a><var>177.32</var>(2) the property or services are primarily used or consumed in greater Minnesota; and<br/>
<a id="pl.177.33"></a><var>177.33</var>(3) the purchase was made and delivery received during the duration of the <br/>
<a id="pl.177.34"></a><var>177.34</var>certification of the business as a qualified business under section 116J.3738.<br/>
<a id="pl.178.1"></a><var>178.1</var>(b) Purchase and use of construction materials and supplies used or consumed in, <br/>
<a id="pl.178.2"></a><var>178.2</var>and equipment incorporated into, the construction of improvements to real property in <br/>
<a id="pl.178.3"></a><var>178.3</var>greater Minnesota are exempt if the improvements after completion of construction are <br/>
<a id="pl.178.4"></a><var>178.4</var>to be used in the conduct of the trade or business of the qualified business, as defined in <br/>
<a id="pl.178.5"></a><var>178.5</var>section 116J.3738. This exemption applies regardless of whether the purchases are made <br/>
<a id="pl.178.6"></a><var>178.6</var>by the business or a contractor.<br/>
<a id="pl.178.7"></a><var>178.7</var>(c) The exemptions under this subdivision apply to a local sales and use tax.<br/>
<a id="pl.178.8"></a><var>178.8</var>(d) Subject to the limitations in paragraph (c), a qualifying business may claim an <br/>
<a id="pl.178.9"></a><var>178.9</var>exemption under this subdivision in an amount up to $15,000.<br/>
<a id="pl.178.10"></a><var>178.10</var>(e) The tax on purchases imposed under this subdivision must be imposed and <br/>
<a id="pl.178.11"></a><var>178.11</var>collected as if the rate under section 297A.62, subdivision 1, applied, and then refunded <br/>
<a id="pl.178.12"></a><var>178.12</var>in the manner provided in section 297A.75. No more than $1,000,000 may be refunded <br/>
<a id="pl.178.13"></a><var>178.13</var>in a fiscal year for all purchases under this subdivision. Refunds must be allocated on a <br/>
<a id="pl.178.14"></a><var>178.14</var>first come, first served basis. Any portion of the balance of funds allocated for refunds <br/>
<a id="pl.178.15"></a><var>178.15</var>under this paragraph does not cancel and shall be carried forward to and available for <br/>
<a id="pl.178.16"></a><var>178.16</var>refunds in subsequent fiscal years.<br/>
<a id="pl.178.17"></a><var>178.17</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.178.18"></a><var>178.18</var>June 30, 2013.<br/>
<br/>
<a id="bill.7.33.0"></a><a id="pl.178.19"></a><var>178.19</var>    Sec. 33. Minnesota Statutes 2012, section 297A.70, subdivision 2, is amended to read:<br/>
<a id="pl.178.20"></a><var>178.20</var>    Subd. 2. <b>Sales to government.</b> (a) All sales, except those listed in paragraph (b), <br/>
<a id="pl.178.21"></a><var>178.21</var>to the following governments and political subdivisions, or to the listed agencies or <br/>
<a id="pl.178.22"></a><var>178.22</var>instrumentalities of governments and political subdivisions, are exempt:<br/>
<a id="pl.178.23"></a><var>178.23</var>(1) the United States and its agencies and instrumentalities;<br/>
<a id="pl.178.24"></a><var>178.24</var>(2) school districts, local governments, the University of Minnesota, state universities, <br/>
<a id="pl.178.25"></a><var>178.25</var>community colleges, technical colleges, state academies, the Perpich Minnesota Center for <br/>
<a id="pl.178.26"></a><var>178.26</var>Arts Education, and an instrumentality of a political subdivision that is accredited as an <br/>
<a id="pl.178.27"></a><var>178.27</var>optional/special function school by the North Central Association of Colleges and Schools;<br/>
<a id="pl.178.28"></a><var>178.28</var>(3) hospitals and nursing homes owned and operated by political subdivisions of <br/>
<a id="pl.178.29"></a><var>178.29</var>the state of tangible personal property and taxable services used at or by hospitals and <br/>
<a id="pl.178.30"></a><var>178.30</var>nursing homes;<br/>
<a id="pl.178.31"></a><var>178.31</var>(4) the Metropolitan Council, for its purchases of vehicles and repair parts to equip <br/>
<a id="pl.178.32"></a><var>178.32</var>operations provided for in section 
         <statute_ref>473.4051</statute_ref>;<br/>
<a id="pl.178.33"></a><var>178.33</var>(5) other states or political subdivisions of other states, if the sale would be exempt <br/>
<a id="pl.178.34"></a><var>178.34</var>from taxation if it occurred in that state; and<br/>
<a id="pl.179.1"></a><var>179.1</var>(6) public libraries, public library systems, multicounty, multitype library systems as <br/>
<a id="pl.179.2"></a><var>179.2</var>defined in section 
         <statute_ref>134.001</statute_ref>, county law libraries under chapter 134A, state agency libraries, <br/>
<a id="pl.179.3"></a><var>179.3</var>the state library under section 
         <statute_ref>480.09</statute_ref>, and the Legislative Reference Library; and.<br/>
<a id="pl.179.4"></a><var>179.4</var>(7) towns.<br/>
<a id="pl.179.5"></a><var>179.5</var>(b) This exemption does not apply to the sales of the following products and services:<br/>
<a id="pl.179.6"></a><var>179.6</var>(1) building, construction, or reconstruction materials purchased by a contractor <br/>
<a id="pl.179.7"></a><var>179.7</var>or a subcontractor as a part of a lump-sum contract or similar type of contract with a <br/>
<a id="pl.179.8"></a><var>179.8</var>guaranteed maximum price covering both labor and materials for use in the construction, <br/>
<a id="pl.179.9"></a><var>179.9</var>alteration, or repair of a building or facility;<br/>
<a id="pl.179.10"></a><var>179.10</var>(2) construction materials purchased by tax exempt entities or their contractors to <br/>
<a id="pl.179.11"></a><var>179.11</var>be used in constructing buildings or facilities which will not be used principally by the <br/>
<a id="pl.179.12"></a><var>179.12</var>tax exempt entities;<br/>
<a id="pl.179.13"></a><var>179.13</var>(3) the leasing of a motor vehicle as defined in section 
         <statute_ref>297B.01, subdivision 11</statute_ref>, <br/>
<a id="pl.179.14"></a><var>179.14</var>except for leases entered into by the United States or its agencies or instrumentalities;<br/>
<a id="pl.179.15"></a><var>179.15</var>(4) lodging as defined under section 
         <statute_ref>297A.61, subdivision 3</statute_ref>, paragraph (g), clause <br/>
<a id="pl.179.16"></a><var>179.16</var>(2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in section <br/>
<statute_ref><a id="pl.179.17"></a><var>179.17</var>297A.67, subdivision 2
         </statute_ref>, except for lodging, prepared food, candy, soft drinks, and alcoholic <br/>
<a id="pl.179.18"></a><var>179.18</var>beverages purchased directly by the United States or its agencies or instrumentalities; or<br/>
<a id="pl.179.19"></a><var>179.19</var>(5) goods or services purchased by a town local government as inputs to goods and <br/>
<a id="pl.179.20"></a><var>179.20</var>services that are generally provided by a private business and the purchases would be <br/>
<a id="pl.179.21"></a><var>179.21</var>taxable if made by a private business engaged in the same activity.<br/>
<a id="pl.179.22"></a><var>179.22</var>(c) As used in this subdivision, "school districts" means public school entities and <br/>
<a id="pl.179.23"></a><var>179.23</var>districts of every kind and nature organized under the laws of the state of Minnesota, and <br/>
<a id="pl.179.24"></a><var>179.24</var>any instrumentality of a school district, as defined in section 
         <statute_ref>471.59</statute_ref>.<br/>
<a id="pl.179.25"></a><var>179.25</var>(d) As used in this subdivision, "local governments" means cities, counties, and <br/>
<a id="pl.179.26"></a><var>179.26</var>townships.<br/>
<a id="pl.179.27"></a><var>179.27</var>(d) (e) As used in this subdivision, "goods or services generally provided by a private <br/>
<a id="pl.179.28"></a><var>179.28</var>business" include, but are not limited to, goods or services provided by liquor stores, gas <br/>
<a id="pl.179.29"></a><var>179.29</var>and electric utilities, golf courses, marinas, health and fitness centers, campgrounds, cafes, <br/>
<a id="pl.179.30"></a><var>179.30</var>and laundromats. "Goods or services generally provided by a private business" do not <br/>
<a id="pl.179.31"></a><var>179.31</var>include housing services, sewer and water services, wastewater treatment, ambulance and <br/>
<a id="pl.179.32"></a><var>179.32</var>other public safety services, correctional services, chore or homemaking services provided <br/>
<a id="pl.179.33"></a><var>179.33</var>to elderly or disabled individuals, or road and street maintenance or lighting.<br/>
<a id="pl.179.34"></a><var>179.34</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.179.35"></a><var>179.35</var>June 30, 2013.<br/>
<br/>
<a id="bill.7.34.0"></a><a id="pl.180.1"></a><var>180.1</var>    Sec. 34. Minnesota Statutes 2012, section 297A.70, subdivision 4, is amended to read:<br/>
<a id="pl.180.2"></a><var>180.2</var>    Subd. 4. <b>Sales to nonprofit groups.</b> (a) All sales, except those listed in paragraph <br/>
<a id="pl.180.3"></a><var>180.3</var>(b), to the following "nonprofit organizations" are exempt:<br/>
<a id="pl.180.4"></a><var>180.4</var>(1) a corporation, society, association, foundation, or institution organized and <br/>
<a id="pl.180.5"></a><var>180.5</var>operated exclusively for charitable, religious, or educational purposes if the item <br/>
<a id="pl.180.6"></a><var>180.6</var>purchased is used in the performance of charitable, religious, or educational functions; and<br/>
<a id="pl.180.7"></a><var>180.7</var>(2) any senior citizen group or association of groups that:<br/>
<a id="pl.180.8"></a><var>180.8</var>(i) in general limits membership to persons who are either age 55 or older, or <br/>
<a id="pl.180.9"></a><var>180.9</var>physically disabled;<br/>
<a id="pl.180.10"></a><var>180.10</var>(ii) is organized and operated exclusively for pleasure, recreation, and other <br/>
<a id="pl.180.11"></a><var>180.11</var>nonprofit purposes, not including housing, no part of the net earnings of which inures to <br/>
<a id="pl.180.12"></a><var>180.12</var>the benefit of any private shareholders; and<br/>
<a id="pl.180.13"></a><var>180.13</var>(iii) is an exempt organization under section 501(c) of the Internal Revenue Code.<br/>
<a id="pl.180.14"></a><var>180.14</var>For purposes of this subdivision, charitable purpose includes the maintenance of a <br/>
<a id="pl.180.15"></a><var>180.15</var>cemetery owned by a religious organization.<br/>
<a id="pl.180.16"></a><var>180.16</var>(b) This exemption does not apply to the following sales:<br/>
<a id="pl.180.17"></a><var>180.17</var>(1) building, construction, or reconstruction materials purchased by a contractor <br/>
<a id="pl.180.18"></a><var>180.18</var>or a subcontractor as a part of a lump-sum contract or similar type of contract with a <br/>
<a id="pl.180.19"></a><var>180.19</var>guaranteed maximum price covering both labor and materials for use in the construction, <br/>
<a id="pl.180.20"></a><var>180.20</var>alteration, or repair of a building or facility;<br/>
<a id="pl.180.21"></a><var>180.21</var>(2) construction materials purchased by tax-exempt entities or their contractors to <br/>
<a id="pl.180.22"></a><var>180.22</var>be used in constructing buildings or facilities that will not be used principally by the <br/>
<a id="pl.180.23"></a><var>180.23</var>tax-exempt entities; and<br/>
<a id="pl.180.24"></a><var>180.24</var>(3) lodging as defined under section 
         <statute_ref>297A.61, subdivision 3</statute_ref>, paragraph (g), clause <br/>
<a id="pl.180.25"></a><var>180.25</var>(2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in section <br/>
<statute_ref><a id="pl.180.26"></a><var>180.26</var>297A.67, subdivision 2
         </statute_ref>, except wine purchased by an established religious organization <br/>
<a id="pl.180.27"></a><var>180.27</var>for sacramental purposes or as allowed under subdivision 9a; and<br/>
<a id="pl.180.28"></a><var>180.28</var>(4) leasing of a motor vehicle as defined in section 
         <statute_ref>297B.01, subdivision 11</statute_ref>, except <br/>
<a id="pl.180.29"></a><var>180.29</var>as provided in paragraph (c).<br/>
<a id="pl.180.30"></a><var>180.30</var>(c) This exemption applies to the leasing of a motor vehicle as defined in section <br/>
<statute_ref><a id="pl.180.31"></a><var>180.31</var>297B.01, subdivision 11
         </statute_ref>, only if the vehicle is:<br/>
<a id="pl.180.32"></a><var>180.32</var>(1) a truck, as defined in section 
         <statute_ref>168.002</statute_ref>, a bus, as defined in section 
         <statute_ref>168.002</statute_ref>, or a <br/>
<a id="pl.180.33"></a><var>180.33</var>passenger automobile, as defined in section 
         <statute_ref>168.002</statute_ref>, if the automobile is designed and <br/>
<a id="pl.180.34"></a><var>180.34</var>used for carrying more than nine persons including the driver; and<br/>
<a id="pl.181.1"></a><var>181.1</var>(2) intended to be used primarily to transport tangible personal property or <br/>
<a id="pl.181.2"></a><var>181.2</var>individuals, other than employees, to whom the organization provides service in <br/>
<a id="pl.181.3"></a><var>181.3</var>performing its charitable, religious, or educational purpose.<br/>
<a id="pl.181.4"></a><var>181.4</var>(d) A limited liability company also qualifies for exemption under this subdivision if <br/>
<a id="pl.181.5"></a><var>181.5</var>(1) it consists of a sole member that would qualify for the exemption, and (2) the items <br/>
<a id="pl.181.6"></a><var>181.6</var>purchased qualify for the exemption.<br/>
<a id="pl.181.7"></a><var>181.7</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for sales and purchases <br/>
<a id="pl.181.8"></a><var>181.8</var>made after June 30, 2012.<br/>
<br/>
<a id="bill.7.35.0"></a><a id="pl.181.9"></a><var>181.9</var>    Sec. 35. Minnesota Statutes 2012, section 297A.70, subdivision 5, is amended to read:<br/>
<a id="pl.181.10"></a><var>181.10</var>    Subd. 5. <b>Veterans groups.</b> Sales to an organization of military service veterans or <br/>
<a id="pl.181.11"></a><var>181.11</var>an auxiliary unit of an organization of military service veterans are exempt if:<br/>
<a id="pl.181.12"></a><var>181.12</var>(1) the organization or auxiliary unit is organized within the state of Minnesota <br/>
<a id="pl.181.13"></a><var>181.13</var>and is exempt from federal taxation under section 501(c), clause (19), of the Internal <br/>
<a id="pl.181.14"></a><var>181.14</var>Revenue Code; and<br/>
<a id="pl.181.15"></a><var>181.15</var>(2) the tangible personal property is or services are for charitable, civic, educational, <br/>
<a id="pl.181.16"></a><var>181.16</var>or nonprofit uses and not for social, recreational, pleasure, or profit uses.<br/>
<a id="pl.181.17"></a><var>181.17</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.181.18"></a><var>181.18</var>June 30, 2013.<br/>
<br/>
<a id="bill.7.36.0"></a><a id="pl.181.19"></a><var>181.19</var>    Sec. 36. Minnesota Statutes 2012, section 297A.70, subdivision 7, is amended to read:<br/>
<a id="pl.181.20"></a><var>181.20</var>    Subd. 7. <b>Hospitals </b><b>and</b><b>,</b><b> outpatient surgical centers</b><b>, and critical access dental </b><br/>
<a id="pl.181.21"></a><var>181.21</var><b>providers</b><b>.</b> (a) Sales, except for those listed in paragraph (c) (d), to a hospital are exempt, <br/>
<a id="pl.181.22"></a><var>181.22</var>if the items purchased are used in providing hospital services. For purposes of this <br/>
<a id="pl.181.23"></a><var>181.23</var>subdivision, "hospital" means a hospital organized and operated for charitable purposes <br/>
<a id="pl.181.24"></a><var>181.24</var>within the meaning of section 501(c)(3) of the Internal Revenue Code, and licensed under <br/>
<a id="pl.181.25"></a><var>181.25</var>chapter 144 or by any other jurisdiction, and "hospital services" are services authorized or <br/>
<a id="pl.181.26"></a><var>181.26</var>required to be performed by a "hospital" under chapter 144.<br/>
<a id="pl.181.27"></a><var>181.27</var>    (b) Sales, except for those listed in paragraph (c) (d), to an outpatient surgical center <br/>
<a id="pl.181.28"></a><var>181.28</var>are exempt, if the items purchased are used in providing outpatient surgical services. For <br/>
<a id="pl.181.29"></a><var>181.29</var>purposes of this subdivision, "outpatient surgical center" means an outpatient surgical <br/>
<a id="pl.181.30"></a><var>181.30</var>center organized and operated for charitable purposes within the meaning of section <br/>
<a id="pl.181.31"></a><var>181.31</var>501(c)(3) of the Internal Revenue Code, and licensed under chapter 144 or by any other <br/>
<a id="pl.181.32"></a><var>181.32</var>jurisdiction. For the purposes of this subdivision, "outpatient surgical services" means: <br/>
<a id="pl.181.33"></a><var>181.33</var>(1) services authorized or required to be performed by an outpatient surgical center under <br/>
<a id="pl.182.1"></a><var>182.1</var>chapter 144; and (2) urgent care. For purposes of this subdivision, "urgent care" means <br/>
<a id="pl.182.2"></a><var>182.2</var>health services furnished to a person whose medical condition is sufficiently acute to <br/>
<a id="pl.182.3"></a><var>182.3</var>require treatment unavailable through, or inappropriate to be provided by, a clinic or <br/>
<a id="pl.182.4"></a><var>182.4</var>physician's office, but not so acute as to require treatment in a hospital emergency room.<br/>
<a id="pl.182.5"></a><var>182.5</var>    (c) Sales, except for those listed in paragraph (d), to a critical access dental provider <br/>
<a id="pl.182.6"></a><var>182.6</var>are exempt, if the items purchased are used in providing critical access dental care <br/>
<a id="pl.182.7"></a><var>182.7</var>services. For the purposes of this subdivision, "critical access dental provider" means <br/>
<a id="pl.182.8"></a><var>182.8</var>a dentist or dental clinic designated as a critical access dental provider under section <br/>
<a id="pl.182.9"></a><var>182.9</var>256B.76, subdivision 4, that serve only recipients of Minnesota health care programs.<br/>
<a id="pl.182.10"></a><var>182.10</var>    (d) This exemption does not apply to the following products and services:<br/>
<a id="pl.182.11"></a><var>182.11</var>    (1) purchases made by a clinic, physician's office, or any other medical facility not <br/>
<a id="pl.182.12"></a><var>182.12</var>operating as a hospital or, outpatient surgical center, or critical access dental provider, <br/>
<a id="pl.182.13"></a><var>182.13</var>even though the clinic, office, or facility may be owned and operated by a hospital or, <br/>
<a id="pl.182.14"></a><var>182.14</var> outpatient surgical center, or critical access dental provider;<br/>
<a id="pl.182.15"></a><var>182.15</var>    (2) sales under section 
         <statute_ref>297A.61, subdivision 3</statute_ref>, paragraph (g), clause (2), and <br/>
<a id="pl.182.16"></a><var>182.16</var>prepared food, candy, and soft drinks;<br/>
<a id="pl.182.17"></a><var>182.17</var>    (3) building and construction materials used in constructing buildings or facilities <br/>
<a id="pl.182.18"></a><var>182.18</var>that will not be used principally by the hospital or, outpatient surgical center, or critical <br/>
<a id="pl.182.19"></a><var>182.19</var>access dental provider;<br/>
<a id="pl.182.20"></a><var>182.20</var>    (4) building, construction, or reconstruction materials purchased by a contractor or a <br/>
<a id="pl.182.21"></a><var>182.21</var>subcontractor as a part of a lump-sum contract or similar type of contract with a guaranteed <br/>
<a id="pl.182.22"></a><var>182.22</var>maximum price covering both labor and materials for use in the construction, alteration, or <br/>
<a id="pl.182.23"></a><var>182.23</var>repair of a hospital or,  outpatient surgical center, or critical access dental provider; or<br/>
<a id="pl.182.24"></a><var>182.24</var>    (5) the leasing of a motor vehicle as defined in section 
         <statute_ref>297B.01, subdivision 11</statute_ref>.<br/>
<a id="pl.182.25"></a><var>182.25</var>    (d) (e) A limited liability company also qualifies for exemption under this <br/>
<a id="pl.182.26"></a><var>182.26</var>subdivision if (1) it consists of a sole member that would qualify for the exemption, and <br/>
<a id="pl.182.27"></a><var>182.27</var>(2) the items purchased qualify for the exemption.<br/>
<a id="pl.182.28"></a><var>182.28</var>    (e) (f) An entity that contains both a hospital and a nonprofit unit may claim this <br/>
<a id="pl.182.29"></a><var>182.29</var>exemption on purchases made for both the hospital and nonprofit unit provided that:<br/>
<a id="pl.182.30"></a><var>182.30</var>    (1) the nonprofit unit would have qualified for exemption under subdivision 4; and<br/>
<a id="pl.182.31"></a><var>182.31</var>    (2) the items purchased would have qualified for the exemption.<br/>
<a id="pl.182.32"></a><var>182.32</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for sales and purchases <br/>
<a id="pl.182.33"></a><var>182.33</var>made after June 30, 2007. Purchasers may apply for a refund of tax paid for qualifying <br/>
<a id="pl.182.34"></a><var>182.34</var>purchases under this subdivision made after June 30, 2007, and before July 1, 2013, in the <br/>
<a id="pl.182.35"></a><var>182.35</var>manner provided in Minnesota Statutes, section 297A.75.<br/>
<br/>
<a id="bill.7.37.0"></a><a id="pl.183.1"></a><var>183.1</var>    Sec. 37. Minnesota Statutes 2012, section 297A.70, is amended by adding a <br/>
<a id="pl.183.2"></a><var>183.2</var>subdivision to read:<br/>
<a id="pl.183.3"></a><var>183.3</var>    Subd. 9a. <b>Established religious orders.</b> Sales of lodging, prepared food, candy, <br/>
<a id="pl.183.4"></a><var>183.4</var>soft drinks, and alcoholic beverages at noncatered events between an established religious <br/>
<a id="pl.183.5"></a><var>183.5</var>order and an affiliated institution of higher education are exempt. For purposes of this <br/>
<a id="pl.183.6"></a><var>183.6</var>subdivision, an institution of higher education is "affiliated" with an established religious <br/>
<a id="pl.183.7"></a><var>183.7</var>order if members of the religious order are represented on the governing board of the <br/>
<a id="pl.183.8"></a><var>183.8</var>institution of higher education and the two organizations share campus space and common <br/>
<a id="pl.183.9"></a><var>183.9</var>facilities.<br/>
<a id="pl.183.10"></a><var>183.10</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for sales and purchases <br/>
<a id="pl.183.11"></a><var>183.11</var>made after June 30, 2012.<br/>
<br/>
<a id="bill.7.38.0"></a><a id="pl.183.12"></a><var>183.12</var>    Sec. 38. Minnesota Statutes 2012, section 297A.70, subdivision 13, is amended to read:<br/>
<a id="pl.183.13"></a><var>183.13</var>    Subd. 13. <b>Fund-raising sales by or for nonprofit groups.</b> (a) The following <br/>
<a id="pl.183.14"></a><var>183.14</var>sales by the specified organizations for fund-raising purposes are exempt, subject to the <br/>
<a id="pl.183.15"></a><var>183.15</var>limitations listed in paragraph (b):<br/>
<a id="pl.183.16"></a><var>183.16</var>(1) all sales made by a nonprofit organization that exists solely for the purpose of <br/>
<a id="pl.183.17"></a><var>183.17</var>providing educational or social activities for young people primarily age 18 and under;<br/>
<a id="pl.183.18"></a><var>183.18</var>(2) all sales made by an organization that is a senior citizen group or association of <br/>
<a id="pl.183.19"></a><var>183.19</var>groups if (i) in general it limits membership to persons age 55 or older; (ii) it is organized <br/>
<a id="pl.183.20"></a><var>183.20</var>and operated exclusively for pleasure, recreation, and other nonprofit purposes; and (iii) <br/>
<a id="pl.183.21"></a><var>183.21</var>no part of its net earnings inures to the benefit of any private shareholders;<br/>
<a id="pl.183.22"></a><var>183.22</var>(3) the sale or use of tickets or admissions to a golf tournament held in Minnesota if <br/>
<a id="pl.183.23"></a><var>183.23</var>the beneficiary of the tournament's net proceeds qualifies as a tax-exempt organization <br/>
<a id="pl.183.24"></a><var>183.24</var>under section 501(c)(3) of the Internal Revenue Code; and<br/>
<a id="pl.183.25"></a><var>183.25</var>(4) sales of candy sold for fund-raising purposes by a nonprofit organization that <br/>
<a id="pl.183.26"></a><var>183.26</var>provides educational and social activities primarily for young people age 18 and under.<br/>
<a id="pl.183.27"></a><var>183.27</var>(b) The exemptions listed in paragraph (a) are limited in the following manner:<br/>
<a id="pl.183.28"></a><var>183.28</var>(1) the exemption under paragraph (a), clauses (1) and (2), applies only if the gross <br/>
<a id="pl.183.29"></a><var>183.29</var>annual receipts of the organization from fund-raising do not exceed $10,000; and<br/>
<a id="pl.183.30"></a><var>183.30</var>(2) the exemption under paragraph (a), clause (1), does not apply if the sales are <br/>
<a id="pl.183.31"></a><var>183.31</var>derived from admission charges or from activities for which the money must be deposited <br/>
<a id="pl.183.32"></a><var>183.32</var>with the school district treasurer under section 
         <statute_ref>123B.49, subdivision 2</statute_ref>, or be recorded in <br/>
<a id="pl.183.33"></a><var>183.33</var>the same manner as other revenues or expenditures of the school district under section <br/>
<statute_ref><a id="pl.183.34"></a><var>183.34</var>123B.49, subdivision 4
         </statute_ref>.<br/>
<a id="pl.184.1"></a><var>184.1</var>(c) Sales of tangible personal property and services are exempt if the entire proceeds, <br/>
<a id="pl.184.2"></a><var>184.2</var>less the necessary expenses for obtaining the property or services, will be contributed to <br/>
<a id="pl.184.3"></a><var>184.3</var>a registered combined charitable organization described in section 
         <statute_ref>43A.50</statute_ref>, to be used <br/>
<a id="pl.184.4"></a><var>184.4</var>exclusively for charitable, religious, or educational purposes, and the registered combined <br/>
<a id="pl.184.5"></a><var>184.5</var>charitable organization has given its written permission for the sale. Sales that occur over <br/>
<a id="pl.184.6"></a><var>184.6</var>a period of more than 24 days per year are not exempt under this paragraph.<br/>
<a id="pl.184.7"></a><var>184.7</var>(d) For purposes of this subdivision, a club, association, or other organization of <br/>
<a id="pl.184.8"></a><var>184.8</var>elementary or secondary school students organized for the purpose of carrying on sports, <br/>
<a id="pl.184.9"></a><var>184.9</var>educational, or other extracurricular activities is a separate organization from the school <br/>
<a id="pl.184.10"></a><var>184.10</var>district or school for purposes of applying the $10,000 limit.<br/>
<a id="pl.184.11"></a><var>184.11</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.184.12"></a><var>184.12</var>June 30, 2013.<br/>
<br/>
<a id="bill.7.39.0"></a><a id="pl.184.13"></a><var>184.13</var>    Sec. 39. Minnesota Statutes 2012, section 297A.70, subdivision 14, is amended to read:<br/>
<a id="pl.184.14"></a><var>184.14</var>    Subd. 14. <b>Fund-raising events sponsored by nonprofit groups.</b> (a) Sales of <br/>
<a id="pl.184.15"></a><var>184.15</var>tangible personal property or services at, and admission charges for fund-raising events <br/>
<a id="pl.184.16"></a><var>184.16</var>sponsored by, a nonprofit organization are exempt if:<br/>
<a id="pl.184.17"></a><var>184.17</var>(1) all gross receipts are recorded as such, in accordance with generally accepted <br/>
<a id="pl.184.18"></a><var>184.18</var>accounting practices, on the books of the nonprofit organization; and<br/>
<a id="pl.184.19"></a><var>184.19</var>(2) the entire proceeds, less the necessary expenses for the event, will be used solely <br/>
<a id="pl.184.20"></a><var>184.20</var>and exclusively for charitable, religious, or educational purposes. Exempt sales include <br/>
<a id="pl.184.21"></a><var>184.21</var>the sale of prepared food, candy, and soft drinks at the fund-raising event.<br/>
<a id="pl.184.22"></a><var>184.22</var>(b) This exemption is limited in the following manner:<br/>
<a id="pl.184.23"></a><var>184.23</var>(1) it does not apply to admission charges for events involving bingo or other <br/>
<a id="pl.184.24"></a><var>184.24</var>gambling activities or to charges for use of amusement devices involving bingo or other <br/>
<a id="pl.184.25"></a><var>184.25</var>gambling activities;<br/>
<a id="pl.184.26"></a><var>184.26</var>(2) all gross receipts are taxable if the profits are not used solely and exclusively for <br/>
<a id="pl.184.27"></a><var>184.27</var>charitable, religious, or educational purposes;<br/>
<a id="pl.184.28"></a><var>184.28</var>(3) it does not apply unless the organization keeps a separate accounting record, <br/>
<a id="pl.184.29"></a><var>184.29</var>including receipts and disbursements from each fund-raising event that documents all <br/>
<a id="pl.184.30"></a><var>184.30</var>deductions from gross receipts with receipts and other records;<br/>
<a id="pl.184.31"></a><var>184.31</var>(4) it does not apply to any sale made by or in the name of a nonprofit corporation as <br/>
<a id="pl.184.32"></a><var>184.32</var>the active or passive agent of a person that is not a nonprofit corporation;<br/>
<a id="pl.184.33"></a><var>184.33</var>(5) all gross receipts are taxable if fund-raising events exceed 24 days per year;<br/>
<a id="pl.184.34"></a><var>184.34</var>(6) it does not apply to fund-raising events conducted on premises leased for more <br/>
<a id="pl.184.35"></a><var>184.35</var>than five days but less than 30 days; and<br/>
<a id="pl.185.1"></a><var>185.1</var>(7) it does not apply if the risk of the event is not borne by the nonprofit organization <br/>
<a id="pl.185.2"></a><var>185.2</var>and the benefit to the nonprofit organization is less than the total amount of the state and <br/>
<a id="pl.185.3"></a><var>185.3</var>local tax revenues forgone by this exemption.<br/>
<a id="pl.185.4"></a><var>185.4</var>(c) For purposes of this subdivision, a "nonprofit organization" means any unit of <br/>
<a id="pl.185.5"></a><var>185.5</var>government, corporation, society, association, foundation, or institution organized and <br/>
<a id="pl.185.6"></a><var>185.6</var>operated for charitable, religious, educational, civic, fraternal, and senior citizens' or <br/>
<a id="pl.185.7"></a><var>185.7</var>veterans' purposes, no part of the net earnings of which inures to the benefit of a private <br/>
<a id="pl.185.8"></a><var>185.8</var>individual.<br/>
<a id="pl.185.9"></a><var>185.9</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.185.10"></a><var>185.10</var>June 30, 2013.<br/>
<br/>
<a id="bill.7.40.0"></a><a id="pl.185.11"></a><var>185.11</var>    Sec. 40. Minnesota Statutes 2012, section 297A.70, is amended by adding a <br/>
<a id="pl.185.12"></a><var>185.12</var>subdivision to read:<br/>
<a id="pl.185.13"></a><var>185.13</var>    Subd. 18. <b>Nursing homes and boarding care homes.</b> (a) All sales, except those <br/>
<a id="pl.185.14"></a><var>185.14</var>listed in paragraph (b), to a nursing home licensed under section 144A.02 or a boarding <br/>
<a id="pl.185.15"></a><var>185.15</var>care home certified as a nursing facility under title 19 of the Social Security Act are <br/>
<a id="pl.185.16"></a><var>185.16</var>exempt if the facility:<br/>
<a id="pl.185.17"></a><var>185.17</var>(1) is exempt from federal income taxation pursuant to section 501(c)(3) of the <br/>
<a id="pl.185.18"></a><var>185.18</var>Internal Revenue Code; and<br/>
<a id="pl.185.19"></a><var>185.19</var>(2) is certified to participate in the medical assistance program under title 19 of the <br/>
<a id="pl.185.20"></a><var>185.20</var>Social Security Act, or certifies to the commissioner that it does not discharge residents <br/>
<a id="pl.185.21"></a><var>185.21</var>due to the inability to pay.<br/>
<a id="pl.185.22"></a><var>185.22</var>(b) This exemption does not apply to the following sales:<br/>
<a id="pl.185.23"></a><var>185.23</var>(1) building, construction, or reconstruction materials purchased by a contractor <br/>
<a id="pl.185.24"></a><var>185.24</var>or a subcontractor as a part of a lump-sum contract or similar type of contract with a <br/>
<a id="pl.185.25"></a><var>185.25</var>guaranteed maximum price covering both labor and materials for use in the construction, <br/>
<a id="pl.185.26"></a><var>185.26</var>alteration, or repair of a building or facility;<br/>
<a id="pl.185.27"></a><var>185.27</var>(2) construction materials purchased by tax-exempt entities or their contractors to <br/>
<a id="pl.185.28"></a><var>185.28</var>be used in constructing buildings or facilities that will not be used principally by the <br/>
<a id="pl.185.29"></a><var>185.29</var>tax-exempt entities;<br/>
<a id="pl.185.30"></a><var>185.30</var>(3) lodging as defined under section 
<statute_ref>297A.61, subdivision 3</statute_ref>, paragraph (g), clause <br/>
<a id="pl.185.31"></a><var>185.31</var>(2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in section <br/>
<a id="pl.185.32"></a><var>185.32</var><statute_ref>297A.67, subdivision 2</statute_ref>; and<br/>
<a id="pl.185.33"></a><var>185.33</var>(4) leasing of a motor vehicle as defined in section 
<statute_ref>297B.01, subdivision 11</statute_ref>, except <br/>
<a id="pl.185.34"></a><var>185.34</var>as provided in paragraph (c).<br/>
<a id="pl.186.1"></a><var>186.1</var>(c) This exemption applies to the leasing of a motor vehicle as defined in section <br/>
<a id="pl.186.2"></a><var>186.2</var><statute_ref>297B.01, subdivision 11</statute_ref>, only if the vehicle is:<br/>
<a id="pl.186.3"></a><var>186.3</var>(1) a truck, as defined in section 
<statute_ref>168.002</statute_ref>; a bus, as defined in section 
<statute_ref>168.002</statute_ref>; or a <br/>
<a id="pl.186.4"></a><var>186.4</var>passenger automobile, as defined in section 
<statute_ref>168.002</statute_ref>, if the automobile is designed and <br/>
<a id="pl.186.5"></a><var>186.5</var>used for carrying more than nine persons including the driver; and<br/>
<a id="pl.186.6"></a><var>186.6</var>(2) intended to be used primarily to transport tangible personal property or residents <br/>
<a id="pl.186.7"></a><var>186.7</var>of the nursing home or boarding care home.<br/>
<a id="pl.186.8"></a><var>186.8</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.186.9"></a><var>186.9</var>June 30, 2013.<br/>
<br/>
<a id="bill.7.41.0"></a><a id="pl.186.10"></a><var>186.10</var>    Sec. 41. Minnesota Statutes 2012, section 297A.71, is amended by adding a <br/>
<a id="pl.186.11"></a><var>186.11</var>subdivision to read:<br/>
<a id="pl.186.12"></a><var>186.12</var>    Subd. 45. <b>Biopharmaceutical manufacturing facility.</b> (a) Materials and <br/>
<a id="pl.186.13"></a><var>186.13</var>supplies used or consumed in, capital equipment incorporated into, and privately <br/>
<a id="pl.186.14"></a><var>186.14</var>owned infrastructure in support of the construction, improvement, or expansion of a <br/>
<a id="pl.186.15"></a><var>186.15</var>biopharmaceutical manufacturing facility in the state are exempt if the following criteria <br/>
<a id="pl.186.16"></a><var>186.16</var>are met:<br/>
<a id="pl.186.17"></a><var>186.17</var>(1) the facility is used for the manufacturing of biologics; <br/>
<a id="pl.186.18"></a><var>186.18</var>(2) the total capital investment made at the facility exceeds $50,000,000; and<br/>
<a id="pl.186.19"></a><var>186.19</var>(3) the facility creates and maintains at least 190 full-time equivalent positions at the <br/>
<a id="pl.186.20"></a><var>186.20</var>facility. These positions must be new jobs in Minnesota and not the result of relocating <br/>
<a id="pl.186.21"></a><var>186.21</var>jobs that currently exist in Minnesota.<br/>
<a id="pl.186.22"></a><var>186.22</var>(b) The tax must be imposed and collected as if the rate under section 297A.62, <br/>
<a id="pl.186.23"></a><var>186.23</var>subdivision 1, applied, and refunded in the manner provided in section 297A.75.<br/>
<a id="pl.186.24"></a><var>186.24</var>(c) To be eligible for a refund, the owner of the biopharmaceutical manufacturing <br/>
<a id="pl.186.25"></a><var>186.25</var>facility must:<br/>
<a id="pl.186.26"></a><var>186.26</var>(1) initially apply to the Department of Employment and Economic Development <br/>
<a id="pl.186.27"></a><var>186.27</var>for certification no later than one year from the final completion date of construction, <br/>
<a id="pl.186.28"></a><var>186.28</var>improvement, or expansion of the facility; and<br/>
<a id="pl.186.29"></a><var>186.29</var>(2) for each year that the owner of the biopharmaceutical manufacturing facility <br/>
<a id="pl.186.30"></a><var>186.30</var>applies for a refund, the owner must have received written certification from the <br/>
<a id="pl.186.31"></a><var>186.31</var>Department of Employment and Economic Development that the facility has met the <br/>
<a id="pl.186.32"></a><var>186.32</var>criteria of paragraph (a).<br/>
<a id="pl.186.33"></a><var>186.33</var>(d) The refund is to be paid annually at a rate of 25 percent of the total allowable <br/>
<a id="pl.186.34"></a><var>186.34</var>refund payable to date, with the commissioner making annual payments of the remaining <br/>
<a id="pl.186.35"></a><var>186.35</var>refund until all of the refund has been paid.<br/>
<a id="pl.187.1"></a><var>187.1</var>(e) For purposes of this subdivision, "biopharmaceutical" and "biologics" are <br/>
<a id="pl.187.2"></a><var>187.2</var>interchangeable and mean medical drugs or medicinal preparations produced using <br/>
<a id="pl.187.3"></a><var>187.3</var>technology that uses biological systems, living organisms or derivatives of living <br/>
<a id="pl.187.4"></a><var>187.4</var>organisms, to make or modify products or processes for specific use. The medical drugs or <br/>
<a id="pl.187.5"></a><var>187.5</var>medicinal preparations include but are not limited to proteins, antibodies, nucleic acids, <br/>
<a id="pl.187.6"></a><var>187.6</var>and vaccines.<br/>
<a id="pl.187.7"></a><var>187.7</var><b>EFFECTIVE DATE.</b>This section is effective retroactively to capital investments <br/>
<a id="pl.187.8"></a><var>187.8</var>made and jobs created after December 31, 2012, and effective retroactively for sales and <br/>
<a id="pl.187.9"></a><var>187.9</var>purchases made after December 31, 2012, and before July 1, 2019.<br/>
<br/>
<a id="bill.7.42.0"></a><a id="pl.187.10"></a><var>187.10</var>    Sec. 42. Minnesota Statutes 2012, section 297A.71, is amended by adding a <br/>
<a id="pl.187.11"></a><var>187.11</var>subdivision to read:<br/>
<a id="pl.187.12"></a><var>187.12</var>    Subd. 46. <b>Research and development facilities.</b> Materials and supplies used <br/>
<a id="pl.187.13"></a><var>187.13</var>or consumed in, and equipment incorporated into, the construction or improvement of <br/>
<a id="pl.187.14"></a><var>187.14</var>a research and development facility that has laboratory space of at least 400,000 square <br/>
<a id="pl.187.15"></a><var>187.15</var>feet and utilizes both high-intensity and low-intensity laboratories, provided that the <br/>
<a id="pl.187.16"></a><var>187.16</var>project has a total construction cost of at least $140,000,000 within a 24-month period. <br/>
<a id="pl.187.17"></a><var>187.17</var>The tax on purchases imposed under this subdivision must be imposed and collected as if <br/>
<a id="pl.187.18"></a><var>187.18</var>the rate under section 297A.62, subdivision 1, applied and then refunded in the manner <br/>
<a id="pl.187.19"></a><var>187.19</var>provided in section 297A.75.<br/>
<a id="pl.187.20"></a><var>187.20</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.187.21"></a><var>187.21</var>June 30, 2013, and before September 1, 2015.<br/>
<br/>
<a id="bill.7.43.0"></a><a id="pl.187.22"></a><var>187.22</var>    Sec. 43. Minnesota Statutes 2012, section 297A.71, is amended by adding a <br/>
<a id="pl.187.23"></a><var>187.23</var>subdivision to read:<br/>
<a id="pl.187.24"></a><var>187.24</var>    Subd. 47. <b>Industrial measurement manufacturing and controls facility.</b> (a) <br/>
<a id="pl.187.25"></a><var>187.25</var>Materials and supplies used or consumed in, capital equipment incorporated into, <br/>
<a id="pl.187.26"></a><var>187.26</var>fixtures installed in, and privately owned infrastructure in support of the construction, <br/>
<a id="pl.187.27"></a><var>187.27</var>improvement, or expansion of an industrial measurement manufacturing and controls <br/>
<a id="pl.187.28"></a><var>187.28</var>facility are exempt if:<br/>
<a id="pl.187.29"></a><var>187.29</var>(1) the total capital investment made at the facility is at least $60,000,000;<br/>
<a id="pl.187.30"></a><var>187.30</var>(2) the facility employs at least 250 full-time equivalent employees that are not <br/>
<a id="pl.187.31"></a><var>187.31</var>employees currently employed by the company in the state; and<br/>
<a id="pl.188.1"></a><var>188.1</var>(3) the Department of Employment and Economic Development determines that <br/>
<a id="pl.188.2"></a><var>188.2</var>the expansion, remodeling, or improvement of the facility has a significant impact on <br/>
<a id="pl.188.3"></a><var>188.3</var>the state economy.<br/>
<a id="pl.188.4"></a><var>188.4</var>(b) The tax must be imposed and collected as if the rate under section 297A.62, <br/>
<a id="pl.188.5"></a><var>188.5</var>subdivisions 1 and 1a, applied and refunded in the manner provided in section 297A.75, <br/>
<a id="pl.188.6"></a><var>188.6</var>only after the following criteria are met:<br/>
<a id="pl.188.7"></a><var>188.7</var>(1) a refund may not be issued until the owner of the facility has received <br/>
<a id="pl.188.8"></a><var>188.8</var>certification from the Department of Employment and Economic Development that the <br/>
<a id="pl.188.9"></a><var>188.9</var>company meets the requirements in paragraph (a); and<br/>
<a id="pl.188.10"></a><var>188.10</var>(2) to receive the refund, the owner of the industrial measurement manufacturing <br/>
<a id="pl.188.11"></a><var>188.11</var>and controls facility must initially apply to the Department of Employment and Economic <br/>
<a id="pl.188.12"></a><var>188.12</var>Development for certification no later than one year from the final completion date of <br/>
<a id="pl.188.13"></a><var>188.13</var>construction, improvement, or expansion of the industrial measurement manufacturing <br/>
<a id="pl.188.14"></a><var>188.14</var>and controls facility.<br/>
<a id="pl.188.15"></a><var>188.15</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.188.16"></a><var>188.16</var>June 30, 2013, and before December 31, 2015.<br/>
<br/>
<a id="bill.7.44.0"></a><a id="pl.188.17"></a><var>188.17</var>    Sec. 44. Minnesota Statutes 2012, section 297A.71, is amended by adding a <br/>
<a id="pl.188.18"></a><var>188.18</var>subdivision to read:<br/>
<a id="pl.188.19"></a><var>188.19</var>    Subd. 48. <b>Retail, hotel, amusement, and office construction project.</b> Materials <br/>
<a id="pl.188.20"></a><var>188.20</var>and supplies used or consumed in, and equipment incorporated into the construction or <br/>
<a id="pl.188.21"></a><var>188.21</var>improvement of buildings and infrastructure for retail, hotel, amusement, and office use <br/>
<a id="pl.188.22"></a><var>188.22</var>within a two square mile area with a capital investment of at least $250,000,000, are <br/>
<a id="pl.188.23"></a><var>188.23</var>exempt. The tax on purchases exempt under this provision must be imposed and collected <br/>
<a id="pl.188.24"></a><var>188.24</var>as if the rate under section 297A.62, subdivision 1, applied and then refunded in the <br/>
<a id="pl.188.25"></a><var>188.25</var>manner provided in section 297A.75. This subdivision expires June 30, 2023.<br/>
<a id="pl.188.26"></a><var>188.26</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.188.27"></a><var>188.27</var>June 30, 2014, and before July 1, 2024.<br/>
<br/>
<a id="bill.7.45.0"></a><a id="pl.188.28"></a><var>188.28</var>    Sec. 45. Minnesota Statutes 2012, section 297A.75, subdivision 1, is amended to read:<br/>
<a id="pl.188.29"></a><var>188.29</var>    Subdivision 1. <b>Tax collected.</b> The tax on the gross receipts from the sale of the <br/>
<a id="pl.188.30"></a><var>188.30</var>following exempt items must be imposed and collected as if the sale were taxable and the <br/>
<a id="pl.188.31"></a><var>188.31</var>rate under section 
         <statute_ref>297A.62, subdivision 1</statute_ref>, applied. The exempt items include:<br/>
<a id="pl.188.32"></a><var>188.32</var>    (1) capital equipment exempt under section 
<statute_ref>297A.68, subdivision 5</statute_ref>;<br/>
<a id="pl.189.1"></a><var>189.1</var>    (2) (1) building materials for an agricultural processing facility exempt under section <br/>
<statute_ref><a id="pl.189.2"></a><var>189.2</var>297A.71, subdivision 13
         </statute_ref>;<br/>
<a id="pl.189.3"></a><var>189.3</var>    (3) (2) building materials for mineral production facilities exempt under section <br/>
<statute_ref><a id="pl.189.4"></a><var>189.4</var>297A.71, subdivision 14
         </statute_ref>;<br/>
<a id="pl.189.5"></a><var>189.5</var>    (4) (3) building materials for correctional facilities under section 
         <statute_ref>297A.71, <br/>
<a id="pl.189.6"></a><var>189.6</var>subdivision 3
         </statute_ref>;<br/>
<a id="pl.189.7"></a><var>189.7</var>    (5) (4) building materials used in a residence for disabled veterans exempt under <br/>
<a id="pl.189.8"></a><var>189.8</var>section 
         <statute_ref>297A.71, subdivision 11</statute_ref>;<br/>
<a id="pl.189.9"></a><var>189.9</var>    (6) (5) elevators and building materials exempt under section 
         <statute_ref>297A.71, subdivision <br/>
<a id="pl.189.10"></a><var>189.10</var>12
         </statute_ref>;<br/>
<a id="pl.189.11"></a><var>189.11</var>    (7) (6) building materials for the Long Lake Conservation Center exempt under <br/>
<a id="pl.189.12"></a><var>189.12</var>section 
         <statute_ref>297A.71, subdivision 17</statute_ref>;<br/>
<a id="pl.189.13"></a><var>189.13</var>    (8) (7) materials and supplies for qualified low-income housing under section <br/>
<statute_ref><a id="pl.189.14"></a><var>189.14</var>297A.71, subdivision 23
         </statute_ref>;<br/>
<a id="pl.189.15"></a><var>189.15</var>    (9) (8) materials, supplies, and equipment for municipal electric utility facilities <br/>
<a id="pl.189.16"></a><var>189.16</var>under section 
         <statute_ref>297A.71, subdivision 35</statute_ref>;<br/>
<a id="pl.189.17"></a><var>189.17</var>    (10) (9) equipment and materials used for the generation, transmission, and <br/>
<a id="pl.189.18"></a><var>189.18</var>distribution of electrical energy and an aerial camera package exempt under section <br/>
<statute_ref><a id="pl.189.19"></a><var>189.19</var>297A.68
         </statute_ref>, subdivision 37;<br/>
<a id="pl.189.20"></a><var>189.20</var>    (11) (10) commuter rail vehicle and repair parts under section 
         <statute_ref>297A.70</statute_ref>, subdivision <br/>
<a id="pl.189.21"></a><var>189.21</var>3, paragraph (a), clause (10);<br/>
<a id="pl.189.22"></a><var>189.22</var>    (12) (11) materials, supplies, and equipment for construction or improvement of <br/>
<a id="pl.189.23"></a><var>189.23</var>projects and facilities under section 
         <statute_ref>297A.71, subdivision 40</statute_ref>;<br/>
<a id="pl.189.24"></a><var>189.24</var>(13) (12) materials, supplies, and equipment for construction or improvement of a <br/>
<a id="pl.189.25"></a><var>189.25</var>meat processing facility exempt under section 
         <statute_ref>297A.71, subdivision 41</statute_ref>;<br/>
<a id="pl.189.26"></a><var>189.26</var>(14) (13) materials, supplies, and equipment for construction, improvement, or <br/>
<a id="pl.189.27"></a><var>189.27</var>expansion of: <br/>
<a id="pl.189.28"></a><var>189.28</var>(i) an aerospace defense manufacturing facility exempt under section 
         <statute_ref>297A.71</statute_ref>, <br/>
<a id="pl.189.29"></a><var>189.29</var>subdivision 42;<br/>
<a id="pl.189.30"></a><var>189.30</var>(ii) a biopharmaceutical manufacturing facility exempt under section 297A.71, <br/>
<a id="pl.189.31"></a><var>189.31</var>subdivision 45;<br/>
<a id="pl.189.32"></a><var>189.32</var>(iii) a research and development facility exempt under section 297A.71, subdivision <br/>
<a id="pl.189.33"></a><var>189.33</var>4b;<br/>
<a id="pl.189.34"></a><var>189.34</var>(iv) an industrial measurement manufacturing and controls facility exempt under <br/>
<a id="pl.189.35"></a><var>189.35</var>section 297A.71, subdivision 47; and<br/>
<a id="pl.190.1"></a><var>190.1</var>(v) buildings and infrastructure for retail, hotel, amusement, and office facilities <br/>
<a id="pl.190.2"></a><var>190.2</var>exempt under section 297A.71, subdivision 48;<br/>
<a id="pl.190.3"></a><var>190.3</var>(15) (14) enterprise information technology equipment and computer software for <br/>
<a id="pl.190.4"></a><var>190.4</var>use in a qualified data center exempt under section 
         <statute_ref>297A.68, subdivision 42</statute_ref>; and<br/>
<a id="pl.190.5"></a><var>190.5</var>(16) (15) materials, supplies, and equipment for qualifying capital projects under <br/>
<a id="pl.190.6"></a><var>190.6</var>section 
         <statute_ref>297A.71, subdivision 44</statute_ref>;<br/>
<a id="pl.190.7"></a><var>190.7</var>(16) items purchased for use in providing critical access dental services exempt <br/>
<a id="pl.190.8"></a><var>190.8</var>under section 297A.70, subdivision 7, paragraph (c);<br/>
<a id="pl.190.9"></a><var>190.9</var>(17) items purchased in transactions covered under Medicare or Medicaid exempt <br/>
<a id="pl.190.10"></a><var>190.10</var>under section 297A.67, subdivision 7, paragraphs (b) and (c), and accessories and supplies <br/>
<a id="pl.190.11"></a><var>190.11</var>exempt under section 297A.67, subdivision 7a; and<br/>
<a id="pl.190.12"></a><var>190.12</var>(18) items and services purchased under a business subsidy agreement for use or <br/>
<a id="pl.190.13"></a><var>190.13</var>consumption primarily in greater Minnesota exempt under section 297A.68, subdivision 49.<br/>
<a id="pl.190.14"></a><var>190.14</var><b>EFFECTIVE DATE.</b>The change to clause (1) is effective for sales and purchases <br/>
<a id="pl.190.15"></a><var>190.15</var>made after June 30, 2015. The changes in clauses (13), (16), and (17), are effective the <br/>
<a id="pl.190.16"></a><var>190.16</var>day following final enactment.<br/>
<br/>
<a id="bill.7.46.0"></a><a id="pl.190.17"></a><var>190.17</var>    Sec. 46. Minnesota Statutes 2012, section 297A.75, subdivision 2, is amended to read:<br/>
<a id="pl.190.18"></a><var>190.18</var>    Subd. 2. <b>Refund; eligible persons.</b> Upon application on forms prescribed by the <br/>
<a id="pl.190.19"></a><var>190.19</var>commissioner, a refund equal to the tax paid on the gross receipts of the exempt items <br/>
<a id="pl.190.20"></a><var>190.20</var>must be paid to the applicant. Only the following persons may apply for the refund:<br/>
<a id="pl.190.21"></a><var>190.21</var>    (1) for subdivision 1, clauses (1) to (3) (2), (16), and (17), the applicant must be <br/>
<a id="pl.190.22"></a><var>190.22</var>the purchaser;<br/>
<a id="pl.190.23"></a><var>190.23</var>    (2) for subdivision 1, clauses (4) (3) and (7) (6), the applicant must be the <br/>
<a id="pl.190.24"></a><var>190.24</var>governmental subdivision;<br/>
<a id="pl.190.25"></a><var>190.25</var>    (3) for subdivision 1, clause (5) (4), the applicant must be the recipient of the <br/>
<a id="pl.190.26"></a><var>190.26</var>benefits provided in United States Code, title 38, chapter 21;<br/>
<a id="pl.190.27"></a><var>190.27</var>    (4) for subdivision 1, clause (6) (5), the applicant must be the owner of the <br/>
<a id="pl.190.28"></a><var>190.28</var>homestead property;<br/>
<a id="pl.190.29"></a><var>190.29</var>    (5) for subdivision 1, clause (8) (7), the owner of the qualified low-income housing <br/>
<a id="pl.190.30"></a><var>190.30</var>project;<br/>
<a id="pl.190.31"></a><var>190.31</var>    (6) for subdivision 1, clause (9) (8), the applicant must be a municipal electric utility <br/>
<a id="pl.190.32"></a><var>190.32</var>or a joint venture of municipal electric utilities;<br/>
<a id="pl.190.33"></a><var>190.33</var>    (7) for subdivision 1, clauses (10), (9), (12), (13), (14), and (15) and (18), the owner <br/>
<a id="pl.190.34"></a><var>190.34</var>of the qualifying business; and<br/>
<a id="pl.191.1"></a><var>191.1</var>    (8) for subdivision 1, clauses (10), (11), (12), and (16) (15), the applicant must be <br/>
<a id="pl.191.2"></a><var>191.2</var>the governmental entity that owns or contracts for the project or facility.<br/>
<a id="pl.191.3"></a><var>191.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.47.0"></a><a id="pl.191.4"></a><var>191.4</var>    Sec. 47. Minnesota Statutes 2012, section 297A.75, subdivision 3, is amended to read:<br/>
<a id="pl.191.5"></a><var>191.5</var>    Subd. 3. <b>Application.</b> (a) The application must include sufficient information <br/>
<a id="pl.191.6"></a><var>191.6</var>to permit the commissioner to verify the tax paid. If the tax was paid by a contractor, <br/>
<a id="pl.191.7"></a><var>191.7</var>subcontractor, or builder, under subdivision 1, clause (3), (4), (5), (6), (7), (8), (9), (10), <br/>
<a id="pl.191.8"></a><var>191.8</var>(11), (12), (13), (14), (15), or (16) (18), the contractor, subcontractor, or builder must <br/>
<a id="pl.191.9"></a><var>191.9</var>furnish to the refund applicant a statement including the cost of the exempt items and the <br/>
<a id="pl.191.10"></a><var>191.10</var>taxes paid on the items unless otherwise specifically provided by this subdivision. The <br/>
<a id="pl.191.11"></a><var>191.11</var>provisions of sections 
         <statute_ref>289A.40</statute_ref> and 
         <statute_ref>289A.50</statute_ref> apply to refunds under this section.<br/>
<a id="pl.191.12"></a><var>191.12</var>    (b) An applicant may not file more than two applications per calendar year for <br/>
<a id="pl.191.13"></a><var>191.13</var>refunds for taxes paid on capital equipment exempt under section 
         <statute_ref>297A.68, subdivision 5</statute_ref>.<br/>
<a id="pl.191.14"></a><var>191.14</var>    (c) Total refunds for purchases of items in section 
         <statute_ref>297A.71, subdivision 40</statute_ref>, must not <br/>
<a id="pl.191.15"></a><var>191.15</var>exceed $5,000,000 in fiscal years 2010 and 2011. Applications for refunds for purchases <br/>
<a id="pl.191.16"></a><var>191.16</var>of items in sections 
         <statute_ref>297A.70, subdivision 3</statute_ref>, paragraph (a), clause (11), and 
         <statute_ref>297A.71</statute_ref>, <br/>
<a id="pl.191.17"></a><var>191.17</var>subdivision 40, must not be filed until after June 30, 2009.<br/>
<a id="pl.191.18"></a><var>191.18</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.191.19"></a><var>191.19</var>June 30, 2015.<br/>
<br/>
<a id="bill.7.48.0"></a><a id="pl.191.20"></a><var>191.20</var>    Sec. 48. Minnesota Statutes 2012, section 297A.815, subdivision 3, is amended to read:<br/>
<a id="pl.191.21"></a><var>191.21</var>    Subd. 3. <b>Motor vehicle lease sales tax revenue.</b> (a) For purposes of this <br/>
<a id="pl.191.22"></a><var>191.22</var>subdivision, "net revenue" means an amount equal to:<br/>
<a id="pl.191.23"></a><var>191.23</var>    (1) the revenues, including interest and penalties, that would have been collected <br/>
<a id="pl.191.24"></a><var>191.24</var>under this section, during the fiscal year if the rate had been 6.875 percent; less<br/>
<a id="pl.191.25"></a><var>191.25</var>    (2) in fiscal year 2011, $30,100,000; in fiscal year 2012, $31,100,000; and in fiscal <br/>
<a id="pl.191.26"></a><var>191.26</var>year 2013 and following fiscal years, $32,000,000.<br/>
<a id="pl.191.27"></a><var>191.27</var>    (b) On or before June 30 of each fiscal year, the commissioner of revenue shall <br/>
<a id="pl.191.28"></a><var>191.28</var>estimate the amount of the revenues and subtraction under paragraph (a) for the current <br/>
<a id="pl.191.29"></a><var>191.29</var>fiscal year.<br/>
<a id="pl.191.30"></a><var>191.30</var>    (c) On or after July 1 of the subsequent fiscal year, the commissioner of management <br/>
<a id="pl.191.31"></a><var>191.31</var>and budget shall transfer the net revenue as estimated in paragraph (b) from the general <br/>
<a id="pl.191.32"></a><var>191.32</var>fund, as follows:<br/>
<a id="pl.191.33"></a><var>191.33</var>    (1) 50 percent to the greater Minnesota transit account; and<br/>
<a id="pl.192.1"></a><var>192.1</var>    (2) 50 percent to the county state-aid highway fund. Notwithstanding any other law <br/>
<a id="pl.192.2"></a><var>192.2</var>to the contrary, the commissioner of transportation shall allocate the funds transferred <br/>
<a id="pl.192.3"></a><var>192.3</var>under this clause to the counties in the metropolitan area, as defined in section 
         <statute_ref>473.121</statute_ref>, <br/>
<a id="pl.192.4"></a><var>192.4</var>subdivision 4, excluding the counties of Hennepin and Ramsey, so that each county shall <br/>
<a id="pl.192.5"></a><var>192.5</var>receive of such amount the percentage that its population, as defined in section 
         <statute_ref>477A.011</statute_ref>, <br/>
<a id="pl.192.6"></a><var>192.6</var>subdivision 3, estimated or established by July 15 of the year prior to the current calendar <br/>
<a id="pl.192.7"></a><var>192.7</var>year, bears to the total population of the counties receiving funds under this clause.<br/>
<a id="pl.192.8"></a><var>192.8</var>    (d) For fiscal years 2010 and 2011, the amount under paragraph (a), clause (1), must <br/>
<a id="pl.192.9"></a><var>192.9</var>be calculated using the following percentages of the total revenues:<br/>
<a id="pl.192.10"></a><var>192.10</var>    (1) for fiscal year 2010, 83.75 percent; and<br/>
<a id="pl.192.11"></a><var>192.11</var>    (2) for fiscal year 2011, 93.75 percent.<br/>
<a id="pl.192.12"></a><var>192.12</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.192.13"></a><var>192.13</var>June 30, 2013.<br/>
<br/>
<a id="bill.7.49.0"></a><a id="pl.192.14"></a><var>192.14</var>    Sec. 49. Minnesota Statutes 2012, section 297A.99, subdivision 1, is amended to read:<br/>
<a id="pl.192.15"></a><var>192.15</var>    Subdivision 1. <b>Authorization; scope.</b> (a) A political subdivision of this state may <br/>
<a id="pl.192.16"></a><var>192.16</var>impose a general sales tax (1) under section 
         <statute_ref>297A.992</statute_ref>, (2) under section 
         <statute_ref>297A.993</statute_ref>, (3) if <br/>
<a id="pl.192.17"></a><var>192.17</var>permitted by special law, or (4) if the political subdivision enacted and imposed the tax <br/>
<a id="pl.192.18"></a><var>192.18</var>before January 1, 1982, and its predecessor provision.<br/>
<a id="pl.192.19"></a><var>192.19</var>    (b) This section governs the imposition of a general sales tax by the political <br/>
<a id="pl.192.20"></a><var>192.20</var>subdivision. The provisions of this section preempt the provisions of any special law:<br/>
<a id="pl.192.21"></a><var>192.21</var>    (1) enacted before June 2, 1997, or<br/>
<a id="pl.192.22"></a><var>192.22</var>    (2) enacted on or after June 2, 1997, that does not explicitly exempt the special law <br/>
<a id="pl.192.23"></a><var>192.23</var>provision from this section's rules by reference.<br/>
<a id="pl.192.24"></a><var>192.24</var>    (c) This section does not apply to or preempt a sales tax on motor vehicles or a <br/>
<a id="pl.192.25"></a><var>192.25</var>special excise tax on motor vehicles.<br/>
<a id="pl.192.26"></a><var>192.26</var>(d) A political subdivision may not advertise or expend funds for the promotion of a <br/>
<a id="pl.192.27"></a><var>192.27</var>referendum to support imposing a local option sales tax. <br/>
<a id="pl.192.28"></a><var>192.28</var>(e) Notwithstanding paragraph (d), a political subdivision may only expend funds to: <br/>
<a id="pl.192.29"></a><var>192.29</var>(1) conduct the referendum.;<br/>
<a id="pl.192.30"></a><var>192.30</var>(2) disseminate information included in the resolution adopted under subdivision 2;<br/>
<a id="pl.192.31"></a><var>192.31</var>(3) provide notice of, and conduct public forums at which proponents and opponents <br/>
<a id="pl.192.32"></a><var>192.32</var>on the merits of the referendum are given equal time to express their opinions on the <br/>
<a id="pl.192.33"></a><var>192.33</var>merits of the referendum;<br/>
<a id="pl.192.34"></a><var>192.34</var>(4) provide facts and data on the impact of the proposed sales tax on consumer <br/>
<a id="pl.192.35"></a><var>192.35</var>purchases; and<br/>
<a id="pl.193.1"></a><var>193.1</var>(5) provide facts and data related to the programs and projects to be funded with <br/>
<a id="pl.193.2"></a><var>193.2</var>the sales tax.<br/>
<a id="pl.193.3"></a><var>193.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.50.0"></a><a id="pl.193.4"></a><var>193.4</var>    Sec. 50. Laws 1993, chapter 375, article 9, section 46, subdivision 2, as amended by <br/>
<a id="pl.193.5"></a><var>193.5</var>Laws 1997, chapter 231, article 7, section 40, Laws 1998, chapter 389, article 8, section <br/>
<a id="pl.193.6"></a><var>193.6</var>30, Laws 2003, First Special Session chapter 21, article 8, section 13, Laws 2005, First <br/>
<a id="pl.193.7"></a><var>193.7</var>Special Session chapter 3, article 5, section 26, and Laws 2009, chapter 88, article 4, <br/>
<a id="pl.193.8"></a><var>193.8</var>section 15, is amended to read:<br/>
<a id="pl.193.9"></a><var>193.9</var>    Subd. 2. <b>Use of revenues.</b> Revenues received from the tax authorized by subdivision <br/>
<a id="pl.193.10"></a><var>193.10</var>1 may only be used by the city to pay the cost of collecting the tax, and, except as provided in <br/>
<a id="pl.193.11"></a><var>193.11</var>paragraph (e), to pay for the following projects or to secure or pay any principal, premium, <br/>
<a id="pl.193.12"></a><var>193.12</var>or interest on bonds issued in accordance with subdivision 3 for the following projects.<br/>
<a id="pl.193.13"></a><var>193.13</var>    (a) To pay all or a portion of the capital expenses of construction, equipment and <br/>
<a id="pl.193.14"></a><var>193.14</var>acquisition costs for the expansion and remodeling of the St. Paul Civic Center complex, <br/>
<a id="pl.193.15"></a><var>193.15</var>including the demolition of the existing arena and the construction and equipping of a <br/>
<a id="pl.193.16"></a><var>193.16</var>new arena.<br/>
<a id="pl.193.17"></a><var>193.17</var>    (b) Except as provided in paragraphs (e) and (f), the remainder of the funds must be <br/>
<a id="pl.193.18"></a><var>193.18</var>spent for:<br/>
<a id="pl.193.19"></a><var>193.19</var>    (1) capital projects to further residential, cultural, commercial, and economic <br/>
<a id="pl.193.20"></a><var>193.20</var>development in both downtown St. Paul and St. Paul neighborhoods; and<br/>
<a id="pl.193.21"></a><var>193.21</var>    (2) capital and operating expenses of cultural organizations in the city, provided <br/>
<a id="pl.193.22"></a><var>193.22</var>that the amount spent under this clause must equal ten percent of the total amount spent <br/>
<a id="pl.193.23"></a><var>193.23</var>under this paragraph in any year.<br/>
<a id="pl.193.24"></a><var>193.24</var>    (c) The amount apportioned under paragraph (b) shall be no less than 60 percent <br/>
<a id="pl.193.25"></a><var>193.25</var>of the revenues derived from the tax each year, except to the extent that a portion of that <br/>
<a id="pl.193.26"></a><var>193.26</var>amount is required to pay debt service on (1) bonds issued for the purposes of paragraph (a) <br/>
<a id="pl.193.27"></a><var>193.27</var>prior to March 1, 1998; or (2) bonds issued for the purposes of paragraph (a) after March 1, <br/>
<a id="pl.193.28"></a><var>193.28</var>1998, but only if the city council determines that 40 percent of the revenues derived from <br/>
<a id="pl.193.29"></a><var>193.29</var>the tax together with other revenues pledged to the payment of the bonds, including the <br/>
<a id="pl.193.30"></a><var>193.30</var>proceeds of definitive bonds, is expected to exceed the annual debt service on the bonds.<br/>
<a id="pl.193.31"></a><var>193.31</var>    (d) If in any year more than 40 percent of the revenue derived from the tax authorized <br/>
<a id="pl.193.32"></a><var>193.32</var>by subdivision 1 is used to pay debt service on the bonds issued for the purposes of <br/>
<a id="pl.193.33"></a><var>193.33</var>paragraph (a) and to fund a reserve for the bonds, the amount of the debt service payment <br/>
<a id="pl.193.34"></a><var>193.34</var>that exceeds 40 percent of the revenue must be determined for that year. In any year when <br/>
<a id="pl.193.35"></a><var>193.35</var>40 percent of the revenue produced by the sales tax exceeds the amount required to pay <br/>
<a id="pl.194.1"></a><var>194.1</var>debt service on the bonds and to fund a reserve for the bonds under paragraph (a), the <br/>
<a id="pl.194.2"></a><var>194.2</var>amount of the excess must be made available for capital projects to further residential, <br/>
<a id="pl.194.3"></a><var>194.3</var>cultural, commercial, and economic development in the neighborhoods and downtown <br/>
<a id="pl.194.4"></a><var>194.4</var>until the cumulative amounts determined for all years under the preceding sentence have <br/>
<a id="pl.194.5"></a><var>194.5</var>been made available under this sentence. The amount made available as reimbursement in <br/>
<a id="pl.194.6"></a><var>194.6</var>the preceding sentence is not included in the 60 percent determined under paragraph (c).<br/>
<a id="pl.194.7"></a><var>194.7</var>    (e) In each of calendar years 2006 to 2014, revenue not to exceed $3,500,000 may be <br/>
<a id="pl.194.8"></a><var>194.8</var>used to pay the principal of bonds issued for capital projects of the city. After December <br/>
<a id="pl.194.9"></a><var>194.9</var>31, 2014, revenue from the tax imposed under subdivision 1 may not be used for this <br/>
<a id="pl.194.10"></a><var>194.10</var>purpose. If the amount necessary to meet obligations under paragraphs (a) and (d) are less <br/>
<a id="pl.194.11"></a><var>194.11</var>than 40 percent of the revenue from the tax in any year, the city may place the difference <br/>
<a id="pl.194.12"></a><var>194.12</var>between 40 percent of the revenue and the amounts allocated under paragraphs (a) and (d) <br/>
<a id="pl.194.13"></a><var>194.13</var>in an economic development fund to be used for any economic development purposes.<br/>
<a id="pl.194.14"></a><var>194.14</var>    (f) By January 15 of each year, the mayor and the city council must report to the <br/>
<a id="pl.194.15"></a><var>194.15</var>legislature on the use of sales tax revenues during the preceding one-year period.<br/>
<a id="pl.194.16"></a><var>194.16</var><b>EFFECTIVE DATE.</b>This section is effective the day after compliance by the <br/>
<a id="pl.194.17"></a><var>194.17</var>governing body of the city of St. Paul with Minnesota Statutes, section 645.021, <br/>
<a id="pl.194.18"></a><var>194.18</var>subdivisions 2 and 3.<br/>
<br/>
<a id="bill.7.51.0"></a><a id="pl.194.19"></a><var>194.19</var>    Sec. 51. Laws 1993, chapter 375, article 9, section 46, subdivision 5, as amended by <br/>
<a id="pl.194.20"></a><var>194.20</var>Laws 1998, chapter 389, article 8, section 32, is amended to read:<br/>
<a id="pl.194.21"></a><var>194.21</var>    Subd. 5. <b>Expiration of taxing authority.</b> The authority granted by subdivision 1 to <br/>
<a id="pl.194.22"></a><var>194.22</var>the city to impose a sales tax shall expire on December 31, 2030 2040, or at an earlier <br/>
<a id="pl.194.23"></a><var>194.23</var>time as the city shall, by ordinance, determine. Any funds remaining after completion of <br/>
<a id="pl.194.24"></a><var>194.24</var>projects approved under subdivision 2, paragraph (a) and retirement or redemption of any <br/>
<a id="pl.194.25"></a><var>194.25</var>bonds or other obligations may be placed in the general fund of the city.<br/>
<a id="pl.194.26"></a><var>194.26</var><b>EFFECTIVE DATE.</b>This section is effective the day after compliance by the <br/>
<a id="pl.194.27"></a><var>194.27</var>governing body of the city of St. Paul with Minnesota Statutes, section 645.021, <br/>
<a id="pl.194.28"></a><var>194.28</var>subdivisions 2 and 3.<br/>
<br/>
<a id="bill.7.52.0"></a><a id="pl.194.29"></a><var>194.29</var>    Sec. 52. Laws 2005, First Special Session chapter 3, article 5, section 37, subdivision <br/>
<a id="pl.194.30"></a><var>194.30</var>2, is amended to read:<br/>
<a id="pl.194.31"></a><var>194.31</var>    Subd. 2. <b>Use of revenues.</b> (a) Revenues received from the tax authorized by <br/>
<a id="pl.194.32"></a><var>194.32</var>subdivision 1 by the city of St. Cloud must be used for the cost of collecting and <br/>
<a id="pl.194.33"></a><var>194.33</var>administering the tax and to pay all or part of the capital or administrative costs of the <br/>
<a id="pl.195.1"></a><var>195.1</var>development, acquisition, construction, improvement, and securing and paying debt <br/>
<a id="pl.195.2"></a><var>195.2</var>service on bonds or other obligations issued to finance the following regional projects as <br/>
<a id="pl.195.3"></a><var>195.3</var>approved by the voters and specifically detailed in the referendum authorizing the tax or <br/>
<a id="pl.195.4"></a><var>195.4</var>extending the tax:<br/>
<a id="pl.195.5"></a><var>195.5</var>    (1) St. Cloud Regional Airport;<br/>
<a id="pl.195.6"></a><var>195.6</var>    (2) regional transportation improvements;<br/>
<a id="pl.195.7"></a><var>195.7</var>    (3) regional community and aquatics centers;<br/>
<a id="pl.195.8"></a><var>195.8</var>    (4) regional public libraries; and <br/>
<a id="pl.195.9"></a><var>195.9</var>    (5) acquisition and improvement of regional park land and open space.<br/>
<a id="pl.195.10"></a><var>195.10</var>    (b) Revenues received from the tax authorized by subdivision 1 by the cities of St. <br/>
<a id="pl.195.11"></a><var>195.11</var>Joseph, Waite Park, Sartell, Sauk Rapids, and St. Augusta must be used for the cost of <br/>
<a id="pl.195.12"></a><var>195.12</var>collecting and administering the tax and to pay all or part of the capital or administrative <br/>
<a id="pl.195.13"></a><var>195.13</var>costs of the development, acquisition, construction, improvement, and securing and paying <br/>
<a id="pl.195.14"></a><var>195.14</var>debt service on bonds or other obligations issued to fund the projects specifically approved <br/>
<a id="pl.195.15"></a><var>195.15</var>by the voters at the referendum authorizing the tax or extending the tax. The portion of <br/>
<a id="pl.195.16"></a><var>195.16</var>revenues from the city going to fund the regional airport or regional library located in the <br/>
<a id="pl.195.17"></a><var>195.17</var>city of St. Cloud will be as required under the applicable joint powers agreement.<br/>
<a id="pl.195.18"></a><var>195.18</var>    (c) The use of revenues received from the taxes authorized in subdivision 1 for <br/>
<a id="pl.195.19"></a><var>195.19</var>projects allowed under paragraphs (a) and (b) are limited to the amount authorized for <br/>
<a id="pl.195.20"></a><var>195.20</var>each project under the enabling referendum.<br/>
<a id="pl.195.21"></a><var>195.21</var><b>EFFECTIVE DATE.</b>This section is effective for the city that approves them the <br/>
<a id="pl.195.22"></a><var>195.22</var>day after compliance by the governing body of each city with Minnesota Statutes, section <br/>
<a id="pl.195.23"></a><var>195.23</var>645.021, subdivision 3.<br/>
<br/>
<a id="bill.7.53.0"></a><a id="pl.195.24"></a><var>195.24</var>    Sec. 53. Laws 2005, First Special Session chapter 3, article 5, section 37, subdivision <br/>
<a id="pl.195.25"></a><var>195.25</var>4, is amended to read:<br/>
<a id="pl.195.26"></a><var>195.26</var>    Subd. 4. <b>Termination of tax.</b> The tax imposed in the cities of St. Joseph, St. Cloud, <br/>
<a id="pl.195.27"></a><var>195.27</var>St. Augusta, Sartell, Sauk Rapids, and Waite Park under subdivision 1 expires when the <br/>
<a id="pl.195.28"></a><var>195.28</var>city council determines that sufficient funds have been collected from the tax to retire or <br/>
<a id="pl.195.29"></a><var>195.29</var>redeem the bonds and obligations authorized under subdivision 2, paragraph (a), but no <br/>
<a id="pl.195.30"></a><var>195.30</var>later than December 31, 2018. Notwithstanding Minnesota Statutes, section 297A.99, <br/>
<a id="pl.195.31"></a><var>195.31</var>subdivision 3, paragraphs (a), (c), and (d), a city may extend the tax imposed under <br/>
<a id="pl.195.32"></a><var>195.32</var>subdivision 1 through December 31, 2038, if approved under the referendum authorizing <br/>
<a id="pl.195.33"></a><var>195.33</var>the tax under subdivision 1 or if approved by voters of the city at a general election held <br/>
<a id="pl.195.34"></a><var>195.34</var>no later than November 6, 2017.<br/>
<a id="pl.196.1"></a><var>196.1</var><b>EFFECTIVE DATE.</b>This section is effective for the city that approves them the <br/>
<a id="pl.196.2"></a><var>196.2</var>day after compliance by the governing body of each city with Minnesota Statutes, section <br/>
<a id="pl.196.3"></a><var>196.3</var>645.021, subdivision 3.<br/>
<br/>
<a id="bill.7.54.0"></a><a id="pl.196.4"></a><var>196.4</var>    Sec. 54. Laws 2008, chapter 366, article 7, section 19, subdivision 3, as amended by <br/>
<a id="pl.196.5"></a><var>196.5</var>Laws 2011, First Special Session chapter 7, article 4, section 8, is amended to read:<br/>
<a id="pl.196.6"></a><var>196.6</var>    Subd. 3. <b>Use of revenues.</b> Notwithstanding Minnesota Statutes, section 
         <statute_ref>297A.99, <br/>
<a id="pl.196.7"></a><var>196.7</var>subdivision 3
         </statute_ref>, paragraph (b), the proceeds of the tax imposed under this section shall be <br/>
<a id="pl.196.8"></a><var>196.8</var>used to pay for the costs of improvements to the Sportsman Park/Ballfields, Riverside <br/>
<a id="pl.196.9"></a><var>196.9</var>Park, Lions Park/Pavilion, Cedar South Park also known as Eldorado Park, and Spring <br/>
<a id="pl.196.10"></a><var>196.10</var>Street Park; improvements to and extension of the River County Bike Trail; acquisition,<br/>
<a id="pl.196.11"></a><var>196.11</var> and construction, improvement, and development of regional parks, bicycle trails, park <br/>
<a id="pl.196.12"></a><var>196.12</var>land, open space, and of a pedestrian walkways, as described in the city improvement <br/>
<a id="pl.196.13"></a><var>196.13</var>plan adopted by the city council by resolution on December 12, 2006, and walkway <br/>
<a id="pl.196.14"></a><var>196.14</var>over Interstate 94 and State Highway 24; and the acquisition of land and construction of <br/>
<a id="pl.196.15"></a><var>196.15</var>buildings for a community and recreation center. The total amount of revenues from the <br/>
<a id="pl.196.16"></a><var>196.16</var>taxes in subdivisions 1 and 2 that may be used to fund these projects is $12,000,000 <br/>
<a id="pl.196.17"></a><var>196.17</var>plus any associated bond costs.<br/>
<a id="pl.196.18"></a><var>196.18</var><b>EFFECTIVE DATE.</b>This section is effective the day after compliance by the <br/>
<a id="pl.196.19"></a><var>196.19</var>governing body of the city of Clearwater with Minnesota Statutes, section 645.021, <br/>
<a id="pl.196.20"></a><var>196.20</var>subdivisions 2 and 3.<br/>
<br/>
<a id="bill.7.55.0"></a><a id="pl.196.21"></a><var>196.21</var>    Sec. 55. <b>DULUTH LOCAL SALES TAX; RATE REDUCTION.</b><br/>
<a id="pl.196.22"></a><var>196.22</var>Notwithstanding Minnesota Statutes, section 297A.99 or 645.021, or any ordinance, <br/>
<a id="pl.196.23"></a><var>196.23</var>city charter, or other provision of law, the city of Duluth shall reduce its rate of tax <br/>
<a id="pl.196.24"></a><var>196.24</var>authorized under Laws 1973, chapter 461, section 1, as amended by Laws 1977, chapter <br/>
<a id="pl.196.25"></a><var>196.25</var>438, to 0.87 percent.<br/>
<a id="pl.196.26"></a><var>196.26</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.196.27"></a><var>196.27</var>June 30, 2013.<br/>
<br/>
<a id="bill.7.56.0"></a><a id="pl.196.28"></a><var>196.28</var>    Sec. 56. <b> REPEALER.</b><br/>
<a id="pl.196.29"></a><var>196.29</var>Minnesota Statutes 2012, sections 297A.61, subdivision 27; 297A.66, subdivision 4; <br/>
<a id="pl.196.30"></a><var>196.30</var>297A.67, subdivision 8; and 297A.68, subdivisions 9, 22, and 35, are repealed.<br/>
<a id="pl.196.31"></a><var>196.31</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.196.32"></a><var>196.32</var>June 30, 2013.<br/>
<br/>
<a id="bill.8.0.0"></a>

<a id="bill.8.1.0"></a><a id="pl.197.3"></a><var>197.3</var>    Section 1. Minnesota Statutes 2012, section 469.174, subdivision 2, is amended to read:<br/>
<a id="pl.197.4"></a><var>197.4</var>    Subd. 2. <b>Authority.</b> "Authority" means a rural development financing authority <br/>
<a id="pl.197.5"></a><var>197.5</var>created pursuant to sections 
         <statute_ref>469.142</statute_ref> to 
         <statute_ref>469.151</statute_ref>; a housing and redevelopment authority <br/>
<a id="pl.197.6"></a><var>197.6</var>created pursuant to sections 
         <statute_ref>469.001</statute_ref> to 
         <statute_ref>469.047</statute_ref>; a port authority created pursuant to <br/>
<a id="pl.197.7"></a><var>197.7</var>sections 
         <statute_ref>469.048</statute_ref> to 
         <statute_ref>469.068</statute_ref>; an economic development authority created pursuant to <br/>
<a id="pl.197.8"></a><var>197.8</var>sections 
         <statute_ref>469.090</statute_ref> to 
         <statute_ref>469.108</statute_ref>; a redevelopment agency as defined in sections 
         <statute_ref>469.152</statute_ref> to <br/>
<statute_ref><a id="pl.197.9"></a><var>197.9</var>469.165
         </statute_ref>; a municipality that is administering a development district created pursuant to <br/>
<a id="pl.197.10"></a><var>197.10</var>sections 
         <statute_ref>469.124</statute_ref> to 
         <statute_ref>469.134</statute_ref> or any special law; a municipality that undertakes a project <br/>
<a id="pl.197.11"></a><var>197.11</var>pursuant to sections 
         <statute_ref>469.152</statute_ref> to 
         <statute_ref>469.165</statute_ref>, except a town located outside the metropolitan <br/>
<a id="pl.197.12"></a><var>197.12</var>area or with a population of 5,000 persons or less; a municipality that undertakes a project <br/>
<a id="pl.197.13"></a><var>197.13</var>located in an area designated under subdivision 30; or a municipality that exercises the <br/>
<a id="pl.197.14"></a><var>197.14</var>powers of a port authority pursuant to any general or special law.<br/>
<a id="pl.197.15"></a><var>197.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.8.2.0"></a><a id="pl.197.16"></a><var>197.16</var>    Sec. 2. Minnesota Statutes 2012, section 469.174, is amended by adding a subdivision <br/>
<a id="pl.197.17"></a><var>197.17</var>to read:<br/>
<a id="pl.197.18"></a><var>197.18</var>    Subd. 19a. <b>Soil deficiency district.</b> "Soil deficiency district" means a type of tax <br/>
<a id="pl.197.19"></a><var>197.19</var>increment financing district consisting of a project, or portions of a project, within which <br/>
<a id="pl.197.20"></a><var>197.20</var>the authority finds by resolution that the following conditions exist:<br/>
<a id="pl.197.21"></a><var>197.21</var>(1) parcels consisting of 70 percent of the area of the district contain unusual terrain <br/>
<a id="pl.197.22"></a><var>197.22</var>or soil deficiencies which require substantial filling, grading, or other physical preparation <br/>
<a id="pl.197.23"></a><var>197.23</var>for use and a parcel is eligible for inclusion if at least 50 percent of the area of the parcel <br/>
<a id="pl.197.24"></a><var>197.24</var>requires substantial filling, grading, or other physical preparation for use; and<br/>
<a id="pl.197.25"></a><var>197.25</var>(2) the estimated cost of the physical preparation under clause (1), but excluding <br/>
<a id="pl.197.26"></a><var>197.26</var>costs directly related to roads as defined in section 160.01, and local improvements as <br/>
<a id="pl.197.27"></a><var>197.27</var>described in sections 429.021, subdivision 1, clauses (1) to (7), (11), and (12), and 430.01, <br/>
<a id="pl.197.28"></a><var>197.28</var>exceeds the fair market value of the land before completion of the preparation.<br/>
<a id="pl.197.29"></a><var>197.29</var><b>EFFECTIVE DATE.</b>This section is effective for districts for which the request for <br/>
<a id="pl.197.30"></a><var>197.30</var>certification is made after April 30, 2013.<br/>
<br/>
<a id="bill.8.3.0"></a><a id="pl.197.31"></a><var>197.31</var>    Sec. 3. Minnesota Statutes 2012, section 469.174, is amended by adding a subdivision <br/>
<a id="pl.197.32"></a><var>197.32</var>to read:<br/>
<a id="pl.198.1"></a><var>198.1</var>    Subd. 30. <b>Mining reclamation project area.</b> (a) An authority may designate an <br/>
<a id="pl.198.2"></a><var>198.2</var>area within its jurisdiction as a mining reclamation project area by finding by resolution, <br/>
<a id="pl.198.3"></a><var>198.3</var>that parcels consisting of at least 70 percent of the acreage, excluding street and railroad <br/>
<a id="pl.198.4"></a><var>198.4</var>rights-of-way, are characterized by one or more of the following conditions:<br/>
<a id="pl.198.5"></a><var>198.5</var>(1) peat or other soils with geotechnical deficiencies that impair development of <br/>
<a id="pl.198.6"></a><var>198.6</var>buildings or infrastructure;<br/>
<a id="pl.198.7"></a><var>198.7</var>(2) soils or terrain that requires substantial filling in order to permit the development <br/>
<a id="pl.198.8"></a><var>198.8</var>of buildings or infrastructure;<br/>
<a id="pl.198.9"></a><var>198.9</var>(3) landfills, dumps, or similar deposits of municipal or private waste;<br/>
<a id="pl.198.10"></a><var>198.10</var>(4) quarries or similar resource extraction sites;<br/>
<a id="pl.198.11"></a><var>198.11</var>(5) floodway; and<br/>
<a id="pl.198.12"></a><var>198.12</var>(6) substandard buildings, within the meaning of section 469.174, subdivision 10.<br/>
<a id="pl.198.13"></a><var>198.13</var>(b) For the purposes of paragraph (a), clauses (1) to (5), a parcel is characterized by <br/>
<a id="pl.198.14"></a><var>198.14</var>the relevant condition if at least 50 percent of the area of the parcel contains the relevant <br/>
<a id="pl.198.15"></a><var>198.15</var>condition. For the purposes of paragraph (a), clause (6), a parcel is characterized by <br/>
<a id="pl.198.16"></a><var>198.16</var>substandard buildings if substandard buildings occupy at least 30 percent of the area <br/>
<a id="pl.198.17"></a><var>198.17</var>of the parcel.<br/>
<a id="pl.198.18"></a><var>198.18</var><b>EFFECTIVE DATE.</b>This section is effective for districts for which the request for <br/>
<a id="pl.198.19"></a><var>198.19</var>certification is made after April 30, 2013.<br/>
<br/>
<a id="bill.8.4.0"></a><a id="pl.198.20"></a><var>198.20</var>    Sec. 4. Minnesota Statutes 2012, section 469.175, subdivision 3, is amended to read:<br/>
<a id="pl.198.21"></a><var>198.21</var>    Subd. 3. <b>Municipality approval.</b> (a) A county auditor shall not certify the original <br/>
<a id="pl.198.22"></a><var>198.22</var>net tax capacity of a tax increment financing district until the tax increment financing plan <br/>
<a id="pl.198.23"></a><var>198.23</var>proposed for that district has been approved by the municipality in which the district <br/>
<a id="pl.198.24"></a><var>198.24</var>is located. If an authority that proposes to establish a tax increment financing district <br/>
<a id="pl.198.25"></a><var>198.25</var>and the municipality are not the same, the authority shall apply to the municipality in <br/>
<a id="pl.198.26"></a><var>198.26</var>which the district is proposed to be located and shall obtain the approval of its tax <br/>
<a id="pl.198.27"></a><var>198.27</var>increment financing plan by the municipality before the authority may use tax increment <br/>
<a id="pl.198.28"></a><var>198.28</var>financing. The municipality shall approve the tax increment financing plan only after a <br/>
<a id="pl.198.29"></a><var>198.29</var>public hearing thereon after published notice in a newspaper of general circulation in the <br/>
<a id="pl.198.30"></a><var>198.30</var>municipality at least once not less than ten days nor more than 30 days prior to the date <br/>
<a id="pl.198.31"></a><var>198.31</var>of the hearing. The published notice must include a map of the area of the district from <br/>
<a id="pl.198.32"></a><var>198.32</var>which increments may be collected and, if the project area includes additional area, a map <br/>
<a id="pl.198.33"></a><var>198.33</var>of the project area in which the increments may be expended. The hearing may be held <br/>
<a id="pl.198.34"></a><var>198.34</var>before or after the approval or creation of the project or it may be held in conjunction with <br/>
<a id="pl.198.35"></a><var>198.35</var>a hearing to approve the project.<br/>
<a id="pl.199.1"></a><var>199.1</var>    (b) Before or at the time of approval of the tax increment financing plan, the <br/>
<a id="pl.199.2"></a><var>199.2</var>municipality shall make the following findings, and shall set forth in writing the reasons <br/>
<a id="pl.199.3"></a><var>199.3</var>and supporting facts for each determination:<br/>
<a id="pl.199.4"></a><var>199.4</var>    (1) that the proposed tax increment financing district is a redevelopment district, a <br/>
<a id="pl.199.5"></a><var>199.5</var>renewal or renovation district, a housing district, a soils condition district, soil deficiency <br/>
<a id="pl.199.6"></a><var>199.6</var>district, or an economic development district; if the proposed district is a redevelopment <br/>
<a id="pl.199.7"></a><var>199.7</var>district or a renewal or renovation district, the reasons and supporting facts for the <br/>
<a id="pl.199.8"></a><var>199.8</var>determination that the district meets the criteria of section 
         <statute_ref>469.174, subdivision 10</statute_ref>, <br/>
<a id="pl.199.9"></a><var>199.9</var>paragraph (a), clauses (1) and (2), or subdivision 10a, must be documented in writing <br/>
<a id="pl.199.10"></a><var>199.10</var>and retained and made available to the public by the authority until the district has been <br/>
<a id="pl.199.11"></a><var>199.11</var>terminated;<br/>
<a id="pl.199.12"></a><var>199.12</var>    (2) that, in the opinion of the municipality:<br/>
<a id="pl.199.13"></a><var>199.13</var>    (i) the proposed development or redevelopment would not reasonably be expected to <br/>
<a id="pl.199.14"></a><var>199.14</var>occur solely through private investment within the reasonably foreseeable future; and<br/>
<a id="pl.199.15"></a><var>199.15</var>    (ii) the increased market value of the site that could reasonably be expected to occur <br/>
<a id="pl.199.16"></a><var>199.16</var>without the use of tax increment financing would be less than the increase in the market <br/>
<a id="pl.199.17"></a><var>199.17</var>value estimated to result from the proposed development after subtracting the present <br/>
<a id="pl.199.18"></a><var>199.18</var>value of the projected tax increments for the maximum duration of the district permitted <br/>
<a id="pl.199.19"></a><var>199.19</var>by the plan. The requirements of this item do not apply if the district is a housing district;<br/>
<a id="pl.199.20"></a><var>199.20</var>    (3) that the tax increment financing plan conforms to the general plan for the <br/>
<a id="pl.199.21"></a><var>199.21</var>development or redevelopment of the municipality as a whole;<br/>
<a id="pl.199.22"></a><var>199.22</var>    (4) that the tax increment financing plan will afford maximum opportunity, <br/>
<a id="pl.199.23"></a><var>199.23</var>consistent with the sound needs of the municipality as a whole, for the development or <br/>
<a id="pl.199.24"></a><var>199.24</var>redevelopment of the project by private enterprise;<br/>
<a id="pl.199.25"></a><var>199.25</var>    (5) that the municipality elects the method of tax increment computation set forth in <br/>
<a id="pl.199.26"></a><var>199.26</var>section 
         <statute_ref>469.177, subdivision 3, paragraph (b)</statute_ref>, if applicable; and<br/>
<a id="pl.199.27"></a><var>199.27</var>(6) that for a redevelopment district, renewal and renovation district, soils condition <br/>
<a id="pl.199.28"></a><var>199.28</var>district, or soil deficiency district established by the authority in a mining reclamation <br/>
<a id="pl.199.29"></a><var>199.29</var>project area, the reasons and supporting facts for the determination that the mining <br/>
<a id="pl.199.30"></a><var>199.30</var>reclamation project area meets the requirements under section 469.174, subdivision 30, <br/>
<a id="pl.199.31"></a><var>199.31</var>must be documented in writing and retained and made available to the public by the <br/>
<a id="pl.199.32"></a><var>199.32</var>authority until two years after the district is decertified. These findings must have been <br/>
<a id="pl.199.33"></a><var>199.33</var>made and documented no more than ten years before approval of the tax increment <br/>
<a id="pl.199.34"></a><var>199.34</var>financing plan for the district.<br/>
<a id="pl.199.35"></a><var>199.35</var>    (c) When the municipality and the authority are not the same, the municipality shall <br/>
<a id="pl.199.36"></a><var>199.36</var>approve or disapprove the tax increment financing plan within 60 days of submission by the <br/>
<a id="pl.200.1"></a><var>200.1</var>authority. When the municipality and the authority are not the same, the municipality may <br/>
<a id="pl.200.2"></a><var>200.2</var>not amend or modify a tax increment financing plan except as proposed by the authority <br/>
<a id="pl.200.3"></a><var>200.3</var>pursuant to subdivision 4. Once approved, the determination of the authority to undertake <br/>
<a id="pl.200.4"></a><var>200.4</var>the project through the use of tax increment financing and the resolution of the governing <br/>
<a id="pl.200.5"></a><var>200.5</var>body shall be conclusive of the findings therein and of the public need for the financing.<br/>
<a id="pl.200.6"></a><var>200.6</var>    (d) For a district that is subject to the requirements of paragraph (b), clause (2), <br/>
<a id="pl.200.7"></a><var>200.7</var>item (ii), the municipality's statement of reasons and supporting facts must include all of <br/>
<a id="pl.200.8"></a><var>200.8</var>the following:<br/>
<a id="pl.200.9"></a><var>200.9</var>    (1) an estimate of the amount by which the market value of the site will increase <br/>
<a id="pl.200.10"></a><var>200.10</var>without the use of tax increment financing;<br/>
<a id="pl.200.11"></a><var>200.11</var>    (2) an estimate of the increase in the market value that will result from the <br/>
<a id="pl.200.12"></a><var>200.12</var>development or redevelopment to be assisted with tax increment financing; and<br/>
<a id="pl.200.13"></a><var>200.13</var>    (3) the present value of the projected tax increments for the maximum duration of <br/>
<a id="pl.200.14"></a><var>200.14</var>the district permitted by the tax increment financing plan.<br/>
<a id="pl.200.15"></a><var>200.15</var>    (e) For purposes of this subdivision, "site" means the parcels on which the <br/>
<a id="pl.200.16"></a><var>200.16</var>development or redevelopment to be assisted with tax increment financing will be located.<br/>
<a id="pl.200.17"></a><var>200.17</var><b>EFFECTIVE DATE.</b>This section is effective for districts for which the request for <br/>
<a id="pl.200.18"></a><var>200.18</var>certification is made after April 30, 2013.<br/>
<br/>
<a id="bill.8.5.0"></a><a id="pl.200.19"></a><var>200.19</var>    Sec. 5. Minnesota Statutes 2012, section 469.176, subdivision 1b, is amended to read:<br/>
<a id="pl.200.20"></a><var>200.20</var>    Subd. 1b. <b>Duration limits; terms.</b> (a) No tax increment shall in any event be <br/>
<a id="pl.200.21"></a><var>200.21</var>paid to the authority:<br/>
<a id="pl.200.22"></a><var>200.22</var>(1) after 15 years after receipt by the authority of the first increment for a renewal <br/>
<a id="pl.200.23"></a><var>200.23</var>and renovation district;<br/>
<a id="pl.200.24"></a><var>200.24</var>(2) after 20 years after receipt by the authority of the first increment for a soils <br/>
<a id="pl.200.25"></a><var>200.25</var>condition district or a soil deficiency district;<br/>
<a id="pl.200.26"></a><var>200.26</var>(3) after eight years after receipt by the authority of the first increment for an <br/>
<a id="pl.200.27"></a><var>200.27</var>economic development district;<br/>
<a id="pl.200.28"></a><var>200.28</var>(4) for a housing district, a compact development district, or a redevelopment <br/>
<a id="pl.200.29"></a><var>200.29</var>district, after 25 years from the date of receipt by the authority of the first increment.<br/>
<a id="pl.200.30"></a><var>200.30</var>(b) For purposes of determining a duration limit under this subdivision or subdivision <br/>
<a id="pl.200.31"></a><var>200.31</var>1e that is based on the receipt of an increment, any increments from taxes payable in the year <br/>
<a id="pl.200.32"></a><var>200.32</var>in which the district terminates shall be paid to the authority. This paragraph does not affect <br/>
<a id="pl.200.33"></a><var>200.33</var>a duration limit calculated from the date of approval of the tax increment financing plan or <br/>
<a id="pl.200.34"></a><var>200.34</var>based on the recovery of costs or to a duration limit under subdivision 1c. This paragraph <br/>
<a id="pl.200.35"></a><var>200.35</var>does not supersede the restrictions on payment of delinquent taxes in subdivision 1f.<br/>
<a id="pl.201.1"></a><var>201.1</var>(c) An action by the authority to waive or decline to accept an increment has no <br/>
<a id="pl.201.2"></a><var>201.2</var>effect for purposes of computing a duration limit based on the receipt of increment under <br/>
<a id="pl.201.3"></a><var>201.3</var>this subdivision or any other provision of law. The authority is deemed to have received an <br/>
<a id="pl.201.4"></a><var>201.4</var>increment for any year in which it waived or declined to accept an increment, regardless <br/>
<a id="pl.201.5"></a><var>201.5</var>of whether the increment was paid to the authority.<br/>
<a id="pl.201.6"></a><var>201.6</var>(d) Receipt by a hazardous substance subdistrict of an increment as a result of a <br/>
<a id="pl.201.7"></a><var>201.7</var>reduction in original net tax capacity under section 
         <statute_ref>469.174, subdivision 7</statute_ref>, paragraph <br/>
<a id="pl.201.8"></a><var>201.8</var>(b), does not constitute receipt of increment by the overlying district for the purpose of <br/>
<a id="pl.201.9"></a><var>201.9</var>calculating the duration limit under this section.<br/>
<a id="pl.201.10"></a><var>201.10</var><b>EFFECTIVE DATE.</b>This section is effective for districts for which the request for <br/>
<a id="pl.201.11"></a><var>201.11</var>certification is made after April 30, 2013.<br/>
<br/>
<a id="bill.8.6.0"></a><a id="pl.201.12"></a><var>201.12</var>    Sec. 6. Minnesota Statutes 2012, section 469.176, subdivision 4b, is amended to read:<br/>
<a id="pl.201.13"></a><var>201.13</var>    Subd. 4b. <b>Soils condition districts.</b> Revenue derived from Tax increment from a <br/>
<a id="pl.201.14"></a><var>201.14</var>soils condition district may be used only to (1) acquire parcels on which the improvements <br/>
<a id="pl.201.15"></a><var>201.15</var>described in clause (2) will occur; (2) pay for the cost of removal or remedial action; and <br/>
<a id="pl.201.16"></a><var>201.16</var>(3) pay for the administrative expenses of the authority allocable to the district, including <br/>
<a id="pl.201.17"></a><var>201.17</var>the cost of preparation of the development action response plan. For a soils condition <br/>
<a id="pl.201.18"></a><var>201.18</var>district located in a mining reclamation project area, tax increments may also be expended <br/>
<a id="pl.201.19"></a><var>201.19</var>on the additional cost of public improvements directly caused by the removal or remedial <br/>
<a id="pl.201.20"></a><var>201.20</var>action and located within the mining reclamation project area.<br/>
<a id="pl.201.21"></a><var>201.21</var><b>EFFECTIVE DATE.</b>This section is effective for districts for which the request for <br/>
<a id="pl.201.22"></a><var>201.22</var>certification is made after April 30, 2013.<br/>
<br/>
<a id="bill.8.7.0"></a><a id="pl.201.23"></a><var>201.23</var>    Sec. 7. Minnesota Statutes 2012, section 469.176, subdivision 4c, is amended to read:<br/>
<a id="pl.201.24"></a><var>201.24</var>    Subd. 4c. <b>Economic development districts.</b> (a) Revenue derived from tax increment <br/>
<a id="pl.201.25"></a><var>201.25</var>from an economic development district may not be used to provide improvements, loans, <br/>
<a id="pl.201.26"></a><var>201.26</var>subsidies, grants, interest rate subsidies, or assistance in any form to developments <br/>
<a id="pl.201.27"></a><var>201.27</var>consisting of buildings and ancillary facilities, if more than 15 percent of the buildings and <br/>
<a id="pl.201.28"></a><var>201.28</var>facilities (determined on the basis of square footage) are used for a purpose other than:<br/>
<a id="pl.201.29"></a><var>201.29</var>(1) the manufacturing or production of tangible personal property, including <br/>
<a id="pl.201.30"></a><var>201.30</var>processing resulting in the change in condition of the property;<br/>
<a id="pl.201.31"></a><var>201.31</var>(2) warehousing, storage, and distribution of tangible personal property, excluding <br/>
<a id="pl.201.32"></a><var>201.32</var>retail sales;<br/>
<a id="pl.201.33"></a><var>201.33</var>(3) research and development related to the activities listed in clause (1) or (2);<br/>
<a id="pl.202.1"></a><var>202.1</var>(4) telemarketing if that activity is the exclusive use of the property;<br/>
<a id="pl.202.2"></a><var>202.2</var>(5) tourism facilities; or<br/>
<a id="pl.202.3"></a><var>202.3</var>(6) qualified border retail facilities; or<br/>
<a id="pl.202.4"></a><var>202.4</var>(7) space necessary for and related to the activities listed in clauses (1) to (6) (5).<br/>
<a id="pl.202.5"></a><var>202.5</var>(b) Notwithstanding the provisions of this subdivision, revenues derived from tax <br/>
<a id="pl.202.6"></a><var>202.6</var>increment from an economic development district may be used to provide improvements, <br/>
<a id="pl.202.7"></a><var>202.7</var>loans, subsidies, grants, interest rate subsidies, or assistance in any form for up to 15,000 <br/>
<a id="pl.202.8"></a><var>202.8</var>square feet of any separately owned commercial facility located within the municipal <br/>
<a id="pl.202.9"></a><var>202.9</var>jurisdiction of a small city, if the revenues derived from increments are spent only to <br/>
<a id="pl.202.10"></a><var>202.10</var>assist the facility directly or for administrative expenses, the assistance is necessary to <br/>
<a id="pl.202.11"></a><var>202.11</var>develop the facility, and all of the increments, except those for administrative expenses, <br/>
<a id="pl.202.12"></a><var>202.12</var>are spent only for activities within the district.<br/>
<a id="pl.202.13"></a><var>202.13</var>(c) A city is a small city for purposes of this subdivision if the city was a small city <br/>
<a id="pl.202.14"></a><var>202.14</var>in the year in which the request for certification was made and applies for the rest of <br/>
<a id="pl.202.15"></a><var>202.15</var>the duration of the district, regardless of whether the city qualifies or ceases to qualify <br/>
<a id="pl.202.16"></a><var>202.16</var>as a small city.<br/>
<a id="pl.202.17"></a><var>202.17</var>(d) Notwithstanding the requirements of paragraph (a) and the finding requirements <br/>
<a id="pl.202.18"></a><var>202.18</var>of section 
         <statute_ref>469.174, subdivision 12</statute_ref>, tax increments from an economic development district <br/>
<a id="pl.202.19"></a><var>202.19</var>may be used to provide improvements, loans, subsidies, grants, interest rate subsidies, or <br/>
<a id="pl.202.20"></a><var>202.20</var>assistance in any form to developments consisting of buildings and ancillary facilities, if <br/>
<a id="pl.202.21"></a><var>202.21</var>all the following conditions are met:<br/>
<a id="pl.202.22"></a><var>202.22</var>(1) the municipality finds that the project will create or retain jobs in this state, <br/>
<a id="pl.202.23"></a><var>202.23</var>including construction jobs, and that construction of the project would not have <br/>
<a id="pl.202.24"></a><var>202.24</var>commenced before July 1, 2012 June 30, 2014, without the authority providing assistance <br/>
<a id="pl.202.25"></a><var>202.25</var>under the provisions of this paragraph;<br/>
<a id="pl.202.26"></a><var>202.26</var>(2) construction of the project begins no later than July 1, 2012 June 30, 2014;<br/>
<a id="pl.202.27"></a><var>202.27</var>(3) the request for certification of the district is made no later than June 30, 2012<br/>
<a id="pl.202.28"></a><var>202.28</var> December 31, 2014; and<br/>
<a id="pl.202.29"></a><var>202.29</var>(4) for development of housing under this paragraph, the construction must begin <br/>
<a id="pl.202.30"></a><var>202.30</var>before January 1, 2012.<br/>
<a id="pl.202.31"></a><var>202.31</var>The provisions of this paragraph may not be used to assist housing that is developed <br/>
<a id="pl.202.32"></a><var>202.32</var>to qualify under section 
         <statute_ref>469.1761, subdivision 2</statute_ref> or 3, or similar requirements of other law, <br/>
<a id="pl.202.33"></a><var>202.33</var>if construction of the project begins later than July 1, 2011.<br/>
<a id="pl.202.34"></a><var>202.34</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.8.8.0"></a><a id="pl.202.35"></a><var>202.35</var>    Sec. 8. Minnesota Statutes 2012, section 469.176, subdivision 4m, is amended to read:<br/>
<a id="pl.203.1"></a><var>203.1</var>    Subd. 4m. <b>Temporary authority to stimulate construction.</b> (a) Notwithstanding <br/>
<a id="pl.203.2"></a><var>203.2</var>the restrictions in any other subdivision of this section or any other law to the contrary, <br/>
<a id="pl.203.3"></a><var>203.3</var>except the requirement to pay bonds to which the increments are pledged and the <br/>
<a id="pl.203.4"></a><var>203.4</var>provisions of subdivisions 4g and 4h, the authority may spend tax increments for one or <br/>
<a id="pl.203.5"></a><var>203.5</var>more of the following purposes:<br/>
<a id="pl.203.6"></a><var>203.6</var>(1) to provide improvements, loans, interest rate subsidies, or assistance in any <br/>
<a id="pl.203.7"></a><var>203.7</var>form to private development consisting of the construction or substantial rehabilitation <br/>
<a id="pl.203.8"></a><var>203.8</var>of buildings and ancillary facilities, if doing so will create or retain jobs in this state, <br/>
<a id="pl.203.9"></a><var>203.9</var>including construction jobs, and that the construction commences before July 1, 2012June <br/>
<a id="pl.203.10"></a><var>203.10</var>30, 2014, and would not have commenced before that date without the assistance; or<br/>
<a id="pl.203.11"></a><var>203.11</var>(2) to make an equity or similar investment in a corporation, partnership, or limited <br/>
<a id="pl.203.12"></a><var>203.12</var>liability company that the authority determines is necessary to make construction of a <br/>
<a id="pl.203.13"></a><var>203.13</var>development that meets the requirements of clause (1) financially feasible.<br/>
<a id="pl.203.14"></a><var>203.14</var>(b) The authority may undertake actions under the authority of this subdivision only <br/>
<a id="pl.203.15"></a><var>203.15</var>after approval by the municipality of a written spending plan that specifically authorizes <br/>
<a id="pl.203.16"></a><var>203.16</var>the authority to take the actions. The spending plan must contain a detailed description <br/>
<a id="pl.203.17"></a><var>203.17</var>of each action to be undertaken. The municipality shall approve the spending plan only <br/>
<a id="pl.203.18"></a><var>203.18</var>after a public hearing after published notice in a newspaper of general circulation in <br/>
<a id="pl.203.19"></a><var>203.19</var>the municipality at least once, not less than ten days nor more than 30 days prior to the <br/>
<a id="pl.203.20"></a><var>203.20</var>date of the hearing.<br/>
<a id="pl.203.21"></a><var>203.21</var>(c) The authority to spend tax increments under this subdivision expires December <br/>
<a id="pl.203.22"></a><var>203.22</var>31, 2012 December 31, 2014.<br/>
<a id="pl.203.23"></a><var>203.23</var>(d) For a development consisting of housing, the authority to spend tax increments <br/>
<a id="pl.203.24"></a><var>203.24</var>under this subdivision expires December 31, 2011, and construction must commence <br/>
<a id="pl.203.25"></a><var>203.25</var>before July 1, 2011, except the authority to spend tax increments on market rate housing <br/>
<a id="pl.203.26"></a><var>203.26</var>developments under this subdivision expires July 31, 2012, and construction must <br/>
<a id="pl.203.27"></a><var>203.27</var>commence before January 1, 2012.<br/>
<a id="pl.203.28"></a><var>203.28</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.203.29"></a><var>203.29</var>and applies to all tax increment financing districts, regardless of when the request for <br/>
<a id="pl.203.30"></a><var>203.30</var>certification was made. The amendments to paragraph (b) apply to projects approved <br/>
<a id="pl.203.31"></a><var>203.31</var>after the day following final enactment.<br/>
<br/>
<a id="bill.8.9.0"></a><a id="pl.203.32"></a><var>203.32</var>    Sec. 9. Minnesota Statutes 2012, section 469.176, is amended by adding a subdivision <br/>
<a id="pl.203.33"></a><var>203.33</var>to read:<br/>
<a id="pl.204.1"></a><var>204.1</var>    Subd. 4n. <b>Soil deficiency district.</b> Tax increments from a soil deficiency district <br/>
<a id="pl.204.2"></a><var>204.2</var>may only be used to pay for the following costs for activities located within the mining <br/>
<a id="pl.204.3"></a><var>204.3</var>reclamation project area:<br/>
<a id="pl.204.4"></a><var>204.4</var>(1) acquisition of parcels on which the improvements described in clause (2) will <br/>
<a id="pl.204.5"></a><var>204.5</var>occur;<br/>
<a id="pl.204.6"></a><var>204.6</var>(2) the cost of correcting the unusual terrain or soil deficiencies and the additional <br/>
<a id="pl.204.7"></a><var>204.7</var>cost of installing public improvements directly caused by the deficiencies;<br/>
<a id="pl.204.8"></a><var>204.8</var>(3) administrative expenses of the authority allocable to the district; and<br/>
<a id="pl.204.9"></a><var>204.9</var>(4) costs described in subdivision 4j for the district, if these payments do not exceed <br/>
<a id="pl.204.10"></a><var>204.10</var>25 percent of the tax increment from the district.<br/>
<a id="pl.204.11"></a><var>204.11</var><b>EFFECTIVE DATE.</b>This section is effective for districts for which the request for <br/>
<a id="pl.204.12"></a><var>204.12</var>certification is made after April 30, 2013.<br/>
<br/>
<a id="bill.8.10.0"></a><a id="pl.204.13"></a><var>204.13</var>    Sec. 10. Minnesota Statutes 2012, section 469.176, subdivision 6, is amended to read:<br/>
<a id="pl.204.14"></a><var>204.14</var>    Subd. 6. <b>Action required.</b> (a) If, after four years from the date of certification of <br/>
<a id="pl.204.15"></a><var>204.15</var>the original net tax capacity of the tax increment financing district pursuant to section <br/>
<statute_ref><a id="pl.204.16"></a><var>204.16</var>469.177
         </statute_ref>, no demolition, rehabilitation, or renovation of property or other site preparation, <br/>
<a id="pl.204.17"></a><var>204.17</var>including qualified improvement of a street adjacent to a parcel but not installation <br/>
<a id="pl.204.18"></a><var>204.18</var>of utility service including sewer or water systems, has been commenced on a parcel <br/>
<a id="pl.204.19"></a><var>204.19</var>located within a tax increment financing district by the authority or by the owner of the <br/>
<a id="pl.204.20"></a><var>204.20</var>parcel in accordance with the tax increment financing plan, no additional tax increment <br/>
<a id="pl.204.21"></a><var>204.21</var>may be taken from that parcel, and the original net tax capacity of that parcel shall be <br/>
<a id="pl.204.22"></a><var>204.22</var>excluded from the original net tax capacity of the tax increment financing district. If the <br/>
<a id="pl.204.23"></a><var>204.23</var>authority or the owner of the parcel subsequently commences demolition, rehabilitation, <br/>
<a id="pl.204.24"></a><var>204.24</var>or renovation or other site preparation on that parcel including qualified improvement of <br/>
<a id="pl.204.25"></a><var>204.25</var>a street adjacent to that parcel, in accordance with the tax increment financing plan, the <br/>
<a id="pl.204.26"></a><var>204.26</var>authority shall certify to the county auditor that the activity has commenced, and the <br/>
<a id="pl.204.27"></a><var>204.27</var>county auditor shall certify the net tax capacity thereof as most recently certified by the <br/>
<a id="pl.204.28"></a><var>204.28</var>commissioner of revenue and add it to the original net tax capacity of the tax increment <br/>
<a id="pl.204.29"></a><var>204.29</var>financing district. The county auditor must enforce the provisions of this subdivision. The <br/>
<a id="pl.204.30"></a><var>204.30</var>authority must submit to the county auditor evidence that the required activity has taken <br/>
<a id="pl.204.31"></a><var>204.31</var>place for each parcel in the district. The evidence for a parcel must be submitted by <br/>
<a id="pl.204.32"></a><var>204.32</var>February 1 of the fifth year following the year in which the parcel was certified as included <br/>
<a id="pl.204.33"></a><var>204.33</var>in the district. For purposes of this subdivision, qualified improvements of a street are <br/>
<a id="pl.204.34"></a><var>204.34</var>limited to (1) construction or opening of a new street, (2) relocation of a street, and (3) <br/>
<a id="pl.204.35"></a><var>204.35</var>substantial reconstruction or rebuilding of an existing street.<br/>
<a id="pl.205.1"></a><var>205.1</var>(b) For districts which were certified on or after January 1, 2005, and before April <br/>
<a id="pl.205.2"></a><var>205.2</var>20, 2009, the four-year period under paragraph (a) is increased to six years deemed to end <br/>
<a id="pl.205.3"></a><var>205.3</var>on December 31, 2016.<br/>
<a id="pl.205.4"></a><var>205.4</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.205.5"></a><var>205.5</var>and applies to districts certified on or after January 1, 2005, and before April 20, 2009.<br/>
<br/>
<a id="bill.8.11.0"></a><a id="pl.205.6"></a><var>205.6</var>    Sec. 11. Minnesota Statutes 2012, section 469.1763, subdivision 3, is amended to read:<br/>
<a id="pl.205.7"></a><var>205.7</var>    Subd. 3. <b>Five-year</b><b> Ten-year</b><b> rule.</b> (a) Revenues derived from tax increments are <br/>
<a id="pl.205.8"></a><var>205.8</var>considered to have been expended on an activity within the district under subdivision 2 <br/>
<a id="pl.205.9"></a><var>205.9</var>only if one of the following occurs:<br/>
<a id="pl.205.10"></a><var>205.10</var>(1) before or within five ten years after certification of the district, the revenues are <br/>
<a id="pl.205.11"></a><var>205.11</var>actually paid to a third party with respect to the activity;<br/>
<a id="pl.205.12"></a><var>205.12</var>(2) bonds, the proceeds of which must be used to finance the activity, are issued and <br/>
<a id="pl.205.13"></a><var>205.13</var>sold to a third party before or within five ten years after certification, the revenues are <br/>
<a id="pl.205.14"></a><var>205.14</var>spent to repay the bonds, and the proceeds of the bonds either are, on the date of issuance, <br/>
<a id="pl.205.15"></a><var>205.15</var>reasonably expected to be spent before the end of the later of (i) the five-year ten-year<br/>
<a id="pl.205.16"></a><var>205.16</var> period, or (ii) a reasonable temporary period within the meaning of the use of that term <br/>
<a id="pl.205.17"></a><var>205.17</var>under section 148(c)(1) of the Internal Revenue Code, or are deposited in a reasonably <br/>
<a id="pl.205.18"></a><var>205.18</var>required reserve or replacement fund;<br/>
<a id="pl.205.19"></a><var>205.19</var>(3) binding contracts with a third party are entered into for performance of the <br/>
<a id="pl.205.20"></a><var>205.20</var>activity before or within five ten years after certification of the district and the revenues <br/>
<a id="pl.205.21"></a><var>205.21</var>are spent under the contractual obligation;<br/>
<a id="pl.205.22"></a><var>205.22</var>(4) costs with respect to the activity are paid before or within five ten years after <br/>
<a id="pl.205.23"></a><var>205.23</var>certification of the district and the revenues are spent to reimburse a party for payment <br/>
<a id="pl.205.24"></a><var>205.24</var>of the costs, including interest on unreimbursed costs; or<br/>
<a id="pl.205.25"></a><var>205.25</var>(5) expenditures are made for housing purposes as permitted by subdivision 2, <br/>
<a id="pl.205.26"></a><var>205.26</var>paragraphs (b) and (d), or for public infrastructure purposes within a zone as permitted <br/>
<a id="pl.205.27"></a><var>205.27</var>by subdivision 2, paragraph (e).<br/>
<a id="pl.205.28"></a><var>205.28</var>(b) For purposes of this subdivision, bonds include subsequent refunding bonds if <br/>
<a id="pl.205.29"></a><var>205.29</var>the original refunded bonds meet the requirements of paragraph (a), clause (2).<br/>
<a id="pl.205.30"></a><var>205.30</var>(c) For a redevelopment district or a renewal and renovation district certified after <br/>
<a id="pl.205.31"></a><var>205.31</var>June 30, 2003, and before April 20, 2009, the five-year periods described in paragraph <br/>
<a id="pl.205.32"></a><var>205.32</var>(a) are extended to ten years after certification of the district. This extension is provided <br/>
<a id="pl.205.33"></a><var>205.33</var>primarily to accommodate delays in development activities due to unanticipated economic <br/>
<a id="pl.205.34"></a><var>205.34</var>circumstances.<br/>
<a id="pl.206.1"></a><var>206.1</var>(d) If the authority so elects in the tax increment financing plan for a redevelopment <br/>
<a id="pl.206.2"></a><var>206.2</var>district, renewal and renovation district, soils condition district, or soil deficiency district <br/>
<a id="pl.206.3"></a><var>206.3</var>located in a mining reclamation project area, the ten-year periods described in paragraph <br/>
<a id="pl.206.4"></a><var>206.4</var>(a) do not apply.<br/>
<a id="pl.206.5"></a><var>206.5</var><b>EFFECTIVE DATE.</b>This section is effective for districts certified after June 30, <br/>
<a id="pl.206.6"></a><var>206.6</var>2003.<br/>
<br/>
<a id="bill.8.12.0"></a><a id="pl.206.7"></a><var>206.7</var>    Sec. 12. Minnesota Statutes 2012, section 469.1763, subdivision 4, is amended to read:<br/>
<a id="pl.206.8"></a><var>206.8</var>    Subd. 4. <b>Use of revenues for decertification.</b> (a) In each year beginning with the <br/>
<a id="pl.206.9"></a><var>206.9</var>sixth 11th  year following certification of the district, if the applicable in-district percent of <br/>
<a id="pl.206.10"></a><var>206.10</var>the revenues derived from tax increments paid by properties in the district exceeds the <br/>
<a id="pl.206.11"></a><var>206.11</var>amount of expenditures that have been made for costs permitted under subdivision 3, an <br/>
<a id="pl.206.12"></a><var>206.12</var>amount equal to the difference between the in-district percent of the revenues derived from <br/>
<a id="pl.206.13"></a><var>206.13</var>tax increments paid by properties in the district and the amount of expenditures that have <br/>
<a id="pl.206.14"></a><var>206.14</var>been made for costs permitted under subdivision 3 must be used and only used to pay or <br/>
<a id="pl.206.15"></a><var>206.15</var>defease the following or be set aside to pay the following:<br/>
<a id="pl.206.16"></a><var>206.16</var>(1) outstanding bonds, as defined in subdivision 3, paragraphs (a), clause (2), and (b);<br/>
<a id="pl.206.17"></a><var>206.17</var>(2) contracts, as defined in subdivision 3, paragraph (a), clauses (3) and (4);<br/>
<a id="pl.206.18"></a><var>206.18</var>(3) credit enhanced bonds to which the revenues derived from tax increments are <br/>
<a id="pl.206.19"></a><var>206.19</var>pledged, but only to the extent that revenues of the district for which the credit enhanced <br/>
<a id="pl.206.20"></a><var>206.20</var>bonds were issued are insufficient to pay the bonds and to the extent that the increments <br/>
<a id="pl.206.21"></a><var>206.21</var>from the applicable pooling percent share for the district are insufficient; or<br/>
<a id="pl.206.22"></a><var>206.22</var>(4) the amount provided by the tax increment financing plan to be paid under <br/>
<a id="pl.206.23"></a><var>206.23</var>subdivision 2, paragraphs (b), (d), and (e).<br/>
<a id="pl.206.24"></a><var>206.24</var>(b) The district must be decertified and the pledge of tax increment discharged <br/>
<a id="pl.206.25"></a><var>206.25</var>when the outstanding bonds have been defeased and when sufficient money has been set <br/>
<a id="pl.206.26"></a><var>206.26</var>aside to pay, based on the increment to be collected through the end of the calendar year, <br/>
<a id="pl.206.27"></a><var>206.27</var>the following amounts:<br/>
<a id="pl.206.28"></a><var>206.28</var>(1) contractual obligations as defined in subdivision 3, paragraph (a), clauses (3) <br/>
<a id="pl.206.29"></a><var>206.29</var>and (4);<br/>
<a id="pl.206.30"></a><var>206.30</var>(2) the amount specified in the tax increment financing plan for activities qualifying <br/>
<a id="pl.206.31"></a><var>206.31</var>under subdivision 2, paragraph (b), that have not been funded with the proceeds of bonds <br/>
<a id="pl.206.32"></a><var>206.32</var>qualifying under paragraph (a), clause (1); and<br/>
<a id="pl.206.33"></a><var>206.33</var>(3) the additional expenditures permitted by the tax increment financing plan for <br/>
<a id="pl.206.34"></a><var>206.34</var>housing activities under an election under subdivision 2, paragraph (d), that have not been <br/>
<a id="pl.206.35"></a><var>206.35</var>funded with the proceeds of bonds qualifying under paragraph (a), clause (1).<br/>
<a id="pl.207.1"></a><var>207.1</var>(c) If the authority so elects in the tax increment financing plan for a redevelopment <br/>
<a id="pl.207.2"></a><var>207.2</var>district, renewal and renovation district, soils condition district, or soil deficiency district <br/>
<a id="pl.207.3"></a><var>207.3</var>located in a mining reclamation project area, the provisions of this section do not apply.<br/>
<a id="pl.207.4"></a><var>207.4</var><b>EFFECTIVE DATE.</b>This section is effective for districts certified after June 30, <br/>
<a id="pl.207.5"></a><var>207.5</var>2003.<br/>
<br/>
<a id="bill.8.13.0"></a><a id="pl.207.6"></a><var>207.6</var>    Sec. 13. Minnesota Statutes 2012, section 469.177, subdivision 1a, is amended to read:<br/>
<a id="pl.207.7"></a><var>207.7</var>    Subd. 1a. <b>Original local tax rate.</b> At the time of the initial certification of the <br/>
<a id="pl.207.8"></a><var>207.8</var>original net tax capacity for a tax increment financing district or a subdistrict, the county <br/>
<a id="pl.207.9"></a><var>207.9</var>auditor shall certify the original local tax rate that applies to the district or subdistrict. The <br/>
<a id="pl.207.10"></a><var>207.10</var>original local tax rate is the sum of all the local tax rates, excluding that portion of the <br/>
<a id="pl.207.11"></a><var>207.11</var>school rate attributable to the general education levy under section 126C.13, that apply <br/>
<a id="pl.207.12"></a><var>207.12</var>to a property in the district or subdistrict. The local tax rate to be certified is the rate in <br/>
<a id="pl.207.13"></a><var>207.13</var>effect for the same taxes payable year applicable to the tax capacity values certified as <br/>
<a id="pl.207.14"></a><var>207.14</var>the district's or subdistrict's original tax capacity. The resulting tax capacity rate is the <br/>
<a id="pl.207.15"></a><var>207.15</var>original local tax rate for the life of the district or subdistrict.<br/>
<a id="pl.207.16"></a><var>207.16</var><b>EFFECTIVE DATE.</b>This section is effective for districts for which the request for <br/>
<a id="pl.207.17"></a><var>207.17</var>certification is made after April 15, 2013.<br/>
<br/>
<a id="bill.8.14.0"></a><a id="pl.207.18"></a><var>207.18</var>    Sec. 14. Laws 2008, chapter 366, article 5, section 26, is amended to read:<br/>
<a id="pl.207.19"></a><var>207.19</var>    Sec. 26. <b>BLOOMINGTON TAX INCREMENT FINANCING; FIVE-YEAR </b><br/>
<a id="pl.207.20"></a><var>207.20</var><b>RULE.</b><br/>
<a id="pl.207.21"></a><var>207.21</var>    (a) The requirements of Minnesota Statutes, section 
         <statute_ref>469.1763, subdivision 3</statute_ref>, that <br/>
<a id="pl.207.22"></a><var>207.22</var>activities must be undertaken within a five-year period from the date of certification of <br/>
<a id="pl.207.23"></a><var>207.23</var>a tax increment financing district, are increased to a ten-year 15-year period for the <br/>
<a id="pl.207.24"></a><var>207.24</var>Port Authority of the City of Bloomington's Tax Increment Financing District No. 1-I, <br/>
<a id="pl.207.25"></a><var>207.25</var>Bloomington Central Station.<br/>
<a id="pl.207.26"></a><var>207.26</var>    (b) Notwithstanding the provisions of Minnesota Statutes, section 469.176, or any <br/>
<a id="pl.207.27"></a><var>207.27</var>other law to the contrary, the city of Bloomington and its port authority may extend the <br/>
<a id="pl.207.28"></a><var>207.28</var>duration limits of the district for a period through December 31, 2039.<br/>
<a id="pl.207.29"></a><var>207.29</var>    (c) Effective for taxes payable in 2014, tax increment for the district must be <br/>
<a id="pl.207.30"></a><var>207.30</var>computed using the current local tax rate, notwithstanding the provisions of Minnesota <br/>
<a id="pl.207.31"></a><var>207.31</var>Statutes, section 469.177, subdivision 1a.<br/>
<a id="pl.207.32"></a><var>207.32</var><b>EFFECTIVE DATE.</b>Paragraphs (a) and (c) are effective upon compliance by <br/>
<a id="pl.207.33"></a><var>207.33</var>the governing body of the city of Bloomington with the requirements of Minnesota <br/>
<a id="pl.208.1"></a><var>208.1</var>Statutes, section 645.021, subdivision 3. Paragraph (b) is effective upon compliance by <br/>
<a id="pl.208.2"></a><var>208.2</var>the governing bodies of the city of Bloomington, Hennepin County, and Independent <br/>
<a id="pl.208.3"></a><var>208.3</var>School District No. 271 with the requirements of Minnesota Statutes, sections 469.1782, <br/>
<a id="pl.208.4"></a><var>208.4</var>subdivision 2, and 645.021, subdivision 3.<br/>
<br/>
<a id="bill.8.15.0"></a><a id="pl.208.5"></a><var>208.5</var>    Sec. 15. Laws 2008, chapter 366, article 5, section 34, as amended by Laws 2009, <br/>
<a id="pl.208.6"></a><var>208.6</var>chapter 88, article 5, section 11, is amended to read:<br/>
<a id="pl.208.7"></a><var>208.7</var>    Sec. 34. <b>CITY OF OAKDALE; </b><b>ORIGINAL TAX CAPACITY</b><b> PARCELS </b><br/>
<a id="pl.208.8"></a><var>208.8</var><b>DEEMED OCCUPIED</b><b>. </b><br/>
<a id="pl.208.9"></a><var>208.9</var>    (a) The provisions of this section apply to redevelopment tax increment financing <br/>
<a id="pl.208.10"></a><var>208.10</var>districts created by the Housing and Redevelopment Authority in and for the city of <br/>
<a id="pl.208.11"></a><var>208.11</var>Oakdale in the areas comprised of the parcels with the following parcel identification <br/>
<a id="pl.208.12"></a><var>208.12</var>numbers: (1) 3102921320053; 3102921320054; 3102921320055; 3102921320056; <br/>
<a id="pl.208.13"></a><var>208.13</var>3102921320057; 3102921320058; 3102921320062; 3102921320063; 3102921320059; <br/>
<a id="pl.208.14"></a><var>208.14</var>3102921320060; 3102921320061; 3102921330005; and 3102921330004; and (2) <br/>
<a id="pl.208.15"></a><var>208.15</var>2902921330001 and 2902921330005.<br/>
<a id="pl.208.16"></a><var>208.16</var>    (b) For a district subject to this section, the Housing and Redevelopment Authority <br/>
<a id="pl.208.17"></a><var>208.17</var>may, when requesting certification of the original tax capacity of the district under <br/>
<a id="pl.208.18"></a><var>208.18</var>Minnesota Statutes, section 
<statute_ref>469.177</statute_ref>, elect to have the original tax capacity of the district <br/>
<a id="pl.208.19"></a><var>208.19</var>be certified as the tax capacity of the land.<br/>
<a id="pl.208.20"></a><var>208.20</var>    (c) The authority to request certification of a district under this section expires on <br/>
<a id="pl.208.21"></a><var>208.21</var>July 1, 2013.<br/>
<a id="pl.208.22"></a><var>208.22</var>    (a) Parcel numbers 3102921320054, 3102921320055, 3102921320056, <br/>
<a id="pl.208.23"></a><var>208.23</var>3102921320057, 3102921320061, and 3102921330004 are deemed to meet the <br/>
<a id="pl.208.24"></a><var>208.24</var>requirements of Minnesota Statutes, section 469.174, subdivision 10, paragraph (d), <br/>
<a id="pl.208.25"></a><var>208.25</var>notwithstanding any contrary provisions of that paragraph, if the following conditions <br/>
<a id="pl.208.26"></a><var>208.26</var>are met:<br/>
<a id="pl.208.27"></a><var>208.27</var>    (1) a building located on any part of each of the specified parcels was demolished after <br/>
<a id="pl.208.28"></a><var>208.28</var>the Housing and Redevelopment Authority for the city of Oakdale adopted a resolution <br/>
<a id="pl.208.29"></a><var>208.29</var>under Minnesota Statutes, section 469.174, subdivision 10, paragraph (d), clause (3);<br/>
<a id="pl.208.30"></a><var>208.30</var>    (2) the building was removed either by the authority, by a developer under a <br/>
<a id="pl.208.31"></a><var>208.31</var>development agreement with the Housing and Redevelopment Authority for the city of <br/>
<a id="pl.208.32"></a><var>208.32</var>Oakdale, or by the owner of the property without entering into a development agreement <br/>
<a id="pl.208.33"></a><var>208.33</var>with the Housing and Redevelopment Authority for the city of Oakdale; and<br/>
<a id="pl.208.34"></a><var>208.34</var>    (3) the request for certification of the parcel as part of a district is filed with the <br/>
<a id="pl.208.35"></a><var>208.35</var>county auditor by December 31, 2017.<br/>
<a id="pl.209.1"></a><var>209.1</var>    (b) The provisions of this section allow an election by the authority for the parcels <br/>
<a id="pl.209.2"></a><var>209.2</var>deemed occupied under paragraph (a), notwithstanding the provisions of Minnesota <br/>
<a id="pl.209.3"></a><var>209.3</var>Statutes, sections 469.174, subdivision 10, paragraph (d), and 469.177, subdivision 1, <br/>
<a id="pl.209.4"></a><var>209.4</var>paragraph (f).<br/>
<a id="pl.209.5"></a><var>209.5</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance by the governing <br/>
<a id="pl.209.6"></a><var>209.6</var>body of the city of Oakdale with the requirements of Minnesota Statutes, section 645.021, <br/>
<a id="pl.209.7"></a><var>209.7</var>subdivision 3.<br/>
<br/>
<a id="bill.8.16.0"></a><a id="pl.209.8"></a><var>209.8</var>    Sec. 16. Laws 2010, chapter 216, section 55, is amended to read:<br/>
<a id="pl.209.9"></a><var>209.9</var>    Sec. 55. <b>OAKDALE; TAX INCREMENT FINANCING DISTRICT.</b><br/>
<a id="pl.209.10"></a><var>209.10</var>    Subdivision 1. <b>Duration of district.</b> Notwithstanding the provisions of Minnesota <br/>
<a id="pl.209.11"></a><var>209.11</var>Statutes, section 
         <statute_ref>469.176, subdivision 1b</statute_ref>, the city of Oakdale may collect tax increments <br/>
<a id="pl.209.12"></a><var>209.12</var>from Tax Increment Financing District No. 6 (Bergen Plaza) through December 31, 2024<br/>
<a id="pl.209.13"></a><var>209.13</var> 2030, subject to the conditions described in subdivision 2.<br/>
<a id="pl.209.14"></a><var>209.14</var>    Subd. 2. <b>Conditions for extension.</b> (a) Subdivision 1 applies only if the following <br/>
<a id="pl.209.15"></a><var>209.15</var>conditions are met:<br/>
<a id="pl.209.16"></a><var>209.16</var>    (1) by July 1, 2011, the city of Oakdale has entered into a development agreement <br/>
<a id="pl.209.17"></a><var>209.17</var>with a private developer for development or redevelopment of all or a substantial part of <br/>
<a id="pl.209.18"></a><var>209.18</var>the area parcels described in clause (2); and<br/>
<a id="pl.209.19"></a><var>209.19</var>    (2) by November 1, 2011, the city of Oakdale or a private developer commences <br/>
<a id="pl.209.20"></a><var>209.20</var>construction of streets, traffic improvements, water, sewer, or related infrastructure that <br/>
<a id="pl.209.21"></a><var>209.21</var>serves one or both of the parcels with the following parcel identification numbers: <br/>
<a id="pl.209.22"></a><var>209.22</var>2902921330001 and 2902921330005. For the purposes of this section, construction <br/>
<a id="pl.209.23"></a><var>209.23</var>commences upon grading or other visible improvements that are part of the subject <br/>
<a id="pl.209.24"></a><var>209.24</var>infrastructure.<br/>
<a id="pl.209.25"></a><var>209.25</var>    (b) All tax increments received by the city of Oakdale under subdivision 1 after <br/>
<a id="pl.209.26"></a><var>209.26</var>December 31, 2016, must be used only to pay costs that are both: <br/>
<a id="pl.209.27"></a><var>209.27</var>    (1) related to redevelopment of the parcels specified in this subdivision or <br/>
<a id="pl.209.28"></a><var>209.28</var>parcel numbers 3102921320053, 3102921320054, 3102921320055, 3102921320056, <br/>
<a id="pl.209.29"></a><var>209.29</var>3102921320057, 3102921320058, 3102921320059, 3102921320060, 3102921320061, <br/>
<a id="pl.209.30"></a><var>209.30</var>3102921320062, 3102921320063, 3102921330004, and 3102921330005, including, <br/>
<a id="pl.209.31"></a><var>209.31</var>without limitation, any of the infrastructure referenced in this subdivision, that serves <br/>
<a id="pl.209.32"></a><var>209.32</var>any of the referenced parcels; and <br/>
<a id="pl.209.33"></a><var>209.33</var>    (2) otherwise eligible under law to be paid with increments from the specified tax <br/>
<a id="pl.209.34"></a><var>209.34</var>increment financing district, except the authority under this clause does not apply to <br/>
<a id="pl.209.35"></a><var>209.35</var>increments collected after the conclusion of the duration limit under general law.<br/>
<a id="pl.210.1"></a><var>210.1</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance by the governing <br/>
<a id="pl.210.2"></a><var>210.2</var>body of the city of Oakdale with the requirements of Minnesota Statutes, sections <br/>
<a id="pl.210.3"></a><var>210.3</var>469.1782, subdivision 2, and 645.021, subdivision 3.<br/>
<br/>
<a id="bill.8.17.0"></a><a id="pl.210.4"></a><var>210.4</var>    Sec. 17. <b>USE OF TAX INCREMENT.</b><br/>
<a id="pl.210.5"></a><var>210.5</var>    Notwithstanding Minnesota Statutes, section 469.176, subdivision 4d, beginning <br/>
<a id="pl.210.6"></a><var>210.6</var>on the effective date of this section, the city of Oakdale may spend tax increments from <br/>
<a id="pl.210.7"></a><var>210.7</var>Tax Increment Financing District No. 1-6 (Echo Ridge) to pay costs that are related to <br/>
<a id="pl.210.8"></a><var>210.8</var>redevelopment of parcel numbers 3102921320053, 3102921320054, 3102921320055, <br/>
<a id="pl.210.9"></a><var>210.9</var>3102921320056, 3102921320057, 3102921320058, 3102921320059, 3102921320060, <br/>
<a id="pl.210.10"></a><var>210.10</var>3102921320061, 3102921320062, 3102921320063, 3102921330004, and 3102921330005 <br/>
<a id="pl.210.11"></a><var>210.11</var>(the Tanner's Lake redevelopment site), including without limitation any infrastructure <br/>
<a id="pl.210.12"></a><var>210.12</var>that serves the referenced parcels.<br/>
<a id="pl.210.13"></a><var>210.13</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance by the governing <br/>
<a id="pl.210.14"></a><var>210.14</var>body of the city of Oakdale with the requirements of Minnesota Statutes, section 645.021, <br/>
<a id="pl.210.15"></a><var>210.15</var>subdivision 3.<br/>
<br/>
<a id="bill.8.18.0"></a><a id="pl.210.16"></a><var>210.16</var>    Sec. 18. <b>CITY OF MINNEAPOLIS; STREETCAR FINANCING.</b><br/>
<a id="pl.210.17"></a><var>210.17</var>    Subdivision 1. <b>Definitions.</b> (a) For purposes of this section, the following terms <br/>
<a id="pl.210.18"></a><var>210.18</var>have the meanings given them.<br/>
<a id="pl.210.19"></a><var>210.19</var>(b) "City" means the city of Minneapolis.<br/>
<a id="pl.210.20"></a><var>210.20</var>(c) "County" means Hennepin County.<br/>
<a id="pl.210.21"></a><var>210.21</var>(d) "District" means the areas certified by the city under subdivision 2 for collection <br/>
<a id="pl.210.22"></a><var>210.22</var>of value capture taxes.<br/>
<a id="pl.210.23"></a><var>210.23</var>(e) "Project area" means the area including one city block on either side of a streetcar <br/>
<a id="pl.210.24"></a><var>210.24</var>line designated by the city to serve the downtown and adjacent neighborhoods of the city.<br/>
<a id="pl.210.25"></a><var>210.25</var>    Subd. 2. <b>Authority to establish district.</b> (a) The governing body of the city may, <br/>
<a id="pl.210.26"></a><var>210.26</var>by resolution, establish a value capture district consisting of some or all of the following <br/>
<a id="pl.210.27"></a><var>210.27</var>parcels located within the city, as described in the resolution: 27-029-24-31-0130; <br/>
<a id="pl.210.28"></a><var>210.28</var>22-029-24-41-0008; 22-029-24-44-0038; 22-029-24-44-0035; 22-029-24-44-0036; <br/>
<a id="pl.210.29"></a><var>210.29</var>22-029-24-44-0037; and 22-029-24-42-0051.<br/>
<a id="pl.210.30"></a><var>210.30</var>(b) The city may establish the district and the project area only after holding a public <br/>
<a id="pl.210.31"></a><var>210.31</var>hearing on its proposed creation after publishing notice of the hearing and the proposal at <br/>
<a id="pl.210.32"></a><var>210.32</var>least once not less than ten days nor more than 30 days before the date of the hearing.<br/>
<a id="pl.211.1"></a><var>211.1</var>    Subd. 3. <b>Calculation of value capture district; administrative provisions.</b> (a) If <br/>
<a id="pl.211.2"></a><var>211.2</var>the city establishes a value capture district under subdivision 2, the city shall request the <br/>
<a id="pl.211.3"></a><var>211.3</var>county auditor to certify the district for calculation of the district's tax revenues.<br/>
<a id="pl.211.4"></a><var>211.4</var>(b) For purposes of calculating the tax revenues of the district, the county auditor <br/>
<a id="pl.211.5"></a><var>211.5</var>shall treat the district as if it were a request for certification of a tax increment financing <br/>
<a id="pl.211.6"></a><var>211.6</var>district under the provisions of Minnesota Statutes, section 469.177, subdivision 1, <br/>
<a id="pl.211.7"></a><var>211.7</var>and shall calculate the tax revenues of the district for each year of its duration under <br/>
<a id="pl.211.8"></a><var>211.8</var>subdivision 4 as equaling the amount of tax increment under Minnesota Statutes, section <br/>
<a id="pl.211.9"></a><var>211.9</var>469.177, subdivisions 1, 2, and 3. The city shall provide the county auditor with the <br/>
<a id="pl.211.10"></a><var>211.10</var>necessary information to certify the district, including the option for calculating revenues <br/>
<a id="pl.211.11"></a><var>211.11</var>derived from the areawide tax rate under Minnesota Statutes, chapter 473F.<br/>
<a id="pl.211.12"></a><var>211.12</var>(c) The county auditor shall pay to the city at the same times provided for settlement <br/>
<a id="pl.211.13"></a><var>211.13</var>of taxes and payment of tax increments the tax revenues of the district. The city must use <br/>
<a id="pl.211.14"></a><var>211.14</var>the tax revenues as provided under subdivision 4.<br/>
<a id="pl.211.15"></a><var>211.15</var>    Subd. 4. <b>Permitted uses of district tax revenues.</b> (a) In addition to paying for <br/>
<a id="pl.211.16"></a><var>211.16</var>reasonable administrative costs of the district, the city may spend tax revenues of the <br/>
<a id="pl.211.17"></a><var>211.17</var>district for property acquisition, improvements, and equipment to be used for operations <br/>
<a id="pl.211.18"></a><var>211.18</var>within the project area, along with related costs, for:<br/>
<a id="pl.211.19"></a><var>211.19</var>(1) planning, design, and engineering services related to the construction of the <br/>
<a id="pl.211.20"></a><var>211.20</var>streetcar line;<br/>
<a id="pl.211.21"></a><var>211.21</var>(2) acquiring property for, constructing, and installing a streetcar line;<br/>
<a id="pl.211.22"></a><var>211.22</var>(3) acquiring and maintaining equipment and rolling stock and related facilities, such <br/>
<a id="pl.211.23"></a><var>211.23</var>as maintenance facilities, which need not be located in the project area;<br/>
<a id="pl.211.24"></a><var>211.24</var>(4) acquiring, constructing, or improving transit stations; and<br/>
<a id="pl.211.25"></a><var>211.25</var>(5) acquiring or improving public space, including the construction and installation <br/>
<a id="pl.211.26"></a><var>211.26</var>of improvements to streets and sidewalks, decorative lighting and surfaces, and plantings <br/>
<a id="pl.211.27"></a><var>211.27</var>related to the streetcar line.<br/>
<a id="pl.211.28"></a><var>211.28</var>(b) The city may issue bonds or other obligations under Minnesota Statutes, chapter <br/>
<a id="pl.211.29"></a><var>211.29</var>475, without an election, to fund acquisition or improvement of property of a capital <br/>
<a id="pl.211.30"></a><var>211.30</var>nature authorized by this section, including any costs of issuance. The city may also issue <br/>
<a id="pl.211.31"></a><var>211.31</var>bonds or other obligations to refund those bonds or obligations. Payment of principal <br/>
<a id="pl.211.32"></a><var>211.32</var>and interest on the bonds or other obligations issued under this paragraph is a permitted <br/>
<a id="pl.211.33"></a><var>211.33</var>use of the district's tax revenues.<br/>
<a id="pl.211.34"></a><var>211.34</var>(c) Tax revenues of the district may not be used for the operation of the streetcar line.<br/>
<a id="pl.211.35"></a><var>211.35</var>    Subd. 5. <b>Duration of the district.</b> A district established under this section is limited <br/>
<a id="pl.211.36"></a><var>211.36</var>to the lesser of (1) 25 years of tax revenues, or (2) the time necessary to collect tax revenues <br/>
<a id="pl.212.1"></a><var>212.1</var>equal to the amount of the capital costs permitted under subdivision 4 or the amount needed <br/>
<a id="pl.212.2"></a><var>212.2</var>to pay or defease bonds or other obligations issued under subdivision 4, whichever is later.<br/>
<a id="pl.212.3"></a><var>212.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.8.19.0"></a><a id="pl.212.4"></a><var>212.4</var>    Sec. 19. <b>DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY; TAX </b><br/>
<a id="pl.212.5"></a><var>212.5</var><b>INCREMENT FINANCING DISTRICT.</b><br/>
<a id="pl.212.6"></a><var>212.6</var>    Subdivision 1. <b>Authorization.</b> Notwithstanding the provisions of any other law, <br/>
<a id="pl.212.7"></a><var>212.7</var>the Dakota County Community Development Agency may establish a redevelopment tax <br/>
<a id="pl.212.8"></a><var>212.8</var>increment financing district comprised of the properties that (1) were included in the <br/>
<a id="pl.212.9"></a><var>212.9</var>CDA 10 Robert and South Street district in the city of West St. Paul, and (2) were not <br/>
<a id="pl.212.10"></a><var>212.10</var>decertified before July 1, 2012. The district created under this section terminates no later <br/>
<a id="pl.212.11"></a><var>212.11</var>than December 31, 2028.<br/>
<a id="pl.212.12"></a><var>212.12</var>    Subd. 2. <b>Special rules.</b> The requirements for qualifying a redevelopment district <br/>
<a id="pl.212.13"></a><var>212.13</var>under Minnesota Statutes, section 469.174, subdivision 10, do not apply to parcels located <br/>
<a id="pl.212.14"></a><var>212.14</var>within the district. Minnesota Statutes, section 469.176, subdivision 4j, do not apply to the <br/>
<a id="pl.212.15"></a><var>212.15</var>district. The original tax capacity of the district is $93,239.<br/>
<a id="pl.212.16"></a><var>212.16</var>    Subd. 3. <b>Authorized expenditures.</b> Tax increment from the district may be <br/>
<a id="pl.212.17"></a><var>212.17</var>expended to pay for any eligible activities authorized by Minnesota Statutes, chapter 469, <br/>
<a id="pl.212.18"></a><var>212.18</var>within the redevelopment area that includes the district provided that the boundaries of the <br/>
<a id="pl.212.19"></a><var>212.19</var>redevelopment area may not be expanded to add new area after April 1, 2013. All such <br/>
<a id="pl.212.20"></a><var>212.20</var>expenditures are deemed to be activities within the district under Minnesota Statutes, <br/>
<a id="pl.212.21"></a><var>212.21</var>section 469.1763, subdivisions 2 and 4.<br/>
<a id="pl.212.22"></a><var>212.22</var>    Subd. 4. <b>Adjusted net tax capacity.</b> The captured tax capacity of the district must <br/>
<a id="pl.212.23"></a><var>212.23</var>be included in the adjusted net tax capacity of the city, county, and school district for the <br/>
<a id="pl.212.24"></a><var>212.24</var>purposes of determining local government aid, education aid, and county program aid. <br/>
<a id="pl.212.25"></a><var>212.25</var>The county auditor shall report to the commissioner of revenue the amount of the captured <br/>
<a id="pl.212.26"></a><var>212.26</var>tax capacity for the district at the time the assessment abstracts are filed.<br/>
<a id="pl.212.27"></a><var>212.27</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance by the governing <br/>
<a id="pl.212.28"></a><var>212.28</var>body of the Dakota County Community Development Agency with the requirements of <br/>
<a id="pl.212.29"></a><var>212.29</var>Minnesota Statutes, section 645.021, subdivision 3.<br/>
<br/>
<a id="bill.8.20.0"></a><a id="pl.212.30"></a><var>212.30</var>    Sec. 20. <b>ST. CLOUD; TAX INCREMENT FINANCING.</b><br/>
<a id="pl.212.31"></a><var>212.31</var>    The request for certification of Tax Increment District No. 2, commonly referred to <br/>
<a id="pl.212.32"></a><var>212.32</var>as the Norwest District, in the city of St. Cloud is deemed to have been made on or after <br/>
<a id="pl.212.33"></a><var>212.33</var>August 1, 1979, and before July 1, 1982. Revenues derived from tax increment for that <br/>
<a id="pl.213.1"></a><var>213.1</var>district must be treated for purposes of any law as revenue of a tax increment financing <br/>
<a id="pl.213.2"></a><var>213.2</var>district for which the request for certification was made during that time period.<br/>
<a id="pl.213.3"></a><var>213.3</var><b>EFFECTIVE DATE.</b>This section is effective upon approval by the governing <br/>
<a id="pl.213.4"></a><var>213.4</var>body of the city of St. Cloud and compliance with Minnesota Statutes, section 645.021, <br/>
<a id="pl.213.5"></a><var>213.5</var>subdivision 3.<br/>
<br/>
<a id="bill.8.21.0"></a><a id="pl.213.6"></a><var>213.6</var>    Sec. 21. <b>CITY OF ELY; TAX INCREMENT FINANCING.</b><br/>
<a id="pl.213.7"></a><var>213.7</var>    Subdivision 1. <b>Extension of district.</b> Notwithstanding Minnesota Statutes, section <br/>
<a id="pl.213.8"></a><var>213.8</var>469.176, subdivision 1b, or any other law, the city of Ely may collect tax increment from <br/>
<a id="pl.213.9"></a><var>213.9</var>Tax Increment Financing District No. 1 through December 31, 2021. Increments from the <br/>
<a id="pl.213.10"></a><var>213.10</var>district may only be used to pay binding obligations and administrative expenses.<br/>
<a id="pl.213.11"></a><var>213.11</var>    Subd. 2. <b>Binding obligations.</b> For purposes of this section, "binding obligations" <br/>
<a id="pl.213.12"></a><var>213.12</var>means the binding contractual or debt obligation of Tax Increment Financing District <br/>
<a id="pl.213.13"></a><var>213.13</var>No. 1 entered into before January 1, 2013.<br/>
<a id="pl.213.14"></a><var>213.14</var>    Subd. 3. <b>Expenditures outside district.</b> Notwithstanding Minnesota Statutes, <br/>
<a id="pl.213.15"></a><var>213.15</var>section 469.1763, subdivision 2, the governing body of the city of Ely may elect to <br/>
<a id="pl.213.16"></a><var>213.16</var>transfer revenues derived from its Tax Increment Financing District No. 3 to the tax <br/>
<a id="pl.213.17"></a><var>213.17</var>increment account established under Minnesota Statutes, section 469.177, subdivision <br/>
<a id="pl.213.18"></a><var>213.18</var>5, for Tax Increment Financing District No. 1. The amount that may be transferred is <br/>
<a id="pl.213.19"></a><var>213.19</var>limited to the lesser of:<br/>
<a id="pl.213.20"></a><var>213.20</var>(1) $168,000; or<br/>
<a id="pl.213.21"></a><var>213.21</var>(2) the total amount due on binding obligations and outstanding on that date, less the <br/>
<a id="pl.213.22"></a><var>213.22</var>amount of increment collected by Tax Increment Financing District No. 1 after December <br/>
<a id="pl.213.23"></a><var>213.23</var>31, 2012, and administrative expenses of Tax Increment Financing District No. 1 incurred <br/>
<a id="pl.213.24"></a><var>213.24</var>after December 31, 2012.<br/>
<a id="pl.213.25"></a><var>213.25</var><b>EFFECTIVE DATE.</b>This section is effective upon approval by the governing <br/>
<a id="pl.213.26"></a><var>213.26</var>body of the city of Ely, St. Louis County, and Independent School District No. 696, with <br/>
<a id="pl.213.27"></a><var>213.27</var>the requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and 645.021, <br/>
<a id="pl.213.28"></a><var>213.28</var>subdivision 3. <br/>
<br/>
<a id="bill.8.22.0"></a><a id="pl.213.29"></a><var>213.29</var>    Sec. 22. <b>CITY OF GLENCOE; TAX INCREMENT FINANCING DISTRICT </b><br/>
<a id="pl.213.30"></a><var>213.30</var><b>EXTENSION.</b><br/>
<a id="pl.213.31"></a><var>213.31</var>    Subdivision 1. <b>Duration of district.</b> Notwithstanding the provisions of Minnesota <br/>
<a id="pl.213.32"></a><var>213.32</var>Statutes, section 469.176, subdivision 1b, paragraph (a), clause (4), or any other law to <br/>
<a id="pl.213.33"></a><var>213.33</var>the contrary, the city of Glencoe may collect tax increments from tax increment financing <br/>
<a id="pl.214.1"></a><var>214.1</var>district No. 4 (McLeod County District No. 007) through December 31, 2023, subject to <br/>
<a id="pl.214.2"></a><var>214.2</var>the conditions in subdivision 2.<br/>
<a id="pl.214.3"></a><var>214.3</var>    Subd. 2. <b>Exclusive use of revenues.</b> (a) All tax increments derived from tax <br/>
<a id="pl.214.4"></a><var>214.4</var>increment financing district No. 4 (McLeod County District No. 007) that are collected <br/>
<a id="pl.214.5"></a><var>214.5</var>after December 31, 2013, must be used only to pay debt service on or to defease bonds that <br/>
<a id="pl.214.6"></a><var>214.6</var>were outstanding on January 1, 2013, and that were issued to finance improvements serving:<br/>
<a id="pl.214.7"></a><var>214.7</var>(1) tax increment financing district No. 14 (McLeod County District No. 033) <br/>
<a id="pl.214.8"></a><var>214.8</var>(Downtown);<br/>
<a id="pl.214.9"></a><var>214.9</var>(2) tax increment financing district No. 15 (McLeod County District No. 035) <br/>
<a id="pl.214.10"></a><var>214.10</var>(Industrial Park); and<br/>
<a id="pl.214.11"></a><var>214.11</var>(3) benefited properties as further described in proceedings related to the city's series <br/>
<a id="pl.214.12"></a><var>214.12</var>2007A bonds, dated September 1, 2007, and any bonds issued to refund those bonds.<br/>
<a id="pl.214.13"></a><var>214.13</var>(b) Increment may also be used to pay debt service on or to defease bonds issued to <br/>
<a id="pl.214.14"></a><var>214.14</var>refund the bonds described in paragraph (a), if the refunding bonds do not increase the <br/>
<a id="pl.214.15"></a><var>214.15</var>present value of debt service due on the refunded bonds when the refunding is closed.<br/>
<a id="pl.214.16"></a><var>214.16</var>(c) When the bonds described in paragraphs (a) and (b) have been paid or defeased, <br/>
<a id="pl.214.17"></a><var>214.17</var>the district must be decertified and any remaining increment returned to the city, county, <br/>
<a id="pl.214.18"></a><var>214.18</var>and school district as provided by Minnesota Statutes, section 469.176, subdivision 2, <br/>
<a id="pl.214.19"></a><var>214.19</var>paragraph (c), clause (4).<br/>
<a id="pl.214.20"></a><var>214.20</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance by the governing <br/>
<a id="pl.214.21"></a><var>214.21</var>body of the city of Glencoe, McLeod County, and Independent School District No. 2859 <br/>
<a id="pl.214.22"></a><var>214.22</var>with the requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and <br/>
<a id="pl.214.23"></a><var>214.23</var>645.021, subdivision 3.<br/>
<br/>
<a id="bill.8.23.0"></a><a id="pl.214.24"></a><var>214.24</var>    Sec. 23. <b>CITY OF BLOOMINGTON; TAX INCREMENT FINANCING.</b><br/>
<a id="pl.214.25"></a><var>214.25</var>    Subdivision 1. <b>Addition of property to Tax Increment Financing District </b><br/>
<a id="pl.214.26"></a><var>214.26</var><b>No. 1-G.</b> (a) Notwithstanding the provisions of Minnesota Statutes, section 469.175, <br/>
<a id="pl.214.27"></a><var>214.27</var>subdivision 4, or any other law to the contrary, the governing bodies of the Port Authority <br/>
<a id="pl.214.28"></a><var>214.28</var>of the city of Bloomington and the city of Bloomington may elect to eliminate the real <br/>
<a id="pl.214.29"></a><var>214.29</var>property north of the existing building line on Lot 1, Block 1, Mall of America 7th <br/>
<a id="pl.214.30"></a><var>214.30</var>Addition, exclusive of Lots 2 and 3 from Tax Increment Financing District No. 1-C <br/>
<a id="pl.214.31"></a><var>214.31</var>within Industrial Development District No. 1 Airport South in the city of Bloomington, <br/>
<a id="pl.214.32"></a><var>214.32</var>Minnesota, and expand the boundaries of Tax Increment Financing District No. 1-G <br/>
<a id="pl.214.33"></a><var>214.33</var>to include that property. <br/>
<a id="pl.215.1"></a><var>215.1</var>    (b) If the city elects to transfer parcels under this authority, the county auditor shall <br/>
<a id="pl.215.2"></a><var>215.2</var>transfer the original tax capacity of the affected parcels from Tax Increment Financing <br/>
<a id="pl.215.3"></a><var>215.3</var>District No. 1-C to Tax Increment Financing District No. 1-G.<br/>
<a id="pl.215.4"></a><var>215.4</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance of the governing <br/>
<a id="pl.215.5"></a><var>215.5</var>body of the city of Bloomington with the requirements of Minnesota Statutes, section <br/>
<a id="pl.215.6"></a><var>215.6</var>645.021, subdivision 3.<br/>
<br/>
<a id="bill.8.24.0"></a><a id="pl.215.7"></a><var>215.7</var>    Sec. 24. <b>CITY OF APPLE VALLEY; USE OF TAX INCREMENT FINANCING.</b><br/>
<a id="pl.215.8"></a><var>215.8</var>    Subdivision 1. <b>Developments consisting of building and ancillary facilities.</b><br/>
<a id="pl.215.9"></a><var>215.9</var>    Notwithstanding Minnesota Statutes, section 469.176, subdivisions 4c and 4m, the city of <br/>
<a id="pl.215.10"></a><var>215.10</var>Apple Valley may use tax increment financing to provide improvements, loans, subsidies, <br/>
<a id="pl.215.11"></a><var>215.11</var>grants, interest rate subsidies, or assistance in any form to developments consisting of <br/>
<a id="pl.215.12"></a><var>215.12</var>buildings and ancillary facilities, if all of the following conditions are met:<br/>
<a id="pl.215.13"></a><var>215.13</var>    (1) the city of Apple Valley finds that the project will create or retain jobs in <br/>
<a id="pl.215.14"></a><var>215.14</var>Minnesota, including construction jobs;<br/>
<a id="pl.215.15"></a><var>215.15</var>    (2) the city of Apple Valley finds that construction of the project will not commence <br/>
<a id="pl.215.16"></a><var>215.16</var>before July 1, 2014, without the use of tax increment financing;<br/>
<a id="pl.215.17"></a><var>215.17</var>    (3) the request for certification of the district is made no later than June 30, 2014;<br/>
<a id="pl.215.18"></a><var>215.18</var>    (4) construction of the project begins no later than July 1, 2014; and<br/>
<a id="pl.215.19"></a><var>215.19</var>    (5) for development of housing, construction of the project begins no later than <br/>
<a id="pl.215.20"></a><var>215.20</var>December 31, 2013.<br/>
<a id="pl.215.21"></a><var>215.21</var>    Subd. 2. <b>Extension of authority to spend tax increments.</b> Notwithstanding the <br/>
<a id="pl.215.22"></a><var>215.22</var>time limits in Minnesota Statutes, section 469.176, subdivision 4m, the city of Apple <br/>
<a id="pl.215.23"></a><var>215.23</var>Valley has the authority to spend tax increments under Minnesota Statutes, section <br/>
<a id="pl.215.24"></a><var>215.24</var>469.176, subdivision 4m, until December 31, 2014.<br/>
<a id="pl.215.25"></a><var>215.25</var><b>EFFECTIVE DATE.</b>This section is effective upon approval by the governing <br/>
<a id="pl.215.26"></a><var>215.26</var>body of the city of Apple Valley and timely compliance with Minnesota Statutes, section <br/>
<a id="pl.215.27"></a><var>215.27</var>645.021, subdivision 3.<br/>
<br/>
<a id="bill.8.25.0"></a><a id="pl.215.28"></a><var>215.28</var>    Sec. 25. <b>CITY OF MAPLEWOOD; TAX INCREMENT FINANCING </b><br/>
<a id="pl.215.29"></a><var>215.29</var><b>DISTRICT; SPECIAL RULES.</b><br/>
<a id="pl.215.30"></a><var>215.30</var>    (a) If the city of Maplewood elects, upon the adoption of a tax increment financing <br/>
<a id="pl.215.31"></a><var>215.31</var>plan for a district, the rules under this section apply to one or more redevelopment <br/>
<a id="pl.215.32"></a><var>215.32</var>tax increment financing districts established by the city or the economic development <br/>
<a id="pl.215.33"></a><var>215.33</var>authority of the city. The area within which the redevelopment tax increment districts may <br/>
<a id="pl.216.1"></a><var>216.1</var>be created is parcel 362922240002 (the "parcel") or any replatted parcels constituting a <br/>
<a id="pl.216.2"></a><var>216.2</var>part of the parcel and the adjacent rights-of-way. For purposes of this section, the parcel is  <br/>
<a id="pl.216.3"></a><var>216.3</var>the "3M Renovation and Retention Project Area" or "project area."<br/>
<a id="pl.216.4"></a><var>216.4</var>    (b) The requirements for qualifying redevelopment tax increment districts under <br/>
<a id="pl.216.5"></a><var>216.5</var>Minnesota Statutes, section 469.174, subdivision 10, do not apply to the parcel, which is <br/>
<a id="pl.216.6"></a><var>216.6</var>deemed eligible for inclusion in a redevelopment tax increment district.<br/>
<a id="pl.216.7"></a><var>216.7</var>    (c) The 90 percent rule under Minnesota Statutes, section 469.176, subdivision <br/>
<a id="pl.216.8"></a><var>216.8</var>4j, does not apply to the parcel.<br/>
<a id="pl.216.9"></a><var>216.9</var>    (d) The expenditures outside district rule under Minnesota Statutes, section <br/>
<a id="pl.216.10"></a><var>216.10</var>469.1763, subdivision 2, does not apply; the five-year rule under Minnesota Statutes, <br/>
<a id="pl.216.11"></a><var>216.11</var>section 469.1763, subdivision 3, is extended to ten years; and expenditures must only <br/>
<a id="pl.216.12"></a><var>216.12</var>be made within the project area.<br/>
<a id="pl.216.13"></a><var>216.13</var>    (e) If, after one year from the date of certification of the original net tax capacity <br/>
<a id="pl.216.14"></a><var>216.14</var>of the tax increment district, no demolition, rehabilitation, or renovation of property has <br/>
<a id="pl.216.15"></a><var>216.15</var>been commenced on a parcel located within the tax increment district, no additional tax <br/>
<a id="pl.216.16"></a><var>216.16</var>increment may be taken from that parcel, and the original net tax capacity of the parcel <br/>
<a id="pl.216.17"></a><var>216.17</var>shall be excluded from the original net tax capacity of the tax increment district. If 3M <br/>
<a id="pl.216.18"></a><var>216.18</var>Company subsequently commences demolition, rehabilitation, or renovation, the authority <br/>
<a id="pl.216.19"></a><var>216.19</var>shall certify to the county auditor that the activity has commenced, and the county auditor <br/>
<a id="pl.216.20"></a><var>216.20</var>shall certify the net tax capacity thereof as most recently certified by the commissioner <br/>
<a id="pl.216.21"></a><var>216.21</var>of revenue and add it to the original net tax capacity of the tax increment district. The <br/>
<a id="pl.216.22"></a><var>216.22</var>authority must submit to the county auditor evidence that the required activity has taken <br/>
<a id="pl.216.23"></a><var>216.23</var>place for each parcel in the district.<br/>
<a id="pl.216.24"></a><var>216.24</var>    (f) The authority to approve a tax increment financing plan and to establish a tax  <br/>
<a id="pl.216.25"></a><var>216.25</var>increment financing district under this section expires December 31, 2018.<br/>
<a id="pl.216.26"></a><var>216.26</var><b>EFFECTIVE DATE.</b>This section is effective upon approval by the governing <br/>
<a id="pl.216.27"></a><var>216.27</var>body of the city of Maplewood and upon compliance with Minnesota Statutes, section <br/>
<a id="pl.216.28"></a><var>216.28</var>645.021, subdivision 3.<br/>
<br/>
<a id="bill.9.0.0"></a>

<a id="bill.9.1.0"></a><a id="pl.216.31"></a><var>216.31</var>    Section 1. Minnesota Statutes 2012, section 297A.71, is amended by adding a <br/>
<a id="pl.216.32"></a><var>216.32</var>subdivision to read:<br/>
<a id="pl.216.33"></a><var>216.33</var>    Subd. 48. <b>Construction materials, public infrastructure related to the </b><br/>
<a id="pl.216.34"></a><var>216.34</var><b>destination medical center.</b> Materials and supplies used in, and equipment incorporated <br/>
<a id="pl.217.1"></a><var>217.1</var>into, the construction and improvement of publicly owned buildings and infrastructure <br/>
<a id="pl.217.2"></a><var>217.2</var>included in the development plan adopted under section 469.42, and financed with public <br/>
<a id="pl.217.3"></a><var>217.3</var>funds, are exempt.<br/>
<a id="pl.217.4"></a><var>217.4</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.217.5"></a><var>217.5</var>June 30, 2015.<br/>
<br/>
<a id="bill.9.2.0"></a><a id="pl.217.6"></a><var>217.6</var>    Sec. 2. <b>[469.40] DEFINITIONS.</b><br/>
<a id="pl.217.7"></a><var>217.7</var>    Subdivision 1. <b>Application.</b> For the purposes of section 469.40 to 469.46, the terms <br/>
<a id="pl.217.8"></a><var>217.8</var>defined in this section have the meanings given them.<br/>
<a id="pl.217.9"></a><var>217.9</var>    Subd. 2. <b>Authority.</b> "Authority" means the Destination Medical Center Authority <br/>
<a id="pl.217.10"></a><var>217.10</var>established in section 469.41.<br/>
<a id="pl.217.11"></a><var>217.11</var>    Subd. 3. <b>Board.</b> "Board" means the governing body of the Destination Medical <br/>
<a id="pl.217.12"></a><var>217.12</var>Center Authority.<br/>
<a id="pl.217.13"></a><var>217.13</var>    Subd. 4. <b>City.</b> "City" means the city of Rochester.<br/>
<a id="pl.217.14"></a><var>217.14</var>    Subd. 5. <b>County.</b> "County" means Olmsted County.<br/>
<a id="pl.217.15"></a><var>217.15</var>    Subd. 6. <b>Destination medical center development district.</b> "Destination medical <br/>
<a id="pl.217.16"></a><var>217.16</var>center development district" or "development district" means one or more contiguous or <br/>
<a id="pl.217.17"></a><var>217.17</var>noncontiguous geographic area in the city identified in the adopted authority development <br/>
<a id="pl.217.18"></a><var>217.18</var>plan in which public infrastructure projects are implemented.<br/>
<a id="pl.217.19"></a><var>217.19</var>    Subd. 7. <b>Development plan.</b> "Development plan" means the plan adopted by the <br/>
<a id="pl.217.20"></a><var>217.20</var>authority under section 469.46.<br/>
<a id="pl.217.21"></a><var>217.21</var>    Subd. 8. <b>Medical business entity.</b> "Medical business entity" means a medical <br/>
<a id="pl.217.22"></a><var>217.22</var>business entity with its principal place of business in the city that, as of the effective date <br/>
<a id="pl.217.23"></a><var>217.23</var>of this section, together with all business entities of which it is the sole member or sole <br/>
<a id="pl.217.24"></a><var>217.24</var>shareholder, collectively employs more than 30,000 persons in the state.<br/>
<a id="pl.217.25"></a><var>217.25</var>    Subd. 9. <b>Public infrastructure project.</b> (a) "Public infrastructure project" means <br/>
<a id="pl.217.26"></a><var>217.26</var>a project financed in part or whole with public money in order to support the medical <br/>
<a id="pl.217.27"></a><var>217.27</var>business entity's development plans, as identified in the adopted development plan. A <br/>
<a id="pl.217.28"></a><var>217.28</var>project may be to:<br/>
<a id="pl.217.29"></a><var>217.29</var>(1) acquire real property and other assets associated with the real property;<br/>
<a id="pl.217.30"></a><var>217.30</var>(2) demolish, repair, or rehabilitate buildings;<br/>
<a id="pl.217.31"></a><var>217.31</var>(3) remediate land and buildings as required to prepare the property for acquisition <br/>
<a id="pl.217.32"></a><var>217.32</var>or development;<br/>
<a id="pl.217.33"></a><var>217.33</var>(4) install, construct, or reconstruct elements of public buildings or other <br/>
<a id="pl.217.34"></a><var>217.34</var>infrastructure required to support the overall development of the destination medical center <br/>
<a id="pl.217.35"></a><var>217.35</var>development district, including, but not limited to, streets, roadways, utilities systems <br/>
<a id="pl.218.1"></a><var>218.1</var>and related facilities, utility relocations and replacements, network and communication <br/>
<a id="pl.218.2"></a><var>218.2</var>systems, streetscape improvements, drainage systems, sewer and water systems, subgrade <br/>
<a id="pl.218.3"></a><var>218.3</var>structures and associated improvements, landscaping, façade construction and restoration, <br/>
<a id="pl.218.4"></a><var>218.4</var>wayfinding and signage, and other components of community infrastructure;<br/>
<a id="pl.218.5"></a><var>218.5</var>(5) acquire, construct or reconstruct, and equip parking facilities and other facilities <br/>
<a id="pl.218.6"></a><var>218.6</var>to encourage intermodal transportation and public transit;<br/>
<a id="pl.218.7"></a><var>218.7</var>(6) install, construct or reconstruct, furnish, and equip parks, cultural, and <br/>
<a id="pl.218.8"></a><var>218.8</var>recreational facilities, facilities to promote tourism and hospitality, conferencing and <br/>
<a id="pl.218.9"></a><var>218.9</var>conventions, broadcast and related multimedia infrastructure;<br/>
<a id="pl.218.10"></a><var>218.10</var>(7) make related site improvements, including, without limitation, excavation, earth <br/>
<a id="pl.218.11"></a><var>218.11</var>retention, soil stabilization and correction, site improvements to support the destination <br/>
<a id="pl.218.12"></a><var>218.12</var>medical center development district; <br/>
<a id="pl.218.13"></a><var>218.13</var>(8) prepare land for private development and to sell or lease land; and<br/>
<a id="pl.218.14"></a><var>218.14</var>    (9) to construct and equip all or a portion of one or more suitable structures on land <br/>
<a id="pl.218.15"></a><var>218.15</var>owned by the authority for sale or lease of private development; provided, however, that <br/>
<a id="pl.218.16"></a><var>218.16</var>the portion of any such structure directly financed as a project cost must not be sold or <br/>
<a id="pl.218.17"></a><var>218.17</var>leased to a medical business entity.<br/>
<a id="pl.218.18"></a><var>218.18</var>    (b) A public infrastructure project is not a business subsidy under section 116J.993.<br/>
<a id="pl.218.19"></a><var>218.19</var>(c) A public infrastructure project is subject to the requirements of sections 177.30 <br/>
<a id="pl.218.20"></a><var>218.20</var>and 177.41 to 177.44.<br/>
<br/>
<a id="bill.9.3.0"></a><a id="pl.218.21"></a><var>218.21</var>    Sec. 3. <b>[469.41] AUTHORITY ESTABLISHMENT; BOARD MEMBERS; </b><br/>
<a id="pl.218.22"></a><var>218.22</var><b>TERMS, VACANCIES, PAY, CONTINUITY.</b><br/>
<a id="pl.218.23"></a><var>218.23</var>    Subdivision 1. <b>Destination Medical Center Authority; establishment.</b> The <br/>
<a id="pl.218.24"></a><var>218.24</var>Destination Medical Center Authority is established. The authority's governing board <br/>
<a id="pl.218.25"></a><var>218.25</var>shall have eight members, and a quorum of the board consists of at least six members. <br/>
<a id="pl.218.26"></a><var>218.26</var>Four members are appointed by the governor and confirmed by the senate. One member <br/>
<a id="pl.218.27"></a><var>218.27</var>shall represent the county and is appointed by the county board of commissioners. Two <br/>
<a id="pl.218.28"></a><var>218.28</var>members shall represent the city and are appointed by the city council. One member <br/>
<a id="pl.218.29"></a><var>218.29</var>shall represent the medical business entity and is appointed by the board of directors of <br/>
<a id="pl.218.30"></a><var>218.30</var>the medical business entity. A member appointed by the governor must not be a resident <br/>
<a id="pl.218.31"></a><var>218.31</var>of Rochester. A member must not have a direct or indirect financial interest in the Mayo <br/>
<a id="pl.218.32"></a><var>218.32</var>Clinic, its subsidiaries, or affiliated businesses, the Destination Medical Center, or any <br/>
<a id="pl.218.33"></a><var>218.33</var>projects authorized by or under consideration by the authority, except for the member. <br/>
<a id="pl.218.34"></a><var>218.34</var>This provision does not apply to the member appointed by the medical business entity. <br/>
<a id="pl.219.1"></a><var>219.1</var>    Subd. 2. <b>Terms; vacancies.</b>  The initial eight members shall be appointed by the <br/>
<a id="pl.219.2"></a><var>219.2</var>first Monday in January 2014. Except as provided in this subdivision, a member's term is <br/>
<a id="pl.219.3"></a><var>219.3</var>six years. The governor shall make replacement appointments for two of the governor's <br/>
<a id="pl.219.4"></a><var>219.4</var>appointees by the first Monday in January 2017 and every six years thereafter. The city <br/>
<a id="pl.219.5"></a><var>219.5</var>council shall make one replacement appointment and the county board of commissioners <br/>
<a id="pl.219.6"></a><var>219.6</var>shall make its replacement appointment by the first Monday in January 2017 and every six <br/>
<a id="pl.219.7"></a><var>219.7</var>years thereafter. The medical business entity shall make its replacement appointment by <br/>
<a id="pl.219.8"></a><var>219.8</var>the first Monday in January 2020 and every six years thereafter. Each member shall serve <br/>
<a id="pl.219.9"></a><var>219.9</var>until a replacement for the member's seat on the board has been confirmed, including <br/>
<a id="pl.219.10"></a><var>219.10</var>confirmation by the senate in the case of the governor's appointments. When a member <br/>
<a id="pl.219.11"></a><var>219.11</var>resigns or is removed for cause, the person or entity who appointed such member shall <br/>
<a id="pl.219.12"></a><var>219.12</var>appoint a member to fill the vacancy for the balance of the member's term shall be filled <br/>
<a id="pl.219.13"></a><var>219.13</var>subject to the same confirmation required for an appointment for a full term as provided in <br/>
<a id="pl.219.14"></a><var>219.14</var>subdivision 1.<br/>
<a id="pl.219.15"></a><var>219.15</var>    Subd. 3. <b>Chair.</b> The governor shall appoint a chair from the board's membership, <br/>
<a id="pl.219.16"></a><var>219.16</var>and the chair shall convene the first meeting within two months of senate confirmation of <br/>
<a id="pl.219.17"></a><var>219.17</var>the governor's appointed members.<br/>
<a id="pl.219.18"></a><var>219.18</var>    Subd. 4. <b>Pay.</b> Members must be compensated as provided in section 15.0575, <br/>
<a id="pl.219.19"></a><var>219.19</var>subdivision 3, for each regular or special authority board meeting attended. In addition, <br/>
<a id="pl.219.20"></a><var>219.20</var>the board members may be reimbursed for actual expenses incurred in doing official <br/>
<a id="pl.219.21"></a><var>219.21</var>business of the authority. All money paid for compensation or reimbursement must be <br/>
<a id="pl.219.22"></a><var>219.22</var>paid out of the authority's budget.<br/>
<a id="pl.219.23"></a><var>219.23</var>    Subd. 5. <b>Removal for cause.</b> A member may be removed by the board for <br/>
<a id="pl.219.24"></a><var>219.24</var>inefficiency, neglect of duty, or misconduct in office. A member may be removed only <br/>
<a id="pl.219.25"></a><var>219.25</var>after a hearing of the board. A copy of the charges must be given to the board member at <br/>
<a id="pl.219.26"></a><var>219.26</var>least ten days before the hearing. The board member must be given an opportunity to be <br/>
<a id="pl.219.27"></a><var>219.27</var>heard in person or by counsel at the hearing. When written charges have been submitted <br/>
<a id="pl.219.28"></a><var>219.28</var>against a board member, the board may temporarily suspend the member. If the board finds <br/>
<a id="pl.219.29"></a><var>219.29</var>that those charges have not been substantiated, the board member shall be immediately <br/>
<a id="pl.219.30"></a><var>219.30</var>reinstated. If a board member is removed, a record of the proceedings, together with the <br/>
<a id="pl.219.31"></a><var>219.31</var>charges and findings, shall be filed with the office of the appointing authority.<br/>
<a id="pl.219.32"></a><var>219.32</var>    Subd. 6. <b>Sunset.</b> The authority shall sunset December 31, 2049. When the authority <br/>
<a id="pl.219.33"></a><var>219.33</var>sunsets, all right, title, and interest to all assets held by the authority are transferred or <br/>
<a id="pl.219.34"></a><var>219.34</var>assigned to the city of Rochester.<br/>
<br/>
<a id="bill.9.4.0"></a><a id="pl.219.35"></a><var>219.35</var>    Sec. 4. <b>[469.42] CHARACTERISTICS AND JURISDICTION.</b><br/>
<a id="pl.220.1"></a><var>220.1</var>    Subdivision 1. <b>Public body characteristics.</b> The authority is a body politic and <br/>
<a id="pl.220.2"></a><var>220.2</var>corporate and a political subdivision of the state, with the right to sue and be sued in <br/>
<a id="pl.220.3"></a><var>220.3</var>its own name.<br/>
<a id="pl.220.4"></a><var>220.4</var>    Subd. 2. <b>Boundaries.</b> The boundary for activities and the use of the powers of <br/>
<a id="pl.220.5"></a><var>220.5</var>the authority must be within a medical center development district. The authority also <br/>
<a id="pl.220.6"></a><var>220.6</var>has the power to finance activities outside of a medical center development district but <br/>
<a id="pl.220.7"></a><var>220.7</var>within the county, if necessary; provided, however, that the financing of activities outside <br/>
<a id="pl.220.8"></a><var>220.8</var>of a medical center development district but within the county must be included in the <br/>
<a id="pl.220.9"></a><var>220.9</var>development plan and must be approved by, and subject to the planning, zoning, sanitary <br/>
<a id="pl.220.10"></a><var>220.10</var>and building laws, ordinances, regulations, and land use plans applicable to, the city, <br/>
<a id="pl.220.11"></a><var>220.11</var>county, or town in which such activities are undertaken.<br/>
<br/>
<a id="bill.9.5.0"></a><a id="pl.220.12"></a><var>220.12</var>    Sec. 5. <b>[469.43] OFFICERS; DUTIES; ORGANIZATIONAL MATTERS.</b><br/>
<a id="pl.220.13"></a><var>220.13</var>    Subdivision 1. <b>Bylaws, rules, seal.</b> The authority may adopt bylaws and rules of <br/>
<a id="pl.220.14"></a><var>220.14</var>procedure and may adopt an official seal.<br/>
<a id="pl.220.15"></a><var>220.15</var>    Subd. 2. <b>Officers.</b> The authority shall annually elect a treasurer. The authority shall <br/>
<a id="pl.220.16"></a><var>220.16</var>appoint a secretary and assistant treasurer. The secretary and assistant treasurer need <br/>
<a id="pl.220.17"></a><var>220.17</var>not, but may, be members of the board.<br/>
<a id="pl.220.18"></a><var>220.18</var>    Subd. 3. <b>Duties and powers.</b> The officers have the usual duties and powers of their <br/>
<a id="pl.220.19"></a><var>220.19</var>offices. They may be given other duties and powers by the authority.<br/>
<a id="pl.220.20"></a><var>220.20</var>    Subd. 4. <b>Treasurer's duties.</b> The treasurer:<br/>
<a id="pl.220.21"></a><var>220.21</var>(1) shall receive and is responsible for authority money;<br/>
<a id="pl.220.22"></a><var>220.22</var>(2) is responsible for the acts of the assistant treasurer;<br/>
<a id="pl.220.23"></a><var>220.23</var>(3) shall disburse authority money by check or electronic procedures;<br/>
<a id="pl.220.24"></a><var>220.24</var>(4) shall keep an account of the source of all receipts, and the nature, purpose, and <br/>
<a id="pl.220.25"></a><var>220.25</var>authority of all disbursements; and<br/>
<a id="pl.220.26"></a><var>220.26</var>(5) shall file the authority's detailed financial statement with its secretary at least <br/>
<a id="pl.220.27"></a><var>220.27</var>once a year at times set by the authority.<br/>
<a id="pl.220.28"></a><var>220.28</var>    Subd. 5. <b>Secretary.</b> The secretary shall perform duties as required by the board.<br/>
<a id="pl.220.29"></a><var>220.29</var>    Subd. 6. <b>Assistant treasurer.</b> The assistant treasurer has the powers and duties of <br/>
<a id="pl.220.30"></a><var>220.30</var>the treasurer if the treasurer is absent or disabled.<br/>
<a id="pl.220.31"></a><var>220.31</var>    Subd. 7. <b>Treasurer's bond.</b> The treasurer shall give bond to the state conditioned <br/>
<a id="pl.220.32"></a><var>220.32</var>for the faithful discharge of official duties. The bond must be approved as to form and <br/>
<a id="pl.220.33"></a><var>220.33</var>surety by the authority and filed with its secretary. The bond must be for twice the amount <br/>
<a id="pl.220.34"></a><var>220.34</var>of money likely to be on hand at any one time, as determined at least annually by the <br/>
<a id="pl.220.35"></a><var>220.35</var>authority, except that the bond must not exceed $300,000.<br/>
<a id="pl.221.1"></a><var>221.1</var>    Subd. 8. <b>Public money.</b> Authority money is public money.<br/>
<a id="pl.221.2"></a><var>221.2</var>    Subd. 9. <b>Checks.</b> An authority check must be signed by the treasurer and by one <br/>
<a id="pl.221.3"></a><var>221.3</var>other officer named by the authority in a resolution. The check must state the name of the <br/>
<a id="pl.221.4"></a><var>221.4</var>payee and the nature of the claim for which the check is issued.<br/>
<a id="pl.221.5"></a><var>221.5</var>    Subd. 10. <b>Financial statements; filing with state auditor.</b> The financial statements <br/>
<a id="pl.221.6"></a><var>221.6</var>of the authority must be prepared, audited, filed, and published or posted in the manner <br/>
<a id="pl.221.7"></a><var>221.7</var>required for the financial statements of the city. The authority shall employ a certified <br/>
<a id="pl.221.8"></a><var>221.8</var>public accountant to annually examine and audit its books. The report of the exam and audit <br/>
<a id="pl.221.9"></a><var>221.9</var>must be filed with the state auditor by June 30 of each year. The state auditor shall review <br/>
<a id="pl.221.10"></a><var>221.10</var>the report and may accept it or, in the public interest, audit the books of the authority.<br/>
<a id="pl.221.11"></a><var>221.11</var>    Subd. 11. <b>Meetings.</b> Except at otherwise provided in this chapter, the authority is <br/>
<a id="pl.221.12"></a><var>221.12</var>subject to chapters 13 and 13D.<br/>
<br/>
<a id="bill.9.6.0"></a><a id="pl.221.13"></a><var>221.13</var>    Sec. 6. <b>[469.44] DEPOSITORIES; DEFAULT; COLLATERAL.</b><br/>
<a id="pl.221.14"></a><var>221.14</var>    Subdivision 1. <b>Named; bond.</b> Every two years the authority shall name national <br/>
<a id="pl.221.15"></a><var>221.15</var>or state banks within the state as depositories. Before acting as a depository, a named <br/>
<a id="pl.221.16"></a><var>221.16</var>bank shall give the authority a bond approved as to form and surety by the authority. <br/>
<a id="pl.221.17"></a><var>221.17</var>The bond must be conditioned for the safekeeping and prompt repayment of deposits. <br/>
<a id="pl.221.18"></a><var>221.18</var>The amount of the bond must be at least equal to the maximum sum expected to be on <br/>
<a id="pl.221.19"></a><var>221.19</var>deposit at any one time.<br/>
<a id="pl.221.20"></a><var>221.20</var>    Subd. 2. <b>Default; collateral.</b> When authority funds are deposited by the treasurer <br/>
<a id="pl.221.21"></a><var>221.21</var>in a bonded depository, the treasurer and the surety on the treasurer's official bond are <br/>
<a id="pl.221.22"></a><var>221.22</var>exempt from liability for the loss of the deposits because of the failure, bankruptcy, or any <br/>
<a id="pl.221.23"></a><var>221.23</var>other act or default of the depository. The authority may accept assignments of collateral <br/>
<a id="pl.221.24"></a><var>221.24</var>from its depository to secure deposits in the same manner as assignments of collateral are <br/>
<a id="pl.221.25"></a><var>221.25</var>permitted for a government entity under section 118A.03.<br/>
<br/>
<a id="bill.9.7.0"></a><a id="pl.221.26"></a><var>221.26</var>    Sec. 7. <b>[469.45] TAX LEVIES; CITY OR COUNTY APPROPRIATIONS; </b><br/>
<a id="pl.221.27"></a><var>221.27</var><b>OTHER FISCAL MATTERS.</b><br/>
<a id="pl.221.28"></a><var>221.28</var>    Subdivision 1. <b>Obligations.</b> The authority must not levy a tax or special assessment, <br/>
<a id="pl.221.29"></a><var>221.29</var>pledge the credit of the state or the state's municipal corporations or other subdivisions, or <br/>
<a id="pl.221.30"></a><var>221.30</var>incur an obligation enforceable on property not owned by the authority.<br/>
<a id="pl.221.31"></a><var>221.31</var>    Subd. 2. <b>Budget.</b> The authority shall annually send its budget to the city, county, <br/>
<a id="pl.221.32"></a><var>221.32</var>governor, and the chair and ranking minority members of the house and senate committees <br/>
<a id="pl.221.33"></a><var>221.33</var>with jurisdiction over taxation.<br/>
<a id="pl.222.1"></a><var>222.1</var>    Subd. 3. <b>Fiscal year.</b> The fiscal year of the authority may be established by the <br/>
<a id="pl.222.2"></a><var>222.2</var>authority.<br/>
<a id="pl.222.3"></a><var>222.3</var>    Subd. 4. <b>City or county appropriations; levy.</b> The city council of the city or the <br/>
<a id="pl.222.4"></a><var>222.4</var>county board of the county may appropriate money for the use of the authority and may <br/>
<a id="pl.222.5"></a><var>222.5</var>levy the amount of its appropriation in its general levy. The levy is a special levy within <br/>
<a id="pl.222.6"></a><var>222.6</var>the meaning of, and as if specifically enumerated in, section 275.70, subdivision 5.<br/>
<a id="pl.222.7"></a><var>222.7</var>    Subd. 5. <b>Outside budget laws.</b> Money appropriated to the authority by the city <br/>
<a id="pl.222.8"></a><var>222.8</var>or county under this section is not subject to a budget law that applies to the city or <br/>
<a id="pl.222.9"></a><var>222.9</var>county, respectively.<br/>
<a id="pl.222.10"></a><var>222.10</var>    Subd. 6. <b>City or county payment.</b> The city or county treasurer shall pay money <br/>
<a id="pl.222.11"></a><var>222.11</var>appropriated by a city or county under subdivision 4 when and in the manner directed by <br/>
<a id="pl.222.12"></a><var>222.12</var>the city council or county board, as applicable.<br/>
<a id="pl.222.13"></a><var>222.13</var>    Subd. 7. <b>Local government tax base not reduced.</b> Nothing in sections 469.41 to <br/>
<a id="pl.222.14"></a><var>222.14</var>469.52 reduces the tax base or affects the taxes due and payable to the city, the county, <br/>
<a id="pl.222.15"></a><var>222.15</var>or any school district within the boundaries of the city, including, without limitation, the <br/>
<a id="pl.222.16"></a><var>222.16</var>city's 0.5 percent local sales tax.<br/>
<br/>
<a id="bill.9.8.0"></a><a id="pl.222.17"></a><var>222.17</var>    Sec. 8. <b>[469.451] COUNTY TAX AUTHORITY.</b><br/>
<a id="pl.222.18"></a><var>222.18</var>(a) Notwithstanding sections 297A.99, 297A.993, and 477A.016, or any other <br/>
<a id="pl.222.19"></a><var>222.19</var>contrary provision of law, ordinance, or charter, and in addition to any taxes the county <br/>
<a id="pl.222.20"></a><var>222.20</var>may impose under another law or statute, the board of commissioners of Olmsted County <br/>
<a id="pl.222.21"></a><var>222.21</var>may, by resolution, impose a transportation tax of up to one quarter of one percent on <br/>
<a id="pl.222.22"></a><var>222.22</var>retail sales and uses taxable under chapter 297A. The provisions of section 297A.99, <br/>
<a id="pl.222.23"></a><var>222.23</var>subdivisions 4 to 13, govern the imposition, administration, collection, and enforcement <br/>
<a id="pl.222.24"></a><var>222.24</var>of the tax authorized under this paragraph.<br/>
<a id="pl.222.25"></a><var>222.25</var>(b) The board of commissioners of Olmsted County may, by resolution, levy an <br/>
<a id="pl.222.26"></a><var>222.26</var>annual wheelage tax of up to $10 on each motor vehicle kept in the county when not in <br/>
<a id="pl.222.27"></a><var>222.27</var>operation which is subject to annual registration and taxation under chapter 168, for <br/>
<a id="pl.222.28"></a><var>222.28</var>transportation projects within the county. The wheelage tax shall not be imposed on the <br/>
<a id="pl.222.29"></a><var>222.29</var>vehicles exempt from wheelage tax under section 163.051, subdivision 1. The board <br/>
<a id="pl.222.30"></a><var>222.30</var>by resolution may provide for collection of the wheelage tax by county officials or it <br/>
<a id="pl.222.31"></a><var>222.31</var>may request that the tax be collected by the state registrar on behalf of the county. The <br/>
<a id="pl.222.32"></a><var>222.32</var>provisions of section 163.051, subdivisions 2, 2a, 3, and 7, shall govern the administration, <br/>
<a id="pl.222.33"></a><var>222.33</var>collection, and enforcement of the tax authorized under this paragraph. The tax authorized <br/>
<a id="pl.222.34"></a><var>222.34</var>under this section is in addition to any tax the county may be authorized to impose under <br/>
<a id="pl.222.35"></a><var>222.35</var>section 163.051, but until January 1, 2018, the county tax imposed under this paragraph, <br/>
<a id="pl.223.1"></a><var>223.1</var>in combination with any tax imposed under section 163.051, must equal the specified <br/>
<a id="pl.223.2"></a><var>223.2</var>rate under section 163.051.<br/>
<a id="pl.223.3"></a><var>223.3</var>(c) The proceeds of the tax imposed under paragraph (a), less refunds and costs of <br/>
<a id="pl.223.4"></a><var>223.4</var>collection, must be first used by the county to meet its share of obligations for financing <br/>
<a id="pl.223.5"></a><var>223.5</var>transportation infrastructure related to the public infrastructure projects contained in <br/>
<a id="pl.223.6"></a><var>223.6</var>the development plan, including any associated financing costs. Revenues collected in <br/>
<a id="pl.223.7"></a><var>223.7</var>any calendar year in excess of the county obligation to pay for projects contained in the <br/>
<a id="pl.223.8"></a><var>223.8</var>development plan may be retained by the county and used for funding other transportation <br/>
<a id="pl.223.9"></a><var>223.9</var>projects, including roads and bridges, airport and transportation improvements.<br/>
<a id="pl.223.10"></a><var>223.10</var>(d) Any taxes imposed under paragraph (a), expire December 31, 2046, or at an <br/>
<a id="pl.223.11"></a><var>223.11</var>earlier time if approved by resolution of the county board of commissioners. However, <br/>
<a id="pl.223.12"></a><var>223.12</var>the taxes may not terminate before the county board of commissioners determines that <br/>
<a id="pl.223.13"></a><var>223.13</var>revenues from these taxes and any other revenue source the county dedicates are sufficient <br/>
<a id="pl.223.14"></a><var>223.14</var>to pay the county share of transit project costs and associated financing costs under the <br/>
<a id="pl.223.15"></a><var>223.15</var>adopted development plan.<br/>
<br/>
<a id="bill.9.9.0"></a><a id="pl.223.16"></a><var>223.16</var>    Sec. 9. <b>[469.46] DEVELOPMENT PLAN.</b><br/>
<a id="pl.223.17"></a><var>223.17</var>    Subdivision 1. <b>Development plan; adoption by authority; notice; findings.</b> (a) <br/>
<a id="pl.223.18"></a><var>223.18</var>The authority shall prepare and adopt a development plan. The authority must hold a <br/>
<a id="pl.223.19"></a><var>223.19</var>public hearing before adopting a development plan. At least 60 days before the hearing, <br/>
<a id="pl.223.20"></a><var>223.20</var>the authority shall make copies of the proposed plan available to the public at the authority <br/>
<a id="pl.223.21"></a><var>223.21</var>and city offices during normal business hours, on the authority's and city's Web site, <br/>
<a id="pl.223.22"></a><var>223.22</var>and as otherwise determined appropriate by the authority. At least ten days before the <br/>
<a id="pl.223.23"></a><var>223.23</var>hearing, the authority shall publish notice of the hearing in a daily newspaper of general <br/>
<a id="pl.223.24"></a><var>223.24</var>circulation in the city. The development plan may not be adopted unless the authority <br/>
<a id="pl.223.25"></a><var>223.25</var>finds by resolution that:<br/>
<a id="pl.223.26"></a><var>223.26</var>(1) the plan provides an outline for the development of the city as a destination <br/>
<a id="pl.223.27"></a><var>223.27</var>medical center, and the plan is sufficiently complete, including the identification of planned <br/>
<a id="pl.223.28"></a><var>223.28</var>and anticipated projects, to indicate its relationship to definite state and local objectives;<br/>
<a id="pl.223.29"></a><var>223.29</var>(2) the proposed development affords maximum opportunity, consistent with the <br/>
<a id="pl.223.30"></a><var>223.30</var>needs of the city, county, and state, for the development of the city by private enterprise <br/>
<a id="pl.223.31"></a><var>223.31</var>as a destination medical center;<br/>
<a id="pl.223.32"></a><var>223.32</var>(3) the proposed development conforms to the general plan for the development of <br/>
<a id="pl.223.33"></a><var>223.33</var>the city and is consistent with the city comprehensive plan;<br/>
<a id="pl.223.34"></a><var>223.34</var>(4) the plan includes:<br/>
<a id="pl.224.1"></a><var>224.1</var>(i) strategic planning consistent with a destination medical center in the core areas of <br/>
<a id="pl.224.2"></a><var>224.2</var>commercial research and technology, learning environment, hospitality and convention, <br/>
<a id="pl.224.3"></a><var>224.3</var>sports and recreation, livable communities, including mixed-use urban development <br/>
<a id="pl.224.4"></a><var>224.4</var>and neighborhood residential development, retail/dining/entertainment, and health and <br/>
<a id="pl.224.5"></a><var>224.5</var>wellness;<br/>
<a id="pl.224.6"></a><var>224.6</var>(ii) estimates of short- and long-range fiscal and economic impacts;<br/>
<a id="pl.224.7"></a><var>224.7</var>(iii) a framework to identify and prioritize short- and long-term public investment <br/>
<a id="pl.224.8"></a><var>224.8</var>and public infrastructure project development and to facilitate private investment and <br/>
<a id="pl.224.9"></a><var>224.9</var>development;<br/>
<a id="pl.224.10"></a><var>224.10</var>(iv) land use planning;<br/>
<a id="pl.224.11"></a><var>224.11</var>(v) transportation and transit planning;<br/>
<a id="pl.224.12"></a><var>224.12</var>(vi) operational planning required to support the medical center development <br/>
<a id="pl.224.13"></a><var>224.13</var>district; and<br/>
<a id="pl.224.14"></a><var>224.14</var>(vii) ongoing market research plans.<br/>
<a id="pl.224.15"></a><var>224.15</var>(b) The identification of planned and anticipated projects under paragraph (a), clause <br/>
<a id="pl.224.16"></a><var>224.16</var>(1), must give priority consideration to projects that will pay wages at least equal to the <br/>
<a id="pl.224.17"></a><var>224.17</var>basic cost of living wage as calculated by the commissioner of employment and economic <br/>
<a id="pl.224.18"></a><var>224.18</var>development for the county in which the project is located. The calculation of the basic <br/>
<a id="pl.224.19"></a><var>224.19</var>cost of living wage shall be done as provided for under Minnesota Statutes, section <br/>
<a id="pl.224.20"></a><var>224.20</var>116J.013, if enacted by the 2013 legislature.<br/>
<a id="pl.224.21"></a><var>224.21</var>    Subd. 2. <b>Development plan; review by city; finding.</b> After adoption by the <br/>
<a id="pl.224.22"></a><var>224.22</var>authority under subdivision 1, the authority shall submit the development plan to the city. <br/>
<a id="pl.224.23"></a><var>224.23</var>The city shall review the development plan and make its finding regarding consistency <br/>
<a id="pl.224.24"></a><var>224.24</var>with the adopted comprehensive plan of the city within 60 days of submission of <br/>
<a id="pl.224.25"></a><var>224.25</var>the adopted development plan. If the city determines, by written resolution, that the <br/>
<a id="pl.224.26"></a><var>224.26</var>development plan is not consistent with the adopted comprehensive plan of the city, the <br/>
<a id="pl.224.27"></a><var>224.27</var>resolution shall state the reasons and supporting facts for each determination, and the city <br/>
<a id="pl.224.28"></a><var>224.28</var>shall transmit the resolution to the authority within seven days of adoption.<br/>
<a id="pl.224.29"></a><var>224.29</var>    Subd. 3. <b>Modification of development plan.</b> The authority may modify the <br/>
<a id="pl.224.30"></a><var>224.30</var>development plan at any time. The authority must update the development plan not less <br/>
<a id="pl.224.31"></a><var>224.31</var>than every five years. A modification or update under this subdivision must be adopted by <br/>
<a id="pl.224.32"></a><var>224.32</var>the authority upon the notice and after the public hearing and findings required for the <br/>
<a id="pl.224.33"></a><var>224.33</var>original adoption of the development plan.<br/>
<a id="pl.224.34"></a><var>224.34</var>    Subd. 4. <b>Authority consultant.</b> (a) The authority shall engage a business entity <br/>
<a id="pl.224.35"></a><var>224.35</var>consultant to provide experience and expertise in developing the destination medical center. <br/>
<a id="pl.224.36"></a><var>224.36</var>The consultant shall assist the authority in preparing the development plan and provide <br/>
<a id="pl.225.1"></a><var>225.1</var>services to assist the authority or city in implementing, consistent with the development <br/>
<a id="pl.225.2"></a><var>225.2</var>plan. The consultant shall work with the city and the medical business entity on the goals, <br/>
<a id="pl.225.3"></a><var>225.3</var>objectives, and strategies in the development plan, including, but not limited to:<br/>
<a id="pl.225.4"></a><var>225.4</var>(1) developing and updating the criteria for evaluating and underwriting <br/>
<a id="pl.225.5"></a><var>225.5</var>development proposals;<br/>
<a id="pl.225.6"></a><var>225.6</var>(2) implementing the development plan, including soliciting and evaluating <br/>
<a id="pl.225.7"></a><var>225.7</var>proposals for development and evaluating and making recommendations to the authority <br/>
<a id="pl.225.8"></a><var>225.8</var>and the city regarding those proposals;<br/>
<a id="pl.225.9"></a><var>225.9</var>(3) providing transactional services in connection with approved projects;<br/>
<a id="pl.225.10"></a><var>225.10</var>(4) developing patient, visitor, and community outreach programs for a destination <br/>
<a id="pl.225.11"></a><var>225.11</var>medical center development district;<br/>
<a id="pl.225.12"></a><var>225.12</var>(5) working with the authority to acquire and facilitate the sale, lease, or other <br/>
<a id="pl.225.13"></a><var>225.13</var>transactions involving land and real property;<br/>
<a id="pl.225.14"></a><var>225.14</var>(6) seeking financial support for the authority, the city, and a project;<br/>
<a id="pl.225.15"></a><var>225.15</var>(7) partnering with other development agencies and organizations, the city, and the <br/>
<a id="pl.225.16"></a><var>225.16</var>county in joint efforts to promote economic development and establish a destination <br/>
<a id="pl.225.17"></a><var>225.17</var>medical center;<br/>
<a id="pl.225.18"></a><var>225.18</var>(8) supporting and administering the planning and development activities required to <br/>
<a id="pl.225.19"></a><var>225.19</var>implement the development plan;<br/>
<a id="pl.225.20"></a><var>225.20</var>(9) preparing and supporting the marketing and promotion of the medical center <br/>
<a id="pl.225.21"></a><var>225.21</var>development district;<br/>
<a id="pl.225.22"></a><var>225.22</var>(10) preparing and implementing a program for community and public relations in <br/>
<a id="pl.225.23"></a><var>225.23</var>support of the medical center development district;<br/>
<a id="pl.225.24"></a><var>225.24</var>(11) assisting the authority or city and others in applications for federal grants, tax <br/>
<a id="pl.225.25"></a><var>225.25</var>credits, and other sources of funding to aid both private and public development; and<br/>
<a id="pl.225.26"></a><var>225.26</var>(12) making other general advisory recommendations to the authority and the city, <br/>
<a id="pl.225.27"></a><var>225.27</var>as requested.<br/>
<a id="pl.225.28"></a><var>225.28</var>(b) The authority may contract with the consultant to provide administrative services <br/>
<a id="pl.225.29"></a><var>225.29</var>to the authority with regard to the destination medical center plan implementation. The <br/>
<a id="pl.225.30"></a><var>225.30</var>authority may pay for those services out of any revenue sources available to it.<br/>
<a id="pl.225.31"></a><var>225.31</var>    Subd. 5. <b>Audit of consultant contracts.</b> Any contract for services between the <br/>
<a id="pl.225.32"></a><var>225.32</var>authority and a consultant paid, in whole or in part, with public money gives the authority, <br/>
<a id="pl.225.33"></a><var>225.33</var>the city, and the state auditor the right to audit the books and records of the consultant <br/>
<a id="pl.225.34"></a><var>225.34</var>that are necessary to certify (1) the nature and extent of the services furnished pursuant to <br/>
<a id="pl.225.35"></a><var>225.35</var>the contract, and (2) that the payment for services and related disbursements complies <br/>
<a id="pl.225.36"></a><var>225.36</var>with all state laws, regulations, and the terms of the contract. Any contract for services <br/>
<a id="pl.226.1"></a><var>226.1</var>between the authority and the consultant paid, in whole or in part, with public money shall <br/>
<a id="pl.226.2"></a><var>226.2</var>require the authority to maintain for the life of the authority accurate and complete books <br/>
<a id="pl.226.3"></a><var>226.3</var>and records directly relating to the contract.<br/>
<a id="pl.226.4"></a><var>226.4</var>    Subd. 6. <b>Report.</b> By January 15 of each year, the authority and city must submit <br/>
<a id="pl.226.5"></a><var>226.5</var>a report to the chairs and ranking minority members of the legislative committees with <br/>
<a id="pl.226.6"></a><var>226.6</var>jurisdiction over local and state government operations, economic development, and <br/>
<a id="pl.226.7"></a><var>226.7</var>taxes, and to the commissioners of revenue and employment and economic development, <br/>
<a id="pl.226.8"></a><var>226.8</var>and the county. The authority and city must also submit the report as provided in section <br/>
<a id="pl.226.9"></a><var>226.9</var>3.195. The report must include:<br/>
<a id="pl.226.10"></a><var>226.10</var>(1) the adopted development plan and any proposed changes to the development plan;<br/>
<a id="pl.226.11"></a><var>226.11</var>(2) progress of projects identified in the development plan;<br/>
<a id="pl.226.12"></a><var>226.12</var>(3) actual costs and financing sources, including the amount paid with state aid under <br/>
<a id="pl.226.13"></a><var>226.13</var>section 469.46 and required local contributions, of projects completed in the previous two <br/>
<a id="pl.226.14"></a><var>226.14</var>years by the authority, city, the county, and the medical business entity;<br/>
<a id="pl.226.15"></a><var>226.15</var>(4) estimated costs and financing sources for projects to be begun in the next two <br/>
<a id="pl.226.16"></a><var>226.16</var>years by the authority, city, the county, and the medical business entity; and<br/>
<a id="pl.226.17"></a><var>226.17</var>(5) debt service schedules for all outstanding obligations of the authority and the city <br/>
<a id="pl.226.18"></a><var>226.18</var>for debt issued for projects identified in the plan.<br/>
<a id="pl.226.19"></a><var>226.19</var>    Subd. 7. <b>Public infrastructure project; construction requirements.</b> (a) For any <br/>
<a id="pl.226.20"></a><var>226.20</var>real or personal property acquired, owned, leased, controlled, used, or occupied by the <br/>
<a id="pl.226.21"></a><var>226.21</var>authority for a public infrastructure project, the authority may contract for construction, <br/>
<a id="pl.226.22"></a><var>226.22</var>materials, supplies, and equipment in accordance with Minnesota Statutes, section <br/>
<a id="pl.226.23"></a><var>226.23</var>471.345, except that the authority may employ or contract with persons, firms, or <br/>
<a id="pl.226.24"></a><var>226.24</var>corporations to perform one or more or all of the functions of an engineer, architect, <br/>
<a id="pl.226.25"></a><var>226.25</var>construction manager, or program manager with respect to all or any part of a project <br/>
<a id="pl.226.26"></a><var>226.26</var>to renovate, refurbish, and remodel the public infrastructure project under either the <br/>
<a id="pl.226.27"></a><var>226.27</var>traditional separate design and build, integrated design-build, design-bid-build or <br/>
<a id="pl.226.28"></a><var>226.28</var>construction manager at risk, or a combination thereof.<br/>
<a id="pl.226.29"></a><var>226.29</var>(b) The authority may prepare a request for proposals for one or more of the <br/>
<a id="pl.226.30"></a><var>226.30</var>functions described in paragraph (a). The request must be published in a newspaper <br/>
<a id="pl.226.31"></a><var>226.31</var>of general circulation. The authority may prequalify offerors by issuing a request for <br/>
<a id="pl.226.32"></a><var>226.32</var>qualifications, in advance of the request for proposals, and select a short list of responsible <br/>
<a id="pl.226.33"></a><var>226.33</var>offerors to submit proposals.<br/>
<a id="pl.226.34"></a><var>226.34</var>(c) As provided in the request for proposals, the authority may conduct discussions <br/>
<a id="pl.226.35"></a><var>226.35</var>and negotiations with responsible offerors in order to determine which proposal is most <br/>
<a id="pl.226.36"></a><var>226.36</var>advantageous to the goals of the development plan, and to negotiate the terms of an <br/>
<a id="pl.227.1"></a><var>227.1</var>agreement. In conducting discussions, there shall be no disclosure of any information <br/>
<a id="pl.227.2"></a><var>227.2</var>derived from proposals submitted by competing offerors and the content of all proposals <br/>
<a id="pl.227.3"></a><var>227.3</var>is nonpublic data under Minnesota Statutes, chapter 13, until such time as a notice to <br/>
<a id="pl.227.4"></a><var>227.4</var>award a contract is given by the authority.<br/>
<a id="pl.227.5"></a><var>227.5</var>(d) Upon agreement on the guaranteed maximum price, the construction manager <br/>
<a id="pl.227.6"></a><var>227.6</var>or program manager may enter into contracts with subcontractors for labor, materials, <br/>
<a id="pl.227.7"></a><var>227.7</var>supplies, and equipment for the renovation project through the process of public bidding, <br/>
<a id="pl.227.8"></a><var>227.8</var>except that the construction manager or program manager may, with the consent of the <br/>
<a id="pl.227.9"></a><var>227.9</var>authority:<br/>
<a id="pl.227.10"></a><var>227.10</var>(1) narrow the listing of eligible bidders to those that the construction manager <br/>
<a id="pl.227.11"></a><var>227.11</var>or program manager determines to possess sufficient expertise to perform the intended <br/>
<a id="pl.227.12"></a><var>227.12</var>functions;<br/>
<a id="pl.227.13"></a><var>227.13</var>(2) award contracts to the subcontractors that the construction manager or program <br/>
<a id="pl.227.14"></a><var>227.14</var>manager determines provide the best value under a request for proposals, as described <br/>
<a id="pl.227.15"></a><var>227.15</var>in Minnesota Statutes, section 16C.28, subdivision 1, paragraph (a), clause (2), and <br/>
<a id="pl.227.16"></a><var>227.16</var>paragraph (c), that are not required to be the lowest responsible bidder; and<br/>
<a id="pl.227.17"></a><var>227.17</var>(3) for work the construction manager or program manager determines to be <br/>
<a id="pl.227.18"></a><var>227.18</var>critical to the completion schedule, perform work with its own forces without soliciting <br/>
<a id="pl.227.19"></a><var>227.19</var>competitive bids or proposals, if the construction manager or program manager provides <br/>
<a id="pl.227.20"></a><var>227.20</var>evidence of competitive pricing.<br/>
<br/>
<a id="bill.9.10.0"></a><a id="pl.227.21"></a><var>227.21</var>    Sec. 10. <b>[469.47] POWERS AND DUTIES.</b><br/>
<a id="pl.227.22"></a><var>227.22</var>    Subdivision 1. <b>Powers generally.</b> The authority has the powers of a city under <br/>
<a id="pl.227.23"></a><var>227.23</var>chapter 462C and the powers of a redevelopment agency under sections 469.152 to <br/>
<a id="pl.227.24"></a><var>227.24</var>469.1651, in connection with private development in the city for which the authority <br/>
<a id="pl.227.25"></a><var>227.25</var>has previously undertaken or concurrently undertakes a project financed in whole or in <br/>
<a id="pl.227.26"></a><var>227.26</var>part with authority revenue or obligations issued pursuant to section 469.48; provided, <br/>
<a id="pl.227.27"></a><var>227.27</var>however, the authority shall not enter into any revenue agreement pursuant to section <br/>
<a id="pl.227.28"></a><var>227.28</var>469.155, subdivision 5, with a medical business entity.<br/>
<a id="pl.227.29"></a><var>227.29</var>    Subd. 2. <b>Projects; project costs.</b> The authority may, within a medical center <br/>
<a id="pl.227.30"></a><var>227.30</var>development district, undertake public infrastructure projects and finance public <br/>
<a id="pl.227.31"></a><var>227.31</var>infrastructure project costs. The authority must find by resolution that the public <br/>
<a id="pl.227.32"></a><var>227.32</var>infrastructure project is consistent with and in furtherance of the approved development <br/>
<a id="pl.227.33"></a><var>227.33</var>plan. Subject to other applicable law, revenue derived by the authority from any source <br/>
<a id="pl.227.34"></a><var>227.34</var>may be used by the authority to make loans or grants, or to provide direct or indirect <br/>
<a id="pl.228.1"></a><var>228.1</var>financial support to state public bodies or to private entities in payment or reimbursement <br/>
<a id="pl.228.2"></a><var>228.2</var>of project costs.<br/>
<a id="pl.228.3"></a><var>228.3</var>    Subd. 3. <b>Revenue pooling.</b> The authority may deposit all its money from any <br/>
<a id="pl.228.4"></a><var>228.4</var>source in one bank account.<br/>
<a id="pl.228.5"></a><var>228.5</var>    Subd. 4. <b>Acquire property; exemption for taxes.</b> (a) The authority may acquire by <br/>
<a id="pl.228.6"></a><var>228.6</var>lease, purchase, gift, or devise the needed right, title, and interest in property to create <br/>
<a id="pl.228.7"></a><var>228.7</var>medical center development districts and undertake projects. The authority may exercise <br/>
<a id="pl.228.8"></a><var>228.8</var>the power of eminent domain to acquire property for a public use, as defined in section <br/>
<a id="pl.228.9"></a><var>228.9</var>117.025. It shall pay for the property out of money it receives under sections 469.41 to <br/>
<a id="pl.228.10"></a><var>228.10</var>469.53. It may hold and dispose of the property subject to the limits and conditions in <br/>
<a id="pl.228.11"></a><var>228.11</var>sections 469.41 to 469.53. The title to property acquired by eminent domain or purchase <br/>
<a id="pl.228.12"></a><var>228.12</var>must be in fee simple, absolute. The authority may accept an interest in property acquired <br/>
<a id="pl.228.13"></a><var>228.13</var>in another way subject to any condition of the grantor or donor. The condition must <br/>
<a id="pl.228.14"></a><var>228.14</var>be consistent with the proper use of the property under sections 469.41 to 469.53. The <br/>
<a id="pl.228.15"></a><var>228.15</var>authority may sign options to purchase, sell, or lease property.<br/>
<a id="pl.228.16"></a><var>228.16</var>(b) Property acquired, owned, leased, controlled, used, or occupied by the authority <br/>
<a id="pl.228.17"></a><var>228.17</var>for any of the purposes of this section is for public governmental and municipal purposes <br/>
<a id="pl.228.18"></a><var>228.18</var>and is exempt from taxation by the state or its political subdivisions, except to the extent <br/>
<a id="pl.228.19"></a><var>228.19</var>that the property is subject to the sales and use tax under chapter 297A. The exemption in <br/>
<a id="pl.228.20"></a><var>228.20</var>this paragraph applies only while the authority holds property for its own purpose, and is <br/>
<a id="pl.228.21"></a><var>228.21</var>subject to section 272.02, subdivisions 8 and 39. When the property is sold it becomes <br/>
<a id="pl.228.22"></a><var>228.22</var>subject to taxation.<br/>
<a id="pl.228.23"></a><var>228.23</var>    Subd. 5. <b>Subject to city requirements.</b> All projects are subject to the planning, <br/>
<a id="pl.228.24"></a><var>228.24</var>zoning, sanitary, and building laws, ordinances, regulations, and land use plans applicable <br/>
<a id="pl.228.25"></a><var>228.25</var>to the city.<br/>
<a id="pl.228.26"></a><var>228.26</var>    Subd. 6. <b>Sale of property.</b> The authority may sell, convey, and exchange any real <br/>
<a id="pl.228.27"></a><var>228.27</var>or personal property owned or held by it in any manner and on any terms. Real property <br/>
<a id="pl.228.28"></a><var>228.28</var>owned by the authority must not be sold, conveyed, exchanged, or have its title transferred <br/>
<a id="pl.228.29"></a><var>228.29</var>without approval of two-thirds of the members of the board. All members must have ten <br/>
<a id="pl.228.30"></a><var>228.30</var>days' written notice of a regular or special meeting at which a vote on sale, conveyance, <br/>
<a id="pl.228.31"></a><var>228.31</var>exchange, or transfer of real property is to be taken. The notice must contain a complete <br/>
<a id="pl.228.32"></a><var>228.32</var>description of the affected real property. The resolution authorizing the real property <br/>
<a id="pl.228.33"></a><var>228.33</var>transaction is not effective unless a quorum is present.<br/>
<a id="pl.228.34"></a><var>228.34</var>    Subd. 7. <b>Contracts.</b> The authority may make contracts for the purpose of economic <br/>
<a id="pl.228.35"></a><var>228.35</var>development within the powers given it in this subdivision and section 469.46. The <br/>
<a id="pl.228.36"></a><var>228.36</var>authority may contract or arrange with the federal government, or any of its departments, <br/>
<a id="pl.229.1"></a><var>229.1</var>with persons, public corporations, the state, or any of its political subdivisions, <br/>
<a id="pl.229.2"></a><var>229.2</var>commissions, or agencies, for separate or joint action, on any matter related to using <br/>
<a id="pl.229.3"></a><var>229.3</var>the authority's powers or performing its duties. The authority may contract to purchase <br/>
<a id="pl.229.4"></a><var>229.4</var>and sell real and personal property. An obligation or expense must not be incurred <br/>
<a id="pl.229.5"></a><var>229.5</var>by the authority unless existing appropriations together with the reasonably expected <br/>
<a id="pl.229.6"></a><var>229.6</var>revenue of the authority from other sources are sufficient to discharge the obligation or <br/>
<a id="pl.229.7"></a><var>229.7</var>pay the expense when due. The state and its municipal subdivisions are not liable on <br/>
<a id="pl.229.8"></a><var>229.8</var>the obligations of the authority.<br/>
<a id="pl.229.9"></a><var>229.9</var>    Subd. 8. <b>Contract for services.</b> The authority may contract for the services of <br/>
<a id="pl.229.10"></a><var>229.10</var>consultants, agents, public accountants, legal counsel, and other persons needed to perform <br/>
<a id="pl.229.11"></a><var>229.11</var>its duties and exercise its powers. The authority may contract with the city or county to <br/>
<a id="pl.229.12"></a><var>229.12</var>provide administrative, clerical, and accounting services to the authority.<br/>
<a id="pl.229.13"></a><var>229.13</var>    Subd. 9. <b>Supplies.</b> The authority may purchase the supplies and materials it needs <br/>
<a id="pl.229.14"></a><var>229.14</var>to carry out sections 469.41 to 469.52.<br/>
<a id="pl.229.15"></a><var>229.15</var>    Subd. 10. <b>City purchasing.</b> The authority may, by agreement with the city, use the <br/>
<a id="pl.229.16"></a><var>229.16</var>facilities and services of the city's purchasing and public works departments in connection <br/>
<a id="pl.229.17"></a><var>229.17</var>with construction work and to purchase equipment, supplies, or materials.<br/>
<a id="pl.229.18"></a><var>229.18</var>    Subd. 11. <b>City facilities, services.</b> The city may furnish offices, structures and <br/>
<a id="pl.229.19"></a><var>229.19</var>space, and clerical, engineering, or other services or assistance to the authority.<br/>
<a id="pl.229.20"></a><var>229.20</var>    Subd. 12. <b>Delegation power.</b> The authority may delegate to one or more of its <br/>
<a id="pl.229.21"></a><var>229.21</var>agents powers or duties as it deems proper.<br/>
<a id="pl.229.22"></a><var>229.22</var>    Subd. 13. <b>Government agent.</b> The authority may cooperate with or act as agent <br/>
<a id="pl.229.23"></a><var>229.23</var>for the federal or state government, a state public body, or an agency or instrumentality <br/>
<a id="pl.229.24"></a><var>229.24</var>of a government or a public body to carry out sections 469.41 to 469.52 or any other <br/>
<a id="pl.229.25"></a><var>229.25</var>related federal, state, or local law.<br/>
<a id="pl.229.26"></a><var>229.26</var>    Subd. 14. <b>Acceptance of public land.</b> The authority may accept conveyances of <br/>
<a id="pl.229.27"></a><var>229.27</var>land from all other public agencies, commissions, or other units of government, if the land <br/>
<a id="pl.229.28"></a><var>229.28</var>can be properly used by the authority in a medical center development district, to carry <br/>
<a id="pl.229.29"></a><var>229.29</var>out the purposes of this chapter. The city council of the city may transfer or cause to be <br/>
<a id="pl.229.30"></a><var>229.30</var>transferred to the authority any property owned or controlled by the city and located <br/>
<a id="pl.229.31"></a><var>229.31</var>within the jurisdiction of the authority. The transfer must be approved by majority vote <br/>
<a id="pl.229.32"></a><var>229.32</var>of the city council and may be with or without consideration. The city may also put the <br/>
<a id="pl.229.33"></a><var>229.33</var>property in the possession or control of the authority by a lease or other agreement for a <br/>
<a id="pl.229.34"></a><var>229.34</var>limited period or in fee.<br/>
<a id="pl.229.35"></a><var>229.35</var>    Subd. 15. <b>Loans in anticipation of bonds.</b> After authorizing bonds under section <br/>
<a id="pl.229.36"></a><var>229.36</var>469.52, the authority may borrow to provide money immediately required for the bond <br/>
<a id="pl.230.1"></a><var>230.1</var>purposes. The loans may not exceed the amount of the bonds. The authority shall by <br/>
<a id="pl.230.2"></a><var>230.2</var>resolution decide the terms of the loans. The loans must be evidenced by negotiable <br/>
<a id="pl.230.3"></a><var>230.3</var>notes due in not more than 12 months from the date of the loan payable to the order of <br/>
<a id="pl.230.4"></a><var>230.4</var>the lender, to be repaid with interest from the proceeds of the bonds when the bonds are <br/>
<a id="pl.230.5"></a><var>230.5</var>issued and delivered to the bond purchasers. The loan must not be obtained from any <br/>
<a id="pl.230.6"></a><var>230.6</var>board member of the authority or from any corporation, association, or other institution of <br/>
<a id="pl.230.7"></a><var>230.7</var>which an authority board member is a stockholder or officer.<br/>
<a id="pl.230.8"></a><var>230.8</var>    Subd. 16. <b>No tax increment financing powers.</b> The authority is not an authority as <br/>
<a id="pl.230.9"></a><var>230.9</var>defined in section 469.174, subdivision 2.<br/>
<br/>
<a id="bill.9.11.0"></a><a id="pl.230.10"></a><var>230.10</var>    Sec. 11. <b>[469.48] REVENUE OBLIGATIONS; PLEDGE; COVENANTS.</b><br/>
<a id="pl.230.11"></a><var>230.11</var>    Subdivision 1. <b>Powers.</b> The authority may decide by resolution to issue its revenue <br/>
<a id="pl.230.12"></a><var>230.12</var>bonds, notes, or other obligations either at one time or in series from time to time. The <br/>
<a id="pl.230.13"></a><var>230.13</var>revenue bonds may be issued to provide money to pay public infrastructure project costs. <br/>
<a id="pl.230.14"></a><var>230.14</var>The issued bonds may include the amount the authority considers necessary to establish an <br/>
<a id="pl.230.15"></a><var>230.15</var>initial reserve to pay principal of and interest on the bonds, including capitalized interest, <br/>
<a id="pl.230.16"></a><var>230.16</var>and to pay the costs of issuance. The resolution shall state how the bonds are to be executed.<br/>
<a id="pl.230.17"></a><var>230.17</var>    Subd. 2. <b>Form.</b> The bonds of each series issued by the authority under this section <br/>
<a id="pl.230.18"></a><var>230.18</var>must bear interest at the rate or rates, mature at times not later than 30 years from the date <br/>
<a id="pl.230.19"></a><var>230.19</var>of issuance, and be fully registered bonds in the form determined by the authority. All <br/>
<a id="pl.230.20"></a><var>230.20</var>bonds issued under this section must be negotiable instruments.<br/>
<a id="pl.230.21"></a><var>230.21</var>    Subd. 3. <b>Sale.</b> The sale of revenue bonds issued by the authority may be at public or <br/>
<a id="pl.230.22"></a><var>230.22</var>private sale. The bonds may be sold in the manner and for the amount that the authority <br/>
<a id="pl.230.23"></a><var>230.23</var>determines to be in the best interest of the authority. The bonds may be made callable upon <br/>
<a id="pl.230.24"></a><var>230.24</var>terms as determined by the authority and may be refunded as provided in section 475.67.<br/>
<a id="pl.230.25"></a><var>230.25</var>    Subd. 4. <b>Agreements.</b> The authority may by resolution make an agreement or <br/>
<a id="pl.230.26"></a><var>230.26</var>covenant with the bondholders or their trustee if it determines that the agreement or <br/>
<a id="pl.230.27"></a><var>230.27</var>covenant is needed or desirable to carry out the powers given to the authority under this <br/>
<a id="pl.230.28"></a><var>230.28</var>section and to ensure that the revenue bonds are marketable and promptly paid.<br/>
<a id="pl.230.29"></a><var>230.29</var>    Subd. 5. <b>Revenue pledge.</b> (a) In issuing bonds under this section, the authority may <br/>
<a id="pl.230.30"></a><var>230.30</var>secure payment of the principal and interest on the bonds by:<br/>
<a id="pl.230.31"></a><var>230.31</var>(1) a pledge of and lien on authority revenue. The revenue must come from the <br/>
<a id="pl.230.32"></a><var>230.32</var>facility to be acquired, constructed, or improved with the bond proceeds or from other <br/>
<a id="pl.230.33"></a><var>230.33</var>facilities named in the bond-authorizing resolutions. The authority also may secure the <br/>
<a id="pl.230.34"></a><var>230.34</var>payment with its promise to impose, maintain, and collect enough rentals, rates, and <br/>
<a id="pl.230.35"></a><var>230.35</var>charges, for the use and occupancy of the facilities and for services furnished in connection <br/>
<a id="pl.231.1"></a><var>231.1</var>with the use and occupancy, to pay its current expenses to operate and maintain the named <br/>
<a id="pl.231.2"></a><var>231.2</var>facilities, and to produce and deposit sufficient net revenue in a special fund to meet the <br/>
<a id="pl.231.3"></a><var>231.3</var>interest and principal requirements of the bonds, and to collect and keep any more money <br/>
<a id="pl.231.4"></a><var>231.4</var>required by the resolutions. The authority shall decide what constitutes "current" expense <br/>
<a id="pl.231.5"></a><var>231.5</var>under this subdivision based on what is normal and reasonable under generally accepted <br/>
<a id="pl.231.6"></a><var>231.6</var>accounting principles. Revenues pledged by the authority must not be used or pledged for <br/>
<a id="pl.231.7"></a><var>231.7</var>any other authority purpose unless the other use or pledge is specifically authorized in the <br/>
<a id="pl.231.8"></a><var>231.8</var>bond-authorizing resolutions; or<br/>
<a id="pl.231.9"></a><var>231.9</var>(2) payments by a medical business entity and a pledge of and lien on other authority <br/>
<a id="pl.231.10"></a><var>231.10</var>revenue, including revenue received from the city or the county.<br/>
<a id="pl.231.11"></a><var>231.11</var>(b) No bonds may be issued by the authority under this subdivision later than <br/>
<a id="pl.231.12"></a><var>231.12</var>20 years from the date of final enactment of this act, and no bond issued under this <br/>
<a id="pl.231.13"></a><var>231.13</var>subdivision may have a maturity later than December 31, 2049.<br/>
<a id="pl.231.14"></a><var>231.14</var>    Subd. 6. <b>Not city, county, or state debt.</b> Revenue bonds, notes, or other obligations <br/>
<a id="pl.231.15"></a><var>231.15</var>issued under this section are not a debt of the city, county, or state, nor a pledge of the full <br/>
<a id="pl.231.16"></a><var>231.16</var>faith and credit of the city, county, or state. All obligations under this section are payable <br/>
<a id="pl.231.17"></a><var>231.17</var>only from revenues described in subdivision 5. A revenue bond must contain on its face a <br/>
<a id="pl.231.18"></a><var>231.18</var>statement to the effect that the authority does not have to pay the bond or the interest on it <br/>
<a id="pl.231.19"></a><var>231.19</var>except from the revenues pledged thereto and that the faith, credit, and taxing power of the <br/>
<a id="pl.231.20"></a><var>231.20</var>city, the county, and the state are not pledged to pay the principal of or interest on the bond.<br/>
<br/>
<a id="bill.9.12.0"></a><a id="pl.231.21"></a><var>231.21</var>    Sec. 12. <b>[469.50] CITY TAX AUTHORITY.</b><br/>
<a id="pl.231.22"></a><var>231.22</var>    Subdivision 1. <b>Rochester, other local taxes authorized.</b> (a) Notwithstanding <br/>
<a id="pl.231.23"></a><var>231.23</var>section 
<statute_ref>477A.016</statute_ref>, or any other contrary provision of law, ordinance, or city charter, and <br/>
<a id="pl.231.24"></a><var>231.24</var>in addition to any taxes the city may impose on these transactions under another statute <br/>
<a id="pl.231.25"></a><var>231.25</var>or law, the city of Rochester may, by ordinance, impose at a rate determined by the city, <br/>
<a id="pl.231.26"></a><var>231.26</var>a tax on the admission receipts to entertainment and recreational facilities, as defined <br/>
<a id="pl.231.27"></a><var>231.27</var>by ordinance, in the city.<br/>
<a id="pl.231.28"></a><var>231.28</var>(b) The provisions of section 297A.99, subdivisions 4 to 13, govern the <br/>
<a id="pl.231.29"></a><var>231.29</var>administration, collection, and enforcement of any tax imposed by the city under <br/>
<a id="pl.231.30"></a><var>231.30</var>paragraph (a).<br/>
<a id="pl.231.31"></a><var>231.31</var>(c) The proceeds of any taxes imposed under this subdivision, less refunds and costs <br/>
<a id="pl.231.32"></a><var>231.32</var>of collection, must be used by the city to fund obligations related to public infrastructure <br/>
<a id="pl.231.33"></a><var>231.33</var>projects contained in the development plan, including any associated financing costs. Any <br/>
<a id="pl.231.34"></a><var>231.34</var>tax imposed under paragraph (a) expires at the earlier of December 31, 2049, or when the <br/>
<a id="pl.231.35"></a><var>231.35</var>city council determines that sufficient funds have been raised from the tax plus all other <br/>
<a id="pl.232.1"></a><var>232.1</var>local funding sources authorized in this article to meet the city obligation for financing a <br/>
<a id="pl.232.2"></a><var>232.2</var>public infrastructure project contained in the development plan, including any associated <br/>
<a id="pl.232.3"></a><var>232.3</var>financing costs.<br/>
<a id="pl.232.4"></a><var>232.4</var>    Subd. 2. <b>General sales tax authority.</b> The city may elect to extend the existing <br/>
<a id="pl.232.5"></a><var>232.5</var>local sales and use tax under section 11 or to impose an additional rate of up to one-quarter <br/>
<a id="pl.232.6"></a><var>232.6</var>of one percent tax on sales and use under section 9.<br/>
<a id="pl.232.7"></a><var>232.7</var>    Subd. 3. <b>Special abatement rules.</b> (a) If the city or the county elects to use tax <br/>
<a id="pl.232.8"></a><var>232.8</var>abatement under sections 469.1812 to 469.1815 to finance costs of public infrastructure <br/>
<a id="pl.232.9"></a><var>232.9</var>projects, the special rules under this subdivision apply.<br/>
<a id="pl.232.10"></a><var>232.10</var>(b) The limitations under section 469.1813, subdivision 6, do not apply to the city <br/>
<a id="pl.232.11"></a><var>232.11</var>or the county.<br/>
<a id="pl.232.12"></a><var>232.12</var>(c) The limitations under section 469.1813, subdivision 8, do not apply and property <br/>
<a id="pl.232.13"></a><var>232.13</var>taxes abated by the city or the county to finance costs of public infrastructure projects are <br/>
<a id="pl.232.14"></a><var>232.14</var>not included for purposes of applying section 469.1813, subdivision 8, to the use of tax <br/>
<a id="pl.232.15"></a><var>232.15</var>abatement for other purposes of the city or the county; however, the total amount of property <br/>
<a id="pl.232.16"></a><var>232.16</var>taxes abated by the city and the county under this authority must not exceed $87,750,000.<br/>
<a id="pl.232.17"></a><var>232.17</var>    Subd. 4. <b>Special tax increment financing rules.</b> If the city elects to establish <br/>
<a id="pl.232.18"></a><var>232.18</var>a redevelopment tax increment financing district or districts within the area of the <br/>
<a id="pl.232.19"></a><var>232.19</var>destination medical center development district, the requirements of section 469.174, <br/>
<a id="pl.232.20"></a><var>232.20</var>subdivision 10, restricting the geographic areas that may be designated as a district do not <br/>
<a id="pl.232.21"></a><var>232.21</var>apply and increments from the district are not required to be spent in accordance with the <br/>
<a id="pl.232.22"></a><var>232.22</var>requirements of section 469.176, subdivision 4j.<br/>
<br/>
<a id="bill.9.13.0"></a><a id="pl.232.23"></a><var>232.23</var>    Sec. 13. <b>[469.52] STATE INFRASTRUCTURE AID.</b><br/>
<a id="pl.232.24"></a><var>232.24</var>    Subdivision 1. <b>Definitions.</b> (a) For purposes of this section, the following terms <br/>
<a id="pl.232.25"></a><var>232.25</var>have the meanings given them.<br/>
<a id="pl.232.26"></a><var>232.26</var>(b) "Commissioner" means the commissioner of employment and economic <br/>
<a id="pl.232.27"></a><var>232.27</var>development.<br/>
<a id="pl.232.28"></a><var>232.28</var>(c) "Construction projects" means construction of buildings in the city for which the <br/>
<a id="pl.232.29"></a><var>232.29</var>building permit was issued after June 30, 2013.<br/>
<a id="pl.232.30"></a><var>232.30</var>(d) "Expenditures" means expenditures made by a medical business entity, including <br/>
<a id="pl.232.31"></a><var>232.31</var>any affiliated entities, on construction projects for the capital cost of the project, including <br/>
<a id="pl.232.32"></a><var>232.32</var>but not limited to:<br/>
<a id="pl.232.33"></a><var>232.33</var>(1) design and predesign, including architectural, engineering, and similar services;<br/>
<a id="pl.232.34"></a><var>232.34</var>(2) legal, regulatory, and other compliance costs of the project;<br/>
<a id="pl.233.1"></a><var>233.1</var>(3) land acquisition, demolition of existing improvements, and other site preparation <br/>
<a id="pl.233.2"></a><var>233.2</var>costs;<br/>
<a id="pl.233.3"></a><var>233.3</var>(4) construction costs including all materials and supplies of the project; and<br/>
<a id="pl.233.4"></a><var>233.4</var>(5) equipment and furnishings that are attached to or become part of the real property.<br/>
<a id="pl.233.5"></a><var>233.5</var>Expenditures exclude supplies and other items with a useful life of less than a year that <br/>
<a id="pl.233.6"></a><var>233.6</var>are not used or consumed in constructing improvements to real property or are otherwise <br/>
<a id="pl.233.7"></a><var>233.7</var>chargeable to capital costs.<br/>
<a id="pl.233.8"></a><var>233.8</var>(e) "Qualified expenditures" has the following meaning. In the first year in which <br/>
<a id="pl.233.9"></a><var>233.9</var>aid is paid under this section "qualified expenditures" mean the total certified expenditures <br/>
<a id="pl.233.10"></a><var>233.10</var>since June 30, 2013, through the end of the previous calendar year minus $250,000,000. <br/>
<a id="pl.233.11"></a><var>233.11</var>For subsequent years "qualified expenditures" mean the certified expenditures for the <br/>
<a id="pl.233.12"></a><var>233.12</var>previous calendar year.<br/>
<a id="pl.233.13"></a><var>233.13</var>(f) "Transportation costs" means the portions of a public infrastructure project <br/>
<a id="pl.233.14"></a><var>233.14</var>that are for public transportation intended primarily to serve the district, such as transit <br/>
<a id="pl.233.15"></a><var>233.15</var>stations, equipment, right-of-way, and similar costs.<br/>
<a id="pl.233.16"></a><var>233.16</var>    Subd. 2. <b>Certification of expenditures.</b> By April 1 of each year, the medical <br/>
<a id="pl.233.17"></a><var>233.17</var>business entity must certify to the commissioner the amount of expenditures made in the <br/>
<a id="pl.233.18"></a><var>233.18</var>prior calendar year. The certification must be made in the form that the commissioner <br/>
<a id="pl.233.19"></a><var>233.19</var>prescribes and include any documentation of and supporting information regarding the <br/>
<a id="pl.233.20"></a><var>233.20</var>expenditures that the commissioner requires. By August 1 of each year, the commissioner <br/>
<a id="pl.233.21"></a><var>233.21</var>shall determine the amount of the expenditures for the prior calendar year.<br/>
<a id="pl.233.22"></a><var>233.22</var>    Subd. 3. <b>General state infrastructure aid.</b> (a) General state infrastructure aid may <br/>
<a id="pl.233.23"></a><var>233.23</var>not be paid out under this section until total expenditures exceed $250,000,000.<br/>
<a id="pl.233.24"></a><var>233.24</var>(b) The amount of the general state infrastructure aid for a fiscal year equals the sum <br/>
<a id="pl.233.25"></a><var>233.25</var>of qualified expenditures, multiplied by 3.0 percent. If the commissioner determines <br/>
<a id="pl.233.26"></a><var>233.26</var>that the city has made the required matching local contribution under subdivision 4, the <br/>
<a id="pl.233.27"></a><var>233.27</var>commissioner shall pay to the authority the amount of general state infrastructure aid for <br/>
<a id="pl.233.28"></a><var>233.28</var>the year by September 1. <br/>
<a id="pl.233.29"></a><var>233.29</var>(c) The authority must use general state infrastructure aid it receives under this <br/>
<a id="pl.233.30"></a><var>233.30</var>subdivision for improvements and other capital costs related to the public infrastructure <br/>
<a id="pl.233.31"></a><var>233.31</var>project, other than transit costs. During construction, installation, remodeling, and repairs <br/>
<a id="pl.233.32"></a><var>233.32</var>of a public infrastructure project, laborers and mechanics at the site must be paid the <br/>
<a id="pl.233.33"></a><var>233.33</var>prevailing wage as defined in section 177.42, subdivision 6, for the authority to use general <br/>
<a id="pl.233.34"></a><var>233.34</var>state infrastructure aid. The authority must maintain appropriate records to document the <br/>
<a id="pl.233.35"></a><var>233.35</var>use of the funds under this requirement.<br/>
<a id="pl.234.1"></a><var>234.1</var>(d) The commissioner, in consultation with the commissioner of management and <br/>
<a id="pl.234.2"></a><var>234.2</var>budget and representatives of the authority, shall establish a total limit on the amount <br/>
<a id="pl.234.3"></a><var>234.3</var>of state aid payable under this subdivision that is sufficient, in combination with the <br/>
<a id="pl.234.4"></a><var>234.4</var>local contribution, to pay for $455,000,000 of general public infrastructure projects, plus <br/>
<a id="pl.234.5"></a><var>234.5</var>financing costs.<br/>
<a id="pl.234.6"></a><var>234.6</var>    Subd. 4. <b>General aid; local matching contribution.</b> In order to qualify for general <br/>
<a id="pl.234.7"></a><var>234.7</var>state infrastructure aid, the city must enter a written agreement with the commissioner that <br/>
<a id="pl.234.8"></a><var>234.8</var>requires the city to make a qualifying local matching contribution to pay for $128,000,000 <br/>
<a id="pl.234.9"></a><var>234.9</var>of the cost of public infrastructure projects, including associated financing costs, using <br/>
<a id="pl.234.10"></a><var>234.10</var>funds other than state aid received under this section. This agreement must provide for the <br/>
<a id="pl.234.11"></a><var>234.11</var>manner, timing, and amounts of the city contributions, including the city's commitment for <br/>
<a id="pl.234.12"></a><var>234.12</var>each year. The commissioner and city may agree to amend the agreement at any time in <br/>
<a id="pl.234.13"></a><var>234.13</var>light of new information or other appropriate factors. The city may enter arrangements <br/>
<a id="pl.234.14"></a><var>234.14</var>with the county to pay for or otherwise meet the local matching contribution requirement.<br/>
<a id="pl.234.15"></a><var>234.15</var>    Subd. 5. <b>State transit aid.</b> (a) The authority qualifies for state transit aid under <br/>
<a id="pl.234.16"></a><var>234.16</var>this section if: <br/>
<a id="pl.234.17"></a><var>234.17</var>(1) the county has elected to impose the transit sales tax under section 469.51 for a <br/>
<a id="pl.234.18"></a><var>234.18</var>calendar year; and<br/>
<a id="pl.234.19"></a><var>234.19</var>(2) the county contributes the required local matching contribution under subdivision <br/>
<a id="pl.234.20"></a><var>234.20</var>6 or the city or county have agreed to make an equivalent contribution out of other funds.<br/>
<a id="pl.234.21"></a><var>234.21</var>(b) The amount of the state transit aid for a fiscal year equals the sum of qualified <br/>
<a id="pl.234.22"></a><var>234.22</var>expenditures, as certified by the commissioner for the prior calendar year, multiplied <br/>
<a id="pl.234.23"></a><var>234.23</var>by 0.75 percent, reduced by the amount of the local contribution under subdivision 6. <br/>
<a id="pl.234.24"></a><var>234.24</var>The maximum amount of state transit aid payable in any year is limited to no more than <br/>
<a id="pl.234.25"></a><var>234.25</var>$7,500,000. If the aid entitlement for the year exceeds the maximum annual limit, the <br/>
<a id="pl.234.26"></a><var>234.26</var>excess is an aid carryover to later years. The carryover aid must be paid in the first year <br/>
<a id="pl.234.27"></a><var>234.27</var>in which the aid entitlement for the current year is less than the maximum annual limit, <br/>
<a id="pl.234.28"></a><var>234.28</var>but only to the extent the carryover, when added to the current year aid, is less than the <br/>
<a id="pl.234.29"></a><var>234.29</var>maximum annual limit.<br/>
<a id="pl.234.30"></a><var>234.30</var>    (c) The commissioner, in consultation with the commissioner of management and <br/>
<a id="pl.234.31"></a><var>234.31</var>budget and representatives of the authority, shall establish a total limit on the amount <br/>
<a id="pl.234.32"></a><var>234.32</var>of state aid payable under this subdivision that is sufficient, in combination with the <br/>
<a id="pl.234.33"></a><var>234.33</var>local contribution, to pay for $116,000,000 of general public infrastructure projects, plus <br/>
<a id="pl.234.34"></a><var>234.34</var>associated financing costs.<br/>
<a id="pl.235.1"></a><var>235.1</var>(d) During construction, installation, remodeling, and repairs of a transit project, <br/>
<a id="pl.235.2"></a><var>235.2</var>laborers and mechanics at the site must be paid the prevailing wage as defined in section <br/>
<a id="pl.235.3"></a><var>235.3</var>177.42, subdivision 6, for the authority to use state transit aid.<br/>
<a id="pl.235.4"></a><var>235.4</var>    Subd. 6. <b>Transit aid; local matching contribution.</b> (a) The required local matching <br/>
<a id="pl.235.5"></a><var>235.5</var>contribution for state transit aid equals the amount that would be raised by a 0.15 percent <br/>
<a id="pl.235.6"></a><var>235.6</var>sales tax imposed by the county in the prior calendar year. The county may impose the <br/>
<a id="pl.235.7"></a><var>235.7</var>sales tax under section 469.51 to meet this obligation.<br/>
<a id="pl.235.8"></a><var>235.8</var>(b) If the county elects not to impose the tax authorized under section 469.51, the <br/>
<a id="pl.235.9"></a><var>235.9</var>county or city or both may agree to make the local contribution out of other available <br/>
<a id="pl.235.10"></a><var>235.10</var>funds, other than state aid payable to the authority under this section. The commissioner <br/>
<a id="pl.235.11"></a><var>235.11</var>of revenue shall estimate the required amount and certify it to the commissioner, city, <br/>
<a id="pl.235.12"></a><var>235.12</var>and county.<br/>
<a id="pl.235.13"></a><var>235.13</var>    Subd. 7. <b>Termination.</b> No aid may be paid under this section after fiscal year 2049.<br/>
<a id="pl.235.14"></a><var>235.14</var>    Subd. 8. <b>Appropriation.</b> An amount sufficient to pay the state general infrastructure <br/>
<a id="pl.235.15"></a><var>235.15</var>and state transit aid authorized under this section is appropriated to the commissioner <br/>
<a id="pl.235.16"></a><var>235.16</var>from the general fund.<br/>
<br/>
<a id="bill.9.14.0"></a><a id="pl.235.17"></a><var>235.17</var>    Sec. 14. Laws 1998, chapter 389, article 8, section 43, subdivision 1, is amended to read:<br/>
<a id="pl.235.18"></a><var>235.18</var>    Subdivision 1. <b>Sales and use taxes authorized.</b> (a) Notwithstanding Minnesota <br/>
<a id="pl.235.19"></a><var>235.19</var>Statutes, section 
         <statute_ref>477A.016</statute_ref>, or any other contrary provision of law, ordinance, or city <br/>
<a id="pl.235.20"></a><var>235.20</var>charter, upon termination of the taxes authorized under Laws 1992, chapter 511, article <br/>
<a id="pl.235.21"></a><var>235.21</var>8, section 33, subdivision 1, and if approved by the voters of the city at a general or <br/>
<a id="pl.235.22"></a><var>235.22</var>special election held within one year of the date of final enactment of this act, the city of <br/>
<a id="pl.235.23"></a><var>235.23</var>Rochester may, by ordinance, impose an additional sales and use tax of up to one-half <br/>
<a id="pl.235.24"></a><var>235.24</var>of one percent. The provisions of Minnesota Statutes, section 
         <statute_ref>297A.48</statute_ref>, 297A.99 govern <br/>
<a id="pl.235.25"></a><var>235.25</var>the imposition, administration, collection, and enforcement of the tax authorized under <br/>
<a id="pl.235.26"></a><var>235.26</var>this subdivision paragraph.<br/>
<a id="pl.235.27"></a><var>235.27</var>    (b) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any <br/>
<a id="pl.235.28"></a><var>235.28</var>other contrary provision of law, ordinance, or charter, the city of Rochester may, by <br/>
<a id="pl.235.29"></a><var>235.29</var>ordinance, impose an additional sales and use tax of up to one quarter of one percent. The <br/>
<a id="pl.235.30"></a><var>235.30</var>provisions of Minnesota Statutes, section 297A.99, subdivisions 1 and 4 to 13, govern <br/>
<a id="pl.235.31"></a><var>235.31</var>the imposition, administration, collection, and enforcement of the tax authorized under <br/>
<a id="pl.235.32"></a><var>235.32</var>this paragraph.<br/>
<br/>
<a id="bill.9.15.0"></a><a id="pl.236.1"></a><var>236.1</var>    Sec. 15. Laws 1998, chapter 389, article 8, section 43, subdivision 3, as amended by <br/>
<a id="pl.236.2"></a><var>236.2</var>Laws 2005, First Special Session chapter 3, article 5, section 28, and Laws 2011, First <br/>
<a id="pl.236.3"></a><var>236.3</var>Special Session chapter 7, article 4, section 5, is amended to read:<br/>
<a id="pl.236.4"></a><var>236.4</var>    Subd. 3. <b>Use of revenues.</b> (a) Revenues received from the taxes authorized by <br/>
<a id="pl.236.5"></a><var>236.5</var>subdivisions 1, paragraph (a), and 2 must be used by the city to pay for the cost of <br/>
<a id="pl.236.6"></a><var>236.6</var>collecting and administering the taxes and to pay for the following projects:<br/>
<a id="pl.236.7"></a><var>236.7</var>    (1) transportation infrastructure improvements including regional highway and <br/>
<a id="pl.236.8"></a><var>236.8</var>airport improvements;<br/>
<a id="pl.236.9"></a><var>236.9</var>    (2) improvements to the civic center complex;<br/>
<a id="pl.236.10"></a><var>236.10</var>    (3) a municipal water, sewer, and storm sewer project necessary to improve regional <br/>
<a id="pl.236.11"></a><var>236.11</var>ground water quality; and<br/>
<a id="pl.236.12"></a><var>236.12</var>    (4) construction of a regional recreation and sports center and other higher education <br/>
<a id="pl.236.13"></a><var>236.13</var>facilities available for both community and student use.<br/>
<a id="pl.236.14"></a><var>236.14</var>    (b) The total amount of capital expenditures or bonds for projects listed in paragraph <br/>
<a id="pl.236.15"></a><var>236.15</var>(a) that may be paid from the revenues raised from the taxes authorized in this section <br/>
<a id="pl.236.16"></a><var>236.16</var>may not exceed $111,500,000. The total amount of capital expenditures or bonds for the <br/>
<a id="pl.236.17"></a><var>236.17</var>project in clause (4) that may be paid from the revenues raised from the taxes authorized <br/>
<a id="pl.236.18"></a><var>236.18</var>in this section may not exceed $28,000,000.<br/>
<a id="pl.236.19"></a><var>236.19</var>(c) In addition to the projects authorized in paragraph (a) and not subject to the <br/>
<a id="pl.236.20"></a><var>236.20</var>amount stated in paragraph (b), the city of Rochester may, if approved by the voters at an <br/>
<a id="pl.236.21"></a><var>236.21</var>election under subdivision 5, paragraph (c), use the revenues received from the taxes and <br/>
<a id="pl.236.22"></a><var>236.22</var>bonds authorized in this section to pay the costs of or bonds for the following purposes:<br/>
<a id="pl.236.23"></a><var>236.23</var>(1) $17,000,000 for capital expenditures and bonds for the following Olmsted <br/>
<a id="pl.236.24"></a><var>236.24</var>County transportation infrastructure improvements:<br/>
<a id="pl.236.25"></a><var>236.25</var>(i) County State Aid Highway 34 reconstruction;<br/>
<a id="pl.236.26"></a><var>236.26</var>(ii) Trunk Highway 63 and County State Aid Highway 16 interchange; <br/>
<a id="pl.236.27"></a><var>236.27</var>(iii) phase II of the Trunk Highway 52 and County State Aid Highway 22 interchange;<br/>
<a id="pl.236.28"></a><var>236.28</var>(iv) widening of County State Aid Highway 22 West Circle Drive; and <br/>
<a id="pl.236.29"></a><var>236.29</var>(v) 60th Avenue Northwest corridor preservation;<br/>
<a id="pl.236.30"></a><var>236.30</var>(2) $30,000,000 for city transportation projects including:<br/>
<a id="pl.236.31"></a><var>236.31</var>(i) Trunk Highway 52 and 65th Street interchange;<br/>
<a id="pl.236.32"></a><var>236.32</var>(ii) NW transportation corridor acquisition; <br/>
<a id="pl.236.33"></a><var>236.33</var>(iii) Phase I of the Trunk Highway 52 and County State Aid Highway 22 interchange;<br/>
<a id="pl.236.34"></a><var>236.34</var>(iv) Trunk Highway 14 and Trunk Highway 63 intersection;<br/>
<a id="pl.236.35"></a><var>236.35</var>(v) Southeast transportation corridor acquisition;<br/>
<a id="pl.236.36"></a><var>236.36</var>(vi) Rochester International Airport expansion; and <br/>
<a id="pl.237.1"></a><var>237.1</var>(vii) a transit operations center bus facility;<br/>
<a id="pl.237.2"></a><var>237.2</var>(3) $14,000,000 for the University of Minnesota Rochester academic and <br/>
<a id="pl.237.3"></a><var>237.3</var>complementary facilities;<br/>
<a id="pl.237.4"></a><var>237.4</var>(4) $6,500,000 for the Rochester Community and Technical College/Winona State <br/>
<a id="pl.237.5"></a><var>237.5</var>University career technical education and science and math facilities;<br/>
<a id="pl.237.6"></a><var>237.6</var>(5) $6,000,000 for the Rochester Community and Technical College regional <br/>
<a id="pl.237.7"></a><var>237.7</var>recreation facilities at University Center Rochester;<br/>
<a id="pl.237.8"></a><var>237.8</var>(6) $20,000,000 for the Destination Medical Community Initiative;<br/>
<a id="pl.237.9"></a><var>237.9</var>(7) $8,000,000 for the regional public safety and 911 dispatch center facilities;<br/>
<a id="pl.237.10"></a><var>237.10</var>(8) $20,000,000 for a regional recreation/senior center;<br/>
<a id="pl.237.11"></a><var>237.11</var>(9) $10,000,000 for an economic development fund; and<br/>
<a id="pl.237.12"></a><var>237.12</var>(10) $8,000,000 for downtown infrastructure.<br/>
<a id="pl.237.13"></a><var>237.13</var>(d) No revenues from the taxes raised from the taxes authorized in subdivisions 1 <br/>
<a id="pl.237.14"></a><var>237.14</var>and 2 may be used to fund transportation improvements related to a railroad bypass that <br/>
<a id="pl.237.15"></a><var>237.15</var>would divert traffic from the city of Rochester.<br/>
<a id="pl.237.16"></a><var>237.16</var>(e) The city shall use $5,000,000 of the money allocated to the purpose in paragraph <br/>
<a id="pl.237.17"></a><var>237.17</var>(c), clause (9), for grants to the cities of Byron, Chatfield, Dodge Center, Dover, Elgin, <br/>
<a id="pl.237.18"></a><var>237.18</var>Eyota, Kasson, Mantorville, Oronoco, Pine Island, Plainview, St. Charles, Stewartville, <br/>
<a id="pl.237.19"></a><var>237.19</var>Zumbrota, Spring Valley, West Concord, and Hayfield, Racine, Grand Meadow, Dexter, <br/>
<a id="pl.237.20"></a><var>237.20</var>Wanamingo, and Mazeppa  for economic development projects that these communities <br/>
<a id="pl.237.21"></a><var>237.21</var>would fund through their economic development authority or housing and redevelopment <br/>
<a id="pl.237.22"></a><var>237.22</var>authority.<br/>
<a id="pl.237.23"></a><var>237.23</var>(f) Notwithstanding Minnesota Statutes, section 
<statute_ref>297A.99</statute_ref>, subdivisions 2 and 3, if <br/>
<a id="pl.237.24"></a><var>237.24</var>the city decides to extend the taxes in subdivisions 1, paragraph (a), and 2, as allowed <br/>
<a id="pl.237.25"></a><var>237.25</var>under subdivision 5, paragraph (c), the city must use any amount in excess of the amount <br/>
<a id="pl.237.26"></a><var>237.26</var>necessary to meet obligations under paragraphs (a) to (c) from those taxes to fund <br/>
<a id="pl.237.27"></a><var>237.27</var>obligations, including associated financing costs, related to public infrastructure projects <br/>
<a id="pl.237.28"></a><var>237.28</var>in the development plan adopted under Minnesota Statutes, section 469.42.<br/>
<a id="pl.237.29"></a><var>237.29</var>(g) Revenues from the tax under subdivision 1, paragraph (b), must be used to <br/>
<a id="pl.237.30"></a><var>237.30</var>fund obligations, including associated financing costs, related to the public infrastructure <br/>
<a id="pl.237.31"></a><var>237.31</var>projects contained in the development plan adopted by the city under Minnesota Statutes, <br/>
<a id="pl.237.32"></a><var>237.32</var>section 469.42.<br/>
<br/>
<a id="bill.9.16.0"></a><a id="pl.237.33"></a><var>237.33</var>    Sec. 16. Laws 1998, chapter 389, article 8, section 43, subdivision 5, as amended by <br/>
<a id="pl.237.34"></a><var>237.34</var>Laws 2005, First Special Session chapter 3, article 5, section 30, and Laws 2011, First <br/>
<a id="pl.237.35"></a><var>237.35</var>Special Session chapter 7, article 4, section 7, is amended to read:<br/>
<a id="pl.238.1"></a><var>238.1</var>    Subd. 5. <b>Termination of taxes.</b> (a) The taxes imposed under subdivisions 1 and 2 <br/>
<a id="pl.238.2"></a><var>238.2</var>expire at the later of (1) December 31, 2009, or (2) when the city council determines that <br/>
<a id="pl.238.3"></a><var>238.3</var>sufficient funds have been received from the taxes to finance the first $71,500,000 of capital <br/>
<a id="pl.238.4"></a><var>238.4</var>expenditures and bonds for the projects authorized in subdivision 3, including the amount to <br/>
<a id="pl.238.5"></a><var>238.5</var>prepay or retire at maturity the principal, interest, and premium due on any bonds issued for <br/>
<a id="pl.238.6"></a><var>238.6</var>the projects under subdivision 4, unless the taxes are extended as allowed in paragraph (b). <br/>
<a id="pl.238.7"></a><var>238.7</var>Any funds remaining after completion of the project and retirement or redemption of the <br/>
<a id="pl.238.8"></a><var>238.8</var>bonds shall also be used to fund the projects under subdivision 3. The taxes imposed under <br/>
<a id="pl.238.9"></a><var>238.9</var>subdivisions 1 and 2 may expire at an earlier time if the city so determines by ordinance.<br/>
<a id="pl.238.10"></a><var>238.10</var>    (b) Notwithstanding Minnesota Statutes, sections 
         <statute_ref>297A.99</statute_ref> and 
         <statute_ref>477A.016</statute_ref>, or any <br/>
<a id="pl.238.11"></a><var>238.11</var>other contrary provision of law, ordinance, or city charter, the city of Rochester may, by <br/>
<a id="pl.238.12"></a><var>238.12</var>ordinance, extend the taxes authorized in subdivisions 1 and 2 beyond December 31, 2009, <br/>
<a id="pl.238.13"></a><var>238.13</var>if approved by the voters of the city at a special election in 2005 or the general election in <br/>
<a id="pl.238.14"></a><var>238.14</var>2006. The question put to the voters must indicate that an affirmative vote would allow <br/>
<a id="pl.238.15"></a><var>238.15</var>up to an additional $40,000,000 of sales tax revenues be raised and up to $40,000,000 <br/>
<a id="pl.238.16"></a><var>238.16</var>of bonds to be issued above the amount authorized in the June 23, 1998, referendum for <br/>
<a id="pl.238.17"></a><var>238.17</var>the projects specified in subdivision 3. If the taxes authorized in subdivisions 1 and 2 are <br/>
<a id="pl.238.18"></a><var>238.18</var>extended under this paragraph, the taxes expire when the city council determines that <br/>
<a id="pl.238.19"></a><var>238.19</var>sufficient funds have been received from the taxes to finance the projects and to prepay <br/>
<a id="pl.238.20"></a><var>238.20</var>or retire at maturity the principal, interest, and premium due on any bonds issued for the <br/>
<a id="pl.238.21"></a><var>238.21</var>projects under subdivision 4. Any funds remaining after completion of the project and <br/>
<a id="pl.238.22"></a><var>238.22</var>retirement or redemption of the bonds may be placed in the general fund of the city.<br/>
<a id="pl.238.23"></a><var>238.23</var>(c) Notwithstanding Minnesota Statutes, sections 
         <statute_ref>297A.99</statute_ref> and 
         <statute_ref>477A.016</statute_ref>, or any <br/>
<a id="pl.238.24"></a><var>238.24</var>other contrary provision of law, ordinance, or city charter, the city of Rochester may, <br/>
<a id="pl.238.25"></a><var>238.25</var>by ordinance, extend the taxes authorized in subdivisions 1, paragraph (a), and 2  up to <br/>
<a id="pl.238.26"></a><var>238.26</var>December 31, 2046, provided that all additional revenues above those necessary to fund <br/>
<a id="pl.238.27"></a><var>238.27</var>the projects and associated financing costs listed in subdivision 3, paragraphs (a) to (e), <br/>
<a id="pl.238.28"></a><var>238.28</var>are committed to fund public infrastructure projects contained in the development plan <br/>
<a id="pl.238.29"></a><var>238.29</var>adopted under Minnesota Statutes, section 469.42, including all associated financing <br/>
<a id="pl.238.30"></a><var>238.30</var>costs; otherwise the taxes terminate when beyond the date the city council determines <br/>
<a id="pl.238.31"></a><var>238.31</var>that sufficient funds have been received from the taxes to finance $111,500,000 of the <br/>
<a id="pl.238.32"></a><var>238.32</var>expenditures and bonds for the projects authorized in subdivision 3, paragraph (a)<br/>
<a id="pl.238.33"></a><var>238.33</var> paragraphs (a) to (e), plus an amount equal to the costs of issuance of the bonds and <br/>
<a id="pl.238.34"></a><var>238.34</var>including the amount to prepay or retire at maturity the principal, interest, and premiums <br/>
<a id="pl.238.35"></a><var>238.35</var>due on any bonds issued for the projects under subdivision 4, paragraph (a), if approved <br/>
<a id="pl.238.36"></a><var>238.36</var>by the voters of the city at the general election in 2012. If the election to authorize the <br/>
<a id="pl.239.1"></a><var>239.1</var>additional $139,500,000 of bonds plus an amount equal to the costs of the issuance of the <br/>
<a id="pl.239.2"></a><var>239.2</var>bonds is placed on the general election ballot in 2012, the city may continue to collect the <br/>
<a id="pl.239.3"></a><var>239.3</var>taxes authorized in subdivisions 1 and 2 until December 31, 2012. The question put to <br/>
<a id="pl.239.4"></a><var>239.4</var>the voters must indicate that an affirmative vote would allow sales tax revenues be raised <br/>
<a id="pl.239.5"></a><var>239.5</var>for an extended period of time and an additional $139,500,000 of bonds plus an amount <br/>
<a id="pl.239.6"></a><var>239.6</var>equal to the costs of issuance of the bonds, to be issued above the amount authorized in <br/>
<a id="pl.239.7"></a><var>239.7</var>the previous elections required under paragraphs (a) and (b) for the projects and amounts <br/>
<a id="pl.239.8"></a><var>239.8</var>specified in subdivision 3. If the taxes authorized in subdivisions 1 and 2 are extended <br/>
<a id="pl.239.9"></a><var>239.9</var>under this paragraph, the taxes expire when the city council determines that $139,500,000 <br/>
<a id="pl.239.10"></a><var>239.10</var>has been received from the taxes to finance the projects plus an amount sufficient to <br/>
<a id="pl.239.11"></a><var>239.11</var>prepay or retire at maturity the principal, interest, and premium due on any bonds issued <br/>
<a id="pl.239.12"></a><var>239.12</var>for the projects under subdivision 4, including any bonds issued to refund the bonds. Any <br/>
<a id="pl.239.13"></a><var>239.13</var>funds remaining after completion of the projects and retirement or redemption of the <br/>
<a id="pl.239.14"></a><var>239.14</var>bonds may be placed in the general fund of the city.<br/>
<a id="pl.239.15"></a><var>239.15</var>(d) The tax imposed under subdivision 1, paragraph (b), expires at the earlier of <br/>
<a id="pl.239.16"></a><var>239.16</var>2046, or when the city council determines that sufficient funds have been raised from the <br/>
<a id="pl.239.17"></a><var>239.17</var>tax plus all other city funding sources authorized in this article to meet the city obligation <br/>
<a id="pl.239.18"></a><var>239.18</var>for financing the public infrastructure projects contained in the development plan adopted <br/>
<a id="pl.239.19"></a><var>239.19</var>under Minnesota Statutes, section 469.42, including all associated financing costs.<br/>
<br/>
<a id="bill.9.17.0"></a><a id="pl.239.20"></a><var>239.20</var>    Sec. 17. Laws 2002, chapter 377, article 3, section 25, as amended by Laws 2009, <br/>
<a id="pl.239.21"></a><var>239.21</var>chapter 88, article 4, section 19, and Laws 2010, chapter 389, article 5, section 3, is <br/>
<a id="pl.239.22"></a><var>239.22</var>amended to read:<br/>
<a id="pl.239.23"></a><var>239.23</var>    Sec. 25. <b>ROCHESTER LODGING TAX.</b><br/>
<a id="pl.239.24"></a><var>239.24</var>    Subdivision 1. <b>Authorization.</b> Notwithstanding Minnesota Statutes, section <br/>
<statute_ref><a id="pl.239.25"></a><var>239.25</var>469.190
         </statute_ref> or 
         <statute_ref>477A.016</statute_ref>, or any other law, the city of Rochester may impose an additional <br/>
<a id="pl.239.26"></a><var>239.26</var>tax of one percent on the gross receipts from the furnishing for consideration of lodging at <br/>
<a id="pl.239.27"></a><var>239.27</var>a hotel, motel, rooming house, tourist court, or resort, other than the renting or leasing of it <br/>
<a id="pl.239.28"></a><var>239.28</var>for a continuous period of 30 days or more.<br/>
<a id="pl.239.29"></a><var>239.29</var>    Subd. 1a. <b>Authorization.</b> Notwithstanding Minnesota Statutes, section 
         <statute_ref>469.190</statute_ref> or <br/>
<statute_ref><a id="pl.239.30"></a><var>239.30</var>477A.016
         </statute_ref>, or any other law, and in addition to the tax authorized by subdivision 1, the city <br/>
<a id="pl.239.31"></a><var>239.31</var>of Rochester may impose an additional tax of one percent on the gross receipts from the <br/>
<a id="pl.239.32"></a><var>239.32</var>furnishing for consideration of lodging at a hotel, motel, rooming house, tourist court, or <br/>
<a id="pl.239.33"></a><var>239.33</var>resort, other than the renting or leasing of it for a continuous period of 30 days or more only <br/>
<a id="pl.239.34"></a><var>239.34</var>upon the approval of the city governing body of a total financial package for the project.<br/>
<a id="pl.240.1"></a><var>240.1</var>    Subd. 1b. <b>Authorization.</b> Notwithstanding Minnesota Statutes, section 469.190 or <br/>
<a id="pl.240.2"></a><var>240.2</var>477A.016, or any other law, and in addition to the taxes authorized by subdivisions 1 and 1a, <br/>
<a id="pl.240.3"></a><var>240.3</var>the city of Rochester may impose an additional tax of 3 percent on the gross receipts from <br/>
<a id="pl.240.4"></a><var>240.4</var>the furnishing for consideration of lodging at a hotel, motel, rooming house, tourist court, <br/>
<a id="pl.240.5"></a><var>240.5</var>or resort, other than the renting or leasing of it for a continuous period of 30 days or more.<br/>
<a id="pl.240.6"></a><var>240.6</var>    Subd. 2. <b>Disposition of proceeds.</b> (a) The gross proceeds from the tax imposed <br/>
<a id="pl.240.7"></a><var>240.7</var>under subdivision 1 must be used by the city to fund a local convention or tourism bureau <br/>
<a id="pl.240.8"></a><var>240.8</var>for the purpose of marketing and promoting the city as a tourist or convention center.<br/>
<a id="pl.240.9"></a><var>240.9</var>(b) The gross proceeds from the one percent tax imposed under subdivision 1a <br/>
<a id="pl.240.10"></a><var>240.10</var>and the three percent tax imposed under subdivision 1b shall be used to pay for (1) <br/>
<a id="pl.240.11"></a><var>240.11</var>construction, renovation, improvement, and expansion of the Mayo Civic Center and <br/>
<a id="pl.240.12"></a><var>240.12</var>related skyway access, lighting, parking, or landscaping; and (2) for payment of any <br/>
<a id="pl.240.13"></a><var>240.13</var>principal, interest, or premium on bonds issued to finance the construction, renovation, <br/>
<a id="pl.240.14"></a><var>240.14</var>improvement, and expansion of the Mayo Civic Center Complex.<br/>
<a id="pl.240.15"></a><var>240.15</var>    Subd. 2a. <b>Bonds.</b> The city of Rochester may issue, without an election, general <br/>
<a id="pl.240.16"></a><var>240.16</var>obligation bonds of the city, in one or more series, in the aggregate principal amount <br/>
<a id="pl.240.17"></a><var>240.17</var>not to exceed $43,500,000, to pay for capital and administrative costs for the design, <br/>
<a id="pl.240.18"></a><var>240.18</var>construction, renovation, improvement, and expansion of the Mayo Civic Center Complex, <br/>
<a id="pl.240.19"></a><var>240.19</var>and related skyway, access, lighting, parking, and landscaping. The city may pledge <br/>
<a id="pl.240.20"></a><var>240.20</var>the lodging tax authorized by subdivision 1a and the food and beverage tax authorized <br/>
<a id="pl.240.21"></a><var>240.21</var>under Laws 2009, chapter 88, article 4, section 23, to the payment of the bonds. The debt <br/>
<a id="pl.240.22"></a><var>240.22</var>represented by the bonds is not included in computing any debt limitations applicable to <br/>
<a id="pl.240.23"></a><var>240.23</var>the city, and the levy of taxes required by Minnesota Statutes, section 
         <statute_ref>475.61</statute_ref>, to pay the <br/>
<a id="pl.240.24"></a><var>240.24</var>principal of and interest on the bonds is not subject to any levy limitation or included in <br/>
<a id="pl.240.25"></a><var>240.25</var>computing or applying any levy limitation applicable to the city.<br/>
<a id="pl.240.26"></a><var>240.26</var>    Subd. 3. <b>Expiration of taxing authority.</b> (a) The authority of the city to impose a <br/>
<a id="pl.240.27"></a><var>240.27</var>tax under subdivision 1a shall expire when the principal and interest on any bonds or other <br/>
<a id="pl.240.28"></a><var>240.28</var>obligations issued prior to December 31, 2014, to finance the construction, renovation, <br/>
<a id="pl.240.29"></a><var>240.29</var>improvement, and expansion of the Mayo Civic Center Complex and related skyway <br/>
<a id="pl.240.30"></a><var>240.30</var>access, lighting, parking, or landscaping have been paid, including any bonds issued to <br/>
<a id="pl.240.31"></a><var>240.31</var>refund such bonds, or at an earlier time as the city shall, by ordinance, determine. Any <br/>
<a id="pl.240.32"></a><var>240.32</var>funds remaining after completion of the project and retirement or redemption of the bonds <br/>
<a id="pl.240.33"></a><var>240.33</var>shall be placed in the general fund of the city.<br/>
<a id="pl.240.34"></a><var>240.34</var>(b) The authority of the city to impose a tax under subdivision 1b shall expire at the <br/>
<a id="pl.240.35"></a><var>240.35</var>earlier of December 31, 2046, or when the city council determines that sufficient funds <br/>
<a id="pl.240.36"></a><var>240.36</var>have been raised from the tax, plus all other local funding sources authorized in this article <br/>
<a id="pl.241.1"></a><var>241.1</var>to meet the city obligation for financing a public infrastructure project contained in the <br/>
<a id="pl.241.2"></a><var>241.2</var>development plan, including associated financing costs.<br/>
<br/>
<a id="bill.9.18.0"></a><a id="pl.241.3"></a><var>241.3</var>    Sec. 18. <b>EFFECTIVE DATE.</b><br/>
<a id="pl.241.4"></a><var>241.4</var>Except as otherwise provided, this article is effective the day after the governing <br/>
<a id="pl.241.5"></a><var>241.5</var>body of the city of Rochester and its chief clerical officer timely comply with Minnesota <br/>
<a id="pl.241.6"></a><var>241.6</var>Statutes, section 645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.10.0.0"></a>

<a id="bill.10.1.0"></a><a id="pl.241.9"></a><var>241.9</var>    Section 1. Minnesota Statutes 2012, section 126C.48, subdivision 8, is amended to read:<br/>
<a id="pl.241.10"></a><var>241.10</var>    Subd. 8. <b>Taconite payment and other reductions.</b> (1) Reductions in levies <br/>
<a id="pl.241.11"></a><var>241.11</var>pursuant to subdivision 1 must be made prior to the reductions in clause (2).<br/>
<a id="pl.241.12"></a><var>241.12</var>(2) Notwithstanding any other law to the contrary, districts that have revenue <br/>
<a id="pl.241.13"></a><var>241.13</var>pursuant to sections 
         <statute_ref>298.018</statute_ref>; 
         <statute_ref>298.225</statute_ref>; 
         <statute_ref>298.24</statute_ref> to 
         <statute_ref>298.28</statute_ref>, except an amount distributed <br/>
<a id="pl.241.14"></a><var>241.14</var>under sections 
         <statute_ref>298.26</statute_ref>; 
         <statute_ref>298.28, subdivision 4</statute_ref>, paragraphs (c), clause (ii), and (d); 
         <statute_ref>298.34</statute_ref> <br/>
<a id="pl.241.15"></a><var>241.15</var>to 
         <statute_ref>298.39</statute_ref>; 
         <statute_ref>298.391</statute_ref> to 
         <statute_ref>298.396</statute_ref>; 
         <statute_ref>298.405</statute_ref>; 
         <statute_ref>477A.15</statute_ref>; and any law imposing a tax upon <br/>
<a id="pl.241.16"></a><var>241.16</var>severed mineral values must reduce the levies authorized by this chapter and chapters <br/>
<a id="pl.241.17"></a><var>241.17</var>120B, 122A, 123A, 123B, 124A, 124D, 125A, and 127A by 95 percent of the sum of the <br/>
<a id="pl.241.18"></a><var>241.18</var>previous year's revenue specified under this clause and the amount attributable to the same <br/>
<a id="pl.241.19"></a><var>241.19</var>production year distributed to the cities and townships within the school district under <br/>
<a id="pl.241.20"></a><var>241.20</var>section 298.28, subdivision 2, paragraph (c).<br/>
<a id="pl.241.21"></a><var>241.21</var>(3) The amount of any voter approved referendum, facilities down payment, and <br/>
<a id="pl.241.22"></a><var>241.22</var>debt levies shall not be reduced by more than 50 percent under this subdivision. In <br/>
<a id="pl.241.23"></a><var>241.23</var>administering this paragraph, the commissioner shall first reduce the nonvoter approved <br/>
<a id="pl.241.24"></a><var>241.24</var>levies of a district; then, if any payments, severed mineral value tax revenue or recognized <br/>
<a id="pl.241.25"></a><var>241.25</var>revenue under paragraph (2) remains, the commissioner shall reduce any voter approved <br/>
<a id="pl.241.26"></a><var>241.26</var>referendum levies authorized under section 
         <statute_ref>126C.17</statute_ref>; then, if any payments, severed <br/>
<a id="pl.241.27"></a><var>241.27</var>mineral value tax revenue or recognized revenue under paragraph (2) remains, the <br/>
<a id="pl.241.28"></a><var>241.28</var>commissioner shall reduce any voter approved facilities down payment levies authorized <br/>
<a id="pl.241.29"></a><var>241.29</var>under section 
         <statute_ref>123B.63</statute_ref> and then, if any payments, severed mineral value tax revenue or <br/>
<a id="pl.241.30"></a><var>241.30</var>recognized revenue under paragraph (2) remains, the commissioner shall reduce any <br/>
<a id="pl.241.31"></a><var>241.31</var>voter approved debt levies.<br/>
<a id="pl.241.32"></a><var>241.32</var>(4) Before computing the reduction pursuant to this subdivision of the health and <br/>
<a id="pl.241.33"></a><var>241.33</var>safety levy authorized by sections 
         <statute_ref>123B.57</statute_ref> and 
         <statute_ref>126C.40, subdivision 5</statute_ref>, the commissioner <br/>
<a id="pl.241.34"></a><var>241.34</var>shall ascertain from each affected school district the amount it proposes to levy under <br/>
<a id="pl.242.1"></a><var>242.1</var>each section or subdivision. The reduction shall be computed on the basis of the amount <br/>
<a id="pl.242.2"></a><var>242.2</var>so ascertained.<br/>
<a id="pl.242.3"></a><var>242.3</var>(5) To the extent the levy reduction calculated under paragraph (2) exceeds the <br/>
<a id="pl.242.4"></a><var>242.4</var>limitation in paragraph (3), an amount equal to the excess must be distributed from the <br/>
<a id="pl.242.5"></a><var>242.5</var>school district's distribution under sections 
         <statute_ref>298.225</statute_ref>, 
         <statute_ref>298.28</statute_ref>, and 
         <statute_ref>477A.15</statute_ref> in the following <br/>
<a id="pl.242.6"></a><var>242.6</var>year to the cities and townships within the school district in the proportion that their <br/>
<a id="pl.242.7"></a><var>242.7</var>taxable net tax capacity within the school district bears to the taxable net tax capacity of <br/>
<a id="pl.242.8"></a><var>242.8</var>the school district for property taxes payable in the year prior to distribution. No city or <br/>
<a id="pl.242.9"></a><var>242.9</var>township shall receive a distribution greater than its levy for taxes payable in the year prior <br/>
<a id="pl.242.10"></a><var>242.10</var>to distribution. The commissioner of revenue shall certify the distributions of cities and <br/>
<a id="pl.242.11"></a><var>242.11</var>towns under this paragraph to the county auditor by September 30 of the year preceding <br/>
<a id="pl.242.12"></a><var>242.12</var>distribution. The county auditor shall reduce the proposed and final levies of cities and <br/>
<a id="pl.242.13"></a><var>242.13</var>towns receiving distributions by the amount of their distribution. Distributions to the cities <br/>
<a id="pl.242.14"></a><var>242.14</var>and towns shall be made at the times provided under section 
         <statute_ref>298.27</statute_ref>.<br/>
<a id="pl.242.15"></a><var>242.15</var><b>EFFECTIVE DATE.</b>This section is effective for levies certified in 2013 and later.<br/>
<br/>
<a id="bill.10.2.0"></a><a id="pl.242.16"></a><var>242.16</var>    Sec. 2. Minnesota Statutes 2012, section 298.17, is amended to read:<br/>
<a id="pl.242.17"></a><var>242.17</var><b>298.17 OCCUPATION TAXES TO BE APPORTIONED.</b><br/>
<a id="pl.242.18"></a><var>242.18</var>(a) All occupation taxes paid by persons, copartnerships, companies, joint stock <br/>
<a id="pl.242.19"></a><var>242.19</var>companies, corporations, and associations, however or for whatever purpose organized, <br/>
<a id="pl.242.20"></a><var>242.20</var>engaged in the business of mining or producing iron ore or other ores, when collected <br/>
<a id="pl.242.21"></a><var>242.21</var>shall be apportioned and distributed in accordance with the Constitution of the state of <br/>
<a id="pl.242.22"></a><var>242.22</var>Minnesota, article X, section 3, in the manner following: 90 percent shall be deposited <br/>
<a id="pl.242.23"></a><var>242.23</var>in the state treasury and credited to the general fund of which four-ninths shall be used <br/>
<a id="pl.242.24"></a><var>242.24</var>for the support of elementary and secondary schools; and ten percent of the proceeds of <br/>
<a id="pl.242.25"></a><var>242.25</var>the tax imposed by this section shall be deposited in the state treasury and credited to the <br/>
<a id="pl.242.26"></a><var>242.26</var>general fund for the general support of the university.<br/>
<a id="pl.242.27"></a><var>242.27</var>(b) Of the moneys apportioned to the general fund by this section: (1) there is <br/>
<a id="pl.242.28"></a><var>242.28</var>annually appropriated and credited to the mining environmental and regulatory account in <br/>
<a id="pl.242.29"></a><var>242.29</var>the special revenue fund an amount equal to that which would have been generated by a five <br/>
<a id="pl.242.30"></a><var>242.30</var>cent tax imposed by section 
<statute_ref>298.24</statute_ref> on each taxable ton produced in the preceding calendar <br/>
<a id="pl.242.31"></a><var>242.31</var>year. Money in the mining environmental and regulatory account is appropriated annually <br/>
<a id="pl.242.32"></a><var>242.32</var>to the commissioner of natural resources to fund agency staff to work on environmental <br/>
<a id="pl.242.33"></a><var>242.33</var>issues and provide regulatory services for ferrous and nonferrous mining operations in this <br/>
<a id="pl.242.34"></a><var>242.34</var>state. Payment to the mining environmental and regulatory account shall be made by July <br/>
<a id="pl.243.1"></a><var>243.1</var>1 annually. The commissioner of natural resources shall execute an interagency agreement <br/>
<a id="pl.243.2"></a><var>243.2</var>with the pollution control agency to assist with the provision of environmental regulatory <br/>
<a id="pl.243.3"></a><var>243.3</var>services such as monitoring and permitting required for ferrous and nonferrous mining <br/>
<a id="pl.243.4"></a><var>243.4</var>operations; and (2) there is annually appropriated and credited to the Iron Range Resources <br/>
<a id="pl.243.5"></a><var>243.5</var>and Rehabilitation Board account in the special revenue fund an amount equal to that which <br/>
<a id="pl.243.6"></a><var>243.6</var>would have been generated by a 1.5 cent tax imposed by section 
         <statute_ref>298.24</statute_ref> on each taxable ton <br/>
<a id="pl.243.7"></a><var>243.7</var>produced in the preceding calendar year, to be expended for the purposes of section 
         <statute_ref>298.22</statute_ref>.<br/>
<a id="pl.243.8"></a><var>243.8</var>The money appropriated pursuant to this section clause (2) shall be used (1) (i)<br/>
<a id="pl.243.9"></a><var>243.9</var> to provide environmental development grants to local governments located within any <br/>
<a id="pl.243.10"></a><var>243.10</var>county in region 3 as defined in governor's executive order number 60, issued on June <br/>
<a id="pl.243.11"></a><var>243.11</var>12, 1970, which does not contain a municipality qualifying pursuant to section 
         <statute_ref>273.134, <br/>
<a id="pl.243.12"></a><var>243.12</var>paragraph (b)
         </statute_ref>, or (2) (ii) to provide economic development loans or grants to businesses <br/>
<a id="pl.243.13"></a><var>243.13</var>located within any such county, provided that the county board or an advisory group <br/>
<a id="pl.243.14"></a><var>243.14</var>appointed by the county board to provide recommendations on economic development <br/>
<a id="pl.243.15"></a><var>243.15</var>shall make recommendations to the Iron Range Resources and Rehabilitation Board <br/>
<a id="pl.243.16"></a><var>243.16</var>regarding the loans. Payment to the Iron Range Resources and Rehabilitation Board <br/>
<a id="pl.243.17"></a><var>243.17</var>account shall be made by May 15 annually.<br/>
<a id="pl.243.18"></a><var>243.18</var>(c) Of the money allocated to Koochiching County, one-third must be paid to the <br/>
<a id="pl.243.19"></a><var>243.19</var>Koochiching County Economic Development Commission.<br/>
<a id="pl.243.20"></a><var>243.20</var><b>EFFECTIVE DATE.</b>This section is effective beginning for the 2013 production <br/>
<a id="pl.243.21"></a><var>243.21</var>year.<br/>
<br/>
<a id="bill.10.3.0"></a><a id="pl.243.22"></a><var>243.22</var>    Sec. 3. Minnesota Statutes 2012, section 298.227, as amended by Laws 2013, chapter <br/>
<a id="pl.243.23"></a><var>243.23</var>3, section 17, is amended to read:<br/>
<a id="pl.243.24"></a><var>243.24</var><b>298.227 TACONITE ECONOMIC DEVELOPMENT FUND.</b><br/>
<a id="pl.243.25"></a><var>243.25</var>    (a) An amount equal to that distributed pursuant to each taconite producer's taxable <br/>
<a id="pl.243.26"></a><var>243.26</var>production and qualifying sales under section 
         <statute_ref>298.28, subdivision 9a</statute_ref>, shall be held by <br/>
<a id="pl.243.27"></a><var>243.27</var>the Iron Range Resources and Rehabilitation Board in a separate taconite economic <br/>
<a id="pl.243.28"></a><var>243.28</var>development fund for each taconite and direct reduced ore producer. Money from the <br/>
<a id="pl.243.29"></a><var>243.29</var>fund for each producer shall be released by the commissioner after review by a joint <br/>
<a id="pl.243.30"></a><var>243.30</var>committee consisting of an equal number of representatives of the salaried employees and <br/>
<a id="pl.243.31"></a><var>243.31</var>the nonsalaried production and maintenance employees of that producer. The District 11 <br/>
<a id="pl.243.32"></a><var>243.32</var>director of the United States Steelworkers of America, on advice of each local employee <br/>
<a id="pl.243.33"></a><var>243.33</var>president, shall select the employee members. In nonorganized operations, the employee <br/>
<a id="pl.243.34"></a><var>243.34</var>committee shall be elected by the nonsalaried production and maintenance employees. The <br/>
<a id="pl.244.1"></a><var>244.1</var>review must be completed no later than six months after the producer presents a proposal <br/>
<a id="pl.244.2"></a><var>244.2</var>for expenditure of the funds to the committee. The funds held pursuant to this section may <br/>
<a id="pl.244.3"></a><var>244.3</var>be released only for workforce development and associated public facility improvement, <br/>
<a id="pl.244.4"></a><var>244.4</var>or for acquisition of plant and stationary mining equipment and facilities for the producer <br/>
<a id="pl.244.5"></a><var>244.5</var>or for research and development in Minnesota on new mining, or taconite, iron, or steel <br/>
<a id="pl.244.6"></a><var>244.6</var>production technology, but only if the producer provides a matching expenditure to be used <br/>
<a id="pl.244.7"></a><var>244.7</var>for the same purpose of at least 50 percent equal to the amount of the distribution based on <br/>
<a id="pl.244.8"></a><var>244.8</var>14.7 cents per ton beginning with distributions in 2002 2013. Effective for proposals for <br/>
<a id="pl.244.9"></a><var>244.9</var>expenditures of money from the fund beginning May 26, 2007, the commissioner may not <br/>
<a id="pl.244.10"></a><var>244.10</var>release the funds before the next scheduled meeting of the board. If a proposed expenditure <br/>
<a id="pl.244.11"></a><var>244.11</var>is not approved by the board, the funds must be deposited in the Taconite Environmental <br/>
<a id="pl.244.12"></a><var>244.12</var>Protection Fund under sections 
         <statute_ref>298.222</statute_ref> to 
         <statute_ref>298.225</statute_ref>. If a producer uses money which has <br/>
<a id="pl.244.13"></a><var>244.13</var>been released from the fund prior to May 26, 2007 to procure haulage trucks, mobile <br/>
<a id="pl.244.14"></a><var>244.14</var>equipment, or mining shovels, and the producer removes the piece of equipment from the <br/>
<a id="pl.244.15"></a><var>244.15</var>taconite tax relief area defined in section 
         <statute_ref>273.134</statute_ref> within ten years from the date of receipt <br/>
<a id="pl.244.16"></a><var>244.16</var>of the money from the fund, a portion of the money granted from the fund must be repaid <br/>
<a id="pl.244.17"></a><var>244.17</var>to the taconite economic development fund. The portion of the money to be repaid is 100 <br/>
<a id="pl.244.18"></a><var>244.18</var>percent of the grant if the equipment is removed from the taconite tax relief area within 12 <br/>
<a id="pl.244.19"></a><var>244.19</var>months after receipt of the money from the fund, declining by ten percent for each of the <br/>
<a id="pl.244.20"></a><var>244.20</var>subsequent nine years during which the equipment remains within the taconite tax relief <br/>
<a id="pl.244.21"></a><var>244.21</var>area. If a taconite production facility is sold after operations at the facility had ceased, any <br/>
<a id="pl.244.22"></a><var>244.22</var>money remaining in the fund for the former producer may be released to the purchaser of <br/>
<a id="pl.244.23"></a><var>244.23</var>the facility on the terms otherwise applicable to the former producer under this section. If <br/>
<a id="pl.244.24"></a><var>244.24</var>a producer fails to provide matching funds for a proposed expenditure within six months <br/>
<a id="pl.244.25"></a><var>244.25</var>after the commissioner approves release of the funds, the funds are available for release to <br/>
<a id="pl.244.26"></a><var>244.26</var>another producer in proportion to the distribution provided and under the conditions of <br/>
<a id="pl.244.27"></a><var>244.27</var>this section. Any portion of the fund which is not released by the commissioner within <br/>
<a id="pl.244.28"></a><var>244.28</var>one year of its deposit in the fund shall be divided between the taconite environmental <br/>
<a id="pl.244.29"></a><var>244.29</var>protection fund created in section 
         <statute_ref>298.223 </statute_ref>and the Douglas J. Johnson economic protection <br/>
<a id="pl.244.30"></a><var>244.30</var>trust fund created in section 
         <statute_ref>298.292</statute_ref> for placement in their respective special accounts. <br/>
<a id="pl.244.31"></a><var>244.31</var>Two-thirds of the unreleased funds shall be distributed to the taconite environmental <br/>
<a id="pl.244.32"></a><var>244.32</var>protection fund and one-third to the Douglas J. Johnson economic protection trust fund.<br/>
<a id="pl.244.33"></a><var>244.33</var>    (b)(i) Notwithstanding the requirements of paragraph (a), setting the amount of <br/>
<a id="pl.244.34"></a><var>244.34</var>distributions and the review process, an amount equal to ten cents per taxable ton of <br/>
<a id="pl.244.35"></a><var>244.35</var>production in 2007, for distribution in 2008 only, that would otherwise be distributed <br/>
<a id="pl.244.36"></a><var>244.36</var>under paragraph (a), may be used for a loan or grant for the cost of providing for a <br/>
<a id="pl.245.1"></a><var>245.1</var>value-added wood product facility located in the taconite tax relief area and in a county <br/>
<a id="pl.245.2"></a><var>245.2</var>that contains a city of the first class. This amount must be deducted from the distribution <br/>
<a id="pl.245.3"></a><var>245.3</var>under paragraph (a) for which a matching expenditure by the producer is not required. The <br/>
<a id="pl.245.4"></a><var>245.4</var>granting of the loan or grant is subject to approval by the board. If the money is provided <br/>
<a id="pl.245.5"></a><var>245.5</var>as a loan, interest must be payable on the loan at the rate prescribed in section 
         <statute_ref>298.2213, <br/>
<a id="pl.245.6"></a><var>245.6</var>subdivision 3
         </statute_ref>. (ii) Repayments of the loan and interest, if any, must be deposited in the <br/>
<a id="pl.245.7"></a><var>245.7</var>taconite environment protection fund under sections 
         <statute_ref>298.222</statute_ref> to 
         <statute_ref>298.225</statute_ref>. If a loan or <br/>
<a id="pl.245.8"></a><var>245.8</var>grant is not made under this paragraph by July 1, 2012, the amount that had been made <br/>
<a id="pl.245.9"></a><var>245.9</var>available for the loan under this paragraph must be transferred to the taconite environment <br/>
<a id="pl.245.10"></a><var>245.10</var>protection fund under sections 
         <statute_ref>298.222</statute_ref> to 
         <statute_ref>298.225</statute_ref>. (iii) Money distributed in 2008 to the <br/>
<a id="pl.245.11"></a><var>245.11</var>fund established under this section that exceeds ten cents per ton is available to qualifying <br/>
<a id="pl.245.12"></a><var>245.12</var>producers under paragraph (a) on a pro rata basis.<br/>
<a id="pl.245.13"></a><var>245.13</var>(c) Repayment or transfer of money to the taconite environmental protection fund <br/>
<a id="pl.245.14"></a><var>245.14</var>under paragraph (b), item (ii), must be allocated by the Iron Range Resources and <br/>
<a id="pl.245.15"></a><var>245.15</var>Rehabilitation Board for public works projects in house legislative districts in the same <br/>
<a id="pl.245.16"></a><var>245.16</var>proportion as taxable tonnage of production in 2007 in each house legislative district, for <br/>
<a id="pl.245.17"></a><var>245.17</var>distribution in 2008, bears to total taxable tonnage of production in 2007, for distribution <br/>
<a id="pl.245.18"></a><var>245.18</var>in 2008. Notwithstanding any other law to the contrary, expenditures under this paragraph <br/>
<a id="pl.245.19"></a><var>245.19</var>do not require approval by the governor. For purposes of this paragraph, "house legislative <br/>
<a id="pl.245.20"></a><var>245.20</var>districts" means the legislative districts in existence on May 15, 2009.<br/>
<a id="pl.245.21"></a><var>245.21</var><b>EFFECTIVE DATE.</b>This section is effective beginning for the 2013 distribution.<br/>
<br/>
<a id="bill.10.4.0"></a><a id="pl.245.22"></a><var>245.22</var>    Sec. 4. Minnesota Statutes 2012, section 298.24, subdivision 1, is amended to read:<br/>
<a id="pl.245.23"></a><var>245.23</var>    Subdivision 1. <b>Imposed; calculation.</b> (a) For concentrate produced in 2001, 2002, <br/>
<a id="pl.245.24"></a><var>245.24</var>and 2003 2013, there is imposed upon taconite and iron sulphides, and upon the mining <br/>
<a id="pl.245.25"></a><var>245.25</var>and quarrying thereof, and upon the production of iron ore concentrate therefrom, and <br/>
<a id="pl.245.26"></a><var>245.26</var>upon the concentrate so produced, a tax of $2.103 $2.56 per gross ton of merchantable <br/>
<a id="pl.245.27"></a><var>245.27</var>iron ore concentrate produced therefrom. For concentrates produced in 2005, the tax rate <br/>
<a id="pl.245.28"></a><var>245.28</var>is the same rate imposed for concentrates produced in 2004. For concentrates produced in <br/>
<a id="pl.245.29"></a><var>245.29</var>2009 and subsequent years, The tax is also imposed upon other iron-bearing material.<br/>
<a id="pl.245.30"></a><var>245.30</var>    (b) For concentrates produced in 2006 2014 and subsequent years, the tax rate shall <br/>
<a id="pl.245.31"></a><var>245.31</var>be equal to the preceding year's tax rate plus an amount equal to the preceding year's tax <br/>
<a id="pl.245.32"></a><var>245.32</var>rate multiplied by the percentage increase in the implicit price deflator from the fourth <br/>
<a id="pl.245.33"></a><var>245.33</var>quarter of the second preceding year to the fourth quarter of the preceding year. "Implicit <br/>
<a id="pl.245.34"></a><var>245.34</var>price deflator" means the implicit price deflator for the gross domestic product prepared by <br/>
<a id="pl.245.35"></a><var>245.35</var>the Bureau of Economic Analysis of the United States Department of Commerce.<br/>
<a id="pl.246.1"></a><var>246.1</var>    (c) An additional tax is imposed equal to three cents per gross ton of merchantable <br/>
<a id="pl.246.2"></a><var>246.2</var>iron ore concentrate for each one percent that the iron content of the product exceeds 72 <br/>
<a id="pl.246.3"></a><var>246.3</var>percent, when dried at 212 degrees Fahrenheit.<br/>
<a id="pl.246.4"></a><var>246.4</var>    (d) The tax on taconite and iron sulphides shall be imposed on the average of the <br/>
<a id="pl.246.5"></a><var>246.5</var>production for the current year and the previous two years. The rate of the tax imposed <br/>
<a id="pl.246.6"></a><var>246.6</var>will be the current year's tax rate. This clause shall not apply in the case of the closing <br/>
<a id="pl.246.7"></a><var>246.7</var>of a taconite facility if the property taxes on the facility would be higher if this clause <br/>
<a id="pl.246.8"></a><var>246.8</var>and section 
         <statute_ref>298.25</statute_ref> were not applicable. The tax on other iron-bearing material shall be <br/>
<a id="pl.246.9"></a><var>246.9</var>imposed on the current year production.<br/>
<a id="pl.246.10"></a><var>246.10</var>    (e) If the tax or any part of the tax imposed by this subdivision is held to be <br/>
<a id="pl.246.11"></a><var>246.11</var>unconstitutional, a tax of $2.103 per gross ton of merchantable iron ore concentrate <br/>
<a id="pl.246.12"></a><var>246.12</var>produced shall be imposed.<br/>
<a id="pl.246.13"></a><var>246.13</var>    (f) Consistent with the intent of this subdivision to impose a tax based upon the <br/>
<a id="pl.246.14"></a><var>246.14</var>weight of merchantable iron ore concentrate, the commissioner of revenue may indirectly <br/>
<a id="pl.246.15"></a><var>246.15</var>determine the weight of merchantable iron ore concentrate included in fluxed pellets by <br/>
<a id="pl.246.16"></a><var>246.16</var>subtracting the weight of the limestone, dolomite, or olivine derivatives or other basic <br/>
<a id="pl.246.17"></a><var>246.17</var>flux additives included in the pellets from the weight of the pellets. For purposes of this <br/>
<a id="pl.246.18"></a><var>246.18</var>paragraph, "fluxed pellets" are pellets produced in a process in which limestone, dolomite, <br/>
<a id="pl.246.19"></a><var>246.19</var>olivine, or other basic flux additives are combined with merchantable iron ore concentrate. <br/>
<a id="pl.246.20"></a><var>246.20</var>No subtraction from the weight of the pellets shall be allowed for binders, mineral and <br/>
<a id="pl.246.21"></a><var>246.21</var>chemical additives other than basic flux additives, or moisture.<br/>
<a id="pl.246.22"></a><var>246.22</var>    (g)(1) Notwithstanding any other provision of this subdivision, for the first two years <br/>
<a id="pl.246.23"></a><var>246.23</var>of a plant's commercial production of direct reduced ore from ore mined in this state, no <br/>
<a id="pl.246.24"></a><var>246.24</var>tax is imposed under this section. As used in this paragraph, "commercial production" is <br/>
<a id="pl.246.25"></a><var>246.25</var>production of more than 50,000 tons of direct reduced ore in the current year or in any prior <br/>
<a id="pl.246.26"></a><var>246.26</var>year, "noncommercial production" is production of 50,000 tons or less of direct reduced ore <br/>
<a id="pl.246.27"></a><var>246.27</var>in any year, and "direct reduced ore" is ore that results in a product that has an iron content <br/>
<a id="pl.246.28"></a><var>246.28</var>of at least 75 percent. For the third year of a plant's commercial production of direct <br/>
<a id="pl.246.29"></a><var>246.29</var>reduced ore, the rate to be applied to direct reduced ore is 25 percent of the rate otherwise <br/>
<a id="pl.246.30"></a><var>246.30</var>determined under this subdivision. For the fourth commercial production year, the rate is <br/>
<a id="pl.246.31"></a><var>246.31</var>50 percent of the rate otherwise determined under this subdivision; for the fifth commercial <br/>
<a id="pl.246.32"></a><var>246.32</var>production year, the rate is 75 percent of the rate otherwise determined under this <br/>
<a id="pl.246.33"></a><var>246.33</var>subdivision; and for all subsequent commercial production years, the full rate is imposed.<br/>
<a id="pl.246.34"></a><var>246.34</var>    (2) Subject to clause (1), production of direct reduced ore in this state is subject to <br/>
<a id="pl.246.35"></a><var>246.35</var>the tax imposed by this section, but if that production is not produced by a producer of <br/>
<a id="pl.246.36"></a><var>246.36</var>taconite, iron sulfides, or other iron-bearing material, the production of taconite, iron <br/>
<a id="pl.247.1"></a><var>247.1</var>sulfides, or other iron-bearing material, that is consumed in the production of direct <br/>
<a id="pl.247.2"></a><var>247.2</var>reduced iron in this state is not subject to the tax imposed by this section on taconite, <br/>
<a id="pl.247.3"></a><var>247.3</var>iron sulfides, or other iron-bearing material.<br/>
<a id="pl.247.4"></a><var>247.4</var>    (3) Notwithstanding any other provision of this subdivision, no tax is imposed <br/>
<a id="pl.247.5"></a><var>247.5</var>on direct reduced ore under this section during the facility's noncommercial production <br/>
<a id="pl.247.6"></a><var>247.6</var>of direct reduced ore. The taconite or iron sulphides consumed in the noncommercial <br/>
<a id="pl.247.7"></a><var>247.7</var>production of direct reduced ore is subject to the tax imposed by this section on taconite <br/>
<a id="pl.247.8"></a><var>247.8</var>and iron sulphides. Three-year average production of direct reduced ore does not <br/>
<a id="pl.247.9"></a><var>247.9</var>include production of direct reduced ore in any noncommercial year. Three-year average <br/>
<a id="pl.247.10"></a><var>247.10</var>production for a direct reduced ore facility that has noncommercial production is the <br/>
<a id="pl.247.11"></a><var>247.11</var>average of the commercial production of direct reduced ore for the current year and the <br/>
<a id="pl.247.12"></a><var>247.12</var>previous two commercial years.<br/>
<a id="pl.247.13"></a><var>247.13</var>    (4) This paragraph applies only to plants for which all environmental permits have <br/>
<a id="pl.247.14"></a><var>247.14</var>been obtained and construction has begun before July 1, 2008.<br/>
<a id="pl.247.15"></a><var>247.15</var><b>EFFECTIVE DATE.</b>This section is effective beginning for the 2013 production <br/>
<a id="pl.247.16"></a><var>247.16</var>year.<br/>
<br/>
<a id="bill.10.5.0"></a><a id="pl.247.17"></a><var>247.17</var>    Sec. 5. Minnesota Statutes 2012, section 298.28, subdivision 4, is amended to read:<br/>
<a id="pl.247.18"></a><var>247.18</var>    Subd. 4. <b>School districts.</b> (a) 23.15 32.15 cents per taxable ton, plus the increase <br/>
<a id="pl.247.19"></a><var>247.19</var>provided in paragraph (d), less the amount that would have been computed under <br/>
<a id="pl.247.20"></a><var>247.20</var>Minnesota Statutes 2008, section 
         <statute_ref>126C.21, subdivision 4</statute_ref>, for the current year for that <br/>
<a id="pl.247.21"></a><var>247.21</var>district, must be allocated to qualifying school districts to be distributed, based upon the <br/>
<a id="pl.247.22"></a><var>247.22</var>certification of the commissioner of revenue, under paragraphs (b), (c), and (f).<br/>
<a id="pl.247.23"></a><var>247.23</var>    (b)(i) 3.43 cents per taxable ton must be distributed to the school districts in which <br/>
<a id="pl.247.24"></a><var>247.24</var>the lands from which taconite was mined or quarried were located or within which the <br/>
<a id="pl.247.25"></a><var>247.25</var>concentrate was produced. The distribution must be based on the apportionment formula <br/>
<a id="pl.247.26"></a><var>247.26</var>prescribed in subdivision 2.<br/>
<a id="pl.247.27"></a><var>247.27</var>    (ii) Four cents per taxable ton from each taconite facility must be distributed to <br/>
<a id="pl.247.28"></a><var>247.28</var>each affected school district for deposit in a fund dedicated to building maintenance <br/>
<a id="pl.247.29"></a><var>247.29</var>and repairs, as follows:<br/>
<a id="pl.247.30"></a><var>247.30</var>    (1) proceeds from Keewatin Taconite or its successor are distributed to Independent <br/>
<a id="pl.247.31"></a><var>247.31</var>School Districts Nos. 316, Coleraine, and 319, Nashwauk-Keewatin, or their successor <br/>
<a id="pl.247.32"></a><var>247.32</var>districts;<br/>
<a id="pl.247.33"></a><var>247.33</var>    (2) proceeds from the Hibbing Taconite Company or its successor are distributed to <br/>
<a id="pl.247.34"></a><var>247.34</var>Independent School Districts Nos. 695, Chisholm, and 701, Hibbing, or their successor <br/>
<a id="pl.247.35"></a><var>247.35</var>districts;<br/>
<a id="pl.248.1"></a><var>248.1</var>    (3) proceeds from the Mittal Steel Company and Minntac or their successors are <br/>
<a id="pl.248.2"></a><var>248.2</var>distributed to Independent School Districts Nos. 712, Mountain Iron-Buhl, 706, Virginia, <br/>
<a id="pl.248.3"></a><var>248.3</var>2711, Mesabi East, and 2154, Eveleth-Gilbert, or their successor districts;<br/>
<a id="pl.248.4"></a><var>248.4</var>    (4) proceeds from the Northshore Mining Company or its successor are distributed <br/>
<a id="pl.248.5"></a><var>248.5</var>to Independent School Districts Nos. 2142, St. Louis County, and 381, Lake Superior, <br/>
<a id="pl.248.6"></a><var>248.6</var>or their successor districts; and<br/>
<a id="pl.248.7"></a><var>248.7</var>    (5) proceeds from United Taconite or its successor are distributed to Independent <br/>
<a id="pl.248.8"></a><var>248.8</var>School Districts Nos. 2142, St. Louis County, and 2154, Eveleth-Gilbert, or their <br/>
<a id="pl.248.9"></a><var>248.9</var>successor districts.<br/>
<a id="pl.248.10"></a><var>248.10</var>    Revenues that are required to be distributed to more than one district shall be <br/>
<a id="pl.248.11"></a><var>248.11</var>apportioned according to the number of pupil units identified in section 
         <statute_ref>126C.05, <br/>
<a id="pl.248.12"></a><var>248.12</var>subdivision 1
         </statute_ref>, enrolled in the second previous year.<br/>
<a id="pl.248.13"></a><var>248.13</var>    (c)(i) 15.72 24.72 cents per taxable ton, less any amount distributed under paragraph <br/>
<a id="pl.248.14"></a><var>248.14</var>(e), shall be distributed to a group of school districts comprised of those school districts <br/>
<a id="pl.248.15"></a><var>248.15</var>which qualify as a tax relief area under section 
         <statute_ref>273.134, paragraph (b)</statute_ref>, or in which there is <br/>
<a id="pl.248.16"></a><var>248.16</var>a qualifying municipality as defined by section 
         <statute_ref>273.134, paragraph (a)</statute_ref>, in direct proportion <br/>
<a id="pl.248.17"></a><var>248.17</var>to school district indexes as follows: for each school district, its pupil units determined <br/>
<a id="pl.248.18"></a><var>248.18</var>under section 
         <statute_ref>126C.05</statute_ref> for the prior school year shall be multiplied by the ratio of the <br/>
<a id="pl.248.19"></a><var>248.19</var>average adjusted net tax capacity per pupil unit for school districts receiving aid under <br/>
<a id="pl.248.20"></a><var>248.20</var>this clause as calculated pursuant to chapters 122A, 126C, and 127A for the school year <br/>
<a id="pl.248.21"></a><var>248.21</var>ending prior to distribution to the adjusted net tax capacity per pupil unit of the district. <br/>
<a id="pl.248.22"></a><var>248.22</var>Each district shall receive that portion of the distribution which its index bears to the sum <br/>
<a id="pl.248.23"></a><var>248.23</var>of the indices for all school districts that receive the distributions.<br/>
<a id="pl.248.24"></a><var>248.24</var>    (ii) Notwithstanding clause (i), each school district that receives a distribution <br/>
<a id="pl.248.25"></a><var>248.25</var>under sections 
         <statute_ref>298.018</statute_ref>; 
         <statute_ref>298.23</statute_ref> to 
         <statute_ref>298.28</statute_ref>, exclusive of any amount received under this <br/>
<a id="pl.248.26"></a><var>248.26</var>clause; 
         <statute_ref>298.34</statute_ref> to 
         <statute_ref>298.39</statute_ref>; 
         <statute_ref>298.391</statute_ref> to 
         <statute_ref>298.396</statute_ref>; 
         <statute_ref>298.405</statute_ref>; or any law imposing a tax on <br/>
<a id="pl.248.27"></a><var>248.27</var>severed mineral values after reduction for any portion distributed to cities and towns <br/>
<a id="pl.248.28"></a><var>248.28</var>under section 
         <statute_ref>126C.48, subdivision 8</statute_ref>, paragraph (5), that is less than the amount of its <br/>
<a id="pl.248.29"></a><var>248.29</var>levy reduction under section 
         <statute_ref>126C.48, subdivision 8</statute_ref>, for the second year prior to the <br/>
<a id="pl.248.30"></a><var>248.30</var>year of the distribution shall receive a distribution equal to the difference; the amount <br/>
<a id="pl.248.31"></a><var>248.31</var>necessary to make this payment shall be derived from proportionate reductions in the <br/>
<a id="pl.248.32"></a><var>248.32</var>initial distribution to other school districts under clause (i). If there are insufficient tax <br/>
<a id="pl.248.33"></a><var>248.33</var>proceeds to make the distribution provided under this paragraph in any year, money must <br/>
<a id="pl.248.34"></a><var>248.34</var>be transferred from the taconite property tax relief account in subdivision 6, to the extent <br/>
<a id="pl.248.35"></a><var>248.35</var>of the shortfall in the distribution.<br/>
<a id="pl.249.1"></a><var>249.1</var>    (d)(1) Any school district described in paragraph (c) where a levy increase pursuant <br/>
<a id="pl.249.2"></a><var>249.2</var>to section 
         <statute_ref>126C.17, subdivision 9</statute_ref>, was authorized by referendum for taxes payable in <br/>
<a id="pl.249.3"></a><var>249.3</var>2001, shall receive a distribution of 21.3 cents per ton. Each district shall receive $175 <br/>
<a id="pl.249.4"></a><var>249.4</var>times the pupil units identified in section 
         <statute_ref>126C.05, subdivision 1</statute_ref>, enrolled in the second <br/>
<a id="pl.249.5"></a><var>249.5</var>previous year or the 1983-1984 school year, whichever is greater, less the product of 1.8 <br/>
<a id="pl.249.6"></a><var>249.6</var>percent times the district's taxable net tax capacity in the second previous year 2011.<br/>
<a id="pl.249.7"></a><var>249.7</var>(2) Districts qualifying under clause (d)(1) must also receive 22.5 percent of the sum <br/>
<a id="pl.249.8"></a><var>249.8</var>of $415 plus the referendum allowance on the payable 2012 levy limitation, multiplied by <br/>
<a id="pl.249.9"></a><var>249.9</var>the district's weight average daily membership in school year 2011-2012, less the product <br/>
<a id="pl.249.10"></a><var>249.10</var>of 1.8 percent of the districts taxable net tax capacity in 2011.<br/>
<a id="pl.249.11"></a><var>249.11</var>    If the total amount provided by paragraph (d) is insufficient to make the payments <br/>
<a id="pl.249.12"></a><var>249.12</var>herein required then the entitlement of $175 per pupil unit shall be reduced uniformly <br/>
<a id="pl.249.13"></a><var>249.13</var>so as not to exceed the funds available. Any amounts received by a qualifying school <br/>
<a id="pl.249.14"></a><var>249.14</var>district in any fiscal year pursuant to paragraph (d) shall not be applied to reduce general <br/>
<a id="pl.249.15"></a><var>249.15</var>education aid which the district receives pursuant to section 
         <statute_ref>126C.13</statute_ref> or the permissible <br/>
<a id="pl.249.16"></a><var>249.16</var>levies of the district. Any amount remaining after the payments provided in this paragraph <br/>
<a id="pl.249.17"></a><var>249.17</var>shall be paid to the commissioner of Iron Range resources and rehabilitation who shall <br/>
<a id="pl.249.18"></a><var>249.18</var>deposit the same in the taconite environmental protection fund and the Douglas J. Johnson <br/>
<a id="pl.249.19"></a><var>249.19</var>economic protection trust fund as provided in subdivision 11.<br/>
<a id="pl.249.20"></a><var>249.20</var>    Each district receiving money according to this paragraph shall reserve the lesser of <br/>
<a id="pl.249.21"></a><var>249.21</var>the amount received under this paragraph or $25 times the number of pupil units served <br/>
<a id="pl.249.22"></a><var>249.22</var>in the district. It may use the money for early childhood programs or for outcome-based <br/>
<a id="pl.249.23"></a><var>249.23</var>learning programs that enhance the academic quality of the district's curriculum. The <br/>
<a id="pl.249.24"></a><var>249.24</var>outcome-based learning programs must be approved by the commissioner of education.<br/>
<a id="pl.249.25"></a><var>249.25</var>    (e) There shall be distributed to any school district the amount which the school <br/>
<a id="pl.249.26"></a><var>249.26</var>district was entitled to receive under section 
         <statute_ref>298.32</statute_ref> in 1975.<br/>
<a id="pl.249.27"></a><var>249.27</var>    (f) Four cents per taxable ton must be distributed to qualifying school districts <br/>
<a id="pl.249.28"></a><var>249.28</var>according to the distribution specified in paragraph (b), clause (ii), and two eleven cents <br/>
<a id="pl.249.29"></a><var>249.29</var>per taxable ton must be distributed according to the distribution specified in paragraph <br/>
<a id="pl.249.30"></a><var>249.30</var>(c). These amounts are not subject to sections 
         <statute_ref>126C.21, subdivision 4</statute_ref>, and 
         <statute_ref>126C.48, <br/>
<a id="pl.249.31"></a><var>249.31</var>subdivision 8
         </statute_ref>.<br/>
<a id="pl.249.32"></a><var>249.32</var><b>EFFECTIVE DATE.</b>This section is effective beginning for the 2014 distribution.<br/>
<br/>
<a id="bill.10.6.0"></a><a id="pl.249.33"></a><var>249.33</var>    Sec. 6. Minnesota Statutes 2012, section 298.28, subdivision 6, is amended to read:<br/>
<a id="pl.249.34"></a><var>249.34</var>    Subd. 6. <b>Property tax relief.</b> (a) In 2002 2014 and thereafter, 33.9 34.8 cents per <br/>
<a id="pl.249.35"></a><var>249.35</var>taxable ton, less any amount required to be distributed under paragraphs (b) and (c), or <br/>
<a id="pl.250.1"></a><var>250.1</var>section 
         <statute_ref>298.2961</statute_ref>, subdivision 5, must be allocated to St. Louis County acting as the <br/>
<a id="pl.250.2"></a><var>250.2</var>counties' fiscal agent, to be distributed as provided in sections 
         <statute_ref>273.134</statute_ref> to 
         <statute_ref>273.136</statute_ref>.<br/>
<a id="pl.250.3"></a><var>250.3</var>    (b) If an electric power plant owned by and providing the primary source of power <br/>
<a id="pl.250.4"></a><var>250.4</var>for a taxpayer mining and concentrating taconite is located in a county other than the <br/>
<a id="pl.250.5"></a><var>250.5</var>county in which the mining and the concentrating processes are conducted, .1875 cent per <br/>
<a id="pl.250.6"></a><var>250.6</var>taxable ton of the tax imposed and collected from such taxpayer shall be paid to the county.<br/>
<a id="pl.250.7"></a><var>250.7</var>    (c) If an electric power plant owned by and providing the primary source of power <br/>
<a id="pl.250.8"></a><var>250.8</var>for a taxpayer mining and concentrating taconite is located in a school district other than <br/>
<a id="pl.250.9"></a><var>250.9</var>a school district in which the mining and concentrating processes are conducted, .4541 <br/>
<a id="pl.250.10"></a><var>250.10</var>cent per taxable ton of the tax imposed and collected from the taxpayer shall be paid to <br/>
<a id="pl.250.11"></a><var>250.11</var>the school district.<br/>
<a id="pl.250.12"></a><var>250.12</var><b>EFFECTIVE DATE.</b>This section is effective beginning for the 2014 distribution.<br/>
<br/>
<a id="bill.10.7.0"></a><a id="pl.250.13"></a><var>250.13</var>    Sec. 7. <b>2013 DISTRIBUTION ONLY.</b><br/>
<a id="pl.250.14"></a><var>250.14</var>For the 2013 distribution, a special fund is established to receive 32 cents per ton of <br/>
<a id="pl.250.15"></a><var>250.15</var>any excess of the balance remaining after distribution of amounts required under Minnesota <br/>
<a id="pl.250.16"></a><var>250.16</var>Statutes, section 298.28, subdivision 6. The following amounts are allocated to St. Louis <br/>
<a id="pl.250.17"></a><var>250.17</var>County acting as the fiscal agent for the recipients for the following specific purposes:<br/>
<a id="pl.250.18"></a><var>250.18</var>(1) 5.1 cents per ton to the city of Hibbing for improvements to the city's water <br/>
<a id="pl.250.19"></a><var>250.19</var>supply system;<br/>
<a id="pl.250.20"></a><var>250.20</var>(2) 4.3 cents per ton to the city of Mountain Iron for the cost of moving utilities <br/>
<a id="pl.250.21"></a><var>250.21</var>required as a result of actions undertaken by United States Steel Corporation;<br/>
<a id="pl.250.22"></a><var>250.22</var>(3) 2.5 cents per ton to the city of Biwabik for improvements to the city's water supply <br/>
<a id="pl.250.23"></a><var>250.23</var>system, payable upon agreement with ArcelorMittal to satisfy water permit conditions;<br/>
<a id="pl.250.24"></a><var>250.24</var>(4) 2.5 cents per ton to the city of Tower for the Tower Marina;<br/>
<a id="pl.250.25"></a><var>250.25</var>(5) 2.5 cents per ton to the city of Grand Rapids for an eco-friendly heat transfer <br/>
<a id="pl.250.26"></a><var>250.26</var>system to replace aging effluent lines and for parking lot repaving;<br/>
<a id="pl.250.27"></a><var>250.27</var>(6) 2.4 cents per ton to the city of Two Harbors for wastewater treatment plant <br/>
<a id="pl.250.28"></a><var>250.28</var>improvements;<br/>
<a id="pl.250.29"></a><var>250.29</var>(7) 0.9 cents per ton to the city of Ely for the sanitary sewer replacement project;<br/>
<a id="pl.250.30"></a><var>250.30</var>(8) 0.6 cents per ton to the town of Crystal Bay for debt service of the Claire Nelson <br/>
<a id="pl.250.31"></a><var>250.31</var>Intermodal Transportation Center;<br/>
<a id="pl.250.32"></a><var>250.32</var>(9) 0.5 cents per ton to the Greenway Joint Recreation Board for the Coleraine <br/>
<a id="pl.250.33"></a><var>250.33</var>hockey arena renovations;<br/>
<a id="pl.251.1"></a><var>251.1</var>(10) 1.2 cents per ton for the West Range Regional Fire Hall and Training Center <br/>
<a id="pl.251.2"></a><var>251.2</var>to merge the existing fire services of Coleraine, Bovey, Taconite Marble, Calumet, and <br/>
<a id="pl.251.3"></a><var>251.3</var>Greenway Township;<br/>
<a id="pl.251.4"></a><var>251.4</var>(11) 2.5 cents per ton to the city of Hibbing for the Memorial Building;<br/>
<a id="pl.251.5"></a><var>251.5</var>(12) 0.7 cents per ton to the city of Chisholm for Center Drive;<br/>
<a id="pl.251.6"></a><var>251.6</var>(13) 2.1 cents per ton to the Crane Lake Water and Sanitary District for sanitary <br/>
<a id="pl.251.7"></a><var>251.7</var>sewer extension and must be matched;<br/>
<a id="pl.251.8"></a><var>251.8</var>(14) 2.5 cents per ton for the city of Buhl for the roof on the Mesabi Academy;<br/>
<a id="pl.251.9"></a><var>251.9</var>(15) 1.2 cents per ton to the city of Gilbert for the New Jersey/Ohio Avenue project;<br/>
<a id="pl.251.10"></a><var>251.10</var>(16) 1.5 cents per ton to the city of Cook for street improvements, business park <br/>
<a id="pl.251.11"></a><var>251.11</var>infrastructure, and a maintenance garage;<br/>
<a id="pl.251.12"></a><var>251.12</var>(17) 0.5 cents per ton to the city of Cook for a water line project; and<br/>
<a id="pl.251.13"></a><var>251.13</var>(18) 0.2 cents per ton to the city of Eveleth to be used for the support of the Hockey <br/>
<a id="pl.251.14"></a><var>251.14</var>Hall of Fame, provided that it continues to operate in that city.<br/>
<a id="pl.251.15"></a><var>251.15</var><b>EFFECTIVE DATE.</b>This section is effective for the 2013 distribution, and all <br/>
<a id="pl.251.16"></a><var>251.16</var>payments must be made separately and within ten days of the date of the August 2013 <br/>
<a id="pl.251.17"></a><var>251.17</var>payment. <br/>
<br/>
<a id="bill.10.8.0"></a><a id="pl.251.18"></a><var>251.18</var>    Sec. 8. <b>IRON RANGE RESOURCES AND REHABILITATION </b><br/>
<a id="pl.251.19"></a><var>251.19</var><b>COMMISSIONER; BONDS AUTHORIZED.</b><br/>
<a id="pl.251.20"></a><var>251.20</var>    Subdivision 1. <b>Issuance; purpose.</b> Notwithstanding any provision of Minnesota <br/>
<a id="pl.251.21"></a><var>251.21</var>Statutes, chapter 298, to the contrary, the commissioner of Iron Range resources and <br/>
<a id="pl.251.22"></a><var>251.22</var>rehabilitation shall issue revenue bonds in a principal amount of $38,000,000 plus an <br/>
<a id="pl.251.23"></a><var>251.23</var>amount sufficient to pay costs of issuance in one or more series, and thereafter may <br/>
<a id="pl.251.24"></a><var>251.24</var>issue bonds to refund those bonds. The proceeds of the bonds must be used to pay costs <br/>
<a id="pl.251.25"></a><var>251.25</var>of issuance and to make grants to school districts located in the taconite tax relief area <br/>
<a id="pl.251.26"></a><var>251.26</var>defined in Minnesota Statutes, section 273.134, or the taconite assistance area defined <br/>
<a id="pl.251.27"></a><var>251.27</var>in Minnesota Statutes, section 273.1341, to be used by the school districts to pay for <br/>
<a id="pl.251.28"></a><var>251.28</var>building projects, such as energy efficiency, technology, infrastructure, health, safety, and <br/>
<a id="pl.251.29"></a><var>251.29</var>maintenance improvements. Proceeds granted to School District No. 2142 must be used <br/>
<a id="pl.251.30"></a><var>251.30</var>to reduce debt service on the building bond passed on December 8, 2009.<br/>
<a id="pl.251.31"></a><var>251.31</var>    Subd. 2. <b>Appropriation.</b> (a) There is annually appropriated from the distribution of <br/>
<a id="pl.251.32"></a><var>251.32</var>taconite production tax revenues under Minnesota Statues, section 298.28, prior to the <br/>
<a id="pl.251.33"></a><var>251.33</var>calculation of the amount of the remainder under Minnesota Statutes, section 298.28, <br/>
<a id="pl.251.34"></a><var>251.34</var>subdivision 11, an amount sufficient to pay when due the principal and interest on the <br/>
<a id="pl.252.1"></a><var>252.1</var>bonds issued pursuant to subdivision 1. The appropriation under this section must not <br/>
<a id="pl.252.2"></a><var>252.2</var>exceed an amount equal to ten cents per taxable ton.<br/>
<a id="pl.252.3"></a><var>252.3</var>    (b) If in any year the amount available under paragraph (a) is insufficient to pay <br/>
<a id="pl.252.4"></a><var>252.4</var>principal and interest due on the bonds in that year, an additional amount is appropriated <br/>
<a id="pl.252.5"></a><var>252.5</var>from the Douglas J. Johnson fund to make up the deficiency. <br/>
<a id="pl.252.6"></a><var>252.6</var>    (c) The appropriation under this subdivision terminates upon payment or maturity of <br/>
<a id="pl.252.7"></a><var>252.7</var>the last of the bonds issued under this section.<br/>
<a id="pl.252.8"></a><var>252.8</var>    Subd. 3. <b>Credit enhancement.</b> The bonds issued under this section are "debt <br/>
<a id="pl.252.9"></a><var>252.9</var>obligations" and the commissioner of Iron Range resources and rehabilitation is a "district" <br/>
<a id="pl.252.10"></a><var>252.10</var>for purposes of Minnesota Statutes, section 126C.55, provided that advances made under <br/>
<a id="pl.252.11"></a><var>252.11</var>Minnesota Statutes, section 126C.55, subdivision 2, are not subject to Minnesota Statutes, <br/>
<a id="pl.252.12"></a><var>252.12</var>section 126C.55, subdivisions 4 to 7.<br/>
<a id="pl.252.13"></a><var>252.13</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment and <br/>
<a id="pl.252.14"></a><var>252.14</var>applies beginning with the 2014 distribution under Minnesota Statutes, section 298.28.<br/>
<br/>
<a id="bill.10.9.0"></a><a id="pl.252.15"></a><var>252.15</var>    Sec. 9. <b>IRON RANGE FISCAL DISPARITIES STUDY.</b><br/>
<a id="pl.252.16"></a><var>252.16</var>The commissioner of revenue, in coordination with the commissioner of the Iron <br/>
<a id="pl.252.17"></a><var>252.17</var>Range Resources and Rehabilitation Board, shall conduct a study of the tax relief <br/>
<a id="pl.252.18"></a><var>252.18</var>area revenue distribution program contained in Minnesota Statutes, chapter 276A, <br/>
<a id="pl.252.19"></a><var>252.19</var>commonly known as the Iron Range fiscal disparities program. By February 1, 2014, the <br/>
<a id="pl.252.20"></a><var>252.20</var>commissioner of revenue shall submit a report to the chairs and ranking minority members <br/>
<a id="pl.252.21"></a><var>252.21</var>of the house of representatives and senate tax committees consisting of the findings of the <br/>
<a id="pl.252.22"></a><var>252.22</var>study and identification of issues for policy makers to consider. The study must analyze:<br/>
<a id="pl.252.23"></a><var>252.23</var>(1) trends in population, property tax base, property tax rates, and contribution <br/>
<a id="pl.252.24"></a><var>252.24</var>and distribution capacity across the region;<br/>
<a id="pl.252.25"></a><var>252.25</var>(2) the volatility of the program's distribution and causes of the volatility;<br/>
<a id="pl.252.26"></a><var>252.26</var>(3) the impact of state tax policy changes on the fiscal disparities program; and<br/>
<a id="pl.252.27"></a><var>252.27</var>(4) the interaction between the program and the distribution of property tax aids and <br/>
<a id="pl.252.28"></a><var>252.28</var>credits, taconite aid, and Iron Range Resources and Rehabilitation Board funding across <br/>
<a id="pl.252.29"></a><var>252.29</var>the region.<br/>
<a id="pl.252.30"></a><var>252.30</var><b>EFFECTIVE DATE.</b>This section is effective June 1, 2013.<br/>
<br/>
<a id="bill.11.0.0"></a>

<a id="bill.11.1.0"></a><a id="pl.252.33"></a><var>252.33</var>    Section 1. Minnesota Statutes 2012, section 118A.04, subdivision 3, is amended to read:<br/>
<a id="pl.253.1"></a><var>253.1</var>    Subd. 3. <b>State and local securities.</b> Funds may be invested in the following:<br/>
<a id="pl.253.2"></a><var>253.2</var>(1) any security which is a general obligation of any state or local government with <br/>
<a id="pl.253.3"></a><var>253.3</var>taxing powers which is rated "A" or better by a national bond rating service;<br/>
<a id="pl.253.4"></a><var>253.4</var>(2) any security which is a revenue obligation of any state or local government with <br/>
<a id="pl.253.5"></a><var>253.5</var>taxing powers which is rated "AA" or better by a national bond rating service; and<br/>
<a id="pl.253.6"></a><var>253.6</var>(3) a general obligation of the Minnesota housing finance agency which is a moral <br/>
<a id="pl.253.7"></a><var>253.7</var>obligation of the state of Minnesota and is rated "A" or better by a national bond rating <br/>
<a id="pl.253.8"></a><var>253.8</var>agency.; and<br/>
<a id="pl.253.9"></a><var>253.9</var>(4) any security which is an obligation of a school district with an original maturity <br/>
<a id="pl.253.10"></a><var>253.10</var>not exceeding 13 months and (i) rated in the highest category by a national bond rating <br/>
<a id="pl.253.11"></a><var>253.11</var>service or (ii) enrolled in the credit enhancement program pursuant to section 126C.55.<br/>
<br/>
<a id="bill.11.2.0"></a><a id="pl.253.12"></a><var>253.12</var>    Sec. 2. Minnesota Statutes 2012, section 118A.05, subdivision 5, is amended to read:<br/>
<a id="pl.253.13"></a><var>253.13</var>    Subd. 5. <b>Guaranteed investment contracts.</b> Agreements or contracts for <br/>
<a id="pl.253.14"></a><var>253.14</var>guaranteed investment contracts may be entered into if they are issued or guaranteed <br/>
<a id="pl.253.15"></a><var>253.15</var>by United States commercial banks, domestic branches of foreign banks, United States <br/>
<a id="pl.253.16"></a><var>253.16</var>insurance companies, or their Canadian subsidiaries, or the domestic affiliates of any <br/>
<a id="pl.253.17"></a><var>253.17</var>of the foregoing. The credit quality of the issuer's or guarantor's short- and long-term <br/>
<a id="pl.253.18"></a><var>253.18</var>unsecured debt must be rated in one of the two highest categories by a nationally <br/>
<a id="pl.253.19"></a><var>253.19</var>recognized rating agency. Agreements or contracts for guaranteed investment contracts <br/>
<a id="pl.253.20"></a><var>253.20</var>with a term of 18 months or less may be entered into regardless of the credit quality of <br/>
<a id="pl.253.21"></a><var>253.21</var>the issuer's or guarantor's long-term unsecured debt, provided that the credit quality of <br/>
<a id="pl.253.22"></a><var>253.22</var>the issuer's short-term unsecured debt is rated in the highest category by a nationally <br/>
<a id="pl.253.23"></a><var>253.23</var>recognized rating agency. Should the issuer's or guarantor's credit quality be downgraded <br/>
<a id="pl.253.24"></a><var>253.24</var>below "A", the government entity must have withdrawal rights.<br/>
<br/>
<a id="bill.11.3.0"></a><a id="pl.253.25"></a><var>253.25</var>    Sec. 3. Minnesota Statutes 2012, section 373.40, subdivision 1, is amended to read:<br/>
<a id="pl.253.26"></a><var>253.26</var>    Subdivision 1. <b>Definitions.</b> For purposes of this section, the following terms have <br/>
<a id="pl.253.27"></a><var>253.27</var>the meanings given.<br/>
<a id="pl.253.28"></a><var>253.28</var>(a) "Bonds" means an obligation as defined under section 
         <statute_ref>475.51</statute_ref>.<br/>
<a id="pl.253.29"></a><var>253.29</var>(b) "Capital improvement" means acquisition or betterment of public lands, <br/>
<a id="pl.253.30"></a><var>253.30</var>buildings, or other improvements within the county for the purpose of a county courthouse, <br/>
<a id="pl.253.31"></a><var>253.31</var>administrative building, health or social service facility, correctional facility, jail, law <br/>
<a id="pl.253.32"></a><var>253.32</var>enforcement center, hospital, morgue, library, park, qualified indoor ice arena, roads <br/>
<a id="pl.253.33"></a><var>253.33</var>and bridges, public works facilities, fairground buildings, and records and data storage <br/>
<a id="pl.253.34"></a><var>253.34</var>facilities, and the acquisition of development rights in the form of conservation easements <br/>
<a id="pl.254.1"></a><var>254.1</var>under chapter 84C. An improvement must have an expected useful life of five years or more <br/>
<a id="pl.254.2"></a><var>254.2</var>to qualify. "Capital improvement" does not include a recreation or sports facility building <br/>
<a id="pl.254.3"></a><var>254.3</var>(such as, but not limited to, a gymnasium, ice arena, racquet sports facility, swimming <br/>
<a id="pl.254.4"></a><var>254.4</var>pool, exercise room or health spa), unless the building is part of an outdoor park facility <br/>
<a id="pl.254.5"></a><var>254.5</var>and is incidental to the primary purpose of outdoor recreation. For purposes of this section, <br/>
<a id="pl.254.6"></a><var>254.6</var>"capital improvement" includes expenditures for purposes described in this paragraph that <br/>
<a id="pl.254.7"></a><var>254.7</var>have been incurred by a county before approval of a capital improvement plan, if such <br/>
<a id="pl.254.8"></a><var>254.8</var>expenditures are included in a capital improvement plan approved on or before the date of <br/>
<a id="pl.254.9"></a><var>254.9</var>the public hearing under subdivision 2 regarding issuance of bonds for such expenditures.<br/>
<a id="pl.254.10"></a><var>254.10</var>(c) "Metropolitan county" means a county located in the seven-county metropolitan <br/>
<a id="pl.254.11"></a><var>254.11</var>area as defined in section 
         <statute_ref>473.121</statute_ref> or a county with a population of 90,000 or more.<br/>
<a id="pl.254.12"></a><var>254.12</var>(d) "Population" means the population established by the most recent of the <br/>
<a id="pl.254.13"></a><var>254.13</var>following (determined as of the date the resolution authorizing the bonds was adopted):<br/>
<a id="pl.254.14"></a><var>254.14</var>(1) the federal decennial census,<br/>
<a id="pl.254.15"></a><var>254.15</var>(2) a special census conducted under contract by the United States Bureau of the <br/>
<a id="pl.254.16"></a><var>254.16</var>Census, or<br/>
<a id="pl.254.17"></a><var>254.17</var>(3) a population estimate made either by the Metropolitan Council or by the state <br/>
<a id="pl.254.18"></a><var>254.18</var>demographer under section 
         <statute_ref>4A.02</statute_ref>.<br/>
<a id="pl.254.19"></a><var>254.19</var>(e) "Qualified indoor ice arena" means a facility that meets the requirements of <br/>
<a id="pl.254.20"></a><var>254.20</var>section 
         <statute_ref>373.43</statute_ref>.<br/>
<a id="pl.254.21"></a><var>254.21</var>(f) "Tax capacity" means total taxable market value, but does not include captured <br/>
<a id="pl.254.22"></a><var>254.22</var>market value.<br/>
<br/>
<a id="bill.11.4.0"></a><a id="pl.254.23"></a><var>254.23</var>    Sec. 4. Minnesota Statutes 2012, section 373.40, subdivision 2, is amended to read:<br/>
<a id="pl.254.24"></a><var>254.24</var>    Subd. 2. <b>Application of election requirement.</b> (a) Bonds issued by a county <br/>
<a id="pl.254.25"></a><var>254.25</var>to finance capital improvements under an approved capital improvement plan are not <br/>
<a id="pl.254.26"></a><var>254.26</var>subject to the election requirements of section 
         <statute_ref>375.18</statute_ref> or 
         <statute_ref>475.58</statute_ref>. The bonds must be <br/>
<a id="pl.254.27"></a><var>254.27</var>approved by vote of at least three-fifths of the members of the county board. In the case <br/>
<a id="pl.254.28"></a><var>254.28</var>of a metropolitan county, the bonds must be approved by vote of at least two-thirds of <br/>
<a id="pl.254.29"></a><var>254.29</var>the members of the county board.<br/>
<a id="pl.254.30"></a><var>254.30</var>(b) Before issuance of bonds qualifying under this section, the county must publish <br/>
<a id="pl.254.31"></a><var>254.31</var>a notice of its intention to issue the bonds and the date and time of a hearing to obtain <br/>
<a id="pl.254.32"></a><var>254.32</var>public comment on the matter. The notice must be published in the official newspaper <br/>
<a id="pl.254.33"></a><var>254.33</var>of the county or in a newspaper of general circulation in the county. The notice must be <br/>
<a id="pl.254.34"></a><var>254.34</var>published at least 14, but not more than 28, days before the date of the hearing.<br/>
<a id="pl.255.1"></a><var>255.1</var>(c) A county may issue the bonds only upon obtaining the approval of a majority of <br/>
<a id="pl.255.2"></a><var>255.2</var>the voters voting on the question of issuing the obligations, if a petition requesting a vote <br/>
<a id="pl.255.3"></a><var>255.3</var>on the issuance is signed by voters equal to five percent of the votes cast in the county in <br/>
<a id="pl.255.4"></a><var>255.4</var>the last county general election and is filed with the county auditor within 30 days after <br/>
<a id="pl.255.5"></a><var>255.5</var>the public hearing. The commissioner of revenue shall prepare a suggested form of the <br/>
<a id="pl.255.6"></a><var>255.6</var>question to be presented at the election. If the county elects not to submit the question to <br/>
<a id="pl.255.7"></a><var>255.7</var>the voters, the county shall not propose the issuance of bonds under this section for the <br/>
<a id="pl.255.8"></a><var>255.8</var>same purpose and in the same amount for a period of 365 days from the date of receipt <br/>
<a id="pl.255.9"></a><var>255.9</var>of the petition. If the question of issuing the bonds is submitted and not approved by the <br/>
<a id="pl.255.10"></a><var>255.10</var>voters, the provisions of section 475.58, subdivision 1a, shall apply.<br/>
<br/>
<a id="bill.11.5.0"></a><a id="pl.255.11"></a><var>255.11</var>    Sec. 5. Minnesota Statutes 2012, section 383D.41, is amended by adding a subdivision <br/>
<a id="pl.255.12"></a><var>255.12</var>to read:<br/>
<a id="pl.255.13"></a><var>255.13</var>    Subd. 10. <b>Housing improvement areas.</b> (a) In addition to its other powers, the <br/>
<a id="pl.255.14"></a><var>255.14</var>Dakota County Community Development Agency shall have all powers of a city under <br/>
<a id="pl.255.15"></a><var>255.15</var>sections 428A.11 to 428A.21 in connection with housing improvement areas in Dakota <br/>
<a id="pl.255.16"></a><var>255.16</var>County.<br/>
<a id="pl.255.17"></a><var>255.17</var>(b) For purposes of the Dakota County Community Development Agency's exercise <br/>
<a id="pl.255.18"></a><var>255.18</var>of the powers granted in this subdivision, references in sections 428A.11 to 428A.21 to:<br/>
<a id="pl.255.19"></a><var>255.19</var>(1) a "mayor" shall be references to the chair of the board of commissioners of the <br/>
<a id="pl.255.20"></a><var>255.20</var>Dakota County Community Development Agency;<br/>
<a id="pl.255.21"></a><var>255.21</var>(2) a "council" shall be references to the board of commissioners of the Dakota <br/>
<a id="pl.255.22"></a><var>255.22</var>County Community Development Agency; and<br/>
<a id="pl.255.23"></a><var>255.23</var>(3) a "city clerk" shall be references to an official of the Dakota County Community <br/>
<a id="pl.255.24"></a><var>255.24</var>Development Agency designated by the executive director of the Dakota County <br/>
<a id="pl.255.25"></a><var>255.25</var>Community Development Agency.<br/>
<a id="pl.255.26"></a><var>255.26</var>(c) Notwithstanding sections 428A.11, subdivision 3, and 428A.13, subdivision 1, <br/>
<a id="pl.255.27"></a><var>255.27</var>the governing body of the Dakota County Community Development Agency may adopt <br/>
<a id="pl.255.28"></a><var>255.28</var>a resolution, rather than an ordinance, establishing one or more housing improvement <br/>
<a id="pl.255.29"></a><var>255.29</var>areas, and "enabling ordinance" for purposes of sections 428A.11 to 428A.21 means a <br/>
<a id="pl.255.30"></a><var>255.30</var>resolution under this clause.<br/>
<br/>
<a id="bill.11.6.0"></a><a id="pl.255.31"></a><var>255.31</var>    Sec. 6. Minnesota Statutes 2012, section 473.606, subdivision 3, is amended to read:<br/>
<a id="pl.255.32"></a><var>255.32</var>    Subd. 3. <b>Treasurer; investments.</b> The treasurer shall receive and be responsible <br/>
<a id="pl.255.33"></a><var>255.33</var>for all moneys of the corporation, from whatever source derived, and the same shall be <br/>
<a id="pl.255.34"></a><var>255.34</var>considered public funds. The treasurer shall disburse the moneys of the corporation only <br/>
<a id="pl.256.1"></a><var>256.1</var>on orders made by the executive and operating officer, herein provided for, countersigned <br/>
<a id="pl.256.2"></a><var>256.2</var>by such other officer or such employee of the corporation as may be authorized and <br/>
<a id="pl.256.3"></a><var>256.3</var>directed so to do by the corporation, showing the name of the claimant and the nature of <br/>
<a id="pl.256.4"></a><var>256.4</var>the claim. No disbursement shall be certified by such officers until the same have been <br/>
<a id="pl.256.5"></a><var>256.5</var>approved by said commissioners at a meeting thereof. Whenever the executive director of <br/>
<a id="pl.256.6"></a><var>256.6</var>the corporation shall certify, pursuant to action taken by the commissioners at a meeting <br/>
<a id="pl.256.7"></a><var>256.7</var>thereof, that there are moneys and the amount thereof in the possession of the treasurer not <br/>
<a id="pl.256.8"></a><var>256.8</var>currently needed, then the treasurer may invest said amount or any part thereof in:<br/>
<a id="pl.256.9"></a><var>256.9</var>(a) Treasury bonds, certificates of indebtedness, bonds or notes of the United States <br/>
<a id="pl.256.10"></a><var>256.10</var>of America, or bonds, notes or certificates of indebtedness of the state of Minnesota, all of <br/>
<a id="pl.256.11"></a><var>256.11</var>which must mature not later than three years from the date of purchase.<br/>
<a id="pl.256.12"></a><var>256.12</var>(b) Bonds, notes, debentures or other obligations issued by any agency or <br/>
<a id="pl.256.13"></a><var>256.13</var>instrumentality of the United States or any securities guaranteed by the United States <br/>
<a id="pl.256.14"></a><var>256.14</var>government, or for which the credit of the United States is pledged for the payment of <br/>
<a id="pl.256.15"></a><var>256.15</var>the principal and interest thereof, all of which must mature not later than three years <br/>
<a id="pl.256.16"></a><var>256.16</var>from date of purchase.<br/>
<a id="pl.256.17"></a><var>256.17</var>(c) Commercial paper of prime quality, or rated among the top third of the quality <br/>
<a id="pl.256.18"></a><var>256.18</var>categories, not applicable to defaulted paper, as defined by a nationally recognized <br/>
<a id="pl.256.19"></a><var>256.19</var>organization which rates such securities as eligible for investment in the state employees <br/>
<a id="pl.256.20"></a><var>256.20</var>retirement fund except that any nonbanking issuing corporation, or parent company in the <br/>
<a id="pl.256.21"></a><var>256.21</var>case of paper issued by operating utility or finance subsidiaries, must have total assets <br/>
<a id="pl.256.22"></a><var>256.22</var>exceeding $500,000,000. Such commercial paper may constitute no more than 30 percent <br/>
<a id="pl.256.23"></a><var>256.23</var>of the book value of the fund at the time of purchase, and the commercial paper of any <br/>
<a id="pl.256.24"></a><var>256.24</var>one corporation shall not constitute more than four percent of the book value of the fund <br/>
<a id="pl.256.25"></a><var>256.25</var>at the time of such investment.<br/>
<a id="pl.256.26"></a><var>256.26</var>(d) Any securities eligible under the preceding provisions, purchased with <br/>
<a id="pl.256.27"></a><var>256.27</var>simultaneous repurchase agreement under which the securities will be sold to the particular <br/>
<a id="pl.256.28"></a><var>256.28</var>dealer on a specified date at a predetermined price. In such instances, all maturities of <br/>
<a id="pl.256.29"></a><var>256.29</var>United States government securities, or securities issued or guaranteed by the United <br/>
<a id="pl.256.30"></a><var>256.30</var>States government or an agency thereof, may be purchased so long as any such securities <br/>
<a id="pl.256.31"></a><var>256.31</var>which mature later than three years from the date of purchase have a current market <br/>
<a id="pl.256.32"></a><var>256.32</var>value exceeding the purchase price by at least five percent on the date of purchase, and <br/>
<a id="pl.256.33"></a><var>256.33</var>so long as such repurchase agreement involving securities extending beyond three years <br/>
<a id="pl.256.34"></a><var>256.34</var>in maturity be limited to a period not exceeding 45 days.<br/>
<a id="pl.256.35"></a><var>256.35</var>(e) Certificates of deposit issued by any official depository of the commission. The <br/>
<a id="pl.256.36"></a><var>256.36</var>commission may purchase certificates of deposit from a depository bank in an amount <br/>
<a id="pl.257.1"></a><var>257.1</var>exceeding that insured by federal depository insurance to the extent that those certificates <br/>
<a id="pl.257.2"></a><var>257.2</var>are secured by collateral maintained by the bank in a manner as prescribed for investments <br/>
<a id="pl.257.3"></a><var>257.3</var>of the State Board of Investment.<br/>
<a id="pl.257.4"></a><var>257.4</var>(f) securities approved for investment under section 118A.04.<br/>
<a id="pl.257.5"></a><var>257.5</var>Whenever it shall appear to the commissioners that any invested funds are needed <br/>
<a id="pl.257.6"></a><var>257.6</var>for current purposes before the maturity dates of the securities held, they shall cause the <br/>
<a id="pl.257.7"></a><var>257.7</var>executive director to so certify to the treasurer and it shall then be the duty of the treasurer <br/>
<a id="pl.257.8"></a><var>257.8</var>to order the sale or conversion into cash of the securities in the amount so certified. All <br/>
<a id="pl.257.9"></a><var>257.9</var>interest and profit on said investments shall be credited to and constitute a part of the <br/>
<a id="pl.257.10"></a><var>257.10</var>funds of the commission. The treasurer shall keep an account of all moneys received <br/>
<a id="pl.257.11"></a><var>257.11</var>and disbursed, and at least once a year, at times to be designated by the corporation, file <br/>
<a id="pl.257.12"></a><var>257.12</var>with the secretary a financial statement of the corporation, showing in appropriate and <br/>
<a id="pl.257.13"></a><var>257.13</var>identifiable groupings the receipts and disbursements since the last approved statements; <br/>
<a id="pl.257.14"></a><var>257.14</var>moneys on hand and the purposes for which the same are appropriated; and shall keep an <br/>
<a id="pl.257.15"></a><var>257.15</var>account of all securities purchased as herein provided, the funds from which purchased <br/>
<a id="pl.257.16"></a><var>257.16</var>and the interest and profit which may have accrued thereon, and shall accompany the <br/>
<a id="pl.257.17"></a><var>257.17</var>financial statement aforesaid with a statement setting forth such account. The corporation <br/>
<a id="pl.257.18"></a><var>257.18</var>may pay to the treasurer from time to time compensation in such amount as it may <br/>
<a id="pl.257.19"></a><var>257.19</var>determine to cover clerk hire to enable the treasurer to carry out duties and those required <br/>
<a id="pl.257.20"></a><var>257.20</var>in connection with bonds issued by the corporation as in this act authorized.<br/>
<br/>
<a id="bill.11.7.0"></a><a id="pl.257.21"></a><var>257.21</var>    Sec. 7. Minnesota Statutes 2012, section 474A.04, subdivision 1a, is amended to read:<br/>
<a id="pl.257.22"></a><var>257.22</var>    Subd. 1a. <b>Entitlement reservations</b><b>; carryforward; deduction</b><b>.</b> Any amount <br/>
<a id="pl.257.23"></a><var>257.23</var>returned by an entitlement issuer before July 15 shall be reallocated through the housing <br/>
<a id="pl.257.24"></a><var>257.24</var>pool. Any amount returned on or after July 15 shall be reallocated through the unified <br/>
<a id="pl.257.25"></a><var>257.25</var>pool. An amount returned after the last Monday in November shall be reallocated to the <br/>
<a id="pl.257.26"></a><var>257.26</var>Minnesota Housing Finance Agency. Any amount of bonding authority that an entitlement <br/>
<a id="pl.257.27"></a><var>257.27</var>issuer carries forward under federal tax law that is not permanently issued or for which <br/>
<a id="pl.257.28"></a><var>257.28</var>the governing body of the entitlement issuer has not enacted a resolution electing to use <br/>
<a id="pl.257.29"></a><var>257.29</var>the authority for mortgage credit certificates and has not provided a notice of issue to the <br/>
<a id="pl.257.30"></a><var>257.30</var>commissioner before 4:30 p.m. on the last business day in December of the succeeding <br/>
<a id="pl.257.31"></a><var>257.31</var>calendar year shall be deducted from the entitlement allocation for that entitlement issuer <br/>
<a id="pl.257.32"></a><var>257.32</var>in the next succeeding calendar year. Any amount deducted from an entitlement issuer's <br/>
<a id="pl.257.33"></a><var>257.33</var>allocation under this subdivision shall be reallocated to other entitlement issuers, the <br/>
<a id="pl.257.34"></a><var>257.34</var>housing pool, the small issue pool, and the public facilities pool on a proportional basis <br/>
<a id="pl.257.35"></a><var>257.35</var>consistent with section 
<statute_ref>474A.03</statute_ref>.<br/>
<a id="pl.258.1"></a><var>258.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.258.2"></a><var>258.2</var>and applies to any bonding authority allocated in 2012 and subsequent years.<br/>
<br/>
<a id="bill.11.8.0"></a><a id="pl.258.3"></a><var>258.3</var>    Sec. 8. Minnesota Statutes 2012, section 474A.062, is amended to read:<br/>
<a id="pl.258.4"></a><var>258.4</var><b>474A.062 MINNESOTA OFFICE OF HIGHER EDUCATION 120-DAY </b><br/>
<a id="pl.258.5"></a><var>258.5</var><b>ISSUANCE EXEMPTION.</b><br/>
<a id="pl.258.6"></a><var>258.6</var>The Minnesota Office of Higher Education is exempt from the 120-day issuance <br/>
<a id="pl.258.7"></a><var>258.7</var>requirements in this chapter and may carry forward allocations for student loan bonds into <br/>
<a id="pl.258.8"></a><var>258.8</var>one successive calendar year, subject to carryforward notice requirements of section <br/>
<statute_ref><a id="pl.258.9"></a><var>258.9</var>474A.131, subdivision 2
         </statute_ref>.<br/>
<a id="pl.258.10"></a><var>258.10</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.258.11"></a><var>258.11</var>and applies to any bonding authority allocated in 2012 and subsequent years.<br/>
<br/>
<a id="bill.11.9.0"></a><a id="pl.258.12"></a><var>258.12</var>    Sec. 9. Minnesota Statutes 2012, section 474A.091, subdivision 3a, is amended to read:<br/>
<a id="pl.258.13"></a><var>258.13</var>    Subd. 3a. <b>Mortgage bonds.</b> (a) Bonding authority remaining in the unified pool on <br/>
<a id="pl.258.14"></a><var>258.14</var>October 1 is available for single-family housing programs for cities that applied in January <br/>
<a id="pl.258.15"></a><var>258.15</var>and received an allocation under section 
         <statute_ref>474A.061, subdivision 2a</statute_ref>, in the same calendar <br/>
<a id="pl.258.16"></a><var>258.16</var>year. The Minnesota Housing Finance Agency shall receive an allocation for mortgage <br/>
<a id="pl.258.17"></a><var>258.17</var>bonds pursuant to this section, minus any amounts for a city or consortium that intends to <br/>
<a id="pl.258.18"></a><var>258.18</var>issue bonds on its own behalf under paragraph (c).<br/>
<a id="pl.258.19"></a><var>258.19</var>(b) The agency may issue bonds on behalf of participating cities. The agency shall <br/>
<a id="pl.258.20"></a><var>258.20</var>request an allocation from the commissioner for all applicants who choose to have the <br/>
<a id="pl.258.21"></a><var>258.21</var>agency issue bonds on their behalf and the commissioner shall allocate the requested <br/>
<a id="pl.258.22"></a><var>258.22</var>amount to the agency. Allocations shall be awarded by the commissioner each Monday <br/>
<a id="pl.258.23"></a><var>258.23</var>commencing on the first Monday in October through the last Monday in November for <br/>
<a id="pl.258.24"></a><var>258.24</var>applications received by 4:30 p.m. on the Monday of the week preceding an allocation.<br/>
<a id="pl.258.25"></a><var>258.25</var>For cities who choose to have the agency issue bonds on their behalf, allocations <br/>
<a id="pl.258.26"></a><var>258.26</var>will be made loan by loan, on a first-come, first-served basis among the cities. The <br/>
<a id="pl.258.27"></a><var>258.27</var>agency shall submit an application fee pursuant to section 
         <statute_ref>474A.03, subdivision 4</statute_ref>, and an <br/>
<a id="pl.258.28"></a><var>258.28</var>application deposit equal to two percent of the requested allocation to the commissioner <br/>
<a id="pl.258.29"></a><var>258.29</var>when requesting an allocation from the unified pool. After awarding an allocation and <br/>
<a id="pl.258.30"></a><var>258.30</var>receiving a notice of issuance for mortgage bonds issued on behalf of the participating <br/>
<a id="pl.258.31"></a><var>258.31</var>cities, the commissioner shall transfer the application deposit to the Minnesota Housing <br/>
<a id="pl.258.32"></a><var>258.32</var>Finance Agency.<br/>
<a id="pl.259.1"></a><var>259.1</var>For purposes of paragraphs (a) to (d), "city" means a county or a consortium of <br/>
<a id="pl.259.2"></a><var>259.2</var>local government units that agree through a joint powers agreement to apply together <br/>
<a id="pl.259.3"></a><var>259.3</var>for single-family housing programs, and has the meaning given it in section 
         <statute_ref>462C.02, <br/>
<a id="pl.259.4"></a><var>259.4</var>subdivision 6
         </statute_ref>. "Agency" means the Minnesota Housing Finance Agency.<br/>
<a id="pl.259.5"></a><var>259.5</var>(c) Any city that received an allocation pursuant to section 
         <statute_ref>474A.061, subdivision <br/>
<a id="pl.259.6"></a><var>259.6</var>2a, paragraph (f)
         </statute_ref>, in the current year that wishes to receive an additional allocation from <br/>
<a id="pl.259.7"></a><var>259.7</var>the unified pool and issue bonds on its own behalf or pursuant to a joint powers agreement <br/>
<a id="pl.259.8"></a><var>259.8</var>shall notify the Minnesota Housing Finance Agency by the third Monday in September. <br/>
<a id="pl.259.9"></a><var>259.9</var>The total amount of allocation for mortgage bonds for a city choosing to issue bonds on its <br/>
<a id="pl.259.10"></a><var>259.10</var>own behalf or through a joint powers agreement is limited to the lesser of: (i) the amount <br/>
<a id="pl.259.11"></a><var>259.11</var>requested, or (ii) the product of the total amount available for mortgage bonds from the <br/>
<a id="pl.259.12"></a><var>259.12</var>unified pool, multiplied by the ratio of the population of each city that applied in January <br/>
<a id="pl.259.13"></a><var>259.13</var>and received an allocation under section 
         <statute_ref>474A.061, subdivision 2a</statute_ref>, in the same calendar <br/>
<a id="pl.259.14"></a><var>259.14</var>year, as determined by the most recent estimate of the city's population released by the <br/>
<a id="pl.259.15"></a><var>259.15</var>state demographer's office to the total of the population of all the cities that applied in <br/>
<a id="pl.259.16"></a><var>259.16</var>January and received an allocation under section 
         <statute_ref>474A.061, subdivision 2a</statute_ref>, in the same <br/>
<a id="pl.259.17"></a><var>259.17</var>calendar year. If a city choosing to issue bonds on its own behalf or through a joint powers <br/>
<a id="pl.259.18"></a><var>259.18</var>agreement is located within a county that has also chosen to issue bonds on its own behalf <br/>
<a id="pl.259.19"></a><var>259.19</var>or through a joint powers agreement, the city's population will be deducted from the <br/>
<a id="pl.259.20"></a><var>259.20</var>county's population in calculating the amount of allocations under this paragraph.<br/>
<a id="pl.259.21"></a><var>259.21</var>The Minnesota Housing Finance Agency shall notify each city choosing to issue <br/>
<a id="pl.259.22"></a><var>259.22</var>bonds on its own behalf or pursuant to a joint powers agreement of the amount of its <br/>
<a id="pl.259.23"></a><var>259.23</var>allocation by October 15. Upon determining the amount of the allocation of each choosing <br/>
<a id="pl.259.24"></a><var>259.24</var>to issue bonds on its own behalf or through a joint powers agreement, the agency shall <br/>
<a id="pl.259.25"></a><var>259.25</var>forward a list specifying the amounts allotted to each city.<br/>
<a id="pl.259.26"></a><var>259.26</var>A city that chooses to issue bonds on its own behalf or through a joint powers <br/>
<a id="pl.259.27"></a><var>259.27</var>agreement may request an allocation from the commissioner by forwarding an application <br/>
<a id="pl.259.28"></a><var>259.28</var>with an application fee pursuant to section 
         <statute_ref>474A.03, subdivision 4</statute_ref>, and an application <br/>
<a id="pl.259.29"></a><var>259.29</var>deposit equal to two percent of the requested amount to the commissioner no later than <br/>
<a id="pl.259.30"></a><var>259.30</var>4:30 p.m. on the Monday of the week preceding an allocation. Allocations to cities that <br/>
<a id="pl.259.31"></a><var>259.31</var>choose to issue bonds on their own behalf shall be awarded by the commissioner on <br/>
<a id="pl.259.32"></a><var>259.32</var>the first Monday after October 15 through the last Monday in November. No city may <br/>
<a id="pl.259.33"></a><var>259.33</var>receive an allocation from the commissioner after the last Monday in November. The <br/>
<a id="pl.259.34"></a><var>259.34</var>commissioner shall allocate the requested amount to the city or cities subject to the <br/>
<a id="pl.259.35"></a><var>259.35</var>limitations under this subdivision.<br/>
<a id="pl.260.1"></a><var>260.1</var>If a city issues mortgage bonds from an allocation received under this paragraph, <br/>
<a id="pl.260.2"></a><var>260.2</var>the issuer must provide for the recycling of funds into new loans. If the issuer is not <br/>
<a id="pl.260.3"></a><var>260.3</var>able to provide for recycling, the issuer must notify the commissioner in writing of the <br/>
<a id="pl.260.4"></a><var>260.4</var>reason that recycling was not possible and the reason the issuer elected not to have the <br/>
<a id="pl.260.5"></a><var>260.5</var>Minnesota Housing Finance Agency issue the bonds. "Recycling" means the use of money <br/>
<a id="pl.260.6"></a><var>260.6</var>generated from the repayment and prepayment of loans for further eligible loans or for the <br/>
<a id="pl.260.7"></a><var>260.7</var>redemption of bonds and the issuance of current refunding bonds.<br/>
<a id="pl.260.8"></a><var>260.8</var>(d) No entitlement city or county or city in an entitlement county may apply for or <br/>
<a id="pl.260.9"></a><var>260.9</var>be allocated authority to issue mortgage bonds or use mortgage credit certificates from <br/>
<a id="pl.260.10"></a><var>260.10</var>the unified pool.<br/>
<a id="pl.260.11"></a><var>260.11</var>(e) An allocation awarded to the agency for mortgage bonds under this section <br/>
<a id="pl.260.12"></a><var>260.12</var>may be carried forward by the agency into the next succeeding calendar year subject to <br/>
<a id="pl.260.13"></a><var>260.13</var>notice requirements under section 
         <statute_ref>474A.131</statute_ref> and is available until the last business day in <br/>
<a id="pl.260.14"></a><var>260.14</var>December of that succeeding calendar year.<br/>
<a id="pl.260.15"></a><var>260.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.260.16"></a><var>260.16</var>and applies to any bonding authority allocated in 2012 and subsequent years.<br/>
<br/>
<a id="bill.11.10.0"></a><a id="pl.260.17"></a><var>260.17</var>    Sec. 10. Minnesota Statutes 2012, section 475.521, subdivision 1, is amended to read:<br/>
<a id="pl.260.18"></a><var>260.18</var>    Subdivision 1. <b>Definitions.</b> For purposes of this section, the following terms have <br/>
<a id="pl.260.19"></a><var>260.19</var>the meanings given.<br/>
<a id="pl.260.20"></a><var>260.20</var>(a) "Bonds" mean an obligation defined under section 
         <statute_ref>475.51</statute_ref>.<br/>
<a id="pl.260.21"></a><var>260.21</var>(b) "Capital improvement" means acquisition or betterment of public lands, <br/>
<a id="pl.260.22"></a><var>260.22</var>buildings or other improvements for the purpose of a city hall, town hall, library, public <br/>
<a id="pl.260.23"></a><var>260.23</var>safety facility, and public works facility. An improvement must have an expected useful <br/>
<a id="pl.260.24"></a><var>260.24</var>life of five years or more to qualify. Capital improvement does not include light rail transit <br/>
<a id="pl.260.25"></a><var>260.25</var>or any activity related to it, or a park, road, bridge, administrative building other than a <br/>
<a id="pl.260.26"></a><var>260.26</var>city or town hall, or land for any of those facilities. For purposes of this section, "capital <br/>
<a id="pl.260.27"></a><var>260.27</var>improvement" includes expenditures for purposes described in this paragraph that have <br/>
<a id="pl.260.28"></a><var>260.28</var>been incurred by a municipality before approval of a capital improvement plan, if such <br/>
<a id="pl.260.29"></a><var>260.29</var>expenditures are included in a capital improvement plan approved on or before the date of <br/>
<a id="pl.260.30"></a><var>260.30</var>the public hearing under subdivision 2 regarding issuance of bonds for such expenditures.<br/>
<a id="pl.260.31"></a><var>260.31</var>(c) "Municipality" means a home rule charter or statutory city or a town described in <br/>
<a id="pl.260.32"></a><var>260.32</var>section 
         <statute_ref>368.01, subdivision 1</statute_ref> or 1a.<br/>
<br/>
<a id="bill.11.11.0"></a><a id="pl.260.33"></a><var>260.33</var>    Sec. 11. Minnesota Statutes 2012, section 475.521, subdivision 2, is amended to read:<br/>
<a id="pl.261.1"></a><var>261.1</var>    Subd. 2. <b>Election requirement.</b> (a) Bonds issued by a municipality to finance <br/>
<a id="pl.261.2"></a><var>261.2</var>capital improvements under an approved capital improvements plan are not subject to the <br/>
<a id="pl.261.3"></a><var>261.3</var>election requirements of section 
         <statute_ref>475.58</statute_ref>. The bonds must be approved by an affirmative <br/>
<a id="pl.261.4"></a><var>261.4</var>vote of three-fifths of the members of a five-member governing body. In the case of a <br/>
<a id="pl.261.5"></a><var>261.5</var>governing body having more or less than five members, the bonds must be approved by a <br/>
<a id="pl.261.6"></a><var>261.6</var>vote of at least two-thirds of the members of the governing body.<br/>
<a id="pl.261.7"></a><var>261.7</var>(b) Before the issuance of bonds qualifying under this section, the municipality <br/>
<a id="pl.261.8"></a><var>261.8</var>must publish a notice of its intention to issue the bonds and the date and time of the <br/>
<a id="pl.261.9"></a><var>261.9</var>hearing to obtain public comment on the matter. The notice must be published in the <br/>
<a id="pl.261.10"></a><var>261.10</var>official newspaper of the municipality or in a newspaper of general circulation in the <br/>
<a id="pl.261.11"></a><var>261.11</var>municipality. Additionally, the notice may be posted on the official Web site, if any, of the <br/>
<a id="pl.261.12"></a><var>261.12</var>municipality. The notice must be published at least 14 but not more than 28 days before <br/>
<a id="pl.261.13"></a><var>261.13</var>the date of the hearing.<br/>
<a id="pl.261.14"></a><var>261.14</var>(c) A municipality may issue the bonds only after obtaining the approval of a <br/>
<a id="pl.261.15"></a><var>261.15</var>majority of the voters voting on the question of issuing the obligations, if a petition <br/>
<a id="pl.261.16"></a><var>261.16</var>requesting a vote on the issuance is signed by voters equal to five percent of the votes cast <br/>
<a id="pl.261.17"></a><var>261.17</var>in the municipality in the last municipal general election and is filed with the clerk within <br/>
<a id="pl.261.18"></a><var>261.18</var>30 days after the public hearing. The commissioner of revenue shall prepare a suggested <br/>
<a id="pl.261.19"></a><var>261.19</var>form of the question to be presented at the election. If the municipality elects not to submit <br/>
<a id="pl.261.20"></a><var>261.20</var>the question to the voters, the municipality shall not propose the issuance of bonds under <br/>
<a id="pl.261.21"></a><var>261.21</var>this section for the same purpose and in the same amount for a period of 365 days from the <br/>
<a id="pl.261.22"></a><var>261.22</var>date of receipt of the petition. If the question of issuing the bonds is submitted and not <br/>
<a id="pl.261.23"></a><var>261.23</var>approved by the voters, the provisions of section 475.58, subdivision 1a, shall apply.<br/>
<br/>
<a id="bill.11.12.0"></a><a id="pl.261.24"></a><var>261.24</var>    Sec. 12. Minnesota Statutes 2012, section 475.58, subdivision 3b, is amended to read:<br/>
<a id="pl.261.25"></a><var>261.25</var>    Subd. 3b. <b>Street reconstruction.</b> (a) A municipality may, without regard to <br/>
<a id="pl.261.26"></a><var>261.26</var>the election requirement under subdivision 1, issue and sell obligations for street <br/>
<a id="pl.261.27"></a><var>261.27</var>reconstruction, if the following conditions are met:<br/>
<a id="pl.261.28"></a><var>261.28</var>    (1) the streets are reconstructed under a street reconstruction plan that describes the <br/>
<a id="pl.261.29"></a><var>261.29</var>street reconstruction to be financed, the estimated costs, and any planned reconstruction <br/>
<a id="pl.261.30"></a><var>261.30</var>of other streets in the municipality over the next five years, and the plan and issuance of <br/>
<a id="pl.261.31"></a><var>261.31</var>the obligations has been approved by a vote of all of the members of the governing body <br/>
<a id="pl.261.32"></a><var>261.32</var>present at the meeting following a public hearing for which notice has been published in <br/>
<a id="pl.261.33"></a><var>261.33</var>the official newspaper at least ten days but not more than 28 days prior to the hearing; and<br/>
<a id="pl.261.34"></a><var>261.34</var>    (2) if a petition requesting a vote on the issuance is signed by voters equal to <br/>
<a id="pl.261.35"></a><var>261.35</var>five percent of the votes cast in the last municipal general election and is filed with the <br/>
<a id="pl.262.1"></a><var>262.1</var>municipal clerk within 30 days of the public hearing, the municipality may issue the bonds <br/>
<a id="pl.262.2"></a><var>262.2</var>only after obtaining the approval of a majority of the voters voting on the question of the <br/>
<a id="pl.262.3"></a><var>262.3</var>issuance of the obligations. If the municipality elects not to submit the question to the <br/>
<a id="pl.262.4"></a><var>262.4</var>voters, the municipality shall not propose the issuance of bonds under this section for the <br/>
<a id="pl.262.5"></a><var>262.5</var>same purpose and in the same amount for a period of 365 days from the date of receipt <br/>
<a id="pl.262.6"></a><var>262.6</var>of the petition. If the question of issuing the bonds is submitted and not approved by the <br/>
<a id="pl.262.7"></a><var>262.7</var>voters, the provisions of section 475.58, subdivision 1a, shall apply.<br/>
<a id="pl.262.8"></a><var>262.8</var>    (b) Obligations issued under this subdivision are subject to the debt limit of the <br/>
<a id="pl.262.9"></a><var>262.9</var>municipality and are not excluded from net debt under section 
         <statute_ref>475.51, subdivision 4</statute_ref>.<br/>
<a id="pl.262.10"></a><var>262.10</var>    (c) For purposes of this subdivision, street reconstruction includes utility <br/>
<a id="pl.262.11"></a><var>262.11</var>replacement and relocation and other activities incidental to the street reconstruction, turn <br/>
<a id="pl.262.12"></a><var>262.12</var>lanes and other improvements having a substantial public safety function, realignments, <br/>
<a id="pl.262.13"></a><var>262.13</var>other modifications to intersect with state and county roads, and the local share of state and <br/>
<a id="pl.262.14"></a><var>262.14</var>county road projects. For purposes of this subdivision, "street reconstruction" includes <br/>
<a id="pl.262.15"></a><var>262.15</var>expenditures for street reconstruction that have been incurred by a municipality before <br/>
<a id="pl.262.16"></a><var>262.16</var>approval of a street reconstruction plan, if such expenditures are included in a street <br/>
<a id="pl.262.17"></a><var>262.17</var>reconstruction plan approved on or before the date of the public hearing under paragraph <br/>
<a id="pl.262.18"></a><var>262.18</var>(a), clause (1) regarding issuance of bonds for such expenditures.<br/>
<a id="pl.262.19"></a><var>262.19</var>    (d) Except in the case of turn lanes, safety improvements, realignments, intersection <br/>
<a id="pl.262.20"></a><var>262.20</var>modifications, and the local share of state and county road projects, street reconstruction <br/>
<a id="pl.262.21"></a><var>262.21</var>does not include the portion of project cost allocable to widening a street or adding curbs <br/>
<a id="pl.262.22"></a><var>262.22</var>and gutters where none previously existed.<br/>
<br/>
<a id="bill.11.13.0"></a><a id="pl.262.23"></a><var>262.23</var>    Sec. 13. Laws 1971, chapter 773, section 1, subdivision 2, as amended by Laws 1974, <br/>
<a id="pl.262.24"></a><var>262.24</var>chapter 351, section 5, Laws 1976, chapter 234, sections 1 and 7, Laws 1978, chapter 788, <br/>
<a id="pl.262.25"></a><var>262.25</var>section 1, Laws 1981, chapter 369, section 1, Laws 1983, chapter 302, section 1, Laws <br/>
<a id="pl.262.26"></a><var>262.26</var>1988, chapter 513, section 1, Laws 1992, chapter 511, article 9, section 23, Laws 1998, <br/>
<a id="pl.262.27"></a><var>262.27</var>chapter 389, article 3, section 27, and Laws 2002, chapter 390, section 23, is amended to <br/>
<a id="pl.262.28"></a><var>262.28</var>read:<br/>
<a id="pl.262.29"></a><var>262.29</var>    Subd. 2. For each of the years 2003 to 2013 to 2024, the city of St. Paul is <br/>
<a id="pl.262.30"></a><var>262.30</var>authorized to issue bonds in the aggregate principal amount of $20,000,000 for each year.<br/>
<a id="pl.262.31"></a><var>262.31</var><b>EFFECTIVE DATE.</b>This section is effective the day after compliance by the <br/>
<a id="pl.262.32"></a><var>262.32</var>governing body of the city of St. Paul with Minnesota Statutes, section 645.021, <br/>
<a id="pl.262.33"></a><var>262.33</var>subdivisions 2 and 3.<br/>
<br/>
<a id="bill.11.14.0"></a><a id="pl.262.34"></a><var>262.34</var>    Sec. 14. <b>CAPITOL RENOVATION; RESTORATION.</b><br/>
<a id="pl.263.1"></a><var>263.1</var>(a) $30,000,000 is appropriated from the general fund to the commissioner of <br/>
<a id="pl.263.2"></a><var>263.2</var>administration in fiscal year 2015 and is available until spent for the following purposes:<br/>
<a id="pl.263.3"></a><var>263.3</var>(1) to complete the design of, and to construct, repair, improve, renovate, restore, <br/>
<a id="pl.263.4"></a><var>263.4</var>furnish, and equip, the State Capitol Building and grounds; including but not limited <br/>
<a id="pl.263.5"></a><var>263.5</var>to exterior stone repairs and window replacement; asbestos and hazardous materials <br/>
<a id="pl.263.6"></a><var>263.6</var>abatement; mechanical, electrical, and plumbing security systems replacement; general <br/>
<a id="pl.263.7"></a><var>263.7</var>construction, including but not limited to demolition, site improvements, life safety <br/>
<a id="pl.263.8"></a><var>263.8</var>improvements, accessibility, security, and telecommunications; roof replacement; and <br/>
<a id="pl.263.9"></a><var>263.9</var>finish work; and<br/>
<a id="pl.263.10"></a><var>263.10</var>(2) to predesign, design, conduct hazardous materials abatement, construct, repair, <br/>
<a id="pl.263.11"></a><var>263.11</var>renovate, remodel, furnish, and equip the State Office Building, Administration Building, <br/>
<a id="pl.263.12"></a><var>263.12</var>Centennial Office Building, 321 Grove Street Buildings, and other properties located <br/>
<a id="pl.263.13"></a><var>263.13</var>on the Capitol campus as determined by the commissioner of administration to meet <br/>
<a id="pl.263.14"></a><var>263.14</var>temporary and permanent office, storage, parking, and other space needs required by <br/>
<a id="pl.263.15"></a><var>263.15</var>an efficient restoration of the State Capitol Building and for the efficient and effective <br/>
<a id="pl.263.16"></a><var>263.16</var>function of the tenants currently located in the Capitol Building.<br/>
<a id="pl.263.17"></a><var>263.17</var>(b) The commissioner of administration must not prepare final plans and <br/>
<a id="pl.263.18"></a><var>263.18</var>specifications for any construction authorized under paragraph (a), clauses (1) and (2), until <br/>
<a id="pl.263.19"></a><var>263.19</var>the program plan and cost estimates for all elements necessary to complete the project have <br/>
<a id="pl.263.20"></a><var>263.20</var>been approved by each tenant representative. In addition, the appropriation in paragraph <br/>
<a id="pl.263.21"></a><var>263.21</var>(a), clause (2), is not available until each tenant representative approves a relocation plan <br/>
<a id="pl.263.22"></a><var>263.22</var>submitted by the commissioner of administration. The relocation plan shall:<br/>
<a id="pl.263.23"></a><var>263.23</var>(1) describe when each person who currently occupies office space located in the <br/>
<a id="pl.263.24"></a><var>263.24</var>Capitol Building will be moved out of the Capitol Building;<br/>
<a id="pl.263.25"></a><var>263.25</var>(2) identify the building and office space assigned to each person relocated during <br/>
<a id="pl.263.26"></a><var>263.26</var>renovation of the Capitol Building;<br/>
<a id="pl.263.27"></a><var>263.27</var>(3) identify the parking spaces that will be assigned to each person relocated during <br/>
<a id="pl.263.28"></a><var>263.28</var>renovation, including the funding mechanism for any new parking spaces;<br/>
<a id="pl.263.29"></a><var>263.29</var>(4) state when each person relocated during renovation will be moved back into <br/>
<a id="pl.263.30"></a><var>263.30</var>permanent office space and where the office space will be located;<br/>
<a id="pl.263.31"></a><var>263.31</var>(5) include written, signed tenant agreements for tenancy in the Capitol Building <br/>
<a id="pl.263.32"></a><var>263.32</var>after renovation.<br/>
<a id="pl.263.33"></a><var>263.33</var>(c) The commissioner of administration must consult and collaborate with the <br/>
<a id="pl.263.34"></a><var>263.34</var>director of the Minnesota Historical Society in preparing final plans and specifications for <br/>
<a id="pl.263.35"></a><var>263.35</var>any construction authorized under paragraph (a), clauses (1) and (2).<br/>
<a id="pl.264.1"></a><var>264.1</var>For the purposes of this paragraph, "each tenant representative" means the secretary of the <br/>
<a id="pl.264.2"></a><var>264.2</var>senate, on behalf of the senate; the chief clerk of the house of representatives, on behalf <br/>
<a id="pl.264.3"></a><var>264.3</var>of the house of representatives; the governor; the court administrator, on behalf of the <br/>
<a id="pl.264.4"></a><var>264.4</var>judicial branch; and the attorney general, on behalf of the attorney general's office.<br/>
<a id="pl.264.5"></a><var>264.5</var>(d) The commissioner of administration must not install new windows in the Capitol <br/>
<a id="pl.264.6"></a><var>264.6</var>Building that cannot be opened by the tenants of the building.<br/>
<a id="pl.264.7"></a><var>264.7</var>(e) The base for fiscal year 2016 only is $173,600,000 and must be used for the <br/>
<a id="pl.264.8"></a><var>264.8</var>purposes in paragraph (a).<br/>
<a id="pl.264.9"></a><var>264.9</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.11.15.0"></a><a id="pl.264.10"></a><var>264.10</var>    Sec. 15. <b>LEGISLATIVE OFFICE FACILITIES.</b><br/>
<a id="pl.264.11"></a><var>264.11</var>(a) The commissioner of administration may enter into a long-term lease-purchase <br/>
<a id="pl.264.12"></a><var>264.12</var>agreement for a term of up to 25 years, to predesign, design, construct, and equip office, <br/>
<a id="pl.264.13"></a><var>264.13</var>hearing room, and parking facilities within the Capitol area, as defined in Minnesota <br/>
<a id="pl.264.14"></a><var>264.14</var>Statutes, section 15B.02, for legislative and other functions. The commissioner of <br/>
<a id="pl.264.15"></a><var>264.15</var>management and budget may issue lease revenue bonds or certificates of participation <br/>
<a id="pl.264.16"></a><var>264.16</var>associated with the lease-purchase agreement. The lease-purchase agreements must not <br/>
<a id="pl.264.17"></a><var>264.17</var>be terminated, except for nonappropriation of money. The lease-purchase agreements <br/>
<a id="pl.264.18"></a><var>264.18</var>must provide the state with a unilateral right to purchase the leased premises at specified <br/>
<a id="pl.264.19"></a><var>264.19</var>times for specified amounts. The lease-purchase agreements are exempt from Minnesota <br/>
<a id="pl.264.20"></a><var>264.20</var>Statutes, section 16B.24, subdivisions 6 and 6a.<br/>
<a id="pl.264.21"></a><var>264.21</var>(b) The facilities under the lease-purchase agreement are exempt from the design <br/>
<a id="pl.264.22"></a><var>264.22</var>competition requirement under Minnesota Statutes, section 15B.10. Notwithstanding <br/>
<a id="pl.264.23"></a><var>264.23</var>anything to the contrary under Minnesota Statutes, sections 16C.32 and 16C.33, if the <br/>
<a id="pl.264.24"></a><var>264.24</var>commissioner of administration elects to use a design-build delivery method to design and <br/>
<a id="pl.264.25"></a><var>264.25</var>construct one or more facilities under this appropriation, the Capitol Area Architectural and <br/>
<a id="pl.264.26"></a><var>264.26</var>Planning Board, in cooperation with the commissioner, shall create a selection committee <br/>
<a id="pl.264.27"></a><var>264.27</var>to act as the board under Minnesota Statutes, sections 16C.32 and 16C.33, for the design <br/>
<a id="pl.264.28"></a><var>264.28</var>and construction of the facilities. Notwithstanding Minnesota Statutes, section 16B.33, if <br/>
<a id="pl.264.29"></a><var>264.29</var>the commissioner elects to contract with a primary designer to design one or more facilities <br/>
<a id="pl.264.30"></a><var>264.30</var>under this appropriation, the Capitol Area Architectural and Planning Board, in cooperation <br/>
<a id="pl.264.31"></a><var>264.31</var>with the commissioner, shall create a selection committee to conduct the selection process <br/>
<a id="pl.264.32"></a><var>264.32</var>in accordance with standards under Minnesota Statutes, chapters 15B, 16B, and 16C.<br/>
<a id="pl.264.33"></a><var>264.33</var>(c) The commissioner of administration may enter into a ground lease for state-owned <br/>
<a id="pl.264.34"></a><var>264.34</var>property in the capitol area in conjunction with the execution of a lease-purchase <br/>
<a id="pl.264.35"></a><var>264.35</var>agreement entered into under this section for any improvements constructed on that site. <br/>
<a id="pl.265.1"></a><var>265.1</var>Notwithstanding the requirements of Minnesota Statutes, section 16A.695, subdivision 2, <br/>
<a id="pl.265.2"></a><var>265.2</var>paragraph (b), the ground lease must be for a term equal to the term of the lease-purchase <br/>
<a id="pl.265.3"></a><var>265.3</var>agreement, and must include an option to purchase the land at its then fair market value, if <br/>
<a id="pl.265.4"></a><var>265.4</var>the improvements are not purchased by the state at the end of the term of the lease-purchase <br/>
<a id="pl.265.5"></a><var>265.5</var>agreement, or at any earlier time that the lease-purchase agreement is terminated.<br/>
<a id="pl.265.6"></a><var>265.6</var>(d) The commissioner of administration must not prepare final plans and <br/>
<a id="pl.265.7"></a><var>265.7</var>specifications for any construction authorized under this section until the program plan <br/>
<a id="pl.265.8"></a><var>265.8</var>and cost estimates for all elements necessary to complete the project have been approved <br/>
<a id="pl.265.9"></a><var>265.9</var>by the senate Committee on Rules and Administration.<br/>
<a id="pl.265.10"></a><var>265.10</var>(e) $3,000,000 is appropriated in fiscal year 2014 from the general fund to the <br/>
<a id="pl.265.11"></a><var>265.11</var>commissioner of administration for predesign and design of facilities authorized under <br/>
<a id="pl.265.12"></a><var>265.12</var>paragraph (a). This appropriation is available for expenditure the day following final <br/>
<a id="pl.265.13"></a><var>265.13</var>enactment and until June 30, 2015.<br/>
<a id="pl.265.14"></a><var>265.14</var>(f) The commissioner of administration may reserve a portion of money from <br/>
<a id="pl.265.15"></a><var>265.15</var>appropriations for office space costs of the legislature to fund future repairs for facilities <br/>
<a id="pl.265.16"></a><var>265.16</var>constructed under the authority provided in this section. Money reserved under this <br/>
<a id="pl.265.17"></a><var>265.17</var>paragraph must be credited to a segregated account for each building in the special <br/>
<a id="pl.265.18"></a><var>265.18</var>revenue fund and is appropriated to the commissioner to make the repairs. When the state <br/>
<a id="pl.265.19"></a><var>265.19</var>acquires title to a building with an account established under this paragraph, the account <br/>
<a id="pl.265.20"></a><var>265.20</var>for that building must be abolished and the balance remaining in the account must be <br/>
<a id="pl.265.21"></a><var>265.21</var>transferred to the appropriate asset preservation and replacement account created under <br/>
<a id="pl.265.22"></a><var>265.22</var>Minnesota Statutes, section 16B.24, subdivision 3, paragraph (d).<br/>
<a id="pl.265.23"></a><var>265.23</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.11.16.0"></a><a id="pl.265.24"></a><var>265.24</var>    Sec. 16. <b>CARRYFORWARD OF BONDING AUTHORITY FOR 2011; NO </b><br/>
<a id="pl.265.25"></a><var>265.25</var><b>DEDUCTION FROM ENTITLEMENT ALLOCATION.</b><br/>
<a id="pl.265.26"></a><var>265.26</var>Notwithstanding Minnesota Statutes, section 474A.04, subdivision 1a, bonding <br/>
<a id="pl.265.27"></a><var>265.27</var>authority that was allocated to an entitlement issuer in 2011 and that was carried forward <br/>
<a id="pl.265.28"></a><var>265.28</var>under federal tax law, but for which the entitlement issuer did not provide a notice of issue <br/>
<a id="pl.265.29"></a><var>265.29</var>to the commissioner of management and budget before 4:30 p.m. on the last business <br/>
<a id="pl.265.30"></a><var>265.30</var>day of December 2012 must not be deducted from the entitlement allocation for that <br/>
<a id="pl.265.31"></a><var>265.31</var>entitlement issuer in 2013.<br/>
<a id="pl.265.32"></a><var>265.32</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.265.33"></a><var>265.33</var>and applies retroactively to rescind any reallocation by the commissioner of management <br/>
<a id="pl.266.1"></a><var>266.1</var>and budget under Minnesota Statues, section 474A.04, subdivision 1a, of any amounts so <br/>
<a id="pl.266.2"></a><var>266.2</var>deducted.<br/>
<br/>
<a id="bill.11.17.0"></a><a id="pl.266.3"></a><var>266.3</var>    Sec. 17. <b>LOCAL MATCH; INDEPENDENT SCHOOL DISTRICT NO. 435; </b><br/>
<a id="pl.266.4"></a><var>266.4</var><b>WAUBUN-OGEMA-WHITE EARTH.</b><br/>
<a id="pl.266.5"></a><var>266.5</var>(a) Independent School District No. 435, Waubun-Ogema-White Earth, may expand <br/>
<a id="pl.266.6"></a><var>266.6</var>classroom space at its Ogema elementary site using a grant of $551,532 that was awarded <br/>
<a id="pl.266.7"></a><var>266.7</var>to the district by the Department of Human Services on August 12, 2012. Notwithstanding <br/>
<a id="pl.266.8"></a><var>266.8</var>Minnesota Statutes, section 16A.695, to satisfy the match requirements of the grant, under <br/>
<a id="pl.266.9"></a><var>266.9</var>Minnesota Statutes, section 16A.695, subdivision 6, the district may use a lease-purchase <br/>
<a id="pl.266.10"></a><var>266.10</var>agreement. Notwithstanding Minnesota Statutes, section 465.71, the title under the <br/>
<a id="pl.266.11"></a><var>266.11</var>lease-purchase may be held by the district.<br/>
<a id="pl.266.12"></a><var>266.12</var>(b) Notwithstanding Minnesota Statutes, section 126C.13, subdivision 4, if the <br/>
<a id="pl.266.13"></a><var>266.13</var>school district enters a lease-purchase agreement to satisfy the local match, under <br/>
<a id="pl.266.14"></a><var>266.14</var>paragraph (a), but fails to make a lease-purchase payment, the commissioner of education <br/>
<a id="pl.266.15"></a><var>266.15</var>shall reduce its general education aid, under Minnesota Statutes, section 126C.13, <br/>
<a id="pl.266.16"></a><var>266.16</var>subdivision 4, by the amount of the lease-purchase payment.<br/>
<a id="pl.266.17"></a><var>266.17</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.12.0.0"></a>

<a id="bill.12.1.0"></a><a id="pl.266.20"></a><var>266.20</var>    Section 1. Minnesota Statutes 2012, section 38.18, is amended to read:<br/>
<a id="pl.266.21"></a><var>266.21</var><b>38.18 COUNTY FAIRGROUNDS; IMPROVEMENT AIDED.</b><br/>
<a id="pl.266.22"></a><var>266.22</var>Any Each town, statutory city, or school district in this state, now or hereafter at any <br/>
<a id="pl.266.23"></a><var>266.23</var>time having a an estimated market value of all its taxable property, exclusive of money and <br/>
<a id="pl.266.24"></a><var>266.24</var>credits, of more than $105,000,000, and having a county fair located within its corporate <br/>
<a id="pl.266.25"></a><var>266.25</var>limits, is hereby authorized to aid in defraying may pay part of the expense of improving <br/>
<a id="pl.266.26"></a><var>266.26</var>any such the fairground, by appropriating and paying over to the treasurer of the county <br/>
<a id="pl.266.27"></a><var>266.27</var>owning the fairground such sum of money, not exceeding $10,000, for each of the political <br/>
<a id="pl.266.28"></a><var>266.28</var>subdivisions, as the its governing body of the town, statutory city, or school district may, <br/>
<a id="pl.266.29"></a><var>266.29</var>by resolution, determine determines to be for the best interest of the political subdivision,.<br/>
<a id="pl.266.30"></a><var>266.30</var> The sums so appropriated to amounts paid to the county must be used solely for the purpose <br/>
<a id="pl.266.31"></a><var>266.31</var>of aiding in the improvement of to improve the fairground in such the manner as the county <br/>
<a id="pl.266.32"></a><var>266.32</var>board of the county shall determine determines to be for the best interest of the county.<br/>
<br/>
<a id="bill.12.2.0"></a><a id="pl.267.1"></a><var>267.1</var>    Sec. 2. Minnesota Statutes 2012, section 40A.15, subdivision 2, is amended to read:<br/>
<a id="pl.267.2"></a><var>267.2</var>    Subd. 2. <b>Eligible recipients.</b> All counties within the state, municipalities that prepare <br/>
<a id="pl.267.3"></a><var>267.3</var>plans and official controls instead of a county, and districts are eligible for assistance <br/>
<a id="pl.267.4"></a><var>267.4</var>under the program. Counties and districts may apply for assistance on behalf of other <br/>
<a id="pl.267.5"></a><var>267.5</var>municipalities. In order to be eligible for financial assistance a county or municipality must <br/>
<a id="pl.267.6"></a><var>267.6</var>agree to levy at least 0.01209 percent of taxable estimated market value for agricultural <br/>
<a id="pl.267.7"></a><var>267.7</var>land preservation and conservation activities or otherwise spend the equivalent amount of <br/>
<a id="pl.267.8"></a><var>267.8</var>local money on those activities, or spend $15,000 of local money, whichever is less.<br/>
<br/>
<a id="bill.12.3.0"></a><a id="pl.267.9"></a><var>267.9</var>    Sec. 3. Minnesota Statutes 2012, section 69.011, subdivision 1, is amended to read:<br/>
<a id="pl.267.10"></a><var>267.10</var>    Subdivision 1. <b>Definitions.</b> Unless the language or context clearly indicates that <br/>
<a id="pl.267.11"></a><var>267.11</var>a different meaning is intended, the following words and terms, for the purposes of this <br/>
<a id="pl.267.12"></a><var>267.12</var>chapter and chapters 423, 423A, 424 and 424A, have the meanings ascribed to them:<br/>
<a id="pl.267.13"></a><var>267.13</var>    (a) "Commissioner" means the commissioner of revenue.<br/>
<a id="pl.267.14"></a><var>267.14</var>    (b) "Municipality" means:<br/>
<a id="pl.267.15"></a><var>267.15</var>    (1) a home rule charter or statutory city;<br/>
<a id="pl.267.16"></a><var>267.16</var>    (2) an organized town;<br/>
<a id="pl.267.17"></a><var>267.17</var>    (3) a park district subject to chapter 398;<br/>
<a id="pl.267.18"></a><var>267.18</var>    (4) the University of Minnesota;<br/>
<a id="pl.267.19"></a><var>267.19</var>    (5) for purposes of the fire state aid program only, an American Indian tribal <br/>
<a id="pl.267.20"></a><var>267.20</var>government entity located within a federally recognized American Indian reservation;<br/>
<a id="pl.267.21"></a><var>267.21</var>    (6) for purposes of the police state aid program only, an American Indian tribal <br/>
<a id="pl.267.22"></a><var>267.22</var>government with a tribal police department which exercises state arrest powers under <br/>
<a id="pl.267.23"></a><var>267.23</var>section 
         <statute_ref>626.90</statute_ref>, 
         <statute_ref>626.91</statute_ref>, 
         <statute_ref>626.92</statute_ref>, or 
         <statute_ref>626.93</statute_ref>;<br/>
<a id="pl.267.24"></a><var>267.24</var>    (7) for purposes of the police state aid program only, the Metropolitan Airports <br/>
<a id="pl.267.25"></a><var>267.25</var>Commission; and<br/>
<a id="pl.267.26"></a><var>267.26</var>    (8) for purposes of the police state aid program only, the Department of Natural <br/>
<a id="pl.267.27"></a><var>267.27</var>Resources and the Department of Public Safety with respect to peace officers covered <br/>
<a id="pl.267.28"></a><var>267.28</var>under chapter 352B.<br/>
<a id="pl.267.29"></a><var>267.29</var>    (c) "Minnesota Firetown Premium Report" means a form prescribed by the <br/>
<a id="pl.267.30"></a><var>267.30</var>commissioner containing space for reporting by insurers of fire, lightning, sprinkler <br/>
<a id="pl.267.31"></a><var>267.31</var>leakage and extended coverage premiums received upon risks located or to be performed <br/>
<a id="pl.267.32"></a><var>267.32</var>in this state less return premiums and dividends.<br/>
<a id="pl.267.33"></a><var>267.33</var>    (d) "Firetown" means the area serviced by any municipality having a qualified fire <br/>
<a id="pl.267.34"></a><var>267.34</var>department or a qualified incorporated fire department having a subsidiary volunteer <br/>
<a id="pl.267.35"></a><var>267.35</var>firefighters' relief association.<br/>
<a id="pl.268.1"></a><var>268.1</var>    (e) "Estimated market value" means latest available estimated market value of all <br/>
<a id="pl.268.2"></a><var>268.2</var>property in a taxing jurisdiction, whether the property is subject to taxation, or exempt <br/>
<a id="pl.268.3"></a><var>268.3</var>from ad valorem taxation obtained from information which appears on abstracts filed with <br/>
<a id="pl.268.4"></a><var>268.4</var>the commissioner of revenue or equalized by the State Board of Equalization.<br/>
<a id="pl.268.5"></a><var>268.5</var>    (f) "Minnesota Aid to Police Premium Report" means a form prescribed by the <br/>
<a id="pl.268.6"></a><var>268.6</var>commissioner for reporting by each fire and casualty insurer of all premiums received <br/>
<a id="pl.268.7"></a><var>268.7</var>upon direct business received by it in this state, or by its agents for it, in cash or otherwise, <br/>
<a id="pl.268.8"></a><var>268.8</var>during the preceding calendar year, with reference to insurance written for insuring against <br/>
<a id="pl.268.9"></a><var>268.9</var>the perils contained in auto insurance coverages as reported in the Minnesota business <br/>
<a id="pl.268.10"></a><var>268.10</var>schedule of the annual financial statement which each insurer is required to file with <br/>
<a id="pl.268.11"></a><var>268.11</var>the commissioner in accordance with the governing laws or rules less return premiums <br/>
<a id="pl.268.12"></a><var>268.12</var>and dividends.<br/>
<a id="pl.268.13"></a><var>268.13</var>    (g) "Peace officer" means any person:<br/>
<a id="pl.268.14"></a><var>268.14</var>    (1) whose primary source of income derived from wages is from direct employment <br/>
<a id="pl.268.15"></a><var>268.15</var>by a municipality or county as a law enforcement officer on a full-time basis of not less <br/>
<a id="pl.268.16"></a><var>268.16</var>than 30 hours per week;<br/>
<a id="pl.268.17"></a><var>268.17</var>    (2) who has been employed for a minimum of six months prior to December 31 <br/>
<a id="pl.268.18"></a><var>268.18</var>preceding the date of the current year's certification under subdivision 2, clause (b);<br/>
<a id="pl.268.19"></a><var>268.19</var>    (3) who is sworn to enforce the general criminal laws of the state and local ordinances;<br/>
<a id="pl.268.20"></a><var>268.20</var>    (4) who is licensed by the Peace Officers Standards and Training Board and is <br/>
<a id="pl.268.21"></a><var>268.21</var>authorized to arrest with a warrant; and<br/>
<a id="pl.268.22"></a><var>268.22</var>    (5) who is a member of the State Patrol retirement plan or the public employees <br/>
<a id="pl.268.23"></a><var>268.23</var>police and fire fund.<br/>
<a id="pl.268.24"></a><var>268.24</var>    (h) "Full-time equivalent number of peace officers providing contract service" means <br/>
<a id="pl.268.25"></a><var>268.25</var>the integral or fractional number of peace officers which would be necessary to provide <br/>
<a id="pl.268.26"></a><var>268.26</var>the contract service if all peace officers providing service were employed on a full-time <br/>
<a id="pl.268.27"></a><var>268.27</var>basis as defined by the employing unit and the municipality receiving the contract service.<br/>
<a id="pl.268.28"></a><var>268.28</var>    (i) "Retirement benefits other than a service pension" means any disbursement <br/>
<a id="pl.268.29"></a><var>268.29</var>authorized under section 
         <statute_ref>424A.05, subdivision 3</statute_ref>, clauses (3) and (4).<br/>
<a id="pl.268.30"></a><var>268.30</var>    (j) "Municipal clerk, municipal clerk-treasurer, or county auditor" means:<br/>
<a id="pl.268.31"></a><var>268.31</var>(1) for the police state aid program and police relief association financial reports:<br/>
<a id="pl.268.32"></a><var>268.32</var>(i) the person who was elected or appointed to the specified position or, in the <br/>
<a id="pl.268.33"></a><var>268.33</var>absence of the person, another person who is designated by the applicable governing body;<br/>
<a id="pl.268.34"></a><var>268.34</var>(ii) in a park district, the secretary of the board of park district commissioners;<br/>
<a id="pl.268.35"></a><var>268.35</var>(iii) in the case of the University of Minnesota, the official designated by the Board <br/>
<a id="pl.268.36"></a><var>268.36</var>of Regents;<br/>
<a id="pl.269.1"></a><var>269.1</var>(iv) for the Metropolitan Airports Commission, the person designated by the <br/>
<a id="pl.269.2"></a><var>269.2</var>commission;<br/>
<a id="pl.269.3"></a><var>269.3</var>(v) for the Department of Natural Resources or the Department of Public Safety, the <br/>
<a id="pl.269.4"></a><var>269.4</var>respective commissioner;<br/>
<a id="pl.269.5"></a><var>269.5</var>(vi) for a tribal police department which exercises state arrest powers under section <br/>
<statute_ref><a id="pl.269.6"></a><var>269.6</var>626.90
         </statute_ref>, 
         <statute_ref>626.91</statute_ref>, 
         <statute_ref>626.92</statute_ref>, or 
         <statute_ref>626.93</statute_ref>, the person designated by the applicable American <br/>
<a id="pl.269.7"></a><var>269.7</var>Indian tribal government; and<br/>
<a id="pl.269.8"></a><var>269.8</var>(2) for the fire state aid program and fire relief association financial reports, the <br/>
<a id="pl.269.9"></a><var>269.9</var>person who was elected or appointed to the specified position, or, for governmental <br/>
<a id="pl.269.10"></a><var>269.10</var>entities other than counties, if the governing body of the governmental entity designates <br/>
<a id="pl.269.11"></a><var>269.11</var>the position to perform the function, the chief financial official of the governmental entity <br/>
<a id="pl.269.12"></a><var>269.12</var>or the chief administrative official of the governmental entity.<br/>
<a id="pl.269.13"></a><var>269.13</var>(k) "Voluntary statewide lump-sum volunteer firefighter retirement plan" means the <br/>
<a id="pl.269.14"></a><var>269.14</var>retirement plan established by chapter 353G.<br/>
<br/>
<a id="bill.12.4.0"></a><a id="pl.269.15"></a><var>269.15</var>    Sec. 4. Minnesota Statutes 2012, section 69.021, subdivision 7, is amended to read:<br/>
<a id="pl.269.16"></a><var>269.16</var>    Subd. 7. <b>Apportionment of fire state aid to municipalities and relief associations.</b><br/>
<a id="pl.269.17"></a><var>269.17</var>(a) The commissioner shall apportion the fire state aid relative to the premiums reported <br/>
<a id="pl.269.18"></a><var>269.18</var>on the Minnesota Firetown Premium Reports filed under this chapter to each municipality <br/>
<a id="pl.269.19"></a><var>269.19</var>and/or firefighters relief association.<br/>
<a id="pl.269.20"></a><var>269.20</var>(b) The commissioner shall calculate an initial fire state aid allocation amount for <br/>
<a id="pl.269.21"></a><var>269.21</var>each municipality or fire department under paragraph (c) and a minimum fire state aid <br/>
<a id="pl.269.22"></a><var>269.22</var>allocation amount for each municipality or fire department under paragraph (d). The <br/>
<a id="pl.269.23"></a><var>269.23</var>municipality or fire department must receive the larger fire state aid amount.<br/>
<a id="pl.269.24"></a><var>269.24</var>(c) The initial fire state aid allocation amount is the amount available for <br/>
<a id="pl.269.25"></a><var>269.25</var>apportionment as fire state aid under subdivision 5, without inclusion of any additional <br/>
<a id="pl.269.26"></a><var>269.26</var>funding amount to support a minimum fire state aid amount under section 
         <statute_ref>423A.02, <br/>
<a id="pl.269.27"></a><var>269.27</var>subdivision 3
         </statute_ref>, allocated one-half in proportion to the population as shown in the last official <br/>
<a id="pl.269.28"></a><var>269.28</var>statewide federal census for each fire town and one-half in proportion to the estimated <br/>
<a id="pl.269.29"></a><var>269.29</var>market value of each fire town, including (1) the estimated market value of tax-exempt <br/>
<a id="pl.269.30"></a><var>269.30</var>property and (2) the estimated market value of natural resources lands receiving in lieu <br/>
<a id="pl.269.31"></a><var>269.31</var>payments under sections 
         <statute_ref>477A.11 </statute_ref>to 
         <statute_ref>477A.14</statute_ref>, but excluding the estimated market value <br/>
<a id="pl.269.32"></a><var>269.32</var>of minerals. In the case of incorporated or municipal fire departments furnishing fire <br/>
<a id="pl.269.33"></a><var>269.33</var>protection to other cities, towns, or townships as evidenced by valid fire service contracts <br/>
<a id="pl.269.34"></a><var>269.34</var>filed with the commissioner, the distribution must be adjusted proportionately to take <br/>
<a id="pl.269.35"></a><var>269.35</var>into consideration the crossover fire protection service. Necessary adjustments must be <br/>
<a id="pl.270.1"></a><var>270.1</var>made to subsequent apportionments. In the case of municipalities or independent fire <br/>
<a id="pl.270.2"></a><var>270.2</var>departments qualifying for the aid, the commissioner shall calculate the state aid for the <br/>
<a id="pl.270.3"></a><var>270.3</var>municipality or relief association on the basis of the population and the estimated market <br/>
<a id="pl.270.4"></a><var>270.4</var>value of the area furnished fire protection service by the fire department as evidenced by <br/>
<a id="pl.270.5"></a><var>270.5</var>duly executed and valid fire service agreements filed with the commissioner. If one or <br/>
<a id="pl.270.6"></a><var>270.6</var>more fire departments are furnishing contracted fire service to a city, town, or township, <br/>
<a id="pl.270.7"></a><var>270.7</var>only the population and estimated market value of the area served by each fire department <br/>
<a id="pl.270.8"></a><var>270.8</var>may be considered in calculating the state aid and the fire departments furnishing service <br/>
<a id="pl.270.9"></a><var>270.9</var>shall enter into an agreement apportioning among themselves the percent of the population <br/>
<a id="pl.270.10"></a><var>270.10</var>and the estimated market value of each service area. The agreement must be in writing <br/>
<a id="pl.270.11"></a><var>270.11</var>and must be filed with the commissioner.<br/>
<a id="pl.270.12"></a><var>270.12</var>(d) The minimum fire state aid allocation amount is the amount in addition to the <br/>
<a id="pl.270.13"></a><var>270.13</var>initial fire state allocation amount that is derived from any additional funding amount <br/>
<a id="pl.270.14"></a><var>270.14</var>to support a minimum fire state aid amount under section 
         <statute_ref>423A.02, subdivision 3</statute_ref>, and <br/>
<a id="pl.270.15"></a><var>270.15</var>allocated to municipalities with volunteer firefighters relief associations or covered by the <br/>
<a id="pl.270.16"></a><var>270.16</var>voluntary statewide lump-sum volunteer firefighter retirement plan based on the number <br/>
<a id="pl.270.17"></a><var>270.17</var>of active volunteer firefighters who are members of the relief association as reported <br/>
<a id="pl.270.18"></a><var>270.18</var>in the annual financial reporting for the calendar year 1993 to the Office of the State <br/>
<a id="pl.270.19"></a><var>270.19</var>Auditor, but not to exceed 30 active volunteer firefighters, so that all municipalities or <br/>
<a id="pl.270.20"></a><var>270.20</var>fire departments with volunteer firefighters relief associations receive in total at least a <br/>
<a id="pl.270.21"></a><var>270.21</var>minimum fire state aid amount per 1993 active volunteer firefighter to a maximum of <br/>
<a id="pl.270.22"></a><var>270.22</var>30 firefighters. If a relief association is established after calendar year 1993 and before <br/>
<a id="pl.270.23"></a><var>270.23</var>calendar year 2000, the number of active volunteer firefighters who are members of the <br/>
<a id="pl.270.24"></a><var>270.24</var>relief association as reported in the annual financial reporting for calendar year 1998 <br/>
<a id="pl.270.25"></a><var>270.25</var>to the Office of the State Auditor, but not to exceed 30 active volunteer firefighters, <br/>
<a id="pl.270.26"></a><var>270.26</var>shall be used in this determination. If a relief association is established after calendar <br/>
<a id="pl.270.27"></a><var>270.27</var>year 1999, the number of active volunteer firefighters who are members of the relief <br/>
<a id="pl.270.28"></a><var>270.28</var>association as reported in the first annual financial reporting submitted to the Office of <br/>
<a id="pl.270.29"></a><var>270.29</var>the State Auditor, but not to exceed 20 active volunteer firefighters, must be used in this <br/>
<a id="pl.270.30"></a><var>270.30</var>determination. If a relief association is terminated as a result of providing retirement <br/>
<a id="pl.270.31"></a><var>270.31</var>coverage for volunteer firefighters by the voluntary statewide lump-sum volunteer <br/>
<a id="pl.270.32"></a><var>270.32</var>firefighter retirement plan under chapter 353G, the number of active volunteer firefighters <br/>
<a id="pl.270.33"></a><var>270.33</var>of the municipality covered by the statewide plan as certified by the executive director of <br/>
<a id="pl.270.34"></a><var>270.34</var>the Public Employees Retirement Association to the commissioner and the state auditor, <br/>
<a id="pl.270.35"></a><var>270.35</var>but not to exceed 30 active firefighters, must be used in this determination.<br/>
<a id="pl.271.1"></a><var>271.1</var>(e) Unless the firefighters of the applicable fire department are members of the <br/>
<a id="pl.271.2"></a><var>271.2</var>voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid must <br/>
<a id="pl.271.3"></a><var>271.3</var>be paid to the treasurer of the municipality where the fire department is located and the <br/>
<a id="pl.271.4"></a><var>271.4</var>treasurer of the municipality shall, within 30 days of receipt of the fire state aid, transmit <br/>
<a id="pl.271.5"></a><var>271.5</var>the aid to the relief association if the relief association has filed a financial report with the <br/>
<a id="pl.271.6"></a><var>271.6</var>treasurer of the municipality and has met all other statutory provisions pertaining to the <br/>
<a id="pl.271.7"></a><var>271.7</var>aid apportionment. If the firefighters of the applicable fire department are members of <br/>
<a id="pl.271.8"></a><var>271.8</var>the voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid <br/>
<a id="pl.271.9"></a><var>271.9</var>must be paid to the executive director of the Public Employees Retirement Association <br/>
<a id="pl.271.10"></a><var>271.10</var>and deposited in the voluntary statewide lump-sum volunteer firefighter retirement fund.<br/>
<a id="pl.271.11"></a><var>271.11</var>(f) The commissioner may make rules to permit the administration of the provisions <br/>
<a id="pl.271.12"></a><var>271.12</var>of this section.<br/>
<a id="pl.271.13"></a><var>271.13</var>(g) Any adjustments needed to correct prior misallocations must be made to <br/>
<a id="pl.271.14"></a><var>271.14</var>subsequent apportionments.<br/>
<br/>
<a id="bill.12.5.0"></a><a id="pl.271.15"></a><var>271.15</var>    Sec. 5. Minnesota Statutes 2012, section 69.021, subdivision 8, is amended to read:<br/>
<a id="pl.271.16"></a><var>271.16</var>    Subd. 8. <b>Population and </b><b>estimated </b><b>market value.</b> (a) In computations relating to <br/>
<a id="pl.271.17"></a><var>271.17</var>fire state aid requiring the use of population figures, only official statewide federal census <br/>
<a id="pl.271.18"></a><var>271.18</var>figures are to be used. Increases or decreases in population disclosed by reason of any <br/>
<a id="pl.271.19"></a><var>271.19</var>special census must not be taken into consideration.<br/>
<a id="pl.271.20"></a><var>271.20</var>(b) In calculations relating to fire state aid requiring the use of estimated market <br/>
<a id="pl.271.21"></a><var>271.21</var>value property figures, only the latest available estimated market value property figures <br/>
<a id="pl.271.22"></a><var>271.22</var>may be used.<br/>
<br/>
<a id="bill.12.6.0"></a><a id="pl.271.23"></a><var>271.23</var>    Sec. 6. Minnesota Statutes 2012, section 88.51, subdivision 3, is amended to read:<br/>
<a id="pl.271.24"></a><var>271.24</var>    Subd. 3. <b>Determination of</b><b> estimated</b><b> market value.</b> In determining the net tax <br/>
<a id="pl.271.25"></a><var>271.25</var>capacity of property within any taxing district the value of the surface of lands within any <br/>
<a id="pl.271.26"></a><var>271.26</var>auxiliary forest therein, as determined by the county board under the provisions of section <br/>
<statute_ref><a id="pl.271.27"></a><var>271.27</var>88.48, subdivision 3
         </statute_ref>, shall, for all purposes except the levying of taxes on lands within any <br/>
<a id="pl.271.28"></a><var>271.28</var>such forest, be deemed the estimated market value thereof.<br/>
<br/>
<a id="bill.12.7.0"></a><a id="pl.271.29"></a><var>271.29</var>    Sec. 7. Minnesota Statutes 2012, section 103B.245, subdivision 3, is amended to read:<br/>
<a id="pl.271.30"></a><var>271.30</var>    Subd. 3. <b>Tax.</b> After adoption of the ordinance under subdivision 2, a local <br/>
<a id="pl.271.31"></a><var>271.31</var>government unit may annually levy a tax on all taxable property in the district for the <br/>
<a id="pl.271.32"></a><var>271.32</var>purposes for which the tax district is established. The tax may not exceed 0.02418 percent <br/>
<a id="pl.271.33"></a><var>271.33</var>of estimated market value on taxable property located in rural towns other than urban <br/>
<a id="pl.272.1"></a><var>272.1</var>towns, unless allowed by resolution of the town electors. The proceeds of the tax shall <br/>
<a id="pl.272.2"></a><var>272.2</var>be paid into a fund reserved for these purposes. Any proceeds remaining in the reserve <br/>
<a id="pl.272.3"></a><var>272.3</var>fund at the time the tax is terminated or the district is dissolved shall be transferred and <br/>
<a id="pl.272.4"></a><var>272.4</var>irrevocably pledged to the debt service fund of the local unit to be used solely to reduce <br/>
<a id="pl.272.5"></a><var>272.5</var>tax levies for bonded indebtedness of taxable property in the district.<br/>
<br/>
<a id="bill.12.8.0"></a><a id="pl.272.6"></a><var>272.6</var>    Sec. 8. Minnesota Statutes 2012, section 103B.251, subdivision 8, is amended to read:<br/>
<a id="pl.272.7"></a><var>272.7</var>    Subd. 8. <b>Tax.</b> (a) For the payment of principal and interest on the bonds issued <br/>
<a id="pl.272.8"></a><var>272.8</var>under subdivision 7 and the payment required under subdivision 6, the county shall <br/>
<a id="pl.272.9"></a><var>272.9</var>irrevocably pledge and appropriate the proceeds of a tax levied on all taxable property <br/>
<a id="pl.272.10"></a><var>272.10</var>located within the territory of the watershed management organization or subwatershed <br/>
<a id="pl.272.11"></a><var>272.11</var>unit for which the bonds are issued. Each year until the reserve for payment of the bonds <br/>
<a id="pl.272.12"></a><var>272.12</var>is sufficient to retire the bonds, the county shall levy on all taxable property in the territory <br/>
<a id="pl.272.13"></a><var>272.13</var>of the organization or unit, without respect to any statutory or other limitation on taxes, an <br/>
<a id="pl.272.14"></a><var>272.14</var>amount of taxes sufficient to pay principal and interest on the bonds and to restore any <br/>
<a id="pl.272.15"></a><var>272.15</var>deficiencies in reserves required to be maintained for payment of the bonds.<br/>
<a id="pl.272.16"></a><var>272.16</var>(b) The tax levied on rural towns other than urban towns may not exceed 0.02418 <br/>
<a id="pl.272.17"></a><var>272.17</var>percent of taxable estimated market value, unless approved by resolution of the town <br/>
<a id="pl.272.18"></a><var>272.18</var>electors.<br/>
<a id="pl.272.19"></a><var>272.19</var>(c) If at any time the amounts available from the levy on property in the territory of <br/>
<a id="pl.272.20"></a><var>272.20</var>the organization are insufficient to pay principal and interest on the bonds when due, the <br/>
<a id="pl.272.21"></a><var>272.21</var>county shall make payment from any available funds in the county treasury.<br/>
<a id="pl.272.22"></a><var>272.22</var>(d) The amount of any taxes which are required to be levied outside of the territory <br/>
<a id="pl.272.23"></a><var>272.23</var>of the watershed management organization or unit or taken from the general funds of the <br/>
<a id="pl.272.24"></a><var>272.24</var>county to pay principal or interest on the bonds shall be reimbursed to the county from <br/>
<a id="pl.272.25"></a><var>272.25</var>taxes levied within the territory of the watershed management organization or unit.<br/>
<br/>
<a id="bill.12.9.0"></a><a id="pl.272.26"></a><var>272.26</var>    Sec. 9. Minnesota Statutes 2012, section 103B.635, subdivision 2, is amended to read:<br/>
<a id="pl.272.27"></a><var>272.27</var>    Subd. 2. <b>Municipal funding of district.</b> (a) The governing body or board of <br/>
<a id="pl.272.28"></a><var>272.28</var>supervisors of each municipality in the district must provide the funds necessary to meet <br/>
<a id="pl.272.29"></a><var>272.29</var>its proportion of the total cost determined by the board, provided the total funding from <br/>
<a id="pl.272.30"></a><var>272.30</var>all municipalities in the district for the costs shall not exceed an amount equal to .00242 <br/>
<a id="pl.272.31"></a><var>272.31</var>percent of the total taxable estimated market value within the district, unless three-fourths <br/>
<a id="pl.272.32"></a><var>272.32</var>of the municipalities in the district pass a resolution concurring to the additional costs.<br/>
<a id="pl.272.33"></a><var>272.33</var>(b) The funds must be deposited in the treasury of the district in amounts and at <br/>
<a id="pl.272.34"></a><var>272.34</var>times as the treasurer of the district requires.<br/>
<br/>
<a id="bill.12.10.0"></a><a id="pl.273.1"></a><var>273.1</var>    Sec. 10. Minnesota Statutes 2012, section 103B.691, subdivision 2, is amended to read:<br/>
<a id="pl.273.2"></a><var>273.2</var>    Subd. 2. <b>Municipal funding of district.</b> (a) The governing body or board of <br/>
<a id="pl.273.3"></a><var>273.3</var>supervisors of each municipality in the district shall provide the funds necessary to meet its <br/>
<a id="pl.273.4"></a><var>273.4</var>proportion of the total cost to be borne by the municipalities as finally certified by the board.<br/>
<a id="pl.273.5"></a><var>273.5</var>(b) The municipality's funds may be raised by any means within the authority of <br/>
<a id="pl.273.6"></a><var>273.6</var>the municipality. The municipalities may each levy a tax not to exceed .02418 percent of <br/>
<a id="pl.273.7"></a><var>273.7</var>taxable estimated market value on the taxable property located in the district to provide <br/>
<a id="pl.273.8"></a><var>273.8</var>the funds. The levy shall be within all other limitations provided by law.<br/>
<a id="pl.273.9"></a><var>273.9</var>(c) The funds must be deposited into the treasury of the district in amounts and at <br/>
<a id="pl.273.10"></a><var>273.10</var>times as the treasurer of the district requires.<br/>
<br/>
<a id="bill.12.11.0"></a><a id="pl.273.11"></a><var>273.11</var>    Sec. 11. Minnesota Statutes 2012, section 103D.905, subdivision 2, is amended to read:<br/>
<a id="pl.273.12"></a><var>273.12</var>    Subd. 2. <b>Organizational expense fund.</b> (a) An organizational expense fund, <br/>
<a id="pl.273.13"></a><var>273.13</var>consisting of an ad valorem tax levy, shall not exceed 0.01596 percent of taxable estimated<br/>
<a id="pl.273.14"></a><var>273.14</var> market value, or $60,000, whichever is less. The money in the fund shall be used for <br/>
<a id="pl.273.15"></a><var>273.15</var>organizational expenses and preparation of the watershed management plan for projects.<br/>
<a id="pl.273.16"></a><var>273.16</var>(b) The managers may borrow from the affected counties up to 75 percent of the <br/>
<a id="pl.273.17"></a><var>273.17</var>anticipated funds to be collected from the organizational expense fund levy and the <br/>
<a id="pl.273.18"></a><var>273.18</var>counties affected may make the advancements.<br/>
<a id="pl.273.19"></a><var>273.19</var>(c) The advancement of anticipated funds shall be apportioned among affected <br/>
<a id="pl.273.20"></a><var>273.20</var>counties in the same ratio as the net tax capacity of the area of the counties within <br/>
<a id="pl.273.21"></a><var>273.21</var>the watershed district bears to the net tax capacity of the entire watershed district. If a <br/>
<a id="pl.273.22"></a><var>273.22</var>watershed district is enlarged, an organizational expense fund may be levied against the <br/>
<a id="pl.273.23"></a><var>273.23</var>area added to the watershed district in the same manner as provided in this subdivision.<br/>
<a id="pl.273.24"></a><var>273.24</var>(d) Unexpended funds collected for the organizational expense may be transferred to <br/>
<a id="pl.273.25"></a><var>273.25</var>the administrative fund and used for the purposes of the administrative fund.<br/>
<br/>
<a id="bill.12.12.0"></a><a id="pl.273.26"></a><var>273.26</var>    Sec. 12. Minnesota Statutes 2012, section 103D.905, subdivision 3, is amended to read:<br/>
<a id="pl.273.27"></a><var>273.27</var>    Subd. 3. <b>General fund.</b> A general fund, consisting of an ad valorem tax levy, may <br/>
<a id="pl.273.28"></a><var>273.28</var>not exceed 0.048 percent of taxable estimated market value, or $250,000, whichever is <br/>
<a id="pl.273.29"></a><var>273.29</var>less. The money in the fund shall be used for general administrative expenses and for <br/>
<a id="pl.273.30"></a><var>273.30</var>the construction or implementation and maintenance of projects of common benefit to <br/>
<a id="pl.273.31"></a><var>273.31</var>the watershed district. The managers may make an annual levy for the general fund as <br/>
<a id="pl.273.32"></a><var>273.32</var>provided in section 
         <statute_ref>103D.911</statute_ref>. In addition to the annual general levy, the managers may <br/>
<a id="pl.273.33"></a><var>273.33</var>annually levy a tax not to exceed 0.00798 percent of taxable estimated market value <br/>
<a id="pl.273.34"></a><var>273.34</var>for a period not to exceed 15 consecutive years to pay the cost attributable to the basic <br/>
<a id="pl.274.1"></a><var>274.1</var>water management features of projects initiated by petition of a political subdivision <br/>
<a id="pl.274.2"></a><var>274.2</var>within the watershed district or by petition of at least 50 resident owners whose property <br/>
<a id="pl.274.3"></a><var>274.3</var>is within the watershed district.<br/>
<br/>
<a id="bill.12.13.0"></a><a id="pl.274.4"></a><var>274.4</var>    Sec. 13. Minnesota Statutes 2012, section 103D.905, subdivision 8, is amended to read:<br/>
<a id="pl.274.5"></a><var>274.5</var>    Subd. 8. <b>Survey and data acquisition fund.</b> (a) A survey and data acquisition fund <br/>
<a id="pl.274.6"></a><var>274.6</var>is established and used only if other funds are not available to the watershed district to pay <br/>
<a id="pl.274.7"></a><var>274.7</var>for making necessary surveys and acquiring data.<br/>
<a id="pl.274.8"></a><var>274.8</var>(b) The survey and data acquisition fund consists of the proceeds of a property tax <br/>
<a id="pl.274.9"></a><var>274.9</var>that can be levied only once every five years. The levy may not exceed 0.02418 percent of <br/>
<a id="pl.274.10"></a><var>274.10</var>taxable estimated market value.<br/>
<a id="pl.274.11"></a><var>274.11</var>(c) The balance of the survey and data acquisition fund may not exceed $50,000.<br/>
<a id="pl.274.12"></a><var>274.12</var>(d) In a subsequent proceeding for a project where a survey has been made, the <br/>
<a id="pl.274.13"></a><var>274.13</var>attributable cost of the survey as determined by the managers shall be included as a part of <br/>
<a id="pl.274.14"></a><var>274.14</var>the cost of the work and the sum shall be repaid to the survey and data acquisition fund.<br/>
<br/>
<a id="bill.12.14.0"></a><a id="pl.274.15"></a><var>274.15</var>    Sec. 14. Minnesota Statutes 2012, section 117.025, subdivision 7, is amended to read:<br/>
<a id="pl.274.16"></a><var>274.16</var>    Subd. 7. <b>Structurally substandard.</b> "Structurally substandard" means a building:<br/>
<a id="pl.274.17"></a><var>274.17</var>(1) that was inspected by the appropriate local government and cited for one or more <br/>
<a id="pl.274.18"></a><var>274.18</var>enforceable housing, maintenance, or building code violations;<br/>
<a id="pl.274.19"></a><var>274.19</var>(2) in which the cited building code violations involve one or more of the following:<br/>
<a id="pl.274.20"></a><var>274.20</var>(i) a roof and roof framing element;<br/>
<a id="pl.274.21"></a><var>274.21</var>(ii) support walls, beams, and headers;<br/>
<a id="pl.274.22"></a><var>274.22</var>(iii) foundation, footings, and subgrade conditions;<br/>
<a id="pl.274.23"></a><var>274.23</var>(iv) light and ventilation;<br/>
<a id="pl.274.24"></a><var>274.24</var>(v) fire protection, including egress;<br/>
<a id="pl.274.25"></a><var>274.25</var>(vi) internal utilities, including electricity, gas, and water;<br/>
<a id="pl.274.26"></a><var>274.26</var>(vii) flooring and flooring elements; or<br/>
<a id="pl.274.27"></a><var>274.27</var>(viii) walls, insulation, and exterior envelope;<br/>
<a id="pl.274.28"></a><var>274.28</var>(3) in which the cited housing, maintenance, or building code violations have not <br/>
<a id="pl.274.29"></a><var>274.29</var>been remedied after two notices to cure the noncompliance; and<br/>
<a id="pl.274.30"></a><var>274.30</var>(4) has uncured housing, maintenance, and building code violations, satisfaction of <br/>
<a id="pl.274.31"></a><var>274.31</var>which would cost more than 50 percent of the assessor's taxable estimated market value <br/>
<a id="pl.274.32"></a><var>274.32</var>for the building, excluding land value, as determined under section 
         <statute_ref>273.11</statute_ref> for property <br/>
<a id="pl.274.33"></a><var>274.33</var>taxes payable in the year in which the condemnation is commenced.<br/>
<a id="pl.275.1"></a><var>275.1</var>A local government is authorized to seek from a judge or magistrate an administrative <br/>
<a id="pl.275.2"></a><var>275.2</var>warrant to gain access to inspect a specific building in a proposed development or <br/>
<a id="pl.275.3"></a><var>275.3</var>redevelopment area upon showing of probable cause that a specific code violation has <br/>
<a id="pl.275.4"></a><var>275.4</var>occurred and that the violation has not been cured, and that the owner has denied the local <br/>
<a id="pl.275.5"></a><var>275.5</var>government access to the property. Items of evidence that may support a conclusion of <br/>
<a id="pl.275.6"></a><var>275.6</var>probable cause may include recent fire or police inspections, housing inspection, exterior <br/>
<a id="pl.275.7"></a><var>275.7</var>evidence of deterioration, or other similar reliable evidence of deterioration in the specific <br/>
<a id="pl.275.8"></a><var>275.8</var>building.<br/>
<br/>
<a id="bill.12.15.0"></a><a id="pl.275.9"></a><var>275.9</var>    Sec. 15. Minnesota Statutes 2012, section 127A.48, subdivision 1, is amended to read:<br/>
<a id="pl.275.10"></a><var>275.10</var>    Subdivision 1. <b>Computation.</b> The Department of Revenue must annually conduct <br/>
<a id="pl.275.11"></a><var>275.11</var>an assessment/sales ratio study of the taxable property in each county, city, town, and <br/>
<a id="pl.275.12"></a><var>275.12</var>school district in accordance with the procedures in subdivisions 2 and 3. Based upon the <br/>
<a id="pl.275.13"></a><var>275.13</var>results of this assessment/sales ratio study, the Department of Revenue must determine an <br/>
<a id="pl.275.14"></a><var>275.14</var>aggregate equalized net tax capacity for the various classes of taxable property in each <br/>
<a id="pl.275.15"></a><var>275.15</var>taxing district, the aggregate of which tax capacity shall be is designated as the adjusted net <br/>
<a id="pl.275.16"></a><var>275.16</var>tax capacity. The adjusted net tax capacity must be reduced by the captured tax capacity of <br/>
<a id="pl.275.17"></a><var>275.17</var>tax increment districts under section 469.177, subdivision 2, fiscal disparities contribution <br/>
<a id="pl.275.18"></a><var>275.18</var>tax capacities under sections 276A.06 and 473F.08, and the tax capacity of transmission <br/>
<a id="pl.275.19"></a><var>275.19</var>lines required to be subtracted from the local tax base under section 273.425; and increased <br/>
<a id="pl.275.20"></a><var>275.20</var>by fiscal disparities distribution tax capacities under sections 276A.06 and 473F.08. The <br/>
<a id="pl.275.21"></a><var>275.21</var>adjusted net tax capacities shall be determined using the net tax capacity percentages in <br/>
<a id="pl.275.22"></a><var>275.22</var>effect for the assessment year following the assessment year of the study. The Department <br/>
<a id="pl.275.23"></a><var>275.23</var>of Revenue must make whatever estimates are necessary to account for changes in the <br/>
<a id="pl.275.24"></a><var>275.24</var>classification system. The Department of Revenue may incur the expense necessary to <br/>
<a id="pl.275.25"></a><var>275.25</var>make the determinations. The commissioner of revenue may reimburse any county or <br/>
<a id="pl.275.26"></a><var>275.26</var>governmental official for requested services performed in ascertaining the adjusted net tax <br/>
<a id="pl.275.27"></a><var>275.27</var>capacity. On or before March 15 annually, the Department of Revenue shall file with the <br/>
<a id="pl.275.28"></a><var>275.28</var>chair of the Tax Committee of the house of representatives and the chair of the Committee <br/>
<a id="pl.275.29"></a><var>275.29</var>on Taxes and Tax laws of the senate a report of adjusted net tax capacities for school <br/>
<a id="pl.275.30"></a><var>275.30</var>districts. On or before June 15 annually, the Department of Revenue shall file its final report <br/>
<a id="pl.275.31"></a><var>275.31</var>on the adjusted net tax capacities for school districts established by the previous year's <br/>
<a id="pl.275.32"></a><var>275.32</var>assessments and the current year's net tax capacity percentages with the commissioner of <br/>
<a id="pl.275.33"></a><var>275.33</var>education and each county auditor for those school districts for which the auditor has the <br/>
<a id="pl.275.34"></a><var>275.34</var>responsibility for determination of local tax rates. A copy of the report so filed shall be <br/>
<a id="pl.276.1"></a><var>276.1</var>mailed to the clerk of each school district involved and to the county assessor or supervisor <br/>
<a id="pl.276.2"></a><var>276.2</var>of assessments of the county or counties in which each school district is located.<br/>
<a id="pl.276.3"></a><var>276.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.12.16.0"></a><a id="pl.276.4"></a><var>276.4</var>    Sec. 16. Minnesota Statutes 2012, section 138.053, is amended to read:<br/>
<a id="pl.276.5"></a><var>276.5</var><b>138.053 COUNTY HISTORICAL SOCIETY; TAX LEVY; CITIES OR </b><br/>
<a id="pl.276.6"></a><var>276.6</var><b>TOWNS.</b><br/>
<a id="pl.276.7"></a><var>276.7</var>The governing body of any home rule charter or statutory city or town may annually <br/>
<a id="pl.276.8"></a><var>276.8</var>appropriate from its general fund an amount not to exceed 0.02418 percent of taxable<br/>
<a id="pl.276.9"></a><var>276.9</var> estimated market value, derived from ad valorem taxes on property or other revenues, to <br/>
<a id="pl.276.10"></a><var>276.10</var>be paid to the historical society of its respective county to be used for the promotion of <br/>
<a id="pl.276.11"></a><var>276.11</var>historical work and to aid in defraying the expenses of carrying on the historical work in the <br/>
<a id="pl.276.12"></a><var>276.12</var>county. No city or town may appropriate any funds for the benefit of any historical society <br/>
<a id="pl.276.13"></a><var>276.13</var>unless the society is affiliated with and approved by the Minnesota Historical Society.<br/>
<br/>
<a id="bill.12.17.0"></a><a id="pl.276.14"></a><var>276.14</var>    Sec. 17. Minnesota Statutes 2012, section 144F.01, subdivision 4, is amended to read:<br/>
<a id="pl.276.15"></a><var>276.15</var>    Subd. 4. <b>Property tax levy authority.</b> The district's board may levy a tax on the <br/>
<a id="pl.276.16"></a><var>276.16</var>taxable real and personal property in the district. The ad valorem tax levy may not exceed <br/>
<a id="pl.276.17"></a><var>276.17</var>0.048 percent of the taxable estimated market value of the district or $400,000, whichever <br/>
<a id="pl.276.18"></a><var>276.18</var>is less. The proceeds of the levy must be used as provided in subdivision 5. The board shall <br/>
<a id="pl.276.19"></a><var>276.19</var>certify the levy at the times as provided under section 
         <statute_ref>275.07</statute_ref>. The board shall provide the <br/>
<a id="pl.276.20"></a><var>276.20</var>county with whatever information is necessary to identify the property that is located within <br/>
<a id="pl.276.21"></a><var>276.21</var>the district. If the boundaries include a part of a parcel, the entire parcel shall be included <br/>
<a id="pl.276.22"></a><var>276.22</var>in the district. The county auditors must spread, collect, and distribute the proceeds of the <br/>
<a id="pl.276.23"></a><var>276.23</var>tax at the same time and in the same manner as provided by law for all other property taxes.<br/>
<br/>
<a id="bill.12.18.0"></a><a id="pl.276.24"></a><var>276.24</var>    Sec. 18. Minnesota Statutes 2012, section 162.07, subdivision 3, is amended to read:<br/>
<a id="pl.276.25"></a><var>276.25</var>    Subd. 3. <b>Computation for rural counties.</b> An amount equal to a levy of 0.01596 <br/>
<a id="pl.276.26"></a><var>276.26</var>percent on each rural county's total taxable estimated market value for the last preceding <br/>
<a id="pl.276.27"></a><var>276.27</var>calendar year shall be computed and shall be subtracted from the county's total estimated <br/>
<a id="pl.276.28"></a><var>276.28</var>construction costs. The result thereof shall be the money needs of the county. For the <br/>
<a id="pl.276.29"></a><var>276.29</var>purpose of this section, "rural counties" means all counties having a population of less <br/>
<a id="pl.276.30"></a><var>276.30</var>than 175,000.<br/>
<br/>
<a id="bill.12.19.0"></a><a id="pl.276.31"></a><var>276.31</var>    Sec. 19. Minnesota Statutes 2012, section 162.07, subdivision 4, is amended to read:<br/>
<a id="pl.277.1"></a><var>277.1</var>    Subd. 4. <b>Computation for urban counties.</b> An amount equal to a levy of 0.00967 <br/>
<a id="pl.277.2"></a><var>277.2</var>percent on each urban county's total taxable estimated market value for the last preceding <br/>
<a id="pl.277.3"></a><var>277.3</var>calendar year shall be computed and shall be subtracted from the county's total estimated <br/>
<a id="pl.277.4"></a><var>277.4</var>construction costs. The result thereof shall be the money needs of the county. For <br/>
<a id="pl.277.5"></a><var>277.5</var>the purpose of this section, "urban counties" means all counties having a population <br/>
<a id="pl.277.6"></a><var>277.6</var>of 175,000 or more.<br/>
<br/>
<a id="bill.12.20.0"></a><a id="pl.277.7"></a><var>277.7</var>    Sec. 20. Minnesota Statutes 2012, section 163.04, subdivision 3, is amended to read:<br/>
<a id="pl.277.8"></a><var>277.8</var>    Subd. 3. <b>Bridges within certain cities.</b> When the council of any statutory city or <br/>
<a id="pl.277.9"></a><var>277.9</var>city of the third or fourth class may determine that it is necessary to build or improve any <br/>
<a id="pl.277.10"></a><var>277.10</var>bridge or bridges, including approaches thereto, and any dam or retaining works connected <br/>
<a id="pl.277.11"></a><var>277.11</var>therewith, upon or forming a part of streets or highways either wholly or partly within <br/>
<a id="pl.277.12"></a><var>277.12</var>its limits, the county board shall appropriate one-half of the money as may be necessary <br/>
<a id="pl.277.13"></a><var>277.13</var>therefor from the county road and bridge fund, not exceeding during any year one-half <br/>
<a id="pl.277.14"></a><var>277.14</var>the amount of taxes paid into the county road and bridge fund during the preceding year, <br/>
<a id="pl.277.15"></a><var>277.15</var>on property within the corporate limits of the city. The appropriation shall be made upon <br/>
<a id="pl.277.16"></a><var>277.16</var>the petition of the council, which petition shall be filed by the council with the county <br/>
<a id="pl.277.17"></a><var>277.17</var>board prior to the fixing by the board of the annual county tax levy. The county board <br/>
<a id="pl.277.18"></a><var>277.18</var>shall determine the plans and specifications, shall let all necessary contracts, shall have <br/>
<a id="pl.277.19"></a><var>277.19</var>charge of construction, and upon its request, warrants in payment thereof shall be issued <br/>
<a id="pl.277.20"></a><var>277.20</var>by the county auditor, from time to time, as the construction work proceeds. Any unpaid <br/>
<a id="pl.277.21"></a><var>277.21</var>balance may be paid or advanced by the city. On petition of the council, the appropriations <br/>
<a id="pl.277.22"></a><var>277.22</var>of the county board, during not to exceed three successive years, may be made to apply <br/>
<a id="pl.277.23"></a><var>277.23</var>on the construction of the same items and to repay any money advanced by the city in <br/>
<a id="pl.277.24"></a><var>277.24</var>the construction thereof. None of the provisions of this section shall be construed to <br/>
<a id="pl.277.25"></a><var>277.25</var>be mandatory as applied to any city whose estimated market value exceeds $2,100 per <br/>
<a id="pl.277.26"></a><var>277.26</var>capita of its population.<br/>
<br/>
<a id="bill.12.21.0"></a><a id="pl.277.27"></a><var>277.27</var>    Sec. 21. Minnesota Statutes 2012, section 163.06, subdivision 6, is amended to read:<br/>
<a id="pl.277.28"></a><var>277.28</var>    Subd. 6. <b>Expenditure in certain counties.</b> In any county having not less than 95 <br/>
<a id="pl.277.29"></a><var>277.29</var>nor more than 105 full and fractional townships, and having a an estimated market value <br/>
<a id="pl.277.30"></a><var>277.30</var>of not less than $12,000,000 nor more than $21,000,000, exclusive of money and credits,<br/>
<a id="pl.277.31"></a><var>277.31</var> the county board, by resolution, may expend the funds provided in subdivision 4 in any <br/>
<a id="pl.277.32"></a><var>277.32</var>organized or unorganized township or portion thereof in such county.<br/>
<br/>
<a id="bill.12.22.0"></a><a id="pl.277.33"></a><var>277.33</var>    Sec. 22. Minnesota Statutes 2012, section 165.10, subdivision 1, is amended to read:<br/>
<a id="pl.278.1"></a><var>278.1</var>    Subdivision 1. <b>Certain counties may issue and sell.</b> The county board of any <br/>
<a id="pl.278.2"></a><var>278.2</var>county having no outstanding road and bridge bonds may issue and sell county road bonds <br/>
<a id="pl.278.3"></a><var>278.3</var>in an amount not exceeding 0.12089 percent of the estimated market value of the taxable <br/>
<a id="pl.278.4"></a><var>278.4</var>property within the county exclusive of money and credits, for the purpose of constructing, <br/>
<a id="pl.278.5"></a><var>278.5</var>reconstructing, improving, or maintaining any bridge or bridges on any highway under its <br/>
<a id="pl.278.6"></a><var>278.6</var>jurisdiction, without submitting the matter to a vote of the electors of the county.<br/>
<br/>
<a id="bill.12.23.0"></a><a id="pl.278.7"></a><var>278.7</var>    Sec. 23. Minnesota Statutes 2012, section 272.03, is amended by adding a subdivision <br/>
<a id="pl.278.8"></a><var>278.8</var>to read:<br/>
<a id="pl.278.9"></a><var>278.9</var>    Subd. 14. <b>Estimated market value.</b> "Estimated market value" means the assessor's <br/>
<a id="pl.278.10"></a><var>278.10</var>determination of market value, including the effects of any orders made under section <br/>
<a id="pl.278.11"></a><var>278.11</var>270.12 or chapter 274, for the parcel. The provisions of section 273.032 apply for certain <br/>
<a id="pl.278.12"></a><var>278.12</var>uses in determining the total estimated market value for the taxing jurisdiction.<br/>
<br/>
<a id="bill.12.24.0"></a><a id="pl.278.13"></a><var>278.13</var>    Sec. 24. Minnesota Statutes 2012, section 272.03, is amended by adding a subdivision <br/>
<a id="pl.278.14"></a><var>278.14</var>to read:<br/>
<a id="pl.278.15"></a><var>278.15</var>    Subd. 15. <b>Taxable market value.</b> "Taxable market value" means estimated market <br/>
<a id="pl.278.16"></a><var>278.16</var>value for the parcel as reduced by market value exclusions, deferments of value, or other <br/>
<a id="pl.278.17"></a><var>278.17</var>adjustments required by law, that reduce market value before the application of class rates.<br/>
<br/>
<a id="bill.12.25.0"></a><a id="pl.278.18"></a><var>278.18</var>    Sec. 25. Minnesota Statutes 2012, section 273.032, is amended to read:<br/>
<a id="pl.278.19"></a><var>278.19</var><b>273.032 MARKET VALUE DEFINITION.</b><br/>
<a id="pl.278.20"></a><var>278.20</var>(a) Unless otherwise provided, for the purpose of determining any property tax <br/>
<a id="pl.278.21"></a><var>278.21</var>levy limitation based on market value or any limit on net debt, the issuance of bonds, <br/>
<a id="pl.278.22"></a><var>278.22</var>certificates of indebtedness, or capital notes based on market value, any qualification to <br/>
<a id="pl.278.23"></a><var>278.23</var>receive state aid based on market value, or any state aid amount based on market value, the <br/>
<a id="pl.278.24"></a><var>278.24</var>terms "market value," "taxable estimated market value," and "market valuation," whether <br/>
<a id="pl.278.25"></a><var>278.25</var>equalized or unequalized, mean the total taxable estimated market value of taxable property <br/>
<a id="pl.278.26"></a><var>278.26</var>within the local unit of government before any of the following or similar adjustments for:<br/>
<a id="pl.278.27"></a><var>278.27</var>(1) the market value exclusions under:<br/>
<a id="pl.278.28"></a><var>278.28</var>(i) section 273.11, subdivisions 14a and 14c (vacant platted land);<br/>
<a id="pl.278.29"></a><var>278.29</var>(ii) section 273.11, subdivision 16 (certain improvements to homestead property);<br/>
<a id="pl.278.30"></a><var>278.30</var>(iii) section 273.11, subdivisions 19 and 20 (certain improvements to business <br/>
<a id="pl.278.31"></a><var>278.31</var>properties);<br/>
<a id="pl.278.32"></a><var>278.32</var>(iv) section 273.11, subdivision 21 (homestead property damaged by mold);<br/>
<a id="pl.278.33"></a><var>278.33</var>(v) section 273.11, subdivision 22 (qualifying lead hazardous reduction projects);<br/>
<a id="pl.279.1"></a><var>279.1</var>(vi) section 273.13, subdivision 34 (homestead of a disabled veteran or family <br/>
<a id="pl.279.2"></a><var>279.2</var>caregiver);<br/>
<a id="pl.279.3"></a><var>279.3</var>(vii) section 273.13, subdivision 35 (homestead market value exclusion); or<br/>
<a id="pl.279.4"></a><var>279.4</var>(2) the deferment of value under:<br/>
<a id="pl.279.5"></a><var>279.5</var>(i) the Minnesota Agricultural Property Tax Law, section 273.111;<br/>
<a id="pl.279.6"></a><var>279.6</var>(ii) the Aggregate Resource Preservation Law, section 273.1115;<br/>
<a id="pl.279.7"></a><var>279.7</var>(iii) the Minnesota Open Space Property Tax Law, section 273.112;<br/>
<a id="pl.279.8"></a><var>279.8</var>(iv) the rural preserves property tax program, section 273.114; or<br/>
<a id="pl.279.9"></a><var>279.9</var>(v) the Metropolitan Agricultural Preserves Act, section 473H.10; or<br/>
<a id="pl.279.10"></a><var>279.10</var>(3) the adjustments to tax capacity for:<br/>
<a id="pl.279.11"></a><var>279.11</var>(i) tax increment, financing under sections 469.174 to 469.1794;<br/>
<a id="pl.279.12"></a><var>279.12</var>(ii) fiscal disparity, disparities under chapter 276A or 473F; or<br/>
<a id="pl.279.13"></a><var>279.13</var>(iii)  powerline credit, or wind energy values, but after the limited market adjustments <br/>
<a id="pl.279.14"></a><var>279.14</var>under section 
<statute_ref>273.11, subdivision 1a</statute_ref>, and after the market value exclusions of certain <br/>
<a id="pl.279.15"></a><var>279.15</var>improvements to homestead property under section 
<statute_ref>273.11, subdivision 16</statute_ref> under section <br/>
<a id="pl.279.16"></a><var>279.16</var>273.425.<br/>
<a id="pl.279.17"></a><var>279.17</var>(b) Estimated market value under paragraph (a) also includes the market value <br/>
<a id="pl.279.18"></a><var>279.18</var>of tax-exempt property if the applicable law specifically provides that the limitation, <br/>
<a id="pl.279.19"></a><var>279.19</var>qualification, or aid calculation includes tax-exempt property.<br/>
<a id="pl.279.20"></a><var>279.20</var>(c) Unless otherwise provided, "market value," "taxable estimated market value," <br/>
<a id="pl.279.21"></a><var>279.21</var>and "market valuation" for purposes of this paragraph property tax levy limitations and <br/>
<a id="pl.279.22"></a><var>279.22</var>calculation of state aid, refer to the taxable estimated market value for the previous <br/>
<a id="pl.279.23"></a><var>279.23</var>assessment year and for purposes of limits on net debt, the issuance of bonds, certificates of <br/>
<a id="pl.279.24"></a><var>279.24</var>indebtedness, or capital notes refer to the estimated market value as last finally equalized.<br/>
<a id="pl.279.25"></a><var>279.25</var>For the purpose of determining any net debt limit based on market value, or any limit <br/>
<a id="pl.279.26"></a><var>279.26</var>on the issuance of bonds, certificates of indebtedness, or capital notes based on market <br/>
<a id="pl.279.27"></a><var>279.27</var>value, the terms "market value," "taxable market value," and "market valuation," whether <br/>
<a id="pl.279.28"></a><var>279.28</var>equalized or unequalized, mean the total taxable market value of property within the local <br/>
<a id="pl.279.29"></a><var>279.29</var>unit of government before any adjustments for tax increment, fiscal disparity, powerline <br/>
<a id="pl.279.30"></a><var>279.30</var>credit, or wind energy values, but after the limited market value adjustments under section <br/>
<a id="pl.279.31"></a><var>279.31</var><statute_ref>273.11</statute_ref>, subdivision 1a, and after the market value exclusions of certain improvements to <br/>
<a id="pl.279.32"></a><var>279.32</var>homestead property under section 
<statute_ref>273.11</statute_ref>, subdivision 16. Unless otherwise provided, <br/>
<a id="pl.279.33"></a><var>279.33</var>"market value," "taxable market value," and "market valuation" for purposes of this <br/>
<a id="pl.279.34"></a><var>279.34</var>paragraph, mean the taxable market value as last finally equalized.<br/>
<a id="pl.279.35"></a><var>279.35</var>(d) For purposes of a provision of a home rule charter or of any special law that is not <br/>
<a id="pl.279.36"></a><var>279.36</var>codified in the statutes and that imposes a levy limitation based on market value or any limit <br/>
<a id="pl.280.1"></a><var>280.1</var>on debt, the issuance of bonds, certificates of indebtedness, or capital notes based on market <br/>
<a id="pl.280.2"></a><var>280.2</var>value, the terms "market value," "taxable market value," and "market valuation," whether <br/>
<a id="pl.280.3"></a><var>280.3</var>equalized or unequalized, mean "estimated market value" as defined in paragraph (a).<br/>
<br/>
<a id="bill.12.26.0"></a><a id="pl.280.4"></a><var>280.4</var>    Sec. 26. Minnesota Statutes 2012, section 273.11, subdivision 1, is amended to read:<br/>
<a id="pl.280.5"></a><var>280.5</var>    Subdivision 1. <b>Generally.</b> Except as provided in this section or section 
         <statute_ref>273.17, <br/>
<a id="pl.280.6"></a><var>280.6</var>subdivision 1
         </statute_ref>, all property shall be valued at its market value. The market value as <br/>
<a id="pl.280.7"></a><var>280.7</var>determined pursuant to this section shall be stated such that any amount under $100 is <br/>
<a id="pl.280.8"></a><var>280.8</var>rounded up to $100 and any amount exceeding $100 shall be rounded to the nearest $100. <br/>
<a id="pl.280.9"></a><var>280.9</var>In estimating and determining such value, the assessor shall not adopt a lower or different <br/>
<a id="pl.280.10"></a><var>280.10</var>standard of value because the same is to serve as a basis of taxation, nor shall the assessor <br/>
<a id="pl.280.11"></a><var>280.11</var>adopt as a criterion of value the price for which such property would sell at a forced sale, <br/>
<a id="pl.280.12"></a><var>280.12</var>or in the aggregate with all the property in the town or district; but the assessor shall value <br/>
<a id="pl.280.13"></a><var>280.13</var>each article or description of property by itself, and at such sum or price as the assessor <br/>
<a id="pl.280.14"></a><var>280.14</var>believes the same to be fairly worth in money. The assessor shall take into account the <br/>
<a id="pl.280.15"></a><var>280.15</var>effect on the market value of property of environmental factors in the vicinity of the <br/>
<a id="pl.280.16"></a><var>280.16</var>property. In assessing any tract or lot of real property, the value of the land, exclusive of <br/>
<a id="pl.280.17"></a><var>280.17</var>structures and improvements, shall be determined, and also the value of all structures and <br/>
<a id="pl.280.18"></a><var>280.18</var>improvements thereon, and the aggregate value of the property, including all structures <br/>
<a id="pl.280.19"></a><var>280.19</var>and improvements, excluding the value of crops growing upon cultivated land. In valuing <br/>
<a id="pl.280.20"></a><var>280.20</var>real property upon which there is a mine or quarry, it shall be valued at such price as such <br/>
<a id="pl.280.21"></a><var>280.21</var>property, including the mine or quarry, would sell for at a fair, voluntary sale, for cash, <br/>
<a id="pl.280.22"></a><var>280.22</var>if the material being mined or quarried is not subject to taxation under section 
         <statute_ref>298.015</statute_ref> <br/>
<a id="pl.280.23"></a><var>280.23</var>and the mine or quarry is not exempt from the general property tax under section 
         <statute_ref>298.25</statute_ref>. <br/>
<a id="pl.280.24"></a><var>280.24</var>In valuing real property which is vacant, platted property shall be assessed as provided <br/>
<a id="pl.280.25"></a><var>280.25</var>in subdivision 14 subdivisions 14a and 14c. All property, or the use thereof, which is <br/>
<a id="pl.280.26"></a><var>280.26</var>taxable under section 
         <statute_ref>272.01, subdivision 2</statute_ref>, or 
         <statute_ref>273.19</statute_ref>, shall be valued at the market <br/>
<a id="pl.280.27"></a><var>280.27</var>value of such property and not at the value of a leasehold estate in such property, or at <br/>
<a id="pl.280.28"></a><var>280.28</var>some lesser value than its market value.<br/>
<br/>
<a id="bill.12.27.0"></a><a id="pl.280.29"></a><var>280.29</var>    Sec. 27. Minnesota Statutes 2012, section 273.124, subdivision 3a, is amended to read:<br/>
<a id="pl.280.30"></a><var>280.30</var>    Subd. 3a. <b>Manufactured home park cooperative.</b> (a) When a manufactured home <br/>
<a id="pl.280.31"></a><var>280.31</var>park is owned by a corporation or association organized under chapter 308A or 308B, <br/>
<a id="pl.280.32"></a><var>280.32</var>and each person who owns a share or shares in the corporation or association is entitled <br/>
<a id="pl.280.33"></a><var>280.33</var>to occupy a lot within the park, the corporation or association may claim homestead <br/>
<a id="pl.281.1"></a><var>281.1</var>treatment for the park. Each lot must be designated by legal description or number, and <br/>
<a id="pl.281.2"></a><var>281.2</var>each lot is limited to not more than one-half acre of land.<br/>
<a id="pl.281.3"></a><var>281.3</var>(b) The manufactured home park shall be entitled to homestead treatment if all <br/>
<a id="pl.281.4"></a><var>281.4</var>of the following criteria are met:<br/>
<a id="pl.281.5"></a><var>281.5</var>(1) the occupant or the cooperative corporation or association is paying the ad <br/>
<a id="pl.281.6"></a><var>281.6</var>valorem property taxes and any special assessments levied against the land and structure <br/>
<a id="pl.281.7"></a><var>281.7</var>either directly, or indirectly through dues to the corporation or association; and<br/>
<a id="pl.281.8"></a><var>281.8</var>(2) the corporation or association organized under chapter 308A or 308B is wholly <br/>
<a id="pl.281.9"></a><var>281.9</var>owned by persons having a right to occupy a lot owned by the corporation or association.<br/>
<a id="pl.281.10"></a><var>281.10</var>(c) A charitable corporation, organized under the laws of Minnesota with no <br/>
<a id="pl.281.11"></a><var>281.11</var>outstanding stock, and granted a ruling by the Internal Revenue Service for 501(c)(3) <br/>
<a id="pl.281.12"></a><var>281.12</var>tax-exempt status, qualifies for homestead treatment with respect to a manufactured home <br/>
<a id="pl.281.13"></a><var>281.13</var>park if its members hold residential participation warrants entitling them to occupy a lot <br/>
<a id="pl.281.14"></a><var>281.14</var>in the manufactured home park.<br/>
<a id="pl.281.15"></a><var>281.15</var>(d) "Homestead treatment" under this subdivision means the class rate provided for <br/>
<a id="pl.281.16"></a><var>281.16</var>class 4c property classified under section 
         <statute_ref>273.13, subdivision 25</statute_ref>, paragraph (d), clause (5), <br/>
<a id="pl.281.17"></a><var>281.17</var>item (ii). The homestead market value credit exclusion under section 
         <statute_ref>273.1384</statute_ref> 273.13, <br/>
<a id="pl.281.18"></a><var>281.18</var>subdivision 35, does not apply and the property taxes assessed against the park shall not <br/>
<a id="pl.281.19"></a><var>281.19</var>be included in the determination of taxes payable for rent paid under section 
         <statute_ref>290A.03</statute_ref>.<br/>
<a id="pl.281.20"></a><var>281.20</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2013 and <br/>
<a id="pl.281.21"></a><var>281.21</var>thereafter.<br/>
<br/>
<a id="bill.12.28.0"></a><a id="pl.281.22"></a><var>281.22</var>    Sec. 28. Minnesota Statutes 2012, section 273.124, subdivision 13, is amended to read:<br/>
<a id="pl.281.23"></a><var>281.23</var>    Subd. 13. <b>Homestead application.</b> (a) A person who meets the homestead <br/>
<a id="pl.281.24"></a><var>281.24</var>requirements under subdivision 1 must file a homestead application with the county <br/>
<a id="pl.281.25"></a><var>281.25</var>assessor to initially obtain homestead classification.<br/>
<a id="pl.281.26"></a><var>281.26</var>    (b) The format and contents of a uniform homestead application shall be prescribed <br/>
<a id="pl.281.27"></a><var>281.27</var>by the commissioner of revenue. The application must clearly inform the taxpayer that <br/>
<a id="pl.281.28"></a><var>281.28</var>this application must be signed by all owners who occupy the property or by the qualifying <br/>
<a id="pl.281.29"></a><var>281.29</var>relative and returned to the county assessor in order for the property to receive homestead <br/>
<a id="pl.281.30"></a><var>281.30</var>treatment.<br/>
<a id="pl.281.31"></a><var>281.31</var>    (c) Every property owner applying for homestead classification must furnish to the <br/>
<a id="pl.281.32"></a><var>281.32</var>county assessor the Social Security number of each occupant who is listed as an owner <br/>
<a id="pl.281.33"></a><var>281.33</var>of the property on the deed of record, the name and address of each owner who does not <br/>
<a id="pl.281.34"></a><var>281.34</var>occupy the property, and the name and Social Security number of each owner's spouse who <br/>
<a id="pl.281.35"></a><var>281.35</var>occupies the property. The application must be signed by each owner who occupies the <br/>
<a id="pl.282.1"></a><var>282.1</var>property and by each owner's spouse who occupies the property, or, in the case of property <br/>
<a id="pl.282.2"></a><var>282.2</var>that qualifies as a homestead under subdivision 1, paragraph (c), by the qualifying relative.<br/>
<a id="pl.282.3"></a><var>282.3</var>    If a property owner occupies a homestead, the property owner's spouse may not <br/>
<a id="pl.282.4"></a><var>282.4</var>claim another property as a homestead unless the property owner and the property owner's <br/>
<a id="pl.282.5"></a><var>282.5</var>spouse file with the assessor an affidavit or other proof required by the assessor stating that <br/>
<a id="pl.282.6"></a><var>282.6</var>the property qualifies as a homestead under subdivision 1, paragraph (e).<br/>
<a id="pl.282.7"></a><var>282.7</var>    Owners or spouses occupying residences owned by their spouses and previously <br/>
<a id="pl.282.8"></a><var>282.8</var>occupied with the other spouse, either of whom fail to include the other spouse's name <br/>
<a id="pl.282.9"></a><var>282.9</var>and Social Security number on the homestead application or provide the affidavits or <br/>
<a id="pl.282.10"></a><var>282.10</var>other proof requested, will be deemed to have elected to receive only partial homestead <br/>
<a id="pl.282.11"></a><var>282.11</var>treatment of their residence. The remainder of the residence will be classified as <br/>
<a id="pl.282.12"></a><var>282.12</var>nonhomestead residential. When an owner or spouse's name and Social Security number <br/>
<a id="pl.282.13"></a><var>282.13</var>appear on homestead applications for two separate residences and only one application is <br/>
<a id="pl.282.14"></a><var>282.14</var>signed, the owner or spouse will be deemed to have elected to homestead the residence for <br/>
<a id="pl.282.15"></a><var>282.15</var>which the application was signed.<br/>
<a id="pl.282.16"></a><var>282.16</var>    The Social Security numbers, state or federal tax returns or tax return information, <br/>
<a id="pl.282.17"></a><var>282.17</var>including the federal income tax schedule F required by this section, or affidavits or other <br/>
<a id="pl.282.18"></a><var>282.18</var>proofs of the property owners and spouses submitted under this or another section to <br/>
<a id="pl.282.19"></a><var>282.19</var>support a claim for a property tax homestead classification are private data on individuals as <br/>
<a id="pl.282.20"></a><var>282.20</var>defined by section 
         <statute_ref>13.02, subdivision 12</statute_ref>, but, notwithstanding that section, the private data <br/>
<a id="pl.282.21"></a><var>282.21</var>may be disclosed to the commissioner of revenue, or, for purposes of proceeding under the <br/>
<a id="pl.282.22"></a><var>282.22</var>Revenue Recapture Act to recover personal property taxes owing, to the county treasurer.<br/>
<a id="pl.282.23"></a><var>282.23</var>    (d) If residential real estate is occupied and used for purposes of a homestead by a <br/>
<a id="pl.282.24"></a><var>282.24</var>relative of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in <br/>
<a id="pl.282.25"></a><var>282.25</var>order for the property to receive homestead status, a homestead application must be filed <br/>
<a id="pl.282.26"></a><var>282.26</var>with the assessor. The Social Security number of each relative and spouse of a relative <br/>
<a id="pl.282.27"></a><var>282.27</var>occupying the property shall be required on the homestead application filed under this <br/>
<a id="pl.282.28"></a><var>282.28</var>subdivision. If a different relative of the owner subsequently occupies the property, the <br/>
<a id="pl.282.29"></a><var>282.29</var>owner of the property must notify the assessor within 30 days of the change in occupancy. <br/>
<a id="pl.282.30"></a><var>282.30</var>The Social Security number of a relative or relative's spouse occupying the property <br/>
<a id="pl.282.31"></a><var>282.31</var>is private data on individuals as defined by section 
         <statute_ref>13.02, subdivision 12</statute_ref>, but may be <br/>
<a id="pl.282.32"></a><var>282.32</var>disclosed to the commissioner of revenue, or, for the purposes of proceeding under the <br/>
<a id="pl.282.33"></a><var>282.33</var>Revenue Recapture Act to recover personal property taxes owing, to the county treasurer.<br/>
<a id="pl.282.34"></a><var>282.34</var>    (e) The homestead application shall also notify the property owners that the <br/>
<a id="pl.282.35"></a><var>282.35</var>application filed under this section will not be mailed annually and that if the property <br/>
<a id="pl.282.36"></a><var>282.36</var>is granted homestead status for any assessment year, that same property shall remain <br/>
<a id="pl.283.1"></a><var>283.1</var>classified as homestead until the property is sold or transferred to another person, or <br/>
<a id="pl.283.2"></a><var>283.2</var>the owners, the spouse of the owner, or the relatives no longer use the property as their <br/>
<a id="pl.283.3"></a><var>283.3</var>homestead. Upon the sale or transfer of the homestead property, a certificate of value must <br/>
<a id="pl.283.4"></a><var>283.4</var>be timely filed with the county auditor as provided under section 
         <statute_ref>272.115</statute_ref>. Failure to <br/>
<a id="pl.283.5"></a><var>283.5</var>notify the assessor within 30 days that the property has been sold, transferred, or that the <br/>
<a id="pl.283.6"></a><var>283.6</var>owner, the spouse of the owner, or the relative is no longer occupying the property as a <br/>
<a id="pl.283.7"></a><var>283.7</var>homestead, shall result in the penalty provided under this subdivision and the property <br/>
<a id="pl.283.8"></a><var>283.8</var>will lose its current homestead status.<br/>
<a id="pl.283.9"></a><var>283.9</var>    (f) If the homestead application is not returned within 30 days, the county will send a <br/>
<a id="pl.283.10"></a><var>283.10</var>second application to the present owners of record. The notice of proposed property taxes <br/>
<a id="pl.283.11"></a><var>283.11</var>prepared under section 
         <statute_ref>275.065, subdivision 3</statute_ref>, shall reflect the property's classification. If <br/>
<a id="pl.283.12"></a><var>283.12</var>a homestead application has not been filed with the county by December 15, the assessor <br/>
<a id="pl.283.13"></a><var>283.13</var>shall classify the property as nonhomestead for the current assessment year for taxes <br/>
<a id="pl.283.14"></a><var>283.14</var>payable in the following year, provided that the owner may be entitled to receive the <br/>
<a id="pl.283.15"></a><var>283.15</var>homestead classification by proper application under section 
         <statute_ref>375.192</statute_ref>.<br/>
<a id="pl.283.16"></a><var>283.16</var>    (g) At the request of the commissioner, each county must give the commissioner a <br/>
<a id="pl.283.17"></a><var>283.17</var>list that includes the name and Social Security number of each occupant of homestead <br/>
<a id="pl.283.18"></a><var>283.18</var>property who is the property owner, property owner's spouse, qualifying relative of a <br/>
<a id="pl.283.19"></a><var>283.19</var>property owner, or a spouse of a qualifying relative. The commissioner shall use the <br/>
<a id="pl.283.20"></a><var>283.20</var>information provided on the lists as appropriate under the law, including for the detection <br/>
<a id="pl.283.21"></a><var>283.21</var>of improper claims by owners, or relatives of owners, under chapter 290A.<br/>
<a id="pl.283.22"></a><var>283.22</var>    (h) If the commissioner finds that a property owner may be claiming a fraudulent <br/>
<a id="pl.283.23"></a><var>283.23</var>homestead, the commissioner shall notify the appropriate counties. Within 90 days of <br/>
<a id="pl.283.24"></a><var>283.24</var>the notification, the county assessor shall investigate to determine if the homestead <br/>
<a id="pl.283.25"></a><var>283.25</var>classification was properly claimed. If the property owner does not qualify, the county <br/>
<a id="pl.283.26"></a><var>283.26</var>assessor shall notify the county auditor who will determine the amount of homestead <br/>
<a id="pl.283.27"></a><var>283.27</var>benefits that had been improperly allowed. For the purpose of this section, "homestead <br/>
<a id="pl.283.28"></a><var>283.28</var>benefits" means the tax reduction resulting from the classification as a homestead and the <br/>
<a id="pl.283.29"></a><var>283.29</var>homestead market value exclusion under section 
         <statute_ref>273.13</statute_ref>, the taconite homestead credit <br/>
<a id="pl.283.30"></a><var>283.30</var>under section 
         <statute_ref>273.135</statute_ref>, the residential homestead and agricultural homestead credits credit<br/>
<a id="pl.283.31"></a><var>283.31</var> under section 
         <statute_ref>273.1384</statute_ref>, and the supplemental homestead credit under section 
         <statute_ref>273.1391</statute_ref>.<br/>
<a id="pl.283.32"></a><var>283.32</var>    The county auditor shall send a notice to the person who owned the affected property <br/>
<a id="pl.283.33"></a><var>283.33</var>at the time the homestead application related to the improper homestead was filed, <br/>
<a id="pl.283.34"></a><var>283.34</var>demanding reimbursement of the homestead benefits plus a penalty equal to 100 percent <br/>
<a id="pl.283.35"></a><var>283.35</var>of the homestead benefits. The person notified may appeal the county's determination <br/>
<a id="pl.283.36"></a><var>283.36</var>by serving copies of a petition for review with county officials as provided in section <br/>
<statute_ref><a id="pl.284.1"></a><var>284.1</var>278.01
         </statute_ref> and filing proof of service as provided in section 
         <statute_ref>278.01</statute_ref> with the Minnesota Tax <br/>
<a id="pl.284.2"></a><var>284.2</var>Court within 60 days of the date of the notice from the county. Procedurally, the appeal <br/>
<a id="pl.284.3"></a><var>284.3</var>is governed by the provisions in chapter 271 which apply to the appeal of a property tax <br/>
<a id="pl.284.4"></a><var>284.4</var>assessment or levy, but without requiring any prepayment of the amount in controversy. If <br/>
<a id="pl.284.5"></a><var>284.5</var>the amount of homestead benefits and penalty is not paid within 60 days, and if no appeal <br/>
<a id="pl.284.6"></a><var>284.6</var>has been filed, the county auditor shall certify the amount of taxes and penalty to the county <br/>
<a id="pl.284.7"></a><var>284.7</var>treasurer. The county treasurer will add interest to the unpaid homestead benefits and <br/>
<a id="pl.284.8"></a><var>284.8</var>penalty amounts at the rate provided in section 
         <statute_ref>279.03</statute_ref> for real property taxes becoming <br/>
<a id="pl.284.9"></a><var>284.9</var>delinquent in the calendar year during which the amount remains unpaid. Interest may be <br/>
<a id="pl.284.10"></a><var>284.10</var>assessed for the period beginning 60 days after demand for payment was made.<br/>
<a id="pl.284.11"></a><var>284.11</var>    If the person notified is the current owner of the property, the treasurer may add the <br/>
<a id="pl.284.12"></a><var>284.12</var>total amount of homestead benefits, penalty, interest, and costs to the ad valorem taxes <br/>
<a id="pl.284.13"></a><var>284.13</var>otherwise payable on the property by including the amounts on the property tax statements <br/>
<a id="pl.284.14"></a><var>284.14</var>under section 
         <statute_ref>276.04, subdivision 3</statute_ref>. The amounts added under this paragraph to the ad <br/>
<a id="pl.284.15"></a><var>284.15</var>valorem taxes shall include interest accrued through December 31 of the year preceding <br/>
<a id="pl.284.16"></a><var>284.16</var>the taxes payable year for which the amounts are first added. These amounts, when added <br/>
<a id="pl.284.17"></a><var>284.17</var>to the property tax statement, become subject to all the laws for the enforcement of real or <br/>
<a id="pl.284.18"></a><var>284.18</var>personal property taxes for that year, and for any subsequent year.<br/>
<a id="pl.284.19"></a><var>284.19</var>    If the person notified is not the current owner of the property, the treasurer may <br/>
<a id="pl.284.20"></a><var>284.20</var>collect the amounts due under the Revenue Recapture Act in chapter 270A, or use any of <br/>
<a id="pl.284.21"></a><var>284.21</var>the powers granted in sections 
         <statute_ref>277.20</statute_ref> and 
         <statute_ref>277.21</statute_ref> without exclusion, to enforce payment <br/>
<a id="pl.284.22"></a><var>284.22</var>of the homestead benefits, penalty, interest, and costs, as if those amounts were delinquent <br/>
<a id="pl.284.23"></a><var>284.23</var>tax obligations of the person who owned the property at the time the application related to <br/>
<a id="pl.284.24"></a><var>284.24</var>the improperly allowed homestead was filed. The treasurer may relieve a prior owner of <br/>
<a id="pl.284.25"></a><var>284.25</var>personal liability for the homestead benefits, penalty, interest, and costs, and instead extend <br/>
<a id="pl.284.26"></a><var>284.26</var>those amounts on the tax lists against the property as provided in this paragraph to the extent <br/>
<a id="pl.284.27"></a><var>284.27</var>that the current owner agrees in writing. On all demands, billings, property tax statements, <br/>
<a id="pl.284.28"></a><var>284.28</var>and related correspondence, the county must list and state separately the amounts of <br/>
<a id="pl.284.29"></a><var>284.29</var>homestead benefits, penalty, interest and costs being demanded, billed or assessed.<br/>
<a id="pl.284.30"></a><var>284.30</var>    (i) Any amount of homestead benefits recovered by the county from the property <br/>
<a id="pl.284.31"></a><var>284.31</var>owner shall be distributed to the county, city or town, and school district where the <br/>
<a id="pl.284.32"></a><var>284.32</var>property is located in the same proportion that each taxing district's levy was to the total <br/>
<a id="pl.284.33"></a><var>284.33</var>of the three taxing districts' levy for the current year. Any amount recovered attributable <br/>
<a id="pl.284.34"></a><var>284.34</var>to taconite homestead credit shall be transmitted to the St. Louis County auditor to be <br/>
<a id="pl.284.35"></a><var>284.35</var>deposited in the taconite property tax relief account. Any amount recovered that is <br/>
<a id="pl.284.36"></a><var>284.36</var>attributable to supplemental homestead credit is to be transmitted to the commissioner of <br/>
<a id="pl.285.1"></a><var>285.1</var>revenue for deposit in the general fund of the state treasury. The total amount of penalty <br/>
<a id="pl.285.2"></a><var>285.2</var>collected must be deposited in the county general fund.<br/>
<a id="pl.285.3"></a><var>285.3</var>    (j) If a property owner has applied for more than one homestead and the county <br/>
<a id="pl.285.4"></a><var>285.4</var>assessors cannot determine which property should be classified as homestead, the county <br/>
<a id="pl.285.5"></a><var>285.5</var>assessors will refer the information to the commissioner. The commissioner shall make <br/>
<a id="pl.285.6"></a><var>285.6</var>the determination and notify the counties within 60 days.<br/>
<a id="pl.285.7"></a><var>285.7</var>    (k) In addition to lists of homestead properties, the commissioner may ask the <br/>
<a id="pl.285.8"></a><var>285.8</var>counties to furnish lists of all properties and the record owners. The Social Security <br/>
<a id="pl.285.9"></a><var>285.9</var>numbers and federal identification numbers that are maintained by a county or city <br/>
<a id="pl.285.10"></a><var>285.10</var>assessor for property tax administration purposes, and that may appear on the lists retain <br/>
<a id="pl.285.11"></a><var>285.11</var>their classification as private or nonpublic data; but may be viewed, accessed, and used by <br/>
<a id="pl.285.12"></a><var>285.12</var>the county auditor or treasurer of the same county for the limited purpose of assisting the <br/>
<a id="pl.285.13"></a><var>285.13</var>commissioner in the preparation of microdata samples under section 
         <statute_ref>270C.12</statute_ref>.<br/>
<a id="pl.285.14"></a><var>285.14</var>    (l) On or before April 30 each year beginning in 2007, each county must provide the <br/>
<a id="pl.285.15"></a><var>285.15</var>commissioner with the following data for each parcel of homestead property by electronic <br/>
<a id="pl.285.16"></a><var>285.16</var>means as defined in section 
         <statute_ref>289A.02, subdivision 8</statute_ref>:<br/>
<a id="pl.285.17"></a><var>285.17</var>    (i) the property identification number assigned to the parcel for purposes of taxes <br/>
<a id="pl.285.18"></a><var>285.18</var>payable in the current year;<br/>
<a id="pl.285.19"></a><var>285.19</var>    (ii) the name and Social Security number of each occupant of homestead property <br/>
<a id="pl.285.20"></a><var>285.20</var>who is the property owner, property owner's spouse, qualifying relative of a property <br/>
<a id="pl.285.21"></a><var>285.21</var>owner, or spouse of a qualifying relative;<br/>
<a id="pl.285.22"></a><var>285.22</var>    (iii) the classification of the property under section 
         <statute_ref>273.13</statute_ref> for taxes payable in the <br/>
<a id="pl.285.23"></a><var>285.23</var>current year and in the prior year;<br/>
<a id="pl.285.24"></a><var>285.24</var>    (iv) an indication of whether the property was classified as a homestead for taxes <br/>
<a id="pl.285.25"></a><var>285.25</var>payable in the current year because of occupancy by a relative of the owner or by a <br/>
<a id="pl.285.26"></a><var>285.26</var>spouse of a relative;<br/>
<a id="pl.285.27"></a><var>285.27</var>    (v) the property taxes payable as defined in section 
         <statute_ref>290A.03, subdivision 13</statute_ref>, for the <br/>
<a id="pl.285.28"></a><var>285.28</var>current year and the prior year;<br/>
<a id="pl.285.29"></a><var>285.29</var>    (vi) the market value of improvements to the property first assessed for tax purposes <br/>
<a id="pl.285.30"></a><var>285.30</var>for taxes payable in the current year;<br/>
<a id="pl.285.31"></a><var>285.31</var>    (vii) the assessor's estimated market value assigned to the property for taxes payable <br/>
<a id="pl.285.32"></a><var>285.32</var>in the current year and the prior year;<br/>
<a id="pl.285.33"></a><var>285.33</var>    (viii) the taxable market value assigned to the property for taxes payable in the <br/>
<a id="pl.285.34"></a><var>285.34</var>current year and the prior year;<br/>
<a id="pl.285.35"></a><var>285.35</var>    (ix) whether there are delinquent property taxes owing on the homestead;<br/>
<a id="pl.285.36"></a><var>285.36</var>    (x) the unique taxing district in which the property is located; and<br/>
<a id="pl.286.1"></a><var>286.1</var>    (xi) such other information as the commissioner decides is necessary.<br/>
<a id="pl.286.2"></a><var>286.2</var>    The commissioner shall use the information provided on the lists as appropriate <br/>
<a id="pl.286.3"></a><var>286.3</var>under the law, including for the detection of improper claims by owners, or relatives <br/>
<a id="pl.286.4"></a><var>286.4</var>of owners, under chapter 290A.<br/>
<a id="pl.286.5"></a><var>286.5</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2013 and <br/>
<a id="pl.286.6"></a><var>286.6</var>thereafter.<br/>
<br/>
<a id="bill.12.29.0"></a><a id="pl.286.7"></a><var>286.7</var>    Sec. 29. Minnesota Statutes 2012, section 273.13, subdivision 21b, is amended to read:<br/>
<a id="pl.286.8"></a><var>286.8</var>    Subd. 21b. <b>Net </b><b>tax capacity.</b> (a) Gross tax capacity means the product of the <br/>
<a id="pl.286.9"></a><var>286.9</var>appropriate gross class rates in this section and market values.<br/>
<a id="pl.286.10"></a><var>286.10</var>(b) Net tax capacity means the product of the appropriate net class rates in this <br/>
<a id="pl.286.11"></a><var>286.11</var>section and taxable market values.<br/>
<a id="pl.286.12"></a><var>286.12</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.12.30.0"></a><a id="pl.286.13"></a><var>286.13</var>    Sec. 30. Minnesota Statutes 2012, section 273.1398, subdivision 3, is amended to read:<br/>
<a id="pl.286.14"></a><var>286.14</var>    Subd. 3. <b>Disparity reduction aid.</b>  The amount of disparity aid certified for each <br/>
<a id="pl.286.15"></a><var>286.15</var>taxing district within each unique taxing jurisdiction for taxes payable in the prior year <br/>
<a id="pl.286.16"></a><var>286.16</var>shall be multiplied by the ratio of (1) the jurisdiction's tax capacity using the class rates for <br/>
<a id="pl.286.17"></a><var>286.17</var>taxes payable in the year for which aid is being computed, to (2) its tax capacity using <br/>
<a id="pl.286.18"></a><var>286.18</var>the class rates for taxes payable in the year prior to that for which aid is being computed, <br/>
<a id="pl.286.19"></a><var>286.19</var>both based upon taxable market values for taxes payable in the year prior to that for which <br/>
<a id="pl.286.20"></a><var>286.20</var>aid is being computed. If the commissioner determines that insufficient information is <br/>
<a id="pl.286.21"></a><var>286.21</var>available to reasonably and timely calculate the numerator in this ratio for the first taxes <br/>
<a id="pl.286.22"></a><var>286.22</var>payable year that a class rate change or new class rate is effective, the commissioner shall <br/>
<a id="pl.286.23"></a><var>286.23</var>omit the effects of that class rate change or new class rate when calculating this ratio for <br/>
<a id="pl.286.24"></a><var>286.24</var>aid payable in that taxes payable year. For aid payable in the year following a year for <br/>
<a id="pl.286.25"></a><var>286.25</var>which such omission was made, the commissioner shall use in the denominator for the <br/>
<a id="pl.286.26"></a><var>286.26</var>class that was changed or created, the tax capacity for taxes payable two years prior to that <br/>
<a id="pl.286.27"></a><var>286.27</var>in which the aid is payable, based on taxable market values for taxes payable in the year <br/>
<a id="pl.286.28"></a><var>286.28</var>prior to that for which aid is being computed.<br/>
<br/>
<a id="bill.12.31.0"></a><a id="pl.286.29"></a><var>286.29</var>    Sec. 31. Minnesota Statutes 2012, section 273.1398, subdivision 4, is amended to read:<br/>
<a id="pl.286.30"></a><var>286.30</var>    Subd. 4. <b>Disparity reduction credit.</b> (a) Beginning with taxes payable in 1989, <br/>
<a id="pl.286.31"></a><var>286.31</var>class 4a and class 3a property qualifies for a disparity reduction credit if: (1) the property <br/>
<a id="pl.286.32"></a><var>286.32</var>is located in a border city that has an enterprise zone, as defined in section 
         <statute_ref>469.166</statute_ref>; (2) <br/>
<a id="pl.287.1"></a><var>287.1</var>the property is located in a city with a population greater than 2,500 and less than 35,000 <br/>
<a id="pl.287.2"></a><var>287.2</var>according to the 1980 decennial census; (3) the city is adjacent to a city in another state or <br/>
<a id="pl.287.3"></a><var>287.3</var>immediately adjacent to a city adjacent to a city in another state; and (4) the adjacent city <br/>
<a id="pl.287.4"></a><var>287.4</var>in the other state has a population of greater than 5,000 and less than 75,000 according to <br/>
<a id="pl.287.5"></a><var>287.5</var>the 1980 decennial census.<br/>
<a id="pl.287.6"></a><var>287.6</var>    (b) The credit is an amount sufficient to reduce (i) the taxes levied on class 4a <br/>
<a id="pl.287.7"></a><var>287.7</var>property to 2.3 percent of the property's taxable market value and (ii) the tax on class 3a <br/>
<a id="pl.287.8"></a><var>287.8</var>property to 2.3 percent of taxable market value.<br/>
<a id="pl.287.9"></a><var>287.9</var>    (c) The county auditor shall annually certify the costs of the credits to the <br/>
<a id="pl.287.10"></a><var>287.10</var>Department of Revenue. The department shall reimburse local governments for the <br/>
<a id="pl.287.11"></a><var>287.11</var>property taxes forgone as the result of the credits in proportion to their total levies.<br/>
<br/>
<a id="bill.12.32.0"></a><a id="pl.287.12"></a><var>287.12</var>    Sec. 32. Minnesota Statutes 2012, section 275.011, subdivision 1, is amended to read:<br/>
<a id="pl.287.13"></a><var>287.13</var>    Subdivision 1. <b>Determination of levy limit.</b> The property tax levied for any <br/>
<a id="pl.287.14"></a><var>287.14</var>purpose under a special law that is not codified in Minnesota Statutes or a city charter <br/>
<a id="pl.287.15"></a><var>287.15</var>provision and that is subject to a mill rate limitation imposed by the special law or city <br/>
<a id="pl.287.16"></a><var>287.16</var>charter provision, excluding levies subject to mill rate limitations that use adjusted <br/>
<a id="pl.287.17"></a><var>287.17</var>assessed values determined by the commissioner of revenue under section 
         <statute_ref>124.2131</statute_ref>, must <br/>
<a id="pl.287.18"></a><var>287.18</var>not exceed the following amount for the years specified:<br/>
<a id="pl.287.19"></a><var>287.19</var>(a) for taxes payable in 1988, the product of the applicable mill rate limitation <br/>
<a id="pl.287.20"></a><var>287.20</var>imposed by special law or city charter provision multiplied by the total assessed valuation <br/>
<a id="pl.287.21"></a><var>287.21</var>of all taxable property subject to the tax as adjusted by the provisions of Minnesota <br/>
<a id="pl.287.22"></a><var>287.22</var>Statutes 1986, sections 
         <statute_ref>272.64</statute_ref>; 
         <statute_ref>273.13, subdivision 7a</statute_ref>; and 
         <statute_ref>275.49</statute_ref>;<br/>
<a id="pl.287.23"></a><var>287.23</var>(b) for taxes payable in 1989, the product of (1) the property tax levy limitation for <br/>
<a id="pl.287.24"></a><var>287.24</var>the taxes payable year 1988 determined under clause (a) multiplied by (2) an index for <br/>
<a id="pl.287.25"></a><var>287.25</var>market valuation changes equal to the assessment year 1988 total market valuation of all <br/>
<a id="pl.287.26"></a><var>287.26</var>taxable property subject to the tax divided by the assessment year 1987 total market <br/>
<a id="pl.287.27"></a><var>287.27</var>valuation of all taxable property subject to the tax; and<br/>
<a id="pl.287.28"></a><var>287.28</var>(c) for taxes payable in 1990 and subsequent years, the product of (1) the property <br/>
<a id="pl.287.29"></a><var>287.29</var>tax levy limitation for the previous year determined pursuant to this subdivision multiplied <br/>
<a id="pl.287.30"></a><var>287.30</var>by (2) an index for market valuation changes equal to the total market valuation of all <br/>
<a id="pl.287.31"></a><var>287.31</var>taxable property subject to the tax for the current assessment year divided by the total <br/>
<a id="pl.287.32"></a><var>287.32</var>market valuation of all taxable property subject to the tax for the previous assessment year.<br/>
<a id="pl.287.33"></a><var>287.33</var>For the purpose of determining the property tax levy limitation for the taxes payable <br/>
<a id="pl.287.34"></a><var>287.34</var>year 1988 2014 and subsequent years under this subdivision, "total market valuation" <br/>
<a id="pl.287.35"></a><var>287.35</var>means the total estimated market valuation value of all taxable property subject to the <br/>
<a id="pl.288.1"></a><var>288.1</var>tax without valuation adjustments for fiscal disparities (chapters 276A and 473F), tax <br/>
<a id="pl.288.2"></a><var>288.2</var>increment financing (sections 
<statute_ref>469.174</statute_ref> to 469.179), or powerline credit (section 273.425)<br/>
<a id="pl.288.3"></a><var>288.3</var> as provided under section 273.032.<br/>
<br/>
<a id="bill.12.33.0"></a><a id="pl.288.4"></a><var>288.4</var>    Sec. 33. Minnesota Statutes 2012, section 275.077, subdivision 2, is amended to read:<br/>
<a id="pl.288.5"></a><var>288.5</var>    Subd. 2. <b>Correction of levy amount.</b> The difference between the correct levy and <br/>
<a id="pl.288.6"></a><var>288.6</var>the erroneous levy shall be added to the township levy for the subsequent levy year; <br/>
<a id="pl.288.7"></a><var>288.7</var>provided that if the amount of the difference exceeds 0.12089 percent of taxable estimated<br/>
<a id="pl.288.8"></a><var>288.8</var> market value, the excess shall be added to the township levy for the second and later <br/>
<a id="pl.288.9"></a><var>288.9</var>subsequent levy years, not to exceed an additional levy of 0.12089 percent of taxable<br/>
<a id="pl.288.10"></a><var>288.10</var> estimated market value in any year, until the full amount of the difference has been levied. <br/>
<a id="pl.288.11"></a><var>288.11</var>The funds collected from the corrected levies shall be used to reimburse the county for the <br/>
<a id="pl.288.12"></a><var>288.12</var>payment required by subdivision 1.<br/>
<br/>
<a id="bill.12.34.0"></a><a id="pl.288.13"></a><var>288.13</var>    Sec. 34. Minnesota Statutes 2012, section 275.71, subdivision 4, is amended to read:<br/>
<a id="pl.288.14"></a><var>288.14</var>    Subd. 4. <b>Adjusted levy limit base.</b>  For taxes levied in 2008 through 2010, the <br/>
<a id="pl.288.15"></a><var>288.15</var>adjusted levy limit base is equal to the levy limit base computed under subdivision 2 <br/>
<a id="pl.288.16"></a><var>288.16</var>or section 
         <statute_ref>275.72</statute_ref>, multiplied by:<br/>
<a id="pl.288.17"></a><var>288.17</var>    (1) one plus the percentage growth in the implicit price deflator, but the percentage <br/>
<a id="pl.288.18"></a><var>288.18</var>shall not be less than zero or exceed 3.9 percent;<br/>
<a id="pl.288.19"></a><var>288.19</var>    (2) one plus a percentage equal to 50 percent of the percentage increase in the number <br/>
<a id="pl.288.20"></a><var>288.20</var>of households, if any, for the most recent 12-month period for which data is available; and<br/>
<a id="pl.288.21"></a><var>288.21</var>    (3) one plus a percentage equal to 50 percent of the percentage increase in the <br/>
<a id="pl.288.22"></a><var>288.22</var>taxable estimated market value of the jurisdiction due to new construction of class 3 <br/>
<a id="pl.288.23"></a><var>288.23</var>property, as defined in section 
         <statute_ref>273.13, subdivision 4</statute_ref>, except for state-assessed utility and <br/>
<a id="pl.288.24"></a><var>288.24</var>railroad property, for the most recent year for which data is available.<br/>
<br/>
<a id="bill.12.35.0"></a><a id="pl.288.25"></a><var>288.25</var>    Sec. 35. Minnesota Statutes 2012, section 276.04, subdivision 2, is amended to read:<br/>
<a id="pl.288.26"></a><var>288.26</var>    Subd. 2. <b>Contents of tax statements.</b> (a) The treasurer shall provide for the printing <br/>
<a id="pl.288.27"></a><var>288.27</var>of the tax statements. The commissioner of revenue shall prescribe the form of the property <br/>
<a id="pl.288.28"></a><var>288.28</var>tax statement and its contents. The tax statement must not state or imply that property tax <br/>
<a id="pl.288.29"></a><var>288.29</var>credits are paid by the state of Minnesota. The statement must contain a tabulated statement <br/>
<a id="pl.288.30"></a><var>288.30</var>of the dollar amount due to each taxing authority and the amount of the state tax from the <br/>
<a id="pl.288.31"></a><var>288.31</var>parcel of real property for which a particular tax statement is prepared. The dollar amounts <br/>
<a id="pl.288.32"></a><var>288.32</var>attributable to the county, the state tax, the voter approved school tax, the other local school <br/>
<a id="pl.288.33"></a><var>288.33</var>tax, the township or municipality, and the total of the metropolitan special taxing districts <br/>
<a id="pl.289.1"></a><var>289.1</var>as defined in section 
         <statute_ref>275.065, subdivision 3</statute_ref>, paragraph (i), must be separately stated. <br/>
<a id="pl.289.2"></a><var>289.2</var>The amounts due all other special taxing districts, if any, may be aggregated except that <br/>
<a id="pl.289.3"></a><var>289.3</var>any levies made by the regional rail authorities in the county of Anoka, Carver, Dakota, <br/>
<a id="pl.289.4"></a><var>289.4</var>Hennepin, Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate <br/>
<a id="pl.289.5"></a><var>289.5</var>line directly under the appropriate county's levy. If the county levy under this paragraph <br/>
<a id="pl.289.6"></a><var>289.6</var>includes an amount for a lake improvement district as defined under sections 
         <statute_ref>103B.501</statute_ref> <br/>
<a id="pl.289.7"></a><var>289.7</var>to 
         <statute_ref>103B.581</statute_ref>, the amount attributable for that purpose must be separately stated from the <br/>
<a id="pl.289.8"></a><var>289.8</var>remaining county levy amount. In the case of Ramsey County, if the county levy under this <br/>
<a id="pl.289.9"></a><var>289.9</var>paragraph includes an amount for public library service under section 
         <statute_ref>134.07</statute_ref>, the amount <br/>
<a id="pl.289.10"></a><var>289.10</var>attributable for that purpose may be separated from the remaining county levy amount. <br/>
<a id="pl.289.11"></a><var>289.11</var>The amount of the tax on homesteads qualifying under the senior citizens' property tax <br/>
<a id="pl.289.12"></a><var>289.12</var>deferral program under chapter 290B is the total amount of property tax before subtraction <br/>
<a id="pl.289.13"></a><var>289.13</var>of the deferred property tax amount. The amount of the tax on contamination value <br/>
<a id="pl.289.14"></a><var>289.14</var>imposed under sections 
         <statute_ref>270.91</statute_ref> to 
         <statute_ref>270.98</statute_ref>, if any, must also be separately stated. The dollar <br/>
<a id="pl.289.15"></a><var>289.15</var>amounts, including the dollar amount of any special assessments, may be rounded to the <br/>
<a id="pl.289.16"></a><var>289.16</var>nearest even whole dollar. For purposes of this section whole odd-numbered dollars may <br/>
<a id="pl.289.17"></a><var>289.17</var>be adjusted to the next higher even-numbered dollar. The amount of market value excluded <br/>
<a id="pl.289.18"></a><var>289.18</var>under section 
         <statute_ref>273.11, subdivision 16</statute_ref>, if any, must also be listed on the tax statement.<br/>
<a id="pl.289.19"></a><var>289.19</var>    (b) The property tax statements for manufactured homes and sectional structures <br/>
<a id="pl.289.20"></a><var>289.20</var>taxed as personal property shall contain the same information that is required on the <br/>
<a id="pl.289.21"></a><var>289.21</var>tax statements for real property.<br/>
<a id="pl.289.22"></a><var>289.22</var>    (c) Real and personal property tax statements must contain the following information <br/>
<a id="pl.289.23"></a><var>289.23</var>in the order given in this paragraph. The information must contain the current year tax <br/>
<a id="pl.289.24"></a><var>289.24</var>information in the right column with the corresponding information for the previous year <br/>
<a id="pl.289.25"></a><var>289.25</var>in a column on the left:<br/>
<a id="pl.289.26"></a><var>289.26</var>    (1) the property's estimated market value under section 
         <statute_ref>273.11, subdivision 1</statute_ref>;<br/>
<a id="pl.289.27"></a><var>289.27</var>(2) the property's homestead market value exclusion under section 
         <statute_ref>273.13</statute_ref>, <br/>
<a id="pl.289.28"></a><var>289.28</var>subdivision 35;<br/>
<a id="pl.289.29"></a><var>289.29</var>    (3) the property's taxable market value after reductions under sections 
<statute_ref>273.11</statute_ref>, <br/>
<a id="pl.289.30"></a><var>289.30</var>subdivisions 1a and 16, and 
<statute_ref>273.13, subdivision 35</statute_ref> section 272.03, subdivision 15;<br/>
<a id="pl.289.31"></a><var>289.31</var>    (4) the property's gross tax, before credits;<br/>
<a id="pl.289.32"></a><var>289.32</var>    (5) for homestead agricultural properties, the credit under section 
         <statute_ref>273.1384</statute_ref>;<br/>
<a id="pl.289.33"></a><var>289.33</var>    (6) any credits received under sections 
         <statute_ref>273.119</statute_ref>; 
         <statute_ref>273.1234</statute_ref> or 
         <statute_ref>273.1235</statute_ref>; 
         <statute_ref>273.135</statute_ref>; <br/>
<statute_ref><a id="pl.289.34"></a><var>289.34</var>273.1391
         </statute_ref>; 
         <statute_ref>273.1398, subdivision 4</statute_ref>; 
         <statute_ref>469.171</statute_ref>; and 
         <statute_ref>473H.10</statute_ref>, except that the amount of <br/>
<a id="pl.289.35"></a><var>289.35</var>credit received under section 
         <statute_ref>273.135</statute_ref> must be separately stated and identified as "taconite <br/>
<a id="pl.289.36"></a><var>289.36</var>tax relief"; and<br/>
<a id="pl.290.1"></a><var>290.1</var>    (7) the net tax payable in the manner required in paragraph (a).<br/>
<a id="pl.290.2"></a><var>290.2</var>    (d) If the county uses envelopes for mailing property tax statements and if the county <br/>
<a id="pl.290.3"></a><var>290.3</var>agrees, a taxing district may include a notice with the property tax statement notifying <br/>
<a id="pl.290.4"></a><var>290.4</var>taxpayers when the taxing district will begin its budget deliberations for the current <br/>
<a id="pl.290.5"></a><var>290.5</var>year, and encouraging taxpayers to attend the hearings. If the county allows notices to <br/>
<a id="pl.290.6"></a><var>290.6</var>be included in the envelope containing the property tax statement, and if more than <br/>
<a id="pl.290.7"></a><var>290.7</var>one taxing district relative to a given property decides to include a notice with the tax <br/>
<a id="pl.290.8"></a><var>290.8</var>statement, the county treasurer or auditor must coordinate the process and may combine <br/>
<a id="pl.290.9"></a><var>290.9</var>the information on a single announcement.<br/>
<br/>
<a id="bill.12.36.0"></a><a id="pl.290.10"></a><var>290.10</var>    Sec. 36. Minnesota Statutes 2012, section 276A.01, subdivision 10, is amended to read:<br/>
<a id="pl.290.11"></a><var>290.11</var>    Subd. 10. <b>Adjusted </b><b>market value.</b> "Adjusted market value" of real and personal <br/>
<a id="pl.290.12"></a><var>290.12</var>property within a municipality means the assessor's estimated taxable market value, <br/>
<a id="pl.290.13"></a><var>290.13</var>as defined in section 272.03, of all real and personal property, including the value of <br/>
<a id="pl.290.14"></a><var>290.14</var>manufactured housing, within the municipality. For purposes of sections 
<statute_ref>276A.01</statute_ref> to <br/>
<a id="pl.290.15"></a><var>290.15</var><statute_ref>276A.09</statute_ref>, the commissioner of revenue shall annually make determinations and reports <br/>
<a id="pl.290.16"></a><var>290.16</var>with respect to each municipality which are comparable to those it makes for school <br/>
<a id="pl.290.17"></a><var>290.17</var>districts, adjusted for sales ratios in a manner similar to the adjustments made to city and <br/>
<a id="pl.290.18"></a><var>290.18</var>town net tax capacities under section 
         <statute_ref>127A.48, subdivisions 1 to 6</statute_ref>, in the same manner <br/>
<a id="pl.290.19"></a><var>290.19</var>and at the same times prescribed by the subdivision. The commissioner of revenue shall <br/>
<a id="pl.290.20"></a><var>290.20</var>annually determine, for each municipality, information comparable to that required by <br/>
<a id="pl.290.21"></a><var>290.21</var>section 
<statute_ref>475.53, subdivision 4</statute_ref>, for school districts, as soon as practicable after it becomes <br/>
<a id="pl.290.22"></a><var>290.22</var>available. The commissioner of revenue shall then compute the equalized market value of <br/>
<a id="pl.290.23"></a><var>290.23</var>property within each municipality.<br/>
<a id="pl.290.24"></a><var>290.24</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.12.37.0"></a><a id="pl.290.25"></a><var>290.25</var>    Sec. 37. Minnesota Statutes 2012, section 276A.01, subdivision 12, is amended to read:<br/>
<a id="pl.290.26"></a><var>290.26</var>    Subd. 12. <b>Fiscal capacity.</b> "Fiscal capacity" of a municipality means its valuation<br/>
<a id="pl.290.27"></a><var>290.27</var> adjusted market value, determined as of January 2 of any year, divided by its population, <br/>
<a id="pl.290.28"></a><var>290.28</var>determined as of a date in the same year.<br/>
<br/>
<a id="bill.12.38.0"></a><a id="pl.290.29"></a><var>290.29</var>    Sec. 38. Minnesota Statutes 2012, section 276A.01, subdivision 13, is amended to read:<br/>
<a id="pl.290.30"></a><var>290.30</var>    Subd. 13. <b>Average fiscal capacity.</b> "Average fiscal capacity" of municipalities <br/>
<a id="pl.290.31"></a><var>290.31</var>means the sum of the valuations adjusted market values of all municipalities, determined <br/>
<a id="pl.290.32"></a><var>290.32</var>as of January 2 of any year, divided by the sum of their populations, determined as of <br/>
<a id="pl.290.33"></a><var>290.33</var>a date in the same year.<br/>
<br/>
<a id="bill.12.39.0"></a><a id="pl.291.1"></a><var>291.1</var>    Sec. 39. Minnesota Statutes 2012, section 276A.01, subdivision 15, is amended to read:<br/>
<a id="pl.291.2"></a><var>291.2</var>    Subd. 15. <b>Net tax capacity.</b> "Net tax capacity" means the taxable market value of <br/>
<a id="pl.291.3"></a><var>291.3</var>real and personal property multiplied by its net tax capacity rates in section 
         <statute_ref>273.13</statute_ref>.<br/>
<br/>
<a id="bill.12.40.0"></a><a id="pl.291.4"></a><var>291.4</var>    Sec. 40. Minnesota Statutes 2012, section 276A.06, subdivision 10, is amended to read:<br/>
<a id="pl.291.5"></a><var>291.5</var>    Subd. 10. <b>Adjustment of values </b><b>for other computations</b><b>.</b> For the purpose of <br/>
<a id="pl.291.6"></a><var>291.6</var>computing the amount or rate of any salary, aid, tax, or debt authorized, required, or <br/>
<a id="pl.291.7"></a><var>291.7</var>limited by any provision of any law or charter, where the authorization, requirement, or <br/>
<a id="pl.291.8"></a><var>291.8</var>limitation is related to any value or valuation of taxable property within any governmental <br/>
<a id="pl.291.9"></a><var>291.9</var>unit, the value or net tax capacity fiscal capacity under section 276A.01, subdivision 12, a <br/>
<a id="pl.291.10"></a><var>291.10</var>municipality's taxable market value must be adjusted to reflect the adjustments reductions<br/>
<a id="pl.291.11"></a><var>291.11</var> to net tax capacity effected by subdivision 2, clause (a), provided that: (1) in determining <br/>
<a id="pl.291.12"></a><var>291.12</var>the taxable market value of commercial-industrial property or any class thereof within <br/>
<a id="pl.291.13"></a><var>291.13</var>a governmental unit for any purpose other than section 
<statute_ref>276A.05</statute_ref> municipality, (a) the <br/>
<a id="pl.291.14"></a><var>291.14</var>reduction required by this subdivision is that amount which bears the same proportion to <br/>
<a id="pl.291.15"></a><var>291.15</var>the amount subtracted from the governmental unit's municipality's net tax capacity pursuant <br/>
<a id="pl.291.16"></a><var>291.16</var>to subdivision 2, clause (a), as the taxable market value of commercial-industrial property, <br/>
<a id="pl.291.17"></a><var>291.17</var>or such class thereof, located within the governmental unit municipality bears to the net <br/>
<a id="pl.291.18"></a><var>291.18</var>tax capacity of commercial-industrial property, or such class thereof, located within the <br/>
<a id="pl.291.19"></a><var>291.19</var>governmental unit, and (b) the increase required by this subdivision is that amount which <br/>
<a id="pl.291.20"></a><var>291.20</var>bears the same proportion to the amount added to the governmental unit's net tax capacity <br/>
<a id="pl.291.21"></a><var>291.21</var>pursuant to subdivision 2, clause (b), as the market value of commercial-industrial property, <br/>
<a id="pl.291.22"></a><var>291.22</var>or such class thereof, located within the governmental unit bears to the net tax capacity of <br/>
<a id="pl.291.23"></a><var>291.23</var>commercial-industrial property, or such class thereof, located within the governmental unit; <br/>
<a id="pl.291.24"></a><var>291.24</var>and (2) in determining the market value of real property within a municipality for purposes <br/>
<a id="pl.291.25"></a><var>291.25</var>of section 
<statute_ref>276A.05</statute_ref>, the adjustment prescribed by clause (1)(a) must be made and that <br/>
<a id="pl.291.26"></a><var>291.26</var>prescribed by clause (1)(b) must not be made municipality. No adjustment shall be made <br/>
<a id="pl.291.27"></a><var>291.27</var>to taxable market value for the increase in net tax capacity under subdivision 2, clause (b).<br/>
<br/>
<a id="bill.12.41.0"></a><a id="pl.291.28"></a><var>291.28</var>    Sec. 41. Minnesota Statutes 2012, section 287.08, is amended to read:<br/>
<a id="pl.291.29"></a><var>291.29</var><b>287.08 TAX, HOW PAYABLE; RECEIPTS.</b><br/>
<a id="pl.291.30"></a><var>291.30</var>    (a) The tax imposed by sections 
         <statute_ref>287.01</statute_ref> to 
         <statute_ref>287.12</statute_ref> must be paid to the treasurer of <br/>
<a id="pl.291.31"></a><var>291.31</var>any county in this state in which the real property or some part is located at or before <br/>
<a id="pl.291.32"></a><var>291.32</var>the time of filing the mortgage for record. The treasurer shall endorse receipt on the <br/>
<a id="pl.291.33"></a><var>291.33</var>mortgage and the receipt is conclusive proof that the tax has been paid in the amount <br/>
<a id="pl.291.34"></a><var>291.34</var>stated and authorizes any county recorder or registrar of titles to record the mortgage. Its <br/>
<a id="pl.292.1"></a><var>292.1</var>form, in substance, shall be "registration tax hereon of ..................... dollars paid." If the <br/>
<a id="pl.292.2"></a><var>292.2</var>mortgage is exempt from taxation the endorsement shall, in substance, be "exempt from <br/>
<a id="pl.292.3"></a><var>292.3</var>registration tax." In either case the receipt must be signed by the treasurer. In case the <br/>
<a id="pl.292.4"></a><var>292.4</var>treasurer is unable to determine whether a claim of exemption should be allowed, the tax <br/>
<a id="pl.292.5"></a><var>292.5</var>must be paid as in the case of a taxable mortgage. For documents submitted electronically, <br/>
<a id="pl.292.6"></a><var>292.6</var>the endorsements and tax amount shall be affixed electronically and no signature by the <br/>
<a id="pl.292.7"></a><var>292.7</var>treasurer will be required. The actual payment method must be arranged in advance <br/>
<a id="pl.292.8"></a><var>292.8</var>between the submitter and the receiving county.<br/>
<a id="pl.292.9"></a><var>292.9</var>    (b) The county treasurer may refund in whole or in part any mortgage registry tax <br/>
<a id="pl.292.10"></a><var>292.10</var>overpayment if a written application by the taxpayer is submitted to the county treasurer <br/>
<a id="pl.292.11"></a><var>292.11</var>within 3-1/2 years from the date of the overpayment. If the county has not issued a denial <br/>
<a id="pl.292.12"></a><var>292.12</var>of the application, the taxpayer may bring an action in Tax Court in the county in which <br/>
<a id="pl.292.13"></a><var>292.13</var>the tax was paid at any time after the expiration of six months from the time that the <br/>
<a id="pl.292.14"></a><var>292.14</var>application was submitted. A denial of refund may be appealed within 60 days from <br/>
<a id="pl.292.15"></a><var>292.15</var>the date of the denial by bringing an action in Tax Court in the county in which the tax <br/>
<a id="pl.292.16"></a><var>292.16</var>was paid. The action is commenced by the serving of a petition for relief on the county <br/>
<a id="pl.292.17"></a><var>292.17</var>treasurer, and by filing a copy with the court. The county attorney shall defend the action. <br/>
<a id="pl.292.18"></a><var>292.18</var>The county treasurer shall notify the treasurer of each county that has or would receive a <br/>
<a id="pl.292.19"></a><var>292.19</var>portion of the tax as paid.<br/>
<a id="pl.292.20"></a><var>292.20</var>    (c) If the county treasurer determines a refund should be paid, or if a refund is <br/>
<a id="pl.292.21"></a><var>292.21</var>ordered by the court, the county treasurer of each county that actually received a portion <br/>
<a id="pl.292.22"></a><var>292.22</var>of the tax shall immediately pay a proportionate share of three percent of the refund <br/>
<a id="pl.292.23"></a><var>292.23</var>using any available county funds. The county treasurer of each county that received, or <br/>
<a id="pl.292.24"></a><var>292.24</var>would have received, a portion of the tax shall also pay their county's proportionate share <br/>
<a id="pl.292.25"></a><var>292.25</var>of the remaining 97 percent of the court-ordered refund on or before the 20th day of the <br/>
<a id="pl.292.26"></a><var>292.26</var>following month using solely the mortgage registry tax funds that would be paid to the <br/>
<a id="pl.292.27"></a><var>292.27</var>commissioner of revenue on that date under section 
         <statute_ref>287.12</statute_ref>. If the funds on hand under <br/>
<a id="pl.292.28"></a><var>292.28</var>this procedure are insufficient to fully fund 97 percent of the court-ordered refund, the <br/>
<a id="pl.292.29"></a><var>292.29</var>county treasurer of the county in which the action was brought shall file a claim with the <br/>
<a id="pl.292.30"></a><var>292.30</var>commissioner of revenue under section 
         <statute_ref>16A.48</statute_ref> for the remaining portion of 97 percent of <br/>
<a id="pl.292.31"></a><var>292.31</var>the refund, and shall pay over the remaining portion upon receipt of a warrant from the <br/>
<a id="pl.292.32"></a><var>292.32</var>state issued pursuant to the claim.<br/>
<a id="pl.292.33"></a><var>292.33</var>    (d) When any mortgage covers real property located in more than one county in this <br/>
<a id="pl.292.34"></a><var>292.34</var>state the total tax must be paid to the treasurer of the county where the mortgage is first <br/>
<a id="pl.292.35"></a><var>292.35</var>presented for recording, and the payment must be receipted as provided in paragraph <br/>
<a id="pl.292.36"></a><var>292.36</var>(a). If the principal debt or obligation secured by such a multiple county mortgage <br/>
<a id="pl.293.1"></a><var>293.1</var>exceeds $10,000,000, the nonstate portion of the tax must be divided and paid over by <br/>
<a id="pl.293.2"></a><var>293.2</var>the county treasurer receiving it, on or before the 20th day of each month after receipt, <br/>
<a id="pl.293.3"></a><var>293.3</var>to the county or counties entitled in the ratio that the estimated market value of the real <br/>
<a id="pl.293.4"></a><var>293.4</var>property covered by the mortgage in each county bears to the estimated market value of <br/>
<a id="pl.293.5"></a><var>293.5</var>all the real property in this state described in the mortgage. In making the division and <br/>
<a id="pl.293.6"></a><var>293.6</var>payment the county treasurer shall send a statement giving the description of the real <br/>
<a id="pl.293.7"></a><var>293.7</var>property described in the mortgage and the estimated market value of the part located in <br/>
<a id="pl.293.8"></a><var>293.8</var>each county. For this purpose, the treasurer of any county may require the treasurer of <br/>
<a id="pl.293.9"></a><var>293.9</var>any other county to certify to the former the estimated market valuation value of any tract <br/>
<a id="pl.293.10"></a><var>293.10</var>of real property in any mortgage.<br/>
<a id="pl.293.11"></a><var>293.11</var>    (e) The mortgagor must pay the tax imposed by sections 
         <statute_ref>287.01</statute_ref> to 
         <statute_ref>287.12</statute_ref>. The <br/>
<a id="pl.293.12"></a><var>293.12</var>mortgagee may undertake to collect and remit the tax on behalf of the mortgagor. If the <br/>
<a id="pl.293.13"></a><var>293.13</var>mortgagee collects money from the mortgagor to remit the tax on behalf of the mortgagor, <br/>
<a id="pl.293.14"></a><var>293.14</var>the mortgagee has a fiduciary duty to remit the tax on behalf of the mortgagor as to the <br/>
<a id="pl.293.15"></a><var>293.15</var>amount of the tax collected for that purpose and the mortgagor is relieved of any further <br/>
<a id="pl.293.16"></a><var>293.16</var>obligation to pay the tax as to the amount collected by the mortgagee for this purpose.<br/>
<br/>
<a id="bill.12.42.0"></a><a id="pl.293.17"></a><var>293.17</var>    Sec. 42. Minnesota Statutes 2012, section 287.23, subdivision 1, is amended to read:<br/>
<a id="pl.293.18"></a><var>293.18</var>    Subdivision 1. <b>Real property outside county.</b> If any taxable deed or instrument <br/>
<a id="pl.293.19"></a><var>293.19</var>describes any real property located in more than one county in this state, the total tax must <br/>
<a id="pl.293.20"></a><var>293.20</var>be paid to the treasurer of the county where the document is first presented for recording, <br/>
<a id="pl.293.21"></a><var>293.21</var>and the payment must be receipted as provided in section 
         <statute_ref>287.08</statute_ref>. If the net consideration <br/>
<a id="pl.293.22"></a><var>293.22</var>exceeds $700,000, the nonstate portion of the tax must be divided and paid over by the <br/>
<a id="pl.293.23"></a><var>293.23</var>county treasurer receiving it, on or before the 20th day of each month after receipt, to <br/>
<a id="pl.293.24"></a><var>293.24</var>the county or counties entitled in the ratio which the estimated market value of the real <br/>
<a id="pl.293.25"></a><var>293.25</var>property covered by the document in each county bears to the estimated market value of <br/>
<a id="pl.293.26"></a><var>293.26</var>all the real property in this state described in the document. In making the division and <br/>
<a id="pl.293.27"></a><var>293.27</var>payment the county treasurer shall send a statement to the other involved counties giving <br/>
<a id="pl.293.28"></a><var>293.28</var>the description of the real property described in the document and the estimated market <br/>
<a id="pl.293.29"></a><var>293.29</var>value of the part located in each county. The treasurer of any county may require the <br/>
<a id="pl.293.30"></a><var>293.30</var>treasurer of any other county to certify to the former the estimated market valuation value<br/>
<a id="pl.293.31"></a><var>293.31</var> of any parcel of real property for this purpose.<br/>
<br/>
<a id="bill.12.43.0"></a><a id="pl.293.32"></a><var>293.32</var>    Sec. 43. Minnesota Statutes 2012, section 353G.08, subdivision 2, is amended to read:<br/>
<a id="pl.293.33"></a><var>293.33</var>    Subd. 2. <b>Cash flow funding requirement.</b> If the executive director determines that <br/>
<a id="pl.293.34"></a><var>293.34</var>an account in the voluntary statewide lump-sum volunteer firefighter retirement plan has <br/>
<a id="pl.294.1"></a><var>294.1</var>insufficient assets to meet the service pensions determined payable from the account, <br/>
<a id="pl.294.2"></a><var>294.2</var>the executive director shall certify the amount of the potential service pension shortfall <br/>
<a id="pl.294.3"></a><var>294.3</var>to the municipality or municipalities and the municipality or municipalities shall make <br/>
<a id="pl.294.4"></a><var>294.4</var>an additional employer contribution to the account within ten days of the certification. <br/>
<a id="pl.294.5"></a><var>294.5</var>If more than one municipality is associated with the account, unless the municipalities <br/>
<a id="pl.294.6"></a><var>294.6</var>agree to a different allocation, the municipalities shall allocate the additional employer <br/>
<a id="pl.294.7"></a><var>294.7</var>contribution one-half in proportion to the population of each municipality and one-half in <br/>
<a id="pl.294.8"></a><var>294.8</var>proportion to the estimated market value of the property of each municipality.<br/>
<br/>
<a id="bill.12.44.0"></a><a id="pl.294.9"></a><var>294.9</var>    Sec. 44. Minnesota Statutes 2012, section 365.025, subdivision 4, is amended to read:<br/>
<a id="pl.294.10"></a><var>294.10</var>    Subd. 4. <b>Major purchases: notice, petition, election.</b> Before buying anything <br/>
<a id="pl.294.11"></a><var>294.11</var>under subdivision 2 that costs more than 0.24177 percent of the estimated market value of <br/>
<a id="pl.294.12"></a><var>294.12</var>the town, the town must follow this subdivision.<br/>
<a id="pl.294.13"></a><var>294.13</var>The town must publish in its official newspaper the board's resolution to pay for the <br/>
<a id="pl.294.14"></a><var>294.14</var>property over time. Then a petition for an election on the contract may be filed with the <br/>
<a id="pl.294.15"></a><var>294.15</var>clerk. The petition must be filed within ten days after the resolution is published. To require <br/>
<a id="pl.294.16"></a><var>294.16</var>the election the petition must be signed by a number of voters equal to ten percent of the <br/>
<a id="pl.294.17"></a><var>294.17</var>voters at the last regular town election. The contract then must be approved by a majority of <br/>
<a id="pl.294.18"></a><var>294.18</var>those voting on the question. The question may be voted on at a regular or special election.<br/>
<br/>
<a id="bill.12.45.0"></a><a id="pl.294.19"></a><var>294.19</var>    Sec. 45. Minnesota Statutes 2012, section 366.095, subdivision 1, is amended to read:<br/>
<a id="pl.294.20"></a><var>294.20</var>    Subdivision 1. <b>Certificates of indebtedness.</b> The town board may issue certificates <br/>
<a id="pl.294.21"></a><var>294.21</var>of indebtedness within the debt limits for a town purpose otherwise authorized by law. <br/>
<a id="pl.294.22"></a><var>294.22</var>The certificates shall be payable in not more than ten years and be issued on the terms and <br/>
<a id="pl.294.23"></a><var>294.23</var>in the manner as the board may determine. If the amount of the certificates to be issued <br/>
<a id="pl.294.24"></a><var>294.24</var>exceeds 0.25 percent of the estimated market value of the town, they shall not be issued <br/>
<a id="pl.294.25"></a><var>294.25</var>for at least ten days after publication in a newspaper of general circulation in the town of <br/>
<a id="pl.294.26"></a><var>294.26</var>the board's resolution determining to issue them. If within that time, a petition asking for <br/>
<a id="pl.294.27"></a><var>294.27</var>an election on the proposition signed by voters equal to ten percent of the number of voters <br/>
<a id="pl.294.28"></a><var>294.28</var>at the last regular town election is filed with the clerk, the certificates shall not be issued <br/>
<a id="pl.294.29"></a><var>294.29</var>until their issuance has been approved by a majority of the votes cast on the question at <br/>
<a id="pl.294.30"></a><var>294.30</var>a regular or special election. A tax levy shall be made to pay the principal and interest <br/>
<a id="pl.294.31"></a><var>294.31</var>on the certificates as in the case of bonds.<br/>
<br/>
<a id="bill.12.46.0"></a><a id="pl.294.32"></a><var>294.32</var>    Sec. 46. Minnesota Statutes 2012, section 366.27, is amended to read:<br/>
<a id="pl.294.33"></a><var>294.33</var><b>366.27 FIREFIGHTERS' RELIEF; TAX LEVY.</b><br/>
<a id="pl.295.1"></a><var>295.1</var>The town board of any town in this state having therein a platted portion on <br/>
<a id="pl.295.2"></a><var>295.2</var>which resides 1,200 or more people, and wherein a duly incorporated firefighters' relief <br/>
<a id="pl.295.3"></a><var>295.3</var>association is located may each year levy a tax not to exceed 0.00806 percent of taxable<br/>
<a id="pl.295.4"></a><var>295.4</var> estimated market value for the benefit of the relief association.<br/>
<br/>
<a id="bill.12.47.0"></a><a id="pl.295.5"></a><var>295.5</var>    Sec. 47. Minnesota Statutes 2012, section 368.01, subdivision 23, is amended to read:<br/>
<a id="pl.295.6"></a><var>295.6</var>    Subd. 23. <b>Financing purchase of certain equipment.</b> The town board may issue <br/>
<a id="pl.295.7"></a><var>295.7</var>certificates of indebtedness within debt limits to purchase fire or police equipment or <br/>
<a id="pl.295.8"></a><var>295.8</var>ambulance equipment or street construction or maintenance equipment. The certificates <br/>
<a id="pl.295.9"></a><var>295.9</var>shall be payable in not more than five years and be issued on terms and in the manner as the <br/>
<a id="pl.295.10"></a><var>295.10</var>board may determine. If the amount of the certificates to be issued to finance a purchase <br/>
<a id="pl.295.11"></a><var>295.11</var>exceeds 0.24177 percent of the estimated market value of the town, excluding money <br/>
<a id="pl.295.12"></a><var>295.12</var>and credits, they shall not be issued for at least ten days after publication in the official <br/>
<a id="pl.295.13"></a><var>295.13</var>newspaper of a town board resolution determining to issue them. If before the end of that <br/>
<a id="pl.295.14"></a><var>295.14</var>time, a petition asking for an election on the proposition signed by voters equal to ten <br/>
<a id="pl.295.15"></a><var>295.15</var>percent of the number of voters at the last regular town election is filed with the clerk, the <br/>
<a id="pl.295.16"></a><var>295.16</var>certificates shall not be issued until the proposition of their issuance has been approved by a <br/>
<a id="pl.295.17"></a><var>295.17</var>majority of the votes cast on the question at a regular or special election. A tax levy shall be <br/>
<a id="pl.295.18"></a><var>295.18</var>made for the payment of the principal and interest on the certificates as in the case of bonds.<br/>
<br/>
<a id="bill.12.48.0"></a><a id="pl.295.19"></a><var>295.19</var>    Sec. 48. Minnesota Statutes 2012, section 368.47, is amended to read:<br/>
<a id="pl.295.20"></a><var>295.20</var><b>368.47 TOWNS MAY BE DISSOLVED.</b><br/>
<a id="pl.295.21"></a><var>295.21</var>(1) When the voters residing within a town have failed to elect any town officials for <br/>
<a id="pl.295.22"></a><var>295.22</var>more than ten years continuously;<br/>
<a id="pl.295.23"></a><var>295.23</var>(2) when a town has failed for a period of ten years to exercise any of the powers <br/>
<a id="pl.295.24"></a><var>295.24</var>and functions of a town;<br/>
<a id="pl.295.25"></a><var>295.25</var>(3) when the estimated market value of a town drops to less than $165,000;<br/>
<a id="pl.295.26"></a><var>295.26</var>(4) when the tax delinquency of a town, exclusive of taxes that are delinquent or <br/>
<a id="pl.295.27"></a><var>295.27</var>unpaid because they are contested in proceedings for the enforcement of taxes, amounts to <br/>
<a id="pl.295.28"></a><var>295.28</var>12 percent of its market value; or<br/>
<a id="pl.295.29"></a><var>295.29</var>(5) when the state or federal government has acquired title to 50 percent of the <br/>
<a id="pl.295.30"></a><var>295.30</var>real estate of a town,<br/>
<a id="pl.295.31"></a><var>295.31</var>which facts, or any of them, may be found and determined by the resolution of the county <br/>
<a id="pl.295.32"></a><var>295.32</var>board of the county in which the town is located, according to the official records in the <br/>
<a id="pl.295.33"></a><var>295.33</var>office of the county auditor, the county board by resolution may declare the town, naming <br/>
<a id="pl.295.34"></a><var>295.34</var>it, dissolved and no longer entitled to exercise any of the powers or functions of a town.<br/>
<a id="pl.296.1"></a><var>296.1</var>In Cass, Itasca, and St. Louis Counties, before the dissolution is effective the voters <br/>
<a id="pl.296.2"></a><var>296.2</var>of the town shall express their approval or disapproval. The town clerk shall, upon a <br/>
<a id="pl.296.3"></a><var>296.3</var>petition signed by a majority of the registered voters of the town, filed with the clerk at <br/>
<a id="pl.296.4"></a><var>296.4</var>least 60 days before a regular or special town election, give notice at the same time and <br/>
<a id="pl.296.5"></a><var>296.5</var>in the same manner of the election that the question of dissolution of the town will be <br/>
<a id="pl.296.6"></a><var>296.6</var>submitted for determination at the election. At the election the question shall be voted <br/>
<a id="pl.296.7"></a><var>296.7</var>upon by a separate ballot, the terms of which shall be either "for dissolution" or "against <br/>
<a id="pl.296.8"></a><var>296.8</var>dissolution." The ballot shall be deposited in a separate ballot box and the result of the <br/>
<a id="pl.296.9"></a><var>296.9</var>voting canvassed, certified, and returned in the same manner and at the same time as <br/>
<a id="pl.296.10"></a><var>296.10</var>other facts and returns of the election. If a majority of the votes cast at the election are <br/>
<a id="pl.296.11"></a><var>296.11</var>for dissolution, the town shall be dissolved. If a majority of the votes cast at the election <br/>
<a id="pl.296.12"></a><var>296.12</var>are against dissolution, the town shall not be dissolved.<br/>
<a id="pl.296.13"></a><var>296.13</var>When a town is dissolved under sections 
         <statute_ref>368.47</statute_ref> to 
         <statute_ref>368.49</statute_ref> the county shall acquire <br/>
<a id="pl.296.14"></a><var>296.14</var>title to any telephone company or other business conducted by the town. The business <br/>
<a id="pl.296.15"></a><var>296.15</var>shall be operated by the board of county commissioners until it can be sold. The <br/>
<a id="pl.296.16"></a><var>296.16</var>subscribers or patrons of the business shall have the first opportunity of purchase. If the <br/>
<a id="pl.296.17"></a><var>296.17</var>town has any outstanding indebtedness chargeable to the business, the county auditor shall <br/>
<a id="pl.296.18"></a><var>296.18</var>levy a tax against the property situated in the dissolved town to pay the indebtedness <br/>
<a id="pl.296.19"></a><var>296.19</var>as it becomes due.<br/>
<br/>
<a id="bill.12.49.0"></a><a id="pl.296.20"></a><var>296.20</var>    Sec. 49. Minnesota Statutes 2012, section 370.01, is amended to read:<br/>
<a id="pl.296.21"></a><var>296.21</var><b>370.01 CHANGE OF BOUNDARIES; CREATION OF NEW COUNTIES.</b><br/>
<a id="pl.296.22"></a><var>296.22</var>The boundaries of counties may be changed by taking territory from a county and <br/>
<a id="pl.296.23"></a><var>296.23</var>attaching it to an adjoining county, and new counties may be established out of territory of <br/>
<a id="pl.296.24"></a><var>296.24</var>one or more existing counties. A new county shall contain at least 400 square miles and <br/>
<a id="pl.296.25"></a><var>296.25</var>have at least 4,000 inhabitants. A proposed new county must have a total taxable estimated<br/>
<a id="pl.296.26"></a><var>296.26</var> market value of at least 35 percent of (i) the total taxable estimated market value of the <br/>
<a id="pl.296.27"></a><var>296.27</var>existing county, or (ii) the average total taxable estimated market value of the existing <br/>
<a id="pl.296.28"></a><var>296.28</var>counties, included in the proposition. The determination of the taxable estimated market <br/>
<a id="pl.296.29"></a><var>296.29</var>value of a county must be made by the commissioner of revenue. An existing county shall <br/>
<a id="pl.296.30"></a><var>296.30</var>not be reduced in area below 400 square miles, have less than 4,000 inhabitants, or have a <br/>
<a id="pl.296.31"></a><var>296.31</var>total taxable estimated market value of less than that required of a new county.<br/>
<a id="pl.296.32"></a><var>296.32</var>No change in the boundaries of any county having an area of more than 2,500 square <br/>
<a id="pl.296.33"></a><var>296.33</var>miles, whether by the creation of a new county, or otherwise, shall detach from the existing <br/>
<a id="pl.296.34"></a><var>296.34</var>county any territory within 12 miles of the county seat.<br/>
<br/>
<a id="bill.12.50.0"></a><a id="pl.297.1"></a><var>297.1</var>    Sec. 50. Minnesota Statutes 2012, section 373.40, subdivision 1, is amended to read:<br/>
<a id="pl.297.2"></a><var>297.2</var>    Subdivision 1. <b>Definitions.</b> For purposes of this section, the following terms have <br/>
<a id="pl.297.3"></a><var>297.3</var>the meanings given.<br/>
<a id="pl.297.4"></a><var>297.4</var>(a) "Bonds" means an obligation as defined under section 
         <statute_ref>475.51</statute_ref>.<br/>
<a id="pl.297.5"></a><var>297.5</var>(b) "Capital improvement" means acquisition or betterment of public lands, <br/>
<a id="pl.297.6"></a><var>297.6</var>buildings, or other improvements within the county for the purpose of a county courthouse, <br/>
<a id="pl.297.7"></a><var>297.7</var>administrative building, health or social service facility, correctional facility, jail, law <br/>
<a id="pl.297.8"></a><var>297.8</var>enforcement center, hospital, morgue, library, park, qualified indoor ice arena, roads and <br/>
<a id="pl.297.9"></a><var>297.9</var>bridges, and the acquisition of development rights in the form of conservation easements <br/>
<a id="pl.297.10"></a><var>297.10</var>under chapter 84C. An improvement must have an expected useful life of five years or <br/>
<a id="pl.297.11"></a><var>297.11</var>more to qualify. "Capital improvement" does not include a recreation or sports facility <br/>
<a id="pl.297.12"></a><var>297.12</var>building (such as, but not limited to, a gymnasium, ice arena, racquet sports facility, <br/>
<a id="pl.297.13"></a><var>297.13</var>swimming pool, exercise room or health spa), unless the building is part of an outdoor <br/>
<a id="pl.297.14"></a><var>297.14</var>park facility and is incidental to the primary purpose of outdoor recreation.<br/>
<a id="pl.297.15"></a><var>297.15</var>(c) "Metropolitan county" means a county located in the seven-county metropolitan <br/>
<a id="pl.297.16"></a><var>297.16</var>area as defined in section 
         <statute_ref>473.121</statute_ref> or a county with a population of 90,000 or more.<br/>
<a id="pl.297.17"></a><var>297.17</var>(d) "Population" means the population established by the most recent of the <br/>
<a id="pl.297.18"></a><var>297.18</var>following (determined as of the date the resolution authorizing the bonds was adopted):<br/>
<a id="pl.297.19"></a><var>297.19</var>(1) the federal decennial census,<br/>
<a id="pl.297.20"></a><var>297.20</var>(2) a special census conducted under contract by the United States Bureau of the <br/>
<a id="pl.297.21"></a><var>297.21</var>Census, or<br/>
<a id="pl.297.22"></a><var>297.22</var>(3) a population estimate made either by the Metropolitan Council or by the state <br/>
<a id="pl.297.23"></a><var>297.23</var>demographer under section 
         <statute_ref>4A.02</statute_ref>.<br/>
<a id="pl.297.24"></a><var>297.24</var>(e) "Qualified indoor ice arena" means a facility that meets the requirements of <br/>
<a id="pl.297.25"></a><var>297.25</var>section 
         <statute_ref>373.43</statute_ref>.<br/>
<a id="pl.297.26"></a><var>297.26</var>(f) "Tax capacity" means total taxable market value, but does not include captured <br/>
<a id="pl.297.27"></a><var>297.27</var>market value.<br/>
<br/>
<a id="bill.12.51.0"></a><a id="pl.297.28"></a><var>297.28</var>    Sec. 51. Minnesota Statutes 2012, section 373.40, subdivision 4, is amended to read:<br/>
<a id="pl.297.29"></a><var>297.29</var>    Subd. 4. <b>Limitations on amount.</b> A county may not issue bonds under this section <br/>
<a id="pl.297.30"></a><var>297.30</var>if the maximum amount of principal and interest to become due in any year on all the <br/>
<a id="pl.297.31"></a><var>297.31</var>outstanding bonds issued pursuant to this section (including the bonds to be issued) will <br/>
<a id="pl.297.32"></a><var>297.32</var>equal or exceed 0.12 percent of taxable the estimated market value of property in the <br/>
<a id="pl.297.33"></a><var>297.33</var>county. Calculation of the limit must be made using the taxable estimated market value for <br/>
<a id="pl.297.34"></a><var>297.34</var>the taxes payable year in which the obligations are issued and sold. This section does not <br/>
<a id="pl.297.35"></a><var>297.35</var>limit the authority to issue bonds under any other special or general law.<br/>
<br/>
<a id="bill.12.52.0"></a><a id="pl.298.1"></a><var>298.1</var>    Sec. 52. Minnesota Statutes 2012, section 375.167, subdivision 1, is amended to read:<br/>
<a id="pl.298.2"></a><var>298.2</var>    Subdivision 1. <b>Appropriations.</b> Notwithstanding any contrary law, a county board <br/>
<a id="pl.298.3"></a><var>298.3</var>may appropriate from the general revenue fund to any nonprofit corporation a sum not <br/>
<a id="pl.298.4"></a><var>298.4</var>to exceed 0.00604 percent of taxable estimated market value to provide legal assistance <br/>
<a id="pl.298.5"></a><var>298.5</var>to persons who are unable to afford private legal counsel.<br/>
<br/>
<a id="bill.12.53.0"></a><a id="pl.298.6"></a><var>298.6</var>    Sec. 53. Minnesota Statutes 2012, section 375.18, subdivision 3, is amended to read:<br/>
<a id="pl.298.7"></a><var>298.7</var>    Subd. 3. <b>Courthouse.</b> Each county board may erect, furnish, and maintain a <br/>
<a id="pl.298.8"></a><var>298.8</var>suitable courthouse. No indebtedness shall be created for a courthouse in excess of an <br/>
<a id="pl.298.9"></a><var>298.9</var>amount equal to a levy of 0.04030 percent of taxable estimated market value without the <br/>
<a id="pl.298.10"></a><var>298.10</var>approval of a majority of the voters of the county voting on the question of issuing the <br/>
<a id="pl.298.11"></a><var>298.11</var>obligation at an election.<br/>
<br/>
<a id="bill.12.54.0"></a><a id="pl.298.12"></a><var>298.12</var>    Sec. 54. Minnesota Statutes 2012, section 375.555, is amended to read:<br/>
<a id="pl.298.13"></a><var>298.13</var><b>375.555 FUNDING.</b><br/>
<a id="pl.298.14"></a><var>298.14</var>To implement the county emergency jobs program, the county board may expend <br/>
<a id="pl.298.15"></a><var>298.15</var>an amount equal to what would be generated by a levy of 0.01209 percent of taxable<br/>
<a id="pl.298.16"></a><var>298.16</var> estimated market value. The money to be expended may be from any available funds <br/>
<a id="pl.298.17"></a><var>298.17</var>not otherwise earmarked.<br/>
<br/>
<a id="bill.12.55.0"></a><a id="pl.298.18"></a><var>298.18</var>    Sec. 55. Minnesota Statutes 2012, section 383B.152, is amended to read:<br/>
<a id="pl.298.19"></a><var>298.19</var><b>383B.152 BUILDING AND MAINTENANCE FUND.</b><br/>
<a id="pl.298.20"></a><var>298.20</var>The county board may by resolution levy a tax to provide money which shall be kept <br/>
<a id="pl.298.21"></a><var>298.21</var>in a fund known as the county reserve building and maintenance fund. Money in the fund <br/>
<a id="pl.298.22"></a><var>298.22</var>shall be used solely for the construction, maintenance, and equipping of county buildings <br/>
<a id="pl.298.23"></a><var>298.23</var>that are constructed or maintained by the board. The levy shall not be subject to any limit <br/>
<a id="pl.298.24"></a><var>298.24</var>fixed by any other law or by any board of tax levy or other corresponding body, but shall <br/>
<a id="pl.298.25"></a><var>298.25</var>not exceed 0.02215 percent of taxable estimated market value, less the amount required by <br/>
<a id="pl.298.26"></a><var>298.26</var>chapter 475 to be levied in the year for the payment of the principal of and interest on all <br/>
<a id="pl.298.27"></a><var>298.27</var>bonds issued pursuant to Extra Session Laws 1967, chapter 47, section 1.<br/>
<br/>
<a id="bill.12.56.0"></a><a id="pl.298.28"></a><var>298.28</var>    Sec. 56. Minnesota Statutes 2012, section 383B.245, is amended to read:<br/>
<a id="pl.298.29"></a><var>298.29</var><b>383B.245 LIBRARY LEVY.</b><br/>
<a id="pl.299.1"></a><var>299.1</var>    (a) The county board may levy a tax on the taxable property within the county to <br/>
<a id="pl.299.2"></a><var>299.2</var>acquire, better, and construct county library buildings and branches and to pay principal <br/>
<a id="pl.299.3"></a><var>299.3</var>and interest on bonds issued for that purpose.<br/>
<a id="pl.299.4"></a><var>299.4</var>    (b) The county board may by resolution adopted by a five-sevenths vote issue and <br/>
<a id="pl.299.5"></a><var>299.5</var>sell general obligation bonds of the county in the manner provided in sections 
         <statute_ref>475.60</statute_ref> to <br/>
<statute_ref><a id="pl.299.6"></a><var>299.6</var>475.73
         </statute_ref>. The bonds shall not be subject to the limitations of sections 
         <statute_ref>475.51</statute_ref> to 
         <statute_ref>475.59</statute_ref>, <br/>
<a id="pl.299.7"></a><var>299.7</var>but the maturity years and amounts and interest rates of each series of bonds shall be <br/>
<a id="pl.299.8"></a><var>299.8</var>fixed so that the maximum amount of principal and interest to become due in any year, <br/>
<a id="pl.299.9"></a><var>299.9</var>on the bonds of that series and of all outstanding series issued by or for the purposes of <br/>
<a id="pl.299.10"></a><var>299.10</var>libraries, shall not exceed an amount equal to 0.01612 percent of estimated market value <br/>
<a id="pl.299.11"></a><var>299.11</var>of all taxable property in the county as last finally equalized before the issuance of the new <br/>
<a id="pl.299.12"></a><var>299.12</var>series. When the tax levy authorized in this section is collected it shall be appropriated <br/>
<a id="pl.299.13"></a><var>299.13</var>and credited to a debt service fund for the bonds in amounts required each year in lieu of a <br/>
<a id="pl.299.14"></a><var>299.14</var>countywide tax levy for the debt service fund under section 
         <statute_ref>475.61</statute_ref>.<br/>
<br/>
<a id="bill.12.57.0"></a><a id="pl.299.15"></a><var>299.15</var>    Sec. 57. Minnesota Statutes 2012, section 383B.73, subdivision 1, is amended to read:<br/>
<a id="pl.299.16"></a><var>299.16</var>    Subdivision 1. <b>Levy.</b> To provide funds for the purposes of the Three Rivers Park <br/>
<a id="pl.299.17"></a><var>299.17</var>District as set forth in its annual budget, in lieu of the levies authorized by any other <br/>
<a id="pl.299.18"></a><var>299.18</var>special law for such purposes, the Board of Park District Commissioners may levy taxes <br/>
<a id="pl.299.19"></a><var>299.19</var>on all the taxable property in the county and park district at a rate not exceeding 0.03224 <br/>
<a id="pl.299.20"></a><var>299.20</var>percent of estimated market value. Notwithstanding section 
         <statute_ref>398.16</statute_ref>, on or before October <br/>
<a id="pl.299.21"></a><var>299.21</var>1 of each year, after public hearing, the Board of Park District Commissioners shall adopt <br/>
<a id="pl.299.22"></a><var>299.22</var>a budget for the ensuing year and shall determine the total amount necessary to be raised <br/>
<a id="pl.299.23"></a><var>299.23</var>from ad valorem tax levies to meet its budget. The Board of Park District Commissioners <br/>
<a id="pl.299.24"></a><var>299.24</var>shall submit the budget to the county board. The county board may veto or modify an item <br/>
<a id="pl.299.25"></a><var>299.25</var>contained in the budget. If the county board determines to veto or to modify an item in the <br/>
<a id="pl.299.26"></a><var>299.26</var>budget, it must, within 15 days after the budget was submitted by the district board, state <br/>
<a id="pl.299.27"></a><var>299.27</var>in writing the specific reasons for its objection to the item vetoed or the reason for the <br/>
<a id="pl.299.28"></a><var>299.28</var>modification. The Park District Board, after consideration of the county board's objections <br/>
<a id="pl.299.29"></a><var>299.29</var>and proposed modifications, may reapprove a vetoed item or the original version of an item <br/>
<a id="pl.299.30"></a><var>299.30</var>with respect to which a modification has been proposed, by a two-thirds majority. If the <br/>
<a id="pl.299.31"></a><var>299.31</var>district board does not reapprove a vetoed item, the item shall be deleted from the budget. <br/>
<a id="pl.299.32"></a><var>299.32</var>If the district board does not reapprove the original version of a modified item, the item <br/>
<a id="pl.299.33"></a><var>299.33</var>shall be included in the budget as modified by the county board. After adoption of the final <br/>
<a id="pl.299.34"></a><var>299.34</var>budget and no later than October 1, the superintendent of the park district shall certify to the <br/>
<a id="pl.299.35"></a><var>299.35</var>office of the Hennepin County director of tax and public records exercising the functions <br/>
<a id="pl.300.1"></a><var>300.1</var>of the county auditor the total amount to be raised from ad valorem tax levies to meet its <br/>
<a id="pl.300.2"></a><var>300.2</var>budget for the ensuing year. The director of tax and public records shall add the amount of <br/>
<a id="pl.300.3"></a><var>300.3</var>any levy certified by the district to other tax levies on the property of the county within the <br/>
<a id="pl.300.4"></a><var>300.4</var>district for collection by the director of tax and public records with other taxes. When <br/>
<a id="pl.300.5"></a><var>300.5</var>collected, the director shall make settlement of such taxes with the district in the same <br/>
<a id="pl.300.6"></a><var>300.6</var>manner as other taxes are distributed to the other political subdivisions in Hennepin County.<br/>
<br/>
<a id="bill.12.58.0"></a><a id="pl.300.7"></a><var>300.7</var>    Sec. 58. Minnesota Statutes 2012, section 383E.20, is amended to read:<br/>
<a id="pl.300.8"></a><var>300.8</var><b>383E.20 BONDING FOR COUNTY LIBRARY BUILDINGS.</b><br/>
<a id="pl.300.9"></a><var>300.9</var>    The Anoka County Board may, by resolution adopted by a four-sevenths vote, issue <br/>
<a id="pl.300.10"></a><var>300.10</var>and sell general obligation bonds of the county in the manner provided in chapter 475 to <br/>
<a id="pl.300.11"></a><var>300.11</var>acquire, better, and construct county library buildings. The bonds shall not be subject to the <br/>
<a id="pl.300.12"></a><var>300.12</var>requirements of sections 475.57 to 475.59. The maturity years and amounts and interest <br/>
<a id="pl.300.13"></a><var>300.13</var>rates of each series of bonds shall be fixed so that the maximum amount of principal and <br/>
<a id="pl.300.14"></a><var>300.14</var>interest to become due in any year, on the bonds of that series and of all outstanding series <br/>
<a id="pl.300.15"></a><var>300.15</var>issued by or for the purposes of libraries, shall not exceed an amount equal to .01 percent <br/>
<a id="pl.300.16"></a><var>300.16</var>of the taxable estimated market value of all taxable property in the county, excluding any <br/>
<a id="pl.300.17"></a><var>300.17</var>taxable property taxed by any city for the support of any free public library. When the tax <br/>
<a id="pl.300.18"></a><var>300.18</var>levy authorized in this section is collected, it shall be appropriated and credited to a debt <br/>
<a id="pl.300.19"></a><var>300.19</var>service fund for the bonds. The tax levy for the debt service fund under section 475.61 <br/>
<a id="pl.300.20"></a><var>300.20</var>shall be reduced by the amount available or reasonably anticipated to be available in the <br/>
<a id="pl.300.21"></a><var>300.21</var>fund to make payments otherwise payable from the levy pursuant to section 475.61.<br/>
<br/>
<a id="bill.12.59.0"></a><a id="pl.300.22"></a><var>300.22</var>    Sec. 59. Minnesota Statutes 2012, section 383E.23, is amended to read:<br/>
<a id="pl.300.23"></a><var>300.23</var><b>383E.23 LIBRARY TAX.</b><br/>
<a id="pl.300.24"></a><var>300.24</var>The Anoka County Board may levy a tax of not more than .01 percent of the taxable<br/>
<a id="pl.300.25"></a><var>300.25</var> estimated market value of taxable property located within the county excluding any <br/>
<a id="pl.300.26"></a><var>300.26</var>taxable property taxed by any city for the support of any free public library, to acquire, <br/>
<a id="pl.300.27"></a><var>300.27</var>better, and construct county library buildings and to pay principal and interest on bonds <br/>
<a id="pl.300.28"></a><var>300.28</var>issued for that purpose. The tax shall be disregarded in the calculation of levies or limits <br/>
<a id="pl.300.29"></a><var>300.29</var>on levies provided by section 373.40, or other law.<br/>
<br/>
<a id="bill.12.60.0"></a><a id="pl.300.30"></a><var>300.30</var>    Sec. 60. Minnesota Statutes 2012, section 385.31, is amended to read:<br/>
<a id="pl.300.31"></a><var>300.31</var><b>385.31 PAYMENT OF COUNTY ORDERS OR WARRANTS.</b><br/>
<a id="pl.301.1"></a><var>301.1</var>When any order or warrant drawn on the treasurer is presented for payment, if there <br/>
<a id="pl.301.2"></a><var>301.2</var>is money in the treasury for that purpose, the county treasurer shall redeem the same, and <br/>
<a id="pl.301.3"></a><var>301.3</var>write across the entire face thereof the word "redeemed," the date of the redemption, and <br/>
<a id="pl.301.4"></a><var>301.4</var>the treasurer's official signature. If there is not sufficient funds in the proper accounts to <br/>
<a id="pl.301.5"></a><var>301.5</var>pay such orders they shall be numbered and registered in their order of presentation, <br/>
<a id="pl.301.6"></a><var>301.6</var>and proper endorsement thereof shall be made on such orders and they shall be entitled <br/>
<a id="pl.301.7"></a><var>301.7</var>to payment in like order. Such orders shall bear interest at not to exceed the rate of six <br/>
<a id="pl.301.8"></a><var>301.8</var>percent per annum from such date of presentment. The treasurer, as soon as there is <br/>
<a id="pl.301.9"></a><var>301.9</var>sufficient money in the treasury, shall appropriate and set apart a sum sufficient for the <br/>
<a id="pl.301.10"></a><var>301.10</var>payment of the orders so presented and registered, and, if entitled to interest, issue to the <br/>
<a id="pl.301.11"></a><var>301.11</var>original holder a notice that interest will cease in 30 days from the date of such notice; and, <br/>
<a id="pl.301.12"></a><var>301.12</var>if orders thus entitled to priority of payment are not then presented, the next in order of <br/>
<a id="pl.301.13"></a><var>301.13</var>registry may be paid until such orders are presented. No interest shall be paid on any order, <br/>
<a id="pl.301.14"></a><var>301.14</var>except upon a warrant drawn by the county auditor for that purpose, giving the number <br/>
<a id="pl.301.15"></a><var>301.15</var>and the date of the order on account of which the interest warrant is drawn. In any county <br/>
<a id="pl.301.16"></a><var>301.16</var>in this state now or hereafter having a an estimated market value of all taxable property, <br/>
<a id="pl.301.17"></a><var>301.17</var>exclusive of money and credits, of not less than $1,033,000,000, the county treasurer, in <br/>
<a id="pl.301.18"></a><var>301.18</var>order to save payment of interest on county warrants drawn upon a fund in which there <br/>
<a id="pl.301.19"></a><var>301.19</var>shall be temporarily insufficient money in the treasury to redeem the same, may borrow <br/>
<a id="pl.301.20"></a><var>301.20</var>temporarily from any other fund in the county treasury in which there is a sufficient balance <br/>
<a id="pl.301.21"></a><var>301.21</var>to care for the needs of such fund and allow a temporary loan or transfer to any other fund, <br/>
<a id="pl.301.22"></a><var>301.22</var>and may pay such warrants out of such funds. Any such money so transferred and used in <br/>
<a id="pl.301.23"></a><var>301.23</var>redeeming such county warrants shall be returned to the fund from which drawn as soon <br/>
<a id="pl.301.24"></a><var>301.24</var>as money shall come in to the credit of such fund on which any such warrant was drawn <br/>
<a id="pl.301.25"></a><var>301.25</var>and paid as aforesaid. Any county operating on a cash basis may use a combined form of <br/>
<a id="pl.301.26"></a><var>301.26</var>warrant or order and check, which, when signed by the chair of the county board and by <br/>
<a id="pl.301.27"></a><var>301.27</var>the auditor, is an order or warrant for the payment of the claim, and, when countersigned <br/>
<a id="pl.301.28"></a><var>301.28</var>by the county treasurer, is a check for the payment of the amount thereof.<br/>
<br/>
<a id="bill.12.61.0"></a><a id="pl.301.29"></a><var>301.29</var>    Sec. 61. Minnesota Statutes 2012, section 394.36, subdivision 1, is amended to read:<br/>
<a id="pl.301.30"></a><var>301.30</var>    Subdivision 1. <b>Continuation of nonconformity; limitations.</b> Except as provided in <br/>
<a id="pl.301.31"></a><var>301.31</var>subdivision 2, 3, or 4, any nonconformity, including the lawful use or occupation of land <br/>
<a id="pl.301.32"></a><var>301.32</var>or premises existing at the time of the adoption of an official control under this chapter, <br/>
<a id="pl.301.33"></a><var>301.33</var>may be continued, although the use or occupation does not conform to the official control. <br/>
<a id="pl.301.34"></a><var>301.34</var>If the nonconformity or occupancy is discontinued for a period of more than one year, or <br/>
<a id="pl.301.35"></a><var>301.35</var>any nonconforming building or structure is destroyed by fire or other peril to the extent of <br/>
<a id="pl.302.1"></a><var>302.1</var>50 percent of its estimated market value, any subsequent use or occupancy of the land or <br/>
<a id="pl.302.2"></a><var>302.2</var>premises shall be a conforming use or occupancy.<br/>
<br/>
<a id="bill.12.62.0"></a><a id="pl.302.3"></a><var>302.3</var>    Sec. 62. Minnesota Statutes 2012, section 398A.04, subdivision 8, is amended to read:<br/>
<a id="pl.302.4"></a><var>302.4</var>    Subd. 8. <b>Taxation.</b> Before deciding to exercise the power to tax, the authority shall <br/>
<a id="pl.302.5"></a><var>302.5</var>give six weeks' published notice in all municipalities in the region. If a number of voters <br/>
<a id="pl.302.6"></a><var>302.6</var>in the region equal to five percent of those who voted for candidates for governor at the <br/>
<a id="pl.302.7"></a><var>302.7</var>last gubernatorial election present a petition within nine weeks of the first published notice <br/>
<a id="pl.302.8"></a><var>302.8</var>to the secretary of state requesting that the matter be submitted to popular vote, it shall be <br/>
<a id="pl.302.9"></a><var>302.9</var>submitted at the next general election. The question prepared shall be:<br/>
<a id="pl.302.10"></a><var>302.10</var>"Shall the regional rail authority have the power to impose a property tax?<br/>
<table>
<col width="50px"/>
<col width="40"/>
<col width="12.5"/>
<col width="12.5"/>
<tr>
<td><a id="pl.302.11"></a><var>302.11</var><br/>
</td>
<td></td>
<td>Yes <br/>
<span>
                     							.....
                     						</span></td>
<td></td>
</tr>
<tr>
<td><a id="pl.302.12"></a><var>302.12</var><br/>
</td>
<td></td>
<td>No <span>
                     							.....
                     						</span>"<br/>
</td>
<td></td>
</tr>
</table><a id="pl.302.13"></a><var>302.13</var>If a majority of those voting on the question approve or if no petition is presented <br/>
<a id="pl.302.14"></a><var>302.14</var>within the prescribed time the authority may levy a tax at any annual rate not exceeding <br/>
<a id="pl.302.15"></a><var>302.15</var>0.04835 percent of estimated market value of all taxable property situated within the <br/>
<a id="pl.302.16"></a><var>302.16</var>municipality or municipalities named in its organization resolution. Its recording officer <br/>
<a id="pl.302.17"></a><var>302.17</var>shall file, on or before September 15, in the office of the county auditor of each county <br/>
<a id="pl.302.18"></a><var>302.18</var>in which territory under the jurisdiction of the authority is located a certified copy of the <br/>
<a id="pl.302.19"></a><var>302.19</var>board of commissioners' resolution levying the tax, and each county auditor shall assess <br/>
<a id="pl.302.20"></a><var>302.20</var>and extend upon the tax rolls of each municipality named in the organization resolution the <br/>
<a id="pl.302.21"></a><var>302.21</var>portion of the tax that bears the same ratio to the whole amount that the net tax capacity of <br/>
<a id="pl.302.22"></a><var>302.22</var>taxable property in that municipality bears to the net tax capacity of taxable property in <br/>
<a id="pl.302.23"></a><var>302.23</var>all municipalities named in the organization resolution. Collections of the tax shall be <br/>
<a id="pl.302.24"></a><var>302.24</var>remitted by each county treasurer to the treasurer of the authority. For taxes levied in 1991, <br/>
<a id="pl.302.25"></a><var>302.25</var>the amount levied for light rail transit purposes under this subdivision shall not exceed 75 <br/>
<a id="pl.302.26"></a><var>302.26</var>percent of the amount levied in 1990 for light rail transit purposes under this subdivision.<br/>
<br/>
<a id="bill.12.63.0"></a><a id="pl.302.27"></a><var>302.27</var>    Sec. 63. Minnesota Statutes 2012, section 401.05, subdivision 3, is amended to read:<br/>
<a id="pl.302.28"></a><var>302.28</var>    Subd. 3. <b>Leasing.</b> (a) A county or joint powers board of a group of counties <br/>
<a id="pl.302.29"></a><var>302.29</var>which acquires or constructs and equips or improves facilities under this chapter may, <br/>
<a id="pl.302.30"></a><var>302.30</var>with the approval of the board of county commissioners of each county, enter into a <br/>
<a id="pl.302.31"></a><var>302.31</var>lease agreement with a city situated within any of the counties, or a county housing and <br/>
<a id="pl.302.32"></a><var>302.32</var>redevelopment authority established under chapter 469 or any special law. Under the lease <br/>
<a id="pl.302.33"></a><var>302.33</var>agreement, the city or county housing and redevelopment authority shall:<br/>
<a id="pl.303.1"></a><var>303.1</var>(1) construct or acquire and equip or improve a facility in accordance with plans <br/>
<a id="pl.303.2"></a><var>303.2</var>prepared by or at the request of a county or joint powers board of the group of counties <br/>
<a id="pl.303.3"></a><var>303.3</var>and approved by the commissioner of corrections; and<br/>
<a id="pl.303.4"></a><var>303.4</var>(2) finance the facility by the issuance of revenue bonds.<br/>
<a id="pl.303.5"></a><var>303.5</var>(b) The county or joint powers board of a group of counties may lease the facility <br/>
<a id="pl.303.6"></a><var>303.6</var>site, improvements, and equipment for a term upon rental sufficient to produce revenue <br/>
<a id="pl.303.7"></a><var>303.7</var>for the prompt payment of the revenue bonds and all interest accruing on them. Upon <br/>
<a id="pl.303.8"></a><var>303.8</var>completion of payment, the lessee shall acquire title. The real and personal property <br/>
<a id="pl.303.9"></a><var>303.9</var>acquired for the facility constitutes a project and the lease agreement constitutes a revenue <br/>
<a id="pl.303.10"></a><var>303.10</var>agreement as provided in sections 
         <statute_ref>469.152</statute_ref> to 
         <statute_ref>469.165</statute_ref>. All proceedings by the city or <br/>
<a id="pl.303.11"></a><var>303.11</var>county housing and redevelopment authority and the county or joint powers board shall be <br/>
<a id="pl.303.12"></a><var>303.12</var>as provided in sections 
         <statute_ref>469.152</statute_ref> to 
         <statute_ref>469.165</statute_ref>, with the following adjustments:<br/>
<a id="pl.303.13"></a><var>303.13</var>(1) no tax may be imposed upon the property;<br/>
<a id="pl.303.14"></a><var>303.14</var>(2) the approval of the project by the commissioner of employment and economic <br/>
<a id="pl.303.15"></a><var>303.15</var>development is not required;<br/>
<a id="pl.303.16"></a><var>303.16</var>(3) the Department of Corrections shall be furnished and shall record information <br/>
<a id="pl.303.17"></a><var>303.17</var>concerning each project as it may prescribe, in lieu of reports required on other projects to <br/>
<a id="pl.303.18"></a><var>303.18</var>the commissioner of employment and economic development;<br/>
<a id="pl.303.19"></a><var>303.19</var>(4) the rentals required to be paid under the lease agreement shall not exceed in any <br/>
<a id="pl.303.20"></a><var>303.20</var>year one-tenth of one percent of the estimated market value of property within the county <br/>
<a id="pl.303.21"></a><var>303.21</var>or group of counties as last equalized before the execution of the lease agreement;<br/>
<a id="pl.303.22"></a><var>303.22</var>(5) the county or group of counties shall provide for payment of all rentals due <br/>
<a id="pl.303.23"></a><var>303.23</var>during the term of the lease agreement in the manner required in subdivision 4;<br/>
<a id="pl.303.24"></a><var>303.24</var>(6) no mortgage on the facilities shall be granted for the security of the bonds, but <br/>
<a id="pl.303.25"></a><var>303.25</var>compliance with clause (5) may be enforced as a nondiscretionary duty of the county <br/>
<a id="pl.303.26"></a><var>303.26</var>or group of counties; and<br/>
<a id="pl.303.27"></a><var>303.27</var>(7) the county or the joint powers board of the group of counties may sublease any <br/>
<a id="pl.303.28"></a><var>303.28</var>part of the facilities for purposes consistent with their maintenance and operation.<br/>
<br/>
<a id="bill.12.64.0"></a><a id="pl.303.29"></a><var>303.29</var>    Sec. 64. Minnesota Statutes 2012, section 410.32, is amended to read:<br/>
<a id="pl.303.30"></a><var>303.30</var><b>410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT.</b><br/>
<a id="pl.303.31"></a><var>303.31</var>    (a) Notwithstanding any contrary provision of other law or charter, a home rule <br/>
<a id="pl.303.32"></a><var>303.32</var>charter city may, by resolution and without public referendum, issue capital notes subject <br/>
<a id="pl.303.33"></a><var>303.33</var>to the city debt limit to purchase capital equipment.<br/>
<a id="pl.303.34"></a><var>303.34</var>    (b) For purposes of this section, "capital equipment" means:<br/>
<a id="pl.304.1"></a><var>304.1</var>    (1) public safety equipment, ambulance and other medical equipment, road <br/>
<a id="pl.304.2"></a><var>304.2</var>construction and maintenance equipment, and other capital equipment; and<br/>
<a id="pl.304.3"></a><var>304.3</var>    (2) computer hardware and software, whether bundled with machinery or equipment <br/>
<a id="pl.304.4"></a><var>304.4</var>or unbundled.<br/>
<a id="pl.304.5"></a><var>304.5</var>    (c) The equipment or software must have an expected useful life at least as long <br/>
<a id="pl.304.6"></a><var>304.6</var>as the term of the notes.<br/>
<a id="pl.304.7"></a><var>304.7</var>    (d) The notes shall be payable in not more than ten years and be issued on terms <br/>
<a id="pl.304.8"></a><var>304.8</var>and in the manner the city determines. The total principal amount of the capital notes <br/>
<a id="pl.304.9"></a><var>304.9</var>issued in a fiscal year shall not exceed 0.03 percent of the estimated market value of <br/>
<a id="pl.304.10"></a><var>304.10</var>taxable property in the city for that year.<br/>
<a id="pl.304.11"></a><var>304.11</var>    (e) A tax levy shall be made for the payment of the principal and interest on the <br/>
<a id="pl.304.12"></a><var>304.12</var>notes, in accordance with section 
         <statute_ref>475.61</statute_ref>, as in the case of bonds.<br/>
<a id="pl.304.13"></a><var>304.13</var>    (f) Notes issued under this section shall require an affirmative vote of two-thirds of <br/>
<a id="pl.304.14"></a><var>304.14</var>the governing body of the city.<br/>
<a id="pl.304.15"></a><var>304.15</var>    (g) Notwithstanding a contrary provision of other law or charter, a home rule charter <br/>
<a id="pl.304.16"></a><var>304.16</var>city may also issue capital notes subject to its debt limit in the manner and subject to the <br/>
<a id="pl.304.17"></a><var>304.17</var>limitations applicable to statutory cities pursuant to section 
         <statute_ref>412.301</statute_ref>.<br/>
<br/>
<a id="bill.12.65.0"></a><a id="pl.304.18"></a><var>304.18</var>    Sec. 65. Minnesota Statutes 2012, section 412.221, subdivision 2, is amended to read:<br/>
<a id="pl.304.19"></a><var>304.19</var>    Subd. 2. <b>Contracts.</b> The council shall have power to make such contracts as may <br/>
<a id="pl.304.20"></a><var>304.20</var>be deemed necessary or desirable to make effective any power possessed by the council. <br/>
<a id="pl.304.21"></a><var>304.21</var>The city may purchase personal property through a conditional sales contract and real <br/>
<a id="pl.304.22"></a><var>304.22</var>property through a contract for deed under which contracts the seller is confined to the <br/>
<a id="pl.304.23"></a><var>304.23</var>remedy of recovery of the property in case of nonpayment of all or part of the purchase <br/>
<a id="pl.304.24"></a><var>304.24</var>price, which shall be payable over a period of not to exceed five years. When the contract <br/>
<a id="pl.304.25"></a><var>304.25</var>price of property to be purchased by contract for deed or conditional sales contract <br/>
<a id="pl.304.26"></a><var>304.26</var>exceeds 0.24177 percent of the estimated market value of the city, the city may not enter <br/>
<a id="pl.304.27"></a><var>304.27</var>into such a contract for at least ten days after publication in the official newspaper of a <br/>
<a id="pl.304.28"></a><var>304.28</var>council resolution determining to purchase property by such a contract; and, if before the <br/>
<a id="pl.304.29"></a><var>304.29</var>end of that time a petition asking for an election on the proposition signed by voters equal <br/>
<a id="pl.304.30"></a><var>304.30</var>to ten percent of the number of voters at the last regular city election is filed with the clerk, <br/>
<a id="pl.304.31"></a><var>304.31</var>the city may not enter into such a contract until the proposition has been approved by a <br/>
<a id="pl.304.32"></a><var>304.32</var>majority of the votes cast on the question at a regular or special election.<br/>
<br/>
<a id="bill.12.66.0"></a><a id="pl.304.33"></a><var>304.33</var>    Sec. 66. Minnesota Statutes 2012, section 412.301, is amended to read:<br/>
<a id="pl.304.34"></a><var>304.34</var><b>412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT.</b><br/>
<a id="pl.305.1"></a><var>305.1</var>    (a) The council may issue certificates of indebtedness or capital notes subject to the <br/>
<a id="pl.305.2"></a><var>305.2</var>city debt limits to purchase capital equipment.<br/>
<a id="pl.305.3"></a><var>305.3</var>    (b) For purposes of this section, "capital equipment" means:<br/>
<a id="pl.305.4"></a><var>305.4</var>    (1) public safety equipment, ambulance and other medical equipment, road <br/>
<a id="pl.305.5"></a><var>305.5</var>construction and maintenance equipment, and other capital equipment; and<br/>
<a id="pl.305.6"></a><var>305.6</var>    (2) computer hardware and software, whether bundled with machinery or equipment <br/>
<a id="pl.305.7"></a><var>305.7</var>or unbundled.<br/>
<a id="pl.305.8"></a><var>305.8</var>    (c) The equipment or software must have an expected useful life at least as long as <br/>
<a id="pl.305.9"></a><var>305.9</var>the terms of the certificates or notes.<br/>
<a id="pl.305.10"></a><var>305.10</var>    (d) Such certificates or notes shall be payable in not more than ten years and shall be <br/>
<a id="pl.305.11"></a><var>305.11</var>issued on such terms and in such manner as the council may determine.<br/>
<a id="pl.305.12"></a><var>305.12</var>    (e) If the amount of the certificates or notes to be issued to finance any such purchase <br/>
<a id="pl.305.13"></a><var>305.13</var>exceeds 0.25 percent of the estimated market value of taxable property in the city, they <br/>
<a id="pl.305.14"></a><var>305.14</var>shall not be issued for at least ten days after publication in the official newspaper of <br/>
<a id="pl.305.15"></a><var>305.15</var>a council resolution determining to issue them; and if before the end of that time, a <br/>
<a id="pl.305.16"></a><var>305.16</var>petition asking for an election on the proposition signed by voters equal to ten percent <br/>
<a id="pl.305.17"></a><var>305.17</var>of the number of voters at the last regular municipal election is filed with the clerk, such <br/>
<a id="pl.305.18"></a><var>305.18</var>certificates or notes shall not be issued until the proposition of their issuance has been <br/>
<a id="pl.305.19"></a><var>305.19</var>approved by a majority of the votes cast on the question at a regular or special election.<br/>
<a id="pl.305.20"></a><var>305.20</var>    (f) A tax levy shall be made for the payment of the principal and interest on such <br/>
<a id="pl.305.21"></a><var>305.21</var>certificates or notes, in accordance with section 
         <statute_ref>475.61</statute_ref>, as in the case of bonds.<br/>
<br/>
<a id="bill.12.67.0"></a><a id="pl.305.22"></a><var>305.22</var>    Sec. 67. Minnesota Statutes 2012, section 428A.02, subdivision 1, is amended to read:<br/>
<a id="pl.305.23"></a><var>305.23</var>    Subdivision 1. <b>Ordinance.</b> The governing body of a city may adopt an ordinance <br/>
<a id="pl.305.24"></a><var>305.24</var>establishing a special service district. Only property that is classified under section 
         <statute_ref>273.13</statute_ref> <br/>
<a id="pl.305.25"></a><var>305.25</var>and used for commercial, industrial, or public utility purposes, or is vacant land zoned or <br/>
<a id="pl.305.26"></a><var>305.26</var>designated on a land use plan for commercial or industrial use and located in the special <br/>
<a id="pl.305.27"></a><var>305.27</var>service district, may be subject to the charges imposed by the city on the special service <br/>
<a id="pl.305.28"></a><var>305.28</var>district. Other types of property may be included within the boundaries of the special <br/>
<a id="pl.305.29"></a><var>305.29</var>service district but are not subject to the levies or charges imposed by the city on the <br/>
<a id="pl.305.30"></a><var>305.30</var>special service district. If 50 percent or more of the estimated market value of a parcel of <br/>
<a id="pl.305.31"></a><var>305.31</var>property is classified under section 
         <statute_ref>273.13</statute_ref> as commercial, industrial, or vacant land zoned <br/>
<a id="pl.305.32"></a><var>305.32</var>or designated on a land use plan for commercial or industrial use, or public utility for the <br/>
<a id="pl.305.33"></a><var>305.33</var>current assessment year, then the entire taxable market value of the property is subject to a <br/>
<a id="pl.305.34"></a><var>305.34</var>service charge based on net tax capacity for purposes of sections 
         <statute_ref>428A.01</statute_ref> to 
         <statute_ref>428A.10</statute_ref>. <br/>
<a id="pl.305.35"></a><var>305.35</var>The ordinance shall describe with particularity the area within the city to be included in <br/>
<a id="pl.306.1"></a><var>306.1</var>the district and the special services to be furnished in the district. The ordinance may not <br/>
<a id="pl.306.2"></a><var>306.2</var>be adopted until after a public hearing has been held on the question. Notice of the hearing <br/>
<a id="pl.306.3"></a><var>306.3</var>shall include the time and place of hearing, a map showing the boundaries of the proposed <br/>
<a id="pl.306.4"></a><var>306.4</var>district, and a statement that all persons owning property in the proposed district that <br/>
<a id="pl.306.5"></a><var>306.5</var>would be subject to a service charge will be given opportunity to be heard at the hearing. <br/>
<a id="pl.306.6"></a><var>306.6</var>Within 30 days after adoption of the ordinance under this subdivision, the governing body <br/>
<a id="pl.306.7"></a><var>306.7</var>shall send a copy of the ordinance to the commissioner of revenue.<br/>
<br/>
<a id="bill.12.68.0"></a><a id="pl.306.8"></a><var>306.8</var>    Sec. 68. Minnesota Statutes 2012, section 430.102, subdivision 2, is amended to read:<br/>
<a id="pl.306.9"></a><var>306.9</var>    Subd. 2. <b>Council approval; special tax levy limitation.</b> The council shall receive <br/>
<a id="pl.306.10"></a><var>306.10</var>and consider the estimate required in subdivision 1 and the items of cost after notice and <br/>
<a id="pl.306.11"></a><var>306.11</var>hearing before it or its appropriate committee as it considers necessary or expedient, and <br/>
<a id="pl.306.12"></a><var>306.12</var>shall approve the estimate, with necessary amendments. The amounts of each item of cost <br/>
<a id="pl.306.13"></a><var>306.13</var>estimated are then appropriated to operate, maintain, and improve the pedestrian mall <br/>
<a id="pl.306.14"></a><var>306.14</var>during the next fiscal year. The amount of the special tax to be charged under subdivision <br/>
<a id="pl.306.15"></a><var>306.15</var>1, clause (3), must not, however, exceed 0.12089 percent of estimated market value of <br/>
<a id="pl.306.16"></a><var>306.16</var>taxable property in the district. The council shall make any necessary adjustment in costs of <br/>
<a id="pl.306.17"></a><var>306.17</var>operating and maintaining the district to keep the amount of the tax within this limitation.<br/>
<br/>
<a id="bill.12.69.0"></a><a id="pl.306.18"></a><var>306.18</var>    Sec. 69. Minnesota Statutes 2012, section 447.10, is amended to read:<br/>
<a id="pl.306.19"></a><var>306.19</var><b>447.10 TAX LEVY FOR OPERATING AND MAINTAINING HOSPITAL.</b><br/>
<a id="pl.306.20"></a><var>306.20</var>The governing body of a city of the first class owning a hospital may annually levy <br/>
<a id="pl.306.21"></a><var>306.21</var>a tax to operate and maintain the hospital. The tax must not exceed 0.00806 percent of <br/>
<a id="pl.306.22"></a><var>306.22</var>taxable estimated market value.<br/>
<br/>
<a id="bill.12.70.0"></a><a id="pl.306.23"></a><var>306.23</var>    Sec. 70. Minnesota Statutes 2012, section 450.19, is amended to read:<br/>
<a id="pl.306.24"></a><var>306.24</var><b>450.19 TOURIST CAMPING GROUNDS.</b><br/>
<a id="pl.306.25"></a><var>306.25</var>A home rule charter or statutory city or town may establish and maintain public <br/>
<a id="pl.306.26"></a><var>306.26</var>tourist camping grounds. The governing body thereof may acquire by lease, purchase, or <br/>
<a id="pl.306.27"></a><var>306.27</var>gift, suitable lands located either within or without the corporate limits for use as public <br/>
<a id="pl.306.28"></a><var>306.28</var>tourist camping grounds and provide for the equipment, operation, and maintenance <br/>
<a id="pl.306.29"></a><var>306.29</var>of the same. The amount that may be expended for the maintenance, improvement, or <br/>
<a id="pl.306.30"></a><var>306.30</var>operation of tourist camping grounds shall not exceed, in any year, a sum equal to 0.00806 <br/>
<a id="pl.306.31"></a><var>306.31</var>percent of taxable estimated market value.<br/>
<br/>
<a id="bill.12.71.0"></a><a id="pl.307.1"></a><var>307.1</var>    Sec. 71. Minnesota Statutes 2012, section 450.25, is amended to read:<br/>
<a id="pl.307.2"></a><var>307.2</var><b>450.25 MUSEUM, GALLERY, OR SCHOOL OF ARTS OR CRAFTS; TAX </b><br/>
<a id="pl.307.3"></a><var>307.3</var><b>LEVY.</b><br/>
<a id="pl.307.4"></a><var>307.4</var>After the acquisition of any museum, gallery, or school of arts or crafts, the board <br/>
<a id="pl.307.5"></a><var>307.5</var>of park commissioners of the city in which it is located shall cause to be included in the <br/>
<a id="pl.307.6"></a><var>307.6</var>annual tax levy upon all the taxable property of the county in which the museum, gallery, <br/>
<a id="pl.307.7"></a><var>307.7</var>or school of arts or crafts is located, a tax of 0.00846 percent of estimated market value. <br/>
<a id="pl.307.8"></a><var>307.8</var>The board shall certify the levy to the county auditor and it shall be added to, and collected <br/>
<a id="pl.307.9"></a><var>307.9</var>with and as part of, the general, real, and personal property taxes, with like penalties and <br/>
<a id="pl.307.10"></a><var>307.10</var>interest, in case of nonpayment and default, and all provisions of law in respect to the <br/>
<a id="pl.307.11"></a><var>307.11</var>levy, collection, and enforcement of other taxes shall, so far as applicable, be followed in <br/>
<a id="pl.307.12"></a><var>307.12</var>respect of these taxes. All of these taxes, penalties, and interest, when collected, shall be <br/>
<a id="pl.307.13"></a><var>307.13</var>paid to the city treasurer of the city in which is located the museum, gallery, or school <br/>
<a id="pl.307.14"></a><var>307.14</var>of arts or crafts and credited to a fund to be known as the park museum fund, and shall <br/>
<a id="pl.307.15"></a><var>307.15</var>be used only for the purposes specified in sections 
         <statute_ref>450.23</statute_ref> to 
         <statute_ref>450.25</statute_ref>. Any part of the <br/>
<a id="pl.307.16"></a><var>307.16</var>proceeds of the levy not expended for the purposes specified in section 
         <statute_ref>450.24</statute_ref> may be <br/>
<a id="pl.307.17"></a><var>307.17</var>used for the erection of new buildings for the same purposes.<br/>
<br/>
<a id="bill.12.72.0"></a><a id="pl.307.18"></a><var>307.18</var>    Sec. 72. Minnesota Statutes 2012, section 458A.10, is amended to read:<br/>
<a id="pl.307.19"></a><var>307.19</var><b>458A.10 PROPERTY TAX.</b><br/>
<a id="pl.307.20"></a><var>307.20</var>The commission shall annually levy a tax not to exceed 0.12089 percent of estimated <br/>
<a id="pl.307.21"></a><var>307.21</var>market value on all the taxable property in the transit area at a rate sufficient to produce <br/>
<a id="pl.307.22"></a><var>307.22</var>an amount necessary for the purposes of sections 
         <statute_ref>458A.01</statute_ref> to 
         <statute_ref>458A.15</statute_ref>, other than the <br/>
<a id="pl.307.23"></a><var>307.23</var>payment of principal and interest due on any revenue bonds issued pursuant to section <br/>
<statute_ref><a id="pl.307.24"></a><var>307.24</var>458A.05
         </statute_ref>. Property taxes levied under this section shall be certified by the commission to <br/>
<a id="pl.307.25"></a><var>307.25</var>the county auditors of the transit area, extended, assessed, and collected in the manner <br/>
<a id="pl.307.26"></a><var>307.26</var>provided by law for the property taxes levied by the governing bodies of cities. The <br/>
<a id="pl.307.27"></a><var>307.27</var>proceeds of the taxes levied under this section shall be remitted by the respective county <br/>
<a id="pl.307.28"></a><var>307.28</var>treasurers to the treasurer of the commission, who shall credit the same to the funds of <br/>
<a id="pl.307.29"></a><var>307.29</var>the commission for use for the purposes of sections 
         <statute_ref>458A.01</statute_ref> to 
         <statute_ref>458A.15</statute_ref> subject to any <br/>
<a id="pl.307.30"></a><var>307.30</var>applicable pledges or limitations on account of tax anticipation certificates or other <br/>
<a id="pl.307.31"></a><var>307.31</var>specific purposes. At any time after making a tax levy under this section and certifying <br/>
<a id="pl.307.32"></a><var>307.32</var>it to the county auditors, the commission may issue general obligation certificates of <br/>
<a id="pl.307.33"></a><var>307.33</var>indebtedness in anticipation of the collection of the taxes as provided by section 
         <statute_ref>412.261</statute_ref>.<br/>
<br/>
<a id="bill.12.73.0"></a><a id="pl.307.34"></a><var>307.34</var>    Sec. 73. Minnesota Statutes 2012, section 458A.31, subdivision 1, is amended to read:<br/>
<a id="pl.308.1"></a><var>308.1</var>    Subdivision 1. <b>Levy limit.</b> Notwithstanding anything to the contrary contained in <br/>
<a id="pl.308.2"></a><var>308.2</var>the charter of the city of Duluth, any ordinance thereof, or any statute applicable thereto, <br/>
<a id="pl.308.3"></a><var>308.3</var>limiting the amount levied in any one year for general or special purposes, the city council <br/>
<a id="pl.308.4"></a><var>308.4</var>of the city of Duluth shall each year levy a tax in an amount not to exceed 0.07253 <br/>
<a id="pl.308.5"></a><var>308.5</var>percent of taxable estimated market value, by ordinance. An ordinance fixing the levy <br/>
<a id="pl.308.6"></a><var>308.6</var>shall take effect immediately upon its passage and approval. The proceeds of the levy <br/>
<a id="pl.308.7"></a><var>308.7</var>shall be paid into the city treasury and deposited in the operating fund provided for in <br/>
<a id="pl.308.8"></a><var>308.8</var>section 
         <statute_ref>458A.24, subdivision 3</statute_ref>.<br/>
<br/>
<a id="bill.12.74.0"></a><a id="pl.308.9"></a><var>308.9</var>    Sec. 74. Minnesota Statutes 2012, section 465.04, is amended to read:<br/>
<a id="pl.308.10"></a><var>308.10</var><b>465.04 ACCEPTANCE OF GIFTS.</b><br/>
<a id="pl.308.11"></a><var>308.11</var>Cities of the second, third, or fourth class, having at any time a an estimated<br/>
<a id="pl.308.12"></a><var>308.12</var> market value of not more than $41,000,000, exclusive of money and credits, as officially <br/>
<a id="pl.308.13"></a><var>308.13</var>equalized by the commissioner of revenue, either under home rule charter or under the <br/>
<a id="pl.308.14"></a><var>308.14</var>laws of this state, in addition to all other powers possessed by them, hereby are authorized <br/>
<a id="pl.308.15"></a><var>308.15</var>and empowered to receive and accept gifts and donations for the use and benefit of <br/>
<a id="pl.308.16"></a><var>308.16</var>such cities and the inhabitants thereof upon terms and conditions to be approved by the <br/>
<a id="pl.308.17"></a><var>308.17</var>governing bodies of such cities; and such cities are authorized to comply with and perform <br/>
<a id="pl.308.18"></a><var>308.18</var>such terms and conditions, which may include payment to the donor or donors of interest <br/>
<a id="pl.308.19"></a><var>308.19</var>on the value of the gift at not exceeding five percent per annum payable annually or <br/>
<a id="pl.308.20"></a><var>308.20</var>semiannually, during the remainder of the natural life or lives of such donor or donors.<br/>
<br/>
<a id="bill.12.75.0"></a><a id="pl.308.21"></a><var>308.21</var>    Sec. 75. Minnesota Statutes 2012, section 469.033, subdivision 6, is amended to read:<br/>
<a id="pl.308.22"></a><var>308.22</var>    Subd. 6. <b>Operation area as taxing district, special tax.</b> All of the territory included <br/>
<a id="pl.308.23"></a><var>308.23</var>within the area of operation of any authority shall constitute a taxing district for the <br/>
<a id="pl.308.24"></a><var>308.24</var>purpose of levying and collecting special benefit taxes as provided in this subdivision. All <br/>
<a id="pl.308.25"></a><var>308.25</var>of the taxable property, both real and personal, within that taxing district shall be deemed <br/>
<a id="pl.308.26"></a><var>308.26</var>to be benefited by projects to the extent of the special taxes levied under this subdivision. <br/>
<a id="pl.308.27"></a><var>308.27</var>Subject to the consent by resolution of the governing body of the city in and for which <br/>
<a id="pl.308.28"></a><var>308.28</var>it was created, an authority may levy a tax upon all taxable property within that taxing <br/>
<a id="pl.308.29"></a><var>308.29</var>district. The tax shall be extended, spread, and included with and as a part of the general <br/>
<a id="pl.308.30"></a><var>308.30</var>taxes for state, county, and municipal purposes by the county auditor, to be collected and <br/>
<a id="pl.308.31"></a><var>308.31</var>enforced therewith, together with the penalty, interest, and costs. As the tax, including any <br/>
<a id="pl.308.32"></a><var>308.32</var>penalties, interest, and costs, is collected by the county treasurer it shall be accumulated <br/>
<a id="pl.308.33"></a><var>308.33</var>and kept in a separate fund to be known as the "housing and redevelopment project fund." <br/>
<a id="pl.308.34"></a><var>308.34</var>The money in the fund shall be turned over to the authority at the same time and in the same <br/>
<a id="pl.309.1"></a><var>309.1</var>manner that the tax collections for the city are turned over to the city, and shall be expended <br/>
<a id="pl.309.2"></a><var>309.2</var>only for the purposes of sections 
         <statute_ref>469.001</statute_ref> to 
         <statute_ref>469.047</statute_ref>. It shall be paid out upon vouchers <br/>
<a id="pl.309.3"></a><var>309.3</var>signed by the chair of the authority or an authorized representative. The amount of the <br/>
<a id="pl.309.4"></a><var>309.4</var>levy shall be an amount approved by the governing body of the city, but shall not exceed <br/>
<a id="pl.309.5"></a><var>309.5</var>0.0185 percent of taxable estimated market value. The authority shall each year formulate <br/>
<a id="pl.309.6"></a><var>309.6</var>and file a budget in accordance with the budget procedure of the city in the same manner as <br/>
<a id="pl.309.7"></a><var>309.7</var>required of executive departments of the city or, if no budgets are required to be filed, by <br/>
<a id="pl.309.8"></a><var>309.8</var>August 1. The amount of the tax levy for the following year shall be based on that budget.<br/>
<br/>
<a id="bill.12.76.0"></a><a id="pl.309.9"></a><var>309.9</var>    Sec. 76. Minnesota Statutes 2012, section 469.034, subdivision 2, is amended to read:<br/>
<a id="pl.309.10"></a><var>309.10</var>    Subd. 2. <b>General obligation revenue bonds.</b> (a) An authority may pledge the <br/>
<a id="pl.309.11"></a><var>309.11</var>general obligation of the general jurisdiction governmental unit as additional security for <br/>
<a id="pl.309.12"></a><var>309.12</var>bonds payable from income or revenues of the project or the authority. The authority <br/>
<a id="pl.309.13"></a><var>309.13</var>must find that the pledged revenues will equal or exceed 110 percent of the principal and <br/>
<a id="pl.309.14"></a><var>309.14</var>interest due on the bonds for each year. The proceeds of the bonds must be used for a <br/>
<a id="pl.309.15"></a><var>309.15</var>qualified housing development project or projects. The obligations must be issued and <br/>
<a id="pl.309.16"></a><var>309.16</var>sold in the manner and following the procedures provided by chapter 475, except the <br/>
<a id="pl.309.17"></a><var>309.17</var>obligations are not subject to approval by the electors, and the maturities may extend to <br/>
<a id="pl.309.18"></a><var>309.18</var>not more than 35 years for obligations sold to finance housing for the elderly and 40 years <br/>
<a id="pl.309.19"></a><var>309.19</var>for other obligations issued under this subdivision. The authority is the municipality for <br/>
<a id="pl.309.20"></a><var>309.20</var>purposes of chapter 475.<br/>
<a id="pl.309.21"></a><var>309.21</var>(b) The principal amount of the issue must be approved by the governing body of <br/>
<a id="pl.309.22"></a><var>309.22</var>the general jurisdiction governmental unit whose general obligation is pledged. Public <br/>
<a id="pl.309.23"></a><var>309.23</var>hearings must be held on issuance of the obligations by both the authority and the general <br/>
<a id="pl.309.24"></a><var>309.24</var>jurisdiction governmental unit. The hearings must be held at least 15 days, but not more <br/>
<a id="pl.309.25"></a><var>309.25</var>than 120 days, before the sale of the obligations.<br/>
<a id="pl.309.26"></a><var>309.26</var>(c) The maximum amount of general obligation bonds that may be issued and <br/>
<a id="pl.309.27"></a><var>309.27</var>outstanding under this section equals the greater of (1) one-half of one percent of the <br/>
<a id="pl.309.28"></a><var>309.28</var>taxable estimated market value of the general jurisdiction governmental unit whose <br/>
<a id="pl.309.29"></a><var>309.29</var>general obligation is pledged, or (2) $3,000,000. In the case of county or multicounty <br/>
<a id="pl.309.30"></a><var>309.30</var>general obligation bonds, the outstanding general obligation bonds of all cities in the <br/>
<a id="pl.309.31"></a><var>309.31</var>county or counties issued under this subdivision must be added in calculating the limit <br/>
<a id="pl.309.32"></a><var>309.32</var>under clause (1).<br/>
<a id="pl.309.33"></a><var>309.33</var>(d) "General jurisdiction governmental unit" means the city in which the housing <br/>
<a id="pl.309.34"></a><var>309.34</var>development project is located. In the case of a county or multicounty authority, the <br/>
<a id="pl.309.35"></a><var>309.35</var>county or counties may act as the general jurisdiction governmental unit. In the case of <br/>
<a id="pl.310.1"></a><var>310.1</var>a multicounty authority, the pledge of the general obligation is a pledge of a tax on the <br/>
<a id="pl.310.2"></a><var>310.2</var>taxable property in each of the counties.<br/>
<a id="pl.310.3"></a><var>310.3</var>(e) "Qualified housing development project" means a housing development project <br/>
<a id="pl.310.4"></a><var>310.4</var>providing housing either for the elderly or for individuals and families with incomes not <br/>
<a id="pl.310.5"></a><var>310.5</var>greater than 80 percent of the median family income as estimated by the United States <br/>
<a id="pl.310.6"></a><var>310.6</var>Department of Housing and Urban Development for the standard metropolitan statistical <br/>
<a id="pl.310.7"></a><var>310.7</var>area or the nonmetropolitan county in which the project is located. The project must be <br/>
<a id="pl.310.8"></a><var>310.8</var>owned for the term of the bonds either by the authority or by a limited partnership or other <br/>
<a id="pl.310.9"></a><var>310.9</var>entity in which the authority or another entity under the sole control of the authority is <br/>
<a id="pl.310.10"></a><var>310.10</var>the sole general partner and the partnership or other entity must receive (1) an allocation <br/>
<a id="pl.310.11"></a><var>310.11</var>from the Department of Management and Budget or an entitlement issuer of tax-exempt <br/>
<a id="pl.310.12"></a><var>310.12</var>bonding authority for the project and a preliminary determination by the Minnesota <br/>
<a id="pl.310.13"></a><var>310.13</var>Housing Finance Agency or the applicable suballocator of tax credits that the project <br/>
<a id="pl.310.14"></a><var>310.14</var>will qualify for four percent low-income housing tax credits or (2) a reservation of nine <br/>
<a id="pl.310.15"></a><var>310.15</var>percent low-income housing tax credits from the Minnesota Housing Finance Agency or a <br/>
<a id="pl.310.16"></a><var>310.16</var>suballocator of tax credits for the project. A qualified housing development project may <br/>
<a id="pl.310.17"></a><var>310.17</var>admit nonelderly individuals and families with higher incomes if:<br/>
<a id="pl.310.18"></a><var>310.18</var>(1) three years have passed since initial occupancy;<br/>
<a id="pl.310.19"></a><var>310.19</var>(2) the authority finds the project is experiencing unanticipated vacancies resulting in <br/>
<a id="pl.310.20"></a><var>310.20</var>insufficient revenues, because of changes in population or other unforeseen circumstances <br/>
<a id="pl.310.21"></a><var>310.21</var>that occurred after the initial finding of adequate revenues; and<br/>
<a id="pl.310.22"></a><var>310.22</var>(3) the authority finds a tax levy or payment from general assets of the general <br/>
<a id="pl.310.23"></a><var>310.23</var>jurisdiction governmental unit will be necessary to pay debt service on the bonds if higher <br/>
<a id="pl.310.24"></a><var>310.24</var>income individuals or families are not admitted.<br/>
<a id="pl.310.25"></a><var>310.25</var>(f) The authority may issue bonds to refund bonds issued under this subdivision in <br/>
<a id="pl.310.26"></a><var>310.26</var>accordance with section 
         <statute_ref>475.67</statute_ref>. The finding of the adequacy of pledged revenues required <br/>
<a id="pl.310.27"></a><var>310.27</var>by paragraph (a) and the public hearing required by paragraph (b) shall not apply to the <br/>
<a id="pl.310.28"></a><var>310.28</var>issuance of refunding bonds. This paragraph applies to refunding bonds issued on and <br/>
<a id="pl.310.29"></a><var>310.29</var>after July 1, 1992.<br/>
<br/>
<a id="bill.12.77.0"></a><a id="pl.310.30"></a><var>310.30</var>    Sec. 77. Minnesota Statutes 2012, section 469.053, subdivision 4, is amended to read:<br/>
<a id="pl.310.31"></a><var>310.31</var>    Subd. 4. <b>Mandatory city levy.</b> A city shall, at the request of the port authority, levy <br/>
<a id="pl.310.32"></a><var>310.32</var>a tax in any year for the benefit of the port authority. The tax must not exceed 0.01813 <br/>
<a id="pl.310.33"></a><var>310.33</var>percent of taxable estimated market value. The amount levied must be paid by the city <br/>
<a id="pl.310.34"></a><var>310.34</var>treasurer to the treasurer of the port authority, to be spent by the authority.<br/>
<br/>
<a id="bill.12.78.0"></a><a id="pl.311.1"></a><var>311.1</var>    Sec. 78. Minnesota Statutes 2012, section 469.053, subdivision 4a, is amended to read:<br/>
<a id="pl.311.2"></a><var>311.2</var>    Subd. 4a. <b>Seaway port authority levy.</b> A levy made under this subdivision shall <br/>
<a id="pl.311.3"></a><var>311.3</var>replace the mandatory city levy under subdivision 4. A seaway port authority is a special <br/>
<a id="pl.311.4"></a><var>311.4</var>taxing district under section 
         <statute_ref>275.066</statute_ref> and may levy a tax in any year for the benefit of the <br/>
<a id="pl.311.5"></a><var>311.5</var>seaway port authority. The tax must not exceed 0.01813 percent of taxable estimated<br/>
<a id="pl.311.6"></a><var>311.6</var> market value. The county auditor shall distribute the proceeds of the property tax levy to <br/>
<a id="pl.311.7"></a><var>311.7</var>the seaway port authority.<br/>
<br/>
<a id="bill.12.79.0"></a><a id="pl.311.8"></a><var>311.8</var>    Sec. 79. Minnesota Statutes 2012, section 469.053, subdivision 6, is amended to read:<br/>
<a id="pl.311.9"></a><var>311.9</var>    Subd. 6. <b>Discretionary city levy.</b> Upon request of a port authority, the port <br/>
<a id="pl.311.10"></a><var>311.10</var>authority's city may levy a tax to be spent by and for its port authority. The tax must <br/>
<a id="pl.311.11"></a><var>311.11</var>enable the port authority to carry out efficiently and in the public interest sections 
         <statute_ref>469.048</statute_ref> <br/>
<a id="pl.311.12"></a><var>311.12</var>to 
         <statute_ref>469.068</statute_ref> to create and develop industrial development districts. The levy must not be <br/>
<a id="pl.311.13"></a><var>311.13</var>more than 0.00282 percent of taxable estimated market value. The county treasurer shall <br/>
<a id="pl.311.14"></a><var>311.14</var>pay the proceeds of the tax to the port authority treasurer. The money may be spent by <br/>
<a id="pl.311.15"></a><var>311.15</var>the authority in performance of its duties to create and develop industrial development <br/>
<a id="pl.311.16"></a><var>311.16</var>districts. In spending the money the authority must judge what best serves the public <br/>
<a id="pl.311.17"></a><var>311.17</var>interest. The levy in this subdivision is in addition to the levy in subdivision 4.<br/>
<br/>
<a id="bill.12.80.0"></a><a id="pl.311.18"></a><var>311.18</var>    Sec. 80. Minnesota Statutes 2012, section 469.107, subdivision 1, is amended to read:<br/>
<a id="pl.311.19"></a><var>311.19</var>    Subdivision 1. <b>City tax levy.</b> A city may, at the request of the authority, levy a tax in <br/>
<a id="pl.311.20"></a><var>311.20</var>any year for the benefit of the authority. The tax must be not more than 0.01813 percent of <br/>
<a id="pl.311.21"></a><var>311.21</var>taxable estimated market value. The amount levied must be paid by the city treasurer to <br/>
<a id="pl.311.22"></a><var>311.22</var>the treasurer of the authority, to be spent by the authority.<br/>
<br/>
<a id="bill.12.81.0"></a><a id="pl.311.23"></a><var>311.23</var>    Sec. 81. Minnesota Statutes 2012, section 469.180, subdivision 2, is amended to read:<br/>
<a id="pl.311.24"></a><var>311.24</var>    Subd. 2. <b>Tax levies.</b> Notwithstanding any law, the county board of any county may <br/>
<a id="pl.311.25"></a><var>311.25</var>appropriate from the general revenue fund a sum not to exceed a county levy of 0.00080 <br/>
<a id="pl.311.26"></a><var>311.26</var>percent of taxable estimated market value to carry out the purposes of this section.<br/>
<br/>
<a id="bill.12.82.0"></a><a id="pl.311.27"></a><var>311.27</var>    Sec. 82. Minnesota Statutes 2012, section 469.187, is amended to read:<br/>
<a id="pl.311.28"></a><var>311.28</var><b>469.187 FIRST CLASS CITY SPENDING FOR PUBLICITY; PUBLICITY </b><br/>
<a id="pl.311.29"></a><var>311.29</var><b>BOARD.</b><br/>
<a id="pl.311.30"></a><var>311.30</var>Any city of the first class may expend money for city publicity purposes. The city may <br/>
<a id="pl.311.31"></a><var>311.31</var>levy a tax, not exceeding 0.00080 percent of taxable estimated market value. The proceeds <br/>
<a id="pl.311.32"></a><var>311.32</var>of the levy shall be expended in the manner and for the city publicity purposes the council <br/>
<a id="pl.312.1"></a><var>312.1</var>directs. The council may establish and provide for a publicity board or bureau to administer <br/>
<a id="pl.312.2"></a><var>312.2</var>the fund, subject to the conditions and limitations the council prescribes by ordinance.<br/>
<br/>
<a id="bill.12.83.0"></a><a id="pl.312.3"></a><var>312.3</var>    Sec. 83. Minnesota Statutes 2012, section 469.206, is amended to read:<br/>
<a id="pl.312.4"></a><var>312.4</var><b>469.206 HAZARDOUS PROPERTY PENALTY.</b><br/>
<a id="pl.312.5"></a><var>312.5</var>A city may assess a penalty up to one percent of the estimated market value of <br/>
<a id="pl.312.6"></a><var>312.6</var>real property, including any building located within the city that the city determines to <br/>
<a id="pl.312.7"></a><var>312.7</var>be hazardous as defined in section 
         <statute_ref>463.15, subdivision 3</statute_ref>. The city shall send a written <br/>
<a id="pl.312.8"></a><var>312.8</var>notice to the address to which the property tax statement is sent at least 90 days before it <br/>
<a id="pl.312.9"></a><var>312.9</var>may assess the penalty. If the owner of the property has not paid the penalty or fixed the <br/>
<a id="pl.312.10"></a><var>312.10</var>property within 90 days after receiving notice of the penalty, the penalty is considered <br/>
<a id="pl.312.11"></a><var>312.11</var>delinquent and is increased by 25 percent each 60 days the penalty is not paid and the <br/>
<a id="pl.312.12"></a><var>312.12</var>property remains hazardous. For the purposes of this section, a penalty that is delinquent <br/>
<a id="pl.312.13"></a><var>312.13</var>is considered a delinquent property tax and subject to chapters 279, 280, and 281, in the <br/>
<a id="pl.312.14"></a><var>312.14</var>same manner as delinquent property taxes.<br/>
<br/>
<a id="bill.12.84.0"></a><a id="pl.312.15"></a><var>312.15</var>    Sec. 84. Minnesota Statutes 2012, section 471.24, is amended to read:<br/>
<a id="pl.312.16"></a><var>312.16</var><b>471.24 TOWNS, STATUTORY CITIES; JOINT MAINTENANCE OF </b><br/>
<a id="pl.312.17"></a><var>312.17</var><b>CEMETERY.</b><br/>
<a id="pl.312.18"></a><var>312.18</var>Where a statutory city or town owns and maintains an established cemetery or burial <br/>
<a id="pl.312.19"></a><var>312.19</var>ground, either within or without the municipal limits, the statutory city or town may, by <br/>
<a id="pl.312.20"></a><var>312.20</var>mutual agreement with contiguous statutory cities and towns, each having a an estimated<br/>
<a id="pl.312.21"></a><var>312.21</var> market value of not less than $2,000,000, join together in the maintenance of such public <br/>
<a id="pl.312.22"></a><var>312.22</var>cemetery or burial ground for the use of the inhabitants of each of such municipalities; and <br/>
<a id="pl.312.23"></a><var>312.23</var>each such municipality is hereby authorized, by action of its council or governing body, <br/>
<a id="pl.312.24"></a><var>312.24</var>to levy a tax or make an appropriation for the annual support and maintenance of such <br/>
<a id="pl.312.25"></a><var>312.25</var>cemetery or burial ground; provided, the amount thus appropriated by each municipality <br/>
<a id="pl.312.26"></a><var>312.26</var>shall not exceed a total of $10,000 in any one year.<br/>
<br/>
<a id="bill.12.85.0"></a><a id="pl.312.27"></a><var>312.27</var>    Sec. 85. Minnesota Statutes 2012, section 471.571, subdivision 1, is amended to read:<br/>
<a id="pl.312.28"></a><var>312.28</var>    Subdivision 1. <b>Application.</b> This section applies to each city in which the net tax <br/>
<a id="pl.312.29"></a><var>312.29</var>capacity of real and personal property consists in part of iron ore or lands containing <br/>
<a id="pl.312.30"></a><var>312.30</var>taconite or semitaconite and in which the total taxable estimated market value of real <br/>
<a id="pl.312.31"></a><var>312.31</var>and personal property exceeds $2,500,000.<br/>
<br/>
<a id="bill.12.86.0"></a><a id="pl.312.32"></a><var>312.32</var>    Sec. 86. Minnesota Statutes 2012, section 471.571, subdivision 2, is amended to read:<br/>
<a id="pl.313.1"></a><var>313.1</var>    Subd. 2. <b>Creation of fund, tax levy.</b> The governing body of the city may create a <br/>
<a id="pl.313.2"></a><var>313.2</var>permanent improvement and replacement fund to be maintained by an annual tax levy. <br/>
<a id="pl.313.3"></a><var>313.3</var>The governing body may levy a tax in excess of any charter limitation for the support of <br/>
<a id="pl.313.4"></a><var>313.4</var>the permanent improvement and replacement fund, but not exceeding the following:<br/>
<a id="pl.313.5"></a><var>313.5</var>(a) in cities having a population of not more than 500 inhabitants, the lesser of $20 <br/>
<a id="pl.313.6"></a><var>313.6</var>per capita or 0.08059 percent of taxable estimated market value;<br/>
<a id="pl.313.7"></a><var>313.7</var>(b) in cities having a population of more than 500 and less than 2500 2,500, the <br/>
<a id="pl.313.8"></a><var>313.8</var>greater of $12.50 per capita or $10,000 but not exceeding 0.08059 percent of taxable<br/>
<a id="pl.313.9"></a><var>313.9</var> estimated market value;<br/>
<a id="pl.313.10"></a><var>313.10</var>(c) in cities having a population of more than 2500 2,500 or more inhabitants, <br/>
<a id="pl.313.11"></a><var>313.11</var>the greater of $10 per capita or $31,500 but not exceeding 0.08059 percent of taxable<br/>
<a id="pl.313.12"></a><var>313.12</var> estimated market value.<br/>
<br/>
<a id="bill.12.87.0"></a><a id="pl.313.13"></a><var>313.13</var>    Sec. 87. Minnesota Statutes 2012, section 471.73, is amended to read:<br/>
<a id="pl.313.14"></a><var>313.14</var><b>471.73 ACCEPTANCE OF PROVISIONS.</b><br/>
<a id="pl.313.15"></a><var>313.15</var>In the case of any city within the class specified in section
<statute_ref>471.72</statute_ref> having a an <br/>
<a id="pl.313.16"></a><var>313.16</var>estimated market value, as defined in section 
<statute_ref>471.72</statute_ref>, in excess of $37,000,000; and in the <br/>
<a id="pl.313.17"></a><var>313.17</var>case of any statutory city within such class having a an estimated market value, as defined <br/>
<a id="pl.313.18"></a><var>313.18</var>in section 
<statute_ref>471.72</statute_ref>, of less than $5,000,000; and in the case of any statutory city within such <br/>
<a id="pl.313.19"></a><var>313.19</var>class which is governed by Laws 1933, chapter 211, or Laws 1937, chapter 356; and in <br/>
<a id="pl.313.20"></a><var>313.20</var>the case of any statutory city within such class which is governed by Laws 1929, chapter <br/>
<a id="pl.313.21"></a><var>313.21</var>208, and has a an estimated market value of less than $83,000,000; and in the case of <br/>
<a id="pl.313.22"></a><var>313.22</var>any school district within such class having a an estimated market value, as defined in <br/>
<a id="pl.313.23"></a><var>313.23</var>section 
<statute_ref>471.72</statute_ref>, of more than $54,000,000; and in the case of all towns within said class; <br/>
<a id="pl.313.24"></a><var>313.24</var>sections 
         <statute_ref>471.71</statute_ref> to 
         <statute_ref>471.83</statute_ref> apply only if the governing body of the city or statutory city, the <br/>
<a id="pl.313.25"></a><var>313.25</var>board of the school district, or the town board of the town shall have adopted a resolution <br/>
<a id="pl.313.26"></a><var>313.26</var>determining to issue bonds under the provisions of sections 
         <statute_ref>471.71</statute_ref> to 
         <statute_ref>471.83</statute_ref> or to go <br/>
<a id="pl.313.27"></a><var>313.27</var>upon a cash basis in accordance with the provisions thereof.<br/>
<br/>
<a id="bill.12.88.0"></a><a id="pl.313.28"></a><var>313.28</var>    Sec. 88. Minnesota Statutes 2012, section 473.325, subdivision 2, is amended to read:<br/>
<a id="pl.313.29"></a><var>313.29</var>    Subd. 2. <b>Chapter 475 applies; exceptions.</b> The Metropolitan Council shall sell and <br/>
<a id="pl.313.30"></a><var>313.30</var>issue the bonds in the manner provided in chapter 475, and shall have the same powers <br/>
<a id="pl.313.31"></a><var>313.31</var>and duties as a municipality issuing bonds under that law, except that the approval of a <br/>
<a id="pl.313.32"></a><var>313.32</var>majority of the electors shall not be required and the net debt limitations shall not apply. <br/>
<a id="pl.313.33"></a><var>313.33</var>The terms of each series of bonds shall be fixed so that the amount of principal and interest <br/>
<a id="pl.313.34"></a><var>313.34</var>on all outstanding and undischarged bonds, together with the bonds proposed to be issued, <br/>
<a id="pl.314.1"></a><var>314.1</var>due in any year shall not exceed 0.01209 percent of estimated market value of all taxable <br/>
<a id="pl.314.2"></a><var>314.2</var>property in the metropolitan area as last finally equalized prior to a proposed issue. The <br/>
<a id="pl.314.3"></a><var>314.3</var>bonds shall be secured in accordance with section 
         <statute_ref>475.61, subdivision 1</statute_ref>, and any taxes <br/>
<a id="pl.314.4"></a><var>314.4</var>required for their payment shall be levied by the council, shall not affect the amount or rate <br/>
<a id="pl.314.5"></a><var>314.5</var>of taxes which may be levied by the council for other purposes, shall be spread against all <br/>
<a id="pl.314.6"></a><var>314.6</var>taxable property in the metropolitan area and shall not be subject to limitation as to rate or <br/>
<a id="pl.314.7"></a><var>314.7</var>amount. Any taxes certified by the council to the county auditors for collection shall be <br/>
<a id="pl.314.8"></a><var>314.8</var>reduced by the amount received by the council from the commissioner of management and <br/>
<a id="pl.314.9"></a><var>314.9</var>budget or the federal government for the purpose of paying the principal and interest on <br/>
<a id="pl.314.10"></a><var>314.10</var>bonds to which the levy relates. The council shall certify the fact and amount of all money <br/>
<a id="pl.314.11"></a><var>314.11</var>so received to the county auditors, and the auditors shall reduce the levies previously made <br/>
<a id="pl.314.12"></a><var>314.12</var>for the bonds in the manner and to the extent provided in section 
         <statute_ref>475.61, subdivision 3</statute_ref>.<br/>
<br/>
<a id="bill.12.89.0"></a><a id="pl.314.13"></a><var>314.13</var>    Sec. 89. Minnesota Statutes 2012, section 473.629, is amended to read:<br/>
<a id="pl.314.14"></a><var>314.14</var><b>473.629 VALUE OF PROPERTY FOR BOND ISSUES BY SCHOOL </b><br/>
<a id="pl.314.15"></a><var>314.15</var><b>DISTRICTS.</b><br/>
<a id="pl.314.16"></a><var>314.16</var>As to any lands to be detached from any school district under the provisions hereof<br/>
<a id="pl.314.17"></a><var>314.17</var> section 473.625, notwithstanding such prospective the detachment, the estimated market <br/>
<a id="pl.314.18"></a><var>314.18</var>value of such the detached lands and the net tax capacity of taxable properties now located <br/>
<a id="pl.314.19"></a><var>314.19</var>therein or thereon shall be and on the lands on the date of the detachment constitute <br/>
<a id="pl.314.20"></a><var>314.20</var>from and after the date of the enactment hereof a part of the estimated market value of <br/>
<a id="pl.314.21"></a><var>314.21</var>properties upon the basis of which such used to calculate the net debt limit of the school <br/>
<a id="pl.314.22"></a><var>314.22</var>district may issue its bonds,. The value of such the lands for such purpose to be and other <br/>
<a id="pl.314.23"></a><var>314.23</var>taxable properties for purposes of the school district's net debt limit are 33-1/3 percent of <br/>
<a id="pl.314.24"></a><var>314.24</var>the estimated market value thereof as determined and certified by said the assessor to said<br/>
<a id="pl.314.25"></a><var>314.25</var> the school district, and it shall be the duty of such the assessor annually on or before the <br/>
<a id="pl.314.26"></a><var>314.26</var>tenth day of October from and after the passage hereof, to so of each year, shall determine <br/>
<a id="pl.314.27"></a><var>314.27</var>and certify that value; provided, however, that the value of such the detached lands and <br/>
<a id="pl.314.28"></a><var>314.28</var>such taxable properties shall never exceed 20 percent of the estimated market value of <br/>
<a id="pl.314.29"></a><var>314.29</var>all properties constituting and making up the basis aforesaid used to calculate the net <br/>
<a id="pl.314.30"></a><var>314.30</var>debt limit of the school district.<br/>
<br/>
<a id="bill.12.90.0"></a><a id="pl.314.31"></a><var>314.31</var>    Sec. 90. Minnesota Statutes 2012, section 473.661, subdivision 3, is amended to read:<br/>
<a id="pl.314.32"></a><var>314.32</var>    Subd. 3. <b>Levy limit.</b> In any budget certified by the commissioners under this section, <br/>
<a id="pl.314.33"></a><var>314.33</var>the amount included for operation and maintenance shall not exceed an amount which, <br/>
<a id="pl.314.34"></a><var>314.34</var>when extended against the property taxable therefor under section 
         <statute_ref>473.621, subdivision 5</statute_ref>, <br/>
<a id="pl.315.1"></a><var>315.1</var>will require a levy at a rate of 0.00806 percent of estimated market value. Taxes levied by <br/>
<a id="pl.315.2"></a><var>315.2</var>the corporation shall not affect the amount or rate of taxes which may be levied by any other <br/>
<a id="pl.315.3"></a><var>315.3</var>local government unit within the metropolitan area under the provisions of any charter.<br/>
<br/>
<a id="bill.12.91.0"></a><a id="pl.315.4"></a><var>315.4</var>    Sec. 91. Minnesota Statutes 2012, section 473.667, subdivision 9, is amended to read:<br/>
<a id="pl.315.5"></a><var>315.5</var>    Subd. 9. <b>Additional taxes.</b> Nothing herein shall prevent the commission from <br/>
<a id="pl.315.6"></a><var>315.6</var>levying a tax not to exceed 0.00121 percent of estimated market value on taxable property <br/>
<a id="pl.315.7"></a><var>315.7</var>within its taxing jurisdiction, in addition to any levies found necessary for the debt <br/>
<a id="pl.315.8"></a><var>315.8</var>service fund authorized by section 
         <statute_ref>473.671</statute_ref>. Nothing herein shall prevent the levy and <br/>
<a id="pl.315.9"></a><var>315.9</var>appropriation for purposes of the commission of any other tax on property or on any <br/>
<a id="pl.315.10"></a><var>315.10</var>income, transaction, or privilege, when and if authorized by law. All collections of any <br/>
<a id="pl.315.11"></a><var>315.11</var>taxes so levied shall be included in the revenues appropriated for the purposes referred <br/>
<a id="pl.315.12"></a><var>315.12</var>to in this section, unless otherwise provided in the law authorizing the levies; but no <br/>
<a id="pl.315.13"></a><var>315.13</var>covenant as to the continuance or as to the rate and amount of any such levy shall be made <br/>
<a id="pl.315.14"></a><var>315.14</var>with the holders of the commission's bonds unless specifically authorized by law.<br/>
<br/>
<a id="bill.12.92.0"></a><a id="pl.315.15"></a><var>315.15</var>    Sec. 92. Minnesota Statutes 2012, section 473.671, is amended to read:<br/>
<a id="pl.315.16"></a><var>315.16</var><b>473.671 LIMIT OF TAX LEVY.</b><br/>
<a id="pl.315.17"></a><var>315.17</var>The taxes levied against the property of the metropolitan area in any one year shall <br/>
<a id="pl.315.18"></a><var>315.18</var>not exceed 0.00806 percent of taxable estimated market value, exclusive of taxes levied <br/>
<a id="pl.315.19"></a><var>315.19</var>to pay the principal or interest on any bonds or indebtedness of the city issued under <br/>
<a id="pl.315.20"></a><var>315.20</var>Laws 1943, chapter 500, and exclusive of any taxes levied to pay the share of the city for <br/>
<a id="pl.315.21"></a><var>315.21</var>payments on bonded indebtedness of the corporation provided for in Laws 1943, chapter <br/>
<a id="pl.315.22"></a><var>315.22</var>500. The levy of taxes authorized in Laws 1943, chapter 500, shall be in addition to the <br/>
<a id="pl.315.23"></a><var>315.23</var>maximum rate allowed to be levied to defray the cost of government under the provisions <br/>
<a id="pl.315.24"></a><var>315.24</var>of the charter of any city affected by Laws 1943, chapter 500.<br/>
<br/>
<a id="bill.12.93.0"></a><a id="pl.315.25"></a><var>315.25</var>    Sec. 93. Minnesota Statutes 2012, section 473.711, subdivision 2a, is amended to read:<br/>
<a id="pl.315.26"></a><var>315.26</var>    Subd. 2a. <b>Tax levy.</b> (a) The commission may levy a tax on all taxable property in the <br/>
<a id="pl.315.27"></a><var>315.27</var>district as defined in section 
         <statute_ref>473.702</statute_ref> to provide funds for the purposes of sections 
         <statute_ref>473.701</statute_ref> <br/>
<a id="pl.315.28"></a><var>315.28</var>to 
         <statute_ref>473.716</statute_ref>. The tax shall not exceed the property tax levy limitation determined in this <br/>
<a id="pl.315.29"></a><var>315.29</var>subdivision. A participating county may agree to levy an additional tax to be used by the <br/>
<a id="pl.315.30"></a><var>315.30</var>commission for the purposes of sections 
         <statute_ref>473.701</statute_ref> to 
         <statute_ref>473.716</statute_ref> but the sum of the county's and <br/>
<a id="pl.315.31"></a><var>315.31</var>commission's taxes may not exceed the county's proportionate share of the property tax levy <br/>
<a id="pl.315.32"></a><var>315.32</var>limitation determined under this subdivision based on the ratio of its total net tax capacity <br/>
<a id="pl.315.33"></a><var>315.33</var>to the total net tax capacity of the entire district as adjusted by section 
         <statute_ref>270.12, subdivision <br/>
<a id="pl.316.1"></a><var>316.1</var>3
         </statute_ref>. The auditor of each county in the district shall add the amount of the levy made by the <br/>
<a id="pl.316.2"></a><var>316.2</var>district to other taxes of the county for collection by the county treasurer with other taxes. <br/>
<a id="pl.316.3"></a><var>316.3</var>When collected, the county treasurer shall make settlement of the tax with the district in <br/>
<a id="pl.316.4"></a><var>316.4</var>the same manner as other taxes are distributed to political subdivisions. No county shall <br/>
<a id="pl.316.5"></a><var>316.5</var>levy any tax for mosquito, disease vectoring tick, and black gnat (Simuliidae) control <br/>
<a id="pl.316.6"></a><var>316.6</var>except under this section. The levy shall be in addition to other taxes authorized by law.<br/>
<a id="pl.316.7"></a><var>316.7</var>(b) The property tax levied by the Metropolitan Mosquito Control Commission shall <br/>
<a id="pl.316.8"></a><var>316.8</var>not exceed the product of (i) the commission's property tax levy limitation for the previous <br/>
<a id="pl.316.9"></a><var>316.9</var>year determined under this subdivision multiplied by (ii) an index for market valuation <br/>
<a id="pl.316.10"></a><var>316.10</var>changes equal to the total estimated market valuation value of all taxable property for the <br/>
<a id="pl.316.11"></a><var>316.11</var>current tax payable year located within the district plus any area that has been added to the <br/>
<a id="pl.316.12"></a><var>316.12</var>district since the previous year, divided by the total estimated market valuation value of all <br/>
<a id="pl.316.13"></a><var>316.13</var>taxable property located within the district for the previous taxes payable year.<br/>
<a id="pl.316.14"></a><var>316.14</var>(c) For the purpose of determining the commission's property tax levy limitation <br/>
<a id="pl.316.15"></a><var>316.15</var>under this subdivision, "total market valuation" means the total market valuation of all <br/>
<a id="pl.316.16"></a><var>316.16</var>taxable property within the district without valuation adjustments for fiscal disparities <br/>
<a id="pl.316.17"></a><var>316.17</var>(chapter 473F), tax increment financing (sections 
<statute_ref>469.174</statute_ref> to 469.179), and high voltage <br/>
<a id="pl.316.18"></a><var>316.18</var>transmission lines (section 273.425).<br/>
<br/>
<a id="bill.12.94.0"></a><a id="pl.316.19"></a><var>316.19</var>    Sec. 94. Minnesota Statutes 2012, section 473F.02, subdivision 12, is amended to read:<br/>
<a id="pl.316.20"></a><var>316.20</var>    Subd. 12. <b>Adjusted </b><b>market value.</b> "Adjusted market value" of real and personal <br/>
<a id="pl.316.21"></a><var>316.21</var>property within a municipality means the assessor's estimated taxable market value, <br/>
<a id="pl.316.22"></a><var>316.22</var>as defined in section 272.03, of all real and personal property, including the value of <br/>
<a id="pl.316.23"></a><var>316.23</var>manufactured housing, within the municipality, adjusted for sales ratios in a manner <br/>
<a id="pl.316.24"></a><var>316.24</var>similar to the adjustments made to city and town net tax capacities. For purposes <br/>
<a id="pl.316.25"></a><var>316.25</var>of sections 
<statute_ref>473F.01</statute_ref> to 
<statute_ref>473F.13</statute_ref>, the commissioner of revenue shall annually make <br/>
<a id="pl.316.26"></a><var>316.26</var>determinations and reports with respect to each municipality which are comparable to <br/>
<a id="pl.316.27"></a><var>316.27</var>those it makes for school districts under section 
         <statute_ref>127A.48, subdivisions 1 to 6</statute_ref>, in the same <br/>
<a id="pl.316.28"></a><var>316.28</var>manner and at the same times as are prescribed by the subdivisions. The commissioner <br/>
<a id="pl.316.29"></a><var>316.29</var>of revenue shall annually determine, for each municipality, information comparable to <br/>
<a id="pl.316.30"></a><var>316.30</var>that required by section 
<statute_ref>475.53, subdivision 4</statute_ref>, for school districts, as soon as practicable <br/>
<a id="pl.316.31"></a><var>316.31</var>after it becomes available. The commissioner of revenue shall then compute the equalized <br/>
<a id="pl.316.32"></a><var>316.32</var>market value of property within each municipality using the aggregate sales ratios from <br/>
<a id="pl.316.33"></a><var>316.33</var>the Department of Revenue's sales ratio study.<br/>
<br/>
<a id="bill.12.95.0"></a><a id="pl.316.34"></a><var>316.34</var>    Sec. 95. Minnesota Statutes 2012, section 473F.02, subdivision 14, is amended to read:<br/>
<a id="pl.317.1"></a><var>317.1</var>    Subd. 14. <b>Fiscal capacity.</b> "Fiscal capacity" of a municipality means its valuation<br/>
<a id="pl.317.2"></a><var>317.2</var> adjusted market value, determined as of January 2 of any year, divided by its population, <br/>
<a id="pl.317.3"></a><var>317.3</var>determined as of a date in the same year.<br/>
<br/>
<a id="bill.12.96.0"></a><a id="pl.317.4"></a><var>317.4</var>    Sec. 96. Minnesota Statutes 2012, section 473F.02, subdivision 15, is amended to read:<br/>
<a id="pl.317.5"></a><var>317.5</var>    Subd. 15. <b>Average fiscal capacity.</b> "Average fiscal capacity" of municipalities <br/>
<a id="pl.317.6"></a><var>317.6</var>means the sum of the valuations adjusted market values of all municipalities, determined <br/>
<a id="pl.317.7"></a><var>317.7</var>as of January 2 of any year, divided by the sum of their populations, determined as of <br/>
<a id="pl.317.8"></a><var>317.8</var>a date in the same year.<br/>
<br/>
<a id="bill.12.97.0"></a><a id="pl.317.9"></a><var>317.9</var>    Sec. 97. Minnesota Statutes 2012, section 473F.02, subdivision 23, is amended to read:<br/>
<a id="pl.317.10"></a><var>317.10</var>    Subd. 23. <b>Net tax capacity.</b> "Net tax capacity" means the taxable market value of <br/>
<a id="pl.317.11"></a><var>317.11</var>real and personal property multiplied by its net tax capacity rates in section 
         <statute_ref>273.13</statute_ref>.<br/>
<br/>
<a id="bill.12.98.0"></a><a id="pl.317.12"></a><var>317.12</var>    Sec. 98. Minnesota Statutes 2012, section 473F.08, subdivision 10, is amended to read:<br/>
<a id="pl.317.13"></a><var>317.13</var>    Subd. 10. <b>Adjustment of value </b><b>or net tax capacity</b><b>.</b> For the purpose of computing <br/>
<a id="pl.317.14"></a><var>317.14</var>the amount or rate of any salary, aid, tax, or debt authorized, required, or limited by any <br/>
<a id="pl.317.15"></a><var>317.15</var>provision of any law or charter, where such authorization, requirement, or limitation <br/>
<a id="pl.317.16"></a><var>317.16</var>is related in any manner to any value or valuation of taxable property within any <br/>
<a id="pl.317.17"></a><var>317.17</var>governmental unit, such value or net tax capacity fiscal capacity under section 473F.02, <br/>
<a id="pl.317.18"></a><var>317.18</var>subdivision 14, a municipality's taxable market value shall be adjusted to reflect the <br/>
<a id="pl.317.19"></a><var>317.19</var>adjustments reductions to net tax capacity effected by subdivision 2, clause (a), provided <br/>
<a id="pl.317.20"></a><var>317.20</var>that: (1) in determining the taxable market value of commercial-industrial property <br/>
<a id="pl.317.21"></a><var>317.21</var>or any class thereof within a governmental unit for any purpose other than section <br/>
<a id="pl.317.22"></a><var>317.22</var><statute_ref>473F.07</statute_ref> municipality, (a) the reduction required by this subdivision shall be that amount <br/>
<a id="pl.317.23"></a><var>317.23</var>which bears the same proportion to the amount subtracted from the governmental unit's<br/>
<a id="pl.317.24"></a><var>317.24</var> municipality's net tax capacity pursuant to subdivision 2, clause (a), as the taxable <br/>
<a id="pl.317.25"></a><var>317.25</var>market value of commercial-industrial property, or such class thereof, located within the <br/>
<a id="pl.317.26"></a><var>317.26</var>governmental unit municipality bears to the net tax capacity of commercial-industrial <br/>
<a id="pl.317.27"></a><var>317.27</var>property, or such class thereof, located within the governmental unit, and (b) the increase <br/>
<a id="pl.317.28"></a><var>317.28</var>required by this subdivision shall be that amount which bears the same proportion to <br/>
<a id="pl.317.29"></a><var>317.29</var>the amount added to the governmental unit's net tax capacity pursuant to subdivision 2, <br/>
<a id="pl.317.30"></a><var>317.30</var>clause (b), as the market value of commercial-industrial property, or such class thereof, <br/>
<a id="pl.317.31"></a><var>317.31</var>located within the governmental unit bears to the net tax capacity of commercial-industrial <br/>
<a id="pl.317.32"></a><var>317.32</var>property, or such class thereof, located within the governmental unit; and (2) in determining <br/>
<a id="pl.317.33"></a><var>317.33</var>the market value of real property within a municipality for purposes of section 
<statute_ref>473F.07</statute_ref>, <br/>
<a id="pl.318.1"></a><var>318.1</var>the adjustment prescribed by clause (1)(a) hereof shall be made and that prescribed by <br/>
<a id="pl.318.2"></a><var>318.2</var>clause (1)(b) hereof shall not be made municipality. No adjustment shall be made to <br/>
<a id="pl.318.3"></a><var>318.3</var>taxable market value for the increase in net tax capacity under subdivision 2, clause (b).<br/>
<br/>
<a id="bill.12.99.0"></a><a id="pl.318.4"></a><var>318.4</var>    Sec. 99. Minnesota Statutes 2012, section 475.521, subdivision 4, is amended to read:<br/>
<a id="pl.318.5"></a><var>318.5</var>    Subd. 4. <b>Limitations on amount.</b> A municipality may not issue bonds under this <br/>
<a id="pl.318.6"></a><var>318.6</var>section if the maximum amount of principal and interest to become due in any year on <br/>
<a id="pl.318.7"></a><var>318.7</var>all the outstanding bonds issued under this section, including the bonds to be issued, <br/>
<a id="pl.318.8"></a><var>318.8</var>will equal or exceed 0.16 percent of the taxable estimated market value of property <br/>
<a id="pl.318.9"></a><var>318.9</var>in the municipality. Calculation of the limit must be made using the taxable estimated<br/>
<a id="pl.318.10"></a><var>318.10</var> market value for the taxes payable year in which the obligations are issued and sold. In <br/>
<a id="pl.318.11"></a><var>318.11</var>the case of a municipality with a population of 2,500 or more, the bonds are subject to <br/>
<a id="pl.318.12"></a><var>318.12</var>the net debt limits under section 
         <statute_ref>475.53</statute_ref>. In the case of a shared facility in which more <br/>
<a id="pl.318.13"></a><var>318.13</var>than one municipality participates, upon compliance by each participating municipality <br/>
<a id="pl.318.14"></a><var>318.14</var>with the requirements of subdivision 2, the limitations in this subdivision and the net debt <br/>
<a id="pl.318.15"></a><var>318.15</var>represented by the bonds shall be allocated to each participating municipality in proportion <br/>
<a id="pl.318.16"></a><var>318.16</var>to its required financial contribution to the financing of the shared facility, as set forth in <br/>
<a id="pl.318.17"></a><var>318.17</var>the joint powers agreement relating to the shared facility. This section does not limit the <br/>
<a id="pl.318.18"></a><var>318.18</var>authority to issue bonds under any other special or general law.<br/>
<br/>
<a id="bill.12.100.0"></a><a id="pl.318.19"></a><var>318.19</var>    Sec. 100. Minnesota Statutes 2012, section 475.53, subdivision 1, is amended to read:<br/>
<a id="pl.318.20"></a><var>318.20</var>    Subdivision 1. <b>Generally.</b> Except as otherwise provided in sections 
         <statute_ref>475.51</statute_ref> to <br/>
<statute_ref><a id="pl.318.21"></a><var>318.21</var>475.74
         </statute_ref>, no municipality, except a school district or a city of the first class, shall incur or be <br/>
<a id="pl.318.22"></a><var>318.22</var>subject to a net debt in excess of three percent of the estimated market value of taxable <br/>
<a id="pl.318.23"></a><var>318.23</var>property in the municipality.<br/>
<br/>
<a id="bill.12.101.0"></a><a id="pl.318.24"></a><var>318.24</var>    Sec. 101. Minnesota Statutes 2012, section 475.53, subdivision 3, is amended to read:<br/>
<a id="pl.318.25"></a><var>318.25</var>    Subd. 3. <b>Cities first class.</b> Unless its charter permits a greater net debt a city of <br/>
<a id="pl.318.26"></a><var>318.26</var>the first class may not incur a net debt in excess of two percent of the estimated market <br/>
<a id="pl.318.27"></a><var>318.27</var>value of all taxable property therein. If the charter of the city permits a net debt of the city <br/>
<a id="pl.318.28"></a><var>318.28</var>in excess of two percent of its valuation, it may not incur a net debt in excess of 3-2/3 <br/>
<a id="pl.318.29"></a><var>318.29</var>percent of the estimated market value of the taxable property therein.<br/>
<a id="pl.318.30"></a><var>318.30</var>The county auditor, at the time of preparing the tax list of the city, shall compile a <br/>
<a id="pl.318.31"></a><var>318.31</var>statement setting forth the total net tax capacity and the total estimated market value of <br/>
<a id="pl.318.32"></a><var>318.32</var>each class of taxable property in such city for such year.<br/>
<br/>
<a id="bill.12.102.0"></a><a id="pl.319.1"></a><var>319.1</var>    Sec. 102. Minnesota Statutes 2012, section 475.53, subdivision 4, is amended to read:<br/>
<a id="pl.319.2"></a><var>319.2</var>    Subd. 4. <b>School districts.</b> Except as otherwise provided by law, no school district <br/>
<a id="pl.319.3"></a><var>319.3</var>shall be subject to a net debt in excess of 15 percent of the actual estimated market value of <br/>
<a id="pl.319.4"></a><var>319.4</var>all taxable property situated within its corporate limits, as computed in accordance with this <br/>
<a id="pl.319.5"></a><var>319.5</var>subdivision. The county auditor of each county containing taxable real or personal property <br/>
<a id="pl.319.6"></a><var>319.6</var>situated within any school district shall certify to the district upon request the estimated <br/>
<a id="pl.319.7"></a><var>319.7</var>market value of all such property. Whenever the commissioner of revenue, in accordance <br/>
<a id="pl.319.8"></a><var>319.8</var>with section 
         <statute_ref>127A.48, subdivisions 1 to 6</statute_ref>, has determined that the net tax capacity of any <br/>
<a id="pl.319.9"></a><var>319.9</var>district furnished by county auditors is not based upon the adjusted market value of taxable <br/>
<a id="pl.319.10"></a><var>319.10</var>property in the district exceeds the estimated market value of property within the district, <br/>
<a id="pl.319.11"></a><var>319.11</var>the commissioner of revenue shall certify to the district upon request the ratio most recently <br/>
<a id="pl.319.12"></a><var>319.12</var>ascertained to exist between such the estimated market value and the actual adjusted<br/>
<a id="pl.319.13"></a><var>319.13</var> market value of property within the district., and the actual market value of property <br/>
<a id="pl.319.14"></a><var>319.14</var>within a district, on which its debt limit under this subdivision is will be based, is (a) the <br/>
<a id="pl.319.15"></a><var>319.15</var>value certified by the county auditors, or (b) this on the estimated market value divided by <br/>
<a id="pl.319.16"></a><var>319.16</var>the ratio certified by the commissioner of revenue, whichever results in a higher value.<br/>
<br/>
<a id="bill.12.103.0"></a><a id="pl.319.17"></a><var>319.17</var>    Sec. 103. Minnesota Statutes 2012, section 475.58, subdivision 2, is amended to read:<br/>
<a id="pl.319.18"></a><var>319.18</var>    Subd. 2. <b>Funding, refunding.</b> Any county, city, town, or school district whose <br/>
<a id="pl.319.19"></a><var>319.19</var>outstanding gross debt, including all items referred to in section 
         <statute_ref>475.51, subdivision <br/>
<a id="pl.319.20"></a><var>319.20</var>4
         </statute_ref>, exceed in amount 1.62 percent of its estimated market value may issue bonds under <br/>
<a id="pl.319.21"></a><var>319.21</var>this subdivision for the purpose of funding or refunding such indebtedness or any part <br/>
<a id="pl.319.22"></a><var>319.22</var>thereof. A list of the items of indebtedness to be funded or refunded shall be made by the <br/>
<a id="pl.319.23"></a><var>319.23</var>recording officer and treasurer and filed in the office of the recording officer. The initial <br/>
<a id="pl.319.24"></a><var>319.24</var>resolution of the governing body shall refer to this subdivision as authority for the issue, <br/>
<a id="pl.319.25"></a><var>319.25</var>state the amount of bonds to be issued and refer to the list of indebtedness to be funded or <br/>
<a id="pl.319.26"></a><var>319.26</var>refunded. This resolution shall be published once each week for two successive weeks <br/>
<a id="pl.319.27"></a><var>319.27</var>in a legal newspaper published in the municipality or if there be no such newspaper, in <br/>
<a id="pl.319.28"></a><var>319.28</var>a legal newspaper published in the county seat. Such bonds may be issued without the <br/>
<a id="pl.319.29"></a><var>319.29</var>submission of the question of their issue to the electors unless within ten days after the <br/>
<a id="pl.319.30"></a><var>319.30</var>second publication of the resolution a petition requesting such election signed by ten or <br/>
<a id="pl.319.31"></a><var>319.31</var>more voters who are taxpayers of the municipality, shall be filed with the recording officer. <br/>
<a id="pl.319.32"></a><var>319.32</var>In event such petition is filed, no bonds shall be issued hereunder unless authorized by a <br/>
<a id="pl.319.33"></a><var>319.33</var>majority of the electors voting on the question.<br/>
<br/>
<a id="bill.12.104.0"></a><a id="pl.319.34"></a><var>319.34</var>    Sec. 104. Minnesota Statutes 2012, section 475.73, subdivision 1, is amended to read:<br/>
<a id="pl.320.1"></a><var>320.1</var>    Subdivision 1. <b>May purchase these bonds; conditions.</b> Obligations sold under the <br/>
<a id="pl.320.2"></a><var>320.2</var>provisions of section 
         <statute_ref>475.60</statute_ref> may be purchased by the State Board of Investment if the <br/>
<a id="pl.320.3"></a><var>320.3</var>obligations meet the requirements of section 
         <statute_ref>11A.24, subdivision 2</statute_ref>, upon the approval of <br/>
<a id="pl.320.4"></a><var>320.4</var>the attorney general as to form and execution of the application therefor, and under rules <br/>
<a id="pl.320.5"></a><var>320.5</var>as the board may specify, and the state board shall have authority to purchase the same <br/>
<a id="pl.320.6"></a><var>320.6</var>to an amount not exceeding 
         <statute_ref>3.63</statute_ref> percent of the estimated market value of the taxable <br/>
<a id="pl.320.7"></a><var>320.7</var>property of the municipality, according to the last preceding assessment. The obligations <br/>
<a id="pl.320.8"></a><var>320.8</var>shall not run for a shorter period than one year, nor for a longer period than 30 years and <br/>
<a id="pl.320.9"></a><var>320.9</var>shall bear interest at a rate to be fixed by the state board but not less than two percent per <br/>
<a id="pl.320.10"></a><var>320.10</var>annum. Forthwith upon the delivery to the state of Minnesota of any obligations issued by <br/>
<a id="pl.320.11"></a><var>320.11</var>virtue thereof, the commissioner of management and budget shall certify to the respective <br/>
<a id="pl.320.12"></a><var>320.12</var>auditors of the various counties wherein are situated the municipalities issuing the same, <br/>
<a id="pl.320.13"></a><var>320.13</var>the number, denomination, amount, rate of interest and date of maturity of each obligation.<br/>
<br/>
<a id="bill.12.105.0"></a><a id="pl.320.14"></a><var>320.14</var>    Sec. 105. Minnesota Statutes 2012, section 477A.011, subdivision 20, is amended to <br/>
<a id="pl.320.15"></a><var>320.15</var>read:<br/>
<a id="pl.320.16"></a><var>320.16</var>    Subd. 20. <b>City net tax capacity.</b> "City net tax capacity" means (1) the net tax <br/>
<a id="pl.320.17"></a><var>320.17</var>capacity computed using the net tax capacity rates in section 
<statute_ref>273.13</statute_ref> for taxes payable <br/>
<a id="pl.320.18"></a><var>320.18</var>in the year of the aid distribution, and the market values, after the exclusion in section <br/>
<a id="pl.320.19"></a><var>320.19</var><statute_ref>273.13, subdivision 35</statute_ref>, for taxes payable in the year prior to the aid distribution plus (2) <br/>
<a id="pl.320.20"></a><var>320.20</var>a city's fiscal disparities distribution tax capacity under section 
<statute_ref>276A.06, subdivision 2</statute_ref>, <br/>
<a id="pl.320.21"></a><var>320.21</var>paragraph (b), or 
<statute_ref>473F.08, subdivision 2</statute_ref>, paragraph (b), for taxes payable in the year prior <br/>
<a id="pl.320.22"></a><var>320.22</var>to that for which aids are being calculated. The market value utilized in computing city <br/>
<a id="pl.320.23"></a><var>320.23</var>net tax capacity shall be reduced by the sum of (1) a city's market value of commercial <br/>
<a id="pl.320.24"></a><var>320.24</var>industrial property as defined in section 
<statute_ref>276A.01, subdivision 3</statute_ref>, or 
<statute_ref>473F.02, subdivision 3</statute_ref>, <br/>
<a id="pl.320.25"></a><var>320.25</var>multiplied by the ratio determined pursuant to section 
<statute_ref>276A.06, subdivision 2</statute_ref>, paragraph <br/>
<a id="pl.320.26"></a><var>320.26</var>(a), or 
<statute_ref>473F.08, subdivision 2</statute_ref>, paragraph (a), (2) the market value of the captured value <br/>
<a id="pl.320.27"></a><var>320.27</var>of tax increment financing districts as defined in section 
<statute_ref>469.177, subdivision 2</statute_ref>, and (3) <br/>
<a id="pl.320.28"></a><var>320.28</var>the market value of transmission lines deducted from a city's total net tax capacity under <br/>
<a id="pl.320.29"></a><var>320.29</var>section 
<statute_ref>273.425</statute_ref>. The city net tax capacity will be computed using equalized market values<br/>
<a id="pl.320.30"></a><var>320.30</var> the city's adjusted net tax capacity under section 273.1325.<br/>
<a id="pl.320.31"></a><var>320.31</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.12.106.0"></a><a id="pl.320.32"></a><var>320.32</var>    Sec. 106. Minnesota Statutes 2012, section 477A.0124, subdivision 2, is amended to <br/>
<a id="pl.320.33"></a><var>320.33</var>read:<br/>
<a id="pl.321.1"></a><var>321.1</var>    Subd. 2. <b>Definitions.</b> (a) For the purposes of this section, the following terms <br/>
<a id="pl.321.2"></a><var>321.2</var>have the meanings given them.<br/>
<a id="pl.321.3"></a><var>321.3</var>(b) "County program aid" means the sum of "county need aid," "county tax base <br/>
<a id="pl.321.4"></a><var>321.4</var>equalization aid," and "county transition aid."<br/>
<a id="pl.321.5"></a><var>321.5</var>(c) "Age-adjusted population" means a county's population multiplied by the county <br/>
<a id="pl.321.6"></a><var>321.6</var>age index.<br/>
<a id="pl.321.7"></a><var>321.7</var>(d) "County age index" means the percentage of the population over age 65 within <br/>
<a id="pl.321.8"></a><var>321.8</var>the county divided by the percentage of the population over age 65 within the state, except <br/>
<a id="pl.321.9"></a><var>321.9</var>that the age index for any county may not be greater than 1.8 nor less than 0.8.<br/>
<a id="pl.321.10"></a><var>321.10</var>(e) "Population over age 65" means the population over age 65 established as of <br/>
<a id="pl.321.11"></a><var>321.11</var>July 15 in an aid calculation year by the most recent federal census, by a special census <br/>
<a id="pl.321.12"></a><var>321.12</var>conducted under contract with the United States Bureau of the Census, by a population <br/>
<a id="pl.321.13"></a><var>321.13</var>estimate made by the Metropolitan Council, or by a population estimate of the state <br/>
<a id="pl.321.14"></a><var>321.14</var>demographer made pursuant to section 
         <statute_ref>4A.02</statute_ref>, whichever is the most recent as to the stated <br/>
<a id="pl.321.15"></a><var>321.15</var>date of the count or estimate for the preceding calendar year and which has been certified <br/>
<a id="pl.321.16"></a><var>321.16</var>to the commissioner of revenue on or before July 15 of the aid calculation year. A revision <br/>
<a id="pl.321.17"></a><var>321.17</var>to an estimate or count is effective for these purposes only if certified to the commissioner <br/>
<a id="pl.321.18"></a><var>321.18</var>on or before July 15 of the aid calculation year. Clerical errors in the certification or use of <br/>
<a id="pl.321.19"></a><var>321.19</var>estimates and counts established as of July 15 in the aid calculation year are subject to <br/>
<a id="pl.321.20"></a><var>321.20</var>correction within the time periods allowed under section 
         <statute_ref>477A.014</statute_ref>.<br/>
<a id="pl.321.21"></a><var>321.21</var>(f) "Part I crimes" means the three-year average annual number of Part I crimes <br/>
<a id="pl.321.22"></a><var>321.22</var>reported for each county by the Department of Public Safety for the most recent years <br/>
<a id="pl.321.23"></a><var>321.23</var>available. By July 1 of each year, the commissioner of public safety shall certify to the <br/>
<a id="pl.321.24"></a><var>321.24</var>commissioner of revenue the number of Part I crimes reported for each county for the <br/>
<a id="pl.321.25"></a><var>321.25</var>three most recent calendar years available.<br/>
<a id="pl.321.26"></a><var>321.26</var>(g) "Households receiving food stamps" means the average monthly number of <br/>
<a id="pl.321.27"></a><var>321.27</var>households receiving food stamps for the three most recent years for which data is <br/>
<a id="pl.321.28"></a><var>321.28</var>available. By July 1 of each year, the commissioner of human services must certify to the <br/>
<a id="pl.321.29"></a><var>321.29</var>commissioner of revenue the average monthly number of households in the state and in <br/>
<a id="pl.321.30"></a><var>321.30</var>each county that receive food stamps, for the three most recent calendar years available.<br/>
<a id="pl.321.31"></a><var>321.31</var>(h) "County net tax capacity" means the net tax capacity of the county, computed <br/>
<a id="pl.321.32"></a><var>321.32</var>analogously to city net tax capacity under section 
<statute_ref>477A.011, subdivision 20</statute_ref> county's <br/>
<a id="pl.321.33"></a><var>321.33</var>adjusted net tax capacity under section 273.1325.<br/>
<a id="pl.321.34"></a><var>321.34</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.12.107.0"></a><a id="pl.322.1"></a><var>322.1</var>    Sec. 107. Minnesota Statutes 2012, section 641.23, is amended to read:<br/>
<a id="pl.322.2"></a><var>322.2</var><b>641.23 FUNDS; HOW PROVIDED.</b><br/>
<a id="pl.322.3"></a><var>322.3</var>Before any contract is made for the erection of a county jail, sheriff's residence, or <br/>
<a id="pl.322.4"></a><var>322.4</var>both, the county board shall either levy a sufficient tax to provide the necessary funds, or <br/>
<a id="pl.322.5"></a><var>322.5</var>issue county bonds therefor in accordance with the provisions of chapter 475, provided <br/>
<a id="pl.322.6"></a><var>322.6</var>that no election is required if the amount of all bonds issued for this purpose and interest <br/>
<a id="pl.322.7"></a><var>322.7</var>on them which are due and payable in any year does not exceed an amount equal to <br/>
<a id="pl.322.8"></a><var>322.8</var>0.09671 percent of estimated market value of taxable property within the county, as last <br/>
<a id="pl.322.9"></a><var>322.9</var>determined before the bonds are issued.<br/>
<br/>
<a id="bill.12.108.0"></a><a id="pl.322.10"></a><var>322.10</var>    Sec. 108. Minnesota Statutes 2012, section 641.24, is amended to read:<br/>
<a id="pl.322.11"></a><var>322.11</var><b>641.24 LEASING.</b><br/>
<a id="pl.322.12"></a><var>322.12</var>The county may, by resolution of the county board, enter into a lease agreement with <br/>
<a id="pl.322.13"></a><var>322.13</var>any statutory or home rule charter city situated within the county, or a county housing and <br/>
<a id="pl.322.14"></a><var>322.14</var>redevelopment authority established pursuant to chapter 469 or any special law whereby <br/>
<a id="pl.322.15"></a><var>322.15</var>the city or county housing and redevelopment authority will construct a jail or other law <br/>
<a id="pl.322.16"></a><var>322.16</var>enforcement facilities for the county sheriff, deputy sheriffs, and other employees of the <br/>
<a id="pl.322.17"></a><var>322.17</var>sheriff and other law enforcement agencies, in accordance with plans prepared by or at <br/>
<a id="pl.322.18"></a><var>322.18</var>the request of the county board and, when required, approved by the commissioner of <br/>
<a id="pl.322.19"></a><var>322.19</var>corrections and will finance it by the issuance of revenue bonds, and the county may lease <br/>
<a id="pl.322.20"></a><var>322.20</var>the site and improvements for a term and upon rentals sufficient to produce revenue for the <br/>
<a id="pl.322.21"></a><var>322.21</var>prompt payment of the bonds and all interest accruing thereon and, upon completion of <br/>
<a id="pl.322.22"></a><var>322.22</var>payment, will acquire title thereto. The real and personal property acquired for the jail <br/>
<a id="pl.322.23"></a><var>322.23</var>shall constitute a project and the lease agreement shall constitute a revenue agreement <br/>
<a id="pl.322.24"></a><var>322.24</var>as contemplated in chapter 469, and all proceedings shall be taken by the city or county <br/>
<a id="pl.322.25"></a><var>322.25</var>housing and redevelopment authority and the county in the manner and with the force and <br/>
<a id="pl.322.26"></a><var>322.26</var>effect provided in chapter 469; provided that:<br/>
<a id="pl.322.27"></a><var>322.27</var>(1) no tax shall be imposed upon or in lieu of a tax upon the property;<br/>
<a id="pl.322.28"></a><var>322.28</var>(2) the approval of the project by the commissioner of commerce shall not be required;<br/>
<a id="pl.322.29"></a><var>322.29</var>(3) the Department of Corrections shall be furnished and shall record such <br/>
<a id="pl.322.30"></a><var>322.30</var>information concerning each project as it may prescribe;<br/>
<a id="pl.322.31"></a><var>322.31</var>(4) the rentals required to be paid under the lease agreement shall not exceed in any <br/>
<a id="pl.322.32"></a><var>322.32</var>year one-tenth of one percent of the estimated market value of property within the county, <br/>
<a id="pl.322.33"></a><var>322.33</var>as last finally equalized before the execution of the agreement;<br/>
<a id="pl.322.34"></a><var>322.34</var>(5) the county board shall provide for the payment of all rentals due during the term <br/>
<a id="pl.322.35"></a><var>322.35</var>of the lease, in the manner required in section 
         <statute_ref>641.264, subdivision 2</statute_ref>;<br/>
<a id="pl.323.1"></a><var>323.1</var>(6) no mortgage on the property shall be granted for the security of the bonds, but <br/>
<a id="pl.323.2"></a><var>323.2</var>compliance with clause (5) hereof may be enforced as a nondiscretionary duty of the <br/>
<a id="pl.323.3"></a><var>323.3</var>county board; and<br/>
<a id="pl.323.4"></a><var>323.4</var>(7) the county board may sublease any part of the jail property for purposes consistent <br/>
<a id="pl.323.5"></a><var>323.5</var>with the maintenance and operation of a county jail or other law enforcement facility.<br/>
<br/>
<a id="bill.12.109.0"></a><a id="pl.323.6"></a><var>323.6</var>    Sec. 109. Minnesota Statutes 2012, section 645.44, is amended by adding a subdivision <br/>
<a id="pl.323.7"></a><var>323.7</var>to read:<br/>
<a id="pl.323.8"></a><var>323.8</var>    Subd. 20. <b>Estimated market value.</b> When used in determining or calculating a <br/>
<a id="pl.323.9"></a><var>323.9</var>limit on taxation, spending, state aid amounts, or debt, bond, certificate of indebtedness, or <br/>
<a id="pl.323.10"></a><var>323.10</var>capital note issuance by or for a local government unit, "estimated market value" has the <br/>
<a id="pl.323.11"></a><var>323.11</var>meaning given in section 273.032.<br/>
<br/>
<a id="bill.12.110.0"></a><a id="pl.323.12"></a><var>323.12</var>    Sec. 110. <b>REVISOR'S INSTRUCTION.</b><br/>
<a id="pl.323.13"></a><var>323.13</var>The revisor of statutes shall recodify Minnesota Statutes, section 127.48, <br/>
<a id="pl.323.14"></a><var>323.14</var>subdivisions 1 to 6, as section 273.1325, subdivisions 1 to 6, and change all <br/>
<a id="pl.323.15"></a><var>323.15</var>cross-references to the affected subdivisions accordingly.<br/>
<a id="pl.323.16"></a><var>323.16</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.12.111.0"></a><a id="pl.323.17"></a><var>323.17</var>    Sec. 111. <b> REPEALER.</b><br/>
<a id="pl.323.18"></a><var>323.18</var>Minnesota Statutes 2012, sections 276A.01, subdivision 11; 473F.02, subdivision <br/>
<a id="pl.323.19"></a><var>323.19</var>13; and 477A.011, subdivision 21, are repealed.<br/>
<br/>
<a id="bill.12.112.0"></a><a id="pl.323.20"></a><var>323.20</var>    Sec. 112. <b>EFFECTIVE DATE.</b><br/>
<a id="pl.323.21"></a><var>323.21</var>Unless otherwise specifically provided, this act is effective the day following final <br/>
<a id="pl.323.22"></a><var>323.22</var>enactment for purposes of limits on net debt, the issuance of bonds, certificates of <br/>
<a id="pl.323.23"></a><var>323.23</var>indebtedness, and capital notes and is effective beginning for taxes payable in 2014 for <br/>
<a id="pl.323.24"></a><var>323.24</var>all other purposes.<br/>
<br/>
<a id="bill.13.0.0"></a>

<a id="pl.323.27"></a><var>323.27</var><b>FRANCHISE TAXES; ESTATE TAXES</b><br/>

<a id="bill.13.1.0"></a><a id="pl.323.28"></a><var>323.28</var>    Section 1. Minnesota Statutes 2012, section 289A.10, is amended by adding a <br/>
<a id="pl.323.29"></a><var>323.29</var>subdivision to read:<br/>
<a id="pl.324.1"></a><var>324.1</var>    Subd. 1a. <b>Recapture tax return required.</b> If a disposition or cessation as provided <br/>
<a id="pl.324.2"></a><var>324.2</var>by section 291.03, subdivision 11, paragraph (a), has occurred, the qualified heir, as <br/>
<a id="pl.324.3"></a><var>324.3</var>defined under section 291.03, subdivision 8, paragraph (c), or personal representative of <br/>
<a id="pl.324.4"></a><var>324.4</var>the decedent's estate must submit a recapture tax return to the commissioner.<br/>
<a id="pl.324.5"></a><var>324.5</var><b>EFFECTIVE DATE.</b>This section is effective for estates of decedents dying after <br/>
<a id="pl.324.6"></a><var>324.6</var>June 30, 2011.<br/>
<br/>
<a id="bill.13.2.0"></a><a id="pl.324.7"></a><var>324.7</var>    Sec. 2. Minnesota Statutes 2012, section 289A.12, subdivision 14, is amended to read:<br/>
<a id="pl.324.8"></a><var>324.8</var>    Subd. 14. <b>Regulated investment companies; reporting exempt-interest </b><br/>
<a id="pl.324.9"></a><var>324.9</var><b>dividends.</b> (a) A regulated investment company paying $10 or more in exempt-interest <br/>
<a id="pl.324.10"></a><var>324.10</var>dividends to an individual who is a resident of Minnesota must make a return indicating <br/>
<a id="pl.324.11"></a><var>324.11</var>the amount of the exempt-interest dividends, the name, address, and Social Security <br/>
<a id="pl.324.12"></a><var>324.12</var>number of the recipient, and any other information that the commissioner specifies. The <br/>
<a id="pl.324.13"></a><var>324.13</var>return must be provided to the shareholder by February 15 of the year following the year <br/>
<a id="pl.324.14"></a><var>324.14</var>of the payment. The return provided to the shareholder must include a clear statement, <br/>
<a id="pl.324.15"></a><var>324.15</var>in the form prescribed by the commissioner, that the exempt-interest dividends must be <br/>
<a id="pl.324.16"></a><var>324.16</var>included in the computation of Minnesota taxable income. By June 1 of each year, the <br/>
<a id="pl.324.17"></a><var>324.17</var>regulated investment company must file a copy of the return with the commissioner.<br/>
<a id="pl.324.18"></a><var>324.18</var>    (b) This subdivision applies to regulated investment companies required to register <br/>
<a id="pl.324.19"></a><var>324.19</var>under chapter 80A.<br/>
<a id="pl.324.20"></a><var>324.20</var>    (c) (b) For purposes of this subdivision, the following definitions apply.<br/>
<a id="pl.324.21"></a><var>324.21</var>    (1) "Exempt-interest dividends" mean exempt-interest dividends as defined in <br/>
<a id="pl.324.22"></a><var>324.22</var>section 852(b)(5) of the Internal Revenue Code, but does not include the portion of <br/>
<a id="pl.324.23"></a><var>324.23</var>exempt-interest dividends that are not required to be added to federal taxable income <br/>
<a id="pl.324.24"></a><var>324.24</var>under section 
         <statute_ref>290.01, subdivision 19a</statute_ref>, clause (1)(ii).<br/>
<a id="pl.324.25"></a><var>324.25</var>    (2) "Regulated investment company" means regulated investment company as <br/>
<a id="pl.324.26"></a><var>324.26</var>defined in section 851(a) of the Internal Revenue Code or a fund of the regulated <br/>
<a id="pl.324.27"></a><var>324.27</var>investment company as defined in section 851(g) of the Internal Revenue Code.<br/>
<a id="pl.324.28"></a><var>324.28</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.13.3.0"></a><a id="pl.324.29"></a><var>324.29</var>    Sec. 3. Minnesota Statutes 2012, section 289A.12, is amended by adding a subdivision <br/>
<a id="pl.324.30"></a><var>324.30</var>to read:<br/>
<a id="pl.324.31"></a><var>324.31</var>    Subd. 18. <b>Returns by qualified heirs.</b> A qualified heir, as defined in section 291.03, <br/>
<a id="pl.324.32"></a><var>324.32</var>subdivision 8, paragraph (c), must file two returns with the commissioner attesting that <br/>
<a id="pl.324.33"></a><var>324.33</var>no disposition or cessation as provided by section 291.03, subdivision 11, paragraph <br/>
<a id="pl.325.1"></a><var>325.1</var>(a), occurred. The first return must be filed no earlier than 24 months and no later than <br/>
<a id="pl.325.2"></a><var>325.2</var>26 months after the decedent's death. The second return must be filed no earlier than 36 <br/>
<a id="pl.325.3"></a><var>325.3</var>months and no later than 39 months after the decedent's death.<br/>
<a id="pl.325.4"></a><var>325.4</var><b>EFFECTIVE DATE.</b>This section is effective for returns required to be filed after <br/>
<a id="pl.325.5"></a><var>325.5</var>December 31, 2013.<br/>
<br/>
<a id="bill.13.4.0"></a><a id="pl.325.6"></a><var>325.6</var>    Sec. 4. Minnesota Statutes 2012, section 289A.18, is amended by adding a subdivision <br/>
<a id="pl.325.7"></a><var>325.7</var>to read:<br/>
<a id="pl.325.8"></a><var>325.8</var>    Subd. 3a. <b>Recapture tax return.</b> A recapture tax return must be filed with the <br/>
<a id="pl.325.9"></a><var>325.9</var>commissioner within six months after the date of the disposition or cessation as provided <br/>
<a id="pl.325.10"></a><var>325.10</var>by section 291.03, subdivision 11, paragraph (a).<br/>
<a id="pl.325.11"></a><var>325.11</var><b>EFFECTIVE DATE.</b>This section is effective for estates of decedents dying after <br/>
<a id="pl.325.12"></a><var>325.12</var>June 30, 2011.<br/>
<br/>
<a id="bill.13.5.0"></a><a id="pl.325.13"></a><var>325.13</var>    Sec. 5. Minnesota Statutes 2012, section 289A.20, subdivision 3, is amended to read:<br/>
<a id="pl.325.14"></a><var>325.14</var>    Subd. 3. <b>Estate tax.</b> Taxes imposed by chapter 291 section 291.03, subdivision 1,<br/>
<a id="pl.325.15"></a><var>325.15</var> take effect at and upon the death of the person whose estate is subject to taxation and are <br/>
<a id="pl.325.16"></a><var>325.16</var>due and payable on or before the expiration of nine months from that death.<br/>
<a id="pl.325.17"></a><var>325.17</var><b>EFFECTIVE DATE.</b>This section is effective for estates of decedents dying after <br/>
<a id="pl.325.18"></a><var>325.18</var>June 30, 2011.<br/>
<br/>
<a id="bill.13.6.0"></a><a id="pl.325.19"></a><var>325.19</var>    Sec. 6. Minnesota Statutes 2012, section 289A.20, is amended by adding a subdivision <br/>
<a id="pl.325.20"></a><var>325.20</var>to read:<br/>
<a id="pl.325.21"></a><var>325.21</var>    Subd. 3a. <b>Recapture tax.</b> The additional estate tax imposed by section 291.03, <br/>
<a id="pl.325.22"></a><var>325.22</var>subdivision 11, paragraph (b), is due and payable on or before the expiration of the date <br/>
<a id="pl.325.23"></a><var>325.23</var>provided by section 291.03, subdivision 11, paragraph (c).<br/>
<a id="pl.325.24"></a><var>325.24</var><b>EFFECTIVE DATE.</b>This section is effective for estates of decedents dying after <br/>
<a id="pl.325.25"></a><var>325.25</var>June 30, 2011.<br/>
<br/>
<a id="bill.13.7.0"></a><a id="pl.325.26"></a><var>325.26</var>    Sec. 7. Minnesota Statutes 2012, section 289A.26, subdivision 3, is amended to read:<br/>
<a id="pl.325.27"></a><var>325.27</var>    Subd. 3. <b>Short taxable year.</b> (a) A corporation or an entity with a short taxable year <br/>
<a id="pl.325.28"></a><var>325.28</var>of less than 12 months, but at least four months, must pay estimated tax in equal installments <br/>
<a id="pl.325.29"></a><var>325.29</var>on or before the 15th day of the third, sixth, ninth, and final month of the short taxable <br/>
<a id="pl.325.30"></a><var>325.30</var>year, to the extent applicable based on the number of months in the short taxable year.<br/>
<a id="pl.326.1"></a><var>326.1</var>(b) A corporation or an entity is not required to make estimated tax payments for a <br/>
<a id="pl.326.2"></a><var>326.2</var>short taxable year unless its tax liability before the first day of the last month of the taxable <br/>
<a id="pl.326.3"></a><var>326.3</var>year can reasonably be expected to exceed $500.<br/>
<a id="pl.326.4"></a><var>326.4</var>(c) No payment is required for a short taxable year of less than four months.<br/>
<a id="pl.326.5"></a><var>326.5</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.13.8.0"></a><a id="pl.326.6"></a><var>326.6</var>    Sec. 8. Minnesota Statutes 2012, section 289A.26, subdivision 4, is amended to read:<br/>
<a id="pl.326.7"></a><var>326.7</var>    Subd. 4. <b>Underpayment of estimated tax.</b> If there is an underpayment of estimated <br/>
<a id="pl.326.8"></a><var>326.8</var>tax by a corporation or an entity, there shall be added to the tax for the taxable year an <br/>
<a id="pl.326.9"></a><var>326.9</var>amount determined at the rate in section 
         <statute_ref>270C.40</statute_ref> on the amount of the underpayment, <br/>
<a id="pl.326.10"></a><var>326.10</var>determined under subdivision 5, for the period of the underpayment determined under <br/>
<a id="pl.326.11"></a><var>326.11</var>subdivision 6. This subdivision does not apply in the first taxable year that a corporation is <br/>
<a id="pl.326.12"></a><var>326.12</var>subject to the tax imposed under section 
         <statute_ref>290.02</statute_ref> or an entity is subject to the tax imposed <br/>
<a id="pl.326.13"></a><var>326.13</var>under section 290.05, subdivision 3.<br/>
<a id="pl.326.14"></a><var>326.14</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.13.9.0"></a><a id="pl.326.15"></a><var>326.15</var>    Sec. 9. Minnesota Statutes 2012, section 289A.26, subdivision 7, is amended to read:<br/>
<a id="pl.326.16"></a><var>326.16</var>    Subd. 7. <b>Required installments.</b> (a) Except as otherwise provided in this <br/>
<a id="pl.326.17"></a><var>326.17</var>subdivision, the amount of a required installment is 25 percent of the required annual <br/>
<a id="pl.326.18"></a><var>326.18</var>payment.<br/>
<a id="pl.326.19"></a><var>326.19</var>(b) Except as otherwise provided in this subdivision, the term "required annual <br/>
<a id="pl.326.20"></a><var>326.20</var>payment" means the lesser of:<br/>
<a id="pl.326.21"></a><var>326.21</var>(1) 100 percent of the tax shown on the return for the taxable year, or, if no return is <br/>
<a id="pl.326.22"></a><var>326.22</var>filed, 100 percent of the tax for that year; or<br/>
<a id="pl.326.23"></a><var>326.23</var>(2) 100 percent of the tax shown on the return of the corporation or entity for the <br/>
<a id="pl.326.24"></a><var>326.24</var>preceding taxable year provided the return was for a full 12-month period, showed a <br/>
<a id="pl.326.25"></a><var>326.25</var>liability, and was filed by the corporation or entity.<br/>
<a id="pl.326.26"></a><var>326.26</var>(c) Except for determining the first required installment for any taxable year, <br/>
<a id="pl.326.27"></a><var>326.27</var>paragraph (b), clause (2), does not apply in the case of a large corporation. The term <br/>
<a id="pl.326.28"></a><var>326.28</var>"large corporation" means a corporation or any predecessor corporation that had taxable <br/>
<a id="pl.326.29"></a><var>326.29</var>net income of $1,000,000 or more for any taxable year during the testing period. The <br/>
<a id="pl.326.30"></a><var>326.30</var>term "testing period" means the three taxable years immediately preceding the taxable <br/>
<a id="pl.326.31"></a><var>326.31</var>year involved. A reduction allowed to a large corporation for the first installment that is <br/>
<a id="pl.326.32"></a><var>326.32</var>allowed by applying paragraph (b), clause (2), must be recaptured by increasing the next <br/>
<a id="pl.326.33"></a><var>326.33</var>required installment by the amount of the reduction.<br/>
<a id="pl.327.1"></a><var>327.1</var>(d) In the case of a required installment, if the corporation or entity establishes that <br/>
<a id="pl.327.2"></a><var>327.2</var>the annualized income installment is less than the amount determined in paragraph (a), the <br/>
<a id="pl.327.3"></a><var>327.3</var>amount of the required installment is the annualized income installment and the recapture <br/>
<a id="pl.327.4"></a><var>327.4</var>of previous quarters' reductions allowed by this paragraph must be recovered by increasing <br/>
<a id="pl.327.5"></a><var>327.5</var>later required installments to the extent the reductions have not previously been recovered.<br/>
<a id="pl.327.6"></a><var>327.6</var>(e) The "annualized income installment" is the excess, if any, of:<br/>
<a id="pl.327.7"></a><var>327.7</var>(1) an amount equal to the applicable percentage of the tax for the taxable year <br/>
<a id="pl.327.8"></a><var>327.8</var>computed by placing on an annualized basis the taxable income:<br/>
<a id="pl.327.9"></a><var>327.9</var>(i) for the first two months of the taxable year, in the case of the first required <br/>
<a id="pl.327.10"></a><var>327.10</var>installment;<br/>
<a id="pl.327.11"></a><var>327.11</var>(ii) for the first two months or for the first five months of the taxable year, in the <br/>
<a id="pl.327.12"></a><var>327.12</var>case of the second required installment;<br/>
<a id="pl.327.13"></a><var>327.13</var>(iii) for the first six months or for the first eight months of the taxable year, in the <br/>
<a id="pl.327.14"></a><var>327.14</var>case of the third required installment; and<br/>
<a id="pl.327.15"></a><var>327.15</var>(iv) for the first nine months or for the first 11 months of the taxable year, in the <br/>
<a id="pl.327.16"></a><var>327.16</var>case of the fourth required installment, over<br/>
<a id="pl.327.17"></a><var>327.17</var>(2) the aggregate amount of any prior required installments for the taxable year.<br/>
<a id="pl.327.18"></a><var>327.18</var>(3) For the purpose of this paragraph, the annualized income shall be computed <br/>
<a id="pl.327.19"></a><var>327.19</var>by placing on an annualized basis the taxable income for the year up to the end of the <br/>
<a id="pl.327.20"></a><var>327.20</var>month preceding the due date for the quarterly payment multiplied by 12 and dividing <br/>
<a id="pl.327.21"></a><var>327.21</var>the resulting amount by the number of months in the taxable year (2, 5, 6, 8, 9, or 11 as <br/>
<a id="pl.327.22"></a><var>327.22</var>the case may be) referred to in clause (1).<br/>
<a id="pl.327.23"></a><var>327.23</var>(4) The "applicable percentage" used in clause (1) is:<br/>
<table>
<col width="50px"/>
<col width="5"/>
<col width="5"/>
<col width="10"/>
<col width="15"/>
<col width="7.5"/>
<col width="20"/>
<tr>
<td><a id="pl.327.24"></a><var>327.24</var><br/>
<a id="pl.327.25"></a><var>327.25</var><br/>
<a id="pl.327.26"></a><var>327.26</var><br/>
</td>
<td></td>
<td colspan="2">For the following <br/>
                  		required <br/>
                  		installments:<br/>
</td>
<td></td>
<td colspan="2">The applicable<br/>
                  		percentage is:<br/>
</td>
</tr>
<tr>
<td><a id="pl.327.27"></a><var>327.27</var><br/>
</td>
<td></td>
<td></td>
<td>1st<br/>
</td>
<td></td>
<td align="right">25<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.327.28"></a><var>327.28</var><br/>
</td>
<td></td>
<td></td>
<td>2nd<br/>
</td>
<td></td>
<td align="right">50<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.327.29"></a><var>327.29</var><br/>
</td>
<td></td>
<td></td>
<td>3rd<br/>
</td>
<td></td>
<td align="right">75<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.327.30"></a><var>327.30</var><br/>
</td>
<td></td>
<td></td>
<td valign="top">4th<br/>
</td>
<td></td>
<td align="right">100<br/>
</td>
<td></td>
</tr>
</table><a id="pl.327.31"></a><var>327.31</var>(f)(1) If this paragraph applies, the amount determined for any installment must <br/>
<a id="pl.327.32"></a><var>327.32</var>be determined in the following manner:<br/>
<a id="pl.327.33"></a><var>327.33</var>(i) take the taxable income for the months during the taxable year preceding the <br/>
<a id="pl.327.34"></a><var>327.34</var>filing month;<br/>
<a id="pl.327.35"></a><var>327.35</var>(ii) divide that amount by the base period percentage for the months during the <br/>
<a id="pl.327.36"></a><var>327.36</var>taxable year preceding the filing month;<br/>
<a id="pl.327.37"></a><var>327.37</var>(iii) determine the tax on the amount determined under item (ii); and<br/>
<a id="pl.328.1"></a><var>328.1</var>(iv) multiply the tax computed under item (iii) by the base period percentage for the <br/>
<a id="pl.328.2"></a><var>328.2</var>filing month and the months during the taxable year preceding the filing month.<br/>
<a id="pl.328.3"></a><var>328.3</var>(2) For purposes of this paragraph:<br/>
<a id="pl.328.4"></a><var>328.4</var>(i) the "base period percentage" for a period of months is the average percent that the <br/>
<a id="pl.328.5"></a><var>328.5</var>taxable income for the corresponding months in each of the three preceding taxable years <br/>
<a id="pl.328.6"></a><var>328.6</var>bears to the taxable income for the three preceding taxable years;<br/>
<a id="pl.328.7"></a><var>328.7</var>(ii) the term "filing month" means the month in which the installment is required <br/>
<a id="pl.328.8"></a><var>328.8</var>to be paid;<br/>
<a id="pl.328.9"></a><var>328.9</var>(iii) this paragraph only applies if the base period percentage for any six consecutive <br/>
<a id="pl.328.10"></a><var>328.10</var>months of the taxable year equals or exceeds 70 percent; and<br/>
<a id="pl.328.11"></a><var>328.11</var>(iv) the commissioner may provide by rule for the determination of the base period <br/>
<a id="pl.328.12"></a><var>328.12</var>percentage in the case of reorganizations, new corporations or entities, and other similar <br/>
<a id="pl.328.13"></a><var>328.13</var>circumstances.<br/>
<a id="pl.328.14"></a><var>328.14</var>(3) In the case of a required installment determined under this paragraph, if the<br/>
<a id="pl.328.15"></a><var>328.15</var> corporation or entity determines that the installment is less than the amount determined in <br/>
<a id="pl.328.16"></a><var>328.16</var>paragraph (a), the amount of the required installment is the amount determined under this <br/>
<a id="pl.328.17"></a><var>328.17</var>paragraph and the recapture of previous quarters' reductions allowed by this paragraph <br/>
<a id="pl.328.18"></a><var>328.18</var>must be recovered by increasing later required installments to the extent the reductions <br/>
<a id="pl.328.19"></a><var>328.19</var>have not previously been recovered.<br/>
<a id="pl.328.20"></a><var>328.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.13.10.0"></a><a id="pl.328.21"></a><var>328.21</var>    Sec. 10. Minnesota Statutes 2012, section 289A.26, subdivision 9, is amended to read:<br/>
<a id="pl.328.22"></a><var>328.22</var>    Subd. 9. <b>Failure to file an estimate.</b> In the case of a corporation or an entity <br/>
<a id="pl.328.23"></a><var>328.23</var>that fails to file an estimated tax for a taxable year when one is required, the period of <br/>
<a id="pl.328.24"></a><var>328.24</var>the underpayment runs from the four installment dates in subdivision 2 or 3, whichever <br/>
<a id="pl.328.25"></a><var>328.25</var>applies, to the earlier of the periods in subdivision 6, clauses (1) and (2).<br/>
<a id="pl.328.26"></a><var>328.26</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.13.11.0"></a><a id="pl.328.27"></a><var>328.27</var>    Sec. 11. Minnesota Statutes 2012, section 290.9705, subdivision 1, is amended to read:<br/>
<a id="pl.328.28"></a><var>328.28</var>    Subdivision 1. <b>Withholding of payments to out-of-state contractors.</b> (a) In this <br/>
<a id="pl.328.29"></a><var>328.29</var>section, "person" means a person, corporation, or cooperative, the state of Minnesota and <br/>
<a id="pl.328.30"></a><var>328.30</var>its political subdivisions, and a city, county, and school district in Minnesota.<br/>
<a id="pl.328.31"></a><var>328.31</var>(b) A person who in the regular course of business is hiring, contracting, or having a <br/>
<a id="pl.328.32"></a><var>328.32</var>contract with a nonresident person or foreign corporation, as defined in Minnesota Statutes <br/>
<a id="pl.328.33"></a><var>328.33</var>1986, section 
<statute_ref>290.01, subdivision 5</statute_ref>, to perform construction work in Minnesota, shall <br/>
<a id="pl.329.1"></a><var>329.1</var>deduct and withhold eight percent of cumulative calendar year payments made to the <br/>
<a id="pl.329.2"></a><var>329.2</var>contractor which exceed if the value of the contract exceeds $50,000.<br/>
<a id="pl.329.3"></a><var>329.3</var><b>EFFECTIVE DATE.</b>This section is effective for payments made to contractors <br/>
<a id="pl.329.4"></a><var>329.4</var>after December 31, 2013.<br/>
<br/>
<a id="bill.14.0.0"></a>

<a id="pl.329.7"></a><var>329.7</var><b>TAXES; SPECIAL TAXES</b><br/>

<a id="bill.14.1.0"></a><a id="pl.329.8"></a><var>329.8</var>    Section 1. Minnesota Statutes 2012, section 287.20, is amended by adding a <br/>
<a id="pl.329.9"></a><var>329.9</var>subdivision to read:<br/>
<a id="pl.329.10"></a><var>329.10</var>    Subd. 11. <b>Partition.</b> "Partition" means the division by conveyance of real property <br/>
<a id="pl.329.11"></a><var>329.11</var>that is held jointly or in common by two or more persons into individually owned interests. <br/>
<a id="pl.329.12"></a><var>329.12</var>If one of the co-owners gives consideration for all or a part of the individually owned <br/>
<a id="pl.329.13"></a><var>329.13</var>interest conveyed to them, that portion of the conveyance is not a part of the partition.<br/>
<a id="pl.329.14"></a><var>329.14</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.14.2.0"></a><a id="pl.329.15"></a><var>329.15</var>    Sec. 2. Minnesota Statutes 2012, section 289A.20, subdivision 4, is amended to read:<br/>
<a id="pl.329.16"></a><var>329.16</var>    Subd. 4. <b>Sales and use tax.</b> (a) The taxes imposed by chapter 297A are due and <br/>
<a id="pl.329.17"></a><var>329.17</var>payable to the commissioner monthly on or before the 20th day of the month following <br/>
<a id="pl.329.18"></a><var>329.18</var>the month in which the taxable event occurred, or following another reporting period <br/>
<a id="pl.329.19"></a><var>329.19</var>as the commissioner prescribes or as allowed under section 
         <statute_ref>289A.18, subdivision 4</statute_ref>, <br/>
<a id="pl.329.20"></a><var>329.20</var>paragraph (f) or (g), except that:<br/>
<a id="pl.329.21"></a><var>329.21</var>(1) use taxes due on an annual use tax return as provided under section 
         <statute_ref>289A.11, <br/>
<a id="pl.329.22"></a><var>329.22</var>subdivision 1
         </statute_ref>, are payable by April 15 following the close of the calendar year; and.<br/>
<a id="pl.329.23"></a><var>329.23</var>(2) except as provided in paragraph (f), for a vendor having a liability of $120,000 <br/>
<a id="pl.329.24"></a><var>329.24</var>or more during a fiscal year ending June 30, 2009, and fiscal years thereafter, the taxes <br/>
<a id="pl.329.25"></a><var>329.25</var>imposed by chapter 297A, except as provided in paragraph (b), are due and payable to the <br/>
<a id="pl.329.26"></a><var>329.26</var>commissioner monthly in the following manner:<br/>
<a id="pl.329.27"></a><var>329.27</var>(i) On or before the 14th day of the month following the month in which the taxable <br/>
<a id="pl.329.28"></a><var>329.28</var>event occurred, the vendor must remit to the commissioner 90 percent of the estimated <br/>
<a id="pl.329.29"></a><var>329.29</var>liability for the month in which the taxable event occurred.<br/>
<a id="pl.329.30"></a><var>329.30</var>(ii) On or before the 20th day of the month in which the taxable event occurs, the <br/>
<a id="pl.329.31"></a><var>329.31</var>vendor must remit to the commissioner a prepayment for the month in which the taxable <br/>
<a id="pl.329.32"></a><var>329.32</var>event occurs equal to 67 percent of the liability for the previous month.<br/>
<a id="pl.330.1"></a><var>330.1</var>(iii) On or before the 20th day of the month following the month in which the taxable <br/>
<a id="pl.330.2"></a><var>330.2</var>event occurred, the vendor must pay any additional amount of tax not previously remitted <br/>
<a id="pl.330.3"></a><var>330.3</var>under either item (i) or (ii ) or, if the payment made under item (i) or (ii) was greater than <br/>
<a id="pl.330.4"></a><var>330.4</var>the vendor's liability for the month in which the taxable event occurred, the vendor may <br/>
<a id="pl.330.5"></a><var>330.5</var>take a credit against the next month's liability in a manner prescribed by the commissioner.<br/>
<a id="pl.330.6"></a><var>330.6</var>(iv) Once the vendor first pays under either item (i) or (ii), the vendor is required to <br/>
<a id="pl.330.7"></a><var>330.7</var>continue to make payments in the same manner, as long as the vendor continues having a <br/>
<a id="pl.330.8"></a><var>330.8</var>liability of $120,000 or more during the most recent fiscal year ending June 30.<br/>
<a id="pl.330.9"></a><var>330.9</var>(v) Notwithstanding items (i), (ii), and (iv), if a vendor fails to make the required <br/>
<a id="pl.330.10"></a><var>330.10</var>payment in the first month that the vendor is required to make a payment under either item <br/>
<a id="pl.330.11"></a><var>330.11</var>(i) or (ii), then the vendor is deemed to have elected to pay under item (ii) and must make <br/>
<a id="pl.330.12"></a><var>330.12</var>subsequent monthly payments in the manner provided in item (ii).<br/>
<a id="pl.330.13"></a><var>330.13</var>(vi) For vendors making an accelerated payment under item (ii), for the first month <br/>
<a id="pl.330.14"></a><var>330.14</var>that the vendor is required to make the accelerated payment, on the 20th of that month, the <br/>
<a id="pl.330.15"></a><var>330.15</var>vendor will pay 100 percent of the liability for the previous month and a prepayment for <br/>
<a id="pl.330.16"></a><var>330.16</var>the first month equal to 67 percent of the liability for the previous month.<br/>
<a id="pl.330.17"></a><var>330.17</var>    (b) Notwithstanding paragraph (a), A vendor having a liability of $120,000 or more <br/>
<a id="pl.330.18"></a><var>330.18</var>during a fiscal year ending June 30 must remit the June liability for the next year in the <br/>
<a id="pl.330.19"></a><var>330.19</var>following manner:<br/>
<a id="pl.330.20"></a><var>330.20</var>    (1) Two business days before June 30 of the year, the vendor must remit 90 percent <br/>
<a id="pl.330.21"></a><var>330.21</var>of the estimated June liability to the commissioner.<br/>
<a id="pl.330.22"></a><var>330.22</var>    (2) On or before August 20 of the year, the vendor must pay any additional amount <br/>
<a id="pl.330.23"></a><var>330.23</var>of tax not remitted in June.<br/>
<a id="pl.330.24"></a><var>330.24</var>    (c) A vendor having a liability of:<br/>
<a id="pl.330.25"></a><var>330.25</var>    (1) $10,000 or more, but less than $120,000 during a fiscal year ending June 30, <br/>
<a id="pl.330.26"></a><var>330.26</var>2009, and fiscal years thereafter, must remit by electronic means all liabilities on returns <br/>
<a id="pl.330.27"></a><var>330.27</var>due for periods beginning in the subsequent calendar year on or before the 20th day of <br/>
<a id="pl.330.28"></a><var>330.28</var>the month following the month in which the taxable event occurred, or on or before the <br/>
<a id="pl.330.29"></a><var>330.29</var>20th day of the month following the month in which the sale is reported under section <br/>
<statute_ref><a id="pl.330.30"></a><var>330.30</var>289A.18, subdivision 4
         </statute_ref>; or<br/>
<a id="pl.330.31"></a><var>330.31</var>(2) $120,000 or more, during a fiscal year ending June 30, 2009, and fiscal years <br/>
<a id="pl.330.32"></a><var>330.32</var>thereafter, must remit by electronic means all liabilities in the manner provided in <br/>
<a id="pl.330.33"></a><var>330.33</var>paragraph (a), clause (2), on returns due for periods beginning in the subsequent calendar <br/>
<a id="pl.330.34"></a><var>330.34</var>year, except for 90 percent of the estimated June liability, which is due two business days <br/>
<a id="pl.330.35"></a><var>330.35</var>before June 30. The remaining amount of the June liability is due on August 20.<br/>
<a id="pl.331.1"></a><var>331.1</var>(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's <br/>
<a id="pl.331.2"></a><var>331.2</var>religious beliefs from paying electronically shall be allowed to remit the payment by mail. <br/>
<a id="pl.331.3"></a><var>331.3</var>The filer must notify the commissioner of revenue of the intent to pay by mail before <br/>
<a id="pl.331.4"></a><var>331.4</var>doing so on a form prescribed by the commissioner. No extra fee may be charged to a <br/>
<a id="pl.331.5"></a><var>331.5</var>person making payment by mail under this paragraph. The payment must be postmarked <br/>
<a id="pl.331.6"></a><var>331.6</var>at least two business days before the due date for making the payment in order to be <br/>
<a id="pl.331.7"></a><var>331.7</var>considered paid on a timely basis.<br/>
<a id="pl.331.8"></a><var>331.8</var>(e) Whenever the liability is $120,000 or more separately for: (1) the tax imposed <br/>
<a id="pl.331.9"></a><var>331.9</var>under chapter 297A; (2) a fee that is to be reported on the same return as and paid with the <br/>
<a id="pl.331.10"></a><var>331.10</var>chapter 297A taxes; or (3) any other tax that is to be reported on the same return as and <br/>
<a id="pl.331.11"></a><var>331.11</var>paid with the chapter 297A taxes, then the payment of all the liabilities on the return must <br/>
<a id="pl.331.12"></a><var>331.12</var>be accelerated as provided in this subdivision.<br/>
<a id="pl.331.13"></a><var>331.13</var>(f) At the start of the first calendar quarter at least 90 days after the cash flow account <br/>
<a id="pl.331.14"></a><var>331.14</var>established in section 
<statute_ref>16A.152, subdivision 1</statute_ref>, and the budget reserve account established in <br/>
<a id="pl.331.15"></a><var>331.15</var>section 
<statute_ref>16A.152, subdivision 1a</statute_ref>, reach the amounts listed in section 
<statute_ref>16A.152, subdivision <br/>
<a id="pl.331.16"></a><var>331.16</var>2
</statute_ref>, paragraph (a), the remittance of the accelerated payments required under paragraph (a), <br/>
<a id="pl.331.17"></a><var>331.17</var>clause (2), must be suspended. The commissioner of management and budget shall notify <br/>
<a id="pl.331.18"></a><var>331.18</var>the commissioner of revenue when the accounts have reached the required amounts. <br/>
<a id="pl.331.19"></a><var>331.19</var>Beginning with the suspension of paragraph (a), clause (2), for a vendor with a liability of <br/>
<a id="pl.331.20"></a><var>331.20</var>$120,000 or more during a fiscal year ending June 30, 2009, and fiscal years thereafter, the <br/>
<a id="pl.331.21"></a><var>331.21</var>taxes imposed by chapter 297A are due and payable to the commissioner on the 20th day <br/>
<a id="pl.331.22"></a><var>331.22</var>of the month following the month in which the taxable event occurred. Payments of tax <br/>
<a id="pl.331.23"></a><var>331.23</var>liabilities for taxable events occurring in June under paragraph (b) are not changed.<br/>
<a id="pl.331.24"></a><var>331.24</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.14.3.0"></a><a id="pl.331.25"></a><var>331.25</var>    Sec. 3. Minnesota Statutes 2012, section 297G.04, subdivision 2, is amended to read:<br/>
<a id="pl.331.26"></a><var>331.26</var>    Subd. 2. <b>Tax credit.</b> A qualified brewer producing fermented malt beverages <br/>
<a id="pl.331.27"></a><var>331.27</var>is entitled to a tax credit of $4.60 per barrel on 25,000 barrels sold in any fiscal year <br/>
<a id="pl.331.28"></a><var>331.28</var>beginning July 1, regardless of the alcohol content of the product. Qualified brewers may <br/>
<a id="pl.331.29"></a><var>331.29</var>take the credit on the 18th day of each month, but the total credit allowed may not exceed <br/>
<a id="pl.331.30"></a><var>331.30</var>in any fiscal year the lesser of:<br/>
<a id="pl.331.31"></a><var>331.31</var>(1) the liability for tax; or<br/>
<a id="pl.331.32"></a><var>331.32</var>(2) $115,000.<br/>
<a id="pl.331.33"></a><var>331.33</var>For purposes of this subdivision, a "qualified brewer" means a brewer, whether <br/>
<a id="pl.331.34"></a><var>331.34</var>or not located in this state, manufacturing less than 100,000 barrels of fermented malt <br/>
<a id="pl.331.35"></a><var>331.35</var>beverages in the calendar year immediately preceding the calendar fiscal year for which <br/>
<a id="pl.332.1"></a><var>332.1</var>the credit under this subdivision is claimed. In determining the number of barrels, all <br/>
<a id="pl.332.2"></a><var>332.2</var>brands or labels of a brewer must be combined. All facilities for the manufacture of <br/>
<a id="pl.332.3"></a><var>332.3</var>fermented malt beverages owned or controlled by the same person, corporation, or other <br/>
<a id="pl.332.4"></a><var>332.4</var>entity must be treated as a single brewer.<br/>
<a id="pl.332.5"></a><var>332.5</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.14.4.0"></a><a id="pl.332.6"></a><var>332.6</var>    Sec. 4. Minnesota Statutes 2012, section 297I.05, subdivision 11, is amended to read:<br/>
<a id="pl.332.7"></a><var>332.7</var>    Subd. 11. <b>Retaliatory provisions.</b> (a) If any other state or country imposes any <br/>
<a id="pl.332.8"></a><var>332.8</var>taxes, fines, deposits, penalties, licenses, or fees upon any insurance companies of this <br/>
<a id="pl.332.9"></a><var>332.9</var>state and their agents doing business in another state or country that are in addition to or in <br/>
<a id="pl.332.10"></a><var>332.10</var>excess of those imposed by the laws of this state upon foreign insurance companies and <br/>
<a id="pl.332.11"></a><var>332.11</var>their agents doing business in this state, the same taxes, fines, deposits, penalties, licenses, <br/>
<a id="pl.332.12"></a><var>332.12</var>and fees are imposed upon every similar insurance company of that state or country and <br/>
<a id="pl.332.13"></a><var>332.13</var>their agents doing or applying to do business in this state.<br/>
<a id="pl.332.14"></a><var>332.14</var>(b) If any conditions precedent to the right to do business in any other state or <br/>
<a id="pl.332.15"></a><var>332.15</var>country are imposed by the laws of that state or country, beyond those imposed upon <br/>
<a id="pl.332.16"></a><var>332.16</var>foreign companies by the laws of this state, the same conditions precedent are imposed <br/>
<a id="pl.332.17"></a><var>332.17</var>upon every similar insurance company of that state or country and their agents doing or <br/>
<a id="pl.332.18"></a><var>332.18</var>applying to do business in that state.<br/>
<a id="pl.332.19"></a><var>332.19</var>(c) For purposes of this subdivision, "taxes, fines, deposits, penalties, licenses, or <br/>
<a id="pl.332.20"></a><var>332.20</var>fees" means an amount of money that is deposited in the general revenue fund of the state <br/>
<a id="pl.332.21"></a><var>332.21</var>or other similar fund in another state or country and is not dedicated to a special purpose <br/>
<a id="pl.332.22"></a><var>332.22</var>or use or money deposited in the general revenue fund of the state or other similar fund in <br/>
<a id="pl.332.23"></a><var>332.23</var>another state or country and appropriated to the commissioner of commerce or insurance <br/>
<a id="pl.332.24"></a><var>332.24</var>for the operation of the Department of Commerce or other similar agency with jurisdiction <br/>
<a id="pl.332.25"></a><var>332.25</var>over insurance. Taxes, fines, deposits, penalties, licenses, or fees do not include:<br/>
<a id="pl.332.26"></a><var>332.26</var>(1) special purpose obligations or assessments imposed in connection with particular <br/>
<a id="pl.332.27"></a><var>332.27</var>kinds of insurance, including but not limited to assessments imposed in connection with <br/>
<a id="pl.332.28"></a><var>332.28</var>residual market mechanisms; or<br/>
<a id="pl.332.29"></a><var>332.29</var>(2) assessments made by the insurance guaranty association, life and health <br/>
<a id="pl.332.30"></a><var>332.30</var>guarantee association, or similar association.<br/>
<a id="pl.332.31"></a><var>332.31</var>(d) This subdivision applies to taxes imposed under subdivisions 1,; 3,; 4, 6, and; 12, <br/>
<a id="pl.332.32"></a><var>332.32</var>paragraph (a), clauses (1) and (2); and 14.<br/>
<a id="pl.332.33"></a><var>332.33</var>(e) This subdivision does not apply to insurance companies organized or domiciled <br/>
<a id="pl.332.34"></a><var>332.34</var>in a state or country, the laws of which do not impose retaliatory taxes, fines, deposits, <br/>
<a id="pl.332.35"></a><var>332.35</var>penalties, licenses, or fees or which grant, on a reciprocal basis, exemptions from <br/>
<a id="pl.333.1"></a><var>333.1</var>retaliatory taxes, fines, deposits, penalties, licenses, or fees to insurance companies <br/>
<a id="pl.333.2"></a><var>333.2</var>domiciled in this state.<br/>
<a id="pl.333.3"></a><var>333.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.14.5.0"></a><a id="pl.333.4"></a><var>333.4</var>    Sec. 5. <b> REPEALER.</b><br/>
<a id="pl.333.5"></a><var>333.5</var>Minnesota Statutes 2012, section 289A.60, subdivision 31, is repealed.<br/>
<a id="pl.333.6"></a><var>333.6</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.0.0"></a>

<a id="pl.333.9"></a><var>333.9</var><b>TAXES; PROPERTY TAX</b><br/>

<a id="bill.15.1.0"></a><a id="pl.333.10"></a><var>333.10</var>    Section 1. Minnesota Statutes 2012, section 13.4965, subdivision 3, is amended to read:<br/>
<a id="pl.333.11"></a><var>333.11</var>    Subd. 3. <b>Homestead </b><b>and other </b><b>applications.</b> The classification and disclosure of <br/>
<a id="pl.333.12"></a><var>333.12</var>certain information collected to determine eligibility of property for a homestead or other <br/>
<a id="pl.333.13"></a><var>333.13</var>classification or benefit under section 273.13 are governed by section sections 273.124, <br/>
<a id="pl.333.14"></a><var>333.14</var>subdivision subdivisions 13, 13a, 13b, 13c, and 13d; 273.1245; and 273.1315.<br/>
<a id="pl.333.15"></a><var>333.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.2.0"></a><a id="pl.333.16"></a><var>333.16</var>    Sec. 2. Minnesota Statutes 2012, section 123A.455, subdivision 1, is amended to read:<br/>
<a id="pl.333.17"></a><var>333.17</var>    Subdivision 1. <b>Definitions.</b> "Split residential property parcel" means a parcel of <br/>
<a id="pl.333.18"></a><var>333.18</var>real estate that is located within the boundaries of more than one school district and that <br/>
<a id="pl.333.19"></a><var>333.19</var>is classified as residential property under:<br/>
<a id="pl.333.20"></a><var>333.20</var>(1) section 
         <statute_ref>273.13, subdivision 22</statute_ref>, paragraph (a) or (b);<br/>
<a id="pl.333.21"></a><var>333.21</var>(2) section 
         <statute_ref>273.13, subdivision 25</statute_ref>, paragraph (b), clause (1); or<br/>
<a id="pl.333.22"></a><var>333.22</var>(3) section 
         <statute_ref>273.13, subdivision 25</statute_ref>, paragraph (c), clause (1).<br/>
<a id="pl.333.23"></a><var>333.23</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2014 and <br/>
<a id="pl.333.24"></a><var>333.24</var>thereafter.<br/>
<br/>
<a id="bill.15.3.0"></a><a id="pl.333.25"></a><var>333.25</var>    Sec. 3. Minnesota Statutes 2012, section 270.077, is amended to read:<br/>
<a id="pl.333.26"></a><var>333.26</var><b>270.077 TAXES CREDITED TO STATE AIRPORTS FUND.</b><br/>
<a id="pl.333.27"></a><var>333.27</var>All taxes levied under sections 
         <statute_ref>270.071</statute_ref> to 
         <statute_ref>270.079</statute_ref> must be collected by the <br/>
<a id="pl.333.28"></a><var>333.28</var>commissioner and credited to the state airports fund created in section 
         <statute_ref>360.017</statute_ref>.<br/>
<a id="pl.333.29"></a><var>333.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.4.0"></a><a id="pl.334.1"></a><var>334.1</var>    Sec. 4. Minnesota Statutes 2012, section 270.41, subdivision 5, is amended to read:<br/>
<a id="pl.334.2"></a><var>334.2</var>    Subd. 5. <b>Prohibited activity.</b> A licensed assessor or other person employed by an <br/>
<a id="pl.334.3"></a><var>334.3</var>assessment jurisdiction or contracting with an assessment jurisdiction for the purpose <br/>
<a id="pl.334.4"></a><var>334.4</var>of valuing or classifying property for property tax purposes is prohibited from making <br/>
<a id="pl.334.5"></a><var>334.5</var>appraisals or analyses, accepting an appraisal assignment, or preparing an appraisal report <br/>
<a id="pl.334.6"></a><var>334.6</var>as defined in section 
         <statute_ref>82B.021, subdivisions 2</statute_ref>, 4, 6, and 7, on any property within the <br/>
<a id="pl.334.7"></a><var>334.7</var>assessment jurisdiction where the individual is employed or performing the duties of the <br/>
<a id="pl.334.8"></a><var>334.8</var>assessor under contract. Violation of this prohibition shall result in immediate revocation <br/>
<a id="pl.334.9"></a><var>334.9</var>of the individual's license to assess property for property tax purposes. This prohibition <br/>
<a id="pl.334.10"></a><var>334.10</var>must not be construed to prohibit an individual from carrying out any duties required <br/>
<a id="pl.334.11"></a><var>334.11</var>for the proper assessment of property for property tax purposes or performing duties <br/>
<a id="pl.334.12"></a><var>334.12</var>enumerated in section 
         <statute_ref>273.061, subdivision 7</statute_ref> or 8. If a formal resolution has been adopted <br/>
<a id="pl.334.13"></a><var>334.13</var>by the governing body of a governmental unit, which specifies the purposes for which <br/>
<a id="pl.334.14"></a><var>334.14</var>such work will be done, this prohibition does not apply to appraisal activities undertaken <br/>
<a id="pl.334.15"></a><var>334.15</var>on behalf of and at the request of the governmental unit that has employed or contracted <br/>
<a id="pl.334.16"></a><var>334.16</var>with the individual. The resolution may only allow appraisal activities which are related to <br/>
<a id="pl.334.17"></a><var>334.17</var>condemnations, right-of-way acquisitions, land exchanges, or special assessments.<br/>
<a id="pl.334.18"></a><var>334.18</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.5.0"></a><a id="pl.334.19"></a><var>334.19</var>    Sec. 5. Minnesota Statutes 2012, section 270C.34, subdivision 1, is amended to read:<br/>
<a id="pl.334.20"></a><var>334.20</var>    Subdivision 1. <b>Authority.</b> (a) The commissioner may abate, reduce, or refund any <br/>
<a id="pl.334.21"></a><var>334.21</var>penalty or interest that is imposed by a law administered by the commissioner, or imposed <br/>
<a id="pl.334.22"></a><var>334.22</var>by section 
         <statute_ref>270.0725, subdivision 1</statute_ref> or 2, or 270.075, subdivision 2, as a result of the late <br/>
<a id="pl.334.23"></a><var>334.23</var>payment of tax or late filing of a return, or any part of an additional tax charge under <br/>
<a id="pl.334.24"></a><var>334.24</var>section 
         <statute_ref>289A.25, subdivision 2</statute_ref>, or 
         <statute_ref>289A.26, subdivision 4</statute_ref>, if the failure to timely pay the <br/>
<a id="pl.334.25"></a><var>334.25</var>tax or failure to timely file the return is due to reasonable cause, or if the taxpayer is located <br/>
<a id="pl.334.26"></a><var>334.26</var>in a presidentially declared disaster or in a presidentially declared state of emergency area <br/>
<a id="pl.334.27"></a><var>334.27</var>or in an area declared to be in a state of emergency by the governor under section 
         <statute_ref>12.31</statute_ref>.<br/>
<a id="pl.334.28"></a><var>334.28</var>    (b) The commissioner shall abate any part of a penalty or additional tax charge <br/>
<a id="pl.334.29"></a><var>334.29</var>under section 
         <statute_ref>289A.25, subdivision 2</statute_ref>, or 
         <statute_ref>289A.26, subdivision 4</statute_ref>, attributable to erroneous <br/>
<a id="pl.334.30"></a><var>334.30</var>advice given to the taxpayer in writing by an employee of the department acting in <br/>
<a id="pl.334.31"></a><var>334.31</var>an official capacity, if the advice:<br/>
<a id="pl.334.32"></a><var>334.32</var>    (1) was reasonably relied on and was in response to a specific written request of the <br/>
<a id="pl.334.33"></a><var>334.33</var>taxpayer; and<br/>
<a id="pl.334.34"></a><var>334.34</var>    (2) was not the result of failure by the taxpayer to provide adequate or accurate <br/>
<a id="pl.334.35"></a><var>334.35</var>information.<br/>
<a id="pl.335.1"></a><var>335.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.6.0"></a><a id="pl.335.2"></a><var>335.2</var>    Sec. 6. Minnesota Statutes 2012, section 272.01, subdivision 2, is amended to read:<br/>
<a id="pl.335.3"></a><var>335.3</var>    Subd. 2. <b>Exempt property used by private entity for profit.</b> (a) When any real or <br/>
<a id="pl.335.4"></a><var>335.4</var>personal property which is exempt from ad valorem taxes, and taxes in lieu thereof, is <br/>
<a id="pl.335.5"></a><var>335.5</var>leased, loaned, or otherwise made available and used by a private individual, association, <br/>
<a id="pl.335.6"></a><var>335.6</var>or corporation in connection with a business conducted for profit, there shall be imposed a <br/>
<a id="pl.335.7"></a><var>335.7</var>tax, for the privilege of so using or possessing such real or personal property, in the same <br/>
<a id="pl.335.8"></a><var>335.8</var>amount and to the same extent as though the lessee or user was the owner of such property.<br/>
<a id="pl.335.9"></a><var>335.9</var>    (b) The tax imposed by this subdivision shall not apply to:<br/>
<a id="pl.335.10"></a><var>335.10</var>    (1) property leased or used as a concession in or relative to the use in whole <br/>
<a id="pl.335.11"></a><var>335.11</var>or part of a public park, market, fairgrounds, port authority, economic development <br/>
<a id="pl.335.12"></a><var>335.12</var>authority established under chapter 469, municipal auditorium, municipal parking facility, <br/>
<a id="pl.335.13"></a><var>335.13</var>municipal museum, or municipal stadium;<br/>
<a id="pl.335.14"></a><var>335.14</var>    (2) property of an airport owned by a city, town, county, or group thereof which is:<br/>
<a id="pl.335.15"></a><var>335.15</var>    (i) leased to or used by any person or entity including a fixed base operator; and<br/>
<a id="pl.335.16"></a><var>335.16</var>    (ii) used as a hangar for the storage or repair of aircraft or to provide aviation goods, <br/>
<a id="pl.335.17"></a><var>335.17</var>services, or facilities to the airport or general public;<br/>
<a id="pl.335.18"></a><var>335.18</var>the exception from taxation provided in this clause does not apply to:<br/>
<a id="pl.335.19"></a><var>335.19</var>    (i) property located at an airport owned or operated by the Metropolitan Airports <br/>
<a id="pl.335.20"></a><var>335.20</var>Commission or by a city of over 50,000 population according to the most recent federal <br/>
<a id="pl.335.21"></a><var>335.21</var>census or such a city's airport authority; or<br/>
<a id="pl.335.22"></a><var>335.22</var>    (ii) hangars leased by a private individual, association, or corporation in connection <br/>
<a id="pl.335.23"></a><var>335.23</var>with a business conducted for profit other than an aviation-related business;<br/>
<a id="pl.335.24"></a><var>335.24</var>    (3) property constituting or used as a public pedestrian ramp or concourse in <br/>
<a id="pl.335.25"></a><var>335.25</var>connection with a public airport;<br/>
<a id="pl.335.26"></a><var>335.26</var>    (4) property constituting or used as a passenger check-in area or ticket sale counter, <br/>
<a id="pl.335.27"></a><var>335.27</var>boarding area, or luggage claim area in connection with a public airport but not the <br/>
<a id="pl.335.28"></a><var>335.28</var>airports owned or operated by the Metropolitan Airports Commission or cities of over <br/>
<a id="pl.335.29"></a><var>335.29</var>50,000 population or an airport authority therein. Real estate owned by a municipality <br/>
<a id="pl.335.30"></a><var>335.30</var>in connection with the operation of a public airport and leased or used for agricultural <br/>
<a id="pl.335.31"></a><var>335.31</var>purposes is not exempt;<br/>
<a id="pl.335.32"></a><var>335.32</var>    (5) property leased, loaned, or otherwise made available to a private individual, <br/>
<a id="pl.335.33"></a><var>335.33</var>corporation, or association under a cooperative farming agreement made pursuant to <br/>
<a id="pl.335.34"></a><var>335.34</var>section 
         <statute_ref>97A.135</statute_ref>; or<br/>
<a id="pl.336.1"></a><var>336.1</var>    (6) property leased, loaned, or otherwise made available to a private individual, <br/>
<a id="pl.336.2"></a><var>336.2</var>corporation, or association under section 
         <statute_ref>272.68, subdivision 4</statute_ref>.<br/>
<a id="pl.336.3"></a><var>336.3</var>    (c) Taxes imposed by this subdivision are payable as in the case of personal property <br/>
<a id="pl.336.4"></a><var>336.4</var>taxes and shall be assessed to the lessees or users of real or personal property in the same <br/>
<a id="pl.336.5"></a><var>336.5</var>manner as taxes assessed to owners of real or personal property, except that such taxes <br/>
<a id="pl.336.6"></a><var>336.6</var>shall not become a lien against the property. When due, the taxes shall constitute a debt due <br/>
<a id="pl.336.7"></a><var>336.7</var>from the lessee or user to the state, township, city, county, and school district for which the <br/>
<a id="pl.336.8"></a><var>336.8</var>taxes were assessed and shall be collected in the same manner as personal property taxes. <br/>
<a id="pl.336.9"></a><var>336.9</var>If property subject to the tax imposed by this subdivision is leased or used jointly by two or <br/>
<a id="pl.336.10"></a><var>336.10</var>more persons, each lessee or user shall be jointly and severally liable for payment of the tax.<br/>
<a id="pl.336.11"></a><var>336.11</var>    (d) The tax on real property of the federal government, the state or any of its political <br/>
<a id="pl.336.12"></a><var>336.12</var>subdivisions that is leased by, loaned, or otherwise made available to a private individual, <br/>
<a id="pl.336.13"></a><var>336.13</var>association, or corporation and becomes taxable under this subdivision or other provision <br/>
<a id="pl.336.14"></a><var>336.14</var>of law must be assessed and collected as a personal property assessment. The taxes do <br/>
<a id="pl.336.15"></a><var>336.15</var>not become a lien against the real property.<br/>
<a id="pl.336.16"></a><var>336.16</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.7.0"></a><a id="pl.336.17"></a><var>336.17</var>    Sec. 7. Minnesota Statutes 2012, section 272.02, subdivision 97, is amended to read:<br/>
<a id="pl.336.18"></a><var>336.18</var>    Subd. 97. <b>Property used in business of mining subject to net proceeds tax.</b> The <br/>
<a id="pl.336.19"></a><var>336.19</var>following property used in the business of mining that is subject to the net proceeds tax <br/>
<a id="pl.336.20"></a><var>336.20</var>under section 
         <statute_ref>298.015</statute_ref> is exempt:<br/>
<a id="pl.336.21"></a><var>336.21</var>(1) deposits of ores, metals, and minerals and the lands in which they are contained;<br/>
<a id="pl.336.22"></a><var>336.22</var>(2) all real and personal property used in mining, quarrying, producing, or refining <br/>
<a id="pl.336.23"></a><var>336.23</var>ores, minerals, or metals, including lands occupied by or used in connection with the <br/>
<a id="pl.336.24"></a><var>336.24</var>mining, quarrying, production, or ore refining facilities; and<br/>
<a id="pl.336.25"></a><var>336.25</var>(3) concentrate or direct reduced ore.<br/>
<a id="pl.336.26"></a><var>336.26</var>This exemption applies for each year that a person subject to tax under section <br/>
<statute_ref><a id="pl.336.27"></a><var>336.27</var>298.015
         </statute_ref> uses the property for mining, quarrying, producing, or refining ores, metals, or <br/>
<a id="pl.336.28"></a><var>336.28</var>minerals.<br/>
<a id="pl.336.29"></a><var>336.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.8.0"></a><a id="pl.336.30"></a><var>336.30</var>    Sec. 8. Minnesota Statutes 2012, section 272.03, subdivision 9, is amended to read:<br/>
<a id="pl.336.31"></a><var>336.31</var>    Subd. 9. <b>Person.</b> "Person" includes means an individual, association, estate, trust, <br/>
<a id="pl.336.32"></a><var>336.32</var>partnership, firm, company, or corporation.<br/>
<a id="pl.336.33"></a><var>336.33</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.9.0"></a><a id="pl.337.1"></a><var>337.1</var>    Sec. 9. Minnesota Statutes 2012, section 273.114, subdivision 6, is amended to read:<br/>
<a id="pl.337.2"></a><var>337.2</var>    Subd. 6. <b>Additional taxes.</b> (a) When real property which is being, or has been <br/>
<a id="pl.337.3"></a><var>337.3</var>valued and assessed under this section is sold, transferred, or no longer qualifies under <br/>
<a id="pl.337.4"></a><var>337.4</var>subdivision 2, the portion sold, transferred, or no longer qualifying shall be subject to <br/>
<a id="pl.337.5"></a><var>337.5</var>additional taxes in the amount equal to the difference between the taxes determined in <br/>
<a id="pl.337.6"></a><var>337.6</var>accordance with subdivision 3 and the amount determined under subdivision 4, provided <br/>
<a id="pl.337.7"></a><var>337.7</var>that the amount determined under subdivision 4 shall not be greater than it would have <br/>
<a id="pl.337.8"></a><var>337.8</var>been had the actual bona fide sale price of the real property at an arm's-length transaction <br/>
<a id="pl.337.9"></a><var>337.9</var>been used in lieu of the market value determined under subdivision 4. The additional taxes <br/>
<a id="pl.337.10"></a><var>337.10</var>shall be extended against the property on the tax list for taxes payable in the current year, <br/>
<a id="pl.337.11"></a><var>337.11</var>provided that no interest or penalties shall be levied on the additional taxes if timely paid <br/>
<a id="pl.337.12"></a><var>337.12</var>and provided that the additional taxes shall only be levied with respect to the current year <br/>
<a id="pl.337.13"></a><var>337.13</var>plus two prior years that the property has been valued and assessed under this section.<br/>
<a id="pl.337.14"></a><var>337.14</var>(b) In the case of a sale or transfer, the additional taxes under paragraph (a) shall not <br/>
<a id="pl.337.15"></a><var>337.15</var>be extended against the property if the new owner submits a successful application under <br/>
<a id="pl.337.16"></a><var>337.16</var>this section by the later of May 1 of the current year or 30 days after the sale or transfer.<br/>
<a id="pl.337.17"></a><var>337.17</var>(c) For the purposes of this section, the following events do not constitute a sale or <br/>
<a id="pl.337.18"></a><var>337.18</var>transfer for property that qualified under subdivision 2 prior to the event:<br/>
<a id="pl.337.19"></a><var>337.19</var>(1) death of a property owner when the surviving owners retain ownership of the <br/>
<a id="pl.337.20"></a><var>337.20</var>property;<br/>
<a id="pl.337.21"></a><var>337.21</var>(2) divorce of a married couple when one of the spouses retains ownership of the <br/>
<a id="pl.337.22"></a><var>337.22</var>property;<br/>
<a id="pl.337.23"></a><var>337.23</var>(3) marriage of a single property owner when that owner retains ownership of the <br/>
<a id="pl.337.24"></a><var>337.24</var>property in whole or in part;<br/>
<a id="pl.337.25"></a><var>337.25</var>(4) the organization or reorganization of a farm ownership entity that is not prohibited <br/>
<a id="pl.337.26"></a><var>337.26</var>from owning agricultural land in this state under section 500.24, if all owners maintain the <br/>
<a id="pl.337.27"></a><var>337.27</var>same beneficial interest both before and after the organization or reorganization; and<br/>
<a id="pl.337.28"></a><var>337.28</var>(5) transfer of the property to a trust or trustee, provided that the individual owners <br/>
<a id="pl.337.29"></a><var>337.29</var>of the property are the grantors of the trust and they maintain the same beneficial interest <br/>
<a id="pl.337.30"></a><var>337.30</var>both before and after placement of the property in trust.<br/>
<a id="pl.337.31"></a><var>337.31</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.10.0"></a><a id="pl.337.32"></a><var>337.32</var>    Sec. 10. Minnesota Statutes 2012, section 273.124, subdivision 13, is amended to read:<br/>
<a id="pl.337.33"></a><var>337.33</var>    Subd. 13. <b>Homestead application.</b> (a) A person who meets the homestead <br/>
<a id="pl.337.34"></a><var>337.34</var>requirements under subdivision 1 must file a homestead application with the county <br/>
<a id="pl.337.35"></a><var>337.35</var>assessor to initially obtain homestead classification.<br/>
<a id="pl.338.1"></a><var>338.1</var>    (b) The format and contents of a uniform homestead application shall be prescribed <br/>
<a id="pl.338.2"></a><var>338.2</var>by the commissioner of revenue. The application must clearly inform the taxpayer that <br/>
<a id="pl.338.3"></a><var>338.3</var>this application must be signed by all owners who occupy the property or by the qualifying <br/>
<a id="pl.338.4"></a><var>338.4</var>relative and returned to the county assessor in order for the property to receive homestead <br/>
<a id="pl.338.5"></a><var>338.5</var>treatment.<br/>
<a id="pl.338.6"></a><var>338.6</var>    (c) Every property owner applying for homestead classification must furnish to the <br/>
<a id="pl.338.7"></a><var>338.7</var>county assessor the Social Security number of each occupant who is listed as an owner <br/>
<a id="pl.338.8"></a><var>338.8</var>of the property on the deed of record, the name and address of each owner who does not <br/>
<a id="pl.338.9"></a><var>338.9</var>occupy the property, and the name and Social Security number of each owner's spouse who <br/>
<a id="pl.338.10"></a><var>338.10</var>occupies the property. The application must be signed by each owner who occupies the <br/>
<a id="pl.338.11"></a><var>338.11</var>property and by each owner's spouse who occupies the property, or, in the case of property <br/>
<a id="pl.338.12"></a><var>338.12</var>that qualifies as a homestead under subdivision 1, paragraph (c), by the qualifying relative.<br/>
<a id="pl.338.13"></a><var>338.13</var>    If a property owner occupies a homestead, the property owner's spouse may not <br/>
<a id="pl.338.14"></a><var>338.14</var>claim another property as a homestead unless the property owner and the property owner's <br/>
<a id="pl.338.15"></a><var>338.15</var>spouse file with the assessor an affidavit or other proof required by the assessor stating that <br/>
<a id="pl.338.16"></a><var>338.16</var>the property qualifies as a homestead under subdivision 1, paragraph (e).<br/>
<a id="pl.338.17"></a><var>338.17</var>    Owners or spouses occupying residences owned by their spouses and previously <br/>
<a id="pl.338.18"></a><var>338.18</var>occupied with the other spouse, either of whom fail to include the other spouse's name <br/>
<a id="pl.338.19"></a><var>338.19</var>and Social Security number on the homestead application or provide the affidavits or <br/>
<a id="pl.338.20"></a><var>338.20</var>other proof requested, will be deemed to have elected to receive only partial homestead <br/>
<a id="pl.338.21"></a><var>338.21</var>treatment of their residence. The remainder of the residence will be classified as <br/>
<a id="pl.338.22"></a><var>338.22</var>nonhomestead residential. When an owner or spouse's name and Social Security number <br/>
<a id="pl.338.23"></a><var>338.23</var>appear on homestead applications for two separate residences and only one application is <br/>
<a id="pl.338.24"></a><var>338.24</var>signed, the owner or spouse will be deemed to have elected to homestead the residence for <br/>
<a id="pl.338.25"></a><var>338.25</var>which the application was signed.<br/>
<a id="pl.338.26"></a><var>338.26</var>    The Social Security numbers, state or federal tax returns or tax return information, <br/>
<a id="pl.338.27"></a><var>338.27</var>including the federal income tax schedule F required by this section, or affidavits or other <br/>
<a id="pl.338.28"></a><var>338.28</var>proofs of the property owners and spouses submitted under this or another section to <br/>
<a id="pl.338.29"></a><var>338.29</var>support a claim for a property tax homestead classification are private data on individuals as <br/>
<a id="pl.338.30"></a><var>338.30</var>defined by section 
<statute_ref>13.02, subdivision 12</statute_ref>, but, notwithstanding that section, the private data <br/>
<a id="pl.338.31"></a><var>338.31</var>may be disclosed to the commissioner of revenue, or, for purposes of proceeding under the <br/>
<a id="pl.338.32"></a><var>338.32</var>Revenue Recapture Act to recover personal property taxes owing, to the county treasurer.<br/>
<a id="pl.338.33"></a><var>338.33</var>    (d) If residential real estate is occupied and used for purposes of a homestead by a <br/>
<a id="pl.338.34"></a><var>338.34</var>relative of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in <br/>
<a id="pl.338.35"></a><var>338.35</var>order for the property to receive homestead status, a homestead application must be filed <br/>
<a id="pl.338.36"></a><var>338.36</var>with the assessor. The Social Security number of each relative and spouse of a relative <br/>
<a id="pl.339.1"></a><var>339.1</var>occupying the property shall be required on the homestead application filed under this <br/>
<a id="pl.339.2"></a><var>339.2</var>subdivision. If a different relative of the owner subsequently occupies the property, the <br/>
<a id="pl.339.3"></a><var>339.3</var>owner of the property must notify the assessor within 30 days of the change in occupancy. <br/>
<a id="pl.339.4"></a><var>339.4</var>The Social Security number of a relative or relative's spouse occupying the property <br/>
<a id="pl.339.5"></a><var>339.5</var>is private data on individuals as defined by section 
         <statute_ref>13.02, subdivision 12</statute_ref>, but may be <br/>
<a id="pl.339.6"></a><var>339.6</var>disclosed to the commissioner of revenue, or, for the purposes of proceeding under the <br/>
<a id="pl.339.7"></a><var>339.7</var>Revenue Recapture Act to recover personal property taxes owing, to the county treasurer.<br/>
<a id="pl.339.8"></a><var>339.8</var>    (e) The homestead application shall also notify the property owners that the <br/>
<a id="pl.339.9"></a><var>339.9</var>application filed under this section will not be mailed annually and that if the property <br/>
<a id="pl.339.10"></a><var>339.10</var>is granted homestead status for any assessment year, that same property shall remain <br/>
<a id="pl.339.11"></a><var>339.11</var>classified as homestead until the property is sold or transferred to another person, or <br/>
<a id="pl.339.12"></a><var>339.12</var>the owners, the spouse of the owner, or the relatives no longer use the property as their <br/>
<a id="pl.339.13"></a><var>339.13</var>homestead. Upon the sale or transfer of the homestead property, a certificate of value must <br/>
<a id="pl.339.14"></a><var>339.14</var>be timely filed with the county auditor as provided under section 
         <statute_ref>272.115</statute_ref>. Failure to <br/>
<a id="pl.339.15"></a><var>339.15</var>notify the assessor within 30 days that the property has been sold, transferred, or that the <br/>
<a id="pl.339.16"></a><var>339.16</var>owner, the spouse of the owner, or the relative is no longer occupying the property as a <br/>
<a id="pl.339.17"></a><var>339.17</var>homestead, shall result in the penalty provided under this subdivision and the property <br/>
<a id="pl.339.18"></a><var>339.18</var>will lose its current homestead status.<br/>
<a id="pl.339.19"></a><var>339.19</var>    (f) If the homestead application is not returned within 30 days, the county will send a <br/>
<a id="pl.339.20"></a><var>339.20</var>second application to the present owners of record. The notice of proposed property taxes <br/>
<a id="pl.339.21"></a><var>339.21</var>prepared under section 
<statute_ref>275.065, subdivision 3</statute_ref>, shall reflect the property's classification. If <br/>
<a id="pl.339.22"></a><var>339.22</var>a homestead application has not been filed with the county by December 15, the assessor <br/>
<a id="pl.339.23"></a><var>339.23</var>shall classify the property as nonhomestead for the current assessment year for taxes <br/>
<a id="pl.339.24"></a><var>339.24</var>payable in the following year, provided that the owner may be entitled to receive the <br/>
<a id="pl.339.25"></a><var>339.25</var>homestead classification by proper application under section 
         <statute_ref>375.192</statute_ref>.<br/>
<a id="pl.339.26"></a><var>339.26</var>    Subd. 13a. <b>Occupant list.</b> (g) At the request of the commissioner, each county <br/>
<a id="pl.339.27"></a><var>339.27</var>must give the commissioner a list that includes the name and Social Security number <br/>
<a id="pl.339.28"></a><var>339.28</var>of each occupant of homestead property who is the property owner, property owner's <br/>
<a id="pl.339.29"></a><var>339.29</var>spouse, qualifying relative of a property owner, or a spouse of a qualifying relative. The <br/>
<a id="pl.339.30"></a><var>339.30</var>commissioner shall use the information provided on the lists as appropriate under the law, <br/>
<a id="pl.339.31"></a><var>339.31</var>including for the detection of improper claims by owners, or relatives of owners, under <br/>
<a id="pl.339.32"></a><var>339.32</var>chapter 290A.<br/>
<a id="pl.339.33"></a><var>339.33</var>    Subd. 13b. <b>Improper homestead.</b> (h) (a) If the commissioner finds that a <br/>
<a id="pl.339.34"></a><var>339.34</var>property owner may be claiming a fraudulent homestead, the commissioner shall notify <br/>
<a id="pl.339.35"></a><var>339.35</var>the appropriate counties. Within 90 days of the notification, the county assessor shall <br/>
<a id="pl.339.36"></a><var>339.36</var>investigate to determine if the homestead classification was properly claimed. If the <br/>
<a id="pl.340.1"></a><var>340.1</var>property owner does not qualify, the county assessor shall notify the county auditor who <br/>
<a id="pl.340.2"></a><var>340.2</var>will determine the amount of homestead benefits that had been improperly allowed. For the <br/>
<a id="pl.340.3"></a><var>340.3</var>purpose of this section subdivision, "homestead benefits" means the tax reduction resulting <br/>
<a id="pl.340.4"></a><var>340.4</var>from the classification as a homestead under section 
         <statute_ref>273.13</statute_ref>, the taconite homestead credit <br/>
<a id="pl.340.5"></a><var>340.5</var>under section 
         <statute_ref>273.135</statute_ref>, the residential homestead and agricultural homestead credits under <br/>
<a id="pl.340.6"></a><var>340.6</var>section 
         <statute_ref>273.1384</statute_ref>, and the supplemental homestead credit under section 
         <statute_ref>273.1391</statute_ref>.<br/>
<a id="pl.340.7"></a><var>340.7</var>    The county auditor shall send a notice to the person who owned the affected property <br/>
<a id="pl.340.8"></a><var>340.8</var>at the time the homestead application related to the improper homestead was filed, <br/>
<a id="pl.340.9"></a><var>340.9</var>demanding reimbursement of the homestead benefits plus a penalty equal to 100 percent <br/>
<a id="pl.340.10"></a><var>340.10</var>of the homestead benefits. The person notified may appeal the county's determination <br/>
<a id="pl.340.11"></a><var>340.11</var>by serving copies of a petition for review with county officials as provided in section <br/>
<statute_ref><a id="pl.340.12"></a><var>340.12</var>278.01
         </statute_ref> and filing proof of service as provided in section 
         <statute_ref>278.01</statute_ref> with the Minnesota Tax <br/>
<a id="pl.340.13"></a><var>340.13</var>Court within 60 days of the date of the notice from the county. Procedurally, the appeal <br/>
<a id="pl.340.14"></a><var>340.14</var>is governed by the provisions in chapter 271 which apply to the appeal of a property tax <br/>
<a id="pl.340.15"></a><var>340.15</var>assessment or levy, but without requiring any prepayment of the amount in controversy. If <br/>
<a id="pl.340.16"></a><var>340.16</var>the amount of homestead benefits and penalty is not paid within 60 days, and if no appeal <br/>
<a id="pl.340.17"></a><var>340.17</var>has been filed, the county auditor shall certify the amount of taxes and penalty to the county <br/>
<a id="pl.340.18"></a><var>340.18</var>treasurer. The county treasurer will add interest to the unpaid homestead benefits and <br/>
<a id="pl.340.19"></a><var>340.19</var>penalty amounts at the rate provided in section 
         <statute_ref>279.03</statute_ref> for real property taxes becoming <br/>
<a id="pl.340.20"></a><var>340.20</var>delinquent in the calendar year during which the amount remains unpaid. Interest may be <br/>
<a id="pl.340.21"></a><var>340.21</var>assessed for the period beginning 60 days after demand for payment was made.<br/>
<a id="pl.340.22"></a><var>340.22</var>    If the person notified is the current owner of the property, the treasurer may add the <br/>
<a id="pl.340.23"></a><var>340.23</var>total amount of homestead benefits, penalty, interest, and costs to the ad valorem taxes <br/>
<a id="pl.340.24"></a><var>340.24</var>otherwise payable on the property by including the amounts on the property tax statements <br/>
<a id="pl.340.25"></a><var>340.25</var>under section 
         <statute_ref>276.04, subdivision 3</statute_ref>. The amounts added under this paragraph to the ad <br/>
<a id="pl.340.26"></a><var>340.26</var>valorem taxes shall include interest accrued through December 31 of the year preceding <br/>
<a id="pl.340.27"></a><var>340.27</var>the taxes payable year for which the amounts are first added. These amounts, when added <br/>
<a id="pl.340.28"></a><var>340.28</var>to the property tax statement, become subject to all the laws for the enforcement of real or <br/>
<a id="pl.340.29"></a><var>340.29</var>personal property taxes for that year, and for any subsequent year.<br/>
<a id="pl.340.30"></a><var>340.30</var>    If the person notified is not the current owner of the property, the treasurer may <br/>
<a id="pl.340.31"></a><var>340.31</var>collect the amounts due under the Revenue Recapture Act in chapter 270A, or use any of <br/>
<a id="pl.340.32"></a><var>340.32</var>the powers granted in sections 
         <statute_ref>277.20</statute_ref> and 
         <statute_ref>277.21</statute_ref> without exclusion, to enforce payment <br/>
<a id="pl.340.33"></a><var>340.33</var>of the homestead benefits, penalty, interest, and costs, as if those amounts were delinquent <br/>
<a id="pl.340.34"></a><var>340.34</var>tax obligations of the person who owned the property at the time the application related to <br/>
<a id="pl.340.35"></a><var>340.35</var>the improperly allowed homestead was filed. The treasurer may relieve a prior owner of <br/>
<a id="pl.340.36"></a><var>340.36</var>personal liability for the homestead benefits, penalty, interest, and costs, and instead extend <br/>
<a id="pl.341.1"></a><var>341.1</var>those amounts on the tax lists against the property as provided in this paragraph to the extent <br/>
<a id="pl.341.2"></a><var>341.2</var>that the current owner agrees in writing. On all demands, billings, property tax statements, <br/>
<a id="pl.341.3"></a><var>341.3</var>and related correspondence, the county must list and state separately the amounts of <br/>
<a id="pl.341.4"></a><var>341.4</var>homestead benefits, penalty, interest and costs being demanded, billed or assessed.<br/>
<a id="pl.341.5"></a><var>341.5</var>    (i) (b) Any amount of homestead benefits recovered by the county from the property <br/>
<a id="pl.341.6"></a><var>341.6</var>owner shall be distributed to the county, city or town, and school district where the <br/>
<a id="pl.341.7"></a><var>341.7</var>property is located in the same proportion that each taxing district's levy was to the total <br/>
<a id="pl.341.8"></a><var>341.8</var>of the three taxing districts' levy for the current year. Any amount recovered attributable <br/>
<a id="pl.341.9"></a><var>341.9</var>to taconite homestead credit shall be transmitted to the St. Louis County auditor to be <br/>
<a id="pl.341.10"></a><var>341.10</var>deposited in the taconite property tax relief account. Any amount recovered that is <br/>
<a id="pl.341.11"></a><var>341.11</var>attributable to supplemental homestead credit is to be transmitted to the commissioner of <br/>
<a id="pl.341.12"></a><var>341.12</var>revenue for deposit in the general fund of the state treasury. The total amount of penalty <br/>
<a id="pl.341.13"></a><var>341.13</var>collected must be deposited in the county general fund.<br/>
<a id="pl.341.14"></a><var>341.14</var>    (j) (c) If a property owner has applied for more than one homestead and the county <br/>
<a id="pl.341.15"></a><var>341.15</var>assessors cannot determine which property should be classified as homestead, the county <br/>
<a id="pl.341.16"></a><var>341.16</var>assessors will refer the information to the commissioner. The commissioner shall make <br/>
<a id="pl.341.17"></a><var>341.17</var>the determination and notify the counties within 60 days.<br/>
<a id="pl.341.18"></a><var>341.18</var>    Subd. 13c. <b>Property lists.</b> (k) In addition to lists of homestead properties, the <br/>
<a id="pl.341.19"></a><var>341.19</var>commissioner may ask the counties to furnish lists of all properties and the record owners. <br/>
<a id="pl.341.20"></a><var>341.20</var>The Social Security numbers and federal identification numbers that are maintained by <br/>
<a id="pl.341.21"></a><var>341.21</var>a county or city assessor for property tax administration purposes, and that may appear <br/>
<a id="pl.341.22"></a><var>341.22</var>on the lists retain their classification as private or nonpublic data; but may be viewed, <br/>
<a id="pl.341.23"></a><var>341.23</var>accessed, and used by the county auditor or treasurer of the same county for the limited <br/>
<a id="pl.341.24"></a><var>341.24</var>purpose of assisting the commissioner in the preparation of microdata samples under <br/>
<a id="pl.341.25"></a><var>341.25</var>section 
         <statute_ref>270C.12</statute_ref>. The commissioner shall use the information provided on the lists as <br/>
<a id="pl.341.26"></a><var>341.26</var>appropriate under the law, including for the detection of improper claims by owners, or <br/>
<a id="pl.341.27"></a><var>341.27</var>relatives of owners, under chapter 290A.<br/>
<a id="pl.341.28"></a><var>341.28</var>    Subd. 13d. <b>Homestead data.</b> (l) On or before April 30 each year beginning in 2007, <br/>
<a id="pl.341.29"></a><var>341.29</var>each county must provide the commissioner with the following data for each parcel of <br/>
<a id="pl.341.30"></a><var>341.30</var>homestead property by electronic means as defined in section 
         <statute_ref>289A.02, subdivision 8</statute_ref>:<br/>
<a id="pl.341.31"></a><var>341.31</var>    (i) (1) the property identification number assigned to the parcel for purposes of <br/>
<a id="pl.341.32"></a><var>341.32</var>taxes payable in the current year;<br/>
<a id="pl.341.33"></a><var>341.33</var>    (ii) (2) the name and Social Security number of each occupant of homestead property <br/>
<a id="pl.341.34"></a><var>341.34</var>who is the property owner, property owner's spouse, qualifying relative of a property <br/>
<a id="pl.341.35"></a><var>341.35</var>owner, or spouse of a qualifying relative;<br/>
<a id="pl.342.1"></a><var>342.1</var>    (iii) (3) the classification of the property under section 
         <statute_ref>273.13</statute_ref> for taxes payable <br/>
<a id="pl.342.2"></a><var>342.2</var>in the current year and in the prior year;<br/>
<a id="pl.342.3"></a><var>342.3</var>    (iv) (4) an indication of whether the property was classified as a homestead for <br/>
<a id="pl.342.4"></a><var>342.4</var>taxes payable in the current year because of occupancy by a relative of the owner or <br/>
<a id="pl.342.5"></a><var>342.5</var>by a spouse of a relative;<br/>
<a id="pl.342.6"></a><var>342.6</var>    (v) (5) the property taxes payable as defined in section 
         <statute_ref>290A.03, subdivision 13</statute_ref>, for <br/>
<a id="pl.342.7"></a><var>342.7</var>the current year and the prior year;<br/>
<a id="pl.342.8"></a><var>342.8</var>    (vi) (6) the market value of improvements to the property first assessed for tax <br/>
<a id="pl.342.9"></a><var>342.9</var>purposes for taxes payable in the current year;<br/>
<a id="pl.342.10"></a><var>342.10</var>    (vii) (7) the assessor's estimated market value assigned to the property for taxes <br/>
<a id="pl.342.11"></a><var>342.11</var>payable in the current year and the prior year;<br/>
<a id="pl.342.12"></a><var>342.12</var>    (viii) (8) the taxable market value assigned to the property for taxes payable in the <br/>
<a id="pl.342.13"></a><var>342.13</var>current year and the prior year;<br/>
<a id="pl.342.14"></a><var>342.14</var>    (ix) (9) whether there are delinquent property taxes owing on the homestead;<br/>
<a id="pl.342.15"></a><var>342.15</var>    (x) (10) the unique taxing district in which the property is located; and<br/>
<a id="pl.342.16"></a><var>342.16</var>    (xi) (11) such other information as the commissioner decides is necessary.<br/>
<a id="pl.342.17"></a><var>342.17</var>    The commissioner shall use the information provided on the lists as appropriate <br/>
<a id="pl.342.18"></a><var>342.18</var>under the law, including for the detection of improper claims by owners, or relatives <br/>
<a id="pl.342.19"></a><var>342.19</var>of owners, under chapter 290A.<br/>
<a id="pl.342.20"></a><var>342.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.11.0"></a><a id="pl.342.21"></a><var>342.21</var>    Sec. 11. <b>[273.1245] CLASSIFICATION OF DATA.</b><br/>
<a id="pl.342.22"></a><var>342.22</var>    Subdivision 1. <b>Private or nonpublic data.</b> The following data are private or <br/>
<a id="pl.342.23"></a><var>342.23</var>nonpublic data as defined in 13.02, subdivisions 9 and 12, when they are submitted to a <br/>
<a id="pl.342.24"></a><var>342.24</var>county or local assessor under section 273.124, 273.13, or another section, to support a <br/>
<a id="pl.342.25"></a><var>342.25</var>claim for the property tax homestead classification under section 273.13, or other property <br/>
<a id="pl.342.26"></a><var>342.26</var>tax classification or benefit that is provided under section 273.13:<br/>
<a id="pl.342.27"></a><var>342.27</var>(1) Social Security numbers;<br/>
<a id="pl.342.28"></a><var>342.28</var>(2) copies of state or federal income tax returns; and<br/>
<a id="pl.342.29"></a><var>342.29</var>(3) state or federal income tax return information, including the federal income <br/>
<a id="pl.342.30"></a><var>342.30</var>tax schedule F.<br/>
<a id="pl.342.31"></a><var>342.31</var>    Subd. 2. <b>Disclosure.</b> The assessor shall disclose the data described in subdivision 1 <br/>
<a id="pl.342.32"></a><var>342.32</var>to the commissioner of revenue as provided by law. The assessor shall also disclose all or <br/>
<a id="pl.342.33"></a><var>342.33</var>portions of the data described in subdivision 1 to the county treasurer solely for the purpose <br/>
<a id="pl.342.34"></a><var>342.34</var>of proceeding under the Revenue Recapture Act to recover personal property taxes owing.<br/>
<a id="pl.343.1"></a><var>343.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.12.0"></a><a id="pl.343.2"></a><var>343.2</var>    Sec. 12. Minnesota Statutes 2012, section 273.13, subdivision 23, is amended to read:<br/>
<a id="pl.343.3"></a><var>343.3</var>    Subd. 23. <b>Class 2.</b> (a) An agricultural homestead consists of class 2a agricultural <br/>
<a id="pl.343.4"></a><var>343.4</var>land that is homesteaded, along with any class 2b rural vacant land that is contiguous to <br/>
<a id="pl.343.5"></a><var>343.5</var>the class 2a land under the same ownership. The market value of the house and garage <br/>
<a id="pl.343.6"></a><var>343.6</var>and immediately surrounding one acre of land has the same class rates as class 1a or 1b <br/>
<a id="pl.343.7"></a><var>343.7</var>property under subdivision 22. The value of the remaining land including improvements <br/>
<a id="pl.343.8"></a><var>343.8</var>up to the first tier valuation limit of agricultural homestead property has a net class rate <br/>
<a id="pl.343.9"></a><var>343.9</var>of 0.5 percent of market value. The remaining property over the first tier has a class rate <br/>
<a id="pl.343.10"></a><var>343.10</var>of one percent of market value. For purposes of this subdivision, the "first tier valuation <br/>
<a id="pl.343.11"></a><var>343.11</var>limit of agricultural homestead property" and "first tier" means the limit certified under <br/>
<a id="pl.343.12"></a><var>343.12</var>section 
         <statute_ref>273.11</statute_ref>, subdivision 23.<br/>
<a id="pl.343.13"></a><var>343.13</var>    (b) Class 2a agricultural land consists of parcels of property, or portions thereof, that <br/>
<a id="pl.343.14"></a><var>343.14</var>are agricultural land and buildings. Class 2a property has a net class rate of one percent of <br/>
<a id="pl.343.15"></a><var>343.15</var>market value, unless it is part of an agricultural homestead under paragraph (a). Class 2a <br/>
<a id="pl.343.16"></a><var>343.16</var>property must also include any property that would otherwise be classified as 2b, but is <br/>
<a id="pl.343.17"></a><var>343.17</var>interspersed with class 2a property, including but not limited to sloughs, wooded wind <br/>
<a id="pl.343.18"></a><var>343.18</var>shelters, acreage abutting ditches, ravines, rock piles, land subject to a setback requirement, <br/>
<a id="pl.343.19"></a><var>343.19</var>and other similar land that is impractical for the assessor to value separately from the rest of <br/>
<a id="pl.343.20"></a><var>343.20</var>the property or that is unlikely to be able to be sold separately from the rest of the property.<br/>
<a id="pl.343.21"></a><var>343.21</var>    An assessor may classify the part of a parcel described in this subdivision that is used <br/>
<a id="pl.343.22"></a><var>343.22</var>for agricultural purposes as class 2a and the remainder in the class appropriate to its use.<br/>
<a id="pl.343.23"></a><var>343.23</var>    (c) Class 2b rural vacant land consists of parcels of property, or portions thereof, <br/>
<a id="pl.343.24"></a><var>343.24</var>that are unplatted real estate, rural in character and not used for agricultural purposes, <br/>
<a id="pl.343.25"></a><var>343.25</var>including land used for growing trees for timber, lumber, and wood and wood products, <br/>
<a id="pl.343.26"></a><var>343.26</var>that is not improved with a structure. The presence of a minor, ancillary nonresidential <br/>
<a id="pl.343.27"></a><var>343.27</var>structure as defined by the commissioner of revenue does not disqualify the property from <br/>
<a id="pl.343.28"></a><var>343.28</var>classification under this paragraph. Any parcel of 20 acres or more improved with a <br/>
<a id="pl.343.29"></a><var>343.29</var>structure that is not a minor, ancillary nonresidential structure must be split-classified, and <br/>
<a id="pl.343.30"></a><var>343.30</var>ten acres must be assigned to the split parcel containing the structure. Class 2b property <br/>
<a id="pl.343.31"></a><var>343.31</var>has a net class rate of one percent of market value unless it is part of an agricultural <br/>
<a id="pl.343.32"></a><var>343.32</var>homestead under paragraph (a), or qualifies as class 2c under paragraph (d).<br/>
<a id="pl.343.33"></a><var>343.33</var>    (d) Class 2c managed forest land consists of no less than 20 and no more than 1,920 <br/>
<a id="pl.343.34"></a><var>343.34</var>acres statewide per taxpayer that is being managed under a forest management plan that <br/>
<a id="pl.343.35"></a><var>343.35</var>meets the requirements of chapter 290C, but is not enrolled in the sustainable forest <br/>
<a id="pl.344.1"></a><var>344.1</var>resource management incentive program. It has a class rate of .65 percent, provided that <br/>
<a id="pl.344.2"></a><var>344.2</var>the owner of the property must apply to the assessor in order for the property to initially <br/>
<a id="pl.344.3"></a><var>344.3</var>qualify for the reduced rate and provide the information required by the assessor to verify <br/>
<a id="pl.344.4"></a><var>344.4</var>that the property qualifies for the reduced rate. If the assessor receives the application <br/>
<a id="pl.344.5"></a><var>344.5</var>and information before May 1 in an assessment year, the property qualifies beginning <br/>
<a id="pl.344.6"></a><var>344.6</var>with that assessment year. If the assessor receives the application and information after <br/>
<a id="pl.344.7"></a><var>344.7</var>April 30 in an assessment year, the property may not qualify until the next assessment <br/>
<a id="pl.344.8"></a><var>344.8</var>year. The commissioner of natural resources must concur that the land is qualified. The <br/>
<a id="pl.344.9"></a><var>344.9</var>commissioner of natural resources shall annually provide county assessors verification <br/>
<a id="pl.344.10"></a><var>344.10</var>information on a timely basis. The presence of a minor, ancillary nonresidential structure <br/>
<a id="pl.344.11"></a><var>344.11</var>as defined by the commissioner of revenue does not disqualify the property from <br/>
<a id="pl.344.12"></a><var>344.12</var>classification under this paragraph.<br/>
<a id="pl.344.13"></a><var>344.13</var>    (e) Agricultural land as used in this section means:<br/>
<a id="pl.344.14"></a><var>344.14</var>    (1) contiguous acreage of ten acres or more, used during the preceding year for <br/>
<a id="pl.344.15"></a><var>344.15</var>agricultural purposes.; or<br/>
<a id="pl.344.16"></a><var>344.16</var>    (2) contiguous acreage used during the preceding year for an intensive livestock or <br/>
<a id="pl.344.17"></a><var>344.17</var>poultry confinement operation, provided that land used only for pasturing or grazing <br/>
<a id="pl.344.18"></a><var>344.18</var>does not qualify under this clause.<br/>
<a id="pl.344.19"></a><var>344.19</var>    "Agricultural purposes" as used in this section means the raising, cultivation, drying, <br/>
<a id="pl.344.20"></a><var>344.20</var>or storage of agricultural products for sale, or the storage of machinery or equipment <br/>
<a id="pl.344.21"></a><var>344.21</var>used in support of agricultural production by the same farm entity. For a property to be <br/>
<a id="pl.344.22"></a><var>344.22</var>classified as agricultural based only on the drying or storage of agricultural products, <br/>
<a id="pl.344.23"></a><var>344.23</var>the products being dried or stored must have been produced by the same farm entity as <br/>
<a id="pl.344.24"></a><var>344.24</var>the entity operating the drying or storage facility. "Agricultural purposes" also includes <br/>
<a id="pl.344.25"></a><var>344.25</var>enrollment in the Reinvest in Minnesota program under sections 
         <statute_ref>103F.501</statute_ref> to 
         <statute_ref>103F.535</statute_ref> or <br/>
<a id="pl.344.26"></a><var>344.26</var>the federal Conservation Reserve Program as contained in Public Law 99-198 or a similar <br/>
<a id="pl.344.27"></a><var>344.27</var>state or federal conservation program if the property was classified as agricultural (i) <br/>
<a id="pl.344.28"></a><var>344.28</var>under this subdivision for the assessment year 2002 taxes payable in 2003 because of its <br/>
<a id="pl.344.29"></a><var>344.29</var>enrollment in a qualifying program and the land remains enrolled or (ii) in the year prior <br/>
<a id="pl.344.30"></a><var>344.30</var>to its enrollment. Agricultural classification shall not be based upon the market value of <br/>
<a id="pl.344.31"></a><var>344.31</var>any residential structures on the parcel or contiguous parcels under the same ownership.<br/>
<a id="pl.344.32"></a><var>344.32</var>    "Contiguous acreage," for purposes of this paragraph, means all of, or a contiguous <br/>
<a id="pl.344.33"></a><var>344.33</var>portion of, a tax parcel as described in section 272.193, or all of, or a contiguous portion <br/>
<a id="pl.344.34"></a><var>344.34</var>of, a set of contiguous tax parcels under that section that are owned by the same person.<br/>
<a id="pl.344.35"></a><var>344.35</var>    (f) Real estate of Agricultural land under this section also includes:<br/>
<a id="pl.345.1"></a><var>345.1</var>    (1) contiguous acreage that is less than ten acres, which is in size and exclusively or <br/>
<a id="pl.345.2"></a><var>345.2</var>intensively used in the preceding year for raising or cultivating agricultural products, shall <br/>
<a id="pl.345.3"></a><var>345.3</var>be considered as agricultural land. To qualify under this paragraph, property that includes <br/>
<a id="pl.345.4"></a><var>345.4</var>a residential structure must be used intensively for one of the following purposes:; or<br/>
<a id="pl.345.5"></a><var>345.5</var>    (2) contiguous acreage that contains a residence and is less than 11 acres in size, if <br/>
<a id="pl.345.6"></a><var>345.6</var>the contiguous acreage exclusive of the house, garage, and surrounding one acre of land <br/>
<a id="pl.345.7"></a><var>345.7</var>was used in the preceding year for one or more of the following three uses:<br/>
<a id="pl.345.8"></a><var>345.8</var>    (i) for an intensive grain drying or storage of grain operation, or for intensive <br/>
<a id="pl.345.9"></a><var>345.9</var>machinery or equipment storage of machinery or equipment activities used to support <br/>
<a id="pl.345.10"></a><var>345.10</var>agricultural activities on other parcels of property operated by the same farming entity;<br/>
<a id="pl.345.11"></a><var>345.11</var>    (ii) as a nursery, provided that only those acres used intensively to produce nursery <br/>
<a id="pl.345.12"></a><var>345.12</var>stock are considered agricultural land; or<br/>
<a id="pl.345.13"></a><var>345.13</var>    (iii) for livestock or poultry confinement, provided that land that is used only for <br/>
<a id="pl.345.14"></a><var>345.14</var>pasturing and grazing does not qualify; or<br/>
<a id="pl.345.15"></a><var>345.15</var>    (iv) (iii) for intensive market farming; for purposes of this paragraph, "market <br/>
<a id="pl.345.16"></a><var>345.16</var>farming" means the cultivation of one or more fruits or vegetables or production of animal <br/>
<a id="pl.345.17"></a><var>345.17</var>or other agricultural products for sale to local markets by the farmer or an organization <br/>
<a id="pl.345.18"></a><var>345.18</var>with which the farmer is affiliated.<br/>
<a id="pl.345.19"></a><var>345.19</var>    "Contiguous acreage," for purposes of this paragraph, means all of a tax parcel as <br/>
<a id="pl.345.20"></a><var>345.20</var>described in section 272.193, or all of a set of contiguous tax parcels under that section <br/>
<a id="pl.345.21"></a><var>345.21</var>that are owned by the same person.<br/>
<a id="pl.345.22"></a><var>345.22</var>    (g) Land shall be classified as agricultural even if all or a portion of the agricultural <br/>
<a id="pl.345.23"></a><var>345.23</var>use of that property is the leasing to, or use by another person for agricultural purposes.<br/>
<a id="pl.345.24"></a><var>345.24</var>    Classification under this subdivision is not determinative for qualifying under <br/>
<a id="pl.345.25"></a><var>345.25</var>section 
         <statute_ref>273.111</statute_ref>.<br/>
<a id="pl.345.26"></a><var>345.26</var>    (h) The property classification under this section supersedes, for property tax <br/>
<a id="pl.345.27"></a><var>345.27</var>purposes only, any locally administered agricultural policies or land use restrictions that <br/>
<a id="pl.345.28"></a><var>345.28</var>define minimum or maximum farm acreage.<br/>
<a id="pl.345.29"></a><var>345.29</var>    (i) The term "agricultural products" as used in this subdivision includes production <br/>
<a id="pl.345.30"></a><var>345.30</var>for sale of:<br/>
<a id="pl.345.31"></a><var>345.31</var>    (1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing <br/>
<a id="pl.345.32"></a><var>345.32</var>animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains, <br/>
<a id="pl.345.33"></a><var>345.33</var>bees, and apiary products by the owner;<br/>
<a id="pl.345.34"></a><var>345.34</var>    (2) fish bred for sale and consumption if the fish breeding occurs on land zoned <br/>
<a id="pl.345.35"></a><var>345.35</var>for agricultural use;<br/>
<a id="pl.346.1"></a><var>346.1</var>    (3) the commercial boarding of horses, which may include related horse training and <br/>
<a id="pl.346.2"></a><var>346.2</var>riding instruction, if the boarding is done on property that is also used for raising pasture <br/>
<a id="pl.346.3"></a><var>346.3</var>to graze horses or raising or cultivating other agricultural products as defined in clause (1);<br/>
<a id="pl.346.4"></a><var>346.4</var>    (4) property which is owned and operated by nonprofit organizations used for <br/>
<a id="pl.346.5"></a><var>346.5</var>equestrian activities, excluding racing;<br/>
<a id="pl.346.6"></a><var>346.6</var>    (5) game birds and waterfowl bred and raised (i) on a game farm licensed under <br/>
<a id="pl.346.7"></a><var>346.7</var>section 
         <statute_ref>97A.105</statute_ref>, provided that the annual licensing report to the Department of Natural <br/>
<a id="pl.346.8"></a><var>346.8</var>Resources, which must be submitted annually by March 30 to the assessor, indicates <br/>
<a id="pl.346.9"></a><var>346.9</var>that at least 500 birds were raised or used for breeding stock on the property during the <br/>
<a id="pl.346.10"></a><var>346.10</var>preceding year and that the owner provides a copy of the owner's most recent schedule F; <br/>
<a id="pl.346.11"></a><var>346.11</var>or (ii) for use on a shooting preserve licensed under section 
         <statute_ref>97A.115</statute_ref>;<br/>
<a id="pl.346.12"></a><var>346.12</var>    (6) insects primarily bred to be used as food for animals;<br/>
<a id="pl.346.13"></a><var>346.13</var>    (7) trees, grown for sale as a crop, including short rotation woody crops, and not <br/>
<a id="pl.346.14"></a><var>346.14</var>sold for timber, lumber, wood, or wood products; and<br/>
<a id="pl.346.15"></a><var>346.15</var>    (8) maple syrup taken from trees grown by a person licensed by the Minnesota <br/>
<a id="pl.346.16"></a><var>346.16</var>Department of Agriculture under chapter 28A as a food processor.<br/>
<a id="pl.346.17"></a><var>346.17</var>    (j) If a parcel used for agricultural purposes is also used for commercial or industrial <br/>
<a id="pl.346.18"></a><var>346.18</var>purposes, including but not limited to:<br/>
<a id="pl.346.19"></a><var>346.19</var>    (1) wholesale and retail sales;<br/>
<a id="pl.346.20"></a><var>346.20</var>    (2) processing of raw agricultural products or other goods;<br/>
<a id="pl.346.21"></a><var>346.21</var>    (3) warehousing or storage of processed goods; and<br/>
<a id="pl.346.22"></a><var>346.22</var>    (4) office facilities for the support of the activities enumerated in clauses (1), (2), <br/>
<a id="pl.346.23"></a><var>346.23</var>and (3),<br/>
<a id="pl.346.24"></a><var>346.24</var>the assessor shall classify the part of the parcel used for agricultural purposes as class <br/>
<a id="pl.346.25"></a><var>346.25</var>1b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its <br/>
<a id="pl.346.26"></a><var>346.26</var>use. The grading, sorting, and packaging of raw agricultural products for first sale is <br/>
<a id="pl.346.27"></a><var>346.27</var>considered an agricultural purpose. A greenhouse or other building where horticultural <br/>
<a id="pl.346.28"></a><var>346.28</var>or nursery products are grown that is also used for the conduct of retail sales must be <br/>
<a id="pl.346.29"></a><var>346.29</var>classified as agricultural if it is primarily used for the growing of horticultural or nursery <br/>
<a id="pl.346.30"></a><var>346.30</var>products from seed, cuttings, or roots and occasionally as a showroom for the retail sale of <br/>
<a id="pl.346.31"></a><var>346.31</var>those products. Use of a greenhouse or building only for the display of already grown <br/>
<a id="pl.346.32"></a><var>346.32</var>horticultural or nursery products does not qualify as an agricultural purpose.<br/>
<a id="pl.346.33"></a><var>346.33</var>    (k) The assessor shall determine and list separately on the records the market value <br/>
<a id="pl.346.34"></a><var>346.34</var>of the homestead dwelling and the one acre of land on which that dwelling is located. If <br/>
<a id="pl.346.35"></a><var>346.35</var>any farm buildings or structures are located on this homesteaded acre of land, their market <br/>
<a id="pl.346.36"></a><var>346.36</var>value shall not be included in this separate determination.<br/>
<a id="pl.347.1"></a><var>347.1</var>    (l) Class 2d airport landing area consists of a landing area or public access area of <br/>
<a id="pl.347.2"></a><var>347.2</var>a privately owned public use airport. It has a class rate of one percent of market value. <br/>
<a id="pl.347.3"></a><var>347.3</var>To qualify for classification under this paragraph, a privately owned public use airport <br/>
<a id="pl.347.4"></a><var>347.4</var>must be licensed as a public airport under section 
         <statute_ref>360.018</statute_ref>. For purposes of this paragraph, <br/>
<a id="pl.347.5"></a><var>347.5</var>"landing area" means that part of a privately owned public use airport properly cleared, <br/>
<a id="pl.347.6"></a><var>347.6</var>regularly maintained, and made available to the public for use by aircraft and includes <br/>
<a id="pl.347.7"></a><var>347.7</var>runways, taxiways, aprons, and sites upon which are situated landing or navigational aids. <br/>
<a id="pl.347.8"></a><var>347.8</var>A landing area also includes land underlying both the primary surface and the approach <br/>
<a id="pl.347.9"></a><var>347.9</var>surfaces that comply with all of the following:<br/>
<a id="pl.347.10"></a><var>347.10</var>    (i) the land is properly cleared and regularly maintained for the primary purposes of <br/>
<a id="pl.347.11"></a><var>347.11</var>the landing, taking off, and taxiing of aircraft; but that portion of the land that contains <br/>
<a id="pl.347.12"></a><var>347.12</var>facilities for servicing, repair, or maintenance of aircraft is not included as a landing area;<br/>
<a id="pl.347.13"></a><var>347.13</var>    (ii) the land is part of the airport property; and<br/>
<a id="pl.347.14"></a><var>347.14</var>    (iii) the land is not used for commercial or residential purposes.<br/>
<a id="pl.347.15"></a><var>347.15</var>The land contained in a landing area under this paragraph must be described and certified <br/>
<a id="pl.347.16"></a><var>347.16</var>by the commissioner of transportation. The certification is effective until it is modified, <br/>
<a id="pl.347.17"></a><var>347.17</var>or until the airport or landing area no longer meets the requirements of this paragraph. <br/>
<a id="pl.347.18"></a><var>347.18</var>For purposes of this paragraph, "public access area" means property used as an aircraft <br/>
<a id="pl.347.19"></a><var>347.19</var>parking ramp, apron, or storage hangar, or an arrival and departure building in connection <br/>
<a id="pl.347.20"></a><var>347.20</var>with the airport.<br/>
<a id="pl.347.21"></a><var>347.21</var>    (m) Class 2e consists of land with a commercial aggregate deposit that is not actively <br/>
<a id="pl.347.22"></a><var>347.22</var>being mined and is not otherwise classified as class 2a or 2b, provided that the land is not <br/>
<a id="pl.347.23"></a><var>347.23</var>located in a county that has elected to opt-out of the aggregate preservation program as <br/>
<a id="pl.347.24"></a><var>347.24</var>provided in section 
         <statute_ref>273.1115, subdivision 6</statute_ref>. It has a class rate of one percent of market <br/>
<a id="pl.347.25"></a><var>347.25</var>value. To qualify for classification under this paragraph, the property must be at least <br/>
<a id="pl.347.26"></a><var>347.26</var>ten contiguous acres in size and the owner of the property must record with the county <br/>
<a id="pl.347.27"></a><var>347.27</var>recorder of the county in which the property is located an affidavit containing:<br/>
<a id="pl.347.28"></a><var>347.28</var>    (1) a legal description of the property;<br/>
<a id="pl.347.29"></a><var>347.29</var>    (2) a disclosure that the property contains a commercial aggregate deposit that is not <br/>
<a id="pl.347.30"></a><var>347.30</var>actively being mined but is present on the entire parcel enrolled;<br/>
<a id="pl.347.31"></a><var>347.31</var>    (3) documentation that the conditional use under the county or local zoning <br/>
<a id="pl.347.32"></a><var>347.32</var>ordinance of this property is for mining; and<br/>
<a id="pl.347.33"></a><var>347.33</var>    (4) documentation that a permit has been issued by the local unit of government <br/>
<a id="pl.347.34"></a><var>347.34</var>or the mining activity is allowed under local ordinance. The disclosure must include a <br/>
<a id="pl.347.35"></a><var>347.35</var>statement from a registered professional geologist, engineer, or soil scientist delineating <br/>
<a id="pl.347.36"></a><var>347.36</var>the deposit and certifying that it is a commercial aggregate deposit.<br/>
<a id="pl.348.1"></a><var>348.1</var>    For purposes of this section and section 
         <statute_ref>273.1115</statute_ref>, "commercial aggregate deposit" <br/>
<a id="pl.348.2"></a><var>348.2</var>means a deposit that will yield crushed stone or sand and gravel that is suitable for use <br/>
<a id="pl.348.3"></a><var>348.3</var>as a construction aggregate; and "actively mined" means the removal of top soil and <br/>
<a id="pl.348.4"></a><var>348.4</var>overburden in preparation for excavation or excavation of a commercial deposit.<br/>
<a id="pl.348.5"></a><var>348.5</var>    (n) When any portion of the property under this subdivision or subdivision 22 begins <br/>
<a id="pl.348.6"></a><var>348.6</var>to be actively mined, the owner must file a supplemental affidavit within 60 days from <br/>
<a id="pl.348.7"></a><var>348.7</var>the day any aggregate is removed stating the number of acres of the property that is <br/>
<a id="pl.348.8"></a><var>348.8</var>actively being mined. The acres actively being mined must be (1) valued and classified <br/>
<a id="pl.348.9"></a><var>348.9</var>under subdivision 24 in the next subsequent assessment year, and (2) removed from the <br/>
<a id="pl.348.10"></a><var>348.10</var>aggregate resource preservation property tax program under section 
         <statute_ref>273.1115</statute_ref>, if the <br/>
<a id="pl.348.11"></a><var>348.11</var>land was enrolled in that program. Copies of the original affidavit and all supplemental <br/>
<a id="pl.348.12"></a><var>348.12</var>affidavits must be filed with the county assessor, the local zoning administrator, and the <br/>
<a id="pl.348.13"></a><var>348.13</var>Department of Natural Resources, Division of Land and Minerals. A supplemental <br/>
<a id="pl.348.14"></a><var>348.14</var>affidavit must be filed each time a subsequent portion of the property is actively mined, <br/>
<a id="pl.348.15"></a><var>348.15</var>provided that the minimum acreage change is five acres, even if the actual mining activity <br/>
<a id="pl.348.16"></a><var>348.16</var>constitutes less than five acres.<br/>
<a id="pl.348.17"></a><var>348.17</var>(o) The definitions prescribed by the commissioner under paragraphs (c) and (d) are <br/>
<a id="pl.348.18"></a><var>348.18</var>not rules and are exempt from the rulemaking provisions of chapter 14, and the provisions <br/>
<a id="pl.348.19"></a><var>348.19</var>in section 
         <statute_ref>14.386</statute_ref> concerning exempt rules do not apply.<br/>
<a id="pl.348.20"></a><var>348.20</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2014 and <br/>
<a id="pl.348.21"></a><var>348.21</var>thereafter.<br/>
<br/>
<a id="bill.15.13.0"></a><a id="pl.348.22"></a><var>348.22</var>    Sec. 13. Minnesota Statutes 2012, section 273.13, subdivision 25, is amended to read:<br/>
<a id="pl.348.23"></a><var>348.23</var>    Subd. 25. <b>Class 4.</b> (a) Class 4a is residential real estate containing four or more <br/>
<a id="pl.348.24"></a><var>348.24</var>units and used or held for use by the owner or by the tenants or lessees of the owner <br/>
<a id="pl.348.25"></a><var>348.25</var>as a residence for rental periods of 30 days or more, excluding property qualifying for <br/>
<a id="pl.348.26"></a><var>348.26</var>class 4d. Class 4a also includes hospitals licensed under sections 
         <statute_ref>144.50</statute_ref> to 
         <statute_ref>144.56</statute_ref>, other <br/>
<a id="pl.348.27"></a><var>348.27</var>than hospitals exempt under section 
         <statute_ref>272.02</statute_ref>, and contiguous property used for hospital <br/>
<a id="pl.348.28"></a><var>348.28</var>purposes, without regard to whether the property has been platted or subdivided. The <br/>
<a id="pl.348.29"></a><var>348.29</var>market value of class 4a property has a class rate of 1.25 percent.<br/>
<a id="pl.348.30"></a><var>348.30</var>    (b) Class 4b includes:<br/>
<a id="pl.348.31"></a><var>348.31</var>    (1) residential real estate containing less than four units that does not qualify as class <br/>
<a id="pl.348.32"></a><var>348.32</var>4bb, other than seasonal residential recreational property;<br/>
<a id="pl.348.33"></a><var>348.33</var>    (2) manufactured homes not classified under any other provision;<br/>
<a id="pl.348.34"></a><var>348.34</var>    (3) a dwelling, garage, and surrounding one acre of property on a nonhomestead <br/>
<a id="pl.348.35"></a><var>348.35</var>farm classified under subdivision 23, paragraph (b) containing two or three units; and<br/>
<a id="pl.349.1"></a><var>349.1</var>    (4) unimproved property that is classified residential as determined under subdivision <br/>
<a id="pl.349.2"></a><var>349.2</var>33.<br/>
<a id="pl.349.3"></a><var>349.3</var>    The market value of class 4b property has a class rate of 1.25 percent.<br/>
<a id="pl.349.4"></a><var>349.4</var>    (c) Class 4bb includes:<br/>
<a id="pl.349.5"></a><var>349.5</var>    (1) nonhomestead residential real estate containing one unit, other than seasonal <br/>
<a id="pl.349.6"></a><var>349.6</var>residential recreational property; and<br/>
<a id="pl.349.7"></a><var>349.7</var>    (2) a single family dwelling, garage, and surrounding one acre of property on a <br/>
<a id="pl.349.8"></a><var>349.8</var>nonhomestead farm classified under subdivision 23, paragraph (b).<br/>
<a id="pl.349.9"></a><var>349.9</var>    Class 4bb property has the same class rates as class 1a property under subdivision 22.<br/>
<a id="pl.349.10"></a><var>349.10</var>    Property that has been classified as seasonal residential recreational property at <br/>
<a id="pl.349.11"></a><var>349.11</var>any time during which it has been owned by the current owner or spouse of the current <br/>
<a id="pl.349.12"></a><var>349.12</var>owner does not qualify for class 4bb.<br/>
<a id="pl.349.13"></a><var>349.13</var>    (d) Class 4c property includes:<br/>
<a id="pl.349.14"></a><var>349.14</var>    (1) except as provided in subdivision 22, paragraph (c), real and personal property <br/>
<a id="pl.349.15"></a><var>349.15</var>devoted to commercial temporary and seasonal residential occupancy for recreation <br/>
<a id="pl.349.16"></a><var>349.16</var>purposes, for not more than 250 days in the year preceding the year of assessment. For <br/>
<a id="pl.349.17"></a><var>349.17</var>purposes of this clause, property is devoted to a commercial purpose on a specific day <br/>
<a id="pl.349.18"></a><var>349.18</var>if any portion of the property is used for residential occupancy, and a fee is charged for <br/>
<a id="pl.349.19"></a><var>349.19</var>residential occupancy. Class 4c property under this clause must contain three or more <br/>
<a id="pl.349.20"></a><var>349.20</var>rental units. A "rental unit" is defined as a cabin, condominium, townhouse, sleeping room, <br/>
<a id="pl.349.21"></a><var>349.21</var>or individual camping site equipped with water and electrical hookups for recreational <br/>
<a id="pl.349.22"></a><var>349.22</var>vehicles. A camping pad offered for rent by a property that otherwise qualifies for class <br/>
<a id="pl.349.23"></a><var>349.23</var>4c under this clause is also class 4c under this clause regardless of the term of the rental <br/>
<a id="pl.349.24"></a><var>349.24</var>agreement, as long as the use of the camping pad does not exceed 250 days. In order for a <br/>
<a id="pl.349.25"></a><var>349.25</var>property to be classified under this clause, either (i) the business located on the property <br/>
<a id="pl.349.26"></a><var>349.26</var>must provide recreational activities, at least 40 percent of the annual gross lodging receipts <br/>
<a id="pl.349.27"></a><var>349.27</var>related to the property must be from business conducted during 90 consecutive days, <br/>
<a id="pl.349.28"></a><var>349.28</var>and either (A) at least 60 percent of all paid bookings by lodging guests during the year <br/>
<a id="pl.349.29"></a><var>349.29</var>must be for periods of at least two consecutive nights; or (B) at least 20 percent of the <br/>
<a id="pl.349.30"></a><var>349.30</var>annual gross receipts must be from charges for providing recreational activities, or (ii) the <br/>
<a id="pl.349.31"></a><var>349.31</var>business must contain 20 or fewer rental units, and must be located in a township or a city <br/>
<a id="pl.349.32"></a><var>349.32</var>with a population of 2,500 or less located outside the metropolitan area, as defined under <br/>
<a id="pl.349.33"></a><var>349.33</var>section 
         <statute_ref>473.121</statute_ref>, subdivision 2, that contains a portion of a state trail administered by the <br/>
<a id="pl.349.34"></a><var>349.34</var>Department of Natural Resources. For purposes of item (i)(A), a paid booking of five or <br/>
<a id="pl.349.35"></a><var>349.35</var>more nights shall be counted as two bookings. Class 4c property also includes commercial <br/>
<a id="pl.349.36"></a><var>349.36</var>use real property used exclusively for recreational purposes in conjunction with other class <br/>
<a id="pl.350.1"></a><var>350.1</var>4c property classified under this clause and devoted to temporary and seasonal residential <br/>
<a id="pl.350.2"></a><var>350.2</var>occupancy for recreational purposes, up to a total of two acres, provided the property is <br/>
<a id="pl.350.3"></a><var>350.3</var>not devoted to commercial recreational use for more than 250 days in the year preceding <br/>
<a id="pl.350.4"></a><var>350.4</var>the year of assessment and is located within two miles of the class 4c property with which <br/>
<a id="pl.350.5"></a><var>350.5</var>it is used. In order for a property to qualify for classification under this clause, the owner <br/>
<a id="pl.350.6"></a><var>350.6</var>must submit a declaration to the assessor designating the cabins or units occupied for 250 <br/>
<a id="pl.350.7"></a><var>350.7</var>days or less in the year preceding the year of assessment by January 15 of the assessment <br/>
<a id="pl.350.8"></a><var>350.8</var>year. Those cabins or units and a proportionate share of the land on which they are located <br/>
<a id="pl.350.9"></a><var>350.9</var>must be designated class 4c under this clause as otherwise provided. The remainder of the <br/>
<a id="pl.350.10"></a><var>350.10</var>cabins or units and a proportionate share of the land on which they are located will be <br/>
<a id="pl.350.11"></a><var>350.11</var>designated as class 3a. The owner of property desiring designation as class 4c property <br/>
<a id="pl.350.12"></a><var>350.12</var>under this clause must provide guest registers or other records demonstrating that the units <br/>
<a id="pl.350.13"></a><var>350.13</var>for which class 4c designation is sought were not occupied for more than 250 days in the <br/>
<a id="pl.350.14"></a><var>350.14</var>year preceding the assessment if so requested. The portion of a property operated as a <br/>
<a id="pl.350.15"></a><var>350.15</var>(1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5) other <br/>
<a id="pl.350.16"></a><var>350.16</var>nonresidential facility operated on a commercial basis not directly related to temporary and <br/>
<a id="pl.350.17"></a><var>350.17</var>seasonal residential occupancy for recreation purposes does not qualify for class 4c. For <br/>
<a id="pl.350.18"></a><var>350.18</var>the purposes of this paragraph, "recreational activities" means renting ice fishing houses, <br/>
<a id="pl.350.19"></a><var>350.19</var>boats and motors, snowmobiles, downhill or cross-country ski equipment; providing <br/>
<a id="pl.350.20"></a><var>350.20</var>marina services, launch services, or guide services; or selling bait and fishing tackle;<br/>
<a id="pl.350.21"></a><var>350.21</var>    (2) qualified property used as a golf course if:<br/>
<a id="pl.350.22"></a><var>350.22</var>    (i) it is open to the public on a daily fee basis. It may charge membership fees or <br/>
<a id="pl.350.23"></a><var>350.23</var>dues, but a membership fee may not be required in order to use the property for golfing, <br/>
<a id="pl.350.24"></a><var>350.24</var>and its green fees for golfing must be comparable to green fees typically charged by <br/>
<a id="pl.350.25"></a><var>350.25</var>municipal courses; and<br/>
<a id="pl.350.26"></a><var>350.26</var>    (ii) it meets the requirements of section 
         <statute_ref>273.112, subdivision 3</statute_ref>, paragraph (d).<br/>
<a id="pl.350.27"></a><var>350.27</var>    A structure used as a clubhouse, restaurant, or place of refreshment in conjunction <br/>
<a id="pl.350.28"></a><var>350.28</var>with the golf course is classified as class 3a property;<br/>
<a id="pl.350.29"></a><var>350.29</var>    (3) real property up to a maximum of three acres of land owned and used by a <br/>
<a id="pl.350.30"></a><var>350.30</var>nonprofit community service oriented organization and not used for residential purposes <br/>
<a id="pl.350.31"></a><var>350.31</var>on either a temporary or permanent basis, provided that:<br/>
<a id="pl.350.32"></a><var>350.32</var>    (i) the property is not used for a revenue-producing activity for more than six days <br/>
<a id="pl.350.33"></a><var>350.33</var>in the calendar year preceding the year of assessment; or<br/>
<a id="pl.350.34"></a><var>350.34</var>    (ii) the organization makes annual charitable contributions and donations at least <br/>
<a id="pl.350.35"></a><var>350.35</var>equal to the property's previous year's property taxes and the property is allowed to be <br/>
<a id="pl.351.1"></a><var>351.1</var>used for public and community meetings or events for no charge, as appropriate to the <br/>
<a id="pl.351.2"></a><var>351.2</var>size of the facility.<br/>
<a id="pl.351.3"></a><var>351.3</var>    For purposes of this clause:<br/>
<a id="pl.351.4"></a><var>351.4</var>    (A) "charitable contributions and donations" has the same meaning as lawful <br/>
<a id="pl.351.5"></a><var>351.5</var>gambling purposes under section 
         <statute_ref>349.12, subdivision 25</statute_ref>, excluding those purposes <br/>
<a id="pl.351.6"></a><var>351.6</var>relating to the payment of taxes, assessments, fees, auditing costs, and utility payments;<br/>
<a id="pl.351.7"></a><var>351.7</var>    (B) "property taxes" excludes the state general tax;<br/>
<a id="pl.351.8"></a><var>351.8</var>    (C) a "nonprofit community service oriented organization" means any corporation, <br/>
<a id="pl.351.9"></a><var>351.9</var>society, association, foundation, or institution organized and operated exclusively for <br/>
<a id="pl.351.10"></a><var>351.10</var>charitable, religious, fraternal, civic, or educational purposes, and which is exempt from <br/>
<a id="pl.351.11"></a><var>351.11</var>federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal <br/>
<a id="pl.351.12"></a><var>351.12</var>Revenue Code; and<br/>
<a id="pl.351.13"></a><var>351.13</var>    (D) "revenue-producing activities" shall include but not be limited to property or that <br/>
<a id="pl.351.14"></a><var>351.14</var>portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt <br/>
<a id="pl.351.15"></a><var>351.15</var>liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling <br/>
<a id="pl.351.16"></a><var>351.16</var>alley, a retail store, gambling conducted by organizations licensed under chapter 349, an <br/>
<a id="pl.351.17"></a><var>351.17</var>insurance business, or office or other space leased or rented to a lessee who conducts a <br/>
<a id="pl.351.18"></a><var>351.18</var>for-profit enterprise on the premises.<br/>
<a id="pl.351.19"></a><var>351.19</var>Any portion of the property not qualifying under either item (i) or (ii) is class 3a. The use <br/>
<a id="pl.351.20"></a><var>351.20</var>of the property for social events open exclusively to members and their guests for periods <br/>
<a id="pl.351.21"></a><var>351.21</var>of less than 24 hours, when an admission is not charged nor any revenues are received by <br/>
<a id="pl.351.22"></a><var>351.22</var>the organization shall not be considered a revenue-producing activity.<br/>
<a id="pl.351.23"></a><var>351.23</var>    The organization shall maintain records of its charitable contributions and donations <br/>
<a id="pl.351.24"></a><var>351.24</var>and of public meetings and events held on the property and make them available upon <br/>
<a id="pl.351.25"></a><var>351.25</var>request any time to the assessor to ensure eligibility. An organization meeting the <br/>
<a id="pl.351.26"></a><var>351.26</var>requirement under item (ii) must file an application by May 1 with the assessor for <br/>
<a id="pl.351.27"></a><var>351.27</var>eligibility for the current year's assessment. The commissioner shall prescribe a uniform <br/>
<a id="pl.351.28"></a><var>351.28</var>application form and instructions;<br/>
<a id="pl.351.29"></a><var>351.29</var>    (4) postsecondary student housing of not more than one acre of land that is owned by <br/>
<a id="pl.351.30"></a><var>351.30</var>a nonprofit corporation organized under chapter 317A and is used exclusively by a student <br/>
<a id="pl.351.31"></a><var>351.31</var>cooperative, sorority, or fraternity for on-campus housing or housing located within two <br/>
<a id="pl.351.32"></a><var>351.32</var>miles of the border of a college campus;<br/>
<a id="pl.351.33"></a><var>351.33</var>    (5)(i) manufactured home parks as defined in section 
         <statute_ref>327.14, subdivision 3</statute_ref>, <br/>
<a id="pl.351.34"></a><var>351.34</var>excluding manufactured home parks described in section 
         <statute_ref>273.124, subdivision 3a</statute_ref>, and (ii) <br/>
<a id="pl.351.35"></a><var>351.35</var>manufactured home parks as defined in section 
         <statute_ref>327.14, subdivision 3</statute_ref>, that are described in <br/>
<a id="pl.351.36"></a><var>351.36</var>section 
         <statute_ref>273.124, subdivision 3a</statute_ref>;<br/>
<a id="pl.352.1"></a><var>352.1</var>    (6) real property that is actively and exclusively devoted to indoor fitness, health, <br/>
<a id="pl.352.2"></a><var>352.2</var>social, recreational, and related uses, is owned and operated by a not-for-profit corporation, <br/>
<a id="pl.352.3"></a><var>352.3</var>and is located within the metropolitan area as defined in section 
         <statute_ref>473.121, subdivision 2</statute_ref>;<br/>
<a id="pl.352.4"></a><var>352.4</var>    (7) a leased or privately owned noncommercial aircraft storage hangar not exempt <br/>
<a id="pl.352.5"></a><var>352.5</var>under section 
         <statute_ref>272.01, subdivision 2</statute_ref>, and the land on which it is located, provided that:<br/>
<a id="pl.352.6"></a><var>352.6</var>    (i) the land is on an airport owned or operated by a city, town, county, Metropolitan <br/>
<a id="pl.352.7"></a><var>352.7</var>Airports Commission, or group thereof; and<br/>
<a id="pl.352.8"></a><var>352.8</var>    (ii) the land lease, or any ordinance or signed agreement restricting the use of the <br/>
<a id="pl.352.9"></a><var>352.9</var>leased premise, prohibits commercial activity performed at the hangar.<br/>
<a id="pl.352.10"></a><var>352.10</var>    If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must <br/>
<a id="pl.352.11"></a><var>352.11</var>be filed by the new owner with the assessor of the county where the property is located <br/>
<a id="pl.352.12"></a><var>352.12</var>within 60 days of the sale;<br/>
<a id="pl.352.13"></a><var>352.13</var>    (8) a privately owned noncommercial aircraft storage hangar not exempt under <br/>
<a id="pl.352.14"></a><var>352.14</var>section 
         <statute_ref>272.01, subdivision 2</statute_ref>, and the land on which it is located, provided that:<br/>
<a id="pl.352.15"></a><var>352.15</var>    (i) the land abuts a public airport; and<br/>
<a id="pl.352.16"></a><var>352.16</var>    (ii) the owner of the aircraft storage hangar provides the assessor with a signed <br/>
<a id="pl.352.17"></a><var>352.17</var>agreement restricting the use of the premises, prohibiting commercial use or activity <br/>
<a id="pl.352.18"></a><var>352.18</var>performed at the hangar; and<br/>
<a id="pl.352.19"></a><var>352.19</var>    (9) residential real estate, a portion of which is used by the owner for homestead <br/>
<a id="pl.352.20"></a><var>352.20</var>purposes, and that is also a place of lodging, if all of the following criteria are met:<br/>
<a id="pl.352.21"></a><var>352.21</var>    (i) rooms are provided for rent to transient guests that generally stay for periods <br/>
<a id="pl.352.22"></a><var>352.22</var>of 14 or fewer days;<br/>
<a id="pl.352.23"></a><var>352.23</var>    (ii) meals are provided to persons who rent rooms, the cost of which is incorporated <br/>
<a id="pl.352.24"></a><var>352.24</var>in the basic room rate;<br/>
<a id="pl.352.25"></a><var>352.25</var>    (iii) meals are not provided to the general public except for special events on fewer <br/>
<a id="pl.352.26"></a><var>352.26</var>than seven days in the calendar year preceding the year of the assessment; and<br/>
<a id="pl.352.27"></a><var>352.27</var>    (iv) the owner is the operator of the property.<br/>
<a id="pl.352.28"></a><var>352.28</var>The market value subject to the 4c classification under this clause is limited to five rental <br/>
<a id="pl.352.29"></a><var>352.29</var>units. Any rental units on the property in excess of five, must be valued and assessed as <br/>
<a id="pl.352.30"></a><var>352.30</var>class 3a. The portion of the property used for purposes of a homestead by the owner must <br/>
<a id="pl.352.31"></a><var>352.31</var>be classified as class 1a property under subdivision 22;<br/>
<a id="pl.352.32"></a><var>352.32</var>    (10) real property up to a maximum of three acres and operated as a restaurant <br/>
<a id="pl.352.33"></a><var>352.33</var>as defined under section 
         <statute_ref>157.15, subdivision 12</statute_ref>, provided it: (A) is located on a lake <br/>
<a id="pl.352.34"></a><var>352.34</var>as defined under section 
         <statute_ref>103G.005, subdivision 15</statute_ref>, paragraph (a), clause (3); and (B) <br/>
<a id="pl.352.35"></a><var>352.35</var>is either devoted to commercial purposes for not more than 250 consecutive days, or <br/>
<a id="pl.352.36"></a><var>352.36</var>receives at least 60 percent of its annual gross receipts from business conducted during <br/>
<a id="pl.353.1"></a><var>353.1</var>four consecutive months. Gross receipts from the sale of alcoholic beverages must be <br/>
<a id="pl.353.2"></a><var>353.2</var>included in determining the property's qualification under subitem (B). The property's <br/>
<a id="pl.353.3"></a><var>353.3</var>primary business must be as a restaurant and not as a bar. Gross receipts from gift shop <br/>
<a id="pl.353.4"></a><var>353.4</var>sales located on the premises must be excluded. Owners of real property desiring 4c <br/>
<a id="pl.353.5"></a><var>353.5</var>classification under this clause must submit an annual declaration to the assessor by <br/>
<a id="pl.353.6"></a><var>353.6</var>February 1 of the current assessment year, based on the property's relevant information for <br/>
<a id="pl.353.7"></a><var>353.7</var>the preceding assessment year;<br/>
<a id="pl.353.8"></a><var>353.8</var>(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used <br/>
<a id="pl.353.9"></a><var>353.9</var>as a marina, as defined in section 
         <statute_ref>86A.20, subdivision 5</statute_ref>, which is made accessible to <br/>
<a id="pl.353.10"></a><var>353.10</var>the public and devoted to recreational use for marina services. The marina owner must <br/>
<a id="pl.353.11"></a><var>353.11</var>annually provide evidence to the assessor that it provides services, including lake or river <br/>
<a id="pl.353.12"></a><var>353.12</var>access to the public by means of an access ramp or other facility that is either located on <br/>
<a id="pl.353.13"></a><var>353.13</var>the property of the marina or at a publicly owned site that abuts the property of the marina. <br/>
<a id="pl.353.14"></a><var>353.14</var>No more than 800 feet of lakeshore may be included in this classification. Buildings used <br/>
<a id="pl.353.15"></a><var>353.15</var>in conjunction with a marina for marina services, including but not limited to buildings <br/>
<a id="pl.353.16"></a><var>353.16</var>used to provide food and beverage services, fuel, boat repairs, or the sale of bait or fishing <br/>
<a id="pl.353.17"></a><var>353.17</var>tackle, are classified as class 3a property; and<br/>
<a id="pl.353.18"></a><var>353.18</var>(12) real and personal property devoted to noncommercial temporary and seasonal <br/>
<a id="pl.353.19"></a><var>353.19</var>residential occupancy for recreation purposes.<br/>
<a id="pl.353.20"></a><var>353.20</var>    Class 4c property has a class rate of 1.5 percent of market value, except that (i) each <br/>
<a id="pl.353.21"></a><var>353.21</var>parcel of noncommercial seasonal residential recreational property under clause (12) <br/>
<a id="pl.353.22"></a><var>353.22</var>has the same class rates as class 4bb property, (ii) manufactured home parks assessed <br/>
<a id="pl.353.23"></a><var>353.23</var>under clause (5), item (i), have the same class rate as class 4b property, and the market <br/>
<a id="pl.353.24"></a><var>353.24</var>value of manufactured home parks assessed under clause (5), item (ii), has the same class <br/>
<a id="pl.353.25"></a><var>353.25</var>rate as class 4d property if more than 50 percent of the lots in the park are occupied by <br/>
<a id="pl.353.26"></a><var>353.26</var>shareholders in the cooperative corporation or association and a class rate of one percent if <br/>
<a id="pl.353.27"></a><var>353.27</var>50 percent or less of the lots are so occupied, (iii) commercial-use seasonal residential <br/>
<a id="pl.353.28"></a><var>353.28</var>recreational property and marina recreational land as described in clause (11), has a <br/>
<a id="pl.353.29"></a><var>353.29</var>class rate of one percent for the first $500,000 of market value, and 1.25 percent for the <br/>
<a id="pl.353.30"></a><var>353.30</var>remaining market value, (iv) the market value of property described in clause (4) has a <br/>
<a id="pl.353.31"></a><var>353.31</var>class rate of one percent, (v) the market value of property described in clauses (2), (6), and <br/>
<a id="pl.353.32"></a><var>353.32</var>(10) has a class rate of 1.25 percent, and (vi) that portion of the market value of property <br/>
<a id="pl.353.33"></a><var>353.33</var>in clause (9) qualifying for class 4c property has a class rate of 1.25 percent.<br/>
<a id="pl.353.34"></a><var>353.34</var>    (e) Class 4d property is qualifying low-income rental housing certified to the assessor <br/>
<a id="pl.353.35"></a><var>353.35</var>by the Housing Finance Agency under section 
         <statute_ref>273.128, subdivision 3</statute_ref>. If only a portion <br/>
<a id="pl.353.36"></a><var>353.36</var>of the units in the building qualify as low-income rental housing units as certified under <br/>
<a id="pl.354.1"></a><var>354.1</var>section 
         <statute_ref>273.128, subdivision 3</statute_ref>, only the proportion of qualifying units to the total number <br/>
<a id="pl.354.2"></a><var>354.2</var>of units in the building qualify for class 4d. The remaining portion of the building shall be <br/>
<a id="pl.354.3"></a><var>354.3</var>classified by the assessor based upon its use. Class 4d also includes the same proportion of <br/>
<a id="pl.354.4"></a><var>354.4</var>land as the qualifying low-income rental housing units are to the total units in the building. <br/>
<a id="pl.354.5"></a><var>354.5</var>For all properties qualifying as class 4d, the market value determined by the assessor must <br/>
<a id="pl.354.6"></a><var>354.6</var>be based on the normal approach to value using normal unrestricted rents.<br/>
<a id="pl.354.7"></a><var>354.7</var>    Class 4d property has a class rate of 0.75 percent.<br/>
<a id="pl.354.8"></a><var>354.8</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2014 and <br/>
<a id="pl.354.9"></a><var>354.9</var>thereafter.<br/>
<br/>
<a id="bill.15.14.0"></a><a id="pl.354.10"></a><var>354.10</var>    Sec. 14. Minnesota Statutes 2012, section 273.1315, subdivision 1, is amended to read:<br/>
<a id="pl.354.11"></a><var>354.11</var>    Subdivision 1. <b>Class 1b homestead declaration before 2009.</b> Any property owner <br/>
<a id="pl.354.12"></a><var>354.12</var>seeking classification and assessment of the owner's homestead as class 1b property <br/>
<a id="pl.354.13"></a><var>354.13</var>pursuant to section 
         <statute_ref>273.13, subdivision 22</statute_ref>, paragraph (b), on or before October 1, 2008, <br/>
<a id="pl.354.14"></a><var>354.14</var>shall file with the commissioner of revenue a 1b homestead declaration, on a form <br/>
<a id="pl.354.15"></a><var>354.15</var>prescribed by the commissioner. The declaration shall contain the following information:<br/>
<a id="pl.354.16"></a><var>354.16</var>    (a) (1) the information necessary to verify that on or before June 30 of the filing year, <br/>
<a id="pl.354.17"></a><var>354.17</var>the property owner or the owner's spouse satisfies the requirements of section 
         <statute_ref>273.13, <br/>
<a id="pl.354.18"></a><var>354.18</var>subdivision 22
         </statute_ref>, paragraph (b), for 1b classification; and<br/>
<a id="pl.354.19"></a><var>354.19</var>    (b) (2) any additional information prescribed by the commissioner.<br/>
<a id="pl.354.20"></a><var>354.20</var>    The declaration must be filed on or before October 1 to be effective for property <br/>
<a id="pl.354.21"></a><var>354.21</var>taxes payable during the succeeding calendar year. The declaration and any supplementary <br/>
<a id="pl.354.22"></a><var>354.22</var>information received from the property owner pursuant to this subdivision shall be subject <br/>
<a id="pl.354.23"></a><var>354.23</var>to chapter 270B. If approved by the commissioner, the declaration remains in effect until <br/>
<a id="pl.354.24"></a><var>354.24</var>the property no longer qualifies under section 
         <statute_ref>273.13, subdivision 22</statute_ref>, paragraph (b). <br/>
<a id="pl.354.25"></a><var>354.25</var>Failure to notify the commissioner within 30 days that the property no longer qualifies <br/>
<a id="pl.354.26"></a><var>354.26</var>under that paragraph because of a sale, change in occupancy, or change in the status <br/>
<a id="pl.354.27"></a><var>354.27</var>or condition of an occupant shall result in the penalty provided in section 
         <statute_ref>273.124, <br/>
<a id="pl.354.28"></a><var>354.28</var>subdivision 13
</statute_ref> 13b, computed on the basis of the class 1b benefits for the property, and <br/>
<a id="pl.354.29"></a><var>354.29</var>the property shall lose its current class 1b classification.<br/>
<a id="pl.354.30"></a><var>354.30</var>    The commissioner shall provide to the assessor on or before November 1 a listing <br/>
<a id="pl.354.31"></a><var>354.31</var>of the parcels of property qualifying for 1b classification.<br/>
<a id="pl.354.32"></a><var>354.32</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.15.0"></a><a id="pl.354.33"></a><var>354.33</var>    Sec. 15. Minnesota Statutes 2012, section 273.1315, subdivision 2, is amended to read:<br/>
<a id="pl.355.1"></a><var>355.1</var>    Subd. 2. <b>Class 1b homestead declaration 2009 and thereafter.</b> (a) Any property <br/>
<a id="pl.355.2"></a><var>355.2</var>owner seeking classification and assessment of the owner's homestead as class 1b property <br/>
<a id="pl.355.3"></a><var>355.3</var>pursuant to section 
         <statute_ref>273.13, subdivision 22</statute_ref>, paragraph (b), after October 1, 2008, shall file <br/>
<a id="pl.355.4"></a><var>355.4</var>with the county assessor a class 1b homestead declaration, on a form prescribed by the <br/>
<a id="pl.355.5"></a><var>355.5</var>commissioner of revenue. The declaration must contain the following information:<br/>
<a id="pl.355.6"></a><var>355.6</var>    (1) the information necessary to verify that, on or before June 30 of the filing year, <br/>
<a id="pl.355.7"></a><var>355.7</var>the property owner or the owner's spouse satisfies the requirements of section 
         <statute_ref>273.13</statute_ref>, <br/>
<a id="pl.355.8"></a><var>355.8</var>subdivision 22, paragraph (b), for class 1b classification; and<br/>
<a id="pl.355.9"></a><var>355.9</var>    (2) any additional information prescribed by the commissioner.<br/>
<a id="pl.355.10"></a><var>355.10</var>    (b) The declaration must be filed on or before October 1 to be effective for property <br/>
<a id="pl.355.11"></a><var>355.11</var>taxes payable during the succeeding calendar year. The Social Security numbers and <br/>
<a id="pl.355.12"></a><var>355.12</var>income and medical information received from the property owner pursuant to this <br/>
<a id="pl.355.13"></a><var>355.13</var>subdivision are private data on individuals as defined in section 
         <statute_ref>13.02</statute_ref>. If approved by <br/>
<a id="pl.355.14"></a><var>355.14</var>the assessor, the declaration remains in effect until the property no longer qualifies under <br/>
<a id="pl.355.15"></a><var>355.15</var>section 
         <statute_ref>273.13, subdivision 22</statute_ref>, paragraph (b). Failure to notify the assessor within 30 <br/>
<a id="pl.355.16"></a><var>355.16</var>days that the property no longer qualifies under that paragraph because of a sale, change in <br/>
<a id="pl.355.17"></a><var>355.17</var>occupancy, or change in the status or condition of an occupant shall result in the penalty <br/>
<a id="pl.355.18"></a><var>355.18</var>provided in section 
         <statute_ref>273.124, subdivision 13</statute_ref> 13b, computed on the basis of the class 1b <br/>
<a id="pl.355.19"></a><var>355.19</var>benefits for the property, and the property shall lose its current class 1b classification.<br/>
<a id="pl.355.20"></a><var>355.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.16.0"></a><a id="pl.355.21"></a><var>355.21</var>    Sec. 16. Minnesota Statutes 2012, section 273.19, subdivision 1, is amended to read:<br/>
<a id="pl.355.22"></a><var>355.22</var>    Subdivision 1. <b>Tax-exempt property; lease.</b> Except as provided in subdivision 3 or <br/>
<a id="pl.355.23"></a><var>355.23</var>4, tax-exempt property held under a lease for a term of at least one year, and not taxable <br/>
<a id="pl.355.24"></a><var>355.24</var>under section 
         <statute_ref>272.01, subdivision 2</statute_ref>, or under a contract for the purchase thereof, shall be <br/>
<a id="pl.355.25"></a><var>355.25</var>considered, for all purposes of taxation, as the property of the person holding it. In this <br/>
<a id="pl.355.26"></a><var>355.26</var>subdivision, "tax-exempt property" means property owned by the United States, the state<br/>
<a id="pl.355.27"></a><var>355.27</var> or any of its political subdivisions, a school, or any religious, scientific, or benevolent <br/>
<a id="pl.355.28"></a><var>355.28</var>society or institution, incorporated or unincorporated, or any corporation whose property <br/>
<a id="pl.355.29"></a><var>355.29</var>is not taxed in the same manner as other property. This subdivision does not apply to <br/>
<a id="pl.355.30"></a><var>355.30</var>property exempt from taxation under section 
         <statute_ref>272.01, subdivision 2</statute_ref>, paragraph (b), clauses <br/>
<a id="pl.355.31"></a><var>355.31</var>(2), (3), and (4), or to property exempt from taxation under section 
         <statute_ref>272.0213</statute_ref>.<br/>
<a id="pl.355.32"></a><var>355.32</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.17.0"></a><a id="pl.355.33"></a><var>355.33</var>    Sec. 17. Minnesota Statutes 2012, section 273.372, subdivision 4, is amended to read:<br/>
<a id="pl.356.1"></a><var>356.1</var>    Subd. 4. <b>Administrative appeals.</b> (a) Companies that submit the reports under <br/>
<a id="pl.356.2"></a><var>356.2</var>section 
         <statute_ref>270.82</statute_ref> or 
         <statute_ref>273.371</statute_ref> by the date specified in that section, or by the date specified by <br/>
<a id="pl.356.3"></a><var>356.3</var>the commissioner in an extension, may appeal administratively to the commissioner prior <br/>
<a id="pl.356.4"></a><var>356.4</var>to bringing an action in court by submitting.<br/>
<a id="pl.356.5"></a><var>356.5</var>(b) Companies that must submit reports under section 270.82 must submit a written <br/>
<a id="pl.356.6"></a><var>356.6</var>request with to the commissioner for a conference within ten days after the date of the <br/>
<a id="pl.356.7"></a><var>356.7</var>commissioner's valuation certification or notice to the company, or by May June 15, <br/>
<a id="pl.356.8"></a><var>356.8</var>whichever is earlier.<br/>
<a id="pl.356.9"></a><var>356.9</var>(c) Companies that submit reports under section 273.371 must submit a written <br/>
<a id="pl.356.10"></a><var>356.10</var>request to the commissioner for a conference within ten days after the date of the <br/>
<a id="pl.356.11"></a><var>356.11</var>commissioner's valuation certification or notice to the company, or by July 1, whichever <br/>
<a id="pl.356.12"></a><var>356.12</var>is earlier.<br/>
<a id="pl.356.13"></a><var>356.13</var>(d) The commissioner shall conduct the conference upon the commissioner's entire <br/>
<a id="pl.356.14"></a><var>356.14</var>files and records and such further information as may be offered. The conference must <br/>
<a id="pl.356.15"></a><var>356.15</var>be held no later than 20 days after the date of the commissioner's valuation certification <br/>
<a id="pl.356.16"></a><var>356.16</var>or notice to the company, or by the date specified by the commissioner in an extension. <br/>
<a id="pl.356.17"></a><var>356.17</var>Within 60 days after the conference the commissioner shall make a final determination of <br/>
<a id="pl.356.18"></a><var>356.18</var>the matter and shall notify the company promptly of the determination. The conference <br/>
<a id="pl.356.19"></a><var>356.19</var>is not a contested case hearing.<br/>
<a id="pl.356.20"></a><var>356.20</var>(b) (e) In addition to the opportunity for a conference under paragraph (a), the <br/>
<a id="pl.356.21"></a><var>356.21</var>commissioner shall also provide the railroad and utility companies the opportunity to <br/>
<a id="pl.356.22"></a><var>356.22</var>discuss any questions or concerns relating to the values established by the commissioner <br/>
<a id="pl.356.23"></a><var>356.23</var>through certification or notice in a less formal manner. This does not change or modify <br/>
<a id="pl.356.24"></a><var>356.24</var>the deadline for requesting a conference under paragraph (a), the deadline in section <br/>
<statute_ref><a id="pl.356.25"></a><var>356.25</var>271.06
         </statute_ref> for appealing an order of the commissioner, or the deadline in section 
         <statute_ref>278.01</statute_ref> for <br/>
<a id="pl.356.26"></a><var>356.26</var>appealing property taxes in court.<br/>
<a id="pl.356.27"></a><var>356.27</var><b>EFFECTIVE DATE.</b>This section is effective beginning with assessment year 2014.<br/>
<br/>
<a id="bill.15.18.0"></a><a id="pl.356.28"></a><var>356.28</var>    Sec. 18. Minnesota Statutes 2012, section 273.39, is amended to read:<br/>
<a id="pl.356.29"></a><var>356.29</var><b>273.39 RURAL AREA.</b><br/>
<a id="pl.356.30"></a><var>356.30</var>As used in sections 
         <statute_ref>273.39</statute_ref> to 
         <statute_ref>273.41</statute_ref>, the term "rural area" shall be deemed to mean <br/>
<a id="pl.356.31"></a><var>356.31</var>any area of the state not included within the boundaries of any incorporated statutory <br/>
<a id="pl.356.32"></a><var>356.32</var>city or home rule charter city, and such term shall be deemed to include both farm and <br/>
<a id="pl.356.33"></a><var>356.33</var>nonfarm population thereof.<br/>
<a id="pl.356.34"></a><var>356.34</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.19.0"></a><a id="pl.357.1"></a><var>357.1</var>    Sec. 19. Minnesota Statutes 2012, section 279.06, subdivision 1, is amended to read:<br/>
<a id="pl.357.2"></a><var>357.2</var>    Subdivision 1. <b>List and notice.</b> Within five days after the filing of such list, the <br/>
<a id="pl.357.3"></a><var>357.3</var>court administrator shall return a copy thereof to the county auditor, with a notice prepared <br/>
<a id="pl.357.4"></a><var>357.4</var>and signed by the court administrator, and attached thereto, which may be substantially in <br/>
<a id="pl.357.5"></a><var>357.5</var>the following form:<br/>
<table>
<col width="50px"/>
<col width="15"/>
<col width="5"/>
<col width="20"/>
<col width="22.5"/>
<tr>
<td><a id="pl.357.6"></a><var>357.6</var><br/>
</td>
<td>State of Minnesota<br/>
</td>
<td>)<br/>
</td>
<td></td>
<td></td>
</tr>
<tr>
<td><a id="pl.357.7"></a><var>357.7</var><br/>
</td>
<td></td>
<td>) ss.<br/>
</td>
<td></td>
<td></td>
</tr>
<tr>
<td><a id="pl.357.8"></a><var>357.8</var><br/>
</td>
<td>County of <br/>
<span>
                     							.....
                     						</span></td>
<td>)<br/>
</td>
<td></td>
<td></td>
</tr>
<tr>
<td><a id="pl.357.9"></a><var>357.9</var><br/>
</td>
<td></td>
<td></td>
<td></td>
<td align="right">District Court<br/>
</td>
</tr>
<tr>
<td><a id="pl.357.10"></a><var>357.10</var><br/>
</td>
<td></td>
<td></td>
<td></td>
<td align="right"><span>
                     							.....
                     						</span>Judicial District.<br/>
</td>
</tr>
</table><a id="pl.357.11"></a><var>357.11</var>The state of Minnesota, to all persons, companies, or corporations who have or claim <br/>
<a id="pl.357.12"></a><var>357.12</var>any estate, right, title, or interest in, claim to, or lien upon, any of the several parcels of <br/>
<a id="pl.357.13"></a><var>357.13</var>land described in the list hereto attached:<br/>
<a id="pl.357.14"></a><var>357.14</var>The list of taxes and penalties on real property for the county of ............................... <br/>
<a id="pl.357.15"></a><var>357.15</var>remaining delinquent on the first Monday in January, ......., has been filed in the office of <br/>
<a id="pl.357.16"></a><var>357.16</var>the court administrator of the district court of said county, of which that hereto attached is a <br/>
<a id="pl.357.17"></a><var>357.17</var>copy. Therefore, you, and each of you, are hereby required to file in the office of said court <br/>
<a id="pl.357.18"></a><var>357.18</var>administrator, on or before the 20th day after the publication of this notice and list, your <br/>
<a id="pl.357.19"></a><var>357.19</var>answer, in writing, setting forth any objection or defense you may have to the taxes, or any <br/>
<a id="pl.357.20"></a><var>357.20</var>part thereof, upon any parcel of land described in the list, in, to, or on which you have or <br/>
<a id="pl.357.21"></a><var>357.21</var>claim any estate, right, title, interest, claim, or lien, and, in default thereof, judgment will <br/>
<a id="pl.357.22"></a><var>357.22</var>be entered against such parcel of land for the taxes on such list appearing against it, and <br/>
<a id="pl.357.23"></a><var>357.23</var>for all penalties, interest, and costs. Based upon said judgment, the land shall be sold to <br/>
<a id="pl.357.24"></a><var>357.24</var>the state of Minnesota on the second Monday in May, ....... The period of redemption for <br/>
<a id="pl.357.25"></a><var>357.25</var>all lands sold to the state at a tax judgment sale shall be three years from the date of sale to <br/>
<a id="pl.357.26"></a><var>357.26</var>the state of Minnesota if the land is within an incorporated area unless it is:<br/>
<a id="pl.357.27"></a><var>357.27</var>(a) nonagricultural homesteaded land as defined in section 
<statute_ref>273.13, subdivision 22</statute_ref>;<br/>
<a id="pl.357.28"></a><var>357.28</var>(b) homesteaded agricultural land as defined in section 
<statute_ref>273.13, subdivision 23</statute_ref>, <br/>
<a id="pl.357.29"></a><var>357.29</var>paragraph (a);<br/>
<a id="pl.357.30"></a><var>357.30</var>(c) seasonal residential recreational land as defined in section 
<statute_ref>273.13, subdivisions <br/>
<a id="pl.357.31"></a><var>357.31</var>22, paragraph (c)
</statute_ref>, and 25, paragraph (d), clause (1), in which event the period of <br/>
<a id="pl.357.32"></a><var>357.32</var>redemption is five years from the date of sale to the state of Minnesota;<br/>
<a id="pl.357.33"></a><var>357.33</var>(d) abandoned property and pursuant to section 
<statute_ref>281.173</statute_ref> a court order has been <br/>
<a id="pl.357.34"></a><var>357.34</var>entered shortening the redemption period to five weeks; or<br/>
<a id="pl.357.35"></a><var>357.35</var>(e) vacant property as described under section 
<statute_ref>281.174, subdivision 2</statute_ref>, and for which <br/>
<a id="pl.357.36"></a><var>357.36</var>a court order is entered shortening the redemption period under section 
<statute_ref>281.174</statute_ref>.<br/>
<a id="pl.358.1"></a><var>358.1</var>The period of redemption for all other lands sold to the state at a tax judgment sale <br/>
<a id="pl.358.2"></a><var>358.2</var>shall be five years from the date of sale.<br/>
<a id="pl.358.3"></a><var>358.3</var>Inquiries as to the proceedings set forth above can be made to the county auditor of <br/>
<a id="pl.358.4"></a><var>358.4</var>..... county whose address is ......<br/>
<table>
<col width="50px"/>
<col width="25"/>
<col width="40"/>
<tr>
<td><a id="pl.358.5"></a><var>358.5</var><br/>
</td>
<td></td>
<td align="right">(Signed) <span>
                     							.....
                     						</span>,<br/>
</td>
</tr>
<tr>
<td><a id="pl.358.6"></a><var>358.6</var><br/>
<a id="pl.358.7"></a><var>358.7</var><br/>
</td>
<td></td>
<td align="left">Court Administrator of the District Court of the<br/>
                  		County of <br/>
<span>
                     							.....
                     						</span></td>
</tr>
<tr>
<td><a id="pl.358.8"></a><var>358.8</var><br/>
</td>
<td></td>
<td align="left">(Here insert list.)<br/>
</td>
</tr>
</table><a id="pl.358.9"></a><var>358.9</var>The notice must contain a narrative description of the various periods to redeem <br/>
<a id="pl.358.10"></a><var>358.10</var>specified in sections 281.17, 281.173, and 281.174, in the manner prescribed by the <br/>
<a id="pl.358.11"></a><var>358.11</var>commissioner of revenue under subdivision 2.<br/>
<a id="pl.358.12"></a><var>358.12</var>The list referred to in the notice shall be substantially in the following form:<br/>
<a id="pl.358.13"></a><var>358.13</var>List of real property for the county of ......................., on which taxes remain <br/>
<a id="pl.358.14"></a><var>358.14</var>delinquent on the first Monday in January, .......<br/>

<table>
<col width="50px"/>
<col width="18.5"/>
<col width="18.5"/>
<col width="10"/>
<col width="9"/>
<col width="9"/>
<tr>
<td><a id="pl.358.17"></a><var>358.17</var><br/>
<a id="pl.358.18"></a><var>358.18</var><br/>
<a id="pl.358.19"></a><var>358.19</var><br/>
<a id="pl.358.20"></a><var>358.20</var><br/>
<a id="pl.358.21"></a><var>358.21</var><br/>
<a id="pl.358.22"></a><var>358.22</var><br/>
<a id="pl.358.23"></a><var>358.23</var><br/>
<a id="pl.358.24"></a><var>358.24</var><br/>
</td>
<td>Names (and Current <br/>
                  		Filed Addresses) for <br/>
                  		the Taxpayers and Fee <br/>
                  		Owners and in Addition <br/>
                  		Those Parties Who Have <br/>
                  		Filed Their Addresses <br/>
                  		Pursuant to section <br/>
<statute_ref>276.041</statute_ref> <br/>
</td>
<td align="center">Subdivision of<br/>
                  		Section<br/>
</td>
<td align="center">Section<br/>
</td>
<td align="center">Tax Parcel<br/>
                  		Number<br/>
</td>
<td align="center">Total Tax <br/>
                  		and Penalty<br/>
</td>
</tr>
<tr>
<td><a id="pl.358.25"></a><var>358.25</var><br/>
</td>
<td></td>
<td align="center"></td>
<td align="center"></td>
<td align="center"></td>
<td align="center">$ cts.<br/>
</td>
</tr>
<tr>
<td></td>
<td></td>
<td align="center"></td>
<td align="center"></td>
<td align="center"></td>
<td align="center"></td>
</tr>
<tr>
<td><a id="pl.358.26"></a><var>358.26</var><br/>
<a id="pl.358.27"></a><var>358.27</var><br/>
</td>
<td>John Jones (825 Fremont <br/>
                  		Fairfield, MN 55000)<br/>
</td>
<td align="center" valign="top">S.E. 1/4 of S.W. 1/4<br/>
</td>
<td align="center" valign="top">10<br/>
</td>
<td align="center" valign="top">23101<br/>
</td>
<td align="center" valign="top">2.20<br/>
</td>
</tr>
<tr>
<td></td>
<td></td>
<td align="center" valign="top"></td>
<td align="center" valign="top"></td>
<td align="center" valign="top"></td>
<td align="center" valign="top"></td>
</tr>
<tr>
<td><a id="pl.358.28"></a><var>358.28</var><br/>
<a id="pl.358.29"></a><var>358.29</var><br/>
<a id="pl.358.30"></a><var>358.30</var><br/>
<a id="pl.358.31"></a><var>358.31</var><br/>
<a id="pl.358.32"></a><var>358.32</var><br/>
<a id="pl.358.33"></a><var>358.33</var><br/>
<a id="pl.358.34"></a><var>358.34</var><br/>
<a id="pl.358.35"></a><var>358.35</var><br/>
<a id="pl.358.36"></a><var>358.36</var><br/>
<a id="pl.358.37"></a><var>358.37</var><br/>
<a id="pl.358.38"></a><var>358.38</var><br/>
<a id="pl.358.39"></a><var>358.39</var><br/>
<a id="pl.358.40"></a><var>358.40</var><br/>
<a id="pl.358.41"></a><var>358.41</var><br/>
<a id="pl.358.42"></a><var>358.42</var><br/>
<a id="pl.358.43"></a><var>358.43</var><br/>
<a id="pl.358.44"></a><var>358.44</var><br/>
<a id="pl.358.45"></a><var>358.45</var><br/>
<a id="pl.358.46"></a><var>358.46</var><br/>
</td>
<td valign="top">Bruce Smith (2059 Hand <br/>
                  		Fairfield, MN 55000) <br/>
                  		and Fairfield State <br/>
                  		Bank (100 Main Street <br/>
                  		Fairfield, MN 55000)<br/>
</td>
<td>That part of N.E. 1/4 <br/>
                  		of S.W. 1/4 desc. as <br/>
                  		follows: Beg. at the <br/>
                  		S.E. corner of said N.E. <br/>
                  		1/4 of S.W. 1/4; thence <br/>
                  		N. along the E. line of <br/>
                  		said N.E. 1/4 of S.W. <br/>
                  		1/4 a distance of 600 <br/>
                  		ft.; thence W. parallel <br/>
                  		with the S. line of said <br/>
                  		N.E. 1/4 of S.W. 1/4 <br/>
                  		a distance of 600 ft.; <br/>
                  		thence S. parallel with <br/>
                  		said E. line a distance of <br/>
                  		600 ft. to S. line of said <br/>
                  		N.E. 1/4 of S.W. 1/4; <br/>
                  		thence E. along said S. <br/>
                  		line a distance of 600 ft. <br/>
                  		to the point of beg.<br/>
</td>
<td align="center" valign="top">21<br/>
</td>
<td align="center" valign="top">33211<br/>
</td>
<td align="center" valign="top">3.15<br/>
</td>
</tr>
</table><a id="pl.359.1"></a><var>359.1</var>As to platted property, the form of heading shall conform to circumstances and be <br/>
<a id="pl.359.2"></a><var>359.2</var>substantially in the following form:<br/>

<table>
<col width="50px"/>
<col width="18.5"/>
<col width="18.5"/>
<col width="10"/>
<col width="9"/>
<col width="9"/>
<tr>
<td><a id="pl.359.5"></a><var>359.5</var><br/>
<a id="pl.359.6"></a><var>359.6</var><br/>
<a id="pl.359.7"></a><var>359.7</var><br/>
<a id="pl.359.8"></a><var>359.8</var><br/>
<a id="pl.359.9"></a><var>359.9</var><br/>
<a id="pl.359.10"></a><var>359.10</var><br/>
<a id="pl.359.11"></a><var>359.11</var><br/>
<a id="pl.359.12"></a><var>359.12</var><br/>
</td>
<td>Names (and Current <br/>
                  		Filed Addresses) for <br/>
                  		the Taxpayers and Fee <br/>
                  		Owners and in Addition <br/>
                  		Those Parties Who Have <br/>
                  		Filed Their Addresses <br/>
                  		Pursuant to section <br/>
<statute_ref>276.041<br/>
</statute_ref>
</td>
<td align="center">Lot<br/>
</td>
<td align="center">Block<br/>
</td>
<td align="center">Tax Parcel<br/>
                  		Number<br/>
</td>
<td align="center">Total Tax<br/>
                  		and Penalty<br/>
</td>
</tr>
<tr>
<td><a id="pl.359.13"></a><var>359.13</var><br/>
</td>
<td></td>
<td></td>
<td></td>
<td align="center"></td>
<td align="center">$ cts.<br/>
</td>
</tr>
<tr>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td><a id="pl.359.14"></a><var>359.14</var><br/>
<a id="pl.359.15"></a><var>359.15</var><br/>
</td>
<td>John Jones (825 Fremont <br/>
                  		Fairfield, MN 55000)<br/>
</td>
<td align="center" valign="top">15<br/>
</td>
<td align="center" valign="top">9<br/>
</td>
<td align="center" valign="top">58243<br/>
</td>
<td align="center" valign="top">2.20<br/>
</td>
</tr>
<tr>
<td><a id="pl.359.16"></a><var>359.16</var><br/>
<a id="pl.359.17"></a><var>359.17</var><br/>
<a id="pl.359.18"></a><var>359.18</var><br/>
<a id="pl.359.19"></a><var>359.19</var><br/>
<a id="pl.359.20"></a><var>359.20</var><br/>
</td>
<td>Bruce Smith (2059 Hand <br/>
                  		Fairfield, MN 55000) <br/>
                  		and Fairfield State <br/>
                  		Bank (100 Main Street <br/>
                  		Fairfield, MN 55000)<br/>
</td>
<td align="center" valign="top">16<br/>
</td>
<td align="center" valign="top">9<br/>
</td>
<td align="center" valign="top">58244<br/>
</td>
<td align="center" valign="top">3.15<br/>
</td>
</tr>
</table><a id="pl.359.21"></a><var>359.21</var>The names, descriptions, and figures employed in parentheses in the above forms are <br/>
<a id="pl.359.22"></a><var>359.22</var>merely for purposes of illustration.<br/>
<a id="pl.359.23"></a><var>359.23</var>The name of the town, township, range or city, and addition or subdivision, as the <br/>
<a id="pl.359.24"></a><var>359.24</var>case may be, shall be repeated at the head of each column of the printed lists as brought <br/>
<a id="pl.359.25"></a><var>359.25</var>forward from the preceding column.<br/>
<a id="pl.359.26"></a><var>359.26</var>Errors in the list shall not be deemed to be a material defect to affect the validity <br/>
<a id="pl.359.27"></a><var>359.27</var>of the judgment and sale.<br/>
<a id="pl.359.28"></a><var>359.28</var><b>EFFECTIVE DATE.</b>This section is effective for lists and notices required after <br/>
<a id="pl.359.29"></a><var>359.29</var>December 31, 2013.<br/>
<br/>
<a id="bill.15.20.0"></a><a id="pl.359.30"></a><var>359.30</var>    Sec. 20. Minnesota Statutes 2012, section 290A.25, is amended to read:<br/>
<a id="pl.359.31"></a><var>359.31</var><b>290A.25 VERIFICATION OF SOCIAL SECURITY NUMBERS.</b><br/>
<a id="pl.359.32"></a><var>359.32</var>Annually, the commissioner of revenue shall furnish a list to the county assessor <br/>
<a id="pl.359.33"></a><var>359.33</var>containing the names and Social Security numbers of persons who have applied for both <br/>
<a id="pl.359.34"></a><var>359.34</var>homestead classification under section 
         <statute_ref>273.13</statute_ref> and a property tax refund as a renter <br/>
<a id="pl.359.35"></a><var>359.35</var>under this chapter.<br/>
<a id="pl.359.36"></a><var>359.36</var>Within 90 days of the notification, the county assessor shall investigate to determine <br/>
<a id="pl.359.37"></a><var>359.37</var>if the homestead classification was improperly claimed. If the property owner does <br/>
<a id="pl.359.38"></a><var>359.38</var>not qualify, the county assessor shall notify the county auditor who will determine the <br/>
<a id="pl.359.39"></a><var>359.39</var>amount of homestead benefits that has been improperly allowed. For the purpose of this <br/>
<a id="pl.360.1"></a><var>360.1</var>section, "homestead benefits" has the meaning given in section 
         <statute_ref>273.124, subdivision 13</statute_ref>, <br/>
<a id="pl.360.2"></a><var>360.2</var>paragraph (h) 13b. The county auditor shall send a notice to persons who owned the <br/>
<a id="pl.360.3"></a><var>360.3</var>affected property at the time the homestead application related to the improper homestead <br/>
<a id="pl.360.4"></a><var>360.4</var>was filed, demanding reimbursement of the homestead benefits plus a penalty equal to <br/>
<a id="pl.360.5"></a><var>360.5</var>100 percent of the homestead benefits. The person notified may appeal the county's <br/>
<a id="pl.360.6"></a><var>360.6</var>determination with the Minnesota Tax Court within 60 days of the date of the notice from <br/>
<a id="pl.360.7"></a><var>360.7</var>the county as provided in section 
         <statute_ref>273.124, subdivision 13</statute_ref>, paragraph (h) 13b.<br/>
<a id="pl.360.8"></a><var>360.8</var>If the amount of homestead benefits and penalty is not paid within 60 days, and if <br/>
<a id="pl.360.9"></a><var>360.9</var>no appeal has been filed, the county auditor shall certify the amount of taxes and penalty <br/>
<a id="pl.360.10"></a><var>360.10</var>to the county treasurer. The county treasurer will add interest to the unpaid homestead <br/>
<a id="pl.360.11"></a><var>360.11</var>benefits and penalty amounts at the rate provided for delinquent personal property taxes <br/>
<a id="pl.360.12"></a><var>360.12</var>for the period beginning 60 days after demand for payment was made until payment. If <br/>
<a id="pl.360.13"></a><var>360.13</var>the person notified is the current owner of the property, the treasurer may add the total <br/>
<a id="pl.360.14"></a><var>360.14</var>amount of benefits, penalty, interest, and costs to the real estate taxes otherwise payable on <br/>
<a id="pl.360.15"></a><var>360.15</var>the property in the following year. If the person notified is not the current owner of the <br/>
<a id="pl.360.16"></a><var>360.16</var>property, the treasurer may collect the amounts due under the Revenue Recapture Act in <br/>
<a id="pl.360.17"></a><var>360.17</var>chapter 270A, or use any of the powers granted in sections 
         <statute_ref>277.20</statute_ref> and 
         <statute_ref>277.21</statute_ref> without <br/>
<a id="pl.360.18"></a><var>360.18</var>exclusion, to enforce payment of the benefits, penalty, interest, and costs, as if those <br/>
<a id="pl.360.19"></a><var>360.19</var>amounts were delinquent tax obligations of the person who owned the property at the time <br/>
<a id="pl.360.20"></a><var>360.20</var>the application related to the improperly allowed homestead was filed. The treasurer may <br/>
<a id="pl.360.21"></a><var>360.21</var>relieve a prior owner of personal liability for the benefits, penalty, interest, and costs, and <br/>
<a id="pl.360.22"></a><var>360.22</var>instead extend those amounts on the tax lists against the property for taxes payable in the <br/>
<a id="pl.360.23"></a><var>360.23</var>following year to the extent that the current owner agrees in writing.<br/>
<a id="pl.360.24"></a><var>360.24</var>Any amount of homestead benefits recovered by the county from the property owner <br/>
<a id="pl.360.25"></a><var>360.25</var>shall be distributed to the county, city or town, and school district where the property is <br/>
<a id="pl.360.26"></a><var>360.26</var>located in the same proportion that each taxing district's levy was to the total of the three <br/>
<a id="pl.360.27"></a><var>360.27</var>taxing districts' levy for the current year. Any amount recovered attributable to taconite <br/>
<a id="pl.360.28"></a><var>360.28</var>homestead credit shall be transmitted to the St. Louis County auditor to be deposited in <br/>
<a id="pl.360.29"></a><var>360.29</var>the taconite property tax relief account. Any amount recovered that is attributable to <br/>
<a id="pl.360.30"></a><var>360.30</var>supplemental homestead credit is to be transmitted to the commissioner of revenue for <br/>
<a id="pl.360.31"></a><var>360.31</var>deposit in the general fund of the state treasury. The total amount of penalty collected <br/>
<a id="pl.360.32"></a><var>360.32</var>must be deposited in the county general fund.<br/>
<a id="pl.360.33"></a><var>360.33</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.21.0"></a><a id="pl.360.34"></a><var>360.34</var>    Sec. 21. Minnesota Statutes 2012, section 290B.04, subdivision 2, is amended to read:<br/>
<a id="pl.361.1"></a><var>361.1</var>    Subd. 2. <b>Approval; recording.</b> The commissioner shall approve all initial <br/>
<a id="pl.361.2"></a><var>361.2</var>applications that qualify under this chapter and shall notify qualifying homeowners on or <br/>
<a id="pl.361.3"></a><var>361.3</var>before December 1. The commissioner may investigate the facts or require confirmation <br/>
<a id="pl.361.4"></a><var>361.4</var>in regard to an application. The commissioner shall record or file a notice of qualification <br/>
<a id="pl.361.5"></a><var>361.5</var>for deferral, including the names of the qualifying homeowners and a legal description <br/>
<a id="pl.361.6"></a><var>361.6</var>of the property, in the office of the county recorder, or registrar of titles, whichever is <br/>
<a id="pl.361.7"></a><var>361.7</var>applicable, in the county where the qualifying property is located. The notice must state <br/>
<a id="pl.361.8"></a><var>361.8</var>that it serves as a notice of lien and that it includes deferrals under this section for future <br/>
<a id="pl.361.9"></a><var>361.9</var>years. The commissioner shall prescribe the form of the notice. Execution of the notice <br/>
<a id="pl.361.10"></a><var>361.10</var>by the original or facsimile signature of the commissioner or a delegate entitles them to <br/>
<a id="pl.361.11"></a><var>361.11</var>be recorded, and no other attestation, certification, or acknowledgment is necessary. The <br/>
<a id="pl.361.12"></a><var>361.12</var>homeowner shall pay the recording or filing fees for the notice, which, notwithstanding <br/>
<a id="pl.361.13"></a><var>361.13</var>section 
         <statute_ref>357.18</statute_ref>, shall be paid by the homeowner at the time of satisfaction of the lien.<br/>
<a id="pl.361.14"></a><var>361.14</var><b>EFFECTIVE DATE.</b>This section is effective for notices that are both executed <br/>
<a id="pl.361.15"></a><var>361.15</var>and recorded after June 30, 2013.<br/>
<br/>
<a id="bill.15.22.0"></a><a id="pl.361.16"></a><var>361.16</var>    Sec. 22. Minnesota Statutes 2012, section 298.01, subdivision 3, is amended to read:<br/>
<a id="pl.361.17"></a><var>361.17</var>    Subd. 3. <b>Occupation tax; other ores.</b>  Every person engaged in the business of <br/>
<a id="pl.361.18"></a><var>361.18</var>mining, refining, or producing ores, metals, or minerals in this state, except iron ore or <br/>
<a id="pl.361.19"></a><var>361.19</var>taconite concentrates, shall pay an occupation tax to the state of Minnesota as provided <br/>
<a id="pl.361.20"></a><var>361.20</var>in this subdivision. For purposes of this subdivision, mining includes the application of <br/>
<a id="pl.361.21"></a><var>361.21</var>hydrometallurgical processes. Hydrometallurgical processes are processes that extract <br/>
<a id="pl.361.22"></a><var>361.22</var>the ores, metals, or minerals, by use of aqueous solutions that leach, concentrate, and <br/>
<a id="pl.361.23"></a><var>361.23</var>recover the ore, metal, or mineral. The tax is determined in the same manner as the tax <br/>
<a id="pl.361.24"></a><var>361.24</var>imposed by section 
         <statute_ref>290.02</statute_ref>, except that sections 
         <statute_ref>290.05, subdivision 1</statute_ref>, clause (a), 
         <statute_ref>290.17, <br/>
<a id="pl.361.25"></a><var>361.25</var>subdivision 4
         </statute_ref>, and 
         <statute_ref>290.191, subdivision 2</statute_ref>, do not apply, and the occupation tax must <br/>
<a id="pl.361.26"></a><var>361.26</var>be computed by applying to taxable income the rate of 2.45 percent. A person subject <br/>
<a id="pl.361.27"></a><var>361.27</var>to occupation tax under this section shall apportion its net income on the basis of the <br/>
<a id="pl.361.28"></a><var>361.28</var>percentage obtained by taking the sum of:<br/>
<a id="pl.361.29"></a><var>361.29</var>(1) 75 percent of the percentage which the sales made within this state in connection <br/>
<a id="pl.361.30"></a><var>361.30</var>with the trade or business during the tax period are of the total sales wherever made in <br/>
<a id="pl.361.31"></a><var>361.31</var>connection with the trade or business during the tax period;<br/>
<a id="pl.361.32"></a><var>361.32</var>(2) 12.5 percent of the percentage which the total tangible property used by the <br/>
<a id="pl.361.33"></a><var>361.33</var>taxpayer in this state in connection with the trade or business during the tax period is of <br/>
<a id="pl.361.34"></a><var>361.34</var>the total tangible property, wherever located, used by the taxpayer in connection with the <br/>
<a id="pl.361.35"></a><var>361.35</var>trade or business during the tax period; and<br/>
<a id="pl.362.1"></a><var>362.1</var>(3) 12.5 percent of the percentage which the taxpayer's total payrolls paid or incurred <br/>
<a id="pl.362.2"></a><var>362.2</var>in this state or paid in respect to labor performed in this state in connection with the trade <br/>
<a id="pl.362.3"></a><var>362.3</var>or business during the tax period are of the taxpayer's total payrolls paid or incurred in <br/>
<a id="pl.362.4"></a><var>362.4</var>connection with the trade or business during the tax period.<br/>
<a id="pl.362.5"></a><var>362.5</var>The tax is in addition to all other taxes.<br/>
<a id="pl.362.6"></a><var>362.6</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.23.0"></a><a id="pl.362.7"></a><var>362.7</var>    Sec. 23. Minnesota Statutes 2012, section 298.018, is amended to read:<br/>
<a id="pl.362.8"></a><var>362.8</var><b>298.018 DISTRIBUTION OF PROCEEDS.</b><br/>
<a id="pl.362.9"></a><var>362.9</var>    Subdivision 1. <b>Within taconite assistance area.</b> The proceeds of the tax paid <br/>
<a id="pl.362.10"></a><var>362.10</var>under sections 
         <statute_ref>298.015</statute_ref> and 
         <statute_ref>298.016</statute_ref> on ores, metals, or minerals and energy resources<br/>
<a id="pl.362.11"></a><var>362.11</var> mined or extracted within the taconite assistance area defined in section 
         <statute_ref>273.1341</statute_ref>, shall <br/>
<a id="pl.362.12"></a><var>362.12</var>be allocated as follows:<br/>
<a id="pl.362.13"></a><var>362.13</var>(1) five percent to the city or town within which the minerals or energy resources <br/>
<a id="pl.362.14"></a><var>362.14</var>are mined or extracted;<br/>
<a id="pl.362.15"></a><var>362.15</var>(2) ten percent to the taconite municipal aid account to be distributed as provided <br/>
<a id="pl.362.16"></a><var>362.16</var>in section 
         <statute_ref>298.282</statute_ref>;<br/>
<a id="pl.362.17"></a><var>362.17</var>(3) ten percent to the school district within which the minerals or energy resources <br/>
<a id="pl.362.18"></a><var>362.18</var>are mined or extracted;<br/>
<a id="pl.362.19"></a><var>362.19</var>(4) 20 percent to a group of school districts comprised of those school districts <br/>
<a id="pl.362.20"></a><var>362.20</var>wherein the mineral or energy resource was mined or extracted or in which there is a <br/>
<a id="pl.362.21"></a><var>362.21</var>qualifying municipality as defined by section 
         <statute_ref>273.134, paragraph (b)</statute_ref>, in direct proportion <br/>
<a id="pl.362.22"></a><var>362.22</var>to school district indexes as follows: for each school district, its pupil units determined <br/>
<a id="pl.362.23"></a><var>362.23</var>under section 
         <statute_ref>126C.05</statute_ref> for the prior school year shall be multiplied by the ratio of the <br/>
<a id="pl.362.24"></a><var>362.24</var>average adjusted net tax capacity per pupil unit for school districts receiving aid under <br/>
<a id="pl.362.25"></a><var>362.25</var>this clause as calculated pursuant to chapters 122A, 126C, and 127A for the school year <br/>
<a id="pl.362.26"></a><var>362.26</var>ending prior to distribution to the adjusted net tax capacity per pupil unit of the district. <br/>
<a id="pl.362.27"></a><var>362.27</var>Each district shall receive that portion of the distribution which its index bears to the sum <br/>
<a id="pl.362.28"></a><var>362.28</var>of the indices for all school districts that receive the distributions;<br/>
<a id="pl.362.29"></a><var>362.29</var>(5) 20 percent to the county within which the minerals or energy resources are <br/>
<a id="pl.362.30"></a><var>362.30</var>mined or extracted;<br/>
<a id="pl.362.31"></a><var>362.31</var>(6) 20 percent to St. Louis County acting as the counties' fiscal agent to be <br/>
<a id="pl.362.32"></a><var>362.32</var>distributed as provided in sections 
         <statute_ref>273.134</statute_ref> to 
         <statute_ref>273.136</statute_ref>;<br/>
<a id="pl.362.33"></a><var>362.33</var>(7) five percent to the Iron Range Resources and Rehabilitation Board for the <br/>
<a id="pl.362.34"></a><var>362.34</var>purposes of section 
         <statute_ref>298.22</statute_ref>;<br/>
<a id="pl.363.1"></a><var>363.1</var>(8) five percent to the Douglas J. Johnson economic protection trust fund; and<br/>
<a id="pl.363.2"></a><var>363.2</var>(9) five percent to the taconite environmental protection fund.<br/>
<a id="pl.363.3"></a><var>363.3</var>The proceeds of the tax shall be distributed on July 15 each year.<br/>
<a id="pl.363.4"></a><var>363.4</var>    Subd. 2. <b>Outside taconite assistance area.</b> The proceeds of the tax paid under <br/>
<a id="pl.363.5"></a><var>363.5</var>sections 
         <statute_ref>298.015</statute_ref> and 
         <statute_ref>298.016</statute_ref> on ores, metals, or minerals and energy resources mined <br/>
<a id="pl.363.6"></a><var>363.6</var>or extracted outside of the taconite assistance area defined in section 
         <statute_ref>273.1341</statute_ref>, shall <br/>
<a id="pl.363.7"></a><var>363.7</var>be deposited in the general fund.<br/>
<a id="pl.363.8"></a><var>363.8</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.24.0"></a><a id="pl.363.9"></a><var>363.9</var>    Sec. 24. Minnesota Statutes 2012, section 373.01, subdivision 1, is amended to read:<br/>
<a id="pl.363.10"></a><var>363.10</var>    Subdivision 1. <b>Public corporation; listed powers.</b> (a) Each county is a body politic <br/>
<a id="pl.363.11"></a><var>363.11</var>and corporate and may:<br/>
<a id="pl.363.12"></a><var>363.12</var>    (1) Sue and be sued.<br/>
<a id="pl.363.13"></a><var>363.13</var>    (2) Acquire and hold real and personal property for the use of the county, and lands <br/>
<a id="pl.363.14"></a><var>363.14</var>sold for taxes as provided by law.<br/>
<a id="pl.363.15"></a><var>363.15</var>    (3) Purchase and hold for the benefit of the county real estate sold by virtue of <br/>
<a id="pl.363.16"></a><var>363.16</var>judicial proceedings, to which the county is a party.<br/>
<a id="pl.363.17"></a><var>363.17</var>    (4) Sell, lease, and convey real or personal estate owned by the county, and give <br/>
<a id="pl.363.18"></a><var>363.18</var>contracts or options to sell, lease, or convey it, and make orders respecting it as deemed <br/>
<a id="pl.363.19"></a><var>363.19</var>conducive to the interests of the county's inhabitants.<br/>
<a id="pl.363.20"></a><var>363.20</var>    (5) Make all contracts and do all other acts in relation to the property and concerns <br/>
<a id="pl.363.21"></a><var>363.21</var>of the county necessary to the exercise of its corporate powers.<br/>
<a id="pl.363.22"></a><var>363.22</var>    (b) No sale, lease, or conveyance of real estate owned by the county, except the lease <br/>
<a id="pl.363.23"></a><var>363.23</var>of a residence acquired for the furtherance of an approved capital improvement project, nor <br/>
<a id="pl.363.24"></a><var>363.24</var>any contract or option for it, shall be valid, without first advertising for bids or proposals in <br/>
<a id="pl.363.25"></a><var>363.25</var>the official newspaper of the county for three consecutive weeks and once in a newspaper <br/>
<a id="pl.363.26"></a><var>363.26</var>of general circulation in the area where the property is located. The notice shall state the <br/>
<a id="pl.363.27"></a><var>363.27</var>time and place of considering the proposals, contain a legal description of any real estate, <br/>
<a id="pl.363.28"></a><var>363.28</var>and a brief description of any personal property. Leases that do not exceed $15,000 for any <br/>
<a id="pl.363.29"></a><var>363.29</var>one year may be negotiated and are not subject to the competitive bid procedures of this <br/>
<a id="pl.363.30"></a><var>363.30</var>section. All proposals estimated to exceed $15,000 in any one year shall be considered at <br/>
<a id="pl.363.31"></a><var>363.31</var>the time set for the bid opening, and the one most favorable to the county accepted, but the <br/>
<a id="pl.363.32"></a><var>363.32</var>county board may, in the interest of the county, reject any or all proposals.<br/>
<a id="pl.363.33"></a><var>363.33</var>    (c) Sales of personal property the value of which is estimated to be $15,000 or <br/>
<a id="pl.363.34"></a><var>363.34</var>more shall be made only after advertising for bids or proposals in the county's official <br/>
<a id="pl.363.35"></a><var>363.35</var>newspaper, on the county's Web site, or in a recognized industry trade journal. At the same <br/>
<a id="pl.364.1"></a><var>364.1</var>time it posts on its Web site or publishes in a trade journal, the county must publish in the <br/>
<a id="pl.364.2"></a><var>364.2</var>official newspaper, either as part of the minutes of a regular meeting of the county board <br/>
<a id="pl.364.3"></a><var>364.3</var>or in a separate notice, a summary of all requests for bids or proposals that the county <br/>
<a id="pl.364.4"></a><var>364.4</var>advertises on its Web site or in a trade journal. After publication in the official newspaper, <br/>
<a id="pl.364.5"></a><var>364.5</var>on the Web site, or in a trade journal, bids or proposals may be solicited and accepted by <br/>
<a id="pl.364.6"></a><var>364.6</var>the electronic selling process authorized in section 
         <statute_ref>471.345, subdivision 17</statute_ref>. Sales of <br/>
<a id="pl.364.7"></a><var>364.7</var>personal property the value of which is estimated to be less than $15,000 may be made <br/>
<a id="pl.364.8"></a><var>364.8</var>either on competitive bids or in the open market, in the discretion of the county board. <br/>
<a id="pl.364.9"></a><var>364.9</var>"Web site" means a specific, addressable location provided on a server connected to the <br/>
<a id="pl.364.10"></a><var>364.10</var>Internet and hosting World Wide Web pages and other files that are generally accessible <br/>
<a id="pl.364.11"></a><var>364.11</var>on the Internet all or most of a day.<br/>
<a id="pl.364.12"></a><var>364.12</var>    (d) Notwithstanding anything to the contrary herein, the county may, when acquiring <br/>
<a id="pl.364.13"></a><var>364.13</var>real property for county highway right-of-way, exchange parcels of real property of <br/>
<a id="pl.364.14"></a><var>364.14</var>substantially similar or equal value without advertising for bids. The estimated values for <br/>
<a id="pl.364.15"></a><var>364.15</var>these parcels shall be determined by the county assessor.<br/>
<a id="pl.364.16"></a><var>364.16</var>(e) Notwithstanding anything in this section to the contrary, the county may, when <br/>
<a id="pl.364.17"></a><var>364.17</var>acquiring real property for purposes other than county highway right-of-way, exchange <br/>
<a id="pl.364.18"></a><var>364.18</var>parcels of real property of substantially similar or equal value without advertising for <br/>
<a id="pl.364.19"></a><var>364.19</var>bids. The estimated values for these parcels must be determined by the county assessor <br/>
<a id="pl.364.20"></a><var>364.20</var>or a private appraisal performed by a licensed Minnesota real estate appraiser. For the <br/>
<a id="pl.364.21"></a><var>364.21</var>purpose of determining for the county the estimated values of parcels proposed to be <br/>
<a id="pl.364.22"></a><var>364.22</var>exchanged, the county assessor need not be licensed under chapter 82B. Before giving <br/>
<a id="pl.364.23"></a><var>364.23</var>final approval to any exchange of land, the county board shall hold a public hearing on <br/>
<a id="pl.364.24"></a><var>364.24</var>the exchange. At least two weeks before the hearing, the county auditor shall post a <br/>
<a id="pl.364.25"></a><var>364.25</var>notice in the auditor's office and the official newspaper of the county of the hearing that <br/>
<a id="pl.364.26"></a><var>364.26</var>contains a description of the lands affected.<br/>
<a id="pl.364.27"></a><var>364.27</var>    (f) If real estate or personal property remains unsold after advertising for and <br/>
<a id="pl.364.28"></a><var>364.28</var>consideration of bids or proposals the county may employ a broker to sell the property. <br/>
<a id="pl.364.29"></a><var>364.29</var>The broker may sell the property for not less than 90 percent of its appraised market value <br/>
<a id="pl.364.30"></a><var>364.30</var>as determined by the county. The broker's fee shall be set by agreement with the county but <br/>
<a id="pl.364.31"></a><var>364.31</var>may not exceed ten percent of the sale price and must be paid from the proceeds of the sale.<br/>
<a id="pl.364.32"></a><var>364.32</var>    (g) A county or its agent may rent a county-owned residence acquired for the <br/>
<a id="pl.364.33"></a><var>364.33</var>furtherance of an approved capital improvement project subject to the conditions set <br/>
<a id="pl.364.34"></a><var>364.34</var>by the county board and not subject to the conditions for lease otherwise provided by <br/>
<a id="pl.364.35"></a><var>364.35</var>paragraph (a), clause (4), and paragraphs (b), (c), (d), (f), and (h).<br/>
<a id="pl.365.1"></a><var>365.1</var>    (h) In no case shall lands be disposed of without there being reserved to the county <br/>
<a id="pl.365.2"></a><var>365.2</var>all iron ore and other valuable minerals in and upon the lands, with right to explore for, <br/>
<a id="pl.365.3"></a><var>365.3</var>mine and remove the iron ore and other valuable minerals, nor shall the minerals and <br/>
<a id="pl.365.4"></a><var>365.4</var>mineral rights be disposed of, either before or after disposition of the surface rights, <br/>
<a id="pl.365.5"></a><var>365.5</var>otherwise than by mining lease, in similar general form to that provided by section 
         <statute_ref>93.20 <br/>
</statute_ref><a id="pl.365.6"></a><var>365.6</var>for mining leases affecting state lands. The lease shall be for a term not exceeding 50 <br/>
<a id="pl.365.7"></a><var>365.7</var>years, and be issued on a royalty basis, the royalty to be not less than 25 cents per ton of <br/>
<a id="pl.365.8"></a><var>365.8</var>2,240 pounds, and fix a minimum amount of royalty payable during each year, whether <br/>
<a id="pl.365.9"></a><var>365.9</var>mineral is removed or not. Prospecting options for mining leases may be granted for <br/>
<a id="pl.365.10"></a><var>365.10</var>periods not exceeding one year. The options shall require, among other things, periodical <br/>
<a id="pl.365.11"></a><var>365.11</var>showings to the county board of the results of exploration work done.<br/>
<a id="pl.365.12"></a><var>365.12</var>    (i) Notwithstanding anything in this subdivision to the contrary, the county may, <br/>
<a id="pl.365.13"></a><var>365.13</var>when selling real property owned in fee simple that cannot be improved because of <br/>
<a id="pl.365.14"></a><var>365.14</var>noncompliance with local ordinances regarding minimum area, shape, frontage, or access, <br/>
<a id="pl.365.15"></a><var>365.15</var>proceed to sell the nonconforming parcel without advertising for bid. At the county's <br/>
<a id="pl.365.16"></a><var>365.16</var>discretion, the real property may be restricted to sale to adjoining landowners or may be <br/>
<a id="pl.365.17"></a><var>365.17</var>sold to any other interested party. The property shall be sold to the highest bidder, but in no <br/>
<a id="pl.365.18"></a><var>365.18</var>case shall the property be sold for less than 90 percent of its fair market value as determined <br/>
<a id="pl.365.19"></a><var>365.19</var>by the county assessor. All owners of land adjoining the land to be sold shall be given a <br/>
<a id="pl.365.20"></a><var>365.20</var>written notice at least 30 days before the sale. This paragraph shall be liberally construed to <br/>
<a id="pl.365.21"></a><var>365.21</var>encourage the sale of nonconforming real property and promote its return to the tax roles.<br/>
<a id="pl.365.22"></a><var>365.22</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.15.25.0"></a><a id="pl.365.23"></a><var>365.23</var>    Sec. 25. <b> REPEALER.</b><br/>
<a id="pl.365.24"></a><var>365.24</var>Minnesota Statutes 2012, sections 272.69; and 273.11, subdivisions 1a and 22, are <br/>
<a id="pl.365.25"></a><var>365.25</var>repealed.<br/>
<a id="pl.365.26"></a><var>365.26</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.0.0"></a>

<a id="bill.16.1.0"></a><a id="pl.365.29"></a><var>365.29</var>    Section 1. Minnesota Statutes 2012, section 16A.46, is amended to read:<br/>
<a id="pl.365.30"></a><var>365.30</var><b>16A.46 LOST OR DESTROYED WARRANT DUPLICATE; INDEMNITY.</b><br/>
<a id="pl.365.31"></a><var>365.31</var>    Subdivision 1. <b>Duplicate warrant.</b> The commissioner may issue a duplicate of an <br/>
<a id="pl.365.32"></a><var>365.32</var>unpaid warrant to an owner if the owner certifies that the original was lost or destroyed. The <br/>
<a id="pl.366.1"></a><var>366.1</var>commissioner may require certification be documented by affidavit. The commissioner <br/>
<a id="pl.366.2"></a><var>366.2</var>may refuse to issue a duplicate of an unpaid state warrant. If the commissioner acts in <br/>
<a id="pl.366.3"></a><var>366.3</var>good faith, the commissioner is not liable, whether the application is granted or denied.<br/>
<a id="pl.366.4"></a><var>366.4</var>    Subd. 2. <b>Original warrant is void.</b> When the duplicate is issued, the original is <br/>
<a id="pl.366.5"></a><var>366.5</var>void. The commissioner may require an indemnity bond from the applicant to the state for <br/>
<a id="pl.366.6"></a><var>366.6</var>double the amount of the warrant for anyone damaged by the issuance of the duplicate. <br/>
<a id="pl.366.7"></a><var>366.7</var>The commissioner may refuse to issue a duplicate of an unpaid state warrant. If the <br/>
<a id="pl.366.8"></a><var>366.8</var>commissioner acts in good faith the commissioner is not liable, whether the application is <br/>
<a id="pl.366.9"></a><var>366.9</var>granted or denied is not liable to any holder who took the void original warrant for value, <br/>
<a id="pl.366.10"></a><var>366.10</var>whether or not the commissioner required an indemnity bond from the applicant. <br/>
<a id="pl.366.11"></a><var>366.11</var>    Subd. 3. <b>Unpaid refund or rebate.</b> For an unpaid refund or rebate issued under a <br/>
<a id="pl.366.12"></a><var>366.12</var>tax law administered by the commissioner of revenue that has been lost or destroyed, an <br/>
<a id="pl.366.13"></a><var>366.13</var>affidavit is not required for the commissioner to issue a duplicate if the duplicate is issued <br/>
<a id="pl.366.14"></a><var>366.14</var>to the same name and Social Security number as the original warrant and that information <br/>
<a id="pl.366.15"></a><var>366.15</var>is verified on a tax return filed by the recipient.<br/>
<a id="pl.366.16"></a><var>366.16</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.2.0"></a><a id="pl.366.17"></a><var>366.17</var>    Sec. 2. Minnesota Statutes 2012, section 270C.38, subdivision 1, is amended to read:<br/>
<a id="pl.366.18"></a><var>366.18</var>    Subdivision 1. <b>Sufficient notice.</b> (a) If no method of notification of a written <br/>
<a id="pl.366.19"></a><var>366.19</var>determination or action of the commissioner is otherwise specifically provided for by <br/>
<a id="pl.366.20"></a><var>366.20</var>law, notice of the determination or action sent postage prepaid by United States mail to <br/>
<a id="pl.366.21"></a><var>366.21</var>the taxpayer or other person affected by the determination or action at the taxpayer's <br/>
<a id="pl.366.22"></a><var>366.22</var>or person's last known address, is sufficient. If the taxpayer or person being notified is <br/>
<a id="pl.366.23"></a><var>366.23</var>deceased or is under a legal disability, or, in the case of a corporation being notified that <br/>
<a id="pl.366.24"></a><var>366.24</var>has terminated its existence, notice to the last known address of the taxpayer, person, or <br/>
<a id="pl.366.25"></a><var>366.25</var>corporation is sufficient, unless the department has been provided with a new address by a <br/>
<a id="pl.366.26"></a><var>366.26</var>party authorized to receive notices from the commissioner.<br/>
<a id="pl.366.27"></a><var>366.27</var>(b) If a taxpayer or other person agrees to accept notification by electronic means, <br/>
<a id="pl.366.28"></a><var>366.28</var>notice of a determination or action of the commissioner sent by electronic mail to the <br/>
<a id="pl.366.29"></a><var>366.29</var>taxpayer's or person's last known electronic mailing address as provided for in section <br/>
<a id="pl.366.30"></a><var>366.30</var>325L.08 is sufficient.<br/>
<a id="pl.366.31"></a><var>366.31</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.3.0"></a><a id="pl.366.32"></a><var>366.32</var>    Sec. 3. Minnesota Statutes 2012, section 270C.42, subdivision 2, is amended to read:<br/>
<a id="pl.367.1"></a><var>367.1</var>    Subd. 2. <b>Penalty for failure to pay electronically.</b> In addition to other applicable <br/>
<a id="pl.367.2"></a><var>367.2</var>penalties imposed by law, after notification from the commissioner to the taxpayer that <br/>
<a id="pl.367.3"></a><var>367.3</var>payments for a tax payable to the commissioner are required to be made by electronic <br/>
<a id="pl.367.4"></a><var>367.4</var>means, and the payments are remitted by some other means, there is a penalty in the <br/>
<a id="pl.367.5"></a><var>367.5</var>amount of five percent of each payment that should have been remitted electronically. <br/>
<a id="pl.367.6"></a><var>367.6</var>After the commissioner's initial notification to the taxpayer that payments are required to <br/>
<a id="pl.367.7"></a><var>367.7</var>be made by electronic means, the commissioner is not required to notify the taxpayer in <br/>
<a id="pl.367.8"></a><var>367.8</var>subsequent periods if the initial notification specified the amount of tax liability at which a <br/>
<a id="pl.367.9"></a><var>367.9</var>taxpayer is required to remit payments by electronic means. The penalty can be abated <br/>
<a id="pl.367.10"></a><var>367.10</var>under the abatement procedures prescribed in section 
         <statute_ref>270C.34</statute_ref> if the failure to remit the <br/>
<a id="pl.367.11"></a><var>367.11</var>payment electronically is due to reasonable cause. The penalty bears interest at the rate <br/>
<a id="pl.367.12"></a><var>367.12</var>specified in section 
         <statute_ref>270C.40</statute_ref> from the due date of the payment of the tax provided in <br/>
<a id="pl.367.13"></a><var>367.13</var>section 270C.40, subdivision 3, to the date of payment of the penalty.<br/>
<a id="pl.367.14"></a><var>367.14</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.4.0"></a><a id="pl.367.15"></a><var>367.15</var>    Sec. 4. Minnesota Statutes 2012, section 287.385, subdivision 7, is amended to read:<br/>
<a id="pl.367.16"></a><var>367.16</var>    Subd. 7. <b>Interest on penalties.</b> A penalty imposed under this chapter bears interest <br/>
<a id="pl.367.17"></a><var>367.17</var>from the date payment was required to be paid, including any extensions, provided in <br/>
<a id="pl.367.18"></a><var>367.18</var>section 270C.40, subdivision 3, to the date of payment of the penalty.<br/>
<a id="pl.367.19"></a><var>367.19</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.5.0"></a><a id="pl.367.20"></a><var>367.20</var>    Sec. 5. Minnesota Statutes 2012, section 289A.55, subdivision 9, is amended to read:<br/>
<a id="pl.367.21"></a><var>367.21</var>    Subd. 9. <b>Interest on penalties.</b> (a) A penalty imposed under section 
         <statute_ref>289A.60, <br/>
<a id="pl.367.22"></a><var>367.22</var>subdivision 1
         </statute_ref>, 2, 2a, 4, 5, 6, or 21 bears interest from the date the return or payment <br/>
<a id="pl.367.23"></a><var>367.23</var>was required to be filed or paid, including any extensions provided in section 270C.40, <br/>
<a id="pl.367.24"></a><var>367.24</var>subdivision 3, to the date of payment of the penalty.<br/>
<a id="pl.367.25"></a><var>367.25</var>(b) A penalty not included in paragraph (a) bears interest only if it is not paid within <br/>
<a id="pl.367.26"></a><var>367.26</var>60 days from the date of notice. In that case interest is imposed from the date of notice <br/>
<a id="pl.367.27"></a><var>367.27</var>to the date of payment.<br/>
<a id="pl.367.28"></a><var>367.28</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.6.0"></a><a id="pl.367.29"></a><var>367.29</var>    Sec. 6. Minnesota Statutes 2012, section 289A.60, subdivision 4, is amended to read:<br/>
<a id="pl.367.30"></a><var>367.30</var>    Subd. 4. <b>Substantial understatement of liability; penalty.</b> (a) The commissioner <br/>
<a id="pl.367.31"></a><var>367.31</var>of revenue shall impose a penalty for substantial understatement of any tax payable to the <br/>
<a id="pl.367.32"></a><var>367.32</var>commissioner, except a tax imposed under chapter 297A.<br/>
<a id="pl.368.1"></a><var>368.1</var>(b) There must be added to the tax an amount equal to 20 percent of the amount of any <br/>
<a id="pl.368.2"></a><var>368.2</var>underpayment attributable to the understatement. There is a substantial understatement of <br/>
<a id="pl.368.3"></a><var>368.3</var>tax for the period if the amount of the understatement for the period exceeds the greater of:<br/>
<a id="pl.368.4"></a><var>368.4</var>(1) ten percent of the tax required to be shown on the return for the period; or<br/>
<a id="pl.368.5"></a><var>368.5</var>(2)(i) $10,000 in the case of a mining company or a corporation, other than an S <br/>
<a id="pl.368.6"></a><var>368.6</var>corporation as defined in section 
         <statute_ref>290.9725</statute_ref>, when the tax is imposed by chapter 290 or <br/>
<a id="pl.368.7"></a><var>368.7</var>section 
         <statute_ref>298.01</statute_ref> or 
         <statute_ref>298.015</statute_ref>, or<br/>
<a id="pl.368.8"></a><var>368.8</var>(ii) $5,000 in the case of any other taxpayer, and in the case of a mining company or <br/>
<a id="pl.368.9"></a><var>368.9</var>a corporation any tax not imposed by chapter 290 or section 
         <statute_ref>298.01</statute_ref> or 
         <statute_ref>298.015</statute_ref>.<br/>
<a id="pl.368.10"></a><var>368.10</var>(c) For a corporation, other than an S corporation, there is also a substantial <br/>
<a id="pl.368.11"></a><var>368.11</var>understatement of tax for any taxable year if the amount of the understatement for the <br/>
<a id="pl.368.12"></a><var>368.12</var>taxable year exceeds the lesser of:<br/>
<a id="pl.368.13"></a><var>368.13</var>(1) ten percent of the tax required to be shown on the return for the taxable year <br/>
<a id="pl.368.14"></a><var>368.14</var>(or, if greater, $10,000); or<br/>
<a id="pl.368.15"></a><var>368.15</var>(2) $10,000,000.<br/>
<a id="pl.368.16"></a><var>368.16</var>(d) The term "understatement" means the excess of the amount of the tax required <br/>
<a id="pl.368.17"></a><var>368.17</var>to be shown on the return for the period, over the amount of the tax imposed that is <br/>
<a id="pl.368.18"></a><var>368.18</var>shown on the return. The excess must be determined without regard to items to which <br/>
<a id="pl.368.19"></a><var>368.19</var>subdivision 27 applies. The amount of the understatement shall be reduced by that part of <br/>
<a id="pl.368.20"></a><var>368.20</var>the understatement that is attributable to the tax treatment of any item by the taxpayer if <br/>
<a id="pl.368.21"></a><var>368.21</var>(1) there is or was substantial authority for the treatment, or (2)(i) any item with respect to <br/>
<a id="pl.368.22"></a><var>368.22</var>which the relevant facts affecting the item's tax treatment are adequately disclosed in the <br/>
<a id="pl.368.23"></a><var>368.23</var>return or in a statement attached to the return and (ii) there is a reasonable basis for the tax <br/>
<a id="pl.368.24"></a><var>368.24</var>treatment of the item. The exception for substantial authority under clause (1) does not <br/>
<a id="pl.368.25"></a><var>368.25</var>apply to positions listed by the Secretary of the Treasury under section 6662(d)(3) of the <br/>
<a id="pl.368.26"></a><var>368.26</var>Internal Revenue Code. A corporation does not have a reasonable basis for its tax treatment <br/>
<a id="pl.368.27"></a><var>368.27</var>of an item attributable to a multiple-party financing transaction if the treatment does not <br/>
<a id="pl.368.28"></a><var>368.28</var>clearly reflect the income of the corporation within the meaning of section 6662(d)(2)(B) <br/>
<a id="pl.368.29"></a><var>368.29</var>of the Internal Revenue Code. The special rules in cases involving tax shelters provided in <br/>
<a id="pl.368.30"></a><var>368.30</var>section 6662(d)(2)(C) of the Internal Revenue Code shall apply and shall apply to a tax <br/>
<a id="pl.368.31"></a><var>368.31</var>shelter the principal purpose of which is the avoidance or evasion of state taxes.<br/>
<a id="pl.368.32"></a><var>368.32</var>(e) The commissioner may abate all or any part of the addition to the tax provided <br/>
<a id="pl.368.33"></a><var>368.33</var>by this section on a showing by the taxpayer that there was reasonable cause for the <br/>
<a id="pl.368.34"></a><var>368.34</var>understatement, or part of it, and that the taxpayer acted in good faith. The additional tax <br/>
<a id="pl.368.35"></a><var>368.35</var>and penalty shall bear interest at the rate as specified in section 
         <statute_ref>270C.40</statute_ref> from the time <br/>
<a id="pl.368.36"></a><var>368.36</var>the tax should have been paid until paid.<br/>
<a id="pl.369.1"></a><var>369.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.7.0"></a><a id="pl.369.2"></a><var>369.2</var>    Sec. 7. Minnesota Statutes 2012, section 296A.01, subdivision 19, is amended to read:<br/>
<a id="pl.369.3"></a><var>369.3</var>    Subd. 19. <b>E85.</b> "E85" means a petroleum product that is a blend of agriculturally <br/>
<a id="pl.369.4"></a><var>369.4</var>derived denatured ethanol and gasoline or natural gasoline that typically contains not more <br/>
<a id="pl.369.5"></a><var>369.5</var>than 85 percent ethanol by volume, but at a minimum must contain 60 greater than 50<br/>
<a id="pl.369.6"></a><var>369.6</var> percent ethanol by volume. For the purposes of this chapter, the energy content of E85 <br/>
<a id="pl.369.7"></a><var>369.7</var>will be considered to be 82,000 BTUs per gallon. E85 produced for use as a motor fuel in <br/>
<a id="pl.369.8"></a><var>369.8</var>alternative fuel vehicles as defined in subdivision 5 must comply with ASTM specification <br/>
<a id="pl.369.9"></a><var>369.9</var>D5798-07 D5798-11.<br/>
<a id="pl.369.10"></a><var>369.10</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.8.0"></a><a id="pl.369.11"></a><var>369.11</var>    Sec. 8. Minnesota Statutes 2012, section 296A.22, subdivision 1, is amended to read:<br/>
<a id="pl.369.12"></a><var>369.12</var>    Subdivision 1. <b>Penalty for failure to pay tax, general rule.</b> Upon the failure of <br/>
<a id="pl.369.13"></a><var>369.13</var>any person to pay any tax or fee when due, a penalty of one percent per day for the first <br/>
<a id="pl.369.14"></a><var>369.14</var>ten days of delinquency shall accrue, and thereafter the tax, fees, and penalty shall bear <br/>
<a id="pl.369.15"></a><var>369.15</var>interest at the rate specified in section 
         <statute_ref>270C.40</statute_ref> until paid.<br/>
<a id="pl.369.16"></a><var>369.16</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.9.0"></a><a id="pl.369.17"></a><var>369.17</var>    Sec. 9. Minnesota Statutes 2012, section 296A.22, subdivision 3, is amended to read:<br/>
<a id="pl.369.18"></a><var>369.18</var>    Subd. 3. <b>Operating without license.</b> If any person operates as a distributor, special <br/>
<a id="pl.369.19"></a><var>369.19</var>fuel dealer, bulk purchaser, or motor carrier without first securing the license required <br/>
<a id="pl.369.20"></a><var>369.20</var>under this chapter, any tax or fee imposed by this chapter shall become immediately due <br/>
<a id="pl.369.21"></a><var>369.21</var>and payable. A penalty of 25 percent is imposed upon the tax and fee due. The tax, and<br/>
<a id="pl.369.22"></a><var>369.22</var> fees, and penalty shall bear interest at the rate specified in section 
         <statute_ref>270C.40</statute_ref>. The penalty <br/>
<a id="pl.369.23"></a><var>369.23</var>imposed in this subdivision shall bear interest from the date provided in section 270C.40, <br/>
<a id="pl.369.24"></a><var>369.24</var>subdivision 3, to the date of payment of the penalty.<br/>
<a id="pl.369.25"></a><var>369.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.10.0"></a><a id="pl.369.26"></a><var>369.26</var>    Sec. 10. Minnesota Statutes 2012, section 297A.665, is amended to read:<br/>
<a id="pl.369.27"></a><var>369.27</var><b>297A.665 PRESUMPTION OF TAX; BURDEN OF PROOF.</b><br/>
<a id="pl.369.28"></a><var>369.28</var>    (a) For the purpose of the proper administration of this chapter and to prevent <br/>
<a id="pl.369.29"></a><var>369.29</var>evasion of the tax, until the contrary is established, it is presumed that:<br/>
<a id="pl.369.30"></a><var>369.30</var>    (1) all gross receipts are subject to the tax; and<br/>
<a id="pl.370.1"></a><var>370.1</var>    (2) all retail sales for delivery in Minnesota are for storage, use, or other consumption <br/>
<a id="pl.370.2"></a><var>370.2</var>in Minnesota.<br/>
<a id="pl.370.3"></a><var>370.3</var>    (b) The burden of proving that a sale is not a taxable retail sale is on the seller. <br/>
<a id="pl.370.4"></a><var>370.4</var>However, a seller is relieved of liability if:<br/>
<a id="pl.370.5"></a><var>370.5</var>    (1) the seller obtains a fully completed exemption certificate or all the relevant <br/>
<a id="pl.370.6"></a><var>370.6</var>information required by section 
         <statute_ref>297A.72, subdivision 2</statute_ref>, at the time of the sale or within <br/>
<a id="pl.370.7"></a><var>370.7</var>90 days after the date of the sale; or<br/>
<a id="pl.370.8"></a><var>370.8</var>    (2) if the seller has not obtained a fully completed exemption certificate or all the <br/>
<a id="pl.370.9"></a><var>370.9</var>relevant information required by section 
         <statute_ref>297A.72, subdivision 2</statute_ref>, within the time provided <br/>
<a id="pl.370.10"></a><var>370.10</var>in clause (1), within 120 days after a request for substantiation by the commissioner, <br/>
<a id="pl.370.11"></a><var>370.11</var>the seller either:<br/>
<a id="pl.370.12"></a><var>370.12</var>    (i) obtains in good faith from the purchaser a fully completed exemption certificate <br/>
<a id="pl.370.13"></a><var>370.13</var>or all the relevant information required by section 
         <statute_ref>297A.72, subdivision 2</statute_ref>, from the <br/>
<a id="pl.370.14"></a><var>370.14</var>purchaser taken in good faith which means that the exemption certificate claims an <br/>
<a id="pl.370.15"></a><var>370.15</var>exemption that (A) was statutorily available on the date of the transaction, (B) could be <br/>
<a id="pl.370.16"></a><var>370.16</var>applicable to the item for which the exemption is claimed, and (C) is reasonable for the <br/>
<a id="pl.370.17"></a><var>370.17</var>purchaser's type of business; or<br/>
<a id="pl.370.18"></a><var>370.18</var>    (ii) proves by other means that the transaction was not subject to tax.<br/>
<a id="pl.370.19"></a><var>370.19</var>    (c) Notwithstanding paragraph (b), relief from liability does not apply to a seller who:<br/>
<a id="pl.370.20"></a><var>370.20</var>    (1) fraudulently fails to collect the tax; or<br/>
<a id="pl.370.21"></a><var>370.21</var>    (2) solicits purchasers to participate in the unlawful claim of an exemption.<br/>
<a id="pl.370.22"></a><var>370.22</var>(d) Notwithstanding paragraph (b), relief from liability does not apply to a seller <br/>
<a id="pl.370.23"></a><var>370.23</var>who has obtained information under paragraph (b), clause (2), if through the audit process <br/>
<a id="pl.370.24"></a><var>370.24</var>the commissioner finds the following:<br/>
<a id="pl.370.25"></a><var>370.25</var>(1) that at the time the information was provided the seller had knowledge or had <br/>
<a id="pl.370.26"></a><var>370.26</var>reason to know that the information relating to the exemption was materially false; or<br/>
<a id="pl.370.27"></a><var>370.27</var>(2) that the seller knowingly participated in activity intended to purposefully evade <br/>
<a id="pl.370.28"></a><var>370.28</var>the sales tax due on the transaction.<br/>
<a id="pl.370.29"></a><var>370.29</var>    (d) (e) A certified service provider, as defined in section 
         <statute_ref>297A.995, subdivision 2</statute_ref>, is <br/>
<a id="pl.370.30"></a><var>370.30</var>relieved of liability under this section to the extent a seller who is its client is relieved of <br/>
<a id="pl.370.31"></a><var>370.31</var>liability.<br/>
<a id="pl.370.32"></a><var>370.32</var>    (e) (f) A purchaser of tangible personal property or any items listed in section 
         <statute_ref>297A.63 <br/>
</statute_ref><a id="pl.370.33"></a><var>370.33</var>that are shipped or brought to Minnesota by the purchaser has the burden of proving that the <br/>
<a id="pl.370.34"></a><var>370.34</var>property was not purchased from a retailer for storage, use, or consumption in Minnesota.<br/>
<a id="pl.370.35"></a><var>370.35</var>(f) (g) If a seller claims that certain sales are exempt and does not provide the <br/>
<a id="pl.370.36"></a><var>370.36</var>certificate, information, or proof required by paragraph (b), clause (2), within 120 days <br/>
<a id="pl.371.1"></a><var>371.1</var>after the date of the commissioner's request for substantiation, then the exemptions <br/>
<a id="pl.371.2"></a><var>371.2</var>claimed by the seller that required substantiation are disallowed.<br/>
<a id="pl.371.3"></a><var>371.3</var><b>EFFECTIVE DATE.</b>This section is effective retroactively from January 1, 2013.<br/>
<br/>
<a id="bill.16.11.0"></a><a id="pl.371.4"></a><var>371.4</var>    Sec. 11. Minnesota Statutes 2012, section 297B.11, is amended to read:<br/>
<a id="pl.371.5"></a><var>371.5</var><b>297B.11 REGISTRAR AS AGENT OF COMMISSIONER OF REVENUE; </b><br/>
<a id="pl.371.6"></a><var>371.6</var><b>POWERS.</b><br/>
<a id="pl.371.7"></a><var>371.7</var>The state commissioner of revenue is charged with the administration of the <br/>
<a id="pl.371.8"></a><var>371.8</var>sales tax on motor vehicles. The commissioner may prescribe all rules not inconsistent <br/>
<a id="pl.371.9"></a><var>371.9</var>with the provisions of this chapter, necessary and advisable for the proper and efficient <br/>
<a id="pl.371.10"></a><var>371.10</var>administration of the law. The collection of this sales tax on motor vehicles shall be <br/>
<a id="pl.371.11"></a><var>371.11</var>carried out by the motor vehicle registrar who shall act as the agent of the commissioner <br/>
<a id="pl.371.12"></a><var>371.12</var>and who shall be subject to all rules not inconsistent with the provisions of this chapter, <br/>
<a id="pl.371.13"></a><var>371.13</var>that may be prescribed by the commissioner.<br/>
<a id="pl.371.14"></a><var>371.14</var>The provisions of chapters 270C, 289A, and 297A relating to the commissioner's <br/>
<a id="pl.371.15"></a><var>371.15</var>authority to audit, assess, and collect the tax, and to issue refunds and to hear appeals, <br/>
<a id="pl.371.16"></a><var>371.16</var>are applicable to the sales tax on motor vehicles. The commissioner may impose civil <br/>
<a id="pl.371.17"></a><var>371.17</var>penalties as provided in chapters 289A and 297A, and the additional tax and penalties <br/>
<a id="pl.371.18"></a><var>371.18</var>are subject to interest at the rate provided in section 
         <statute_ref>270C.40</statute_ref> from the date provided in <br/>
<a id="pl.371.19"></a><var>371.19</var>section 270C.40, subdivision 3, until paid.<br/>
<a id="pl.371.20"></a><var>371.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.12.0"></a><a id="pl.371.21"></a><var>371.21</var>    Sec. 12. Minnesota Statutes 2012, section 297E.14, subdivision 7, is amended to read:<br/>
<a id="pl.371.22"></a><var>371.22</var>    Subd. 7. <b>Interest on penalties.</b> (a) A penalty imposed under section 
         <statute_ref>297E.12, <br/>
<a id="pl.371.23"></a><var>371.23</var>subdivision 1
         </statute_ref>, 2, 3, 4, or 5, bears interest from the date the return or payment was required <br/>
<a id="pl.371.24"></a><var>371.24</var>to be filed or paid, including any extensions provided in section 270C.40, subdivision <br/>
<a id="pl.371.25"></a><var>371.25</var>3, to the date of payment of the penalty.<br/>
<a id="pl.371.26"></a><var>371.26</var>(b) A penalty not included in paragraph (a) bears interest only if it is not paid within <br/>
<a id="pl.371.27"></a><var>371.27</var>ten days from the date of notice. In that case interest is imposed from the date of notice <br/>
<a id="pl.371.28"></a><var>371.28</var>to the date of payment.<br/>
<a id="pl.371.29"></a><var>371.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.13.0"></a><a id="pl.371.30"></a><var>371.30</var>    Sec. 13. Minnesota Statutes 2012, section 297F.01, subdivision 23, is amended to read:<br/>
<a id="pl.372.1"></a><var>372.1</var>    Subd. 23. <b>Wholesale sales price.</b> "Wholesale sales price" means the price stated <br/>
<a id="pl.372.2"></a><var>372.2</var>on the price list in effect at the time of sale for which a manufacturer or person sells a <br/>
<a id="pl.372.3"></a><var>372.3</var>tobacco product to a distributor, exclusive of any discount, promotional offer, or other <br/>
<a id="pl.372.4"></a><var>372.4</var>reduction. For purposes of this subdivision, "price list" means the manufacturer's price at <br/>
<a id="pl.372.5"></a><var>372.5</var>which tobacco products are made available for sale to all distributors on an ongoing basis<br/>
<a id="pl.372.6"></a><var>372.6</var> at which a distributor purchases a tobacco product. Wholesale sales price includes the <br/>
<a id="pl.372.7"></a><var>372.7</var>applicable federal excise tax, freight charges, or packaging costs, regardless of whether <br/>
<a id="pl.372.8"></a><var>372.8</var>they were included in the purchase price.<br/>
<a id="pl.372.9"></a><var>372.9</var><b>EFFECTIVE DATE.</b>This section is effective for purchases made after December <br/>
<a id="pl.372.10"></a><var>372.10</var>31, 2013.<br/>
<br/>
<a id="bill.16.14.0"></a><a id="pl.372.11"></a><var>372.11</var>    Sec. 14. Minnesota Statutes 2012, section 297F.09, subdivision 9, is amended to read:<br/>
<a id="pl.372.12"></a><var>372.12</var>    Subd. 9. <b>Interest.</b> The amount of tax not timely paid, together with any penalty <br/>
<a id="pl.372.13"></a><var>372.13</var>imposed in this section, bears interest at the rate specified in section 
         <statute_ref>270C.40</statute_ref> from the <br/>
<a id="pl.372.14"></a><var>372.14</var>time such tax should have been paid until paid. The penalty imposed in this section bears <br/>
<a id="pl.372.15"></a><var>372.15</var>interest at the rate specified in section 270C.40 from the date provided in section 270C.40, <br/>
<a id="pl.372.16"></a><var>372.16</var>subdivision 3, to the date of payment of the penalty. Any interest and penalty is added to <br/>
<a id="pl.372.17"></a><var>372.17</var>the tax and collected as a part of it.<br/>
<a id="pl.372.18"></a><var>372.18</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.15.0"></a><a id="pl.372.19"></a><var>372.19</var>    Sec. 15. Minnesota Statutes 2012, section 297F.18, subdivision 7, is amended to read:<br/>
<a id="pl.372.20"></a><var>372.20</var>    Subd. 7. <b>Interest on penalties.</b> (a) A penalty imposed under section 
         <statute_ref>297F.19</statute_ref>, <br/>
<a id="pl.372.21"></a><var>372.21</var>subdivisions 2 to 7, bears interest from the date the return or payment was required to be <br/>
<a id="pl.372.22"></a><var>372.22</var>filed or paid, including any extensions provided in section 270C.40, subdivision 3, to the <br/>
<a id="pl.372.23"></a><var>372.23</var>date of payment of the penalty.<br/>
<a id="pl.372.24"></a><var>372.24</var>(b) A penalty not included in paragraph (a) bears interest only if it is not paid within <br/>
<a id="pl.372.25"></a><var>372.25</var>ten days from the date of the notice. In that case interest is imposed from the date of notice <br/>
<a id="pl.372.26"></a><var>372.26</var>to the date of payment.<br/>
<a id="pl.372.27"></a><var>372.27</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.16.0"></a><a id="pl.372.28"></a><var>372.28</var>    Sec. 16. Minnesota Statutes 2012, section 297G.09, subdivision 8, is amended to read:<br/>
<a id="pl.372.29"></a><var>372.29</var>    Subd. 8. <b>Interest.</b> The amount of tax not timely paid, together with any penalty <br/>
<a id="pl.372.30"></a><var>372.30</var>imposed by this chapter, bears interest at the rate specified in section 
         <statute_ref>270C.40</statute_ref> from the <br/>
<a id="pl.372.31"></a><var>372.31</var>time the tax should have been paid until paid. Any penalty imposed by this chapter bears <br/>
<a id="pl.373.1"></a><var>373.1</var>interest from the date provided in section 270C.40, subdivision 3, to the date of payment <br/>
<a id="pl.373.2"></a><var>373.2</var>of the penalty. Any interest and penalty is added to the tax and collected as a part of it.<br/>
<a id="pl.373.3"></a><var>373.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.17.0"></a><a id="pl.373.4"></a><var>373.4</var>    Sec. 17. Minnesota Statutes 2012, section 297G.17, subdivision 7, is amended to read:<br/>
<a id="pl.373.5"></a><var>373.5</var>    Subd. 7. <b>Interest on penalties.</b> (a) A penalty imposed under section 
         <statute_ref>297G.18</statute_ref>, <br/>
<a id="pl.373.6"></a><var>373.6</var>subdivisions 2 to 7, bears interest from the date the return or payment was required to be <br/>
<a id="pl.373.7"></a><var>373.7</var>filed or paid, including any extensions provided in section 270C.40, subdivision 3, to the <br/>
<a id="pl.373.8"></a><var>373.8</var>date of payment of the penalty.<br/>
<a id="pl.373.9"></a><var>373.9</var>(b) A penalty not included in paragraph (a) bears interest only if it is not paid within <br/>
<a id="pl.373.10"></a><var>373.10</var>ten days from the date of the notice. In that case interest is imposed from the date of notice <br/>
<a id="pl.373.11"></a><var>373.11</var>to the date of payment.<br/>
<a id="pl.373.12"></a><var>373.12</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.18.0"></a><a id="pl.373.13"></a><var>373.13</var>    Sec. 18. Minnesota Statutes 2012, section 297I.05, subdivision 7, is amended to read:<br/>
<a id="pl.373.14"></a><var>373.14</var>    Subd. 7. <b>Nonadmitted insurance premium tax.</b> (a) A tax is imposed on surplus <br/>
<a id="pl.373.15"></a><var>373.15</var>lines brokers. The rate of tax is equal to three percent of the gross premiums less return <br/>
<a id="pl.373.16"></a><var>373.16</var>premiums paid by an insured whose home state is Minnesota.<br/>
<a id="pl.373.17"></a><var>373.17</var>(b) A tax is imposed on persons, firms, or corporations a person, firm, corporation, <br/>
<a id="pl.373.18"></a><var>373.18</var>or purchasing group as defined in section 60E.02, or any member of a purchasing group,<br/>
<a id="pl.373.19"></a><var>373.19</var> that procure procures insurance directly from a nonadmitted insurer. The rate of tax is <br/>
<a id="pl.373.20"></a><var>373.20</var>equal to two percent of the gross premiums less return premiums paid by an insured <br/>
<a id="pl.373.21"></a><var>373.21</var>whose home state is Minnesota.<br/>
<a id="pl.373.22"></a><var>373.22</var>(c) No state other than the home state of an insured may require any premium tax <br/>
<a id="pl.373.23"></a><var>373.23</var>payment for nonadmitted insurance. When Minnesota is the home state of the insured, <br/>
<a id="pl.373.24"></a><var>373.24</var>as provided under section 
         <statute_ref>297I.01</statute_ref>, 100 percent of the gross premiums are taxable in <br/>
<a id="pl.373.25"></a><var>373.25</var>Minnesota with no allocation of the tax to other states.<br/>
<a id="pl.373.26"></a><var>373.26</var><b>EFFECTIVE DATE.</b>This section is effective for premiums received after <br/>
<a id="pl.373.27"></a><var>373.27</var>December 31, 2013.<br/>
<br/>
<a id="bill.16.19.0"></a><a id="pl.373.28"></a><var>373.28</var>    Sec. 19. Minnesota Statutes 2012, section 297I.05, subdivision 12, is amended to read:<br/>
<a id="pl.373.29"></a><var>373.29</var>    Subd. 12. <b>Other entities.</b> (a) A tax is imposed equal to two percent of:<br/>
<a id="pl.373.30"></a><var>373.30</var>    (1) gross premiums less return premiums written for risks resident or located in <br/>
<a id="pl.373.31"></a><var>373.31</var>Minnesota by a risk retention group;<br/>
<a id="pl.374.1"></a><var>374.1</var>    (2) gross premiums less return premiums received by an attorney in fact acting <br/>
<a id="pl.374.2"></a><var>374.2</var>in accordance with chapter 71A;<br/>
<a id="pl.374.3"></a><var>374.3</var>    (3) gross premiums less return premiums received pursuant to assigned risk policies <br/>
<a id="pl.374.4"></a><var>374.4</var>and contracts of coverage under chapter 79; and<br/>
<a id="pl.374.5"></a><var>374.5</var>    (4) the direct funded premium received by the reinsurance association under section <br/>
<statute_ref><a id="pl.374.6"></a><var>374.6</var>79.34
         </statute_ref> from self-insurers approved under section 
         <statute_ref>176.181</statute_ref> and political subdivisions that <br/>
<a id="pl.374.7"></a><var>374.7</var>self-insure; and.<br/>
<a id="pl.374.8"></a><var>374.8</var>    (5) gross premiums less return premiums paid to an insurer other than a licensed <br/>
<a id="pl.374.9"></a><var>374.9</var>insurance company or a surplus lines broker for coverage of risks resident or located in <br/>
<a id="pl.374.10"></a><var>374.10</var>Minnesota by a purchasing group or any members of the purchasing group to a broker or <br/>
<a id="pl.374.11"></a><var>374.11</var>agent for the purchasing group.<br/>
<a id="pl.374.12"></a><var>374.12</var>    (b) A tax is imposed on a joint self-insurance plan operating under chapter 60F. The <br/>
<a id="pl.374.13"></a><var>374.13</var>rate of tax is equal to two percent of the total amount of claims paid during the fund year, <br/>
<a id="pl.374.14"></a><var>374.14</var>with no deduction for claims wholly or partially reimbursed through stop-loss insurance.<br/>
<a id="pl.374.15"></a><var>374.15</var>    (c) A tax is imposed on a joint self-insurance plan operating under chapter 62H. <br/>
<a id="pl.374.16"></a><var>374.16</var>The rate of tax is equal to two percent of the total amount of claims paid during the <br/>
<a id="pl.374.17"></a><var>374.17</var>fund's fiscal year, with no deduction for claims wholly or partially reimbursed through <br/>
<a id="pl.374.18"></a><var>374.18</var>stop-loss insurance.<br/>
<a id="pl.374.19"></a><var>374.19</var>    (d) A tax is imposed equal to the tax imposed under section 
         <statute_ref>297I.05, subdivision 5</statute_ref>, <br/>
<a id="pl.374.20"></a><var>374.20</var>on the gross premiums less return premiums on all coverages received by an accountable <br/>
<a id="pl.374.21"></a><var>374.21</var>provider network or agents of an accountable provider network in Minnesota, in cash or <br/>
<a id="pl.374.22"></a><var>374.22</var>otherwise, during the year.<br/>
<a id="pl.374.23"></a><var>374.23</var><b>EFFECTIVE DATE.</b>This section is effective for premiums received after <br/>
<a id="pl.374.24"></a><var>374.24</var>December 31, 2013.<br/>
<br/>
<a id="bill.16.20.0"></a><a id="pl.374.25"></a><var>374.25</var>    Sec. 20. Minnesota Statutes 2012, section 297I.30, subdivision 1, is amended to read:<br/>
<a id="pl.374.26"></a><var>374.26</var>    Subdivision 1. <b>General rule.</b> On or before March 1, every taxpayer subject to <br/>
<a id="pl.374.27"></a><var>374.27</var>taxation under section 
         <statute_ref>297I.05, subdivisions 1 to </statute_ref>
<statute_ref>5</statute_ref>,; 7, paragraph (b),; 12, paragraphs (a), <br/>
<a id="pl.374.28"></a><var>374.28</var>clauses (1) to (4), (b), (c), and (d),; and 14, shall file an annual return for the preceding <br/>
<a id="pl.374.29"></a><var>374.29</var>calendar year in the form prescribed by the commissioner.<br/>
<a id="pl.374.30"></a><var>374.30</var><b>EFFECTIVE DATE.</b>This section is effective for premiums received after <br/>
<a id="pl.374.31"></a><var>374.31</var>December 31, 2013.<br/>
<br/>
<a id="bill.16.21.0"></a><a id="pl.374.32"></a><var>374.32</var>    Sec. 21. Minnesota Statutes 2012, section 297I.30, subdivision 2, is amended to read:<br/>
<a id="pl.375.1"></a><var>375.1</var>    Subd. 2. <b>Surplus lines brokers </b><b>and purchasing groups</b><b>.</b> On or before February <br/>
<a id="pl.375.2"></a><var>375.2</var>15 and August 15 of each year, every surplus lines broker subject to taxation under <br/>
<a id="pl.375.3"></a><var>375.3</var>section 
         <statute_ref>297I.05, subdivision 7</statute_ref>, paragraph (a), and every purchasing group or member of <br/>
<a id="pl.375.4"></a><var>375.4</var>a purchasing group subject to tax under section 
<statute_ref>297I.05, subdivision 12</statute_ref>, paragraph (a), <br/>
<a id="pl.375.5"></a><var>375.5</var>clause (5), shall file a return with the commissioner for the preceding six-month period <br/>
<a id="pl.375.6"></a><var>375.6</var>ending December 31, or June 30, in the form prescribed by the commissioner.<br/>
<a id="pl.375.7"></a><var>375.7</var><b>EFFECTIVE DATE.</b>This section is effective for premiums received after <br/>
<a id="pl.375.8"></a><var>375.8</var>December 31, 2013.<br/>
<br/>
<a id="bill.16.22.0"></a><a id="pl.375.9"></a><var>375.9</var>    Sec. 22. Minnesota Statutes 2012, section 297I.80, subdivision 1, is amended to read:<br/>
<a id="pl.375.10"></a><var>375.10</var>    Subdivision 1. <b>Payable to commissioner.</b> (a) When interest is required under this <br/>
<a id="pl.375.11"></a><var>375.11</var>section, interest is computed at the rate specified in section 
         <statute_ref>270C.40</statute_ref>.<br/>
<a id="pl.375.12"></a><var>375.12</var>(b) If a tax or surcharge is not paid within the time named by law for payment, the <br/>
<a id="pl.375.13"></a><var>375.13</var>unpaid tax or surcharge bears interest from the date the tax or surcharge should have been <br/>
<a id="pl.375.14"></a><var>375.14</var>paid until the date the tax or surcharge is paid.<br/>
<a id="pl.375.15"></a><var>375.15</var>(c) Whenever a taxpayer is liable for additional tax or surcharge because of a <br/>
<a id="pl.375.16"></a><var>375.16</var>redetermination by the commissioner or other reason, the additional tax or surcharge <br/>
<a id="pl.375.17"></a><var>375.17</var>bears interest from the time the tax or surcharge should have been paid until the date the <br/>
<a id="pl.375.18"></a><var>375.18</var>tax or surcharge is paid.<br/>
<a id="pl.375.19"></a><var>375.19</var>(d) A penalty bears interest from the date the return or payment was required to be <br/>
<a id="pl.375.20"></a><var>375.20</var>filed or paid provided in section 270C.40, subdivision 3, to the date of payment of the <br/>
<a id="pl.375.21"></a><var>375.21</var>penalty.<br/>
<a id="pl.375.22"></a><var>375.22</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.23.0"></a><a id="pl.375.23"></a><var>375.23</var>    Sec. 23. Minnesota Statutes 2012, section 469.319, subdivision 4, is amended to read:<br/>
<a id="pl.375.24"></a><var>375.24</var>    Subd. 4. <b>Repayment procedures.</b> (a) For the repayment of taxes imposed under <br/>
<a id="pl.375.25"></a><var>375.25</var>chapter 290 or 297A or local taxes collected pursuant to section 
         <statute_ref>297A.99</statute_ref>, a business must <br/>
<a id="pl.375.26"></a><var>375.26</var>file an amended return with the commissioner of revenue and pay any taxes required <br/>
<a id="pl.375.27"></a><var>375.27</var>to be repaid within 30 days after becoming subject to repayment under this section. <br/>
<a id="pl.375.28"></a><var>375.28</var>The amount required to be repaid is determined by calculating the tax for the period or <br/>
<a id="pl.375.29"></a><var>375.29</var>periods for which repayment is required without regard to the exemptions and credits <br/>
<a id="pl.375.30"></a><var>375.30</var>allowed under section 
         <statute_ref>469.315</statute_ref>.<br/>
<a id="pl.375.31"></a><var>375.31</var>    (b) For the repayment of taxes imposed under chapter 297B, a business must pay any <br/>
<a id="pl.375.32"></a><var>375.32</var>taxes required to be repaid to the motor vehicle registrar, as agent for the commissioner of <br/>
<a id="pl.375.33"></a><var>375.33</var>revenue, within 30 days after becoming subject to repayment under this section.<br/>
<a id="pl.376.1"></a><var>376.1</var>    (c) For the repayment of property taxes, the county auditor shall prepare a tax <br/>
<a id="pl.376.2"></a><var>376.2</var>statement for the business, applying the applicable tax extension rates for each payable <br/>
<a id="pl.376.3"></a><var>376.3</var>year and provide a copy to the business and to the taxpayer of record. The business must <br/>
<a id="pl.376.4"></a><var>376.4</var>pay the taxes to the county treasurer within 30 days after receipt of the tax statement. The <br/>
<a id="pl.376.5"></a><var>376.5</var>business or the taxpayer of record may appeal the valuation and determination of the <br/>
<a id="pl.376.6"></a><var>376.6</var>property tax to the Tax Court within 30 days after receipt of the tax statement.<br/>
<a id="pl.376.7"></a><var>376.7</var>    (d) The provisions of chapters 270C and 289A relating to the commissioner's <br/>
<a id="pl.376.8"></a><var>376.8</var>authority to audit, assess, and collect the tax and to hear appeals are applicable to the <br/>
<a id="pl.376.9"></a><var>376.9</var>repayment required under paragraphs (a) and (b). The commissioner may impose civil <br/>
<a id="pl.376.10"></a><var>376.10</var>penalties as provided in chapter 289A, and the additional tax and penalties are subject <br/>
<a id="pl.376.11"></a><var>376.11</var>to interest at the rate provided in section 
         <statute_ref>270C.40</statute_ref>,. The additional tax shall bear interest<br/>
<a id="pl.376.12"></a><var>376.12</var> from 30 days after becoming subject to repayment under this section until the date the <br/>
<a id="pl.376.13"></a><var>376.13</var>tax is paid. Any penalty imposed pursuant to this section shall bear interest from the date <br/>
<a id="pl.376.14"></a><var>376.14</var>provided in section 270C.40, subdivision 3, to the date of payment of the penalty.<br/>
<a id="pl.376.15"></a><var>376.15</var>    (e) If a property tax is not repaid under paragraph (c), the county treasurer shall <br/>
<a id="pl.376.16"></a><var>376.16</var>add the amount required to be repaid to the property taxes assessed against the property <br/>
<a id="pl.376.17"></a><var>376.17</var>for payment in the year following the year in which the auditor provided the statement <br/>
<a id="pl.376.18"></a><var>376.18</var>under paragraph (c).<br/>
<a id="pl.376.19"></a><var>376.19</var>    (f) For determining the tax required to be repaid, a reduction of a state or local sales or <br/>
<a id="pl.376.20"></a><var>376.20</var>use tax is deemed to have been received on the date that the good or service was purchased <br/>
<a id="pl.376.21"></a><var>376.21</var>or first put to a taxable use. In the case of an income tax or franchise tax, including the <br/>
<a id="pl.376.22"></a><var>376.22</var>credit payable under section 
         <statute_ref>469.318</statute_ref>, a reduction of tax is deemed to have been received <br/>
<a id="pl.376.23"></a><var>376.23</var>for the two most recent tax years that have ended prior to the date that the business became <br/>
<a id="pl.376.24"></a><var>376.24</var>subject to repayment under this section. In the case of a property tax, a reduction of tax is <br/>
<a id="pl.376.25"></a><var>376.25</var>deemed to have been received for the taxes payable in the year that the business became <br/>
<a id="pl.376.26"></a><var>376.26</var>subject to repayment under this section and for the taxes payable in the prior year.<br/>
<a id="pl.376.27"></a><var>376.27</var>    (g) The commissioner may assess the repayment of taxes under paragraph (d) any <br/>
<a id="pl.376.28"></a><var>376.28</var>time within two years after the business becomes subject to repayment under subdivision <br/>
<a id="pl.376.29"></a><var>376.29</var>1, or within any period of limitations for the assessment of tax under section 
         <statute_ref>289A.38</statute_ref>, <br/>
<a id="pl.376.30"></a><var>376.30</var>whichever period is later. The county auditor may send the statement under paragraph <br/>
<a id="pl.376.31"></a><var>376.31</var>(c) any time within three years after the business becomes subject to repayment under <br/>
<a id="pl.376.32"></a><var>376.32</var>subdivision 1.<br/>
<a id="pl.376.33"></a><var>376.33</var>    (h) A business is not entitled to any income tax or franchise tax benefits, including <br/>
<a id="pl.376.34"></a><var>376.34</var>refundable credits, for any part of the year in which the business becomes subject to <br/>
<a id="pl.376.35"></a><var>376.35</var>repayment under this section nor for any year thereafter. Property is not exempt from tax <br/>
<a id="pl.376.36"></a><var>376.36</var>under section 
         <statute_ref>272.02, subdivision 64</statute_ref>, for any taxes payable in the year following the year <br/>
<a id="pl.377.1"></a><var>377.1</var>in which the property became subject to repayment under this section nor for any year <br/>
<a id="pl.377.2"></a><var>377.2</var>thereafter. A business is not eligible for any sales tax benefits beginning with goods <br/>
<a id="pl.377.3"></a><var>377.3</var>or services purchased or first put to a taxable use on the day that the business becomes <br/>
<a id="pl.377.4"></a><var>377.4</var>subject to repayment under this section.<br/>
<a id="pl.377.5"></a><var>377.5</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.16.24.0"></a><a id="pl.377.6"></a><var>377.6</var>    Sec. 24. Minnesota Statutes 2012, section 469.340, subdivision 4, is amended to read:<br/>
<a id="pl.377.7"></a><var>377.7</var>    Subd. 4. <b>Repayment procedures.</b> (a) For the repayment of taxes imposed under <br/>
<a id="pl.377.8"></a><var>377.8</var>chapter 290 or 297A or local taxes collected pursuant to section 
         <statute_ref>297A.99</statute_ref>, a business must <br/>
<a id="pl.377.9"></a><var>377.9</var>file an amended return with the commissioner of revenue and pay any taxes required to be <br/>
<a id="pl.377.10"></a><var>377.10</var>repaid within 30 days after ceasing to do business in the zone. The amount required to be <br/>
<a id="pl.377.11"></a><var>377.11</var>repaid is determined by calculating the tax for the period or periods for which repayment <br/>
<a id="pl.377.12"></a><var>377.12</var>is required without regard to the exemptions and credits allowed under section 
         <statute_ref>469.336</statute_ref>.<br/>
<a id="pl.377.13"></a><var>377.13</var>(b) For the repayment of property taxes, the county auditor shall prepare a tax <br/>
<a id="pl.377.14"></a><var>377.14</var>statement for the business, applying the applicable tax extension rates for each payable <br/>
<a id="pl.377.15"></a><var>377.15</var>year and provide a copy to the business. The business must pay the taxes to the county <br/>
<a id="pl.377.16"></a><var>377.16</var>treasurer within 30 days after receipt of the tax statement. The taxpayer may appeal the <br/>
<a id="pl.377.17"></a><var>377.17</var>valuation and determination of the property tax to the Tax Court within 30 days after <br/>
<a id="pl.377.18"></a><var>377.18</var>receipt of the tax statement.<br/>
<a id="pl.377.19"></a><var>377.19</var>(c) The provisions of chapters 270C and 289A relating to the commissioner's <br/>
<a id="pl.377.20"></a><var>377.20</var>authority to audit, assess, and collect the tax and to hear appeals are applicable to the <br/>
<a id="pl.377.21"></a><var>377.21</var>repayment required under paragraph (a). The commissioner may impose civil penalties as <br/>
<a id="pl.377.22"></a><var>377.22</var>provided in chapter 289A, and the additional tax and penalties are subject to interest at the <br/>
<a id="pl.377.23"></a><var>377.23</var>rate provided in section 
         <statute_ref>270C.40</statute_ref>,. The additional tax shall bear interest from 30 days after <br/>
<a id="pl.377.24"></a><var>377.24</var>ceasing to do business in the biotechnology and health sciences industry zone until the <br/>
<a id="pl.377.25"></a><var>377.25</var>date the tax is paid. Any penalty imposed pursuant to this section shall bear interest from <br/>
<a id="pl.377.26"></a><var>377.26</var>the date provided in section 270C.40, subdivision 3, to the date of payment of the penalty.<br/>
<a id="pl.377.27"></a><var>377.27</var>(d) If a property tax is not repaid under paragraph (b), the county treasurer shall add <br/>
<a id="pl.377.28"></a><var>377.28</var>the amount required to be repaid to the property taxes assessed against the property for <br/>
<a id="pl.377.29"></a><var>377.29</var>payment in the year following the year in which the treasurer discovers that the business <br/>
<a id="pl.377.30"></a><var>377.30</var>ceased to operate in the biotechnology and health sciences industry zone.<br/>
<a id="pl.377.31"></a><var>377.31</var>(e) For determining the tax required to be repaid, a tax reduction is deemed to have <br/>
<a id="pl.377.32"></a><var>377.32</var>been received on the date that the tax would have been due if the taxpayer had not been <br/>
<a id="pl.377.33"></a><var>377.33</var>entitled to the exemption, or on the date a refund was issued for a refundable credit.<br/>
<a id="pl.377.34"></a><var>377.34</var>(f) The commissioner may assess the repayment of taxes under paragraph (c) any <br/>
<a id="pl.377.35"></a><var>377.35</var>time within two years after the business ceases to operate in the biotechnology and health <br/>
<a id="pl.378.1"></a><var>378.1</var>sciences industry zone, or within any period of limitations for the assessment of tax under <br/>
<a id="pl.378.2"></a><var>378.2</var>section 
         <statute_ref>289A.38</statute_ref>, whichever period is later.<br/>
<a id="pl.378.3"></a><var>378.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>