1.1 	A bill for an act
1.2 	relating to financing of state and local government; making changes to individual 
1.3 	income, property, sales and use, excise, estate, mineral, tobacco, alcohol, special, 
1.4 	local, and other taxes and tax-related provisions; providing for and increasing 
1.5 	credits; modifying local government aids; eliminating certain minor property 
1.6 	tax classifications; modifying exclusions, exemptions, and levy deadlines; 
1.7 	imposing a tax on solar energy production; modifying sales, use, and excise tax 
1.8 	exemptions; changing sales, use, and excise tax remittances; modifying certain 
1.9 	local sales and use taxes; allowing for temporary sales and use tax amnesty; 
1.10 	modifying income tax credits and subtractions; clarifying estate tax provisions; 
1.11 	providing for certain local development projects; changing license revocation 
1.12 	procedures; modifying installment payments; modifying certain county levy 
1.13 	authority; allocating additional tax reductions for border cities; removing 
1.14 	obsolete, redundant, and unnecessary laws and administrative rules administered 
1.15 	by the Department of Revenue; making various policy and technical changes; 
1.16 	requiring a report; appropriating money;amending Minnesota Statutes 2012, 
1.17 	sections 16D.02, subdivisions 3, 6; 16D.04, subdivisions 3, 4; 16D.07; 16D.11, 
1.18 	subdivisions 1, 3, 7; 84A.20, subdivision 2; 84A.31, subdivision 2; 115B.49, 
1.19 	subdivision 4; 116J.8737, by adding a subdivision; 163.06, subdivision 1; 
1.20 	270.11, subdivision 1; 270.12, subdivisions 2, 4; 270.87; 270A.03, subdivision 2; 
1.21 	270B.14, subdivision 3; 270C.085; 270C.34, subdivision 2; 270C.52, subdivision 
1.22 	2; 270C.56, subdivision 3; 270C.72, subdivisions 1, 3; 270C.725, subdivision 
1.23 	1, by adding a subdivision; 272.01, subdivisions 1, 3; 272.02, subdivisions 10, 
1.24 	24; 272.0211, subdivisions 1, 2; 272.025, subdivision 1; 272.027, subdivision 
1.25 	1; 272.029, subdivisions 4a, 6; 272.03, subdivision 1; 273.01; 273.061, 
1.26 	subdivision 6; 273.10; 273.11, subdivision 13; 273.112, subdivision 6a; 273.13, 
1.27 	subdivisions 22, 34; 273.1384, subdivision 2; 273.18; 273.33, subdivision 2; 
1.28 	273.37, subdivision 2; 273.3711; 274.01, subdivisions 1, 2; 274.014, subdivision 
1.29 	3; 275.025, subdivision 2; 275.065, subdivision 1; 275.08, subdivisions 1a, 1d; 
1.30 	275.74, subdivision 2; 275.75; 279.03; 279.16; 279.23; 279.25; 280.001; 280.03; 
1.31 	280.07; 280.11; 281.03; 281.327; 282.01, subdivision 6; 282.04, subdivision 
1.32 	4; 282.261, subdivisions 2, 4, 5; 282.322; 287.30; 289A.02, subdivision 7, as 
1.33 	amended; 289A.18, subdivision 2; 289A.25, subdivision 1; 289A.60, subdivision 
1.34 	15; 290.01, subdivisions 5, 19f, 29; 290.015, subdivision 1; 290.068, subdivision 
1.35 	1; 290.07, subdivisions 1, 2; 290.0922, subdivision 3; 290.095, subdivision 3; 
1.36 	290.9728, subdivision 2; 296A.01, subdivision 16; 297A.67, subdivision 13a, by 
1.37 	adding a subdivision; 297A.68, by adding a subdivision; 297A.70, subdivision 
1.38 	10; 297A.71, by adding a subdivision; 297A.94; 297B.03; 297B.09; 297F.03, 
1.39 	subdivision 2; 297F.09, subdivision 10; 297G.03, by adding a subdivision; 
2.1 	297G.09, subdivision 9; 297I.05, subdivision 14; 298.75, subdivisions 1, 2; 
2.2 	383D.41, by adding a subdivision; 383E.21, subdivisions 1, 2; 412.131; 469.171, 
2.3 	subdivision 6; 469.176, subdivisions 1b, 3; 469.1763, subdivision 3; 469.177, 
2.4 	subdivision 3; 473.665, subdivision 5; 477A.0124, subdivision 5; 477A.014, 
2.5 	subdivision 1; 477A.03, by adding a subdivision; 611.27, subdivisions 13, 15; 
2.6 	Minnesota Statutes 2013 Supplement, sections 116J.8737, subdivision 2, as 
2.7 	amended; 116J.8738, subdivisions 2, 3, 4; 270B.01, subdivision 8; 270B.03, 
2.8 	subdivision 1; 273.032; 273.13, subdivisions 23, 25; 273.1325, subdivisions 1, 
2.9 	2; 273.1398, subdivisions 3, 4; 275.70, subdivision 5; 279.37, subdivision 2; 
2.10 	281.17; 289A.20, subdivision 4; 290.01, subdivisions 19, as amended, 19b, as 
2.11 	amended, 19d, 31, as amended; 290.091, subdivision 2, as amended; 290.0921, 
2.12 	subdivision 3; 290.191, subdivision 5; 290A.03, subdivision 15, as amended; 
2.13 	290C.03; 291.005, subdivision 1, as amended; 297A.61, subdivision 3, as 
2.14 	amended; 297A.68, subdivisions 42, 44; 297A.70, subdivisions 2, 13, 14; 
2.15 	297A.75, subdivisions 1, 2, 3; 297B.01, subdivision 16; 360.531, subdivision 2; 
2.16 	403.162, subdivision 5; 423A.02, subdivision 3; 423A.022, subdivisions 2, 3; 
2.17 	465.04; 469.169, by adding a subdivision; 469.1763, subdivision 2; 477A.013, 
2.18 	subdivision 8; 477A.03, subdivision 2a; 477A.12, subdivision 1; 477A.14, 
2.19 	subdivision 1; Laws 1980, chapter 511, sections 1, subdivision 2, as amended; 
2.20 	2, as amended; Laws 2005, First Special Session chapter 3, article 5, section 
2.21 	38, subdivision 4; Laws 2006, chapter 259, article 3, sections 10, subdivisions 
2.22 	3, 4, 5; 11, subdivisions 3, 4, 5; Laws 2008, chapter 366, article 10, section 
2.23 	15; Laws 2013, chapter 143, article 8, sections 3; 37; article 9, section 23; 
2.24 	article 11, section 10; Laws 2014, chapter 150, article 3, section 4; proposing 
2.25 	coding for new law in Minnesota Statutes, chapters 69; 168A; 272; 383A; 
2.26 	477A; repealing Minnesota Statutes 2012, sections 16D.02, subdivisions 5, 8; 
2.27 	16D.11, subdivision 2; 270C.131; 270C.53; 270C.991, subdivision 4; 272.02, 
2.28 	subdivisions 1, 1a, 43, 48, 51, 53, 67, 72, 82; 272.027, subdivision 2; 272.031; 
2.29 	273.015, subdivision 1; 273.03, subdivision 3; 273.075; 273.1115; 273.13, 
2.30 	subdivision 21a; 273.1383; 273.1386; 273.1398, subdivision 4b; 273.80; 275.77; 
2.31 	279.32; 281.173, subdivision 8; 281.174, subdivision 8; 281.328; 282.10; 282.23; 
2.32 	287.20, subdivision 4; 287.27, subdivision 2; 289A.56, subdivision 7; 290.01, 
2.33 	subdivisions 4b, 19e, 20e; 290.06, subdivisions 30, 31; 290.0674, subdivision 3; 
2.34 	290.191, subdivision 4; 290.33; 290C.02, subdivisions 5, 9; 290C.06; 295.52, 
2.35 	subdivision 7; 297A.666; 297A.68, subdivision 38; 297A.71, subdivisions 4, 
2.36 	5, 7, 9, 10, 17, 18, 20, 32, 41; 297F.08, subdivision 11; 297H.10, subdivision 
2.37 	2; 469.174, subdivision 10c; 469.175, subdivision 2b; 469.176, subdivision 
2.38 	1i; 469.1764; 469.177, subdivision 10; 469.330; 469.331; 469.332; 469.333; 
2.39 	469.334; 469.335; 469.336; 469.337; 469.338; 469.339; 469.340, subdivisions 
2.40 	1, 2, 3, 5; 469.341; 477A.0124, subdivisions 1, 6; 505.173; Minnesota Statutes 
2.41 	2013 Supplement, sections 273.1103; 469.340, subdivision 4; Laws 1993, 
2.42 	chapter 375, article 9, section 47; Minnesota Rules, parts 8002.0200, subpart 8; 
2.43 	8007.0200; 8100.0800; 8130.7500, subpart 7; 8130.8900, subpart 3; 8130.9500, 
2.44 	subparts 1, 1a, 2, 3, 4, 5.
2.45 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.46 	ARTICLE 1
2.47 	PROPERTY TAX AIDS, CREDITS, AND REFUNDS

2.48 	Section 1. [69.022] VOLUNTEER RETENTION STIPEND AID PILOT.
2.49 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms 
2.50 	have the meanings given them.
3.1 	(b) "Emergency medical services provider" means a licensee as defined under 
3.2 	section 144E.001, subdivision 8.
3.3 	(c) "Independent nonprofit firefighting corporation" has the same meaning as used in 
3.4 	chapter 424A.
3.5 	(d) "Municipality" has the meaning given in section 69.011, but only if the 
3.6 	municipality uses one or more qualified volunteers to provide service.
3.7 	(e) "Qualified entity" means an emergency medical services provider, independent 
3.8 	nonprofit firefighting corporation, or municipality.
3.9 	(f) "Qualified volunteer" means one of the following types of volunteers who has 
3.10 	provided service for the entire prior calendar year to a qualified entity:
3.11 	(1) a volunteer firefighter as defined in section 424A.001, subdivision 10;
3.12 	(2) a volunteer ambulance attendant as defined in section 144E.001, subdivision 15; or
3.13 	(3) an emergency medical responder as defined in section 144E.001, subdivision 6, 
3.14 	who provides emergency medical services as a volunteer.
3.15 	(g) "Pilot area" means the counties of Blue Earth, Faribault, Freeborn, Martin, 
3.16 	Steele, Waseca, and Watonwan.
3.17 		Subd. 2.Aid payment and calculation. The commissioner of revenue shall pay aid 
3.18 	to qualified entities located in the pilot area to provide funds for the qualified entities to 
3.19 	pay annual volunteer retention stipends to qualified volunteers who provide services to 
3.20 	the qualified entities. A qualified entity is located in the pilot area if it is a municipality 
3.21 	located in whole or in part in the pilot area, or if it is an emergency medical services 
3.22 	provider or independent nonprofit firefighting corporation with its main office located in 
3.23 	the pilot area. The amount of the aid equals $500 multiplied by the number of qualified 
3.24 	volunteers. For purposes of calculating this aid, each individual providing volunteer 
3.25 	service, regardless of the different types of service provided, is one qualified volunteer. 
3.26 	The commissioner shall pay the aid to qualified entities by July 31 of the calendar year 
3.27 	following the year in which the qualified volunteer provided service.
3.28 		Subd. 3.Application. Each year each qualified entity in the pilot area may apply to 
3.29 	the commissioner for aid under this section. The application must be made at the time and 
3.30 	in the form prescribed by the commissioner and must provide sufficient information to 
3.31 	permit the commissioner to determine the applicant's entitlement to aid under this section.
3.32 		Subd. 4.Payment of stipends. A qualified entity receiving state aid under this 
3.33 	section must pay the aid as retention stipends to qualified volunteers no later than 
3.34 	September 15 of the year in which the aid was received.
3.35 		Subd. 5.Report. No later than January 15, 2018, the commissioner of revenue must 
3.36 	report to the chairs and ranking minority members of the legislative committees having 
4.1 	jurisdiction over public safety and taxes in the senate and the house of representatives, 
4.2 	in compliance with sections 3.195 and 3.197, on aid paid under this section. The report 
4.3 	must include:
4.4 	(1) for each county in the pilot area, a listing of the qualified entities that received 
4.5 	aid in each of the three years of the pilot;
4.6 	(2) the amount of aid paid to each qualified entity that received aid in each of the 
4.7 	three years of the pilot; and
4.8 	(3) for each qualified entity that received aid, the number of qualified volunteers 
4.9 	who were paid stipends in each of the three years of the pilot.
4.10 	The report must also provide information on the number of qualified volunteers 
4.11 	providing service to qualified entities in each of the counties adjacent to the pilot area 
4.12 	in each of the three years of the pilot, and must summarize changes in the number of 
4.13 	qualified volunteers during the three years of the pilot both within the pilot area and in 
4.14 	the adjacent counties. For purposes of this subdivision "counties adjacent to the pilot 
4.15 	area" means the counties of Brown, Cottonwood, Dodge, Jackson, Le Sueur, Mower, 
4.16 	Nicollet, and Rice. Qualified entities in counties adjacent to the pilot area must provide 
4.17 	information to the commissioner necessary to the report in this subdivision in the form 
4.18 	and manner required by the commissioner.
4.19 		Subd. 6.Appropriation.  An amount sufficient to pay the state aid under this 
4.20 	section in fiscal years 2016, 2017, and 2018 is appropriated from the general fund to the 
4.21 	commissioner of revenue. This appropriation does not become part of the agency's base 
4.22 	budget and expires after fiscal year 2018.

4.23 	EFFECTIVE DATE. This section is effective the day following final enactment 
4.24 	and applies for volunteer service provided beginning in calendar years 2014, 2015, and 
4.25 	2016, and for aid payable in calendar years 2015, 2016, and 2017.

4.26 	Sec. 2. Minnesota Statutes 2012, section 273.1384, subdivision 2, is amended to read:
4.27 		Subd. 2.Agricultural homestead market value credit. Property classified as 
4.28 	agricultural homestead under section 273.13, subdivision 23, paragraph (a), is eligible for 
4.29 	an agricultural credit. The credit is computed using the property's agricultural credit market 
4.30 	value, defined for this purpose as the property's market value excluding the market value of 
4.31 	the house, garage, and immediately surrounding one acre of land. The credit is equal to 0.3 
4.32 	percent of the first $115,000 of the property's agricultural credit market value minus .05 plus 
4.33 	0.1 percent of the property's agricultural credit market value in excess of $115,000, subject 
4.34 	to a maximum reduction credit of $115 $490. In the case of property that is classified 
4.35 	as part homestead and part nonhomestead solely because not all the owners occupy or 
5.1 	farm the property, not all the owners have qualifying relatives occupying or farming the 
5.2 	property, or solely because not all the spouses of owners occupy the property, the credit 
5.3 	must be initially computed as if that nonhomestead agricultural land was also classified as 
5.4 	agricultural homestead and then prorated to the owner-occupant's percentage of ownership.

5.5 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2015.

5.6 	Sec. 3. Minnesota Statutes 2013 Supplement, section 273.1398, subdivision 4, is 
5.7 	amended to read:
5.8 		Subd. 4.Disparity reduction credit. (a) Beginning with taxes payable in 1989,
5.9 	 Class 4a and class 3a property qualifies for a disparity reduction credit if: (1) the property 
5.10 	is located in a border city that has an enterprise zone, as defined in section 469.166; (2) 
5.11 	the property is located in a city with a population greater than 2,500 and less than 35,000 
5.12 	according to the 1980 decennial census; (3) the city is adjacent to a city in another state or 
5.13 	immediately adjacent to a city adjacent to a city in another state; and (4) the adjacent city 
5.14 	in the other state has a population of greater than 5,000 and less than 75,000 according to 
5.15 	the 1980 decennial census.
5.16 	(b) The credit is an amount sufficient to reduce (i) the taxes levied on class 4a 
5.17 	property to 1.9 1.7 percent of the property's taxable market value and (ii) the tax on class 
5.18 	3a property to 1.9 1.7 percent of taxable market value.
5.19 	(c) The county auditor shall annually certify the costs of the credits to the 
5.20 	Department of Revenue. The department shall reimburse local governments for the 
5.21 	property taxes forgone as the result of the credits in proportion to their total levies.

5.22 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2015.

5.23 	Sec. 4. Minnesota Statutes 2013 Supplement, section 423A.022, subdivision 2, is 
5.24 	amended to read:
5.25 		Subd. 2.Allocation. (a) Of the total amount appropriated as supplemental state aid:
5.26 	(1) 58.06558.064 percent must be paid to the executive director of the Public 
5.27 	Employees Retirement Association for deposit in the public employees police and fire 
5.28 	retirement fund established by section 353.65, subdivision 1;
5.29 	(2) 35.484 percent must be paid to municipalities other than municipalities solely 
5.30 	employing firefighters with retirement coverage provided by the public employees police 
5.31 	and fire retirement plan which qualified to receive fire state aid in that calendar year, 
5.32 	allocated in proportion to the most recent amount of fire state aid paid under section 
5.33 	69.021, subdivision 7, for the municipality bears to the most recent total fire state aid 
6.1 	for all municipalities other than the municipalities solely employing firefighters with 
6.2 	retirement coverage provided by the public employees police and fire retirement plan 
6.3 	paid under section 69.021, subdivision 7, with the allocated amount for fire departments 
6.4 	participating in the voluntary statewide lump-sum volunteer firefighter retirement plan 
6.5 	paid to the executive director of the Public Employees Retirement Association for deposit 
6.6 	in the fund established by section 353G.02, subdivision 3, and credited to the respective 
6.7 	account and with the balance paid to the treasurer of each municipality for transmittal 
6.8 	within 30 days of receipt to the treasurer of the applicable volunteer firefighter relief 
6.9 	association for deposit in its special fund; and
6.10 	(3) 6.452 percent must be paid to the executive director of the Minnesota State 
6.11 	Retirement System for deposit in the state patrol retirement fund.
6.12 	(b) For purposes of this section, the term "municipalities" includes independent 
6.13 	nonprofit firefighting corporations that participate in the voluntary statewide lump-sum 
6.14 	volunteer firefighter retirement plan under chapter 356G or with subsidiary volunteer 
6.15 	firefighter relief associations operating under chapter 424A.

6.16 	Sec. 5. Minnesota Statutes 2013 Supplement, section 477A.013, subdivision 8, is 
6.17 	amended to read:
6.18 		Subd. 8.City formula aid. (a) For aids payable in 2014 only, the formula aid for a 
6.19 	city is equal to the sum of (1) its 2013 certified aid, and (2) the product of (i) the difference 
6.20 	between its unmet need and its 2013 certified aid, and (ii) the aid gap percentage.
6.21 	(b) For aids payable in 2015 and thereafter, the formula aid for a city is equal to the 
6.22 	sum of (1) its formula aid in the previous year and (2) the product of (i) the difference 
6.23 	between its unmet need and its certified formula aid in the previous year under subdivision 
6.24 	9, and (ii) the aid gap percentage.
6.25 	(c) For aids payable in 2015 and thereafter, if a city's certified aid from the previous 
6.26 	year is greater than the sum of its unmet need plus its aid adjustment under subdivision 13, 
6.27 	its formula aid is adjusted to equal its unmet need.
6.28 	(d) No city may have a formula aid amount less than zero. The aid gap percentage 
6.29 	must be the same for all cities subject to paragraph (b).
6.30 	(e) The applicable aid gap percentage must be calculated by the Department of 
6.31 	Revenue so that the total of the aid under subdivision 9 equals the total amount available 
6.32 	for aid under section 477A.03. Data used in calculating aids to cities under sections 
6.33 	477A.011 to 477A.013 shall be the most recently available data as of January 1 in the 
6.34 	year in which the aid is calculated.

7.1 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 
7.2 	2015 and thereafter.

7.3 	Sec. 6. Minnesota Statutes 2013 Supplement, section 477A.03, subdivision 2a, is 
7.4 	amended to read:
7.5 		Subd. 2a.Cities. For aids payable in 2014, the total aid paid under section 
7.6 	477A.013, subdivision 9, is $507,598,012. The total aid paid under section 477A.013, 
7.7 	subdivision 9, is $509,098,012 for aids payable in 2015. For aids payable in 2016 2015
7.8 	 and thereafter, the total aid paid under section 477A.013, subdivision 9, is $511,598,012
7.9 	 the amount certified under that section in the previous year, multiplied by the inflation 
7.10 	adjustment under subdivision 6.

7.11 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 
7.12 	2015 and thereafter.

7.13 	Sec. 7. Minnesota Statutes 2012, section 477A.03, is amended by adding a subdivision 
7.14 	to read:
7.15 		Subd. 6.Inflation adjustment. In 2015 and thereafter, the amount paid under 
7.16 	subdivision 2a shall be multiplied by an amount equal to one plus the sum of (1) the 
7.17 	percentage increase in the implicit price deflator for government expenditures and gross 
7.18 	investment for state and local government purchases as prepared by the United States 
7.19 	Department of Commerce, for the 12-month period ending March 31 of the previous 
7.20 	calendar year, and (2) the percentage increase in total city population for the most recently 
7.21 	available years as of January 15 of the current year. The percentage increase in this 
7.22 	subdivision shall not be greater than five percent.

7.23 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 
7.24 	2015 and thereafter.

7.25 	Sec. 8. [477A.18] PRODUCTION PROPERTY TRANSITION AID.
7.26 		Subdivision 1.Definitions. (a) When used in this section, the following terms have 
7.27 	the meanings indicated in this subdivision.
7.28 	(b) "Local unit" means a home rule charter or statutory city, or a town.
7.29 	(c) "Net tax capacity differential" means the positive difference, if any, by which the 
7.30 	local unit's net tax capacity was reduced from assessment year 2014 to assessment year 
7.31 	2015 due to the change in the definition of real property in section 272.03, subdivision 1, 
7.32 	enacted by article 2, section 1, of this act. For purposes of determining the net tax capacity 
8.1 	differential, any property in a job opportunity building zone under section 469.314 may 
8.2 	not be included when calculating a local unit's net tax capacity.
8.3 		Subd. 2.Aid eligibility; payment. (a) If the net tax capacity differential of the local 
8.4 	unit exceeds five percent of its 2015 net tax capacity, the local unit is eligible for transition 
8.5 	aid computed under paragraphs (b) to (f).
8.6 	(b) For aids payable in 2016, transition aid under this section for an eligible local 
8.7 	unit equals (1) the net tax capacity differential, times (2) the jurisdiction's tax rate for 
8.8 	taxes payable in 2015.
8.9 	(c) For aids payable in 2017, transition aid under this section for an eligible local 
8.10 	unit equals 80 percent of (1) the net tax capacity differential, times (2) the jurisdiction's 
8.11 	tax rate for taxes payable in 2016.
8.12 	(d) For aids payable in 2018, transition aid under this section for an eligible local 
8.13 	unit equals 60 percent of (1) the net tax capacity differential, times (2) the jurisdiction's 
8.14 	tax rate for taxes payable in 2017.
8.15 	(e) For aids payable in 2019, transition aid under this section for an eligible local 
8.16 	unit equals 40 percent of (1) the net tax capacity differential, times (2) the jurisdiction's 
8.17 	tax rate for taxes payable in 2018.
8.18 	(f) For aids payable in 2020, transition aid under this section for an eligible local 
8.19 	unit equals 20 percent of (1) the net tax capacity differential, times (2) the jurisdiction's 
8.20 	tax rate for taxes payable in 2019.
8.21 	(g) No aids shall be payable under this section in 2021 and thereafter.
8.22 	(h) The commissioner of revenue shall compute the amount of transition aid payable 
8.23 	to each local unit under this section. On or before August 1 of each year, the commissioner 
8.24 	shall certify the amount of transition aid computed for aids payable in the following year 
8.25 	for each recipient local unit. The commissioner shall pay transition aid to local units 
8.26 	annually at the times provided in section 477A.015.
8.27 	(i) The commissioner of revenue may require counties to provide any data that the 
8.28 	commissioner deems necessary to administer this section.
8.29 		Subd. 3.Appropriation. An amount sufficient to pay transition aid under this 
8.30 	section is annually appropriated to the commissioner of revenue from the general fund.

8.31 	EFFECTIVE DATE. This section is effective beginning with assessment year 2015.

8.32 	Sec. 9. SUPPLEMENTAL COUNTY PROGRAM AID FOR 2014.
 8.33 	(a) Each county whose certified aid for 2014 under Minnesota Statutes, section 
8.34 	477A.0124, is less than the aid it received under that section in 2013 shall be eligible for 
9.1 	supplemental aid in 2014 equal to the difference between the amount received in 2013 
9.2 	and the amount certified for 2014.
9.3 	(b) The aid under this section shall be paid in the same manner and at the same time 
9.4 	as the regular aid payments under Minnesota Statutes, section 477A.0124.
9.5 	(c) The amount necessary to pay supplemental aid under this section is appropriated 
9.6 	from the general fund to the commissioner of revenue.

9.7 	EFFECTIVE DATE. This section is effective July 1, 2014.

9.8 	Sec. 10. SUPPLEMENTAL CREDIT FOR TAXES PAYABLE IN 2014 ONLY.
 9.9 		Subdivision 1.Eligibility. Each agricultural homestead qualifying for a credit 
9.10 	for taxes payable in 2014 under Minnesota Statutes, section 273.1384, is eligible for a 
9.11 	supplemental credit equal to the lesser of (i) $230, or (ii) the net property taxes payable on 
9.12 	the property, excluding the taxes attributable to the house, garage, and surrounding one acre 
9.13 	of land. A supplemental credit must not be paid to any property that has delinquent property 
9.14 	taxes. By August 15, 2014, the county auditor must notify the commissioner of revenue of 
9.15 	the name and address of the property owner of each homestead that received an agricultural 
9.16 	credit for taxes payable in 2014, along with the net taxes due upon the agricultural 
9.17 	homestead, whether there are any delinquent taxes on the property, and whatever other 
9.18 	information the commissioner deems necessary, in a form prescribed by the commissioner.
9.19 		Subd. 2.Payment of supplemental credit. The commissioner must pay 
9.20 	supplemental credit amounts to each qualifying taxpayer by October 15, 2014.
9.21 		Subd. 3.Property tax statements for taxes payable in 2015. In preparing 
9.22 	proposed property tax notices for taxes payable in 2015 under Minnesota Statutes, section 
9.23 	275.065, and final property tax statements for taxes payable in 2015 under Minnesota 
9.24 	Statutes, section 276.04, the auditor must indicate that the taxpayer may have received a 
9.25 	supplemental credit under this section for taxes payable in 2014.
9.26 		Subd. 4.Appropriation. The amount necessary to make the payments required 
9.27 	under subdivision 2 is appropriated from the general fund to the commissioner of revenue 
9.28 	for fiscal year 2015.

9.29 	EFFECTIVE DATE. This section is effective the day following final enactment.

9.30 	Sec. 11. HOMESTEAD CREDIT REFUND AND RENTER PROPERTY TAX 
9.31 	REFUND INCREASE.
 10.1 		Subdivision 1.Homestead credit refund increase. For claims filed based on taxes 
10.2 	payable in 2014, the commissioner shall increase by three percent the refund otherwise 
10.3 	payable under Minnesota Statutes, section 290A.04, subdivision 2.
10.4 		Subd. 2.Renter property tax refund increase. For claims filed based on rent paid 
10.5 	in 2013, the commissioner shall increase by six percent the refund otherwise payable 
10.6 	under Minnesota Statutes, section 290A.04, subdivision 2a.
10.7 		Subd. 3.Appropriation. The amount necessary to make the payments required 
10.8 	under this section in fiscal years 2015 and 2016 is appropriated from the general fund 
10.9 	to the commissioner of revenue.

10.10 	EFFECTIVE DATE. This section is effective for refund claims based on taxes 
10.11 	payable in 2014 and rent paid in 2013 only.

10.12 	Sec. 12. 2013 CITY AID PENALTY FORGIVENESS; CITY OF BLUFFTON.
 10.13 	Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the city of 
10.14 	Bluffton shall receive the half of its aid payments for calendar years 2011, 2012, and 
10.15 	2013 under Minnesota Statutes, section 477A.013, that were withheld under Minnesota 
10.16 	Statutes, section 477A.017, subdivision 3, provided that the state auditor certifies to the 
10.17 	commissioner of revenue that it received audited financial statements from the city for 
10.18 	calendar years 2010, 2011, and 2012 by December 31, 2013, and for calendar year 2013 
10.19 	by June 30, 2014. The commissioner of revenue shall make a payment of $20,000 with 
10.20 	the first payment of aids under Minnesota Statutes, section 477A.015, in calendar year 
10.21 	2014. The commissioner shall pay the remaining amount, totaling $28,151.50, with the 
10.22 	first payment of aids under Minnesota Statutes, section 477A.015, in calendar year 2015. 
10.23 	$20,000 in fiscal year 2015 and $28,151.50 in fiscal year 2016 are appropriated from the 
10.24 	general fund to the commissioner of revenue to make payments under this section.

10.25 	EFFECTIVE DATE. This section is effective the day following final enactment.

10.26 	Sec. 13. ADDITIONAL SUPPLEMENTAL AID REVISION FOR OMITTED 
10.27 	2013 INDEPENDENT NONPROFIT FIREFIGHTING CORPORATIONS.
 10.28 	(a) Notwithstanding any provision of Minnesota Statutes, chapter 423A, to the 
10.29 	contrary, this section modifies the allocation of the police and fire supplemental retirement 
10.30 	state aid under Minnesota Statutes 2013 Supplement, section 423A.022, for October 
10.31 	1, 2014.
11.1 	(b) Before the allocation of the police and fire supplemental retirement state aid is 
11.2 	made for October 1, 2014, the commissioner of revenue shall:
11.3 	(1) determine those fire departments that qualified for fire state aid under Minnesota 
11.4 	Statutes 2012, section 69.021, subdivision 7, on October 1, 2013, did not receive a 2013 
11.5 	allocation of police and fire supplemental retirement state aid, and were an independent 
11.6 	nonprofit firefighting corporation; and
11.7 	(2) determine the amount of police and fire supplemental retirement state aid 
11.8 	under Minnesota Statutes 2013 Supplement, section 423A.022, that the fire departments 
11.9 	described in clause (1) would have received on October 1, 2013, if the fire departments 
11.10 	had been included in that allocation.
11.11 	(c) The total amount determined in paragraph (b), clause (2), must be deducted from 
11.12 	the amount available for allocation under Minnesota Statutes 2013 Supplement, section 
11.13 	423A.022, subdivision 2, clause (2), and the commissioner of revenue shall pay to the fire 
11.14 	departments determined in paragraph (b), clause (1), their respective portion of the total as 
11.15 	an additional payment on October 1, 2014.
11.16 	(d) The remaining amount after the deduction of the total amount under paragraph 
11.17 	(c) must be allocated as provided in section 1.

11.18 	ARTICLE 2
11.19 	PROPERTY TAXES

11.20 	Section 1. Minnesota Statutes 2012, section 272.02, subdivision 10, is amended to read:
11.21 		Subd. 10.Personal property used for pollution control. Personal property used 
11.22 	primarily for the abatement and control of air, water, or land pollution is exempt to the 
11.23 	extent that it is so used, and real property is exempt if it is used primarily for abatement 
11.24 	and control of air, water, or land pollution as part of an agricultural operation, as a part 
11.25 	of a centralized treatment and recovery facility operating under a permit issued by the 
11.26 	Minnesota Pollution Control Agency pursuant to chapters 115 and 116 and Minnesota 
11.27 	Rules, parts 7001.0500 to 7001.0730, and 7045.0020 to 7045.1260, as a wastewater 
11.28 	treatment facility and for the treatment, recovery, and stabilization of metals, oils, 
11.29 	chemicals, water, sludges, or inorganic materials from hazardous industrial wastes, or as 
11.30 	part of an electric generation system. For purposes of this subdivision, personal property 
11.31 	includes ponderous machinery and equipment used in a business or production activity 
11.32 	that at common law is considered real property.
11.33 	Any taxpayer requesting exemption of all or a portion of any real property or any 
11.34 	equipment or device, or part thereof, operated primarily for the control or abatement of air, 
11.35 	water, or land pollution shall file an application with the commissioner of revenue. If the 
12.1 	property is an electric power generation facility located in a city, then the commissioner 
12.2 	shall notify the county assessor and city finance officer of the jurisdictions that host the 
12.3 	facility that the application has been received. The Minnesota Pollution Control Agency 
12.4 	shall upon request of the commissioner furnish information and advice to the commissioner.
12.5 	The information and advice furnished by the Minnesota Pollution Control Agency 
12.6 	must include statements as to whether the equipment, device, or real property meets 
12.7 	a standard, rule, criteria, guideline, policy, or order of the Minnesota Pollution Control 
12.8 	Agency, and whether the equipment, device, or real property is installed or operated 
12.9 	in accordance with it. On determining that property qualifies for exemption, the 
12.10 	commissioner shall issue an order exempting the property from taxation. If the property is 
12.11 	an electric power generation facility located in a city, then the commissioner shall provide 
12.12 	notification of the order to the county assessor and city finance officer of the jurisdictions 
12.13 	that host the facility. The equipment, device, or real property shall continue to be exempt 
12.14 	from taxation as long as the order issued by the commissioner remains in effect.

12.15 	EFFECTIVE DATE. This section is effective the day following final enactment.

12.16 	Sec. 2. Minnesota Statutes 2012, section 272.02, subdivision 24, is amended to read:
12.17 		Subd. 24.Electric power photovoltaic devices Solar energy-generating systems.
 12.18 	Photovoltaic devices Personal property consisting of solar energy-generating systems, as 
12.19 	defined in section 216C.06, subdivision 16 272.0295, installed after January 1, 1992, and 
12.20 	used to produce or store electric power are is exempt. The value of the real property on 
12.21 	which the solar energy-generating system is located shall be valued in the same manner as 
12.22 	similar real property that has not been improved with a solar energy-generating system. 
12.23 	The real property shall be classified based on the most probable use of the property if it 
12.24 	was not improved with a solar energy-generating system.

12.25 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2015.

12.26 	Sec. 3. Minnesota Statutes 2012, section 272.0211, subdivision 1, is amended to read:
12.27 		Subdivision 1.Efficiency determination and certification. An owner or operator 
12.28 	of a new or existing electric power generation facility, excluding wind energy conversion 
12.29 	systems, may apply to the commissioner of revenue for a market value exclusion on the 
12.30 	property as provided for in this section. This exclusion shall apply only to the market 
12.31 	value of the equipment of the facility, and shall not apply to the structures and the land 
12.32 	upon which the facility is located. The commissioner of revenue shall prescribe the forms 
12.33 	and procedures for this application. Upon receiving the application, the commissioner of 
13.1 	revenue shall: (1) request the commissioner of commerce to make a determination of the 
13.2 	efficiency of the applicant's electric power generation facility; and (2), if the facility is 
13.3 	in a city, notify the county assessor and city finance officer of the jurisdictions that host 
13.4 	the facility that an application for an exclusion is being processed. The commissioner 
13.5 	of commerce shall calculate efficiency as the ratio of useful energy outputs to energy 
13.6 	inputs, expressed as a percentage, based on the performance of the facility's equipment 
13.7 	during normal full load operation. The commissioner must include in this formula the 
13.8 	energy used in any on-site preparation of materials necessary to convert the materials 
13.9 	into the fuel used to generate electricity, such as a process to gasify petroleum coke. 
13.10 	The commissioner shall use the Higher Heating Value (HHV) for all substances in the 
13.11 	commissioner's efficiency calculations, except for wood for fuel in a biomass-eligible 
13.12 	project under section 216B.2424; for these instances, the commissioner shall adjust the 
13.13 	heating value to allow for energy consumed for evaporation of the moisture in the wood. 
13.14 	The applicant shall provide the commissioner of commerce with whatever information the 
13.15 	commissioner deems necessary to make the determination. Within 30 days of the receipt 
13.16 	of the necessary information, the commissioner of commerce shall certify the findings of 
13.17 	the efficiency determination to the commissioner of revenue and to the applicant. The 
13.18 	commissioner of commerce shall determine the efficiency of the facility and certify the 
13.19 	findings of that determination to the commissioner of revenue every two years thereafter 
13.20 	from the date of the original certification.

13.21 	EFFECTIVE DATE. This section is effective beginning with assessment year 2014.

13.22 	Sec. 4. Minnesota Statutes 2012, section 272.0211, subdivision 2, is amended to read:
13.23 		Subd. 2.Sliding scale exclusion. Based upon the efficiency determination provided 
13.24 	by the commissioner of commerce as described in subdivision 1, the commissioner of 
13.25 	revenue shall subtract eight percent of the taxable market value of the qualifying property 
13.26 	for each percentage point that the efficiency of the specific facility, as determined by the 
13.27 	commissioner of commerce, is above 40 percent. The reduction in taxable market value 
13.28 	shall be reflected in the taxable market value of the facility beginning with the assessment 
13.29 	year immediately following the determination. For a facility that is assessed by the county 
13.30 	in which the facility is located, The commissioner of revenue shall certify to the assessor 
13.31 	of that county and, if located in a city, the finance officer of that city the percentage of the 
13.32 	taxable market value of the facility to be excluded.

13.33 	EFFECTIVE DATE. This section is effective beginning with assessment year 2014.

14.1 	Sec. 5. [272.0295] SOLAR ENERGY PRODUCTION TAX.
14.2 		Subdivision 1.Production tax. A tax is imposed on the production of electricity 
14.3 	from a solar energy-generating system used as an electric power source.
14.4 		Subd. 2.Definitions. (a) For the purposes of this section, the term "solar 
14.5 	energy-generating system" means a set of devices whose primary purpose is to produce 
14.6 	electricity by means of any combination of collecting, transferring, or converting 
14.7 	solar-generated energy.
14.8 	(b) The total size of a solar energy-generating system under this subdivision shall 
14.9 	be determined according to this paragraph. Unless the systems are interconnected with 
14.10 	different distribution systems, the nameplate capacity of a solar energy-generating system 
14.11 	shall be combined with the nameplate capacity of any other solar energy-generating 
14.12 	system that is:
14.13 	(1) constructed within the same 12-month period as the solar energy-generating 
14.14 	system; and
14.15 	(2) exhibits characteristics of being a single development, including but not 
14.16 	limited to ownership structure, an umbrella sales arrangement, shared interconnection, 
14.17 	revenue-sharing arrangements, and common debt or equity financing.
14.18 	In the case of a dispute, the commissioner of commerce shall determine the total size of 
14.19 	the system and shall draw all reasonable inferences in favor of combining the systems.
14.20 	(c) In making a determination under paragraph (b), the commissioner of commerce 
14.21 	may determine that two solar energy-generating systems are under common ownership 
14.22 	when the underlying ownership structure contains similar persons or entities, even if the 
14.23 	ownership shares differ between the two systems. Solar energy-generating systems are 
14.24 	not under common ownership solely because the same person or entity provided equity 
14.25 	financing for the systems.
14.26 		Subd. 3.Rate of tax. (a) For a solar energy-generating system with a capacity 
14.27 	exceeding one megawatt alternating current, the tax is $1.20 per megawatt-hour.
14.28 	(b) A solar energy-generating system with a capacity of one megawatt alternating 
14.29 	current or less is exempt from the tax imposed under this section.
14.30 		Subd. 4.Reports. An owner of a solar energy-generating system subject to tax 
14.31 	under this section shall file a report with the commissioner of revenue annually on or 
14.32 	before January 15 detailing the amount of electricity in megawatt-hours that was produced 
14.33 	by the system in the previous calendar year. The commissioner shall prescribe the form 
14.34 	of the report. The report must contain the information required by the commissioner to 
14.35 	determine the tax due to each county under this section for the current year. If an owner 
14.36 	of a solar energy-generating system subject to taxation under this section fails to file the 
15.1 	report by the due date, the commissioner of revenue shall determine the tax based upon 
15.2 	the nameplate capacity of the system multiplied by a capacity factor of 30 percent.
15.3 		Subd. 5.Notification of tax. (a) On or before February 28, the commissioner of 
15.4 	revenue shall notify the owner of each solar energy-generating system of the tax due to 
15.5 	each county for the current year and shall certify to the county auditor of each county in 
15.6 	which the system is located the tax due from each owner for the current year.
15.7 	(b) If the commissioner of revenue determines that the amount of production tax has 
15.8 	been erroneously calculated, the commissioner may correct the error. The commissioner 
15.9 	must notify the owner of the solar energy-generating system of the correction and the 
15.10 	amount of tax due to each county and must certify the correction to the county auditor of 
15.11 	each county in which the system is located on or before April 1 of the current year.
15.12 		Subd. 6.Payment of tax; collection. The amount of production tax determined 
15.13 	under subdivision 5 must be paid to the county treasurer at the time and in the manner 
15.14 	provided for payment of property taxes under section 277.01, subdivision 3, and, if unpaid, 
15.15 	is subject to the same enforcement, collection, and interest and penalties as delinquent 
15.16 	personal property taxes. Except to the extent inconsistent with this section, the provisions 
15.17 	of sections 277.01 to 277.24 and 278.01 to 278.14 apply to the taxes imposed under this 
15.18 	section, and for purposes of those provisions, the taxes imposed under this section are 
15.19 	considered personal property taxes.
15.20 		Subd. 7.Distribution of revenues. Revenues from the taxes imposed under this 
15.21 	section must be part of the settlement between the county treasurer and the county auditor 
15.22 	under section 276.09. The revenue must be distributed by the county auditor or the county 
15.23 	treasurer to local taxing jurisdictions in which the solar energy-generating system is 
15.24 	located as follows: 80 percent to counties; and 20 percent to cities and townships.

15.25 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2015.

15.26 	Sec. 6. Minnesota Statutes 2012, section 272.03, subdivision 1, is amended to read:
15.27 		Subdivision 1.Real property. (a) For the purposes of taxation, "real property" 
15.28 	includes the land itself, rails, ties, and other track materials annexed to the land, and all 
15.29 	buildings, structures, and improvements or other fixtures on it, bridges of bridge companies, 
15.30 	and all rights and privileges belonging or appertaining to the land, and all mines, iron ore 
15.31 	and taconite minerals not otherwise exempt, quarries, fossils, and trees on or under it.
15.32 	(b) A building or structure shall include the building or structure itself, together with 
15.33 	all improvements or fixtures annexed to the building or structure, which are integrated 
15.34 	with and of permanent benefit to the building or structure, regardless of the present use 
16.1 	of the building, and which cannot be removed without substantial damage to itself or to 
16.2 	the building or structure.
16.3 	(c)(i) Real property does not include tools, implements, machinery, and equipment 
16.4 	attached to or installed in real property for use in the business or production activity 
16.5 	conducted thereon, regardless of size, weight or method of attachment, and mine shafts, 
16.6 	tunnels, and other underground openings used to extract ores and minerals taxed under 
16.7 	chapter 298 together with steel, concrete, and other materials used to support such openings.
16.8 	(ii) The exclusion provided in clause (i) shall not apply to machinery and equipment 
16.9 	includable as real estate by paragraphs (a) and (b) even though such machinery and 
16.10 	equipment is used in the business or production activity conducted on the real property if 
16.11 	and to the extent such business or production activity consists of furnishing services or 
16.12 	products to other buildings or structures which are subject to taxation under this chapter.
16.13 	(iii) The exclusion provided in clause (i) does not apply to the exterior shell of a 
16.14 	structure which constitutes walls, ceilings, roofs, or floors if the shell of the structure has 
16.15 	structural, insulation, or temperature control functions or provides protection from the 
16.16 	elements, unless the structure is primarily used in the production of biofuels, wine, beer, 
16.17 	distilled beverages, or dairy products. Such an exterior shell is included in the definition 
16.18 	of real property even if it also has special functions distinct from that of a building, or if 
16.19 	such an exterior shell is primarily used for the storage of ingredients or materials used in 
16.20 	the production of biofuels, wine, beer, distilled beverages, or dairy products, or for the 
16.21 	storage of finished biofuels, wine, beer, distilled beverages, or dairy products.
16.22 	(d) The term real property does not include tools, implements, machinery, 
16.23 	equipment, poles, lines, cables, wires, conduit, and station connections which are part of a 
16.24 	telephone communications system, regardless of attachment to or installation in real 
16.25 	property and regardless of size, weight, or method of attachment or installation.

16.26 	EFFECTIVE DATE. This section is effective beginning with assessment year 2015.

16.27 	Sec. 7. Minnesota Statutes 2012, section 273.13, subdivision 22, is amended to read:
16.28 		Subd. 22.Class 1. (a) Except as provided in subdivision 23 and in paragraphs (b) 
16.29 	and (c), real estate which is residential and used for homestead purposes is class 1a. In the 
16.30 	case of a duplex or triplex in which one of the units is used for homestead purposes, the 
16.31 	entire property is deemed to be used for homestead purposes. The market value of class 1a 
16.32 	property must be determined based upon the value of the house, garage, and land.
16.33 	The first $500,000 of market value of class 1a property has a net class rate of 
16.34 	one percent of its market value; and the market value of class 1a property that exceeds 
16.35 	$500,000 has a class rate of 1.25 percent of its market value.
17.1 	(b) Class 1b property includes homestead real estate or homestead manufactured 
17.2 	homes used for the purposes of a homestead by:
17.3 	(1) any person who is blind as defined in section 256D.35, or the blind person and 
17.4 	the blind person's spouse;
17.5 	(2) any person who is permanently and totally disabled or by the disabled person and 
17.6 	the disabled person's spouse; or
17.7 	(3) the surviving spouse of a permanently and totally disabled veteran homesteading 
17.8 	a property classified under this paragraph for taxes payable in 2008.
17.9 	Property is classified and assessed under clause (2) only if the government agency or 
17.10 	income-providing source certifies, upon the request of the homestead occupant, that the 
17.11 	homestead occupant satisfies the disability requirements of this paragraph, and that the 
17.12 	property is not eligible for the valuation exclusion under subdivision 34.
17.13 	Property is classified and assessed under paragraph (b) only if the commissioner 
17.14 	of revenue or the county assessor certifies that the homestead occupant satisfies the 
17.15 	requirements of this paragraph.
17.16 	Permanently and totally disabled for the purpose of this subdivision means a 
17.17 	condition which is permanent in nature and totally incapacitates the person from working 
17.18 	at an occupation which brings the person an income. The first $50,000 market value of 
17.19 	class 1b property has a net class rate of .45 percent of its market value. The remaining 
17.20 	market value of class 1b property has a class rate using the rates for class 1a or class 2a 
17.21 	property, whichever is appropriate, of similar market value.
17.22 	(c) Class 1c property is commercial use real and personal property that abuts public 
17.23 	water as defined in section 103G.005, subdivision 15, and is devoted to temporary and 
17.24 	seasonal residential occupancy for recreational purposes but not devoted to commercial 
17.25 	purposes for more than 250 days in the year preceding the year of assessment, and that 
17.26 	includes a portion used as a homestead by the owner, which includes a dwelling occupied 
17.27 	as a homestead by a shareholder of a corporation that owns the resort, a partner in a 
17.28 	partnership that owns the resort, or a member of a limited liability company that owns 
17.29 	the resort even if the title to the homestead is held by the corporation, partnership, or 
17.30 	limited liability company. For purposes of this paragraph, property is devoted to a 
17.31 	commercial purpose on a specific day if any portion of the property, excluding the portion 
17.32 	used exclusively as a homestead, is used for residential occupancy and a fee is charged 
17.33 	for residential occupancy. Class 1c property must contain three or more rental units. A 
17.34 	"rental unit" is defined as a cabin, condominium, townhouse, sleeping room, or individual 
17.35 	camping site equipped with water and electrical hookups for recreational vehicles. Class 
17.36 	1c property must provide recreational activities such as the rental of ice fishing houses, 
18.1 	boats and motors, snowmobiles, downhill or cross-country ski equipment; provide marina 
18.2 	services, launch services, or guide services; or sell bait and fishing tackle. Any unit in 
18.3 	which the right to use the property is transferred to an individual or entity by deeded 
18.4 	interest, or the sale of shares or stock, no longer qualifies for class 1c even though it may 
18.5 	remain available for rent. A camping pad offered for rent by a property that otherwise 
18.6 	qualifies for class 1c is also class 1c, regardless of the term of the rental agreement, as 
18.7 	long as the use of the camping pad does not exceed 250 days. If the same owner owns 
18.8 	two separate parcels that are located in the same township, and one of those properties is 
18.9 	classified as a class 1c property and the other would be eligible to be classified as a class 1c 
18.10 	property if it was used as the homestead of the owner, both properties will be assessed as a 
18.11 	single class 1c property; for purposes of this sentence, properties are deemed to be owned 
18.12 	by the same owner if each of them is owned by a limited liability company, and both 
18.13 	limited liability companies have the same membership. The portion of the property used 
18.14 	as a homestead is class 1a property under paragraph (a). The remainder of the property is 
18.15 	classified as follows: the first $600,000 of market value is tier I, the next $1,700,000 of 
18.16 	market value is tier II, and any remaining market value is tier III. The class rates for class 
18.17 	1c are: tier I, 0.50 percent; tier II, 1.0 percent; and tier III, 1.25 percent. Owners of real and 
18.18 	personal property devoted to temporary and seasonal residential occupancy for recreation 
18.19 	purposes in which all or a portion of the property was devoted to commercial purposes for 
18.20 	not more than 250 days in the year preceding the year of assessment desiring classification 
18.21 	as class 1c, must submit a declaration to the assessor designating the cabins or units 
18.22 	occupied for 250 days or less in the year preceding the year of assessment by January 15 of 
18.23 	the assessment year. Those cabins or units and a proportionate share of the land on which 
18.24 	they are located must be designated as class 1c as otherwise provided. The remainder of 
18.25 	the cabins or units and a proportionate share of the land on which they are located must be 
18.26 	designated as class 3a commercial. The owner of property desiring designation as class 
18.27 	1c property must provide guest registers or other records demonstrating that the units for 
18.28 	which class 1c designation is sought were not occupied for more than 250 days in the 
18.29 	year preceding the assessment if so requested. The portion of a property operated as a 
18.30 	(1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5) other 
18.31 	nonresidential facility operated on a commercial basis not directly related to temporary 
18.32 	and seasonal residential occupancy for recreation purposes does not qualify for class 1c.
18.33 	(d) Class 1d property includes structures that meet all of the following criteria:
18.34 	(1) the structure is located on property that is classified as agricultural property under 
18.35 	section 273.13, subdivision 23;
19.1 	(2) the structure is occupied exclusively by seasonal farm workers during the time 
19.2 	when they work on that farm, and the occupants are not charged rent for the privilege of 
19.3 	occupying the property, provided that use of the structure for storage of farm equipment 
19.4 	and produce does not disqualify the property from classification under this paragraph;
19.5 	(3) the structure meets all applicable health and safety requirements for the 
19.6 	appropriate season; and
19.7 	(4) the structure is not salable as residential property because it does not comply 
19.8 	with local ordinances relating to location in relation to streets or roads.
19.9 	The market value of class 1d property has the same class rates as class 1a property 
19.10 	under paragraph (a).

19.11 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 
19.12 	2016 and thereafter.

19.13 	Sec. 8. Minnesota Statutes 2013 Supplement, section 273.13, subdivision 23, is 
19.14 	amended to read:
19.15 		Subd. 23.Class 2. (a) An agricultural homestead consists of class 2a agricultural 
19.16 	land that is homesteaded, along with any class 2b rural vacant land that is contiguous to 
19.17 	the class 2a land under the same ownership. The market value of the house and garage 
19.18 	and immediately surrounding one acre of land has the same class rates as class 1a or 1b 
19.19 	property under subdivision 22. The value of the remaining land including improvements 
19.20 	up to the first tier valuation limit of agricultural homestead property has a net class rate 
19.21 	of 0.5 percent of market value. The remaining property over the first tier has a class rate 
19.22 	of one percent of market value. For purposes of this subdivision, the "first tier valuation 
19.23 	limit of agricultural homestead property" and "first tier" means the limit certified under 
19.24 	section 273.11, subdivision 23.
19.25 	(b) Class 2a agricultural land consists of parcels of property, or portions thereof, that 
19.26 	are agricultural land and buildings. Class 2a property has a net class rate of one percent of 
19.27 	market value, unless it is part of an agricultural homestead under paragraph (a). Class 2a 
19.28 	property must also include any property that would otherwise be classified as 2b, but is 
19.29 	interspersed with class 2a property, including but not limited to sloughs, wooded wind 
19.30 	shelters, acreage abutting ditches, ravines, rock piles, land subject to a setback requirement, 
19.31 	and other similar land that is impractical for the assessor to value separately from the rest of 
19.32 	the property or that is unlikely to be able to be sold separately from the rest of the property.
19.33 	An assessor may classify the part of a parcel described in this subdivision that is used 
19.34 	for agricultural purposes as class 2a and the remainder in the class appropriate to its use.
20.1 	(c) Class 2b rural vacant land consists of parcels of property, or portions thereof, 
20.2 	that are unplatted real estate, rural in character and not used for agricultural purposes, 
20.3 	including land used for growing trees for timber, lumber, and wood and wood products, 
20.4 	that is not improved with a structure. The presence of a minor, ancillary nonresidential 
20.5 	structure as defined by the commissioner of revenue does not disqualify the property from 
20.6 	classification under this paragraph. Any parcel of 20 acres or more improved with a 
20.7 	structure that is not a minor, ancillary nonresidential structure must be split-classified, and 
20.8 	ten acres must be assigned to the split parcel containing the structure. Class 2b property 
20.9 	has a net class rate of one percent of market value unless it is part of an agricultural 
20.10 	homestead under paragraph (a), or qualifies as class 2c under paragraph (d).
20.11 	(d) Class 2c managed forest land consists of no less than 20 and no more than 1,920 
20.12 	acres statewide per taxpayer that is being managed under a forest management plan that 
20.13 	meets the requirements of chapter 290C, but is not enrolled in the sustainable forest 
20.14 	resource management incentive program. It has a class rate of .65 percent, provided that 
20.15 	the owner of the property must apply to the assessor in order for the property to initially 
20.16 	qualify for the reduced rate and provide the information required by the assessor to verify 
20.17 	that the property qualifies for the reduced rate. If the assessor receives the application 
20.18 	and information before May 1 in an assessment year, the property qualifies beginning 
20.19 	with that assessment year. If the assessor receives the application and information after 
20.20 	April 30 in an assessment year, the property may not qualify until the next assessment 
20.21 	year. The commissioner of natural resources must concur that the land is qualified. The 
20.22 	commissioner of natural resources shall annually provide county assessors verification 
20.23 	information on a timely basis. The presence of a minor, ancillary nonresidential structure 
20.24 	as defined by the commissioner of revenue does not disqualify the property from 
20.25 	classification under this paragraph.
20.26 	(e) Agricultural land as used in this section means:
20.27 	(1) contiguous acreage of ten acres or more, used during the preceding year for 
20.28 	agricultural purposes; or
20.29 	(2) contiguous acreage used during the preceding year for an intensive livestock or 
20.30 	poultry confinement operation, provided that land used only for pasturing or grazing 
20.31 	does not qualify under this clause.
20.32 	"Agricultural purposes" as used in this section means the raising, cultivation, drying, 
20.33 	or storage of agricultural products for sale, or the storage of machinery or equipment 
20.34 	used in support of agricultural production by the same farm entity. For a property to be 
20.35 	classified as agricultural based only on the drying or storage of agricultural products, 
20.36 	the products being dried or stored must have been produced by the same farm entity as 
21.1 	the entity operating the drying or storage facility. "Agricultural purposes" also includes 
21.2 	enrollment in the Reinvest in Minnesota program under sections 103F.501 to 103F.535
21.3 	or the federal Conservation Reserve Program as contained in Public Law 99-198 or a 
21.4 	similar state or federal conservation program if the property was classified as agricultural 
21.5 	(i) under this subdivision for taxes payable in 2003 because of its enrollment in a 
21.6 	qualifying program and the land remains enrolled or (ii) in the year prior to its enrollment. 
21.7 	Agricultural classification shall not be based upon the market value of any residential 
21.8 	structures on the parcel or contiguous parcels under the same ownership.
21.9 	"Contiguous acreage," for purposes of this paragraph, means all of, or a contiguous 
21.10 	portion of, a tax parcel as described in section 272.193, or all of, or a contiguous portion 
21.11 	of, a set of contiguous tax parcels under that section that are owned by the same person.
21.12 	(f) Agricultural land under this section also includes:
21.13 	(1) contiguous acreage that is less than ten acres in size and exclusively used in the 
21.14 	preceding year for raising or cultivating agricultural products; or
21.15 	(2) contiguous acreage that contains a residence and is less than 11 acres in size, if 
21.16 	the contiguous acreage exclusive of the house, garage, and surrounding one acre of land 
21.17 	was used in the preceding year for one or more of the following three uses:
21.18 	(i) for an intensive grain drying or storage operation, or for intensive machinery or 
21.19 	equipment storage activities used to support agricultural activities on other parcels of 
21.20 	property operated by the same farming entity;
21.21 	(ii) as a nursery, provided that only those acres used intensively to produce nursery 
21.22 	stock are considered agricultural land; or
21.23 	(iii) for intensive market farming; for purposes of this paragraph, "market farming" 
21.24 	means the cultivation of one or more fruits or vegetables or production of animal or other 
21.25 	agricultural products for sale to local markets by the farmer or an organization with which 
21.26 	the farmer is affiliated.
21.27 	"Contiguous acreage," for purposes of this paragraph, means all of a tax parcel as 
21.28 	described in section 272.193, or all of a set of contiguous tax parcels under that section 
21.29 	that are owned by the same person.
21.30 	(g) Land shall be classified as agricultural even if all or a portion of the agricultural 
21.31 	use of that property is the leasing to, or use by another person for agricultural purposes.
21.32 	Classification under this subdivision is not determinative for qualifying under 
21.33 	section 273.111.
21.34 	(h) The property classification under this section supersedes, for property tax 
21.35 	purposes only, any locally administered agricultural policies or land use restrictions that 
21.36 	define minimum or maximum farm acreage.
22.1 	(i) The term "agricultural products" as used in this subdivision includes production 
22.2 	for sale of:
22.3 	(1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing 
22.4 	animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains, 
22.5 	bees, and apiary products by the owner;
22.6 	(2) fish bred for sale and consumption if the fish breeding occurs on land zoned 
22.7 	for agricultural use;
22.8 	(3) the commercial boarding of horses, which may include related horse training and 
22.9 	riding instruction, if the boarding is done on property that is also used for raising pasture 
22.10 	to graze horses or raising or cultivating other agricultural products as defined in clause (1);
22.11 	(4) property which is owned and operated by nonprofit organizations used for 
22.12 	equestrian activities, excluding racing;
22.13 	(5) game birds and waterfowl bred and raised (i) on a game farm licensed under 
22.14 	section 97A.105, provided that the annual licensing report to the Department of Natural 
22.15 	Resources, which must be submitted annually by March 30 to the assessor, indicates 
22.16 	that at least 500 birds were raised or used for breeding stock on the property during the 
22.17 	preceding year and that the owner provides a copy of the owner's most recent schedule F; 
22.18 	or (ii) for use on a shooting preserve licensed under section 97A.115;
22.19 	(6) insects primarily bred to be used as food for animals;
22.20 	(7) trees, grown for sale as a crop, including short rotation woody crops, and not 
22.21 	sold for timber, lumber, wood, or wood products; and
22.22 	(8) maple syrup taken from trees grown by a person licensed by the Minnesota 
22.23 	Department of Agriculture under chapter 28A as a food processor.
22.24 	(j) If a parcel used for agricultural purposes is also used for commercial or industrial 
22.25 	purposes, including but not limited to:
22.26 	(1) wholesale and retail sales;
22.27 	(2) processing of raw agricultural products or other goods;
22.28 	(3) warehousing or storage of processed goods; and
22.29 	(4) office facilities for the support of the activities enumerated in clauses (1), (2), 
22.30 	and (3),
22.31 	the assessor shall classify the part of the parcel used for agricultural purposes as class 
22.32 	1b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its 
22.33 	use. The grading, sorting, and packaging of raw agricultural products for first sale is 
22.34 	considered an agricultural purpose. A greenhouse or other building where horticultural 
22.35 	or nursery products are grown that is also used for the conduct of retail sales must be 
22.36 	classified as agricultural if it is primarily used for the growing of horticultural or nursery 
23.1 	products from seed, cuttings, or roots and occasionally as a showroom for the retail sale of 
23.2 	those products. Use of a greenhouse or building only for the display of already grown 
23.3 	horticultural or nursery products does not qualify as an agricultural purpose.
23.4 	(k) The assessor shall determine and list separately on the records the market value 
23.5 	of the homestead dwelling and the one acre of land on which that dwelling is located. If 
23.6 	any farm buildings or structures are located on this homesteaded acre of land, their market 
23.7 	value shall not be included in this separate determination.
23.8 	(l) Class 2d airport landing area consists of a landing area or public access area of 
23.9 	a privately owned public use airport. It has a class rate of one percent of market value. 
23.10 	To qualify for classification under this paragraph, a privately owned public use airport 
23.11 	must be licensed as a public airport under section 360.018. For purposes of this paragraph, 
23.12 	"landing area" means that part of a privately owned public use airport properly cleared, 
23.13 	regularly maintained, and made available to the public for use by aircraft and includes 
23.14 	runways, taxiways, aprons, and sites upon which are situated landing or navigational aids. 
23.15 	A landing area also includes land underlying both the primary surface and the approach 
23.16 	surfaces that comply with all of the following:
23.17 	(i) the land is properly cleared and regularly maintained for the primary purposes of 
23.18 	the landing, taking off, and taxiing of aircraft; but that portion of the land that contains 
23.19 	facilities for servicing, repair, or maintenance of aircraft is not included as a landing area;
23.20 	(ii) the land is part of the airport property; and
23.21 	(iii) the land is not used for commercial or residential purposes.
23.22 	The land contained in a landing area under this paragraph must be described and certified 
23.23 	by the commissioner of transportation. The certification is effective until it is modified, 
23.24 	or until the airport or landing area no longer meets the requirements of this paragraph. 
23.25 	For purposes of this paragraph, "public access area" means property used as an aircraft 
23.26 	parking ramp, apron, or storage hangar, or an arrival and departure building in connection 
23.27 	with the airport.
23.28 	(m) Class 2e consists of land with a commercial aggregate deposit that is not actively 
23.29 	being mined and is not otherwise classified as class 2a or 2b, provided that the land is not 
23.30 	located in a county that has elected to opt-out of the aggregate preservation program as 
23.31 	provided in section 273.1115, subdivision 6. It has a class rate of one percent of market 
23.32 	value. To qualify for classification under this paragraph, the property must be at least 
23.33 	ten contiguous acres in size and the owner of the property must record with the county 
23.34 	recorder of the county in which the property is located an affidavit containing:
23.35 	(1) a legal description of the property;
24.1 	(2) a disclosure that the property contains a commercial aggregate deposit that is not 
24.2 	actively being mined but is present on the entire parcel enrolled;
24.3 	(3) documentation that the conditional use under the county or local zoning 
24.4 	ordinance of this property is for mining; and
24.5 	(4) documentation that a permit has been issued by the local unit of government 
24.6 	or the mining activity is allowed under local ordinance. The disclosure must include a 
24.7 	statement from a registered professional geologist, engineer, or soil scientist delineating 
24.8 	the deposit and certifying that it is a commercial aggregate deposit.
24.9 	For purposes of this section and section 273.1115, "commercial aggregate deposit" 
24.10 	means a deposit that will yield crushed stone or sand and gravel that is suitable for use 
24.11 	as a construction aggregate; and "actively mined" means the removal of top soil and 
24.12 	overburden in preparation for excavation or excavation of a commercial deposit.
24.13 	(n) When any portion of the property under this subdivision or subdivision 22 begins 
24.14 	to be actively mined, the owner must file a supplemental affidavit within 60 days from 
24.15 	the day any aggregate is removed stating the number of acres of the property that is 
24.16 	actively being mined. The acres actively being mined must be (1) valued and classified 
24.17 	under subdivision 24 in the next subsequent assessment year, and (2) removed from the 
24.18 	aggregate resource preservation property tax program under section 273.1115, if the 
24.19 	land was enrolled in that program. Copies of the original affidavit and all supplemental 
24.20 	affidavits must be filed with the county assessor, the local zoning administrator, and the 
24.21 	Department of Natural Resources, Division of Land and Minerals. A supplemental 
24.22 	affidavit must be filed each time a subsequent portion of the property is actively mined, 
24.23 	provided that the minimum acreage change is five acres, even if the actual mining activity 
24.24 	constitutes less than five acres.
24.25 	(o) (l) The definitions prescribed by the commissioner under paragraphs (c) and 
24.26 	(d) are not rules and are exempt from the rulemaking provisions of chapter 14, and the 
24.27 	provisions in section 14.386 concerning exempt rules do not apply.

24.28 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 
24.29 	2016 and thereafter.

24.30 	Sec. 9. Minnesota Statutes 2013 Supplement, section 273.13, subdivision 25, is 
24.31 	amended to read:
24.32 		Subd. 25.Class 4. (a) Class 4a is residential real estate containing four or more 
24.33 	units and used or held for use by the owner or by the tenants or lessees of the owner 
24.34 	as a residence for rental periods of 30 days or more, excluding property qualifying for 
24.35 	class 4d. Class 4a also includes hospitals licensed under sections 144.50 to 144.56, other 
25.1 	than hospitals exempt under section 272.02, and contiguous property used for hospital 
25.2 	purposes, without regard to whether the property has been platted or subdivided. The 
25.3 	market value of class 4a property has a class rate of 1.25 percent.
25.4 	(b) Class 4b includes:
25.5 	(1) residential real estate containing less than four units, including property on a 
25.6 	nonhomestead farm, that does not qualify as class 4bb, other than seasonal residential 
25.7 	recreational property;
25.8 	(2) manufactured homes not classified under any other provision; and
25.9 	(3) a dwelling, garage, and surrounding one acre of property on a nonhomestead 
25.10 	farm classified under subdivision 23, paragraph (b) containing two or three units; and
25.11 	(4) unimproved property that is classified residential as determined under subdivision 
25.12 	33.
25.13 	The market value of class 4b property has a class rate of 1.25 percent.
25.14 	(c) Class 4bb includes nonhomestead residential real estate containing one unit, 
25.15 	other than seasonal residential recreational property, and a single family dwelling, garage, 
25.16 	and surrounding one acre of property on a nonhomestead farm classified under subdivision 
25.17 	23, paragraph (b).
25.18 	Class 4bb property has the same class rates as class 1a property under subdivision 22.
25.19 	Property that has been classified as seasonal residential recreational property at 
25.20 	any time during which it has been owned by the current owner or spouse of the current 
25.21 	owner does not qualify for class 4bb.
25.22 	(d) Class 4c property includes:
25.23 	(1) except as provided in subdivision 22, paragraph (c), real and personal property 
25.24 	devoted to commercial temporary and seasonal residential occupancy for recreation 
25.25 	purposes, for not more than 250 days in the year preceding the year of assessment. For 
25.26 	purposes of this clause, property is devoted to a commercial purpose on a specific day 
25.27 	if any portion of the property is used for residential occupancy, and a fee is charged for 
25.28 	residential occupancy. Class 4c property under this clause must contain three or more 
25.29 	rental units. A "rental unit" is defined as a cabin, condominium, townhouse, sleeping room, 
25.30 	or individual camping site equipped with water and electrical hookups for recreational 
25.31 	vehicles. A camping pad offered for rent by a property that otherwise qualifies for class 
25.32 	4c under this clause is also class 4c under this clause regardless of the term of the rental 
25.33 	agreement, as long as the use of the camping pad does not exceed 250 days. In order for a 
25.34 	property to be classified under this clause, either (i) the business located on the property 
25.35 	must provide recreational activities, at least 40 percent of the annual gross lodging receipts 
25.36 	related to the property must be from business conducted during 90 consecutive days, 
26.1 	and either (A) at least 60 percent of all paid bookings by lodging guests during the year 
26.2 	must be for periods of at least two consecutive nights; or (B) at least 20 percent of the 
26.3 	annual gross receipts must be from charges for providing recreational activities, or (ii) the 
26.4 	business must contain 20 or fewer rental units, and must be located in a township or a city 
26.5 	with a population of 2,500 or less located outside the metropolitan area, as defined under 
26.6 	section 473.121, subdivision 2, that contains a portion of a state trail administered by the 
26.7 	Department of Natural Resources. For purposes of item (i)(A), a paid booking of five or 
26.8 	more nights shall be counted as two bookings. Class 4c property also includes commercial 
26.9 	use real property used exclusively for recreational purposes in conjunction with other class 
26.10 	4c property classified under this clause and devoted to temporary and seasonal residential 
26.11 	occupancy for recreational purposes, up to a total of two acres, provided the property is 
26.12 	not devoted to commercial recreational use for more than 250 days in the year preceding 
26.13 	the year of assessment and is located within two miles of the class 4c property with which 
26.14 	it is used. In order for a property to qualify for classification under this clause, the owner 
26.15 	must submit a declaration to the assessor designating the cabins or units occupied for 250 
26.16 	days or less in the year preceding the year of assessment by January 15 of the assessment 
26.17 	year. Those cabins or units and a proportionate share of the land on which they are located 
26.18 	must be designated class 4c under this clause as otherwise provided. The remainder of the 
26.19 	cabins or units and a proportionate share of the land on which they are located will be 
26.20 	designated as class 3a. The owner of property desiring designation as class 4c property 
26.21 	under this clause must provide guest registers or other records demonstrating that the units 
26.22 	for which class 4c designation is sought were not occupied for more than 250 days in the 
26.23 	year preceding the assessment if so requested. The portion of a property operated as a 
26.24 	(1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5) other 
26.25 	nonresidential facility operated on a commercial basis not directly related to temporary and 
26.26 	seasonal residential occupancy for recreation purposes does not qualify for class 4c. For 
26.27 	the purposes of this paragraph, "recreational activities" means renting ice fishing houses, 
26.28 	boats and motors, snowmobiles, downhill or cross-country ski equipment; providing 
26.29 	marina services, launch services, or guide services; or selling bait and fishing tackle;
26.30 	(2) qualified property used as a golf course if:
26.31 	(i) it is open to the public on a daily fee basis. It may charge membership fees or 
26.32 	dues, but a membership fee may not be required in order to use the property for golfing, 
26.33 	and its green fees for golfing must be comparable to green fees typically charged by 
26.34 	municipal courses; and
26.35 	(ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d).
27.1 	A structure used as a clubhouse, restaurant, or place of refreshment in conjunction 
27.2 	with the golf course is classified as class 3a property;
27.3 	(3) real property up to a maximum of three acres of land owned and used by a 
27.4 	nonprofit community service oriented organization and not used for residential purposes 
27.5 	on either a temporary or permanent basis, provided that:
27.6 	(i) the property is not used for a revenue-producing activity for more than six days 
27.7 	in the calendar year preceding the year of assessment; or
27.8 	(ii) the organization makes annual charitable contributions and donations at least 
27.9 	equal to the property's previous year's property taxes and the property is allowed to be 
27.10 	used for public and community meetings or events for no charge, as appropriate to the 
27.11 	size of the facility.
27.12 	For purposes of this clause:
27.13 	(A) "charitable contributions and donations" has the same meaning as lawful 
27.14 	gambling purposes under section 349.12, subdivision 25, excluding those purposes 
27.15 	relating to the payment of taxes, assessments, fees, auditing costs, and utility payments;
27.16 	(B) "property taxes" excludes the state general tax;
27.17 	(C) a "nonprofit community service oriented organization" means any corporation, 
27.18 	society, association, foundation, or institution organized and operated exclusively for 
27.19 	charitable, religious, fraternal, civic, or educational purposes, and which is exempt from 
27.20 	federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal 
27.21 	Revenue Code; and
27.22 	(D) "revenue-producing activities" shall include but not be limited to property or that 
27.23 	portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt 
27.24 	liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling 
27.25 	alley, a retail store, gambling conducted by organizations licensed under chapter 349, an 
27.26 	insurance business, or office or other space leased or rented to a lessee who conducts a 
27.27 	for-profit enterprise on the premises.
27.28 	Any portion of the property not qualifying under either item (i) or (ii) is class 3a. 
27.29 	The use of the property for social events open exclusively to members and their guests 
27.30 	for periods of less than 24 hours, when an admission is not charged nor any revenues are 
27.31 	received by the organization shall not be considered a revenue-producing activity.
27.32 	The organization shall maintain records of its charitable contributions and donations 
27.33 	and of public meetings and events held on the property and make them available upon 
27.34 	request any time to the assessor to ensure eligibility. An organization meeting the 
27.35 	requirement under item (ii) must file an application by May 1 with the assessor for 
28.1 	eligibility for the current year's assessment. The commissioner shall prescribe a uniform 
28.2 	application form and instructions;
28.3 	(4) postsecondary student housing of not more than one acre of land that is owned by 
28.4 	a nonprofit corporation organized under chapter 317A and is used exclusively by a student 
28.5 	cooperative, sorority, or fraternity for on-campus housing or housing located within two 
28.6 	miles of the border of a college campus;
28.7 	(5)(i) manufactured home parks as defined in section 327.14, subdivision 3, 
28.8 	excluding manufactured home parks described in section 273.124, subdivision 3a, and (ii) 
28.9 	manufactured home parks as defined in section 327.14, subdivision 3, that are described in 
28.10 	section 273.124, subdivision 3a;
28.11 	(6) real property that is actively and exclusively devoted to indoor fitness, health, 
28.12 	social, recreational, and related uses, is owned and operated by a not-for-profit corporation, 
28.13 	and is located within the metropolitan area as defined in section 473.121, subdivision 2; and
28.14 	(7) a leased or privately owned noncommercial aircraft storage hangar not exempt 
28.15 	under section 272.01, subdivision 2, and the land on which it is located, provided that:
28.16 	(i) the land is on an airport owned or operated by a city, town, county, Metropolitan 
28.17 	Airports Commission, or group thereof; and
28.18 	(ii) the land lease, or any ordinance or signed agreement restricting the use of the 
28.19 	leased premise, prohibits commercial activity performed at the hangar.
28.20 	If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must 
28.21 	be filed by the new owner with the assessor of the county where the property is located 
28.22 	within 60 days of the sale;
28.23 	(8) a privately owned noncommercial aircraft storage hangar not exempt under 
28.24 	section 272.01, subdivision 2, and the land on which it is located, provided that:
28.25 	(i) the land abuts a public airport; and
28.26 	(ii) the owner of the aircraft storage hangar provides the assessor with a signed 
28.27 	agreement restricting the use of the premises, prohibiting commercial use or activity 
28.28 	performed at the hangar; and
28.29 	(9) residential real estate, a portion of which is used by the owner for homestead 
28.30 	purposes, and that is also a place of lodging, if all of the following criteria are met:
28.31 	(i) rooms are provided for rent to transient guests that generally stay for periods 
28.32 	of 14 or fewer days;
28.33 	(ii) meals are provided to persons who rent rooms, the cost of which is incorporated 
28.34 	in the basic room rate;
28.35 	(iii) meals are not provided to the general public except for special events on fewer 
28.36 	than seven days in the calendar year preceding the year of the assessment; and
29.1 	(iv) the owner is the operator of the property.
29.2 	The market value subject to the 4c classification under this clause is limited to 
29.3 	five rental units. Any rental units on the property in excess of five, must be valued and 
29.4 	assessed as class 3a. The portion of the property used for purposes of a homestead by the 
29.5 	owner must be classified as class 1a property under subdivision 22;
29.6 	(10) real property up to a maximum of three acres and operated as a restaurant 
29.7 	as defined under section 157.15, subdivision 12, provided it: (A) is located on a lake 
29.8 	as defined under section 103G.005, subdivision 15, paragraph (a), clause (3); and (B) 
29.9 	is either devoted to commercial purposes for not more than 250 consecutive days, or 
29.10 	receives at least 60 percent of its annual gross receipts from business conducted during 
29.11 	four consecutive months. Gross receipts from the sale of alcoholic beverages must be 
29.12 	included in determining the property's qualification under subitem (B). The property's 
29.13 	primary business must be as a restaurant and not as a bar. Gross receipts from gift shop 
29.14 	sales located on the premises must be excluded. Owners of real property desiring 4c 
29.15 	classification under this clause must submit an annual declaration to the assessor by 
29.16 	February 1 of the current assessment year, based on the property's relevant information for 
29.17 	the preceding assessment year;
29.18 	(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used 
29.19 	as a marina, as defined in section 86A.20, subdivision 5, which is made accessible to 
29.20 	the public and devoted to recreational use for marina services. The marina owner must 
29.21 	annually provide evidence to the assessor that it provides services, including lake or river 
29.22 	access to the public by means of an access ramp or other facility that is either located on 
29.23 	the property of the marina or at a publicly owned site that abuts the property of the marina. 
29.24 	No more than 800 feet of lakeshore may be included in this classification. Buildings used 
29.25 	in conjunction with a marina for marina services, including but not limited to buildings 
29.26 	used to provide food and beverage services, fuel, boat repairs, or the sale of bait or fishing 
29.27 	tackle, are classified as class 3a property; and
29.28 	(12) (7) real and personal property devoted to noncommercial temporary and 
29.29 	seasonal residential occupancy for recreation purposes.
29.30 	Class 4c property has a class rate of 1.5 percent of market value, except that (i) each 
29.31 	parcel of noncommercial seasonal residential recreational property under clause (12) (7)
29.32 	 has the same class rates as class 4bb property, (ii) manufactured home parks assessed 
29.33 	under clause (5), item (i), have the same class rate as class 4b property, and the market 
29.34 	value of manufactured home parks assessed under clause (5), item (ii), has the same class
29.35 	rate as class 4d property a classification rate of 0.75 percent if more than 50 percent 
29.36 	of the lots in the park are occupied by shareholders in the cooperative corporation or 
30.1 	association and a class rate of one percent if 50 percent or less of the lots are so occupied, 
30.2 	(iii) commercial-use seasonal residential recreational property and marina recreational 
30.3 	land as described in clause (11), has a class rate of one percent for the first $500,000 of 
30.4 	market value, and 1.25 percent for the remaining market value, (iv) the market value of 
30.5 	property described in clause (4) has a class rate of one percent, and (v) the market value 
30.6 	of property described in clauses (2),and (6), and (10) has a class rate of 1.25 percent, 
30.7 	and (vi) that portion of the market value of property in clause (9) qualifying for class 4c 
30.8 	property has a class rate of 1.25 percent.
30.9 	(e) Class 4d property is qualifying low-income rental housing certified to the assessor 
30.10 	by the Housing Finance Agency under section 273.128, subdivision 3. If only a portion 
30.11 	of the units in the building qualify as low-income rental housing units as certified under 
30.12 	section 273.128, subdivision 3, only the proportion of qualifying units to the total number 
30.13 	of units in the building qualify for class 4d. The remaining portion of the building shall be 
30.14 	classified by the assessor based upon its use. Class 4d also includes the same proportion of 
30.15 	land as the qualifying low-income rental housing units are to the total units in the building. 
30.16 	For all properties qualifying as class 4d, the market value determined by the assessor must 
30.17 	be based on the normal approach to value using normal unrestricted rents.
30.18 	(f) The first tier of market value of class 4d property has a class rate of 0.75 percent. 
30.19 	The remaining value of class 4d property has a class rate of 0.25 percent. For the purposes 
30.20 	of this paragraph, the "first tier of market value of class 4d property" means the market 
30.21 	value of each housing unit up to the first tier limit. For the purposes of this paragraph, all 
30.22 	class 4d property value must be assigned to individual housing units. The first tier limit is 
30.23 	$100,000 for assessment year 2014. For subsequent years, the limit is adjusted each year 
30.24 	by the average statewide change in estimated market value of property classified as class 4a 
30.25 	and 4d under this section for the previous assessment year, excluding valuation change due 
30.26 	to new construction, rounded to the nearest $1,000, provided, however, that the limit may 
30.27 	never be less than $100,000. Beginning with assessment year 2015, the commissioner of 
30.28 	revenue must certify the limit for each assessment year by November 1 of the previous year.

30.29 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 
30.30 	2016 and thereafter.

30.31 	Sec. 10. Minnesota Statutes 2012, section 273.13, subdivision 34, is amended to read:
30.32 		Subd. 34.Homestead of disabled veteran or family caregiver. (a) All or a 
30.33 	portion of the market value of property owned by a veteran and serving as the veteran's 
30.34 	homestead under this section is excluded in determining the property's taxable market 
30.35 	value if the veteran has a service-connected disability of 70 percent or more as certified 
31.1 	by the United States Department of Veterans Affairs. To qualify for exclusion under this 
31.2 	subdivision, the veteran must have been honorably discharged from the United States 
31.3 	armed forces, as indicated by United States Government Form DD214 or other official 
31.4 	military discharge papers.
31.5 	(b)(1) For a disability rating of 70 percent or more, $150,000 of market value is 
31.6 	excluded, except as provided in clause (2); and
31.7 	(2) for a total (100 percent) and permanent disability, $300,000 of market value is 
31.8 	excluded.
31.9 	(c) If a disabled veteran qualifying for a valuation exclusion under paragraph (b), 
31.10 	clause (2), predeceases the veteran's spouse, and if upon the death of the veteran the spouse 
31.11 	holds the legal or beneficial title to the homestead and permanently resides there, the 
31.12 	exclusion shall carry over to the benefit of the veteran's spouse for the current taxes payable 
31.13 	year and for five eight additional taxes payable years or until such time as the spouse 
31.14 	remarries, or sells, transfers, or otherwise disposes of the property, whichever comes first. 
31.15 	Qualification under this paragraph requires an annual application under paragraph (h).
31.16 	(d) If the spouse of a member of any branch or unit of the United States armed 
31.17 	forces who dies due to a service-connected cause while serving honorably in active 
31.18 	service, as indicated on United States Government Form DD1300 or DD2064, holds the 
31.19 	legal or beneficial title to a homestead and permanently resides there, the spouse is entitled 
31.20 	to the benefit described in paragraph (b), clause (2), for five eight taxes payable years, 
31.21 	or until such time as the spouse remarries or sells, transfers, or otherwise disposes of the 
31.22 	property, whichever comes first.
31.23 	(e) If a veteran meets the disability criteria of paragraph (a) but does not own 
31.24 	property classified as homestead in the state of Minnesota, then the homestead of the 
31.25 	veteran's primary family caregiver, if any, is eligible for the exclusion that the veteran 
31.26 	would otherwise qualify for under paragraph (b).
31.27 	(f) In the case of an agricultural homestead, only the portion of the property 
31.28 	consisting of the house and garage and immediately surrounding one acre of land qualifies 
31.29 	for the valuation exclusion under this subdivision.
31.30 	(g) A property qualifying for a valuation exclusion under this subdivision is not 
31.31 	eligible for the market value exclusion under subdivision 35, or classification under 
31.32 	subdivision 22, paragraph (b).
31.33 	(h) To qualify for a valuation exclusion under this subdivision a property owner 
31.34 	must apply to the assessor by July 1 of each assessment year, except that an annual 
31.35 	reapplication is not required once a property has been accepted for a valuation exclusion 
31.36 	under paragraph (a) and qualifies for the benefit described in paragraph (b), clause (2), and 
32.1 	the property continues to qualify until there is a change in ownership. For an application 
32.2 	received after July 1 of any calendar year, the exclusion shall become effective for the 
32.3 	following assessment year.
32.4 	(i) A first-time application by a qualifying spouse for the market value exclusion under 
32.5 	paragraph (d) must be made any time within two years of the death of the service member.
32.6 	(j) For purposes of this subdivision:
32.7 	(1) "active service" has the meaning given in section 190.05;
32.8 	(2) "own" means that the person's name is present as an owner on the property deed;
32.9 	(3) "primary family caregiver" means a person who is approved by the secretary of 
32.10 	the United States Department of Veterans Affairs for assistance as the primary provider 
32.11 	of personal care services for an eligible veteran under the Program of Comprehensive 
32.12 	Assistance for Family Caregivers, codified as United States Code, title 38, section 1720G; 
32.13 	and
32.14 	(4) "veteran" has the meaning given the term in section 197.447.
32.15 	(k) The purpose of this provision of law providing a level of homestead property tax 
32.16 	relief for gravely disabled veterans, their primary family caregivers, and their surviving 
32.17 	spouses is to help ease the burdens of war for those among our state's citizens who bear 
32.18 	those burdens most heavily.

32.19 	EFFECTIVE DATE. This section is effective for taxes payable in 2015, and 
32.20 	applies to homesteads that initially qualified for the exclusion for taxes payable in 2009 
32.21 	and thereafter.

32.22 	Sec. 11. Minnesota Statutes 2012, section 275.025, subdivision 2, is amended to read:
32.23 		Subd. 2.Commercial-industrial tax capacity. For the purposes of this section, 
32.24 	"commercial-industrial tax capacity" means the tax capacity of all taxable property 
32.25 	classified as class 3 or class 5(1) under section 273.13, except for excluding: (1) the 
32.26 	first tier of commercial-industrial value as defined under section 273.13, subdivision 24; 
32.27 	(2) electric generation attached machinery under class 3; and (3) property described in 
32.28 	section 473.625. County commercial-industrial tax capacity amounts are not adjusted 
32.29 	for the captured net tax capacity of a tax increment financing district under section 
32.30 	469.177, subdivision 2, the net tax capacity of transmission lines deducted from a local 
32.31 	government's total net tax capacity under section 273.425, or fiscal disparities contribution 
32.32 	and distribution net tax capacities under chapter 276A or 473F.

32.33 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2015.

33.1 	Sec. 12. Minnesota Statutes 2012, section 275.065, subdivision 1, is amended to read:
33.2 		Subdivision 1.Proposed levy. (a) Notwithstanding any law or charter to the 
33.3 	contrary, on or before September 15 30, each taxing authority, other than a school district, 
33.4 	shall adopt a proposed budget and county and each home rule charter or statutory city shall 
33.5 	certify to the county auditor the proposed or, in the case of a town, the final property tax 
33.6 	levy for taxes payable in the following year.
33.7 	(b) Notwithstanding any law or charter to the contrary, on or before September 15, 
33.8 	each town and each special taxing district shall adopt and certify to the county auditor a 
33.9 	proposed property tax levy for taxes payable in the following year. For towns, the final 
33.10 	certified levy shall also be considered the proposed levy.
33.11 	(c) On or before September 30, each school district that has not mutually agreed 
33.12 	with its home county to extend this date shall certify to the county auditor the proposed 
33.13 	property tax levy for taxes payable in the following year. Each school district that has 
33.14 	agreed with its home county to delay the certification of its proposed property tax levy 
33.15 	must certify its proposed property tax levy for the following year no later than October 
33.16 	7. The school district shall certify the proposed levy as:
33.17 	(1) a specific dollar amount by school district fund, broken down between 
33.18 	voter-approved and non-voter-approved levies and between referendum market value 
33.19 	and tax capacity levies; or
33.20 	(2) the maximum levy limitation certified by the commissioner of education 
33.21 	according to section 126C.48, subdivision 1.
33.22 	(c) (d) If the board of estimate and taxation or any similar board that establishes 
33.23 	maximum tax levies for taxing jurisdictions within a first class city certifies the maximum 
33.24 	property tax levies for funds under its jurisdiction by charter to the county auditor by 
33.25 	September 15 the date specified in paragraph (a), the city shall be deemed to have certified 
33.26 	its levies for those taxing jurisdictions.
33.27 	(d) (e) For purposes of this section, "taxing authority" includes all home rule and 
33.28 	statutory cities, towns, counties, school districts, and "special taxing district" means a
33.29 	 special taxing districts district as defined in section 275.066. Intermediate school districts 
33.30 	that levy a tax under chapter 124 or 136D, joint powers boards established under sections 
33.31 	123A.44 to 123A.446, and Common School Districts No. 323, Franconia, and No. 815, 
33.32 	Prinsburg, are also special taxing districts for purposes of this section.
33.33 	(e) (f) At the meeting at which the a taxing authority, other than a town, adopts its 
33.34 	proposed tax levy under paragraph (a) or (b) this subdivision, the taxing authority shall 
33.35 	announce the time and place of its subsequent regularly scheduled meetings at which 
33.36 	the budget and levy will be discussed and at which the public will be allowed to speak. 
34.1 	The time and place of those meetings must be included in the proceedings or summary 
34.2 	of proceedings published in the official newspaper of the taxing authority under section 
34.3 	123B.09, 375.12, or 412.191.

34.4 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2015.

34.5 	Sec. 13.  REPEALER.
 34.6 	Minnesota Statutes 2012, section 273.1115, is repealed.

34.7 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 
34.8 	2016 and thereafter.

34.9 	ARTICLE 3
34.10 	SALES, USE, AND EXCISE TAXES

34.11 	Section 1. Minnesota Statutes 2013 Supplement, section 116J.8738, subdivision 2, 
34.12 	is amended to read:
34.13 		Subd. 2.Qualified business. (a) A business is a qualified business if it satisfies the 
34.14 	requirement of this paragraph and is not disqualified under the provisions of paragraph 
34.15 	(b). To qualify, the business must:
34.16 	(1) have operated its trade or business in a city or cities in greater Minnesota for at 
34.17 	least one year before applying under subdivision 3;
34.18 	(2) pay or agree to pay in the future each employee compensation, including benefits 
34.19 	not mandated by law, that on an annualized basis equal at least 120 percent of the federal 
34.20 	poverty level for a family of four;
34.21 	(3) plan and agree to expand its employment in one or more cities in greater Minnesota 
34.22 	by the minimum number of employees required under subdivision 3, paragraph (c); and
34.23 	(4) have received certification from the commissioner under subdivision 3 that 
34.24 	it is a qualified business.
34.25 	(b) A business is not a qualified business if it is either:
34.26 	(1) primarily engaged in making retail sales to purchasers who are physically present 
34.27 	at the business's location or locations in greater Minnesota; or
34.28 	(2) a public utility, as defined in section 336B.01; or
34.29 	(3) primarily engaged in lobbying; gambling; entertainment; professional sports; 
34.30 	political consulting; leisure; hospitality; or professional services provided by attorneys, 
34.31 	accountants, business consultants, physicians, or health care consultants.
34.32 	(c) The requirements in paragraph (a) that the business's operations and expansion 
34.33 	be located in a city do not apply to an agricultural processing facility.

35.1 	EFFECTIVE DATE. This section is effective the day following final enactment.

35.2 	Sec. 2. Minnesota Statutes 2013 Supplement, section 116J.8738, subdivision 3, is 
35.3 	amended to read:
35.4 		Subd. 3.Certification of qualified business. (a) A business may apply to the 
35.5 	commissioner for certification as a qualified business under this section. The commissioner 
35.6 	shall specify the form of the application, the manner and times for applying, and the 
35.7 	information required to be included in the application. The commissioner may impose an 
35.8 	application fee in an amount sufficient to defray the commissioner's cost of processing 
35.9 	certifications. A business must file a copy of its application with the chief clerical officer 
35.10 	of the city at the same time it applies to the commissioner. For an agricultural processing 
35.11 	facility located outside the boundaries of a city, the business must file a copy of the 
35.12 	application with the county auditor.
35.13 	(b) The commissioner shall certify each business as a qualified business that:
35.14 	(1) satisfies the requirements of subdivision 2;
35.15 	(2) the commissioner determines would not expand its operations in greater 
35.16 	Minnesota without the tax incentives available under subdivision 4; and
35.17 	(3) enters a business subsidy agreement with the commissioner that pledges to 
35.18 	satisfy the minimum expansion requirements of paragraph (c) within three years or less 
35.19 	following execution of the agreement.
35.20 	The commissioner must act on an application within 60 90  days after its filing. 
35.21 	Failure by the commissioner to take action within the 60-day 90-day period is deemed 
35.22 	approval of the application.
35.23 	(c) The following minimum expansion requirements apply, based on the number of 
35.24 	employees of the business at locations in greater Minnesota:
35.25 	(1) a business that employs 50 or fewer full-time equivalent employees in greater 
35.26 	Minnesota when the agreement is executed must increase its employment by five or more 
35.27 	full-time equivalent employees;
35.28 	(2) a business that employs more than 50 but fewer than 200 full-time equivalent 
35.29 	employees in greater Minnesota when the agreement is executed must increase the number 
35.30 	of its full-time equivalent employees in greater Minnesota by at least ten percent; or
35.31 	(3) a business that employs 200 or more full-time equivalent employees in greater 
35.32 	Minnesota when the agreement is executed must increase its employment by at least 21 
35.33 	full-time equivalent employees (c) The business must increase the number of full-time 
35.34 	equivalent employees in greater Minnesota from the time the business subsidy agreement 
35.35 	is executed by two employees or ten percent, whichever is greater.
36.1 	(d) The city, or a county for an agricultural processing facility located outside the 
36.2 	boundaries of a city, in which the business proposes to expand its operations may file 
36.3 	comments supporting or opposing the application with the commissioner. The comments 
36.4 	must be filed within 30 days after receipt by the city of the application and may include a 
36.5 	notice of any contribution the city or county intends to make to encourage or support the 
36.6 	business expansion, such as the use of tax increment financing, property tax abatement, 
36.7 	additional city or county services, or other financial assistance.
36.8 	(e) Certification of a qualified business is effective for the 12-year seven-year period 
36.9 	beginning on the first day of the calendar month immediately following execution of 
36.10 	the business subsidy agreement the date that the commissioner informs the business of 
36.11 	the award of the benefit.

36.12 	EFFECTIVE DATE. This section is effective the day following final enactment.

36.13 	Sec. 3. Minnesota Statutes 2013 Supplement, section 116J.8738, subdivision 4, is 
36.14 	amended to read:
36.15 		Subd. 4.Available tax incentives. A qualified business is entitled to a sales tax 
36.16 	exemption, up to $2,000,000 annually and $10,000,000 during the total period of the 
36.17 	agreement, as provided in section 297A.68, subdivision 44, for purchases made during 
36.18 	the period the business was certified as a qualified business under this section. The 
36.19 	commissioner has discretion to set the maximum amounts of the annual and total sales tax 
36.20 	exemption allowed for each qualifying business as part of the business subsidy agreement.

36.21 	EFFECTIVE DATE. This section is effective the day following final enactment.

36.22 	Sec. 4. [168A.125] TRANSFER-ON-DEATH OF TITLE TO MOTOR VEHICLE.
36.23 		Subdivision 1.Titled as transfer-on-death. A motor vehicle may be titled in 
36.24 	transfer-on-death or TOD form by a natural person by including in the certificate of title a 
36.25 	designation of a beneficiary or beneficiaries who are natural persons to whom the motor 
36.26 	vehicle must be transferred on death of the owner or the last survivor of joint owners with 
36.27 	rights of survivorship, subject to the rights of all secured parties.
36.28 		Subd. 2.Designation of beneficiary. A motor vehicle is registered in 
36.29 	transfer-on-death form by designating on the certificate of title the name of the owner 
36.30 	and the names of joint owners with identification of rights of survivorship, followed by 
36.31 	the words "transfer-on-death to (name of beneficiary or beneficiaries)." The designation 
36.32 	"TOD" may be used instead of "transfer-on-death." A title in transfer-on-death form is 
36.33 	not required to be supported by consideration, and the certificate of title in which the 
37.1 	designation is made is not required to be delivered to the beneficiary or beneficiaries in 
37.2 	order for the designation to be effective.
37.3 		Subd. 3.Interest of beneficiary. The transfer-on-death beneficiary or beneficiaries 
37.4 	shall have no interest in the motor vehicle until the death of the owner or the last survivor 
37.5 	of the joint owners with right of survivorship. A beneficiary designation may be changed at 
37.6 	any time by the owner or by all joint owners with rights of survivorship, without the consent 
37.7 	of the beneficiary or beneficiaries, by filing an application for a new certificate of title.
37.8 		Subd. 4.Vesting of ownership in beneficiary. Ownership of a motor vehicle 
37.9 	titled in transfer-on-death form shall vest in the designated beneficiary or beneficiaries on 
37.10 	the death of the owner or the last of the joint owners with right of survivorship, subject 
37.11 	to the rights of all secured parties. The transfer-on-death beneficiary or beneficiaries 
37.12 	who survive the owner may apply for a new certificate of title to the motor vehicle upon 
37.13 	submitting proof of the death of the owner of the motor vehicle. If no transfer-on-death 
37.14 	beneficiary or beneficiaries survive the owner of a motor vehicle, the motor vehicle must 
37.15 	be included in the probate estate of the deceased owner. A transfer of a motor vehicle to a 
37.16 	transfer-on-death beneficiary or beneficiaries is not a testamentary transfer.
37.17 		Subd. 5.Rights of creditors. This section does not limit the rights of any secured 
37.18 	party or creditor of the owner of a motor vehicle against a transfer-on-death beneficiary or 
37.19 	beneficiaries.

37.20 	Sec. 5. Minnesota Statutes 2013 Supplement, section 289A.20, subdivision 4, is 
37.21 	amended to read:
37.22 		Subd. 4.Sales and use tax. (a) The taxes imposed by chapter 297A are due and 
37.23 	payable to the commissioner monthly on or before the 20th day of the month following the 
37.24 	month in which the taxable event occurred, or following another reporting period as the 
37.25 	commissioner prescribes or as allowed under section 289A.18, subdivision 4, paragraph 
37.26 	(f) or (g), except that use taxes due on an annual use tax return as provided under section 
37.27 	289A.11, subdivision 1, are payable by April 15 following the close of the calendar year.
37.28 	(b) A vendor having a liability of $120,000 $250,000 or more during a fiscal year 
37.29 	ending June 30 must remit the June liability for the next year in the following manner:
37.30 	(1) Two business days before June 30 of the year, the vendor must remit 90 82
37.31 	 percent of the estimated June liability to the commissioner.
37.32 	(2) On or before August 20 of the year, the vendor must pay any additional amount 
37.33 	of tax not remitted in June.
37.34 	(c) A vendor having a liability of:
38.1 	(1) $10,000 or more, but less than $120,000 $250,000 during a fiscal year ending 
38.2 	June 30, 2013, and fiscal years thereafter, must remit by electronic means all liabilities 
38.3 	on returns due for periods beginning in all subsequent calendar years on or before the 
38.4 	20th day of the month following the month in which the taxable event occurred, or on 
38.5 	or before the 20th day of the month following the month in which the sale is reported 
38.6 	under section 289A.18, subdivision 4; or
38.7 	(2) $120,000 $250,000 or more, during a fiscal year ending June 30, 2009 2013, 
38.8 	and fiscal years thereafter, must remit by electronic means all liabilities in the manner 
38.9 	provided in paragraph (a) on returns due for periods beginning in the subsequent calendar 
38.10 	year, except for 9082 percent of the estimated June liability, which is due two business 
38.11 	days before June 30. The remaining amount of the June liability is due on August 20.
38.12 	(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's 
38.13 	religious beliefs from paying electronically shall be allowed to remit the payment by mail. 
38.14 	The filer must notify the commissioner of revenue of the intent to pay by mail before 
38.15 	doing so on a form prescribed by the commissioner. No extra fee may be charged to a 
38.16 	person making payment by mail under this paragraph. The payment must be postmarked 
38.17 	at least two business days before the due date for making the payment in order to be 
38.18 	considered paid on a timely basis.

38.19 	EFFECTIVE DATE. This section is effective for taxes remitted after May 30, 2014.

38.20 	Sec. 6. Minnesota Statutes 2012, section 289A.60, subdivision 15, is amended to read:
38.21 		Subd. 15.Accelerated payment of June sales tax liability; penalty for 
38.22 	underpayment. For payments made after December 31, 2006 2013, if a vendor is 
38.23 	required by law to submit an estimation of June sales tax liabilities and 9082 percent 
38.24 	payment by a certain date, the vendor shall pay a penalty equal to ten percent of the 
38.25 	amount of actual June liability required to be paid in June less the amount remitted in 
38.26 	June. The penalty must not be imposed, however, if the amount remitted in June equals 
38.27 	the lesser of 90 82 percent of the preceding May's liability or 90 82 percent of the average 
38.28 	monthly liability for the previous calendar year.

38.29 	EFFECTIVE DATE. This section is effective for taxes remitted after May 30, 2014.

38.30 	Sec. 7. Minnesota Statutes 2012, section 297A.67, subdivision 13a, is amended to read:
38.31 		Subd. 13a.Instructional materials. Instructional materials, other than textbooks, 
38.32 	that are prescribed for use in conjunction with a course of study in a postsecondary school, 
38.33 	college, university, or private career school to students who are regularly enrolled at such 
39.1 	institutions are exempt. For purposes of this subdivision, "instructional materials" means 
39.2 	materials required to be used directly in the completion of the course of study, including, 
39.3 	but not limited to, interactive CDs, tapes, digital audio works, digital audiovisual works, 
39.4 	and computer software.
39.5 	Instructional materials do not include general reference works or other items 
39.6 	incidental to the instructional process such as pens, pencils, paper, folders, or computers. 
39.7 	For purposes of this subdivision, "school" and "private career school" have the meanings 
39.8 	given in subdivision 13.

39.9 	EFFECTIVE DATE. This section is effective the day following final enactment.

39.10 	Sec. 8. Minnesota Statutes 2012, section 297A.67, is amended by adding a subdivision 
39.11 	to read:
39.12 		Subd. 33.Presentations accessed as digital audio and audiovisual works.
 39.13 	The charge for a live or prerecorded presentation, such as a lecture, seminar, 
39.14 	workshop, or course, where participants access the presentation as a digital audio 
39.15 	work or digital audiovisual work, and are connected to the presentation via the 
39.16 	Internet, telecommunications equipment or other device that transfers the presentation 
39.17 	electronically, is exempt if:
39.18 	(1) participants and the presenter, during the time that participants access the 
39.19 	presentation, are able to give, receive, and discuss the presentation with each other, 
39.20 	although the amount of interaction and when in the presentation the interaction occurs 
39.21 	may be limited by the presenter; and
39.22 	(2) for those presentations where participants are given the option to attend the 
39.23 	same presentation in person:
39.24 	(i) any limitations on the amount of interaction and when it occurs during the 
39.25 	presentation are the same for those participants accessing the presentation electronically 
39.26 	as those attending in person; and
39.27 	(ii) the admission to the in person presentation is not subject to tax under this chapter.

39.28 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
39.29 	June 30, 2014.

39.30 	Sec. 9. Minnesota Statutes 2012, section 297A.68, is amended by adding a subdivision 
39.31 	to read:
39.32 		Subd. 3a.Coin-operated entertainment and amusement devices.  Coin-operated 
39.33 	entertainment and amusement devices, including, but not limited to, fortune-telling 
40.1 	machines, cranes, foosball and pool tables, video and pinball games, batting cages, rides, 
40.2 	photo or video booths, and jukeboxes, are exempt when purchased by retailers selling 
40.3 	admission to places of amusement and making available amusement devices as provided 
40.4 	in section 297A.61, subdivision 3, paragraph (g), clause (1).

40.5 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
40.6 	June 30, 2014.

40.7 	Sec. 10. Minnesota Statutes 2013 Supplement, section 297A.68, subdivision 42, 
40.8 	is amended to read:
40.9 		Subd. 42.Qualified data centers. (a) Purchases of enterprise information 
40.10 	technology equipment and computer software for use in a qualified data center, or a 
40.11 	qualified refurbished data center, are exempt. The tax on purchases exempt under this 
40.12 	paragraph must be imposed and collected as if the rate under section 297A.62, subdivision 
40.13 	1, applied, and then refunded after June 30, 2013, in the manner provided in section 
40.14 	297A.75. This exemption includes enterprise information technology equipment and 
40.15 	computer software purchased to replace or upgrade enterprise information technology 
40.16 	equipment and computer software in a qualified data center, or a qualified refurbished 
40.17 	data center.
40.18 	(b) Electricity used or consumed in the operation of a qualified data center, or a 
40.19 	qualified refurbished data center, is exempt.
40.20 	(c) For purposes of this subdivision, "qualified data center, or a qualified refurbished 
40.21 	data center," means a facility in Minnesota:
40.22 	(1) that is comprised of one or more buildings that consist in the aggregate of 
40.23 	at least 25,000 square feet, and that are located on a single parcel or on contiguous 
40.24 	parcels, where the total cost of construction or refurbishment, investment in enterprise 
40.25 	information technology equipment, and computer software is at least $30,000,000 within 
40.26 	a 48-month period;
40.27 	(2) that is constructed or substantially refurbished after June 30, 2012, where 
40.28 	"substantially refurbished" means that at least 25,000 square feet have been rebuilt or 
40.29 	modified, including:
40.30 	(i) installation of enterprise information technology equipment, environmental 
40.31 	control, computer software, and energy efficiency improvements; and
40.32 	(ii) building improvements; and
40.33 	(3) that is used to house enterprise information technology equipment, where the 
40.34 	facility has the following characteristics:
40.35 	(i) uninterruptible power supplies, generator backup power, or both;
41.1 	(ii) sophisticated fire suppression and prevention systems; and
41.2 	(iii) enhanced security. A facility will be considered to have enhanced security if it 
41.3 	has restricted access to the facility to selected personnel; permanent security guards; video 
41.4 	camera surveillance; an electronic system requiring pass codes, keycards, or biometric 
41.5 	scans, such as hand scans and retinal or fingerprint recognition; or similar security features.
41.6 	In determining whether the facility has the required square footage, the square footage 
41.7 	of the following spaces shall be included if the spaces support the operation of enterprise 
41.8 	information technology equipment: office space, meeting space, and mechanical and other 
41.9 	support facilities. For purposes of this subdivision, "computer software" includes, but is 
41.10 	not limited to, software utilized or loaded at the a qualified data center or a qualified 
41.11 	refurbished data center, including maintenance, licensing, and software customization.
41.12 	(d) For purposes of this subdivision, a "qualified refurbished data center" means an 
41.13 	existing facility that qualifies as a data center under paragraph (c), clauses (2) and (3), but 
41.14 	that is comprised of one or more buildings that consist in the aggregate of at least 25,000 
41.15 	square feet, and that are located on a single parcel or contiguous parcels, where the total 
41.16 	cost of construction or refurbishment, investment in enterprise information technology 
41.17 	equipment, and computer software is at least $50,000,000 within a 24-month period.
41.18 	(e) For purposes of this subdivision, "enterprise information technology equipment" 
41.19 	means computers and equipment supporting computing, networking, or data storage, 
41.20 	including servers and routers. It includes, but is not limited to: cooling systems, 
41.21 	cooling towers, and other temperature control infrastructure; power infrastructure for 
41.22 	transformation, distribution, or management of electricity used for the maintenance and 
41.23 	operation of a qualified data center or a qualified refurbished data center, including but 
41.24 	not limited to exterior dedicated business-owned substations, backup power generation 
41.25 	systems, battery systems, and related infrastructure; and racking systems, cabling, and 
41.26 	trays, which are necessary for the maintenance and operation of the a qualified data center
41.27 	 or a qualified refurbished data center.
41.28 	(f) A qualified data center or a qualified refurbished data center may claim the 
41.29 	exemptions in this subdivision for purchases made either within 20 years of the date of 
41.30 	its first purchase qualifying for the exemption under paragraph (a), or by June 30, 2042, 
41.31 	whichever is earlier.
41.32 	(g) The purpose of this exemption is to create jobs in the construction and data 
41.33 	center industries.
41.34 	(h) This subdivision is effective for sales and purchases made after June 30, 2012, 
41.35 	and before July 1, 2042.

42.1 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
42.2 	made after June 30, 2013.

42.3 	Sec. 11. Minnesota Statutes 2013 Supplement, section 297A.68, subdivision 44, 
42.4 	is amended to read:
42.5 		Subd. 44.Greater Minnesota business expansions. (a) Purchases and use of 
42.6 	tangible personal property or taxable services by a qualified business, as defined in section 
42.7 	116J.8738, are exempt if:
42.8 	(1) the business subsidy agreement provides that the exemption under this 
42.9 	subdivision applies;
42.10 	(2) the property or services are primarily used or consumed at the facility in greater 
42.11 	Minnesota identified in the business subsidy agreement; and
42.12 	(3) the purchase was made and delivery received during the duration of the 
42.13 	certification of the business as a qualified business under section 116J.8738.
42.14 	(b) Purchase and use of construction materials and supplies used or consumed in, 
42.15 	and equipment incorporated into, the construction of improvements to real property in 
42.16 	greater Minnesota are exempt if the improvements after completion of construction are 
42.17 	to be used in the conduct of the trade or business of the qualified business, as defined in 
42.18 	section 116J.8738. This exemption applies regardless of whether the purchases are made 
42.19 	by the business or a contractor.
42.20 	(c) The exemptions under this subdivision apply to a local sales and use tax.
42.21 	(d) The tax on purchases imposed under this subdivision must be imposed and 
42.22 	collected as if the rate under section 297A.62 applied, and then refunded in the manner 
42.23 	provided in section 297A.75. The total amount refunded for a facility over the certification 
42.24 	period is limited to the amount listed in the business subsidy agreement. No more than 
42.25 	$7,000,000 may be refunded in a fiscal year for all purchases under this subdivision. 
42.26 	Refunds must be allocated on a first-come, first-served basis. If more than $7,000,000 of 
42.27 	eligible claims are made in a fiscal year, claims by qualified businesses carry over to the 
42.28 	next fiscal year, and the commissioner must first allocate refunds to qualified businesses 
42.29 	eligible for a refund in the preceding fiscal year. Any portion of the balance of funds 
42.30 	allocated for refunds under this paragraph does not cancel and shall be carried forward to 
42.31 	and available for refunds in subsequent fiscal years.

42.32 	EFFECTIVE DATE. This section is effective the day following final enactment.

42.33 	Sec. 12. Minnesota Statutes 2013 Supplement, section 297A.70, subdivision 2, is 
42.34 	amended to read:
43.1 		Subd. 2.Sales to government. (a) All sales, except those listed in paragraph (b), 
43.2 	to the following governments and political subdivisions, or to the listed agencies or 
43.3 	instrumentalities of governments and political subdivisions, are exempt:
43.4 	(1) the United States and its agencies and instrumentalities;
43.5 	(2) school districts, local governments, the University of Minnesota, state universities, 
43.6 	community colleges, technical colleges, state academies, the Perpich Minnesota Center for 
43.7 	Arts Education, and an instrumentality of a political subdivision that is accredited as an 
43.8 	optional/special function school by the North Central Association of Colleges and Schools;
43.9 	(3) hospitals and nursing homes owned and operated by political subdivisions of 
43.10 	the state of tangible personal property and taxable services used at or by hospitals and 
43.11 	nursing homes;
43.12 	(4) the Metropolitan Council, for its purchases of vehicles and repair parts to equip 
43.13 	operations provided for in section 473.4051;
43.14 	(5) other states or political subdivisions of other states, if the sale would be exempt 
43.15 	from taxation if it occurred in that state; and
43.16 	(6) public libraries, public library systems, multicounty, multitype library systems 
43.17 	as defined in section 134.001, county law libraries under chapter 134A, state agency 
43.18 	libraries, the state library under section 480.09, and the Legislative Reference Library.
43.19 	(b) This exemption does not apply to the sales of the following products and services:
43.20 	(1) building, construction, or reconstruction materials purchased by a contractor 
43.21 	or a subcontractor as a part of a lump-sum contract or similar type of contract with a 
43.22 	guaranteed maximum price covering both labor and materials for use in the construction, 
43.23 	alteration, or repair of a building or facility;
43.24 	(2) construction materials purchased by tax exempt entities or their contractors to 
43.25 	be used in constructing buildings or facilities which will not be used principally by the 
43.26 	tax exempt entities;
43.27 	(3) the leasing of a motor vehicle as defined in section 297B.01, subdivision 11, 
43.28 	except for leases entered into by the United States or its agencies or instrumentalities;
43.29 	(4) lodging as defined under section 297A.61, subdivision 3, paragraph (g), clause 
43.30 	(2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in section 
43.31 	297A.67, subdivision 2, except for lodging, prepared food, candy, soft drinks, and alcoholic 
43.32 	beverages purchased directly by the United States or its agencies or instrumentalities; or
43.33 	(5) goods or services purchased by a local government as inputs to goods and 
43.34 	services that are generally provided by a private business and the purchases would be 
43.35 	taxable if made by a private business engaged in the same activity a liquor store, gas or 
44.1 	electric utility, solid waste hauling service, solid waste recycling service, landfill, golf 
44.2 	course, marina, health and fitness center, campground, cafe, or laundromat.
44.3 	(c) As used in this subdivision, "school districts" means public school entities and 
44.4 	districts of every kind and nature organized under the laws of the state of Minnesota, and 
44.5 	any instrumentality of a school district, as defined in section 471.59.
44.6 	(d) As used in this subdivision, "local governments" means:
44.7 	(1) home rule charter or statutory cities,;
44.8 	(2) counties, and;
44.9 	(3) townships.;
44.10 	(4) housing and redevelopment authorities under sections 469.001 to 469.047;
44.11 	(5) port authorities under sections 469.048 to 469.068;
44.12 	(6) economic development authorities under sections 469.090 to 469.1081; and
44.13 	(7) any joint powers board or organization created under section 471.59 provided 
44.14 	that at least 50 percent or more of the governmental units that are party to the joint powers 
44.15 	agreement are exempt from sales tax under clauses (1) to (6) or paragraph (a).
44.16 	(e) As used in this subdivision, "goods or services generally provided by a private 
44.17 	business" include, but are not limited to, goods or services provided by liquor stores, gas 
44.18 	and electric utilities, golf courses, marinas, health and fitness centers, campgrounds, cafes, 
44.19 	and laundromats. "Goods or services generally provided by a private business" do not 
44.20 	include housing services, sewer and water services, wastewater treatment, ambulance and 
44.21 	other public safety services, correctional services, chore or homemaking services provided 
44.22 	to elderly or disabled individuals, or road and street maintenance or lighting.

44.23 	EFFECTIVE DATE. The amendment to paragraph (d) is effective for sales and 
44.24 	purchases made after June 30, 2015. The other amendments to this section are effective 
44.25 	for sales and purchases made after June 30, 2014.

44.26 	Sec. 13. Minnesota Statutes 2013 Supplement, section 297A.70, subdivision 13, 
44.27 	is amended to read:
44.28 		Subd. 13.Fund-raising sales by or for nonprofit groups. (a) The following 
44.29 	sales by the specified organizations for fund-raising purposes are exempt, subject to the 
44.30 	limitations listed in paragraph (b):
44.31 	(1) all sales made by a nonprofit organization that exists solely for the purpose of 
44.32 	providing educational or social activities for young people primarily age 18 and under;
44.33 	(2) all sales made by an organization that is a senior citizen group or association of 
44.34 	groups if (i) in general it limits membership to persons age 55 or older; (ii) it is organized 
45.1 	and operated exclusively for pleasure, recreation, and other nonprofit purposes; and (iii) 
45.2 	no part of its net earnings inures to the benefit of any private shareholders;
45.3 	(3) the sale or use of tickets or admissions to a golf tournament held in Minnesota if 
45.4 	the beneficiary of the tournament's net proceeds qualifies as a tax-exempt organization 
45.5 	under section 501(c)(3) of the Internal Revenue Code; and
45.6 	(4) sales of candy sold for fund-raising purposes by a nonprofit organization that 
45.7 	provides educational and social activities primarily for young people age 18 and under.
45.8 	(b) The exemptions listed in paragraph (a) are limited in the following manner:
45.9 	(1) the exemption under paragraph (a), clauses (1) and (2), applies only if to the first 
45.10 	$20,000, as adjusted under paragraph (e), of the gross annual receipts of the organization 
45.11 	from fund-raising do not exceed $10,000; and
45.12 	(2) the exemption under paragraph (a), clause (1), does not apply if the sales are 
45.13 	derived from admission charges or from activities for which the money must be deposited 
45.14 	with the school district treasurer under section 123B.49, subdivision 2, or be recorded in 
45.15 	the same manner as other revenues or expenditures of the school district under section 
45.16 	123B.49, subdivision 4.
45.17 	(c) Sales of tangible personal property and services are exempt if the entire proceeds, 
45.18 	less the necessary expenses for obtaining the property or services, will be contributed to 
45.19 	a registered combined charitable organization described in section 43A.50, to be used 
45.20 	exclusively for charitable, religious, or educational purposes, and the registered combined 
45.21 	charitable organization has given its written permission for the sale. Sales that occur over 
45.22 	a period of more than 24 days per year are not exempt under this paragraph.
45.23 	(d) For purposes of this subdivision, a club, association, or other organization of 
45.24 	elementary or secondary school students organized for the purpose of carrying on sports, 
45.25 	educational, or other extracurricular activities is a separate organization from the school 
45.26 	district or school for purposes of applying the $10,000 $20,000 limit, as adjusted under 
45.27 	paragraph (e).
45.28 	(e) By December 1, 2015, and every December 1 thereafter, the commissioner shall 
45.29 	calculate and publish an adjusted exemption limit for this subdivision. The adjusted 
45.30 	limit is equal to $20,000 multiplied by the ratio of the Consumer Price Index for urban 
45.31 	consumers for the most recently available calendar year to the Consumer Price Index 
45.32 	for urban consumers for calendar year 2013, as prepared by the United States Bureau 
45.33 	of Labor Statistics.

45.34 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
45.35 	June 30, 2014.

46.1 	Sec. 14. Minnesota Statutes 2013 Supplement, section 297A.70, subdivision 14, 
46.2 	is amended to read:
46.3 		Subd. 14.Fund-raising events sponsored by nonprofit groups. (a) Sales of 
46.4 	tangible personal property or services at, and admission charges for fund-raising events 
46.5 	sponsored by, a nonprofit organization are exempt if:
46.6 	(1) all gross receipts are recorded as such, in accordance with generally accepted 
46.7 	accounting practices, on the books of the nonprofit organization; and
46.8 	(2) the entire proceeds, less the necessary expenses for the event, will be used solely 
46.9 	and exclusively for charitable, religious, or educational purposes. Exempt sales include 
46.10 	the sale of prepared food, candy, and soft drinks at the fund-raising event.
46.11 	(b) This exemption is limited in the following manner:
46.12 	(1) it does not apply to admission charges for events involving bingo or other 
46.13 	gambling activities or to charges for use of amusement devices involving bingo or other 
46.14 	gambling activities;
46.15 	(2) all gross receipts are taxable if the profits are not used solely and exclusively for 
46.16 	charitable, religious, or educational purposes;
46.17 	(3) it does not apply unless the organization keeps a separate accounting record, 
46.18 	including receipts and disbursements from each fund-raising event that documents all 
46.19 	deductions from gross receipts with receipts and other records;
46.20 	(4) it does not apply to any sale made by or in the name of a nonprofit corporation as 
46.21 	the active or passive agent of a person that is not a nonprofit corporation;
46.22 	(5) all gross receipts are taxable if fund-raising events exceed 24 days per year;
46.23 	(6) it does not apply to fund-raising events conducted on premises leased for more 
46.24 	than five days but less than 30 days; and
46.25 	(7) it does not apply if the risk of the event is not borne by the nonprofit organization 
46.26 	and the benefit to the nonprofit organization is less than the total amount of the state and 
46.27 	local tax revenues forgone by this exemption.
46.28 	(c) For purposes of this subdivision, a "nonprofit organization" means any unit of 
46.29 	government, corporation, society, association, foundation, or institution organized and 
46.30 	operated for charitable, religious, educational, civic, fraternal, and senior citizens' or 
46.31 	veterans' purposes, no part of the net earnings of which inures to the benefit of a private 
46.32 	individual.
46.33 	(d) For purposes of this subdivision, "fund-raising events" means activities of 
46.34 	limited duration, not regularly carried out in the normal course of business, that attract 
46.35 	patrons for community, social, and entertainment purposes, such as auctions, bake sales, 
46.36 	ice cream socials, block parties, carnivals, competitions, concerts, concession stands, 
47.1 	craft sales, bazaars, dinners, dances, door-to-door sales of merchandise, fairs, fashion 
47.2 	shows, festivals, galas, special event workshops, sporting activities such as marathons and 
47.3 	tournaments, and similar events. Fund-raising events do not include the operation of a 
47.4 	regular place of business in which services are provided or sales are made during regular 
47.5 	hours such as bookstores, thrift stores, gift shops, restaurants, ongoing Internet sales, 
47.6 	regularly scheduled classes, or other activities carried out in the normal course of business.

47.7 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
47.8 	June 30, 2014.

47.9 	Sec. 15. Minnesota Statutes 2012, section 297A.71, is amended by adding a 
47.10 	subdivision to read:
47.11 		Subd. 49.Donated materials for a library expansion. Building materials and 
47.12 	supplies purchased and donated by a private entity and used in the construction of an 
47.13 	addition to a city library facility are exempt.

47.14 	EFFECTIVE DATE. This section is effective for materials and supplies used in 
47.15 	construction occurring after April 1, 2014, and before July 1, 2015.

47.16 	Sec. 16. Minnesota Statutes 2013 Supplement, section 297B.01, subdivision 16, 
47.17 	is amended to read:
47.18 		Subd. 16.Sale, sells, selling, purchase, purchased, or acquired. (a) "Sale," 
47.19 	"sells," "selling," "purchase," "purchased," or "acquired" means any transfer of title of any 
47.20 	motor vehicle, whether absolutely or conditionally, for a consideration in money or by 
47.21 	exchange or barter for any purpose other than resale in the regular course of business.
47.22 	(b) Any motor vehicle utilized by the owner only by leasing such vehicle to others 
47.23 	or by holding it in an effort to so lease it, and which is put to no other use by the owner 
47.24 	other than resale after such lease or effort to lease, shall be considered property purchased 
47.25 	for resale.
47.26 	(c) The terms also shall include any transfer of title or ownership of a motor vehicle 
47.27 	by other means, for or without consideration, except that these terms shall not include:
47.28 	(1) the acquisition of a motor vehicle by inheritance from or by bequest of, or 
47.29 	transfer-on-death of title by, a decedent who owned it;
47.30 	(2) the transfer of a motor vehicle which was previously licensed in the names of 
47.31 	two or more joint tenants and subsequently transferred without monetary consideration to 
47.32 	one or more of the joint tenants;
48.1 	(3) the transfer of a motor vehicle by way of gift from a limited used vehicle dealer 
48.2 	licensed under section 168.27, subdivision 4a, to an individual, when the transfer is with 
48.3 	no monetary or other consideration or expectation of consideration and the parties to the 
48.4 	transfer submit an affidavit to that effect at the time the title transfer is recorded;
48.5 	(4) the transfer of a motor vehicle by gift between:
48.6 	(i) spouses;
48.7 	(ii) parents and a child; or
48.8 	(iii) grandparents and a grandchild;
48.9 	(5) the voluntary or involuntary transfer of a motor vehicle between a husband and 
48.10 	wife in a divorce proceeding; or
48.11 	(6) the transfer of a motor vehicle by way of a gift to an organization that is exempt 
48.12 	from federal income taxation under section 501(c)(3) of the Internal Revenue Code when 
48.13 	the motor vehicle will be used exclusively for religious, charitable, or educational purposes.

48.14 	Sec. 17. Minnesota Statutes 2012, section 297B.03, is amended to read:
48.15 	297B.03 EXEMPTIONS.
48.16 	There is specifically exempted from the provisions of this chapter and from 
48.17 	computation of the amount of tax imposed by it the following:
48.18 	(1) purchase or use, including use under a lease purchase agreement or installment 
48.19 	sales contract made pursuant to section 465.71, of any motor vehicle by the United States 
48.20 	and its agencies and instrumentalities and by any person described in and subject to the 
48.21 	conditions provided in section 297A.67, subdivision 11;
48.22 	(2) purchase or use of any motor vehicle by any person who was a resident of 
48.23 	another state or country at the time of the purchase and who subsequently becomes a 
48.24 	resident of Minnesota, provided the purchase occurred more than 60 days prior to the date 
48.25 	such person began residing in the state of Minnesota and the motor vehicle was registered 
48.26 	in the person's name in the other state or country;
48.27 	(3) purchase or use of any motor vehicle by any person making a valid election to be 
48.28 	taxed under the provisions of section 297A.90;
48.29 	(4) purchase or use of any motor vehicle previously registered in the state of 
48.30 	Minnesota when such transfer constitutes a transfer within the meaning of section 118, 
48.31 	331, 332, 336, 337, 338, 351, 355, 368, 721, 731, 1031, 1033, or 1563(a) of the Internal 
48.32 	Revenue Code;
48.33 	(5) purchase or use of any vehicle owned by a resident of another state and leased 
48.34 	to a Minnesota-based private or for-hire carrier for regular use in the transportation of 
48.35 	persons or property in interstate commerce provided the vehicle is titled in the state of 
49.1 	the owner or secured party, and that state does not impose a sales tax or sales tax on 
49.2 	motor vehicles used in interstate commerce;
49.3 	(6) purchase or use of a motor vehicle by a private nonprofit or public educational 
49.4 	institution for use as an instructional aid in automotive training programs operated by the 
49.5 	institution. "Automotive training programs" includes motor vehicle body and mechanical 
49.6 	repair courses but does not include driver education programs;
49.7 	(7) purchase of a motor vehicle by an ambulance service licensed under section 
49.8 	144E.10 when that vehicle is equipped and specifically intended for emergency response 
49.9 	or for providing ambulance service;
49.10 	(8) purchase of a motor vehicle by or for a public library, as defined in section 
49.11 	134.001, subdivision 2, as a bookmobile or library delivery vehicle;
49.12 	(9) purchase of a ready-mixed concrete truck;
49.13 	(10) purchase or use of a motor vehicle by a town home rule charter or statutory cities, 
49.14 	counties, and townships or any joint powers board or organization created under section 
49.15 	471.59 where at least 50 percent of the members of the agreement are home rule charter or 
49.16 	statutory cities, counties, or townships, for use exclusively for road maintenance, including 
49.17 	snowplows and dump trucks, but not including automobiles, vans, or pickup trucks;
49.18 	(11) purchase or use of a motor vehicle by a corporation, society, association, 
49.19 	foundation, or institution organized and operated exclusively for charitable, religious, or 
49.20 	educational purposes, except a public school, university, or library, but only if the vehicle is:
49.21 	(i) a truck, as defined in section 168.002, a bus, as defined in section 168.002, or a 
49.22 	passenger automobile, as defined in section 168.002, if the automobile is designed and 
49.23 	used for carrying more than nine persons including the driver; and
49.24 	(ii) intended to be used primarily to transport tangible personal property or 
49.25 	individuals, other than employees, to whom the organization provides service in 
49.26 	performing its charitable, religious, or educational purpose;
49.27 	(12) purchase of a motor vehicle for use by a transit provider exclusively to provide 
49.28 	transit service is exempt if the transit provider is either (i) receiving financial assistance or 
49.29 	reimbursement under section 174.24 or 473.384, or (ii) operating under section 174.29, 
49.30 	473.388, or 473.405;
49.31 	(13) purchase or use of a motor vehicle by a qualified business, as defined in section 
49.32 	469.310, located in a job opportunity building zone, if the motor vehicle is principally 
49.33 	garaged in the job opportunity building zone and is primarily used as part of or in direct 
49.34 	support of the person's operations carried on in the job opportunity building zone. The 
49.35 	exemption under this clause applies to sales, if the purchase was made and delivery 
50.1 	received during the duration of the job opportunity building zone. The exemption under 
50.2 	this clause also applies to any local sales and use tax;
50.3 	(14) purchase of a leased vehicle by the lessee who was a participant in a 
50.4 	lease-to-own program from a charitable organization that is:
50.5 	(i) described in section 501(c)(3) of the Internal Revenue Code; and
50.6 	(ii) licensed as a motor vehicle lessor under section 168.27, subdivision 4; and
50.7 	(15) purchase of a motor vehicle used exclusively as a mobile medical unit for the 
50.8 	provision of medical or dental services by a federally qualified health center, as defined 
50.9 	under title 19 of the Social Security Act, as amended by Section 4161 of the Omnibus 
50.10 	Budget Reconciliation Act of 1990.

50.11 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
50.12 	June 30, 2015.

50.13 	Sec. 18. Minnesota Statutes 2012, section 297F.09, subdivision 10, is amended to read:
50.14 		Subd. 10.Accelerated tax payment; cigarette or tobacco products distributor.
 50.15 	A cigarette or tobacco products distributor having a liability of $120,000 $250,000 or 
50.16 	more during a fiscal year ending June 30, shall remit the June liability for the next year 
50.17 	in the following manner:
50.18 	(a) Two business days before June 30 of the year, the distributor shall remit the 
50.19 	actual May liability and 90 82 percent of the estimated June liability to the commissioner 
50.20 	and file the return in the form and manner prescribed by the commissioner.
50.21 	(b) On or before August 18 of the year, the distributor shall submit a return showing 
50.22 	the actual June liability and pay any additional amount of tax not remitted in June. A 
50.23 	penalty is imposed equal to ten percent of the amount of June liability required to be paid 
50.24 	in June, less the amount remitted in June. However, the penalty is not imposed if the 
50.25 	amount remitted in June equals the lesser of:
50.26 	(1) 90 82 percent of the actual June liability; or
50.27 	(2) 90 82 percent of the preceding May's May liability.

50.28 	EFFECTIVE DATE. This section is effective for taxes remitted after May 30, 2014.

50.29 	Sec. 19. Minnesota Statutes 2012, section 297G.03, is amended by adding a 
50.30 	subdivision to read:
50.31 		Subd. 5.Microdistillery credit. (a) A qualified distiller producing distilled spirits is 
50.32 	entitled to a tax credit of $1.33 per liter on 100,000 liters sold in any fiscal year beginning 
51.1 	July 1. A qualified distiller may take the credit on the 18th day of each month, but the total 
51.2 	credit allowed may not exceed in any fiscal year the lesser of:
51.3 	(1) the liability for tax; or
51.4 	(2) $133,000.
51.5 	(b) For purposes of this subdivision, "qualified distiller" means a microdistillery 
51.6 	qualifying under section 340A.101, subdivision 17a, in the calendar year immediately 
51.7 	preceding the calendar year for which the credit under this subdivision is claimed.

51.8 	EFFECTIVE DATE. This section is effective July 1, 2014.

51.9 	Sec. 20. Minnesota Statutes 2012, section 297G.09, subdivision 9, is amended to read:
51.10 		Subd. 9.Accelerated tax payment; penalty. A person liable for tax under this 
51.11 	chapter having a liability of $120,000 $250,000 or more during a fiscal year ending June 
51.12 	30, shall remit the June liability for the next year in the following manner:
51.13 	(a) Two business days before June 30 of the year, the taxpayer shall remit the actual 
51.14 	May liability and 90 82 percent of the estimated June liability to the commissioner and file 
51.15 	the return in the form and manner prescribed by the commissioner.
51.16 	(b) On or before August 18 of the year, the taxpayer shall submit a return showing 
51.17 	the actual June liability and pay any additional amount of tax not remitted in June. A 
51.18 	penalty is imposed equal to ten percent of the amount of June liability required to be paid 
51.19 	in June less the amount remitted in June. However, the penalty is not imposed if the 
51.20 	amount remitted in June equals the lesser of:
51.21 	(1) 90 82 percent of the actual June liability; or
51.22 	(2) 90 82 percent of the preceding May liability.

51.23 	EFFECTIVE DATE. This section is effective for taxes remitted after May 30, 2014.

51.24 	Sec. 21. Laws 1980, chapter 511, section 1, subdivision 2, as amended by Laws 1991, 
51.25 	chapter 291, article 8, section 22, Laws 1998, chapter 389, article 8, section 25, Laws 
51.26 	2003, First Special Session chapter 21, article 8, section 11, and Laws 2008, chapter 
51.27 	154, article 5, section 2, is amended to read:
51.28 		Subd. 2. (a) Notwithstanding Minnesota Statutes, section 477A.016, or any 
51.29 	other law, ordinance, or city charter provision to the contrary, the city of Duluth may, 
51.30 	by ordinance, impose an additional sales tax of up to two and one-quarter one and 
51.31 	three-quarter percent on sales transactions which are described in Minnesota Statutes 2000, 
51.32 	section 297A.01, subdivision 3, clause (c). When the city council determines that the taxes 
51.33 	imposed under this subdivision and under Laws 1998, chapter 389, article 8, section 26, at a 
52.1 	rate of one-half of one percent have produced revenue sufficient to pay (1) the debt service 
52.2 	on bonds in a principal amount of $8,000,000 issued for capital improvements to the 
52.3 	Duluth Entertainment and Convention Center, and (2) debt service on outstanding bonds 
52.4 	originally issued in the principal amount of $4,970,000 to finance capital improvements to 
52.5 	the Great Lakes Aquarium since the imposition of the taxes at the rate of one and one-half 
52.6 	percent, the rate of the tax under this subdivision is reduced by one-half of one percent.
52.7 	 The imposition of this tax shall not be subject to voter referendum under either state law 
52.8 	or city charter provisions. When the city council determines that the taxes imposed under 
52.9 	this subdivision paragraph at a rate of three-quarters of one percent and other sources of 
52.10 	revenue produce revenue sufficient to pay debt service on bonds in the principal amount 
52.11 	of $40,285,000 plus issuance and discount costs, issued for capital improvements at the 
52.12 	Duluth Entertainment and Convention Center, which include a new arena, the rate of tax 
52.13 	under this subdivision must be reduced by three-quarters of one percent.
52.14 	(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes, 
52.15 	section 477A.016, or any other law, ordinance, or city charter provision to the contrary, 
52.16 	the city of Duluth may, by ordinance, impose an additional sales tax of up to one-half of 
52.17 	one percent on sales transactions which are described in Minnesota Statutes 2000, section 
52.18 	297A.01, subdivision 3, clause (c). This tax expires when the city council determines 
52.19 	that the tax imposed under this paragraph, along with the tax imposed under section 
52.20 	22, paragraph (b), has produced revenues sufficient to pay the debt service on bonds 
52.21 	in a principal amount of no more than $18,000,000, plus issuance and discount costs, 
52.22 	to finance capital improvements to public facilities to support tourism and recreational 
52.23 	activities in that portion of the city west of 34th Avenue West.

52.24 	EFFECTIVE DATE. This section is effective the day after the governing body of 
52.25 	the city of Duluth and its chief clerical officer comply with Minnesota Statutes, section 
52.26 	645.021, subdivisions 2 and 3.

52.27 	Sec. 22. Laws 1980, chapter 511, section 2, as amended by Laws 1998, chapter 389, 
52.28 	article 8, section 26, and Laws 2003, First Special Session chapter 21, article 8, section 
52.29 	12, is amended to read:
52.30 	Sec. 22. CITY OF DULUTH; TAX ON RECEIPTS BY HOTELS AND 
52.31 	MOTELS.
 52.32 	(a) Notwithstanding Minnesota Statutes, section 477A.016, or any other law, or 
52.33 	ordinance, or city charter provision to the contrary, the city of Duluth may, by ordinance, 
52.34 	impose an additional tax of one and one-half percent upon the gross receipts from the 
52.35 	sale of lodging for periods of less than 30 days in hotels and motels located in the city. 
53.1 	When the city council determines that the taxes imposed under this section and section 25 
53.2 	at a rate of one-half of one percent have produced revenue sufficient to pay (1) the debt 
53.3 	service on bonds in a principal amount of $8,000,000 issued for capital improvements 
53.4 	for the Duluth Entertainment and Convention Center, and (2) the debt service on 
53.5 	outstanding bonds originally issued in the principal amount of $4,970,000 to finance 
53.6 	capital improvements to the Great Lakes Aquarium since the imposition of the taxes at the 
53.7 	rate of one and one-half percent, the rate of the tax under this section is reduced to one 
53.8 	percent. The tax shall be collected in the same manner as the tax set forth in the Duluth 
53.9 	city charter, section 54(d), paragraph one. The imposition of this tax shall not be subject to 
53.10 	voter referendum under either state law or city charter provisions.
53.11 	(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes, 
53.12 	section 477A.016, or any other law, ordinance, or city charter provision to the contrary, 
53.13 	the city of Duluth may, by ordinance, impose an additional sales tax of up to one-half 
53.14 	of one percent on the gross receipts from the sale of lodging for periods of less than 
53.15 	30 days in hotels and motels located in the city. This tax expires when the city council 
53.16 	first determines that the tax imposed under this paragraph, along with the tax imposed 
53.17 	under section 21, paragraph (b), has produced revenues sufficient to pay the debt 
53.18 	service on bonds in a principal amount of no more than $18,000,000, plus issuance and 
53.19 	discount costs, to finance capital improvements to public facilities to support tourism and 
53.20 	recreational activities in that portion of the city west of 34th Avenue West.

53.21 	EFFECTIVE DATE. This section is effective the day after the governing body of 
53.22 	the city of Duluth and its chief clerical officer comply with Minnesota Statutes, section 
53.23 	645.021, subdivisions 2 and 3.

53.24 	Sec. 23. Laws 2005, First Special Session chapter 3, article 5, section 38, subdivision 
53.25 	4, is amended to read:
53.26 		Subd. 4.Termination of taxes. The taxes imposed under this section expire at the 
53.27 	earlier of (1) ten 15 years after the taxes are first imposed, or (2) when the city council first 
53.28 	determines that the amount of revenues raised to pay for the projects under subdivision 2, 
53.29 	shall meet or exceed the sum of $15,000,000. Any funds remaining after completion of 
53.30 	the projects may be placed in the general fund of the city.

53.31 	EFFECTIVE DATE. This section is effective the day after compliance by the 
53.32 	governing body of the city of Albert Lea and its chief clerical officer with Minnesota 
53.33 	Statutes, section 645.021, subdivisions 2 and 3.

54.1 	Sec. 24. Laws 2006, chapter 259, article 3, section 10, subdivision 3, is amended to read:
54.2 		Subd. 3.Use of revenues. (a) Revenues received from the taxes authorized by 
54.3 	subdivisions 1 and 2 must be used to pay the cost of collecting and administering the tax 
54.4 	and to finance the acquisition and betterment of water and wastewater facilities to serve the 
54.5 	cities of Brainerd and Baxter, building and equipping a fire substation, as approved by the 
54.6 	voters at the referendum authorizing the tax. Authorized costs include, but are not limited 
54.7 	to, acquiring property and paying construction and engineering costs related to the projects.
54.8 	(b) In addition to the projects authorized in paragraph (a), the city of Baxter may, 
54.9 	if approved by the voters at an election under subdivision 5, paragraph (b), allocate up 
54.10 	to an additional $32,000,000 of the revenues received from the taxes authorized by 
54.11 	subdivisions 1 and 2 to a capital infrastructure fund. Money from this fund may only be 
54.12 	used to finance (1) sanitary sewer, storm sewer, and water projects, and (2) transportation 
54.13 	safety improvements.

54.14 	EFFECTIVE DATE. This section is effective the day after the governing body of 
54.15 	the city of Baxter and its chief clerical officer comply with Minnesota Statutes, section 
54.16 	645.021, subdivisions 2 and 3.

54.17 	Sec. 25. Laws 2006, chapter 259, article 3, section 10, subdivision 4, is amended to read:
54.18 		Subd. 4.Bonds. (a) The city of Baxter, pursuant to the approval of the voters at the 
54.19 	November 2, 2004, referendum authorizing the imposition of the taxes in this section, may 
54.20 	issue general obligation bonds of the city, in one or more series, in the aggregate principal 
54.21 	amount not to exceed $15,000,000 to finance the projects listed in subdivision 3, paragraph 
54.22 	(a). The debt represented by the bonds is not included in computing any debt limitations 
54.23 	applicable to the city, and the levy of taxes required by Minnesota Statutes, section 475.61, 
54.24 	to pay the principal of and interest on the bonds is not subject to any levy limitation or 
54.25 	included in computing or applying any levy limitation applicable to the city of Baxter.
54.26 	(b) The city of Baxter, pursuant to the approval of the voters at the 2014 general 
54.27 	election to extend the tax under this section, may issue general obligation bonds of the 
54.28 	city, in one or more series, in the aggregate principal amount not to exceed $32,000,000 
54.29 	plus an amount equal to the costs of issuance of the bonds to finance the projects listed 
54.30 	in subdivision 3, paragraph (b). The debt represented by the bonds is not included in 
54.31 	computing any debt limitations applicable to the city, and the levy of taxes required by 
54.32 	Minnesota Statutes, section 475.61, to pay the principal of and interest on the bonds is not 
54.33 	subject to any levy limitation or included in computing or applying any levy limitation 
54.34 	applicable to the city of Baxter.

55.1 	EFFECTIVE DATE. This section is effective the day following final enactment.

55.2 	Sec. 26. Laws 2006, chapter 259, article 3, section 10, subdivision 5, is amended to read:
55.3 		Subd. 5.Termination of taxes. (a) The taxes imposed under subdivisions 1 and 2 
55.4 	expire at the earlier of a date 12 years after the imposition of the tax or when the Baxter 
55.5 	City Council first determines that the amount of revenues raised from the taxes to pay for 
55.6 	the projects under subdivision 3 equals or exceeds $15,000,000 plus any interest on bonds 
55.7 	issued for the projects under subdivision 4, paragraph (a). Any funds remaining after the 
55.8 	expiration of the taxes and retirement of the bonds shall be placed in a capital project fund 
55.9 	of the city of Baxter. The taxes imposed under subdivisions 1 and 2 may expire at an 
55.10 	earlier time if the city of Baxter so determines by ordinance.
55.11 	(b) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any 
55.12 	other contrary provision of law, ordinance, or city charter, the city of Baxter may, by 
55.13 	ordinance, extend the taxes authorized under subdivisions 1 and 2 beyond the termination 
55.14 	date in paragraph (a) if approved by the voters of the city at a general election held in 
55.15 	2014. The question put to the voters must indicate that an affirmative vote would extend 
55.16 	the imposition of the taxes until 2031 or until an additional $32,000,000, plus an amount 
55.17 	equal to interest and issuance costs associated with bonds issued under subdivision 4, 
55.18 	paragraph (b), above the initial amount authorized to pay for $15,000,000 in bonds and 
55.19 	associated bond cost and projects, listed in subdivision 3, paragraph (a), is raised. If 
55.20 	extended under this paragraph, the taxes authorized in subdivisions 1 and 2 will terminate 
55.21 	at the earlier of (1) when an additional $32,000,000, plus an amount equal to interest and 
55.22 	issuance costs associated with bonds issued under subdivision 4, paragraph (b), above the 
55.23 	amount authorized under paragraph (a), is raised, or (2) December 31, 2031.

55.24 	EFFECTIVE DATE. This section is effective the day after the governing body of 
55.25 	the city of Baxter and its chief clerical officer comply with Minnesota Statutes, section 
55.26 	645.021, subdivisions 2 and 3.

55.27 	Sec. 27. Laws 2006, chapter 259, article 3, section 11, subdivision 3, is amended to read:
55.28 		Subd. 3.Use of revenues. (a) Revenues received from the taxes authorized by 
55.29 	subdivisions 1 and 2 must be used to pay the cost of collecting and administering the tax 
55.30 	and to finance all or part of the costs of constructing upgraded water and wastewater 
55.31 	treatment facilities to serve the cities of Brainerd and Baxter, water infrastructure 
55.32 	improvements, and trail development, contingent on approval by Brainerd voters at the 
55.33 	November 7, 2006, referendum. Authorized costs include, but are not limited to, acquiring 
55.34 	property and paying construction and engineering costs related to the projects.
56.1 	(b) In addition to the projects authorized in paragraph (a), the city of Brainerd may, 
56.2 	if approved by the voters at an election under subdivision 5, paragraph (b), spend up to an 
56.3 	additional $15,000,000 from revenues raised from the taxes authorized in subdivisions 1 
56.4 	and 2 on the following projects:
56.5 	(1) an upgraded waste treatment facility jointly serving the cities of Brainerd and 
56.6 	Baxter;
56.7 	(2) with any funds not needed for the project in clause (1), water infrastructure 
56.8 	improvements; and
56.9 	(3) with any funds not needed for the projects in clauses (1) and (2), trail 
56.10 	improvements.

56.11 	EFFECTIVE DATE. This section is effective the day after the governing body of 
56.12 	the city of Brainerd and its chief clerical officer comply with Minnesota Statutes, section 
56.13 	645.021, subdivisions 2 and 3.

56.14 	Sec. 28. Laws 2006, chapter 259, article 3, section 11, subdivision 4, is amended to read:
56.15 		Subd. 4.Bonds. The city of Brainerd, contingent on approval of the voters at 
56.16 	the November 7, 2006, referendum authorizing the imposition of taxes in this section, 
56.17 	may issue general obligation bonds of the city, in one or more series, in the aggregate 
56.18 	principal amount not to exceed $22,030,000 to finance the projects listed in subdivision 3, 
56.19 	paragraph (a). The debt represented by the bonds is not included in computing any debt 
56.20 	limitations applicable to Brainerd, and the levy of taxes required by Minnesota Statutes, 
56.21 	section 475.61, to pay the principal and interest on the bonds is not subject to any levy 
56.22 	limitation or included in computing any levy limitation applicable to the city of Brainerd.

56.23 	EFFECTIVE DATE. This section is effective the day following final enactment.

56.24 	Sec. 29. Laws 2006, chapter 259, article 3, section 11, subdivision 5, is amended to read:
56.25 		Subd. 5.Termination of taxes. (a) The taxes imposed under subdivisions 1 and 
56.26 	2 expire at the earlier of a date 12 years after the imposition of the tax or when the city 
56.27 	council first determines that the amount of revenues raised from the taxes to pay for 
56.28 	projects under subdivision 3 equals or exceeds $22,030,000 plus any interest on bonds 
56.29 	issued for the projects under subdivision 4. Any funds remaining after the expiration of 
56.30 	the taxes and retirement of the bonds shall be placed in a capital project fund of the city of 
56.31 	Brainerd. The taxes imposed under subdivision 1 and 2 may expire at an earlier time if the 
56.32 	city of Brainerd so determines by ordinance.
57.1 	(b) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any 
57.2 	other contrary provision of law, ordinance, or city charter, the city of Brainerd may, by 
57.3 	ordinance, extend the taxes authorized under subdivisions 1 and 2 beyond the termination 
57.4 	date in paragraph (a) if approved by the voters of the city at a general election held in 2014. 
57.5 	The question put to the voters must indicate that an affirmative vote would extend the 
57.6 	imposition of the taxes for an additional 12 years or until an additional $15,000,000 above 
57.7 	the initial amount authorized to pay for $22,030,000 in bonds is raised. If extended under 
57.8 	this paragraph, the taxes authorized in subdivisions 1 and 2 will terminate at the earlier of 
57.9 	(1) when an additional $15,000,000 above the amount authorized under paragraph (a) is 
57.10 	raised, or (2) 12 years after the taxes would have expired under paragraph (a).

57.11 	EFFECTIVE DATE. This section is effective the day after the governing body of 
57.12 	the city of Brainerd and its chief clerical officer comply with Minnesota Statutes, section 
57.13 	645.021, subdivisions 2 and 3.

57.14 	Sec. 30. Laws 2013, chapter 143, article 8, section 37, the effective date, is amended to 
57.15 	read:

57.16 	EFFECTIVE DATE. This section is effective retroactively to capital investments 
57.17 	made and jobs created after December 31, 2012, and effective retroactively for sales and 
57.18 	purchases made after December 31, 2012, and before July 1, 2019. Applications for 
57.19 	refunds on purchases exempt under this section must not be filed before June 30, 2015.

57.20 	EFFECTIVE DATE. This section is effective the day following final enactment.

57.21 	Sec. 31. VALIDATION OF PRIOR ACT; AUTHORIZATION.
 57.22 	Notwithstanding the time limits in Minnesota Statutes, section 645.021, the city of 
57.23 	Albert Lea may approve Laws 2005, First Special Session chapter 3, article 5, section 38, 
57.24 	as amended by Laws 2006, chapter 259, article 3, section 6, and file its approval with the 
57.25 	secretary of state by June 15, 2014. If approved as authorized under this section, actions 
57.26 	undertaken by the city pursuant to the approval of the voters on November 8, 2005, and 
57.27 	otherwise in accordance with Laws 2005, First Special Session chapter 3, article 5, section 
57.28 	38, as amended by Laws 2006, chapter 259, article 3, section 6, are validated.

57.29 	EFFECTIVE DATE. This section is effective the day following final enactment.

57.30 	Sec. 32. TEMPORARY SALES TAX AMNESTY; ANIMAL SHELTERS.
 58.1 	(a) Notwithstanding any other law to the contrary, amnesty is provided to any 
58.2 	nonprofit organization that is primarily engaged in the business of rescuing, sheltering, and 
58.3 	finding homes for unwanted animals if the organization registers and begins collecting the 
58.4 	sales and use tax within four months of the day following enactment of this provision. This 
58.5 	amnesty applies to qualifying organizations that are currently not registered to collect the 
58.6 	tax under Minnesota Statutes, chapter 297A, and to qualifying organizations that received 
58.7 	notice of the commencement of an audit and the audit is not yet finally resolved, provided 
58.8 	that the organization was not registered to collect sales and use tax at the time of the audit.
58.9 	(b) The amnesty shall preclude assessment for uncollected and unpaid sales and use 
58.10 	tax under Minnesota Statutes, chapter 297A, and to local taxes subject to Minnesota 
58.11 	Statutes, section 297A.99, together with penalty and interest for sales made during the 
58.12 	period the qualifying organization was not registered in this state. The amnesty also 
58.13 	applies to unpaid use tax on sales made by the organization during the same period. The 
58.14 	amnesty is not available for sales and use taxes already paid or remitted to the state or to 
58.15 	sales taxes already collected by the seller.

58.16 	EFFECTIVE DATE. This section is effective the day following final enactment.

58.17 	Sec. 33. TEMPORARY SALES TAX AMNESTY; AGRICULTURAL CENTERS.
 58.18 	(a) Notwithstanding any other law to the contrary, amnesty is provided on unpaid 
58.19 	sales tax attributable only to sales of tickets or admissions to a performance or event on 
58.20 	the premises of a tax-exempt organization under section 501(c)(3) of the Internal Revenue 
58.21 	Code, provided that the nonprofit organization is primarily engaged in the business of 
58.22 	preserving Minnesota's rural agricultural heritage and educating the public about rural 
58.23 	history and how farms in Minnesota helped to provide food for the nation and the world, 
58.24 	and begins collecting the sales and use tax on sales of tickets or admissions by July 1, 2014.
58.25 	(b) An organization qualifies for an exemption under this section if:
58.26 	(1) the premises of the organization is at least 115 acres;
58.27 	(2) the performances or events were sponsored and conducted exclusively by 
58.28 	volunteers, employees of the nonprofit organization, or members of the board of directors 
58.29 	of the organization; and
58.30 	(3) the performances or events were consistent with the organization's purposes 
58.31 	under section 501(c)(3) of the Internal Revenue Code.
58.32 	(c) This amnesty applies to qualifying organizations that received notice of the 
58.33 	commencement of an audit and the audit is not yet finally resolved.
58.34 	(d) Amnesty granted under this section precludes assessment for uncollected and 
58.35 	unpaid sales and use tax under Minnesota Statutes, chapter 297A, and to local taxes 
59.1 	subject to Minnesota Statutes, section 297A.99, together with penalty and interest for sales 
59.2 	made during the period beginning December 31, 2008, and ending December 31, 2011. 
59.3 	The amnesty is not available for sales and use taxes already paid or remitted to the state or 
59.4 	to sales taxes already collected by the seller.

59.5 	EFFECTIVE DATE. This section is effective the day following final enactment.

59.6 	ARTICLE 4
59.7 	INCOME AND ESTATE TAXES

59.8 	Section 1. Minnesota Statutes 2013 Supplement, section 116J.8737, subdivision 2, as 
59.9 	amended by Laws 2014, chapter 150, article 1, section 2, is amended to read:
59.10 		Subd. 2.Certification of qualified small businesses. (a) Businesses may apply 
59.11 	to the commissioner for certification as a qualified small business or qualified greater 
59.12 	Minnesota small business for a calendar year. The application must be in the form 
59.13 	and be made under the procedures specified by the commissioner, accompanied by an 
59.14 	application fee of $150. Application fees are deposited in the small business investment 
59.15 	tax credit administration account in the special revenue fund. The application for 
59.16 	certification for 2010 must be made available on the department's Web site by August 1, 
59.17 	2010. Applications for subsequent years' certification must be made available on the 
59.18 	department's Web site by November 1 of the preceding year.
59.19 	(b) Within 30 days of receiving an application for certification under this subdivision, 
59.20 	the commissioner must either certify the business as satisfying the conditions required 
59.21 	of a qualified small business or qualified greater Minnesota small business, request 
59.22 	additional information from the business, or reject the application for certification. If 
59.23 	the commissioner requests additional information from the business, the commissioner 
59.24 	must either certify the business or reject the application within 30 days of receiving the 
59.25 	additional information. If the commissioner neither certifies the business nor rejects 
59.26 	the application within 30 days of receiving the original application or within 30 days of 
59.27 	receiving the additional information requested, whichever is later, then the application is 
59.28 	deemed rejected, and the commissioner must refund the $150 application fee. A business 
59.29 	that applies for certification and is rejected may reapply.
59.30 	(c) To receive certification as a qualified small business, a business must satisfy 
59.31 	all of the following conditions:
59.32 	(1) the business has its headquarters in Minnesota;
59.33 	(2) at least 51 percent of the business's employees are employed in Minnesota, and 
59.34 	51 percent of the business's total payroll is paid or incurred in the state;
60.1 	(3) the business is engaged in, or is committed to engage in, innovation in Minnesota 
60.2 	in one of the following as its primary business activity:
60.3 	(i) using proprietary technology to add value to a product, process, or service in a 
60.4 	qualified high-technology field;
60.5 	(ii) researching or developing a proprietary product, process, or service in a qualified 
60.6 	high-technology field; or
60.7 	(iii) researching or developing a proprietary product, process, or service in the fields 
60.8 	of agriculture, tourism, forestry, mining, manufacturing, or transportation; or
60.9 	(iii) (iv) researching, developing, or producing a new proprietary technology for use 
60.10 	in the fields of agriculture, tourism, forestry, mining, manufacturing, or transportation;
60.11 	(4) other than the activities specifically listed in clause (3), the business is not 
60.12 	engaged in real estate development, insurance, banking, lending, lobbying, political 
60.13 	consulting, information technology consulting, wholesale or retail trade, leisure, 
60.14 	hospitality, transportation, construction, ethanol production from corn, or professional 
60.15 	services provided by attorneys, accountants, business consultants, physicians, or health 
60.16 	care consultants;
60.17 	(5) the business has fewer than 25 employees;
60.18 	(6) the business must pay its employees annual wages of at least 175 percent of the 
60.19 	federal poverty guideline for the year for a family of four and must pay its interns annual 
60.20 	wages of at least 175 percent of the federal minimum wage used for federally covered 
60.21 	employers, except that this requirement must be reduced proportionately for employees 
60.22 	and interns who work less than full-time, and does not apply to an executive, officer, or 
60.23 	member of the board of the business, or to any employee who owns, controls, or holds 
60.24 	power to vote more than 20 percent of the outstanding securities of the business;
60.25 	(7) the business has (i) not been in operation for more than ten years, or (ii) not 
60.26 	been in operation for more than 20 years if the business is engaged in the research, 
60.27 	development, or production of medical devices or pharmaceuticals for which United 
60.28 	States Food and Drug Administration approval is required for use in the treatment or 
60.29 	diagnosis of a disease or condition;
60.30 	(8) the business has not previously received private equity investments of more 
60.31 	than $4,000,000;
60.32 	(9) the business is not an entity disqualified under section 80A.50, paragraph (b), 
60.33 	clause (3); and
60.34 	(10) the business has not issued securities that are traded on a public exchange.
60.35 	(d) In applying the limit under paragraph (c), clause (5), the employees in all members 
60.36 	of the unitary business, as defined in section 290.17, subdivision 4, must be included.
61.1 	(e) In order for a qualified investment in a business to be eligible for tax credits:
61.2 	(1) the business must have applied for and received certification for the calendar 
61.3 	year in which the investment was made prior to the date on which the qualified investment 
61.4 	was made;
61.5 	(2) the business must not have issued securities that are traded on a public exchange;
61.6 	(3) the business must not issue securities that are traded on a public exchange within 
61.7 	180 days after the date on which the qualified investment was made; and
61.8 	(4) the business must not have a liquidation event within 180 days after the date on 
61.9 	which the qualified investment was made.
61.10 	(f) The commissioner must maintain a list of qualified small businesses and qualified 
61.11 	greater Minnesota businesses certified under this subdivision for the calendar year and 
61.12 	make the list accessible to the public on the department's Web site.
61.13 	(g) For purposes of this subdivision, the following terms have the meanings given:
61.14 	(1) "qualified high-technology field" includes aerospace, agricultural processing, 
61.15 	renewable energy, energy efficiency and conservation, environmental engineering, food 
61.16 	technology, cellulosic ethanol, information technology, materials science technology, 
61.17 	nanotechnology, telecommunications, biotechnology, medical device products, 
61.18 	pharmaceuticals, diagnostics, biologicals, chemistry, veterinary science, and similar fields; 
61.19 	(2) "proprietary technology" means the technical innovations that are unique and 
61.20 	legally owned or licensed by a business and includes, without limitation, those innovations 
61.21 	that are patented, patent pending, a subject of trade secrets, or copyrighted; and
61.22 	(3) "greater Minnesota" means the area of Minnesota located outside of the 
61.23 	metropolitan area as defined in section 473.121, subdivision 2.
61.24 	(h) To receive certification as a qualified greater Minnesota business, a business must 
61.25 	satisfy all of the requirements of paragraph (c) and must satisfy the following conditions:
61.26 	(1) the business has its headquarters in greater Minnesota; and
61.27 	(2) at least 51 percent of the business's employees are employed in greater Minnesota, 
61.28 	and 51 percent of the business's total payroll is paid or incurred in greater Minnesota.

61.29 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
61.30 	December 31, 2013.

61.31 	Sec. 2. Minnesota Statutes 2012, section 116J.8737, is amended by adding a 
61.32 	subdivision to read:
61.33 		Subd. 5a.Promotion of credit in greater Minnesota. (a) By July 1, 2014, 
61.34 	the commissioner shall develop a plan to increase awareness of and use of the credit 
61.35 	for investments in qualified greater Minnesota businesses and minority-owned and 
62.1 	women-owned qualified small businesses with the goal that the portion of the credit 
62.2 	reserved for investments in qualified greater Minnesota businesses and minority-owned 
62.3 	and women-owned qualified small businesses is allocated in full to those investments.
62.4 	(b) Beginning with the legislative report due on March 15, 2015, under subdivision 
62.5 	9, the commissioner shall report on its plan under this subdivision and the results achieved.

62.6 	Sec. 3. Minnesota Statutes 2013 Supplement, section 270B.01, subdivision 8, is 
62.7 	amended to read:
62.8 		Subd. 8.Minnesota tax laws. For purposes of this chapter only, unless expressly 
62.9 	stated otherwise, "Minnesota tax laws" means:
62.10 	(1) the taxes, refunds, and fees administered by or paid to the commissioner under 
62.11 	chapters 115B, 289A (except taxes imposed under sections 298.01, 298.015, and 298.24), 
62.12 	290, 290A, 291, 292, 295, 297A, 297B, 297H, and 403, or any similar Indian tribal tax 
62.13 	administered by the commissioner pursuant to any tax agreement between the state and 
62.14 	the Indian tribal government, and includes any laws for the assessment, collection, and 
62.15 	enforcement of those taxes, refunds, and fees; and
62.16 	(2) section 273.1315.

62.17 	EFFECTIVE DATE. This section is effective the day following final enactment.

62.18 	Sec. 4. Minnesota Statutes 2013 Supplement, section 270B.03, subdivision 1, is 
62.19 	amended to read:
62.20 		Subdivision 1.Who may inspect. Returns and return information must, on request, 
62.21 	be made open to inspection by or disclosure to the data subject. The request must be made 
62.22 	in writing or in accordance with written procedures of the chief disclosure officer of the 
62.23 	department that have been approved by the commissioner to establish the identification 
62.24 	of the person making the request as the data subject. For purposes of this chapter, the 
62.25 	following are the data subject:
62.26 	(1) in the case of an individual return, that individual;
62.27 	(2) in the case of an income tax return filed jointly, either of the individuals with 
62.28 	respect to whom the return is filed;
62.29 	(3) in the case of a return filed by a business entity, an officer of a corporation, 
62.30 	a shareholder owning more than one percent of the stock, or any shareholder of an S 
62.31 	corporation; a general partner in a partnership; the owner of a sole proprietorship; a 
62.32 	member or manager of a limited liability company; a participant in a joint venture; the 
62.33 	individual who signed the return on behalf of the business entity; or an employee who is 
63.1 	responsible for handling the tax matters of the business entity, such as the tax manager, 
63.2 	bookkeeper, or managing agent;
63.3 	(4) in the case of an estate return:
63.4 	(i) the personal representative or trustee of the estate; and
63.5 	(ii) any beneficiary of the estate as shown on the federal estate tax return;
63.6 	(5) in the case of a trust return:
63.7 	(i) the trustee or trustees, jointly or separately; and
63.8 	(ii) any beneficiary of the trust as shown in the trust instrument;
63.9 	(6) if liability has been assessed to a transferee under section 270C.58, subdivision 
63.10 	1, the transferee is the data subject with regard to the returns and return information 
63.11 	relating to the assessed liability;
63.12 	(7) in the case of an Indian tribal government or an Indian tribal government-owned 
63.13 	entity,
63.14 	(i) the chair of the tribal government, or
63.15 	(ii) any person authorized by the tribal government; and
63.16 	(8) in the case of a successor as defined in section 270C.57, subdivision 1, paragraph 
63.17 	(b), the successor is the data subject and information may be disclosed as provided by 
63.18 	section 270C.57, subdivision 4; and.
63.19 	(9) in the case of a gift return, the donor.

63.20 	EFFECTIVE DATE. This section is effective the day following final enactment.

63.21 	Sec. 5. Minnesota Statutes 2012, section 289A.02, subdivision 7, as amended by Laws 
63.22 	2014, chapter 150, article 1, section 7, is amended to read:
63.23 		Subd. 7.Internal Revenue Code. Unless specifically defined otherwise, "Internal 
63.24 	Revenue Code" means the Internal Revenue Code of 1986, as amended through December 
63.25 	20, 2013 March 26, 2014.

63.26 	EFFECTIVE DATE. This section is effective retroactively for taxable years 
63.27 	beginning after December 31, 2012.

63.28 	Sec. 6. Minnesota Statutes 2013 Supplement, section 290.01, subdivision 19, as 
63.29 	amended by Laws 2014, chapter 150, article 1, section 9, is amended to read:
63.30 		Subd. 19.Net income. The term "net income" means the federal taxable income, 
63.31 	as defined in section 63 of the Internal Revenue Code of 1986, as amended through the 
63.32 	date named in this subdivision, incorporating the federal effective dates of changes to the 
63.33 	Internal Revenue Code and any elections made by the taxpayer in accordance with the 
64.1 	Internal Revenue Code in determining federal taxable income for federal income tax 
64.2 	purposes, and with the modifications provided in subdivisions 19a to 19f.
64.3 	In the case of a regulated investment company or a fund thereof, as defined in section 
64.4 	851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment 
64.5 	company taxable income as defined in section 852(b)(2) of the Internal Revenue Code, 
64.6 	except that:
64.7 	(1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal 
64.8 	Revenue Code does not apply;
64.9 	(2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal 
64.10 	Revenue Code must be applied by allowing a deduction for capital gain dividends and 
64.11 	exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal 
64.12 	Revenue Code; and
64.13 	(3) the deduction for dividends paid must also be applied in the amount of any 
64.14 	undistributed capital gains which the regulated investment company elects to have treated 
64.15 	as provided in section 852(b)(3)(D) of the Internal Revenue Code.
64.16 	The net income of a real estate investment trust as defined and limited by section 
64.17 	856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust 
64.18 	taxable income as defined in section 857(b)(2) of the Internal Revenue Code.
64.19 	The net income of a designated settlement fund as defined in section 468B(d) of 
64.20 	the Internal Revenue Code means the gross income as defined in section 468B(b) of the 
64.21 	Internal Revenue Code.
64.22 	The Internal Revenue Code of 1986, as amended through December 20, 2013 March 
64.23 	26, 2014, shall be in effect for taxable years beginning after December 31, 1996.
64.24 	Except as otherwise provided, references to the Internal Revenue Code in 
64.25 	subdivisions 19 to 19f mean the code in effect for purposes of determining net income for 
64.26 	the applicable year.

64.27 	EFFECTIVE DATE. This section is effective the day following final enactment, 
64.28 	except the changes incorporated by federal changes are effective retroactively at the same 
64.29 	time as the changes were effective for federal purposes.

64.30 	Sec. 7. Minnesota Statutes 2013 Supplement, section 290.01, subdivision 19b, as 
64.31 	amended by Laws 2014, chapter 150, article 1, section 11, is amended to read:
64.32 		Subd. 19b.Subtractions from federal taxable income. For individuals, estates, 
64.33 	and trusts, there shall be subtracted from federal taxable income:
65.1 	(1) net interest income on obligations of any authority, commission, or 
65.2 	instrumentality of the United States to the extent includable in taxable income for federal 
65.3 	income tax purposes but exempt from state income tax under the laws of the United States;
65.4 	(2) if included in federal taxable income, the amount of any overpayment of income 
65.5 	tax to Minnesota or to any other state, for any previous taxable year, whether the amount 
65.6 	is received as a refund or as a credit to another taxable year's income tax liability;
65.7 	(3) the amount paid to others, less the amount used to claim the credit allowed under 
65.8 	section 290.0674, not to exceed $1,625 for each qualifying child in grades kindergarten 
65.9 	to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and 
65.10 	transportation of each qualifying child in attending an elementary or secondary school 
65.11 	situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a 
65.12 	resident of this state may legally fulfill the state's compulsory attendance laws, which 
65.13 	is not operated for profit, and which adheres to the provisions of the Civil Rights Act 
65.14 	of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or 
65.15 	tuition as defined in section 290.0674, subdivision 1, clause (1). As used in this clause, 
65.16 	"textbooks" includes books and other instructional materials and equipment purchased 
65.17 	or leased for use in elementary and secondary schools in teaching only those subjects 
65.18 	legally and commonly taught in public elementary and secondary schools in this state. 
65.19 	Equipment expenses qualifying for deduction includes expenses as defined and limited in 
65.20 	section 290.0674, subdivision 1, clause (3). "Textbooks" does not include instructional 
65.21 	books and materials used in the teaching of religious tenets, doctrines, or worship, the 
65.22 	purpose of which is to instill such tenets, doctrines, or worship, nor does it include books 
65.23 	or materials for, or transportation to, extracurricular activities including sporting events, 
65.24 	musical or dramatic events, speech activities, driver's education, or similar programs. No 
65.25 	deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or 
65.26 	the qualifying child's vehicle to provide such transportation for a qualifying child. For 
65.27 	purposes of the subtraction provided by this clause, "qualifying child" has the meaning 
65.28 	given in section 32(c)(3) of the Internal Revenue Code;
65.29 	(4) income as provided under section 290.0802;
65.30 	(5) to the extent included in federal adjusted gross income, income realized on 
65.31 	disposition of property exempt from tax under section 290.491;
65.32 	(6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E) 
65.33 	of the Internal Revenue Code in determining federal taxable income by an individual 
65.34 	who does not itemize deductions for federal income tax purposes for the taxable year, an 
65.35 	amount equal to 50 percent of the excess of charitable contributions over $500 allowable 
66.1 	as a deduction for the taxable year under section 170(a) of the Internal Revenue Code, 
66.2 	under the provisions of Public Law 109-1 and Public Law 111-126;
66.3 	(7) for individuals who are allowed a federal foreign tax credit for taxes that do not 
66.4 	qualify for a credit under section 290.06, subdivision 22, an amount equal to the carryover 
66.5 	of subnational foreign taxes for the taxable year, but not to exceed the total subnational 
66.6 	foreign taxes reported in claiming the foreign tax credit. For purposes of this clause, 
66.7 	"federal foreign tax credit" means the credit allowed under section 27 of the Internal 
66.8 	Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed 
66.9 	under section 904(c) of the Internal Revenue Code minus national level foreign taxes to 
66.10 	the extent they exceed the federal foreign tax credit;
66.11 	(8) in each of the five tax years immediately following the tax year in which an 
66.12 	addition is required under subdivision 19a, clause (7), or 19c, clause (12), in the case of a 
66.13 	shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the 
66.14 	delayed depreciation. For purposes of this clause, "delayed depreciation" means the amount 
66.15 	of the addition made by the taxpayer under subdivision 19a, clause (7), or subdivision 19c, 
66.16 	clause (12), in the case of a shareholder of an S corporation, minus the positive value of 
66.17 	any net operating loss under section 172 of the Internal Revenue Code generated for the 
66.18 	tax year of the addition. The resulting delayed depreciation cannot be less than zero;
66.19 	(9) job opportunity building zone income as provided under section 469.316;
66.20 	(10) to the extent included in federal taxable income, the amount of compensation 
66.21 	paid to members of the Minnesota National Guard or other reserve components of 
66.22 	the United States military for active service, excluding including compensation for 
66.23 	services performed under the Active Guard Reserve (AGR) program. For purposes of 
66.24 	this clause, "active service" means (i) state active service as defined in section 190.05, 
66.25 	subdivision 5a, clause (1); or (ii) federally funded state active service as defined in section 
66.26 	190.05, subdivision 5b, butand "active service" excludesincludes service performed in 
66.27 	accordance with section 190.08, subdivision 3;
66.28 	(11) to the extent included in federal taxable income, the amount of compensation 
66.29 	paid to Minnesota residents who are members of the armed forces of the United States 
66.30 	or United Nations for active duty performed under United States Code, title 10; or the 
66.31 	authority of the United Nations;
66.32 	(12) an amount, not to exceed $10,000, equal to qualified expenses related to a 
66.33 	qualified donor's donation, while living, of one or more of the qualified donor's organs 
66.34 	to another person for human organ transplantation. For purposes of this clause, "organ" 
66.35 	means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow; 
66.36 	"human organ transplantation" means the medical procedure by which transfer of a human 
67.1 	organ is made from the body of one person to the body of another person; "qualified 
67.2 	expenses" means unreimbursed expenses for both the individual and the qualified donor 
67.3 	for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses 
67.4 	may be subtracted under this clause only once; and "qualified donor" means the individual 
67.5 	or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An 
67.6 	individual may claim the subtraction in this clause for each instance of organ donation for 
67.7 	transplantation during the taxable year in which the qualified expenses occur;
67.8 	(13) in each of the five tax years immediately following the tax year in which an 
67.9 	addition is required under subdivision 19a, clause (8), or 19c, clause (13), in the case of a 
67.10 	shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the 
67.11 	addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (13), in the 
67.12 	case of a shareholder of a corporation that is an S corporation, minus the positive value of 
67.13 	any net operating loss under section 172 of the Internal Revenue Code generated for the 
67.14 	tax year of the addition. If the net operating loss exceeds the addition for the tax year, a 
67.15 	subtraction is not allowed under this clause;
67.16 	(14) to the extent included in the federal taxable income of a nonresident of 
67.17 	Minnesota, compensation paid to a service member as defined in United States Code, title 
67.18 	10, section 101(a)(5), for military service as defined in the Servicemembers Civil Relief 
67.19 	Act, Public Law 108-189, section 101(2);
67.20 	(15) to the extent included in federal taxable income, the amount of national service 
67.21 	educational awards received from the National Service Trust under United States Code, 
67.22 	title 42, sections 12601 to 12604, for service in an approved Americorps National Service 
67.23 	program;
67.24 	(16) to the extent included in federal taxable income, discharge of indebtedness 
67.25 	income resulting from reacquisition of business indebtedness included in federal taxable 
67.26 	income under section 108(i) of the Internal Revenue Code. This subtraction applies only 
67.27 	to the extent that the income was included in net income in a prior year as a result of the 
67.28 	addition under section 290.01, subdivision 19a, clause (13);
67.29 	(17) the amount of the net operating loss allowed under section 290.095, subdivision 
67.30 	11, paragraph (c); 
67.31 	(18) the amount of expenses not allowed for federal income tax purposes due 
67.32 	to claiming the railroad track maintenance credit under section 45G(a) of the Internal 
67.33 	Revenue Code;
67.34 	(19) the amount of the limitation on itemized deductions under section 68(b) of 
67.35 	the Internal Revenue Code; and
68.1 	(20) the amount of the phaseout of personal exemptions under section 151(d) of 
68.2 	the Internal Revenue Code.; and
68.3 	(21) for taxable years beginning after December 31, 2013, and before January 1, 
68.4 	2015, to the extent included in federal taxable income, discharge of qualified principal 
68.5 	residence indebtedness, as provided in subparagraph (E) of section 108(a)(1) of the 
68.6 	Internal Revenue Code, without regard to whether subparagraph (E) of section 108(a)(1) 
68.7 	of the Internal Revenue Code is in effect for the taxable year.

68.8 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
68.9 	December 31, 2013.

68.10 	Sec. 8. Minnesota Statutes 2013 Supplement, section 290.01, subdivision 31, as 
68.11 	amended by Laws 2014, chapter 150, article 1, section 13, is amended to read:
68.12 		Subd. 31.Internal Revenue Code. Unless specifically defined otherwise, "Internal 
68.13 	Revenue Code" means the Internal Revenue Code of 1986, as amended through December 
68.14 	20, 2013 March 26, 2014. Internal Revenue Code also includes any uncodified provision 
68.15 	in federal law that relates to provisions of the Internal Revenue Code that are incorporated 
68.16 	into Minnesota law. When used in this chapter, the reference to "subtitle A, chapter 1, 
68.17 	subchapter N, part 1, of the Internal Revenue Code" is to the Internal Revenue Code as 
68.18 	amended through March 18, 2010.

68.19 	EFFECTIVE DATE. This section is effective the day following final enactment, 
68.20 	except the changes incorporated by federal changes are effective retroactively at the same 
68.21 	time as the changes were effective for federal purposes.

68.22 	Sec. 9. Minnesota Statutes 2012, section 290.068, subdivision 1, is amended to read:
68.23 		Subdivision 1.Credit allowed. A corporation, partners in a partnership, or 
68.24 	shareholders in a corporation treated as an "S" corporation under section 290.9725 are
68.25 	 individual, trust, or estate is allowed a credit against the tax computed under this chapter 
68.26 	for the taxable year equal to:
68.27 	(a) ten percent of the first $2,000,000 of the excess (if any) of
68.28 	(1) the qualified research expenses for the taxable year, over
68.29 	(2) the base amount; and
68.30 	(b) 2.5 percent on all of such excess expenses over $2,000,000.

68.31 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
68.32 	December 31, 2013.

69.1 	Sec. 10. Minnesota Statutes 2013 Supplement, section 290.091, subdivision 2, as 
69.2 	amended by Laws 2014, chapter 150, article 1, section 21, is amended to read:
69.3 		Subd. 2.Definitions. For purposes of the tax imposed by this section, the following 
69.4 	terms have the meanings given:
69.5 	(a) "Alternative minimum taxable income" means the sum of the following for 
69.6 	the taxable year:
69.7 	(1) the taxpayer's federal alternative minimum taxable income as defined in section 
69.8 	55(b)(2) of the Internal Revenue Code;
69.9 	(2) the taxpayer's itemized deductions allowed in computing federal alternative 
69.10 	minimum taxable income, but excluding:
69.11 	(i) the charitable contribution deduction under section 170 of the Internal Revenue 
69.12 	Code;
69.13 	(ii) the medical expense deduction;
69.14 	(iii) the casualty, theft, and disaster loss deduction; and
69.15 	(iv) the impairment-related work expenses of a disabled person;
69.16 	(3) for depletion allowances computed under section 613A(c) of the Internal 
69.17 	Revenue Code, with respect to each property (as defined in section 614 of the Internal 
69.18 	Revenue Code), to the extent not included in federal alternative minimum taxable income, 
69.19 	the excess of the deduction for depletion allowable under section 611 of the Internal 
69.20 	Revenue Code for the taxable year over the adjusted basis of the property at the end of the 
69.21 	taxable year (determined without regard to the depletion deduction for the taxable year);
69.22 	(4) to the extent not included in federal alternative minimum taxable income, the 
69.23 	amount of the tax preference for intangible drilling cost under section 57(a)(2) of the 
69.24 	Internal Revenue Code determined without regard to subparagraph (E);
69.25 	(5) to the extent not included in federal alternative minimum taxable income, the 
69.26 	amount of interest income as provided by section 290.01, subdivision 19a, clause (1); and
69.27 	(6) the amount of addition required by section 290.01, subdivision 19a, clauses (7) 
69.28 	to (9), and (11) to (14);
69.29 	less the sum of the amounts determined under the following:
69.30 	(1) interest income as defined in section 290.01, subdivision 19b, clause (1);
69.31 	(2) an overpayment of state income tax as provided by section 290.01, subdivision 
69.32 	19b, clause (2), to the extent included in federal alternative minimum taxable income;
69.33 	(3) the amount of investment interest paid or accrued within the taxable year on 
69.34 	indebtedness to the extent that the amount does not exceed net investment income, as 
69.35 	defined in section 163(d)(4) of the Internal Revenue Code. Interest does not include 
69.36 	amounts deducted in computing federal adjusted gross income;
70.1 	(4) amounts subtracted from federal taxable income as provided by section 290.01, 
70.2 	subdivision 19b, clauses (6), (8) to (14), and (16), and (21); and
70.3 	(5) the amount of the net operating loss allowed under section 290.095, subdivision 
70.4 	11, paragraph (c).
70.5 	In the case of an estate or trust, alternative minimum taxable income must be 
70.6 	computed as provided in section 59(c) of the Internal Revenue Code.
70.7 	(b) "Investment interest" means investment interest as defined in section 163(d)(3) 
70.8 	of the Internal Revenue Code.
70.9 	(c) "Net minimum tax" means the minimum tax imposed by this section.
70.10 	(d) "Regular tax" means the tax that would be imposed under this chapter (without 
70.11 	regard to this section and section 290.032), reduced by the sum of the nonrefundable 
70.12 	credits allowed under this chapter.
70.13 	(e) "Tentative minimum tax" equals 6.75 percent of alternative minimum taxable 
70.14 	income after subtracting the exemption amount determined under subdivision 3.

70.15 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
70.16 	December 31, 2013.

70.17 	Sec. 11. Minnesota Statutes 2013 Supplement, section 290A.03, subdivision 15, as 
70.18 	amended by Laws 2014, chapter 150, article 1, section 22, is amended to read:
70.19 		Subd. 15.Internal Revenue Code.  "Internal Revenue Code" means the Internal 
70.20 	Revenue Code of 1986, as amended through December 20, 2013 March 26, 2014.

70.21 	EFFECTIVE DATE. This section is effective retroactively for property tax refunds 
70.22 	based on property taxes payable after December 31, 2013, and rent paid after December 
70.23 	31, 2012.

70.24 	Sec. 12. Minnesota Statutes 2013 Supplement, section 291.005, subdivision 1, as 
70.25 	amended by Laws 2014, chapter 150, article 3, section 3, is amended to read:
70.26 		Subdivision 1.Scope. Unless the context otherwise clearly requires, the following 
70.27 	terms used in this chapter shall have the following meanings:
70.28 	(1) "Commissioner" means the commissioner of revenue or any person to whom the 
70.29 	commissioner has delegated functions under this chapter.
70.30 	(2) "Federal gross estate" means the gross estate of a decedent as required to be valued 
70.31 	and otherwise determined for federal estate tax purposes under the Internal Revenue Code.
70.32 	(3) "Internal Revenue Code" means the United States Internal Revenue Code of 
70.33 	1986, as amended through March 1March 26, 2014.
71.1 	(4) "Minnesota gross estate" means the federal gross estate of a decedent after 
71.2 	(a) excluding therefrom any property included in the estate which has its situs outside 
71.3 	Minnesota, and (b) including any property omitted from the federal gross estate which 
71.4 	is includable in the estate, has its situs in Minnesota, and was not disclosed to federal 
71.5 	taxing authorities.
71.6 	(5) "Nonresident decedent" means an individual whose domicile at the time of 
71.7 	death was not in Minnesota.
71.8 	(6) "Personal representative" means the executor, administrator or other person 
71.9 	appointed by the court to administer and dispose of the property of the decedent. If there 
71.10 	is no executor, administrator or other person appointed, qualified, and acting within this 
71.11 	state, then any person in actual or constructive possession of any property having a situs in 
71.12 	this state which is included in the federal gross estate of the decedent shall be deemed 
71.13 	to be a personal representative to the extent of the property and the Minnesota estate tax 
71.14 	due with respect to the property.
71.15 	(7) "Resident decedent" means an individual whose domicile at the time of death 
71.16 	was in Minnesota.
71.17 	(8) "Situs of property" means, with respect to:
71.18 	(i) real property, the state or country in which it is located;
71.19 	(ii) tangible personal property, the state or country in which it was normally kept 
71.20 	or located at the time of the decedent's death or for a gift of tangible personal property 
71.21 	within three years of death, the state or country in which it was normally kept or located 
71.22 	when the gift was executed; and
71.23 	(iii) a qualified work of art, as defined in section 2503(g)(2) of the Internal Revenue 
71.24 	Code, owned by a nonresident decedent and that is normally kept or located in this state 
71.25 	because it is on loan to an organization, qualifying as exempt from taxation under section 
71.26 	501(c)(3) of the Internal Revenue Code, that is located in Minnesota, the situs of the art is 
71.27 	deemed to be outside of Minnesota, notwithstanding the provisions of item (ii); and
71.28 	(iv) intangible personal property, the state or country in which the decedent was 
71.29 	domiciled at death or for a gift of intangible personal property within three years of death, 
71.30 	the state or country in which the decedent was domiciled when the gift was executed.
71.31 	For a nonresident decedent with an ownership interest in a pass-through entity with 
71.32 	assets that include real or tangible personal property, situs of the real or tangible personal 
71.33 	property, including qualified works of art, is determined as if the pass-through entity does 
71.34 	not exist and the real or tangible personal property is personally owned by the decedent. 
71.35 	If the pass-through entity is owned by a person or persons in addition to the decedent, 
72.1 	ownership of the property is attributed to the decedent in proportion to the decedent's 
72.2 	capital ownership share of the pass-through entity.
72.3 	(9) "Pass-through entity" includes the following:
72.4 	(i) an entity electing S corporation status under section 1362 of the Internal Revenue 
72.5 	Code;
72.6 	(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code;
72.7 	(iii) a single-member limited liability company or similar entity, regardless of 
72.8 	whether it is taxed as an association or is disregarded for federal income tax purposes 
72.9 	under Code of Federal Regulations, title 26, section 301.7701-3; or
72.10 	(iv) a trust to the extent the property is includible in the decedent's federal gross 
72.11 	estate; but excludes
72.12 	(v) an entity whose ownership interest securities are traded on an exchange regulated 
72.13 	by the Securities and Exchange Commission as a national securities exchange under 
72.14 	section 6 of the Securities Exchange Act, United States Code, title 15, section 78f.

72.15 	EFFECTIVE DATE. This section is effective retroactively for estates of decedents 
72.16 	dying after December 31, 2013.

72.17 	Sec. 13. Laws 2014, chapter 150, article 3, section 4, the effective date, is amended to 
72.18 	read:

72.19 	EFFECTIVE DATE. This section is effective retroactively for estates of decedents 
72.20 	dying after December 31, 2013, and for taxable gifts made after June 30, 2013.

72.21 	EFFECTIVE DATE. This section is effective the day following final enactment.

72.22 	Sec. 14. DEFINITION OF TAXABLE GIFT FOR DECEDENTS DYING 
72.23 	BEFORE JANUARY 1, 2014.
 72.24 	For estates of decedents dying before January 1, 2014, "taxable gift" as used by 
72.25 	Minnesota Statutes, section 291.005, subdivision 1, paragraph (4), means a transfer by gift 
72.26 	which is included in taxable gifts for federal gift tax purposes under the following sections 
72.27 	of the Internal Revenue Code: section 529; section 530; section 2501(a)(4); section 2503; 
72.28 	sections 2511 to 2514; and sections 2516 to 2519; less the deductions allowed in sections 
72.29 	2522 to 2524 of the Internal Revenue Code, and after excluding taxable gifts of any 
72.30 	property that has its situs outside Minnesota and including taxable gifts of any property 
72.31 	that has its situs in Minnesota and were not disclosed to federal taxing authorities.

73.1 	EFFECTIVE DATE. This section is effective retroactively for taxable gifts made 
73.2 	after June 30, 2013.

73.3 	ARTICLE 5
73.4 	MINERALS TAXES

73.5 	Section 1. Minnesota Statutes 2012, section 298.75, subdivision 2, is amended to read:
73.6 		Subd. 2.Tax imposed. (a) Except as provided in paragraph (e), a county that 
73.7 	imposes the aggregate production tax shall impose upon every operator a production tax 
73.8 	of 21.5 cents per cubic yard or 15 cents per ton of aggregate material excavated in the 
73.9 	county except that the county board may decide not to impose this tax if it determines 
73.10 	that in the previous year operators removed less than 20,000 tons or 14,000 cubic yards of 
73.11 	aggregate material from that county. The tax shall not be imposed on aggregate material 
73.12 	excavated in the county until the aggregate material is transported from the extraction site 
73.13 	or sold, whichever occurs first. When aggregate material is stored in a stockpile within the 
73.14 	state of Minnesota and a public highway, road or street is not used for transporting the 
73.15 	aggregate material, the tax shall not be imposed until either when the aggregate material 
73.16 	is sold, or when it is transported from the stockpile site, or when it is used from the 
73.17 	stockpile, whichever occurs first.
73.18 	(b) Except as provided in paragraph (e), a county that imposes the aggregate 
73.19 	production tax under paragraph (a) shall impose upon every importer a production tax 
73.20 	of 21.5 cents per cubic yard or 15 cents per ton of aggregate material imported into the 
73.21 	county. The tax shall be imposed when the aggregate material is imported from the 
73.22 	extraction site or sold. When imported aggregate material is stored in a stockpile within 
73.23 	the state of Minnesota and a public highway, road, or street is not used for transporting 
73.24 	the aggregate material, the tax shall be imposed either when the aggregate material is 
73.25 	sold, when it is transported from the stockpile site, or when it is used from the stockpile, 
73.26 	whichever occurs first. The tax shall be imposed on an importer when the aggregate 
73.27 	material is imported into the county that imposes the tax.
73.28 	(c) If the aggregate material is transported directly from the extraction site to a 
73.29 	waterway, railway, or another mode of transportation other than a highway, road or street, 
73.30 	the tax imposed by this section shall be apportioned equally between the county where the 
73.31 	aggregate material is extracted and the county to which the aggregate material is originally 
73.32 	transported. If that destination is not located in Minnesota, then the county where the 
73.33 	aggregate material was extracted shall receive all of the proceeds of the tax.
74.1 	(d) A county, city, or town that receives revenue under this section is prohibited 
74.2 	from imposing any additional host community fees on aggregate production within that 
74.3 	county, city, or town.
74.4 	(e) A county that borders two other states and that is not contiguous to a county 
74.5 	that imposes a tax under this section may impose the taxes under paragraphs (a) and (b) 
74.6 	at the rate of ten cents per cubic yard or seven cents per ton. This paragraph expires 
74.7 	December 31, 2014.

74.8 	EFFECTIVE DATE. This section is effective the day following final enactment.

74.9 	Sec. 2. Laws 2008, chapter 366, article 10, section 15, is amended to read:
74.10 	Sec. 15. 2008 DISTRIBUTIONS ONLY.
 74.11 	For distribution in 2008 only, a special fund is established to receive 11.4 cents per ton 
74.12 	that otherwise would be allocated under Minnesota Statutes, section 298.28, subdivision 6. 
74.13 	If sufficient funds are not available under Minnesota Statutes, section 298.28, subdivision 
74.14 	6, to make the payments required under this section and under Minnesota Statutes, section 
74.15 	298.28, subdivision 6, the remaining amount needed to total 11.4 cents per ton may be 
74.16 	taken from funds available under Minnesota Statutes, section 298.28, subdivision 9. If 
74.17 	2008 H.F. No. 1812 is enacted and includes a provision that distributes funds that would 
74.18 	otherwise be allocated under Minnesota Statutes, section 298.28, subdivision 6, in a 
74.19 	manner different from the distribution required in this section, the distribution in this 
74.20 	section supersedes the distribution set in 2008 H.F. No. 1812 notwithstanding Minnesota 
74.21 	Statutes, section 645.26. The following amounts are allocated to St. Louis County acting 
74.22 	as the fiscal agent for the recipients for the following specified purposes:
74.23 	(1) two cents per ton must be paid to the Hibbing Economic Development Authority 
74.24 	to retire bonds and for economic development purposes;
74.25 	(2) one cent per ton must be divided among and paid in equal shares to each of the 
74.26 	board of St. Louis County School District No. 2142, the board of Ely School District No. 
74.27 	696, the board of Mountain Iron-Buhl School District No. 712, and the board of Virginia 
74.28 	School District No. 706 for each to study the potential for and impact of consolidation 
74.29 	and streamlining the operations of their school districts;
74.30 	(3) 0.25 cent per ton must be paid to the city of Grand Rapids, for industrial park work;
74.31 	(4) 0.65 cent per ton must be paid to the city of Aitkin, for sewer and water for 
74.32 	housing economic development projects;
74.33 	(5) 0.5 cent per ton must be paid to the city of Crosby, for well and water tower 
74.34 	infrastructure;
75.1 	(6) 0.5 cent per ton must be paid to the city of Two Harbors, for well and water 
75.2 	tower infrastructure;
75.3 	(7) 1.5 cents per ton must be paid to the city of Silver Bay to pay for health and 
75.4 	safety and maintenance improvements at a former elementary school building that is 
75.5 	currently owned by the city, to be used for economic development purposes;
75.6 	(8) 1.5 cents per ton must be paid to St. Louis County to extend water and sewer 
75.7 	lines from the city of Chisholm to the St. Louis County fairgrounds;
75.8 	(9) 1.5 cents per ton must be paid to the White Community Hospital for debt 
75.9 	restructuring;
75.10 	(10) 0.5 cent per ton must be paid to the city of Keewatin for street, sewer, and 
75.11 	water improvements;
75.12 	(11) 0.5 cent per ton must be paid to the city of Calumet for street, sewer, and water 
75.13 	improvements; and
75.14 	(12) one cent per ton must be paid to Breitung township for sewer and water 
75.15 	extensions associated with the development of a state park, provided that if a new state 
75.16 	park is not established in Breitung township by July 1, 2009, the money provided in 
75.17 	this clause must be transferred to the northeast Minnesota economic development fund 
75.18 	established in Minnesota Statutes, section 298.2213.

75.19 	EFFECTIVE DATE. This section is effective the day following final enactment. 
75.20 	Upon enactment, the city of Aitkin must release all funds under this section to St. Louis 
75.21 	County acting as fiscal agent by July 1, 2014.

75.22 	Sec. 3. Laws 2013, chapter 143, article 11, section 10, is amended to read:
75.23 	Sec. 10. 2013 DISTRIBUTION ONLY.
 75.24 	For the 2013 distribution, a special fund is established to receive 38.7 cents per ton of 
75.25 	any excess of the balance remaining after distribution of amounts required under Minnesota 
75.26 	Statutes, section 298.28, subdivision 6. The following amounts are allocated to St. Louis 
75.27 	County acting as the fiscal agent for the recipients for the following specific purposes:
75.28 	(1) 5.1 cents per ton to the city of Hibbing for improvements to the city's water 
75.29 	supply system;
75.30 	(2) 4.3 cents per ton to the city of Mountain Iron for the cost of moving utilities 
75.31 	required as a result of actions undertaken by United States Steel Corporation;
75.32 	(3) 2.5 cents per ton to the city of Biwabik for improvements to the city's water supply 
75.33 	system, payable upon agreement with ArcelorMittal to satisfy water permit conditions;
75.34 	(4) 2 cents per ton to the city of Tower for the Tower Marina;
76.1 	(5) 2.4 cents per ton to the city of Grand Rapids for an eco-friendly heat transfer 
76.2 	system to replace aging effluent lines and for parking lot repaving;
76.3 	(6) 2.4 cents per ton to the city of Two Harbors for wastewater treatment plant 
76.4 	improvements;
76.5 	(7) 0.9 cents per ton to the city of Ely for the sanitary sewer replacement project;
76.6 	(8) 0.6 cents per ton to the town of Crystal Bay for debt service of the Claire Nelson 
76.7 	Intermodal Transportation Center;
76.8 	(9) 0.5 cents per ton to the Greenway Joint Recreation Board for the Coleraine 
76.9 	hockey arena renovations;
76.10 	(10) 1.2 cents per ton for the West Range Regional Fire Hall and Training Center 
76.11 	to merge the existing fire services of Coleraine, Bovey, Taconite Marble, Calumet, and 
76.12 	Greenway Township;
76.13 	(11) 2.5 cents per ton to the city of Hibbing for the Memorial Building;
76.14 	(12) 0.7 cents per ton to the city of Chisholm for public works infrastructure;
76.15 	(13) 1.8 cents per ton to the Crane Lake Water and Sanitary District for sanitary 
76.16 	sewer extension;
76.17 	(14) 2.5 cents per ton for the city of Buhl for the roof on the Mesabi Academy;
76.18 	(15) 1.2 cents per ton to the city of Gilbert for the New Jersey/Ohio Avenue project;
76.19 	(16) 1.5 2.0 cents per ton to the city of Cook for street improvements, business park 
76.20 	infrastructure, and a maintenance garage;
76.21 	(17) 0.5 cents per ton to the city of Cook for a water line project;
76.22 	(18) (17) 1.8 cents per ton to the city of Eveleth to be used for Jones Street 
76.23 	reconstruction and the city auditorium;
76.24 	(19) (18) 0.5 cents per ton for the city of Keewatin for an electrical substation and 
76.25 	water line replacements;
76.26 	(20) (19) 3.3 cents per ton for the city of Virginia for Fourth Street North 
76.27 	infrastructure and Franklin Park improvement; and
76.28 	(21) (20) 0.5 cents per ton to the city of Grand Rapids for an economic development 
76.29 	project.

76.30 	EFFECTIVE DATE. This section is effective the day following final enactment.

76.31 	ARTICLE 6
76.32 	LOCAL DEVELOPMENT

76.33 	Section 1. [383A.155] HOUSING IMPROVEMENT AREAS.
77.1 		Subdivision 1.Powers of a housing improvement authority. The Ramsey County 
77.2 	Housing and Redevelopment Authority shall have the powers of a city under sections 
77.3 	428A.11 to 428A.21 to establish housing improvement areas in Ramsey County.
77.4 		Subd. 2.Definitions. (a) For purposes of exercising the powers in sections 428A.11 
77.5 	to 428A.21, references in those sections to the terms in paragraphs (b) to (e) have the 
77.6 	meanings given them for purposes of this section.
77.7 	(b) "Mayor" means the chair of the Ramsey County Housing and Redevelopment 
77.8 	Authority.
77.9 	(c) "Council" or "governing body of the city" means the Ramsey County Housing 
77.10 	and Redevelopment Authority.
77.11 	(d) "City clerk" means the person designated by the Ramsey County Housing and 
77.12 	Redevelopment Authority to carry out the duties of the city clerk under sections 428A.11 
77.13 	to 428A.21.
77.14 	(e) "Enabling ordinance" means a resolution adopted under subdivision 3 by the 
77.15 	Ramsey County Housing and Redevelopment Authority.
77.16 		Subd. 3.Establishment of housing improvement areas. The Ramsey County 
77.17 	Housing and Redevelopment Authority may adopt a resolution establishing one or 
77.18 	more housing improvement areas within the county under this section. The Ramsey 
77.19 	County Housing and Redevelopment Authority shall send a copy of each petition for the 
77.20 	establishment of a housing improvement area to the city in which the proposed housing 
77.21 	improvement area is located. The public hearings under sections 428A.13 and 428A.14 
77.22 	may be held at the times and places determined by the Ramsey County Housing and 
77.23 	Redevelopment Authority, except that they must be held at least 30 days after the date the 
77.24 	applicable petition was sent to the city. If the city council adopts a resolution opposing 
77.25 	the establishment within 30 days of the date the copy of the petition was sent to the city 
77.26 	under this subdivision, the Ramsey County Housing and Redevelopment Authority may 
77.27 	not establish the proposed housing improvement area.
77.28 		Subd. 4.Applicability. Except as otherwise provided in this section, sections 
77.29 	428A.11 to 428A.21 apply to the establishment of a housing improvement area by the 
77.30 	Ramsey County Housing and Redevelopment Authority.

77.31 	EFFECTIVE DATE. This section is effective the day following final enactment.

77.32 	Sec. 2. Minnesota Statutes 2012, section 383D.41, is amended by adding a subdivision 
77.33 	to read:
77.34 		Subd. 11.Tax credit allocation threshold criteria. (a) In addition to the projects 
77.35 	described in section 462A.222, subdivision 3, paragraph (d), the Dakota County 
78.1 	Community Development Agency may allocate tax credits in the first round for up to three 
78.2 	projects of the following type: new construction or substantial rehabilitation multifamily 
78.3 	housing projects that are not restricted to persons who are 55 years of age or older and that 
78.4 	are located within one of the following areas at the time a reservation for tax credits is made:
78.5 	(1) an area within one-half mile of a completed or planned light rail transit way, bus 
78.6 	rapid transit way, or commuter rail station;
78.7 	(2) an area within one-fourth mile from any spot along a high-frequency local bus line;
78.8 	(3) an area within one-half mile from a bus stop or station on a high-frequency 
78.9 	express route;
78.10 	(4) an area within one-half mile from a park and ride lot; or
78.11 	(5) an area within one-fourth mile of a high-service public transportation fixed 
78.12 	route stop.
78.13 	(b) For purposes of this section, the following terms have the meaning given them:
78.14 	(1) "high-frequency local bus line" means a local bus route providing service at 
78.15 	least every 15 minutes and running between 6:00 a.m. and 7:00 p.m. on weekdays and 
78.16 	between 9:00 a.m. and 6:00 p.m. on Saturdays;
78.17 	(2) "high-frequency express route" means an express route with bus service 
78.18 	providing six or more trips during at least one of the peak morning hours between 6:00 
78.19 	a.m. and 9:00 a.m. and every ten minutes during the peak morning hour; and
78.20 	(3) "high-service public transportation fixed route stop" means a stop serviced 
78.21 	between 6:00 a.m. and 7:00 p.m. on weekdays and 9:00 a.m. and 6:00 p.m. on Saturdays 
78.22 	and with service approximately every 30 minutes during that time.

78.23 	EFFECTIVE DATE. This section is effective beginning with the 2015 allocation of 
78.24 	tax credit.

78.25 	Sec. 3. Minnesota Statutes 2012, section 469.1763, subdivision 3, is amended to read:
78.26 		Subd. 3.Five-year rule. (a) Revenues derived from tax increments are considered 
78.27 	to have been expended on an activity within the district under subdivision 2 only if one 
78.28 	of the following occurs:
78.29 	(1) before or within five years after certification of the district, the revenues are 
78.30 	actually paid to a third party with respect to the activity;
78.31 	(2) bonds, the proceeds of which must be used to finance the activity, are issued and 
78.32 	sold to a third party before or within five years after certification, the revenues are spent 
78.33 	to repay the bonds, and the proceeds of the bonds either are, on the date of issuance, 
78.34 	reasonably expected to be spent before the end of the later of (i) the five-year period, or 
78.35 	(ii) a reasonable temporary period within the meaning of the use of that term under section 
79.1 	148(c)(1) of the Internal Revenue Code, or are deposited in a reasonably required reserve 
79.2 	or replacement fund;
79.3 	(3) binding contracts with a third party are entered into for performance of the 
79.4 	activity before or within five years after certification of the district and the revenues are 
79.5 	spent under the contractual obligation;
79.6 	(4) costs with respect to the activity are paid before or within five years after 
79.7 	certification of the district and the revenues are spent to reimburse a party for payment 
79.8 	of the costs, including interest on unreimbursed costs; or
79.9 	(5) expenditures are made for housing purposes as permitted by subdivision 2, 
79.10 	paragraphs (b) and (d), or for public infrastructure purposes within a zone as permitted 
79.11 	by subdivision 2, paragraph (e).
79.12 	(b) For purposes of this subdivision, bonds include subsequent refunding bonds if 
79.13 	the original refunded bonds meet the requirements of paragraph (a), clause (2).
79.14 	(c) For a redevelopment district or a renewal and renovation district certified after 
79.15 	June 30, 2003, and before April 20, 2009, the five-year periods described in paragraph 
79.16 	(a) are extended to (1) ten years after certification of the district or (2) June 30, 2017, 
79.17 	whichever is later. This extension is provided primarily to accommodate delays in 
79.18 	development activities due to unanticipated economic circumstances.

79.19 	EFFECTIVE DATE. This section is effective the day following final enactment 
79.20 	and applies to all districts, regardless of when the request for certification was made.

79.21 	Sec. 4. Minnesota Statutes 2012, section 469.177, subdivision 3, is amended to read:
79.22 		Subd. 3.Tax increment, relationship to chapters 276A and 473F. (a) Unless the 
79.23 	governing body elects pursuant to paragraph (b) the following method of computation 
79.24 	shall apply to a district other than an economic development district for which the request 
79.25 	for certification was made after June 30, 1997:
79.26 	(1) The original net tax capacity and the current net tax capacity shall be determined 
79.27 	before the application of the fiscal disparity provisions of chapter 276A or 473F. Where 
79.28 	the original net tax capacity is equal to or greater than the current net tax capacity, there is 
79.29 	no captured net tax capacity and no tax increment determination. Where the original net 
79.30 	tax capacity is less than the current net tax capacity, the difference between the original 
79.31 	net tax capacity and the current net tax capacity is the captured net tax capacity. This 
79.32 	amount less any portion thereof which the authority has designated, in its tax increment 
79.33 	financing plan, to share with the local taxing districts is the retained captured net tax 
79.34 	capacity of the authority.
80.1 	(2) The county auditor shall exclude the retained captured net tax capacity of the 
80.2 	authority from the net tax capacity of the local taxing districts in determining local taxing 
80.3 	district tax rates. The local tax rates so determined are to be extended against the retained 
80.4 	captured net tax capacity of the authority as well as the net tax capacity of the local taxing 
80.5 	districts. The tax generated by the extension of the lesser of (A) the local taxing district 
80.6 	tax rates or (B) the original local tax rate to the retained captured net tax capacity of the 
80.7 	authority is the tax increment of the authority.
80.8 	(b) The following method of computation applies to any economic development 
80.9 	district for which the request for certification was made after June 30, 1997, and to any
80.10 	 other district for which the governing body, by resolution approving the tax increment 
80.11 	financing plan pursuant to section 469.175, subdivision 3, elects:
80.12 	(1) The original net tax capacity shall be determined before the application of the 
80.13 	fiscal disparity provisions of chapter 276A or 473F. The current net tax capacity shall 
80.14 	exclude any fiscal disparity commercial-industrial net tax capacity increase between 
80.15 	the original year and the current year multiplied by the fiscal disparity ratio determined 
80.16 	pursuant to section 276A.06, subdivision 7, or 473F.08, subdivision 6. Where the original 
80.17 	net tax capacity is equal to or greater than the current net tax capacity, there is no captured 
80.18 	net tax capacity and no tax increment determination. Where the original net tax capacity is 
80.19 	less than the current net tax capacity, the difference between the original net tax capacity 
80.20 	and the current net tax capacity is the captured net tax capacity. This amount less any 
80.21 	portion thereof which the authority has designated, in its tax increment financing plan, to 
80.22 	share with the local taxing districts is the retained captured net tax capacity of the authority.
80.23 	(2) The county auditor shall exclude the retained captured net tax capacity of the 
80.24 	authority from the net tax capacity of the local taxing districts in determining local taxing 
80.25 	district tax rates. The local tax rates so determined are to be extended against the retained 
80.26 	captured net tax capacity of the authority as well as the net tax capacity of the local taxing 
80.27 	districts. The tax generated by the extension of the lesser of (A) the local taxing district 
80.28 	tax rates or (B) the original local tax rate to the retained captured net tax capacity of the 
80.29 	authority is the tax increment of the authority.
80.30 	(3) An election by the governing body pursuant to paragraph (b) shall be submitted 
80.31 	to the county auditor by the authority at the time of the request for certification pursuant to 
80.32 	subdivision 1.
80.33 	(c) The method of computation of tax increment applied to a district pursuant to 
80.34 	paragraph (a) or (b) shall remain the same for the duration of the district, except that 
80.35 	the governing body may elect to change its election from the method of computation in 
80.36 	paragraph (a) to the method in paragraph (b).

81.1 	EFFECTIVE DATE. This section is effective for districts for which the request for 
81.2 	certification is made after June 30, 2014.

81.3 	Sec. 5. Laws 2013, chapter 143, article 9, section 23, is amended to read:
81.4 	Sec. 23. CITY OF BLOOMINGTON; OLD CEDAR AVENUE BRIDGE.
 81.5 	(a) Notwithstanding any law to the contrary, the city of Bloomington shall transfer 
81.6 	from the tax increment financing accounts for its Tax Increment Financing District No. 
81.7 	1-C and Tax Increment Financing District No. 1-G an amount equal to the tax increment 
81.8 	for each district that is computed under the provisions of Minnesota Statutes, section 
81.9 	473F.08, subdivision 3c, for taxes payable in 2014 to an account or fund established for 
81.10 	the repair, restoration, or replacement of the Old Cedar Avenue bridge for use by bicycle 
81.11 	commuters and recreational users. The city is authorized to and must use the transferred 
81.12 	funds to complete the repair, renovation, or replacement of the bridge. Upon completion 
81.13 	of the repair, renovation, or replacement of the bridge, the city may use any remaining 
81.14 	funds in the account for costs of improving bicycle and pedestrian trails that access the 
81.15 	bridge and that use is deemed to be a permitted use of the increments.
81.16 	(b) No signs, plaques, or markers acknowledging or crediting donations for, 
81.17 	sponsorships of, or naming rights may be posted on or in the vicinity of the Old Cedar 
81.18 	Avenue bridge.

81.19 	EFFECTIVE DATE. This section is effective without local approval under 
81.20 	Minnesota Statutes, section 645.023, subdivision 1, paragraph (a).

81.21 	Sec. 6. CITY OF EAGAN; TAX INCREMENT FINANCING.
 81.22 	(a) Effective for taxes payable in 2015, the city of Eagan may elect to compute tax 
81.23 	increment for the Cedar Grove Tax Increment Financing District using the current local tax 
81.24 	rate, notwithstanding the provisions of Minnesota Statutes, section 469.177, subdivision 1a.
81.25 	(b) The requirements of Minnesota Statutes, section 469.1763, subdivision 3, that 
81.26 	activities must be undertaken within a five-year period from the date of certification of a 
81.27 	tax increment financing district, is considered to be met for TIF District 2-5 in the city 
81.28 	of Eagan if the activities are undertaken within seven years from the date of certification 
81.29 	of the district.

81.30 	EFFECTIVE DATE. This section is effective upon compliance by the governing 
81.31 	body of the city of Eagan with the requirements of Minnesota Statutes, section 645.021, 
81.32 	subdivision 3.

82.1 	Sec. 7. CITY OF EDINA; TAX INCREMENT FINANCING.
 82.2 		Subdivision 1.Authority to create districts. (a) The governing body of the city of 
82.3 	Edina or its development authority may establish one or more tax increment financing 
82.4 	housing districts in the Southeast Edina Redevelopment Project Area, as the boundaries 
82.5 	exist on March 31, 2014.
82.6 	(b) The authority to request certification of districts under this section expires on 
82.7 	June 30, 2017.
82.8 		Subd. 2.Rules governing districts. (a) Housing districts established under this 
82.9 	section are subject to the provisions of Minnesota Statutes, sections 469.174 to 469.1794, 
82.10 	except as otherwise provided in this subdivision.
82.11 	(b) Notwithstanding the provisions of Minnesota Statutes, section 469.176, 
82.12 	subdivision 1b, no increment must be paid to the authority after 15 years after receipt by 
82.13 	the authority of the first increment from a district established under this section.
82.14 	(c) Notwithstanding the provisions of Minnesota Statutes, section 469.1761, 
82.15 	subdivision 3, for a residential rental project, the city may elect to substitute "10 percent" 
82.16 	for "40 percent" in the 40-60 test under section 142(d)(1)(B) of the Internal Revenue Code 
82.17 	in determining the applicable income limits.
82.18 		Subd. 3.Pooling authority. The city may elect to treat expenditures of increment 
82.19 	from the Southdale 2 district for a housing project of a district established under 
82.20 	this section as expenditures qualifying under Minnesota Statutes, section 469.1763, 
82.21 	subdivision 2, paragraph (d), without regard to whether the housing meets the requirement 
82.22 	of a qualified building under section 42 of the Internal Revenue Code.

82.23 	EFFECTIVE DATE. This section is effective upon compliance by the governing 
82.24 	body of the city of Edina with the requirements of Minnesota Statutes, section 645.021, 
82.25 	subdivisions 2 and 3.

82.26 	Sec. 8. SHOREVIEW TAX INCREMENT FINANCING PILOT PROJECT.
 82.27 		Subdivision 1.Authority to establish districts. (a) The governing body of the 
82.28 	city of Shoreview or a development authority it designates may establish one or more 
82.29 	economic development tax increment financing districts in the city subject to the special 
82.30 	rules under this section. The purpose of these districts is the retention and expansion of 
82.31 	existing businesses in the city and the attraction of new business to the state to create and 
82.32 	retain high paying jobs.
82.33 	(b) The authority to establish or approve the tax increment financing plans and 
82.34 	request certification for districts under this section expires on June 30, 2019.
83.1 		Subd. 2.Qualified businesses. For purposes of this section, a "qualified business" 
83.2 	must satisfy the following requirements:
83.3 	(1) the business must qualify under one of the following when the tax increment 
83.4 	financing plan is approved:
83.5 	(i) it operates at a location in the city of Shoreview;
83.6 	(ii) it does not have substantial operations in Minnesota; or
83.7 	(iii) the assistance is provided for relocation of a portion of the business's operation 
83.8 	from another state;
83.9 	(2) the expansion or location of the operations of the business in the city, as 
83.10 	provided in the business subsidy agreement under Minnesota Statues, sections 116J.993 to 
83.11 	116J.995, will result in an increase in manufacturing, research, service, or professional 
83.12 	jobs, at least 75 percent of which pay an average wage or salary that is equal to or greater 
83.13 	than 25 percent of the median wage or salary for all jobs within the metropolitan area; and
83.14 	(3) the business is not engaged in making retail sales or in providing other services, 
83.15 	such as legal, medical, accounting, financial, entertainment, or similar, to third parties, at 
83.16 	the location receiving assistance.
83.17 		Subd. 3.Applicable rules. (a) Unless otherwise stated, the provisions of Minnesota 
83.18 	Statutes, sections 469.174 to 469.1794, apply to districts established under this section.
83.19 	(b) Notwithstanding the provisions of section 469.176, subdivision 1b, the duration 
83.20 	limit for districts created under this section is 12 years after the receipt of the first increment.
83.21 	(c) The provisions of Minnesota Statutes, section 469.176, subdivision 4c, apply 
83.22 	to determining the permitted uses of increments from the districts with the following 
83.23 	exceptions:
83.24 	(1) any building and facilities must be for a qualified business;
83.25 	(2) the building and facilities must not be used by the qualified business or its 
83.26 	lessees or tenants to relocate operations from another location in this state outside of the 
83.27 	city of Shoreview;
83.28 	(3) the 15 percent limit in subdivision 4c, paragraph (a), is increased to 25 percent; and
83.29 	(4) the city or development authority may elect to deposit up to 20 percent of the 
83.30 	increments in the fund established under subdivision 4. If the city elects to use this 
83.31 	authority, all of the remaining increments must be expended for administrative expenses 
83.32 	or for activities within the district under Minnesota Statutes, section 469.1763.
83.33 	(d) The governing body of the city may elect, by resolution, to determine the 
83.34 	original and current net tax capacity of a district established under this section using the 
83.35 	computation under Minnesota Statutes, section 469.177, subdivision 3, paragraph (a) or (b).
84.1 		Subd. 4.Business retention and expansion fund. (a) The city may establish a 
84.2 	business retention and expansion fund and deposit in the fund:
84.3 	(1) increments as provided under subdivision 3, paragraph (c), clause (4); and
84.4 	(2) increments from a district for which the request for certification of the district 
84.5 	was made prior to April 30, 1990, if the amount necessary to meet all of the debt and other 
84.6 	obligations incurred for that district has been received by the city.
84.7 	(b) Amounts in the fund may be expended to assist qualified businesses, as permitted 
84.8 	under subdivisions 2 and 3, and are not otherwise subject to the restrictions in Minnesota 
84.9 	Statutes, sections 469.174 to 469.1794.

84.10 	EFFECTIVE DATE. This section is effective upon compliance by the governing 
84.11 	body of the city of Shoreview with the requirements of Minnesota Statutes, section 
84.12 	645.021, subdivision 3.

84.13 	Sec. 9. CITY OF NORTH ST. PAUL; TAX INCREMENT FINANCING; 
84.14 	PARCELS DEEMED OCCUPIED.
 84.15 	If the city of North St. Paul authorizes the creation of a redevelopment tax increment 
84.16 	financing district under Minnesota Statutes, section 469.174, subdivision 10, parcel 
84.17 	number 122922330059 is deemed to meet the requirements of Minnesota Statutes, section 
84.18 	469.174, subdivision 10, paragraph (d), notwithstanding any contrary provisions of that 
84.19 	paragraph, if the following conditions are met:
84.20 	(1) buildings located on the parcel were demolished after the city of North St. Paul 
84.21 	adopted a resolution under Minnesota Statutes, section 469.174, subdivision 10, paragraph 
84.22 	(d), clause (3);
84.23 	(2) the buildings were removed either by the city of North St. Paul or by the owner 
84.24 	of the property by entering into a development agreement; and
84.25 	(3) the request for certification of the parcel as part of a district is filed with the 
84.26 	county auditor by December 31, 2016.

84.27 	EFFECTIVE DATE. This section is effective upon compliance by the governing 
84.28 	body of the city of North St. Paul with the requirements of Minnesota Statutes, section 
84.29 	645.021, subdivisions 2 and 3.

84.30 	ARTICLE 7
84.31 	MISCELLANEOUS

84.32 	Section 1. Minnesota Statutes 2012, section 270C.72, subdivision 1, is amended to read:
85.1 		Subdivision 1.Tax clearance required. (a) The state or a political subdivision of 
85.2 	the state may not issue, transfer, or renew, and must revoke, a license for the conduct of 
85.3 	a profession, occupation, trade, or business, if the commissioner notifies the licensing 
85.4 	authority that the applicant owes the state delinquent taxes payable to the commissioner, 
85.5 	penalties, or interest. The commissioner may not notify the licensing authority unless the 
85.6 	applicant taxpayer owes $500 or more in delinquent taxes, penalties, or interest, or has 
85.7 	not filed returns. If the applicant taxpayer does not owe delinquent taxes, penalties, or 
85.8 	interest, but has not filed returns, the commissioner may not notify the licensing authority 
85.9 	unless the taxpayer has been given 90 days' written notice to file the returns or show 
85.10 	that the returns are not required to be filed. 
85.11 	(b) Within ten days after receipt of the notification from the commissioner under 
85.12 	paragraph (a), the licensing authority must notify the license holder by certified mail of 
85.13 	the potential revocation of the license for the applicable reason under paragraph (a). 
85.14 	The notice must include a copy of the commissioner's notice to the licensing agency 
85.15 	and information, in the form specified by the commissioner, on the licensee's option for 
85.16 	receiving a tax clearance from the commissioner. The licensing authority must revoke the 
85.17 	license 30 days after receiving the notice from the commissioner, unless it receives a tax 
85.18 	clearance from the commissioner as provided in paragraph (c).
85.19 	(c) A licensing authority that has received a notice from the commissioner may 
85.20 	issue, transfer, renew, or not revoke the applicant's license only if (a) (1) the commissioner 
85.21 	issues a tax clearance certificate and (b) (2) the commissioner or the applicant forwards a 
85.22 	copy of the clearance to the authority. The commissioner may issue a clearance certificate 
85.23 	only if the applicant does not owe the state any uncontested delinquent taxes, penalties, or 
85.24 	interest and has filed all required returns.

85.25 	EFFECTIVE DATE. This section is effective July 1, 2014.

85.26 	Sec. 2. Minnesota Statutes 2012, section 270C.72, subdivision 3, is amended to read:
85.27 		Subd. 3.Notice and hearing. (a) The commissioner, on notifying a licensing 
85.28 	authority pursuant to subdivision 1 not to issue, transfer, or renew a license, must send a 
85.29 	copy of the notice to the applicant. If the applicant requests, in writing, within 30 days 
85.30 	of the date of the notice a hearing, a contested case hearing must be held. The hearing 
85.31 	must be held within 45 days of the date the commissioner refers the case to the Office of 
85.32 	Administrative Hearings. Notwithstanding any law to the contrary, the applicant must be 
85.33 	served with 20 days' notice in writing specifying the time and place of the hearing and the 
85.34 	allegations against the applicant. The notice may be served personally or by mail.
86.1 	(b) (a) Prior to notifying a licensing authority pursuant to subdivision 1 to revoke a 
86.2 	license, the commissioner must send a notice to the applicant of the commissioner's intent 
86.3 	to require revocation of the license and of the applicant's right to a hearing under paragraph 
86.4 	(a). If the applicant requests a hearing in writing within 30 days of the date of the notice, a 
86.5 	contested case hearing must be held. The hearing must be held within 45 days of the date 
86.6 	the commissioner refers the case to the Office of Administrative Hearings. Notwithstanding 
86.7 	any law to the contrary, the applicant must be served with 20 days notice in writing 
86.8 	specifying the time and place of the hearing and the allegations against the applicant. The 
86.9 	notice may be served personally or by mail. A license is subject to revocation when 30 
86.10 	days have passed following the date of the notice in this paragraph without the applicant 
86.11 	requesting a hearing, or, if a hearing is timely requested, upon final determination of the 
86.12 	hearing under section 14.62, subdivision 1. A license shall be revoked by the licensing 
86.13 	authority within 30 days after receiving notice from the commissioner to revoke.
86.14 	(b) The commissioner may notify a licensing authority under subdivision 1 only 
86.15 	after the requirements of paragraph (a) have been satisfied.
86.16 	(c) A hearing under this subdivision is in lieu of any other hearing or proceeding 
86.17 	provided by law arising from any action taken under subdivision 1.

86.18 	EFFECTIVE DATE. This section is effective July 1, 2014.

86.19 	Sec. 3. Minnesota Statutes 2012, section 270C.725, subdivision 1, is amended to read:
86.20 		Subdivision 1.Posting, notice. Pursuant to the authority to disclose under section 
86.21 	270B.12, subdivision 4, the commissioner shall, by the 15th of each month, submit to the 
86.22 	commissioner of public safety a list of all taxpayers, except taxpayers exempted from the 
86.23 	list in subdivision 1a, who are required to pay, withhold, or collect the tax imposed by 
86.24 	section 290.02, 290.0922, 290.92, 290.9727, 290.9728, 290.9729, or 297A.62, or local 
86.25 	sales and use tax payable to the commissioner, or a local option tax administered and 
86.26 	collected by the commissioner, and who are ten days or more delinquent in either filing a 
86.27 	tax return or paying the tax.
86.28 	The commissioner is under no obligation to list a taxpayer whose business is 
86.29 	inactive. At least ten days before notifying the commissioner of public safety, the 
86.30 	commissioner shall notify the taxpayer of the intended action.
86.31 	The commissioner of public safety shall post the list in the same manner as provided 
86.32 	in section 340A.318, subdivision 3. The list will prominently show the date of posting. If 
86.33 	a taxpayer previously listed files all returns and pays all taxes specified in this subdivision 
86.34 	then due, the commissioner shall notify the commissioner of public safety within two 
86.35 	business days.

87.1 	Sec. 4. Minnesota Statutes 2012, section 270C.725, is amended by adding a 
87.2 	subdivision to read:
87.3 		Subd. 1a.Exemption from posting. The commissioner shall exclude from the 
87.4 	list required in subdivision 1 any taxpayer that is ten or more days delinquent in paying 
87.5 	the sales and use tax under section 297A.62 or local sales or use tax payable to the 
87.6 	commissioner, if (1) these taxes are the only delinquent taxes owed by the taxpayer, 
87.7 	(2) the commissioner and taxpayer have an agreed upon written repayment schedule 
87.8 	for the delinquent taxes, and (3) the taxpayer has made the payments under the written 
87.9 	schedule in a timely fashion. Any failure to make a payment under the written schedule, 
87.10 	or a delinquency of more than ten days in other taxes listed in subdivision 1, or in other 
87.11 	payments of taxes due under section 297A.62, or local sales and use taxes collected by the 
87.12 	commissioner that are not covered by the written repayment schedule shall result in the 
87.13 	taxpayer being included in the list required in subdivision 1.

87.14 	EFFECTIVE DATE. This section is effective the day following final enactment.

87.15 	Sec. 5. Minnesota Statutes 2012, section 279.03, subdivision 2, is amended to read:
87.16 		Subd. 2.Composite judgment. Amounts included in composite judgments 
87.17 	authorized by section 279.37, subdivision 1, and confessed on or after July 1, 1982, are 
87.18 	subject to interest at the rate determined pursuant to section 549.09. Amounts confessed 
87.19 	under this authority after December 31, 1990, (a) Except as provided in paragraph (b), 
87.20 	amounts included in composite judgments authorized by section 279.37, subdivision 1, are 
87.21 	subject to interest at the rate calculated under subdivision 1a. During each calendar year, 
87.22 	interest shall accrue on the unpaid balance of the composite judgment from the time it is 
87.23 	confessed until it is paid. The rate of interest is subject to change each year in the same 
87.24 	manner that section 549.09 or subdivision 1a, whichever is applicable, for rate changes. 
87.25 	Interest on the unpaid contract balance on judgments confessed before July 1, 1982, 
87.26 	is payable at the rate applicable to the judgment at the time that it was confessed. The 
87.27 	interest rate established at the time the judgment is confessed is fixed for the duration of 
87.28 	that judgment.
87.29 	(b) A confession of judgment covering any part of a parcel classified as 1a or 1b, and 
87.30 	used as the primary homestead of the owner, is subject to interest at the rate provided in 
87.31 	section 279.37, subdivision 2, paragraph (b).

87.32 	EFFECTIVE DATE. This section is effective for confession judgments entered 
87.33 	into on or after January 1, 2015.

88.1 	Sec. 6. Minnesota Statutes 2013 Supplement, section 279.37, subdivision 2, is 
88.2 	amended to read:
88.3 		Subd. 2.Installment payments. (a) The owner of any such parcel, or any person to 
88.4 	whom the right to pay taxes has been given by statute, mortgage, or other agreement, may 
88.5 	make and file with the county auditor of the county in which the parcel is located a written 
88.6 	offer to pay the current taxes each year before they become delinquent, or to contest the 
88.7 	taxes under Minnesota Statutes 1941, sections 278.01 to 278.13, and agree to confess 
88.8 	judgment for the amount provided, as determined by the county auditor. By filing the 
88.9 	offer, the owner waives all irregularities in connection with the tax proceedings affecting 
88.10 	the parcel and any defense or objection which the owner may have to the proceedings, and 
88.11 	also waives the requirements of any notice of default in the payment of any installment or 
88.12 	interest to become due pursuant to the composite judgment to be so entered. Unless the 
88.13 	property is subject to subdivision 1a, with the offer, the owner shall (i) tender one-tenth of 
88.14 	the amount of the delinquent taxes, costs, penalty, and interest, and (ii) tender all current 
88.15 	year taxes and penalty due at the time the confession of judgment is entered. In the offer, 
88.16 	the owner shall agree to pay the balance in nine equal installments, with interest as provided 
88.17 	in section 279.03, payable annually on installments remaining unpaid from time to time, on 
88.18 	or before December 31 of each year following the year in which judgment was confessed. 
88.19 	(b) If any part of the parcel consists of real estate classified as 1a or 1b and used as the 
88.20 	homestead by the owner of the property, the commissioner of revenue shall set annually 
88.21 	the interest rate on offers made under paragraph (a) at the greater of five percent or two 
88.22 	percent above the prime rate charged by banks during the six-month period ending on 
88.23 	September 30 of that year, rounded to the nearest full percent, provided that the rate must 
88.24 	not exceed the maximum annum rate specified under section 279.03, subdivision 1a. The 
88.25 	rate of interest becomes effective on January 1 of the immediately succeeding year. If a 
88.26 	default occurs in the payments under any confessed judgment entered under this paragraph, 
88.27 	the taxes and penalties due are subject to the interest rate specified in section 279.03.
88.28 	For the purposes of this subdivision:
88.29 	(1) the term "prime rate charged by banks" means the average predominant prime 
88.30 	rate quoted by commercial banks to large businesses, as determined by the Board of 
88.31 	Governors of the Federal Reserve System; and
88.32 	(2) "default" means the cancellation of the confession of judgment due to 
88.33 	nonpayment of the current year tax or failure to make any installment payment required by 
88.34 	this confessed judgment within 60 days from the date on which payment was due.
88.35 	(c) The interest rate established at the time judgment is confessed is fixed for the 
88.36 	duration of the judgment. By October 15 of each year, the commissioner of revenue must 
89.1 	determine the rate of interest as provided under paragraph (b) and, by November 1 of each 
89.2 	year, must certify the rate to the county auditor.
89.3 	(d) A qualified property owner eligible to enter into a second confession of judgment 
89.4 	may do so at the interest rate provided in paragraph (b).
89.5 	(e) Repurchase agreements or contracts for repurchase for properties being 
89.6 	repurchased under section 282.261 are not eligible to receive the interest rate under 
89.7 	paragraph (b).
89.8 	(f) The offer must be substantially as follows:
89.9 	"To the court administrator of the district court of ........... county, I, ....................., 
89.10 	am the owner of the following described parcel of real estate located in .................... 
89.11 	county, Minnesota:
89.12 	.............................. Upon that real estate there are delinquent taxes for the year ........., and 
89.13 	prior years, as follows: (here insert year of delinquency and the total amount of delinquent 
89.14 	taxes, costs, interest, and penalty). By signing this document I offer to confess judgment in 
89.15 	the sum of $...... and waive all irregularities in the tax proceedings affecting these taxes and 
89.16 	any defense or objection which I may have to them, and direct judgment to be entered for 
89.17 	the amount stated above, minus the sum of $............, to be paid with this document, which 
89.18 	is one-tenth or one-fifth of the amount of the taxes, costs, penalty, and interest stated above. 
89.19 	I agree to pay the balance of the judgment in nine or four equal, annual installments, with 
89.20 	interest as provided in section 279.03, payable annually, on the installments remaining 
89.21 	unpaid. I agree to pay the installments and interest on or before December 31 of each year 
89.22 	following the year in which this judgment is confessed and current taxes each year before 
89.23 	they become delinquent, or within 30 days after the entry of final judgment in proceedings 
89.24 	to contest the taxes under Minnesota Statutes, sections 278.01 to 278.13.
89.25 	Dated .............., ......."

89.26 	EFFECTIVE DATE. This section shall be effective for confession judgments 
89.27 	entered into on or after January 1, 2015.

89.28 	Sec. 7. Minnesota Statutes 2013 Supplement, section 360.531, subdivision 2, is 
89.29 	amended to read:
89.30 		Subd. 2.Rate. The tax shall be as follows:

89.31	Base Price
		Tax
	
89.32
89.33	Under $499,999
 Not over $500,000
		$100
	
89.34
89.35	over $500,000 to $999,999
 but not over $1,000,000
		$200
	
90.1
90.2	over $1,000,000 to $2,499,999
 but not over $2,500,000
		$2,000
	
90.3
90.4	over $2,500,000 to $4,999,999
 but not over $5,000,000
		$4,000
	
90.5
90.6	over $5,000,000 to $7,499,999
 but not over $7,500,000
		$7,500
	
90.7
90.8	over $7,500,000 to $9,999,999
 but not over $10,000,000
		$10,000
	
90.990.10
	over $10,000,000 to $12,499,999
 but not over $12,500,000
		$12,500
	
90.11
90.12	over $12,500,000 to $14,999,999
 but not over $15,000,000
		$15,000
	
90.13
90.14	over $15,000,000 to $17,499,999
 but not over $17,500,000
		$17,500
	
90.15
90.16	over $17,500,000 to $19,999,999
 but not over $20,000,000
		$20,000
	
90.17
90.18	over $20,000,000 to $22,499,999
 but not over $22,500,000
		$22,500
	
90.19
90.20	over $22,500,000 to $24,999,999
 but not over $25,000,000
		$25,000
	
90.21
90.22	over $25,000,000 to $27,499,999
 but not over $27,500,000
		$27,500
	
90.23
90.24	over $27,500,000 to $29,999,999
 but not over $30,000,000
		$30,000
	
90.25
90.26	over $30,000,000 to $39,999,999
 but not over $40,000,000
		$50,000
	
90.27	over $40,000,000 and over
		$75,000

90.28 	EFFECTIVE DATE. This section is effective July 1, 2014, and applies to aircraft 
90.29 	tax due on or after that date.

90.30 	Sec. 8. Minnesota Statutes 2012, section 383E.21, subdivision 1, is amended to read:
90.31 		Subdivision 1.Authority to levy property taxes and incur debt. (a) To finance the 
90.32 	cost of designing, constructing, and acquiring countywide public safety improvements 
90.33 	and equipment, including personal property, benefiting both Anoka County and the 
90.34 	municipalities located within Anoka County, the governing body of Anoka County may
90.35 	 levy property taxes for public safety improvements and equipment, and issue:
90.36 	(1) capital improvement bonds under the provisions of section 373.40 as if the 
90.37 	infrastructure and equipment qualified as a "capital improvement" within the meaning of 
90.38 	section 373.40, subdivision 1, paragraph (b); and
90.39 	(2) capital notes under the provisions of section 373.01, subdivision 3, as if the 
90.40 	equipment qualified as "capital equipment" within the meaning of section 373.01, 
90.41 	subdivision 3. Personal property acquired with the proceeds of the bonds or capital 
91.1 	notes issued under this section must have an expected useful life at least as long as the 
91.2 	term of debt.
91.3 	(b) The outstanding principal amount of the bonds and the capital notes issued under 
91.4 	this section may not exceed $8,000,000 at any time. Any bonds or notes issued pursuant 
91.5 	to this section must only be issued after approval by a majority vote of the Anoka County 
91.6 	Joint Law Enforcement Council, a joint powers board.

91.7 	EFFECTIVE DATE. This section is effective beginning for taxes payable in 2013 
91.8 	and expires under Minnesota Statutes, section 383E.21, subdivision 3.

91.9 	Sec. 9. Minnesota Statutes 2012, section 383E.21, subdivision 2, is amended to read:
91.10 		Subd. 2.Treatment of levy. Notwithstanding sections 275.065, subdivision 3, 
91.11 	and 276.04, the county may report the tax attributable to any levy to fund public safety 
91.12 	capital improvements or equipment projects approved by the Anoka County Joint Law 
91.13 	Enforcement Council or pay principal and interest on bonds or notes issued under this 
91.14 	section as a separate line item on the proposed property tax notice and the property tax 
91.15 	statement. Notwithstanding any provision in chapter 275 or 373 to the contrary, bonds or 
91.16 	notes issued by Anoka County under this section must not be included in the computation 
91.17 	of the net debt of Anoka County.

91.18 	EFFECTIVE DATE. This section is effective beginning for taxes payable in 2013 
91.19 	and expires under Minnesota Statutes, section 383E.21, subdivision 3.

91.20 	Sec. 10. Minnesota Statutes 2013 Supplement, section 469.169, is amended by adding 
91.21 	a subdivision to read:
91.22 		Subd. 20.Additional zone allocations. $3,000,000 is allocated per year for calendar 
91.23 	years 2014 through 2019 for tax reductions in border city enterprise zones and border city 
91.24 	development zones. The commissioner shall allocate this amount among the cities on a 
91.25 	per capita basis. Allocations may be used for tax reductions for that year under either:
91.26 	(1) the border city enterprise zone program under section 469.171, or for other 
91.27 	offsets of taxes imposed on or remitted by businesses located in the enterprise zone, if 
91.28 	the municipality determines that the granting of the tax reduction or offset is necessary to 
91.29 	retain a business within or attract a business to the zone; or
91.30 	(2) the border city development zone program under section 469.1732 or 469.1734.

91.31 	EFFECTIVE DATE. This section is effective July 1, 2014, but only $1,500,000 is 
91.32 	available in calendar year 2014.

92.1 	Sec. 11. Minnesota Statutes 2012, section 469.171, subdivision 6, is amended to read:
92.2 		Subd. 6.Additional border city tax reductions. In addition to the tax reductions 
92.3 	authorized by subdivision 1, for a border city zone, the following types of tax reductions 
92.4 	may be approved:
92.5 	(1) a credit against income tax for workers employed in the zone and not qualifying 
92.6 	for a credit under subdivision 1, clause (2), subject to a maximum of $1,500 $3,000 per 
92.7 	employee per year;
92.8 	(2) a state paid property tax credit for a portion of the property taxes paid by a 
92.9 	commercial or industrial facility located in the zone.

92.10 	EFFECTIVE DATE. This section is effective the day following final enactment.

92.11 	Sec. 12. CARLTON COUNTY; LEVY FOR SOIL AND WATER 
92.12 	CONSERVATION DISTRICT.
 92.13 		Subdivision 1.Definitions. (a) For the purposes of this section, "district" means 
92.14 	the Carlton County Soil and Water Conservation District.
92.15 	(b) For the purposes of this section, "county" means Carlton County.
92.16 		Subd. 2.Special project levy. Notwithstanding any law to the contrary, the county 
92.17 	may levy ad valorem property taxes on taxable property within the area of its jurisdiction 
92.18 	for the purposes specified in subdivision 3. The proceeds of the tax must be placed in a 
92.19 	separate account and used only for the purposes specified in subdivision 3. The amount 
92.20 	levied is separate from any other amount to be levied for the district by the county under 
92.21 	Minnesota Statutes, section 103C.331, subdivision 16.
92.22 		Subd. 3.Purpose; limit on levy amount. (a) The county must allocate the 
92.23 	proceeds of any tax imposed under this section to the district solely to pay principal, 
92.24 	interest, and any associated costs of obtaining and servicing a loan to finance the planning, 
92.25 	constructing, and equipping of an office and storage facility for the district.
92.26 	(b) The maximum amount of the levy in any year may not exceed the amount 
92.27 	necessary, after deduction of any amount remaining from the levy imposed in prior years, 
92.28 	to pay 105 percent of the principal and interest due in the following calendar year and 
92.29 	through July 1 of the next year.
92.30 		Subd. 4.Expiration. (a) This section expires:
92.31 	(1) following the final payment of principal, interest, and any associated costs of the 
92.32 	loan under subdivision 3, or any loan or other financing that refinanced the original loan; or
92.33 	(2) if the district does not obtain the loan under subdivision 3 prior to May 1, 2017.
92.34 	(b) Upon expiration of this section, any amount remaining in the account created 
92.35 	under subdivision 2 must be transferred to the general account of the county and used to 
93.1 	reduce any amount to be levied for the district by the county under Minnesota Statutes, 
93.2 	section 103C.331, subdivision 16, for the following year, and any subsequent years, until 
93.3 	the amount remaining is exhausted.

93.4 	EFFECTIVE DATE. This section is effective the day following compliance by 
93.5 	Carlton County with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

93.6 	Sec. 13. PURPOSE STATEMENTS; TAX EXPENDITURES.
 93.7 		Subdivision 1.Authority. This section is intended to fulfill the requirement under 
93.8 	Minnesota Statutes, section 3.192, that a bill creating, renewing, or continuing a tax 
93.9 	expenditure provide a purpose for the tax expenditure and a standard or goal against 
93.10 	which its effectiveness may be measured.
93.11 		Subd. 2.Income tax subtraction for discharge of indebtedness income. The 
93.12 	provisions of article 4, section 7, clause (21), are intended to exclude from state taxation in 
93.13 	2014 amounts otherwise recognizable as income but excluded at the federal level for tax 
93.14 	years 2007 through 2013 in response to the national housing crisis.
93.15 		Subd. 3.Income tax subtraction for military pay; Active Guard/Reserve 
93.16 	members of the National Guard. The provisions of article 4, section 7, clause (10), are 
93.17 	intended to provide equitable tax treatment to Minnesota residents who are members of 
93.18 	the National Guard and serve full time in Active Guard/Reserve (AGR) status by allowing 
93.19 	an income tax subtraction for military pay equivalent to that allowed under Minnesota 
93.20 	Statutes, section 290.01, subdivision 19b, clause (11), for Minnesota residents who serve 
93.21 	full time in the armed forces of the United States.
93.22 		Subd. 4.Research credit for sole proprietors. The provisions of article 4, section 
93.23 	9, are intended to provide equitable tax treatment for Minnesota businesses operated as 
93.24 	sole proprietorships by allowing sole proprietors to claim the research credit on the same 
93.25 	basis as it is allowed for businesses operated as C corporations or pass-through entities. 
93.26 		Subd. 5.Estate tax situs rule for qualified art. The provisions of article 4, section 
93.27 	12, deeming certain qualified art on loan to Minnesota nonprofit entities as property with 
93.28 	a situs outside Minnesota under the estate tax are intended to prevent the Minnesota 
93.29 	estate tax from discouraging nonresident owners of art from loaning it to Minnesota 
93.30 	nonprofit museums.
93.31 		Subd. 6.Sales of coin-operated amusement devices defined as sales for resale.
 93.32 	The provisions of article 3, section 9, defining certain coin-operated amusement devices 
93.33 	as sales for resale are intended to reduce tax pyramiding by exempting an input to a 
93.34 	taxable service.
94.1 		Subd. 7.Expansion of sales tax exemption for local governments. The provisions 
94.2 	of article 3, sections 12 and 17, modifying the sales tax on certain local government 
94.3 	purchases are intended to reduce the cost of providing local government services, 
94.4 	remove a barrier for intergovernmental cooperation, and reduce existing compliance and 
94.5 	administration costs for local governments.
94.6 		Subd. 8.Fund-raising sales by nonprofit groups. The provisions of article 3, 
94.7 	section 13, raising the limit on tax exempt fund-raising by nonprofit organizations is 
94.8 	intended to reflect the impact on inflation over time on the limit and reduce compliance 
94.9 	costs for groups that exceed the limit.
94.10 		Subd. 10.Microdistillery credit. The provisions of article 3, section 19, allowing a 
94.11 	microdistillery credit is to relieve small distillers of the burden of paying excise tax on 
94.12 	the distribution of free samples of their products and to encourage the development and 
94.13 	marketing of products by niche distillers in the state.

94.14 	EFFECTIVE DATE. This section is effective the day following final enactment.

94.15 	ARTICLE 8
94.16 	UNSESSION

94.17 	Section 1. Minnesota Statutes 2012, section 16D.02, subdivision 3, is amended to read:
94.18 		Subd. 3.Debt. "Debt" means an amount owed to the state directly, or through a 
94.19 	state agency, on account of a fee, duty, lease, direct loan, loan insured or guaranteed by 
94.20 	the state, rent, service, sale of real or personal property, overpayment, fine, assessment, 
94.21 	penalty, restitution, damages, interest, tax, bail bond, forfeiture, reimbursement, liability 
94.22 	owed, an assignment to the state including assignments under section 256.741, the Social 
94.23 	Security Act, or other state or federal law, recovery of costs incurred by the state, or any 
94.24 	other source of indebtedness to the state. Debt also includes amounts owed to individuals 
94.25 	as a result of civil, criminal, or administrative action brought by the state or a state agency 
94.26 	pursuant to its statutory authority or for which the state or state agency acts in a fiduciary 
94.27 	capacity in providing collection services in accordance with the regulations adopted under 
94.28 	the Social Security Act at Code of Federal Regulations, title 45, section 302.33. When 
94.29 	the commissioner provides collection services pursuant to a debt qualification plan to a 
94.30 	referring agency, debt also includes an amount owed to the courts, local government 
94.31 	units, Minnesota state colleges and universities governed by the Board of Trustees of the 
94.32 	Minnesota State Colleges and Universities, or University of Minnesota.

94.33 	EFFECTIVE DATE. This section is effective the day following final enactment.

95.1 	Sec. 2. Minnesota Statutes 2012, section 16D.02, subdivision 6, is amended to read:
95.2 		Subd. 6.Referring agency. "Referring agency" means a state agency, local 
95.3 	government unit, Minnesota state colleges and universities governed by the Board of 
95.4 	Trustees of the Minnesota State Colleges and Universities, University of Minnesota, or a 
95.5 	court, that has entered into a debt qualification plan an agreement with the commissioner 
95.6 	to refer debts to the commissioner for collection.

95.7 	EFFECTIVE DATE. This section is effective the day following final enactment.

95.8 	Sec. 3. Minnesota Statutes 2012, section 16D.04, subdivision 3, is amended to read:
95.9 		Subd. 3.Services. The commissioner shall provide collection services for a state 
95.10 	agency, and may provide for collection services for a court, in accordance with the terms and 
95.11 	conditions of a signed debt qualification plan referring agencies other than state agencies.

95.12 	EFFECTIVE DATE. This section is effective the day following final enactment.

95.13 	Sec. 4. Minnesota Statutes 2012, section 16D.04, subdivision 4, is amended to read:
95.14 		Subd. 4.Authority to contract. The commissioners commissioner of revenue and 
95.15 	management and budget may contract with credit bureaus, private collection agencies, and 
95.16 	other entities as necessary for the collection of debts. A private collection agency acting 
95.17 	under a contract with the commissioner of revenue or management and budget is subject 
95.18 	to sections 332.31 to 332.45, except that the private collection agency may indicate that it 
95.19 	is acting under a contract with the state. The commissioner may not delegate the powers 
95.20 	provided under section 16D.08 to any nongovernmental entity.

95.21 	EFFECTIVE DATE. This section is effective the day following final enactment.

95.22 	Sec. 5. Minnesota Statutes 2012, section 16D.07, is amended to read:
95.23 	16D.07 NOTICE TO DEBTOR.
95.24 	The referring agency shall send notice to the debtor by United States mail or 
95.25 	personal delivery at the debtor's last known address at least 20 days before the debt is 
95.26 	referred to the commissioner. The notice must state the nature and amount of the debt, 
95.27 	identify to whom the debt is owed, and inform the debtor of the remedies available under 
95.28 	this chapter. The referring agency shall advise the debtor of collection costs imposed 
95.29 	under section 16D.11 and of the debtor's right to cancellation of collection costs under 
95.30 	section 16D.11, subdivision 3.

95.31 	EFFECTIVE DATE. This section is effective the day following final enactment.

96.1 	Sec. 6. Minnesota Statutes 2012, section 16D.11, subdivision 1, is amended to read:
96.2 		Subdivision 1.Imposition. As determined by the commissioner of management and 
96.3 	budget revenue, collection costs shall be added to the debts referred to the commissioner 
96.4 	or private collection agency for collection. Collection costs are collectible by the 
96.5 	commissioner or private agency from the debtor at the same time and in the same 
96.6 	manner as the referred debt. The referring agency shall advise the debtor of collection 
96.7 	costs under this section and the debtor's right to cancellation of collection costs under 
96.8 	subdivision 3 at the time the agency sends notice to the debtor under section 16D.07.
96.9 	 If the commissioner or private agency collects an amount less than the total due, the 
96.10 	payment is applied proportionally to collection costs and the underlying debt unless 
96.11 	the commissioner of management and budget has waived this requirement for certain 
96.12 	categories of debt pursuant to the department's internal guidelines. Collection costs 
96.13 	collected by the commissioner under this subdivision or retained under subdivision 6 shall 
96.14 	be deposited in the general fund as nondedicated receipts. Collection costs collected by 
96.15 	private agencies are appropriated to the referring agency to pay the collection fees charged 
96.16 	by the private agency. Collections of collection costs in excess of collection agency fees 
96.17 	must be deposited in the general fund as nondedicated receipts.

96.18 	EFFECTIVE DATE. This section is effective the day following final enactment.

96.19 	Sec. 7. Minnesota Statutes 2012, section 16D.11, subdivision 3, is amended to read:
96.20 		Subd. 3.Cancellation. Collection costs imposed under subdivision 1 shall be 
96.21 	canceled and subtracted from the amount due if:
96.22 	(1) the debtor's household income as defined in section 290A.03, subdivision 5, 
96.23 	excluding the exemption subtractions in subdivision 3, paragraph (3) of that section, for 
96.24 	the 12 months preceding the date of referral is less than twice the annual federal poverty 
96.25 	guideline under United States Code, title 42, section 9902, subsection (2);
96.26 	(2) within 60 days after the first contact with the debtor by the enterprise
96.27 	 commissioner or collection agency, the debtor establishes reasonable cause for the failure 
96.28 	to pay the debt prior to referral of the debt to the enterprise commissioner;
96.29 	(3) a good faith dispute as to the legitimacy or the amount of the debt is made, 
96.30 	and payment is remitted or a payment agreement is entered into within 30 days after 
96.31 	resolution of the dispute;
96.32 	(4) good faith litigation occurs and the debtor's position is substantially justified, and 
96.33 	if the debtor does not totally prevail, the debt is paid or a payment agreement is entered 
96.34 	into within 30 days after the judgment becomes final and nonappealable; or
97.1 	(5) collection costs have been added by the referring agency and are included in 
97.2 	the amount of the referred debt.

97.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

97.4 	Sec. 8. Minnesota Statutes 2012, section 16D.11, subdivision 7, is amended to read:
97.5 		Subd. 7.Adjustment of rate. By June 1 of each year, the commissioner shall 
97.6 	determine the rate of collection costs for debts referred to the enterprise commissioner
97.7 	 during the next fiscal year. The rate is a percentage of the debts in an amount that most 
97.8 	nearly equals the costs of the enterprise commissioner necessary to process and collect 
97.9 	referred debts under this chapter. In no event shall the rate of the collection costs exceed 
97.10 	25 percent of the debt. Determination of the rate of collection costs under this section is 
97.11 	not subject to the fee setting requirements of section 16A.1283.

97.12 	EFFECTIVE DATE. This section is effective the day following final enactment.

97.13 	Sec. 9. Minnesota Statutes 2012, section 84A.20, subdivision 2, is amended to read:
97.14 		Subd. 2.County proposal to state. Under certain conditions, The board of county 
97.15 	commissioners of any county may by resolution propose to the state that one or more 
97.16 	areas in the county be taken over by the state for afforestation, reforestation, flood control 
97.17 	projects, or other state purposes. The projects are to be managed, controlled, and used for 
97.18 	the purposes in subdivision 1 on lands to be acquired by the state within the projects, as set 
97.19 	forth in sections 84A.20 to 84A.30. The county board may propose this if (1) the county 
97.20 	contains lands suitable for the purposes in subdivision 1, (2) on January 1, 1931, the taxes 
97.21 	on more than 35 percent of the taxable land in the county are delinquent, (3) on January 1, 
97.22 	1931, the county's bonded ditch indebtedness, including accrued interest, equals or exceeds 
97.23 	nine percent of the assessed valuation of the county, exclusive of money and credits.
97.24 	The area taken over must include lands that have been assessed for all or part of 
97.25 	the cost of the establishment and construction of public drainage ditches under state law, 
97.26 	and on which the assessments or installments are delinquent. A certified copy of the 
97.27 	county board's resolution must be filed with the department and considered and acted 
97.28 	upon by the department. If approved by the department, it must then be submitted to, 
97.29 	considered, and acted upon by the executive council. If approved by the Executive 
97.30 	Council, the proposition must be formally accepted by the governor. Acceptance must be 
97.31 	communicated in writing to and filed with the county auditor.

97.32 	EFFECTIVE DATE. This section is effective the day following final enactment.

98.1 	Sec. 10. Minnesota Statutes 2012, section 84A.31, subdivision 2, is amended to read:
98.2 		Subd. 2.County proposal to state. Under certain conditions, The board of county 
98.3 	commissioners of any county may by resolution propose that the state take over part of the 
98.4 	tax-delinquent lands in the county. The board may propose this if:
98.5 	(1) the county contains land suitable for the purposes in subdivision 1;.
98.6 	(2) on January 1, 1933, the taxes on more than 25 percent of the acreage of the lands 
98.7 	in a town in the county are delinquent, as shown by its tax books;
98.8 	(3) on January 1, 1933, the taxes or ditch assessments on more than 50 percent of the 
98.9 	acreage of the lands to be taken over are delinquent, as shown by the county's tax books; and
98.10 	(4) on January 1, 1933, the bonded ditch indebtedness of the county equals or 
98.11 	exceeds 15 percent of the assessed value of the county for 1932 as fixed by the Minnesota 
98.12 	Tax Commission, exclusive of money and credits.

98.13 	EFFECTIVE DATE. This section is effective the day following final enactment.

98.14 	Sec. 11. Minnesota Statutes 2012, section 115B.49, subdivision 4, is amended to read:
98.15 		Subd. 4.Registration; fees. (a) The owner or operator of a dry cleaning facility 
98.16 	shall register on or before October 1 of each year with the commissioner of revenue in 
98.17 	a manner prescribed by the commissioner of revenue and pay a registration fee for the 
98.18 	facility. The amount of the fee is:
98.19 	(1) $500, for facilities with a full-time equivalence of fewer than five;
98.20 	(2) $1,000, for facilities with a full-time equivalence of five to ten; and
98.21 	(3) $1,500, for facilities with a full-time equivalence of more than ten.
98.22 	The registration fee must be paid on or before October 18 or the owner or operator 
98.23 	of a dry cleaning facility may elect to pay the fee in equal installments. Installment 
98.24 	payments must be paid on or before October 18, on or before January 18, on or before 
98.25 	April 18, and on or before June 18. All payments made after October 18 bear interest 
98.26 	at the rate specified in section 270C.40.
98.27 	(b) A person who sells dry cleaning solvents for use by dry cleaning facilities in 
98.28 	the state shall collect and remit to the commissioner of revenue in a the same manner 
98.29 	prescribed by the commissioner of revenue, on or before the 20th day of the month 
98.30 	following the month in which the sales of dry cleaning solvents are made for the taxes 
98.31 	imposed under chapter 297A, a fee of:
98.32 	(1) $3.50 for each gallon of perchloroethylene sold for use by dry cleaning facilities 
98.33 	in the state;
98.34 	(2) 70 cents for each gallon of hydrocarbon-based dry cleaning solvent sold for use 
98.35 	by dry cleaning facilities in the state; and
99.1 	(3) 35 cents for each gallon of other nonaqueous solvents sold for use by dry 
99.2 	cleaning facilities in the state.
99.3 	(c) The audit, assessment, appeal, collection, enforcement, and administrative 
99.4 	provisions of chapters 270C and 289A apply to the fee imposed by this subdivision. To 
99.5 	enforce this subdivision, the commissioner of revenue may grant extensions to file returns 
99.6 	and pay fees, impose penalties and interest on the annual registration fee under paragraph 
99.7 	(a) and the monthly fee under paragraph (b), and abate penalties and interest in the manner 
99.8 	provided in chapters 270C and 289A. The penalties and interest imposed on taxes under 
99.9 	chapter 297A apply to the fees imposed under this subdivision. Disclosure of data collected 
99.10 	by the commissioner of revenue under this subdivision is governed by chapter 270B.

99.11 	EFFECTIVE DATE. This section is effective for fees due after June 30, 2014.

99.12 	Sec. 12. Minnesota Statutes 2012, section 163.06, subdivision 1, is amended to read:
99.13 		Subdivision 1.Levy. The county board of any county in which there are unorganized 
99.14 	townships may levy a tax for road and bridge purposes upon all the real and personal 
99.15 	property in such unorganized townships, exclusive of money and credits taxed under the 
99.16 	provisions of chapter 285.

99.17 	EFFECTIVE DATE. This section is effective the day following final enactment.

99.18 	Sec. 13. Minnesota Statutes 2012, section 270.11, subdivision 1, is amended to read:
99.19 		Subdivision 1.To act as State Board of Equalization. The commissioner of 
99.20 	revenue shall have and exercise all the rights, powers and authority by law vested in the 
99.21 	State Board of Equalization, which board of equalization is hereby continued, with full 
99.22 	power and authority to review, modify, and revise all of the acts and proceedings of the 
99.23 	commissioner in so far as they relate to the equalization and valuation of property assessed 
99.24 	for taxation, as prescribed by section 270.12.

99.25 	EFFECTIVE DATE. This section is effective the day following final enactment.

99.26 	Sec. 14. Minnesota Statutes 2012, section 270.12, subdivision 2, is amended to read:
99.27 		Subd. 2.Meeting dates; duties. The board shall meet annually between April 15 
99.28 	and June 30 at the office of the commissioner of revenue and examine and compare the 
99.29 	returns of the assessment of the property in the several counties, and equalize the same so 
99.30 	that all the taxable property in the state shall be assessed at its market value, subject to 
99.31 	the following rules:
100.1 	(1) The board shall add to or deduct from the aggregate valuation of the real property 
100.2 	of every county, which the board believes to be valued below or above its market value in 
100.3 	money, such percent as will bring the same to its market value in money;
100.4 	(2) The board shall deduct from the aggregate valuation of the real property of every 
100.5 	county, which the board believes to be valued above its market value in money, such 
100.6 	percent as will reduce the same to its market value in money;
100.7 	(3) (2) If the board believes the valuation for a part of a class determined by a range 
100.8 	of market value under clause (8) (6) or otherwise, a class, or classes of the real property of 
100.9 	any town or district in any county, or the valuation for a part of a class, a class, or classes 
100.10 	of the real property of any county not in towns or cities, should be raised or reduced, 
100.11 	without raising or reducing the other real property of such county, or without raising or 
100.12 	reducing it in the same ratio, the board may add to, or take from, the valuation of a part of 
100.13 	a class, a class, or classes in any one or more of such towns or cities, or of the property not 
100.14 	in towns or cities, such percent as the board believes will raise or reduce the same to its 
100.15 	market value in money;
100.16 	(4) (3) The board shall add to or take from the aggregate valuation of any part of a 
100.17 	class, a class, or classes of personal property of any county, town, or city, which the 
100.18 	board believes to be valued below or above the market value thereof, such percent as will 
100.19 	raise the same to its market value in money;
100.20 	(5) The board shall take from the aggregate valuation of any part of a class, a class, 
100.21 	or classes of personal property in any county, town or city, which the board believes to 
100.22 	be valued above the market value thereof, such percent as will reduce the same to its 
100.23 	market value in money;
100.24 	(6) (4) The board shall not reduce the aggregate valuation of all the property of the 
100.25 	state, as returned by the several county auditors, more than one percent on the whole 
100.26 	valuation thereof;
100.27 	(7) (5) When it would be of assistance in equalizing values the board may require any 
100.28 	county auditor to furnish statements showing assessments of real and personal property 
100.29 	of any individuals, firms, or corporations within the county. The board shall consider 
100.30 	and equalize such assessments and may increase the assessment of individuals, firms, or 
100.31 	corporations above the amount returned by the county board of equalization when it shall 
100.32 	appear to be undervalued, first giving notice to such persons of the intention of the board 
100.33 	so to do, which notice shall fix a time and place of hearing. The board shall not decrease 
100.34 	any such assessment below the valuation placed by the county board of equalization;
100.35 	(8) (6) In equalizing values pursuant to this section, the board shall utilize a 12-month 
100.36 	assessment/sales ratio study conducted by the Department of Revenue containing only 
101.1 	sales that are filed in the county auditor's office under section 272.115, by November 1 of 
101.2 	the previous year and that occurred between October 1 of the year immediately preceding 
101.3 	the previous year and September 30 of the previous year.
101.4 	The assessment/sales ratio study may separate the values of residential property 
101.5 	into market value categories. The board may adjust the market value categories and the 
101.6 	number of categories as necessary to create an adequate sample size for each market value 
101.7 	category. The board may determine the adequate sample size. To the extent practicable, 
101.8 	the methodology used in preparing the assessment/sales ratio study must be consistent 
101.9 	with the most recent Standard on Assessment Sales Ratio Studies published by the 
101.10 	Assessment Standards Committee of the International Association of Assessing Officers. 
101.11 	The board may determine the geographic area used in preparing the study to accurately 
101.12 	equalize values. A sales ratio study separating residential property into market value 
101.13 	categories may not be used as the basis for a petition under chapter 278.
101.14 	The sales prices used in the study must be discounted for terms of financing. The 
101.15 	board shall use the median ratio as the statistical measure of the level of assessment for 
101.16 	any particular category of property; and
101.17 	(9) (7) The board shall receive from each county the estimated market values on the 
101.18 	assessment date falling within the study period for all parcels by magnetic tape or other a
101.19 	 medium as prescribed by the commissioner of revenue.

101.20 	EFFECTIVE DATE. This section is effective the day following final enactment.

101.21 	Sec. 15. Minnesota Statutes 2012, section 270.12, subdivision 4, is amended to read:
101.22 		Subd. 4.Public utility property. For purposes of equalization only, public utility 
101.23 	personal property shall be treated as a separate class of property notwithstanding the fact 
101.24 	that its class rate is the same as commercial-industrial property.

101.25 	EFFECTIVE DATE. This section is effective the day following final enactment.

101.26 	Sec. 16. Minnesota Statutes 2012, section 270A.03, subdivision 2, is amended to read:
101.27 		Subd. 2.Claimant agency. "Claimant agency" means any state agency, as defined 
101.28 	by section 14.02, subdivision 2, the regents of the University of Minnesota, any district 
101.29 	court of the state, any county, any statutory or home rule charter city, including a city that 
101.30 	is presenting a claim for a municipal hospital or a public library or a municipal ambulance 
101.31 	service, a hospital district, a private nonprofit hospital that leases its building from the 
101.32 	county or city in which it is located, any ambulance service licensed under chapter 144E, 
101.33 	any public agency responsible for child support enforcement, any public agency responsible 
102.1 	for the collection of court-ordered restitution, and any public agency established by 
102.2 	general or special law that is responsible for the administration of a low-income housing 
102.3 	program, and the Minnesota collection enterprise as defined in section 16D.02, subdivision 
102.4 	8, for the purpose of collecting the costs imposed under section 16D.11.

102.5 	EFFECTIVE DATE. This section is effective the day following final enactment.

102.6 	Sec. 17. Minnesota Statutes 2012, section 270B.14, subdivision 3, is amended to read:
102.7 		Subd. 3.Administration of enterprise,and job opportunity, and biotechnology 
102.8 	and health sciences industry zone programs. The commissioner may disclose return 
102.9 	information relating to the taxes imposed by chapters 290 and 297A to the Department of 
102.10 	Employment and Economic Development or a municipality with a border city enterprise 
102.11 	zone as defined under section 469.166, but only as necessary to administer the funding 
102.12 	limitations under section 469.169, or to the Department of Employment and Economic 
102.13 	Development and appropriate officials from the local government units in which a 
102.14 	qualified business is located but only as necessary to enforce the job opportunity building 
102.15 	zone benefits under section 469.315, or biotechnology and health sciences industry zone 
102.16 	benefits under section 469.336.

102.17 	EFFECTIVE DATE. This section is effective the day following final enactment.

102.18 	Sec. 18. Minnesota Statutes 2012, section 270C.085, is amended to read:
102.19 	270C.085 NOTIFICATION REQUIREMENTS; SALES AND USE TAXES.
102.20 	The commissioner of revenue shall establish a means of electronically notifying 
102.21 	persons holding a sales tax permit under section 297A.84 of any statutory change in 
102.22 	chapter 297A and any issuance or change in any administrative rule, revenue notice, or 
102.23 	sales tax fact sheet or other written information provided by the department explaining the 
102.24 	interpretation or administration of the tax imposed under that chapter. The notification 
102.25 	must indicate the basic subject of the statute, rule, fact sheet, or other material and provide 
102.26 	an electronic link to the material. Any person holding a sales tax permit that provides 
102.27 	an electronic address to the department must receive these notifications unless they 
102.28 	specifically request electronically, or in writing, to be removed from the notification list. 
102.29 	This requirement does not replace traditional means of notifying the general public or 
102.30 	persons without access to electronic communications of changes in the sales tax law. The 
102.31 	electronic notification must begin no later than December 31, 2009.

102.32 	EFFECTIVE DATE. This section is effective the day following final enactment.

103.1 	Sec. 19. Minnesota Statutes 2012, section 270C.52, subdivision 2, is amended to read:
103.2 		Subd. 2.Payment agreements. (a) When any portion of any tax payable to the 
103.3 	commissioner together with interest and penalty thereon, if any, has not been paid, the 
103.4 	commissioner may extend the time for payment for a further period. When the authority 
103.5 	of this section is invoked, the extension shall be evidenced by written agreement signed by 
103.6 	the taxpayer and the commissioner, stating the amount of the tax with penalty and interest, 
103.7 	if any, and providing for the payment of the amount in installments.
103.8 	(b) The agreement may contain a confession of judgment for the amount and for any 
103.9 	unpaid portion thereof. If the agreement contains a confession of judgment, the confession 
103.10 	of judgment must provide that the commissioner may enter judgment against the taxpayer 
103.11 	in the district court of the county of residence as shown upon the taxpayer's tax return for 
103.12 	the unpaid portion of the amount specified in the extension agreement.
103.13 	(c) The agreement shall provide that it can be terminated, after notice by the 
103.14 	commissioner, if information provided by the taxpayer prior to the agreement was 
103.15 	inaccurate or incomplete, collection of the tax covered by the agreement is in jeopardy, 
103.16 	there is a subsequent change in the taxpayer's financial condition, the taxpayer has failed 
103.17 	to make a payment due under the agreement, or the taxpayer has failed to pay any other 
103.18 	tax or file a tax return coming due after the agreement.
103.19 	(d) The notice must be given at least 14 calendar days prior to termination, and shall 
103.20 	advise the taxpayer of the right to request a reconsideration from the commissioner of 
103.21 	whether termination is reasonable and appropriate under the circumstances. A request for 
103.22 	reconsideration does not stay collection action beyond the 14-day notice period. If the 
103.23 	commissioner has reason to believe that collection of the tax covered by the agreement 
103.24 	is in jeopardy, the commissioner may proceed under section 270C.36 and terminate the 
103.25 	agreement without regard to the 14-day period.
103.26 	(e) The commissioner may accept other collateral the commissioner considers 
103.27 	appropriate to secure satisfaction of the tax liability. The principal sum specified in the 
103.28 	agreement shall bear interest at the rate specified in section 270C.40 on all unpaid portions 
103.29 	thereof until the same has been fully paid or the unpaid portion thereof has been entered as 
103.30 	a judgment. The judgment shall bear interest at the rate specified in section 270C.40.
103.31 	(f) If it appears to the commissioner that the tax reported by the taxpayer is in excess 
103.32 	of the amount actually owing by the taxpayer, the extension agreement or the judgment 
103.33 	entered pursuant thereto shall be corrected. If after making the extension agreement 
103.34 	or entering judgment with respect thereto, the commissioner determines that the tax as 
103.35 	reported by the taxpayer is less than the amount actually due, the commissioner shall 
103.36 	assess a further tax in accordance with the provisions of law applicable to the tax.
104.1 	(g) The authority granted to the commissioner by this section is in addition to any 
104.2 	other authority granted to the commissioner by law to extend the time of payment or the 
104.3 	time for filing a return and shall not be construed in limitation thereof.
104.4 	(h) The commissioner shall charge a fee for entering into payment agreements that 
104.5 	reflects the commissioner's costs for entering into payment agreements. The fee is set at 
104.6 	$50 and is charged for entering into a payment agreement, for entering into a new payment 
104.7 	agreement after the taxpayer has defaulted on a prior agreement, and for entering into a 
104.8 	new payment agreement as a result of renegotiation of the terms of an existing agreement. 
104.9 	The fee is paid to the commissioner before the payment agreement becomes effective and 
104.10 	does not reduce the amount of the liability.

104.11 	EFFECTIVE DATE. This section is effective the day following final enactment.

104.12 	Sec. 20. Minnesota Statutes 2012, section 272.01, subdivision 1, is amended to read:
104.13 		Subdivision 1.Generally taxable. All real and personal property in this state, and 
104.14 	all personal property of persons residing therein, including the property of corporations, 
104.15 	banks, banking companies, and bankers, is taxable, except Indian lands and such other 
104.16 	property as is by law exempt from taxation.

104.17 	EFFECTIVE DATE. This section is effective the day following final enactment.

104.18 	Sec. 21. Minnesota Statutes 2012, section 272.01, subdivision 3, is amended to read:
104.19 		Subd. 3.Exceptions. The provisions of subdivision 2 shall not apply to:
104.20 	(a) Federal property for which payments are made in lieu of taxes in amounts 
104.21 	equivalent to taxes which might otherwise be lawfully assessed;
104.22 	(b) Real estate exempt from ad valorem taxes and taxes in lieu thereof which is 
104.23 	leased, loaned, or otherwise made available to telephone companies or electric, light 
104.24 	and power companies upon which personal property consisting of transmission and 
104.25 	distribution lines is situated and assessed pursuant to sections 273.37, 273.38, 273.40
104.26 	and 273.41, or upon which are situated the communication lines of express, railway, or 
104.27 	telephone or telegraph companies, or pipelines used for the transmission and distribution 
104.28 	of petroleum products, or the equipment items of a cable communications company 
104.29 	subject to sections 238.35 to 238.42;
104.30 	(c) Property presently owned by any educational institution chartered by the 
104.31 	territorial legislature;
104.32 	(d) Indian lands;
105.1 	(e) Property of any corporation organized as a tribal corporation under the Indian 
105.2 	Reorganization Act of June 18, 1934, (Statutes at Large, volume 48, page 984);
105.3 	(f) Real property owned by the state and leased pursuant to section 161.23 or 
105.4 	161.431, and acts amendatory thereto;
105.5 	(g) Real property owned by a seaway port authority on June 1, 1967, upon which 
105.6 	there has been constructed docks, warehouses, tank farms, administrative and maintenance 
105.7 	buildings, railroad and ship terminal facilities and other maritime and transportation 
105.8 	facilities or those directly related thereto, together with facilities for the handling of 
105.9 	passengers and baggage and for the handling of freight and bulk liquids, and personal 
105.10 	property owned by a seaway port authority used or usable in connection therewith, when 
105.11 	said property is leased to a private individual, association or corporation, but only when 
105.12 	such lease provides that the said facilities are available to the public for the loading and 
105.13 	unloading of passengers and their baggage and the handling, storage, care, shipment, 
105.14 	and delivery of merchandise, freight and baggage and other maritime and transportation 
105.15 	activities and functions directly related thereto, but not including property used for grain 
105.16 	elevator facilities; it being the declared policy of this state that such property when 
105.17 	so leased is public property used exclusively for a public purpose, notwithstanding the 
105.18 	one-year limitation in the provisions of section 273.19;
105.19 	(h) Notwithstanding the provisions of clause (g), when the annual rental received by 
105.20 	a seaway port authority in any calendar year for such leased property exceeds an amount 
105.21 	reasonably required for administrative expense of the authority per year, plus promotional 
105.22 	expense for the authority not to exceed the sum of $100,000 per year, to be expended 
105.23 	when and in the manner decided upon by the commissioners, plus an amount sufficient to 
105.24 	pay all installments of principal and interest due, or to become due, during such calendar 
105.25 	year and the next succeeding year on any revenue bonds issued by the authority, plus 
105.26 	25 percent of the gross annual rental to be retained by the authority for improvement, 
105.27 	development, or other contingencies, the authority shall make a payment in lieu of real 
105.28 	and personal property taxes of a reasonable portion of the remaining annual rental to the 
105.29 	county treasurer of the county in which such seaway port authority is principally located. 
105.30 	Any such payments to the county treasurer shall be disbursed by the treasurer on the same 
105.31 	basis as real estate taxes are divided among the various governmental units, but if such 
105.32 	port authority shall have received funds from the state of Minnesota and funds from any 
105.33 	city and county pursuant to Laws 1957, chapters 648, 831, and 849 and acts amendatory 
105.34 	thereof, then such disbursement by the county treasurer shall be on the same basis as real 
105.35 	estate taxes are divided among the various governmental units, except that the portion of 
106.1 	such payments which would otherwise go to other taxing units shall be divided equally 
106.2 	among the state of Minnesota and said county and city.

106.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

106.4 	Sec. 22. Minnesota Statutes 2012, section 272.025, subdivision 1, is amended to read:
106.5 		Subdivision 1.Statement of exemption. (a) Except in the case of property owned 
106.6 	by the state of Minnesota or any political subdivision thereof, and property exempt from 
106.7 	taxation under section 272.02, subdivisions 9, 10, 13, 15, 18, 20, and 22 to 25, and at the 
106.8 	times provided in subdivision 3, a taxpayer claiming an exemption from taxation on 
106.9 	property described in section 272.02, subdivisions 1 2 to 33, must file a statement of 
106.10 	exemption with the assessor of the assessment district in which the property is located.
106.11 	(b) A taxpayer claiming an exemption from taxation on property described in section 
106.12 	272.02, subdivision 10, must file a statement of exemption with the commissioner of 
106.13 	revenue, on or before February 15 of each year for which the taxpayer claims an exemption.
106.14 	(c) In case of sickness, absence or other disability or for good cause, the assessor 
106.15 	or the commissioner may extend the time for filing the statement of exemption for a 
106.16 	period not to exceed 60 days.
106.17 	(d) The commissioner of revenue shall prescribe the form and contents of the 
106.18 	statement of exemption.

106.19 	EFFECTIVE DATE. This section is effective the day following final enactment.

106.20 	Sec. 23. Minnesota Statutes 2012, section 272.027, subdivision 1, is amended to read:
106.21 		Subdivision 1.Electricity generated to produce goods and services. Personal 
106.22 	property used to generate electric power is exempt from property taxation if the electric 
106.23 	power is used to manufacture or produce goods, products, or services, other than electric 
106.24 	power, by the owner of the electric generation plant. Except as provided in subdivisions 2 
106.25 	and 3, The exemption does not apply to property used to produce electric power for sale 
106.26 	to others and does not apply to real property. In determining the value subject to tax, 
106.27 	a proportionate share of the value of the generating facilities, equal to the proportion 
106.28 	that the power sold to others bears to the total generation of the plant, is subject to the 
106.29 	general property tax in the same manner as other property. Power generated in such a 
106.30 	plant and exchanged for an equivalent amount of power that is used for the manufacture or 
106.31 	production of goods, products, or services other than electric power by the owner of the 
106.32 	generating plant is considered to be used by the owner of the plant.

106.33 	EFFECTIVE DATE. This section is effective the day following final enactment.

107.1 	Sec. 24. Minnesota Statutes 2012, section 272.029, subdivision 6, is amended to read:
107.2 		Subd. 6.Distribution of revenues. Revenues from the taxes imposed under 
107.3 	subdivision 5 must be part of the settlement between the county treasurer and the county 
107.4 	auditor under section 276.09. The revenue must be distributed by the county auditor or the 
107.5 	county treasurer to local taxing jurisdictions in which the wind energy conversion system 
107.6 	is located as follows: beginning with distributions in 2010, 80 percent to counties; and 20 
107.7 	percent to cities and townships; and for distributions occurring in 2006 to 2009, 80 percent 
107.8 	to counties; 14 percent to cities and townships; and six percent to school districts.

107.9 	EFFECTIVE DATE. This section is effective the day following final enactment.

107.10 	Sec. 25. Minnesota Statutes 2013 Supplement, section 273.032, is amended to read:
107.11 	273.032 MARKET VALUE DEFINITION.
107.12 	(a) Unless otherwise provided, for the purpose of determining any property tax 
107.13 	levy limitation based on market value or any limit on net debt, the issuance of bonds, 
107.14 	certificates of indebtedness, or capital notes based on market value, any qualification to 
107.15 	receive state aid based on market value, or any state aid amount based on market value, 
107.16 	the terms "market value," "estimated market value," and "market valuation," whether 
107.17 	equalized or unequalized, mean the estimated market value of taxable property within the 
107.18 	local unit of government before any of the following or similar adjustments for:
107.19 	(1) the market value exclusions under:
107.20 	(i) section 273.11, subdivisions 14a and 14c (vacant platted land);
107.21 	(ii) section 273.11, subdivision 16 (certain improvements to homestead property);
107.22 	(iii) section 273.11, subdivisions 19 and 20 (certain improvements to business 
107.23 	properties);
107.24 	(iv) section 273.11, subdivision 21 (homestead property damaged by mold);
107.25 	(v) section 273.11, subdivision 22 (qualifying lead hazardous reduction projects);
107.26 	(vi) section 273.13, subdivision 34 (homestead of a disabled veteran or family 
107.27 	caregiver);
107.28 	(vii) section 273.13, subdivision 35 (homestead market value exclusion); or
107.29 	(2) the deferment of value under:
107.30 	(i) the Minnesota Agricultural Property Tax Law, section 273.111;
107.31 	(ii) the Aggregate Resource Preservation Law, section 273.1115;
107.32 	(iii)(ii) the Minnesota Open Space Property Tax Law, section 273.112;
107.33 	(iv) (iii) the rural preserves property tax program, section 273.114; or
107.34 	(v) (iv) the Metropolitan Agricultural Preserves Act, section 473H.10; or
108.1 	(3) the adjustments to tax capacity for:
108.2 	(i) tax increment financing under sections 469.174 to 469.1794;
108.3 	(ii) fiscal disparities under chapter 276A or 473F; or
108.4 	(iii) powerline credit under section 273.425.
108.5 	(b) Estimated market value under paragraph (a) also includes the market value 
108.6 	of tax-exempt property if the applicable law specifically provides that the limitation, 
108.7 	qualification, or aid calculation includes tax-exempt property.
108.8 	(c) Unless otherwise provided, "market value," "estimated market value," and 
108.9 	"market valuation" for purposes of property tax levy limitations and calculation of state 
108.10 	aid, refer to the estimated market value for the previous assessment year and for purposes 
108.11 	of limits on net debt, the issuance of bonds, certificates of indebtedness, or capital notes 
108.12 	refer to the estimated market value as last finally equalized.
108.13 	(d) For purposes of a provision of a home rule charter or of any special law that is not 
108.14 	codified in the statutes and that imposes a levy limitation based on market value or any limit 
108.15 	on debt, the issuance of bonds, certificates of indebtedness, or capital notes based on market 
108.16 	value, the terms "market value," "taxable market value," and "market valuation," whether 
108.17 	equalized or unequalized, mean "estimated market value" as defined in paragraph (a).

108.18 	EFFECTIVE DATE. This section is effective the day following final enactment.

108.19 	Sec. 26. Minnesota Statutes 2012, section 273.061, subdivision 6, is amended to read:
108.20 		Subd. 6.Salaries; expenses. The salaries of the county assessor and assistants and 
108.21 	clerical help, shall be fixed by the board of county commissioners and shall be payable in 
108.22 	monthly installments out of the general revenue fund of the county. In counties with a 
108.23 	population of less than 50,000 inhabitants, according to the then last preceding federal 
108.24 	census, the board of county commissioners shall not fix the salary of the county assessor at 
108.25 	an amount below the following schedule:
108.26 	In counties with a population of less than 6,500, $5,900;
108.27 	In counties with a population of 6,500 but less than 12,000, $6,200;
108.28 	In counties with a population of 12,000 but less than 16,000, $6,500;
108.29 	In counties with a population of 16,000 but less than 21,000, $6,700;
108.30 	In counties with a population of 21,000 but less than 30,000, $6,900;
108.31 	In counties with a population of 30,000 but less than 39,500, $7,100;
108.32 	In counties with a population of 39,500 but less than 50,000, $7,300;
108.33 	In counties with a population of 50,000 or more, $8,300.
108.34 	In addition to their salaries, the county assessor and assistants shall be allowed their 
108.35 	expenses for reasonable and necessary travel in the performance of their duties, including 
109.1 	necessary travel, lodging and meal expense incurred by them while attending meetings of 
109.2 	instructions or official hearings called by the commissioner of revenue. These expenses 
109.3 	shall be payable out of the general revenue fund of the county, and shall be allowed on the 
109.4 	same basis as such expenses are allowed to other county officers.

109.5 	EFFECTIVE DATE. This section is effective the day following final enactment.

109.6 	Sec. 27. Minnesota Statutes 2012, section 273.10, is amended to read:
109.7 	273.10 SCHOOL DISTRICTS.
109.8 	When assessing personal property the county assessor shall designate the number of 
109.9 	the school district in which each person assessed is liable for tax, by writing the number 
109.10 	of the district opposite each assessment in a column provided for that purpose in the 
109.11 	assessment book. When the personal property of any person is assessable in several 
109.12 	school districts, the amount in each shall be assessed separately, and the name of the 
109.13 	owner placed opposite each amount.

109.14 	EFFECTIVE DATE. This section is effective the day following final enactment.

109.15 	Sec. 28. Minnesota Statutes 2012, section 273.11, subdivision 13, is amended to read:
109.16 		Subd. 13.Valuation of income-producing property. Beginning with the 1995 
109.17 	assessment, Only accredited assessors or senior accredited assessors or other licensed 
109.18 	assessors who have successfully completed at least two income-producing property 
109.19 	appraisal courses may value income-producing property for ad valorem tax purposes. 
109.20 	"Income-producing property" as used in this subdivision means the taxable property in 
109.21 	class 3a and 3b in section 273.13, subdivision 24; class 4a and 4c, except for seasonal 
109.22 	recreational property not used for commercial purposes; and class 5 in section 273.13, 
109.23 	subdivision 31. "Income-producing property" includes any property in class 4e in section 
109.24 	273.13, subdivision 25, that would be income-producing property under the definition in 
109.25 	this subdivision if it were not substandard. "Income-producing property appraisal course" 
109.26 	as used in this subdivision means a course of study of approximately 30 instructional 
109.27 	hours, with a final comprehensive test. An assessor must successfully complete the final 
109.28 	examination for each of the two required courses. The course must be approved by the 
109.29 	board of assessors.

109.30 	EFFECTIVE DATE. This section is effective the day following final enactment.

109.31 	Sec. 29. Minnesota Statutes 2012, section 273.112, subdivision 6a, is amended to read:
110.1 		Subd. 6a.Guidelines issued by commissioner. The commissioner of revenue shall 
110.2 	develop and issue guidelines for qualification by private golf clubs under this section 
110.3 	covering the access to and use of the golf course by members and other adults so as to be 
110.4 	consistent with the purposes and terms of this section. The guidelines shall be mailed to 
110.5 	the county attorney and assessor of each county not later than 60 days following May 26, 
110.6 	1989. Within 15 days of receipt of the guidelines from the commissioner, the assessor 
110.7 	shall mail a copy of the guidelines to each golf club in the county.

110.8 	EFFECTIVE DATE. This section is effective the day following final enactment.

110.9 	Sec. 30. Minnesota Statutes 2013 Supplement, section 273.1325, subdivision 2, 
110.10 	is amended to read:
110.11 		Subd. 2.Methodology. In making its annual assessment/sales ratio studies, the 
110.12 	Department of Revenue must use a methodology consistent with the most recent Standard 
110.13 	on Assessment Ratio Studies published by the assessment standards committee of the 
110.14 	International Association of Assessing Officers. The commissioner of revenue shall 
110.15 	supplement this general methodology with specific procedures necessary for execution of 
110.16 	the study in accordance with other Minnesota laws impacting the assessment/sales ratio 
110.17 	study. The commissioner shall document these specific procedures in writing and shall 
110.18 	publish the procedures in the State Register, but these procedures will not be considered 
110.19 	"rules" pursuant to the Minnesota Administrative Procedure Act. When property is sold and 
110.20 	the purchaser changes its use in a manner that would result in a change of classification of 
110.21 	the property, the assessment sales ratio study under this subdivision must take into account 
110.22 	that changed classification as soon as practicable. A change in status from homestead to 
110.23 	nonhomestead or from nonhomestead to homestead is not a change under this subdivision. 
110.24 	For purposes of this section, sections 270.12, subdivision 2, clause (8) (6), and 278.05, 
110.25 	subdivision 4, the commissioner of revenue shall exclude from the assessment/sales ratio 
110.26 	study the sale of any nonagricultural property which does not contain an improvement, 
110.27 	if (1) the statutory basis on which the property's taxable value as most recently assessed 
110.28 	is less than market value as defined in section 273.11, or (2) the property has undergone 
110.29 	significant physical change or a change of use since the most recent assessment.

110.30 	EFFECTIVE DATE. This section is effective the day following final enactment.

110.31 	Sec. 31. Minnesota Statutes 2013 Supplement, section 273.1398, subdivision 3, 
110.32 	is amended to read:
111.1 		Subd. 3.Disparity reduction aid.  The amount of disparity aid certified for each 
111.2 	taxing district within each unique taxing jurisdiction is the amount certified for taxes 
111.3 	payable in the prior year shall be multiplied by the ratio of (1) the jurisdiction's tax 
111.4 	capacity using the class rates for taxes payable in the year for which aid is being computed, 
111.5 	to (2) its tax capacity using the class rates for taxes payable in the year prior to that for 
111.6 	which aid is being computed, both based upon taxable market values for taxes payable in 
111.7 	the year prior to that for which aid is being computed. If the commissioner determines 
111.8 	that insufficient information is available to reasonably and timely calculate the numerator 
111.9 	in this ratio for the first taxes payable year that a class rate change or new class rate is 
111.10 	effective, the commissioner shall omit the effects of that class rate change or new class 
111.11 	rate when calculating this ratio for aid payable in that taxes payable year. For aid payable 
111.12 	in the year following a year for which such omission was made, the commissioner shall 
111.13 	use in the denominator for the class that was changed or created, the tax capacity for taxes 
111.14 	payable two years prior to that in which the aid is payable, based on taxable market values 
111.15 	for taxes payable in the year prior to that for which aid is being computed.

111.16 	EFFECTIVE DATE. This section is effective beginning for taxes payable in 2015.

111.17 	Sec. 32. Minnesota Statutes 2012, section 273.18, is amended to read:
111.18 	273.18 LISTING, VALUATION, AND ASSESSMENT OF EXEMPT 
111.19 	PROPERTY BY COUNTY AUDITORS.
111.20 	(a) In every sixth year after the year 1926 2010, the county auditor shall enter, in 
111.21 	a separate place in the real estate assessment books, the description of each tract of real 
111.22 	property exempt by law from taxation, with the name of the owner, if known, and the 
111.23 	assessor shall value and assess the same in the same manner that other real property is 
111.24 	valued and assessed, and shall designate in each case the purpose for which the property is 
111.25 	used.
111.26 	(b) For purposes of the apportionment of fire state aid under section 69.021, 
111.27 	subdivision 7, the county auditor shall include on the abstract of assessment of exempt real 
111.28 	property filed under this section, the total number of acres of all natural resources lands for 
111.29 	which in lieu payments are made under sections 477A.11 to 477A.14. The assessor shall 
111.30 	estimate its market value, provided that if the assessor is not able to estimate the market 
111.31 	value of the land on a per parcel basis, the assessor shall furnish the commissioner of 
111.32 	revenue with an estimate of the average value per acre of this land within the county.

111.33 	EFFECTIVE DATE. This section is effective the day following final enactment.

112.1 	Sec. 33. Minnesota Statutes 2012, section 274.01, subdivision 1, is amended to read:
112.2 		Subdivision 1.Ordinary board; meetings, deadlines, grievances. (a) The town 
112.3 	board of a town, or the council or other governing body of a city, is the board of appeal 
112.4 	and equalization except (1) in cities whose charters provide for a board of equalization or 
112.5 	(2) in any city or town that has transferred its local board of review power and duties to 
112.6 	the county board as provided in subdivision 3. The county assessor shall fix a day and 
112.7 	time when the board or the board of equalization shall meet in the assessment districts 
112.8 	of the county. Notwithstanding any law or city charter to the contrary, a city board of 
112.9 	equalization shall be referred to as a board of appeal and equalization. On or before 
112.10 	February 15 of each year the assessor shall give written notice of the time to the city or 
112.11 	town clerk. Notwithstanding the provisions of any charter to the contrary, the meetings 
112.12 	must be held between April 1 and May 31 each year. The clerk shall give published and 
112.13 	posted notice of the meeting at least ten days before the date of the meeting.
112.14 	The board shall meet at the office of the clerk to review the assessment and 
112.15 	classification of property in the town or city. No changes in valuation or classification 
112.16 	which are intended to correct errors in judgment by the county assessor may be made by 
112.17 	the county assessor after the board has adjourned in those cities or towns that hold a 
112.18 	local board of review; however, corrections of errors that are merely clerical in nature or 
112.19 	changes that extend homestead treatment to property are permitted after adjournment until 
112.20 	the tax extension date for that assessment year. The changes must be fully documented and 
112.21 	maintained in the assessor's office and must be available for review by any person. A copy 
112.22 	of the changes made during this period in those cities or towns that hold a local board of 
112.23 	review must be sent to the county board no later than December 31 of the assessment year.
112.24 	(b) The board shall determine whether the taxable property in the town or city has 
112.25 	been properly placed on the list and properly valued by the assessor. If real or personal 
112.26 	property has been omitted, the board shall place it on the list with its market value, and 
112.27 	correct the assessment so that each tract or lot of real property, and each article, parcel, 
112.28 	or class of personal property, is entered on the assessment list at its market value. No 
112.29 	assessment of the property of any person may be raised unless the person has been 
112.30 	duly notified of the intent of the board to do so. On application of any person feeling 
112.31 	aggrieved, the board shall review the assessment or classification, or both, and correct 
112.32 	it as appears just. The board may not make an individual market value adjustment or 
112.33 	classification change that would benefit the property if the owner or other person having 
112.34 	control over the property has refused the assessor access to inspect the property and the 
112.35 	interior of any buildings or structures as provided in section 273.20. A board member 
112.36 	shall not participate in any actions of the board which result in market value adjustments 
113.1 	or classification changes to property owned by the board member, the spouse, parent, 
113.2 	stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle, aunt, nephew, 
113.3 	or niece of a board member, or property in which a board member has a financial interest. 
113.4 	The relationship may be by blood or marriage.
113.5 	(c) A local board may reduce assessments upon petition of the taxpayer but the total 
113.6 	reductions must not reduce the aggregate assessment made by the county assessor by more 
113.7 	than one percent. If the total reductions would lower the aggregate assessments made by 
113.8 	the county assessor by more than one percent, none of the adjustments may be made. The 
113.9 	assessor shall correct any clerical errors or double assessments discovered by the board 
113.10 	without regard to the one percent limitation.
113.11 	(d) A local board does not have authority to grant an exemption or to order property 
113.12 	removed from the tax rolls.
113.13 	(e) A majority of the members may act at the meeting, and adjourn from day to day 
113.14 	until they finish hearing the cases presented. The assessor shall attend, with the assessment 
113.15 	books and papers, and take part in the proceedings, but must not vote. The county assessor, 
113.16 	or an assistant delegated by the county assessor shall attend the meetings. The board shall 
113.17 	list separately, on a form appended to the assessment book, all omitted property added 
113.18 	to the list by the board and all items of property increased or decreased, with the market 
113.19 	value of each item of property, added or changed by the board, placed opposite the item. 
113.20 	The county assessor shall enter all changes made by the board in the assessment book.
113.21 	(f) Except as provided in subdivision 3, if a person fails to appear in person, by 
113.22 	counsel, or by written communication before the board after being duly notified of the 
113.23 	board's intent to raise the assessment of the property, or if a person feeling aggrieved by an 
113.24 	assessment or classification fails to apply for a review of the assessment or classification, 
113.25 	the person may not appear before the county board of appeal and equalization for a review 
113.26 	of the assessment or classification. This paragraph does not apply if an assessment was 
113.27 	made after the local board meeting, as provided in section 273.01, or if the person can 
113.28 	establish not having received notice of market value at least five days before the local 
113.29 	board meeting.
113.30 	(g) The local board must complete its work and adjourn within 20 days from the 
113.31 	time of convening stated in the notice of the clerk, unless a longer period is approved by 
113.32 	the commissioner of revenue. No action taken after that date is valid. All complaints 
113.33 	about an assessment or classification made after the meeting of the board must be heard 
113.34 	and determined by the county board of equalization. A nonresident may, at any time, 
113.35 	before the meeting of the board file written objections to an assessment or classification 
114.1 	with the county assessor. The objections must be presented to the board at its meeting by 
114.2 	the county assessor for its consideration.

114.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

114.4 	Sec. 34. Minnesota Statutes 2012, section 274.01, subdivision 2, is amended to read:
114.5 		Subd. 2.Special board; duties delegated. The governing body of a city, including 
114.6 	a city whose charter provides for a board of equalization, may appoint a special board of 
114.7 	review. The city may delegate to the special board of review all of the powers and duties 
114.8 	in subdivision 1. The special board of review shall serve at the direction and discretion 
114.9 	of the appointing body, subject to the restrictions imposed by law. The appointing body 
114.10 	shall determine the number of members of the board, the compensation and expenses to be 
114.11 	paid, and the term of office of each member. At least one member of the special board 
114.12 	of review must be an appraiser, realtor, or other person familiar with property valuations 
114.13 	in the assessment district.

114.14 	EFFECTIVE DATE. This section is effective the day following final enactment.

114.15 	Sec. 35. Minnesota Statutes 2012, section 275.08, subdivision 1a, is amended to read:
114.16 		Subd. 1a.Computation of tax capacity. For taxes payable in 1989, the county 
114.17 	auditor shall compute the gross tax capacity for each parcel according to the class rates 
114.18 	specified in section 273.13. The gross tax capacity will be the appropriate class rate 
114.19 	multiplied by the parcel's market value. For taxes payable in 1990 and subsequent years,
114.20 	 The county auditor shall compute the net tax capacity for each parcel according to the 
114.21 	class rates specified in section 273.13. The net tax capacity will be the appropriate class 
114.22 	rate multiplied by the parcel's market value.

114.23 	EFFECTIVE DATE. This section is effective the day following final enactment.

114.24 	Sec. 36. Minnesota Statutes 2012, section 275.08, subdivision 1d, is amended to read:
114.25 		Subd. 1d.Additional adjustment. If, after computing each local government's 
114.26 	adjusted local tax rate within a unique taxing jurisdiction pursuant to subdivision 1c, the 
114.27 	auditor finds that the total adjusted local tax rate of all local governments combined is 
114.28 	less than 90 percent of gross tax capacity for taxes payable in 1989 and 90 percent of net 
114.29 	tax capacity for taxes payable in 1990 and thereafter, the auditor shall increase each local 
114.30 	government's adjusted local tax rate proportionately so the total adjusted local tax rate of 
114.31 	all local governments combined equals 90 percent. The total amount of the increase in 
114.32 	tax resulting from the increased local tax rates must not exceed the amount of disparity 
115.1 	aid allocated to the unique taxing district under section 273.1398. The auditor shall 
115.2 	certify to the Department of Revenue the difference between the disparity aid originally 
115.3 	allocated under section 273.1398, subdivision 3, and the amount necessary to reduce 
115.4 	the total adjusted local tax rate of all local governments combined to 90 percent. Each 
115.5 	local government's disparity reduction aid payment under section 273.1398, subdivision 
115.6 	6, must be reduced accordingly.

115.7 	EFFECTIVE DATE. This section is effective the day following final enactment.

115.8 	Sec. 37. Minnesota Statutes 2013 Supplement, section 275.70, subdivision 5, is 
115.9 	amended to read:
115.10 		Subd. 5.Special levies. "Special levies" means those portions of ad valorem taxes 
115.11 	levied by a local governmental unit for the following purposes or in the following manner:
115.12 	(1) to pay the costs of the principal and interest on bonded indebtedness or to 
115.13 	reimburse for the amount of liquor store revenues used to pay the principal and interest 
115.14 	due on municipal liquor store bonds in the year preceding the year for which the levy 
115.15 	limit is calculated;
115.16 	(2) to pay the costs of principal and interest on certificates of indebtedness issued for 
115.17 	any corporate purpose except for the following:
115.18 	(i) tax anticipation or aid anticipation certificates of indebtedness;
115.19 	(ii) certificates of indebtedness issued under sections 298.28 and 298.282;
115.20 	(iii) certificates of indebtedness used to fund current expenses or to pay the costs of 
115.21 	extraordinary expenditures that result from a public emergency; or
115.22 	(iv) certificates of indebtedness used to fund an insufficiency in tax receipts or an 
115.23 	insufficiency in other revenue sources, provided that nothing in this subdivision limits the 
115.24 	special levy authorized under section 475.755;
115.25 	(3) to provide for the bonded indebtedness portion of payments made to another 
115.26 	political subdivision of the state of Minnesota;
115.27 	(4) to fund payments made to the Minnesota State Armory Building Commission 
115.28 	under section 193.145, subdivision 2, to retire the principal and interest on armory 
115.29 	construction bonds;
115.30 	(5) property taxes approved by voters which are levied against the referendum 
115.31 	market value as provided under section 275.61;
115.32 	(6) to fund matching requirements needed to qualify for federal or state grants or 
115.33 	programs to the extent that either (i) the matching requirement exceeds the matching 
115.34 	requirement in calendar year 2001, or (ii) it is a new matching requirement that did not 
115.35 	exist prior to 2002;
116.1 	(7) to pay the expenses reasonably and necessarily incurred in preparing for or 
116.2 	repairing the effects of natural disaster including the occurrence or threat of widespread 
116.3 	or severe damage, injury, or loss of life or property resulting from natural causes, in 
116.4 	accordance with standards formulated by the Emergency Services Division of the state 
116.5 	Department of Public Safety, as allowed by the commissioner of revenue under section 
116.6 	275.74, subdivision 2;
116.7 	(8) pay amounts required to correct an error in the levy certified to the county 
116.8 	auditor by a city or county in a levy year, but only to the extent that when added to the 
116.9 	preceding year's levy it is not in excess of an applicable statutory, special law or charter 
116.10 	limitation, or the limitation imposed on the governmental subdivision by sections 275.70 
116.11 	to 275.74 in the preceding levy year;
116.12 	(9) to pay an abatement under section 469.1815;
116.13 	(10) to pay any costs attributable to increases in the employer contribution rates under 
116.14 	chapter 353, or locally administered pension plans, that are effective after June 30, 2001;
116.15 	(11) to pay the operating or maintenance costs of a county jail as authorized in section 
116.16 	641.01 or 641.262, or of a correctional facility as defined in section 241.021, subdivision 1, 
116.17 	paragraph (f), to the extent that the county can demonstrate to the commissioner of revenue 
116.18 	that the amount has been included in the county budget as a direct result of a rule, minimum 
116.19 	requirement, minimum standard, or directive of the Department of Corrections, or to pay 
116.20 	the operating or maintenance costs of a regional jail as authorized in section 641.262. For 
116.21 	purposes of this clause, a district court order is not a rule, minimum requirement, minimum 
116.22 	standard, or directive of the Department of Corrections. If the county utilizes this special 
116.23 	levy, except to pay operating or maintenance costs of a new regional jail facility under 
116.24 	sections 641.262 to 641.264 which will not replace an existing jail facility, any amount 
116.25 	levied by the county in the previous levy year for the purposes specified under this clause 
116.26 	and included in the county's previous year's levy limitation computed under section 
116.27 	275.71, shall be deducted from the levy limit base under section 275.71, subdivision 2, 
116.28 	when determining the county's current year levy limitation. The county shall provide the 
116.29 	necessary information to the commissioner of revenue for making this determination;
116.30 	(12) to pay for operation of a lake improvement district, as authorized under section 
116.31 	103B.555. If the county utilizes this special levy, any amount levied by the county in the 
116.32 	previous levy year for the purposes specified under this clause and included in the county's 
116.33 	previous year's levy limitation computed under section 275.71 shall be deducted from 
116.34 	the levy limit base under section 275.71, subdivision 2, when determining the county's 
116.35 	current year levy limitation. The county shall provide the necessary information to the 
116.36 	commissioner of revenue for making this determination;
117.1 	(13) to repay a state or federal loan used to fund the direct or indirect required 
117.2 	spending by the local government due to a state or federal transportation project or other 
117.3 	state or federal capital project. This authority may only be used if the project is not a 
117.4 	local government initiative;
117.5 	(14) to pay for court administration costs as required under section 273.1398, 
117.6 	subdivision 4b, less the (i) county's share of transferred fines and fees collected by the 
117.7 	district courts in the county for calendar year 2001 and (ii) the aid amount certified to be 
117.8 	paid to the county in 2004 under section 273.1398, subdivision 4c; however, for taxes 
117.9 	levied to pay for these costs in the year in which the court financing is transferred to the 
117.10 	state, the amount under this clause is limited to the amount of aid the county is certified to 
117.11 	receive under section 273.1398, subdivision 4a;
117.12 	(15) (14) to fund a firefighters relief association as required under Laws 2013, 
117.13 	chapter 111, article 5, sections 31 to 42, to the extent that the required amount exceeds the 
117.14 	amount levied for this purpose in 2001;
117.15 	(16) (15) for purposes of a storm sewer improvement district under section 444.20;
117.16 	(17) (16) to pay for the maintenance and support of a city or county society for 
117.17 	the prevention of cruelty to animals under section 343.11, but not to exceed in any year 
117.18 	$4,800 or the sum of $1 per capita based on the county's or city's population as of the most 
117.19 	recent federal census, whichever is greater. If the city or county uses this special levy, any 
117.20 	amount levied by the city or county in the previous levy year for the purposes specified 
117.21 	in this clause and included in the city's or county's previous year's levy limit computed 
117.22 	under section 275.71, must be deducted from the levy limit base under section 275.71, 
117.23 	subdivision 2, in determining the city's or county's current year levy limit;
117.24 	(18) (17) for counties, to pay for the increase in their share of health and human 
117.25 	service costs caused by reductions in federal health and human services grants effective 
117.26 	after September 30, 2007;
117.27 	(19) (18) for a city, for the costs reasonably and necessarily incurred for securing, 
117.28 	maintaining, or demolishing foreclosed or abandoned residential properties, as allowed by 
117.29 	the commissioner of revenue under section 275.74, subdivision 2. A city must have either 
117.30 	(i) a foreclosure rate of at least 1.4 percent in 2007, or (ii) a foreclosure rate in 2007 in 
117.31 	the city or in a zip code area of the city that is at least 50 percent higher than the average 
117.32 	foreclosure rate in the metropolitan area, as defined in section 473.121, subdivision 2, 
117.33 	to use this special levy. For purposes of this paragraph, "foreclosure rate" means the 
117.34 	number of foreclosures, as indicated by sheriff sales records, divided by the number of 
117.35 	households in the city in 2007;
118.1 	(20) for a city, for the unreimbursed costs of redeployed traffic-control agents and 
118.2 	lost traffic citation revenue due to the collapse of the Interstate 35W bridge, as certified 
118.3 	to the Federal Highway Administration;
118.4 	(21) (19) to pay costs attributable to wages and benefits for sheriff, police, and fire 
118.5 	personnel. If a local governmental unit did not use this special levy in the previous year its 
118.6 	levy limit base under section 275.71 shall be reduced by the amount equal to the amount it 
118.7 	levied for the purposes specified in this clause in the previous year;
118.8 	(22) (20) an amount equal to any reductions in the certified aids or credit 
118.9 	reimbursements payable under sections 477A.011 to 477A.014, and section 273.1384, 
118.10 	due to unallotment under section 16A.152 or reductions under another provision of law. 
118.11 	The amount of the levy allowed under this clause for each year is limited to the amount 
118.12 	unallotted or reduced from the aids and credit reimbursements certified for payment in the 
118.13 	year following the calendar year in which the tax levy is certified unless the unallotment 
118.14 	or reduction amount is not known by September 1 of the levy certification year, and 
118.15 	the local government has not adjusted its levy under section 275.065, subdivision 6, or 
118.16 	275.07, subdivision 6, in which case that unallotment or reduction amount may be levied 
118.17 	in the following year;
118.18 	(23) (21) to pay for the difference between one-half of the costs of confining sex 
118.19 	offenders undergoing the civil commitment process and any state payments for this 
118.20 	purpose pursuant to section 253D.12;
118.21 	(24) (22) for a county to pay the costs of the first year of maintaining and operating 
118.22 	a new facility or new expansion, either of which contains courts, corrections, dispatch, 
118.23 	criminal investigation labs, or other public safety facilities and for which all or a portion 
118.24 	of the funding for the site acquisition, building design, site preparation, construction, and 
118.25 	related equipment was issued or authorized prior to the imposition of levy limits in 2008. 
118.26 	The levy limit base shall then be increased by an amount equal to the new facility's first 
118.27 	full year's operating costs as described in this clause; and
118.28 	(25) (23) for the estimated amount of reduction to market value credit reimbursements 
118.29 	under section 273.1384 for credits payable in the year in which the levy is payable.

118.30 	EFFECTIVE DATE. This section is effective the day following final enactment.

118.31 	Sec. 38. Minnesota Statutes 2012, section 275.74, subdivision 2, is amended to read:
118.32 		Subd. 2.Authorization for special levies. (a) A local governmental unit may 
118.33 	request authorization to levy for unreimbursed costs for natural disasters under section 
118.34 	275.70, subdivision 5, clause (7). The local governmental unit shall submit a request to 
118.35 	levy under section 275.70, subdivision 5, clause (7), to the commissioner of revenue by 
119.1 	September 30 of the levy year and the request must include information documenting the 
119.2 	estimated unreimbursed costs. The commissioner of revenue may grant levy authority, 
119.3 	up to the amount requested based on the documentation submitted. All decisions of the 
119.4 	commissioner are final.
119.5 	(b) A city may request authorization to levy for reasonable and necessary costs for 
119.6 	securing, maintaining, or demolishing foreclosed or abandoned residential properties under 
119.7 	section 275.70, subdivision 5, clause (19) (18). The local governmental unit shall submit a 
119.8 	request to levy under section 275.70, subdivision 5, clause (19) (18), to the commissioner 
119.9 	of revenue by September 30 of the levy year and the request must include information 
119.10 	documenting the estimated costs. For taxes payable in 2009, the amount may include 
119.11 	unanticipated costs incurred above the amount budgeted for these purposes in 2008. Costs 
119.12 	of securing foreclosed or abandoned residential properties include payment for police and 
119.13 	fire department services. The commissioner of revenue may grant levy authority, up to the 
119.14 	lesser of (1) the amount requested based on the documentation submitted, or (2) $3,000 
119.15 	multiplied by the number of foreclosed residential properties, as defined by sheriff sales 
119.16 	records, in calendar year 2007. All decisions of the commissioner are final.

119.17 	EFFECTIVE DATE. This section is effective the day following final enactment.

119.18 	Sec. 39. Minnesota Statutes 2012, section 275.75, is amended to read:
119.19 	275.75 CHARTER EXEMPTION FOR AID LOSS.
119.20 	Notwithstanding any other provision of a municipal charter that limits ad valorem 
119.21 	taxes to a lesser amount, or that would require voter approval for any increase, the 
119.22 	governing body of a municipality may by resolution increase its levy in any year by an 
119.23 	amount equal to its special levies under section 275.70, subdivision 5, clauses (22) and 
119.24 	(25) (20) and (23).

119.25 	EFFECTIVE DATE. This section is effective the day following final enactment.

119.26 	Sec. 40. Minnesota Statutes 2012, section 279.03, is amended to read:
119.27 	279.03 INTEREST ON DELINQUENT PROPERTY TAXES.
119.28 		Subdivision 1.Rate Interest calculation. The rate of interest on delinquent 
119.29 	property taxes levied in 1979 and prior years is fixed at six percent per year until January 
119.30 	1, 1983. Thereafter Interest is payable at the rate determined pursuant to section 549.09. 
119.31 	The rate of interest on delinquent property taxes levied in 1980 and subsequent years is 
119.32 	the rate determined pursuant to section 549.09. All provisions of law except section 
119.33 	549.09 providing for the calculation of interest at any different rate on delinquent taxes in 
120.1 	any notice or proceeding in connection with the payment, collection, sale, or assignment 
120.2 	of delinquent taxes, or redemption from such sale or assignment are hereby amended 
120.3 	to correspond herewith. Section 549.09shall continue in force applies with respect to 
120.4 	judgments arising out of petitions for review filed pursuant to chapter 278 irrespective of 
120.5 	the levy year.
120.6 	For property taxes levied in 1980 and prior years, interest is to be calculated at 
120.7 	simple interest from the second Monday in May following the year in which the taxes 
120.8 	become due until the time that the taxes and penalties are paid, computed on the amount 
120.9 	of unpaid taxes, penalties and costs. For property taxes levied in 1981 and subsequent 
120.10 	years, Interest shall commence on the first day of January following the year in which the 
120.11 	taxes become due, but the county treasurer need not calculate interest on unpaid taxes and 
120.12 	penalties on the tax list returned to the county auditor pursuant to section 279.01.
120.13 	If interest is payable for a portion of a year, the interest is calculated only for the 
120.14 	months that the taxes or penalties remain unpaid, and for this purpose a portion of a month 
120.15 	is deemed to be a whole month.
120.16 		Subd. 1a.Rate after December 31, 1990. (a) Except as provided in paragraph (b), 
120.17 	interest on delinquent property taxes, penalties, and costs unpaid on or after January 1, 
120.18 	1991, shall be is payable at the per annum rate determined in section 270C.40, subdivision 
120.19 	5. If the rate so determined is less than ten percent, the rate of interest shall be is ten 
120.20 	percent. The maximum per annum rate shall be is 14 percent if the rate specified under 
120.21 	section 270C.40, subdivision 5, exceeds 14 percent. The rate shall be is subject to change 
120.22 	on January 1 of each year.
120.23 	(b) If a person is the owner of one or more parcels of property on which taxes are 
120.24 	delinquent, and the delinquent taxes are more than 25 percent of the prior year's school 
120.25 	district levy, interest on the delinquent property taxes, penalties, and costs unpaid after 
120.26 	January 1, 1992, shall be is payable at twice the rate determined under paragraph (a) for 
120.27 	the year.
120.28 		Subd. 2.Composite judgment. Amounts included in composite judgments 
120.29 	authorized by section 279.37, subdivision 1, and confessed on or after July 1, 1982, are 
120.30 	subject to interest at the rate determined pursuant to section 549.09. Amounts confessed 
120.31 	under this authority after December 31, 1990, are subject to interest at the rate calculated 
120.32 	under subdivision 1a. During each calendar year, interest shall accrue accrues on the 
120.33 	unpaid balance of the composite judgment from the time it is confessed until it is paid. 
120.34 	The rate of interest is subject to change each year in the same manner that section 549.09
120.35 	 or as provided in subdivision 1a, whichever is applicable, for rate changes. Interest on the 
121.1 	unpaid contract balance on judgments confessed before July 1, 1982, is payable at the rate 
121.2 	applicable to the judgment at the time that it was confessed.

121.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

121.4 	Sec. 41. Minnesota Statutes 2012, section 279.16, is amended to read:
121.5 	279.16 JUDGMENT WHEN NO ANSWER; FORM; ENTRY.
121.6 	Upon the expiration of 20 days from the later of the filing of the affidavit of 
121.7 	publication or the filing of the affidavit of mailing pursuant to section 279.131, the 
121.8 	court administrator shall enter judgment against each and every such parcel as to which 
121.9 	no answer has been filed, which judgment shall include all such parcels, and shall be 
121.10 	substantially in the following form:

121.11	State of Minnesota
	)
	District Court,
		
121.12		) ss.
			
121.13	County of 
........	)
	.............. Judicial District.
		
121.14 	In the matter of the proceedings to enforce payment of the taxes on real estate 
121.15 	remaining delinquent on the first Monday in January, ......., for the county of ...................., 
121.16 	state of Minnesota.
121.17 	A list of taxes on real property, delinquent on the first Monday in January, ......., for 
121.18 	said county of ................., having been duly filed in the office of the court administrator of 
121.19 	this court, and the notice and list required by law having been duly published and mailed 
121.20 	as required by law, and more than 20 days having elapsed since the last publication of the 
121.21 	notice and list, and no answer having been filed by any person, company, or corporation 
121.22 	to the taxes upon any of the parcels of land hereinafter described, it is hereby adjudged 
121.23 	that each parcel of land hereinafter described is liable for taxes, penalties, and costs to the 
121.24 	amount set opposite the same, as follows:

121.25	Description.
	Parcel Number.
	Amount.
	
121.26 	The amount of taxes, penalties, and cost to which, as hereinbefore stated, each of 
121.27 	such parcels of land is liable, is hereby declared a lien upon such parcel of land as against 
121.28 	the estate, right, title, interest, claim, or lien, of whatever nature, in law or equity, of every 
121.29 	person, company, or corporation; and it is adjudged that, unless the amount to which 
121.30 	each of such parcels is liable be paid, each of such parcels be sold, as provided by law, 
121.31 	to satisfy the amount to which it is liable.

121.32		Dated this ............. day of ..............., .......
		
121.33
121.34
121.35		........
Court Administrator of the District Court,
County of 
........		
122.1 	The judgment shall be entered by the court administrator in a book to be kept by 
122.2 	the court administrator, to be called the real estate tax judgment book, and signed by the 
122.3 	court administrator. The judgment shall be written out on the left-hand pages of the book, 
122.4 	leaving the right-hand pages blank for the entries in this chapter hereinafter provided; and
122.5 	 The same presumption in favor of the regularity and validity of the judgment shall be 
122.6 	deemed to exist as in respect to judgments in civil actions in such court, except where taxes 
122.7 	have been paid before the entry of judgment, or where the land is exempt from taxation, in 
122.8 	which cases the judgment shall be prima facie evidence only of its regularity and validity.

122.9 	EFFECTIVE DATE. This section is effective the day following final enactment.

122.10 	Sec. 42. Minnesota Statutes 2012, section 279.23, is amended to read:
122.11 	279.23 COPY OF JUDGMENT TO COUNTY AUDITOR.
122.12 	When any real estate tax judgment is entered, the court administrator shall forthwith
122.13 	 deliver to the county auditor, in a book to be provided by the auditor, a certified copy of 
122.14 	such judgment, which shall be written on the left-hand pages of the book, leaving the 
122.15 	right-hand pages blank.

122.16 	EFFECTIVE DATE. This section is effective the day following final enactment.

122.17 	Sec. 43. Minnesota Statutes 2012, section 279.25, is amended to read:
122.18 	279.25 PAYMENT BEFORE JUDGMENT.
122.19 	Before sale any person may pay the amount adjudged against any parcel of land. 
122.20 	If payment is made before entry of judgment, and the delinquent list has been filed with 
122.21 	the court administrator, the county auditor shall immediately certify such payment to the 
122.22 	court administrator, who shall note the same on such delinquent list; and all proceedings 
122.23 	pending against such parcel shall thereupon be discontinued. If payment is made after 
122.24 	judgment is entered and before sale, the auditor shall certify such payment to the clerk, 
122.25 	who, upon production of such certificate and the payment of a fee of ten cents, shall enter 
122.26 	on the right-hand page of the real estate tax judgment book, and opposite the description 
122.27 	of such parcel, satisfaction of the judgment against the same. The auditor shall make 
122.28 	proper records of all payments made under this section.

122.29 	EFFECTIVE DATE. This section is effective the day following final enactment.

122.30 	Sec. 44. Minnesota Statutes 2013 Supplement, section 279.37, subdivision 2, is 
122.31 	amended to read:
123.1 		Subd. 2.Installment payments. The owner of any such parcel, or any person to 
123.2 	whom the right to pay taxes has been given by statute, mortgage, or other agreement, may 
123.3 	make and file with the county auditor of the county in which the parcel is located a written 
123.4 	offer to pay the current taxes each year before they become delinquent, or to contest the 
123.5 	taxes under Minnesota Statutes 1941, sections 278.01 to 278.13 chapter 278, and agree 
123.6 	to confess judgment for the amount provided, as determined by the county auditor. By 
123.7 	filing the offer, the owner waives all irregularities in connection with the tax proceedings 
123.8 	affecting the parcel and any defense or objection which the owner may have to the 
123.9 	proceedings, and also waives the requirements of any notice of default in the payment of 
123.10 	any installment or interest to become due pursuant to the composite judgment to be so 
123.11 	entered. Unless the property is subject to subdivision 1a, with the offer, the owner shall (i) 
123.12 	tender one-tenth of the amount of the delinquent taxes, costs, penalty, and interest, and 
123.13 	(ii) tender all current year taxes and penalty due at the time the confession of judgment is 
123.14 	entered. In the offer, the owner shall agree to pay the balance in nine equal installments, 
123.15 	with interest as provided in section 279.03, payable annually on installments remaining 
123.16 	unpaid from time to time, on or before December 31 of each year following the year in 
123.17 	which judgment was confessed. The offer must be substantially as follows:
123.18 	"To the court administrator of the district court of ........... county, I, ....................., 
123.19 	am the owner of the following described parcel of real estate located in .................... 
123.20 	county, Minnesota:
123.21 	.............................. Upon that real estate there are delinquent taxes for the year ........., and 
123.22 	prior years, as follows: (here insert year of delinquency and the total amount of delinquent 
123.23 	taxes, costs, interest, and penalty). By signing this document I offer to confess judgment in 
123.24 	the sum of $...... and waive all irregularities in the tax proceedings affecting these taxes and 
123.25 	any defense or objection which I may have to them, and direct judgment to be entered for 
123.26 	the amount stated above, minus the sum of $............, to be paid with this document, which 
123.27 	is one-tenth or one-fifth of the amount of the taxes, costs, penalty, and interest stated above. 
123.28 	I agree to pay the balance of the judgment in nine or four equal, annual installments, with 
123.29 	interest as provided in section 279.03, payable annually, on the installments remaining 
123.30 	unpaid. I agree to pay the installments and interest on or before December 31 of each year 
123.31 	following the year in which this judgment is confessed and current taxes each year before 
123.32 	they become delinquent, or within 30 days after the entry of final judgment in proceedings 
123.33 	to contest the taxes under Minnesota Statutes, sections 278.01 to 278.13 chapter 278.
123.34 	Dated .............., ......."

123.35 	EFFECTIVE DATE. This section is effective the day following final enactment.

124.1 	Sec. 45. Minnesota Statutes 2012, section 280.001, is amended to read:
124.2 	280.001 PUBLIC SALES, AUDITOR'S CERTIFICATES ABOLISHED.
124.3 	Effective the second Monday in May 1974, and each year thereafter, No parcel of 
124.4 	land against which judgment has been entered and remains unsatisfied for the taxes of 
124.5 	the preceding year or years may be sold at public vendue as provided in sections 280.01
124.6 	and 280.02 by the county auditor but shall be treated in the same manner and regarded in 
124.7 	all respects as land bid in for the state by the auditor in the manner provided in section 
124.8 	280.02. No notice of sale required by section 280.01 shall be published or posted in 1974 
124.9 	and in years thereafter, and no auditor's certificate authorized by section 280.03 shall be 
124.10 	issued on the second Monday in May 1974, or thereafter.

124.11 	EFFECTIVE DATE. This section is effective the day following final enactment.

124.12 	Sec. 46. Minnesota Statutes 2012, section 280.03, is amended to read:
124.13 	280.03 CERTIFICATE OF SALE.
124.14 	The county auditor shall execute to the purchaser of each parcel a certificate which 
124.15 	may be substantially in the following form:
124.16 	"I, .........., auditor of the county of .........., state of Minnesota, do hereby certify that 
124.17 	at the sale of lands pursuant to the real estate tax judgment entered in the district court 
124.18 	in the county of .........., on the .......... day of .........., ......., in proceedings to enforce the 
124.19 	payment of taxes delinquent on real estate for the years .........., for the county of .........., 
124.20 	which sale was held at ..............., in said county of ........, on the ........ day of ........, ......., 
124.21 	the following described parcel of land, situate in said county of .........., state of Minnesota: 
124.22 	(insert description), was offered for sale to the bidder who should offer to pay the amount 
124.23 	for which the same was to be sold, at the lowest annual rate of interest on such amount; 
124.24 	and at said sale I did sell the said parcel of land to .......... for the sum of .......... dollars, 
124.25 	with interest at .......... percent per annum on such amount, that being the sum for which the 
124.26 	same was to be sold, and such rate of interest being the lowest rate percent per annum bid 
124.27 	on such sum; and, the sum having been paid, I do therefore, in consideration thereof, and 
124.28 	pursuant to the statute in such case made and provided, convey the said parcel of land, in 
124.29 	fee simple, subject to easements and restrictions of record at the date of the tax judgment 
124.30 	sale, including, but without limitation, permits for telephone, telegraph and electric 
124.31 	power lines either by underground cable or conduit or otherwise, sewer and water lines, 
124.32 	highways, railroads, and pipe lines for gas, liquids, or solids in suspension, to said .........., 
124.33 	and the heirs and assigns of ......., forever, subject to redemption as provided by law.
124.34 	Witness my hand and official seal this ........ day of ........, ....... .

125.1
125.2		........
County Auditor."
		
125.3 	If the land shall not be redeemed as provided in chapter 281, such certificate shall 
125.4 	pass to the purchaser an estate therein, in fee simple, without any other act or deed 
125.5 	whatever subject to easements and restrictions of record at the date of the tax judgment 
125.6 	sale, including, but without limitation, permits for telephone, telegraph, and electric 
125.7 	power lines either by underground cable or conduit or otherwise, sewer and water lines, 
125.8 	highways, railroads, and pipe lines for gas, liquids, or solids in suspension. Such certificate 
125.9 	may be recorded, after the time for redemption shall have expired, as other deeds of real 
125.10 	estate, and with like effect. If any purchaser at such sale shall purchase more than one 
125.11 	parcel, the auditor shall issue to the purchaser a certificate for each parcel so purchased.

125.12 	EFFECTIVE DATE. This section is effective the day following final enactment.

125.13 	Sec. 47. Minnesota Statutes 2012, section 280.07, is amended to read:
125.14 	280.07 ENTRIES IN JUDGMENT BOOKS AFTER SALE.
125.15 	Immediately after such sale the county auditor shall set out in the copy judgment 
125.16 	book record that all parcels were bid in for the state. The county auditor shall thereupon 
125.17 	deliver such book to notify the court administrator, who shall forthwith enter on the 
125.18 	right-hand page of the real estate tax judgment book, opposite the description of each 
125.19 	parcel sold, the words "bid in for the state," and thereupon redeliver the copy judgment 
125.20 	book to the auditor. Upon redemption the auditor shall make a note thereon in the copy 
125.21 	judgment book, opposite the parcel redeemed.

125.22 	EFFECTIVE DATE. This section is effective the day following final enactment.

125.23 	Sec. 48. Minnesota Statutes 2012, section 280.11, is amended to read:
125.24 	280.11 LANDS BID IN FOR STATE.
125.25 	At any time after any parcel of land has been bid in for the state, the same not having 
125.26 	been redeemed, the county auditor shall assign and convey the same, and all the right of 
125.27 	the state therein acquired at such sale, to any person who shall pay the amount for which 
125.28 	the same was bid in, with interest at the rate of 12 percent per annum, and the amount of 
125.29 	all subsequent delinquent taxes, penalties, costs, and interest at such rate upon the same 
125.30 	from the time when such taxes became delinquent. The county auditor shall execute to 
125.31 	such person a certificate for such parcel, which may be substantially in the following form:
125.32 	"I, .........., auditor of the county of .........., state of Minnesota, do hereby certify that 
125.33 	at the sale of lands pursuant to the real estate tax judgment entered in the district court 
126.1 	in the county of .........., on the .......... day of .........., ......., in proceedings to enforce the 
126.2 	payment of taxes delinquent upon real estate for the years .......... for the county of .........., 
126.3 	which sale was held at .........., in said county of .........., on the .......... day of .........., ......., 
126.4 	the following described parcel of land, situate in said county of .........., state of Minnesota: 
126.5 	(insert description), was duly offered for sale; and, no one bidding upon such offer an 
126.6 	amount equal to that for which the parcel was subject to be sold, the same was then bid in 
126.7 	for the state at such amount, being the sum of .......... dollars; and the same still remaining 
126.8 	unredeemed, and on this day .......... having paid into the treasury of the county the amount 
126.9 	for which the same was so bid in, and all subsequent delinquent taxes, penalties, costs, 
126.10 	and interest, amounting in all to .......... dollars, therefore, in consideration thereof, and 
126.11 	pursuant to the statute in such case made and provided, I do hereby assign and convey this 
126.12 	parcel of land, in fee simple, subject to easements and restrictions of record at the date of 
126.13 	the tax judgment sale, including but without limitation, permits for telephone, telegraph,
126.14 	 and electric power lines either by underground cable or conduit or otherwise, sewer and 
126.15 	water lines, highways, railroads, and pipe lines for gas, liquids, or solids in suspension, 
126.16 	with all the right, title and interest of the state acquired therein at such sale to .........., and 
126.17 	the heirs and assigns of ........, forever, subject to redemption as provided by law.
126.18 	Witness my hand and official seal this .......... day of .........., .......

126.19
126.20		........
County Auditor."
		
126.21 	If the land shall not be redeemed, as provided in chapter 281, such certificate shall 
126.22 	pass to the purchaser or assignee an estate therein, in fee simple, without any other act 
126.23 	or deed whatever subject to easements and restrictions of record at the date of the tax 
126.24 	judgment sale, including, but without limitation, permits for telephone, telegraph and 
126.25 	electric power lines either by underground cable or conduit or otherwise, sewer and water 
126.26 	lines, highways, railroads, and pipe lines for gas, liquids, or solids in suspension. Such 
126.27 	certificate or conveyance may be recorded, after the time for redemption shall have 
126.28 	expired, as other deeds of real estate, and with like effect. No assignment of the right of 
126.29 	the state shall be given pursuant to this section after January 1, 1972.

126.30 	EFFECTIVE DATE. This section is effective the day following final enactment.

126.31 	Sec. 49. Minnesota Statutes 2012, section 281.03, is amended to read:
126.32 	281.03 AUDITOR'S CERTIFICATE.
126.33 	The county auditor shall certify to the amount due on such redemption, and, on 
126.34 	payment of the same to the county treasurer, shall make duplicate receipts for the certified 
126.35 	amount, describing the property redeemed, one of which shall be filed with the auditor. 
127.1 	Such receipts shall be governed by the provisions of this chapter regulating the payment 
127.2 	of current taxes and such payment shall have the effect to annul the sale. If the amount 
127.3 	certified by the auditor and received in payment for redemption be less than that required 
127.4 	by law, it shall not invalidate the redemption. On redemption being made, the auditor shall 
127.5 	enter upon the copy of the tax judgment book, opposite the description of record the 
127.6 	parcel as redeemed, the word, "redeemed.".

127.7 	EFFECTIVE DATE. This section is effective the day following final enactment.

127.8 	Sec. 50. Minnesota Statutes 2013 Supplement, section 281.17, is amended to read:
127.9 	281.17 PERIOD FOR REDEMPTION.
127.10 	Except for properties for which the period of redemption has been limited under 
127.11 	sections 281.173 and 281.174, the following periods for redemption apply.
127.12 	The period of redemption for all lands sold to the state at a tax judgment sale shall 
127.13 	be three years from the date of sale to the state of Minnesota.
127.14 	The period of redemption for homesteaded lands as defined in section 273.13, 
127.15 	subdivision 22, located in a targeted neighborhood as defined in Laws 1987, chapter 386, 
127.16 	article 6, section 4, and sold to the state at a tax judgment sale is three years from the date 
127.17 	of sale. The period of redemption for all lands located in a targeted neighborhood as 
127.18 	defined in Laws 1987, chapter 386, article 6, section 4, except (1) homesteaded lands as 
127.19 	defined in section 273.13, subdivision 22, and (2) for periods of redemption beginning 
127.20 	after June 30, 1991, but before July 1, 1996, lands located in the Loring Park targeted 
127.21 	neighborhood on which a notice of lis pendens has been served, and sold to the state at a 
127.22 	tax judgment sale is one year from the date of sale.
127.23 	The period of redemption for all real property constituting a mixed municipal solid 
127.24 	waste disposal facility that is a qualified facility under section 115B.39, subdivision 1, is 
127.25 	one year from the date of the sale to the state of Minnesota.

127.26 	EFFECTIVE DATE. This section is effective the day following final enactment.

127.27 	Sec. 51. Minnesota Statutes 2012, section 281.327, is amended to read:
127.28 	281.327 CANCELLATION OF CERTIFICATE UPON JUDICIAL ORDER.
127.29 	Upon the petition of any person interested in the land covered by a real estate tax 
127.30 	sale certificate, state assignment certificate, or forfeited tax sale certificate and, upon the 
127.31 	giving of such notice to the holder of such certificate as may be ordered, the district court, 
127.32 	in the proceedings resulting in the judgment upon which a real estate tax judgment sale 
127.33 	certificate, state assignment certificate, or forfeited tax sale certificate is based, may order 
128.1 	the cancellation of a real estate tax judgment sale certificate, state assignment certificate, 
128.2 	or forfeited tax sale certificate upon which notice of expiration of time of redemption 
128.3 	has been issued when the certificate or a deed issued thereon has not been recorded in 
128.4 	the office of the county recorder or filed in that of the registrar of titles, if the land is 
128.5 	registered, within seven years after the date of the issuance of such certificate; the county 
128.6 	auditor, on the filing of the order, shall make an entry in the proper copy real estate tax 
128.7 	judgment book, opposite the description of the land, "canceled by order of court" record 
128.8 	the land as canceled by order of court; and the rights of the holder under the certificate 
128.9 	shall thereupon be terminated of record in the office of the county auditor.

128.10 	EFFECTIVE DATE. This section is effective the day following final enactment.

128.11 	Sec. 52. Minnesota Statutes 2012, section 282.01, subdivision 6, is amended to read:
128.12 		Subd. 6.Duties of commissioner after sale. When any sale has been made by the 
128.13 	county auditor under sections 282.01 to 282.13, the auditor shall immediately certify to 
128.14 	the commissioner of revenue such information relating to such sale, on such forms as the 
128.15 	commissioner of revenue may prescribe as will enable the commissioner of revenue to 
128.16 	prepare an appropriate deed if the sale is for cash, or keep necessary records if the sale 
128.17 	is on terms; and not later than October 31 of each year the county auditor shall submit 
128.18 	to the commissioner of revenue a statement of all instances wherein any payment of 
128.19 	principal, interest, or current taxes on lands held under certificate, due or to be paid during 
128.20 	the preceding calendar years, are still outstanding at the time such certificate is made. 
128.21 	When such statement shows that a purchaser or the purchaser's assignee is in default, the 
128.22 	commissioner of revenue may instruct the county board of the county in which the land is 
128.23 	located to cancel said certificate of sale in the manner provided by subdivision 5, provided 
128.24 	that upon recommendation of the county board, and where the circumstances are such 
128.25 	that the commissioner of revenue after investigation is satisfied that the purchaser has 
128.26 	made every effort reasonable to make payment of both the annual installment and said 
128.27 	taxes, and that there has been no willful neglect on the part of the purchaser in meeting 
128.28 	these obligations, then the commissioner of revenue may extend the time for the payment 
128.29 	for such period as the commissioner may deem warranted, not to exceed one year. On 
128.30 	payment in full of the purchase price, appropriate conveyance in fee, in such form as may 
128.31 	be prescribed by the attorney general, shall be issued by the commissioner of revenue, 
128.32 	which conveyance must be recorded by the county and shall have the force and effect of 
128.33 	a patent from the state subject to easements and restrictions of record at the date of the 
128.34 	tax judgment sale, including, but without limitation, permits for telephone, telegraph, and 
129.1 	electric power lines either by underground cable or conduit or otherwise, sewer and water 
129.2 	lines, highways, railroads, and pipe lines for gas, liquids, or solids in suspension.

129.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

129.4 	Sec. 53. Minnesota Statutes 2012, section 282.04, subdivision 4, is amended to read:
129.5 		Subd. 4.Easements. The county auditor, when and for such price and on such 
129.6 	terms and for such period as the county board prescribes, may grant easements or permits 
129.7 	on unsold tax-forfeited land for telephone, telegraph, and electric power lines either by 
129.8 	underground cable or conduit or otherwise, sewer and water lines, highways, recreational 
129.9 	trails, railroads, and pipe lines for gas, liquids, or solids in suspension. Any such easement 
129.10 	or permit may be canceled by resolution of the county board after reasonable notice for 
129.11 	any substantial breach of its terms or if at any time its continuance will conflict with 
129.12 	public use of the land, or any part thereof, on which it is granted. Land affected by any 
129.13 	such easement or permit may be sold or leased for mineral or other legal purpose, but sale 
129.14 	or lease shall be subject to the easement or permit, and all rights granted by the easement 
129.15 	or permit shall be excepted from the conveyance or lease of the land and be reserved, 
129.16 	and may be canceled by the county board in the same manner and for the same reasons 
129.17 	as it could have been canceled before sale and in that case the rights granted thereby 
129.18 	shall vest in the state in trust as the land on which it was granted was held before sale or 
129.19 	lease. Any easement or permit granted before passage of Laws 1951, Chapter 203, may 
129.20 	be governed thereby if the holder thereof and county board so agree. Reasonable notice 
129.21 	as used in this subdivision, means a 90-day written notice addressed to the record owner 
129.22 	of the easement at the last known address, and upon cancellation the county board may 
129.23 	grant extensions of time to vacate the premises affected.

129.24 	EFFECTIVE DATE. This section is effective the day following final enactment.

129.25 	Sec. 54. Minnesota Statutes 2012, section 282.261, subdivision 2, is amended to read:
129.26 		Subd. 2.Interest rate. The unpaid balance on any repurchase contract approved 
129.27 	by the county board on or after July 1, 1982, is subject to interest at the rate determined 
129.28 	pursuant to section 549.09. Repurchase contracts approved after December 31, 1990, are 
129.29 	subject to interest at the rate determined in section 279.03, subdivision 1a. The interest 
129.30 	rate is subject to change each year on the unpaid balance in the manner provided for rate 
129.31 	changes in section 549.09 or279.03, subdivision 1a, whichever is applicable. Interest on 
129.32 	the unpaid contract balance on repurchases approved before July 1, 1982, is payable at the 
129.33 	rate applicable to the repurchase contract at the time that it was approved.

130.1 	EFFECTIVE DATE. This section is effective the day following final enactment.

130.2 	Sec. 55. Minnesota Statutes 2012, section 282.261, subdivision 4, is amended to read:
130.3 		Subd. 4.Service fee. The county auditor may collect a service fee to cover 
130.4 	administrative costs as set by the county board for each repurchase application received 
130.5 	after July 1, 1985. The fee must be paid at the time of application and must be credited to 
130.6 	the county general revenue fund.

130.7 	EFFECTIVE DATE. This section is effective the day following final enactment.

130.8 	Sec. 56. Minnesota Statutes 2012, section 282.261, subdivision 5, is amended to read:
130.9 		Subd. 5.County may impose conditions of repurchase. The county auditor, after 
130.10 	receiving county board approval, may impose conditions on repurchase of tax-forfeited 
130.11 	lands limiting the use of the parcel subject to the repurchase, including, but not limited to, 
130.12 	environmental remediation action plan restrictions or covenants, or easements for lines or 
130.13 	equipment for telephone, telegraph, electric power, or telecommunications.

130.14 	EFFECTIVE DATE. This section is effective the day following final enactment.

130.15 	Sec. 57. Minnesota Statutes 2012, section 282.322, is amended to read:
130.16 	282.322 FORFEITED LANDS LIST.
130.17 	The county board of any county may at any time after the passage of Laws 1945, 
130.18 	chapter 296, file a list of forfeited lands with the county auditor, if the board is of the 
130.19 	opinion that such lands may be acquired by the state or any municipal subdivision thereof 
130.20 	for public purposes. Upon the filing of such list the county auditor shall withhold said 
130.21 	lands from repurchase. If no proceeding shall be started to acquire such lands by the 
130.22 	state or some municipal subdivision thereof within one year after the filing of such list 
130.23 	the county board shall withdraw said list and thereafter the owner shall have one year in 
130.24 	which to repurchase as otherwise provided in Laws 1945, chapter 296.

130.25 	EFFECTIVE DATE. This section is effective the day following final enactment.

130.26 	Sec. 58. Minnesota Statutes 2012, section 287.30, is amended to read:
130.27 	287.30 COUNTY TREASURER; DUTIES.
130.28 	The care of documentary stamps entrusted to county treasurers and the duties imposed 
130.29 	upon county treasurers by this chapter are within the duties of such office and are within 
130.30 	the coverage of any official bond delivered to the state, conditioned that any such officer 
131.1 	shall faithfully execute the duties of office. The county board may by resolution require 
131.2 	the county auditor to perform any duty imposed on the county treasurer under this chapter.

131.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

131.4 	Sec. 59. Minnesota Statutes 2012, section 289A.25, subdivision 1, is amended to read:
131.5 		Subdivision 1.Requirements to pay. An individual, trust, S corporation, or 
131.6 	partnership must, when prescribed in subdivision 3, paragraph (b), make payments of 
131.7 	estimated tax. For individuals, the term "estimated tax" means the amount the taxpayer 
131.8 	estimates is the sum of the taxes imposed by chapter 290 for the taxable year. For trusts, 
131.9 	S corporations, and partnerships, the term estimated tax means the amount the taxpayer 
131.10 	estimates is the sum of the taxes for the taxable year imposed by chapter 290 and the 
131.11 	composite income tax imposed by section 289A.08, subdivision 7. If the individual is an 
131.12 	infant or incompetent person, the payments must be made by the individual's guardian. If 
131.13 	joint payments on estimated tax are made but a joint return is not made for the taxable 
131.14 	year, the estimated tax for that year may be treated as the estimated tax of either the 
131.15 	husband or the wife or may be divided between them.
131.16 	Notwithstanding the provisions of this section, no payments of estimated tax are 
131.17 	required if the estimated tax, as defined in this subdivision, less the credits allowed against 
131.18 	the tax, is less than $500.

131.19 	EFFECTIVE DATE. This section is effective the day following final enactment.

131.20 	Sec. 60. Minnesota Statutes 2012, section 290.01, subdivision 5, is amended to read:
131.21 		Subd. 5.Domestic corporation. The term "domestic" when applied to a corporation 
131.22 	means a corporation:
131.23 	(1) created or organized in the United States, or under the laws of the United 
131.24 	States or of any state, the District of Columbia, or any political subdivision of any of 
131.25 	the foregoing but not including the Commonwealth of Puerto Rico, or any possession 
131.26 	of the United States; or
131.27 	(2) which qualifies as a DISC, as defined in section 992(a) of the Internal Revenue 
131.28 	Code; or.
131.29 	(3) which qualifies as a FSC, as defined in section 922 of the Internal Revenue Code.

131.30 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
131.31 	December 31, 2013.

132.1 	Sec. 61. Minnesota Statutes 2013 Supplement, section 290.01, subdivision 19d, 
132.2 	is amended to read:
132.3 		Subd. 19d.Corporations; modifications decreasing federal taxable income. For 
132.4 	corporations, there shall be subtracted from federal taxable income after the increases 
132.5 	provided in subdivision 19c:
132.6 	(1) the amount of foreign dividend gross-up added to gross income for federal 
132.7 	income tax purposes under section 78 of the Internal Revenue Code;
132.8 	(2) the amount of salary expense not allowed for federal income tax purposes due to 
132.9 	claiming the work opportunity credit under section 51 of the Internal Revenue Code;
132.10 	(3) any dividend (not including any distribution in liquidation) paid within the 
132.11 	taxable year by a national or state bank to the United States, or to any instrumentality of 
132.12 	the United States exempt from federal income taxes, on the preferred stock of the bank 
132.13 	owned by the United States or the instrumentality;
132.14 	(4) amounts disallowed for intangible drilling costs due to differences between 
132.15 	this chapter and the Internal Revenue Code in taxable years beginning before January 
132.16 	1, 1987, as follows:
132.17 	(i) to the extent the disallowed costs are represented by physical property, an amount 
132.18 	equal to the allowance for depreciation under Minnesota Statutes 1986, section 290.09, 
132.19 	subdivision 7, subject to the modifications contained in subdivision 19e; and
132.20 	(ii) to the extent the disallowed costs are not represented by physical property, an 
132.21 	amount equal to the allowance for cost depletion under Minnesota Statutes 1986, section 
132.22 	290.09, subdivision 8;
132.23 	(5) (4) the deduction for capital losses pursuant to sections 1211 and 1212 of the 
132.24 	Internal Revenue Code, except that:
132.25 	(i) for capital losses incurred in taxable years beginning after December 31, 1986, 
132.26 	capital loss carrybacks shall not be allowed;
132.27 	(ii) for capital losses incurred in taxable years beginning after December 31, 1986, 
132.28 	a capital loss carryover to each of the 15 taxable years succeeding the loss year shall be 
132.29 	allowed;
132.30 	(iii) for capital losses incurred in taxable years beginning before January 1, 1987, a 
132.31 	capital loss carryback to each of the three taxable years preceding the loss year, subject to 
132.32 	the provisions of Minnesota Statutes 1986, section 290.16, shall be allowed; and
132.33 	(iv) for capital losses incurred in taxable years beginning before January 1, 1987, 
132.34 	a capital loss carryover to each of the five taxable years succeeding the loss year to the 
132.35 	extent such loss was not used in a prior taxable year and subject to the provisions of 
132.36 	Minnesota Statutes 1986, section 290.16, shall be allowed;
133.1 	(6) (5) an amount for interest and expenses relating to income not taxable for federal 
133.2 	income tax purposes, if (i) the income is taxable under this chapter and (ii) the interest and 
133.3 	expenses were disallowed as deductions under the provisions of section 171(a)(2), 265 or 
133.4 	291 of the Internal Revenue Code in computing federal taxable income;
133.5 	(7) (6) in the case of mines, oil and gas wells, other natural deposits, and timber for 
133.6 	which percentage depletion was disallowed pursuant to subdivision 19c, clause (8), a 
133.7 	reasonable allowance for depletion based on actual cost. In the case of leases the deduction 
133.8 	must be apportioned between the lessor and lessee in accordance with rules prescribed 
133.9 	by the commissioner. In the case of property held in trust, the allowable deduction must 
133.10 	be apportioned between the income beneficiaries and the trustee in accordance with the 
133.11 	pertinent provisions of the trust, or if there is no provision in the instrument, on the basis 
133.12 	of the trust's income allocable to each;
133.13 	(8) (7) for certified pollution control facilities placed in service in a taxable year 
133.14 	beginning before December 31, 1986, and for which amortization deductions were elected 
133.15 	under section 169 of the Internal Revenue Code of 1954, as amended through December 
133.16 	31, 1985, an amount equal to the allowance for depreciation under Minnesota Statutes 
133.17 	1986, section 290.09, subdivision 7;
133.18 	(9) (8) amounts included in federal taxable income that are due to refunds of 
133.19 	income, excise, or franchise taxes based on net income or related minimum taxes paid 
133.20 	by the corporation to Minnesota, another state, a political subdivision of another state, 
133.21 	the District of Columbia, or a foreign country or possession of the United States to the 
133.22 	extent that the taxes were added to federal taxable income under subdivision 19c, clause 
133.23 	(1), in a prior taxable year;
133.24 	(10) (9) income or gains from the business of mining as defined in section 290.05, 
133.25 	subdivision 1, clause (a), that are not subject to Minnesota franchise tax;
133.26 	(11) (10) the amount of disability access expenditures in the taxable year which are not 
133.27 	allowed to be deducted or capitalized under section 44(d)(7) of the Internal Revenue Code;
133.28 	(12) (11) the amount of qualified research expenses not allowed for federal income 
133.29 	tax purposes under section 280C(c) of the Internal Revenue Code, but only to the extent 
133.30 	that the amount exceeds the amount of the credit allowed under section 290.068;
133.31 	(13) (12) the amount of salary expenses not allowed for federal income tax purposes 
133.32 	due to claiming the Indian employment credit under section 45A(a) of the Internal 
133.33 	Revenue Code;
133.34 	(14) (13) any decrease in subpart F income, as defined in section 952(a) of the 
133.35 	Internal Revenue Code, for the taxable year when subpart F income is calculated without 
133.36 	regard to the provisions of Division C, title III, section 303(b) of Public Law 110-343;
134.1 	(15) (14) in each of the five tax years immediately following the tax year in which 
134.2 	an addition is required under subdivision 19c, clause (12), an amount equal to one-fifth 
134.3 	of the delayed depreciation. For purposes of this clause, "delayed depreciation" means 
134.4 	the amount of the addition made by the taxpayer under subdivision 19c, clause (12). The 
134.5 	resulting delayed depreciation cannot be less than zero;
134.6 	(16) (15) in each of the five tax years immediately following the tax year in which an 
134.7 	addition is required under subdivision 19c, clause (13), an amount equal to one-fifth of the 
134.8 	amount of the addition;
134.9 	(17) (16) to the extent included in federal taxable income, discharge of indebtedness 
134.10 	income resulting from reacquisition of business indebtedness included in federal taxable 
134.11 	income under section 108(i) of the Internal Revenue Code. This subtraction applies only 
134.12 	to the extent that the income was included in net income in a prior year as a result of the 
134.13 	addition under subdivision 19c, clause (16); and
134.14 	(18) (17) the amount of expenses not allowed for federal income tax purposes due 
134.15 	to claiming the railroad track maintenance credit under section 45G(a) of the Internal 
134.16 	Revenue Code.

134.17 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
134.18 	December 31, 2013.

134.19 	Sec. 62. Minnesota Statutes 2012, section 290.01, subdivision 19f, is amended to read:
134.20 		Subd. 19f.Basis modifications affecting gain or loss on disposition of property.
 134.21 	(a) For individuals, estates, and trusts, the basis of property is its adjusted basis for federal 
134.22 	income tax purposes except as set forth in paragraphs (e) and (f), (g), and (m). For 
134.23 	corporations, the basis of property is its adjusted basis for federal income tax purposes, 
134.24 	without regard to the time when the property became subject to tax under this chapter or to 
134.25 	whether out-of-state losses or items of tax preference with respect to the property were not 
134.26 	deductible under this chapter, except that the modifications to the basis for federal income 
134.27 	tax purposes set forth in paragraphs (b) to (j) (i) are allowed to corporations, and the 
134.28 	resulting modifications to federal taxable income must be made in the year in which gain 
134.29 	or loss on the sale or other disposition of property is recognized.
134.30 	(b) The basis of property shall not be reduced to reflect federal investment tax credit.
134.31 	(c) The basis of property subject to the accelerated cost recovery system under 
134.32 	section 168 of the Internal Revenue Code shall be modified to reflect the modifications in 
134.33 	depreciation with respect to the property provided for in subdivision 19e. For certified 
134.34 	pollution control facilities for which amortization deductions were elected under section 
135.1 	169 of the Internal Revenue Code of 1954, the basis of the property must be increased by 
135.2 	the amount of the amortization deduction not previously allowed under this chapter.
135.3 	(d) For property acquired before January 1, 1933, the basis for computing a gain is 
135.4 	the fair market value of the property as of that date. The basis for determining a loss is 
135.5 	the cost of the property to the taxpayer less any depreciation, amortization, or depletion, 
135.6 	actually sustained before that date. If the adjusted cost exceeds the fair market value of the 
135.7 	property, then the basis is the adjusted cost regardless of whether there is a gain or loss.
135.8 	(e) (d) The basis is reduced by the allowance for amortization of bond premium if 
135.9 	an election to amortize was made pursuant to Minnesota Statutes 1986, section 290.09, 
135.10 	subdivision 13, and the allowance could have been deducted by the taxpayer under this 
135.11 	chapter during the period of the taxpayer's ownership of the property.
135.12 	(f) (e) For assets placed in service before January 1, 1987, corporations, partnerships, 
135.13 	or individuals engaged in the business of mining ores other than iron ore or taconite 
135.14 	concentrates subject to the occupation tax under chapter 298 must use the occupation 
135.15 	tax basis of property used in that business.
135.16 	(g) (f) For assets placed in service before January 1, 1990, corporations, partnerships, 
135.17 	or individuals engaged in the business of mining iron ore or taconite concentrates subject 
135.18 	to the occupation tax under chapter 298 must use the occupation tax basis of property 
135.19 	used in that business.
135.20 	(h) (g) In applying the provisions of sections 301(c)(3)(B), 312(f) and (g), and 
135.21 	316(a)(1) of the Internal Revenue Code, the dates December 31, 1932, and January 1, 
135.22 	1933, shall be substituted for February 28, 1913, and March 1, 1913, respectively.
135.23 	(i) (h) In applying the provisions of section 362(a) and (c) of the Internal Revenue 
135.24 	Code, the date December 31, 1956, shall be substituted for June 22, 1954.
135.25 	(j) (i) The basis of property shall be increased by the amount of intangible drilling 
135.26 	costs not previously allowed due to differences between this chapter and the Internal 
135.27 	Revenue Code.
135.28 	(k) (j) The adjusted basis of any corporate partner's interest in a partnership is 
135.29 	the same as the adjusted basis for federal income tax purposes modified as required to 
135.30 	reflect the basis modifications set forth in paragraphs (b) to (j) (i). The adjusted basis 
135.31 	of a partnership in which the partner is an individual, estate, or trust is the same as the 
135.32 	adjusted basis for federal income tax purposes modified as required to reflect the basis 
135.33 	modifications set forth in paragraphs (e) and (f) and (g).
135.34 	(l) (k) The modifications contained in paragraphs (b) to (j) (i) also apply to the basis 
135.35 	of property that is determined by reference to the basis of the same property in the hands 
135.36 	of a different taxpayer or by reference to the basis of different property.

136.1 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
136.2 	December 31, 2013.

136.3 	Sec. 63. Minnesota Statutes 2012, section 290.01, subdivision 29, is amended to read:
136.4 		Subd. 29.Taxable income. The term "taxable income" means:
136.5 	(1) for individuals, estates, and trusts, the same as taxable net income;
136.6 	(2) for corporations, the taxable net income less
136.7 	(i) the net operating loss deduction under section 290.095;
136.8 	(ii) the dividends received deduction under section 290.21, subdivision 4; and
136.9 	(iii) the exemption for operating in a job opportunity building zone under section 
136.10 	469.317; and.
136.11 	(iv) the exemption for operating in a biotechnology and health sciences industry 
136.12 	zone under section 469.337.

136.13 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
136.14 	December 31, 2013.

136.15 	Sec. 64. Minnesota Statutes 2012, section 290.015, subdivision 1, is amended to read:
136.16 		Subdivision 1.General rule. (a) Except as provided in subdivision 3, a person 
136.17 	that conducts a trade or business that has a place of business in this state, regularly has 
136.18 	employees or independent contractors conducting business activities on its behalf in this 
136.19 	state, or owns or leases real property that is located in this state or tangible personal 
136.20 	property, including but not limited to mobile property, that is present in this state is subject 
136.21 	to the taxes imposed by this chapter.
136.22 	(b) Except as provided in subdivision 3, a person that conducts a trade or business 
136.23 	not described in paragraph (a) is subject to the taxes imposed by this chapter if the trade 
136.24 	or business obtains or regularly solicits business from within this state, without regard 
136.25 	to physical presence in this state.
136.26 	(c) For purposes of paragraph (b), business from within this state includes, but is 
136.27 	not limited to:
136.28 	(1) sales of products or services of any kind or nature to customers in this state who 
136.29 	receive the product or service in this state;
136.30 	(2) sales of services which are performed from outside this state but the services 
136.31 	are received in this state;
136.32 	(3) transactions with customers in this state that involve intangible property and 
136.33 	result in receipts attributed to this state as provided in section 290.191, subdivision 5 or 6;
137.1 	(4) leases of tangible personal property that is located in this state as defined in 
137.2 	section 290.191, subdivision 5, paragraph (g), or 6, paragraph (e); and
137.3 	(5) sales and leases of real property located in this state.
137.4 	(d) For purposes of paragraph (b), solicitation includes, but is not limited to:
137.5 	(1) the distribution, by mail or otherwise, without regard to the state from which such 
137.6 	distribution originated or in which the materials were prepared, of catalogs, periodicals, 
137.7 	advertising flyers, or other written solicitations of business to customers in this state;
137.8 	(2) display of advertisements on billboards or other outdoor advertising in this state;
137.9 	(3) advertisements in newspapers published in this state;
137.10 	(4) advertisements in trade journals or other periodicals, the circulation of which is 
137.11 	primarily within this state;
137.12 	(5) advertisements in a Minnesota edition of a national or regional publication or a 
137.13 	limited regional edition of which this state is included of a broader regional or national 
137.14 	publication which are not placed in other geographically defined editions of the same issue 
137.15 	of the same publication;
137.16 	(6) advertisements in regional or national publications in an edition which is not 
137.17 	by its contents geographically targeted to Minnesota, but which is sold over the counter 
137.18 	in Minnesota or by subscription to Minnesota residents;
137.19 	(7) advertisements broadcast on a radio or television station located in Minnesota; or
137.20 	(8) any other solicitation by telegraph, telephone, computer database, cable, optic, 
137.21 	microwave, or other communication system.

137.22 	EFFECTIVE DATE. This section is effective the day following final enactment.

137.23 	Sec. 65. Minnesota Statutes 2012, section 290.07, subdivision 1, is amended to read:
137.24 		Subdivision 1.Annual accounting period. Net income and taxable net income 
137.25 	shall be computed upon the basis of the taxpayer's annual accounting period. If a taxpayer 
137.26 	has no annual accounting period, or has one other than a fiscal year, as heretofore defined,
137.27 	 the net income and taxable net income shall be computed on the basis of the calendar year. 
137.28 	Taxpayers shall employ the same accounting period on which they report, or would be 
137.29 	required to report, their net income under the Internal Revenue Code. The commissioner 
137.30 	shall provide by rule for the determination of the accounting period for taxpayers who file 
137.31 	a combined report under section 290.17, subdivision 4, when members of the group use 
137.32 	different accounting periods for federal income tax purposes. Unless the taxpayer changes 
137.33 	its accounting period for federal purposes, the due date of the return is not changed.
137.34 	A taxpayer may change accounting periods only with the consent of the 
137.35 	commissioner. In case of any such change, the taxpayer shall pay a tax for the period 
138.1 	not included in either the taxpayer's former or newly adopted taxable year, computed as 
138.2 	provided in section 290.32.

138.3 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
138.4 	December 31, 2013.

138.5 	Sec. 66. Minnesota Statutes 2012, section 290.07, subdivision 2, is amended to read:
138.6 		Subd. 2.Accounting methods. Except as specifically provided to the contrary by 
138.7 	this chapter, net income and taxable net income shall be computed in accordance with 
138.8 	the method of accounting regularly employed in keeping the taxpayer's books. If no such 
138.9 	accounting system has been regularly employed, or if that employed does not clearly or 
138.10 	fairly reflect income or the income taxable under this chapter, the computation shall be 
138.11 	made in accordance with such method as in the opinion of the commissioner does clearly 
138.12 	and fairly reflect income and the income taxable under this chapter.
138.13 	Except as otherwise expressly provided in this chapter, a taxpayer who changes the 
138.14 	method of accounting for regularly computing the taxpayer's income in keeping books 
138.15 	shall, before computing net income and taxable net income under the new method, secure 
138.16 	the consent of the commissioner.

138.17 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
138.18 	December 31, 2013.

138.19 	Sec. 67. Minnesota Statutes 2013 Supplement, section 290.0921, subdivision 3, 
138.20 	is amended to read:
138.21 		Subd. 3.Alternative minimum taxable income. "Alternative minimum taxable 
138.22 	income" is Minnesota net income as defined in section 290.01, subdivision 19, and 
138.23 	includes the adjustments and tax preference items in sections 56, 57, 58, and 59(d), (e), 
138.24 	(f), and (h) of the Internal Revenue Code. If a corporation files a separate company 
138.25 	Minnesota tax return, the minimum tax must be computed on a separate company basis. 
138.26 	If a corporation is part of a tax group filing a unitary return, the minimum tax must be 
138.27 	computed on a unitary basis. The following adjustments must be made.
138.28 	(1) For purposes of the depreciation adjustments under section 56(a)(1) and 
138.29 	56(g)(4)(A) of the Internal Revenue Code, the basis for depreciable property placed in 
138.30 	service in a taxable year beginning before January 1, 1990, is the adjusted basis for federal 
138.31 	income tax purposes, including any modification made in a taxable year under section 
138.32 	290.01, subdivision 19e, or Minnesota Statutes 1986, section 290.09, subdivision 7, 
138.33 	paragraph (c).
139.1 	For taxable years beginning after December 31, 2000, the amount of any remaining 
139.2 	modification made under section 290.01, subdivision 19e, or Minnesota Statutes 1986, 
139.3 	section 290.09, subdivision 7, paragraph (c), not previously deducted is a depreciation 
139.4 	allowance in the first taxable year after December 31, 2000.
139.5 	(2) (1) The portion of the depreciation deduction allowed for federal income tax 
139.6 	purposes under section 168(k) of the Internal Revenue Code that is required as an 
139.7 	addition under section 290.01, subdivision 19c, clause (12), is disallowed in determining 
139.8 	alternative minimum taxable income.
139.9 	(3) (2) The subtraction for depreciation allowed under section 290.01, subdivision 
139.10 	19d, clause (15) (14), is allowed as a depreciation deduction in determining alternative 
139.11 	minimum taxable income.
139.12 	(4) (3) The alternative tax net operating loss deduction under sections 56(a)(4) and 
139.13 	56(d) of the Internal Revenue Code does not apply.
139.14 	(5) (4) The special rule for certain dividends under section 56(g)(4)(C)(ii) of the 
139.15 	Internal Revenue Code does not apply.
139.16 	(6) (5) The tax preference for depletion under section 57(a)(1) of the Internal 
139.17 	Revenue Code does not apply.
139.18 	(7) The tax preference for intangible drilling costs under section 57(a)(2) of the 
139.19 	Internal Revenue Code must be calculated without regard to subparagraph (E) and the 
139.20 	subtraction under section 290.01, subdivision 19d, clause (4).
139.21 	(8) (6) The tax preference for tax exempt interest under section 57(a)(5) of the 
139.22 	Internal Revenue Code does not apply.
139.23 	(9) (7) The tax preference for charitable contributions of appreciated property under 
139.24 	section 57(a)(6) of the Internal Revenue Code does not apply.
139.25 	(10) For purposes of calculating the tax preference for accelerated depreciation or 
139.26 	amortization on certain property placed in service before January 1, 1987, under section 
139.27 	57(a)(7) of the Internal Revenue Code, the deduction allowable for the taxable year is the 
139.28 	deduction allowed under section 290.01, subdivision 19e.
139.29 	For taxable years beginning after December 31, 2000, the amount of any remaining 
139.30 	modification made under section 290.01, subdivision 19e, not previously deducted is a 
139.31 	depreciation or amortization allowance in the first taxable year after December 31, 2004.
139.32 	(11) (8) For purposes of calculating the adjustment for adjusted current earnings 
139.33 	in section 56(g) of the Internal Revenue Code, the term "alternative minimum taxable 
139.34 	income" as it is used in section 56(g) of the Internal Revenue Code, means alternative 
139.35 	minimum taxable income as defined in this subdivision, determined without regard to the 
139.36 	adjustment for adjusted current earnings in section 56(g) of the Internal Revenue Code.
140.1 	(12) (9) For purposes of determining the amount of adjusted current earnings under 
140.2 	section 56(g)(3) of the Internal Revenue Code, no adjustment shall be made under section 
140.3 	56(g)(4) of the Internal Revenue Code with respect to (i) the amount of foreign dividend 
140.4 	gross-up subtracted as provided in section 290.01, subdivision 19d, clause (1), or (ii) the 
140.5 	amount of refunds of income, excise, or franchise taxes subtracted as provided in section 
140.6 	290.01, subdivision 19d, clause (9).
140.7 	(13) (10) Alternative minimum taxable income excludes the income from operating 
140.8 	in a job opportunity building zone as provided under section 469.317.
140.9 	(14) Alternative minimum taxable income excludes the income from operating in a 
140.10 	biotechnology and health sciences industry zone as provided under section 469.337.
140.11 	Items of tax preference must not be reduced below zero as a result of the 
140.12 	modifications in this subdivision.

140.13 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
140.14 	December 31, 2013.

140.15 	Sec. 68. Minnesota Statutes 2012, section 290.0922, subdivision 3, is amended to read:
140.16 		Subd. 3.Definitions. (a) "Minnesota sales or receipts" means the total sales 
140.17 	apportioned to Minnesota pursuant to section 290.191, subdivision 5, the total receipts 
140.18 	attributed to Minnesota pursuant to section 290.191, subdivisions 6 to 8, and/or the 
140.19 	total sales or receipts apportioned or attributed to Minnesota pursuant to any other 
140.20 	apportionment formula applicable to the taxpayer.
140.21 	(b) "Minnesota property" means total Minnesota tangible property as provided in 
140.22 	section 290.191, subdivisions 9 to 11, any other tangible property located in Minnesota, 
140.23 	but does not include: (1) the property of a qualified business as defined under section 
140.24 	469.310, subdivision 11, that is located in a job opportunity building zone designated 
140.25 	under section 469.314 and (2) property of a qualified business located in a biotechnology 
140.26 	and health sciences industry zone designated under section 469.334. Intangible property 
140.27 	shall not be included in Minnesota property for purposes of this section. Taxpayers who 
140.28 	do not utilize tangible property to apportion income shall nevertheless include Minnesota 
140.29 	property for purposes of this section. On a return for a short taxable year, the amount of 
140.30 	Minnesota property owned, as determined under section 290.191, shall be included in 
140.31 	Minnesota property based on a fraction in which the numerator is the number of days in 
140.32 	the short taxable year and the denominator is 365.
140.33 	(c) "Minnesota payrolls" means total Minnesota payrolls as provided in section 
140.34 	290.191, subdivision 12, but does not include: (1) the job opportunity building zone payroll 
140.35 	under section 469.310, subdivision 8, of a qualified business as defined under section 
141.1 	469.310, subdivision 11, and (2) biotechnology and health sciences industry zone payrolls 
141.2 	under section 469.330, subdivision 8. Taxpayers who do not utilize payrolls to apportion 
141.3 	income shall nevertheless include Minnesota payrolls for purposes of this section.

141.4 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
141.5 	December 31, 2013.

141.6 	Sec. 69. Minnesota Statutes 2012, section 290.095, subdivision 3, is amended to read:
141.7 		Subd. 3.Carryover. (a) A net operating loss incurred in a during the taxable year: 
141.8 	(i) beginning after December 31, 1986, shall be a net operating loss carryover to each of 
141.9 	the 15 taxable years following the taxable year of such loss; (ii) beginning before January 
141.10 	1, 1987, shall be a net operating loss carryover to each of the five taxable years following 
141.11 	the taxable year of such loss subject to the provisions of Minnesota Statutes 1986, section 
141.12 	290.095; and (iii) beginning before January 1, 1987, shall be a net operating loss carryback 
141.13 	to each of the three taxable years preceding the loss year subject to the provisions of 
141.14 	Minnesota Statutes 1986, section 290.095.
141.15 	(b) The entire amount of the net operating loss for any taxable year shall be carried to 
141.16 	the earliest of the taxable years to which such loss may be carried. The portion of such loss 
141.17 	which shall be carried to each of the other taxable years shall be the excess, if any, of the 
141.18 	amount of such loss over the sum of the taxable net income, adjusted by the modifications 
141.19 	specified in subdivision 4, for each of the taxable years to which such loss may be carried.
141.20 	(c) Where a corporation apportions its income under the provisions of section 
141.21 	290.191, the net operating loss deduction incurred in any taxable year shall be allowed 
141.22 	to the extent of the apportionment ratio of the loss year.
141.23 	(d) The provisions of sections 381, 382, and 384 of the Internal Revenue Code apply 
141.24 	to carryovers in certain corporate acquisitions and special limitations on net operating loss 
141.25 	carryovers. The limitation amount determined under section 382 shall be applied to net 
141.26 	income, before apportionment, in each post change year to which a loss is carried.

141.27 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
141.28 	December 31, 2013.

141.29 	Sec. 70. Minnesota Statutes 2013 Supplement, section 290.191, subdivision 5, is 
141.30 	amended to read:
141.31 		Subd. 5.Determination of sales factor. For purposes of this section, the following 
141.32 	rules apply in determining the sales factor.
142.1 	(a) The sales factor includes all sales, gross earnings, or receipts received in the 
142.2 	ordinary course of the business, except that the following types of income are not included 
142.3 	in the sales factor:
142.4 	(1) interest;
142.5 	(2) dividends;
142.6 	(3) sales of capital assets as defined in section 1221 of the Internal Revenue Code;
142.7 	(4) sales of property used in the trade or business, except sales of leased property of 
142.8 	a type which is regularly sold as well as leased; and
142.9 	(5) sales of debt instruments as defined in section 1275(a)(1) of the Internal Revenue 
142.10 	Code or sales of stock.
142.11 	(b) Sales of tangible personal property are made within this state if the property is 
142.12 	received by a purchaser at a point within this state, and the taxpayer is taxable in this state,
142.13 	 regardless of the f.o.b. point, other conditions of the sale, or the ultimate destination 
142.14 	of the property.
142.15 	(c) Tangible personal property delivered to a common or contract carrier or foreign 
142.16 	vessel for delivery to a purchaser in another state or nation is a sale in that state or nation, 
142.17 	regardless of f.o.b. point or other conditions of the sale.
142.18 	(d) Notwithstanding paragraphs (b) and (c), when intoxicating liquor, wine, 
142.19 	fermented malt beverages, cigarettes, or tobacco products are sold to a purchaser who is 
142.20 	licensed by a state or political subdivision to resell this property only within the state of 
142.21 	ultimate destination, the sale is made in that state.
142.22 	(e) Sales made by or through a corporation that is qualified as a domestic 
142.23 	international sales corporation under section 992 of the Internal Revenue Code are not 
142.24 	considered to have been made within this state.
142.25 	(f) Sales, rents, royalties, and other income in connection with real property is 
142.26 	attributed to the state in which the property is located.
142.27 	(g) Receipts from the lease or rental of tangible personal property, including finance 
142.28 	leases and true leases, must be attributed to this state if the property is located in this 
142.29 	state and to other states if the property is not located in this state. Receipts from the 
142.30 	lease or rental of moving property including, but not limited to, motor vehicles, rolling 
142.31 	stock, aircraft, vessels, or mobile equipment are included in the numerator of the receipts 
142.32 	factor to the extent that the property is used in this state. The extent of the use of moving 
142.33 	property is determined as follows:
142.34 	(1) A motor vehicle is used wholly in the state in which it is registered.
142.35 	(2) The extent that rolling stock is used in this state is determined by multiplying 
142.36 	the receipts from the lease or rental of the rolling stock by a fraction, the numerator of 
143.1 	which is the miles traveled within this state by the leased or rented rolling stock and the 
143.2 	denominator of which is the total miles traveled by the leased or rented rolling stock.
143.3 	(3) The extent that an aircraft is used in this state is determined by multiplying the 
143.4 	receipts from the lease or rental of the aircraft by a fraction, the numerator of which is 
143.5 	the number of landings of the aircraft in this state and the denominator of which is the 
143.6 	total number of landings of the aircraft.
143.7 	(4) The extent that a vessel, mobile equipment, or other mobile property is used in 
143.8 	the state is determined by multiplying the receipts from the lease or rental of the property 
143.9 	by a fraction, the numerator of which is the number of days during the taxable year the 
143.10 	property was in this state and the denominator of which is the total days in the taxable year.
143.11 	(h) Royalties and other income received for the use of or for the privilege of using 
143.12 	intangible property, including patents, know-how, formulas, designs, processes, patterns, 
143.13 	copyrights, trade names, service names, franchises, licenses, contracts, customer lists, or 
143.14 	similar items, must be attributed to the state in which the property is used by the purchaser. 
143.15 	If the property is used in more than one state, the royalties or other income must be 
143.16 	apportioned to this state pro rata according to the portion of use in this state. If the portion 
143.17 	of use in this state cannot be determined, the royalties or other income must be excluded 
143.18 	from both the numerator and the denominator. Intangible property is used in this state if 
143.19 	the purchaser uses the intangible property or the rights therein in the regular course of its 
143.20 	business operations in this state, regardless of the location of the purchaser's customers.
143.21 	(i) Sales of intangible property are made within the state in which the property is 
143.22 	used by the purchaser. If the property is used in more than one state, the sales must be 
143.23 	apportioned to this state pro rata according to the portion of use in this state. If the 
143.24 	portion of use in this state cannot be determined, the sale must be excluded from both the 
143.25 	numerator and the denominator of the sales factor. Intangible property is used in this 
143.26 	state if the purchaser used the intangible property in the regular course of its business 
143.27 	operations in this state.
143.28 	(j) Receipts from the performance of services must be attributed to the state where 
143.29 	the services are received. For the purposes of this section, receipts from the performance 
143.30 	of services provided to a corporation, partnership, or trust may only be attributed to a state 
143.31 	where it has a fixed place of doing business. If the state where the services are received is 
143.32 	not readily determinable or is a state where the corporation, partnership, or trust receiving 
143.33 	the service does not have a fixed place of doing business, the services shall be deemed 
143.34 	to be received at the location of the office of the customer from which the services were 
143.35 	ordered in the regular course of the customer's trade or business. If the ordering office 
144.1 	cannot be determined, the services shall be deemed to be received at the office of the 
144.2 	customer to which the services are billed.
144.3 	(k) For the purposes of this subdivision and subdivision 6, paragraph (l), receipts 
144.4 	from management, distribution, or administrative services performed by a corporation 
144.5 	or trust for a fund of a corporation or trust regulated under United States Code, title 15, 
144.6 	sections 80a-1 through 80a-64, must be attributed to the state where the shareholder of 
144.7 	the fund resides. Under this paragraph, receipts for services attributed to shareholders are 
144.8 	determined on the basis of the ratio of: (1) the average of the outstanding shares in the 
144.9 	fund owned by shareholders residing within Minnesota at the beginning and end of each 
144.10 	year; and (2) the average of the total number of outstanding shares in the fund at the 
144.11 	beginning and end of each year. Residence of the shareholder, in the case of an individual, 
144.12 	is determined by the mailing address furnished by the shareholder to the fund. Residence 
144.13 	of the shareholder, when the shares are held by an insurance company as a depositor for 
144.14 	the insurance company policyholders, is the mailing address of the policyholders. In 
144.15 	the case of an insurance company holding the shares as a depositor for the insurance 
144.16 	company policyholders, if the mailing address of the policyholders cannot be determined 
144.17 	by the taxpayer, the receipts must be excluded from both the numerator and denominator. 
144.18 	Residence of other shareholders is the mailing address of the shareholder.

144.19 	EFFECTIVE DATE. This section is effective the day following final enactment.

144.20 	Sec. 71. Minnesota Statutes 2012, section 290.9728, subdivision 2, is amended to read:
144.21 		Subd. 2.Taxable income. For purposes of this section, taxable income means 
144.22 	the lesser of:
144.23 	(1) the amount of the net capital gain of the S corporation for the taxable year, as 
144.24 	determined under sections 1222 and 1374 of the Internal Revenue Code, and subject to the 
144.25 	modifications provided in section 290.01, subdivisions 19e and subdivision 19f, in excess 
144.26 	of $25,000 that is allocable to this state under section 290.17, 290.191, or 290.20; or
144.27 	(2) the amount of the S corporation's federal taxable income, subject to the 
144.28 	provisions of section 290.01, subdivisions 19c to 19f, that is allocable to this state under 
144.29 	section 290.17, 290.191, or 290.20.

144.30 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
144.31 	December 31, 2013.

144.32 	Sec. 72. Minnesota Statutes 2013 Supplement, section 297A.61, subdivision 3, as 
144.33 	amended by Laws 2014, chapter 150, article 2, section 1, is amended to read:
145.1 		Subd. 3.Sale and purchase. (a) "Sale" and "purchase" include, but are not limited 
145.2 	to, each of the transactions listed in this subdivision. In applying the provisions of this 
145.3 	chapter, the terms "tangible personal property" and "retail sale" include the taxable 
145.4 	services listed in paragraph (g), clause (6), items (i) to (vi) and (viii), and the provision 
145.5 	of these taxable services, unless specifically provided otherwise. Services performed by 
145.6 	an employee for an employer are not taxable. Services performed by a partnership or 
145.7 	association for another partnership or association are not taxable if one of the entities owns 
145.8 	or controls more than 80 percent of the voting power of the equity interest in the other 
145.9 	entity. Services performed between members of an affiliated group of corporations are not 
145.10 	taxable. For purposes of the preceding sentence, "affiliated group of corporations" means 
145.11 	those entities that would be classified as members of an affiliated group as defined under 
145.12 	United States Code, title 26, section 1504, disregarding the exclusions in section 1504(b).
145.13 	(b) Sale and purchase include:
145.14 	(1) any transfer of title or possession, or both, of tangible personal property, whether 
145.15 	absolutely or conditionally, for a consideration in money or by exchange or barter; and
145.16 	(2) the leasing of or the granting of a license to use or consume, for a consideration 
145.17 	in money or by exchange or barter, tangible personal property, other than a manufactured 
145.18 	home used for residential purposes for a continuous period of 30 days or more.
145.19 	(c) Sale and purchase include the production, fabrication, printing, or processing of 
145.20 	tangible personal property for a consideration for consumers who furnish either directly or 
145.21 	indirectly the materials used in the production, fabrication, printing, or processing.
145.22 	(d) Sale and purchase include the preparing for a consideration of food. 
145.23 	Notwithstanding section 297A.67, subdivision 2, taxable food includes, but is not limited 
145.24 	to, the following:
145.25 	(1) prepared food sold by the retailer;
145.26 	(2) soft drinks;
145.27 	(3) candy;
145.28 	(4) dietary supplements; and
145.29 	(5) all food sold through vending machines.
145.30 	(e) A sale and a purchase includes the furnishing for a consideration of electricity, 
145.31 	gas, water, or steam for use or consumption within this state.
145.32 	(f) A sale and a purchase includes the transfer for a consideration of prewritten 
145.33 	computer software whether delivered electronically, by load and leave, or otherwise.
145.34 	(g) A sale and a purchase includes the furnishing for a consideration of the following 
145.35 	services:
146.1 	(1) the privilege of admission to places of amusement, recreational areas, or athletic 
146.2 	events, and the making available of amusement devices, tanning facilities, reducing 
146.3 	salons, steam baths, Turkish baths, health clubs, and spas or athletic facilities;
146.4 	(2) lodging and related services by a hotel, rooming house, resort, campground, 
146.5 	motel, or trailer camp, including furnishing the guest of the facility with access to 
146.6 	telecommunication services, and the granting of any similar license to use real property in 
146.7 	a specific facility, other than the renting or leasing of it for a continuous period of 30 days 
146.8 	or more under an enforceable written agreement that may not be terminated without prior 
146.9 	notice and including accommodations intermediary services provided in connection with 
146.10 	other services provided under this clause;
146.11 	(3) nonresidential parking services, whether on a contractual, hourly, or other 
146.12 	periodic basis, except for parking at a meter;
146.13 	(4) the granting of membership in a club, association, or other organization if:
146.14 	(i) the club, association, or other organization makes available for the use of its 
146.15 	members sports and athletic facilities, without regard to whether a separate charge is 
146.16 	assessed for use of the facilities; and
146.17 	(ii) use of the sports and athletic facility is not made available to the general public 
146.18 	on the same basis as it is made available to members.
146.19 	Granting of membership means both onetime initiation fees and periodic membership 
146.20 	dues. Sports and athletic facilities include golf courses; tennis, racquetball, handball, and 
146.21 	squash courts; basketball and volleyball facilities; running tracks; exercise equipment; 
146.22 	swimming pools; and other similar athletic or sports facilities;
146.23 	(5) delivery of aggregate materials by a third party, excluding delivery of aggregate 
146.24 	material used in road construction; and delivery of concrete block by a third party if the 
146.25 	delivery would be subject to the sales tax if provided by the seller of the concrete block. 
146.26 	For purposes of this clause, "road construction" means construction of:
146.27 	(i) public roads;
146.28 	(ii) cartways; and
146.29 	(iii) private roads in townships located outside of the seven-county metropolitan area 
146.30 	up to the point of the emergency response location sign; and
146.31 	(6) services as provided in this clause:
146.32 	(i) laundry and dry cleaning services including cleaning, pressing, repairing, altering, 
146.33 	and storing clothes, linen services and supply, cleaning and blocking hats, and carpet, 
146.34 	drapery, upholstery, and industrial cleaning. Laundry and dry cleaning services do not 
146.35 	include services provided by coin operated facilities operated by the customer;
147.1 	(ii) motor vehicle washing, waxing, and cleaning services, including services 
147.2 	provided by coin operated facilities operated by the customer, and rustproofing, 
147.3 	undercoating, and towing of motor vehicles;
147.4 	(iii) building and residential cleaning, maintenance, and disinfecting services and 
147.5 	pest control and exterminating services;
147.6 	(iv) detective, security, burglar, fire alarm, and armored car services; but not 
147.7 	including services performed within the jurisdiction they serve by off-duty licensed peace 
147.8 	officers as defined in section 626.84, subdivision 1, or services provided by a nonprofit 
147.9 	organization or any organization at the direction of a county for monitoring and electronic 
147.10 	surveillance of persons placed on in-home detention pursuant to court order or under the 
147.11 	direction of the Minnesota Department of Corrections;
147.12 	(v) pet grooming services;
147.13 	(vi) lawn care, fertilizing, mowing, spraying and sprigging services; garden planting 
147.14 	and maintenance; tree, bush, and shrub pruning, bracing, spraying, and surgery; indoor 
147.15 	plant care; tree, bush, shrub, and stump removal, except when performed as part of a land 
147.16 	clearing contract as defined in section 297A.68, subdivision 40; and tree trimming for 
147.17 	public utility lines. Services performed under a construction contract for the installation of 
147.18 	shrubbery, plants, sod, trees, bushes, and similar items are not taxable;
147.19 	(vii) massages, except when provided by a licensed health care facility or 
147.20 	professional or upon written referral from a licensed health care facility or professional for 
147.21 	treatment of illness, injury, or disease; and
147.22 	(viii) the furnishing of lodging, board, and care services for animals in kennels and 
147.23 	other similar arrangements, but excluding veterinary and horse boarding services.
147.24 	(h) A sale and a purchase includes the furnishing for a consideration of tangible 
147.25 	personal property or taxable services by the United States or any of its agencies or 
147.26 	instrumentalities, or the state of Minnesota, its agencies, instrumentalities, or political 
147.27 	subdivisions.
147.28 	(i) A sale and a purchase includes the furnishing for a consideration of 
147.29 	telecommunications services, ancillary services associated with telecommunication 
147.30 	services, and pay television services. Telecommunication services include, but are 
147.31 	not limited to, the following services, as defined in section 297A.669: air-to-ground 
147.32 	radiotelephone service, mobile telecommunication service, postpaid calling service, 
147.33 	prepaid calling service, prepaid wireless calling service, and private communication 
147.34 	services. The services in this paragraph are taxed to the extent allowed under federal law.
148.1 	(j) A sale and a purchase includes the furnishing for a consideration of installation if 
148.2 	the installation charges would be subject to the sales tax if the installation were provided 
148.3 	by the seller of the item being installed.
148.4 	(k) A sale and a purchase includes the rental of a vehicle by a motor vehicle dealer 
148.5 	to a customer when (1) the vehicle is rented by the customer for a consideration, or (2) 
148.6 	the motor vehicle dealer is reimbursed pursuant to a service contract as defined in section 
148.7 	59B.02, subdivision 11.
148.8 	(l) A sale and a purchase includes furnishing for a consideration of specified digital 
148.9 	products or other digital products or granting the right for a consideration to use specified 
148.10 	digital products or other digital products on a temporary or permanent basis and regardless 
148.11 	of whether the purchaser is required to make continued payments for such right. Wherever 
148.12 	the term "tangible personal property" is used in this chapter, other than in subdivisions 10 
148.13 	and 38, the provisions also apply to specified digital products, or other digital products, 
148.14 	unless specifically provided otherwise or the context indicates otherwise.

148.15 	EFFECTIVE DATE. This section is effective the day following final enactment.

148.16 	Sec. 73. Minnesota Statutes 2012, section 297A.70, subdivision 10, is amended to read:
148.17 		Subd. 10.Nonprofit tickets or admissions. (a) Tickets or admissions to an event 
148.18 	are exempt if all the gross receipts are recorded as such, in accordance with generally 
148.19 	accepted accounting principles, on the books of one or more organizations whose primary 
148.20 	mission is to provide an opportunity for citizens of the state to participate in the creation, 
148.21 	performance, or appreciation of the arts, and provided that each organization is:
148.22 	(1) an organization described in section 501(c)(3) of the Internal Revenue Code 
148.23 	in which voluntary contributions make up at least the following five percent of the 
148.24 	organization's annual revenue in its most recently completed 12-month fiscal year, or in 
148.25 	the current year if the organization has not completed a 12-month fiscal year:;
148.26 	(i) for sales made after July 31, 2001, and before July 1, 2002, for the organization's 
148.27 	fiscal year completed in calendar year 2000, three percent;
148.28 	(ii) for sales made on or after July 1, 2002, and on or before June 30, 2003, for the 
148.29 	organization's fiscal year completed in calendar year 2001, three percent;
148.30 	(iii) for sales made on or after July 1, 2003, and on or before June 30, 2004, for the 
148.31 	organization's fiscal year completed in calendar year 2002, four percent; and
148.32 	(iv) for sales made in each 12-month period, beginning on July 1, 2004, and each 
148.33 	subsequent year, for the organization's fiscal year completed in the preceding calendar 
148.34 	year, five percent;
148.35 	(2) a municipal board that promotes cultural and arts activities; or
149.1 	(3) the University of Minnesota, a state college and university, or a private nonprofit 
149.2 	college or university provided that the event is held at a facility owned by the educational 
149.3 	institution holding the event.
149.4 	The exemption only applies if the entire proceeds, after reasonable expenses, are used 
149.5 	solely to provide opportunities for citizens of the state to participate in the creation, 
149.6 	performance, or appreciation of the arts.
149.7 	(b) Tickets or admissions to the premises of the Minnesota Zoological Garden are 
149.8 	exempt, provided that the exemption under this paragraph does not apply to tickets or 
149.9 	admissions to performances or events held on the premises unless the performance or 
149.10 	event is sponsored and conducted exclusively by the Minnesota Zoological Board or 
149.11 	employees of the Minnesota Zoological Garden.

149.12 	EFFECTIVE DATE. This section is effective the day following final enactment.

149.13 	Sec. 74. Minnesota Statutes 2013 Supplement, section 297A.75, subdivision 1, is 
149.14 	amended to read:
149.15 		Subdivision 1.Tax collected. The tax on the gross receipts from the sale of the 
149.16 	following exempt items must be imposed and collected as if the sale were taxable and the 
149.17 	rate under section 297A.62, subdivision 1, applied. The exempt items include:
149.18 	(1) building materials for an agricultural processing facility exempt under section 
149.19 	297A.71, subdivision 13;
149.20 	(2) building materials for mineral production facilities exempt under section 
149.21 	297A.71, subdivision 14;
149.22 	(3) building materials for correctional facilities under section 297A.71, subdivision 3;
149.23 	(4) building materials used in a residence for disabled veterans exempt under section 
149.24 	297A.71, subdivision 11;
149.25 	(5) elevators and building materials exempt under section 297A.71, subdivision 12;
149.26 	(6) building materials for the Long Lake Conservation Center exempt under section 
149.27 	297A.71, subdivision 17;
149.28 	(7) (6) materials and supplies for qualified low-income housing under section 
149.29 	297A.71, subdivision 23;
149.30 	(8) (7) materials, supplies, and equipment for municipal electric utility facilities 
149.31 	under section 297A.71, subdivision 35;
149.32 	(9) (8) equipment and materials used for the generation, transmission, and 
149.33 	distribution of electrical energy and an aerial camera package exempt under section 
149.34 	297A.68, subdivision 37;
150.1 	(10) (9) commuter rail vehicle and repair parts under section 297A.70, subdivision 
150.2 	3, paragraph (a), clause (10);
150.3 	(11) (10) materials, supplies, and equipment for construction or improvement of 
150.4 	projects and facilities under section 297A.71, subdivision 40;
150.5 	(12) materials, supplies, and equipment for construction or improvement of a meat 
150.6 	processing facility exempt under section 297A.71, subdivision 41;
150.7 	(13) (11) materials, supplies, and equipment for construction, improvement, or 
150.8 	expansion of:
150.9 	(i) an aerospace defense manufacturing facility exempt under section 297A.71, 
150.10 	subdivision 42;
150.11 	(ii) a biopharmaceutical manufacturing facility exempt under section 297A.71, 
150.12 	subdivision 45;
150.13 	(iii) a research and development facility exempt under section 297A.71, subdivision 
150.14 	46; and
150.15 	(iv) an industrial measurement manufacturing and controls facility exempt under 
150.16 	section 297A.71, subdivision 47;
150.17 	(14) (12) enterprise information technology equipment and computer software for 
150.18 	use in a qualified data center exempt under section 297A.68, subdivision 42;
150.19 	(15) (13) materials, supplies, and equipment for qualifying capital projects under 
150.20 	section 297A.71, subdivision 44;
150.21 	(16) (14) items purchased for use in providing critical access dental services exempt 
150.22 	under section 297A.70, subdivision 7, paragraph (c); and
150.23 	(17) (15) items and services purchased under a business subsidy agreement for use or 
150.24 	consumption primarily in greater Minnesota exempt under section 297A.68, subdivision 44.

150.25 	EFFECTIVE DATE. This section is effective the day following final enactment.

150.26 	Sec. 75. Minnesota Statutes 2013 Supplement, section 297A.75, subdivision 2, is 
150.27 	amended to read:
150.28 		Subd. 2.Refund; eligible persons. Upon application on forms prescribed by the 
150.29 	commissioner, a refund equal to the tax paid on the gross receipts of the exempt items 
150.30 	must be paid to the applicant. Only the following persons may apply for the refund:
150.31 	(1) for subdivision 1, clauses (1), (2), and (16) (14), the applicant must be the 
150.32 	purchaser;
150.33 	(2) for subdivision 1, clauses clause (3) and (6), the applicant must be the 
150.34 	governmental subdivision;
151.1 	(3) for subdivision 1, clause (4), the applicant must be the recipient of the benefits 
151.2 	provided in United States Code, title 38, chapter 21;
151.3 	(4) for subdivision 1, clause (5), the applicant must be the owner of the homestead 
151.4 	property;
151.5 	(5) for subdivision 1, clause (7) (6), the owner of the qualified low-income housing 
151.6 	project;
151.7 	(6) for subdivision 1, clause (8) (7), the applicant must be a municipal electric utility 
151.8 	or a joint venture of municipal electric utilities;
151.9 	(7) for subdivision 1, clauses (9), (12), (13), (14) (8), (11), (12), and (17) (15), 
151.10 	the owner of the qualifying business; and
151.11 	(8) for subdivision 1, clauses (9), (10), (11), and (15) (13), the applicant must be the 
151.12 	governmental entity that owns or contracts for the project or facility.

151.13 	EFFECTIVE DATE. This section is effective the day following final enactment.

151.14 	Sec. 76. Minnesota Statutes 2013 Supplement, section 297A.75, subdivision 3, is 
151.15 	amended to read:
151.16 		Subd. 3.Application. (a) The application must include sufficient information 
151.17 	to permit the commissioner to verify the tax paid. If the tax was paid by a contractor, 
151.18 	subcontractor, or builder, under subdivision 1, clauses (3) to (15) (13), or (17) (15), the 
151.19 	contractor, subcontractor, or builder must furnish to the refund applicant a statement 
151.20 	including the cost of the exempt items and the taxes paid on the items unless otherwise 
151.21 	specifically provided by this subdivision. The provisions of sections 289A.40 and 
151.22 	289A.50 apply to refunds under this section.
151.23 	(b) An applicant may not file more than two applications per calendar year for 
151.24 	refunds for taxes paid on capital equipment exempt under section 297A.68, subdivision 5.
151.25 	(c) Total refunds for purchases of items in section 297A.71, subdivision 40, must not 
151.26 	exceed $5,000,000 in fiscal years 2010 and 2011. Applications for refunds for purchases 
151.27 	of items in sections 297A.70, subdivision 3, paragraph (a), clause (11), and 297A.71, 
151.28 	subdivision 40, must not be filed until after June 30, 2009.

151.29 	EFFECTIVE DATE. This section is effective the day following final enactment.

151.30 	Sec. 77. Minnesota Statutes 2012, section 297A.94, is amended to read:
151.31 	297A.94 DEPOSIT OF REVENUES.
152.1 	(a) Except as provided in this section, the commissioner shall deposit the revenues, 
152.2 	including interest and penalties, derived from the taxes imposed by this chapter in the state 
152.3 	treasury and credit them to the general fund.
152.4 	(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic 
152.5 	account in the special revenue fund if:
152.6 	(1) the taxes are derived from sales and use of property and services purchased for 
152.7 	the construction and operation of an agricultural resource project; and
152.8 	(2) the purchase was made on or after the date on which a conditional commitment 
152.9 	was made for a loan guaranty for the project under section 41A.04, subdivision 3.
152.10 	The commissioner of management and budget shall certify to the commissioner the date 
152.11 	on which the project received the conditional commitment. The amount deposited in 
152.12 	the loan guaranty account must be reduced by any refunds and by the costs incurred by 
152.13 	the Department of Revenue to administer and enforce the assessment and collection of 
152.14 	the taxes.
152.15 	(c) The commissioner shall deposit the revenues, including interest and penalties, 
152.16 	derived from the taxes imposed on sales and purchases included in section 297A.61, 
152.17 	subdivision 3, paragraph (g), clauses (1) and (4), in the state treasury, and credit them 
152.18 	as follows:
152.19 	(1) first to the general obligation special tax bond debt service account in each fiscal 
152.20 	year the amount required by section 16A.661, subdivision 3, paragraph (b); and
152.21 	(2) after the requirements of clause (1) have been met, the balance to the general fund.
152.22 	(d) The commissioner shall deposit the revenues, including interest and penalties, 
152.23 	collected under section 297A.64, subdivision 5, in the state treasury and credit them to the 
152.24 	general fund. By July 15 of each year the commissioner shall transfer to the highway user 
152.25 	tax distribution fund an amount equal to the excess fees collected under section 297A.64, 
152.26 	subdivision 5, for the previous calendar year.
152.27 	(e) For fiscal year 2001, 97 percent; for fiscal years 2002 and 2003, 87 percent; and 
152.28 	For fiscal year 2004 and thereafter,72.43 percent of the revenues, including interest and 
152.29 	penalties, transmitted to the commissioner under section 297A.65, must be deposited by 
152.30 	the commissioner in the state treasury as follows:
152.31 	(1) 50 percent of the receipts must be deposited in the heritage enhancement account 
152.32 	in the game and fish fund, and may be spent only on activities that improve, enhance, or 
152.33 	protect fish and wildlife resources, including conservation, restoration, and enhancement 
152.34 	of land, water, and other natural resources of the state;
152.35 	(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and 
152.36 	may be spent only for state parks and trails;
153.1 	(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and 
153.2 	may be spent only on metropolitan park and trail grants;
153.3 	(4) three percent of the receipts must be deposited in the natural resources fund, and 
153.4 	may be spent only on local trail grants; and
153.5 	(5) two percent of the receipts must be deposited in the natural resources fund, 
153.6 	and may be spent only for the Minnesota Zoological Garden, the Como Park Zoo and 
153.7 	Conservatory, and the Duluth Zoo.
153.8 	(f) The revenue dedicated under paragraph (e) may not be used as a substitute 
153.9 	for traditional sources of funding for the purposes specified, but the dedicated revenue 
153.10 	shall supplement traditional sources of funding for those purposes. Land acquired with 
153.11 	money deposited in the game and fish fund under paragraph (e) must be open to public 
153.12 	hunting and fishing during the open season, except that in aquatic management areas or 
153.13 	on lands where angling easements have been acquired, fishing may be prohibited during 
153.14 	certain times of the year and hunting may be prohibited. At least 87 percent of the money 
153.15 	deposited in the game and fish fund for improvement, enhancement, or protection of fish 
153.16 	and wildlife resources under paragraph (e) must be allocated for field operations.
153.17 	(g) The revenues deposited under paragraphs (a) to (f) do not include the revenues, 
153.18 	including interest and penalties, generated by the sales tax imposed under section 
153.19 	297A.62, subdivision 1a, which must be deposited as provided under the Minnesota 
153.20 	Constitution, article XI, section 15.

153.21 	EFFECTIVE DATE. This section is effective the day following final enactment.

153.22 	Sec. 78. Minnesota Statutes 2012, section 297B.09, is amended to read:
153.23 	297B.09 ALLOCATION OF REVENUE.
153.24 		Subdivision 1.Deposit of revenues. (a) Money collected and received under this 
153.25 	chapter must be deposited as provided in this subdivision.
153.26 	(b) From July 1, 2007, through June 30, 2008, 38.25 percent of the money collected 
153.27 	and received must be deposited in the highway user tax distribution fund, 24 percent must 
153.28 	be deposited in the metropolitan area transit account under section 16A.88, and 1.5 percent 
153.29 	must be deposited in the greater Minnesota transit account under section 16A.88. The 
153.30 	remaining money must be deposited in the general fund.
153.31 	(c) From July 1, 2008, through June 30, 2009, 44.25 percent of the money collected 
153.32 	and received must be deposited in the highway user tax distribution fund, 27.75 percent 
153.33 	must be deposited in the metropolitan area transit account under section 16A.88, 1.75 
154.1 	percent must be deposited in the greater Minnesota transit account under section 16A.88, 
154.2 	and the remaining money must be deposited in the general fund.
154.3 	(d) From July 1, 2009, through June 30, 2010, 47.5 percent of the money collected 
154.4 	and received must be deposited in the highway user tax distribution fund, 30 percent 
154.5 	must be deposited in the metropolitan area transit account under section 16A.88, 3.5 
154.6 	percent must be deposited in the greater Minnesota transit account under section 16A.88, 
154.7 	and 16.25 percent must be deposited in the general fund. The remaining amount must 
154.8 	be deposited as follows:
154.9 	(1) 1.5 percent in the metropolitan area transit account, except that any amount in 
154.10 	excess of $6,000,000 must be deposited in the highway user tax distribution fund; and
154.11 	(2) 1.25 percent in the greater Minnesota transit account, except that any amount in 
154.12 	excess of $5,000,000 must be deposited in the highway user tax distribution fund.
154.13 	(e) From July 1, 2010, through June 30, 2011, 54.5 percent of the money collected 
154.14 	and received must be deposited in the highway user tax distribution fund, 33.75 percent 
154.15 	must be deposited in the metropolitan area transit account under section 16A.88, 3.75 
154.16 	percent must be deposited in the greater Minnesota transit account under section 16A.88, 
154.17 	and 6.25 percent must be deposited in the general fund. The remaining amount must 
154.18 	be deposited as follows:
154.19 	(1) 1.5 percent in the metropolitan area transit account, except that any amount in 
154.20 	excess of $6,750,000 must be deposited in the highway user tax distribution fund; and
154.21 	(2) 0.25 percent in the greater Minnesota transit account, except that any amount in 
154.22 	excess of $1,250,000 must be deposited in the highway user tax distribution fund.
154.23 	(f) On and after July 1, 2011,(b) 60 percent of the money collected and received 
154.24 	must be deposited in the highway user tax distribution fund, 36 percent must be deposited 
154.25 	in the metropolitan area transit account under section 16A.88, and four percent must be 
154.26 	deposited in the greater Minnesota transit account under section 16A.88.
154.27 	(g) (c) It is the intent of the legislature that the allocations under paragraph (f) (b)
154.28 	 remain unchanged for fiscal year 2012 and all subsequent fiscal years.

154.29 	EFFECTIVE DATE. This section is effective the day following final enactment.

154.30 	Sec. 79. Minnesota Statutes 2012, section 297F.03, subdivision 2, is amended to read:
154.31 		Subd. 2.Form of application. Every application for a cigarette or tobacco products 
154.32 	license shall be made on a form prescribed by the commissioner and shall state the name 
154.33 	and address of the applicant; if the applicant is a firm, partnership, or association, the name 
154.34 	and address of each of its members; if the applicant is a corporation, the name and address 
154.35 	of each of its officers; the address of its principal place of business; the place where the 
155.1 	business to be licensed is to be conducted; and any other information the commissioner 
155.2 	may require for the administration of this chapter.

155.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

155.4 	Sec. 80. Minnesota Statutes 2012, section 297I.05, subdivision 14, is amended to read:
155.5 		Subd. 14.Life insurance. A tax is imposed on life insurance. The rate of tax equals 
155.6 	a percentage 1.5 percent of gross premiums less return premiums on all direct business 
155.7 	received by the insurer or agents of the insurer in Minnesota for life insurance, in cash or 
155.8 	otherwise, during the year. For premiums received after December 31, 2005, but before 
155.9 	January 1, 2007, the rate of tax is 1.875 percent. For premiums received after December 
155.10 	31, 2006, but before January 1, 2008, the rate of tax is 1.75 percent. For premiums 
155.11 	received after December 31, 2007, but before January 1, 2009, the rate of tax is 1.625 
155.12 	percent. For premiums received after December 31, 2008, the rate of tax is 1.5 percent.

155.13 	EFFECTIVE DATE. This section is effective the day following final enactment.

155.14 	Sec. 81. Minnesota Statutes 2012, section 298.75, subdivision 1, is amended to read:
155.15 		Subdivision 1.Definitions. Except as may otherwise be provided, the following 
155.16 	words, when used in this section, shall have the meanings herein ascribed to them.
155.17 	(a) "Aggregate material" means:
155.18 	(1) nonmetallic natural mineral aggregate including, but not limited to sand, silica 
155.19 	sand, gravel, crushed rock, limestone, granite, and borrow, but only if the borrow is 
155.20 	transported on a public road, street, or highway, provided that nonmetallic aggregate 
155.21 	material does not include dimension stone and dimension granite; and
155.22 	(2) taconite tailings, crushed rock, and architectural or dimension stone and dimension 
155.23 	granite removed from a taconite mine or the site of a previously operated taconite mine.
155.24 	Aggregate material must be measured or weighed after it has been extracted from 
155.25 	the pit, quarry, or deposit.
155.26 	(b) "Person" means any individual, firm, partnership, corporation, organization, 
155.27 	trustee, association, or other entity.
155.28 	(c) "Operator" means any person engaged in the business of removing aggregate 
155.29 	material from the surface or subsurface of the soil, for the purpose of sale, either directly 
155.30 	or indirectly, through the use of the aggregate material in a marketable product or service.
155.31 	(d) "Extraction site" means a pit, quarry, or deposit containing aggregate material 
155.32 	and any contiguous property to the pit, quarry, or deposit which is used by the operator for 
155.33 	stockpiling the aggregate material.
156.1 	(e) "Importer" means any person who buys aggregate material excavated from a 
156.2 	county not listed in paragraph (f) or another state site on which the tax under this section is 
156.3 	not imposed and causes the aggregate material to be imported into a county in this state 
156.4 	which imposes a tax on aggregate material.
156.5 	(f) "County" means the counties of Pope, Stearns, Benton, Sherburne, Carver, Scott, 
156.6 	Dakota, Le Sueur, Kittson, Marshall, Pennington, Red Lake, Polk, Norman, Mahnomen, 
156.7 	Clay, Becker, Carlton, St. Louis, Rock, Murray, Wilkin, Big Stone, Sibley, Hennepin, 
156.8 	Washington, Chisago, and Ramsey. County also means a county imposing the tax under 
156.9 	this section on December 31, 2014, or any other county whose board has voted after a 
156.10 	public hearing to impose the tax under this section and has notified the commissioner of 
156.11 	revenue of the imposition of the tax.
156.12 	(g) "Borrow" means granular borrow, consisting of durable particles of gravel and 
156.13 	sand, crushed quarry or mine rock, crushed gravel or stone, or any combination thereof, 
156.14 	the ratio of the portion passing the (#200) sieve divided by the portion passing the (1 inch) 
156.15 	sieve may not exceed 20 percent by mass.

156.16 	EFFECTIVE DATE. This section is effective January 1, 2015.

156.17 	Sec. 82. Minnesota Statutes 2012, section 412.131, is amended to read:
156.18 	412.131 ASSESSOR; DUTIES, COMPENSATION.
156.19 	The city assessor, if there is one, shall assess and return as provided by law all 
156.20 	property taxable within the city, if a separate assessment district, and the assessor of the 
156.21 	town within which the city lies shall not include in the return any property taxable in the 
156.22 	city. Any assessor may appoint a deputy assessor as provided in section 273.06. The 
156.23 	assessor may be compensated on a full-time or part-time basis at the option of the council 
156.24 	but the compensation shall be not less than $100 in any one year, if fixed on an annual 
156.25 	basis, or not more than $20 per day, if fixed on a per diem basis. If the compensation is 
156.26 	not fixed by the council the assessor shall be entitled to compensation at the rate of $20 
156.27 	per day for each days service necessarily rendered, and mileage at the rate paid other city 
156.28 	officers for each mile necessarily traveled in going to and returning from the county seat of 
156.29 	the county to attend any meeting of the assessors of the county legally called by the county 
156.30 	auditor, and also for each mile necessarily traveled in making the return of assessment 
156.31 	to the proper county officer and in attending sectional meetings called by the county 
156.32 	assessor, except when mileage is paid by the county. In addition to other compensation, 
156.33 	the council may allow the assessor mileage at the same rate per mile as paid other city 
156.34 	officers for each mile necessarily traveled in assessment work.

157.1 	EFFECTIVE DATE. This section is effective the day following final enactment.

157.2 	Sec. 83. Minnesota Statutes 2013 Supplement, section 423A.022, subdivision 3, 
157.3 	is amended to read:
157.4 		Subd. 3.Reporting; definitions. (a) On or before September 1, annually, the 
157.5 	executive director of the Public Employees Retirement Association shall report to the 
157.6 	commissioner of revenue the following:
157.7 	(1) the municipalities which employ firefighters with retirement coverage by the 
157.8 	public employees police and fire retirement plan;
157.9 	(2) the number of firefighters with public employees police and fire retirement plan 
157.10 	coverage employed by each municipality;
157.11 	(3) (2) the fire departments covered by the voluntary statewide lump-sum volunteer 
157.12 	firefighter retirement plan; and
157.13 	(4) (3) any other information requested by the commissioner to administer the police 
157.14 	and firefighter retirement supplemental state aid program.
157.15 	(b) For this subdivision, (i) the number of firefighters employed by a municipality 
157.16 	who have public employees police and fire retirement plan coverage means the number 
157.17 	of firefighters with public employees police and fire retirement plan coverage that were 
157.18 	employed by the municipality for not less than 30 hours per week for a minimum of six 
157.19 	months prior to December 31 preceding the date of the payment under this section and, if 
157.20 	the person was employed for less than the full year, prorated to the number of full months 
157.21 	employed; and (ii) the number of active police officers certified for police state aid receipt 
157.22 	under section 69.011, subdivisions 2 and 2b, means, for each municipality, the number of 
157.23 	police officers meeting the definition of peace officer in section 69.011, subdivision 1, 
157.24 	counted as provided and limited by section 69.011, subdivisions 2 and 2b.

157.25 	EFFECTIVE DATE. This section is effective the day following final enactment.

157.26 	Sec. 84. Minnesota Statutes 2013 Supplement, section 465.04, is amended to read:
157.27 	465.04 ACCEPTANCE OF GIFTS.
157.28 	Cities A city of the second, third, or fourth class, having at any time an estimated 
157.29 	market value of not more than $41,000,000, as officially equalized by the commissioner 
157.30 	of revenue, either operating under a home rule charter or under the laws of this state, in 
157.31 	addition to all other powers possessed by them, hereby are authorized and empowered to
157.32 	 may receive and accept gifts and donations for the use and benefit of such cities and the 
157.33 	city and its inhabitants thereof upon terms and conditions to be approved by the governing 
158.1 	bodies body of such cities; and such cities are authorized to comply with and perform such
158.2 	 the city. The terms and conditions, which may include payment to the donor or donors of 
158.3 	interest on the value of the gift at not exceeding five percent per annum payable annually or 
158.4 	semiannually, during the remainder of the natural life or lives of such the donor or donors.

158.5 	Sec. 85. Minnesota Statutes 2012, section 469.176, subdivision 1b, is amended to read:
158.6 		Subd. 1b.Duration limits; terms. (a) No tax increment shall in any event be 
158.7 	paid to the authority:
158.8 	(1) after 15 years after receipt by the authority of the first increment for a renewal 
158.9 	and renovation district;
158.10 	(2) after 20 years after receipt by the authority of the first increment for a soils 
158.11 	condition district;
158.12 	(3) after eight years after receipt by the authority of the first increment for an 
158.13 	economic development district;
158.14 	(4) for a housing district, a compact development district, or a redevelopment 
158.15 	district, after 25 years from the date of receipt by the authority of the first increment.
158.16 	(b) For purposes of determining a duration limit under this subdivision or subdivision 
158.17 	1e that is based on the receipt of an increment, any increments from taxes payable in the year 
158.18 	in which the district terminates shall be paid to the authority. This paragraph does not affect 
158.19 	a duration limit calculated from the date of approval of the tax increment financing plan or 
158.20 	based on the recovery of costs or to a duration limit under subdivision 1c. This paragraph 
158.21 	does not supersede the restrictions on payment of delinquent taxes in subdivision 1f.
158.22 	(c) An action by the authority to waive or decline to accept an increment has no 
158.23 	effect for purposes of computing a duration limit based on the receipt of increment under 
158.24 	this subdivision or any other provision of law. The authority is deemed to have received an 
158.25 	increment for any year in which it waived or declined to accept an increment, regardless 
158.26 	of whether the increment was paid to the authority.
158.27 	(d) Receipt by a hazardous substance subdistrict of an increment as a result of a 
158.28 	reduction in original net tax capacity under section 469.174, subdivision 7, paragraph 
158.29 	(b), does not constitute receipt of increment by the overlying district for the purpose of 
158.30 	calculating the duration limit under this section.

158.31 	EFFECTIVE DATE. This section is effective the day following final enactment.

158.32 	Sec. 86. Minnesota Statutes 2012, section 469.176, subdivision 3, is amended to read:
158.33 		Subd. 3.Limitation on administrative expenses. (a) For districts for which 
158.34 	certification was requested before August 1, 1979, or after June 30, 1982 and before
159.1 	 August 1, 2001, no tax increment shall be used to pay any administrative expenses for 
159.2 	a project which exceed ten percent of the total estimated tax increment expenditures 
159.3 	authorized by the tax increment financing plan or the total tax increment expenditures 
159.4 	for the project, whichever is less.
159.5 	(b) For districts for which certification was requested after July 31, 1979, and before 
159.6 	July 1, 1982, no tax increment shall be used to pay administrative expenses, as defined in 
159.7 	Minnesota Statutes 1980, section 273.73, for a district which exceeds five percent of the 
159.8 	total tax increment expenditures authorized by the tax increment financing plan or the total 
159.9 	estimated tax increment expenditures for the district, whichever is less.
159.10 	(c) (b) For districts for which certification was requested after July 31, 2001, no tax 
159.11 	increment may be used to pay any administrative expenses for a project which exceed 
159.12 	ten percent of total estimated tax increment expenditures authorized by the tax increment 
159.13 	financing plan or the total tax increments, as defined in section 469.174, subdivision 25, 
159.14 	clause (1), from the district, whichever is less.
159.15 	(d) (c) Increments used to pay the county's administrative expenses under 
159.16 	subdivision 4h are not subject to the percentage limits in this subdivision.

159.17 	EFFECTIVE DATE. This section is effective the day following final enactment.

159.18 	Sec. 87. Minnesota Statutes 2013 Supplement, section 469.1763, subdivision 2, 
159.19 	is amended to read:
159.20 		Subd. 2.Expenditures outside district. (a) For each tax increment financing 
159.21 	district, an amount equal to at least 75 percent of the total revenue derived from tax 
159.22 	increments paid by properties in the district must be expended on activities in the district 
159.23 	or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities 
159.24 	in the district or to pay, or secure payment of, debt service on credit enhanced bonds. 
159.25 	For districts, other than redevelopment districts for which the request for certification 
159.26 	was made after June 30, 1995, the in-district percentage for purposes of the preceding 
159.27 	sentence is 80 percent. Not more than 25 percent of the total revenue derived from tax 
159.28 	increments paid by properties in the district may be expended, through a development fund 
159.29 	or otherwise, on activities outside of the district but within the defined geographic area of 
159.30 	the project except to pay, or secure payment of, debt service on credit enhanced bonds. 
159.31 	For districts, other than redevelopment districts for which the request for certification was 
159.32 	made after June 30, 1995, the pooling percentage for purposes of the preceding sentence is 
159.33 	20 percent. The revenue derived from tax increments for the district that are expended on 
159.34 	costs under section 469.176, subdivision 4h, paragraph (b), may be deducted first before 
159.35 	calculating the percentages that must be expended within and without the district.
160.1 	(b) In the case of a housing district, a housing project, as defined in section 469.174, 
160.2 	subdivision 11, is an activity in the district.
160.3 	(c) All administrative expenses are for activities outside of the district, except that 
160.4 	if the only expenses for activities outside of the district under this subdivision are for 
160.5 	the purposes described in paragraph (d), administrative expenses will be considered as 
160.6 	expenditures for activities in the district.
160.7 	(d) The authority may elect, in the tax increment financing plan for the district, 
160.8 	to increase by up to ten percentage points the permitted amount of expenditures for 
160.9 	activities located outside the geographic area of the district under paragraph (a). As 
160.10 	permitted by section 469.176, subdivision 4k, the expenditures, including the permitted 
160.11 	expenditures under paragraph (a), need not be made within the geographic area of the 
160.12 	project. Expenditures that meet the requirements of this paragraph are legally permitted 
160.13 	expenditures of the district, notwithstanding section 469.176, subdivisions 4b, 4c, and 4j. 
160.14 	To qualify for the increase under this paragraph, the expenditures must:
160.15 	(1) be used exclusively to assist housing that meets the requirement for a qualified 
160.16 	low-income building, as that term is used in section 42 of the Internal Revenue Code; and
160.17 	(2) not exceed the qualified basis of the housing, as defined under section 42(c) of 
160.18 	the Internal Revenue Code, less the amount of any credit allowed under section 42 of 
160.19 	the Internal Revenue Code; and
160.20 	(3) be used to:
160.21 	(i) acquire and prepare the site of the housing;
160.22 	(ii) acquire, construct, or rehabilitate the housing; or
160.23 	(iii) make public improvements directly related to the housing; or
160.24 	(4) be used to develop housing:
160.25 	(i) if the market value of the housing does not exceed the lesser of:
160.26 	(A) 150 percent of the average market value of single-family homes in that 
160.27 	municipality; or
160.28 	(B) $200,000 for municipalities located in the metropolitan area, as defined in 
160.29 	section 473.121, or $125,000 for all other municipalities; and
160.30 	(ii) if the expenditures are used to pay the cost of site acquisition, relocation, 
160.31 	demolition of existing structures, site preparation, and pollution abatement on one or 
160.32 	more parcels, if the parcel contains a residence containing one to four family dwelling 
160.33 	units that has been vacant for six or more months and is in foreclosure as defined in 
160.34 	section 325N.10, subdivision 7, but without regard to whether the residence is the owner's 
160.35 	principal residence, and only after the redemption period has expired.
161.1 	(e) For a district created within a biotechnology and health sciences industry zone 
161.2 	as defined in section 469.330, subdivision 6, or for an existing district located within 
161.3 	such a zone, tax increment derived from such a district may be expended outside of the 
161.4 	district but within the zone only for expenditures required for the construction of public 
161.5 	infrastructure necessary to support the activities of the zone, land acquisition, and other 
161.6 	redevelopment costs as defined in section 469.176, subdivision 4j. These expenditures are 
161.7 	considered as expenditures for activities within the district. The authority provided by 
161.8 	this paragraph expires for expenditures made after the later of (1) December 31, 2015, 
161.9 	or (2) the end of the five-year period beginning on the date the district was certified, 
161.10 	provided that date was before January 1, 2016.
161.11 	(f) The authority under paragraph (d), clause (4), expires on December 31, 2016. 
161.12 	Increments may continue to be expended under this authority after that date, if they are 
161.13 	used to pay bonds or binding contracts that would qualify under subdivision 3, paragraph 
161.14 	(a), if December 31, 2016, is considered to be the last date of the five-year period after 
161.15 	certification under that provision.

161.16 	EFFECTIVE DATE. This section is effective the day following final enactment 
161.17 	and applies to all districts, regardless of when the request for certification was made.

161.18 	Sec. 88. Minnesota Statutes 2012, section 473.665, subdivision 5, is amended to read:
161.19 		Subd. 5.Tax levy; surplus; reduction. The corporation, upon issuing any bonds 
161.20 	under the provisions of this section, shall, before the issuance thereof, levy for each year, 
161.21 	until the principal and interest are paid in full, a direct annual tax on all the taxable property 
161.22 	of the cities in and for which the corporation has been created in an amount not less than 
161.23 	five percent in excess of the sum required to pay the principal and interest thereof, when 
161.24 	and as such principal and interest matures. After any of such bonds have been delivered to 
161.25 	purchasers, such tax shall be irrepealable until all such indebtedness is paid, and after the 
161.26 	issuance of such bonds no further action of the corporation shall be necessary to authorize 
161.27 	the extensions, assessments, and collection of such tax. The secretary of the corporation 
161.28 	shall forthwith furnish a certified copy of such levy to the county auditor or county 
161.29 	auditors of the county or counties in which the cities in and for which the corporation has 
161.30 	been created are located, together with full information regarding the bonds for which the 
161.31 	tax is levied, and such county auditor or such county auditors, as the case may be, shall 
161.32 	enter the same in the register provided for in section 475.62, or a similar register, and shall 
161.33 	extend and assess the tax so levied. If both cities are located wholly within one county, the 
161.34 	county auditor thereof shall annually extend and assess the amount of the tax so levied. If 
161.35 	the cities are located in different counties, the county auditor of each such county shall 
162.1 	annually extend and assess such portion of the tax levied as the net tax capacity of the 
162.2 	taxable property, not including moneys and credits, located wholly within the city in such 
162.3 	county bears to the total net tax capacity of the taxable property, not including moneys and 
162.4 	credits, within both cities. Any surplus resulting from the excess levy herein provided 
162.5 	for shall be transferred to a sinking fund after the principal and interest for which the tax 
162.6 	was levied and collected has been paid; provided, that the corporation may, on or before 
162.7 	October 15 in any year, by appropriate action, cause its secretary to certify to the county 
162.8 	auditor, or auditors, the amount on hand and available in its treasury from earnings, or 
162.9 	otherwise, including the amount in the sinking fund, which it will use to pay principal or 
162.10 	interest or both on each specified issue of its bonds, and the county auditor or auditors 
162.11 	shall reduce the levy for that year, herein provided for by that amount. The amount of 
162.12 	funds so certified shall be set aside by the corporation, and be used for no other purpose 
162.13 	than for the payment of the principal and interest of the bonds. All taxes hereunder shall 
162.14 	be collected and remitted to the corporation by the county treasurer or county treasurers, 
162.15 	in accordance with the provisions of law governing the collection of other taxes, and shall 
162.16 	be used solely for the payment of the bonds where due.

162.17 	EFFECTIVE DATE. This section is effective the day following final enactment.

162.18 	Sec. 89. Minnesota Statutes 2012, section 477A.0124, subdivision 5, is amended to 
162.19 	read:
162.20 		Subd. 5.County transition aid. (a) For 2009 and each year thereafter, A county is 
162.21 	eligible to receive the transition aid it received in 2007.
162.22 	(b) In 2009 only, a county with (1) a 2006 population less than 30,000, and (2) 
162.23 	an average Part I crimes per capita greater than 3.9 percent based on factors used in 
162.24 	determining county program aid payable in 2008, shall receive $100,000.

162.25 	EFFECTIVE DATE. This section is effective the day following final enactment.

162.26 	Sec. 90. Minnesota Statutes 2012, section 477A.014, subdivision 1, is amended to read:
162.27 		Subdivision 1.Calculations and payments. (a) The commissioner of revenue shall 
162.28 	make all necessary calculations and make payments pursuant to sections 477A.013 and 
162.29 	477A.03 directly to the affected taxing authorities annually. In addition, the commissioner 
162.30 	shall notify the authorities of their aid amounts, as well as the computational factors used 
162.31 	in making the calculations for their authority, and those statewide total figures that are 
162.32 	pertinent, before August 1 of the year preceding the aid distribution year.
163.1 	(b) For the purposes of this subdivision, aid is determined for a city or town based 
163.2 	on its city or town status as of June 30 of the year preceding the aid distribution year. If 
163.3 	the effective date for a municipal incorporation, consolidation, annexation, detachment, 
163.4 	dissolution, or township organization is on or before June 30 of the year preceding 
163.5 	the aid distribution year, such change in boundaries or form of government shall be 
163.6 	recognized for aid determinations for the aid distribution year. If the effective date for a 
163.7 	municipal incorporation, consolidation, annexation, detachment, dissolution, or township 
163.8 	organization is after June 30 of the year preceding the aid distribution year, such change in 
163.9 	boundaries or form of government shall not be recognized for aid determinations until 
163.10 	the following year.
163.11 	(c) Changes in boundaries or form of government will only be recognized for the 
163.12 	purposes of this subdivision, to the extent that: (1) changes in market values are included 
163.13 	in market values reported by assessors to the commissioner, and changes in population,
163.14 	 and household size, and the road accidents factor are included in their respective 
163.15 	certifications to the commissioner as referenced in section 477A.011, or (2) an annexation 
163.16 	information report as provided in paragraph (d) is received by the commissioner on 
163.17 	or before July 15 of the aid calculation year. Revisions to estimates or data for use in 
163.18 	recognizing changes in boundaries or form of government are not effective for purposes 
163.19 	of this subdivision unless received by the commissioner on or before July 15 of the aid 
163.20 	calculation year. Clerical errors in the certification or use of estimates and data established 
163.21 	as of July 15 in the aid calculation year are subject to correction within the time periods 
163.22 	allowed under subdivision 3.
163.23 	(d) In the case of an annexation, an annexation information report may be completed 
163.24 	by the annexing jurisdiction and submitted to the commissioner for purposes of this 
163.25 	subdivision if the net tax capacity of annexed area for the assessment year preceding the 
163.26 	effective date of the annexation exceeds five percent of the city's net tax capacity for the 
163.27 	same year. The form and contents of the annexation information report shall be prescribed 
163.28 	by the commissioner. The commissioner shall change the net tax capacity, the population, 
163.29 	the population decline, the commercial industrial percentage, and the transformed 
163.30 	population for the annexing jurisdiction only if the annexation information report provides 
163.31 	data the commissioner determines to be reliable for all of these factors used to compute city 
163.32 	revenue need for the annexing jurisdiction. The commissioner shall adjust the pre-1940 
163.33 	housing percentage, the road accidents factor, and household size only if the entire area of 
163.34 	an existing city or town is annexed or consolidated and only if reliable data is available for 
163.35 	all of these factors used to compute city revenue need for the annexing jurisdiction.

163.36 	EFFECTIVE DATE. This section is effective the day following final enactment.

164.1 	Sec. 91. Minnesota Statutes 2012, section 611.27, subdivision 13, is amended to read:
164.2 		Subd. 13.Public defense services; correctional facility inmates. All billings 
164.3 	for services rendered and ordered under subdivision 7 shall require the approval of the 
164.4 	chief district public defender before being forwarded on a monthly basis to the state 
164.5 	public defender. In cases where adequate representation cannot be provided by the district 
164.6 	public defender and where counsel has been appointed under a court order, the state 
164.7 	public defender shall forward to the commissioner of management and budget all billings 
164.8 	for services rendered under the court order. The commissioner shall pay for services 
164.9 	from county program aid retained by the commissioner of revenue for that purpose under 
164.10 	section 477A.0124, subdivision 1, clause (4), or477A.03, subdivision 2b, paragraph (a).
164.11 	The costs of appointed counsel and associated services in cases arising from new 
164.12 	criminal charges brought against indigent inmates who are incarcerated in a Minnesota 
164.13 	state correctional facility are the responsibility of the state Board of Public Defense. In 
164.14 	such cases the state public defender may follow the procedures outlined in this section for 
164.15 	obtaining court-ordered counsel.

164.16 	EFFECTIVE DATE. This section is effective the day following final enactment.

164.17 	Sec. 92. Minnesota Statutes 2012, section 611.27, subdivision 15, is amended to read:
164.18 		Subd. 15.Costs of transcripts. In appeal cases and postconviction cases where 
164.19 	the appellate public defender's office does not have sufficient funds to pay for transcripts 
164.20 	and other necessary expenses because it has spent or committed all of the transcript 
164.21 	funds in its annual budget, the state public defender may forward to the commissioner 
164.22 	of management and budget all billings for transcripts and other necessary expenses. The 
164.23 	commissioner shall pay for these transcripts and other necessary expenses from county 
164.24 	program aid retained by the commissioner of revenue for that purpose under section 
164.25 	477A.0124, subdivision 1, clause (4), or477A.03, subdivision 2b, paragraph (a).

164.26 	EFFECTIVE DATE. This section is effective the day following final enactment.

164.27 	Sec. 93. REVISOR'S INSTRUCTION.
 164.28 	The revisor of statutes shall make all necessary cross-reference changes in 
164.29 	Minnesota Statutes and Minnesota Rules consistent with the amendments and repealers in 
164.30 	this act. The revisor can make changes to sentence structure to preserve the meaning of 
164.31 	the text. The revisor shall make other changes in chapter titles; section, subdivision, part, 
164.32 	and subpart headnotes; and in other terminology necessary as a result of the enactment of 
164.33 	this act. The Department of Revenue shall assist in making these corrections.

165.1 	Sec. 94.  REPEALER.
 165.2 	(a) Minnesota Statutes 2012, sections 273.1398, subdivision 4b; 290.01, subdivision 
165.3 	19e; 290.0674, subdivision 3; 290.191, subdivision 4; and 290.33, and Minnesota Rules, 
165.4 	part 8007.0200, are repealed.
165.5 	(b) Minnesota Statutes 2012, sections 16D.02, subdivisions 5 and 8; 16D.11, 
165.6 	subdivision 2; 270C.131; 270C.53; 270C.991, subdivision 4; 272.02, subdivisions 1, 1a, 
165.7 	43, 48, 51, 53, 67, 72, and 82; 272.027, subdivision 2; 272.031; 273.015, subdivision 1; 
165.8 	273.03, subdivision 3; 273.075; 273.1383; 273.1386; 273.80; 275.77; 279.32; 281.173, 
165.9 	subdivision 8; 281.174, subdivision 8; 281.328; 282.10; 282.23; 287.20, subdivision 
165.10 	4; 287.27, subdivision 2; 290.01, subdivisions 4b and 20e; 290C.02, subdivisions 5 
165.11 	and 9; 290C.06; 295.52, subdivision 7; 297A.666; 297A.71, subdivisions 4, 5, 7, 9, 
165.12 	10, 17, 18, 20, 32, and 41; 297F.08, subdivision 11; 297H.10, subdivision 2; 469.174, 
165.13 	subdivision 10c; 469.175, subdivision 2b; 469.176, subdivision 1i; 469.177, subdivision 
165.14 	10; 477A.0124, subdivisions 1 and 6; and 505.173, Minnesota Statutes 2013 Supplement, 
165.15 	section 273.1103, Laws 1993, chapter 375, article 9, section 47,  and Minnesota Rules, 
165.16 	parts 8002.0200, subpart 8; 8100.0800; 8130.7500, subpart 7; 8130.8900, subpart 3; and 
165.17 	8130.9500, subparts 1, 1a, 2, 3, 4, and 5, are repealed.
165.18 	(c) Minnesota Statutes 2012, section 469.1764, is repealed.
165.19 	(d) Minnesota Statutes 2012, sections 289A.56, subdivision 7; 297A.68, subdivision 
165.20 	38; 469.330; 469.331; 469.332; 469.333; 469.334; 469.335; 469.336; 469.337; 469.338; 
165.21 	469.339; 469.340, subdivisions 1, 2, 3, and 5; and 469.341, and Minnesota Statutes 2013 
165.22 	Supplement, section 469.340, subdivision 4, are repealed.
165.23 	(e) Minnesota Statutes 2012, section 290.06, subdivisions 30 and 31, are repealed.

165.24 	EFFECTIVE DATE. Paragraph (a) is effective for taxable years beginning after 
165.25 	December 31, 2013.
165.26 	Paragraph (b) is effective the day following final enactment.
165.27 	Paragraph (c) is effective the day following final enactment and any remaining 
165.28 	unexpended tax increments from a district subject to Minnesota Statutes, section 469.1764, 
165.29 	must be distributed as excess increments to the city, county, and school district under 
165.30 	Minnesota Statutes, section 469.176, subdivision 2, paragraph (c), clause (4), on or before 
165.31 	December 31, 2014.
165.32 	Paragraph (d) is effective the day following final enactment.
165.33 	Paragraph (e) is effective for taxable years beginning after December 31, 2013.

166.1 	ARTICLE 9
166.2 	DEPARTMENT OF REVENUE - TECHNICAL AND POLICY 
166.3 	PROPERTY TAX PROVISIONS

166.4 	Section 1. Minnesota Statutes 2012, section 270.87, is amended to read:
166.5 	270.87 CERTIFICATION TO COUNTY ASSESSORS.
166.6 	After making an annual determination of the equalized fair market value of the 
166.7 	operating property of each company in each of the respective counties, and in the taxing 
166.8 	districts therein, the commissioner shall certify the equalized fair market value to the 
166.9 	county assessor on or before June 30. The equalized fair market value of the operating 
166.10 	property of the railroad company in the county and the taxing districts therein is the value 
166.11 	on which taxes must be levied and collected in the same manner as on the commercial and 
166.12 	industrial property of such county and the taxing districts therein. If the commissioner 
166.13 	determines that the equalized fair market value certified on or before June 30 is in error, 
166.14 	the commissioner may issue a corrected certification on or before August 31. The 
166.15 	commissioner may correct errors that are merely clerical in nature until December 31.

166.16 	EFFECTIVE DATE. This section is effective the day following final enactment.

166.17 	Sec. 2. Minnesota Statutes 2012, section 272.029, subdivision 4a, is amended to read:
166.18 		Subd. 4a.Correction of errors. If the commissioner of revenue determines that 
166.19 	the amount of production tax has been erroneously calculated, the commissioner may 
166.20 	correct the error. The commissioner must notify the owner of the wind energy conversion 
166.21 	system of the correction and the amount of tax due to each county and must certify the 
166.22 	correction to the county auditor of each county in which the system is located on or before 
166.23 	April 1 of the current year. The commissioner may correct errors that are merely clerical 
166.24 	in nature until December 31.

166.25 	EFFECTIVE DATE. This section is effective the day following final enactment.

166.26 	Sec. 3. Minnesota Statutes 2012, section 273.01, is amended to read:
166.27 	273.01 LISTING AND ASSESSMENT, TIME.
166.28 	All real property subject to taxation shall be listed and at least one-fifth of the parcels 
166.29 	listed shall be appraised each year with reference to their value on January 2 preceding the 
166.30 	assessment so that each parcel shall be reappraised at maximum intervals of five years. All 
166.31 	real property becoming taxable in any year shall be listed with reference to its value on 
166.32 	January 2 of that year. Except as provided in this section and section 274.01, subdivision 
167.1 	1, all real property assessments shall be completed two weeks prior to the date scheduled 
167.2 	for the local board of review or equalization. No changes in valuation or classification 
167.3 	which are intended to correct errors in judgment by the county assessor may be made by 
167.4 	the county assessor after the board of review or the county board of equalization has 
167.5 	adjourned; however, corrections of errors for real or personal property that are merely 
167.6 	clerical in nature or changes that extend homestead treatment to property are permitted 
167.7 	after adjournment until the tax extension date for that assessment year. Any changes made 
167.8 	by the assessor after adjournment must be fully documented and maintained in a file in the 
167.9 	assessor's office and shall be available for review by any person. A copy of any changes 
167.10 	made during this period shall be sent to the county board no later than December 31 of 
167.11 	the assessment year. In the event a valuation and classification is not placed on any real 
167.12 	property by the dates scheduled for the local board of review or equalization the valuation 
167.13 	and classification determined in the preceding assessment shall be continued in effect and 
167.14 	the provisions of section 273.13 shall, in such case, not be applicable, except with respect 
167.15 	to real estate which has been constructed since the previous assessment. Real property 
167.16 	containing iron ore, the fee to which is owned by the state of Minnesota, shall, if leased by 
167.17 	the state after January 2 in any year, be subject to assessment for that year on the value of 
167.18 	any iron ore removed under said lease prior to January 2 of the following year. Personal 
167.19 	property subject to taxation shall be listed and assessed annually with reference to its value 
167.20 	on January 2; and, if acquired on that day, shall be listed by or for the person acquiring it.

167.21 	EFFECTIVE DATE. This section is effective the day following final enactment.

167.22 	Sec. 4. Minnesota Statutes 2013 Supplement, section 273.1325, subdivision 1, is 
167.23 	amended to read:
167.24 		Subdivision 1.Computation. The Department of Revenue must annually conduct 
167.25 	an assessment/sales ratio study of the taxable property in each county, city, town, and 
167.26 	school district in accordance with the procedures in subdivisions 2 and 3. Based upon the 
167.27 	results of this assessment/sales ratio study, the Department of Revenue must determine 
167.28 	an equalized net tax capacity for the various classes of taxable property in each taxing 
167.29 	district, the aggregate of which is designated as the adjusted net tax capacity. The adjusted 
167.30 	net tax capacity must be reduced by the captured tax capacity of tax increment districts 
167.31 	under section 469.177, subdivision 2, fiscal disparities contribution tax capacities under 
167.32 	sections 276A.06 and 473F.08, and the tax capacity of transmission lines required to be 
167.33 	subtracted from the local tax base under section 273.425; and increased by fiscal disparities 
167.34 	distribution tax capacities under sections 276A.06 and 473F.08. The adjusted net tax 
167.35 	capacities shall be determined using the net tax capacity percentages in effect for the 
168.1 	assessment year following the assessment year of the study. The Department of Revenue 
168.2 	must make whatever estimates are necessary to account for changes in the classification 
168.3 	system. The Department of Revenue may incur the expense necessary to make the 
168.4 	determinations. The commissioner of revenue may reimburse any county or governmental 
168.5 	official for requested services performed in ascertaining the adjusted net tax capacity. On 
168.6 	or before March 15 annually, the Department of Revenue shall file with the chair of the 
168.7 	Tax Committee of the house of representatives and the chair of the Committee on Taxes 
168.8 	and Tax laws of the senate a report of adjusted net tax capacities for school districts. 
168.9 	On or before June 15 30 annually, the Department of Revenue shall file its final report 
168.10 	on the adjusted net tax capacities for school districts established by the previous year's 
168.11 	assessments and the current year's net tax capacity percentages with the commissioner of 
168.12 	education and each county auditor for those school districts for which the auditor has the 
168.13 	responsibility for determination of local tax rates. A copy of the report so filed shall be 
168.14 	mailed to the clerk of each school district involved and to the county assessor or supervisor 
168.15 	of assessments of the county or counties in which each school district is located.

168.16 	EFFECTIVE DATE. This section is effective January 1, 2014.

168.17 	Sec. 5. Minnesota Statutes 2012, section 273.33, subdivision 2, is amended to read:
168.18 		Subd. 2.Listing and assessment by commissioner. The personal property, 
168.19 	consisting of the pipeline system of mains, pipes, and equipment attached thereto, of 
168.20 	pipeline companies and others engaged in the operations or business of transporting natural 
168.21 	gas, gasoline, crude oil, or other petroleum products by pipelines, shall be listed with and 
168.22 	assessed by the commissioner of revenue and the values provided to the city or county 
168.23 	assessor by order. This subdivision shall not apply to the assessment of the products 
168.24 	transported through the pipelines nor to the lines of local commercial gas companies 
168.25 	engaged primarily in the business of distributing gas to consumers at retail nor to pipelines 
168.26 	used by the owner thereof to supply natural gas or other petroleum products exclusively 
168.27 	for such owner's own consumption and not for resale to others. If more than 85 percent 
168.28 	of the natural gas or other petroleum products actually transported over the pipeline is 
168.29 	used for the owner's own consumption and not for resale to others, then this subdivision 
168.30 	shall not apply; provided, however, that in that event, the pipeline shall be assessed in 
168.31 	proportion to the percentage of gas actually transported over such pipeline that is not used 
168.32 	for the owner's own consumption. On or before August 1, the commissioner shall certify 
168.33 	to the auditor of each county, the amount of such personal property assessment against 
168.34 	each company in each district in which such property is located. If the commissioner 
168.35 	determines that the amount of personal property assessment certified on or before August 
169.1 	1 is in error, the commissioner may issue a corrected certification on or before October 1.
169.2 	 The commissioner may correct errors that are merely clerical in nature until December 31.

169.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

169.4 	Sec. 6. Minnesota Statutes 2012, section 273.37, subdivision 2, is amended to read:
169.5 		Subd. 2.Listing and assessment by commissioner. Transmission lines of less 
169.6 	than 69 kv, transmission lines of 69 kv and above located in an unorganized township, 
169.7 	and distribution lines, and equipment attached thereto, having a fixed situs outside the 
169.8 	corporate limits of cities except distribution lines taxed as provided in sections 273.40 
169.9 	and 273.41, shall be listed with and assessed by the commissioner of revenue in the 
169.10 	county where situated and the values provided to the city or county assessor by order. 
169.11 	The commissioner shall assess such property at the percentage of market value fixed by 
169.12 	law; and, on or before August 1, shall certify to the auditor of each county in which 
169.13 	such property is located the amount of the assessment made against each company and 
169.14 	person owning such property. If the commissioner determines that the amount of the 
169.15 	assessment certified on or before August 1 is in error, the commissioner may issue a 
169.16 	corrected certification on or before October 1. The commissioner may correct errors that 
169.17 	are merely clerical in nature until December 31.

169.18 	EFFECTIVE DATE. This section is effective the day following final enactment.

169.19 	Sec. 7. Minnesota Statutes 2012, section 273.3711, is amended to read:
169.20 	273.3711 RECOMMENDED AND ORDERED VALUES.
169.21 	For purposes of sections 273.33, 273.35, 273.36, 273.37, 273.371, and 273.372, 
169.22 	all values not required to be listed and assessed by the commissioner of revenue are 
169.23 	recommended values. If the commissioner provides recommended values, the values must 
169.24 	be certified to the auditor of each county in which the property is located on or before 
169.25 	August 1. If the commissioner determines that the certified recommended value is in 
169.26 	error the commissioner may issue a corrected certification on or before October 1. The 
169.27 	commissioner may correct errors that are merely clerical in nature until December 31.

169.28 	EFFECTIVE DATE. This section is effective the day following final enactment.

169.29 	Sec. 8. Minnesota Statutes 2012, section 274.01, subdivision 1, is amended to read:
169.30 		Subdivision 1.Ordinary board; meetings, deadlines, grievances. (a) The town 
169.31 	board of a town, or the council or other governing body of a city, is the board of appeal 
170.1 	and equalization except (1) in cities whose charters provide for a board of equalization or 
170.2 	(2) in any city or town that has transferred its local board of review power and duties to 
170.3 	the county board as provided in subdivision 3. The county assessor shall fix a day and 
170.4 	time when the board or the board of equalization shall meet in the assessment districts 
170.5 	of the county. Notwithstanding any law or city charter to the contrary, a city board of 
170.6 	equalization shall be referred to as a board of appeal and equalization. On or before 
170.7 	February 15 of each year the assessor shall give written notice of the time to the city or 
170.8 	town clerk. Notwithstanding the provisions of any charter to the contrary, the meetings 
170.9 	must be held between April 1 and May 31 each year. The clerk shall give published and 
170.10 	posted notice of the meeting at least ten days before the date of the meeting.
170.11 	The board shall meet either at a central location within the county or at the office of 
170.12 	the clerk to review the assessment and classification of property in the town or city. No 
170.13 	changes in valuation or classification which are intended to correct errors in judgment by 
170.14 	the county assessor may be made by the county assessor after the board has adjourned 
170.15 	in those cities or towns that hold a local board of review; however, corrections of errors 
170.16 	that are merely clerical in nature or changes that extend homestead treatment to property 
170.17 	are permitted after adjournment until the tax extension date for that assessment year. The 
170.18 	changes must be fully documented and maintained in the assessor's office and must be 
170.19 	available for review by any person. A copy of the changes made during this period in 
170.20 	those cities or towns that hold a local board of review must be sent to the county board no 
170.21 	later than December 31 of the assessment year.
170.22 	(b) The board shall determine whether the taxable property in the town or city has 
170.23 	been properly placed on the list and properly valued by the assessor. If real or personal 
170.24 	property has been omitted, the board shall place it on the list with its market value, and 
170.25 	correct the assessment so that each tract or lot of real property, and each article, parcel, 
170.26 	or class of personal property, is entered on the assessment list at its market value. No 
170.27 	assessment of the property of any person may be raised unless the person has been 
170.28 	duly notified of the intent of the board to do so. On application of any person feeling 
170.29 	aggrieved, the board shall review the assessment or classification, or both, and correct 
170.30 	it as appears just. The board may not make an individual market value adjustment or 
170.31 	classification change that would benefit the property if the owner or other person having 
170.32 	control over the property has refused the assessor access to inspect the property and the 
170.33 	interior of any buildings or structures as provided in section 273.20. A board member 
170.34 	shall not participate in any actions of the board which result in market value adjustments 
170.35 	or classification changes to property owned by the board member, the spouse, parent, 
170.36 	stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle, aunt, nephew, 
171.1 	or niece of a board member, or property in which a board member has a financial interest. 
171.2 	The relationship may be by blood or marriage.
171.3 	(c) A local board may reduce assessments upon petition of the taxpayer but the total 
171.4 	reductions must not reduce the aggregate assessment made by the county assessor by more 
171.5 	than one percent. If the total reductions would lower the aggregate assessments made by 
171.6 	the county assessor by more than one percent, none of the adjustments may be made. The 
171.7 	assessor shall correct any clerical errors or double assessments discovered by the board 
171.8 	without regard to the one percent limitation.
171.9 	(d) A local board does not have authority to grant an exemption or to order property 
171.10 	removed from the tax rolls.
171.11 	(e) A majority of the members may act at the meeting, and adjourn from day to day 
171.12 	until they finish hearing the cases presented. The assessor shall attend, with the assessment 
171.13 	books and papers, and take part in the proceedings, but must not vote. The county assessor, 
171.14 	or an assistant delegated by the county assessor shall attend the meetings. The board shall 
171.15 	list separately, on a form appended to the assessment book, all omitted property added 
171.16 	to the list by the board and all items of property increased or decreased, with the market 
171.17 	value of each item of property, added or changed by the board, placed opposite the item. 
171.18 	The county assessor shall enter all changes made by the board in the assessment book.
171.19 	(f) Except as provided in subdivision 3, if a person fails to appear in person, by 
171.20 	counsel, or by written communication before the board after being duly notified of the 
171.21 	board's intent to raise the assessment of the property, or if a person feeling aggrieved by an 
171.22 	assessment or classification fails to apply for a review of the assessment or classification, 
171.23 	the person may not appear before the county board of appeal and equalization for a review 
171.24 	of the assessment or classification. This paragraph does not apply if an assessment was 
171.25 	made after the local board meeting, as provided in section 273.01, or if the person can 
171.26 	establish not having received notice of market value at least five days before the local 
171.27 	board meeting.
171.28 	(g) The local board must complete its work and adjourn within 20 days from the 
171.29 	time of convening stated in the notice of the clerk, unless a longer period is approved by 
171.30 	the commissioner of revenue. No action taken after that date is valid. All complaints 
171.31 	about an assessment or classification made after the meeting of the board must be heard 
171.32 	and determined by the county board of equalization. A nonresident may, at any time, 
171.33 	before the meeting of the board file written objections to an assessment or classification 
171.34 	with the county assessor. The objections must be presented to the board at its meeting by 
171.35 	the county assessor for its consideration.

171.36 	EFFECTIVE DATE. This section is effective the day following final enactment.

172.1 	Sec. 9. Minnesota Statutes 2012, section 274.014, subdivision 3, is amended to read:
172.2 		Subd. 3.Proof of compliance; transfer of duties. (a) Any city or town that 
172.3 	conducts local boards of appeal and equalization meetings must provide proof to the 
172.4 	county assessor by December 1, 2006 February 15, 2015, and each year thereafter, that it 
172.5 	is in compliance with the requirements of subdivision 2. Beginning in 2006 2015, this 
172.6 	notice must also verify that there was a quorum of voting members at each meeting of the 
172.7 	board of appeal and equalization in the current year. A city or town that does not comply 
172.8 	with these requirements is deemed to have transferred its board of appeal and equalization 
172.9 	powers to the county beginning with the following year's assessment and continuing 
172.10 	unless the powers are reinstated under paragraph (c).
172.11 	(b) The county shall notify the taxpayers when the board of appeal and equalization 
172.12 	for a city or town has been transferred to the county under this subdivision and, prior to 
172.13 	the meeting time of the county board of equalization, the county shall make available to 
172.14 	those taxpayers a procedure for a review of the assessments, including, but not limited to, 
172.15 	open book meetings. This alternate review process shall take place in April and May.
172.16 	(c) A local board whose powers are transferred to the county under this subdivision 
172.17 	may be reinstated by resolution of the governing body of the city or town and upon proof 
172.18 	of compliance with the requirements of subdivision 2. The resolution and proofs must be 
172.19 	provided to the county assessor by December 1 February 15 in order to be effective for 
172.20 	the following year's assessment.
172.21 	(d) A local board whose powers are transferred to the county under this subdivision 
172.22 	may continue to employ a local assessor and is not deemed to have transferred its powers 
172.23 	to make assessments.

172.24 	EFFECTIVE DATE. This section is effective beginning with local boards of appeal 
172.25 	and equalization meetings held after December 31, 2014.

172.26 	Sec. 10. Minnesota Statutes 2013 Supplement, section 290C.03, is amended to read:
172.27 	290C.03 ELIGIBILITY REQUIREMENTS.
172.28 	(a) Land may be enrolled in the sustainable forest incentive program under this 
172.29 	chapter if all of the following conditions are met:
172.30 	(1) the land consists of at least 20 contiguous acres and at least 50 percent of the 
172.31 	land must meet the definition of forest land in section 88.01, subdivision 7, during the 
172.32 	enrollment;
172.33 	(2) a forest management plan for the land must be prepared by an approved plan 
172.34 	writer and implemented during the period in which the land is enrolled;
173.1 	(3) timber harvesting and forest management guidelines must be used in conjunction 
173.2 	with any timber harvesting or forest management activities conducted on the land during 
173.3 	the period in which the land is enrolled;
173.4 	(4) the land must be enrolled for a minimum of eight years;
173.5 	(5) there are no delinquent property taxes on the land; and
173.6 	(6) claimants enrolling more than 1,920 acres in the sustainable forest incentive 
173.7 	program must allow year-round, nonmotorized access to fish and wildlife resources and 
173.8 	motorized access on established and maintained roads and trails, unless the road or trail is 
173.9 	temporarily closed for safety, natural resource, or road damage reasons on enrolled land 
173.10 	except within one-fourth mile of a permanent dwelling or during periods of high fire 
173.11 	hazard as determined by the commissioner of natural resources.; and
173.12 	(7) the land is not classified as class 2c managed forest land.
173.13 	(b) Claimants required to allow access under paragraph (a), clause (6), do not by 
173.14 	that action:
173.15 	(1) extend any assurance that the land is safe for any purpose;
173.16 	(2) confer upon the person the legal status of an invitee or licensee to whom a duty 
173.17 	of care is owed; or
173.18 	(3) assume responsibility for or incur liability for any injury to the person or property 
173.19 	caused by an act or omission of the person.

173.20 	EFFECTIVE DATE. This section is effective for certifications and applications 
173.21 	due in 2014 and thereafter.

173.22 	Sec. 11. Minnesota Statutes 2013 Supplement, section 423A.02, subdivision 3, is 
173.23 	amended to read:
173.24 		Subd. 3.Reallocation of amortization state aid. (a) Seventy percent of the 
173.25 	difference between $5,720,000 and the current year amortization aid distributed under 
173.26 	subdivision 1 that is not distributed for any reason to a municipality must be distributed 
173.27 	by the commissioner of revenue according to this paragraph. The commissioner shall 
173.28 	distribute 50 percent of the amounts derived under this paragraph to the Teachers 
173.29 	Retirement Association, ten percent to the Duluth Teachers Retirement Fund Association, 
173.30 	and 40 percent to the St. Paul Teachers Retirement Fund Association to fund the unfunded 
173.31 	actuarial accrued liabilities of the respective funds. These payments must be made on July 
173.32 	15 each fiscal year. If the St. Paul Teachers Retirement Fund Association or the Duluth 
173.33 	Teachers Retirement Fund Association becomes fully funded, the association's eligibility 
173.34 	for its portion of this aid ceases. Amounts remaining in the undistributed balance account 
173.35 	at the end of the biennium if aid eligibility ceases cancel to the general fund.
174.1 	(b) In order to receive amortization aid under paragraph (a), before June 30 annually 
174.2 	Independent School District No. 625, St. Paul, must make an additional contribution of 
174.3 	$800,000 each year to the St. Paul Teachers Retirement Fund Association.
174.4 	(c) Thirty percent of the difference between $5,720,000 and the current year 
174.5 	amortization aid under subdivision 1a 1 that is not distributed for any reason to a 
174.6 	municipality must be distributed under section 69.021, subdivision 7, paragraph (d), as 
174.7 	additional funding to support a minimum fire state aid amount for volunteer firefighter 
174.8 	relief associations.

174.9 	EFFECTIVE DATE. This section is effective retroactively from June 1, 2013.

174.10 	Sec. 12. Minnesota Statutes 2013 Supplement, section 477A.12, subdivision 1, is 
174.11 	amended to read:
174.12 		Subdivision 1.Types of land; payments.  The following amounts are annually 
174.13 	appropriated to the commissioner of natural resources from the general fund for transfer 
174.14 	to the commissioner of revenue. The commissioner of revenue shall pay the transferred 
174.15 	funds to counties as required by sections 477A.11 to 477A.14. The amounts, based on the 
174.16 	acreage as of July 1 of each year prior to the payment year, are:
174.17 	(1) $5.133 multiplied by the total number of acres of acquired natural resources land 
174.18 	or, at the county's option three-fourths of one percent of the appraised value of all acquired 
174.19 	natural resources land in the county, whichever is greater;
174.20 	(2) $5.133, multiplied by the total number of acres of transportation wetland or, at 
174.21 	the county's option, three-fourths of one percent of the appraised value of all transportation 
174.22 	wetland in the county, whichever is greater;
174.23 	(3) $5.133, multiplied by the total number of acres of wildlife management land, or, 
174.24 	at the county's option, three-fourths of one percent of the appraised value of all wildlife 
174.25 	management land in the county, whichever is greater;
174.26 	(4) 50 percent of the dollar amount as determined under clause (1), multiplied by 
174.27 	the number of acres of military refuge land in the county;
174.28 	(5) $1.50, multiplied by the number of acres of county-administered other natural 
174.29 	resources land in the county;
174.30 	(6) $5.133, multiplied by the total number of acres of land utilization project land 
174.31 	in the county;
174.32 	(7) $1.50, multiplied by the number of acres of commissioner-administered other 
174.33 	natural resources land in the county; and
174.34 	(8) without regard to acreage, $300,000 for local assessments under section 84A.55, 
174.35 	subdivision 9.

175.1 	EFFECTIVE DATE. This section is effective July 1, 2014.

175.2 	Sec. 13. Minnesota Statutes 2013 Supplement, section 477A.14, subdivision 1, is 
175.3 	amended to read:
175.4 		Subdivision 1.General distribution. Except as provided in subdivisions 2 and 3, 
175.5 	40 percent of the total payment to the county shall be deposited in the county general 
175.6 	revenue fund to be used to provide property tax levy reduction. The remainder shall be 
175.7 	distributed by the county in the following priority:
175.8 	(a) (1) 64.2 cents, for each acre of county-administered other natural resources land 
175.9 	shall be deposited in a resource development fund to be created within the county treasury 
175.10 	for use in resource development, forest management, game and fish habitat improvement, 
175.11 	and recreational development and maintenance of county-administered other natural 
175.12 	resources land. Any county receiving less than $5,000 annually for the resource 
175.13 	development fund may elect to deposit that amount in the county general revenue fund;
175.14 	(b) from the funds remaining, (2) within 30 days of receipt of the payment to 
175.15 	the county, the county treasurer shall pay each organized township ten percent of the 
175.16 	amount received a township with land that qualifies for payment under section 477A.12, 
175.17 	subdivision 1, clauses (1), (2), and (5) to (7), ten percent of the payment the county 
175.18 	received for such land within that township. Payments for natural resources lands not 
175.19 	located in an organized township shall be deposited in the county general revenue fund. 
175.20 	Payments to counties and townships pursuant to this paragraph shall be used to provide 
175.21 	property tax levy reduction, except that of the payments for natural resources lands not 
175.22 	located in an organized township, the county may allocate the amount determined to be 
175.23 	necessary for maintenance of roads in unorganized townships. Provided that, if the total 
175.24 	payment to the county pursuant to section 477A.12 is not sufficient to fully fund the 
175.25 	distribution provided for in this clause, the amount available shall be distributed to each 
175.26 	township and the county general revenue fund on a pro rata basis; and
175.27 	(c) (3) any remaining funds shall be deposited in the county general revenue fund. 
175.28 	Provided that, if the distribution to the county general revenue fund exceeds $35,000, the 
175.29 	excess shall be used to provide property tax levy reduction.

175.30 	EFFECTIVE DATE. This section is effective July 1, 2014.

175.31 	Sec. 14. REVISOR'S INSTRUCTION.
 175.32 	The revisor of statutes shall change the terms "class rate" or "class rates" to 
175.33 	"classification rate" or "classification rates" or similar terms wherever they appear in 
175.34 	Minnesota Statutes when the terms are being used to refer to the calculation of net tax 
176.1 	capacity in the property tax system. The revisor can make changes to sentence structure 
176.2 	to preserve the meaning of the text. The revisor shall make other changes in section and 
176.3 	subdivision headnotes and in other terminology as necessary as a result of the enactment 
176.4 	of this section. The Department of Revenue shall assist in making these corrections.

176.5 	Sec. 15.  REPEALER.
 176.6 	Minnesota Statutes 2012, sections 273.13, subdivision 21a; 290C.02, subdivisions 5 
176.7 	and 9; and 290C.06, are repealed.

176.8 	EFFECTIVE DATE. This section is effective the day following final enactment, 
176.9 	except that section 273.13, subdivision 21a, is repealed effective beginning with 
176.10 	assessment year 2014.

176.11 	ARTICLE 10
176.12 	DEPARTMENT OF REVENUE - TECHNICAL AND POLICY INCOME AND 
176.13 	FRANCHISE, SALES AND USE, AND MISCELLANEOUS TAX PROVISIONS

176.14 	Section 1. Minnesota Statutes 2012, section 270C.34, subdivision 2, is amended to read:
176.15 		Subd. 2.Procedure. (a) A request for abatement of penalty under subdivision 1 or 
176.16 	section 289A.60, subdivision 4, or a request for abatement of interest or additional tax 
176.17 	charge, must be filed with the commissioner within 60 days of the date the notice was 
176.18 	mailed to the taxpayer's last known address, stating that a penalty has been imposed.
176.19 	(b) If the commissioner issues an order denying a request for abatement of penalty, 
176.20 	interest, or additional tax charge, the taxpayer may file an administrative appeal as 
176.21 	provided in section 270C.35 or appeal to Tax Court as provided in section 271.06.
176.22 	(c) If the commissioner does not issue an order on the abatement request within 
176.23 	60 days from the date the request is received, the taxpayer may appeal to Tax Court as 
176.24 	provided in section 271.06.

176.25 	EFFECTIVE DATE. This section is effective the day following final enactment.

176.26 	Sec. 2. Minnesota Statutes 2012, section 270C.56, subdivision 3, is amended to read:
176.27 		Subd. 3.Procedure for assessment; claims for refunds. (a) The commissioner 
176.28 	may assess liability for the taxes described in subdivision 1 against a person liable 
176.29 	under this section. The assessment may be based upon information available to the 
176.30 	commissioner. It must be made within the prescribed period of limitations for assessing 
176.31 	the underlying tax, or within one year after the date of an order assessing underlying 
176.32 	tax, or within one year after the date of a final administrative or judicial determination, 
177.1 	whichever period expires later. An order assessing personal liability under this section is 
177.2 	reviewable under section 270C.35 and is appealable to Tax Court.
177.3 	(b) If the time for appealing the order has expired and a payment is made by or 
177.4 	collected from the person assessed on the order in excess of the amount lawfully due 
177.5 	from that person of any portion of the liability shown on the order, a claim for refund 
177.6 	may be made by that person within 120 days after any payment of the liability if the 
177.7 	payment is within 3-1/2 years after the date the order was issued. Claims for refund under 
177.8 	this paragraph are limited to the amount paid during the 120-day period. Any amounts 
177.9 	collected under paragraph (c) after a claim for refund is filed in order to satisfy the unpaid 
177.10 	balance of the assessment that is the subject of the claim shall be returned if the claim is 
177.11 	allowed. There is no claim for refund available under this paragraph if the assessment has 
177.12 	previously been the subject of an administrative or Tax Court appeal, or a denied claim 
177.13 	for refund. The taxpayer may contest denial of the refund as provided in the procedures 
177.14 	governing claims for refunds under section 289A.50, subdivision 7.
177.15 	(c) If a person has been assessed under this section for an amount for a given period 
177.16 	and the time for appeal has expired, regardless of whether an action contesting denial of a 
177.17 	claim for refund has been filed under paragraph (b), or there has been a final determination 
177.18 	that the person is liable, collection action is not stayed pursuant to section 270C.33, 
177.19 	subdivision 5, for that assessment or for subsequent assessments of additional amounts for 
177.20 	the same person for the same period and tax type.

177.21 	EFFECTIVE DATE. This section is effective the day following final enactment.

177.22 	Sec. 3. Minnesota Statutes 2012, section 289A.18, subdivision 2, is amended to read:
177.23 		Subd. 2.Withholding returns, entertainer withholding returns, returns for 
177.24 	withholding from payments to out-of-state contractors, and withholding returns 
177.25 	from partnerships and S corporations. (a) Withholding returns for the first, second,
177.26 	and third quarters are due on or before the last day of the month following the close of 
177.27 	the quarterly period. However, if the return shows timely deposits in full payment of 
177.28 	the taxes due for that period, the returns for the first, second, and third quarters may be 
177.29 	filed on or before the tenth day of the second calendar month following the period. The 
177.30 	return for the fourth quarter must be filed on or before the 28th day of the second calendar 
177.31 	month following the period. An employer, in preparing a quarterly return, may take credit 
177.32 	for deposits previously made for that quarter. Entertainer withholding tax returns are 
177.33 	due within 30 days after each performance. Returns for withholding from payments to 
177.34 	out-of-state contractors are due within 30 days after the payment to the contractor. Returns 
177.35 	for withholding by partnerships are due on or before the due date specified for filing 
178.1 	partnership returns. Returns for withholding by S corporations are due on or before the 
178.2 	due date specified for filing corporate franchise tax returns.
178.3 	(b) A seasonal employer who provides notice in the form and manner prescribed 
178.4 	by the commissioner before the end of the calendar quarter is not required to file a 
178.5 	withholding tax return for periods of anticipated inactivity unless the employer pays wages 
178.6 	during the period from which tax is withheld. For purposes of this paragraph, a seasonal 
178.7 	employer is an employer that regularly, in the same one or more quarterly periods of each 
178.8 	calendar year, pays no wages to employees.

178.9 	EFFECTIVE DATE. (a) The amendments in paragraph (a) are effective for returns 
178.10 	due after January 1, 2016.
178.11 	(b) The amendment adding paragraph (b) is effective for wages paid after December 
178.12 	31, 2015.

178.13 	Sec. 4. Minnesota Statutes 2013 Supplement, section 290.191, subdivision 5, is 
178.14 	amended to read:
178.15 		Subd. 5.Determination of sales factor. For purposes of this section, the following 
178.16 	rules apply in determining the sales factor.
178.17 	(a) The sales factor includes all sales, gross earnings, or receipts received in the 
178.18 	ordinary course of the business, except that the following types of income are not included 
178.19 	in the sales factor:
178.20 	(1) interest;
178.21 	(2) dividends;
178.22 	(3) sales of capital assets as defined in section 1221 of the Internal Revenue Code;
178.23 	(4) sales of property used in the trade or business, except sales of leased property of 
178.24 	a type which is regularly sold as well as leased; and
178.25 	(5) sales of debt instruments as defined in section 1275(a)(1) of the Internal Revenue 
178.26 	Code or sales of stock.
178.27 	(b) Sales of tangible personal property are made within this state if the property is 
178.28 	received by a purchaser at a point within this state, and the taxpayer is taxable in this state,
178.29 	 regardless of the f.o.b. point, other conditions of the sale, or the ultimate destination 
178.30 	of the property.
178.31 	(c) Tangible personal property delivered to a common or contract carrier or foreign 
178.32 	vessel for delivery to a purchaser in another state or nation is a sale in that state or nation, 
178.33 	regardless of f.o.b. point or other conditions of the sale.
178.34 	(d) Notwithstanding paragraphs (b) and (c), when intoxicating liquor, wine, 
178.35 	fermented malt beverages, cigarettes, or tobacco products are sold to a purchaser who is 
179.1 	licensed by a state or political subdivision to resell this property only within the state of 
179.2 	ultimate destination, the sale is made in that state.
179.3 	(e) Sales made by or through a corporation that is qualified as a domestic 
179.4 	international sales corporation under section 992 of the Internal Revenue Code are not 
179.5 	considered to have been made within this state.
179.6 	(f) Sales, rents, royalties, and other income in connection with real property is 
179.7 	attributed to the state in which the property is located.
179.8 	(g) Receipts from the lease or rental of tangible personal property, including finance 
179.9 	leases and true leases, must be attributed to this state if the property is located in this 
179.10 	state and to other states if the property is not located in this state. Receipts from the 
179.11 	lease or rental of moving property including, but not limited to, motor vehicles, rolling 
179.12 	stock, aircraft, vessels, or mobile equipment are included in the numerator of the receipts 
179.13 	factor to the extent that the property is used in this state. The extent of the use of moving 
179.14 	property is determined as follows:
179.15 	(1) A motor vehicle is used wholly in the state in which it is registered.
179.16 	(2) The extent that rolling stock is used in this state is determined by multiplying 
179.17 	the receipts from the lease or rental of the rolling stock by a fraction, the numerator of 
179.18 	which is the miles traveled within this state by the leased or rented rolling stock and the 
179.19 	denominator of which is the total miles traveled by the leased or rented rolling stock.
179.20 	(3) The extent that an aircraft is used in this state is determined by multiplying the 
179.21 	receipts from the lease or rental of the aircraft by a fraction, the numerator of which is 
179.22 	the number of landings of the aircraft in this state and the denominator of which is the 
179.23 	total number of landings of the aircraft.
179.24 	(4) The extent that a vessel, mobile equipment, or other mobile property is used in 
179.25 	the state is determined by multiplying the receipts from the lease or rental of the property 
179.26 	by a fraction, the numerator of which is the number of days during the taxable year the 
179.27 	property was in this state and the denominator of which is the total days in the taxable year.
179.28 	(h) Royalties and other income received for the use of or for the privilege of using 
179.29 	intangible property, including patents, know-how, formulas, designs, processes, patterns, 
179.30 	copyrights, trade names, service names, franchises, licenses, contracts, customer lists, or 
179.31 	similar items, must be attributed to the state in which the property is used by the purchaser. 
179.32 	If the property is used in more than one state, the royalties or other income must be 
179.33 	apportioned to this state pro rata according to the portion of use in this state. If the portion 
179.34 	of use in this state cannot be determined, the royalties or other income must be excluded 
179.35 	from both the numerator and the denominator. Intangible property is used in this state if 
180.1 	the purchaser uses the intangible property or the rights therein in the regular course of its 
180.2 	business operations in this state, regardless of the location of the purchaser's customers.
180.3 	(i) Sales of intangible property are made within the state in which the property is 
180.4 	used by the purchaser. If the property is used in more than one state, the sales must be 
180.5 	apportioned to this state pro rata according to the portion of use in this state. If the 
180.6 	portion of use in this state cannot be determined, the sale must be excluded from both the 
180.7 	numerator and the denominator of the sales factor. Intangible property is used in this 
180.8 	state if the purchaser used the intangible property in the regular course of its business 
180.9 	operations in this state.
180.10 	(j) Receipts from the performance of services must be attributed to the state where 
180.11 	the services are received. For the purposes of this section, receipts from the performance 
180.12 	of services provided to a corporation, partnership, or trust may only be attributed to a state 
180.13 	where it has a fixed place of doing business. If the state where the services are received is 
180.14 	not readily determinable or is a state where the corporation, partnership, or trust receiving 
180.15 	the service does not have a fixed place of doing business, the services shall be deemed 
180.16 	to be received at the location of the office of the customer from which the services were 
180.17 	ordered in the regular course of the customer's trade or business. If the ordering office 
180.18 	cannot be determined, the services shall be deemed to be received at the office of the 
180.19 	customer to which the services are billed.
180.20 	(k) For the purposes of this subdivision and subdivision 6, paragraph (l), receipts 
180.21 	from management, distribution, or administrative services performed by a corporation 
180.22 	or trust for a fund of a corporation or trust regulated under United States Code, title 15, 
180.23 	sections 80a-1 through 80a-64, must be attributed to the state where the shareholder of 
180.24 	the fund resides. Under this paragraph, receipts for services attributed to shareholders are 
180.25 	determined on the basis of the ratio of: (1) the average of the outstanding shares in the 
180.26 	fund owned by shareholders residing within Minnesota at the beginning and end of each 
180.27 	year; and (2) the average of the total number of outstanding shares in the fund at the 
180.28 	beginning and end of each year. Residence of the shareholder, in the case of an individual, 
180.29 	is determined by the mailing address furnished by the shareholder to the fund. Residence 
180.30 	of the shareholder, when the shares are held by an insurance company as a depositor for 
180.31 	the insurance company policyholders, is the mailing address of the policyholders. In 
180.32 	the case of an insurance company holding the shares as a depositor for the insurance 
180.33 	company policyholders, if the mailing address of the policyholders cannot be determined 
180.34 	by the taxpayer, the receipts must be excluded from both the numerator and denominator. 
180.35 	Residence of other shareholders is the mailing address of the shareholder.

180.36 	EFFECTIVE DATE. This section is effective the day following final enactment.

181.1 	Sec. 5. Minnesota Statutes 2012, section 296A.01, subdivision 16, is amended to read:
181.2 		Subd. 16.Dyed fuel. "Dyed fuel" means diesel motor fuel to which indelible dye 
181.3 	has been added, either before or upon withdrawal at a terminal or refinery rack, and which 
181.4 	may be sold for exempt purposes. The dye may be either dye required to be added per the 
181.5 	EPA or dye that meets other specifications required by the Internal Revenue Service or 
181.6 	the commissioner.

181.7 	EFFECTIVE DATE. This section is effective the day following final enactment.

181.8 	Sec. 6. Minnesota Statutes 2013 Supplement, section 403.162, subdivision 5, is 
181.9 	amended to read:
181.10 		Subd. 5.Fees deposited. (a) The commissioner of revenue shall, based on 
181.11 	the relative proportion of the prepaid wireless E911 fee and the prepaid wireless 
181.12 	telecommunications access Minnesota fee imposed per retail transaction, divide the fees 
181.13 	collected in corresponding proportions. Within 30 days of receipt of the collected fees, 
181.14 	the commissioner shall:
181.15 	(1) deposit the proportion of the collected fees attributable to the prepaid wireless 
181.16 	E911 fee in the 911 emergency telecommunications service account in the special revenue 
181.17 	fund; and
181.18 	(2) deposit the proportion of collected fees attributable to the prepaid wireless 
181.19 	telecommunications access Minnesota fee in the telecommunications access fund 
181.20 	established in section 237.52, subdivision 1.
181.21 	(b) The department commissioner of revenue may deduct and retain deposit in a 
181.22 	special revenue account an amount, not to exceed two percent of collected fees,. Money 
181.23 	in the account is annually appropriated to the commissioner of revenue to reimburse its 
181.24 	direct costs of administering the collection and remittance of prepaid wireless E911 fees 
181.25 	and prepaid wireless telecommunications access Minnesota fees.

181.26 	EFFECTIVE DATE. This section is effective retroactively from January 1, 2014.

181.27 	Sec. 7. Laws 2013, chapter 143, article 8, section 3, the effective date, is amended to 
181.28 	read:

181.29 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
181.30 	June 30, 2013, except for paragraph (p), which is effective the day following final 
181.31 	enactment.

182.1 	EFFECTIVE DATE. This section is effective retroactively from the day following 
182.2 	final enactment of Laws 2013, chapter 143, article 8, section 3.

182.3 	Sec. 8.  REPEALER.
 182.4 	Minnesota Rules, parts 8130.8900, subpart 3; and 8130.9500, subparts 1, 1a, 2, 
182.5 	3, 4, and 5, are repealed.

182.6 	EFFECTIVE DATE. This section is effective the day following final enactment.