1E Relating to taxation

ARTICLE 1 - AIDS AND CREDITS

Appropriating money to the commissioner of revenue for police and fire pension aid; modifying the method of calculating local government aid (LGA); modifying the calculation of the pre-1940 housing percentage for East Grand Forks and city revenue need; defining percent of housing built between 1940 and 1970, jobs per capita and peak population decline; providing a sparsity adjustment formula for certain cities; modifying eligibility for certain town aid payments; modifying the city formula aid and city aid distribution requirements; providing certain certified aid adjustments; setting the city aid and town aid appropriation and increasing the county program appropriation; modifies payments in lieu of taxes (PILT) for natural resource land; repealing certain provisions relating to LGA aid formula and obsolete aid adjustments

ARTICLE 2 - PROPERTY TAX

Modifying authority of the board of water and soil resources (BWSR) and certain local water management entity evaluation and report requirements, local government levy authority for water planning and management and conservation and watershed districts, county conservation fee money disposition, erosion and water management cost sharing, and soil loss ordinances; clarifying manufactured homes as motor vehicle dealer inventory under certain conditions; modifying accredited assessor requirements; expanding personal property tax exemptions for pollution control; allowing an exemption for certain property owned by an Indian tribe; providing an exemption for certain personal property of electric generation facilities; requiring a statement of exemption for claimed pollution control property; clarifying conservation property tax valuation; modifying agricultural homestead criteria and land and buildings classification and modifying trust property homestead determination; providing a maximum for class 4d property tax; increasing the disparity reduction credit; setting the state general levy amount on commercial industrial property and eliminating the exemption for electric generation attached machinery from the state general levy; modifying provisions for payment of delinquent taxes; modifying definition of income for the property tax refund, decreasing the threshold percentage for the property tax refund for renters; increasing the maximum refund for renters; modifying certain provisions under the sustainable forest incentive act (SFIA) relating to qualification, eligibility requirements, length of covenant, and calculation of incentive payment; extending the deadline for special service districts and housing improvement districts; modifying the special assessments procedure for state property; appropriating money to the commissioner of revenue for special assessments grants and Moose Lake reimbursement for payments for connection of state facilities to a sewer line; adding funds for the Bloomington areawide portion of the levy for fiscal disparities for property taxes in 2014-2023; modifying the levy authority of the Cook-Orr hospital district; authorizing Carlton county to levy a tax for certain cemetery purposes; extending the levy authority for the Northwest Minnesota multicounty housing and redevelopment authority; allowing an extension of the agricultural homestead classification for certain farmers in Marshall county; reimbursing taxing jurisdictions in Hennepin county for property tax abatements granted for 2011 tornado damages notwithstanding time restrictions and appropriating money; providing a property tax exemption for the St. Paul ball park and the Target Center; allowing Minneapolis to contract for Target Center construction projects under the construction manager at risk; providing a moratorium on changes in assessment practice; requiring the commissioner of revenue to study the impact of alternative interpretations and application for taxation of real and personal property used in business and production activities; allowing reenrollment in the sustainable forest incentive program; requiring counties and certain cities to submit property tax savings reports; establishing a metropolitan council disparities working group; repealing an apportionment and levy of state general tax provision

ARTICLE 3 - EDUCATION AND LEVIES

Modifying the definition of general education revenue for charter schools; providing eligibility for achievement and integration revenue; expanding the general education revenue formula; modifying district equity index; creating education advancement revenue; expanding the general education revenue definition to include education advancement revenue; providing a formula for education advance aid; modifying the general education levy calculation for certain districts; modifying the general education aid definition; modifying referendum revenue formulas for 2015; specifying certain duties of the commissioner of education relating to computing the reduction to a school district referendum allowance; prohibiting an increase to operating referendum in fiscal year 2015; adjusting the current year aid payment percentage; appropriating money to the commissioner for general education aid

ARTICLE 4 - SPECIAL TAXES

Providing for collection of 911 fees from prepaid wireless telecommunications services and prepaid wireless E911 series; authorizing the commissioner of revenues to participate in audits performed by the multistate tax commission; authorizing Hennepin and Ramsey counties to impose an additional mortgage registry and deed tax, extending the authority to 2023; imposing a tax on gross receipts of wholesale sales on sports memorabilia to purchasers in the state; modifying aviation excise taxes; imposing a gross receipts tax on paper pull-tabs; exempting certain bingo halls from combined net receipts tax; modifying certain tobacco provisions, defining terms, providing annual tax rate adjustment, increasing the tobacco products tax rate, imposing additional tobacco products taxes; exempting 501(c)(3) organizations from registering with the gambling control board for certain raffle prizes; modifying the aircraft registration tax rate; defining certain prepaid wireless telecommunications terms, providing for fee imposition, collection, remittance, administration, and reporting; imposing a tobacco floor stocks tax; requiring the recomputation of cigarette tax refunds and the refunding of sales and excise taxes and fees paid by Indians and Indian tribes due to health impact fees imposed from 2005-2009; requiring an aviation tax report; appropriating money to the commissioner of public safety for allied radio matrix for emergency response (ARMER) program grants to certain counties; requiring a tobacco tax collection report; repealing participation in the multistate tax compact and repealing the health care access fund and health impact fee

ARTICLE 5 - INDIVIDUAL INCOME AND CORPORATE FRANCHISE TAXES

Providing tax incentives for certain expansions of greater Minnesota businesses, defining terms, specifying qualification requirements for the small business investment credit, increasing the credit allocation, requiring promotion of the investment credit in greater Minnesota, providing for revocation of credits and applying certain repayment provisions, requiring report, sunset provision; establishing the greater Minnesota internship program, eliminating the deduction for foreign operation income (FOC) income; providing for a subtraction of income taxes for certain railroad track maintenance expenditures; reducing the corporate tax rate; increasing the income thresholds for tax brackets to reflect inflation adjustment for 2013, increasing the rate on the third tier income tax bracket, and conforming provisions; establishing a refundable business tax credit for employers participating in the greater Minnesota internship program; increasing the tax credit for current and past military service; modifying eligibility for an income tax credit for past military service; increasing the research and development credit for S corporations; modifying the historic structure rehabilitation income and corporate franchise tax credit and appropriating money, sunset provision; authorizing a tax credit to greater Minnesota qualified business meeting business expansion requirements; adding a clothing sales tax credit to the individual income tax and specifying limitations; reducing the corporate alternative minimum tax (AMT) rate and conforming provisions; removing the subtraction for foreign royalty income and conforming provisions; modifying the threshold and tax amounts for the corporate minimum fee and providing for inflation adjustments; excluding real estate investment trust (REIT) dividends from the dividend deduction provision; expanding the definition of qualified brewer producing fermented malt beverages to qualify for the small brewer tax credit; clarifying the effective date for the historic structure rehabilitation credit; providing a clothing sales tax credit adjustment for tax year 2013

ARTICLE 6 - ESTATE TAXES

Modifying and clarifying estate tax exclusions for qualified small business property and qualified farm property

ARTICLE 7 - SALES AND USE TAXES; LOCAL SALES TAX

Requiring foreign vendors selling good and services to the state to register with the commissioner of revenue; expanding and clarifying the definition of sale and purchase, including additional products and services subject to the general sales and use tax; reducing the general sales tax rate and the constitutional rate for legacy funds; increasing the sales tax on rental vehicles; maintaining the state lottery gross receipts sales tax amount; expanding the definition of a retailer maintaining a place a business in this state by adding rebuttable presumptions for purposes of establishing sales tax nexus and defining retailer and solicitor, severability clause; imposing a nexus tax for certain internet sales and allowing multiple points of use certificates; modifying sales tax exemptions for drugs and medical devices, exempting purchases in items for Medicare and Medicaid; including tangible personal property in materials consumed in industrial production, modifying the capital equipment exemption, clarifying publication materials exemptions, modifying qualified data centers purchases, providing a sales tax exemption for greater Minnesota business expansions purchases and use of tangible personal property; expanding the sales tax exemption for sales and purchases to local government units; establishing sales tax exemptions for sales to religious orders, veterans groups and sales to and for nonprofit organizations; extending the sales tax exemption for hospitals and outpatient surgical centers to critical access dental care providers; providing a sales tax exemption for certain nursing homes and board care homes, biopharmaceutical manufacturing facilities, research and development facilities, industrial measurement manufacturing and controls facilities, retail, hotel, amusement, and office construction projects; authorizing refunds for qualifying purchases under newly authorized sales tax exemptions; modifying motor vehicles sales tax revenue requirements; clarifying the tax based for locally collected taxes; modifying allowed expenditures regarding imposition of local sales taxes; modifying the St. Paul local taxes tax, the St. Cloud area cities local sales tax, and the Clearwater local sales tax; requiring Duluth to reduce the general local sales tax rate; revisors instruction; repealing the direct satellite service definition, affiliated entities jurisdiction to require collection and remittance of tax by retailer, super bowl admission, court reporter document copies, telecommunications, cable and direct satellite machinery and equipment business exemptions

ARTICLE 8 - LOCAL DEVELOPMENT

Modifying certain tax increment financing (TIF) provisions, expanding the definition of authority, defining soil deficiency district, authorizing the designation of a mining reclamation project area and specifying municipality approval requirements, modifying limitations, setting the duration limit for a soil deficiency district, extending authority for economic development districts, specifying conditions and eliminating qualified border retail facilities, extending the temporary tax increment financing authority to stimulate construction and specifying conditions, providing restrictions for soil deficiency district tax increments use, extending the four-year rule for certain TIF districts, extending the five-year rule to ten years for districts certified after June 30, 2003 and conforming use of revenues for decertification; clarifying original tax rate to exclude the school rate attributable to the general education levy; authorizing Hopkins to extend the duration of a certain redevelopment TIF district; providing for special rules for certain TIF district parcels deemed occupied in Oakdale; authorizing Minneapolis to establish a value capture district for construction of the streetcar line; authorizing the Dakota county community development agency to establish a redevelopment TIF district; clarifying the status of a TIF district in St. Cloud; extending the duration of a TIF district in Ely and in Glencoe; providing expanded tax increment financing powers relating to certain existing districts in Bloomington; authorizing the use of TIF for developments consisting
of building and ancillary facilities in Apple Valley; authorizing Maplewood to create redevelopment TIF districts subject to special rules

ARTICLE 9 - DESTINATION MEDICAL CENTER

Providing local taxing authority to the city of Rochester and Olmsted counties; establishing a destination medical center authority and board to develop and finance public infrastructure for the destination medical center project; defining terms, specifying board membership requirements; specifying organization, structure, characteristics and jurisdiction, authority, jurisdiction, depository regulations and liability; specifying regulations for tax levies, city or county appropriations, and other fiscal matters; providing a sales tax exemption for construction materials and public infrastructure in the destination medical center authority development plan; authorizing Olmsted county to impose a transportation tax for financing transportation infrastructure and to impose a wheelage tax for transportation projects; requiring the authority to prepare and adopt a development plan, specifying requirements for city review, plan modifications, consulting authority, auditing, reporting, and contract construction requirements; specifying certain powers and duties of the authority relating to projects and costs, revenue pooling, property acquisition and exemption from taxes, applicable city requirements, sale of property, contracts and purchasing, and borrowing in anticipation of bonds; allowing the issuance of revenue bonds and specifying form and sale requirements; authorizing the city of Rochester to impose a tax on receipts for admission to entertainment and recreation facilities; authorizing certain general sales tax authority and specifying certain special abatement and special tax increment financing (TIF) rules; authorizing state infrastructure aid, specifying certification of Mayo expenditures and local contribution requirements, general state infrastructure aid and state transit aid conditions, defining certain terms applicable to the state aid; allowing Rochester to impose an additional sales tax percentage, specifying use of revenues, and specifying certain termination requirements; authorizing the imposition of an additional lodging tax; making conforming changes

ARTICLE 10 - MINERALS TAX

Correcting a taconite production tax error; redirecting a portion of the occupation tax deposited in the general fund for an annual appropriation to the mining environmental and regulatory account; requiring companies to match any funds received by the taconite economic development fund; . increasing the taconite production tax rate; increasing distribution of taconite production tax to school districts; reducing the distribution of the taconite production tax used to fund the taconite homestead credit; establishing a special fund for receiving a portion of the taconite production tax and allocating certain amounts to local projects; authorizing the commissioner of the Iron Range resources and rehabilitation to issue revenue bonds for making grants to school districts located in the taconite relief area or taconite assistance area, to be used to pay for building projects or to reduce debt service on completed building projects; requiring the commissioner of revenue, in coordination with the commissioner of the Iron Range resources and rehabilitation board, to study the Iron Range fiscal disparities program

ARTICLE 11 - PUBLIC FINANCE

Authorizing investments in certain school district securities; expanding certain local public entity guaranteed investment contract agreement options; expanding the county capital improvement definition for projects eligible for financing with county capital improvement bonds and modifying the bond issuance election requirement application reverse referendum authority: allowing the Dakota county community development agency to have all powers of a city in connection with housing improvement areas in Dakota county; eliminating certain restrictions on metropolitan airports commission (MAC) investment; removing a requirement that any unused carryover of bond allocations be deducted from that entitlement allocation for the next year; removing the one-year carryforward limit on allocations for student loan bonds; removing the one-year carryforward limit on mortgage bonds awarded to the Minnesota housing finance agency (HFA); allowing expenditures incurred to be financed with bonds even though they were incurred before approval of the plan, if such expenditures are included in the capital improvement plan; modifying the reverse referendum authority for city capital improvement plan bonds: modifying the reverse referendum authority for street construction bonds and allowing expenditures that were incurred by a municipality before approval of a street construction plan, if such expenditures are included in the reconstruction plan; extending the city of St. Paul?s capital improvement bonding program to 2024; appropriating money from the general fund in fiscal year 2015 for completion of repairs and renovation of the Capitol building; authorizing the commissioner of administration to enter into a lease-purchase agreement for a term of up to 25 years for predesign, design and construction of offices and hearing rooms within the Capitol area for legislative and other functions; clarifying the carryforward bonding authority for 2011; allowing independent school district # 435, Wauben-Omega-White Earth, to expand classroom space at its Omega elementary site using a certain grant awarded to the district by the department of human services

ARTICLE 12 - MARKET VALUE DEFINITIONS

Changing the definition of market value to estimated market value for political subdivisions for tax and debt determination; requiring modification of the adjusted net tax capacity; defining estimated market value and taxable market value; modifying the definition of market value; modifying manufactured home park cooperative homestead treatment; making technical and clarifying changes; repealing limited market value, the definition of valuation under Iron Range fiscal disparities and metropolitan area fiscal disparities, and the definition of equalized market values in local government aid

ARTICLE 13 - DEPARTMENT POLICY AND TECHNICAL: INCOME AND FRANCHISE TAXES; ESTATE TAXES

Making certain department policy, technical, and clarifying changes to certain estate tax and income and franchise tax provisions; specifying certain recapture tax return, informational return, and return and payment due date requirements; modifying reporting requirements of regulated investment companies paying municipal bond interest; clarifying the estimated tax payments for C corporations and exempt entities provision; correcting certain obsolete references; clarifying the unity of ownership business principle; modifying requirements for the withholding of payments to out-of-state contractors

ARTICLE 14 - DEPARTMENT POLICY AND TECHNICAL: SALES AND USE TAXES; SPECIAL TAXES

Making certain department policy, technical, and clarifying changes to certain sales and use tax and special tax provisions relating to deed tax real property partitions, the obsolete accelerated monthly sales tax payments remittance schedule for vendors, brewer credits calendar year reference, and the retaliatory insurance tax

ARTICLE 15 - DEPARTMENT POLICY AND TECHNICAL: MINERALS TAXES; PROPERTY TAX

Making certain department policy, technical, and clarifying changes to certain minerals tax and property tax provisions; modifying certain provisions relating to homestead application mailings, class 4bb residential classification, air flight property tax collection, assessor appraisal duties, air flight property tax authority, exemption property tax usage, net proceeds tax property tax exemption, definition of person for property tax; market value definitions, rural preserve property tax program ownership changes, agricultural homesteads for intensive livestock and poultry confinement, homestead applications update, administrative appeals for railroads and utilities, rural area definition, notice of delinquent property tax, senior citizens property tax deferral program authority, nonferrous occupation tax definition of hydrometallurgical processes, and net proceeds tax distribution conformance; repealing an obsolete provision relating to qualifying residential property lead paint hazards

ARTICLE 16 - DEPARTMENT POLICY AND TECHNICAL: MISCELLANEOUS

Making certain department policy, technical, and clarifying changes to certain miscellaneous tax provisions; modifying certain provisions relating to lost or destroyed warrant duplicate indemnity and uniform interest on penalties accrues
(je)