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

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

2.47 	Section 1. [69.022] VOLUNTEER RETENTION STIPEND AID PILOT.
2.48 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms 
2.49 	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 	(h) "State fire marshal" has the meaning given in section 299F.01.
3.18 		Subd. 2.Aid payment and calculation. The commissioner of revenue shall pay aid 
3.19 	to qualified entities located in the pilot area to provide funds for the qualified entities to 
3.20 	pay annual volunteer retention stipends to qualified volunteers who provide services to 
3.21 	the qualified entities. A qualified entity is located in the pilot area if it is a municipality 
3.22 	located in whole or in part in the pilot area, or if it is an emergency medical services 
3.23 	provider or independent nonprofit firefighting corporation with its main office located in 
3.24 	the pilot area. The amount of the aid equals $500 multiplied by the number of qualified 
3.25 	volunteers. For purposes of calculating this aid, each individual providing volunteer 
3.26 	service, regardless of the different types of service provided, is one qualified volunteer. 
3.27 	The commissioner shall pay the aid to qualified entities by July 31 of the calendar year 
3.28 	following the year in which the qualified volunteer provided service.
3.29 		Subd. 3.Application. Each year each qualified entity in the pilot area may apply to 
3.30 	the commissioner for aid under this section. The application must be made at the time and 
3.31 	in the form prescribed by the commissioner and must provide sufficient information to 
3.32 	permit the commissioner to determine the applicant's entitlement to aid under this section.
3.33 		Subd. 4.Payment of stipends. A qualified entity receiving state aid under this 
3.34 	section must pay the aid as retention stipends to qualified volunteers no later than 
3.35 	September 15 of the year in which the aid was received.
4.1 		Subd. 5.Report. No later than January 15, 2018, the state fire marshal, in 
4.2 	consultation with the commissioner of revenue, must report to the chairs and ranking 
4.3 	minority members of the legislative committees having jurisdiction over public safety and 
4.4 	taxes in the senate and the house of representatives, in compliance with sections 3.195 and 
4.5 	3.197, on aid paid under this section. The report must include:
4.6 	(1) for each county in the pilot area, a listing of the qualified entities that received 
4.7 	aid in each of the three years of the pilot;
4.8 	(2) the amount of aid paid to each qualified entity that received aid in each of the 
4.9 	three years of the pilot; and
4.10 	(3) for each qualified entity that received aid, the number of qualified volunteers 
4.11 	who were paid stipends in each of the three years of the pilot.
4.12 	The report must also provide information on the number of qualified volunteers 
4.13 	providing service to qualified entities in each of the counties adjacent to the pilot area 
4.14 	in each of the three years of the pilot, and must summarize changes in the number of 
4.15 	qualified volunteers during the three years of the pilot both within the pilot area and in the 
4.16 	adjacent counties. For purposes of this subdivision "counties adjacent to the pilot area" 
4.17 	means the counties of Brown, Cottonwood, Dodge, Jackson, Le Sueur, Mower, Nicollet, 
4.18 	and Rice. Qualified entities in counties adjacent to the pilot area must provide information 
4.19 	to the commissioner necessary to the report in this subdivision in the form and manner 
4.20 	required by the commissioner. The commissioner must share with the state fire marshal 
4.21 	the information necessary to the report.
4.22 		Subd. 6.Appropriation.  An amount sufficient to pay the state aid under this 
4.23 	section in fiscal years 2016, 2017, and 2018 is appropriated from the general fund to the 
4.24 	commissioner of revenue. This appropriation does not become part of the agency's base 
4.25 	budget and expires after fiscal year 2018.

4.26 	EFFECTIVE DATE. This section is effective the day following final enactment 
4.27 	and applies for volunteer service provided beginning in calendar years 2014, 2015, and 
4.28 	2016, and for aid payable in calendar years 2015, 2016, and 2017.

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

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

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

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

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

6.19 	Sec. 5. Minnesota Statutes 2013 Supplement, section 477A.013, subdivision 8, is 
6.20 	amended to read:
6.21 		Subd. 8.City formula aid. (a) For aids payable in 2014 only, the formula aid for a 
6.22 	city is equal to the sum of (1) its 2013 certified aid, and (2) the product of (i) the difference 
6.23 	between its unmet need and its 2013 certified aid, and (ii) the aid gap percentage.
6.24 	(b) For aids payable in 2015 and thereafter, the formula aid for a city is equal to the 
6.25 	sum of (1) its formula aid in the previous year and (2) the product of (i) the difference 
6.26 	between its unmet need and its certified formula aid in the previous year under subdivision 
6.27 	9, and (ii) the aid gap percentage.
6.28 	(c) For aids payable in 2015 and thereafter, if a city's certified aid from the previous 
6.29 	year is greater than the sum of its unmet need plus its aid adjustment under subdivision 13, 
6.30 	its formula aid is adjusted to equal its unmet need.
6.31 	(d) No city may have a formula aid amount less than zero. The aid gap percentage 
6.32 	must be the same for all cities subject to paragraph (b).
6.33 	(e) The applicable aid gap percentage must be calculated by the Department of 
6.34 	Revenue so that the total of the aid under subdivision 9 equals the total amount available 
6.35 	for aid under section 477A.03. Data used in calculating aids to cities under sections 
7.1 	477A.011 to 477A.013 shall be the most recently available data as of January 1 in the 
7.2 	year in which the aid is calculated.

7.3 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 
7.4 	2015 and thereafter.

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

7.13 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 
7.14 	2015 and thereafter.

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

7.25 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 
7.26 	2015 and thereafter.

7.27 	Sec. 8. [477A.18] PRODUCTION PROPERTY TRANSITION AID.
7.28 		Subdivision 1.Definitions. (a) When used in this section, the following terms have 
7.29 	the meanings indicated in this subdivision.
7.30 	(b) "Local unit" means a home rule charter or statutory city, or a town.
7.31 	(c) "Net tax capacity differential" means the positive difference, if any, by which the 
7.32 	local unit's net tax capacity was reduced from assessment year 2014 to assessment year 
8.1 	2015 due to the change in the definition of real property in section 272.03, subdivision 1, 
8.2 	enacted by article 2, section 7, of this act. For purposes of determining the net tax capacity 
8.3 	differential, any property in a job opportunity building zone under section 469.314 may 
8.4 	not be included when calculating a local unit's net tax capacity.
8.5 		Subd. 2.Aid eligibility; payment. (a) If the net tax capacity differential of the local 
8.6 	unit exceeds five percent of its 2015 net tax capacity, the local unit is eligible for transition 
8.7 	aid computed under paragraphs (b) to (f).
8.8 	(b) For aids payable in 2016, transition aid under this section for an eligible local 
8.9 	unit equals (1) the net tax capacity differential, times (2) the jurisdiction's tax rate for 
8.10 	taxes payable in 2015.
8.11 	(c) For aids payable in 2017, transition aid under this section for an eligible local 
8.12 	unit equals 80 percent of (1) the net tax capacity differential, times (2) the jurisdiction's 
8.13 	tax rate for taxes payable in 2016.
8.14 	(d) For aids payable in 2018, transition aid under this section for an eligible local 
8.15 	unit equals 60 percent of (1) the net tax capacity differential, times (2) the jurisdiction's 
8.16 	tax rate for taxes payable in 2017.
8.17 	(e) For aids payable in 2019, transition aid under this section for an eligible local 
8.18 	unit equals 40 percent of (1) the net tax capacity differential, times (2) the jurisdiction's 
8.19 	tax rate for taxes payable in 2018.
8.20 	(f) For aids payable in 2020, transition aid under this section for an eligible local 
8.21 	unit equals 20 percent of (1) the net tax capacity differential, times (2) the jurisdiction's 
8.22 	tax rate for taxes payable in 2019.
8.23 	(g) No aids shall be payable under this section in 2021 and thereafter.
8.24 	(h) The commissioner of revenue shall compute the amount of transition aid payable 
8.25 	to each local unit under this section. On or before August 1 of each year, the commissioner 
8.26 	shall certify the amount of transition aid computed for aids payable in the following year 
8.27 	for each recipient local unit. The commissioner shall pay transition aid to local units 
8.28 	annually at the times provided in section 477A.015.
8.29 	(i) The commissioner of revenue may require counties to provide any data that the 
8.30 	commissioner deems necessary to administer this section.
8.31 		Subd. 3.Appropriation. An amount sufficient to pay transition aid under this 
8.32 	section is annually appropriated to the commissioner of revenue from the general fund.

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

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

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

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

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

9.32 	Sec. 11. HOMESTEAD CREDIT REFUND AND RENTER PROPERTY TAX 
9.33 	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 five 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 	Sec. 14.  REPEALER.
 11.19 	Minnesota Statutes 2013 Supplement, section 477A.085, is repealed.

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

11.21 	ARTICLE 2
11.22 	PROPERTY TAXES

11.23 	Section 1. [116J.882] 2015 PROPERTY TAX RELIEF GRANTS FOR FEMALE 
11.24 	OWNED AND OPERATED SMALL BUSINESSES.
11.25 		Subdivision 1.Qualified female owned business. For purposes of this section a 
11.26 	"qualified female owned business" means a business entity:
11.27 	(1) that is at least 51 percent female owned, or in the case of a publicly traded 
11.28 	business, at least 51 percent of the stock is female owned;
11.29 	(2) whose management and daily operations are controlled by females;
11.30 	(3) that is organized for profit;
11.31 	(4) that employs fewer than 25 employees; and
11.32 	(5) that pays its employees annual wages of at least 175 percent of the federal 
11.33 	poverty guideline adjusted for a family size of four.
12.1 		Subd. 2.Application. To qualify for a grant under this section, a qualified female 
12.2 	owned business must apply to the commissioner with any information and in the form 
12.3 	specified by the commissioner, necessary to determine that the applicant qualifies 
12.4 	under subdivision 1. The application must also include information required by the 
12.5 	commissioner regarding the amount of property taxes the business owes in 2015 either 
12.6 	directly to the county, or indirectly as part of their lease agreement, in order for the 
12.7 	commissioner to determine the amount of the allowed grant. Applications must be in 
12.8 	no later than December 31, 2015.
12.9 		Subd. 3.Awarding of grants. The commissioner must act on an application within 
12.10 	90 days of its filing. Grants shall be awarded in the order in which the applications are 
12.11 	received, to each qualified female owned business in an amount equal to the amount of its 
12.12 	property taxes that are payable in 2015, until either all qualified applicants have received a 
12.13 	grant or the total amount available for the grants under subdivision 4 has been committed, 
12.14 	whichever occurs first. No grant under this section may be paid until after July 1, 2015.
12.15 		Subd. 4.Available grant amounts. $3,700,000 is appropriated to the commissioner 
12.16 	from the general fund in fiscal year 2016 to make grants under this section.

12.17 	EFFECTIVE DATE. This section is effective the day after final enactment.

12.18 	Sec. 2. Minnesota Statutes 2012, section 272.02, subdivision 10, is amended to read:
12.19 		Subd. 10.Personal property used for pollution control. Personal property used 
12.20 	primarily for the abatement and control of air, water, or land pollution is exempt to the 
12.21 	extent that it is so used, and real property is exempt if it is used primarily for abatement 
12.22 	and control of air, water, or land pollution as part of an agricultural operation, as a part 
12.23 	of a centralized treatment and recovery facility operating under a permit issued by the 
12.24 	Minnesota Pollution Control Agency pursuant to chapters 115 and 116 and Minnesota 
12.25 	Rules, parts 7001.0500 to 7001.0730, and 7045.0020 to 7045.1260, as a wastewater 
12.26 	treatment facility and for the treatment, recovery, and stabilization of metals, oils, 
12.27 	chemicals, water, sludges, or inorganic materials from hazardous industrial wastes, or as 
12.28 	part of an electric generation system. For purposes of this subdivision, personal property 
12.29 	includes ponderous machinery and equipment used in a business or production activity 
12.30 	that at common law is considered real property.
12.31 	Any taxpayer requesting exemption of all or a portion of any real property or any 
12.32 	equipment or device, or part thereof, operated primarily for the control or abatement of air, 
12.33 	water, or land pollution shall file an application with the commissioner of revenue. If the 
12.34 	property is an electric power generation facility located in a city, then the commissioner 
12.35 	shall notify the county assessor and city finance officer of the jurisdictions that host the 
13.1 	facility that the application has been received. The Minnesota Pollution Control Agency 
13.2 	shall upon request of the commissioner furnish information and advice to the commissioner.
13.3 	The information and advice furnished by the Minnesota Pollution Control Agency 
13.4 	must include statements as to whether the equipment, device, or real property meets 
13.5 	a standard, rule, criteria, guideline, policy, or order of the Minnesota Pollution Control 
13.6 	Agency, and whether the equipment, device, or real property is installed or operated 
13.7 	in accordance with it. On determining that property qualifies for exemption, the 
13.8 	commissioner shall issue an order exempting the property from taxation. If the property is 
13.9 	an electric power generation facility located in a city, then the commissioner shall provide 
13.10 	notification of the order to the county assessor and city finance officer of the jurisdictions 
13.11 	that host the facility. The equipment, device, or real property shall continue to be exempt 
13.12 	from taxation as long as the order issued by the commissioner remains in effect.

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

13.14 	Sec. 3. Minnesota Statutes 2012, section 272.02, subdivision 24, is amended to read:
13.15 		Subd. 24.Electric power photovoltaic devices Solar energy-generating systems.
 13.16 	Photovoltaic devices Personal property consisting of solar energy-generating systems, as 
13.17 	defined in section 216C.06, subdivision 16 272.0295, installed after January 1, 1992, and 
13.18 	used to produce or store electric power are is exempt. The value of the real property on 
13.19 	which the solar energy-generating system is located shall be valued in the same manner as 
13.20 	similar real property that has not been improved with a solar energy-generating system. 
13.21 	The real property shall be classified based on the most probable use of the property if it 
13.22 	was not improved with a solar energy-generating system.

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

13.24 	Sec. 4. Minnesota Statutes 2012, section 272.0211, subdivision 1, is amended to read:
13.25 		Subdivision 1.Efficiency determination and certification. An owner or operator 
13.26 	of a new or existing electric power generation facility, excluding wind energy conversion 
13.27 	systems, may apply to the commissioner of revenue for a market value exclusion on the 
13.28 	property as provided for in this section. This exclusion shall apply only to the market 
13.29 	value of the equipment of the facility, and shall not apply to the structures and the land 
13.30 	upon which the facility is located. The commissioner of revenue shall prescribe the forms 
13.31 	and procedures for this application. Upon receiving the application, the commissioner of 
13.32 	revenue shall: (1) request the commissioner of commerce to make a determination of the 
13.33 	efficiency of the applicant's electric power generation facility; and (2), if the facility is 
14.1 	in a city, notify the county assessor and city finance officer of the jurisdictions that host 
14.2 	the facility that an application for an exclusion is being processed. The commissioner 
14.3 	of commerce shall calculate efficiency as the ratio of useful energy outputs to energy 
14.4 	inputs, expressed as a percentage, based on the performance of the facility's equipment 
14.5 	during normal full load operation. The commissioner must include in this formula the 
14.6 	energy used in any on-site preparation of materials necessary to convert the materials 
14.7 	into the fuel used to generate electricity, such as a process to gasify petroleum coke. 
14.8 	The commissioner shall use the Higher Heating Value (HHV) for all substances in the 
14.9 	commissioner's efficiency calculations, except for wood for fuel in a biomass-eligible 
14.10 	project under section 216B.2424; for these instances, the commissioner shall adjust the 
14.11 	heating value to allow for energy consumed for evaporation of the moisture in the wood. 
14.12 	The applicant shall provide the commissioner of commerce with whatever information the 
14.13 	commissioner deems necessary to make the determination. Within 30 days of the receipt 
14.14 	of the necessary information, the commissioner of commerce shall certify the findings of 
14.15 	the efficiency determination to the commissioner of revenue and to the applicant. The 
14.16 	commissioner of commerce shall determine the efficiency of the facility and certify the 
14.17 	findings of that determination to the commissioner of revenue every two years thereafter 
14.18 	from the date of the original certification.

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

14.20 	Sec. 5. Minnesota Statutes 2012, section 272.0211, subdivision 2, is amended to read:
14.21 		Subd. 2.Sliding scale exclusion. Based upon the efficiency determination provided 
14.22 	by the commissioner of commerce as described in subdivision 1, the commissioner of 
14.23 	revenue shall subtract eight percent of the taxable market value of the qualifying property 
14.24 	for each percentage point that the efficiency of the specific facility, as determined by the 
14.25 	commissioner of commerce, is above 40 percent. The reduction in taxable market value 
14.26 	shall be reflected in the taxable market value of the facility beginning with the assessment 
14.27 	year immediately following the determination. For a facility that is assessed by the county 
14.28 	in which the facility is located, The commissioner of revenue shall certify to the assessor 
14.29 	of that county and, if located in a city, the finance officer of that city, the percentage of the 
14.30 	taxable market value of the facility to be excluded.

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

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

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

16.26 	Sec. 7. Minnesota Statutes 2012, section 272.03, subdivision 1, is amended to read:
16.27 		Subdivision 1.Real property. (a) For the purposes of taxation, "real property" 
16.28 	includes the land itself, rails, ties, and other track materials annexed to the land, and all 
16.29 	buildings, structures, and improvements or other fixtures on it, bridges of bridge companies, 
16.30 	and all rights and privileges belonging or appertaining to the land, and all mines, iron ore 
16.31 	and taconite minerals not otherwise exempt, quarries, fossils, and trees on or under it.
16.32 	(b) A building or structure shall include the building or structure itself, together with 
16.33 	all improvements or fixtures annexed to the building or structure, which are integrated 
16.34 	with and of permanent benefit to the building or structure, regardless of the present use 
17.1 	of the building, and which cannot be removed without substantial damage to itself or to 
17.2 	the building or structure.
17.3 	(c)(i) Real property does not include tools, implements, machinery, and equipment 
17.4 	attached to or installed in real property for use in the business or production activity 
17.5 	conducted thereon, regardless of size, weight or method of attachment, and mine shafts, 
17.6 	tunnels, and other underground openings used to extract ores and minerals taxed under 
17.7 	chapter 298 together with steel, concrete, and other materials used to support such openings.
17.8 	(ii) The exclusion provided in clause (i) shall not apply to machinery and equipment 
17.9 	includable as real estate by paragraphs (a) and (b) even though such machinery and 
17.10 	equipment is used in the business or production activity conducted on the real property if 
17.11 	and to the extent such business or production activity consists of furnishing services or 
17.12 	products to other buildings or structures which are subject to taxation under this chapter.
17.13 	(iii) The exclusion provided in clause (i) does not apply to the exterior shell of a 
17.14 	structure which constitutes walls, ceilings, roofs, or floors if the shell of the structure has 
17.15 	structural, insulation, or temperature control functions or provides protection from the 
17.16 	elements, unless the structure is primarily used in the production of biofuels, wine, beer, 
17.17 	distilled beverages, or dairy products. Such an exterior shell is included in the definition 
17.18 	of real property even if it also has special functions distinct from that of a building, or if 
17.19 	such an exterior shell is primarily used for the storage of ingredients or materials used in 
17.20 	the production of biofuels, wine, beer, distilled beverages, or dairy products, or for the 
17.21 	storage of finished biofuels, wine, beer, distilled beverages, or dairy products.
17.22 	(d) The term real property does not include tools, implements, machinery, 
17.23 	equipment, poles, lines, cables, wires, conduit, and station connections which are part of a 
17.24 	telephone communications system, regardless of attachment to or installation in real 
17.25 	property and regardless of size, weight, or method of attachment or installation.

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

17.27 	Sec. 8. Minnesota Statutes 2012, section 273.13, subdivision 34, is amended to read:
17.28 		Subd. 34.Homestead of disabled veteran or family caregiver. (a) All or a 
17.29 	portion of the market value of property owned by a veteran and serving as the veteran's 
17.30 	homestead under this section is excluded in determining the property's taxable market 
17.31 	value if the veteran has a service-connected disability of 70 percent or more as certified 
17.32 	by the United States Department of Veterans Affairs. To qualify for exclusion under this 
17.33 	subdivision, the veteran must have been honorably discharged from the United States 
17.34 	armed forces, as indicated by United States Government Form DD214 or other official 
17.35 	military discharge papers.
18.1 	(b)(1) For a disability rating of 70 percent or more, $150,000 of market value is 
18.2 	excluded, except as provided in clause (2); and
18.3 	(2) for a total (100 percent) and permanent disability, $300,000 of market value is 
18.4 	excluded.
18.5 	(c) If a disabled veteran qualifying for a valuation exclusion under paragraph (b), 
18.6 	clause (2), predeceases the veteran's spouse, and if upon the death of the veteran the spouse 
18.7 	holds the legal or beneficial title to the homestead and permanently resides there, the 
18.8 	exclusion shall carry over to the benefit of the veteran's spouse for the current taxes payable 
18.9 	year and for five eight additional taxes payable years or until such time as the spouse 
18.10 	remarries, or sells, transfers, or otherwise disposes of the property, whichever comes first. 
18.11 	Qualification under this paragraph requires an annual application under paragraph (h).
18.12 	(d) If the spouse of a member of any branch or unit of the United States armed 
18.13 	forces who dies due to a service-connected cause while serving honorably in active 
18.14 	service, as indicated on United States Government Form DD1300 or DD2064, holds the 
18.15 	legal or beneficial title to a homestead and permanently resides there, the spouse is entitled 
18.16 	to the benefit described in paragraph (b), clause (2), for five eight taxes payable years, 
18.17 	or until such time as the spouse remarries or sells, transfers, or otherwise disposes of the 
18.18 	property, whichever comes first.
18.19 	(e) If a veteran meets the disability criteria of paragraph (a) but does not own 
18.20 	property classified as homestead in the state of Minnesota, then the homestead of the 
18.21 	veteran's primary family caregiver, if any, is eligible for the exclusion that the veteran 
18.22 	would otherwise qualify for under paragraph (b).
18.23 	(f) In the case of an agricultural homestead, only the portion of the property 
18.24 	consisting of the house and garage and immediately surrounding one acre of land qualifies 
18.25 	for the valuation exclusion under this subdivision.
18.26 	(g) A property qualifying for a valuation exclusion under this subdivision is not 
18.27 	eligible for the market value exclusion under subdivision 35, or classification under 
18.28 	subdivision 22, paragraph (b).
18.29 	(h) To qualify for a valuation exclusion under this subdivision a property owner 
18.30 	must apply to the assessor by July 1 of each assessment year, except that an annual 
18.31 	reapplication is not required once a property has been accepted for a valuation exclusion 
18.32 	under paragraph (a) and qualifies for the benefit described in paragraph (b), clause (2), and 
18.33 	the property continues to qualify until there is a change in ownership. For an application 
18.34 	received after July 1 of any calendar year, the exclusion shall become effective for the 
18.35 	following assessment year.
19.1 	(i) A first-time application by a qualifying spouse for the market value exclusion under 
19.2 	paragraph (d) must be made any time within two years of the death of the service member.
19.3 	(j) For purposes of this subdivision:
19.4 	(1) "active service" has the meaning given in section 190.05;
19.5 	(2) "own" means that the person's name is present as an owner on the property deed;
19.6 	(3) "primary family caregiver" means a person who is approved by the secretary of 
19.7 	the United States Department of Veterans Affairs for assistance as the primary provider 
19.8 	of personal care services for an eligible veteran under the Program of Comprehensive 
19.9 	Assistance for Family Caregivers, codified as United States Code, title 38, section 1720G; 
19.10 	and
19.11 	(4) "veteran" has the meaning given the term in section 197.447.
19.12 	(k) The purpose of this provision of law providing a level of homestead property tax 
19.13 	relief for gravely disabled veterans, their primary family caregivers, and their surviving 
19.14 	spouses is to help ease the burdens of war for those among our state's citizens who bear 
19.15 	those burdens most heavily.

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

19.19 	Sec. 9. Minnesota Statutes 2012, section 275.025, subdivision 2, is amended to read:
19.20 		Subd. 2.Commercial-industrial tax capacity. For the purposes of this section, 
19.21 	"commercial-industrial tax capacity" means the tax capacity of all taxable property 
19.22 	classified as class 3 or class 5(1) under section 273.13, except for excluding: (1) the 
19.23 	first tier of commercial-industrial value as defined under section 273.13, subdivision 24; 
19.24 	(2) electric generation attached machinery under class 3; and (3) property described in 
19.25 	section 473.625. County commercial-industrial tax capacity amounts are not adjusted 
19.26 	for the captured net tax capacity of a tax increment financing district under section 
19.27 	469.177, subdivision 2, the net tax capacity of transmission lines deducted from a local 
19.28 	government's total net tax capacity under section 273.425, or fiscal disparities contribution 
19.29 	and distribution net tax capacities under chapter 276A or 473F.

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

19.31 	Sec. 10. Minnesota Statutes 2012, section 275.065, subdivision 1, is amended to read:
19.32 		Subdivision 1.Proposed levy. (a) Notwithstanding any law or charter to the 
19.33 	contrary, on or before September 15 30, each taxing authority, other than a school district, 
20.1 	shall adopt a proposed budget and county and each home rule charter or statutory city shall 
20.2 	certify to the county auditor the proposed or, in the case of a town, the final property tax 
20.3 	levy for taxes payable in the following year.
20.4 	(b) Notwithstanding any law or charter to the contrary, on or before September 15, 
20.5 	each town and each special taxing district shall adopt and certify to the county auditor a 
20.6 	proposed property tax levy for taxes payable in the following year. For towns, the final 
20.7 	certified levy shall also be considered the proposed levy.
20.8 	(c) On or before September 30, each school district that has not mutually agreed 
20.9 	with its home county to extend this date shall certify to the county auditor the proposed 
20.10 	property tax levy for taxes payable in the following year. Each school district that has 
20.11 	agreed with its home county to delay the certification of its proposed property tax levy 
20.12 	must certify its proposed property tax levy for the following year no later than October 
20.13 	7. The school district shall certify the proposed levy as:
20.14 	(1) a specific dollar amount by school district fund, broken down between 
20.15 	voter-approved and non-voter-approved levies and between referendum market value 
20.16 	and tax capacity levies; or
20.17 	(2) the maximum levy limitation certified by the commissioner of education 
20.18 	according to section 126C.48, subdivision 1.
20.19 	(c) (d) If the board of estimate and taxation or any similar board that establishes 
20.20 	maximum tax levies for taxing jurisdictions within a first class city certifies the maximum 
20.21 	property tax levies for funds under its jurisdiction by charter to the county auditor by 
20.22 	September 15 the date specified in paragraph (a), the city shall be deemed to have certified 
20.23 	its levies for those taxing jurisdictions.
20.24 	(d) (e) For purposes of this section, "taxing authority" includes all home rule and 
20.25 	statutory cities, towns, counties, school districts, and "special taxing district" means a
20.26 	 special taxing districts district as defined in section 275.066. Intermediate school districts 
20.27 	that levy a tax under chapter 124 or 136D, joint powers boards established under sections 
20.28 	123A.44 to 123A.446, and Common School Districts No. 323, Franconia, and No. 815, 
20.29 	Prinsburg, are also special taxing districts for purposes of this section.
20.30 	(e) (f) At the meeting at which the a taxing authority, other than a town, adopts its 
20.31 	proposed tax levy under paragraph (a) or (b) this subdivision, the taxing authority shall 
20.32 	announce the time and place of its subsequent regularly scheduled meetings at which 
20.33 	the budget and levy will be discussed and at which the public will be allowed to speak. 
20.34 	The time and place of those meetings must be included in the proceedings or summary 
20.35 	of proceedings published in the official newspaper of the taxing authority under section 
20.36 	123B.09, 375.12, or 412.191.

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

21.2 	ARTICLE 3
21.3 	SALES, USE, AND EXCISE TAXES

21.4 	Section 1. Minnesota Statutes 2013 Supplement, section 116J.8738, subdivision 2, 
21.5 	is amended to read:
21.6 		Subd. 2.Qualified business. (a) A business is a qualified business if it satisfies the 
21.7 	requirement of this paragraph and is not disqualified under the provisions of paragraph 
21.8 	(b). To qualify, the business must:
21.9 	(1) have operated its trade or business in a city or cities in greater Minnesota for at 
21.10 	least one year before applying under subdivision 3;
21.11 	(2) pay or agree to pay in the future each employee compensation, including benefits 
21.12 	not mandated by law, that on an annualized basis equal at least 120 percent of the federal 
21.13 	poverty level for a family of four;
21.14 	(3) plan and agree to expand its employment in one or more cities in greater Minnesota 
21.15 	by the minimum number of employees required under subdivision 3, paragraph (c); and
21.16 	(4) have received certification from the commissioner under subdivision 3 that 
21.17 	it is a qualified business.
21.18 	(b) A business is not a qualified business if it is either:
21.19 	(1) primarily engaged in making retail sales to purchasers who are physically present 
21.20 	at the business's location or locations in greater Minnesota; or
21.21 	(2) a public utility, as defined in section 336B.01; or
21.22 	(3) primarily engaged in lobbying; gambling; entertainment; professional sports; 
21.23 	political consulting; leisure; hospitality; or professional services provided by attorneys, 
21.24 	accountants, business consultants, physicians, or health care consultants.
21.25 	(c) The requirements in paragraph (a) that the business's operations and expansion 
21.26 	be located in a city do not apply to an agricultural processing facility.

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

21.28 	Sec. 2. Minnesota Statutes 2013 Supplement, section 116J.8738, subdivision 3, is 
21.29 	amended to read:
21.30 		Subd. 3.Certification of qualified business. (a) A business may apply to the 
21.31 	commissioner for certification as a qualified business under this section. The commissioner 
21.32 	shall specify the form of the application, the manner and times for applying, and the 
21.33 	information required to be included in the application. The commissioner may impose an 
22.1 	application fee in an amount sufficient to defray the commissioner's cost of processing 
22.2 	certifications. A business must file a copy of its application with the chief clerical officer 
22.3 	of the city at the same time it applies to the commissioner. For an agricultural processing 
22.4 	facility located outside the boundaries of a city, the business must file a copy of the 
22.5 	application with the county auditor.
22.6 	(b) The commissioner shall certify each business as a qualified business that:
22.7 	(1) satisfies the requirements of subdivision 2;
22.8 	(2) the commissioner determines would not expand its operations in greater 
22.9 	Minnesota without the tax incentives available under subdivision 4; and
22.10 	(3) enters a business subsidy agreement with the commissioner that pledges to 
22.11 	satisfy the minimum expansion requirements of paragraph (c) within three years or less 
22.12 	following execution of the agreement.
22.13 	The commissioner must act on an application within 60 90  days after its filing. 
22.14 	Failure by the commissioner to take action within the 60-day 90-day period is deemed 
22.15 	approval of the application.
22.16 	(c) The following minimum expansion requirements apply, based on the number of 
22.17 	employees of the business at locations in greater Minnesota:
22.18 	(1) a business that employs 50 or fewer full-time equivalent employees in greater 
22.19 	Minnesota when the agreement is executed must increase its employment by five or more 
22.20 	full-time equivalent employees;
22.21 	(2) a business that employs more than 50 but fewer than 200 full-time equivalent 
22.22 	employees in greater Minnesota when the agreement is executed must increase the number 
22.23 	of its full-time equivalent employees in greater Minnesota by at least ten percent; or
22.24 	(3) a business that employs 200 or more full-time equivalent employees in greater 
22.25 	Minnesota when the agreement is executed must increase its employment by at least 21 
22.26 	full-time equivalent employees (c) The business must increase the number of full-time 
22.27 	equivalent employees in greater Minnesota from the time the business subsidy agreement 
22.28 	is executed by two employees or ten percent, whichever is greater.
22.29 	(d) The city, or a county for an agricultural processing facility located outside the 
22.30 	boundaries of a city, in which the business proposes to expand its operations may file 
22.31 	comments supporting or opposing the application with the commissioner. The comments 
22.32 	must be filed within 30 days after receipt by the city of the application and may include a 
22.33 	notice of any contribution the city or county intends to make to encourage or support the 
22.34 	business expansion, such as the use of tax increment financing, property tax abatement, 
22.35 	additional city or county services, or other financial assistance.
23.1 	(e) Certification of a qualified business is effective for the 12-year seven-year period 
23.2 	beginning on the first day of the calendar month immediately following execution of 
23.3 	the business subsidy agreement the date that the commissioner informs the business of 
23.4 	the award of the benefit.

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

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

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

23.15 	Sec. 4. [168A.125] TRANSFER-ON-DEATH OF TITLE TO MOTOR VEHICLE.
23.16 		Subdivision 1.Titled as transfer-on-death. A motor vehicle may be titled in 
23.17 	transfer-on-death or TOD form by a natural person by including in the certificate of title a 
23.18 	designation of a beneficiary or beneficiaries who are natural persons to whom the motor 
23.19 	vehicle must be transferred on death of the owner or the last survivor of joint owners with 
23.20 	rights of survivorship, subject to the rights of all secured parties.
23.21 		Subd. 2.Designation of beneficiary. A motor vehicle is registered in 
23.22 	transfer-on-death form by designating on the certificate of title the name of the owner 
23.23 	and the names of joint owners with identification of rights of survivorship, followed by 
23.24 	the words "transfer-on-death to (name of beneficiary or beneficiaries)." The designation 
23.25 	"TOD" may be used instead of "transfer-on-death." A title in transfer-on-death form is 
23.26 	not required to be supported by consideration, and the certificate of title in which the 
23.27 	designation is made is not required to be delivered to the beneficiary or beneficiaries in 
23.28 	order for the designation to be effective.
23.29 		Subd. 3.Interest of beneficiary. The transfer-on-death beneficiary or beneficiaries 
23.30 	shall have no interest in the motor vehicle until the death of the owner or the last survivor 
23.31 	of the joint owners with right of survivorship. A beneficiary designation may be changed at 
23.32 	any time by the owner or by all joint owners with rights of survivorship, without the consent 
23.33 	of the beneficiary or beneficiaries, by filing an application for a new certificate of title.
24.1 		Subd. 4.Vesting of ownership in beneficiary. Ownership of a motor vehicle 
24.2 	titled in transfer-on-death form shall vest in the designated beneficiary or beneficiaries on 
24.3 	the death of the owner or the last of the joint owners with right of survivorship, subject 
24.4 	to the rights of all secured parties. The transfer-on-death beneficiary or beneficiaries 
24.5 	who survive the owner may apply for a new certificate of title to the motor vehicle upon 
24.6 	submitting proof of the death of the owner of the motor vehicle. If no transfer-on-death 
24.7 	beneficiary or beneficiaries survive the owner of a motor vehicle, the motor vehicle must 
24.8 	be included in the probate estate of the deceased owner. A transfer of a motor vehicle to a 
24.9 	transfer-on-death beneficiary or beneficiaries is not a testamentary transfer.
24.10 		Subd. 5.Rights of creditors. This section does not limit the rights of any secured 
24.11 	party or creditor of the owner of a motor vehicle against a transfer-on-death beneficiary or 
24.12 	beneficiaries.

24.13 	Sec. 5. Minnesota Statutes 2013 Supplement, section 289A.20, subdivision 4, is 
24.14 	amended to read:
24.15 		Subd. 4.Sales and use tax. (a) The taxes imposed by chapter 297A are due and 
24.16 	payable to the commissioner monthly on or before the 20th day of the month following the 
24.17 	month in which the taxable event occurred, or following another reporting period as the 
24.18 	commissioner prescribes or as allowed under section 289A.18, subdivision 4, paragraph 
24.19 	(f) or (g), except that use taxes due on an annual use tax return as provided under section 
24.20 	289A.11, subdivision 1, are payable by April 15 following the close of the calendar year.
24.21 	(b) A vendor having a liability of $120,000 $250,000 or more during a fiscal year 
24.22 	ending June 30 must remit the June liability for the next year in the following manner:
24.23 	(1) Two business days before June 30 of the year, the vendor must remit 90 81.4
24.24 	 percent of the estimated June liability to the commissioner.
24.25 	(2) On or before August 20 of the year, the vendor must pay any additional amount 
24.26 	of tax not remitted in June.
24.27 	(c) A vendor having a liability of:
24.28 	(1) $10,000 or more, but less than $120,000 $250,000 during a fiscal year ending 
24.29 	June 30, 2013, and fiscal years thereafter, must remit by electronic means all liabilities 
24.30 	on returns due for periods beginning in all subsequent calendar years on or before the 
24.31 	20th day of the month following the month in which the taxable event occurred, or on 
24.32 	or before the 20th day of the month following the month in which the sale is reported 
24.33 	under section 289A.18, subdivision 4; or
24.34 	(2) $120,000 $250,000 or more, during a fiscal year ending June 30, 2009 2013, 
24.35 	and fiscal years thereafter, must remit by electronic means all liabilities in the manner 
25.1 	provided in paragraph (a) on returns due for periods beginning in the subsequent calendar 
25.2 	year, except for 90 81.4 percent of the estimated June liability, which is due two business 
25.3 	days before June 30. The remaining amount of the June liability is due on August 20.
25.4 	(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's 
25.5 	religious beliefs from paying electronically shall be allowed to remit the payment by mail. 
25.6 	The filer must notify the commissioner of revenue of the intent to pay by mail before 
25.7 	doing so on a form prescribed by the commissioner. No extra fee may be charged to a 
25.8 	person making payment by mail under this paragraph. The payment must be postmarked 
25.9 	at least two business days before the due date for making the payment in order to be 
25.10 	considered paid on a timely basis.

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

25.12 	Sec. 6. Minnesota Statutes 2012, section 289A.60, subdivision 15, is amended to read:
25.13 		Subd. 15.Accelerated payment of June sales tax liability; penalty for 
25.14 	underpayment. For payments made after December 31, 2006 2013, if a vendor is 
25.15 	required by law to submit an estimation of June sales tax liabilities and 9081.4 percent 
25.16 	payment by a certain date, the vendor shall pay a penalty equal to ten percent of the 
25.17 	amount of actual June liability required to be paid in June less the amount remitted in 
25.18 	June. The penalty must not be imposed, however, if the amount remitted in June equals 
25.19 	the lesser of 90 81.4 percent of the preceding May's liability or 90 81.4 percent of the 
25.20 	average monthly liability for the previous calendar year.

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

25.22 	Sec. 7. Minnesota Statutes 2012, section 297A.67, subdivision 13a, is amended to read:
25.23 		Subd. 13a.Instructional materials. Instructional materials, other than textbooks, 
25.24 	that are prescribed for use in conjunction with a course of study in a postsecondary school, 
25.25 	college, university, or private career school to students who are regularly enrolled at such 
25.26 	institutions are exempt. For purposes of this subdivision, "instructional materials" means 
25.27 	materials required to be used directly in the completion of the course of study, including, 
25.28 	but not limited to, interactive CDs, tapes, digital audio works, digital audiovisual works, 
25.29 	and computer software.
25.30 	Instructional materials do not include general reference works or other items 
25.31 	incidental to the instructional process such as pens, pencils, paper, folders, or computers. 
25.32 	For purposes of this subdivision, "school" and "private career school" have the meanings 
25.33 	given in subdivision 13.

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

26.2 	Sec. 8. Minnesota Statutes 2012, section 297A.67, is amended by adding a subdivision 
26.3 	to read:
26.4 		Subd. 33.Presentations accessed as digital audio and audiovisual works.
 26.5 	The charge for a live or prerecorded presentation, such as a lecture, seminar, 
26.6 	workshop, or course, where participants access the presentation as a digital audio 
26.7 	work or digital audiovisual work, and are connected to the presentation via the 
26.8 	Internet, telecommunications equipment or other device that transfers the presentation 
26.9 	electronically, is exempt if:
26.10 	(1) participants and the presenter, during the time that participants access the 
26.11 	presentation, are able to give, receive, and discuss the presentation with each other, 
26.12 	although the amount of interaction and when in the presentation the interaction occurs 
26.13 	may be limited by the presenter; and
26.14 	(2) for those presentations where participants are given the option to attend the 
26.15 	same presentation in person:
26.16 	(i) any limitations on the amount of interaction and when it occurs during the 
26.17 	presentation are the same for those participants accessing the presentation electronically 
26.18 	as those attending in person; and
26.19 	(ii) the admission to the in person presentation is not subject to tax under this chapter.

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

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

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

27.1 	Sec. 10. Minnesota Statutes 2013 Supplement, section 297A.68, subdivision 42, 
27.2 	is amended to read:
27.3 		Subd. 42.Qualified data centers. (a) Purchases of enterprise information 
27.4 	technology equipment and computer software for use in a qualified data center, or a 
27.5 	qualified refurbished data center, are exempt. The tax on purchases exempt under this 
27.6 	paragraph must be imposed and collected as if the rate under section 297A.62, subdivision 
27.7 	1, applied, and then refunded after June 30, 2013, in the manner provided in section 
27.8 	297A.75. This exemption includes enterprise information technology equipment and 
27.9 	computer software purchased to replace or upgrade enterprise information technology 
27.10 	equipment and computer software in a qualified data center, or a qualified refurbished 
27.11 	data center.
27.12 	(b) Electricity used or consumed in the operation of a qualified data center, or a 
27.13 	qualified refurbished data center, is exempt.
27.14 	(c) For purposes of this subdivision, "qualified data center, or a qualified refurbished 
27.15 	data center," means a facility in Minnesota:
27.16 	(1) that is comprised of one or more buildings that consist in the aggregate of 
27.17 	at least 25,000 square feet, and that are located on a single parcel or on contiguous 
27.18 	parcels, where the total cost of construction or refurbishment, investment in enterprise 
27.19 	information technology equipment, and computer software is at least $30,000,000 within 
27.20 	a 48-month period;
27.21 	(2) that is constructed or substantially refurbished after June 30, 2012, where 
27.22 	"substantially refurbished" means that at least 25,000 square feet have been rebuilt or 
27.23 	modified, including:
27.24 	(i) installation of enterprise information technology equipment, environmental 
27.25 	control, computer software, and energy efficiency improvements; and
27.26 	(ii) building improvements; and
27.27 	(3) that is used to house enterprise information technology equipment, where the 
27.28 	facility has the following characteristics:
27.29 	(i) uninterruptible power supplies, generator backup power, or both;
27.30 	(ii) sophisticated fire suppression and prevention systems; and
27.31 	(iii) enhanced security. A facility will be considered to have enhanced security if it 
27.32 	has restricted access to the facility to selected personnel; permanent security guards; video 
27.33 	camera surveillance; an electronic system requiring pass codes, keycards, or biometric 
27.34 	scans, such as hand scans and retinal or fingerprint recognition; or similar security features.
27.35 	In determining whether the facility has the required square footage, the square footage 
27.36 	of the following spaces shall be included if the spaces support the operation of enterprise 
28.1 	information technology equipment: office space, meeting space, and mechanical and other 
28.2 	support facilities. For purposes of this subdivision, "computer software" includes, but is 
28.3 	not limited to, software utilized or loaded at the a qualified data center or a qualified 
28.4 	refurbished data center, including maintenance, licensing, and software customization.
28.5 	(d) For purposes of this subdivision, a "qualified refurbished data center" means an 
28.6 	existing facility that qualifies as a data center under paragraph (c), clauses (2) and (3), but 
28.7 	that is comprised of one or more buildings that consist in the aggregate of at least 25,000 
28.8 	square feet, and that are located on a single parcel or contiguous parcels, where the total 
28.9 	cost of construction or refurbishment, investment in enterprise information technology 
28.10 	equipment, and computer software is at least $50,000,000 within a 24-month period.
28.11 	(e) For purposes of this subdivision, "enterprise information technology equipment" 
28.12 	means computers and equipment supporting computing, networking, or data storage, 
28.13 	including servers and routers. It includes, but is not limited to: cooling systems, 
28.14 	cooling towers, and other temperature control infrastructure; power infrastructure for 
28.15 	transformation, distribution, or management of electricity used for the maintenance and 
28.16 	operation of a qualified data center or a qualified refurbished data center, including but 
28.17 	not limited to exterior dedicated business-owned substations, backup power generation 
28.18 	systems, battery systems, and related infrastructure; and racking systems, cabling, and 
28.19 	trays, which are necessary for the maintenance and operation of the a qualified data center
28.20 	 or a qualified refurbished data center.
28.21 	(f) A qualified data center or a qualified refurbished data center may claim the 
28.22 	exemptions in this subdivision for purchases made either within 20 years of the date of 
28.23 	its first purchase qualifying for the exemption under paragraph (a), or by June 30, 2042, 
28.24 	whichever is earlier.
28.25 	(g) The purpose of this exemption is to create jobs in the construction and data 
28.26 	center industries.
28.27 	(h) This subdivision is effective for sales and purchases made after June 30, 2012, 
28.28 	and before July 1, 2042.

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

28.31 	Sec. 11. Minnesota Statutes 2013 Supplement, section 297A.68, subdivision 44, 
28.32 	is amended to read:
28.33 		Subd. 44.Greater Minnesota business expansions. (a) Purchases and use of 
28.34 	tangible personal property or taxable services by a qualified business, as defined in section 
28.35 	116J.8738, are exempt if:
29.1 	(1) the business subsidy agreement provides that the exemption under this 
29.2 	subdivision applies;
29.3 	(2) the property or services are primarily used or consumed at the facility in greater 
29.4 	Minnesota identified in the business subsidy agreement; and
29.5 	(3) the purchase was made and delivery received during the duration of the 
29.6 	certification of the business as a qualified business under section 116J.8738.
29.7 	(b) Purchase and use of construction materials and supplies used or consumed in, 
29.8 	and equipment incorporated into, the construction of improvements to real property in 
29.9 	greater Minnesota are exempt if the improvements after completion of construction are 
29.10 	to be used in the conduct of the trade or business of the qualified business, as defined in 
29.11 	section 116J.8738. This exemption applies regardless of whether the purchases are made 
29.12 	by the business or a contractor.
29.13 	(c) The exemptions under this subdivision apply to a local sales and use tax.
29.14 	(d) The tax on purchases imposed under this subdivision must be imposed and 
29.15 	collected as if the rate under section 297A.62 applied, and then refunded in the manner 
29.16 	provided in section 297A.75. The total amount refunded for a facility over the certification 
29.17 	period is limited to the amount listed in the business subsidy agreement. No more than 
29.18 	$7,000,000 may be refunded in a fiscal year for all purchases under this subdivision. 
29.19 	Refunds must be allocated on a first-come, first-served basis. If more than $7,000,000 of 
29.20 	eligible claims are made in a fiscal year, claims by qualified businesses carry over to the 
29.21 	next fiscal year, and the commissioner must first allocate refunds to qualified businesses 
29.22 	eligible for a refund in the preceding fiscal year. Any portion of the balance of funds 
29.23 	allocated for refunds under this paragraph does not cancel and shall be carried forward to 
29.24 	and available for refunds in subsequent fiscal years.

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

29.26 	Sec. 12. Minnesota Statutes 2013 Supplement, section 297A.70, subdivision 2, is 
29.27 	amended to read:
29.28 		Subd. 2.Sales to government. (a) All sales, except those listed in paragraph (b), 
29.29 	to the following governments and political subdivisions, or to the listed agencies or 
29.30 	instrumentalities of governments and political subdivisions, are exempt:
29.31 	(1) the United States and its agencies and instrumentalities;
29.32 	(2) school districts, local governments, the University of Minnesota, state universities, 
29.33 	community colleges, technical colleges, state academies, the Perpich Minnesota Center for 
29.34 	Arts Education, and an instrumentality of a political subdivision that is accredited as an 
29.35 	optional/special function school by the North Central Association of Colleges and Schools;
30.1 	(3) hospitals and nursing homes owned and operated by political subdivisions of 
30.2 	the state of tangible personal property and taxable services used at or by hospitals and 
30.3 	nursing homes;
30.4 	(4) the Metropolitan Council, for its purchases of vehicles and repair parts to equip 
30.5 	operations provided for in section 473.4051;
30.6 	(5) other states or political subdivisions of other states, if the sale would be exempt 
30.7 	from taxation if it occurred in that state; and
30.8 	(6) public libraries, public library systems, multicounty, multitype library systems 
30.9 	as defined in section 134.001, county law libraries under chapter 134A, state agency 
30.10 	libraries, the state library under section 480.09, and the Legislative Reference Library.
30.11 	(b) This exemption does not apply to the sales of the following products and services:
30.12 	(1) building, construction, or reconstruction materials purchased by a contractor 
30.13 	or a subcontractor as a part of a lump-sum contract or similar type of contract with a 
30.14 	guaranteed maximum price covering both labor and materials for use in the construction, 
30.15 	alteration, or repair of a building or facility;
30.16 	(2) construction materials purchased by tax exempt entities or their contractors to 
30.17 	be used in constructing buildings or facilities which will not be used principally by the 
30.18 	tax exempt entities;
30.19 	(3) the leasing of a motor vehicle as defined in section 297B.01, subdivision 11, 
30.20 	except for leases entered into by the United States or its agencies or instrumentalities;
30.21 	(4) lodging as defined under section 297A.61, subdivision 3, paragraph (g), clause 
30.22 	(2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in section 
30.23 	297A.67, subdivision 2, except for lodging, prepared food, candy, soft drinks, and alcoholic 
30.24 	beverages purchased directly by the United States or its agencies or instrumentalities; or
30.25 	(5) goods or services purchased by a local government as inputs to goods and 
30.26 	services that are generally provided by a private business and the purchases would be 
30.27 	taxable if made by a private business engaged in the same activity a liquor store, gas or 
30.28 	electric utility, solid waste hauling service, solid waste recycling service, landfill, golf 
30.29 	course, marina, health and fitness center, campground, cafe, or laundromat.
30.30 	(c) As used in this subdivision, "school districts" means public school entities and 
30.31 	districts of every kind and nature organized under the laws of the state of Minnesota, and 
30.32 	any instrumentality of a school district, as defined in section 471.59.
30.33 	(d) As used in this subdivision, "local governments" means:
30.34 	(1) home rule charter or statutory cities,;
30.35 	(2) counties, and;
30.36 	(3) townships.;
31.1 	(4) housing and redevelopment authorities under sections 469.001 to 469.047;
31.2 	(5) port authorities under sections 469.048 to 469.068;
31.3 	(6) economic development authorities under sections 469.090 to 469.1081; and
31.4 	(7) any joint powers board or organization created under section 471.59 provided 
31.5 	that at least 50 percent or more of the governmental units that are party to the joint powers 
31.6 	agreement are exempt from sales tax under clauses (1) to (6) or paragraph (a).
31.7 	(e) As used in this subdivision, "goods or services generally provided by a private 
31.8 	business" include, but are not limited to, goods or services provided by liquor stores, gas 
31.9 	and electric utilities, golf courses, marinas, health and fitness centers, campgrounds, cafes, 
31.10 	and laundromats. "Goods or services generally provided by a private business" do not 
31.11 	include housing services, sewer and water services, wastewater treatment, ambulance and 
31.12 	other public safety services, correctional services, chore or homemaking services provided 
31.13 	to elderly or disabled individuals, or road and street maintenance or lighting.

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

31.17 	Sec. 13. Minnesota Statutes 2013 Supplement, section 297A.70, subdivision 13, 
31.18 	is amended to read:
31.19 		Subd. 13.Fund-raising sales by or for nonprofit groups. (a) The following 
31.20 	sales by the specified organizations for fund-raising purposes are exempt, subject to the 
31.21 	limitations listed in paragraph (b):
31.22 	(1) all sales made by a nonprofit organization that exists solely for the purpose of 
31.23 	providing educational or social activities for young people primarily age 18 and under;
31.24 	(2) all sales made by an organization that is a senior citizen group or association of 
31.25 	groups if (i) in general it limits membership to persons age 55 or older; (ii) it is organized 
31.26 	and operated exclusively for pleasure, recreation, and other nonprofit purposes; and (iii) 
31.27 	no part of its net earnings inures to the benefit of any private shareholders;
31.28 	(3) the sale or use of tickets or admissions to a golf tournament held in Minnesota if 
31.29 	the beneficiary of the tournament's net proceeds qualifies as a tax-exempt organization 
31.30 	under section 501(c)(3) of the Internal Revenue Code; and
31.31 	(4) sales of candy sold for fund-raising purposes by a nonprofit organization that 
31.32 	provides educational and social activities primarily for young people age 18 and under.
31.33 	(b) The exemptions listed in paragraph (a) are limited in the following manner:
32.1 	(1) the exemption under paragraph (a), clauses (1) and (2), applies only if to the first 
32.2 	$20,000, as adjusted under paragraph (e), of the gross annual receipts of the organization 
32.3 	from fund-raising do not exceed $10,000; and
32.4 	(2) the exemption under paragraph (a), clause (1), does not apply if the sales are 
32.5 	derived from admission charges or from activities for which the money must be deposited 
32.6 	with the school district treasurer under section 123B.49, subdivision 2, or be recorded in 
32.7 	the same manner as other revenues or expenditures of the school district under section 
32.8 	123B.49, subdivision 4.
32.9 	(c) Sales of tangible personal property and services are exempt if the entire proceeds, 
32.10 	less the necessary expenses for obtaining the property or services, will be contributed to 
32.11 	a registered combined charitable organization described in section 43A.50, to be used 
32.12 	exclusively for charitable, religious, or educational purposes, and the registered combined 
32.13 	charitable organization has given its written permission for the sale. Sales that occur over 
32.14 	a period of more than 24 days per year are not exempt under this paragraph.
32.15 	(d) For purposes of this subdivision, a club, association, or other organization of 
32.16 	elementary or secondary school students organized for the purpose of carrying on sports, 
32.17 	educational, or other extracurricular activities is a separate organization from the school 
32.18 	district or school for purposes of applying the $10,000 $20,000 limit, as adjusted under 
32.19 	paragraph (e).
32.20 	(e) By December 1, 2015, and every December 1 thereafter, the commissioner shall 
32.21 	calculate and publish an adjusted exemption limit for this subdivision. The adjusted 
32.22 	limit is equal to $20,000 multiplied by the ratio of the Consumer Price Index for urban 
32.23 	consumers for the most recently available calendar year to the Consumer Price Index 
32.24 	for urban consumers for calendar year 2013, as prepared by the United States Bureau 
32.25 	of Labor Statistics.

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

32.28 	Sec. 14. Minnesota Statutes 2013 Supplement, section 297A.70, subdivision 14, 
32.29 	is amended to read:
32.30 		Subd. 14.Fund-raising events sponsored by nonprofit groups. (a) Sales of 
32.31 	tangible personal property or services at, and admission charges for fund-raising events 
32.32 	sponsored by, a nonprofit organization are exempt if:
32.33 	(1) all gross receipts are recorded as such, in accordance with generally accepted 
32.34 	accounting practices, on the books of the nonprofit organization; and
33.1 	(2) the entire proceeds, less the necessary expenses for the event, will be used solely 
33.2 	and exclusively for charitable, religious, or educational purposes. Exempt sales include 
33.3 	the sale of prepared food, candy, and soft drinks at the fund-raising event.
33.4 	(b) This exemption is limited in the following manner:
33.5 	(1) it does not apply to admission charges for events involving bingo or other 
33.6 	gambling activities or to charges for use of amusement devices involving bingo or other 
33.7 	gambling activities;
33.8 	(2) all gross receipts are taxable if the profits are not used solely and exclusively for 
33.9 	charitable, religious, or educational purposes;
33.10 	(3) it does not apply unless the organization keeps a separate accounting record, 
33.11 	including receipts and disbursements from each fund-raising event that documents all 
33.12 	deductions from gross receipts with receipts and other records;
33.13 	(4) it does not apply to any sale made by or in the name of a nonprofit corporation as 
33.14 	the active or passive agent of a person that is not a nonprofit corporation;
33.15 	(5) all gross receipts are taxable if fund-raising events exceed 24 days per year;
33.16 	(6) it does not apply to fund-raising events conducted on premises leased for more 
33.17 	than five days but less than 30 days; and
33.18 	(7) it does not apply if the risk of the event is not borne by the nonprofit organization 
33.19 	and the benefit to the nonprofit organization is less than the total amount of the state and 
33.20 	local tax revenues forgone by this exemption.
33.21 	(c) For purposes of this subdivision, a "nonprofit organization" means any unit of 
33.22 	government, corporation, society, association, foundation, or institution organized and 
33.23 	operated for charitable, religious, educational, civic, fraternal, and senior citizens' or 
33.24 	veterans' purposes, no part of the net earnings of which inures to the benefit of a private 
33.25 	individual.
33.26 	(d) For purposes of this subdivision, "fund-raising events" means activities of 
33.27 	limited duration, not regularly carried out in the normal course of business, that attract 
33.28 	patrons for community, social, and entertainment purposes, such as auctions, bake sales, 
33.29 	ice cream socials, block parties, carnivals, competitions, concerts, concession stands, 
33.30 	craft sales, bazaars, dinners, dances, door-to-door sales of merchandise, fairs, fashion 
33.31 	shows, festivals, galas, special event workshops, sporting activities such as marathons and 
33.32 	tournaments, and similar events. Fund-raising events do not include the operation of a 
33.33 	regular place of business in which services are provided or sales are made during regular 
33.34 	hours such as bookstores, thrift stores, gift shops, restaurants, ongoing Internet sales, 
33.35 	regularly scheduled classes, or other activities carried out in the normal course of business.

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

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

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

34.10 	Sec. 16. Minnesota Statutes 2013 Supplement, section 297B.01, subdivision 16, 
34.11 	is amended to read:
34.12 		Subd. 16.Sale, sells, selling, purchase, purchased, or acquired. (a) "Sale," 
34.13 	"sells," "selling," "purchase," "purchased," or "acquired" means any transfer of title of any 
34.14 	motor vehicle, whether absolutely or conditionally, for a consideration in money or by 
34.15 	exchange or barter for any purpose other than resale in the regular course of business.
34.16 	(b) Any motor vehicle utilized by the owner only by leasing such vehicle to others 
34.17 	or by holding it in an effort to so lease it, and which is put to no other use by the owner 
34.18 	other than resale after such lease or effort to lease, shall be considered property purchased 
34.19 	for resale.
34.20 	(c) The terms also shall include any transfer of title or ownership of a motor vehicle 
34.21 	by other means, for or without consideration, except that these terms shall not include:
34.22 	(1) the acquisition of a motor vehicle by inheritance from or by bequest of, or 
34.23 	transfer-on-death of title by, a decedent who owned it;
34.24 	(2) the transfer of a motor vehicle which was previously licensed in the names of 
34.25 	two or more joint tenants and subsequently transferred without monetary consideration to 
34.26 	one or more of the joint tenants;
34.27 	(3) the transfer of a motor vehicle by way of gift from a limited used vehicle dealer 
34.28 	licensed under section 168.27, subdivision 4a, to an individual, when the transfer is with 
34.29 	no monetary or other consideration or expectation of consideration and the parties to the 
34.30 	transfer submit an affidavit to that effect at the time the title transfer is recorded;
34.31 	(4) the transfer of a motor vehicle by gift between:
34.32 	(i) spouses;
34.33 	(ii) parents and a child; or
34.34 	(iii) grandparents and a grandchild;
35.1 	(5) the voluntary or involuntary transfer of a motor vehicle between a husband and 
35.2 	wife in a divorce proceeding; or
35.3 	(6) the transfer of a motor vehicle by way of a gift to an organization that is exempt 
35.4 	from federal income taxation under section 501(c)(3) of the Internal Revenue Code when 
35.5 	the motor vehicle will be used exclusively for religious, charitable, or educational purposes.

35.6 	Sec. 17. Minnesota Statutes 2012, section 297B.03, is amended to read:
35.7 	297B.03 EXEMPTIONS.
35.8 	There is specifically exempted from the provisions of this chapter and from 
35.9 	computation of the amount of tax imposed by it the following:
35.10 	(1) purchase or use, including use under a lease purchase agreement or installment 
35.11 	sales contract made pursuant to section 465.71, of any motor vehicle by the United States 
35.12 	and its agencies and instrumentalities and by any person described in and subject to the 
35.13 	conditions provided in section 297A.67, subdivision 11;
35.14 	(2) purchase or use of any motor vehicle by any person who was a resident of 
35.15 	another state or country at the time of the purchase and who subsequently becomes a 
35.16 	resident of Minnesota, provided the purchase occurred more than 60 days prior to the date 
35.17 	such person began residing in the state of Minnesota and the motor vehicle was registered 
35.18 	in the person's name in the other state or country;
35.19 	(3) purchase or use of any motor vehicle by any person making a valid election to be 
35.20 	taxed under the provisions of section 297A.90;
35.21 	(4) purchase or use of any motor vehicle previously registered in the state of 
35.22 	Minnesota when such transfer constitutes a transfer within the meaning of section 118, 
35.23 	331, 332, 336, 337, 338, 351, 355, 368, 721, 731, 1031, 1033, or 1563(a) of the Internal 
35.24 	Revenue Code;
35.25 	(5) purchase or use of any vehicle owned by a resident of another state and leased 
35.26 	to a Minnesota-based private or for-hire carrier for regular use in the transportation of 
35.27 	persons or property in interstate commerce provided the vehicle is titled in the state of 
35.28 	the owner or secured party, and that state does not impose a sales tax or sales tax on 
35.29 	motor vehicles used in interstate commerce;
35.30 	(6) purchase or use of a motor vehicle by a private nonprofit or public educational 
35.31 	institution for use as an instructional aid in automotive training programs operated by the 
35.32 	institution. "Automotive training programs" includes motor vehicle body and mechanical 
35.33 	repair courses but does not include driver education programs;
36.1 	(7) purchase of a motor vehicle by an ambulance service licensed under section 
36.2 	144E.10 when that vehicle is equipped and specifically intended for emergency response 
36.3 	or for providing ambulance service;
36.4 	(8) purchase of a motor vehicle by or for a public library, as defined in section 
36.5 	134.001, subdivision 2, as a bookmobile or library delivery vehicle;
36.6 	(9) purchase of a ready-mixed concrete truck;
36.7 	(10) purchase or use of a motor vehicle by a town home rule charter or statutory cities, 
36.8 	counties, and townships or any joint powers board or organization created under section 
36.9 	471.59 where at least 50 percent of the members of the agreement are home rule charter or 
36.10 	statutory cities, counties, or townships, for use exclusively for road maintenance, including 
36.11 	snowplows and dump trucks, but not including automobiles, vans, or pickup trucks;
36.12 	(11) purchase or use of a motor vehicle by a corporation, society, association, 
36.13 	foundation, or institution organized and operated exclusively for charitable, religious, or 
36.14 	educational purposes, except a public school, university, or library, but only if the vehicle is:
36.15 	(i) a truck, as defined in section 168.002, a bus, as defined in section 168.002, or a 
36.16 	passenger automobile, as defined in section 168.002, if the automobile is designed and 
36.17 	used for carrying more than nine persons including the driver; and
36.18 	(ii) intended to be used primarily to transport tangible personal property or 
36.19 	individuals, other than employees, to whom the organization provides service in 
36.20 	performing its charitable, religious, or educational purpose;
36.21 	(12) purchase of a motor vehicle for use by a transit provider exclusively to provide 
36.22 	transit service is exempt if the transit provider is either (i) receiving financial assistance or 
36.23 	reimbursement under section 174.24 or 473.384, or (ii) operating under section 174.29, 
36.24 	473.388, or 473.405;
36.25 	(13) purchase or use of a motor vehicle by a qualified business, as defined in section 
36.26 	469.310, located in a job opportunity building zone, if the motor vehicle is principally 
36.27 	garaged in the job opportunity building zone and is primarily used as part of or in direct 
36.28 	support of the person's operations carried on in the job opportunity building zone. The 
36.29 	exemption under this clause applies to sales, if the purchase was made and delivery 
36.30 	received during the duration of the job opportunity building zone. The exemption under 
36.31 	this clause also applies to any local sales and use tax;
36.32 	(14) purchase of a leased vehicle by the lessee who was a participant in a 
36.33 	lease-to-own program from a charitable organization that is:
36.34 	(i) described in section 501(c)(3) of the Internal Revenue Code; and
36.35 	(ii) licensed as a motor vehicle lessor under section 168.27, subdivision 4; and
37.1 	(15) purchase of a motor vehicle used exclusively as a mobile medical unit for the 
37.2 	provision of medical or dental services by a federally qualified health center, as defined 
37.3 	under title 19 of the Social Security Act, as amended by Section 4161 of the Omnibus 
37.4 	Budget Reconciliation Act of 1990.

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

37.7 	Sec. 18. Minnesota Statutes 2012, section 297F.09, subdivision 10, is amended to read:
37.8 		Subd. 10.Accelerated tax payment; cigarette or tobacco products distributor.
 37.9 	A cigarette or tobacco products distributor having a liability of $120,000 $250,000 or 
37.10 	more during a fiscal year ending June 30, shall remit the June liability for the next year 
37.11 	in the following manner:
37.12 	(a) Two business days before June 30 of the year, the distributor shall remit the 
37.13 	actual May liability and 90 81.4 percent of the estimated June liability to the commissioner 
37.14 	and file the return in the form and manner prescribed by the commissioner.
37.15 	(b) On or before August 18 of the year, the distributor shall submit a return showing 
37.16 	the actual June liability and pay any additional amount of tax not remitted in June. A 
37.17 	penalty is imposed equal to ten percent of the amount of June liability required to be paid 
37.18 	in June, less the amount remitted in June. However, the penalty is not imposed if the 
37.19 	amount remitted in June equals the lesser of:
37.20 	(1) 90 81.4 percent of the actual June liability; or
37.21 	(2) 90 81.4 percent of the preceding May's May liability.

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

37.23 	Sec. 19. Minnesota Statutes 2012, section 297G.03, is amended by adding a 
37.24 	subdivision to read:
37.25 		Subd. 5.Microdistillery credit. (a) A qualified distiller producing distilled spirits is 
37.26 	entitled to a tax credit of $1.33 per liter on 100,000 liters sold in any fiscal year beginning 
37.27 	July 1. A qualified distiller may take the credit on the 18th day of each month, but the total 
37.28 	credit allowed may not exceed in any fiscal year the lesser of:
37.29 	(1) the liability for tax; or
37.30 	(2) $133,000.
37.31 	(b) For purposes of this subdivision, "qualified distiller" means a microdistillery 
37.32 	qualifying under section 340A.101, subdivision 17a, in the calendar year immediately 
37.33 	preceding the calendar year for which the credit under this subdivision is claimed.

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

38.2 	Sec. 20. Minnesota Statutes 2012, section 297G.09, subdivision 9, is amended to read:
38.3 		Subd. 9.Accelerated tax payment; penalty. A person liable for tax under this 
38.4 	chapter having a liability of $120,000 $250,000 or more during a fiscal year ending June 
38.5 	30, shall remit the June liability for the next year in the following manner:
38.6 	(a) Two business days before June 30 of the year, the taxpayer shall remit the actual 
38.7 	May liability and 90 81.4 percent of the estimated June liability to the commissioner and 
38.8 	file the return in the form and manner prescribed by the commissioner.
38.9 	(b) On or before August 18 of the year, the taxpayer shall submit a return showing 
38.10 	the actual June liability and pay any additional amount of tax not remitted in June. A 
38.11 	penalty is imposed equal to ten percent of the amount of June liability required to be paid 
38.12 	in June less the amount remitted in June. However, the penalty is not imposed if the 
38.13 	amount remitted in June equals the lesser of:
38.14 	(1) 90 81.4 percent of the actual June liability; or
38.15 	(2) 90 81.4 percent of the preceding May liability.

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

38.17 	Sec. 21. Laws 1980, chapter 511, section 1, subdivision 2, as amended by Laws 1991, 
38.18 	chapter 291, article 8, section 22, Laws 1998, chapter 389, article 8, section 25, Laws 
38.19 	2003, First Special Session chapter 21, article 8, section 11, and Laws 2008, chapter 
38.20 	154, article 5, section 2, is amended to read:
38.21 		Subd. 2. (a) Notwithstanding Minnesota Statutes, section 477A.016, or any 
38.22 	other law, ordinance, or city charter provision to the contrary, the city of Duluth may, 
38.23 	by ordinance, impose an additional sales tax of up to two and one-quarter one and 
38.24 	three-quarter percent on sales transactions which are described in Minnesota Statutes 2000, 
38.25 	section 297A.01, subdivision 3, clause (c). When the city council determines that the taxes 
38.26 	imposed under this subdivision and under Laws 1998, chapter 389, article 8, section 26, at a 
38.27 	rate of one-half of one percent have produced revenue sufficient to pay (1) the debt service 
38.28 	on bonds in a principal amount of $8,000,000 issued for capital improvements to the 
38.29 	Duluth Entertainment and Convention Center, and (2) debt service on outstanding bonds 
38.30 	originally issued in the principal amount of $4,970,000 to finance capital improvements to 
38.31 	the Great Lakes Aquarium since the imposition of the taxes at the rate of one and one-half 
38.32 	percent, the rate of the tax under this subdivision is reduced by one-half of one percent.
38.33 	 The imposition of this tax shall not be subject to voter referendum under either state law 
38.34 	or city charter provisions. When the city council determines that the taxes imposed under 
39.1 	this subdivision paragraph at a rate of three-quarters of one percent and other sources of 
39.2 	revenue produce revenue sufficient to pay debt service on bonds in the principal amount 
39.3 	of $40,285,000 plus issuance and discount costs, issued for capital improvements at the 
39.4 	Duluth Entertainment and Convention Center, which include a new arena, the rate of tax 
39.5 	under this subdivision must be reduced by three-quarters of one percent.
39.6 	(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes, 
39.7 	section 477A.016, or any other law, ordinance, or city charter provision to the contrary, 
39.8 	the city of Duluth may, by ordinance, impose an additional sales tax of up to one-half of 
39.9 	one percent on sales transactions which are described in Minnesota Statutes 2000, section 
39.10 	297A.01, subdivision 3, clause (c). This tax expires when the city council determines 
39.11 	that the tax imposed under this paragraph, along with the tax imposed under section 
39.12 	22, paragraph (b), has produced revenues sufficient to pay the debt service on bonds 
39.13 	in a principal amount of no more than $18,000,000, plus issuance and discount costs, 
39.14 	to finance capital improvements to public facilities to support tourism and recreational 
39.15 	activities in that portion of the city west of 34th Avenue West.

39.16 	EFFECTIVE DATE. This section is effective the day after the governing body of 
39.17 	the city of Duluth and its chief clerical officer comply with Minnesota Statutes, section 
39.18 	645.021, subdivisions 2 and 3.

39.19 	Sec. 22. Laws 1980, chapter 511, section 2, as amended by Laws 1998, chapter 389, 
39.20 	article 8, section 26, and Laws 2003, First Special Session chapter 21, article 8, section 
39.21 	12, is amended to read:
39.22 	Sec. 22. CITY OF DULUTH; TAX ON RECEIPTS BY HOTELS AND 
39.23 	MOTELS.
 39.24 	(a) Notwithstanding Minnesota Statutes, section 477A.016, or any other law, or 
39.25 	ordinance, or city charter provision to the contrary, the city of Duluth may, by ordinance, 
39.26 	impose an additional tax of one and one-half percent upon the gross receipts from the 
39.27 	sale of lodging for periods of less than 30 days in hotels and motels located in the city. 
39.28 	When the city council determines that the taxes imposed under this section and section 25 
39.29 	at a rate of one-half of one percent have produced revenue sufficient to pay (1) the debt 
39.30 	service on bonds in a principal amount of $8,000,000 issued for capital improvements 
39.31 	for the Duluth Entertainment and Convention Center, and (2) the debt service on 
39.32 	outstanding bonds originally issued in the principal amount of $4,970,000 to finance 
39.33 	capital improvements to the Great Lakes Aquarium since the imposition of the taxes at the 
39.34 	rate of one and one-half percent, the rate of the tax under this section is reduced to one 
39.35 	percent. The tax shall be collected in the same manner as the tax set forth in the Duluth 
40.1 	city charter, section 54(d), paragraph one. The imposition of this tax shall not be subject to 
40.2 	voter referendum under either state law or city charter provisions.
40.3 	(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes, 
40.4 	section 477A.016, or any other law, ordinance, or city charter provision to the contrary, 
40.5 	the city of Duluth may, by ordinance, impose an additional sales tax of up to one-half 
40.6 	of one percent on the gross receipts from the sale of lodging for periods of less than 
40.7 	30 days in hotels and motels located in the city. This tax expires when the city council 
40.8 	first determines that the tax imposed under this paragraph, along with the tax imposed 
40.9 	under section 21, paragraph (b), has produced revenues sufficient to pay the debt 
40.10 	service on bonds in a principal amount of no more than $18,000,000, plus issuance and 
40.11 	discount costs, to finance capital improvements to public facilities to support tourism and 
40.12 	recreational activities in that portion of the city west of 34th Avenue West.

40.13 	EFFECTIVE DATE. This section is effective the day after the governing body of 
40.14 	the city of Duluth and its chief clerical officer comply with Minnesota Statutes, section 
40.15 	645.021, subdivisions 2 and 3.

40.16 	Sec. 23. Laws 2005, First Special Session chapter 3, article 5, section 38, subdivision 
40.17 	4, is amended to read:
40.18 		Subd. 4.Termination of taxes. The taxes imposed under this section expire at the 
40.19 	earlier of (1) ten 15 years after the taxes are first imposed, or (2) when the city council first 
40.20 	determines that the amount of revenues raised to pay for the projects under subdivision 2, 
40.21 	shall meet or exceed the sum of $15,000,000. Any funds remaining after completion of 
40.22 	the projects may be placed in the general fund of the city.

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

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

41.7 	EFFECTIVE DATE. This section is effective the day after the governing body of 
41.8 	the city of Baxter and its chief clerical officer comply with Minnesota Statutes, section 
41.9 	645.021, subdivisions 2 and 3.

41.10 	Sec. 25. Laws 2006, chapter 259, article 3, section 10, subdivision 4, is amended to read:
41.11 		Subd. 4.Bonds. (a) The city of Baxter, pursuant to the approval of the voters at the 
41.12 	November 2, 2004, referendum authorizing the imposition of the taxes in this section, may 
41.13 	issue general obligation bonds of the city, in one or more series, in the aggregate principal 
41.14 	amount not to exceed $15,000,000 to finance the projects listed in subdivision 3, paragraph 
41.15 	(a). The debt represented by the bonds is not included in computing any debt limitations 
41.16 	applicable to the city, and the levy of taxes required by Minnesota Statutes, section 475.61, 
41.17 	to pay the principal of and interest on the bonds is not subject to any levy limitation or 
41.18 	included in computing or applying any levy limitation applicable to the city of Baxter.
41.19 	(b) The city of Baxter, pursuant to the approval of the voters at the 2014 general 
41.20 	election to extend the tax under this section, may issue general obligation bonds of the 
41.21 	city, in one or more series, in the aggregate principal amount not to exceed $32,000,000 
41.22 	plus an amount equal to the costs of issuance of the bonds to finance the projects listed 
41.23 	in subdivision 3, paragraph (b). The debt represented by the bonds is not included in 
41.24 	computing any debt limitations applicable to the city, and the levy of taxes required by 
41.25 	Minnesota Statutes, section 475.61, to pay the principal of and interest on the bonds is not 
41.26 	subject to any levy limitation or included in computing or applying any levy limitation 
41.27 	applicable to the city of Baxter.

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

41.29 	Sec. 26. Laws 2006, chapter 259, article 3, section 10, subdivision 5, is amended to read:
41.30 		Subd. 5.Termination of taxes. (a) The taxes imposed under subdivisions 1 and 2 
41.31 	expire at the earlier of a date 12 years after the imposition of the tax or when the Baxter 
41.32 	City Council first determines that the amount of revenues raised from the taxes to pay for 
41.33 	the projects under subdivision 3 equals or exceeds $15,000,000 plus any interest on bonds 
42.1 	issued for the projects under subdivision 4, paragraph (a). Any funds remaining after the 
42.2 	expiration of the taxes and retirement of the bonds shall be placed in a capital project fund 
42.3 	of the city of Baxter. The taxes imposed under subdivisions 1 and 2 may expire at an 
42.4 	earlier time if the city of Baxter so determines by ordinance.
42.5 	(b) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any 
42.6 	other contrary provision of law, ordinance, or city charter, the city of Baxter may, by 
42.7 	ordinance, extend the taxes authorized under subdivisions 1 and 2 beyond the termination 
42.8 	date in paragraph (a) if approved by the voters of the city at a general election held in 
42.9 	2014. The question put to the voters must indicate that an affirmative vote would extend 
42.10 	the imposition of the taxes until 2031 or until an additional $32,000,000, plus an amount 
42.11 	equal to interest and issuance costs associated with bonds issued under subdivision 4, 
42.12 	paragraph (b), above the initial amount authorized to pay for $15,000,000 in bonds and 
42.13 	associated bond cost and projects, listed in subdivision 3, paragraph (a), is raised. If 
42.14 	extended under this paragraph, the taxes authorized in subdivisions 1 and 2 will terminate 
42.15 	at the earlier of (1) when an additional $32,000,000, plus an amount equal to interest and 
42.16 	issuance costs associated with bonds issued under subdivision 4, paragraph (b), above the 
42.17 	amount authorized under paragraph (a), is raised, or (2) December 31, 2031.

42.18 	EFFECTIVE DATE. This section is effective the day after the governing body of 
42.19 	the city of Baxter and its chief clerical officer comply with Minnesota Statutes, section 
42.20 	645.021, subdivisions 2 and 3.

42.21 	Sec. 27. Laws 2006, chapter 259, article 3, section 11, subdivision 3, is amended to read:
42.22 		Subd. 3.Use of revenues. (a) Revenues received from the taxes authorized by 
42.23 	subdivisions 1 and 2 must be used to pay the cost of collecting and administering the tax 
42.24 	and to finance all or part of the costs of constructing upgraded water and wastewater 
42.25 	treatment facilities to serve the cities of Brainerd and Baxter, water infrastructure 
42.26 	improvements, and trail development, contingent on approval by Brainerd voters at the 
42.27 	November 7, 2006, referendum. Authorized costs include, but are not limited to, acquiring 
42.28 	property and paying construction and engineering costs related to the projects.
42.29 	(b) In addition to the projects authorized in paragraph (a), the city of Brainerd may, 
42.30 	if approved by the voters at an election under subdivision 5, paragraph (b), spend up to an 
42.31 	additional $15,000,000 from revenues raised from the taxes authorized in subdivisions 1 
42.32 	and 2 on the following projects:
42.33 	(1) an upgraded waste treatment facility jointly serving the cities of Brainerd and 
42.34 	Baxter;
43.1 	(2) with any funds not needed for the project in clause (1), water infrastructure 
43.2 	improvements; and
43.3 	(3) with any funds not needed for the projects in clauses (1) and (2), trail 
43.4 	improvements.

43.5 	EFFECTIVE DATE. This section is effective the day after the governing body of 
43.6 	the city of Brainerd and its chief clerical officer comply with Minnesota Statutes, section 
43.7 	645.021, subdivisions 2 and 3.

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

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

43.18 	Sec. 29. Laws 2006, chapter 259, article 3, section 11, subdivision 5, is amended to read:
43.19 		Subd. 5.Termination of taxes. (a) The taxes imposed under subdivisions 1 and 
43.20 	2 expire at the earlier of a date 12 years after the imposition of the tax or when the city 
43.21 	council first determines that the amount of revenues raised from the taxes to pay for 
43.22 	projects under subdivision 3 equals or exceeds $22,030,000 plus any interest on bonds 
43.23 	issued for the projects under subdivision 4. Any funds remaining after the expiration of 
43.24 	the taxes and retirement of the bonds shall be placed in a capital project fund of the city of 
43.25 	Brainerd. The taxes imposed under subdivision 1 and 2 may expire at an earlier time if the 
43.26 	city of Brainerd so determines by ordinance.
43.27 	(b) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any 
43.28 	other contrary provision of law, ordinance, or city charter, the city of Brainerd may, by 
43.29 	ordinance, extend the taxes authorized under subdivisions 1 and 2 beyond the termination 
43.30 	date in paragraph (a) if approved by the voters of the city at a general election held in 2014. 
43.31 	The question put to the voters must indicate that an affirmative vote would extend the 
43.32 	imposition of the taxes for an additional 12 years or until an additional $15,000,000 above 
43.33 	the initial amount authorized to pay for $22,030,000 in bonds is raised. If extended under 
44.1 	this paragraph, the taxes authorized in subdivisions 1 and 2 will terminate at the earlier of 
44.2 	(1) when an additional $15,000,000 above the amount authorized under paragraph (a) is 
44.3 	raised, or (2) 12 years after the taxes would have expired under paragraph (a).

44.4 	EFFECTIVE DATE. This section is effective the day after the governing body of 
44.5 	the city of Brainerd and its chief clerical officer comply with Minnesota Statutes, section 
44.6 	645.021, subdivisions 2 and 3.

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

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

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

44.14 	Sec. 31. VALIDATION OF PRIOR ACT; AUTHORIZATION.
 44.15 	Notwithstanding the time limits in Minnesota Statutes, section 645.021, the city of 
44.16 	Albert Lea may approve Laws 2005, First Special Session chapter 3, article 5, section 38, 
44.17 	as amended by Laws 2006, chapter 259, article 3, section 6, and file its approval with the 
44.18 	secretary of state by June 15, 2014. If approved as authorized under this section, actions 
44.19 	undertaken by the city pursuant to the approval of the voters on November 8, 2005, and 
44.20 	otherwise in accordance with Laws 2005, First Special Session chapter 3, article 5, section 
44.21 	38, as amended by Laws 2006, chapter 259, article 3, section 6, are validated.

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

44.23 	Sec. 32. TEMPORARY SALES TAX AMNESTY; ANIMAL SHELTERS.
 44.24 	(a) Notwithstanding any other law to the contrary, amnesty is provided to any 
44.25 	nonprofit organization that is primarily engaged in the business of rescuing, sheltering, and 
44.26 	finding homes for unwanted animals if the organization registers and begins collecting the 
44.27 	sales and use tax within four months of the day following enactment of this provision. This 
44.28 	amnesty applies to qualifying organizations that are currently not registered to collect the 
44.29 	tax under Minnesota Statutes, chapter 297A, and to qualifying organizations that received 
44.30 	notice of the commencement of an audit and the audit is not yet finally resolved, provided 
44.31 	that the organization was not registered to collect sales and use tax at the time of the audit.
45.1 	(b) The amnesty shall preclude assessment for uncollected and unpaid sales and use 
45.2 	tax under Minnesota Statutes, chapter 297A, and to local taxes subject to Minnesota 
45.3 	Statutes, section 297A.99, together with penalty and interest for sales made during the 
45.4 	period the qualifying organization was not registered in this state. The amnesty also 
45.5 	applies to unpaid use tax on sales made by the organization during the same period. The 
45.6 	amnesty is not available for sales and use taxes already paid or remitted to the state or to 
45.7 	sales taxes already collected by the seller.

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

45.9 	Sec. 33. TEMPORARY SALES TAX AMNESTY; AGRICULTURAL CENTERS.
 45.10 	(a) Notwithstanding any other law to the contrary, amnesty is provided on unpaid 
45.11 	sales tax attributable only to sales of tickets or admissions to a performance or event on 
45.12 	the premises of a tax-exempt organization under section 501(c)(3) of the Internal Revenue 
45.13 	Code, provided that the nonprofit organization is primarily engaged in the business of 
45.14 	preserving Minnesota's rural agricultural heritage and educating the public about rural 
45.15 	history and how farms in Minnesota helped to provide food for the nation and the world, 
45.16 	and begins collecting the sales and use tax on sales of tickets or admissions by July 1, 2014.
45.17 	(b) An organization qualifies for an exemption under this section if:
45.18 	(1) the premises of the organization is at least 115 acres;
45.19 	(2) the performances or events were sponsored and conducted exclusively by 
45.20 	volunteers, employees of the nonprofit organization, or members of the board of directors 
45.21 	of the organization; and
45.22 	(3) the performances or events were consistent with the organization's purposes 
45.23 	under section 501(c)(3) of the Internal Revenue Code.
45.24 	(c) This amnesty applies to qualifying organizations that received notice of the 
45.25 	commencement of an audit and the audit is not yet finally resolved.
45.26 	(d) Amnesty granted under this section precludes assessment for uncollected and 
45.27 	unpaid sales and use tax under Minnesota Statutes, chapter 297A, and to local taxes 
45.28 	subject to Minnesota Statutes, section 297A.99, together with penalty and interest for sales 
45.29 	made during the period beginning December 31, 2008, and ending December 31, 2011. 
45.30 	The amnesty is not available for sales and use taxes already paid or remitted to the state or 
45.31 	to sales taxes already collected by the seller.

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

46.1 	ARTICLE 4
46.2 	INCOME AND ESTATE TAXES

46.3 	Section 1. Minnesota Statutes 2013 Supplement, section 116J.8737, subdivision 2, as 
46.4 	amended by Laws 2014, chapter 150, article 1, section 2, is amended to read:
46.5 		Subd. 2.Certification of qualified small businesses. (a) Businesses may apply 
46.6 	to the commissioner for certification as a qualified small business or qualified greater 
46.7 	Minnesota small business for a calendar year. The application must be in the form 
46.8 	and be made under the procedures specified by the commissioner, accompanied by an 
46.9 	application fee of $150. Application fees are deposited in the small business investment 
46.10 	tax credit administration account in the special revenue fund. The application for 
46.11 	certification for 2010 must be made available on the department's Web site by August 1, 
46.12 	2010. Applications for subsequent years' certification must be made available on the 
46.13 	department's Web site by November 1 of the preceding year.
46.14 	(b) Within 30 days of receiving an application for certification under this subdivision, 
46.15 	the commissioner must either certify the business as satisfying the conditions required 
46.16 	of a qualified small business or qualified greater Minnesota small business, request 
46.17 	additional information from the business, or reject the application for certification. If 
46.18 	the commissioner requests additional information from the business, the commissioner 
46.19 	must either certify the business or reject the application within 30 days of receiving the 
46.20 	additional information. If the commissioner neither certifies the business nor rejects 
46.21 	the application within 30 days of receiving the original application or within 30 days of 
46.22 	receiving the additional information requested, whichever is later, then the application is 
46.23 	deemed rejected, and the commissioner must refund the $150 application fee. A business 
46.24 	that applies for certification and is rejected may reapply.
46.25 	(c) To receive certification as a qualified small business, a business must satisfy 
46.26 	all of the following conditions:
46.27 	(1) the business has its headquarters in Minnesota;
46.28 	(2) at least 51 percent of the business's employees are employed in Minnesota, and 
46.29 	51 percent of the business's total payroll is paid or incurred in the state;
46.30 	(3) the business is engaged in, or is committed to engage in, innovation in Minnesota 
46.31 	in one of the following as its primary business activity:
46.32 	(i) using proprietary technology to add value to a product, process, or service in a 
46.33 	qualified high-technology field;
46.34 	(ii) researching or developing a proprietary product, process, or service in a qualified 
46.35 	high-technology field; or
47.1 	(iii) researching or developing a proprietary product, process, or service in the fields 
47.2 	of agriculture, tourism, forestry, mining, manufacturing, or transportation; or
47.3 	(iii) (iv) researching, developing, or producing a new proprietary technology for use 
47.4 	in the fields of agriculture, tourism, forestry, mining, manufacturing, or transportation;
47.5 	(4) other than the activities specifically listed in clause (3), the business is not 
47.6 	engaged in real estate development, insurance, banking, lending, lobbying, political 
47.7 	consulting, information technology consulting, wholesale or retail trade, leisure, 
47.8 	hospitality, transportation, construction, ethanol production from corn, or professional 
47.9 	services provided by attorneys, accountants, business consultants, physicians, or health 
47.10 	care consultants;
47.11 	(5) the business has fewer than 25 employees;
47.12 	(6) the business must pay its employees annual wages of at least 175 percent of the 
47.13 	federal poverty guideline for the year for a family of four and must pay its interns annual 
47.14 	wages of at least 175 percent of the federal minimum wage used for federally covered 
47.15 	employers, except that this requirement must be reduced proportionately for employees 
47.16 	and interns who work less than full-time, and does not apply to an executive, officer, or 
47.17 	member of the board of the business, or to any employee who owns, controls, or holds 
47.18 	power to vote more than 20 percent of the outstanding securities of the business;
47.19 	(7) the business has (i) not been in operation for more than ten years, or (ii) not 
47.20 	been in operation for more than 20 years if the business is engaged in the research, 
47.21 	development, or production of medical devices or pharmaceuticals for which United 
47.22 	States Food and Drug Administration approval is required for use in the treatment or 
47.23 	diagnosis of a disease or condition;
47.24 	(8) the business has not previously received private equity investments of more 
47.25 	than $4,000,000;
47.26 	(9) the business is not an entity disqualified under section 80A.50, paragraph (b), 
47.27 	clause (3); and
47.28 	(10) the business has not issued securities that are traded on a public exchange.
47.29 	(d) In applying the limit under paragraph (c), clause (5), the employees in all members 
47.30 	of the unitary business, as defined in section 290.17, subdivision 4, must be included.
47.31 	(e) In order for a qualified investment in a business to be eligible for tax credits:
47.32 	(1) the business must have applied for and received certification for the calendar 
47.33 	year in which the investment was made prior to the date on which the qualified investment 
47.34 	was made;
47.35 	(2) the business must not have issued securities that are traded on a public exchange;
48.1 	(3) the business must not issue securities that are traded on a public exchange within 
48.2 	180 days after the date on which the qualified investment was made; and
48.3 	(4) the business must not have a liquidation event within 180 days after the date on 
48.4 	which the qualified investment was made.
48.5 	(f) The commissioner must maintain a list of qualified small businesses and qualified 
48.6 	greater Minnesota businesses certified under this subdivision for the calendar year and 
48.7 	make the list accessible to the public on the department's Web site.
48.8 	(g) For purposes of this subdivision, the following terms have the meanings given:
48.9 	(1) "qualified high-technology field" includes aerospace, agricultural processing, 
48.10 	renewable energy, energy efficiency and conservation, environmental engineering, food 
48.11 	technology, cellulosic ethanol, information technology, materials science technology, 
48.12 	nanotechnology, telecommunications, biotechnology, medical device products, 
48.13 	pharmaceuticals, diagnostics, biologicals, chemistry, veterinary science, and similar fields; 
48.14 	(2) "proprietary technology" means the technical innovations that are unique and 
48.15 	legally owned or licensed by a business and includes, without limitation, those innovations 
48.16 	that are patented, patent pending, a subject of trade secrets, or copyrighted; and
48.17 	(3) "greater Minnesota" means the area of Minnesota located outside of the 
48.18 	metropolitan area as defined in section 473.121, subdivision 2.
48.19 	(h) To receive certification as a qualified greater Minnesota business, a business must 
48.20 	satisfy all of the requirements of paragraph (c) and must satisfy the following conditions:
48.21 	(1) the business has its headquarters in greater Minnesota; and
48.22 	(2) at least 51 percent of the business's employees are employed in greater Minnesota, 
48.23 	and 51 percent of the business's total payroll is paid or incurred in greater Minnesota.

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

48.26 	Sec. 2. Minnesota Statutes 2012, section 116J.8737, is amended by adding a 
48.27 	subdivision to read:
48.28 		Subd. 5a.Promotion of credit in greater Minnesota. (a) By July 1, 2014, 
48.29 	the commissioner shall develop a plan to increase awareness of and use of the credit 
48.30 	for investments in qualified greater Minnesota businesses and minority-owned and 
48.31 	women-owned qualified small businesses with the goal that the portion of the credit 
48.32 	reserved for investments in qualified greater Minnesota businesses and minority-owned 
48.33 	and women-owned qualified small businesses is allocated in full to those investments.
48.34 	(b) Beginning with the legislative report due on March 15, 2015, under subdivision 
48.35 	9, the commissioner shall report on its plan under this subdivision and the results achieved.

49.1 	Sec. 3. Minnesota Statutes 2013 Supplement, section 270B.01, subdivision 8, is 
49.2 	amended to read:
49.3 		Subd. 8.Minnesota tax laws. For purposes of this chapter only, unless expressly 
49.4 	stated otherwise, "Minnesota tax laws" means:
49.5 	(1) the taxes, refunds, and fees administered by or paid to the commissioner under 
49.6 	chapters 115B, 289A (except taxes imposed under sections 298.01, 298.015, and 298.24), 
49.7 	290, 290A, 291, 292, 295, 297A, 297B, 297H, and 403, or any similar Indian tribal tax 
49.8 	administered by the commissioner pursuant to any tax agreement between the state and 
49.9 	the Indian tribal government, and includes any laws for the assessment, collection, and 
49.10 	enforcement of those taxes, refunds, and fees; and
49.11 	(2) section 273.1315.

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

49.13 	Sec. 4. Minnesota Statutes 2013 Supplement, section 270B.03, subdivision 1, is 
49.14 	amended to read:
49.15 		Subdivision 1.Who may inspect. Returns and return information must, on request, 
49.16 	be made open to inspection by or disclosure to the data subject. The request must be made 
49.17 	in writing or in accordance with written procedures of the chief disclosure officer of the 
49.18 	department that have been approved by the commissioner to establish the identification 
49.19 	of the person making the request as the data subject. For purposes of this chapter, the 
49.20 	following are the data subject:
49.21 	(1) in the case of an individual return, that individual;
49.22 	(2) in the case of an income tax return filed jointly, either of the individuals with 
49.23 	respect to whom the return is filed;
49.24 	(3) in the case of a return filed by a business entity, an officer of a corporation, 
49.25 	a shareholder owning more than one percent of the stock, or any shareholder of an S 
49.26 	corporation; a general partner in a partnership; the owner of a sole proprietorship; a 
49.27 	member or manager of a limited liability company; a participant in a joint venture; the 
49.28 	individual who signed the return on behalf of the business entity; or an employee who is 
49.29 	responsible for handling the tax matters of the business entity, such as the tax manager, 
49.30 	bookkeeper, or managing agent;
49.31 	(4) in the case of an estate return:
49.32 	(i) the personal representative or trustee of the estate; and
49.33 	(ii) any beneficiary of the estate as shown on the federal estate tax return;
49.34 	(5) in the case of a trust return:
49.35 	(i) the trustee or trustees, jointly or separately; and
50.1 	(ii) any beneficiary of the trust as shown in the trust instrument;
50.2 	(6) if liability has been assessed to a transferee under section 270C.58, subdivision 
50.3 	1, the transferee is the data subject with regard to the returns and return information 
50.4 	relating to the assessed liability;
50.5 	(7) in the case of an Indian tribal government or an Indian tribal government-owned 
50.6 	entity,
50.7 	(i) the chair of the tribal government, or
50.8 	(ii) any person authorized by the tribal government; and
50.9 	(8) in the case of a successor as defined in section 270C.57, subdivision 1, paragraph 
50.10 	(b), the successor is the data subject and information may be disclosed as provided by 
50.11 	section 270C.57, subdivision 4; and.
50.12 	(9) in the case of a gift return, the donor.

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

50.14 	Sec. 5. Minnesota Statutes 2012, section 289A.02, subdivision 7, as amended by Laws 
50.15 	2014, chapter 150, article 1, section 7, is amended to read:
50.16 		Subd. 7.Internal Revenue Code. Unless specifically defined otherwise, "Internal 
50.17 	Revenue Code" means the Internal Revenue Code of 1986, as amended through December 
50.18 	20, 2013 March 26, 2014.

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

50.21 	Sec. 6. Minnesota Statutes 2013 Supplement, section 290.01, subdivision 19, as 
50.22 	amended by Laws 2014, chapter 150, article 1, section 9, is amended to read:
50.23 		Subd. 19.Net income. The term "net income" means the federal taxable income, 
50.24 	as defined in section 63 of the Internal Revenue Code of 1986, as amended through the 
50.25 	date named in this subdivision, incorporating the federal effective dates of changes to the 
50.26 	Internal Revenue Code and any elections made by the taxpayer in accordance with the 
50.27 	Internal Revenue Code in determining federal taxable income for federal income tax 
50.28 	purposes, and with the modifications provided in subdivisions 19a to 19f.
50.29 	In the case of a regulated investment company or a fund thereof, as defined in section 
50.30 	851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment 
50.31 	company taxable income as defined in section 852(b)(2) of the Internal Revenue Code, 
50.32 	except that:
51.1 	(1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal 
51.2 	Revenue Code does not apply;
51.3 	(2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal 
51.4 	Revenue Code must be applied by allowing a deduction for capital gain dividends and 
51.5 	exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal 
51.6 	Revenue Code; and
51.7 	(3) the deduction for dividends paid must also be applied in the amount of any 
51.8 	undistributed capital gains which the regulated investment company elects to have treated 
51.9 	as provided in section 852(b)(3)(D) of the Internal Revenue Code.
51.10 	The net income of a real estate investment trust as defined and limited by section 
51.11 	856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust 
51.12 	taxable income as defined in section 857(b)(2) of the Internal Revenue Code.
51.13 	The net income of a designated settlement fund as defined in section 468B(d) of 
51.14 	the Internal Revenue Code means the gross income as defined in section 468B(b) of the 
51.15 	Internal Revenue Code.
51.16 	The Internal Revenue Code of 1986, as amended through December 20, 2013 March 
51.17 	26, 2014, shall be in effect for taxable years beginning after December 31, 1996.
51.18 	Except as otherwise provided, references to the Internal Revenue Code in 
51.19 	subdivisions 19 to 19f mean the code in effect for purposes of determining net income for 
51.20 	the applicable year.

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

51.24 	Sec. 7. Minnesota Statutes 2013 Supplement, section 290.01, subdivision 19b, as 
51.25 	amended by Laws 2014, chapter 150, article 1, section 11, is amended to read:
51.26 		Subd. 19b.Subtractions from federal taxable income. For individuals, estates, 
51.27 	and trusts, there shall be subtracted from federal taxable income:
51.28 	(1) net interest income on obligations of any authority, commission, or 
51.29 	instrumentality of the United States to the extent includable in taxable income for federal 
51.30 	income tax purposes but exempt from state income tax under the laws of the United States;
51.31 	(2) if included in federal taxable income, the amount of any overpayment of income 
51.32 	tax to Minnesota or to any other state, for any previous taxable year, whether the amount 
51.33 	is received as a refund or as a credit to another taxable year's income tax liability;
51.34 	(3) the amount paid to others, less the amount used to claim the credit allowed under 
51.35 	section 290.0674, not to exceed $1,625 for each qualifying child in grades kindergarten 
52.1 	to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and 
52.2 	transportation of each qualifying child in attending an elementary or secondary school 
52.3 	situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a 
52.4 	resident of this state may legally fulfill the state's compulsory attendance laws, which 
52.5 	is not operated for profit, and which adheres to the provisions of the Civil Rights Act 
52.6 	of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or 
52.7 	tuition as defined in section 290.0674, subdivision 1, clause (1). As used in this clause, 
52.8 	"textbooks" includes books and other instructional materials and equipment purchased 
52.9 	or leased for use in elementary and secondary schools in teaching only those subjects 
52.10 	legally and commonly taught in public elementary and secondary schools in this state. 
52.11 	Equipment expenses qualifying for deduction includes expenses as defined and limited in 
52.12 	section 290.0674, subdivision 1, clause (3). "Textbooks" does not include instructional 
52.13 	books and materials used in the teaching of religious tenets, doctrines, or worship, the 
52.14 	purpose of which is to instill such tenets, doctrines, or worship, nor does it include books 
52.15 	or materials for, or transportation to, extracurricular activities including sporting events, 
52.16 	musical or dramatic events, speech activities, driver's education, or similar programs. No 
52.17 	deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or 
52.18 	the qualifying child's vehicle to provide such transportation for a qualifying child. For 
52.19 	purposes of the subtraction provided by this clause, "qualifying child" has the meaning 
52.20 	given in section 32(c)(3) of the Internal Revenue Code;
52.21 	(4) income as provided under section 290.0802;
52.22 	(5) to the extent included in federal adjusted gross income, income realized on 
52.23 	disposition of property exempt from tax under section 290.491;
52.24 	(6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E) 
52.25 	of the Internal Revenue Code in determining federal taxable income by an individual 
52.26 	who does not itemize deductions for federal income tax purposes for the taxable year, an 
52.27 	amount equal to 50 percent of the excess of charitable contributions over $500 allowable 
52.28 	as a deduction for the taxable year under section 170(a) of the Internal Revenue Code, 
52.29 	under the provisions of Public Law 109-1 and Public Law 111-126;
52.30 	(7) for individuals who are allowed a federal foreign tax credit for taxes that do not 
52.31 	qualify for a credit under section 290.06, subdivision 22, an amount equal to the carryover 
52.32 	of subnational foreign taxes for the taxable year, but not to exceed the total subnational 
52.33 	foreign taxes reported in claiming the foreign tax credit. For purposes of this clause, 
52.34 	"federal foreign tax credit" means the credit allowed under section 27 of the Internal 
52.35 	Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed 
53.1 	under section 904(c) of the Internal Revenue Code minus national level foreign taxes to 
53.2 	the extent they exceed the federal foreign tax credit;
53.3 	(8) in each of the five tax years immediately following the tax year in which an 
53.4 	addition is required under subdivision 19a, clause (7), or 19c, clause (12), in the case of a 
53.5 	shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the 
53.6 	delayed depreciation. For purposes of this clause, "delayed depreciation" means the amount 
53.7 	of the addition made by the taxpayer under subdivision 19a, clause (7), or subdivision 19c, 
53.8 	clause (12), in the case of a shareholder of an S corporation, minus the positive value of 
53.9 	any net operating loss under section 172 of the Internal Revenue Code generated for the 
53.10 	tax year of the addition. The resulting delayed depreciation cannot be less than zero;
53.11 	(9) job opportunity building zone income as provided under section 469.316;
53.12 	(10) to the extent included in federal taxable income, the amount of compensation 
53.13 	paid to members of the Minnesota National Guard or other reserve components of 
53.14 	the United States military for active service, excluding including compensation for 
53.15 	services performed under the Active Guard Reserve (AGR) program. For purposes of 
53.16 	this clause, "active service" means (i) state active service as defined in section 190.05, 
53.17 	subdivision 5a, clause (1); or (ii) federally funded state active service as defined in section 
53.18 	190.05, subdivision 5b, butand "active service" excludesincludes service performed in 
53.19 	accordance with section 190.08, subdivision 3;
53.20 	(11) to the extent included in federal taxable income, the amount of compensation 
53.21 	paid to Minnesota residents who are members of the armed forces of the United States 
53.22 	or United Nations for active duty performed under United States Code, title 10; or the 
53.23 	authority of the United Nations;
53.24 	(12) an amount, not to exceed $10,000, equal to qualified expenses related to a 
53.25 	qualified donor's donation, while living, of one or more of the qualified donor's organs 
53.26 	to another person for human organ transplantation. For purposes of this clause, "organ" 
53.27 	means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow; 
53.28 	"human organ transplantation" means the medical procedure by which transfer of a human 
53.29 	organ is made from the body of one person to the body of another person; "qualified 
53.30 	expenses" means unreimbursed expenses for both the individual and the qualified donor 
53.31 	for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses 
53.32 	may be subtracted under this clause only once; and "qualified donor" means the individual 
53.33 	or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An 
53.34 	individual may claim the subtraction in this clause for each instance of organ donation for 
53.35 	transplantation during the taxable year in which the qualified expenses occur;
54.1 	(13) in each of the five tax years immediately following the tax year in which an 
54.2 	addition is required under subdivision 19a, clause (8), or 19c, clause (13), in the case of a 
54.3 	shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the 
54.4 	addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (13), in the 
54.5 	case of a shareholder of a corporation that is an S corporation, minus the positive value of 
54.6 	any net operating loss under section 172 of the Internal Revenue Code generated for the 
54.7 	tax year of the addition. If the net operating loss exceeds the addition for the tax year, a 
54.8 	subtraction is not allowed under this clause;
54.9 	(14) to the extent included in the federal taxable income of a nonresident of 
54.10 	Minnesota, compensation paid to a service member as defined in United States Code, title 
54.11 	10, section 101(a)(5), for military service as defined in the Servicemembers Civil Relief 
54.12 	Act, Public Law 108-189, section 101(2);
54.13 	(15) to the extent included in federal taxable income, the amount of national service 
54.14 	educational awards received from the National Service Trust under United States Code, 
54.15 	title 42, sections 12601 to 12604, for service in an approved Americorps National Service 
54.16 	program;
54.17 	(16) to the extent included in federal taxable income, discharge of indebtedness 
54.18 	income resulting from reacquisition of business indebtedness included in federal taxable 
54.19 	income under section 108(i) of the Internal Revenue Code. This subtraction applies only 
54.20 	to the extent that the income was included in net income in a prior year as a result of the 
54.21 	addition under section 290.01, subdivision 19a, clause (13);
54.22 	(17) the amount of the net operating loss allowed under section 290.095, subdivision 
54.23 	11, paragraph (c); 
54.24 	(18) the amount of expenses not allowed for federal income tax purposes due 
54.25 	to claiming the railroad track maintenance credit under section 45G(a) of the Internal 
54.26 	Revenue Code;
54.27 	(19) the amount of the limitation on itemized deductions under section 68(b) of 
54.28 	the Internal Revenue Code; and
54.29 	(20) the amount of the phaseout of personal exemptions under section 151(d) of 
54.30 	the Internal Revenue Code.; and
54.31 	(21) for taxable years beginning after December 31, 2013, and before January 1, 
54.32 	2015, to the extent included in federal taxable income, discharge of qualified principal 
54.33 	residence indebtedness, as provided in subparagraph (E) of section 108(a)(1) of the 
54.34 	Internal Revenue Code, without regard to whether subparagraph (E) of section 108(a)(1) 
54.35 	of the Internal Revenue Code is in effect for the taxable year.

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

55.3 	Sec. 8. Minnesota Statutes 2013 Supplement, section 290.01, subdivision 31, as 
55.4 	amended by Laws 2014, chapter 150, article 1, section 13, is amended to read:
55.5 		Subd. 31.Internal Revenue Code. Unless specifically defined otherwise, "Internal 
55.6 	Revenue Code" means the Internal Revenue Code of 1986, as amended through December 
55.7 	20, 2013 March 26, 2014. Internal Revenue Code also includes any uncodified provision 
55.8 	in federal law that relates to provisions of the Internal Revenue Code that are incorporated 
55.9 	into Minnesota law. When used in this chapter, the reference to "subtitle A, chapter 1, 
55.10 	subchapter N, part 1, of the Internal Revenue Code" is to the Internal Revenue Code as 
55.11 	amended through March 18, 2010.

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

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

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

55.26 	Sec. 10. Minnesota Statutes 2013 Supplement, section 290.068, subdivision 3, is 
55.27 	amended to read:
55.28 		Subd. 3.Limitation; carryover. (a)(1) The credit for a taxable year beginning 
55.29 	before January 1, 2010, and after December 31, 2012, and before January 1, 2016, shall not 
55.30 	exceed the liability for tax. "Liability for tax" for purposes of this section means the sum of 
55.31 	the tax imposed under section 290.06, subdivisions 1 and 2c, for the taxable year reduced 
55.32 	by the sum of the nonrefundable credits allowed under this chapter, on all of the entities 
56.1 	required to be included on the combined report of the unitary business. If the amount of 
56.2 	the credit allowed exceeds the liability for tax of the taxpayer, but is allowed as a result of 
56.3 	the liability for tax of other members of the unitary group for the taxable year, the taxpayer 
56.4 	must allocate the excess as a research credit to another member of the unitary group.
56.5 	(2) In the case of a corporation which is a partner in a partnership, the credit allowed 
56.6 	for the taxable year shall not exceed the lesser of the amount determined under clause (1) 
56.7 	for the taxable year or an amount (separately computed with respect to the corporation's 
56.8 	interest in the trade or business or entity) equal to the amount of tax attributable to that 
56.9 	portion of taxable income which is allocable or apportionable to the corporation's interest 
56.10 	in the trade or business or entity.
56.11 	(b) If the amount of the credit determined under this section for any taxable year 
56.12 	exceeds the limitation under clause (a) including amounts allocated to other members 
56.13 	of the unitary group, the excess shall be a research credit carryover to each of the 15 
56.14 	succeeding taxable years. The entire amount of the excess unused credit for the taxable 
56.15 	year shall be carried first to the earliest of the taxable years to which the credit may be 
56.16 	carried and then to each successive year to which the credit may be carried. The amount 
56.17 	of the unused credit which may be added under this clause shall not exceed the taxpayer's 
56.18 	liability for tax less the research credit for the taxable year.

56.19 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
56.20 	December 31, 2015.

56.21 	Sec. 11. Minnesota Statutes 2013 Supplement, section 290.068, subdivision 6a, 
56.22 	is amended to read:
56.23 		Subd. 6a.Credit to be refundable. If the amount of credit allowed in this section 
56.24 	for qualified research expenses incurred in taxable years beginning after December 31, 
56.25 	2009, and before January 1, 2013, or after December 31, 2015, exceeds the taxpayer's 
56.26 	tax liability under this chapter, the commissioner shall refund the excess amount. The 
56.27 	credit allowed for qualified research expenses incurred in taxable years beginning after 
56.28 	December 31, 2009, and before January 1, 2013, must be used before any research credit 
56.29 	earned under subdivision 3.

56.30 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
56.31 	December 31, 2015.

56.32 	Sec. 12. [290.0684] STUDENT LOAN CREDIT.
57.1 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms 
57.2 	have the meanings given.
57.3 	(b) "Eligible individual" means an individual who:
57.4 	(i) is a Minnesota resident;
57.5 	(ii) began a degree program at a postsecondary educational institution in August 
57.6 	2010 or later; and
57.7 	(iii) is a first-generation college student.
57.8 	(c) "First-generation college student"  means an individual neither of whose parents 
57.9 	completed a two- or four-year postsecondary degree.
57.10 	(d) "Postsecondary educational institution" means a public postsecondary institution 
57.11 	or a private, nonprofit, degree-granting institution.
57.12 	(e) "Qualified education loan" has the meaning given in section 221 of the Internal 
57.13 	Revenue Code, but is limited to indebtedness incurred:
57.14 	(1) through a federal subsidized Perkins or Stafford loan;
57.15 	(2) on behalf of the taxpayer or taxpayer's spouse; and
57.16 	(3) to pay tuition and fees for academic year 2010-2011 or later.
57.17 		Subd. 2.Credit allowed. (a) An eligible individual is allowed a credit against the 
57.18 	tax due under this chapter.
57.19 	(b) The credit amount equals the lesser of:
57.20 	(1) the amount the individual paid during the taxable year to pay principal and 
57.21 	interest on qualified education loans; or
57.22 	(2) $500.
57.23 		Subd. 3.Credit refundable. If the amount of credit which a taxpayer is eligible 
57.24 	to receive under this section exceeds the taxpayer's tax liability under this chapter, the 
57.25 	commissioner shall refund the excess to the taxpayer.
57.26 		Subd. 4.Appropriation. An amount sufficient to pay the refunds required by this 
57.27 	section is appropriated to the commissioner from the general fund.
57.28 		Subd. 5.Delayed payment of tax year 2013 and 2014 credits. For amounts 
57.29 	paid in principal and interest on qualified education loans in taxable years beginning 
57.30 	after December 31, 2012, and before January 1, 2015, the individual may claim the 
57.31 	corresponding credits in the taxable year beginning after December 31, 2014, and before 
57.32 	January 1, 2016, but not earlier. Credits claimed for taxable years beginning after 
57.33 	December 31, 2012, and before January 1, 2015, are in addition to any credit allowed for 
57.34 	the taxable year beginning after December 31, 2014, and before January 1, 2016.

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

58.1 	Sec. 13. Minnesota Statutes 2013 Supplement, section 290.091, subdivision 2, as 
58.2 	amended by Laws 2014, chapter 150, article 1, section 21, is amended to read:
58.3 		Subd. 2.Definitions. For purposes of the tax imposed by this section, the following 
58.4 	terms have the meanings given:
58.5 	(a) "Alternative minimum taxable income" means the sum of the following for 
58.6 	the taxable year:
58.7 	(1) the taxpayer's federal alternative minimum taxable income as defined in section 
58.8 	55(b)(2) of the Internal Revenue Code;
58.9 	(2) the taxpayer's itemized deductions allowed in computing federal alternative 
58.10 	minimum taxable income, but excluding:
58.11 	(i) the charitable contribution deduction under section 170 of the Internal Revenue 
58.12 	Code;
58.13 	(ii) the medical expense deduction;
58.14 	(iii) the casualty, theft, and disaster loss deduction; and
58.15 	(iv) the impairment-related work expenses of a disabled person;
58.16 	(3) for depletion allowances computed under section 613A(c) of the Internal 
58.17 	Revenue Code, with respect to each property (as defined in section 614 of the Internal 
58.18 	Revenue Code), to the extent not included in federal alternative minimum taxable income, 
58.19 	the excess of the deduction for depletion allowable under section 611 of the Internal 
58.20 	Revenue Code for the taxable year over the adjusted basis of the property at the end of the 
58.21 	taxable year (determined without regard to the depletion deduction for the taxable year);
58.22 	(4) to the extent not included in federal alternative minimum taxable income, the 
58.23 	amount of the tax preference for intangible drilling cost under section 57(a)(2) of the 
58.24 	Internal Revenue Code determined without regard to subparagraph (E);
58.25 	(5) to the extent not included in federal alternative minimum taxable income, the 
58.26 	amount of interest income as provided by section 290.01, subdivision 19a, clause (1); and
58.27 	(6) the amount of addition required by section 290.01, subdivision 19a, clauses (7) 
58.28 	to (9), and (11) to (14);
58.29 	less the sum of the amounts determined under the following:
58.30 	(1) interest income as defined in section 290.01, subdivision 19b, clause (1);
58.31 	(2) an overpayment of state income tax as provided by section 290.01, subdivision 
58.32 	19b, clause (2), to the extent included in federal alternative minimum taxable income;
58.33 	(3) the amount of investment interest paid or accrued within the taxable year on 
58.34 	indebtedness to the extent that the amount does not exceed net investment income, as 
58.35 	defined in section 163(d)(4) of the Internal Revenue Code. Interest does not include 
58.36 	amounts deducted in computing federal adjusted gross income;
59.1 	(4) amounts subtracted from federal taxable income as provided by section 290.01, 
59.2 	subdivision 19b, clauses (6), (8) to (14), and (16), and (21); and
59.3 	(5) the amount of the net operating loss allowed under section 290.095, subdivision 
59.4 	11, paragraph (c).
59.5 	In the case of an estate or trust, alternative minimum taxable income must be 
59.6 	computed as provided in section 59(c) of the Internal Revenue Code.
59.7 	(b) "Investment interest" means investment interest as defined in section 163(d)(3) 
59.8 	of the Internal Revenue Code.
59.9 	(c) "Net minimum tax" means the minimum tax imposed by this section.
59.10 	(d) "Regular tax" means the tax that would be imposed under this chapter (without 
59.11 	regard to this section and section 290.032), reduced by the sum of the nonrefundable 
59.12 	credits allowed under this chapter.
59.13 	(e) "Tentative minimum tax" equals 6.75 percent of alternative minimum taxable 
59.14 	income after subtracting the exemption amount determined under subdivision 3.

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

59.17 	Sec. 14. Minnesota Statutes 2013 Supplement, section 290A.03, subdivision 15, as 
59.18 	amended by Laws 2014, chapter 150, article 1, section 22, is amended to read:
59.19 		Subd. 15.Internal Revenue Code.  "Internal Revenue Code" means the Internal 
59.20 	Revenue Code of 1986, as amended through December 20, 2013 March 26, 2014.

59.21 	EFFECTIVE DATE. This section is effective retroactively for property tax refunds 
59.22 	based on property taxes payable after December 31, 2013, and rent paid after December 
59.23 	31, 2012.

59.24 	Sec. 15. Minnesota Statutes 2013 Supplement, section 291.005, subdivision 1, as 
59.25 	amended by Laws 2014, chapter 150, article 3, section 3, is amended to read:
59.26 		Subdivision 1.Scope. Unless the context otherwise clearly requires, the following 
59.27 	terms used in this chapter shall have the following meanings:
59.28 	(1) "Commissioner" means the commissioner of revenue or any person to whom the 
59.29 	commissioner has delegated functions under this chapter.
59.30 	(2) "Federal gross estate" means the gross estate of a decedent as required to be valued 
59.31 	and otherwise determined for federal estate tax purposes under the Internal Revenue Code.
59.32 	(3) "Internal Revenue Code" means the United States Internal Revenue Code of 
59.33 	1986, as amended through March 1March 26, 2014.
60.1 	(4) "Minnesota gross estate" means the federal gross estate of a decedent after 
60.2 	(a) excluding therefrom any property included in the estate which has its situs outside 
60.3 	Minnesota, and (b) including any property omitted from the federal gross estate which 
60.4 	is includable in the estate, has its situs in Minnesota, and was not disclosed to federal 
60.5 	taxing authorities.
60.6 	(5) "Nonresident decedent" means an individual whose domicile at the time of 
60.7 	death was not in Minnesota.
60.8 	(6) "Personal representative" means the executor, administrator or other person 
60.9 	appointed by the court to administer and dispose of the property of the decedent. If there 
60.10 	is no executor, administrator or other person appointed, qualified, and acting within this 
60.11 	state, then any person in actual or constructive possession of any property having a situs in 
60.12 	this state which is included in the federal gross estate of the decedent shall be deemed 
60.13 	to be a personal representative to the extent of the property and the Minnesota estate tax 
60.14 	due with respect to the property.
60.15 	(7) "Resident decedent" means an individual whose domicile at the time of death 
60.16 	was in Minnesota.
60.17 	(8) "Situs of property" means, with respect to:
60.18 	(i) real property, the state or country in which it is located;
60.19 	(ii) tangible personal property, the state or country in which it was normally kept 
60.20 	or located at the time of the decedent's death or for a gift of tangible personal property 
60.21 	within three years of death, the state or country in which it was normally kept or located 
60.22 	when the gift was executed; and
60.23 	(iii) a qualified work of art, as defined in section 2503(g)(2) of the Internal Revenue 
60.24 	Code, owned by a nonresident decedent and that is normally kept or located in this state 
60.25 	because it is on loan to an organization, qualifying as exempt from taxation under section 
60.26 	501(c)(3) of the Internal Revenue Code, that is located in Minnesota, the situs of the art is 
60.27 	deemed to be outside of Minnesota, notwithstanding the provisions of item (ii); and
60.28 	(iv) intangible personal property, the state or country in which the decedent was 
60.29 	domiciled at death or for a gift of intangible personal property within three years of death, 
60.30 	the state or country in which the decedent was domiciled when the gift was executed.
60.31 	For a nonresident decedent with an ownership interest in a pass-through entity with 
60.32 	assets that include real or tangible personal property, situs of the real or tangible personal 
60.33 	property, including qualified works of art, is determined as if the pass-through entity does 
60.34 	not exist and the real or tangible personal property is personally owned by the decedent. 
60.35 	If the pass-through entity is owned by a person or persons in addition to the decedent, 
61.1 	ownership of the property is attributed to the decedent in proportion to the decedent's 
61.2 	capital ownership share of the pass-through entity.
61.3 	(9) "Pass-through entity" includes the following:
61.4 	(i) an entity electing S corporation status under section 1362 of the Internal Revenue 
61.5 	Code;
61.6 	(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code;
61.7 	(iii) a single-member limited liability company or similar entity, regardless of 
61.8 	whether it is taxed as an association or is disregarded for federal income tax purposes 
61.9 	under Code of Federal Regulations, title 26, section 301.7701-3; or
61.10 	(iv) a trust to the extent the property is includible in the decedent's federal gross 
61.11 	estate; but excludes
61.12 	(v) an entity whose ownership interest securities are traded on an exchange regulated 
61.13 	by the Securities and Exchange Commission as a national securities exchange under 
61.14 	section 6 of the Securities Exchange Act, United States Code, title 15, section 78f.

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

61.17 	Sec. 16. Laws 2014, chapter 150, article 3, section 4, the effective date, is amended to 
61.18 	read:

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

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

61.22 	Sec. 17. DEFINITION OF TAXABLE GIFT FOR DECEDENTS DYING 
61.23 	BEFORE JANUARY 1, 2014.
 61.24 	For estates of decedents dying before January 1, 2014, "taxable gift" as used by 
61.25 	Minnesota Statutes, section 291.005, subdivision 1, paragraph (4), means a transfer by gift 
61.26 	which is included in taxable gifts for federal gift tax purposes under the following sections 
61.27 	of the Internal Revenue Code: section 529; section 530; section 2501(a)(4); section 2503; 
61.28 	sections 2511 to 2514; and sections 2516 to 2519; less the deductions allowed in sections 
61.29 	2522 to 2524 of the Internal Revenue Code, and after excluding taxable gifts of any 
61.30 	property that has its situs outside Minnesota and including taxable gifts of any property 
61.31 	that has its situs in Minnesota and were not disclosed to federal taxing authorities.

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

62.3 	Sec. 18.  REPEALER.
 62.4 	Laws 2014, chapter 150, article 1, section 17, is repealed.

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

62.7 	ARTICLE 5
62.8 	MINERALS TAXES

62.9 	Section 1. Minnesota Statutes 2012, section 298.75, subdivision 2, is amended to read:
62.10 		Subd. 2.Tax imposed. (a) Except as provided in paragraph (e), a county that 
62.11 	imposes the aggregate production tax shall impose upon every operator a production tax 
62.12 	of 21.5 cents per cubic yard or 15 cents per ton of aggregate material excavated in the 
62.13 	county except that the county board may decide not to impose this tax if it determines 
62.14 	that in the previous year operators removed less than 20,000 tons or 14,000 cubic yards of 
62.15 	aggregate material from that county. The tax shall not be imposed on aggregate material 
62.16 	excavated in the county until the aggregate material is transported from the extraction site 
62.17 	or sold, whichever occurs first. When aggregate material is stored in a stockpile within the 
62.18 	state of Minnesota and a public highway, road or street is not used for transporting the 
62.19 	aggregate material, the tax shall not be imposed until either when the aggregate material 
62.20 	is sold, or when it is transported from the stockpile site, or when it is used from the 
62.21 	stockpile, whichever occurs first.
62.22 	(b) Except as provided in paragraph (e), a county that imposes the aggregate 
62.23 	production tax under paragraph (a) shall impose upon every importer a production tax 
62.24 	of 21.5 cents per cubic yard or 15 cents per ton of aggregate material imported into the 
62.25 	county. The tax shall be imposed when the aggregate material is imported from the 
62.26 	extraction site or sold. When imported aggregate material is stored in a stockpile within 
62.27 	the state of Minnesota and a public highway, road, or street is not used for transporting 
62.28 	the aggregate material, the tax shall be imposed either when the aggregate material is 
62.29 	sold, when it is transported from the stockpile site, or when it is used from the stockpile, 
62.30 	whichever occurs first. The tax shall be imposed on an importer when the aggregate 
62.31 	material is imported into the county that imposes the tax.
62.32 	(c) If the aggregate material is transported directly from the extraction site to a 
62.33 	waterway, railway, or another mode of transportation other than a highway, road or street, 
63.1 	the tax imposed by this section shall be apportioned equally between the county where the 
63.2 	aggregate material is extracted and the county to which the aggregate material is originally 
63.3 	transported. If that destination is not located in Minnesota, then the county where the 
63.4 	aggregate material was extracted shall receive all of the proceeds of the tax.
63.5 	(d) A county, city, or town that receives revenue under this section is prohibited 
63.6 	from imposing any additional host community fees on aggregate production within that 
63.7 	county, city, or town.
63.8 	(e) A county that borders two other states and that is not contiguous to a county 
63.9 	that imposes a tax under this section may impose the taxes under paragraphs (a) and (b) 
63.10 	at the rate of ten cents per cubic yard or seven cents per ton. This paragraph expires 
63.11 	December 31, 2014.

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

63.13 	Sec. 2. Laws 2008, chapter 366, article 10, section 15, is amended to read:
63.14 	Sec. 15. 2008 DISTRIBUTIONS ONLY.
 63.15 	For distribution in 2008 only, a special fund is established to receive 11.4 cents per ton 
63.16 	that otherwise would be allocated under Minnesota Statutes, section 298.28, subdivision 6. 
63.17 	If sufficient funds are not available under Minnesota Statutes, section 298.28, subdivision 
63.18 	6, to make the payments required under this section and under Minnesota Statutes, section 
63.19 	298.28, subdivision 6, the remaining amount needed to total 11.4 cents per ton may be 
63.20 	taken from funds available under Minnesota Statutes, section 298.28, subdivision 9. If 
63.21 	2008 H.F. No. 1812 is enacted and includes a provision that distributes funds that would 
63.22 	otherwise be allocated under Minnesota Statutes, section 298.28, subdivision 6, in a 
63.23 	manner different from the distribution required in this section, the distribution in this 
63.24 	section supersedes the distribution set in 2008 H.F. No. 1812 notwithstanding Minnesota 
63.25 	Statutes, section 645.26. The following amounts are allocated to St. Louis County acting 
63.26 	as the fiscal agent for the recipients for the following specified purposes:
63.27 	(1) two cents per ton must be paid to the Hibbing Economic Development Authority 
63.28 	to retire bonds and for economic development purposes;
63.29 	(2) one cent per ton must be divided among and paid in equal shares to each of the 
63.30 	board of St. Louis County School District No. 2142, the board of Ely School District No. 
63.31 	696, the board of Mountain Iron-Buhl School District No. 712, and the board of Virginia 
63.32 	School District No. 706 for each to study the potential for and impact of consolidation 
63.33 	and streamlining the operations of their school districts;
63.34 	(3) 0.25 cent per ton must be paid to the city of Grand Rapids, for industrial park work;
64.1 	(4) 0.65 cent per ton must be paid to the city of Aitkin, for sewer and water for 
64.2 	housing economic development projects;
64.3 	(5) 0.5 cent per ton must be paid to the city of Crosby, for well and water tower 
64.4 	infrastructure;
64.5 	(6) 0.5 cent per ton must be paid to the city of Two Harbors, for well and water 
64.6 	tower infrastructure;
64.7 	(7) 1.5 cents per ton must be paid to the city of Silver Bay to pay for health and 
64.8 	safety and maintenance improvements at a former elementary school building that is 
64.9 	currently owned by the city, to be used for economic development purposes;
64.10 	(8) 1.5 cents per ton must be paid to St. Louis County to extend water and sewer 
64.11 	lines from the city of Chisholm to the St. Louis County fairgrounds;
64.12 	(9) 1.5 cents per ton must be paid to the White Community Hospital for debt 
64.13 	restructuring;
64.14 	(10) 0.5 cent per ton must be paid to the city of Keewatin for street, sewer, and 
64.15 	water improvements;
64.16 	(11) 0.5 cent per ton must be paid to the city of Calumet for street, sewer, and water 
64.17 	improvements; and
64.18 	(12) one cent per ton must be paid to Breitung township for sewer and water 
64.19 	extensions associated with the development of a state park, provided that if a new state 
64.20 	park is not established in Breitung township by July 1, 2009, the money provided in 
64.21 	this clause must be transferred to the northeast Minnesota economic development fund 
64.22 	established in Minnesota Statutes, section 298.2213.

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

64.26 	Sec. 3. Laws 2013, chapter 143, article 11, section 10, is amended to read:
64.27 	Sec. 10. 2013 DISTRIBUTION ONLY.
 64.28 	For the 2013 distribution, a special fund is established to receive 38.7 cents per ton of 
64.29 	any excess of the balance remaining after distribution of amounts required under Minnesota 
64.30 	Statutes, section 298.28, subdivision 6. The following amounts are allocated to St. Louis 
64.31 	County acting as the fiscal agent for the recipients for the following specific purposes:
64.32 	(1) 5.1 cents per ton to the city of Hibbing for improvements to the city's water 
64.33 	supply system;
64.34 	(2) 4.3 cents per ton to the city of Mountain Iron for the cost of moving utilities 
64.35 	required as a result of actions undertaken by United States Steel Corporation;
65.1 	(3) 2.5 cents per ton to the city of Biwabik for improvements to the city's water supply 
65.2 	system, payable upon agreement with ArcelorMittal to satisfy water permit conditions;
65.3 	(4) 2 cents per ton to the city of Tower for the Tower Marina;
65.4 	(5) 2.4 cents per ton to the city of Grand Rapids for an eco-friendly heat transfer 
65.5 	system to replace aging effluent lines and for parking lot repaving;
65.6 	(6) 2.4 cents per ton to the city of Two Harbors for wastewater treatment plant 
65.7 	improvements;
65.8 	(7) 0.9 cents per ton to the city of Ely for the sanitary sewer replacement project;
65.9 	(8) 0.6 cents per ton to the town of Crystal Bay for debt service of the Claire Nelson 
65.10 	Intermodal Transportation Center;
65.11 	(9) 0.5 cents per ton to the Greenway Joint Recreation Board for the Coleraine 
65.12 	hockey arena renovations;
65.13 	(10) 1.2 cents per ton for the West Range Regional Fire Hall and Training Center 
65.14 	to merge the existing fire services of Coleraine, Bovey, Taconite Marble, Calumet, and 
65.15 	Greenway Township;
65.16 	(11) 2.5 cents per ton to the city of Hibbing for the Memorial Building;
65.17 	(12) 0.7 cents per ton to the city of Chisholm for public works infrastructure;
65.18 	(13) 1.8 cents per ton to the Crane Lake Water and Sanitary District for sanitary 
65.19 	sewer extension;
65.20 	(14) 2.5 cents per ton for the city of Buhl for the roof on the Mesabi Academy;
65.21 	(15) 1.2 cents per ton to the city of Gilbert for the New Jersey/Ohio Avenue project;
65.22 	(16) 1.5 2.0 cents per ton to the city of Cook for street improvements, business park 
65.23 	infrastructure, and a maintenance garage;
65.24 	(17) 0.5 cents per ton to the city of Cook for a water line project;
65.25 	(18) (17) 1.8 cents per ton to the city of Eveleth to be used for Jones Street 
65.26 	reconstruction and the city auditorium;
65.27 	(19) (18) 0.5 cents per ton for the city of Keewatin for an electrical substation and 
65.28 	water line replacements;
65.29 	(20) (19) 3.3 cents per ton for the city of Virginia for Fourth Street North 
65.30 	infrastructure and Franklin Park improvement; and
65.31 	(21) (20) 0.5 cents per ton to the city of Grand Rapids for an economic development 
65.32 	project.

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

66.1 	ARTICLE 6
66.2 	LOCAL DEVELOPMENT

66.3 	Section 1. [383A.155] HOUSING IMPROVEMENT AREAS.
66.4 		Subdivision 1.Powers of a housing improvement authority. The Ramsey County 
66.5 	Housing and Redevelopment Authority shall have the powers of a city under sections 
66.6 	428A.11 to 428A.21 to establish housing improvement areas in Ramsey County.
66.7 		Subd. 2.Definitions. (a) For purposes of exercising the powers in sections 428A.11 
66.8 	to 428A.21, references in those sections to the terms in paragraphs (b) to (e) have the 
66.9 	meanings given them for purposes of this section.
66.10 	(b) "Mayor" means the chair of the Ramsey County Housing and Redevelopment 
66.11 	Authority.
66.12 	(c) "Council" or "governing body of the city" means the Ramsey County Housing 
66.13 	and Redevelopment Authority.
66.14 	(d) "City clerk" means the person designated by the Ramsey County Housing and 
66.15 	Redevelopment Authority to carry out the duties of the city clerk under sections 428A.11 
66.16 	to 428A.21.
66.17 	(e) "Enabling ordinance" means a resolution adopted under subdivision 3 by the 
66.18 	Ramsey County Housing and Redevelopment Authority.
66.19 		Subd. 3.Establishment of housing improvement areas. The Ramsey County 
66.20 	Housing and Redevelopment Authority may adopt a resolution establishing one or 
66.21 	more housing improvement areas within the county under this section. The Ramsey 
66.22 	County Housing and Redevelopment Authority shall send a copy of each petition for the 
66.23 	establishment of a housing improvement area to the city in which the proposed housing 
66.24 	improvement area is located. The public hearings under sections 428A.13 and 428A.14 
66.25 	may be held at the times and places determined by the Ramsey County Housing and 
66.26 	Redevelopment Authority, except that they must be held at least 30 days after the date the 
66.27 	applicable petition was sent to the city. If the city council adopts a resolution opposing 
66.28 	the establishment within 30 days of the date the copy of the petition was sent to the city 
66.29 	under this subdivision, the Ramsey County Housing and Redevelopment Authority may 
66.30 	not establish the proposed housing improvement area.
66.31 		Subd. 4.Applicability. Except as otherwise provided in this section, sections 
66.32 	428A.11 to 428A.21 apply to the establishment of a housing improvement area by the 
66.33 	Ramsey County Housing and Redevelopment Authority.

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

67.1 	Sec. 2. Minnesota Statutes 2012, section 383D.41, is amended by adding a subdivision 
67.2 	to read:
67.3 		Subd. 11.Tax credit allocation threshold criteria. (a) In addition to the projects 
67.4 	described in section 462A.222, subdivision 3, paragraph (d), the Dakota County 
67.5 	Community Development Agency may allocate tax credits in the first round for up to three 
67.6 	projects of the following type: new construction or substantial rehabilitation multifamily 
67.7 	housing projects that are not restricted to persons who are 55 years of age or older and that 
67.8 	are located within one of the following areas at the time a reservation for tax credits is made:
67.9 	(1) an area within one-half mile of a completed or planned light rail transit way, bus 
67.10 	rapid transit way, or commuter rail station;
67.11 	(2) an area within one-fourth mile from any spot along a high-frequency local bus line;
67.12 	(3) an area within one-half mile from a bus stop or station on a high-frequency 
67.13 	express route;
67.14 	(4) an area within one-half mile from a park and ride lot; or
67.15 	(5) an area within one-fourth mile of a high-service public transportation fixed 
67.16 	route stop.
67.17 	(b) For purposes of this section, the following terms have the meaning given them:
67.18 	(1) "high-frequency local bus line" means a local bus route providing service at 
67.19 	least every 15 minutes and running between 6:00 a.m. and 7:00 p.m. on weekdays and 
67.20 	between 9:00 a.m. and 6:00 p.m. on Saturdays;
67.21 	(2) "high-frequency express route" means an express route with bus service 
67.22 	providing six or more trips during at least one of the peak morning hours between 6:00 
67.23 	a.m. and 9:00 a.m. and every ten minutes during the peak morning hour; and
67.24 	(3) "high-service public transportation fixed route stop" means a stop serviced 
67.25 	between 6:00 a.m. and 7:00 p.m. on weekdays and 9:00 a.m. and 6:00 p.m. on Saturdays 
67.26 	and with service approximately every 30 minutes during that time.

67.27 	EFFECTIVE DATE. This section is effective beginning with the 2015 allocation of 
67.28 	tax credit.

67.29 	Sec. 3. Minnesota Statutes 2012, section 469.1763, subdivision 3, is amended to read:
67.30 		Subd. 3.Five-year rule. (a) Revenues derived from tax increments are considered 
67.31 	to have been expended on an activity within the district under subdivision 2 only if one 
67.32 	of the following occurs:
67.33 	(1) before or within five years after certification of the district, the revenues are 
67.34 	actually paid to a third party with respect to the activity;
68.1 	(2) bonds, the proceeds of which must be used to finance the activity, are issued and 
68.2 	sold to a third party before or within five years after certification, the revenues are spent 
68.3 	to repay the bonds, and the proceeds of the bonds either are, on the date of issuance, 
68.4 	reasonably expected to be spent before the end of the later of (i) the five-year period, or 
68.5 	(ii) a reasonable temporary period within the meaning of the use of that term under section 
68.6 	148(c)(1) of the Internal Revenue Code, or are deposited in a reasonably required reserve 
68.7 	or replacement fund;
68.8 	(3) binding contracts with a third party are entered into for performance of the 
68.9 	activity before or within five years after certification of the district and the revenues are 
68.10 	spent under the contractual obligation;
68.11 	(4) costs with respect to the activity are paid before or within five years after 
68.12 	certification of the district and the revenues are spent to reimburse a party for payment 
68.13 	of the costs, including interest on unreimbursed costs; or
68.14 	(5) expenditures are made for housing purposes as permitted by subdivision 2, 
68.15 	paragraphs (b) and (d), or for public infrastructure purposes within a zone as permitted 
68.16 	by subdivision 2, paragraph (e).
68.17 	(b) For purposes of this subdivision, bonds include subsequent refunding bonds if 
68.18 	the original refunded bonds meet the requirements of paragraph (a), clause (2).
68.19 	(c) For a redevelopment district or a renewal and renovation district certified after 
68.20 	June 30, 2003, and before April 20, 2009, the five-year periods described in paragraph 
68.21 	(a) are extended to (1) ten years after certification of the district or (2) June 30, 2017, 
68.22 	whichever is later. This extension is provided primarily to accommodate delays in 
68.23 	development activities due to unanticipated economic circumstances.

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

68.26 	Sec. 4. Minnesota Statutes 2012, section 469.177, subdivision 3, is amended to read:
68.27 		Subd. 3.Tax increment, relationship to chapters 276A and 473F. (a) Unless the 
68.28 	governing body elects pursuant to paragraph (b) the following method of computation 
68.29 	shall apply to a district other than an economic development district for which the request 
68.30 	for certification was made after June 30, 1997:
68.31 	(1) The original net tax capacity and the current net tax capacity shall be determined 
68.32 	before the application of the fiscal disparity provisions of chapter 276A or 473F. Where 
68.33 	the original net tax capacity is equal to or greater than the current net tax capacity, there is 
68.34 	no captured net tax capacity and no tax increment determination. Where the original net 
68.35 	tax capacity is less than the current net tax capacity, the difference between the original 
69.1 	net tax capacity and the current net tax capacity is the captured net tax capacity. This 
69.2 	amount less any portion thereof which the authority has designated, in its tax increment 
69.3 	financing plan, to share with the local taxing districts is the retained captured net tax 
69.4 	capacity of the authority.
69.5 	(2) The county auditor shall exclude the retained captured net tax capacity of the 
69.6 	authority from the net tax capacity of the local taxing districts in determining local taxing 
69.7 	district tax rates. The local tax rates so determined are to be extended against the retained 
69.8 	captured net tax capacity of the authority as well as the net tax capacity of the local taxing 
69.9 	districts. The tax generated by the extension of the lesser of (A) the local taxing district 
69.10 	tax rates or (B) the original local tax rate to the retained captured net tax capacity of the 
69.11 	authority is the tax increment of the authority.
69.12 	(b) The following method of computation applies to any economic development 
69.13 	district for which the request for certification was made after June 30, 1997, and to any
69.14 	 other district for which the governing body, by resolution approving the tax increment 
69.15 	financing plan pursuant to section 469.175, subdivision 3, elects:
69.16 	(1) The original net tax capacity shall be determined before the application of the 
69.17 	fiscal disparity provisions of chapter 276A or 473F. The current net tax capacity shall 
69.18 	exclude any fiscal disparity commercial-industrial net tax capacity increase between 
69.19 	the original year and the current year multiplied by the fiscal disparity ratio determined 
69.20 	pursuant to section 276A.06, subdivision 7, or 473F.08, subdivision 6. Where the original 
69.21 	net tax capacity is equal to or greater than the current net tax capacity, there is no captured 
69.22 	net tax capacity and no tax increment determination. Where the original net tax capacity is 
69.23 	less than the current net tax capacity, the difference between the original net tax capacity 
69.24 	and the current net tax capacity is the captured net tax capacity. This amount less any 
69.25 	portion thereof which the authority has designated, in its tax increment financing plan, to 
69.26 	share with the local taxing districts is the retained captured net tax capacity of the authority.
69.27 	(2) The county auditor shall exclude the retained captured net tax capacity of the 
69.28 	authority from the net tax capacity of the local taxing districts in determining local taxing 
69.29 	district tax rates. The local tax rates so determined are to be extended against the retained 
69.30 	captured net tax capacity of the authority as well as the net tax capacity of the local taxing 
69.31 	districts. The tax generated by the extension of the lesser of (A) the local taxing district 
69.32 	tax rates or (B) the original local tax rate to the retained captured net tax capacity of the 
69.33 	authority is the tax increment of the authority.
69.34 	(3) An election by the governing body pursuant to paragraph (b) shall be submitted 
69.35 	to the county auditor by the authority at the time of the request for certification pursuant to 
69.36 	subdivision 1.
70.1 	(c) The method of computation of tax increment applied to a district pursuant to 
70.2 	paragraph (a) or (b) shall remain the same for the duration of the district, except that 
70.3 	the governing body may elect to change its election from the method of computation in 
70.4 	paragraph (a) to the method in paragraph (b).

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

70.7 	Sec. 5. Laws 2013, chapter 143, article 9, section 23, is amended to read:
70.8 	Sec. 23. CITY OF BLOOMINGTON; OLD CEDAR AVENUE BRIDGE.
 70.9 	(a) Notwithstanding any law to the contrary, the city of Bloomington shall transfer 
70.10 	from the tax increment financing accounts for its Tax Increment Financing District No. 
70.11 	1-C and Tax Increment Financing District No. 1-G an amount equal to the tax increment 
70.12 	for each district that is computed under the provisions of Minnesota Statutes, section 
70.13 	473F.08, subdivision 3c, for taxes payable in 2014 to an account or fund established for 
70.14 	the repair, restoration, or replacement of the Old Cedar Avenue bridge for use by bicycle 
70.15 	commuters and recreational users. The city is authorized to and must use the transferred 
70.16 	funds to complete the repair, renovation, or replacement of the bridge. Upon completion 
70.17 	of the repair, renovation, or replacement of the bridge, the city may use any remaining 
70.18 	funds in the account for costs of improving bicycle and pedestrian trails that access the 
70.19 	bridge and that use is deemed to be a permitted use of the increments.
70.20 	(b) No signs, plaques, or markers acknowledging or crediting donations for, 
70.21 	sponsorships of, or naming rights may be posted on or in the vicinity of the Old Cedar 
70.22 	Avenue bridge.

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

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

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

71.4 	Sec. 7. CITY OF EDINA; TAX INCREMENT FINANCING.
 71.5 		Subdivision 1.Authority to create districts. (a) The governing body of the city of 
71.6 	Edina or its development authority may establish one or more tax increment financing 
71.7 	housing districts in the Southeast Edina Redevelopment Project Area, as the boundaries 
71.8 	exist on March 31, 2014.
71.9 	(b) The authority to request certification of districts under this section expires on 
71.10 	June 30, 2017.
71.11 		Subd. 2.Rules governing districts. (a) Housing districts established under this 
71.12 	section are subject to the provisions of Minnesota Statutes, sections 469.174 to 469.1794, 
71.13 	except as otherwise provided in this subdivision.
71.14 	(b) Notwithstanding the provisions of Minnesota Statutes, section 469.176, 
71.15 	subdivision 1b, no increment must be paid to the authority after 15 years after receipt by 
71.16 	the authority of the first increment from a district established under this section.
71.17 	(c) Notwithstanding the provisions of Minnesota Statutes, section 469.1761, 
71.18 	subdivision 3, for a residential rental project, the city may elect to substitute "10 percent" 
71.19 	for "40 percent" in the 40-60 test under section 142(d)(1)(B) of the Internal Revenue Code 
71.20 	in determining the applicable income limits.
71.21 		Subd. 3.Pooling authority. The city may elect to treat expenditures of increment 
71.22 	from the Southdale 2 district for a housing project of a district established under 
71.23 	this section as expenditures qualifying under Minnesota Statutes, section 469.1763, 
71.24 	subdivision 2, paragraph (d), without regard to whether the housing meets the requirement 
71.25 	of a qualified building under section 42 of the Internal Revenue Code.

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

71.29 	Sec. 8. SHOREVIEW TAX INCREMENT FINANCING PILOT PROJECT.
 71.30 		Subdivision 1.Authority to establish districts. (a) The governing body of the 
71.31 	city of Shoreview or a development authority it designates may establish one or more 
71.32 	economic development tax increment financing districts in the city subject to the special 
71.33 	rules under this section. The purpose of these districts is the retention and expansion of 
72.1 	existing businesses in the city and the attraction of new business to the state to create and 
72.2 	retain high paying jobs.
72.3 	(b) The authority to establish or approve the tax increment financing plans and 
72.4 	request certification for districts under this section expires on June 30, 2019.
72.5 		Subd. 2.Qualified businesses. For purposes of this section, a "qualified business" 
72.6 	must satisfy the following requirements:
72.7 	(1) the business must qualify under one of the following when the tax increment 
72.8 	financing plan is approved:
72.9 	(i) it operates at a location in the city of Shoreview;
72.10 	(ii) it does not have substantial operations in Minnesota; or
72.11 	(iii) the assistance is provided for relocation of a portion of the business's operation 
72.12 	from another state;
72.13 	(2) the expansion or location of the operations of the business in the city, as 
72.14 	provided in the business subsidy agreement under Minnesota Statues, sections 116J.993 to 
72.15 	116J.995, will result in an increase in manufacturing, research, service, or professional 
72.16 	jobs, at least 75 percent of which pay an average wage or salary that is equal to or greater 
72.17 	than 25 percent of the median wage or salary for all jobs within the metropolitan area; and
72.18 	(3) the business is not engaged in making retail sales or in providing other services, 
72.19 	such as legal, medical, accounting, financial, entertainment, or similar, to third parties, at 
72.20 	the location receiving assistance.
72.21 		Subd. 3.Applicable rules. (a) Unless otherwise stated, the provisions of Minnesota 
72.22 	Statutes, sections 469.174 to 469.1794, apply to districts established under this section.
72.23 	(b) Notwithstanding the provisions of section 469.176, subdivision 1b, the duration 
72.24 	limit for districts created under this section is 12 years after the receipt of the first increment.
72.25 	(c) The provisions of Minnesota Statutes, section 469.176, subdivision 4c, apply 
72.26 	to determining the permitted uses of increments from the districts with the following 
72.27 	exceptions:
72.28 	(1) any building and facilities must be for a qualified business;
72.29 	(2) the building and facilities must not be used by the qualified business or its 
72.30 	lessees or tenants to relocate operations from another location in this state outside of the 
72.31 	city of Shoreview;
72.32 	(3) the 15 percent limit in subdivision 4c, paragraph (a), is increased to 25 percent; and
72.33 	(4) the city or development authority may elect to deposit up to 20 percent of the 
72.34 	increments in the fund established under subdivision 4. If the city elects to use this 
72.35 	authority, all of the remaining increments must be expended for administrative expenses 
72.36 	or for activities within the district under Minnesota Statutes, section 469.1763.
73.1 	(d) The governing body of the city may elect, by resolution, to determine the 
73.2 	original and current net tax capacity of a district established under this section using the 
73.3 	computation under Minnesota Statutes, section 469.177, subdivision 3, paragraph (a) or (b).
73.4 		Subd. 4.Business retention and expansion fund. (a) The city may establish a 
73.5 	business retention and expansion fund and deposit in the fund:
73.6 	(1) increments as provided under subdivision 3, paragraph (c), clause (4); and
73.7 	(2) increments from a district for which the request for certification of the district 
73.8 	was made prior to April 30, 1990, if the amount necessary to meet all of the debt and other 
73.9 	obligations incurred for that district has been received by the city.
73.10 	(b) Amounts in the fund may be expended to assist qualified businesses, as permitted 
73.11 	under subdivisions 2 and 3, and are not otherwise subject to the restrictions in Minnesota 
73.12 	Statutes, sections 469.174 to 469.1794.

73.13 	EFFECTIVE DATE. This section is effective upon compliance by the governing 
73.14 	body of the city of Shoreview with the requirements of Minnesota Statutes, section 
73.15 	645.021, subdivision 3.

73.16 	Sec. 9. CITY OF NORTH ST. PAUL; TAX INCREMENT FINANCING; 
73.17 	PARCELS DEEMED OCCUPIED.
 73.18 	If the city of North St. Paul authorizes the creation of a redevelopment tax increment 
73.19 	financing district under Minnesota Statutes, section 469.174, subdivision 10, parcel 
73.20 	number 122922330059 is deemed to meet the requirements of Minnesota Statutes, section 
73.21 	469.174, subdivision 10, paragraph (d), notwithstanding any contrary provisions of that 
73.22 	paragraph, if the following conditions are met:
73.23 	(1) buildings located on the parcel were demolished after the city of North St. Paul 
73.24 	adopted a resolution under Minnesota Statutes, section 469.174, subdivision 10, paragraph 
73.25 	(d), clause (3);
73.26 	(2) the buildings were removed either by the city of North St. Paul or by the owner 
73.27 	of the property by entering into a development agreement; and
73.28 	(3) the request for certification of the parcel as part of a district is filed with the 
73.29 	county auditor by December 31, 2016.

73.30 	EFFECTIVE DATE. This section is effective upon compliance by the governing 
73.31 	body of the city of North St. Paul with the requirements of Minnesota Statutes, section 
73.32 	645.021, subdivisions 2 and 3.

74.1 	ARTICLE 7
74.2 	MISCELLANEOUS

74.3 	Section 1. Minnesota Statutes 2012, section 270C.72, subdivision 1, is amended to read:
74.4 		Subdivision 1.Tax clearance required. (a) The state or a political subdivision of 
74.5 	the state may not issue, transfer, or renew, and must revoke, a license for the conduct of 
74.6 	a profession, occupation, trade, or business, if the commissioner notifies the licensing 
74.7 	authority that the applicant owes the state delinquent taxes payable to the commissioner, 
74.8 	penalties, or interest. The commissioner may not notify the licensing authority unless the 
74.9 	applicant taxpayer owes $500 or more in delinquent taxes, penalties, or interest, or has 
74.10 	not filed returns. If the applicant taxpayer does not owe delinquent taxes, penalties, or 
74.11 	interest, but has not filed returns, the commissioner may not notify the licensing authority 
74.12 	unless the taxpayer has been given 90 days' written notice to file the returns or show 
74.13 	that the returns are not required to be filed. 
74.14 	(b) Within ten days after receipt of the notification from the commissioner under 
74.15 	paragraph (a), the licensing authority must notify the license holder by certified mail of 
74.16 	the potential revocation of the license for the applicable reason under paragraph (a). 
74.17 	The notice must include a copy of the commissioner's notice to the licensing agency 
74.18 	and information, in the form specified by the commissioner, on the licensee's option for 
74.19 	receiving a tax clearance from the commissioner. The licensing authority must revoke the 
74.20 	license 30 days after receiving the notice from the commissioner, unless it receives a tax 
74.21 	clearance from the commissioner as provided in paragraph (c).
74.22 	(c) A licensing authority that has received a notice from the commissioner may 
74.23 	issue, transfer, renew, or not revoke the applicant's license only if (a) (1) the commissioner 
74.24 	issues a tax clearance certificate and (b) (2) the commissioner or the applicant forwards a 
74.25 	copy of the clearance to the authority. The commissioner may issue a clearance certificate 
74.26 	only if the applicant does not owe the state any uncontested delinquent taxes, penalties, or 
74.27 	interest and has filed all required returns.

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

74.29 	Sec. 2. Minnesota Statutes 2012, section 270C.72, subdivision 3, is amended to read:
74.30 		Subd. 3.Notice and hearing. (a) The commissioner, on notifying a licensing 
74.31 	authority pursuant to subdivision 1 not to issue, transfer, or renew a license, must send a 
74.32 	copy of the notice to the applicant. If the applicant requests, in writing, within 30 days 
74.33 	of the date of the notice a hearing, a contested case hearing must be held. The hearing 
74.34 	must be held within 45 days of the date the commissioner refers the case to the Office of 
75.1 	Administrative Hearings. Notwithstanding any law to the contrary, the applicant must be 
75.2 	served with 20 days' notice in writing specifying the time and place of the hearing and the 
75.3 	allegations against the applicant. The notice may be served personally or by mail.
75.4 	(b) (a) Prior to notifying a licensing authority pursuant to subdivision 1 to revoke a 
75.5 	license, the commissioner must send a notice to the applicant of the commissioner's intent 
75.6 	to require revocation of the license and of the applicant's right to a hearing under paragraph 
75.7 	(a). If the applicant requests a hearing in writing within 30 days of the date of the notice, a 
75.8 	contested case hearing must be held. The hearing must be held within 45 days of the date 
75.9 	the commissioner refers the case to the Office of Administrative Hearings. Notwithstanding 
75.10 	any law to the contrary, the applicant must be served with 20 days notice in writing 
75.11 	specifying the time and place of the hearing and the allegations against the applicant. The 
75.12 	notice may be served personally or by mail. A license is subject to revocation when 30 
75.13 	days have passed following the date of the notice in this paragraph without the applicant 
75.14 	requesting a hearing, or, if a hearing is timely requested, upon final determination of the 
75.15 	hearing under section 14.62, subdivision 1. A license shall be revoked by the licensing 
75.16 	authority within 30 days after receiving notice from the commissioner to revoke.
75.17 	(b) The commissioner may notify a licensing authority under subdivision 1 only 
75.18 	after the requirements of paragraph (a) have been satisfied.
75.19 	(c) A hearing under this subdivision is in lieu of any other hearing or proceeding 
75.20 	provided by law arising from any action taken under subdivision 1.

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

75.22 	Sec. 3. Minnesota Statutes 2012, section 279.03, subdivision 2, is amended to read:
75.23 		Subd. 2.Composite judgment. Amounts included in composite judgments 
75.24 	authorized by section 279.37, subdivision 1, and confessed on or after July 1, 1982, are 
75.25 	subject to interest at the rate determined pursuant to section 549.09. Amounts confessed 
75.26 	under this authority after December 31, 1990, (a) Except as provided in paragraph (b), 
75.27 	amounts included in composite judgments authorized by section 279.37, subdivision 1, are 
75.28 	subject to interest at the rate calculated under subdivision 1a. During each calendar year, 
75.29 	interest shall accrue on the unpaid balance of the composite judgment from the time it is 
75.30 	confessed until it is paid. The rate of interest is subject to change each year in the same 
75.31 	manner that section 549.09 or subdivision 1a, whichever is applicable, for rate changes. 
75.32 	Interest on the unpaid contract balance on judgments confessed before July 1, 1982, 
75.33 	is payable at the rate applicable to the judgment at the time that it was confessed. The 
75.34 	interest rate established at the time the judgment is confessed is fixed for the duration of 
75.35 	that judgment.
76.1 	(b) A confession of judgment covering any part of a parcel classified as 1a or 1b, and 
76.2 	used as the primary homestead of the owner, is subject to interest at the rate provided in 
76.3 	section 279.37, subdivision 2, paragraph (b).

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

76.6 	Sec. 4. Minnesota Statutes 2013 Supplement, section 279.37, subdivision 2, is 
76.7 	amended to read:
76.8 		Subd. 2.Installment payments. (a) The owner of any such parcel, or any person to 
76.9 	whom the right to pay taxes has been given by statute, mortgage, or other agreement, may 
76.10 	make and file with the county auditor of the county in which the parcel is located a written 
76.11 	offer to pay the current taxes each year before they become delinquent, or to contest the 
76.12 	taxes under Minnesota Statutes 1941, sections 278.01 to 278.13, and agree to confess 
76.13 	judgment for the amount provided, as determined by the county auditor. By filing the 
76.14 	offer, the owner waives all irregularities in connection with the tax proceedings affecting 
76.15 	the parcel and any defense or objection which the owner may have to the proceedings, and 
76.16 	also waives the requirements of any notice of default in the payment of any installment or 
76.17 	interest to become due pursuant to the composite judgment to be so entered. Unless the 
76.18 	property is subject to subdivision 1a, with the offer, the owner shall (i) tender one-tenth of 
76.19 	the amount of the delinquent taxes, costs, penalty, and interest, and (ii) tender all current 
76.20 	year taxes and penalty due at the time the confession of judgment is entered. In the offer, 
76.21 	the owner shall agree to pay the balance in nine equal installments, with interest as provided 
76.22 	in section 279.03, payable annually on installments remaining unpaid from time to time, on 
76.23 	or before December 31 of each year following the year in which judgment was confessed. 
76.24 	(b) If any part of the parcel consists of real estate classified as 1a or 1b and used as the 
76.25 	homestead by the owner of the property, the commissioner of revenue shall set annually 
76.26 	the interest rate on offers made under paragraph (a) at the greater of five percent or two 
76.27 	percent above the prime rate charged by banks during the six-month period ending on 
76.28 	September 30 of that year, rounded to the nearest full percent, provided that the rate must 
76.29 	not exceed the maximum annum rate specified under section 279.03, subdivision 1a. The 
76.30 	rate of interest becomes effective on January 1 of the immediately succeeding year. If a 
76.31 	default occurs in the payments under any confessed judgment entered under this paragraph, 
76.32 	the taxes and penalties due are subject to the interest rate specified in section 279.03.
76.33 	For the purposes of this subdivision:
77.1 	(1) the term "prime rate charged by banks" means the average predominant prime 
77.2 	rate quoted by commercial banks to large businesses, as determined by the Board of 
77.3 	Governors of the Federal Reserve System; and
77.4 	(2) "default" means the cancellation of the confession of judgment due to 
77.5 	nonpayment of the current year tax or failure to make any installment payment required by 
77.6 	this confessed judgment within 60 days from the date on which payment was due.
77.7 	(c) The interest rate established at the time judgment is confessed is fixed for the 
77.8 	duration of the judgment. By October 15 of each year, the commissioner of revenue must 
77.9 	determine the rate of interest as provided under paragraph (b) and, by November 1 of each 
77.10 	year, must certify the rate to the county auditor.
77.11 	(d) A qualified property owner eligible to enter into a second confession of judgment 
77.12 	may do so at the interest rate provided in paragraph (b).
77.13 	(e) Repurchase agreements or contracts for repurchase for properties being 
77.14 	repurchased under section 282.261 are not eligible to receive the interest rate under 
77.15 	paragraph (b).
77.16 	(f) The offer must be substantially as follows:
77.17 	"To the court administrator of the district court of ........... county, I, ....................., 
77.18 	am the owner of the following described parcel of real estate located in .................... 
77.19 	county, Minnesota:
77.20 	.............................. Upon that real estate there are delinquent taxes for the year ........., and 
77.21 	prior years, as follows: (here insert year of delinquency and the total amount of delinquent 
77.22 	taxes, costs, interest, and penalty). By signing this document I offer to confess judgment in 
77.23 	the sum of $...... and waive all irregularities in the tax proceedings affecting these taxes and 
77.24 	any defense or objection which I may have to them, and direct judgment to be entered for 
77.25 	the amount stated above, minus the sum of $............, to be paid with this document, which 
77.26 	is one-tenth or one-fifth of the amount of the taxes, costs, penalty, and interest stated above. 
77.27 	I agree to pay the balance of the judgment in nine or four equal, annual installments, with 
77.28 	interest as provided in section 279.03, payable annually, on the installments remaining 
77.29 	unpaid. I agree to pay the installments and interest on or before December 31 of each year 
77.30 	following the year in which this judgment is confessed and current taxes each year before 
77.31 	they become delinquent, or within 30 days after the entry of final judgment in proceedings 
77.32 	to contest the taxes under Minnesota Statutes, sections 278.01 to 278.13.
77.33 	Dated .............., ......."

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

78.1 	Sec. 5. Minnesota Statutes 2013 Supplement, section 360.531, subdivision 2, is 
78.2 	amended to read:
78.3 		Subd. 2.Rate. The tax shall be as follows:

78.4	Base Price
		Tax
	
78.5
78.6	Under $499,999
 Not over $500,000
		$100
	
78.7
78.8	over $500,000 to $999,999
 but not over $1,000,000
		$200
	
78.978.10
	over $1,000,000 to $2,499,999
 but not over $2,500,000
		$2,000
	
78.11
78.12	over $2,500,000 to $4,999,999
 but not over $5,000,000
		$4,000
	
78.13
78.14	over $5,000,000 to $7,499,999
 but not over $7,500,000
		$7,500
	
78.15
78.16	over $7,500,000 to $9,999,999
 but not over $10,000,000
		$10,000
	
78.17
78.18	over $10,000,000 to $12,499,999
 but not over $12,500,000
		$12,500
	
78.19
78.20	over $12,500,000 to $14,999,999
 but not over $15,000,000
		$15,000
	
78.21
78.22	over $15,000,000 to $17,499,999
 but not over $17,500,000
		$17,500
	
78.23
78.24	over $17,500,000 to $19,999,999
 but not over $20,000,000
		$20,000
	
78.25
78.26	over $20,000,000 to $22,499,999
 but not over $22,500,000
		$22,500
	
78.27
78.28	over $22,500,000 to $24,999,999
 but not over $25,000,000
		$25,000
	
78.29
78.30	over $25,000,000 to $27,499,999
 but not over $27,500,000
		$27,500
	
78.31
78.32	over $27,500,000 to $29,999,999
 but not over $30,000,000
		$30,000
	
78.33
78.34	over $30,000,000 to $39,999,999
 but not over $40,000,000
		$50,000
	
78.35	over $40,000,000 and over
		$75,000

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

78.38 	Sec. 6. Minnesota Statutes 2012, section 383E.21, subdivision 1, is amended to read:
78.39 		Subdivision 1.Authority to levy property taxes and incur debt. (a) To finance the 
78.40 	cost of designing, constructing, and acquiring countywide public safety improvements 
78.41 	and equipment, including personal property, benefiting both Anoka County and the 
78.42 	municipalities located within Anoka County, the governing body of Anoka County may
78.43 	 levy property taxes for public safety improvements and equipment, and issue:
79.1 	(1) capital improvement bonds under the provisions of section 373.40 as if the 
79.2 	infrastructure and equipment qualified as a "capital improvement" within the meaning of 
79.3 	section 373.40, subdivision 1, paragraph (b); and
79.4 	(2) capital notes under the provisions of section 373.01, subdivision 3, as if the 
79.5 	equipment qualified as "capital equipment" within the meaning of section 373.01, 
79.6 	subdivision 3. Personal property acquired with the proceeds of the bonds or capital 
79.7 	notes issued under this section must have an expected useful life at least as long as the 
79.8 	term of debt.
79.9 	(b) The outstanding principal amount of the bonds and the capital notes issued under 
79.10 	this section may not exceed $8,000,000 at any time. Any bonds or notes issued pursuant 
79.11 	to this section must only be issued after approval by a majority vote of the Anoka County 
79.12 	Joint Law Enforcement Council, a joint powers board.

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

79.15 	Sec. 7. Minnesota Statutes 2012, section 383E.21, subdivision 2, is amended to read:
79.16 		Subd. 2.Treatment of levy. Notwithstanding sections 275.065, subdivision 3, 
79.17 	and 276.04, the county may report the tax attributable to any levy to fund public safety 
79.18 	capital improvements or equipment projects approved by the Anoka County Joint Law 
79.19 	Enforcement Council or pay principal and interest on bonds or notes issued under this 
79.20 	section as a separate line item on the proposed property tax notice and the property tax 
79.21 	statement. Notwithstanding any provision in chapter 275 or 373 to the contrary, bonds or 
79.22 	notes issued by Anoka County under this section must not be included in the computation 
79.23 	of the net debt of Anoka County.

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

79.26 	Sec. 8. Minnesota Statutes 2013 Supplement, section 469.169, is amended by adding a 
79.27 	subdivision to read:
79.28 		Subd. 20.Additional zone allocations. $3,000,000 is allocated per year for calendar 
79.29 	years 2014 through 2019 for tax reductions in border city enterprise zones and border city 
79.30 	development zones. The commissioner shall allocate this amount among the cities on a 
79.31 	per capita basis. Allocations may be used for tax reductions for that year under either:
79.32 	(1) the border city enterprise zone program under section 469.171, or for other 
79.33 	offsets of taxes imposed on or remitted by businesses located in the enterprise zone, if 
80.1 	the municipality determines that the granting of the tax reduction or offset is necessary to 
80.2 	retain a business within or attract a business to the zone; or
80.3 	(2) the border city development zone program under section 469.1732 or 469.1734.

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

80.6 	Sec. 9. Minnesota Statutes 2012, section 469.171, subdivision 6, is amended to read:
80.7 		Subd. 6.Additional border city tax reductions. In addition to the tax reductions 
80.8 	authorized by subdivision 1, for a border city zone, the following types of tax reductions 
80.9 	may be approved:
80.10 	(1) a credit against income tax for workers employed in the zone and not qualifying 
80.11 	for a credit under subdivision 1, clause (2), subject to a maximum of $1,500 $3,000 per 
80.12 	employee per year;
80.13 	(2) a state paid property tax credit for a portion of the property taxes paid by a 
80.14 	commercial or industrial facility located in the zone.

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

80.16 	Sec. 10. CARLTON COUNTY; LEVY FOR SOIL AND WATER 
80.17 	CONSERVATION DISTRICT.
 80.18 		Subdivision 1.Definitions. (a) For the purposes of this section, "district" means 
80.19 	the Carlton County Soil and Water Conservation District.
80.20 	(b) For the purposes of this section, "county" means Carlton County.
80.21 		Subd. 2.Special project levy. Notwithstanding any law to the contrary, the county 
80.22 	may levy ad valorem property taxes on taxable property within the area of its jurisdiction 
80.23 	for the purposes specified in subdivision 3. The proceeds of the tax must be placed in a 
80.24 	separate account and used only for the purposes specified in subdivision 3. The amount 
80.25 	levied is separate from any other amount to be levied for the district by the county under 
80.26 	Minnesota Statutes, section 103C.331, subdivision 16.
80.27 		Subd. 3.Purpose; limit on levy amount. (a) The county must allocate the 
80.28 	proceeds of any tax imposed under this section to the district solely to pay principal, 
80.29 	interest, and any associated costs of obtaining and servicing a loan to finance the planning, 
80.30 	constructing, and equipping of an office and storage facility for the district.
80.31 	(b) The maximum amount of the levy in any year may not exceed the amount 
80.32 	necessary, after deduction of any amount remaining from the levy imposed in prior years, 
81.1 	to pay 105 percent of the principal and interest due in the following calendar year and 
81.2 	through July 1 of the next year.
81.3 		Subd. 4.Expiration. (a) This section expires:
81.4 	(1) following the final payment of principal, interest, and any associated costs of the 
81.5 	loan under subdivision 3, or any loan or other financing that refinanced the original loan; or
81.6 	(2) if the district does not obtain the loan under subdivision 3 prior to May 1, 2017.
81.7 	(b) Upon expiration of this section, any amount remaining in the account created 
81.8 	under subdivision 2 must be transferred to the general account of the county and used to 
81.9 	reduce any amount to be levied for the district by the county under Minnesota Statutes, 
81.10 	section 103C.331, subdivision 16, for the following year, and any subsequent years, until 
81.11 	the amount remaining is exhausted.

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

81.14 	Sec. 11. PURPOSE STATEMENTS; TAX EXPENDITURES.
 81.15 		Subdivision 1.Authority. This section is intended to fulfill the requirement under 
81.16 	Minnesota Statutes, section 3.192, that a bill creating, renewing, or continuing a tax 
81.17 	expenditure provide a purpose for the tax expenditure and a standard or goal against 
81.18 	which its effectiveness may be measured.
81.19 		Subd. 2.Income tax subtraction for discharge of indebtedness income. The 
81.20 	provisions of article 4, section 7, clause (21), are intended to exclude from state taxation in 
81.21 	2014 amounts otherwise recognizable as income but excluded at the federal level for tax 
81.22 	years 2007 through 2013 in response to the national housing crisis.
81.23 		Subd. 3.Income tax subtraction for military pay; Active Guard/Reserve 
81.24 	members of the National Guard. The provisions of article 4, section 7, clause (10), are 
81.25 	intended to provide equitable tax treatment to Minnesota residents who are members of 
81.26 	the National Guard and serve full time in Active Guard/Reserve (AGR) status by allowing 
81.27 	an income tax subtraction for military pay equivalent to that allowed under Minnesota 
81.28 	Statutes, section 290.01, subdivision 19b, clause (11), for Minnesota residents who serve 
81.29 	full time in the armed forces of the United States.
81.30 		Subd. 4.Research credit for sole proprietors. The provisions of article 4, section 
81.31 	9, are intended to provide equitable tax treatment for Minnesota businesses operated as 
81.32 	sole proprietorships by allowing sole proprietors to claim the research credit on the same 
81.33 	basis as it is allowed for businesses operated as C corporations or pass-through entities. 
81.34 		Subd. 5.Estate tax situs rule for qualified art. The provisions of article 4, section 
81.35 	15, deeming certain qualified art on loan to Minnesota nonprofit entities as property with 
82.1 	a situs outside Minnesota under the estate tax are intended to prevent the Minnesota 
82.2 	estate tax from discouraging nonresident owners of art from loaning it to Minnesota 
82.3 	nonprofit museums.
82.4 		Subd. 6.Sales of coin-operated amusement devices defined as sales for resale.
 82.5 	The provisions of article 3, section 9, defining certain coin-operated amusement devices 
82.6 	as sales for resale are intended to reduce tax pyramiding by exempting an input to a 
82.7 	taxable service.
82.8 		Subd. 7.Expansion of sales tax exemption for local governments. The provisions 
82.9 	of article 3, sections 12 and 17, modifying the sales tax on certain local government 
82.10 	purchases are intended to reduce the cost of providing local government services, 
82.11 	remove a barrier for intergovernmental cooperation, and reduce existing compliance and 
82.12 	administration costs for local governments.
82.13 		Subd. 8.Fund-raising sales by nonprofit groups. The provisions of article 3, 
82.14 	section 13, raising the limit on tax exempt fund-raising by nonprofit organizations is 
82.15 	intended to reflect the impact on inflation over time on the limit and reduce compliance 
82.16 	costs for groups that exceed the limit.
82.17 		Subd. 10.Microdistillery credit. The provisions of article 3, section 19, allowing a 
82.18 	microdistillery credit is to relieve small distillers of the burden of paying excise tax on 
82.19 	the distribution of free samples of their products and to encourage the development and 
82.20 	marketing of products by niche distillers in the state.

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

82.22 	ARTICLE 8
82.23 	UNSESSION

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

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

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

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

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

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

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

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

83.28 	Sec. 5. Minnesota Statutes 2012, section 16D.07, is amended to read:
83.29 	16D.07 NOTICE TO DEBTOR.
84.1 	The referring agency shall send notice to the debtor by United States mail or 
84.2 	personal delivery at the debtor's last known address at least 20 days before the debt is 
84.3 	referred to the commissioner. The notice must state the nature and amount of the debt, 
84.4 	identify to whom the debt is owed, and inform the debtor of the remedies available under 
84.5 	this chapter. The referring agency shall advise the debtor of collection costs imposed 
84.6 	under section 16D.11 and of the debtor's right to cancellation of collection costs under 
84.7 	section 16D.11, subdivision 3.

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

84.9 	Sec. 6. Minnesota Statutes 2012, section 16D.11, subdivision 1, is amended to read:
84.10 		Subdivision 1.Imposition. As determined by the commissioner of management and 
84.11 	budget revenue, collection costs shall be added to the debts referred to the commissioner 
84.12 	or private collection agency for collection. Collection costs are collectible by the 
84.13 	commissioner or private agency from the debtor at the same time and in the same 
84.14 	manner as the referred debt. The referring agency shall advise the debtor of collection 
84.15 	costs under this section and the debtor's right to cancellation of collection costs under 
84.16 	subdivision 3 at the time the agency sends notice to the debtor under section 16D.07.
84.17 	 If the commissioner or private agency collects an amount less than the total due, the 
84.18 	payment is applied proportionally to collection costs and the underlying debt unless 
84.19 	the commissioner of management and budget has waived this requirement for certain 
84.20 	categories of debt pursuant to the department's internal guidelines. Collection costs 
84.21 	collected by the commissioner under this subdivision or retained under subdivision 6 shall 
84.22 	be deposited in the general fund as nondedicated receipts. Collection costs collected by 
84.23 	private agencies are appropriated to the referring agency to pay the collection fees charged 
84.24 	by the private agency. Collections of collection costs in excess of collection agency fees 
84.25 	must be deposited in the general fund as nondedicated receipts.

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

84.27 	Sec. 7. Minnesota Statutes 2012, section 16D.11, subdivision 3, is amended to read:
84.28 		Subd. 3.Cancellation. Collection costs imposed under subdivision 1 shall be 
84.29 	canceled and subtracted from the amount due if:
84.30 	(1) the debtor's household income as defined in section 290A.03, subdivision 5, 
84.31 	excluding the exemption subtractions in subdivision 3, paragraph (3) of that section, for 
84.32 	the 12 months preceding the date of referral is less than twice the annual federal poverty 
84.33 	guideline under United States Code, title 42, section 9902, subsection (2);
85.1 	(2) within 60 days after the first contact with the debtor by the enterprise
85.2 	 commissioner or collection agency, the debtor establishes reasonable cause for the failure 
85.3 	to pay the debt prior to referral of the debt to the enterprise commissioner;
85.4 	(3) a good faith dispute as to the legitimacy or the amount of the debt is made, 
85.5 	and payment is remitted or a payment agreement is entered into within 30 days after 
85.6 	resolution of the dispute;
85.7 	(4) good faith litigation occurs and the debtor's position is substantially justified, and 
85.8 	if the debtor does not totally prevail, the debt is paid or a payment agreement is entered 
85.9 	into within 30 days after the judgment becomes final and nonappealable; or
85.10 	(5) collection costs have been added by the referring agency and are included in 
85.11 	the amount of the referred debt.

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

85.13 	Sec. 8. Minnesota Statutes 2012, section 16D.11, subdivision 7, is amended to read:
85.14 		Subd. 7.Adjustment of rate. By June 1 of each year, the commissioner shall 
85.15 	determine the rate of collection costs for debts referred to the enterprise commissioner
85.16 	 during the next fiscal year. The rate is a percentage of the debts in an amount that most 
85.17 	nearly equals the costs of the enterprise commissioner necessary to process and collect 
85.18 	referred debts under this chapter. In no event shall the rate of the collection costs exceed 
85.19 	25 percent of the debt. Determination of the rate of collection costs under this section is 
85.20 	not subject to the fee setting requirements of section 16A.1283.

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

85.22 	Sec. 9. Minnesota Statutes 2012, section 84A.20, subdivision 2, is amended to read:
85.23 		Subd. 2.County proposal to state. Under certain conditions, The board of county 
85.24 	commissioners of any county may by resolution propose to the state that one or more 
85.25 	areas in the county be taken over by the state for afforestation, reforestation, flood control 
85.26 	projects, or other state purposes. The projects are to be managed, controlled, and used for 
85.27 	the purposes in subdivision 1 on lands to be acquired by the state within the projects, as set 
85.28 	forth in sections 84A.20 to 84A.30. The county board may propose this if (1) the county 
85.29 	contains lands suitable for the purposes in subdivision 1, (2) on January 1, 1931, the taxes 
85.30 	on more than 35 percent of the taxable land in the county are delinquent, (3) on January 1, 
85.31 	1931, the county's bonded ditch indebtedness, including accrued interest, equals or exceeds 
85.32 	nine percent of the assessed valuation of the county, exclusive of money and credits.
86.1 	The area taken over must include lands that have been assessed for all or part of 
86.2 	the cost of the establishment and construction of public drainage ditches under state law, 
86.3 	and on which the assessments or installments are delinquent. A certified copy of the 
86.4 	county board's resolution must be filed with the department and considered and acted 
86.5 	upon by the department. If approved by the department, it must then be submitted to, 
86.6 	considered, and acted upon by the executive council. If approved by the Executive 
86.7 	Council, the proposition must be formally accepted by the governor. Acceptance must be 
86.8 	communicated in writing to and filed with the county auditor.

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

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

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

86.23 	Sec. 11. Minnesota Statutes 2012, section 115B.49, subdivision 4, is amended to read:
86.24 		Subd. 4.Registration; fees. (a) The owner or operator of a dry cleaning facility 
86.25 	shall register on or before October 1 of each year with the commissioner of revenue in 
86.26 	a manner prescribed by the commissioner of revenue and pay a registration fee for the 
86.27 	facility. The amount of the fee is:
86.28 	(1) $500, for facilities with a full-time equivalence of fewer than five;
86.29 	(2) $1,000, for facilities with a full-time equivalence of five to ten; and
86.30 	(3) $1,500, for facilities with a full-time equivalence of more than ten.
86.31 	The registration fee must be paid on or before October 18 or the owner or operator 
86.32 	of a dry cleaning facility may elect to pay the fee in equal installments. Installment 
86.33 	payments must be paid on or before October 18, on or before January 18, on or before 
87.1 	April 18, and on or before June 18. All payments made after October 18 bear interest 
87.2 	at the rate specified in section 270C.40.
87.3 	(b) A person who sells dry cleaning solvents for use by dry cleaning facilities in 
87.4 	the state shall collect and remit to the commissioner of revenue in a the same manner 
87.5 	prescribed by the commissioner of revenue, on or before the 20th day of the month 
87.6 	following the month in which the sales of dry cleaning solvents are made for the taxes 
87.7 	imposed under chapter 297A, a fee of:
87.8 	(1) $3.50 for each gallon of perchloroethylene sold for use by dry cleaning facilities 
87.9 	in the state;
87.10 	(2) 70 cents for each gallon of hydrocarbon-based dry cleaning solvent sold for use 
87.11 	by dry cleaning facilities in the state; and
87.12 	(3) 35 cents for each gallon of other nonaqueous solvents sold for use by dry 
87.13 	cleaning facilities in the state.
87.14 	(c) The audit, assessment, appeal, collection, enforcement, and administrative 
87.15 	provisions of chapters 270C and 289A apply to the fee imposed by this subdivision. To 
87.16 	enforce this subdivision, the commissioner of revenue may grant extensions to file returns 
87.17 	and pay fees, impose penalties and interest on the annual registration fee under paragraph 
87.18 	(a) and the monthly fee under paragraph (b), and abate penalties and interest in the manner 
87.19 	provided in chapters 270C and 289A. The penalties and interest imposed on taxes under 
87.20 	chapter 297A apply to the fees imposed under this subdivision. Disclosure of data collected 
87.21 	by the commissioner of revenue under this subdivision is governed by chapter 270B.

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

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

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

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

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

88.4 	Sec. 14. Minnesota Statutes 2012, section 270.12, subdivision 2, is amended to read:
88.5 		Subd. 2.Meeting dates; duties. The board shall meet annually between April 15 
88.6 	and June 30 at the office of the commissioner of revenue and examine and compare the 
88.7 	returns of the assessment of the property in the several counties, and equalize the same so 
88.8 	that all the taxable property in the state shall be assessed at its market value, subject to 
88.9 	the following rules:
88.10 	(1) The board shall add to or deduct from the aggregate valuation of the real property 
88.11 	of every county, which the board believes to be valued below or above its market value in 
88.12 	money, such percent as will bring the same to its market value in money;
88.13 	(2) The board shall deduct from the aggregate valuation of the real property of every 
88.14 	county, which the board believes to be valued above its market value in money, such 
88.15 	percent as will reduce the same to its market value in money;
88.16 	(3) (2) If the board believes the valuation for a part of a class determined by a range 
88.17 	of market value under clause (8) (6) or otherwise, a class, or classes of the real property of 
88.18 	any town or district in any county, or the valuation for a part of a class, a class, or classes 
88.19 	of the real property of any county not in towns or cities, should be raised or reduced, 
88.20 	without raising or reducing the other real property of such county, or without raising or 
88.21 	reducing it in the same ratio, the board may add to, or take from, the valuation of a part of 
88.22 	a class, a class, or classes in any one or more of such towns or cities, or of the property not 
88.23 	in towns or cities, such percent as the board believes will raise or reduce the same to its 
88.24 	market value in money;
88.25 	(4) (3) The board shall add to or take from the aggregate valuation of any part of a 
88.26 	class, a class, or classes of personal property of any county, town, or city, which the 
88.27 	board believes to be valued below or above the market value thereof, such percent as will 
88.28 	raise the same to its market value in money;
88.29 	(5) The board shall take from the aggregate valuation of any part of a class, a class, 
88.30 	or classes of personal property in any county, town or city, which the board believes to 
88.31 	be valued above the market value thereof, such percent as will reduce the same to its 
88.32 	market value in money;
88.33 	(6) (4) The board shall not reduce the aggregate valuation of all the property of the 
88.34 	state, as returned by the several county auditors, more than one percent on the whole 
88.35 	valuation thereof;
89.1 	(7) (5) When it would be of assistance in equalizing values the board may require any 
89.2 	county auditor to furnish statements showing assessments of real and personal property 
89.3 	of any individuals, firms, or corporations within the county. The board shall consider 
89.4 	and equalize such assessments and may increase the assessment of individuals, firms, or 
89.5 	corporations above the amount returned by the county board of equalization when it shall 
89.6 	appear to be undervalued, first giving notice to such persons of the intention of the board 
89.7 	so to do, which notice shall fix a time and place of hearing. The board shall not decrease 
89.8 	any such assessment below the valuation placed by the county board of equalization;
89.9 	(8) (6) In equalizing values pursuant to this section, the board shall utilize a 12-month 
89.10 	assessment/sales ratio study conducted by the Department of Revenue containing only 
89.11 	sales that are filed in the county auditor's office under section 272.115, by November 1 of 
89.12 	the previous year and that occurred between October 1 of the year immediately preceding 
89.13 	the previous year and September 30 of the previous year.
89.14 	The assessment/sales ratio study may separate the values of residential property 
89.15 	into market value categories. The board may adjust the market value categories and the 
89.16 	number of categories as necessary to create an adequate sample size for each market value 
89.17 	category. The board may determine the adequate sample size. To the extent practicable, 
89.18 	the methodology used in preparing the assessment/sales ratio study must be consistent 
89.19 	with the most recent Standard on Assessment Sales Ratio Studies published by the 
89.20 	Assessment Standards Committee of the International Association of Assessing Officers. 
89.21 	The board may determine the geographic area used in preparing the study to accurately 
89.22 	equalize values. A sales ratio study separating residential property into market value 
89.23 	categories may not be used as the basis for a petition under chapter 278.
89.24 	The sales prices used in the study must be discounted for terms of financing. The 
89.25 	board shall use the median ratio as the statistical measure of the level of assessment for 
89.26 	any particular category of property; and
89.27 	(9) (7) The board shall receive from each county the estimated market values on the 
89.28 	assessment date falling within the study period for all parcels by magnetic tape or other a
89.29 	 medium as prescribed by the commissioner of revenue.

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

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

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

90.2 	Sec. 16. Minnesota Statutes 2012, section 270A.03, subdivision 2, is amended to read:
90.3 		Subd. 2.Claimant agency. "Claimant agency" means any state agency, as defined 
90.4 	by section 14.02, subdivision 2, the regents of the University of Minnesota, any district 
90.5 	court of the state, any county, any statutory or home rule charter city, including a city that 
90.6 	is presenting a claim for a municipal hospital or a public library or a municipal ambulance 
90.7 	service, a hospital district, a private nonprofit hospital that leases its building from the 
90.8 	county or city in which it is located, any ambulance service licensed under chapter 144E, 
90.9 	any public agency responsible for child support enforcement, any public agency responsible 
90.10 	for the collection of court-ordered restitution, and any public agency established by 
90.11 	general or special law that is responsible for the administration of a low-income housing 
90.12 	program, and the Minnesota collection enterprise as defined in section 16D.02, subdivision 
90.13 	8, for the purpose of collecting the costs imposed under section 16D.11.

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

90.15 	Sec. 17. Minnesota Statutes 2012, section 270B.14, subdivision 3, is amended to read:
90.16 		Subd. 3.Administration of enterprise,and job opportunity, and biotechnology 
90.17 	and health sciences industry zone programs. The commissioner may disclose return 
90.18 	information relating to the taxes imposed by chapters 290 and 297A to the Department of 
90.19 	Employment and Economic Development or a municipality with a border city enterprise 
90.20 	zone as defined under section 469.166, but only as necessary to administer the funding 
90.21 	limitations under section 469.169, or to the Department of Employment and Economic 
90.22 	Development and appropriate officials from the local government units in which a 
90.23 	qualified business is located but only as necessary to enforce the job opportunity building 
90.24 	zone benefits under section 469.315, or biotechnology and health sciences industry zone 
90.25 	benefits under section 469.336.

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

90.27 	Sec. 18. Minnesota Statutes 2012, section 270C.085, is amended to read:
90.28 	270C.085 NOTIFICATION REQUIREMENTS; SALES AND USE TAXES.
90.29 	The commissioner of revenue shall establish a means of electronically notifying 
90.30 	persons holding a sales tax permit under section 297A.84 of any statutory change in 
90.31 	chapter 297A and any issuance or change in any administrative rule, revenue notice, or 
90.32 	sales tax fact sheet or other written information provided by the department explaining the 
91.1 	interpretation or administration of the tax imposed under that chapter. The notification 
91.2 	must indicate the basic subject of the statute, rule, fact sheet, or other material and provide 
91.3 	an electronic link to the material. Any person holding a sales tax permit that provides 
91.4 	an electronic address to the department must receive these notifications unless they 
91.5 	specifically request electronically, or in writing, to be removed from the notification list. 
91.6 	This requirement does not replace traditional means of notifying the general public or 
91.7 	persons without access to electronic communications of changes in the sales tax law. The 
91.8 	electronic notification must begin no later than December 31, 2009.

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

91.10 	Sec. 19. Minnesota Statutes 2012, section 270C.52, subdivision 2, is amended to read:
91.11 		Subd. 2.Payment agreements. (a) When any portion of any tax payable to the 
91.12 	commissioner together with interest and penalty thereon, if any, has not been paid, the 
91.13 	commissioner may extend the time for payment for a further period. When the authority 
91.14 	of this section is invoked, the extension shall be evidenced by written agreement signed by 
91.15 	the taxpayer and the commissioner, stating the amount of the tax with penalty and interest, 
91.16 	if any, and providing for the payment of the amount in installments.
91.17 	(b) The agreement may contain a confession of judgment for the amount and for any 
91.18 	unpaid portion thereof. If the agreement contains a confession of judgment, the confession 
91.19 	of judgment must provide that the commissioner may enter judgment against the taxpayer 
91.20 	in the district court of the county of residence as shown upon the taxpayer's tax return for 
91.21 	the unpaid portion of the amount specified in the extension agreement.
91.22 	(c) The agreement shall provide that it can be terminated, after notice by the 
91.23 	commissioner, if information provided by the taxpayer prior to the agreement was 
91.24 	inaccurate or incomplete, collection of the tax covered by the agreement is in jeopardy, 
91.25 	there is a subsequent change in the taxpayer's financial condition, the taxpayer has failed 
91.26 	to make a payment due under the agreement, or the taxpayer has failed to pay any other 
91.27 	tax or file a tax return coming due after the agreement.
91.28 	(d) The notice must be given at least 14 calendar days prior to termination, and shall 
91.29 	advise the taxpayer of the right to request a reconsideration from the commissioner of 
91.30 	whether termination is reasonable and appropriate under the circumstances. A request for 
91.31 	reconsideration does not stay collection action beyond the 14-day notice period. If the 
91.32 	commissioner has reason to believe that collection of the tax covered by the agreement 
91.33 	is in jeopardy, the commissioner may proceed under section 270C.36 and terminate the 
91.34 	agreement without regard to the 14-day period.
92.1 	(e) The commissioner may accept other collateral the commissioner considers 
92.2 	appropriate to secure satisfaction of the tax liability. The principal sum specified in the 
92.3 	agreement shall bear interest at the rate specified in section 270C.40 on all unpaid portions 
92.4 	thereof until the same has been fully paid or the unpaid portion thereof has been entered as 
92.5 	a judgment. The judgment shall bear interest at the rate specified in section 270C.40.
92.6 	(f) If it appears to the commissioner that the tax reported by the taxpayer is in excess 
92.7 	of the amount actually owing by the taxpayer, the extension agreement or the judgment 
92.8 	entered pursuant thereto shall be corrected. If after making the extension agreement 
92.9 	or entering judgment with respect thereto, the commissioner determines that the tax as 
92.10 	reported by the taxpayer is less than the amount actually due, the commissioner shall 
92.11 	assess a further tax in accordance with the provisions of law applicable to the tax.
92.12 	(g) The authority granted to the commissioner by this section is in addition to any 
92.13 	other authority granted to the commissioner by law to extend the time of payment or the 
92.14 	time for filing a return and shall not be construed in limitation thereof.
92.15 	(h) The commissioner shall charge a fee for entering into payment agreements that 
92.16 	reflects the commissioner's costs for entering into payment agreements. The fee is set at 
92.17 	$50 and is charged for entering into a payment agreement, for entering into a new payment 
92.18 	agreement after the taxpayer has defaulted on a prior agreement, and for entering into a 
92.19 	new payment agreement as a result of renegotiation of the terms of an existing agreement. 
92.20 	The fee is paid to the commissioner before the payment agreement becomes effective and 
92.21 	does not reduce the amount of the liability.

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

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

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

92.29 	Sec. 21. Minnesota Statutes 2012, section 272.01, subdivision 3, is amended to read:
92.30 		Subd. 3.Exceptions. The provisions of subdivision 2 shall not apply to:
92.31 	(a) Federal property for which payments are made in lieu of taxes in amounts 
92.32 	equivalent to taxes which might otherwise be lawfully assessed;
93.1 	(b) Real estate exempt from ad valorem taxes and taxes in lieu thereof which is 
93.2 	leased, loaned, or otherwise made available to telephone companies or electric, light 
93.3 	and power companies upon which personal property consisting of transmission and 
93.4 	distribution lines is situated and assessed pursuant to sections 273.37, 273.38, 273.40
93.5 	and 273.41, or upon which are situated the communication lines of express, railway, or 
93.6 	telephone or telegraph companies, or pipelines used for the transmission and distribution 
93.7 	of petroleum products, or the equipment items of a cable communications company 
93.8 	subject to sections 238.35 to 238.42;
93.9 	(c) Property presently owned by any educational institution chartered by the 
93.10 	territorial legislature;
93.11 	(d) Indian lands;
93.12 	(e) Property of any corporation organized as a tribal corporation under the Indian 
93.13 	Reorganization Act of June 18, 1934, (Statutes at Large, volume 48, page 984);
93.14 	(f) Real property owned by the state and leased pursuant to section 161.23 or 
93.15 	161.431, and acts amendatory thereto;
93.16 	(g) Real property owned by a seaway port authority on June 1, 1967, upon which 
93.17 	there has been constructed docks, warehouses, tank farms, administrative and maintenance 
93.18 	buildings, railroad and ship terminal facilities and other maritime and transportation 
93.19 	facilities or those directly related thereto, together with facilities for the handling of 
93.20 	passengers and baggage and for the handling of freight and bulk liquids, and personal 
93.21 	property owned by a seaway port authority used or usable in connection therewith, when 
93.22 	said property is leased to a private individual, association or corporation, but only when 
93.23 	such lease provides that the said facilities are available to the public for the loading and 
93.24 	unloading of passengers and their baggage and the handling, storage, care, shipment, 
93.25 	and delivery of merchandise, freight and baggage and other maritime and transportation 
93.26 	activities and functions directly related thereto, but not including property used for grain 
93.27 	elevator facilities; it being the declared policy of this state that such property when 
93.28 	so leased is public property used exclusively for a public purpose, notwithstanding the 
93.29 	one-year limitation in the provisions of section 273.19;
93.30 	(h) Notwithstanding the provisions of clause (g), when the annual rental received by 
93.31 	a seaway port authority in any calendar year for such leased property exceeds an amount 
93.32 	reasonably required for administrative expense of the authority per year, plus promotional 
93.33 	expense for the authority not to exceed the sum of $100,000 per year, to be expended 
93.34 	when and in the manner decided upon by the commissioners, plus an amount sufficient to 
93.35 	pay all installments of principal and interest due, or to become due, during such calendar 
93.36 	year and the next succeeding year on any revenue bonds issued by the authority, plus 
94.1 	25 percent of the gross annual rental to be retained by the authority for improvement, 
94.2 	development, or other contingencies, the authority shall make a payment in lieu of real 
94.3 	and personal property taxes of a reasonable portion of the remaining annual rental to the 
94.4 	county treasurer of the county in which such seaway port authority is principally located. 
94.5 	Any such payments to the county treasurer shall be disbursed by the treasurer on the same 
94.6 	basis as real estate taxes are divided among the various governmental units, but if such 
94.7 	port authority shall have received funds from the state of Minnesota and funds from any 
94.8 	city and county pursuant to Laws 1957, chapters 648, 831, and 849 and acts amendatory 
94.9 	thereof, then such disbursement by the county treasurer shall be on the same basis as real 
94.10 	estate taxes are divided among the various governmental units, except that the portion of 
94.11 	such payments which would otherwise go to other taxing units shall be divided equally 
94.12 	among the state of Minnesota and said county and city.

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

94.14 	Sec. 22. Minnesota Statutes 2012, section 272.025, subdivision 1, is amended to read:
94.15 		Subdivision 1.Statement of exemption. (a) Except in the case of property owned 
94.16 	by the state of Minnesota or any political subdivision thereof, and property exempt from 
94.17 	taxation under section 272.02, subdivisions 9, 10, 13, 15, 18, 20, and 22 to 25, and at the 
94.18 	times provided in subdivision 3, a taxpayer claiming an exemption from taxation on 
94.19 	property described in section 272.02, subdivisions 1 2 to 33, must file a statement of 
94.20 	exemption with the assessor of the assessment district in which the property is located.
94.21 	(b) A taxpayer claiming an exemption from taxation on property described in section 
94.22 	272.02, subdivision 10, must file a statement of exemption with the commissioner of 
94.23 	revenue, on or before February 15 of each year for which the taxpayer claims an exemption.
94.24 	(c) In case of sickness, absence or other disability or for good cause, the assessor 
94.25 	or the commissioner may extend the time for filing the statement of exemption for a 
94.26 	period not to exceed 60 days.
94.27 	(d) The commissioner of revenue shall prescribe the form and contents of the 
94.28 	statement of exemption.

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

94.30 	Sec. 23. Minnesota Statutes 2012, section 272.027, subdivision 1, is amended to read:
94.31 		Subdivision 1.Electricity generated to produce goods and services. Personal 
94.32 	property used to generate electric power is exempt from property taxation if the electric 
94.33 	power is used to manufacture or produce goods, products, or services, other than electric 
95.1 	power, by the owner of the electric generation plant. Except as provided in subdivisions 2 
95.2 	and 3, The exemption does not apply to property used to produce electric power for sale 
95.3 	to others and does not apply to real property. In determining the value subject to tax, 
95.4 	a proportionate share of the value of the generating facilities, equal to the proportion 
95.5 	that the power sold to others bears to the total generation of the plant, is subject to the 
95.6 	general property tax in the same manner as other property. Power generated in such a 
95.7 	plant and exchanged for an equivalent amount of power that is used for the manufacture or 
95.8 	production of goods, products, or services other than electric power by the owner of the 
95.9 	generating plant is considered to be used by the owner of the plant.

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

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

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

95.20 	Sec. 25. Minnesota Statutes 2013 Supplement, section 273.032, is amended to read:
95.21 	273.032 MARKET VALUE DEFINITION.
95.22 	(a) Unless otherwise provided, for the purpose of determining any property tax 
95.23 	levy limitation based on market value or any limit on net debt, the issuance of bonds, 
95.24 	certificates of indebtedness, or capital notes based on market value, any qualification to 
95.25 	receive state aid based on market value, or any state aid amount based on market value, 
95.26 	the terms "market value," "estimated market value," and "market valuation," whether 
95.27 	equalized or unequalized, mean the estimated market value of taxable property within the 
95.28 	local unit of government before any of the following or similar adjustments for:
95.29 	(1) the market value exclusions under:
95.30 	(i) section 273.11, subdivisions 14a and 14c (vacant platted land);
95.31 	(ii) section 273.11, subdivision 16 (certain improvements to homestead property);
95.32 	(iii) section 273.11, subdivisions 19 and 20 (certain improvements to business 
95.33 	properties);
96.1 	(iv) section 273.11, subdivision 21 (homestead property damaged by mold);
96.2 	(v) section 273.11, subdivision 22 (qualifying lead hazardous reduction projects);
96.3 	(vi) section 273.13, subdivision 34 (homestead of a disabled veteran or family 
96.4 	caregiver);
96.5 	(vii) section 273.13, subdivision 35 (homestead market value exclusion); or
96.6 	(2) the deferment of value under:
96.7 	(i) the Minnesota Agricultural Property Tax Law, section 273.111;
96.8 	(ii) the Aggregate Resource Preservation Law, section 273.1115;
96.9 	(iii)(ii) the Minnesota Open Space Property Tax Law, section 273.112;
96.10 	(iv) (iii) the rural preserves property tax program, section 273.114; or
96.11 	(v) (iv) the Metropolitan Agricultural Preserves Act, section 473H.10; or
96.12 	(3) the adjustments to tax capacity for:
96.13 	(i) tax increment financing under sections 469.174 to 469.1794;
96.14 	(ii) fiscal disparities under chapter 276A or 473F; or
96.15 	(iii) powerline credit under section 273.425.
96.16 	(b) Estimated market value under paragraph (a) also includes the market value 
96.17 	of tax-exempt property if the applicable law specifically provides that the limitation, 
96.18 	qualification, or aid calculation includes tax-exempt property.
96.19 	(c) Unless otherwise provided, "market value," "estimated market value," and 
96.20 	"market valuation" for purposes of property tax levy limitations and calculation of state 
96.21 	aid, refer to the estimated market value for the previous assessment year and for purposes 
96.22 	of limits on net debt, the issuance of bonds, certificates of indebtedness, or capital notes 
96.23 	refer to the estimated market value as last finally equalized.
96.24 	(d) For purposes of a provision of a home rule charter or of any special law that is not 
96.25 	codified in the statutes and that imposes a levy limitation based on market value or any limit 
96.26 	on debt, the issuance of bonds, certificates of indebtedness, or capital notes based on market 
96.27 	value, the terms "market value," "taxable market value," and "market valuation," whether 
96.28 	equalized or unequalized, mean "estimated market value" as defined in paragraph (a).

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

96.30 	Sec. 26. Minnesota Statutes 2012, section 273.061, subdivision 6, is amended to read:
96.31 		Subd. 6.Salaries; expenses. The salaries of the county assessor and assistants and 
96.32 	clerical help, shall be fixed by the board of county commissioners and shall be payable in 
96.33 	monthly installments out of the general revenue fund of the county. In counties with a 
96.34 	population of less than 50,000 inhabitants, according to the then last preceding federal 
97.1 	census, the board of county commissioners shall not fix the salary of the county assessor at 
97.2 	an amount below the following schedule:
97.3 	In counties with a population of less than 6,500, $5,900;
97.4 	In counties with a population of 6,500 but less than 12,000, $6,200;
97.5 	In counties with a population of 12,000 but less than 16,000, $6,500;
97.6 	In counties with a population of 16,000 but less than 21,000, $6,700;
97.7 	In counties with a population of 21,000 but less than 30,000, $6,900;
97.8 	In counties with a population of 30,000 but less than 39,500, $7,100;
97.9 	In counties with a population of 39,500 but less than 50,000, $7,300;
97.10 	In counties with a population of 50,000 or more, $8,300.
97.11 	In addition to their salaries, the county assessor and assistants shall be allowed their 
97.12 	expenses for reasonable and necessary travel in the performance of their duties, including 
97.13 	necessary travel, lodging and meal expense incurred by them while attending meetings of 
97.14 	instructions or official hearings called by the commissioner of revenue. These expenses 
97.15 	shall be payable out of the general revenue fund of the county, and shall be allowed on the 
97.16 	same basis as such expenses are allowed to other county officers.

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

97.18 	Sec. 27. Minnesota Statutes 2012, section 273.10, is amended to read:
97.19 	273.10 SCHOOL DISTRICTS.
97.20 	When assessing personal property the county assessor shall designate the number of 
97.21 	the school district in which each person assessed is liable for tax, by writing the number 
97.22 	of the district opposite each assessment in a column provided for that purpose in the 
97.23 	assessment book. When the personal property of any person is assessable in several 
97.24 	school districts, the amount in each shall be assessed separately, and the name of the 
97.25 	owner placed opposite each amount.

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

97.27 	Sec. 28. Minnesota Statutes 2012, section 273.11, subdivision 13, is amended to read:
97.28 		Subd. 13.Valuation of income-producing property. Beginning with the 1995 
97.29 	assessment, Only accredited assessors or senior accredited assessors or other licensed 
97.30 	assessors who have successfully completed at least two income-producing property 
97.31 	appraisal courses may value income-producing property for ad valorem tax purposes. 
97.32 	"Income-producing property" as used in this subdivision means the taxable property in 
97.33 	class 3a and 3b in section 273.13, subdivision 24; class 4a and 4c, except for seasonal 
98.1 	recreational property not used for commercial purposes; and class 5 in section 273.13, 
98.2 	subdivision 31. "Income-producing property" includes any property in class 4e in section 
98.3 	273.13, subdivision 25, that would be income-producing property under the definition in 
98.4 	this subdivision if it were not substandard. "Income-producing property appraisal course" 
98.5 	as used in this subdivision means a course of study of approximately 30 instructional 
98.6 	hours, with a final comprehensive test. An assessor must successfully complete the final 
98.7 	examination for each of the two required courses. The course must be approved by the 
98.8 	board of assessors.

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

98.10 	Sec. 29. Minnesota Statutes 2012, section 273.112, subdivision 6a, is amended to read:
98.11 		Subd. 6a.Guidelines issued by commissioner. The commissioner of revenue shall 
98.12 	develop and issue guidelines for qualification by private golf clubs under this section 
98.13 	covering the access to and use of the golf course by members and other adults so as to be 
98.14 	consistent with the purposes and terms of this section. The guidelines shall be mailed to 
98.15 	the county attorney and assessor of each county not later than 60 days following May 26, 
98.16 	1989. Within 15 days of receipt of the guidelines from the commissioner, the assessor 
98.17 	shall mail a copy of the guidelines to each golf club in the county.

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

98.19 	Sec. 30. Minnesota Statutes 2013 Supplement, section 273.1325, subdivision 2, 
98.20 	is amended to read:
98.21 		Subd. 2.Methodology. In making its annual assessment/sales ratio studies, the 
98.22 	Department of Revenue must use a methodology consistent with the most recent Standard 
98.23 	on Assessment Ratio Studies published by the assessment standards committee of the 
98.24 	International Association of Assessing Officers. The commissioner of revenue shall 
98.25 	supplement this general methodology with specific procedures necessary for execution of 
98.26 	the study in accordance with other Minnesota laws impacting the assessment/sales ratio 
98.27 	study. The commissioner shall document these specific procedures in writing and shall 
98.28 	publish the procedures in the State Register, but these procedures will not be considered 
98.29 	"rules" pursuant to the Minnesota Administrative Procedure Act. When property is sold and 
98.30 	the purchaser changes its use in a manner that would result in a change of classification of 
98.31 	the property, the assessment sales ratio study under this subdivision must take into account 
98.32 	that changed classification as soon as practicable. A change in status from homestead to 
98.33 	nonhomestead or from nonhomestead to homestead is not a change under this subdivision. 
99.1 	For purposes of this section, sections 270.12, subdivision 2, clause (8) (6), and 278.05, 
99.2 	subdivision 4, the commissioner of revenue shall exclude from the assessment/sales ratio 
99.3 	study the sale of any nonagricultural property which does not contain an improvement, 
99.4 	if (1) the statutory basis on which the property's taxable value as most recently assessed 
99.5 	is less than market value as defined in section 273.11, or (2) the property has undergone 
99.6 	significant physical change or a change of use since the most recent assessment.

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

99.8 	Sec. 31. Minnesota Statutes 2013 Supplement, section 273.1398, subdivision 3, 
99.9 	is amended to read:
99.10 		Subd. 3.Disparity reduction aid.  The amount of disparity aid certified for each 
99.11 	taxing district within each unique taxing jurisdiction is the amount certified for taxes 
99.12 	payable in the prior year shall be multiplied by the ratio of (1) the jurisdiction's tax 
99.13 	capacity using the class rates for taxes payable in the year for which aid is being computed, 
99.14 	to (2) its tax capacity using the class rates for taxes payable in the year prior to that for 
99.15 	which aid is being computed, both based upon taxable market values for taxes payable in 
99.16 	the year prior to that for which aid is being computed. If the commissioner determines 
99.17 	that insufficient information is available to reasonably and timely calculate the numerator 
99.18 	in this ratio for the first taxes payable year that a class rate change or new class rate is 
99.19 	effective, the commissioner shall omit the effects of that class rate change or new class 
99.20 	rate when calculating this ratio for aid payable in that taxes payable year. For aid payable 
99.21 	in the year following a year for which such omission was made, the commissioner shall 
99.22 	use in the denominator for the class that was changed or created, the tax capacity for taxes 
99.23 	payable two years prior to that in which the aid is payable, based on taxable market values 
99.24 	for taxes payable in the year prior to that for which aid is being computed.

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

99.26 	Sec. 32. Minnesota Statutes 2012, section 273.18, is amended to read:
99.27 	273.18 LISTING, VALUATION, AND ASSESSMENT OF EXEMPT 
99.28 	PROPERTY BY COUNTY AUDITORS.
99.29 	(a) In every sixth year after the year 1926 2010, the county auditor shall enter, in 
99.30 	a separate place in the real estate assessment books, the description of each tract of real 
99.31 	property exempt by law from taxation, with the name of the owner, if known, and the 
99.32 	assessor shall value and assess the same in the same manner that other real property is 
100.1 	valued and assessed, and shall designate in each case the purpose for which the property is 
100.2 	used.
100.3 	(b) For purposes of the apportionment of fire state aid under section 69.021, 
100.4 	subdivision 7, the county auditor shall include on the abstract of assessment of exempt real 
100.5 	property filed under this section, the total number of acres of all natural resources lands for 
100.6 	which in lieu payments are made under sections 477A.11 to 477A.14. The assessor shall 
100.7 	estimate its market value, provided that if the assessor is not able to estimate the market 
100.8 	value of the land on a per parcel basis, the assessor shall furnish the commissioner of 
100.9 	revenue with an estimate of the average value per acre of this land within the county.

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

100.11 	Sec. 33. Minnesota Statutes 2012, section 274.01, subdivision 1, is amended to read:
100.12 		Subdivision 1.Ordinary board; meetings, deadlines, grievances. (a) The town 
100.13 	board of a town, or the council or other governing body of a city, is the board of appeal 
100.14 	and equalization except (1) in cities whose charters provide for a board of equalization or 
100.15 	(2) in any city or town that has transferred its local board of review power and duties to 
100.16 	the county board as provided in subdivision 3. The county assessor shall fix a day and 
100.17 	time when the board or the board of equalization shall meet in the assessment districts 
100.18 	of the county. Notwithstanding any law or city charter to the contrary, a city board of 
100.19 	equalization shall be referred to as a board of appeal and equalization. On or before 
100.20 	February 15 of each year the assessor shall give written notice of the time to the city or 
100.21 	town clerk. Notwithstanding the provisions of any charter to the contrary, the meetings 
100.22 	must be held between April 1 and May 31 each year. The clerk shall give published and 
100.23 	posted notice of the meeting at least ten days before the date of the meeting.
100.24 	The board shall meet at the office of the clerk to review the assessment and 
100.25 	classification of property in the town or city. No changes in valuation or classification 
100.26 	which are intended to correct errors in judgment by the county assessor may be made by 
100.27 	the county assessor after the board has adjourned in those cities or towns that hold a 
100.28 	local board of review; however, corrections of errors that are merely clerical in nature or 
100.29 	changes that extend homestead treatment to property are permitted after adjournment until 
100.30 	the tax extension date for that assessment year. The changes must be fully documented and 
100.31 	maintained in the assessor's office and must be available for review by any person. A copy 
100.32 	of the changes made during this period in those cities or towns that hold a local board of 
100.33 	review must be sent to the county board no later than December 31 of the assessment year.
100.34 	(b) The board shall determine whether the taxable property in the town or city has 
100.35 	been properly placed on the list and properly valued by the assessor. If real or personal 
101.1 	property has been omitted, the board shall place it on the list with its market value, and 
101.2 	correct the assessment so that each tract or lot of real property, and each article, parcel, 
101.3 	or class of personal property, is entered on the assessment list at its market value. No 
101.4 	assessment of the property of any person may be raised unless the person has been 
101.5 	duly notified of the intent of the board to do so. On application of any person feeling 
101.6 	aggrieved, the board shall review the assessment or classification, or both, and correct 
101.7 	it as appears just. The board may not make an individual market value adjustment or 
101.8 	classification change that would benefit the property if the owner or other person having 
101.9 	control over the property has refused the assessor access to inspect the property and the 
101.10 	interior of any buildings or structures as provided in section 273.20. A board member 
101.11 	shall not participate in any actions of the board which result in market value adjustments 
101.12 	or classification changes to property owned by the board member, the spouse, parent, 
101.13 	stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle, aunt, nephew, 
101.14 	or niece of a board member, or property in which a board member has a financial interest. 
101.15 	The relationship may be by blood or marriage.
101.16 	(c) A local board may reduce assessments upon petition of the taxpayer but the total 
101.17 	reductions must not reduce the aggregate assessment made by the county assessor by more 
101.18 	than one percent. If the total reductions would lower the aggregate assessments made by 
101.19 	the county assessor by more than one percent, none of the adjustments may be made. The 
101.20 	assessor shall correct any clerical errors or double assessments discovered by the board 
101.21 	without regard to the one percent limitation.
101.22 	(d) A local board does not have authority to grant an exemption or to order property 
101.23 	removed from the tax rolls.
101.24 	(e) A majority of the members may act at the meeting, and adjourn from day to day 
101.25 	until they finish hearing the cases presented. The assessor shall attend, with the assessment 
101.26 	books and papers, and take part in the proceedings, but must not vote. The county assessor, 
101.27 	or an assistant delegated by the county assessor shall attend the meetings. The board shall 
101.28 	list separately, on a form appended to the assessment book, all omitted property added 
101.29 	to the list by the board and all items of property increased or decreased, with the market 
101.30 	value of each item of property, added or changed by the board, placed opposite the item. 
101.31 	The county assessor shall enter all changes made by the board in the assessment book.
101.32 	(f) Except as provided in subdivision 3, if a person fails to appear in person, by 
101.33 	counsel, or by written communication before the board after being duly notified of the 
101.34 	board's intent to raise the assessment of the property, or if a person feeling aggrieved by an 
101.35 	assessment or classification fails to apply for a review of the assessment or classification, 
101.36 	the person may not appear before the county board of appeal and equalization for a review 
102.1 	of the assessment or classification. This paragraph does not apply if an assessment was 
102.2 	made after the local board meeting, as provided in section 273.01, or if the person can 
102.3 	establish not having received notice of market value at least five days before the local 
102.4 	board meeting.
102.5 	(g) The local board must complete its work and adjourn within 20 days from the 
102.6 	time of convening stated in the notice of the clerk, unless a longer period is approved by 
102.7 	the commissioner of revenue. No action taken after that date is valid. All complaints 
102.8 	about an assessment or classification made after the meeting of the board must be heard 
102.9 	and determined by the county board of equalization. A nonresident may, at any time, 
102.10 	before the meeting of the board file written objections to an assessment or classification 
102.11 	with the county assessor. The objections must be presented to the board at its meeting by 
102.12 	the county assessor for its consideration.

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

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

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

102.25 	Sec. 35. Minnesota Statutes 2012, section 275.08, subdivision 1a, is amended to read:
102.26 		Subd. 1a.Computation of tax capacity. For taxes payable in 1989, the county 
102.27 	auditor shall compute the gross tax capacity for each parcel according to the class rates 
102.28 	specified in section 273.13. The gross tax capacity will be the appropriate class rate 
102.29 	multiplied by the parcel's market value. For taxes payable in 1990 and subsequent years,
102.30 	 The county auditor shall compute the net tax capacity for each parcel according to the 
102.31 	class rates specified in section 273.13. The net tax capacity will be the appropriate class 
102.32 	rate multiplied by the parcel's market value.

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

103.1 	Sec. 36. Minnesota Statutes 2012, section 275.08, subdivision 1d, is amended to read:
103.2 		Subd. 1d.Additional adjustment. If, after computing each local government's 
103.3 	adjusted local tax rate within a unique taxing jurisdiction pursuant to subdivision 1c, the 
103.4 	auditor finds that the total adjusted local tax rate of all local governments combined is 
103.5 	less than 90 percent of gross tax capacity for taxes payable in 1989 and 90 percent of net 
103.6 	tax capacity for taxes payable in 1990 and thereafter, the auditor shall increase each local 
103.7 	government's adjusted local tax rate proportionately so the total adjusted local tax rate of 
103.8 	all local governments combined equals 90 percent. The total amount of the increase in 
103.9 	tax resulting from the increased local tax rates must not exceed the amount of disparity 
103.10 	aid allocated to the unique taxing district under section 273.1398. The auditor shall 
103.11 	certify to the Department of Revenue the difference between the disparity aid originally 
103.12 	allocated under section 273.1398, subdivision 3, and the amount necessary to reduce 
103.13 	the total adjusted local tax rate of all local governments combined to 90 percent. Each 
103.14 	local government's disparity reduction aid payment under section 273.1398, subdivision 
103.15 	6, must be reduced accordingly.

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

103.17 	Sec. 37. Minnesota Statutes 2013 Supplement, section 275.70, subdivision 5, is 
103.18 	amended to read:
103.19 		Subd. 5.Special levies. "Special levies" means those portions of ad valorem taxes 
103.20 	levied by a local governmental unit for the following purposes or in the following manner:
103.21 	(1) to pay the costs of the principal and interest on bonded indebtedness or to 
103.22 	reimburse for the amount of liquor store revenues used to pay the principal and interest 
103.23 	due on municipal liquor store bonds in the year preceding the year for which the levy 
103.24 	limit is calculated;
103.25 	(2) to pay the costs of principal and interest on certificates of indebtedness issued for 
103.26 	any corporate purpose except for the following:
103.27 	(i) tax anticipation or aid anticipation certificates of indebtedness;
103.28 	(ii) certificates of indebtedness issued under sections 298.28 and 298.282;
103.29 	(iii) certificates of indebtedness used to fund current expenses or to pay the costs of 
103.30 	extraordinary expenditures that result from a public emergency; or
103.31 	(iv) certificates of indebtedness used to fund an insufficiency in tax receipts or an 
103.32 	insufficiency in other revenue sources, provided that nothing in this subdivision limits the 
103.33 	special levy authorized under section 475.755;
103.34 	(3) to provide for the bonded indebtedness portion of payments made to another 
103.35 	political subdivision of the state of Minnesota;
104.1 	(4) to fund payments made to the Minnesota State Armory Building Commission 
104.2 	under section 193.145, subdivision 2, to retire the principal and interest on armory 
104.3 	construction bonds;
104.4 	(5) property taxes approved by voters which are levied against the referendum 
104.5 	market value as provided under section 275.61;
104.6 	(6) to fund matching requirements needed to qualify for federal or state grants or 
104.7 	programs to the extent that either (i) the matching requirement exceeds the matching 
104.8 	requirement in calendar year 2001, or (ii) it is a new matching requirement that did not 
104.9 	exist prior to 2002;
104.10 	(7) to pay the expenses reasonably and necessarily incurred in preparing for or 
104.11 	repairing the effects of natural disaster including the occurrence or threat of widespread 
104.12 	or severe damage, injury, or loss of life or property resulting from natural causes, in 
104.13 	accordance with standards formulated by the Emergency Services Division of the state 
104.14 	Department of Public Safety, as allowed by the commissioner of revenue under section 
104.15 	275.74, subdivision 2;
104.16 	(8) pay amounts required to correct an error in the levy certified to the county 
104.17 	auditor by a city or county in a levy year, but only to the extent that when added to the 
104.18 	preceding year's levy it is not in excess of an applicable statutory, special law or charter 
104.19 	limitation, or the limitation imposed on the governmental subdivision by sections 275.70 
104.20 	to 275.74 in the preceding levy year;
104.21 	(9) to pay an abatement under section 469.1815;
104.22 	(10) to pay any costs attributable to increases in the employer contribution rates under 
104.23 	chapter 353, or locally administered pension plans, that are effective after June 30, 2001;
104.24 	(11) to pay the operating or maintenance costs of a county jail as authorized in section 
104.25 	641.01 or 641.262, or of a correctional facility as defined in section 241.021, subdivision 1, 
104.26 	paragraph (f), to the extent that the county can demonstrate to the commissioner of revenue 
104.27 	that the amount has been included in the county budget as a direct result of a rule, minimum 
104.28 	requirement, minimum standard, or directive of the Department of Corrections, or to pay 
104.29 	the operating or maintenance costs of a regional jail as authorized in section 641.262. For 
104.30 	purposes of this clause, a district court order is not a rule, minimum requirement, minimum 
104.31 	standard, or directive of the Department of Corrections. If the county utilizes this special 
104.32 	levy, except to pay operating or maintenance costs of a new regional jail facility under 
104.33 	sections 641.262 to 641.264 which will not replace an existing jail facility, any amount 
104.34 	levied by the county in the previous levy year for the purposes specified under this clause 
104.35 	and included in the county's previous year's levy limitation computed under section 
104.36 	275.71, shall be deducted from the levy limit base under section 275.71, subdivision 2, 
105.1 	when determining the county's current year levy limitation. The county shall provide the 
105.2 	necessary information to the commissioner of revenue for making this determination;
105.3 	(12) to pay for operation of a lake improvement district, as authorized under section 
105.4 	103B.555. If the county utilizes this special levy, any amount levied by the county in the 
105.5 	previous levy year for the purposes specified under this clause and included in the county's 
105.6 	previous year's levy limitation computed under section 275.71 shall be deducted from 
105.7 	the levy limit base under section 275.71, subdivision 2, when determining the county's 
105.8 	current year levy limitation. The county shall provide the necessary information to the 
105.9 	commissioner of revenue for making this determination;
105.10 	(13) to repay a state or federal loan used to fund the direct or indirect required 
105.11 	spending by the local government due to a state or federal transportation project or other 
105.12 	state or federal capital project. This authority may only be used if the project is not a 
105.13 	local government initiative;
105.14 	(14) to pay for court administration costs as required under section 273.1398, 
105.15 	subdivision 4b, less the (i) county's share of transferred fines and fees collected by the 
105.16 	district courts in the county for calendar year 2001 and (ii) the aid amount certified to be 
105.17 	paid to the county in 2004 under section 273.1398, subdivision 4c; however, for taxes 
105.18 	levied to pay for these costs in the year in which the court financing is transferred to the 
105.19 	state, the amount under this clause is limited to the amount of aid the county is certified to 
105.20 	receive under section 273.1398, subdivision 4a;
105.21 	(15) (14) to fund a firefighters relief association as required under Laws 2013, 
105.22 	chapter 111, article 5, sections 31 to 42, to the extent that the required amount exceeds the 
105.23 	amount levied for this purpose in 2001;
105.24 	(16) (15) for purposes of a storm sewer improvement district under section 444.20;
105.25 	(17) (16) to pay for the maintenance and support of a city or county society for 
105.26 	the prevention of cruelty to animals under section 343.11, but not to exceed in any year 
105.27 	$4,800 or the sum of $1 per capita based on the county's or city's population as of the most 
105.28 	recent federal census, whichever is greater. If the city or county uses this special levy, any 
105.29 	amount levied by the city or county in the previous levy year for the purposes specified 
105.30 	in this clause and included in the city's or county's previous year's levy limit computed 
105.31 	under section 275.71, must be deducted from the levy limit base under section 275.71, 
105.32 	subdivision 2, in determining the city's or county's current year levy limit;
105.33 	(18) (17) for counties, to pay for the increase in their share of health and human 
105.34 	service costs caused by reductions in federal health and human services grants effective 
105.35 	after September 30, 2007;
106.1 	(19) (18) for a city, for the costs reasonably and necessarily incurred for securing, 
106.2 	maintaining, or demolishing foreclosed or abandoned residential properties, as allowed by 
106.3 	the commissioner of revenue under section 275.74, subdivision 2. A city must have either 
106.4 	(i) a foreclosure rate of at least 1.4 percent in 2007, or (ii) a foreclosure rate in 2007 in 
106.5 	the city or in a zip code area of the city that is at least 50 percent higher than the average 
106.6 	foreclosure rate in the metropolitan area, as defined in section 473.121, subdivision 2, 
106.7 	to use this special levy. For purposes of this paragraph, "foreclosure rate" means the 
106.8 	number of foreclosures, as indicated by sheriff sales records, divided by the number of 
106.9 	households in the city in 2007;
106.10 	(20) for a city, for the unreimbursed costs of redeployed traffic-control agents and 
106.11 	lost traffic citation revenue due to the collapse of the Interstate 35W bridge, as certified 
106.12 	to the Federal Highway Administration;
106.13 	(21) (19) to pay costs attributable to wages and benefits for sheriff, police, and fire 
106.14 	personnel. If a local governmental unit did not use this special levy in the previous year its 
106.15 	levy limit base under section 275.71 shall be reduced by the amount equal to the amount it 
106.16 	levied for the purposes specified in this clause in the previous year;
106.17 	(22) (20) an amount equal to any reductions in the certified aids or credit 
106.18 	reimbursements payable under sections 477A.011 to 477A.014, and section 273.1384, 
106.19 	due to unallotment under section 16A.152 or reductions under another provision of law. 
106.20 	The amount of the levy allowed under this clause for each year is limited to the amount 
106.21 	unallotted or reduced from the aids and credit reimbursements certified for payment in the 
106.22 	year following the calendar year in which the tax levy is certified unless the unallotment 
106.23 	or reduction amount is not known by September 1 of the levy certification year, and 
106.24 	the local government has not adjusted its levy under section 275.065, subdivision 6, or 
106.25 	275.07, subdivision 6, in which case that unallotment or reduction amount may be levied 
106.26 	in the following year;
106.27 	(23) (21) to pay for the difference between one-half of the costs of confining sex 
106.28 	offenders undergoing the civil commitment process and any state payments for this 
106.29 	purpose pursuant to section 253D.12;
106.30 	(24) (22) for a county to pay the costs of the first year of maintaining and operating 
106.31 	a new facility or new expansion, either of which contains courts, corrections, dispatch, 
106.32 	criminal investigation labs, or other public safety facilities and for which all or a portion 
106.33 	of the funding for the site acquisition, building design, site preparation, construction, and 
106.34 	related equipment was issued or authorized prior to the imposition of levy limits in 2008. 
106.35 	The levy limit base shall then be increased by an amount equal to the new facility's first 
106.36 	full year's operating costs as described in this clause; and
107.1 	(25) (23) for the estimated amount of reduction to market value credit reimbursements 
107.2 	under section 273.1384 for credits payable in the year in which the levy is payable.

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

107.4 	Sec. 38. Minnesota Statutes 2012, section 275.74, subdivision 2, is amended to read:
107.5 		Subd. 2.Authorization for special levies. (a) A local governmental unit may 
107.6 	request authorization to levy for unreimbursed costs for natural disasters under section 
107.7 	275.70, subdivision 5, clause (7). The local governmental unit shall submit a request to 
107.8 	levy under section 275.70, subdivision 5, clause (7), to the commissioner of revenue by 
107.9 	September 30 of the levy year and the request must include information documenting the 
107.10 	estimated unreimbursed costs. The commissioner of revenue may grant levy authority, 
107.11 	up to the amount requested based on the documentation submitted. All decisions of the 
107.12 	commissioner are final.
107.13 	(b) A city may request authorization to levy for reasonable and necessary costs for 
107.14 	securing, maintaining, or demolishing foreclosed or abandoned residential properties under 
107.15 	section 275.70, subdivision 5, clause (19) (18). The local governmental unit shall submit a 
107.16 	request to levy under section 275.70, subdivision 5, clause (19) (18), to the commissioner 
107.17 	of revenue by September 30 of the levy year and the request must include information 
107.18 	documenting the estimated costs. For taxes payable in 2009, the amount may include 
107.19 	unanticipated costs incurred above the amount budgeted for these purposes in 2008. Costs 
107.20 	of securing foreclosed or abandoned residential properties include payment for police and 
107.21 	fire department services. The commissioner of revenue may grant levy authority, up to the 
107.22 	lesser of (1) the amount requested based on the documentation submitted, or (2) $3,000 
107.23 	multiplied by the number of foreclosed residential properties, as defined by sheriff sales 
107.24 	records, in calendar year 2007. All decisions of the commissioner are final.

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

107.26 	Sec. 39. Minnesota Statutes 2012, section 275.75, is amended to read:
107.27 	275.75 CHARTER EXEMPTION FOR AID LOSS.
107.28 	Notwithstanding any other provision of a municipal charter that limits ad valorem 
107.29 	taxes to a lesser amount, or that would require voter approval for any increase, the 
107.30 	governing body of a municipality may by resolution increase its levy in any year by an 
107.31 	amount equal to its special levies under section 275.70, subdivision 5, clauses (22) and 
107.32 	(25) (20) and (23).

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

108.2 	Sec. 40. Minnesota Statutes 2012, section 279.03, is amended to read:
108.3 	279.03 INTEREST ON DELINQUENT PROPERTY TAXES.
108.4 		Subdivision 1.Rate Interest calculation. The rate of interest on delinquent 
108.5 	property taxes levied in 1979 and prior years is fixed at six percent per year until January 
108.6 	1, 1983. Thereafter Interest is payable at the rate determined pursuant to section 549.09. 
108.7 	The rate of interest on delinquent property taxes levied in 1980 and subsequent years is 
108.8 	the rate determined pursuant to section 549.09. All provisions of law except section 
108.9 	549.09 providing for the calculation of interest at any different rate on delinquent taxes in 
108.10 	any notice or proceeding in connection with the payment, collection, sale, or assignment 
108.11 	of delinquent taxes, or redemption from such sale or assignment are hereby amended 
108.12 	to correspond herewith. Section 549.09shall continue in force applies with respect to 
108.13 	judgments arising out of petitions for review filed pursuant to chapter 278 irrespective of 
108.14 	the levy year.
108.15 	For property taxes levied in 1980 and prior years, interest is to be calculated at 
108.16 	simple interest from the second Monday in May following the year in which the taxes 
108.17 	become due until the time that the taxes and penalties are paid, computed on the amount 
108.18 	of unpaid taxes, penalties and costs. For property taxes levied in 1981 and subsequent 
108.19 	years, Interest shall commence on the first day of January following the year in which the 
108.20 	taxes become due, but the county treasurer need not calculate interest on unpaid taxes and 
108.21 	penalties on the tax list returned to the county auditor pursuant to section 279.01.
108.22 	If interest is payable for a portion of a year, the interest is calculated only for the 
108.23 	months that the taxes or penalties remain unpaid, and for this purpose a portion of a month 
108.24 	is deemed to be a whole month.
108.25 		Subd. 1a.Rate after December 31, 1990. (a) Except as provided in paragraph (b), 
108.26 	interest on delinquent property taxes, penalties, and costs unpaid on or after January 1, 
108.27 	1991, shall be is payable at the per annum rate determined in section 270C.40, subdivision 
108.28 	5. If the rate so determined is less than ten percent, the rate of interest shall be is ten 
108.29 	percent. The maximum per annum rate shall be is 14 percent if the rate specified under 
108.30 	section 270C.40, subdivision 5, exceeds 14 percent. The rate shall be is subject to change 
108.31 	on January 1 of each year.
108.32 	(b) If a person is the owner of one or more parcels of property on which taxes are 
108.33 	delinquent, and the delinquent taxes are more than 25 percent of the prior year's school 
108.34 	district levy, interest on the delinquent property taxes, penalties, and costs unpaid after 
109.1 	January 1, 1992, shall be is payable at twice the rate determined under paragraph (a) for 
109.2 	the year.
109.3 		Subd. 2.Composite judgment. Amounts included in composite judgments 
109.4 	authorized by section 279.37, subdivision 1, and confessed on or after July 1, 1982, are 
109.5 	subject to interest at the rate determined pursuant to section 549.09. Amounts confessed 
109.6 	under this authority after December 31, 1990, are subject to interest at the rate calculated 
109.7 	under subdivision 1a. During each calendar year, interest shall accrue accrues on the 
109.8 	unpaid balance of the composite judgment from the time it is confessed until it is paid. 
109.9 	The rate of interest is subject to change each year in the same manner that section 549.09
109.10 	 or as provided in subdivision 1a, whichever is applicable, for rate changes. Interest on the 
109.11 	unpaid contract balance on judgments confessed before July 1, 1982, is payable at the rate 
109.12 	applicable to the judgment at the time that it was confessed.

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

109.14 	Sec. 41. Minnesota Statutes 2012, section 279.16, is amended to read:
109.15 	279.16 JUDGMENT WHEN NO ANSWER; FORM; ENTRY.
109.16 	Upon the expiration of 20 days from the later of the filing of the affidavit of 
109.17 	publication or the filing of the affidavit of mailing pursuant to section 279.131, the 
109.18 	court administrator shall enter judgment against each and every such parcel as to which 
109.19 	no answer has been filed, which judgment shall include all such parcels, and shall be 
109.20 	substantially in the following form:

109.21	State of Minnesota
	)
	District Court,
		
109.22		) ss.
			
109.23	County of 
........	)
	.............. Judicial District.
		
109.24 	In the matter of the proceedings to enforce payment of the taxes on real estate 
109.25 	remaining delinquent on the first Monday in January, ......., for the county of ...................., 
109.26 	state of Minnesota.
109.27 	A list of taxes on real property, delinquent on the first Monday in January, ......., for 
109.28 	said county of ................., having been duly filed in the office of the court administrator of 
109.29 	this court, and the notice and list required by law having been duly published and mailed 
109.30 	as required by law, and more than 20 days having elapsed since the last publication of the 
109.31 	notice and list, and no answer having been filed by any person, company, or corporation 
109.32 	to the taxes upon any of the parcels of land hereinafter described, it is hereby adjudged 
109.33 	that each parcel of land hereinafter described is liable for taxes, penalties, and costs to the 
109.34 	amount set opposite the same, as follows:

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

110.8		Dated this ............. day of ..............., .......
		
110.9110.10
110.11
		........
Court Administrator of the District Court,
County of 
........		
110.12 	The judgment shall be entered by the court administrator in a book to be kept by 
110.13 	the court administrator, to be called the real estate tax judgment book, and signed by the 
110.14 	court administrator. The judgment shall be written out on the left-hand pages of the book, 
110.15 	leaving the right-hand pages blank for the entries in this chapter hereinafter provided; and
110.16 	 The same presumption in favor of the regularity and validity of the judgment shall be 
110.17 	deemed to exist as in respect to judgments in civil actions in such court, except where taxes 
110.18 	have been paid before the entry of judgment, or where the land is exempt from taxation, in 
110.19 	which cases the judgment shall be prima facie evidence only of its regularity and validity.

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

110.21 	Sec. 42. Minnesota Statutes 2012, section 279.23, is amended to read:
110.22 	279.23 COPY OF JUDGMENT TO COUNTY AUDITOR.
110.23 	When any real estate tax judgment is entered, the court administrator shall forthwith
110.24 	 deliver to the county auditor, in a book to be provided by the auditor, a certified copy of 
110.25 	such judgment, which shall be written on the left-hand pages of the book, leaving the 
110.26 	right-hand pages blank.

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

110.28 	Sec. 43. Minnesota Statutes 2012, section 279.25, is amended to read:
110.29 	279.25 PAYMENT BEFORE JUDGMENT.
110.30 	Before sale any person may pay the amount adjudged against any parcel of land. 
110.31 	If payment is made before entry of judgment, and the delinquent list has been filed with 
110.32 	the court administrator, the county auditor shall immediately certify such payment to the 
110.33 	court administrator, who shall note the same on such delinquent list; and all proceedings 
111.1 	pending against such parcel shall thereupon be discontinued. If payment is made after 
111.2 	judgment is entered and before sale, the auditor shall certify such payment to the clerk, 
111.3 	who, upon production of such certificate and the payment of a fee of ten cents, shall enter 
111.4 	on the right-hand page of the real estate tax judgment book, and opposite the description 
111.5 	of such parcel, satisfaction of the judgment against the same. The auditor shall make 
111.6 	proper records of all payments made under this section.

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

111.8 	Sec. 44. Minnesota Statutes 2013 Supplement, section 279.37, subdivision 2, is 
111.9 	amended to read:
111.10 		Subd. 2.Installment payments. The owner of any such parcel, or any person to 
111.11 	whom the right to pay taxes has been given by statute, mortgage, or other agreement, may 
111.12 	make and file with the county auditor of the county in which the parcel is located a written 
111.13 	offer to pay the current taxes each year before they become delinquent, or to contest the 
111.14 	taxes under Minnesota Statutes 1941, sections 278.01 to 278.13 chapter 278, and agree 
111.15 	to confess judgment for the amount provided, as determined by the county auditor. By 
111.16 	filing the offer, the owner waives all irregularities in connection with the tax proceedings 
111.17 	affecting the parcel and any defense or objection which the owner may have to the 
111.18 	proceedings, and also waives the requirements of any notice of default in the payment of 
111.19 	any installment or interest to become due pursuant to the composite judgment to be so 
111.20 	entered. Unless the property is subject to subdivision 1a, with the offer, the owner shall (i) 
111.21 	tender one-tenth of the amount of the delinquent taxes, costs, penalty, and interest, and 
111.22 	(ii) tender all current year taxes and penalty due at the time the confession of judgment is 
111.23 	entered. In the offer, the owner shall agree to pay the balance in nine equal installments, 
111.24 	with interest as provided in section 279.03, payable annually on installments remaining 
111.25 	unpaid from time to time, on or before December 31 of each year following the year in 
111.26 	which judgment was confessed. The offer must be substantially as follows:
111.27 	"To the court administrator of the district court of ........... county, I, ....................., 
111.28 	am the owner of the following described parcel of real estate located in .................... 
111.29 	county, Minnesota:
111.30 	.............................. Upon that real estate there are delinquent taxes for the year ........., and 
111.31 	prior years, as follows: (here insert year of delinquency and the total amount of delinquent 
111.32 	taxes, costs, interest, and penalty). By signing this document I offer to confess judgment in 
111.33 	the sum of $...... and waive all irregularities in the tax proceedings affecting these taxes and 
111.34 	any defense or objection which I may have to them, and direct judgment to be entered for 
112.1 	the amount stated above, minus the sum of $............, to be paid with this document, which 
112.2 	is one-tenth or one-fifth of the amount of the taxes, costs, penalty, and interest stated above. 
112.3 	I agree to pay the balance of the judgment in nine or four equal, annual installments, with 
112.4 	interest as provided in section 279.03, payable annually, on the installments remaining 
112.5 	unpaid. I agree to pay the installments and interest on or before December 31 of each year 
112.6 	following the year in which this judgment is confessed and current taxes each year before 
112.7 	they become delinquent, or within 30 days after the entry of final judgment in proceedings 
112.8 	to contest the taxes under Minnesota Statutes, sections 278.01 to 278.13 chapter 278.
112.9 	Dated .............., ......."

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

112.11 	Sec. 45. Minnesota Statutes 2012, section 280.001, is amended to read:
112.12 	280.001 PUBLIC SALES, AUDITOR'S CERTIFICATES ABOLISHED.
112.13 	Effective the second Monday in May 1974, and each year thereafter, No parcel of 
112.14 	land against which judgment has been entered and remains unsatisfied for the taxes of 
112.15 	the preceding year or years may be sold at public vendue as provided in sections 280.01
112.16 	and 280.02 by the county auditor but shall be treated in the same manner and regarded in 
112.17 	all respects as land bid in for the state by the auditor in the manner provided in section 
112.18 	280.02. No notice of sale required by section 280.01 shall be published or posted in 1974 
112.19 	and in years thereafter, and no auditor's certificate authorized by section 280.03 shall be 
112.20 	issued on the second Monday in May 1974, or thereafter.

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

112.22 	Sec. 46. Minnesota Statutes 2012, section 280.03, is amended to read:
112.23 	280.03 CERTIFICATE OF SALE.
112.24 	The county auditor shall execute to the purchaser of each parcel a certificate which 
112.25 	may be substantially in the following form:
112.26 	"I, .........., auditor of the county of .........., state of Minnesota, do hereby certify that 
112.27 	at the sale of lands pursuant to the real estate tax judgment entered in the district court 
112.28 	in the county of .........., on the .......... day of .........., ......., in proceedings to enforce the 
112.29 	payment of taxes delinquent on real estate for the years .........., for the county of .........., 
112.30 	which sale was held at ..............., in said county of ........, on the ........ day of ........, ......., 
112.31 	the following described parcel of land, situate in said county of .........., state of Minnesota: 
112.32 	(insert description), was offered for sale to the bidder who should offer to pay the amount 
112.33 	for which the same was to be sold, at the lowest annual rate of interest on such amount; 
113.1 	and at said sale I did sell the said parcel of land to .......... for the sum of .......... dollars, 
113.2 	with interest at .......... percent per annum on such amount, that being the sum for which the 
113.3 	same was to be sold, and such rate of interest being the lowest rate percent per annum bid 
113.4 	on such sum; and, the sum having been paid, I do therefore, in consideration thereof, and 
113.5 	pursuant to the statute in such case made and provided, convey the said parcel of land, in 
113.6 	fee simple, subject to easements and restrictions of record at the date of the tax judgment 
113.7 	sale, including, but without limitation, permits for telephone, telegraph and electric 
113.8 	power lines either by underground cable or conduit or otherwise, sewer and water lines, 
113.9 	highways, railroads, and pipe lines for gas, liquids, or solids in suspension, to said .........., 
113.10 	and the heirs and assigns of ......., forever, subject to redemption as provided by law.
113.11 	Witness my hand and official seal this ........ day of ........, ....... .

113.12
113.13		........
County Auditor."
		
113.14 	If the land shall not be redeemed as provided in chapter 281, such certificate shall 
113.15 	pass to the purchaser an estate therein, in fee simple, without any other act or deed 
113.16 	whatever subject to easements and restrictions of record at the date of the tax judgment 
113.17 	sale, including, but without limitation, permits for telephone, telegraph, and electric 
113.18 	power lines either by underground cable or conduit or otherwise, sewer and water lines, 
113.19 	highways, railroads, and pipe lines for gas, liquids, or solids in suspension. Such certificate 
113.20 	may be recorded, after the time for redemption shall have expired, as other deeds of real 
113.21 	estate, and with like effect. If any purchaser at such sale shall purchase more than one 
113.22 	parcel, the auditor shall issue to the purchaser a certificate for each parcel so purchased.

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

113.24 	Sec. 47. Minnesota Statutes 2012, section 280.07, is amended to read:
113.25 	280.07 ENTRIES IN JUDGMENT BOOKS AFTER SALE.
113.26 	Immediately after such sale the county auditor shall set out in the copy judgment 
113.27 	book record that all parcels were bid in for the state. The county auditor shall thereupon 
113.28 	deliver such book to notify the court administrator, who shall forthwith enter on the 
113.29 	right-hand page of the real estate tax judgment book, opposite the description of each 
113.30 	parcel sold, the words "bid in for the state," and thereupon redeliver the copy judgment 
113.31 	book to the auditor. Upon redemption the auditor shall make a note thereon in the copy 
113.32 	judgment book, opposite the parcel redeemed.

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

114.1 	Sec. 48. Minnesota Statutes 2012, section 280.11, is amended to read:
114.2 	280.11 LANDS BID IN FOR STATE.
114.3 	At any time after any parcel of land has been bid in for the state, the same not having 
114.4 	been redeemed, the county auditor shall assign and convey the same, and all the right of 
114.5 	the state therein acquired at such sale, to any person who shall pay the amount for which 
114.6 	the same was bid in, with interest at the rate of 12 percent per annum, and the amount of 
114.7 	all subsequent delinquent taxes, penalties, costs, and interest at such rate upon the same 
114.8 	from the time when such taxes became delinquent. The county auditor shall execute to 
114.9 	such person a certificate for such parcel, which may be substantially in the following form:
114.10 	"I, .........., auditor of the county of .........., state of Minnesota, do hereby certify that 
114.11 	at the sale of lands pursuant to the real estate tax judgment entered in the district court 
114.12 	in the county of .........., on the .......... day of .........., ......., in proceedings to enforce the 
114.13 	payment of taxes delinquent upon real estate for the years .......... for the county of .........., 
114.14 	which sale was held at .........., in said county of .........., on the .......... day of .........., ......., 
114.15 	the following described parcel of land, situate in said county of .........., state of Minnesota: 
114.16 	(insert description), was duly offered for sale; and, no one bidding upon such offer an 
114.17 	amount equal to that for which the parcel was subject to be sold, the same was then bid in 
114.18 	for the state at such amount, being the sum of .......... dollars; and the same still remaining 
114.19 	unredeemed, and on this day .......... having paid into the treasury of the county the amount 
114.20 	for which the same was so bid in, and all subsequent delinquent taxes, penalties, costs, 
114.21 	and interest, amounting in all to .......... dollars, therefore, in consideration thereof, and 
114.22 	pursuant to the statute in such case made and provided, I do hereby assign and convey this 
114.23 	parcel of land, in fee simple, subject to easements and restrictions of record at the date of 
114.24 	the tax judgment sale, including but without limitation, permits for telephone, telegraph,
114.25 	 and electric power lines either by underground cable or conduit or otherwise, sewer and 
114.26 	water lines, highways, railroads, and pipe lines for gas, liquids, or solids in suspension, 
114.27 	with all the right, title and interest of the state acquired therein at such sale to .........., and 
114.28 	the heirs and assigns of ........, forever, subject to redemption as provided by law.
114.29 	Witness my hand and official seal this .......... day of .........., .......

114.30
114.31		........
County Auditor."
		
114.32 	If the land shall not be redeemed, as provided in chapter 281, such certificate shall 
114.33 	pass to the purchaser or assignee an estate therein, in fee simple, without any other act 
114.34 	or deed whatever subject to easements and restrictions of record at the date of the tax 
114.35 	judgment sale, including, but without limitation, permits for telephone, telegraph and 
114.36 	electric power lines either by underground cable or conduit or otherwise, sewer and water 
115.1 	lines, highways, railroads, and pipe lines for gas, liquids, or solids in suspension. Such 
115.2 	certificate or conveyance may be recorded, after the time for redemption shall have 
115.3 	expired, as other deeds of real estate, and with like effect. No assignment of the right of 
115.4 	the state shall be given pursuant to this section after January 1, 1972.

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

115.6 	Sec. 49. Minnesota Statutes 2012, section 281.03, is amended to read:
115.7 	281.03 AUDITOR'S CERTIFICATE.
115.8 	The county auditor shall certify to the amount due on such redemption, and, on 
115.9 	payment of the same to the county treasurer, shall make duplicate receipts for the certified 
115.10 	amount, describing the property redeemed, one of which shall be filed with the auditor. 
115.11 	Such receipts shall be governed by the provisions of this chapter regulating the payment 
115.12 	of current taxes and such payment shall have the effect to annul the sale. If the amount 
115.13 	certified by the auditor and received in payment for redemption be less than that required 
115.14 	by law, it shall not invalidate the redemption. On redemption being made, the auditor shall 
115.15 	enter upon the copy of the tax judgment book, opposite the description of record the 
115.16 	parcel as redeemed, the word, "redeemed.".

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

115.18 	Sec. 50. Minnesota Statutes 2013 Supplement, section 281.17, is amended to read:
115.19 	281.17 PERIOD FOR REDEMPTION.
115.20 	Except for properties for which the period of redemption has been limited under 
115.21 	sections 281.173 and 281.174, the following periods for redemption apply.
115.22 	The period of redemption for all lands sold to the state at a tax judgment sale shall 
115.23 	be three years from the date of sale to the state of Minnesota.
115.24 	The period of redemption for homesteaded lands as defined in section 273.13, 
115.25 	subdivision 22, located in a targeted neighborhood as defined in Laws 1987, chapter 386, 
115.26 	article 6, section 4, and sold to the state at a tax judgment sale is three years from the date 
115.27 	of sale. The period of redemption for all lands located in a targeted neighborhood as 
115.28 	defined in Laws 1987, chapter 386, article 6, section 4, except (1) homesteaded lands as 
115.29 	defined in section 273.13, subdivision 22, and (2) for periods of redemption beginning 
115.30 	after June 30, 1991, but before July 1, 1996, lands located in the Loring Park targeted 
115.31 	neighborhood on which a notice of lis pendens has been served, and sold to the state at a 
115.32 	tax judgment sale is one year from the date of sale.
116.1 	The period of redemption for all real property constituting a mixed municipal solid 
116.2 	waste disposal facility that is a qualified facility under section 115B.39, subdivision 1, is 
116.3 	one year from the date of the sale to the state of Minnesota.

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

116.5 	Sec. 51. Minnesota Statutes 2012, section 281.327, is amended to read:
116.6 	281.327 CANCELLATION OF CERTIFICATE UPON JUDICIAL ORDER.
116.7 	Upon the petition of any person interested in the land covered by a real estate tax 
116.8 	sale certificate, state assignment certificate, or forfeited tax sale certificate and, upon the 
116.9 	giving of such notice to the holder of such certificate as may be ordered, the district court, 
116.10 	in the proceedings resulting in the judgment upon which a real estate tax judgment sale 
116.11 	certificate, state assignment certificate, or forfeited tax sale certificate is based, may order 
116.12 	the cancellation of a real estate tax judgment sale certificate, state assignment certificate, 
116.13 	or forfeited tax sale certificate upon which notice of expiration of time of redemption 
116.14 	has been issued when the certificate or a deed issued thereon has not been recorded in 
116.15 	the office of the county recorder or filed in that of the registrar of titles, if the land is 
116.16 	registered, within seven years after the date of the issuance of such certificate; the county 
116.17 	auditor, on the filing of the order, shall make an entry in the proper copy real estate tax 
116.18 	judgment book, opposite the description of the land, "canceled by order of court" record 
116.19 	the land as canceled by order of court; and the rights of the holder under the certificate 
116.20 	shall thereupon be terminated of record in the office of the county auditor.

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

116.22 	Sec. 52. Minnesota Statutes 2012, section 282.01, subdivision 6, is amended to read:
116.23 		Subd. 6.Duties of commissioner after sale. When any sale has been made by the 
116.24 	county auditor under sections 282.01 to 282.13, the auditor shall immediately certify to 
116.25 	the commissioner of revenue such information relating to such sale, on such forms as the 
116.26 	commissioner of revenue may prescribe as will enable the commissioner of revenue to 
116.27 	prepare an appropriate deed if the sale is for cash, or keep necessary records if the sale 
116.28 	is on terms; and not later than October 31 of each year the county auditor shall submit 
116.29 	to the commissioner of revenue a statement of all instances wherein any payment of 
116.30 	principal, interest, or current taxes on lands held under certificate, due or to be paid during 
116.31 	the preceding calendar years, are still outstanding at the time such certificate is made. 
116.32 	When such statement shows that a purchaser or the purchaser's assignee is in default, the 
116.33 	commissioner of revenue may instruct the county board of the county in which the land is 
117.1 	located to cancel said certificate of sale in the manner provided by subdivision 5, provided 
117.2 	that upon recommendation of the county board, and where the circumstances are such 
117.3 	that the commissioner of revenue after investigation is satisfied that the purchaser has 
117.4 	made every effort reasonable to make payment of both the annual installment and said 
117.5 	taxes, and that there has been no willful neglect on the part of the purchaser in meeting 
117.6 	these obligations, then the commissioner of revenue may extend the time for the payment 
117.7 	for such period as the commissioner may deem warranted, not to exceed one year. On 
117.8 	payment in full of the purchase price, appropriate conveyance in fee, in such form as may 
117.9 	be prescribed by the attorney general, shall be issued by the commissioner of revenue, 
117.10 	which conveyance must be recorded by the county and shall have the force and effect of 
117.11 	a patent from the state subject to easements and restrictions of record at the date of the 
117.12 	tax judgment sale, including, but without limitation, permits for telephone, telegraph, and 
117.13 	electric power lines either by underground cable or conduit or otherwise, sewer and water 
117.14 	lines, highways, railroads, and pipe lines for gas, liquids, or solids in suspension.

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

117.16 	Sec. 53. Minnesota Statutes 2012, section 282.04, subdivision 4, is amended to read:
117.17 		Subd. 4.Easements. The county auditor, when and for such price and on such 
117.18 	terms and for such period as the county board prescribes, may grant easements or permits 
117.19 	on unsold tax-forfeited land for telephone, telegraph, and electric power lines either by 
117.20 	underground cable or conduit or otherwise, sewer and water lines, highways, recreational 
117.21 	trails, railroads, and pipe lines for gas, liquids, or solids in suspension. Any such easement 
117.22 	or permit may be canceled by resolution of the county board after reasonable notice for 
117.23 	any substantial breach of its terms or if at any time its continuance will conflict with 
117.24 	public use of the land, or any part thereof, on which it is granted. Land affected by any 
117.25 	such easement or permit may be sold or leased for mineral or other legal purpose, but sale 
117.26 	or lease shall be subject to the easement or permit, and all rights granted by the easement 
117.27 	or permit shall be excepted from the conveyance or lease of the land and be reserved, 
117.28 	and may be canceled by the county board in the same manner and for the same reasons 
117.29 	as it could have been canceled before sale and in that case the rights granted thereby 
117.30 	shall vest in the state in trust as the land on which it was granted was held before sale or 
117.31 	lease. Any easement or permit granted before passage of Laws 1951, Chapter 203, may 
117.32 	be governed thereby if the holder thereof and county board so agree. Reasonable notice 
117.33 	as used in this subdivision, means a 90-day written notice addressed to the record owner 
117.34 	of the easement at the last known address, and upon cancellation the county board may 
117.35 	grant extensions of time to vacate the premises affected.

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

118.2 	Sec. 54. Minnesota Statutes 2012, section 282.261, subdivision 2, is amended to read:
118.3 		Subd. 2.Interest rate. The unpaid balance on any repurchase contract approved 
118.4 	by the county board on or after July 1, 1982, is subject to interest at the rate determined 
118.5 	pursuant to section 549.09. Repurchase contracts approved after December 31, 1990, are 
118.6 	subject to interest at the rate determined in section 279.03, subdivision 1a. The interest 
118.7 	rate is subject to change each year on the unpaid balance in the manner provided for rate 
118.8 	changes in section 549.09 or279.03, subdivision 1a, whichever is applicable. Interest on 
118.9 	the unpaid contract balance on repurchases approved before July 1, 1982, is payable at the 
118.10 	rate applicable to the repurchase contract at the time that it was approved.

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

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

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

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

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

118.25 	Sec. 57. Minnesota Statutes 2012, section 282.322, is amended to read:
118.26 	282.322 FORFEITED LANDS LIST.
118.27 	The county board of any county may at any time after the passage of Laws 1945, 
118.28 	chapter 296, file a list of forfeited lands with the county auditor, if the board is of the 
118.29 	opinion that such lands may be acquired by the state or any municipal subdivision thereof 
118.30 	for public purposes. Upon the filing of such list the county auditor shall withhold said 
119.1 	lands from repurchase. If no proceeding shall be started to acquire such lands by the 
119.2 	state or some municipal subdivision thereof within one year after the filing of such list 
119.3 	the county board shall withdraw said list and thereafter the owner shall have one year in 
119.4 	which to repurchase as otherwise provided in Laws 1945, chapter 296.

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

119.6 	Sec. 58. Minnesota Statutes 2012, section 287.30, is amended to read:
119.7 	287.30 COUNTY TREASURER; DUTIES.
119.8 	The care of documentary stamps entrusted to county treasurers and the duties imposed 
119.9 	upon county treasurers by this chapter are within the duties of such office and are within 
119.10 	the coverage of any official bond delivered to the state, conditioned that any such officer 
119.11 	shall faithfully execute the duties of office. The county board may by resolution require 
119.12 	the county auditor to perform any duty imposed on the county treasurer under this chapter.

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

119.14 	Sec. 59. Minnesota Statutes 2012, section 289A.25, subdivision 1, is amended to read:
119.15 		Subdivision 1.Requirements to pay. An individual, trust, S corporation, or 
119.16 	partnership must, when prescribed in subdivision 3, paragraph (b), make payments of 
119.17 	estimated tax. For individuals, the term "estimated tax" means the amount the taxpayer 
119.18 	estimates is the sum of the taxes imposed by chapter 290 for the taxable year. For trusts, 
119.19 	S corporations, and partnerships, the term estimated tax means the amount the taxpayer 
119.20 	estimates is the sum of the taxes for the taxable year imposed by chapter 290 and the 
119.21 	composite income tax imposed by section 289A.08, subdivision 7. If the individual is an 
119.22 	infant or incompetent person, the payments must be made by the individual's guardian. If 
119.23 	joint payments on estimated tax are made but a joint return is not made for the taxable 
119.24 	year, the estimated tax for that year may be treated as the estimated tax of either the 
119.25 	husband or the wife or may be divided between them.
119.26 	Notwithstanding the provisions of this section, no payments of estimated tax are 
119.27 	required if the estimated tax, as defined in this subdivision, less the credits allowed against 
119.28 	the tax, is less than $500.

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

119.30 	Sec. 60. Minnesota Statutes 2012, section 290.01, subdivision 5, is amended to read:
120.1 		Subd. 5.Domestic corporation. The term "domestic" when applied to a corporation 
120.2 	means a corporation:
120.3 	(1) created or organized in the United States, or under the laws of the United 
120.4 	States or of any state, the District of Columbia, or any political subdivision of any of 
120.5 	the foregoing but not including the Commonwealth of Puerto Rico, or any possession 
120.6 	of the United States; or
120.7 	(2) which qualifies as a DISC, as defined in section 992(a) of the Internal Revenue 
120.8 	Code; or.
120.9 	(3) which qualifies as a FSC, as defined in section 922 of the Internal Revenue Code.

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

120.12 	Sec. 61. Minnesota Statutes 2013 Supplement, section 290.01, subdivision 19d, 
120.13 	is amended to read:
120.14 		Subd. 19d.Corporations; modifications decreasing federal taxable income. For 
120.15 	corporations, there shall be subtracted from federal taxable income after the increases 
120.16 	provided in subdivision 19c:
120.17 	(1) the amount of foreign dividend gross-up added to gross income for federal 
120.18 	income tax purposes under section 78 of the Internal Revenue Code;
120.19 	(2) the amount of salary expense not allowed for federal income tax purposes due to 
120.20 	claiming the work opportunity credit under section 51 of the Internal Revenue Code;
120.21 	(3) any dividend (not including any distribution in liquidation) paid within the 
120.22 	taxable year by a national or state bank to the United States, or to any instrumentality of 
120.23 	the United States exempt from federal income taxes, on the preferred stock of the bank 
120.24 	owned by the United States or the instrumentality;
120.25 	(4) amounts disallowed for intangible drilling costs due to differences between 
120.26 	this chapter and the Internal Revenue Code in taxable years beginning before January 
120.27 	1, 1987, as follows:
120.28 	(i) to the extent the disallowed costs are represented by physical property, an amount 
120.29 	equal to the allowance for depreciation under Minnesota Statutes 1986, section 290.09, 
120.30 	subdivision 7, subject to the modifications contained in subdivision 19e; and
120.31 	(ii) to the extent the disallowed costs are not represented by physical property, an 
120.32 	amount equal to the allowance for cost depletion under Minnesota Statutes 1986, section 
120.33 	290.09, subdivision 8;
120.34 	(5) (4) the deduction for capital losses pursuant to sections 1211 and 1212 of the 
120.35 	Internal Revenue Code, except that:
121.1 	(i) for capital losses incurred in taxable years beginning after December 31, 1986, 
121.2 	capital loss carrybacks shall not be allowed;
121.3 	(ii) for capital losses incurred in taxable years beginning after December 31, 1986, 
121.4 	a capital loss carryover to each of the 15 taxable years succeeding the loss year shall be 
121.5 	allowed;
121.6 	(iii) for capital losses incurred in taxable years beginning before January 1, 1987, a 
121.7 	capital loss carryback to each of the three taxable years preceding the loss year, subject to 
121.8 	the provisions of Minnesota Statutes 1986, section 290.16, shall be allowed; and
121.9 	(iv) for capital losses incurred in taxable years beginning before January 1, 1987, 
121.10 	a capital loss carryover to each of the five taxable years succeeding the loss year to the 
121.11 	extent such loss was not used in a prior taxable year and subject to the provisions of 
121.12 	Minnesota Statutes 1986, section 290.16, shall be allowed;
121.13 	(6) (5) an amount for interest and expenses relating to income not taxable for federal 
121.14 	income tax purposes, if (i) the income is taxable under this chapter and (ii) the interest and 
121.15 	expenses were disallowed as deductions under the provisions of section 171(a)(2), 265 or 
121.16 	291 of the Internal Revenue Code in computing federal taxable income;
121.17 	(7) (6) in the case of mines, oil and gas wells, other natural deposits, and timber for 
121.18 	which percentage depletion was disallowed pursuant to subdivision 19c, clause (8), a 
121.19 	reasonable allowance for depletion based on actual cost. In the case of leases the deduction 
121.20 	must be apportioned between the lessor and lessee in accordance with rules prescribed 
121.21 	by the commissioner. In the case of property held in trust, the allowable deduction must 
121.22 	be apportioned between the income beneficiaries and the trustee in accordance with the 
121.23 	pertinent provisions of the trust, or if there is no provision in the instrument, on the basis 
121.24 	of the trust's income allocable to each;
121.25 	(8) (7) for certified pollution control facilities placed in service in a taxable year 
121.26 	beginning before December 31, 1986, and for which amortization deductions were elected 
121.27 	under section 169 of the Internal Revenue Code of 1954, as amended through December 
121.28 	31, 1985, an amount equal to the allowance for depreciation under Minnesota Statutes 
121.29 	1986, section 290.09, subdivision 7;
121.30 	(9) (8) amounts included in federal taxable income that are due to refunds of 
121.31 	income, excise, or franchise taxes based on net income or related minimum taxes paid 
121.32 	by the corporation to Minnesota, another state, a political subdivision of another state, 
121.33 	the District of Columbia, or a foreign country or possession of the United States to the 
121.34 	extent that the taxes were added to federal taxable income under subdivision 19c, clause 
121.35 	(1), in a prior taxable year;
122.1 	(10) (9) income or gains from the business of mining as defined in section 290.05, 
122.2 	subdivision 1, clause (a), that are not subject to Minnesota franchise tax;
122.3 	(11) (10) the amount of disability access expenditures in the taxable year which are not 
122.4 	allowed to be deducted or capitalized under section 44(d)(7) of the Internal Revenue Code;
122.5 	(12) (11) the amount of qualified research expenses not allowed for federal income 
122.6 	tax purposes under section 280C(c) of the Internal Revenue Code, but only to the extent 
122.7 	that the amount exceeds the amount of the credit allowed under section 290.068;
122.8 	(13) (12) the amount of salary expenses not allowed for federal income tax purposes 
122.9 	due to claiming the Indian employment credit under section 45A(a) of the Internal 
122.10 	Revenue Code;
122.11 	(14) (13) any decrease in subpart F income, as defined in section 952(a) of the 
122.12 	Internal Revenue Code, for the taxable year when subpart F income is calculated without 
122.13 	regard to the provisions of Division C, title III, section 303(b) of Public Law 110-343;
122.14 	(15) (14) in each of the five tax years immediately following the tax year in which 
122.15 	an addition is required under subdivision 19c, clause (12), an amount equal to one-fifth 
122.16 	of the delayed depreciation. For purposes of this clause, "delayed depreciation" means 
122.17 	the amount of the addition made by the taxpayer under subdivision 19c, clause (12). The 
122.18 	resulting delayed depreciation cannot be less than zero;
122.19 	(16) (15) in each of the five tax years immediately following the tax year in which an 
122.20 	addition is required under subdivision 19c, clause (13), an amount equal to one-fifth of the 
122.21 	amount of the addition;
122.22 	(17) (16) to the extent included in federal taxable income, discharge of indebtedness 
122.23 	income resulting from reacquisition of business indebtedness included in federal taxable 
122.24 	income under section 108(i) of the Internal Revenue Code. This subtraction applies only 
122.25 	to the extent that the income was included in net income in a prior year as a result of the 
122.26 	addition under subdivision 19c, clause (16); and
122.27 	(18) (17) the amount of expenses not allowed for federal income tax purposes due 
122.28 	to claiming the railroad track maintenance credit under section 45G(a) of the Internal 
122.29 	Revenue Code.

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

122.32 	Sec. 62. Minnesota Statutes 2012, section 290.01, subdivision 19f, is amended to read:
122.33 		Subd. 19f.Basis modifications affecting gain or loss on disposition of property.
 122.34 	(a) For individuals, estates, and trusts, the basis of property is its adjusted basis for federal 
122.35 	income tax purposes except as set forth in paragraphs (e) and (f), (g), and (m). For 
123.1 	corporations, the basis of property is its adjusted basis for federal income tax purposes, 
123.2 	without regard to the time when the property became subject to tax under this chapter or to 
123.3 	whether out-of-state losses or items of tax preference with respect to the property were not 
123.4 	deductible under this chapter, except that the modifications to the basis for federal income 
123.5 	tax purposes set forth in paragraphs (b) to (j) (i) are allowed to corporations, and the 
123.6 	resulting modifications to federal taxable income must be made in the year in which gain 
123.7 	or loss on the sale or other disposition of property is recognized.
123.8 	(b) The basis of property shall not be reduced to reflect federal investment tax credit.
123.9 	(c) The basis of property subject to the accelerated cost recovery system under 
123.10 	section 168 of the Internal Revenue Code shall be modified to reflect the modifications in 
123.11 	depreciation with respect to the property provided for in subdivision 19e. For certified 
123.12 	pollution control facilities for which amortization deductions were elected under section 
123.13 	169 of the Internal Revenue Code of 1954, the basis of the property must be increased by 
123.14 	the amount of the amortization deduction not previously allowed under this chapter.
123.15 	(d) For property acquired before January 1, 1933, the basis for computing a gain is 
123.16 	the fair market value of the property as of that date. The basis for determining a loss is 
123.17 	the cost of the property to the taxpayer less any depreciation, amortization, or depletion, 
123.18 	actually sustained before that date. If the adjusted cost exceeds the fair market value of the 
123.19 	property, then the basis is the adjusted cost regardless of whether there is a gain or loss.
123.20 	(e) (d) The basis is reduced by the allowance for amortization of bond premium if 
123.21 	an election to amortize was made pursuant to Minnesota Statutes 1986, section 290.09, 
123.22 	subdivision 13, and the allowance could have been deducted by the taxpayer under this 
123.23 	chapter during the period of the taxpayer's ownership of the property.
123.24 	(f) (e) For assets placed in service before January 1, 1987, corporations, partnerships, 
123.25 	or individuals engaged in the business of mining ores other than iron ore or taconite 
123.26 	concentrates subject to the occupation tax under chapter 298 must use the occupation 
123.27 	tax basis of property used in that business.
123.28 	(g) (f) For assets placed in service before January 1, 1990, corporations, partnerships, 
123.29 	or individuals engaged in the business of mining iron ore or taconite concentrates subject 
123.30 	to the occupation tax under chapter 298 must use the occupation tax basis of property 
123.31 	used in that business.
123.32 	(h) (g) In applying the provisions of sections 301(c)(3)(B), 312(f) and (g), and 
123.33 	316(a)(1) of the Internal Revenue Code, the dates December 31, 1932, and January 1, 
123.34 	1933, shall be substituted for February 28, 1913, and March 1, 1913, respectively.
123.35 	(i) (h) In applying the provisions of section 362(a) and (c) of the Internal Revenue 
123.36 	Code, the date December 31, 1956, shall be substituted for June 22, 1954.
124.1 	(j) (i) The basis of property shall be increased by the amount of intangible drilling 
124.2 	costs not previously allowed due to differences between this chapter and the Internal 
124.3 	Revenue Code.
124.4 	(k) (j) The adjusted basis of any corporate partner's interest in a partnership is 
124.5 	the same as the adjusted basis for federal income tax purposes modified as required to 
124.6 	reflect the basis modifications set forth in paragraphs (b) to (j) (i). The adjusted basis 
124.7 	of a partnership in which the partner is an individual, estate, or trust is the same as the 
124.8 	adjusted basis for federal income tax purposes modified as required to reflect the basis 
124.9 	modifications set forth in paragraphs (e) and (f) and (g).
124.10 	(l) (k) The modifications contained in paragraphs (b) to (j) (i) also apply to the basis 
124.11 	of property that is determined by reference to the basis of the same property in the hands 
124.12 	of a different taxpayer or by reference to the basis of different property.

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

124.15 	Sec. 63. Minnesota Statutes 2012, section 290.01, subdivision 29, is amended to read:
124.16 		Subd. 29.Taxable income. The term "taxable income" means:
124.17 	(1) for individuals, estates, and trusts, the same as taxable net income;
124.18 	(2) for corporations, the taxable net income less
124.19 	(i) the net operating loss deduction under section 290.095;
124.20 	(ii) the dividends received deduction under section 290.21, subdivision 4; and
124.21 	(iii) the exemption for operating in a job opportunity building zone under section 
124.22 	469.317; and.
124.23 	(iv) the exemption for operating in a biotechnology and health sciences industry 
124.24 	zone under section 469.337.

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

124.27 	Sec. 64. Minnesota Statutes 2012, section 290.015, subdivision 1, is amended to read:
124.28 		Subdivision 1.General rule. (a) Except as provided in subdivision 3, a person 
124.29 	that conducts a trade or business that has a place of business in this state, regularly has 
124.30 	employees or independent contractors conducting business activities on its behalf in this 
124.31 	state, or owns or leases real property that is located in this state or tangible personal 
124.32 	property, including but not limited to mobile property, that is present in this state is subject 
124.33 	to the taxes imposed by this chapter.
125.1 	(b) Except as provided in subdivision 3, a person that conducts a trade or business 
125.2 	not described in paragraph (a) is subject to the taxes imposed by this chapter if the trade 
125.3 	or business obtains or regularly solicits business from within this state, without regard 
125.4 	to physical presence in this state.
125.5 	(c) For purposes of paragraph (b), business from within this state includes, but is 
125.6 	not limited to:
125.7 	(1) sales of products or services of any kind or nature to customers in this state who 
125.8 	receive the product or service in this state;
125.9 	(2) sales of services which are performed from outside this state but the services 
125.10 	are received in this state;
125.11 	(3) transactions with customers in this state that involve intangible property and 
125.12 	result in receipts attributed to this state as provided in section 290.191, subdivision 5 or 6;
125.13 	(4) leases of tangible personal property that is located in this state as defined in 
125.14 	section 290.191, subdivision 5, paragraph (g), or 6, paragraph (e); and
125.15 	(5) sales and leases of real property located in this state.
125.16 	(d) For purposes of paragraph (b), solicitation includes, but is not limited to:
125.17 	(1) the distribution, by mail or otherwise, without regard to the state from which such 
125.18 	distribution originated or in which the materials were prepared, of catalogs, periodicals, 
125.19 	advertising flyers, or other written solicitations of business to customers in this state;
125.20 	(2) display of advertisements on billboards or other outdoor advertising in this state;
125.21 	(3) advertisements in newspapers published in this state;
125.22 	(4) advertisements in trade journals or other periodicals, the circulation of which is 
125.23 	primarily within this state;
125.24 	(5) advertisements in a Minnesota edition of a national or regional publication or a 
125.25 	limited regional edition of which this state is included of a broader regional or national 
125.26 	publication which are not placed in other geographically defined editions of the same issue 
125.27 	of the same publication;
125.28 	(6) advertisements in regional or national publications in an edition which is not 
125.29 	by its contents geographically targeted to Minnesota, but which is sold over the counter 
125.30 	in Minnesota or by subscription to Minnesota residents;
125.31 	(7) advertisements broadcast on a radio or television station located in Minnesota; or
125.32 	(8) any other solicitation by telegraph, telephone, computer database, cable, optic, 
125.33 	microwave, or other communication system.

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

125.35 	Sec. 65. Minnesota Statutes 2012, section 290.07, subdivision 1, is amended to read:
126.1 		Subdivision 1.Annual accounting period. Net income and taxable net income 
126.2 	shall be computed upon the basis of the taxpayer's annual accounting period. If a taxpayer 
126.3 	has no annual accounting period, or has one other than a fiscal year, as heretofore defined,
126.4 	 the net income and taxable net income shall be computed on the basis of the calendar year. 
126.5 	Taxpayers shall employ the same accounting period on which they report, or would be 
126.6 	required to report, their net income under the Internal Revenue Code. The commissioner 
126.7 	shall provide by rule for the determination of the accounting period for taxpayers who file 
126.8 	a combined report under section 290.17, subdivision 4, when members of the group use 
126.9 	different accounting periods for federal income tax purposes. Unless the taxpayer changes 
126.10 	its accounting period for federal purposes, the due date of the return is not changed.
126.11 	A taxpayer may change accounting periods only with the consent of the 
126.12 	commissioner. In case of any such change, the taxpayer shall pay a tax for the period 
126.13 	not included in either the taxpayer's former or newly adopted taxable year, computed as 
126.14 	provided in section 290.32.

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

126.17 	Sec. 66. Minnesota Statutes 2012, section 290.07, subdivision 2, is amended to read:
126.18 		Subd. 2.Accounting methods. Except as specifically provided to the contrary by 
126.19 	this chapter, net income and taxable net income shall be computed in accordance with 
126.20 	the method of accounting regularly employed in keeping the taxpayer's books. If no such 
126.21 	accounting system has been regularly employed, or if that employed does not clearly or 
126.22 	fairly reflect income or the income taxable under this chapter, the computation shall be 
126.23 	made in accordance with such method as in the opinion of the commissioner does clearly 
126.24 	and fairly reflect income and the income taxable under this chapter.
126.25 	Except as otherwise expressly provided in this chapter, a taxpayer who changes the 
126.26 	method of accounting for regularly computing the taxpayer's income in keeping books 
126.27 	shall, before computing net income and taxable net income under the new method, secure 
126.28 	the consent of the commissioner.

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

126.31 	Sec. 67. Minnesota Statutes 2013 Supplement, section 290.0921, subdivision 3, 
126.32 	is amended to read:
127.1 		Subd. 3.Alternative minimum taxable income. "Alternative minimum taxable 
127.2 	income" is Minnesota net income as defined in section 290.01, subdivision 19, and 
127.3 	includes the adjustments and tax preference items in sections 56, 57, 58, and 59(d), (e), 
127.4 	(f), and (h) of the Internal Revenue Code. If a corporation files a separate company 
127.5 	Minnesota tax return, the minimum tax must be computed on a separate company basis. 
127.6 	If a corporation is part of a tax group filing a unitary return, the minimum tax must be 
127.7 	computed on a unitary basis. The following adjustments must be made.
127.8 	(1) For purposes of the depreciation adjustments under section 56(a)(1) and 
127.9 	56(g)(4)(A) of the Internal Revenue Code, the basis for depreciable property placed in 
127.10 	service in a taxable year beginning before January 1, 1990, is the adjusted basis for federal 
127.11 	income tax purposes, including any modification made in a taxable year under section 
127.12 	290.01, subdivision 19e, or Minnesota Statutes 1986, section 290.09, subdivision 7, 
127.13 	paragraph (c).
127.14 	For taxable years beginning after December 31, 2000, the amount of any remaining 
127.15 	modification made under section 290.01, subdivision 19e, or Minnesota Statutes 1986, 
127.16 	section 290.09, subdivision 7, paragraph (c), not previously deducted is a depreciation 
127.17 	allowance in the first taxable year after December 31, 2000.
127.18 	(2) (1) The portion of the depreciation deduction allowed for federal income tax 
127.19 	purposes under section 168(k) of the Internal Revenue Code that is required as an 
127.20 	addition under section 290.01, subdivision 19c, clause (12), is disallowed in determining 
127.21 	alternative minimum taxable income.
127.22 	(3) (2) The subtraction for depreciation allowed under section 290.01, subdivision 
127.23 	19d, clause (15) (14), is allowed as a depreciation deduction in determining alternative 
127.24 	minimum taxable income.
127.25 	(4) (3) The alternative tax net operating loss deduction under sections 56(a)(4) and 
127.26 	56(d) of the Internal Revenue Code does not apply.
127.27 	(5) (4) The special rule for certain dividends under section 56(g)(4)(C)(ii) of the 
127.28 	Internal Revenue Code does not apply.
127.29 	(6) (5) The tax preference for depletion under section 57(a)(1) of the Internal 
127.30 	Revenue Code does not apply.
127.31 	(7) The tax preference for intangible drilling costs under section 57(a)(2) of the 
127.32 	Internal Revenue Code must be calculated without regard to subparagraph (E) and the 
127.33 	subtraction under section 290.01, subdivision 19d, clause (4).
127.34 	(8) (6) The tax preference for tax exempt interest under section 57(a)(5) of the 
127.35 	Internal Revenue Code does not apply.
128.1 	(9) (7) The tax preference for charitable contributions of appreciated property under 
128.2 	section 57(a)(6) of the Internal Revenue Code does not apply.
128.3 	(10) For purposes of calculating the tax preference for accelerated depreciation or 
128.4 	amortization on certain property placed in service before January 1, 1987, under section 
128.5 	57(a)(7) of the Internal Revenue Code, the deduction allowable for the taxable year is the 
128.6 	deduction allowed under section 290.01, subdivision 19e.
128.7 	For taxable years beginning after December 31, 2000, the amount of any remaining 
128.8 	modification made under section 290.01, subdivision 19e, not previously deducted is a 
128.9 	depreciation or amortization allowance in the first taxable year after December 31, 2004.
128.10 	(11) (8) For purposes of calculating the adjustment for adjusted current earnings 
128.11 	in section 56(g) of the Internal Revenue Code, the term "alternative minimum taxable 
128.12 	income" as it is used in section 56(g) of the Internal Revenue Code, means alternative 
128.13 	minimum taxable income as defined in this subdivision, determined without regard to the 
128.14 	adjustment for adjusted current earnings in section 56(g) of the Internal Revenue Code.
128.15 	(12) (9) For purposes of determining the amount of adjusted current earnings under 
128.16 	section 56(g)(3) of the Internal Revenue Code, no adjustment shall be made under section 
128.17 	56(g)(4) of the Internal Revenue Code with respect to (i) the amount of foreign dividend 
128.18 	gross-up subtracted as provided in section 290.01, subdivision 19d, clause (1), or (ii) the 
128.19 	amount of refunds of income, excise, or franchise taxes subtracted as provided in section 
128.20 	290.01, subdivision 19d, clause (9).
128.21 	(13) (10) Alternative minimum taxable income excludes the income from operating 
128.22 	in a job opportunity building zone as provided under section 469.317.
128.23 	(14) Alternative minimum taxable income excludes the income from operating in a 
128.24 	biotechnology and health sciences industry zone as provided under section 469.337.
128.25 	Items of tax preference must not be reduced below zero as a result of the 
128.26 	modifications in this subdivision.

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

128.29 	Sec. 68. Minnesota Statutes 2012, section 290.0922, subdivision 3, is amended to read:
128.30 		Subd. 3.Definitions. (a) "Minnesota sales or receipts" means the total sales 
128.31 	apportioned to Minnesota pursuant to section 290.191, subdivision 5, the total receipts 
128.32 	attributed to Minnesota pursuant to section 290.191, subdivisions 6 to 8, and/or the 
128.33 	total sales or receipts apportioned or attributed to Minnesota pursuant to any other 
128.34 	apportionment formula applicable to the taxpayer.
129.1 	(b) "Minnesota property" means total Minnesota tangible property as provided in 
129.2 	section 290.191, subdivisions 9 to 11, any other tangible property located in Minnesota, 
129.3 	but does not include: (1) the property of a qualified business as defined under section 
129.4 	469.310, subdivision 11, that is located in a job opportunity building zone designated 
129.5 	under section 469.314 and (2) property of a qualified business located in a biotechnology 
129.6 	and health sciences industry zone designated under section 469.334. Intangible property 
129.7 	shall not be included in Minnesota property for purposes of this section. Taxpayers who 
129.8 	do not utilize tangible property to apportion income shall nevertheless include Minnesota 
129.9 	property for purposes of this section. On a return for a short taxable year, the amount of 
129.10 	Minnesota property owned, as determined under section 290.191, shall be included in 
129.11 	Minnesota property based on a fraction in which the numerator is the number of days in 
129.12 	the short taxable year and the denominator is 365.
129.13 	(c) "Minnesota payrolls" means total Minnesota payrolls as provided in section 
129.14 	290.191, subdivision 12, but does not include: (1) the job opportunity building zone payroll 
129.15 	under section 469.310, subdivision 8, of a qualified business as defined under section 
129.16 	469.310, subdivision 11, and (2) biotechnology and health sciences industry zone payrolls 
129.17 	under section 469.330, subdivision 8. Taxpayers who do not utilize payrolls to apportion 
129.18 	income shall nevertheless include Minnesota payrolls for purposes of this section.

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

129.21 	Sec. 69. Minnesota Statutes 2012, section 290.095, subdivision 3, is amended to read:
129.22 		Subd. 3.Carryover. (a) A net operating loss incurred in a during the taxable year: 
129.23 	(i) beginning after December 31, 1986, shall be a net operating loss carryover to each of 
129.24 	the 15 taxable years following the taxable year of such loss; (ii) beginning before January 
129.25 	1, 1987, shall be a net operating loss carryover to each of the five taxable years following 
129.26 	the taxable year of such loss subject to the provisions of Minnesota Statutes 1986, section 
129.27 	290.095; and (iii) beginning before January 1, 1987, shall be a net operating loss carryback 
129.28 	to each of the three taxable years preceding the loss year subject to the provisions of 
129.29 	Minnesota Statutes 1986, section 290.095.
129.30 	(b) The entire amount of the net operating loss for any taxable year shall be carried to 
129.31 	the earliest of the taxable years to which such loss may be carried. The portion of such loss 
129.32 	which shall be carried to each of the other taxable years shall be the excess, if any, of the 
129.33 	amount of such loss over the sum of the taxable net income, adjusted by the modifications 
129.34 	specified in subdivision 4, for each of the taxable years to which such loss may be carried.
130.1 	(c) Where a corporation apportions its income under the provisions of section 
130.2 	290.191, the net operating loss deduction incurred in any taxable year shall be allowed 
130.3 	to the extent of the apportionment ratio of the loss year.
130.4 	(d) The provisions of sections 381, 382, and 384 of the Internal Revenue Code apply 
130.5 	to carryovers in certain corporate acquisitions and special limitations on net operating loss 
130.6 	carryovers. The limitation amount determined under section 382 shall be applied to net 
130.7 	income, before apportionment, in each post change year to which a loss is carried.

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

130.10 	Sec. 70. Minnesota Statutes 2013 Supplement, section 290.191, subdivision 5, is 
130.11 	amended to read:
130.12 		Subd. 5.Determination of sales factor. For purposes of this section, the following 
130.13 	rules apply in determining the sales factor.
130.14 	(a) The sales factor includes all sales, gross earnings, or receipts received in the 
130.15 	ordinary course of the business, except that the following types of income are not included 
130.16 	in the sales factor:
130.17 	(1) interest;
130.18 	(2) dividends;
130.19 	(3) sales of capital assets as defined in section 1221 of the Internal Revenue Code;
130.20 	(4) sales of property used in the trade or business, except sales of leased property of 
130.21 	a type which is regularly sold as well as leased; and
130.22 	(5) sales of debt instruments as defined in section 1275(a)(1) of the Internal Revenue 
130.23 	Code or sales of stock.
130.24 	(b) Sales of tangible personal property are made within this state if the property is 
130.25 	received by a purchaser at a point within this state, and the taxpayer is taxable in this state,
130.26 	 regardless of the f.o.b. point, other conditions of the sale, or the ultimate destination 
130.27 	of the property.
130.28 	(c) Tangible personal property delivered to a common or contract carrier or foreign 
130.29 	vessel for delivery to a purchaser in another state or nation is a sale in that state or nation, 
130.30 	regardless of f.o.b. point or other conditions of the sale.
130.31 	(d) Notwithstanding paragraphs (b) and (c), when intoxicating liquor, wine, 
130.32 	fermented malt beverages, cigarettes, or tobacco products are sold to a purchaser who is 
130.33 	licensed by a state or political subdivision to resell this property only within the state of 
130.34 	ultimate destination, the sale is made in that state.
131.1 	(e) Sales made by or through a corporation that is qualified as a domestic 
131.2 	international sales corporation under section 992 of the Internal Revenue Code are not 
131.3 	considered to have been made within this state.
131.4 	(f) Sales, rents, royalties, and other income in connection with real property is 
131.5 	attributed to the state in which the property is located.
131.6 	(g) Receipts from the lease or rental of tangible personal property, including finance 
131.7 	leases and true leases, must be attributed to this state if the property is located in this 
131.8 	state and to other states if the property is not located in this state. Receipts from the 
131.9 	lease or rental of moving property including, but not limited to, motor vehicles, rolling 
131.10 	stock, aircraft, vessels, or mobile equipment are included in the numerator of the receipts 
131.11 	factor to the extent that the property is used in this state. The extent of the use of moving 
131.12 	property is determined as follows:
131.13 	(1) A motor vehicle is used wholly in the state in which it is registered.
131.14 	(2) The extent that rolling stock is used in this state is determined by multiplying 
131.15 	the receipts from the lease or rental of the rolling stock by a fraction, the numerator of 
131.16 	which is the miles traveled within this state by the leased or rented rolling stock and the 
131.17 	denominator of which is the total miles traveled by the leased or rented rolling stock.
131.18 	(3) The extent that an aircraft is used in this state is determined by multiplying the 
131.19 	receipts from the lease or rental of the aircraft by a fraction, the numerator of which is 
131.20 	the number of landings of the aircraft in this state and the denominator of which is the 
131.21 	total number of landings of the aircraft.
131.22 	(4) The extent that a vessel, mobile equipment, or other mobile property is used in 
131.23 	the state is determined by multiplying the receipts from the lease or rental of the property 
131.24 	by a fraction, the numerator of which is the number of days during the taxable year the 
131.25 	property was in this state and the denominator of which is the total days in the taxable year.
131.26 	(h) Royalties and other income received for the use of or for the privilege of using 
131.27 	intangible property, including patents, know-how, formulas, designs, processes, patterns, 
131.28 	copyrights, trade names, service names, franchises, licenses, contracts, customer lists, or 
131.29 	similar items, must be attributed to the state in which the property is used by the purchaser. 
131.30 	If the property is used in more than one state, the royalties or other income must be 
131.31 	apportioned to this state pro rata according to the portion of use in this state. If the portion 
131.32 	of use in this state cannot be determined, the royalties or other income must be excluded 
131.33 	from both the numerator and the denominator. Intangible property is used in this state if 
131.34 	the purchaser uses the intangible property or the rights therein in the regular course of its 
131.35 	business operations in this state, regardless of the location of the purchaser's customers.
132.1 	(i) Sales of intangible property are made within the state in which the property is 
132.2 	used by the purchaser. If the property is used in more than one state, the sales must be 
132.3 	apportioned to this state pro rata according to the portion of use in this state. If the 
132.4 	portion of use in this state cannot be determined, the sale must be excluded from both the 
132.5 	numerator and the denominator of the sales factor. Intangible property is used in this 
132.6 	state if the purchaser used the intangible property in the regular course of its business 
132.7 	operations in this state.
132.8 	(j) Receipts from the performance of services must be attributed to the state where 
132.9 	the services are received. For the purposes of this section, receipts from the performance 
132.10 	of services provided to a corporation, partnership, or trust may only be attributed to a state 
132.11 	where it has a fixed place of doing business. If the state where the services are received is 
132.12 	not readily determinable or is a state where the corporation, partnership, or trust receiving 
132.13 	the service does not have a fixed place of doing business, the services shall be deemed 
132.14 	to be received at the location of the office of the customer from which the services were 
132.15 	ordered in the regular course of the customer's trade or business. If the ordering office 
132.16 	cannot be determined, the services shall be deemed to be received at the office of the 
132.17 	customer to which the services are billed.
132.18 	(k) For the purposes of this subdivision and subdivision 6, paragraph (l), receipts 
132.19 	from management, distribution, or administrative services performed by a corporation 
132.20 	or trust for a fund of a corporation or trust regulated under United States Code, title 15, 
132.21 	sections 80a-1 through 80a-64, must be attributed to the state where the shareholder of 
132.22 	the fund resides. Under this paragraph, receipts for services attributed to shareholders are 
132.23 	determined on the basis of the ratio of: (1) the average of the outstanding shares in the 
132.24 	fund owned by shareholders residing within Minnesota at the beginning and end of each 
132.25 	year; and (2) the average of the total number of outstanding shares in the fund at the 
132.26 	beginning and end of each year. Residence of the shareholder, in the case of an individual, 
132.27 	is determined by the mailing address furnished by the shareholder to the fund. Residence 
132.28 	of the shareholder, when the shares are held by an insurance company as a depositor for 
132.29 	the insurance company policyholders, is the mailing address of the policyholders. In 
132.30 	the case of an insurance company holding the shares as a depositor for the insurance 
132.31 	company policyholders, if the mailing address of the policyholders cannot be determined 
132.32 	by the taxpayer, the receipts must be excluded from both the numerator and denominator. 
132.33 	Residence of other shareholders is the mailing address of the shareholder.

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

132.35 	Sec. 71. Minnesota Statutes 2012, section 290.9728, subdivision 2, is amended to read:
133.1 		Subd. 2.Taxable income. For purposes of this section, taxable income means 
133.2 	the lesser of:
133.3 	(1) the amount of the net capital gain of the S corporation for the taxable year, as 
133.4 	determined under sections 1222 and 1374 of the Internal Revenue Code, and subject to the 
133.5 	modifications provided in section 290.01, subdivisions 19e and subdivision 19f, in excess 
133.6 	of $25,000 that is allocable to this state under section 290.17, 290.191, or 290.20; or
133.7 	(2) the amount of the S corporation's federal taxable income, subject to the 
133.8 	provisions of section 290.01, subdivisions 19c to 19f, that is allocable to this state under 
133.9 	section 290.17, 290.191, or 290.20.

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

133.12 	Sec. 72. Minnesota Statutes 2013 Supplement, section 297A.61, subdivision 3, as 
133.13 	amended by Laws 2014, chapter 150, article 2, section 1, is amended to read:
133.14 		Subd. 3.Sale and purchase. (a) "Sale" and "purchase" include, but are not limited 
133.15 	to, each of the transactions listed in this subdivision. In applying the provisions of this 
133.16 	chapter, the terms "tangible personal property" and "retail sale" include the taxable 
133.17 	services listed in paragraph (g), clause (6), items (i) to (vi) and (viii), and the provision 
133.18 	of these taxable services, unless specifically provided otherwise. Services performed by 
133.19 	an employee for an employer are not taxable. Services performed by a partnership or 
133.20 	association for another partnership or association are not taxable if one of the entities owns 
133.21 	or controls more than 80 percent of the voting power of the equity interest in the other 
133.22 	entity. Services performed between members of an affiliated group of corporations are not 
133.23 	taxable. For purposes of the preceding sentence, "affiliated group of corporations" means 
133.24 	those entities that would be classified as members of an affiliated group as defined under 
133.25 	United States Code, title 26, section 1504, disregarding the exclusions in section 1504(b).
133.26 	(b) Sale and purchase include:
133.27 	(1) any transfer of title or possession, or both, of tangible personal property, whether 
133.28 	absolutely or conditionally, for a consideration in money or by exchange or barter; and
133.29 	(2) the leasing of or the granting of a license to use or consume, for a consideration 
133.30 	in money or by exchange or barter, tangible personal property, other than a manufactured 
133.31 	home used for residential purposes for a continuous period of 30 days or more.
133.32 	(c) Sale and purchase include the production, fabrication, printing, or processing of 
133.33 	tangible personal property for a consideration for consumers who furnish either directly or 
133.34 	indirectly the materials used in the production, fabrication, printing, or processing.
134.1 	(d) Sale and purchase include the preparing for a consideration of food. 
134.2 	Notwithstanding section 297A.67, subdivision 2, taxable food includes, but is not limited 
134.3 	to, the following:
134.4 	(1) prepared food sold by the retailer;
134.5 	(2) soft drinks;
134.6 	(3) candy;
134.7 	(4) dietary supplements; and
134.8 	(5) all food sold through vending machines.
134.9 	(e) A sale and a purchase includes the furnishing for a consideration of electricity, 
134.10 	gas, water, or steam for use or consumption within this state.
134.11 	(f) A sale and a purchase includes the transfer for a consideration of prewritten 
134.12 	computer software whether delivered electronically, by load and leave, or otherwise.
134.13 	(g) A sale and a purchase includes the furnishing for a consideration of the following 
134.14 	services:
134.15 	(1) the privilege of admission to places of amusement, recreational areas, or athletic 
134.16 	events, and the making available of amusement devices, tanning facilities, reducing 
134.17 	salons, steam baths, Turkish baths, health clubs, and spas or athletic facilities;
134.18 	(2) lodging and related services by a hotel, rooming house, resort, campground, 
134.19 	motel, or trailer camp, including furnishing the guest of the facility with access to 
134.20 	telecommunication services, and the granting of any similar license to use real property in 
134.21 	a specific facility, other than the renting or leasing of it for a continuous period of 30 days 
134.22 	or more under an enforceable written agreement that may not be terminated without prior 
134.23 	notice and including accommodations intermediary services provided in connection with 
134.24 	other services provided under this clause;
134.25 	(3) nonresidential parking services, whether on a contractual, hourly, or other 
134.26 	periodic basis, except for parking at a meter;
134.27 	(4) the granting of membership in a club, association, or other organization if:
134.28 	(i) the club, association, or other organization makes available for the use of its 
134.29 	members sports and athletic facilities, without regard to whether a separate charge is 
134.30 	assessed for use of the facilities; and
134.31 	(ii) use of the sports and athletic facility is not made available to the general public 
134.32 	on the same basis as it is made available to members.
134.33 	Granting of membership means both onetime initiation fees and periodic membership 
134.34 	dues. Sports and athletic facilities include golf courses; tennis, racquetball, handball, and 
134.35 	squash courts; basketball and volleyball facilities; running tracks; exercise equipment; 
134.36 	swimming pools; and other similar athletic or sports facilities;
135.1 	(5) delivery of aggregate materials by a third party, excluding delivery of aggregate 
135.2 	material used in road construction; and delivery of concrete block by a third party if the 
135.3 	delivery would be subject to the sales tax if provided by the seller of the concrete block. 
135.4 	For purposes of this clause, "road construction" means construction of:
135.5 	(i) public roads;
135.6 	(ii) cartways; and
135.7 	(iii) private roads in townships located outside of the seven-county metropolitan area 
135.8 	up to the point of the emergency response location sign; and
135.9 	(6) services as provided in this clause:
135.10 	(i) laundry and dry cleaning services including cleaning, pressing, repairing, altering, 
135.11 	and storing clothes, linen services and supply, cleaning and blocking hats, and carpet, 
135.12 	drapery, upholstery, and industrial cleaning. Laundry and dry cleaning services do not 
135.13 	include services provided by coin operated facilities operated by the customer;
135.14 	(ii) motor vehicle washing, waxing, and cleaning services, including services 
135.15 	provided by coin operated facilities operated by the customer, and rustproofing, 
135.16 	undercoating, and towing of motor vehicles;
135.17 	(iii) building and residential cleaning, maintenance, and disinfecting services and 
135.18 	pest control and exterminating services;
135.19 	(iv) detective, security, burglar, fire alarm, and armored car services; but not 
135.20 	including services performed within the jurisdiction they serve by off-duty licensed peace 
135.21 	officers as defined in section 626.84, subdivision 1, or services provided by a nonprofit 
135.22 	organization or any organization at the direction of a county for monitoring and electronic 
135.23 	surveillance of persons placed on in-home detention pursuant to court order or under the 
135.24 	direction of the Minnesota Department of Corrections;
135.25 	(v) pet grooming services;
135.26 	(vi) lawn care, fertilizing, mowing, spraying and sprigging services; garden planting 
135.27 	and maintenance; tree, bush, and shrub pruning, bracing, spraying, and surgery; indoor 
135.28 	plant care; tree, bush, shrub, and stump removal, except when performed as part of a land 
135.29 	clearing contract as defined in section 297A.68, subdivision 40; and tree trimming for 
135.30 	public utility lines. Services performed under a construction contract for the installation of 
135.31 	shrubbery, plants, sod, trees, bushes, and similar items are not taxable;
135.32 	(vii) massages, except when provided by a licensed health care facility or 
135.33 	professional or upon written referral from a licensed health care facility or professional for 
135.34 	treatment of illness, injury, or disease; and
135.35 	(viii) the furnishing of lodging, board, and care services for animals in kennels and 
135.36 	other similar arrangements, but excluding veterinary and horse boarding services.
136.1 	(h) A sale and a purchase includes the furnishing for a consideration of tangible 
136.2 	personal property or taxable services by the United States or any of its agencies or 
136.3 	instrumentalities, or the state of Minnesota, its agencies, instrumentalities, or political 
136.4 	subdivisions.
136.5 	(i) A sale and a purchase includes the furnishing for a consideration of 
136.6 	telecommunications services, ancillary services associated with telecommunication 
136.7 	services, and pay television services. Telecommunication services include, but are 
136.8 	not limited to, the following services, as defined in section 297A.669: air-to-ground 
136.9 	radiotelephone service, mobile telecommunication service, postpaid calling service, 
136.10 	prepaid calling service, prepaid wireless calling service, and private communication 
136.11 	services. The services in this paragraph are taxed to the extent allowed under federal law.
136.12 	(j) A sale and a purchase includes the furnishing for a consideration of installation if 
136.13 	the installation charges would be subject to the sales tax if the installation were provided 
136.14 	by the seller of the item being installed.
136.15 	(k) A sale and a purchase includes the rental of a vehicle by a motor vehicle dealer 
136.16 	to a customer when (1) the vehicle is rented by the customer for a consideration, or (2) 
136.17 	the motor vehicle dealer is reimbursed pursuant to a service contract as defined in section 
136.18 	59B.02, subdivision 11.
136.19 	(l) A sale and a purchase includes furnishing for a consideration of specified digital 
136.20 	products or other digital products or granting the right for a consideration to use specified 
136.21 	digital products or other digital products on a temporary or permanent basis and regardless 
136.22 	of whether the purchaser is required to make continued payments for such right. Wherever 
136.23 	the term "tangible personal property" is used in this chapter, other than in subdivisions 10 
136.24 	and 38, the provisions also apply to specified digital products, or other digital products, 
136.25 	unless specifically provided otherwise or the context indicates otherwise.

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

136.27 	Sec. 73. Minnesota Statutes 2012, section 297A.70, subdivision 10, is amended to read:
136.28 		Subd. 10.Nonprofit tickets or admissions. (a) Tickets or admissions to an event 
136.29 	are exempt if all the gross receipts are recorded as such, in accordance with generally 
136.30 	accepted accounting principles, on the books of one or more organizations whose primary 
136.31 	mission is to provide an opportunity for citizens of the state to participate in the creation, 
136.32 	performance, or appreciation of the arts, and provided that each organization is:
136.33 	(1) an organization described in section 501(c)(3) of the Internal Revenue Code 
136.34 	in which voluntary contributions make up at least the following five percent of the 
137.1 	organization's annual revenue in its most recently completed 12-month fiscal year, or in 
137.2 	the current year if the organization has not completed a 12-month fiscal year:;
137.3 	(i) for sales made after July 31, 2001, and before July 1, 2002, for the organization's 
137.4 	fiscal year completed in calendar year 2000, three percent;
137.5 	(ii) for sales made on or after July 1, 2002, and on or before June 30, 2003, for the 
137.6 	organization's fiscal year completed in calendar year 2001, three percent;
137.7 	(iii) for sales made on or after July 1, 2003, and on or before June 30, 2004, for the 
137.8 	organization's fiscal year completed in calendar year 2002, four percent; and
137.9 	(iv) for sales made in each 12-month period, beginning on July 1, 2004, and each 
137.10 	subsequent year, for the organization's fiscal year completed in the preceding calendar 
137.11 	year, five percent;
137.12 	(2) a municipal board that promotes cultural and arts activities; or
137.13 	(3) the University of Minnesota, a state college and university, or a private nonprofit 
137.14 	college or university provided that the event is held at a facility owned by the educational 
137.15 	institution holding the event.
137.16 	The exemption only applies if the entire proceeds, after reasonable expenses, are used 
137.17 	solely to provide opportunities for citizens of the state to participate in the creation, 
137.18 	performance, or appreciation of the arts.
137.19 	(b) Tickets or admissions to the premises of the Minnesota Zoological Garden are 
137.20 	exempt, provided that the exemption under this paragraph does not apply to tickets or 
137.21 	admissions to performances or events held on the premises unless the performance or 
137.22 	event is sponsored and conducted exclusively by the Minnesota Zoological Board or 
137.23 	employees of the Minnesota Zoological Garden.

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

137.25 	Sec. 74. Minnesota Statutes 2013 Supplement, section 297A.75, subdivision 1, is 
137.26 	amended to read:
137.27 		Subdivision 1.Tax collected. The tax on the gross receipts from the sale of the 
137.28 	following exempt items must be imposed and collected as if the sale were taxable and the 
137.29 	rate under section 297A.62, subdivision 1, applied. The exempt items include:
137.30 	(1) building materials for an agricultural processing facility exempt under section 
137.31 	297A.71, subdivision 13;
137.32 	(2) building materials for mineral production facilities exempt under section 
137.33 	297A.71, subdivision 14;
137.34 	(3) building materials for correctional facilities under section 297A.71, subdivision 3;
138.1 	(4) building materials used in a residence for disabled veterans exempt under section 
138.2 	297A.71, subdivision 11;
138.3 	(5) elevators and building materials exempt under section 297A.71, subdivision 12;
138.4 	(6) building materials for the Long Lake Conservation Center exempt under section 
138.5 	297A.71, subdivision 17;
138.6 	(7) (6) materials and supplies for qualified low-income housing under section 
138.7 	297A.71, subdivision 23;
138.8 	(8) (7) materials, supplies, and equipment for municipal electric utility facilities 
138.9 	under section 297A.71, subdivision 35;
138.10 	(9) (8) equipment and materials used for the generation, transmission, and 
138.11 	distribution of electrical energy and an aerial camera package exempt under section 
138.12 	297A.68, subdivision 37;
138.13 	(10) (9) commuter rail vehicle and repair parts under section 297A.70, subdivision 
138.14 	3, paragraph (a), clause (10);
138.15 	(11) (10) materials, supplies, and equipment for construction or improvement of 
138.16 	projects and facilities under section 297A.71, subdivision 40;
138.17 	(12) materials, supplies, and equipment for construction or improvement of a meat 
138.18 	processing facility exempt under section 297A.71, subdivision 41;
138.19 	(13) (11) materials, supplies, and equipment for construction, improvement, or 
138.20 	expansion of:
138.21 	(i) an aerospace defense manufacturing facility exempt under section 297A.71, 
138.22 	subdivision 42;
138.23 	(ii) a biopharmaceutical manufacturing facility exempt under section 297A.71, 
138.24 	subdivision 45;
138.25 	(iii) a research and development facility exempt under section 297A.71, subdivision 
138.26 	46; and
138.27 	(iv) an industrial measurement manufacturing and controls facility exempt under 
138.28 	section 297A.71, subdivision 47;
138.29 	(14) (12) enterprise information technology equipment and computer software for 
138.30 	use in a qualified data center exempt under section 297A.68, subdivision 42;
138.31 	(15) (13) materials, supplies, and equipment for qualifying capital projects under 
138.32 	section 297A.71, subdivision 44;
138.33 	(16) (14) items purchased for use in providing critical access dental services exempt 
138.34 	under section 297A.70, subdivision 7, paragraph (c); and
138.35 	(17) (15) items and services purchased under a business subsidy agreement for use or 
138.36 	consumption primarily in greater Minnesota exempt under section 297A.68, subdivision 44.

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

139.2 	Sec. 75. Minnesota Statutes 2013 Supplement, section 297A.75, subdivision 2, is 
139.3 	amended to read:
139.4 		Subd. 2.Refund; eligible persons. Upon application on forms prescribed by the 
139.5 	commissioner, a refund equal to the tax paid on the gross receipts of the exempt items 
139.6 	must be paid to the applicant. Only the following persons may apply for the refund:
139.7 	(1) for subdivision 1, clauses (1), (2), and (16) (14), the applicant must be the 
139.8 	purchaser;
139.9 	(2) for subdivision 1, clauses clause (3) and (6), the applicant must be the 
139.10 	governmental subdivision;
139.11 	(3) for subdivision 1, clause (4), the applicant must be the recipient of the benefits 
139.12 	provided in United States Code, title 38, chapter 21;
139.13 	(4) for subdivision 1, clause (5), the applicant must be the owner of the homestead 
139.14 	property;
139.15 	(5) for subdivision 1, clause (7) (6), the owner of the qualified low-income housing 
139.16 	project;
139.17 	(6) for subdivision 1, clause (8) (7), the applicant must be a municipal electric utility 
139.18 	or a joint venture of municipal electric utilities;
139.19 	(7) for subdivision 1, clauses (9), (12), (13), (14) (8), (11), (12), and (17) (15), 
139.20 	the owner of the qualifying business; and
139.21 	(8) for subdivision 1, clauses (9), (10), (11), and (15) (13), the applicant must be the 
139.22 	governmental entity that owns or contracts for the project or facility.

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

139.24 	Sec. 76. Minnesota Statutes 2013 Supplement, section 297A.75, subdivision 3, is 
139.25 	amended to read:
139.26 		Subd. 3.Application. (a) The application must include sufficient information 
139.27 	to permit the commissioner to verify the tax paid. If the tax was paid by a contractor, 
139.28 	subcontractor, or builder, under subdivision 1, clauses (3) to (15) (13), or (17) (15), the 
139.29 	contractor, subcontractor, or builder must furnish to the refund applicant a statement 
139.30 	including the cost of the exempt items and the taxes paid on the items unless otherwise 
139.31 	specifically provided by this subdivision. The provisions of sections 289A.40 and 
139.32 	289A.50 apply to refunds under this section.
139.33 	(b) An applicant may not file more than two applications per calendar year for 
139.34 	refunds for taxes paid on capital equipment exempt under section 297A.68, subdivision 5.
140.1 	(c) Total refunds for purchases of items in section 297A.71, subdivision 40, must not 
140.2 	exceed $5,000,000 in fiscal years 2010 and 2011. Applications for refunds for purchases 
140.3 	of items in sections 297A.70, subdivision 3, paragraph (a), clause (11), and 297A.71, 
140.4 	subdivision 40, must not be filed until after June 30, 2009.

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

140.6 	Sec. 77. Minnesota Statutes 2012, section 297A.94, is amended to read:
140.7 	297A.94 DEPOSIT OF REVENUES.
140.8 	(a) Except as provided in this section, the commissioner shall deposit the revenues, 
140.9 	including interest and penalties, derived from the taxes imposed by this chapter in the state 
140.10 	treasury and credit them to the general fund.
140.11 	(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic 
140.12 	account in the special revenue fund if:
140.13 	(1) the taxes are derived from sales and use of property and services purchased for 
140.14 	the construction and operation of an agricultural resource project; and
140.15 	(2) the purchase was made on or after the date on which a conditional commitment 
140.16 	was made for a loan guaranty for the project under section 41A.04, subdivision 3.
140.17 	The commissioner of management and budget shall certify to the commissioner the date 
140.18 	on which the project received the conditional commitment. The amount deposited in 
140.19 	the loan guaranty account must be reduced by any refunds and by the costs incurred by 
140.20 	the Department of Revenue to administer and enforce the assessment and collection of 
140.21 	the taxes.
140.22 	(c) The commissioner shall deposit the revenues, including interest and penalties, 
140.23 	derived from the taxes imposed on sales and purchases included in section 297A.61, 
140.24 	subdivision 3, paragraph (g), clauses (1) and (4), in the state treasury, and credit them 
140.25 	as follows:
140.26 	(1) first to the general obligation special tax bond debt service account in each fiscal 
140.27 	year the amount required by section 16A.661, subdivision 3, paragraph (b); and
140.28 	(2) after the requirements of clause (1) have been met, the balance to the general fund.
140.29 	(d) The commissioner shall deposit the revenues, including interest and penalties, 
140.30 	collected under section 297A.64, subdivision 5, in the state treasury and credit them to the 
140.31 	general fund. By July 15 of each year the commissioner shall transfer to the highway user 
140.32 	tax distribution fund an amount equal to the excess fees collected under section 297A.64, 
140.33 	subdivision 5, for the previous calendar year.
141.1 	(e) For fiscal year 2001, 97 percent; for fiscal years 2002 and 2003, 87 percent; and 
141.2 	For fiscal year 2004 and thereafter,72.43 percent of the revenues, including interest and 
141.3 	penalties, transmitted to the commissioner under section 297A.65, must be deposited by 
141.4 	the commissioner in the state treasury as follows:
141.5 	(1) 50 percent of the receipts must be deposited in the heritage enhancement account 
141.6 	in the game and fish fund, and may be spent only on activities that improve, enhance, or 
141.7 	protect fish and wildlife resources, including conservation, restoration, and enhancement 
141.8 	of land, water, and other natural resources of the state;
141.9 	(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and 
141.10 	may be spent only for state parks and trails;
141.11 	(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and 
141.12 	may be spent only on metropolitan park and trail grants;
141.13 	(4) three percent of the receipts must be deposited in the natural resources fund, and 
141.14 	may be spent only on local trail grants; and
141.15 	(5) two percent of the receipts must be deposited in the natural resources fund, 
141.16 	and may be spent only for the Minnesota Zoological Garden, the Como Park Zoo and 
141.17 	Conservatory, and the Duluth Zoo.
141.18 	(f) The revenue dedicated under paragraph (e) may not be used as a substitute 
141.19 	for traditional sources of funding for the purposes specified, but the dedicated revenue 
141.20 	shall supplement traditional sources of funding for those purposes. Land acquired with 
141.21 	money deposited in the game and fish fund under paragraph (e) must be open to public 
141.22 	hunting and fishing during the open season, except that in aquatic management areas or 
141.23 	on lands where angling easements have been acquired, fishing may be prohibited during 
141.24 	certain times of the year and hunting may be prohibited. At least 87 percent of the money 
141.25 	deposited in the game and fish fund for improvement, enhancement, or protection of fish 
141.26 	and wildlife resources under paragraph (e) must be allocated for field operations.
141.27 	(g) The revenues deposited under paragraphs (a) to (f) do not include the revenues, 
141.28 	including interest and penalties, generated by the sales tax imposed under section 
141.29 	297A.62, subdivision 1a, which must be deposited as provided under the Minnesota 
141.30 	Constitution, article XI, section 15.

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

141.32 	Sec. 78. Minnesota Statutes 2012, section 297B.09, is amended to read:
141.33 	297B.09 ALLOCATION OF REVENUE.
142.1 		Subdivision 1.Deposit of revenues. (a) Money collected and received under this 
142.2 	chapter must be deposited as provided in this subdivision.
142.3 	(b) From July 1, 2007, through June 30, 2008, 38.25 percent of the money collected 
142.4 	and received must be deposited in the highway user tax distribution fund, 24 percent must 
142.5 	be deposited in the metropolitan area transit account under section 16A.88, and 1.5 percent 
142.6 	must be deposited in the greater Minnesota transit account under section 16A.88. The 
142.7 	remaining money must be deposited in the general fund.
142.8 	(c) From July 1, 2008, through June 30, 2009, 44.25 percent of the money collected 
142.9 	and received must be deposited in the highway user tax distribution fund, 27.75 percent 
142.10 	must be deposited in the metropolitan area transit account under section 16A.88, 1.75 
142.11 	percent must be deposited in the greater Minnesota transit account under section 16A.88, 
142.12 	and the remaining money must be deposited in the general fund.
142.13 	(d) From July 1, 2009, through June 30, 2010, 47.5 percent of the money collected 
142.14 	and received must be deposited in the highway user tax distribution fund, 30 percent 
142.15 	must be deposited in the metropolitan area transit account under section 16A.88, 3.5 
142.16 	percent must be deposited in the greater Minnesota transit account under section 16A.88, 
142.17 	and 16.25 percent must be deposited in the general fund. The remaining amount must 
142.18 	be deposited as follows:
142.19 	(1) 1.5 percent in the metropolitan area transit account, except that any amount in 
142.20 	excess of $6,000,000 must be deposited in the highway user tax distribution fund; and
142.21 	(2) 1.25 percent in the greater Minnesota transit account, except that any amount in 
142.22 	excess of $5,000,000 must be deposited in the highway user tax distribution fund.
142.23 	(e) From July 1, 2010, through June 30, 2011, 54.5 percent of the money collected 
142.24 	and received must be deposited in the highway user tax distribution fund, 33.75 percent 
142.25 	must be deposited in the metropolitan area transit account under section 16A.88, 3.75 
142.26 	percent must be deposited in the greater Minnesota transit account under section 16A.88, 
142.27 	and 6.25 percent must be deposited in the general fund. The remaining amount must 
142.28 	be deposited as follows:
142.29 	(1) 1.5 percent in the metropolitan area transit account, except that any amount in 
142.30 	excess of $6,750,000 must be deposited in the highway user tax distribution fund; and
142.31 	(2) 0.25 percent in the greater Minnesota transit account, except that any amount in 
142.32 	excess of $1,250,000 must be deposited in the highway user tax distribution fund.
142.33 	(f) On and after July 1, 2011,(b) 60 percent of the money collected and received 
142.34 	must be deposited in the highway user tax distribution fund, 36 percent must be deposited 
142.35 	in the metropolitan area transit account under section 16A.88, and four percent must be 
142.36 	deposited in the greater Minnesota transit account under section 16A.88.
143.1 	(g) (c) It is the intent of the legislature that the allocations under paragraph (f) (b)
143.2 	 remain unchanged for fiscal year 2012 and all subsequent fiscal years.

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

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

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

143.13 	Sec. 80. Minnesota Statutes 2012, section 297I.05, subdivision 14, is amended to read:
143.14 		Subd. 14.Life insurance. A tax is imposed on life insurance. The rate of tax equals 
143.15 	a percentage 1.5 percent of gross premiums less return premiums on all direct business 
143.16 	received by the insurer or agents of the insurer in Minnesota for life insurance, in cash or 
143.17 	otherwise, during the year. For premiums received after December 31, 2005, but before 
143.18 	January 1, 2007, the rate of tax is 1.875 percent. For premiums received after December 
143.19 	31, 2006, but before January 1, 2008, the rate of tax is 1.75 percent. For premiums 
143.20 	received after December 31, 2007, but before January 1, 2009, the rate of tax is 1.625 
143.21 	percent. For premiums received after December 31, 2008, the rate of tax is 1.5 percent.

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

143.23 	Sec. 81. Minnesota Statutes 2012, section 298.75, subdivision 1, is amended to read:
143.24 		Subdivision 1.Definitions. Except as may otherwise be provided, the following 
143.25 	words, when used in this section, shall have the meanings herein ascribed to them.
143.26 	(a) "Aggregate material" means:
143.27 	(1) nonmetallic natural mineral aggregate including, but not limited to sand, silica 
143.28 	sand, gravel, crushed rock, limestone, granite, and borrow, but only if the borrow is 
143.29 	transported on a public road, street, or highway, provided that nonmetallic aggregate 
143.30 	material does not include dimension stone and dimension granite; and
143.31 	(2) taconite tailings, crushed rock, and architectural or dimension stone and dimension 
143.32 	granite removed from a taconite mine or the site of a previously operated taconite mine.
144.1 	Aggregate material must be measured or weighed after it has been extracted from 
144.2 	the pit, quarry, or deposit.
144.3 	(b) "Person" means any individual, firm, partnership, corporation, organization, 
144.4 	trustee, association, or other entity.
144.5 	(c) "Operator" means any person engaged in the business of removing aggregate 
144.6 	material from the surface or subsurface of the soil, for the purpose of sale, either directly 
144.7 	or indirectly, through the use of the aggregate material in a marketable product or service.
144.8 	(d) "Extraction site" means a pit, quarry, or deposit containing aggregate material 
144.9 	and any contiguous property to the pit, quarry, or deposit which is used by the operator for 
144.10 	stockpiling the aggregate material.
144.11 	(e) "Importer" means any person who buys aggregate material excavated from a 
144.12 	county not listed in paragraph (f) or another state site on which the tax under this section is 
144.13 	not imposed and causes the aggregate material to be imported into a county in this state 
144.14 	which imposes a tax on aggregate material.
144.15 	(f) "County" means the counties of Pope, Stearns, Benton, Sherburne, Carver, Scott, 
144.16 	Dakota, Le Sueur, Kittson, Marshall, Pennington, Red Lake, Polk, Norman, Mahnomen, 
144.17 	Clay, Becker, Carlton, St. Louis, Rock, Murray, Wilkin, Big Stone, Sibley, Hennepin, 
144.18 	Washington, Chisago, and Ramsey. County also means a county imposing the tax under 
144.19 	this section on December 31, 2014, or any other county whose board has voted after a 
144.20 	public hearing to impose the tax under this section and has notified the commissioner of 
144.21 	revenue of the imposition of the tax.
144.22 	(g) "Borrow" means granular borrow, consisting of durable particles of gravel and 
144.23 	sand, crushed quarry or mine rock, crushed gravel or stone, or any combination thereof, 
144.24 	the ratio of the portion passing the (#200) sieve divided by the portion passing the (1 inch) 
144.25 	sieve may not exceed 20 percent by mass.

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

144.27 	Sec. 82. Minnesota Statutes 2012, section 412.131, is amended to read:
144.28 	412.131 ASSESSOR; DUTIES, COMPENSATION.
144.29 	The city assessor, if there is one, shall assess and return as provided by law all 
144.30 	property taxable within the city, if a separate assessment district, and the assessor of the 
144.31 	town within which the city lies shall not include in the return any property taxable in the 
144.32 	city. Any assessor may appoint a deputy assessor as provided in section 273.06. The 
144.33 	assessor may be compensated on a full-time or part-time basis at the option of the council 
144.34 	but the compensation shall be not less than $100 in any one year, if fixed on an annual 
145.1 	basis, or not more than $20 per day, if fixed on a per diem basis. If the compensation is 
145.2 	not fixed by the council the assessor shall be entitled to compensation at the rate of $20 
145.3 	per day for each days service necessarily rendered, and mileage at the rate paid other city 
145.4 	officers for each mile necessarily traveled in going to and returning from the county seat of 
145.5 	the county to attend any meeting of the assessors of the county legally called by the county 
145.6 	auditor, and also for each mile necessarily traveled in making the return of assessment 
145.7 	to the proper county officer and in attending sectional meetings called by the county 
145.8 	assessor, except when mileage is paid by the county. In addition to other compensation, 
145.9 	the council may allow the assessor mileage at the same rate per mile as paid other city 
145.10 	officers for each mile necessarily traveled in assessment work.

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

145.12 	Sec. 83. Minnesota Statutes 2013 Supplement, section 423A.022, subdivision 3, 
145.13 	is amended to read:
145.14 		Subd. 3.Reporting; definitions. (a) On or before September 1, annually, the 
145.15 	executive director of the Public Employees Retirement Association shall report to the 
145.16 	commissioner of revenue the following:
145.17 	(1) the municipalities which employ firefighters with retirement coverage by the 
145.18 	public employees police and fire retirement plan;
145.19 	(2) the number of firefighters with public employees police and fire retirement plan 
145.20 	coverage employed by each municipality;
145.21 	(3) (2) the fire departments covered by the voluntary statewide lump-sum volunteer 
145.22 	firefighter retirement plan; and
145.23 	(4) (3) any other information requested by the commissioner to administer the police 
145.24 	and firefighter retirement supplemental state aid program.
145.25 	(b) For this subdivision, (i) the number of firefighters employed by a municipality 
145.26 	who have public employees police and fire retirement plan coverage means the number 
145.27 	of firefighters with public employees police and fire retirement plan coverage that were 
145.28 	employed by the municipality for not less than 30 hours per week for a minimum of six 
145.29 	months prior to December 31 preceding the date of the payment under this section and, if 
145.30 	the person was employed for less than the full year, prorated to the number of full months 
145.31 	employed; and (ii) the number of active police officers certified for police state aid receipt 
145.32 	under section 69.011, subdivisions 2 and 2b, means, for each municipality, the number of 
145.33 	police officers meeting the definition of peace officer in section 69.011, subdivision 1, 
145.34 	counted as provided and limited by section 69.011, subdivisions 2 and 2b.

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

146.2 	Sec. 84. Minnesota Statutes 2013 Supplement, section 465.04, is amended to read:
146.3 	465.04 ACCEPTANCE OF GIFTS.
146.4 	Cities A city of the second, third, or fourth class, having at any time an estimated 
146.5 	market value of not more than $41,000,000, as officially equalized by the commissioner 
146.6 	of revenue, either operating under a home rule charter or under the laws of this state, in 
146.7 	addition to all other powers possessed by them, hereby are authorized and empowered to
146.8 	 may receive and accept gifts and donations for the use and benefit of such cities and the 
146.9 	city and its inhabitants thereof upon terms and conditions to be approved by the governing 
146.10 	bodies body of such cities; and such cities are authorized to comply with and perform such
146.11 	 the city. The terms and conditions, which may include payment to the donor or donors of 
146.12 	interest on the value of the gift at not exceeding five percent per annum payable annually or 
146.13 	semiannually, during the remainder of the natural life or lives of such the donor or donors.

146.14 	Sec. 85. Minnesota Statutes 2012, section 469.176, subdivision 1b, is amended to read:
146.15 		Subd. 1b.Duration limits; terms. (a) No tax increment shall in any event be 
146.16 	paid to the authority:
146.17 	(1) after 15 years after receipt by the authority of the first increment for a renewal 
146.18 	and renovation district;
146.19 	(2) after 20 years after receipt by the authority of the first increment for a soils 
146.20 	condition district;
146.21 	(3) after eight years after receipt by the authority of the first increment for an 
146.22 	economic development district;
146.23 	(4) for a housing district, a compact development district, or a redevelopment 
146.24 	district, after 25 years from the date of receipt by the authority of the first increment.
146.25 	(b) For purposes of determining a duration limit under this subdivision or subdivision 
146.26 	1e that is based on the receipt of an increment, any increments from taxes payable in the year 
146.27 	in which the district terminates shall be paid to the authority. This paragraph does not affect 
146.28 	a duration limit calculated from the date of approval of the tax increment financing plan or 
146.29 	based on the recovery of costs or to a duration limit under subdivision 1c. This paragraph 
146.30 	does not supersede the restrictions on payment of delinquent taxes in subdivision 1f.
146.31 	(c) An action by the authority to waive or decline to accept an increment has no 
146.32 	effect for purposes of computing a duration limit based on the receipt of increment under 
146.33 	this subdivision or any other provision of law. The authority is deemed to have received an 
147.1 	increment for any year in which it waived or declined to accept an increment, regardless 
147.2 	of whether the increment was paid to the authority.
147.3 	(d) Receipt by a hazardous substance subdistrict of an increment as a result of a 
147.4 	reduction in original net tax capacity under section 469.174, subdivision 7, paragraph 
147.5 	(b), does not constitute receipt of increment by the overlying district for the purpose of 
147.6 	calculating the duration limit under this section.

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

147.8 	Sec. 86. Minnesota Statutes 2012, section 469.176, subdivision 3, is amended to read:
147.9 		Subd. 3.Limitation on administrative expenses. (a) For districts for which 
147.10 	certification was requested before August 1, 1979, or after June 30, 1982 and before
147.11 	 August 1, 2001, no tax increment shall be used to pay any administrative expenses for 
147.12 	a project which exceed ten percent of the total estimated tax increment expenditures 
147.13 	authorized by the tax increment financing plan or the total tax increment expenditures 
147.14 	for the project, whichever is less.
147.15 	(b) For districts for which certification was requested after July 31, 1979, and before 
147.16 	July 1, 1982, no tax increment shall be used to pay administrative expenses, as defined in 
147.17 	Minnesota Statutes 1980, section 273.73, for a district which exceeds five percent of the 
147.18 	total tax increment expenditures authorized by the tax increment financing plan or the total 
147.19 	estimated tax increment expenditures for the district, whichever is less.
147.20 	(c) (b) For districts for which certification was requested after July 31, 2001, no tax 
147.21 	increment may be used to pay any administrative expenses for a project which exceed 
147.22 	ten percent of total estimated tax increment expenditures authorized by the tax increment 
147.23 	financing plan or the total tax increments, as defined in section 469.174, subdivision 25, 
147.24 	clause (1), from the district, whichever is less.
147.25 	(d) (c) Increments used to pay the county's administrative expenses under 
147.26 	subdivision 4h are not subject to the percentage limits in this subdivision.

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

147.28 	Sec. 87. Minnesota Statutes 2013 Supplement, section 469.1763, subdivision 2, 
147.29 	is amended to read:
147.30 		Subd. 2.Expenditures outside district. (a) For each tax increment financing 
147.31 	district, an amount equal to at least 75 percent of the total revenue derived from tax 
147.32 	increments paid by properties in the district must be expended on activities in the district 
147.33 	or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities 
148.1 	in the district or to pay, or secure payment of, debt service on credit enhanced bonds. 
148.2 	For districts, other than redevelopment districts for which the request for certification 
148.3 	was made after June 30, 1995, the in-district percentage for purposes of the preceding 
148.4 	sentence is 80 percent. Not more than 25 percent of the total revenue derived from tax 
148.5 	increments paid by properties in the district may be expended, through a development fund 
148.6 	or otherwise, on activities outside of the district but within the defined geographic area of 
148.7 	the project except to pay, or secure payment of, debt service on credit enhanced bonds. 
148.8 	For districts, other than redevelopment districts for which the request for certification was 
148.9 	made after June 30, 1995, the pooling percentage for purposes of the preceding sentence is 
148.10 	20 percent. The revenue derived from tax increments for the district that are expended on 
148.11 	costs under section 469.176, subdivision 4h, paragraph (b), may be deducted first before 
148.12 	calculating the percentages that must be expended within and without the district.
148.13 	(b) In the case of a housing district, a housing project, as defined in section 469.174, 
148.14 	subdivision 11, is an activity in the district.
148.15 	(c) All administrative expenses are for activities outside of the district, except that 
148.16 	if the only expenses for activities outside of the district under this subdivision are for 
148.17 	the purposes described in paragraph (d), administrative expenses will be considered as 
148.18 	expenditures for activities in the district.
148.19 	(d) The authority may elect, in the tax increment financing plan for the district, 
148.20 	to increase by up to ten percentage points the permitted amount of expenditures for 
148.21 	activities located outside the geographic area of the district under paragraph (a). As 
148.22 	permitted by section 469.176, subdivision 4k, the expenditures, including the permitted 
148.23 	expenditures under paragraph (a), need not be made within the geographic area of the 
148.24 	project. Expenditures that meet the requirements of this paragraph are legally permitted 
148.25 	expenditures of the district, notwithstanding section 469.176, subdivisions 4b, 4c, and 4j. 
148.26 	To qualify for the increase under this paragraph, the expenditures must:
148.27 	(1) be used exclusively to assist housing that meets the requirement for a qualified 
148.28 	low-income building, as that term is used in section 42 of the Internal Revenue Code; and
148.29 	(2) not exceed the qualified basis of the housing, as defined under section 42(c) of 
148.30 	the Internal Revenue Code, less the amount of any credit allowed under section 42 of 
148.31 	the Internal Revenue Code; and
148.32 	(3) be used to:
148.33 	(i) acquire and prepare the site of the housing;
148.34 	(ii) acquire, construct, or rehabilitate the housing; or
148.35 	(iii) make public improvements directly related to the housing; or
148.36 	(4) be used to develop housing:
149.1 	(i) if the market value of the housing does not exceed the lesser of:
149.2 	(A) 150 percent of the average market value of single-family homes in that 
149.3 	municipality; or
149.4 	(B) $200,000 for municipalities located in the metropolitan area, as defined in 
149.5 	section 473.121, or $125,000 for all other municipalities; and
149.6 	(ii) if the expenditures are used to pay the cost of site acquisition, relocation, 
149.7 	demolition of existing structures, site preparation, and pollution abatement on one or 
149.8 	more parcels, if the parcel contains a residence containing one to four family dwelling 
149.9 	units that has been vacant for six or more months and is in foreclosure as defined in 
149.10 	section 325N.10, subdivision 7, but without regard to whether the residence is the owner's 
149.11 	principal residence, and only after the redemption period has expired.
149.12 	(e) For a district created within a biotechnology and health sciences industry zone 
149.13 	as defined in section 469.330, subdivision 6, or for an existing district located within 
149.14 	such a zone, tax increment derived from such a district may be expended outside of the 
149.15 	district but within the zone only for expenditures required for the construction of public 
149.16 	infrastructure necessary to support the activities of the zone, land acquisition, and other 
149.17 	redevelopment costs as defined in section 469.176, subdivision 4j. These expenditures are 
149.18 	considered as expenditures for activities within the district. The authority provided by 
149.19 	this paragraph expires for expenditures made after the later of (1) December 31, 2015, 
149.20 	or (2) the end of the five-year period beginning on the date the district was certified, 
149.21 	provided that date was before January 1, 2016.
149.22 	(f) The authority under paragraph (d), clause (4), expires on December 31, 2016. 
149.23 	Increments may continue to be expended under this authority after that date, if they are 
149.24 	used to pay bonds or binding contracts that would qualify under subdivision 3, paragraph 
149.25 	(a), if December 31, 2016, is considered to be the last date of the five-year period after 
149.26 	certification under that provision.

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

149.29 	Sec. 88. Minnesota Statutes 2012, section 473.665, subdivision 5, is amended to read:
149.30 		Subd. 5.Tax levy; surplus; reduction. The corporation, upon issuing any bonds 
149.31 	under the provisions of this section, shall, before the issuance thereof, levy for each year, 
149.32 	until the principal and interest are paid in full, a direct annual tax on all the taxable property 
149.33 	of the cities in and for which the corporation has been created in an amount not less than 
149.34 	five percent in excess of the sum required to pay the principal and interest thereof, when 
149.35 	and as such principal and interest matures. After any of such bonds have been delivered to 
150.1 	purchasers, such tax shall be irrepealable until all such indebtedness is paid, and after the 
150.2 	issuance of such bonds no further action of the corporation shall be necessary to authorize 
150.3 	the extensions, assessments, and collection of such tax. The secretary of the corporation 
150.4 	shall forthwith furnish a certified copy of such levy to the county auditor or county 
150.5 	auditors of the county or counties in which the cities in and for which the corporation has 
150.6 	been created are located, together with full information regarding the bonds for which the 
150.7 	tax is levied, and such county auditor or such county auditors, as the case may be, shall 
150.8 	enter the same in the register provided for in section 475.62, or a similar register, and shall 
150.9 	extend and assess the tax so levied. If both cities are located wholly within one county, the 
150.10 	county auditor thereof shall annually extend and assess the amount of the tax so levied. If 
150.11 	the cities are located in different counties, the county auditor of each such county shall 
150.12 	annually extend and assess such portion of the tax levied as the net tax capacity of the 
150.13 	taxable property, not including moneys and credits, located wholly within the city in such 
150.14 	county bears to the total net tax capacity of the taxable property, not including moneys and 
150.15 	credits, within both cities. Any surplus resulting from the excess levy herein provided 
150.16 	for shall be transferred to a sinking fund after the principal and interest for which the tax 
150.17 	was levied and collected has been paid; provided, that the corporation may, on or before 
150.18 	October 15 in any year, by appropriate action, cause its secretary to certify to the county 
150.19 	auditor, or auditors, the amount on hand and available in its treasury from earnings, or 
150.20 	otherwise, including the amount in the sinking fund, which it will use to pay principal or 
150.21 	interest or both on each specified issue of its bonds, and the county auditor or auditors 
150.22 	shall reduce the levy for that year, herein provided for by that amount. The amount of 
150.23 	funds so certified shall be set aside by the corporation, and be used for no other purpose 
150.24 	than for the payment of the principal and interest of the bonds. All taxes hereunder shall 
150.25 	be collected and remitted to the corporation by the county treasurer or county treasurers, 
150.26 	in accordance with the provisions of law governing the collection of other taxes, and shall 
150.27 	be used solely for the payment of the bonds where due.

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

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

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

151.2 	Sec. 90. Minnesota Statutes 2012, section 477A.014, subdivision 1, is amended to read:
151.3 		Subdivision 1.Calculations and payments. (a) The commissioner of revenue shall 
151.4 	make all necessary calculations and make payments pursuant to sections 477A.013 and 
151.5 	477A.03 directly to the affected taxing authorities annually. In addition, the commissioner 
151.6 	shall notify the authorities of their aid amounts, as well as the computational factors used 
151.7 	in making the calculations for their authority, and those statewide total figures that are 
151.8 	pertinent, before August 1 of the year preceding the aid distribution year.
151.9 	(b) For the purposes of this subdivision, aid is determined for a city or town based 
151.10 	on its city or town status as of June 30 of the year preceding the aid distribution year. If 
151.11 	the effective date for a municipal incorporation, consolidation, annexation, detachment, 
151.12 	dissolution, or township organization is on or before June 30 of the year preceding 
151.13 	the aid distribution year, such change in boundaries or form of government shall be 
151.14 	recognized for aid determinations for the aid distribution year. If the effective date for a 
151.15 	municipal incorporation, consolidation, annexation, detachment, dissolution, or township 
151.16 	organization is after June 30 of the year preceding the aid distribution year, such change in 
151.17 	boundaries or form of government shall not be recognized for aid determinations until 
151.18 	the following year.
151.19 	(c) Changes in boundaries or form of government will only be recognized for the 
151.20 	purposes of this subdivision, to the extent that: (1) changes in market values are included 
151.21 	in market values reported by assessors to the commissioner, and changes in population,
151.22 	 and household size, and the road accidents factor are included in their respective 
151.23 	certifications to the commissioner as referenced in section 477A.011, or (2) an annexation 
151.24 	information report as provided in paragraph (d) is received by the commissioner on 
151.25 	or before July 15 of the aid calculation year. Revisions to estimates or data for use in 
151.26 	recognizing changes in boundaries or form of government are not effective for purposes 
151.27 	of this subdivision unless received by the commissioner on or before July 15 of the aid 
151.28 	calculation year. Clerical errors in the certification or use of estimates and data established 
151.29 	as of July 15 in the aid calculation year are subject to correction within the time periods 
151.30 	allowed under subdivision 3.
151.31 	(d) In the case of an annexation, an annexation information report may be completed 
151.32 	by the annexing jurisdiction and submitted to the commissioner for purposes of this 
151.33 	subdivision if the net tax capacity of annexed area for the assessment year preceding the 
151.34 	effective date of the annexation exceeds five percent of the city's net tax capacity for the 
151.35 	same year. The form and contents of the annexation information report shall be prescribed 
152.1 	by the commissioner. The commissioner shall change the net tax capacity, the population, 
152.2 	the population decline, the commercial industrial percentage, and the transformed 
152.3 	population for the annexing jurisdiction only if the annexation information report provides 
152.4 	data the commissioner determines to be reliable for all of these factors used to compute city 
152.5 	revenue need for the annexing jurisdiction. The commissioner shall adjust the pre-1940 
152.6 	housing percentage, the road accidents factor, and household size only if the entire area of 
152.7 	an existing city or town is annexed or consolidated and only if reliable data is available for 
152.8 	all of these factors used to compute city revenue need for the annexing jurisdiction.

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

152.10 	Sec. 91. Minnesota Statutes 2012, section 611.27, subdivision 13, is amended to read:
152.11 		Subd. 13.Public defense services; correctional facility inmates. All billings 
152.12 	for services rendered and ordered under subdivision 7 shall require the approval of the 
152.13 	chief district public defender before being forwarded on a monthly basis to the state 
152.14 	public defender. In cases where adequate representation cannot be provided by the district 
152.15 	public defender and where counsel has been appointed under a court order, the state 
152.16 	public defender shall forward to the commissioner of management and budget all billings 
152.17 	for services rendered under the court order. The commissioner shall pay for services 
152.18 	from county program aid retained by the commissioner of revenue for that purpose under 
152.19 	section 477A.0124, subdivision 1, clause (4), or477A.03, subdivision 2b, paragraph (a).
152.20 	The costs of appointed counsel and associated services in cases arising from new 
152.21 	criminal charges brought against indigent inmates who are incarcerated in a Minnesota 
152.22 	state correctional facility are the responsibility of the state Board of Public Defense. In 
152.23 	such cases the state public defender may follow the procedures outlined in this section for 
152.24 	obtaining court-ordered counsel.

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

152.26 	Sec. 92. Minnesota Statutes 2012, section 611.27, subdivision 15, is amended to read:
152.27 		Subd. 15.Costs of transcripts. In appeal cases and postconviction cases where 
152.28 	the appellate public defender's office does not have sufficient funds to pay for transcripts 
152.29 	and other necessary expenses because it has spent or committed all of the transcript 
152.30 	funds in its annual budget, the state public defender may forward to the commissioner 
152.31 	of management and budget all billings for transcripts and other necessary expenses. The 
152.32 	commissioner shall pay for these transcripts and other necessary expenses from county 
153.1 	program aid retained by the commissioner of revenue for that purpose under section 
153.2 	477A.0124, subdivision 1, clause (4), or477A.03, subdivision 2b, paragraph (a).

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

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

153.11 	Sec. 94.  REPEALER.
 153.12 	(a) Minnesota Statutes 2012, sections 273.1398, subdivision 4b; 290.01, subdivision 
153.13 	19e; 290.0674, subdivision 3; 290.191, subdivision 4; and 290.33, and Minnesota Rules, 
153.14 	part 8007.0200, are repealed.
153.15 	(b) Minnesota Statutes 2012, sections 16D.02, subdivisions 5 and 8; 16D.11, 
153.16 	subdivision 2; 270C.131; 270C.53; 270C.991, subdivision 4; 272.02, subdivisions 1, 1a, 
153.17 	43, 48, 51, 53, 67, 72, and 82; 272.027, subdivision 2; 272.031; 273.015, subdivision 1; 
153.18 	273.03, subdivision 3; 273.075; 273.1383; 273.1386; 273.80; 275.77; 279.32; 281.173, 
153.19 	subdivision 8; 281.174, subdivision 8; 281.328; 282.10; 282.23; 287.20, subdivision 
153.20 	4; 287.27, subdivision 2; 290.01, subdivisions 4b and 20e; 290C.02, subdivisions 5 
153.21 	and 9; 290C.06; 295.52, subdivision 7; 297A.666; 297A.71, subdivisions 4, 5, 7, 9, 
153.22 	10, 17, 18, 20, 32, and 41; 297F.08, subdivision 11; 297H.10, subdivision 2; 469.174, 
153.23 	subdivision 10c; 469.175, subdivision 2b; 469.176, subdivision 1i; 469.177, subdivision 
153.24 	10; 477A.0124, subdivisions 1 and 6; and 505.173, Minnesota Statutes 2013 Supplement, 
153.25 	section 273.1103, Laws 1993, chapter 375, article 9, section 47,  and Minnesota Rules, 
153.26 	parts 8002.0200, subpart 8; 8100.0800; 8130.7500, subpart 7; 8130.8900, subpart 3; and 
153.27 	8130.9500, subparts 1, 1a, 2, 3, 4, and 5, are repealed.
153.28 	(c) Minnesota Statutes 2012, section 469.1764, is repealed.
153.29 	(d) Minnesota Statutes 2012, sections 289A.56, subdivision 7; 297A.68, subdivision 
153.30 	38; 469.330; 469.331; 469.332; 469.333; 469.334; 469.335; 469.336; 469.337; 469.338; 
153.31 	469.339; 469.340, subdivisions 1, 2, 3, and 5; and 469.341, and Minnesota Statutes 2013 
153.32 	Supplement, section 469.340, subdivision 4, are repealed.
153.33 	(e) Minnesota Statutes 2012, section 290.06, subdivisions 30 and 31, are repealed.

154.1 	EFFECTIVE DATE. Paragraph (a) is effective for taxable years beginning after 
154.2 	December 31, 2013.
154.3 	Paragraph (b) is effective the day following final enactment.
154.4 	Paragraph (c) is effective the day following final enactment and any remaining 
154.5 	unexpended tax increments from a district subject to Minnesota Statutes, section 469.1764, 
154.6 	must be distributed as excess increments to the city, county, and school district under 
154.7 	Minnesota Statutes, section 469.176, subdivision 2, paragraph (c), clause (4), on or before 
154.8 	December 31, 2014.
154.9 	Paragraph (d) is effective the day following final enactment.
154.10 	Paragraph (e) is effective for taxable years beginning after December 31, 2013.

154.11 	ARTICLE 9
154.12 	DEPARTMENT OF REVENUE - TECHNICAL AND POLICY 
154.13 	PROPERTY TAX PROVISIONS

154.14 	Section 1. Minnesota Statutes 2012, section 270.87, is amended to read:
154.15 	270.87 CERTIFICATION TO COUNTY ASSESSORS.
154.16 	After making an annual determination of the equalized fair market value of the 
154.17 	operating property of each company in each of the respective counties, and in the taxing 
154.18 	districts therein, the commissioner shall certify the equalized fair market value to the 
154.19 	county assessor on or before June 30. The equalized fair market value of the operating 
154.20 	property of the railroad company in the county and the taxing districts therein is the value 
154.21 	on which taxes must be levied and collected in the same manner as on the commercial and 
154.22 	industrial property of such county and the taxing districts therein. If the commissioner 
154.23 	determines that the equalized fair market value certified on or before June 30 is in error, 
154.24 	the commissioner may issue a corrected certification on or before August 31. The 
154.25 	commissioner may correct errors that are merely clerical in nature until December 31.

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

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

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

155.4 	Sec. 3. Minnesota Statutes 2012, section 273.01, is amended to read:
155.5 	273.01 LISTING AND ASSESSMENT, TIME.
155.6 	All real property subject to taxation shall be listed and at least one-fifth of the parcels 
155.7 	listed shall be appraised each year with reference to their value on January 2 preceding the 
155.8 	assessment so that each parcel shall be reappraised at maximum intervals of five years. All 
155.9 	real property becoming taxable in any year shall be listed with reference to its value on 
155.10 	January 2 of that year. Except as provided in this section and section 274.01, subdivision 
155.11 	1, all real property assessments shall be completed two weeks prior to the date scheduled 
155.12 	for the local board of review or equalization. No changes in valuation or classification 
155.13 	which are intended to correct errors in judgment by the county assessor may be made by 
155.14 	the county assessor after the board of review or the county board of equalization has 
155.15 	adjourned; however, corrections of errors for real or personal property that are merely 
155.16 	clerical in nature or changes that extend homestead treatment to property are permitted 
155.17 	after adjournment until the tax extension date for that assessment year. Any changes made 
155.18 	by the assessor after adjournment must be fully documented and maintained in a file in the 
155.19 	assessor's office and shall be available for review by any person. A copy of any changes 
155.20 	made during this period shall be sent to the county board no later than December 31 of 
155.21 	the assessment year. In the event a valuation and classification is not placed on any real 
155.22 	property by the dates scheduled for the local board of review or equalization the valuation 
155.23 	and classification determined in the preceding assessment shall be continued in effect and 
155.24 	the provisions of section 273.13 shall, in such case, not be applicable, except with respect 
155.25 	to real estate which has been constructed since the previous assessment. Real property 
155.26 	containing iron ore, the fee to which is owned by the state of Minnesota, shall, if leased by 
155.27 	the state after January 2 in any year, be subject to assessment for that year on the value of 
155.28 	any iron ore removed under said lease prior to January 2 of the following year. Personal 
155.29 	property subject to taxation shall be listed and assessed annually with reference to its value 
155.30 	on January 2; and, if acquired on that day, shall be listed by or for the person acquiring it.

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

155.32 	Sec. 4. Minnesota Statutes 2013 Supplement, section 273.1325, subdivision 1, is 
155.33 	amended to read:
156.1 		Subdivision 1.Computation. The Department of Revenue must annually conduct 
156.2 	an assessment/sales ratio study of the taxable property in each county, city, town, and 
156.3 	school district in accordance with the procedures in subdivisions 2 and 3. Based upon the 
156.4 	results of this assessment/sales ratio study, the Department of Revenue must determine 
156.5 	an equalized net tax capacity for the various classes of taxable property in each taxing 
156.6 	district, the aggregate of which is designated as the adjusted net tax capacity. The adjusted 
156.7 	net tax capacity must be reduced by the captured tax capacity of tax increment districts 
156.8 	under section 469.177, subdivision 2, fiscal disparities contribution tax capacities under 
156.9 	sections 276A.06 and 473F.08, and the tax capacity of transmission lines required to be 
156.10 	subtracted from the local tax base under section 273.425; and increased by fiscal disparities 
156.11 	distribution tax capacities under sections 276A.06 and 473F.08. The adjusted net tax 
156.12 	capacities shall be determined using the net tax capacity percentages in effect for the 
156.13 	assessment year following the assessment year of the study. The Department of Revenue 
156.14 	must make whatever estimates are necessary to account for changes in the classification 
156.15 	system. The Department of Revenue may incur the expense necessary to make the 
156.16 	determinations. The commissioner of revenue may reimburse any county or governmental 
156.17 	official for requested services performed in ascertaining the adjusted net tax capacity. On 
156.18 	or before March 15 annually, the Department of Revenue shall file with the chair of the 
156.19 	Tax Committee of the house of representatives and the chair of the Committee on Taxes 
156.20 	and Tax laws of the senate a report of adjusted net tax capacities for school districts. 
156.21 	On or before June 15 30 annually, the Department of Revenue shall file its final report 
156.22 	on the adjusted net tax capacities for school districts established by the previous year's 
156.23 	assessments and the current year's net tax capacity percentages with the commissioner of 
156.24 	education and each county auditor for those school districts for which the auditor has the 
156.25 	responsibility for determination of local tax rates. A copy of the report so filed shall be 
156.26 	mailed to the clerk of each school district involved and to the county assessor or supervisor 
156.27 	of assessments of the county or counties in which each school district is located.

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

156.29 	Sec. 5. Minnesota Statutes 2012, section 273.33, subdivision 2, is amended to read:
156.30 		Subd. 2.Listing and assessment by commissioner. The personal property, 
156.31 	consisting of the pipeline system of mains, pipes, and equipment attached thereto, of 
156.32 	pipeline companies and others engaged in the operations or business of transporting natural 
156.33 	gas, gasoline, crude oil, or other petroleum products by pipelines, shall be listed with and 
156.34 	assessed by the commissioner of revenue and the values provided to the city or county 
156.35 	assessor by order. This subdivision shall not apply to the assessment of the products 
157.1 	transported through the pipelines nor to the lines of local commercial gas companies 
157.2 	engaged primarily in the business of distributing gas to consumers at retail nor to pipelines 
157.3 	used by the owner thereof to supply natural gas or other petroleum products exclusively 
157.4 	for such owner's own consumption and not for resale to others. If more than 85 percent 
157.5 	of the natural gas or other petroleum products actually transported over the pipeline is 
157.6 	used for the owner's own consumption and not for resale to others, then this subdivision 
157.7 	shall not apply; provided, however, that in that event, the pipeline shall be assessed in 
157.8 	proportion to the percentage of gas actually transported over such pipeline that is not used 
157.9 	for the owner's own consumption. On or before August 1, the commissioner shall certify 
157.10 	to the auditor of each county, the amount of such personal property assessment against 
157.11 	each company in each district in which such property is located. If the commissioner 
157.12 	determines that the amount of personal property assessment certified on or before August 
157.13 	1 is in error, the commissioner may issue a corrected certification on or before October 1.
157.14 	 The commissioner may correct errors that are merely clerical in nature until December 31.

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

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

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

157.31 	Sec. 7. Minnesota Statutes 2012, section 273.3711, is amended to read:
157.32 	273.3711 RECOMMENDED AND ORDERED VALUES.
158.1 	For purposes of sections 273.33, 273.35, 273.36, 273.37, 273.371, and 273.372, 
158.2 	all values not required to be listed and assessed by the commissioner of revenue are 
158.3 	recommended values. If the commissioner provides recommended values, the values must 
158.4 	be certified to the auditor of each county in which the property is located on or before 
158.5 	August 1. If the commissioner determines that the certified recommended value is in 
158.6 	error the commissioner may issue a corrected certification on or before October 1. The 
158.7 	commissioner may correct errors that are merely clerical in nature until December 31.

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

158.9 	Sec. 8. Minnesota Statutes 2012, section 274.01, subdivision 1, is amended to read:
158.10 		Subdivision 1.Ordinary board; meetings, deadlines, grievances. (a) The town 
158.11 	board of a town, or the council or other governing body of a city, is the board of appeal 
158.12 	and equalization except (1) in cities whose charters provide for a board of equalization or 
158.13 	(2) in any city or town that has transferred its local board of review power and duties to 
158.14 	the county board as provided in subdivision 3. The county assessor shall fix a day and 
158.15 	time when the board or the board of equalization shall meet in the assessment districts 
158.16 	of the county. Notwithstanding any law or city charter to the contrary, a city board of 
158.17 	equalization shall be referred to as a board of appeal and equalization. On or before 
158.18 	February 15 of each year the assessor shall give written notice of the time to the city or 
158.19 	town clerk. Notwithstanding the provisions of any charter to the contrary, the meetings 
158.20 	must be held between April 1 and May 31 each year. The clerk shall give published and 
158.21 	posted notice of the meeting at least ten days before the date of the meeting.
158.22 	The board shall meet either at a central location within the county or at the office of 
158.23 	the clerk to review the assessment and classification of property in the town or city. No 
158.24 	changes in valuation or classification which are intended to correct errors in judgment by 
158.25 	the county assessor may be made by the county assessor after the board has adjourned 
158.26 	in those cities or towns that hold a local board of review; however, corrections of errors 
158.27 	that are merely clerical in nature or changes that extend homestead treatment to property 
158.28 	are permitted after adjournment until the tax extension date for that assessment year. The 
158.29 	changes must be fully documented and maintained in the assessor's office and must be 
158.30 	available for review by any person. A copy of the changes made during this period in 
158.31 	those cities or towns that hold a local board of review must be sent to the county board no 
158.32 	later than December 31 of the assessment year.
158.33 	(b) The board shall determine whether the taxable property in the town or city has 
158.34 	been properly placed on the list and properly valued by the assessor. If real or personal 
158.35 	property has been omitted, the board shall place it on the list with its market value, and 
159.1 	correct the assessment so that each tract or lot of real property, and each article, parcel, 
159.2 	or class of personal property, is entered on the assessment list at its market value. No 
159.3 	assessment of the property of any person may be raised unless the person has been 
159.4 	duly notified of the intent of the board to do so. On application of any person feeling 
159.5 	aggrieved, the board shall review the assessment or classification, or both, and correct 
159.6 	it as appears just. The board may not make an individual market value adjustment or 
159.7 	classification change that would benefit the property if the owner or other person having 
159.8 	control over the property has refused the assessor access to inspect the property and the 
159.9 	interior of any buildings or structures as provided in section 273.20. A board member 
159.10 	shall not participate in any actions of the board which result in market value adjustments 
159.11 	or classification changes to property owned by the board member, the spouse, parent, 
159.12 	stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle, aunt, nephew, 
159.13 	or niece of a board member, or property in which a board member has a financial interest. 
159.14 	The relationship may be by blood or marriage.
159.15 	(c) A local board may reduce assessments upon petition of the taxpayer but the total 
159.16 	reductions must not reduce the aggregate assessment made by the county assessor by more 
159.17 	than one percent. If the total reductions would lower the aggregate assessments made by 
159.18 	the county assessor by more than one percent, none of the adjustments may be made. The 
159.19 	assessor shall correct any clerical errors or double assessments discovered by the board 
159.20 	without regard to the one percent limitation.
159.21 	(d) A local board does not have authority to grant an exemption or to order property 
159.22 	removed from the tax rolls.
159.23 	(e) A majority of the members may act at the meeting, and adjourn from day to day 
159.24 	until they finish hearing the cases presented. The assessor shall attend, with the assessment 
159.25 	books and papers, and take part in the proceedings, but must not vote. The county assessor, 
159.26 	or an assistant delegated by the county assessor shall attend the meetings. The board shall 
159.27 	list separately, on a form appended to the assessment book, all omitted property added 
159.28 	to the list by the board and all items of property increased or decreased, with the market 
159.29 	value of each item of property, added or changed by the board, placed opposite the item. 
159.30 	The county assessor shall enter all changes made by the board in the assessment book.
159.31 	(f) Except as provided in subdivision 3, if a person fails to appear in person, by 
159.32 	counsel, or by written communication before the board after being duly notified of the 
159.33 	board's intent to raise the assessment of the property, or if a person feeling aggrieved by an 
159.34 	assessment or classification fails to apply for a review of the assessment or classification, 
159.35 	the person may not appear before the county board of appeal and equalization for a review 
159.36 	of the assessment or classification. This paragraph does not apply if an assessment was 
160.1 	made after the local board meeting, as provided in section 273.01, or if the person can 
160.2 	establish not having received notice of market value at least five days before the local 
160.3 	board meeting.
160.4 	(g) The local board must complete its work and adjourn within 20 days from the 
160.5 	time of convening stated in the notice of the clerk, unless a longer period is approved by 
160.6 	the commissioner of revenue. No action taken after that date is valid. All complaints 
160.7 	about an assessment or classification made after the meeting of the board must be heard 
160.8 	and determined by the county board of equalization. A nonresident may, at any time, 
160.9 	before the meeting of the board file written objections to an assessment or classification 
160.10 	with the county assessor. The objections must be presented to the board at its meeting by 
160.11 	the county assessor for its consideration.

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

160.13 	Sec. 9. Minnesota Statutes 2012, section 274.014, subdivision 3, is amended to read:
160.14 		Subd. 3.Proof of compliance; transfer of duties. (a) Any city or town that 
160.15 	conducts local boards of appeal and equalization meetings must provide proof to the 
160.16 	county assessor by December 1, 2006 February 15, 2015, and each year thereafter, that it 
160.17 	is in compliance with the requirements of subdivision 2. Beginning in 2006 2015, this 
160.18 	notice must also verify that there was a quorum of voting members at each meeting of the 
160.19 	board of appeal and equalization in the current year. A city or town that does not comply 
160.20 	with these requirements is deemed to have transferred its board of appeal and equalization 
160.21 	powers to the county beginning with the following year's assessment and continuing 
160.22 	unless the powers are reinstated under paragraph (c).
160.23 	(b) The county shall notify the taxpayers when the board of appeal and equalization 
160.24 	for a city or town has been transferred to the county under this subdivision and, prior to 
160.25 	the meeting time of the county board of equalization, the county shall make available to 
160.26 	those taxpayers a procedure for a review of the assessments, including, but not limited to, 
160.27 	open book meetings. This alternate review process shall take place in April and May.
160.28 	(c) A local board whose powers are transferred to the county under this subdivision 
160.29 	may be reinstated by resolution of the governing body of the city or town and upon proof 
160.30 	of compliance with the requirements of subdivision 2. The resolution and proofs must be 
160.31 	provided to the county assessor by December 1 February 15 in order to be effective for 
160.32 	the following year's assessment.
160.33 	(d) A local board whose powers are transferred to the county under this subdivision 
160.34 	may continue to employ a local assessor and is not deemed to have transferred its powers 
160.35 	to make assessments.

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

161.3 	Sec. 10. Minnesota Statutes 2013 Supplement, section 290C.03, is amended to read:
161.4 	290C.03 ELIGIBILITY REQUIREMENTS.
161.5 	(a) Land may be enrolled in the sustainable forest incentive program under this 
161.6 	chapter if all of the following conditions are met:
161.7 	(1) the land consists of at least 20 contiguous acres and at least 50 percent of the 
161.8 	land must meet the definition of forest land in section 88.01, subdivision 7, during the 
161.9 	enrollment;
161.10 	(2) a forest management plan for the land must be prepared by an approved plan 
161.11 	writer and implemented during the period in which the land is enrolled;
161.12 	(3) timber harvesting and forest management guidelines must be used in conjunction 
161.13 	with any timber harvesting or forest management activities conducted on the land during 
161.14 	the period in which the land is enrolled;
161.15 	(4) the land must be enrolled for a minimum of eight years;
161.16 	(5) there are no delinquent property taxes on the land; and
161.17 	(6) claimants enrolling more than 1,920 acres in the sustainable forest incentive 
161.18 	program must allow year-round, nonmotorized access to fish and wildlife resources and 
161.19 	motorized access on established and maintained roads and trails, unless the road or trail is 
161.20 	temporarily closed for safety, natural resource, or road damage reasons on enrolled land 
161.21 	except within one-fourth mile of a permanent dwelling or during periods of high fire 
161.22 	hazard as determined by the commissioner of natural resources.; and
161.23 	(7) the land is not classified as class 2c managed forest land.
161.24 	(b) Claimants required to allow access under paragraph (a), clause (6), do not by 
161.25 	that action:
161.26 	(1) extend any assurance that the land is safe for any purpose;
161.27 	(2) confer upon the person the legal status of an invitee or licensee to whom a duty 
161.28 	of care is owed; or
161.29 	(3) assume responsibility for or incur liability for any injury to the person or property 
161.30 	caused by an act or omission of the person.

161.31 	EFFECTIVE DATE. This section is effective for certifications and applications 
161.32 	due in 2014 and thereafter.

162.1 	Sec. 11. Minnesota Statutes 2013 Supplement, section 423A.02, subdivision 3, is 
162.2 	amended to read:
162.3 		Subd. 3.Reallocation of amortization state aid. (a) Seventy percent of the 
162.4 	difference between $5,720,000 and the current year amortization aid distributed under 
162.5 	subdivision 1 that is not distributed for any reason to a municipality must be distributed 
162.6 	by the commissioner of revenue according to this paragraph. The commissioner shall 
162.7 	distribute 50 percent of the amounts derived under this paragraph to the Teachers 
162.8 	Retirement Association, ten percent to the Duluth Teachers Retirement Fund Association, 
162.9 	and 40 percent to the St. Paul Teachers Retirement Fund Association to fund the unfunded 
162.10 	actuarial accrued liabilities of the respective funds. These payments must be made on July 
162.11 	15 each fiscal year. If the St. Paul Teachers Retirement Fund Association or the Duluth 
162.12 	Teachers Retirement Fund Association becomes fully funded, the association's eligibility 
162.13 	for its portion of this aid ceases. Amounts remaining in the undistributed balance account 
162.14 	at the end of the biennium if aid eligibility ceases cancel to the general fund.
162.15 	(b) In order to receive amortization aid under paragraph (a), before June 30 annually 
162.16 	Independent School District No. 625, St. Paul, must make an additional contribution of 
162.17 	$800,000 each year to the St. Paul Teachers Retirement Fund Association.
162.18 	(c) Thirty percent of the difference between $5,720,000 and the current year 
162.19 	amortization aid under subdivision 1a 1 that is not distributed for any reason to a 
162.20 	municipality must be distributed under section 69.021, subdivision 7, paragraph (d), as 
162.21 	additional funding to support a minimum fire state aid amount for volunteer firefighter 
162.22 	relief associations.

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

162.24 	Sec. 12. Minnesota Statutes 2013 Supplement, section 477A.12, subdivision 1, is 
162.25 	amended to read:
162.26 		Subdivision 1.Types of land; payments.  The following amounts are annually 
162.27 	appropriated to the commissioner of natural resources from the general fund for transfer 
162.28 	to the commissioner of revenue. The commissioner of revenue shall pay the transferred 
162.29 	funds to counties as required by sections 477A.11 to 477A.14. The amounts, based on the 
162.30 	acreage as of July 1 of each year prior to the payment year, are:
162.31 	(1) $5.133 multiplied by the total number of acres of acquired natural resources land 
162.32 	or, at the county's option three-fourths of one percent of the appraised value of all acquired 
162.33 	natural resources land in the county, whichever is greater;
163.1 	(2) $5.133, multiplied by the total number of acres of transportation wetland or, at 
163.2 	the county's option, three-fourths of one percent of the appraised value of all transportation 
163.3 	wetland in the county, whichever is greater;
163.4 	(3) $5.133, multiplied by the total number of acres of wildlife management land, or, 
163.5 	at the county's option, three-fourths of one percent of the appraised value of all wildlife 
163.6 	management land in the county, whichever is greater;
163.7 	(4) 50 percent of the dollar amount as determined under clause (1), multiplied by 
163.8 	the number of acres of military refuge land in the county;
163.9 	(5) $1.50, multiplied by the number of acres of county-administered other natural 
163.10 	resources land in the county;
163.11 	(6) $5.133, multiplied by the total number of acres of land utilization project land 
163.12 	in the county;
163.13 	(7) $1.50, multiplied by the number of acres of commissioner-administered other 
163.14 	natural resources land in the county; and
163.15 	(8) without regard to acreage, $300,000 for local assessments under section 84A.55, 
163.16 	subdivision 9.

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

163.18 	Sec. 13. Minnesota Statutes 2013 Supplement, section 477A.14, subdivision 1, is 
163.19 	amended to read:
163.20 		Subdivision 1.General distribution. Except as provided in subdivisions 2 and 3, 
163.21 	40 percent of the total payment to the county shall be deposited in the county general 
163.22 	revenue fund to be used to provide property tax levy reduction. The remainder shall be 
163.23 	distributed by the county in the following priority:
163.24 	(a) (1) 64.2 cents, for each acre of county-administered other natural resources land 
163.25 	shall be deposited in a resource development fund to be created within the county treasury 
163.26 	for use in resource development, forest management, game and fish habitat improvement, 
163.27 	and recreational development and maintenance of county-administered other natural 
163.28 	resources land. Any county receiving less than $5,000 annually for the resource 
163.29 	development fund may elect to deposit that amount in the county general revenue fund;
163.30 	(b) from the funds remaining, (2) within 30 days of receipt of the payment to 
163.31 	the county, the county treasurer shall pay each organized township ten percent of the 
163.32 	amount received a township with land that qualifies for payment under section 477A.12, 
163.33 	subdivision 1, clauses (1), (2), and (5) to (7), ten percent of the payment the county 
163.34 	received for such land within that township. Payments for natural resources lands not 
163.35 	located in an organized township shall be deposited in the county general revenue fund. 
164.1 	Payments to counties and townships pursuant to this paragraph shall be used to provide 
164.2 	property tax levy reduction, except that of the payments for natural resources lands not 
164.3 	located in an organized township, the county may allocate the amount determined to be 
164.4 	necessary for maintenance of roads in unorganized townships. Provided that, if the total 
164.5 	payment to the county pursuant to section 477A.12 is not sufficient to fully fund the 
164.6 	distribution provided for in this clause, the amount available shall be distributed to each 
164.7 	township and the county general revenue fund on a pro rata basis; and
164.8 	(c) (3) any remaining funds shall be deposited in the county general revenue fund. 
164.9 	Provided that, if the distribution to the county general revenue fund exceeds $35,000, the 
164.10 	excess shall be used to provide property tax levy reduction.

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

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

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

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

164.26 	ARTICLE 10
164.27 	DEPARTMENT OF REVENUE - TECHNICAL AND POLICY INCOME AND 
164.28 	FRANCHISE, SALES AND USE, AND MISCELLANEOUS TAX PROVISIONS

164.29 	Section 1. Minnesota Statutes 2012, section 270C.34, subdivision 2, is amended to read:
164.30 		Subd. 2.Procedure. (a) A request for abatement of penalty under subdivision 1 or 
164.31 	section 289A.60, subdivision 4, or a request for abatement of interest or additional tax 
165.1 	charge, must be filed with the commissioner within 60 days of the date the notice was 
165.2 	mailed to the taxpayer's last known address, stating that a penalty has been imposed.
165.3 	(b) If the commissioner issues an order denying a request for abatement of penalty, 
165.4 	interest, or additional tax charge, the taxpayer may file an administrative appeal as 
165.5 	provided in section 270C.35 or appeal to Tax Court as provided in section 271.06.
165.6 	(c) If the commissioner does not issue an order on the abatement request within 
165.7 	60 days from the date the request is received, the taxpayer may appeal to Tax Court as 
165.8 	provided in section 271.06.

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

165.10 	Sec. 2. Minnesota Statutes 2012, section 270C.56, subdivision 3, is amended to read:
165.11 		Subd. 3.Procedure for assessment; claims for refunds. (a) The commissioner 
165.12 	may assess liability for the taxes described in subdivision 1 against a person liable 
165.13 	under this section. The assessment may be based upon information available to the 
165.14 	commissioner. It must be made within the prescribed period of limitations for assessing 
165.15 	the underlying tax, or within one year after the date of an order assessing underlying 
165.16 	tax, or within one year after the date of a final administrative or judicial determination, 
165.17 	whichever period expires later. An order assessing personal liability under this section is 
165.18 	reviewable under section 270C.35 and is appealable to Tax Court.
165.19 	(b) If the time for appealing the order has expired and a payment is made by or 
165.20 	collected from the person assessed on the order in excess of the amount lawfully due 
165.21 	from that person of any portion of the liability shown on the order, a claim for refund 
165.22 	may be made by that person within 120 days after any payment of the liability if the 
165.23 	payment is within 3-1/2 years after the date the order was issued. Claims for refund under 
165.24 	this paragraph are limited to the amount paid during the 120-day period. Any amounts 
165.25 	collected under paragraph (c) after a claim for refund is filed in order to satisfy the unpaid 
165.26 	balance of the assessment that is the subject of the claim shall be returned if the claim is 
165.27 	allowed. There is no claim for refund available under this paragraph if the assessment has 
165.28 	previously been the subject of an administrative or Tax Court appeal, or a denied claim 
165.29 	for refund. The taxpayer may contest denial of the refund as provided in the procedures 
165.30 	governing claims for refunds under section 289A.50, subdivision 7.
165.31 	(c) If a person has been assessed under this section for an amount for a given period 
165.32 	and the time for appeal has expired, regardless of whether an action contesting denial of a 
165.33 	claim for refund has been filed under paragraph (b), or there has been a final determination 
165.34 	that the person is liable, collection action is not stayed pursuant to section 270C.33, 
166.1 	subdivision 5, for that assessment or for subsequent assessments of additional amounts for 
166.2 	the same person for the same period and tax type.

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

166.4 	Sec. 3. Minnesota Statutes 2012, section 289A.18, subdivision 2, is amended to read:
166.5 		Subd. 2.Withholding returns, entertainer withholding returns, returns for 
166.6 	withholding from payments to out-of-state contractors, and withholding returns 
166.7 	from partnerships and S corporations. (a) Withholding returns for the first, second,
166.8 	and third quarters are due on or before the last day of the month following the close of 
166.9 	the quarterly period. However, if the return shows timely deposits in full payment of 
166.10 	the taxes due for that period, the returns for the first, second, and third quarters may be 
166.11 	filed on or before the tenth day of the second calendar month following the period. The 
166.12 	return for the fourth quarter must be filed on or before the 28th day of the second calendar 
166.13 	month following the period. An employer, in preparing a quarterly return, may take credit 
166.14 	for deposits previously made for that quarter. Entertainer withholding tax returns are 
166.15 	due within 30 days after each performance. Returns for withholding from payments to 
166.16 	out-of-state contractors are due within 30 days after the payment to the contractor. Returns 
166.17 	for withholding by partnerships are due on or before the due date specified for filing 
166.18 	partnership returns. Returns for withholding by S corporations are due on or before the 
166.19 	due date specified for filing corporate franchise tax returns.
166.20 	(b) A seasonal employer who provides notice in the form and manner prescribed 
166.21 	by the commissioner before the end of the calendar quarter is not required to file a 
166.22 	withholding tax return for periods of anticipated inactivity unless the employer pays wages 
166.23 	during the period from which tax is withheld. For purposes of this paragraph, a seasonal 
166.24 	employer is an employer that regularly, in the same one or more quarterly periods of each 
166.25 	calendar year, pays no wages to employees.

166.26 	EFFECTIVE DATE. (a) The amendments in paragraph (a) are effective for returns 
166.27 	due after January 1, 2016.
166.28 	(b) The amendment adding paragraph (b) is effective for wages paid after December 
166.29 	31, 2015.

166.30 	Sec. 4. Minnesota Statutes 2013 Supplement, section 290.191, subdivision 5, is 
166.31 	amended to read:
166.32 		Subd. 5.Determination of sales factor. For purposes of this section, the following 
166.33 	rules apply in determining the sales factor.
167.1 	(a) The sales factor includes all sales, gross earnings, or receipts received in the 
167.2 	ordinary course of the business, except that the following types of income are not included 
167.3 	in the sales factor:
167.4 	(1) interest;
167.5 	(2) dividends;
167.6 	(3) sales of capital assets as defined in section 1221 of the Internal Revenue Code;
167.7 	(4) sales of property used in the trade or business, except sales of leased property of 
167.8 	a type which is regularly sold as well as leased; and
167.9 	(5) sales of debt instruments as defined in section 1275(a)(1) of the Internal Revenue 
167.10 	Code or sales of stock.
167.11 	(b) Sales of tangible personal property are made within this state if the property is 
167.12 	received by a purchaser at a point within this state, and the taxpayer is taxable in this state,
167.13 	 regardless of the f.o.b. point, other conditions of the sale, or the ultimate destination 
167.14 	of the property.
167.15 	(c) Tangible personal property delivered to a common or contract carrier or foreign 
167.16 	vessel for delivery to a purchaser in another state or nation is a sale in that state or nation, 
167.17 	regardless of f.o.b. point or other conditions of the sale.
167.18 	(d) Notwithstanding paragraphs (b) and (c), when intoxicating liquor, wine, 
167.19 	fermented malt beverages, cigarettes, or tobacco products are sold to a purchaser who is 
167.20 	licensed by a state or political subdivision to resell this property only within the state of 
167.21 	ultimate destination, the sale is made in that state.
167.22 	(e) Sales made by or through a corporation that is qualified as a domestic 
167.23 	international sales corporation under section 992 of the Internal Revenue Code are not 
167.24 	considered to have been made within this state.
167.25 	(f) Sales, rents, royalties, and other income in connection with real property is 
167.26 	attributed to the state in which the property is located.
167.27 	(g) Receipts from the lease or rental of tangible personal property, including finance 
167.28 	leases and true leases, must be attributed to this state if the property is located in this 
167.29 	state and to other states if the property is not located in this state. Receipts from the 
167.30 	lease or rental of moving property including, but not limited to, motor vehicles, rolling 
167.31 	stock, aircraft, vessels, or mobile equipment are included in the numerator of the receipts 
167.32 	factor to the extent that the property is used in this state. The extent of the use of moving 
167.33 	property is determined as follows:
167.34 	(1) A motor vehicle is used wholly in the state in which it is registered.
167.35 	(2) The extent that rolling stock is used in this state is determined by multiplying 
167.36 	the receipts from the lease or rental of the rolling stock by a fraction, the numerator of 
168.1 	which is the miles traveled within this state by the leased or rented rolling stock and the 
168.2 	denominator of which is the total miles traveled by the leased or rented rolling stock.
168.3 	(3) The extent that an aircraft is used in this state is determined by multiplying the 
168.4 	receipts from the lease or rental of the aircraft by a fraction, the numerator of which is 
168.5 	the number of landings of the aircraft in this state and the denominator of which is the 
168.6 	total number of landings of the aircraft.
168.7 	(4) The extent that a vessel, mobile equipment, or other mobile property is used in 
168.8 	the state is determined by multiplying the receipts from the lease or rental of the property 
168.9 	by a fraction, the numerator of which is the number of days during the taxable year the 
168.10 	property was in this state and the denominator of which is the total days in the taxable year.
168.11 	(h) Royalties and other income received for the use of or for the privilege of using 
168.12 	intangible property, including patents, know-how, formulas, designs, processes, patterns, 
168.13 	copyrights, trade names, service names, franchises, licenses, contracts, customer lists, or 
168.14 	similar items, must be attributed to the state in which the property is used by the purchaser. 
168.15 	If the property is used in more than one state, the royalties or other income must be 
168.16 	apportioned to this state pro rata according to the portion of use in this state. If the portion 
168.17 	of use in this state cannot be determined, the royalties or other income must be excluded 
168.18 	from both the numerator and the denominator. Intangible property is used in this state if 
168.19 	the purchaser uses the intangible property or the rights therein in the regular course of its 
168.20 	business operations in this state, regardless of the location of the purchaser's customers.
168.21 	(i) Sales of intangible property are made within the state in which the property is 
168.22 	used by the purchaser. If the property is used in more than one state, the sales must be 
168.23 	apportioned to this state pro rata according to the portion of use in this state. If the 
168.24 	portion of use in this state cannot be determined, the sale must be excluded from both the 
168.25 	numerator and the denominator of the sales factor. Intangible property is used in this 
168.26 	state if the purchaser used the intangible property in the regular course of its business 
168.27 	operations in this state.
168.28 	(j) Receipts from the performance of services must be attributed to the state where 
168.29 	the services are received. For the purposes of this section, receipts from the performance 
168.30 	of services provided to a corporation, partnership, or trust may only be attributed to a state 
168.31 	where it has a fixed place of doing business. If the state where the services are received is 
168.32 	not readily determinable or is a state where the corporation, partnership, or trust receiving 
168.33 	the service does not have a fixed place of doing business, the services shall be deemed 
168.34 	to be received at the location of the office of the customer from which the services were 
168.35 	ordered in the regular course of the customer's trade or business. If the ordering office 
169.1 	cannot be determined, the services shall be deemed to be received at the office of the 
169.2 	customer to which the services are billed.
169.3 	(k) For the purposes of this subdivision and subdivision 6, paragraph (l), receipts 
169.4 	from management, distribution, or administrative services performed by a corporation 
169.5 	or trust for a fund of a corporation or trust regulated under United States Code, title 15, 
169.6 	sections 80a-1 through 80a-64, must be attributed to the state where the shareholder of 
169.7 	the fund resides. Under this paragraph, receipts for services attributed to shareholders are 
169.8 	determined on the basis of the ratio of: (1) the average of the outstanding shares in the 
169.9 	fund owned by shareholders residing within Minnesota at the beginning and end of each 
169.10 	year; and (2) the average of the total number of outstanding shares in the fund at the 
169.11 	beginning and end of each year. Residence of the shareholder, in the case of an individual, 
169.12 	is determined by the mailing address furnished by the shareholder to the fund. Residence 
169.13 	of the shareholder, when the shares are held by an insurance company as a depositor for 
169.14 	the insurance company policyholders, is the mailing address of the policyholders. In 
169.15 	the case of an insurance company holding the shares as a depositor for the insurance 
169.16 	company policyholders, if the mailing address of the policyholders cannot be determined 
169.17 	by the taxpayer, the receipts must be excluded from both the numerator and denominator. 
169.18 	Residence of other shareholders is the mailing address of the shareholder.

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

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

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

169.27 	Sec. 6. Minnesota Statutes 2013 Supplement, section 403.162, subdivision 5, is 
169.28 	amended to read:
169.29 		Subd. 5.Fees deposited. (a) The commissioner of revenue shall, based on 
169.30 	the relative proportion of the prepaid wireless E911 fee and the prepaid wireless 
169.31 	telecommunications access Minnesota fee imposed per retail transaction, divide the fees 
169.32 	collected in corresponding proportions. Within 30 days of receipt of the collected fees, 
169.33 	the commissioner shall:
170.1 	(1) deposit the proportion of the collected fees attributable to the prepaid wireless 
170.2 	E911 fee in the 911 emergency telecommunications service account in the special revenue 
170.3 	fund; and
170.4 	(2) deposit the proportion of collected fees attributable to the prepaid wireless 
170.5 	telecommunications access Minnesota fee in the telecommunications access fund 
170.6 	established in section 237.52, subdivision 1.
170.7 	(b) The department commissioner of revenue may deduct and retain deposit in a 
170.8 	special revenue account an amount, not to exceed two percent of collected fees,. Money 
170.9 	in the account is annually appropriated to the commissioner of revenue to reimburse its 
170.10 	direct costs of administering the collection and remittance of prepaid wireless E911 fees 
170.11 	and prepaid wireless telecommunications access Minnesota fees.

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

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

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

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

170.20 	Sec. 8.  REPEALER.
 170.21 	Minnesota Rules, parts 8130.8900, subpart 3; and 8130.9500, subparts 1, 1a, 2, 
170.22 	3, 4, and 5, are repealed.

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