1.1CONFERENCE COMMITTEE REPORT ON H. F. No. 3167
1.2A bill for an act
1.3relating to financing of state and local government; making changes to individual
1.4income, property, sales and use, excise, estate, mineral, tobacco, alcohol, special,
1.5local, and other taxes and tax-related provisions; providing for and increasing
1.6credits; modifying local government aids; modifying exclusions, exemptions,
1.7and levy deadlines; imposing a tax on solar energy production; modifying sales,
1.8use, and excise tax exemptions; changing sales, use, and excise tax remittances;
1.9modifying certain local sales and use taxes; allowing for temporary sales and
1.10use tax amnesty; modifying income tax credits and subtractions; clarifying
1.11estate tax provisions; providing for certain local development projects; changing
1.12license revocation procedures; modifying installment payments; modifying
1.13certain county levy authority; allocating additional tax reductions for border
1.14cities; removing obsolete, redundant, and unnecessary laws and administrative
1.15rules administered by the Department of Revenue; making various policy and
1.16technical changes; requiring a report; appropriating money;amending Minnesota
1.17Statutes 2012, sections 16D.02, subdivisions 3, 6; 16D.04, subdivisions 3,
1.184; 16D.07; 16D.11, subdivisions 1, 3, 7; 84A.20, subdivision 2; 84A.31,
1.19subdivision 2; 115B.49, subdivision 4; 116J.8737, by adding a subdivision;
1.20163.06, subdivision 1; 270.11, subdivision 1; 270.12, subdivisions 2, 4; 270.87;
1.21270A.03, subdivision 2; 270B.14, subdivision 3; 270C.085; 270C.34, subdivision
1.222; 270C.52, subdivision 2; 270C.56, subdivision 3; 270C.72, subdivisions 1, 3;
1.23272.01, subdivisions 1, 3; 272.02, subdivisions 10, 24; 272.0211, subdivisions
1.241, 2; 272.025, subdivision 1; 272.027, subdivision 1; 272.029, subdivisions
1.254a, 6; 272.03, subdivision 1; 273.01; 273.061, subdivision 6; 273.10; 273.11,
1.26subdivision 13; 273.112, subdivision 6a; 273.13, subdivision 34; 273.1384,
1.27subdivision 2; 273.18; 273.33, subdivision 2; 273.37, subdivision 2; 273.3711;
1.28274.01, subdivisions 1, 2; 274.014, subdivision 3; 275.025, subdivision 2;
1.29275.065, subdivision 1; 275.08, subdivisions 1a, 1d; 275.74, subdivision 2;
1.30275.75; 279.03; 279.16; 279.23; 279.25; 280.001; 280.03; 280.07; 280.11;
1.31281.03; 281.327; 282.01, subdivision 6; 282.04, subdivision 4; 282.261,
1.32subdivisions 2, 4, 5; 282.322; 287.30; 289A.02, subdivision 7, as amended;
1.33289A.18, subdivision 2; 289A.25, subdivision 1; 289A.60, subdivision 15;
1.34290.01, subdivisions 5, 19f, 29; 290.015, subdivision 1; 290.068, subdivision
1.351; 290.07, subdivisions 1, 2; 290.0922, subdivision 3; 290.095, subdivision 3;
1.36290.9728, subdivision 2; 296A.01, subdivision 16; 297A.67, subdivision 13a, by
1.37adding a subdivision; 297A.68, by adding a subdivision; 297A.70, subdivision
1.3810; 297A.71, by adding a subdivision; 297A.94; 297B.03; 297B.09; 297F.03,
1.39subdivision 2; 297F.09, subdivision 10; 297G.03, by adding a subdivision;
1.40297G.09, subdivision 9; 297I.05, subdivision 14; 298.75, subdivisions 1, 2;
1.41383D.41, by adding a subdivision; 383E.21, subdivisions 1, 2; 412.131; 469.171,
1.42subdivision 6; 469.176, subdivisions 1b, 3; 469.1763, subdivision 3; 469.177,
1.43subdivision 3; 473.665, subdivision 5; 477A.0124, subdivision 5; 477A.014,
2.1subdivision 1; 477A.03, by adding a subdivision; 611.27, subdivisions 13, 15;
2.2Minnesota Statutes 2013 Supplement, sections 116J.8737, subdivision 2, as
2.3amended; 116J.8738, subdivisions 2, 3, 4; 270B.01, subdivision 8; 270B.03,
2.4subdivision 1; 273.032; 273.1325, subdivisions 1, 2; 273.1398, subdivisions 3, 4;
2.5275.70, subdivision 5; 279.37, subdivision 2; 281.17; 289A.20, subdivision 4;
2.6290.01, subdivisions 19, as amended, 19b, as amended, 19d, 31, as amended;
2.7290.068, subdivisions 3, 6a; 290.091, subdivision 2, as amended; 290.0921,
2.8subdivision 3; 290.191, subdivision 5; 290A.03, subdivision 15, as amended;
2.9290C.03; 291.005, subdivision 1, as amended; 297A.61, subdivision 3, as
2.10amended; 297A.68, subdivisions 42, 44; 297A.70, subdivisions 2, 13, 14;
2.11297A.75, subdivisions 1, 2, 3; 297B.01, subdivision 16; 360.531, subdivision 2;
2.12403.162, subdivision 5; 423A.02, subdivision 3; 423A.022, subdivisions 2, 3;
2.13465.04; 469.169, by adding a subdivision; 469.1763, subdivision 2; 477A.013,
2.14subdivision 8; 477A.03, subdivision 2a; 477A.12, subdivision 1; 477A.14,
2.15subdivision 1; Laws 1980, chapter 511, sections 1, subdivision 2, as amended;
2.162, as amended; Laws 2005, First Special Session chapter 3, article 5, section
2.1738, subdivision 4; Laws 2006, chapter 259, article 3, sections 10, subdivisions
2.183, 4, 5; 11, subdivisions 3, 4, 5; Laws 2008, chapter 366, article 10, section 15;
2.19Laws 2013, chapter 143, article 8, sections 3; 37; article 9, section 23; article
2.2011, section 10; Laws 2014, chapter 150, article 3, section 4; proposing coding
2.21for new law in Minnesota Statutes, chapters 69; 116J; 168A; 272; 290; 383A;
2.22477A; repealing Minnesota Statutes 2012, sections 16D.02, subdivisions 5, 8;
2.2316D.11, subdivision 2; 270C.131; 270C.53; 270C.991, subdivision 4; 272.02,
2.24subdivisions 1, 1a, 43, 48, 51, 53, 67, 72, 82; 272.027, subdivision 2; 272.031;
2.25273.015, subdivision 1; 273.03, subdivision 3; 273.075; 273.13, subdivision
2.2621a; 273.1383; 273.1386; 273.1398, subdivision 4b; 273.80; 275.77; 279.32;
2.27281.173, subdivision 8; 281.174, subdivision 8; 281.328; 282.10; 282.23;
2.28287.20, subdivision 4; 287.27, subdivision 2; 289A.56, subdivision 7; 290.01,
2.29subdivisions 4b, 19e, 20e; 290.06, subdivisions 30, 31; 290.0674, subdivision 3;
2.30290.191, subdivision 4; 290.33; 290C.02, subdivisions 5, 9; 290C.06; 295.52,
2.31subdivision 7; 297A.666; 297A.68, subdivision 38; 297A.71, subdivisions 4,
2.325, 7, 9, 10, 17, 18, 20, 32, 41; 297F.08, subdivision 11; 297H.10, subdivision
2.332; 469.174, subdivision 10c; 469.175, subdivision 2b; 469.176, subdivision
2.341i; 469.1764; 469.177, subdivision 10; 469.330; 469.331; 469.332; 469.333;
2.35469.334; 469.335; 469.336; 469.337; 469.338; 469.339; 469.340, subdivisions
2.361, 2, 3, 5; 469.341; 477A.0124, subdivisions 1, 6; 505.173; Minnesota Statutes
2.372013 Supplement, sections 273.1103; 469.340, subdivision 4; 477A.085; Laws
2.381993, chapter 375, article 9, section 47; Laws 2014, chapter 150, article 1,
2.39section 17; Minnesota Rules, parts 8002.0200, subpart 8; 8007.0200; 8100.0800;
2.408130.7500, subpart 7; 8130.8900, subpart 3; 8130.9500, subparts 1, 1a, 2, 3, 4, 5.
2.41May 12, 2014
2.42The Honorable Paul Thissen
2.43Speaker of the House of Representatives
2.44The Honorable Sandra L. Pappas
2.45President of the Senate
2.46We, the undersigned conferees for H. F. No. 3167 report that we have agreed upon
2.47the items in dispute and recommend as follows:
2.48That the Senate recede from its amendments and that H. F. No. 3167 be further
2.49amended as follows:
2.50Delete everything after the enacting clause and insert:
3.1"
ARTICLE 1
3.2
PROPERTY TAX AIDS AND CREDITS
3.3 Section 1.
new text begin [69.022] VOLUNTEER RETENTION STIPEND AID PILOT.new text end
3.4
new text begin Subdivision 1.new text end new text begin Definitions.new text end new text begin (a) For purposes of this section, the following terms new text end
3.5
new text begin have the meanings given them.new text end
3.6
new text begin (b) "Commissioner," unless otherwise specified, means the commissioner of public new text end
3.7
new text begin safety.new text end
3.8
new text begin (c) "Emergency medical services provider" means a licensee as defined under new text end
3.9
new text begin section 144E.001, subdivision 8.new text end
3.10
new text begin (d) "Independent nonprofit firefighting corporation" has the same meaning as used in new text end
3.11
new text begin chapter 424A.new text end
3.12
new text begin (e) "Municipality" has the meaning given in section 69.011, but only if the new text end
3.13
new text begin municipality uses one or more qualified volunteers to provide service.new text end
3.14
new text begin (f) "Qualified entity" means an emergency medical services provider, independent new text end
3.15
new text begin nonprofit firefighting corporation, or municipality.new text end
3.16
new text begin (g) "Qualified volunteer" means one of the following types of volunteers who has new text end
3.17
new text begin provided service, for the entire prior calendar year, to one or more qualified entities:new text end
3.18
new text begin (1) a volunteer firefighter as defined in section 299N.03, subdivision 7;new text end
3.19
new text begin (2) a volunteer ambulance attendant as defined in section 144E.001, subdivision 15; ornew text end
3.20
new text begin (3) an emergency medical responder as defined in section 144E.001, subdivision 6, new text end
3.21
new text begin who provides emergency medical services as a volunteer.new text end
3.22
new text begin (h) "Pilot area" means the following groups of counties:new text end
3.23
new text begin (1) southern Minnesota, consisting of the counties of Faribault, Fillmore, Freeborn, new text end
3.24
new text begin Houston, and Watonwan;new text end
3.25
new text begin (2) west central Minnesota, consisting of the counties of Chippewa, Kandiyohi, new text end
3.26
new text begin Redwood, and Renville;new text end
3.27
new text begin (3) central Minnesota, consisting of the counties of Morrison and Todd; andnew text end
3.28
new text begin (4) north central Minnesota, consisting of the counties of Beltrami, Clearwater, new text end
3.29
new text begin and Mahnomen.new text end
3.30
new text begin Subd. 2.new text end new text begin Certification.new text end new text begin By June 1 of the calendar year following the year in new text end
3.31
new text begin which the qualified volunteer provided service, the commissioner shall certify to the new text end
3.32
new text begin commissioner of revenue each qualified volunteer's name and the qualified entity for which new text end
3.33
new text begin the qualified volunteer provided service, but the commissioner must remove duplicate new text end
3.34
new text begin listings of qualified volunteers who provided service to more than one qualified entity so new text end
3.35
new text begin that each qualified volunteer is listed only once. The commissioner shall also certify to the new text end
3.36
new text begin commissioner of revenue the total amount of aid to be paid to each qualified entity under new text end
4.1
new text begin subdivision 3. For qualified entities that are not municipalities, the commissioner must new text end
4.2
new text begin indicate the municipality to which the aid is to be paid, as designated by the qualified entity.new text end
4.3
new text begin Subd. 3.new text end new text begin Aid payment and calculation.new text end new text begin The commissioner of revenue shall pay aid new text end
4.4
new text begin to qualified entities located in the pilot area to provide funds for the qualified entities to new text end
4.5
new text begin pay annual volunteer retention stipends to qualified volunteers who provide services to new text end
4.6
new text begin the qualified entities. A qualified entity is located in the pilot area if it is a municipality new text end
4.7
new text begin located in whole or in part in the pilot area, or if it is an emergency medical services new text end
4.8
new text begin provider or independent nonprofit firefighting corporation with its main office located in new text end
4.9
new text begin the pilot area. The amount of the aid equals $500 multiplied by the number of qualified new text end
4.10
new text begin volunteers. For purposes of calculating this aid, each individual providing volunteer new text end
4.11
new text begin service, regardless of the different types of service provided, is one qualified volunteer. new text end
4.12
new text begin The commissioner of revenue shall pay the aid to qualified entities by July 15 of the new text end
4.13
new text begin calendar year following the year in which the qualified volunteer provided service. If a new text end
4.14
new text begin qualified entity is not a municipality, the commissioner shall pay the aid to the treasurer of new text end
4.15
new text begin the municipality designated by the qualified entity. The treasurer of the municipality shall, new text end
4.16
new text begin within 30 days of receipt of the aid, transmit the aid to the qualified entity.new text end
4.17
new text begin Subd. 4.new text end new text begin Application.new text end new text begin Each year each qualified entity in the pilot area may apply to new text end
4.18
new text begin the commissioner for aid under this section. The application must be made at the time and new text end
4.19
new text begin in the form prescribed by the commissioner and must provide sufficient information to new text end
4.20
new text begin permit the commissioner to determine the applicant's entitlement to aid under this section.new text end
4.21
new text begin Subd. 5.new text end new text begin Payment of stipends.new text end new text begin A qualified entity receiving state aid under this new text end
4.22
new text begin section must pay the aid as retention stipends of $500 to qualified volunteers no later than new text end
4.23
new text begin September 15 of the year in which the aid was received.new text end
4.24
new text begin Subd. 6.new text end new text begin Report.new text end new text begin No later than January 15, 2018, the commissioner must report to new text end
4.25
new text begin the chairs and ranking minority members of the legislative committees having jurisdiction new text end
4.26
new text begin over public safety and taxes in the senate and the house of representatives, in compliance new text end
4.27
new text begin with sections 3.195 and 3.197, on aid paid under this section. The report must include:new text end
4.28
new text begin (1) for each county in the pilot area, a listing of the qualified entities that received new text end
4.29
new text begin aid in each of the three years of the pilot;new text end
4.30
new text begin (2) the amount of aid paid to each qualified entity that received aid in each of the new text end
4.31
new text begin three years of the pilot; andnew text end
4.32
new text begin (3) for each qualified entity that received aid, the number of qualified volunteers new text end
4.33
new text begin who were paid stipends in each of the three years of the pilot, and the number of qualified new text end
4.34
new text begin volunteers in the year preceding the pilot.new text end
4.35
new text begin The report must also provide information on the number of qualified volunteers new text end
4.36
new text begin providing service to qualified entities in comparison counties in each of the three years of new text end
5.1
new text begin the pilot and in the year preceding the pilot, and must summarize changes in the number new text end
5.2
new text begin of qualified volunteers during the year preceding the pilot and during the three years of new text end
5.3
new text begin the pilot both within the pilot area and in the comparison counties. For purposes of this new text end
5.4
new text begin subdivision, "comparison counties" means counties designated by the commissioner to new text end
5.5
new text begin include at least half of the counties that border each group of counties in the pilot area, new text end
5.6
new text begin as specified in subdivision 1. Qualified entities in comparison counties must provide new text end
5.7
new text begin information to the commissioner necessary to the report in this subdivision in the form new text end
5.8
new text begin and manner required by the commissioner.new text end
5.9
new text begin Subd. 7.new text end new text begin Appropriation.new text end new text begin An amount sufficient to pay the state aid under this section new text end
5.10
new text begin is appropriated from the general fund to the commissioner of revenue. new text end
5.11
new text begin Subd. 8.new text end new text begin Sunset.new text end new text begin This section expires for aid payable after calendar year 2017, new text end
5.12
new text begin except that the reporting requirement in subdivision 6 remains in effect through 2018.new text end
5.13
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment new text end
5.14
new text begin and applies for volunteer service provided beginning in calendar years 2014, 2015, and new text end
5.15
new text begin 2016, and for aid payable in calendar years 2015, 2016, and 2017.new text end
5.16 Sec. 2. Minnesota Statutes 2012, section 273.1384, subdivision 2, is amended to read:
5.17 Subd. 2.
Agricultural homestead market value credit. Property classified as
5.18agricultural homestead under section
273.13, subdivision 23, paragraph (a), is eligible for
5.19an agricultural credit. The credit is computed using the property's agricultural credit market
5.20value, defined for this purpose as the property's market value excluding the market value of
5.21the house, garage, and immediately surrounding one acre of land. The credit is equal to 0.3
5.22percent of the first $115,000 of the property's agricultural credit market value minus .05
new text begin plus new text end
5.23
new text begin 0.1new text end percent of the property's agricultural credit market value in excess of $115,000, subject
5.24to a maximum reduction
new text begin creditnew text end of $115
new text begin $490new text end . In the case of property that is classified
5.25as part homestead and part nonhomestead solely because not all the owners occupy or
5.26farm the property, not all the owners have qualifying relatives occupying or farming the
5.27property, or solely because not all the spouses of owners occupy the property, the credit
5.28must be initially computed as if that nonhomestead agricultural land was also classified as
5.29agricultural homestead and then prorated to the owner-occupant's percentage of ownership.
5.30
new text begin EFFECTIVE DATE.new text end new text begin This section is effective beginning with taxes payable in 2015.new text end
5.31 Sec. 3. Minnesota Statutes 2013 Supplement, section 273.1398, subdivision 4, is
5.32amended to read:
6.1 Subd. 4.
Disparity reduction credit. (a) Beginning with taxes payable in 1989,
6.2 Class 4a and class 3a property qualifies for a disparity reduction credit if: (1) the property
6.3is located in a border city that has
new text begin is eligible to havenew text end an enterprise zone, as defined in
6.4section
469.166; (2) the property is located in a city with a population greater than 2,500
6.5and less than 35,000 according to the 1980 decennial census; (3) the city is adjacent to a
6.6city in another state or immediately adjacent to a city adjacent to a city in another state;
6.7and (4) the adjacent city in the other state has a population of greater than 5,000 and less
6.8than 75,000 according to the 1980 decennial census.
6.9 (b) The credit is an amount sufficient to reduce (i) the taxes levied on class 4a
6.10property to 1.9
new text begin 1.6new text end percent of the property's taxable market value and (ii) the tax on class
6.113a property to 1.9
new text begin 1.6new text end percent of taxable market value.
6.12 (c) The county auditor shall annually certify the costs of the credits to the
6.13Department of Revenue. The department shall reimburse local governments for the
6.14property taxes forgone as the result of the credits in proportion to their total levies.
6.15
new text begin EFFECTIVE DATE.new text end new text begin This section is effective beginning with taxes payable in 2015.new text end
6.16 Sec. 4. Minnesota Statutes 2013 Supplement, section 423A.022, subdivision 2, is
6.17amended to read:
6.18 Subd. 2.
Allocation. new text begin (a) new text end Of the total amount appropriated as supplemental state aid:
6.19 (1) 58.065
new text begin 58.064new text end percent must be paid to the executive director of the Public
6.20Employees Retirement Association for deposit in the public employees police and fire
6.21retirement fund established by section
353.65, subdivision 1;
6.22 (2) 35.484 percent must be paid to municipalities other than municipalities solely
6.23employing firefighters with retirement coverage provided by the public employees police
6.24and fire retirement plan which qualified to receive fire state aid in that calendar year,
6.25allocated in proportion to the most recent amount of fire state aid paid under section
6.2669.021, subdivision 7
, for the municipality bears to the most recent total fire state aid
6.27for all municipalities other than the municipalities solely employing firefighters with
6.28retirement coverage provided by the public employees police and fire retirement plan
6.29paid under section
69.021, subdivision 7, with the allocated amount for fire departments
6.30participating in the voluntary statewide lump-sum volunteer firefighter retirement plan
6.31paid to the executive director of the Public Employees Retirement Association for deposit
6.32in the fund established by section
353G.02, subdivision 3, and credited to the respective
6.33account and with the balance paid to the treasurer of each municipality for transmittal
6.34within 30 days of receipt to the treasurer of the applicable volunteer firefighter relief
6.35association for deposit in its special fund; and
7.1 (3) 6.452 percent must be paid to the executive director of the Minnesota State
7.2Retirement System for deposit in the state patrol retirement fund.
7.3
new text begin (b) For purposes of this section, the term "municipalities" includes independent new text end
7.4
new text begin nonprofit firefighting corporations that participate in the voluntary statewide lump-sum new text end
7.5
new text begin volunteer firefighter retirement plan under chapter 353G or with subsidiary volunteer new text end
7.6
new text begin firefighter relief associations operating under chapter 424A.new text end
7.7 Sec. 5. Minnesota Statutes 2013 Supplement, section 477A.013, subdivision 8, is
7.8amended to read:
7.9 Subd. 8.
City formula aid. (a) For aids payable in 2014 only, the formula aid for a
7.10city is equal to the sum of (1) its 2013 certified aid, and (2) the product of (i) the difference
7.11between its unmet need and its 2013 certified aid, and (ii) the aid gap percentage.
7.12 (b) For aids payable in 2015 and thereafter, the formula aid for a city is equal to the
7.13sum of (1) its formula aid in the previous year and (2) the product of (i) the difference
7.14between its unmet need and its certified
new text begin formulanew text end aid in the previous year under subdivision
7.159, and (ii) the aid gap percentage.
7.16
new text begin (c) For aids payable in 2015 and thereafter, if a city's certified aid from the previous new text end
7.17
new text begin year is greater than the sum of its unmet need plus its aid adjustment under subdivision 13, new text end
7.18
new text begin its formula aid is adjusted to equal its unmet need.new text end
7.19
new text begin (d) new text end No city may have a formula aid amount less than zero. The aid gap percentage
7.20must be the same for all cities
new text begin subject to paragraph (b)new text end .
7.21
new text begin (e) new text end The applicable aid gap percentage must be calculated by the Department of
7.22Revenue so that the total of the aid under subdivision 9 equals the total amount available
7.23for aid under section
477A.03. Data used in calculating aids to cities under sections
7.24477A.011
to
477A.013 shall be the most recently available data as of January 1 in the
7.25year in which the aid is calculated.
7.26
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for aids payable in calendar year new text end
7.27
new text begin 2015 and thereafter.new text end
7.28 Sec. 6. Minnesota Statutes 2013 Supplement, section 477A.03, subdivision 2a, is
7.29amended to read:
7.30 Subd. 2a.
Cities. For aids payable in 2014, the total aid paid under section
7.31477A.013, subdivision 9
, is $507,598,012. The total aid paid under section
477A.013,
7.32subdivision 9
, is $509,098,012
new text begin $516,898,012new text end for aids payable in 2015. For aids payable
7.33in 2016 and thereafter, the total aid paid under section
477A.013, subdivision 9, is
7.34$511,598,012
new text begin $519,398,012new text end .
8.1
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for aids payable in calendar year new text end
8.2
new text begin 2015 and thereafter.new text end
8.3 Sec. 7. Minnesota Statutes 2013 Supplement, section 477A.12, subdivision 1, is
8.4amended to read:
8.5 Subdivision 1.
Types of land; payments. The following amounts are annually
8.6appropriated to the commissioner of natural resources from the general fund for transfer
8.7to the commissioner of revenue. The commissioner of revenue shall pay the transferred
8.8funds to counties as required by sections
477A.11 to
477A.14. The amounts, based on the
8.9acreage as of July 1 of each year prior to the payment year, are:
8.10(1) $5.133 multiplied by the total number of acres of acquired natural resources land
8.11or, at the county's option three-fourths of one percent of the appraised value of all acquired
8.12natural resources land in the county, whichever is greater;
8.13(2) $5.133, multiplied by the total number of acres of transportation wetland or, at
8.14the county's option, three-fourths of one percent of the appraised value of all transportation
8.15wetland in the county, whichever is greater;
8.16(3)
new text begin $5.133, multiplied by the total number of acres of wildlife management land, or, new text end
8.17
new text begin at the county's option, new text end three-fourths of one percent of the appraised value of all wildlife
8.18management land in the county
new text begin , whichever is greaternew text end ;
8.19(4) 50 percent of the dollar amount as determined under clause (1), multiplied by
8.20the number of acres of military refuge land in the county;
8.21(5) $1.50, multiplied by the number of acres of county-administered other natural
8.22resources land in the county;
8.23(6) $5.133, multiplied by the total number of acres of land utilization project land
8.24in the county;
8.25(7) $1.50, multiplied by the number of acres of commissioner-administered other
8.26natural resources land in the county; and
8.27 (8) without regard to acreage,
new text begin and notwithstanding the rules adopted under section new text end
8.28
new text begin 84A.55, new text end $300,000 for local assessments under section
84A.55, subdivision 9new text begin , that shall be new text end
8.29
new text begin divided and distributed to the counties containing state-owned lands within a conservation new text end
8.30
new text begin area in proportion to each county's percentage of the total annual ditch assessments.new text end
8.31
new text begin The commissioner of natural resources shall certify the number of acres and appraised new text end
8.32
new text begin values for wildlife management lands under clause (3) for calendar year 2013 to the new text end
8.33
new text begin commissioner of revenue by June 15, 2014. The commissioner of revenue shall make the new text end
8.34
new text begin payment for any positive difference in the 2013 payment under clause (3) by June 30, 2014new text end .
9.1
new text begin EFFECTIVE DATE.new text end new text begin The amendments to clause (3) are effective retroactively new text end
9.2
new text begin for payments made in calendar year 2013 and later. The amendments to clause (8) are new text end
9.3
new text begin effective for assessments payable in calendar year 2014 and later.new text end
9.4 Sec. 8. Minnesota Statutes 2013 Supplement, section 477A.12, subdivision 2, is
9.5amended to read:
9.6 Subd. 2.
Procedure. new text begin (a) new text end Each county auditor shall certify to the Department of
9.7Natural Resources during July of each year prior to the payment year the number of acres
9.8of county-administered other natural resources land within the county. The Department of
9.9Natural resources may, in addition to the certification of acreage, require descriptive lists
9.10of land so certified. The commissioner of natural resources shall determine and certify to
9.11the commissioner of revenue by March 1 of the payment year:
9.12(1) the number of acres and most recent appraised value of acquired natural
9.13resources land, wildlife management land, and military refuge land within each county;
9.14(2) the number of acres of commissioner-administered natural resources land within
9.15each county;
9.16(3) the number of acres of county-administered other natural resources land within
9.17each county, based on the reports filed by each county auditor with the commissioner
9.18of natural resources; and
9.19(4) the number of acres of land utilization project land within each county.
9.20
new text begin (b) new text end The commissioner of transportation shall determine and certify to the
9.21commissioner of revenue by March 1 of the payment year the number of acres of
9.22transportation wetland and the appraised value of the land, but only if it exceeds 500
9.23acres in a county.
9.24
new text begin (c) Each auditor of a county that contains state-owned lands within a conservation new text end
9.25
new text begin area shall determine and certify to the commissioner of natural resources by May 31 of new text end
9.26
new text begin the payment year, the county's ditch assessments for state-owned lands subject to section new text end
9.27
new text begin 84A.55, subdivision 9. A joint certification for two or more counties may be submitted to new text end
9.28
new text begin the commissioner of natural resources through the Consolidated Conservation Counties new text end
9.29
new text begin Joint Powers Board. The commissioner of natural resources shall certify the ditch new text end
9.30
new text begin assessments to the commissioner of revenue by June 15 of the payment year. The new text end
9.31
new text begin commissioner of natural resources shall certify the ditch assessments under this paragraph new text end
9.32
new text begin for payment year 2013 by June 15, 2014. The commissioner of revenue shall make the new text end
9.33
new text begin payment for 2013 by June 30, 2014.new text end
9.34
new text begin (d) new text end The commissioner of revenue shall determine the distributions provided for in this
9.35section using
new text begin : (1)new text end the number of acres and appraised values certified by the commissioner
10.1of natural resources and the commissioner of transportation by March 1 of the payment
10.2year
new text begin ; and (2) ditch assessments under paragraph (c), by July 15 of the payment yearnew text end .
10.3
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for assessments payable in calendar new text end
10.4
new text begin year 2014 and later.new text end
10.5 Sec. 9. Minnesota Statutes 2013 Supplement, section 477A.14, subdivision 1, is
10.6amended to read:
10.7 Subdivision 1.
General distribution. Except as provided in subdivisions 2 and 3,
10.840 percent of the total payment to the county shall be deposited in the county general
10.9revenue fund to be used to provide property tax levy reduction. The remainder shall be
10.10distributed by the county in the following priority:
10.11(a)
new text begin (1)new text end 64.2 cents, for each acre of county-administered other natural resources land
10.12shall be deposited in a resource development fund to be created within the county treasury
10.13for use in resource development, forest management, game and fish habitat improvement,
10.14and recreational development and maintenance of county-administered other natural
10.15resources land. Any county receiving less than $5,000 annually for the resource
10.16development fund may elect to deposit that amount in the county general revenue fund;
10.17(b) from the funds remaining,
new text begin (2)new text end within 30 days of receipt of the payment to
10.18the county, the county treasurer shall pay each organized township ten percent of the
10.19amount received
new text begin a township with land that qualifies for paymentnew text end under section
477A.12,
10.20subdivision 1
, clauses (1), (2), and (5) to (7)
new text begin , ten percent of the payment the county new text end
10.21
new text begin received for such land within that townshipnew text end . Payments for natural resources lands not
10.22located in an organized township shall be deposited in the county general revenue fund.
10.23Payments to counties and townships pursuant to this paragraph shall be used to provide
10.24property tax levy reduction, except that of the payments for natural resources lands not
10.25located in an organized township, the county may allocate the amount determined to be
10.26necessary for maintenance of roads in unorganized townships. Provided that, if the total
10.27payment to the county pursuant to section
is not sufficient to fully fund the
10.28distribution provided for in this clause, the amount available shall be distributed to each
10.29township and the county general revenue fund on a pro rata basis; and
10.30(c)
new text begin (3)new text end any remaining funds shall be deposited in the county general revenue fund.
10.31Provided that, if the distribution to the county general revenue fund exceeds $35,000, the
10.32excess shall be used to provide property tax levy reduction.
10.33
new text begin EFFECTIVE DATE.new text end new text begin This section is effective retroactively for payments made in new text end
10.34
new text begin calendar year 2013 and thereafter.new text end
11.1 Sec. 10.
new text begin [477A.18] PRODUCTION PROPERTY TRANSITION AID.new text end
11.2
new text begin Subdivision 1.new text end new text begin Definitions.new text end new text begin (a) When used in this section, the following terms have new text end
11.3
new text begin the meanings indicated in this subdivision.new text end
11.4
new text begin (b) "Local unit" means a home rule charter or statutory city, or a town.new text end
11.5
new text begin (c) "Net tax capacity differential" means the positive difference, if any, by which the new text end
11.6
new text begin local unit's net tax capacity was reduced from assessment year 2014 to assessment year new text end
11.7
new text begin 2015 due to the change in the definition of real property in section 272.03, subdivision new text end
11.8
new text begin 1, enacted by article 2, section 9. For purposes of determining the net tax capacity new text end
11.9
new text begin differential, any property in a job opportunity building zone under section 469.314 may new text end
11.10
new text begin not be included when calculating a local unit's net tax capacity.new text end
11.11
new text begin Subd. 2.new text end new text begin Aid eligibility; payment.new text end new text begin (a) If the net tax capacity differential of the local new text end
11.12
new text begin unit exceeds five percent of its 2015 net tax capacity, the local unit is eligible for transition new text end
11.13
new text begin aid computed under paragraphs (b) to (f).new text end
11.14
new text begin (b) For aids payable in 2016, transition aid under this section for an eligible local new text end
11.15
new text begin unit equals (1) the net tax capacity differential, times (2) the jurisdiction's tax rate for new text end
11.16
new text begin taxes payable in 2015.new text end
11.17
new text begin (c) For aids payable in 2017, transition aid under this section for an eligible local new text end
11.18
new text begin unit equals 80 percent of (1) the net tax capacity differential, times (2) the jurisdiction's new text end
11.19
new text begin tax rate for taxes payable in 2016.new text end
11.20
new text begin (d) For aids payable in 2018, transition aid under this section for an eligible local new text end
11.21
new text begin unit equals 60 percent of (1) the net tax capacity differential, times (2) the jurisdiction's new text end
11.22
new text begin tax rate for taxes payable in 2017.new text end
11.23
new text begin (e) For aids payable in 2019, transition aid under this section for an eligible local new text end
11.24
new text begin unit equals 40 percent of (1) the net tax capacity differential, times (2) the jurisdiction's new text end
11.25
new text begin tax rate for taxes payable in 2018.new text end
11.26
new text begin (f) For aids payable in 2020, transition aid under this section for an eligible local new text end
11.27
new text begin unit equals 20 percent of (1) the net tax capacity differential, times (2) the jurisdiction's new text end
11.28
new text begin tax rate for taxes payable in 2019.new text end
11.29
new text begin (g) No aids shall be payable under this section in 2021 and thereafter.new text end
11.30
new text begin (h) The commissioner of revenue shall compute the amount of transition aid payable new text end
11.31
new text begin to each local unit under this section. On or before August 1 of each year, the commissioner new text end
11.32
new text begin shall certify the amount of transition aid computed for aids payable in the following year new text end
11.33
new text begin for each recipient local unit. The commissioner shall pay transition aid to local units new text end
11.34
new text begin annually at the times provided in section 477A.015.new text end
11.35
new text begin (i) The commissioner of revenue may require counties to provide any data that the new text end
11.36
new text begin commissioner deems necessary to administer this section.new text end
12.1
new text begin Subd. 3.new text end new text begin Appropriation.new text end new text begin An amount sufficient to pay transition aid under this new text end
12.2
new text begin section is annually appropriated to the commissioner of revenue from the general fund.new text end
12.3
new text begin EFFECTIVE DATE.new text end new text begin This section is effective beginning with assessment year 2015.new text end
12.4 Sec. 11.
new text begin [477A.19] AQUATIC INVASIVE SPECIES PREVENTION AID.new text end
12.5
new text begin Subdivision 1.new text end new text begin Definitions.new text end new text begin (a) When used in this section, the following terms have new text end
12.6
new text begin the meanings given them in this subdivision.new text end
12.7
new text begin (b) "Aquatic invasive species" means nonnative aquatic organisms that invade water new text end
12.8
new text begin beyond their natural and historic range.new text end
12.9
new text begin (c) "Watercraft trailer launch" means any public water access site designed for new text end
12.10
new text begin launching watercraft.new text end
12.11
new text begin (d) "Watercraft trailer parking space" means a parking space designated for a boat new text end
12.12
new text begin trailer at any public water access site designed for launching watercraft.new text end
12.13
new text begin Subd. 2.new text end new text begin Distribution.new text end new text begin The money appropriated to aquatic invasive species new text end
12.14
new text begin prevention aid under this section shall be allocated to all counties in the state as follows: new text end
12.15
new text begin 50 percent based on each county's share of watercraft trailer launches and 50 percent based new text end
12.16
new text begin on each county's share of watercraft trailer parking spaces.new text end
12.17
new text begin Subd. 3.new text end new text begin Use of proceeds.new text end new text begin A county that receives a distribution under this section new text end
12.18
new text begin must use the proceeds solely to prevent the introduction or limit the spread of aquatic new text end
12.19
new text begin invasive species at all access sites within the county. The county must establish, by new text end
12.20
new text begin resolution or through adoption of a plan, guidelines for the use of the proceeds. The new text end
12.21
new text begin guidelines set by the county board may include, but are not limited to, providing for new text end
12.22
new text begin site-level management, countywide awareness, and other procedures that the county finds new text end
12.23
new text begin necessary to achieve compliance. The county may appropriate the proceeds directly, new text end
12.24
new text begin or may use any portion of the proceeds to provide funding for a joint powers board or new text end
12.25
new text begin cooperative agreement with another political subdivision, a soil and water conservation new text end
12.26
new text begin district in the county, a watershed district in the county, or a lake association located new text end
12.27
new text begin in the county. Any money appropriated by the county to a different entity or political new text end
12.28
new text begin subdivision must be used as required under this section. Each county must submit a new text end
12.29
new text begin copy of its guidelines for use of the proceeds to the Department of Natural Resources by new text end
12.30
new text begin December 31 of the year the payments are received.new text end
12.31
new text begin Subd. 4.new text end new text begin Payments.new text end new text begin The commissioner of revenue must compute the amount of new text end
12.32
new text begin aquatic invasive species prevention aid payable to each county under this section. On or new text end
12.33
new text begin before August 1 of each year, the commissioner shall certify the amount to be paid to new text end
12.34
new text begin each county in the following year. The commissioner shall pay aquatic invasive species new text end
12.35
new text begin prevention aid to counties annually at the times provided in section 477A.015. For aid new text end
13.1
new text begin payable in 2014 only, the commissioner shall certify the amount to be paid to each county new text end
13.2
new text begin by July 1, 2014, and payment to the counties must be made at the time provided in section new text end
13.3
new text begin 477A.015 for the first installment of local government aid.new text end
13.4
new text begin Subd. 5.new text end new text begin Appropriation.new text end new text begin $4,500,000 in 2014, and $10,000,000 each year thereafter, new text end
13.5
new text begin is appropriated from the general fund to the commissioner of revenue to make the new text end
13.6
new text begin payments required under this section.new text end
13.7
new text begin EFFECTIVE DATE.new text end new text begin This section is effective beginning with aid payable in 2014.new text end
13.8 Sec. 12.
new text begin ADDITIONAL SUPPLEMENTAL AID REVISION FOR OMITTED new text end
13.9
new text begin 2013 INDEPENDENT NONPROFIT FIREFIGHTING CORPORATIONS.new text end
13.10
new text begin (a) Notwithstanding any provision of Minnesota Statutes, chapter 423A, to the new text end
13.11
new text begin contrary, this section modifies the allocation of the police and fire supplemental retirement new text end
13.12
new text begin state aid under Minnesota Statutes 2013 Supplement, section 423A.022, for October new text end
13.13
new text begin 1, 2014.new text end
13.14
new text begin (b) Before the allocation of the police and fire supplemental retirement state aid is new text end
13.15
new text begin made for October 1, 2014, the commissioner of revenue shall:new text end
13.16
new text begin (1) determine those fire departments that qualified for fire state aid under Minnesota new text end
13.17
new text begin Statutes 2012, section 69.021, subdivision 7, on October 1, 2013, did not receive a 2013 new text end
13.18
new text begin allocation of police and fire supplemental retirement state aid, and were an independent new text end
13.19
new text begin nonprofit firefighting corporation; andnew text end
13.20
new text begin (2) determine the amount of police and fire supplemental retirement state aid new text end
13.21
new text begin under Minnesota Statutes 2013 Supplement, section 423A.022, that the fire departments new text end
13.22
new text begin described in clause (1) would have received on October 1, 2013, if the fire departments new text end
13.23
new text begin had been included in that allocation.new text end
13.24
new text begin (c) The total amount determined in paragraph (b), clause (2), must be deducted from new text end
13.25
new text begin the amount available for allocation under Minnesota Statutes 2013 Supplement, section new text end
13.26
new text begin 423A.022, subdivision 2, clause (2), and the commissioner of revenue shall pay to the fire new text end
13.27
new text begin departments determined in paragraph (b), clause (1), their respective portion of the total as new text end
13.28
new text begin an additional payment on October 1, 2014.new text end
13.29
new text begin (d) The remaining amount after the deduction of the total amount under paragraph new text end
13.30
new text begin (c) must be allocated as provided in section 4.new text end
13.31 Sec. 13.
new text begin SUPPLEMENTAL COUNTY PROGRAM AID FOR 2014.new text end
13.32
new text begin (a) Each county whose certified aid for 2014 under Minnesota Statutes, section new text end
13.33
new text begin 477A.0124, is less than the aid it received under that section in 2013 shall be eligible for new text end
14.1
new text begin supplemental aid in 2014 equal to the difference between the amount received in 2013 new text end
14.2
new text begin and the amount certified for 2014.new text end
14.3
new text begin (b) The aid under this section shall be paid in the same manner and at the same time new text end
14.4
new text begin as the regular aid payments under Minnesota Statutes, section 477A.0124.new text end
14.5
new text begin (c) The amount necessary to pay supplemental aid under this section is appropriated new text end
14.6
new text begin from the general fund to the commissioner of revenue.new text end
14.7
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2014.new text end
14.8 Sec. 14.
new text begin SUPPLEMENTAL AGRICULTURAL CREDIT FOR TAXES PAYABLE new text end
14.9
new text begin IN 2014 ONLY.new text end
14.10
new text begin Subdivision 1.new text end new text begin Eligibility.new text end new text begin Each agricultural homestead qualifying for a credit new text end
14.11
new text begin for taxes payable in 2014 under Minnesota Statutes, section 273.1384, is eligible for a new text end
14.12
new text begin supplemental credit equal to the lesser of (i) $205, or (ii) the net property taxes payable on new text end
14.13
new text begin the property, excluding the taxes attributable to the house, garage, and surrounding one acre new text end
14.14
new text begin of land. A supplemental credit must not be paid to any property that has delinquent property new text end
14.15
new text begin taxes. By August 15, 2014, the county auditor must notify the commissioner of revenue of new text end
14.16
new text begin the name and address of the property owner of each homestead that received an agricultural new text end
14.17
new text begin credit for taxes payable in 2014, along with the net taxes due upon the agricultural new text end
14.18
new text begin homestead, whether there are any delinquent taxes on the property, and whatever other new text end
14.19
new text begin information the commissioner deems necessary, in a form prescribed by the commissioner.new text end
14.20
new text begin Subd. 2.new text end new text begin Payment of supplemental credit.new text end new text begin The commissioner must pay new text end
14.21
new text begin supplemental credit amounts to each qualifying taxpayer by October 15, 2014.new text end
14.22
new text begin Subd. 3.new text end new text begin Property tax statements for taxes payable in 2015.new text end new text begin In preparing new text end
14.23
new text begin proposed property tax notices for taxes payable in 2015 under Minnesota Statutes, section new text end
14.24
new text begin 275.065, and final property tax statements for taxes payable in 2015 under Minnesota new text end
14.25
new text begin Statutes, section 276.04, the auditor must indicate that the taxpayer may have received a new text end
14.26
new text begin supplemental credit under this section for taxes payable in 2014.new text end
14.27
new text begin Subd. 4.new text end new text begin Appropriation.new text end new text begin The amount necessary to make the payments required new text end
14.28
new text begin under subdivision 2 is appropriated from the general fund to the commissioner of revenue new text end
14.29
new text begin for fiscal year 2015.new text end
14.30
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
14.31 Sec. 15.
new text begin 2013 CITY AID PENALTY FORGIVENESS; CITY OF BLUFFTON.new text end
15.1
new text begin Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the city of new text end
15.2
new text begin Bluffton shall receive the half of its aid payments for calendar years 2011, 2012, and new text end
15.3
new text begin 2013 under Minnesota Statutes, section 477A.013, that were withheld under Minnesota new text end
15.4
new text begin Statutes, section 477A.017, subdivision 3, provided that the state auditor certifies to the new text end
15.5
new text begin commissioner of revenue that it received audited financial statements from the city for new text end
15.6
new text begin calendar years 2010, 2011, and 2012 by December 31, 2013, and for calendar year 2013 new text end
15.7
new text begin by June 30, 2014. The commissioner of revenue shall make a payment of $20,000 with new text end
15.8
new text begin the first payment of aids under Minnesota Statutes, section 477A.015, in calendar year new text end
15.9
new text begin 2014. The commissioner shall pay the remaining amount, totaling $28,151.50, with the new text end
15.10
new text begin first payment of aids under Minnesota Statutes, section 477A.015, in calendar year 2015. new text end
15.11
new text begin $20,000 in fiscal year 2015 and $28,151.50 in fiscal year 2016 are appropriated from the new text end
15.12
new text begin general fund to the commissioner of revenue to make payments under this section.new text end
15.13
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
15.14 Sec. 16.
new text begin HOMESTEAD CREDIT REFUND AND RENTER PROPERTY TAX new text end
15.15
new text begin REFUND INCREASE.new text end
15.16
new text begin Subdivision 1.new text end new text begin Homestead credit refund increase.new text end new text begin For claims filed based on taxes new text end
15.17
new text begin payable in 2014, the commissioner shall increase by three percent the refund otherwise new text end
15.18
new text begin payable under Minnesota Statutes, section 290A.04, subdivision 2.new text end
15.19
new text begin Subd. 2.new text end new text begin Renter property tax refund increase.new text end new text begin For claims filed based on rent paid new text end
15.20
new text begin in 2013, the commissioner shall increase by six percent the refund otherwise payable new text end
15.21
new text begin under Minnesota Statutes, section 290A.04, subdivision 2a.new text end
15.22
new text begin Subd. 3.new text end new text begin No notification of appeal rights.new text end new text begin In adjusting homestead credit refunds new text end
15.23
new text begin and renter property tax refunds under this section, the commissioner is not required to new text end
15.24
new text begin provide information concerning appeal rights that ordinarily must be provided whenever new text end
15.25
new text begin the commissioner adjusts refunds payable under Minnesota Statutes, chapter 290A. new text end
15.26
new text begin Taxpayers retain all rights to appeal adjustments under this section.new text end
15.27
new text begin Subd. 4.new text end new text begin Appropriation.new text end new text begin The amount necessary to make the payments required new text end
15.28
new text begin under this section is appropriated from the general fund to the commissioner of revenue.new text end
15.29
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for refund claims based on taxes new text end
15.30
new text begin payable in 2014 and rent paid in 2013 only.new text end
16.1
ARTICLE 2
16.2
PROPERTY TAXES
16.3 Section 1. Minnesota Statutes 2013 Supplement, section 144F.01, subdivision 4,
16.4is amended to read:
16.5 Subd. 4.
Property tax levy authority. The district's board may levy a tax on the
16.6taxable real and personal property in the district. The ad valorem tax levy may not exceed
16.70.048 percent of the estimated market value of the district or $400,000
new text begin $550,000new text end , whichever
16.8is less. The proceeds of the levy must be used as provided in subdivision 5. The board shall
16.9certify the levy at the times as provided under section
275.07. The board shall provide the
16.10county with whatever information is necessary to identify the property that is located within
16.11the district. If the boundaries include a part of a parcel, the entire parcel shall be included
16.12in the district. The county auditors must spread, collect, and distribute the proceeds of the
16.13tax at the same time and in the same manner as provided by law for all other property taxes.
16.14
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for assessments in 2015, taxes new text end
16.15
new text begin payable in 2016, and thereafter.new text end
16.16 Sec. 2. Minnesota Statutes 2012, section 272.02, subdivision 10, is amended to read:
16.17 Subd. 10.
Personal property used for pollution control. Personal property used
16.18primarily for the abatement and control of air, water, or land pollution is exempt to the
16.19extent that it is so used, and real property is exempt if it is used primarily for abatement
16.20and control of air, water, or land pollution as part of an agricultural operation, as a part
16.21of a centralized treatment and recovery facility operating under a permit issued by the
16.22Minnesota Pollution Control Agency pursuant to chapters 115 and 116 and Minnesota
16.23Rules, parts 7001.0500 to 7001.0730, and 7045.0020 to 7045.1260, as a wastewater
16.24treatment facility and for the treatment, recovery, and stabilization of metals, oils,
16.25chemicals, water, sludges, or inorganic materials from hazardous industrial wastes, or as
16.26part of an electric generation system. For purposes of this subdivision, personal property
16.27includes ponderous machinery and equipment used in a business or production activity
16.28that at common law is considered real property.
16.29Any taxpayer requesting exemption of all or a portion of any real property or any
16.30equipment or device, or part thereof, operated primarily for the control or abatement of
16.31air, water, or land pollution shall file an application with the commissioner of revenue.
16.32
new text begin The commissioner shall develop an electronic means to notify interested parties when new text end
16.33
new text begin electric power generation facilities have filed an application. new text end The Minnesota Pollution
17.1Control Agency shall upon request of the commissioner furnish information and advice to
17.2the commissioner.
17.3The information and advice furnished by the Minnesota Pollution Control
17.4Agency must include statements as to whether the equipment, device, or real property
17.5meets a standard, rule, criteria, guideline, policy, or order of the Minnesota Pollution
17.6Control Agency, and whether the equipment, device, or real property is installed or
17.7operated in accordance with it. On determining that property qualifies for exemption,
17.8the commissioner shall issue an order exempting the property from taxation.
new text begin The new text end
17.9
new text begin commissioner shall develop an electronic means to notify interested parties when new text end
17.10
new text begin the commissioner has issued an order exempting property from taxation under this new text end
17.11
new text begin subdivision. new text end The equipment, device, or real property shall continue to be exempt from
17.12taxation as long as the order issued by the commissioner remains in effect.
17.13
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
17.14 Sec. 3. Minnesota Statutes 2012, section 272.02, subdivision 24, is amended to read:
17.15 Subd. 24.
Electric power photovoltaic devicesnew text begin Solar energy generating systemsnew text end .
17.16Photovoltaic devices
new text begin Personal property consisting of solar energy generating systemsnew text end , as
17.17defined in section
216C.06, subdivision 16, installed after January 1, 1992, and used to
17.18produce or store electric power are
new text begin 272.0295, isnew text end exempt
new text begin . If the real property upon which a new text end
17.19
new text begin solar energy generating system is located is used primarily for solar energy production new text end
17.20
new text begin subject to the production tax under section 272.0295, the real property shall be classified new text end
17.21
new text begin as class 3a. If the real property upon which a solar energy generating system is located is new text end
17.22
new text begin not used primarily for solar energy production subject to the production tax under section new text end
17.23
new text begin 272.0295, the real property shall be classified without regard to the systemnew text end .
17.24
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for assessments in 2015, taxes new text end
17.25
new text begin payable in 2016, and thereafter.new text end
17.26 Sec. 4. Minnesota Statutes 2012, section 272.02, subdivision 93, is amended to read:
17.27 Subd. 93.
Electric generation facility; personal property. Notwithstanding
17.28subdivision 9, clause (a), attached machinery and other personal property that is part of
17.29a simple-cycle electric generation facility of more than 40 megawatts and less than 125
17.30megawatts of installed capacity and that meets the requirements of this subdivision is
17.31exempt. At the time of construction, the facility must:
17.32(1) utilize natural gas as a primary fuel;
18.1(2) be located within two miles of parallel existing 36-inch natural gas pipelines and
18.2an existing 115-kilovolt high-voltage electric transmission line;
18.3(3) be designed to provide peaking, emergency backup, or contingency services;
18.4(4) satisfy a resource deficiency identified in an approved integrated resource plan
18.5filed under section
216B.2422; and
18.6(5) have an agreement with the host county, township, and school district for
18.7payment in lieu of personal property taxes to the host county, township, and school district
18.8for the operating life of the facility. Any amount distributed to the school district is not
18.9subject to the deductions under section
126C.21.
18.10Construction of the facility must be commenced after January 1, 2010
new text begin 2015new text end , and
18.11before January 1, 2014
new text begin 2019new text end . Property eligible for this exemption does not include electric
18.12transmission lines and interconnections or gas pipelines and interconnections appurtenant
18.13to the property or the facility.
18.14
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for assessments in 2015, taxes new text end
18.15
new text begin payable in 2016, and thereafter.new text end
18.16 Sec. 5. Minnesota Statutes 2012, section 272.0211, subdivision 1, is amended to read:
18.17 Subdivision 1.
Efficiency determination and certification. An owner or operator
18.18of a new or existing electric power generation facility, excluding wind energy conversion
18.19systems, may apply to the commissioner of revenue for a market value exclusion on the
18.20property as provided for in this section. This exclusion shall apply only to the market
18.21value of the equipment of the facility, and shall not apply to the structures and the land
18.22upon which the facility is located. The commissioner of revenue shall prescribe the forms
18.23and procedures for this application. Upon receiving the application, the commissioner
18.24of revenue shall
new text begin : (1) new text end request the commissioner of commerce to make a determination of
18.25the efficiency of the applicant's electric power generation facility
new text begin ; and (2) shall develop new text end
18.26
new text begin an electronic means to notify interested parties when electric power generation facilities new text end
18.27
new text begin have filed an applicationnew text end . The commissioner of commerce shall calculate efficiency as
18.28the ratio of useful energy outputs to energy inputs, expressed as a percentage, based
18.29on the performance of the facility's equipment during normal full load operation. The
18.30commissioner must include in this formula the energy used in any on-site preparation of
18.31materials necessary to convert the materials into the fuel used to generate electricity, such as
18.32a process to gasify petroleum coke. The commissioner shall use the Higher Heating Value
18.33(HHV) for all substances in the commissioner's efficiency calculations, except for wood
18.34for fuel in a biomass-eligible project under section
216B.2424; for these instances, the
18.35commissioner shall adjust the heating value to allow for energy consumed for evaporation
19.1of the moisture in the wood. The applicant shall provide the commissioner of commerce
19.2with whatever information the commissioner deems necessary to make the determination.
19.3Within 30 days of the receipt of the necessary information, the commissioner of commerce
19.4shall certify the findings of the efficiency determination to the commissioner of revenue
19.5and to the applicant. The commissioner of commerce shall determine the efficiency of the
19.6facility and certify the findings of that determination to the commissioner of revenue every
19.7two years thereafter from the date of the original certification.
19.8
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
19.9 Sec. 6. Minnesota Statutes 2012, section 272.0211, subdivision 2, is amended to read:
19.10 Subd. 2.
Sliding scale exclusion. Based upon the efficiency determination provided
19.11by the commissioner of commerce as described in subdivision 1, the commissioner of
19.12revenue shall subtract eight percent of the taxable market value of the qualifying property
19.13for each percentage point that the efficiency of the specific facility, as determined by the
19.14commissioner of commerce, is above 40 percent. The reduction in taxable market value
19.15shall be reflected in the taxable market value of the facility beginning with the assessment
19.16year immediately following the determination.
new text begin The commissioner shall develop an new text end
19.17
new text begin electronic means to notify interested parties of the qualifying facilities and their respective new text end
19.18
new text begin exclusion percentages after the efficiency determination is made by the Department of new text end
19.19
new text begin Commerce. new text end For a facility that is assessed by the county in which the facility is located,
19.20the commissioner of revenue shall certify to the assessor of that county the percentage
19.21of the taxable market value of the facility to be excluded.
19.22
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
19.23 Sec. 7. Minnesota Statutes 2012, section 272.0211, subdivision 4, is amended to read:
19.24 Subd. 4.
Eligibility. An owner or operator of a new or existing electric power
19.25generation facility who offers electric power generated by the facility for sale is eligible
19.26for an exclusion under this section only if:
19.27(1) the owner or operator has received a certificate of need under section
216B.243,
19.28if required under that section;
19.29(2) the public utilities commission finds that an agreement exists or a good faith offer
19.30has been made to sell the majority of the net power generated by the facility to an electric
19.31utility which has a demonstrated need for the power. A right of first refusal satisfies the good
19.32faith offer requirement. The commission shall have 90 days from the date the commission
19.33receives notice of the application under subdivision 1 to make this determination; and
20.1(3) the electric utility has agreed in advance not to offer the electric power for resale
20.2to a retail customer located outside of the utility's assigned service area, or, if the utility is
20.3a generation and transmission cooperative electric association, the assigned service area
20.4of its members, unless otherwise permitted by law
new text begin ; andnew text end
20.5
new text begin (4) for any facility that was not certified as eligible for an exclusion under new text end
20.6
new text begin subdivision 2 for property taxes payable in 2015, the facility must be converted from new text end
20.7
new text begin coal to an alternative fuel and must have a nameplate capacity prior to conversion of new text end
20.8
new text begin less than 75 megawattsnew text end .
20.9For the purposes of this subdivision, "electric utility" means an entity whose primary
20.10business function is to operate, maintain, or control equipment or facilities for providing
20.11electric service at retail or wholesale, and includes distribution cooperative electric
20.12associations, generation and transmission cooperative electric associations, municipal
20.13utilities, and public utilities as defined in section
216B.02, subdivision 4.
20.14
new text begin EFFECTIVE DATE.new text end new text begin This is section is effective for assessment year 2015 and new text end
20.15
new text begin thereafter.new text end
20.16 Sec. 8.
new text begin [272.0295] SOLAR ENERGY PRODUCTION TAX.new text end
20.17
new text begin Subdivision 1.new text end new text begin Production tax.new text end new text begin A tax is imposed on the production of electricity new text end
20.18
new text begin from a solar energy generating system used as an electric power source.new text end
20.19
new text begin Subd. 2.new text end new text begin Definitions.new text end new text begin (a) For the purposes of this section, the term "solar energy new text end
20.20
new text begin generating system" means a set of devices whose primary purpose is to produce electricity new text end
20.21
new text begin by means of any combination of collecting, transferring, or converting solar generated new text end
20.22
new text begin energy.new text end
20.23
new text begin (b) The total size of a solar energy generating system under this subdivision shall new text end
20.24
new text begin be determined according to this paragraph. Unless the systems are interconnected with new text end
20.25
new text begin different distribution systems, the nameplate capacity of a solar energy generating system new text end
20.26
new text begin shall be combined with the nameplate capacity of any other solar energy generating new text end
20.27
new text begin system that is:new text end
20.28
new text begin (1) constructed within the same 12-month period as the solar energy generating new text end
20.29
new text begin system; andnew text end
20.30
new text begin (2) exhibits characteristics of being a single development, including but not new text end
20.31
new text begin limited to ownership structure, an umbrella sales arrangement, shared interconnection, new text end
20.32
new text begin revenue-sharing arrangements, and common debt or equity financing.new text end
20.33
new text begin In the case of a dispute, the commissioner of commerce shall determine the total size of new text end
20.34
new text begin the system and shall draw all reasonable inferences in favor of combining the systems.new text end
21.1
new text begin (c) In making a determination under paragraph (b), the commissioner of commerce new text end
21.2
new text begin may determine that two solar energy generating systems are under common ownership new text end
21.3
new text begin when the underlying ownership structure contains similar persons or entities, even if the new text end
21.4
new text begin ownership shares differ between the two systems. Solar energy generating systems are new text end
21.5
new text begin not under common ownership solely because the same person or entity provided equity new text end
21.6
new text begin financing for the systems.new text end
21.7
new text begin Subd. 3.new text end new text begin Rate of tax.new text end new text begin (a) For a solar energy generating system with a capacity new text end
21.8
new text begin exceeding one megawatt alternating current, the tax is $1.20 per megawatt-hour.new text end
21.9
new text begin (b) A solar energy generating system with a capacity of one megawatt alternating new text end
21.10
new text begin current or less is exempt from the tax imposed under this section.new text end
21.11
new text begin Subd. 4.new text end new text begin Reports.new text end new text begin An owner of a solar energy generating system subject to tax new text end
21.12
new text begin under this section shall file a report with the commissioner of revenue annually on or new text end
21.13
new text begin before January 15 detailing the amount of electricity in megawatt-hours that was produced new text end
21.14
new text begin by the system in the previous calendar year. The commissioner shall prescribe the form new text end
21.15
new text begin of the report. The report must contain the information required by the commissioner to new text end
21.16
new text begin determine the tax due to each county under this section for the current year. If an owner new text end
21.17
new text begin of a solar energy generating system subject to taxation under this section fails to file the new text end
21.18
new text begin report by the due date, the commissioner of revenue shall determine the tax based upon new text end
21.19
new text begin the nameplate capacity of the system multiplied by a capacity factor of 30 percent.new text end
21.20
new text begin Subd. 5.new text end new text begin Notification of tax.new text end new text begin (a) On or before February 28, the commissioner of new text end
21.21
new text begin revenue shall notify the owner of each solar energy generating system of the tax due to new text end
21.22
new text begin each county for the current year and shall certify to the county auditor of each county in new text end
21.23
new text begin which the system is located the tax due from each owner for the current year.new text end
21.24
new text begin (b) If the commissioner of revenue determines that the amount of production tax has new text end
21.25
new text begin been erroneously calculated, the commissioner may correct the error. The commissioner new text end
21.26
new text begin must notify the owner of the solar energy generating system of the correction and the new text end
21.27
new text begin amount of tax due to each county and must certify the correction to the county auditor of new text end
21.28
new text begin each county in which the system is located on or before April 1 of the current year.new text end
21.29
new text begin Subd. 6.new text end new text begin Payment of tax; collection.new text end new text begin The amount of production tax determined new text end
21.30
new text begin under subdivision 5 must be paid to the county treasurer at the time and in the manner new text end
21.31
new text begin provided for payment of property taxes under section new text end
new text begin 277.01, subdivision 3new text end new text begin , and, if unpaid, new text end
21.32
new text begin is subject to the same enforcement, collection, and interest and penalties as delinquent new text end
21.33
new text begin personal property taxes. Except to the extent inconsistent with this section, the provisions new text end
21.34
new text begin of sections new text end
new text begin to new text end
new text begin and new text end
new text begin to new text end
new text begin apply to the taxes imposed under this new text end
21.35
new text begin section, and for purposes of those provisions, the taxes imposed under this section are new text end
21.36
new text begin considered personal property taxes.new text end
22.1
new text begin Subd. 7.new text end new text begin Distribution of revenues.new text end new text begin Revenues from the taxes imposed under this new text end
22.2
new text begin section must be part of the settlement between the county treasurer and the county auditor new text end
22.3
new text begin under section new text end
new text begin . The revenue must be distributed by the county auditor or the county new text end
22.4
new text begin treasurer to local taxing jurisdictions in which the solar energy generating system is new text end
22.5
new text begin located as follows: 80 percent to counties; and 20 percent to cities and townships.new text end
22.6
new text begin EFFECTIVE DATE.new text end new text begin This section is effective beginning with taxes payable in 2015.new text end
22.7 Sec. 9. Minnesota Statutes 2012, section 272.03, subdivision 1, is amended to read:
22.8 Subdivision 1.
Real property. (a) For the purposes of taxation, "real property"
22.9includes the land itself, rails, ties, and other track materials annexed to the land, and all
22.10buildings, structures, and improvements or other fixtures on it, bridges of bridge companies,
22.11and all rights and privileges belonging or appertaining to the land, and all mines, iron ore
22.12and taconite minerals not otherwise exempt, quarries, fossils, and trees on or under it.
22.13(b) A building or structure shall include the building or structure itself, together with
22.14all improvements or fixtures annexed to the building or structure, which are integrated
22.15with and of permanent benefit to the building or structure, regardless of the present use
22.16of the building, and which cannot be removed without substantial damage to itself or to
22.17the building or structure.
22.18(c)(i) Real property does not include tools, implements, machinery, and equipment
22.19attached to or installed in real property for use in the business or production activity
22.20conducted thereon, regardless of size, weight or method of attachment, and mine shafts,
22.21tunnels, and other underground openings used to extract ores and minerals taxed under
22.22chapter 298 together with steel, concrete, and other materials used to support such openings.
22.23(ii) The exclusion provided in clause (i) shall not apply to machinery and equipment
22.24includable as real estate by paragraphs (a) and (b) even though such machinery and
22.25equipment is used in the business or production activity conducted on the real property if
22.26and to the extent such business or production activity consists of furnishing services or
22.27products to other buildings or structures which are subject to taxation under this chapter.
22.28(iii) The exclusion provided in clause (i) does not apply to the exterior shell of a
22.29structure which constitutes walls, ceilings, roofs, or floors if the shell of the structure has
22.30structural, insulation, or temperature control functions or provides protection from the
22.31elements
new text begin , unless the structure is primarily used in the production of biofuels, wine, beer, new text end
22.32
new text begin distilled beverages, or dairy productsnew text end . Such an exterior shell is included in the definition
22.33of real property even if it also has special functions distinct from that of a building
new text begin , or if new text end
22.34
new text begin such an exterior shell is primarily used for the storage of ingredients or materials used in new text end
23.1
new text begin the production of biofuels, wine, beer, distilled beverages, or dairy products, or for the new text end
23.2
new text begin storage of finished biofuels, wine, beer, distilled beverages, or dairy productsnew text end .
23.3(d) The term real property does not include tools, implements, machinery,
23.4equipment, poles, lines, cables, wires, conduit, and station connections which are part of a
23.5telephone communications system, regardless of attachment to or installation in real
23.6property and regardless of size, weight, or method of attachment or installation.
23.7
new text begin EFFECTIVE DATE.new text end new text begin This section is effective beginning with assessment year 2015.new text end
23.8 Sec. 10. Minnesota Statutes 2012, section 273.13, subdivision 34, is amended to read:
23.9 Subd. 34.
Homestead of disabled veteran or family caregiver. (a) All or a
23.10portion of the market value of property owned by a veteran and serving as the veteran's
23.11homestead under this section is excluded in determining the property's taxable market
23.12value if the veteran has a service-connected disability of 70 percent or more as certified
23.13by the United States Department of Veterans Affairs. To qualify for exclusion under this
23.14subdivision, the veteran must have been honorably discharged from the United States
23.15armed forces, as indicated by United States Government Form DD214 or other official
23.16military discharge papers.
23.17 (b)(1) For a disability rating of 70 percent or more, $150,000 of market value is
23.18excluded, except as provided in clause (2); and
23.19 (2) for a total (100 percent) and permanent disability, $300,000 of market value is
23.20excluded.
23.21 (c) If a disabled veteran qualifying for a valuation exclusion under paragraph (b),
23.22clause (2), predeceases the veteran's spouse, and if upon the death of the veteran the spouse
23.23holds the legal or beneficial title to the homestead and permanently resides there, the
23.24exclusion shall carry over to the benefit of the veteran's spouse for the current taxes payable
23.25year and for five
new text begin eightnew text end additional taxes payable years or until such time as the spouse
23.26remarries, or sells, transfers, or otherwise disposes of the property, whichever comes first.
23.27Qualification under this paragraph requires an annual application under paragraph (h).
23.28(d) If the spouse of a member of any branch or unit of the United States armed
23.29forces who dies due to a service-connected cause while serving honorably in active
23.30service, as indicated on United States Government Form DD1300 or DD2064, holds the
23.31legal or beneficial title to a homestead and permanently resides there, the spouse is entitled
23.32to the benefit described in paragraph (b), clause (2), for five
new text begin eightnew text end taxes payable years,
23.33or until such time as the spouse remarries or sells, transfers, or otherwise disposes of the
23.34property, whichever comes first.
24.1(e) If a veteran meets the disability criteria of paragraph (a) but does not own
24.2property classified as homestead in the state of Minnesota, then the homestead of the
24.3veteran's primary family caregiver, if any, is eligible for the exclusion that the veteran
24.4would otherwise qualify for under paragraph (b).
24.5 (f) In the case of an agricultural homestead, only the portion of the property
24.6consisting of the house and garage and immediately surrounding one acre of land qualifies
24.7for the valuation exclusion under this subdivision.
24.8 (g) A property qualifying for a valuation exclusion under this subdivision is not
24.9eligible for the market value exclusion under subdivision 35, or classification under
24.10subdivision 22, paragraph (b).
24.11 (h) To qualify for a valuation exclusion under this subdivision a property owner
24.12must apply to the assessor by July 1 of each assessment year, except that an annual
24.13reapplication is not required once a property has been accepted for a valuation exclusion
24.14under paragraph (a) and qualifies for the benefit described in paragraph (b), clause (2), and
24.15the property continues to qualify until there is a change in ownership. For an application
24.16received after July 1 of any calendar year, the exclusion shall become effective for the
24.17following assessment year.
24.18(i) A first-time application by a qualifying spouse for the market value exclusion under
24.19paragraph (d) must be made any time within two years of the death of the service member.
24.20(j) For purposes of this subdivision:
24.21(1) "active service" has the meaning given in section
190.05;
24.22(2) "own" means that the person's name is present as an owner on the property deed;
24.23(3) "primary family caregiver" means a person who is approved by the secretary of
24.24the United States Department of Veterans Affairs for assistance as the primary provider
24.25of personal care services for an eligible veteran under the Program of Comprehensive
24.26Assistance for Family Caregivers, codified as United States Code, title 38, section 1720G;
24.27and
24.28(4) "veteran" has the meaning given the term in section
197.447.
24.29(k) The purpose of this provision of law providing a level of homestead property tax
24.30relief for gravely disabled veterans, their primary family caregivers, and their surviving
24.31spouses is to help ease the burdens of war for those among our state's citizens who bear
24.32those burdens most heavily.
24.33
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxes payable in 2015, and new text end
24.34
new text begin applies to homesteads that initially qualified for the exclusion for taxes payable in 2009 new text end
24.35
new text begin and thereafter.new text end
25.1 Sec. 11. Minnesota Statutes 2012, section 275.065, subdivision 1, is amended to read:
25.2 Subdivision 1.
Proposed levy. (a) Notwithstanding any law or charter to the
25.3contrary, on or before September 15
new text begin 30new text end , each taxing authority, other than a school district,
25.4shall adopt a proposed budget and
new text begin county and each home rule charter or statutory citynew text end shall
25.5certify to the county auditor the proposed or, in the case of a town, the final property tax
25.6levy for taxes payable in the following year.
25.7 (b)
new text begin Notwithstanding any law or charter to the contrary, on or before September 15, new text end
25.8
new text begin each town and each special taxing district shall adopt and certify to the county auditor a new text end
25.9
new text begin proposed property tax levy for taxes payable in the following year. For towns, the final new text end
25.10
new text begin certified levy shall also be considered the proposed levy.new text end
25.11
new text begin (c)new text end On or before September 30, each school district that has not mutually agreed
25.12with its home county to extend this date shall certify to the county auditor the proposed
25.13property tax levy for taxes payable in the following year. Each school district that has
25.14agreed with its home county to delay the certification of its proposed property tax levy
25.15must certify its proposed property tax levy for the following year no later than October
25.167. The school district shall certify the proposed levy as:
25.17 (1) a specific dollar amount by school district fund, broken down between
25.18voter-approved and non-voter-approved levies and between referendum market value
25.19and tax capacity levies; or
25.20 (2) the maximum levy limitation certified by the commissioner of education
25.21according to section
126C.48, subdivision 1.
25.22 (c)
new text begin (d)new text end If the board of estimate and taxation or any similar board that establishes
25.23maximum tax levies for taxing jurisdictions within a first class city certifies the maximum
25.24property tax levies for funds under its jurisdiction by charter to the county auditor by
25.25September 15
new text begin the date specified in paragraph (a)new text end , the city shall be deemed to have certified
25.26its levies for those taxing jurisdictions.
25.27 (d)
new text begin (e)new text end For purposes of this section, "taxing authority" includes all home rule and
25.28statutory cities, towns, counties, school districts, and
new text begin "special taxing district" means anew text end
25.29 special taxing districts
new text begin districtnew text end as defined in section
275.066. Intermediate school districts
25.30that levy a tax under chapter 124 or 136D, joint powers boards established under sections
25.31123A.44
to
123A.446, and Common School Districts No. 323, Franconia, and No. 815,
25.32Prinsburg, are also special taxing districts for purposes of this section.
25.33(e)
new text begin (f)new text end At the meeting at which the
new text begin anew text end taxing authority, other than a town, adopts its
25.34proposed tax levy under paragraph (a) or (b)
new text begin this subdivisionnew text end , the taxing authority shall
25.35announce the time and place of its subsequent regularly scheduled meetings at which
25.36the budget and levy will be discussed and at which the public will be allowed to speak.
26.1The time and place of those meetings must be included in the proceedings or summary
26.2of proceedings published in the official newspaper of the taxing authority under section
26.3123B.09
,
375.12, or
412.191.
26.4
new text begin EFFECTIVE DATE.new text end new text begin This section is effective beginning with taxes payable in 2015.new text end
26.5 Sec. 12. Minnesota Statutes 2012, section 279.03, subdivision 2, is amended to read:
26.6 Subd. 2.
Composite judgment. Amounts included in composite judgments
26.7authorized by section
279.37, subdivision 1, and confessed on or after July 1, 1982, are
26.8subject to interest at the rate determined pursuant to section
. Amounts confessed
26.9under this authority after December 31, 1990,
new text begin (a) Except as provided in paragraph (b), new text end
26.10
new text begin amounts included in composite judgments authorized by section 279.37, subdivision 1,new text end are
26.11subject to interest at the rate calculated under subdivision 1a. During each calendar year,
26.12interest shall accrue on the unpaid balance of the composite judgment from the time it is
26.13confessed until it is paid. The rate of interest is subject to change each year in the same
26.14manner that section
or subdivision 1a, whichever is applicable, for rate changes.
26.15Interest on the unpaid contract balance on judgments confessed before July 1, 1982,
26.16is payable at the rate applicable to the judgment at the time that it was confessed.
new text begin The new text end
26.17
new text begin interest rate established at the time the judgment is confessed is fixed for the duration of new text end
26.18
new text begin that judgment.new text end
26.19
new text begin (b) A confession of judgment covering any part of a parcel classified as 1a or 1b, new text end
26.20
new text begin and used as the homestead of the owner, is subject to interest at the rate provided in new text end
26.21
new text begin section 279.37, subdivision 2, paragraph (b). This paragraph does not apply to a relative new text end
26.22
new text begin homestead under section 273.124, subdivision 1, paragraph (c).new text end
26.23
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for confession judgments entered new text end
26.24
new text begin into on or after January 1, 2015.new text end
26.25 Sec. 13. Minnesota Statutes 2013 Supplement, section 279.37, subdivision 2, is
26.26amended to read:
26.27 Subd. 2.
Installment payments. new text begin (a) new text end The owner of any such parcel, or any person to
26.28whom the right to pay taxes has been given by statute, mortgage, or other agreement, may
26.29make and file with the county auditor of the county in which the parcel is located a written
26.30offer to pay the current taxes each year before they become delinquent, or to contest the
26.31taxes under Minnesota Statutes 1941, sections
278.01 to
278.13, and agree to confess
26.32judgment for the amount provided, as determined by the county auditor. By filing the
26.33offer, the owner waives all irregularities in connection with the tax proceedings affecting
27.1the parcel and any defense or objection which the owner may have to the proceedings, and
27.2also waives the requirements of any notice of default in the payment of any installment or
27.3interest to become due pursuant to the composite judgment to be so entered. Unless the
27.4property is subject to subdivision 1a, with the offer, the owner shall (i) tender one-tenth of
27.5the amount of the delinquent taxes, costs, penalty, and interest, and (ii) tender all current
27.6year taxes and penalty due at the time the confession of judgment is entered. In the offer,
27.7the owner shall agree to pay the balance in nine equal installments, with interest as provided
27.8in section
279.03, payable annually on installments remaining unpaid from time to time, on
27.9or before December 31 of each year following the year in which judgment was confessed.
27.10
new text begin (b) For property which qualifies under section 279.03, subdivision 2, paragraph (b), new text end
27.11
new text begin each year the commissioner shall set the interest rate for offers made under paragraph (a) new text end
27.12
new text begin at the greater of five percent or two percent above the prime rate charged by banks during new text end
27.13
new text begin the six-month period ending on September 30 of that year, rounded to the nearest full new text end
27.14
new text begin percent, provided that the rate must not exceed the maximum annum rate specified under new text end
27.15
new text begin section 279.03, subdivision 1a. The rate of interest becomes effective on January 1 of the new text end
27.16
new text begin immediately succeeding year. The commissioner's determination under this subdivision is new text end
27.17
new text begin not a rule subject to the Administrative Procedure Act in chapter 14, including section new text end
27.18
new text begin 14.386. If a default occurs in the payments under any confessed judgment entered under new text end
27.19
new text begin this paragraph, the taxes and penalties due are subject to the interest rate specified in new text end
27.20
new text begin section 279.03.new text end
27.21
new text begin For the purposes of this subdivision:new text end
27.22
new text begin (1) the term "prime rate charged by banks" means the average predominant prime new text end
27.23
new text begin rate quoted by commercial banks to large businesses, as determined by the Board of new text end
27.24
new text begin Governors of the Federal Reserve System; andnew text end
27.25
new text begin (2) "default" means the cancellation of the confession of judgment due to new text end
27.26
new text begin nonpayment of the current year tax or failure to make any installment payment required by new text end
27.27
new text begin this confessed judgment within 60 days from the date on which payment was due.new text end
27.28
new text begin (c) The interest rate established at the time judgment is confessed is fixed for the new text end
27.29
new text begin duration of the judgment. By October 15 of each year, the commissioner of revenue must new text end
27.30
new text begin determine the rate of interest as provided under paragraph (b) and, by November 1 of each new text end
27.31
new text begin year, must certify the rate to the county auditor.new text end
27.32
new text begin (d) A qualified property owner eligible to enter into a second confession of judgment new text end
27.33
new text begin may do so at the interest rate provided in paragraph (b).new text end
27.34
new text begin (e) Repurchase agreements or contracts for repurchase for properties being new text end
27.35
new text begin repurchased under section 282.261 are not eligible to receive the interest rate under new text end
27.36
new text begin paragraph (b).new text end
28.1
new text begin (f) new text end The offer must be substantially as follows:
28.2"To the court administrator of the district court of ........... county, I, .....................,
28.3am the owner of the following described parcel of real estate located in ....................
28.4county, Minnesota:
28.5.............................. Upon that real estate there are delinquent taxes for the year ........., and
28.6prior years, as follows: (here insert year of delinquency and the total amount of delinquent
28.7taxes, costs, interest, and penalty). By signing this document I offer to confess judgment in
28.8the sum of $...... and waive all irregularities in the tax proceedings affecting these taxes and
28.9any defense or objection which I may have to them, and direct judgment to be entered for
28.10the amount stated above, minus the sum of $............, to be paid with this document, which
28.11is one-tenth or one-fifth of the amount of the taxes, costs, penalty, and interest stated above.
28.12I agree to pay the balance of the judgment in nine or four equal, annual installments, with
28.13interest as provided in section
279.03, payable annually, on the installments remaining
28.14unpaid. I agree to pay the installments and interest on or before December 31 of each year
28.15following the year in which this judgment is confessed and current taxes each year before
28.16they become delinquent, or within 30 days after the entry of final judgment in proceedings
28.17to contest the taxes under Minnesota Statutes, sections
278.01 to
278.13.
28.18Dated .............., ......."
28.19
new text begin EFFECTIVE DATE.new text end new text begin This section shall be effective for confession judgments new text end
28.20
new text begin entered into on or after January 1, 2015.new text end
28.21 Sec. 14. Minnesota Statutes 2012, section 383E.21, subdivision 1, is amended to read:
28.22 Subdivision 1.
Authority to new text begin levy property taxes and new text end incur debt. (a) To finance the
28.23cost of designing, constructing, and acquiring countywide public safety improvements
28.24and equipment, including personal property, benefiting both Anoka County and the
28.25municipalities located within Anoka County, the governing body of Anoka County may
28.26
new text begin levy property taxes for public safety improvements and equipment, andnew text end issue:
28.27(1) capital improvement bonds under the provisions of section 373.40 as if the
28.28infrastructure and equipment qualified as a "capital improvement" within the meaning of
28.29section 373.40, subdivision 1, paragraph (b); and
28.30(2) capital notes under the provisions of section 373.01, subdivision 3, as if the
28.31equipment qualified as "capital equipment" within the meaning of section 373.01,
28.32subdivision 3. Personal property acquired with the proceeds of the bonds or capital
28.33notes issued under this section must have an expected useful life at least as long as the
28.34term of debt.
29.1(b) The outstanding principal amount of the bonds and the capital notes issued under
29.2this section may not exceed $8,000,000 at any time. Any bonds or notes issued pursuant
29.3to this section must only be issued after approval by a majority vote of the Anoka County
29.4Joint Law Enforcement Council, a joint powers board.
29.5
new text begin EFFECTIVE DATE.new text end new text begin This section is effective retroactively for taxes payable in new text end
29.6
new text begin 2013 and thereafter and expires under Minnesota Statutes, section 383E.21, subdivision 3.new text end
29.7 Sec. 15. Minnesota Statutes 2012, section 383E.21, subdivision 2, is amended to read:
29.8 Subd. 2.
Treatment of levy. Notwithstanding sections 275.065, subdivision 3,
29.9and 276.04, the county may report the tax attributable to any levy to
new text begin fund public safety new text end
29.10
new text begin capital improvements or equipment projects approved by the Anoka County Joint Law new text end
29.11
new text begin Enforcement Council ornew text end pay principal and interest on bonds or notes issued under this
29.12section as a separate line item on the proposed property tax notice and the property tax
29.13statement. Notwithstanding any provision in chapter 275 or 373 to the contrary, bonds or
29.14notes issued by Anoka County under this section must not be included in the computation
29.15of the net debt of Anoka County.
29.16
new text begin EFFECTIVE DATE.new text end new text begin This section is effective retroactively for taxes payable in new text end
29.17
new text begin 2013 and thereafter and expires under Minnesota Statutes, section 383E.21, subdivision 3.new text end
29.18 Sec. 16. Laws 1999, chapter 243, article 14, section 5, subdivision 1, is amended to read:
29.19 Subdivision 1.
Board plan and program. The board shall adopt a comprehensive
29.20plan for the collection, treatment, and disposal of sewage in the district for a designated
29.21period the board deems proper and reasonable. The board shall prepare and adopt
29.22subsequent comprehensive plans for the collection, treatment, and disposal of sewage
29.23in the district for each succeeding designated period as the board deems proper and
29.24reasonable. All comprehensive plans of the district shall be subject to the planning
29.25and zoning authority of Scott county and in conformance with all planning and zoning
29.26ordinances of Scott county. The first plan, as modified by the board, and any subsequent
29.27plan shall take into account the preservation and best and most economic use of water and
29.28other natural resources in the area; the preservation, use, and potential for use of lands
29.29adjoining waters of the state to be used for the disposal of sewage; and the impact the
29.30disposal system will have on present and future land use in the area affected. In no case
29.31shall the comprehensive plan provide for more than 325
new text begin 364new text end connections to the disposal
29.32system. All connections must be charged a full assessment. Connections made after the
29.33initial assessment period ends must be charged an amount equal to the initial assessment
30.1plus an adjustment for inflation and plus any other charges determined to be reasonable
30.2and necessary by the board. Deferred assessments may be permitted, as provided for in
30.3Minnesota Statutes, chapter 429. The plans shall include the general location of needed
30.4interceptors and treatment works, a description of the area that is to be served by the
30.5various interceptors and treatment works, a long-range capital improvements program, and
30.6any other details as the board deems appropriate. In developing the plans, the board shall
30.7consult with persons designated for the purpose by governing bodies of any governmental
30.8unit within the district to represent the entities and shall consider the data, resources, and
30.9input offered to the board by the entities and any planning agency acting on behalf of one
30.10or more of the entities. Each plan, when adopted, must be followed in the district and may
30.11be revised as often as the board deems necessary.
30.12
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day after the governing body of new text end
30.13
new text begin the Cedar Lake area water and sanitary sewer district and its chief clerical officer timely new text end
30.14
new text begin complete their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3.new text end
30.15 Sec. 17.
new text begin HELENA TOWNSHIP, SCOTT COUNTY; REMOVAL OF new text end
30.16
new text begin SUBORDINATE SERVICE DISTRICT.new text end
30.17
new text begin Subdivision 1.new text end new text begin Application.new text end new text begin This section applies to the subordinate service district new text end
30.18
new text begin established in Helena Township, Scott County, for the Silver Maple Bay Estates, under new text end
30.19
new text begin Minnesota Statutes, chapter 365A.new text end
30.20
new text begin Subd. 2.new text end new text begin Special provision for removal of the district.new text end new text begin Notwithstanding the new text end
30.21
new text begin requirements of Minnesota Statutes, section 365A.095, subdivision 2, if the district is new text end
30.22
new text begin removed as provided in Minnesota Statutes, section 365A.095, subdivision 1, after all new text end
30.23
new text begin outstanding obligations of the district have been paid in full, the town board may vote to new text end
30.24
new text begin sell or use the surplus of any land or equipment, or the surplus of any tax revenue or service new text end
30.25
new text begin charge, or any part of it, collected from or associated with the district to connect the owners new text end
30.26
new text begin of any property within the discontinued district to another public sewer system. Any new text end
30.27
new text begin surplus not used to connect residents to such sewer system may be distributed equally to new text end
30.28
new text begin the owners of any property within the discontinued district that were charged the extra tax new text end
30.29
new text begin or service fee during the most recent tax year for which the tax or service fee was imposed. new text end
30.30
new text begin Any surplus not refunded under this section must be transferred to the town's general fund.new text end
30.31
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
30.32 Sec. 18.
new text begin CITY OF JACKSON; LIMITATION ON ABATEMENTS.new text end
31.1
new text begin Notwithstanding the provisions of Minnesota Statutes, section 469.1813, subdivision new text end
31.2
new text begin 8, the total amount of property taxes abated by the city of Jackson in any year under new text end
31.3
new text begin Minnesota Statutes, section 469.1813, may not exceed the greater of (1) ten percent of new text end
31.4
new text begin the city's net tax capacity for the taxes payable year to which the abatement applies; or new text end
31.5
new text begin (2) $240,000.new text end
31.6
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxes payable in 2015 through new text end
31.7
new text begin taxes payable in 2019.new text end
31.8 Sec. 19.
new text begin STUDY OF ENERGY PRODUCING SYSTEMS.new text end
31.9
new text begin (a) The commissioner of revenue shall prepare a report on the taxation of electric new text end
31.10
new text begin energy producing systems in the state of Minnesota, including both traditional and new text end
31.11
new text begin renewable energy sources. For purposes of this study, traditional sources include coal, new text end
31.12
new text begin nuclear, and natural gas production and renewable sources include, but are not limited to, new text end
31.13
new text begin solar, wind, biomass, and hydro.new text end
31.14
new text begin (b) The report must, to the extent practicable under the appropriation and the time new text end
31.15
new text begin available:new text end
31.16
new text begin (1) describe, analyze, and compare the various methods by which the personal and new text end
31.17
new text begin real property of energy producing systems, using both traditional and renewable energy new text end
31.18
new text begin sources, are taxed under the property tax;new text end
31.19
new text begin (2) describe, analyze, and compare the availability of any exclusions, exemptions, new text end
31.20
new text begin or payment-in-lieu of taxation arrangements that apply to the systems and relative tax new text end
31.21
new text begin and economic effects of the arrangements; new text end
31.22
new text begin (3) evaluate the extent to which host political subdivisions and communities are new text end
31.23
new text begin compensated under the existing Minnesota property tax system for the external costs new text end
31.24
new text begin that the various types of production facilities impose on the host political subdivisions new text end
31.25
new text begin and communities;new text end
31.26
new text begin (4) compare the net cost of property and other taxes per unit of energy produced in new text end
31.27
new text begin Minnesota compared to its border states, for both traditional and renewable energy sources;new text end
31.28
new text begin (5) develop and evaluate alternative tax or fee systems for appropriately new text end
31.29
new text begin compensating host political subdivisions and communities for the external costs imposed new text end
31.30
new text begin by the facilities; andnew text end
31.31
new text begin (6) make recommendations for the taxation of solar energy producing systems, new text end
31.32
new text begin including both real and personal property.new text end
31.33
new text begin (c) The commissioner shall report the findings of the study to the committees of the new text end
31.34
new text begin house of representatives and senate having jurisdiction over taxes by February 1, 2015, new text end
31.35
new text begin and file the report as required by Minnesota Statutes, section 3.195.new text end
32.1
new text begin (d) $150,000 is appropriated from the general fund in fiscal year 2015 to the new text end
32.2
new text begin commissioner of revenue for purposes of preparing the report under this section. This is a new text end
32.3
new text begin onetime appropriation and is not added to the base budget.new text end
32.4
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
32.5 Sec. 20.
new text begin STUDY OF NORTH DAKOTA OIL PRODUCTION; IMPACT ON new text end
32.6
new text begin MINNESOTA.new text end
32.7
new text begin (a) $250,000 in fiscal year 2015 is appropriated from the general fund to the new text end
32.8
new text begin commissioner of employment and economic development, in consultation with the new text end
32.9
new text begin commissioner of revenue and the commissioner of transportation, to finance a study and new text end
32.10
new text begin analysis of the effects of current and projected oil production in North Dakota on the new text end
32.11
new text begin Minnesota economy with special focus on the northwestern region of Minnesota and area new text end
32.12
new text begin border cities as provided in paragraph (b).new text end
32.13
new text begin (b) The study and analysis must address:new text end
32.14
new text begin (1) current and projected economic, fiscal, and demographic effects and issues;new text end
32.15
new text begin (2) direct and indirect costs and benefits and positive and negative effects, including new text end
32.16
new text begin those upon workforce, taxation, and transportation, including the transportation of new text end
32.17
new text begin passengers and agricultural products by railroads; andnew text end
32.18
new text begin (3) economic challenges and opportunities for economic growth or diversification.new text end
32.19
new text begin (c) The study must be objective, evidence-based, and designed to produce empirical new text end
32.20
new text begin data. Study data must be utilized to formulate policy recommendations on how the state, new text end
32.21
new text begin the northwestern region of the state, and border cities may respond to the challenges and new text end
32.22
new text begin opportunities for economic growth and financial investment that may be derived from the new text end
32.23
new text begin regional economic changes that are the result of oil production in North Dakota.new text end
32.24
new text begin (d) For the purposes of this section, "border cities" has the meaning given in new text end
32.25
new text begin Minnesota Statutes, section 469.1731.new text end
32.26
new text begin (e) The study and analysis must be conducted by an independent entity with new text end
32.27
new text begin demonstrated knowledge in the following areas:new text end
32.28
new text begin (1) the economy and demography of Minnesota;new text end
32.29
new text begin (2) the domestic and foreign oil industry; and new text end
32.30
new text begin (3) technologies, markets, and geopolitical factors that have an impact on current new text end
32.31
new text begin and future oil production in the region.new text end
32.32
new text begin (f) The commissioner shall report on the findings and recommendations of the study new text end
32.33
new text begin to the committees of the house of representatives and senate having jurisdiction over new text end
32.34
new text begin economic development, workforce issues, and taxation by February 15, 2015.new text end
33.1
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
33.2
ARTICLE 3
33.3
SALES, USE, AND EXCISE TAXES
33.4 Section 1. Minnesota Statutes 2013 Supplement, section 116J.8738, subdivision 2,
33.5is amended to read:
33.6 Subd. 2.
Qualified business. (a) A business is a qualified business if it satisfies the
33.7requirement of this paragraph and is not disqualified under the provisions of paragraph
33.8(b). To qualify, the business must:
33.9(1) have operated its trade or business in a city or cities in greater Minnesota for at
33.10least one year before applying under subdivision 3;
33.11(2) pay or agree to pay in the future each employee compensation, including benefits
33.12not mandated by law, that on an annualized basis equal at least 120 percent of the federal
33.13poverty level for a family of four;
33.14(3) plan and agree to expand its employment in one or more cities in greater Minnesota
33.15by the minimum number of employees required under subdivision 3, paragraph (c); and
33.16(4) have received certification from the commissioner under subdivision 3 that
33.17it is a qualified business.
33.18(b) A business is not a qualified business if it is either:
33.19(1) primarily engaged in making retail sales to purchasers who are physically present
33.20at the business's location or locations in greater Minnesota; or
33.21(2) a public utility, as defined in section
336B.01new text begin ; ornew text end
33.22
new text begin (3) primarily engaged in lobbying; gambling; entertainment; professional sports; new text end
33.23
new text begin political consulting; leisure; hospitality; or professional services provided by attorneys, new text end
33.24
new text begin accountants, business consultants, physicians, or health care consultantsnew text end .
33.25(c) The requirements in paragraph (a) that the business's operations and expansion
33.26be located in a city do not apply to an agricultural processing facility.
33.27
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
33.28 Sec. 2. Minnesota Statutes 2013 Supplement, section 116J.8738, subdivision 3, is
33.29amended to read:
33.30 Subd. 3.
Certification of qualified business. (a) A business may apply to the
33.31commissioner for certification as a qualified business under this section. The commissioner
33.32shall specify the form of the application, the manner and times for applying, and the
33.33information required to be included in the application. The commissioner may impose an
33.34application fee in an amount sufficient to defray the commissioner's cost of processing
34.1certifications. A business must file a copy of its application with the chief clerical officer
34.2of the city at the same time it applies to the commissioner. For an agricultural processing
34.3facility located outside the boundaries of a city, the business must file a copy of the
34.4application with the county auditor.
34.5(b) The commissioner shall certify each business as a qualified business that:
34.6(1) satisfies the requirements of subdivision 2;
34.7(2) the commissioner determines would not expand its operations in greater
34.8Minnesota without the tax incentives available under subdivision 4; and
34.9(3) enters a business subsidy agreement with the commissioner that pledges to
34.10satisfy the minimum expansion requirements of paragraph (c) within three years or less
34.11following execution of the agreement.
34.12The commissioner must act on an application within 60
new text begin 90 new text end days after its filing.
34.13Failure by the commissioner to take action within the 60-day
new text begin 90-daynew text end period is deemed
34.14approval of the application.
34.15(c) The following minimum expansion requirements apply, based on the number of
34.16employees of the business at locations in greater Minnesota:
34.17(1) a business that employs 50 or fewer full-time equivalent employees in greater
34.18Minnesota when the agreement is executed must increase its employment by five or more
34.19full-time equivalent employees;
34.20(2) a business that employs more than 50 but fewer than 200 full-time equivalent
34.21employees in greater Minnesota when the agreement is executed must increase the number
34.22of its full-time equivalent employees in greater Minnesota by at least ten percent; or
34.23(3) a business that employs 200 or more full-time equivalent employees in greater
34.24Minnesota when the agreement is executed must increase its employment by at least 21
34.25full-time equivalent employees
new text begin (c) The business must increase the number of full-time new text end
34.26
new text begin equivalent employees in greater Minnesota from the time the business subsidy agreement new text end
34.27
new text begin is executed by two employees or ten percent, whichever is greaternew text end .
34.28(d) The city, or a county for an agricultural processing facility located outside the
34.29boundaries of a city, in which the business proposes to expand its operations may file
34.30comments supporting or opposing the application with the commissioner. The comments
34.31must be filed within 30 days after receipt by the city of the application and may include a
34.32notice of any contribution the city or county intends to make to encourage or support the
34.33business expansion, such as the use of tax increment financing, property tax abatement,
34.34additional city or county services, or other financial assistance.
34.35(e) Certification of a qualified business is effective for the 12-year
new text begin seven-yearnew text end period
34.36beginning on the first day of the calendar month immediately following execution of
35.1the business subsidy agreement
new text begin the date that the commissioner informs the business of new text end
35.2
new text begin the award of the benefitnew text end .
35.3
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
35.4 Sec. 3. Minnesota Statutes 2013 Supplement, section 116J.8738, subdivision 4, is
35.5amended to read:
35.6 Subd. 4.
Available tax incentives. A qualified business is entitled to a sales tax
35.7exemption,
new text begin up to $2,000,000 annually and $10,000,000 during the total period of the new text end
35.8
new text begin agreement, new text end as provided in section
297A.68, subdivision 44, for purchases made during
35.9the period the business was certified as a qualified business under this section.
new text begin The new text end
35.10
new text begin commissioner has discretion to set the maximum amounts of the annual and total sales tax new text end
35.11
new text begin exemption allowed for each qualifying business as part of the business subsidy agreement.new text end
35.12
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
35.13 Sec. 4. Minnesota Statutes 2013 Supplement, section 289A.20, subdivision 4, is
35.14amended to read:
35.15 Subd. 4.
Sales and use tax. (a) The taxes imposed by chapter 297A are due and
35.16payable to the commissioner monthly on or before the 20th day of the month following the
35.17month in which the taxable event occurred, or following another reporting period as the
35.18commissioner prescribes or as allowed under section
289A.18, subdivision 4, paragraph
35.19(f) or (g), except that use taxes due on an annual use tax return as provided under section
35.20289A.11, subdivision 1
, are payable by April 15 following the close of the calendar year.
35.21 (b) A vendor having a liability of $120,000
new text begin $250,000new text end or more during a fiscal year
35.22ending June 30 must remit the June liability for the next year in the following manner:
35.23 (1) Two business days before June 30 of the year, the vendor must remit 90
new text begin 81.4new text end
35.24 percent of the estimated June liability to the commissioner.
35.25 (2) On or before August 20 of the year, the vendor must pay any additional amount
35.26of tax not remitted in June.
35.27 (c) A vendor having a liability of:
35.28 (1) $10,000 or more, but less than $120,000
new text begin $250,000new text end during a fiscal year ending
35.29June 30, 2013, and fiscal years thereafter, must remit by electronic means all liabilities
35.30on returns due for periods beginning in all subsequent calendar years on or before the
35.3120th day of the month following the month in which the taxable event occurred, or on
35.32or before the 20th day of the month following the month in which the sale is reported
35.33under section
289A.18, subdivision 4; or
36.1(2) $120,000
new text begin $250,000new text end or more, during a fiscal year ending June 30, 2009
new text begin 2013new text end ,
36.2and fiscal years thereafter, must remit by electronic means all liabilities in the manner
36.3provided in paragraph (a) on returns due for periods beginning in the subsequent calendar
36.4year, except for 90
new text begin 81.4new text end percent of the estimated June liability, which is due two business
36.5days before June 30. The remaining amount of the June liability is due on August 20.
36.6(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's
36.7religious beliefs from paying electronically shall be allowed to remit the payment by mail.
36.8The filer must notify the commissioner of revenue of the intent to pay by mail before
36.9doing so on a form prescribed by the commissioner. No extra fee may be charged to a
36.10person making payment by mail under this paragraph. The payment must be postmarked
36.11at least two business days before the due date for making the payment in order to be
36.12considered paid on a timely basis.
36.13
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxes remitted after May 30, 2014.new text end
36.14 Sec. 5. Minnesota Statutes 2012, section 289A.60, subdivision 15, is amended to read:
36.15 Subd. 15.
Accelerated payment of June sales tax liability; penalty for
36.16
underpayment. For payments made after December 31, 2006
new text begin 2013new text end , if a vendor is
36.17required by law to submit an estimation of June sales tax liabilities and 90
new text begin 81.4 new text end percent
36.18payment by a certain date, the vendor shall pay a penalty equal to ten percent of the
36.19amount of actual June liability required to be paid in June less the amount remitted in
36.20June. The penalty must not be imposed, however, if the amount remitted in June equals
36.21the lesser of 90
new text begin 81.4new text end percent of the preceding May's liability or 90
new text begin 81.4new text end percent of the
36.22average monthly liability for the previous calendar year.
36.23
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxes remitted after May 30, 2014.new text end
36.24 Sec. 6. Minnesota Statutes 2012, section 297A.67, subdivision 13a, is amended to read:
36.25 Subd. 13a.
Instructional materials. Instructional materials, other than textbooks,
36.26that are prescribed for use in conjunction with a course of study in a postsecondary school,
36.27college, university, or private career school to students who are regularly enrolled at such
36.28institutions are exempt. For purposes of this subdivision, "instructional materials" means
36.29materials required to be used directly in the completion of the course of study, including,
36.30but not limited to, interactive CDs, tapes,
new text begin digital audio works, digital audiovisual works, new text end
36.31and computer software.
36.32Instructional materials do not include general reference works or other items
36.33incidental to the instructional process such as pens, pencils, paper, folders, or computers.
37.1For purposes of this subdivision, "school" and "private career school" have the meanings
37.2given in subdivision 13.
37.3
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
37.4 Sec. 7. Minnesota Statutes 2012, section 297A.67, is amended by adding a subdivision
37.5to read:
37.6
new text begin Subd. 33.new text end new text begin Presentations accessed as digital audio and audiovisual works.new text end
37.7
new text begin The charge for a live or prerecorded presentation, such as a lecture, seminar, new text end
37.8
new text begin workshop, or course, where participants access the presentation as a digital audio new text end
37.9
new text begin work or digital audiovisual work, and are connected to the presentation via the new text end
37.10
new text begin Internet, telecommunications equipment or other device that transfers the presentation new text end
37.11
new text begin electronically, is exempt if:new text end
37.12
new text begin (1) participants and the presenter, during the time that participants access the new text end
37.13
new text begin presentation, are able to give, receive, and discuss the presentation with each other, new text end
37.14
new text begin although the amount of interaction and when in the presentation the interaction occurs new text end
37.15
new text begin may be limited by the presenter; andnew text end
37.16
new text begin (2) for those presentations where participants are given the option to attend the new text end
37.17
new text begin same presentation in person:new text end
37.18
new text begin (i) any limitations on the amount of interaction and when it occurs during the new text end
37.19
new text begin presentation are the same for those participants accessing the presentation electronically new text end
37.20
new text begin as those attending in person; andnew text end
37.21
new text begin (ii) the admission to the in person presentation is not subject to tax under this chapter.new text end
37.22
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for sales and purchases made after new text end
37.23
new text begin June 30, 2014.new text end
37.24 Sec. 8. Minnesota Statutes 2012, section 297A.68, is amended by adding a subdivision
37.25to read:
37.26
new text begin Subd. 3a.new text end new text begin Coin-operated entertainment and amusement devices.new text end new text begin Coin-operated new text end
37.27
new text begin entertainment and amusement devices including, but not limited to, fortune-telling new text end
37.28
new text begin machines, cranes, foosball and pool tables, video and pinball games, batting cages, rides, new text end
37.29
new text begin photo or video booths, and jukeboxes, are exempt when purchased by retailers selling new text end
37.30
new text begin admission to places of amusement and making available amusement devices as provided new text end
37.31
new text begin in section 297A.61, subdivision 3, paragraph (g), clause (1). Coin-operated entertainment new text end
37.32
new text begin and amusement devices do not include vending machines, lottery devices, or gaming new text end
37.33
new text begin devices as described in chapters 297E and 349.new text end
38.1
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for sales and purchases made after new text end
38.2
new text begin June 30, 2014.new text end
38.3 Sec. 9. Minnesota Statutes 2013 Supplement, section 297A.68, subdivision 42, is
38.4amended to read:
38.5 Subd. 42.
Qualified data centers. (a) Purchases of enterprise information
38.6technology equipment and computer software for use in a qualified data center, or a
38.7qualified refurbished data center, are exempt
new text begin , except that computer software maintenance new text end
38.8
new text begin agreements are exempt for purchases made after June 30, 2013new text end . The tax on purchases
38.9exempt under this paragraph must be imposed and collected as if the rate under section
38.10297A.62, subdivision 1
, applied, and then refunded after June 30, 2013, in the manner
38.11provided in section
297A.75. This exemption includes enterprise information technology
38.12equipment and computer software purchased to replace or upgrade enterprise information
38.13technology equipment and computer software in a qualified data center, or a qualified
38.14refurbished data center.
38.15(b) Electricity used or consumed in the operation of a qualified data center
new text begin or new text end
38.16
new text begin qualified refurbished data center new text end is exempt.
38.17(c) For purposes of this subdivision, "qualified data center, or a qualified refurbished
38.18data center, " means a facility in Minnesota:
38.19(1) that is comprised of one or more buildings that consist in the aggregate of
38.20at least 25,000 square feet, and that are located on a single parcel or on contiguous
38.21parcels, where the total cost of construction or refurbishment, investment in enterprise
38.22information technology equipment, and computer software is at least $30,000,000 within a
38.2348-month period
new text begin . The 48-month period begins no sooner than July 1, 2012, except that new text end
38.24
new text begin costs for computer software maintenance agreements purchased before July 1, 2013, are new text end
38.25
new text begin not included in determining if the $30,000,000 threshold has been metnew text end ;
38.26(2) that is constructed or substantially refurbished after June 30, 2012, where
38.27"substantially refurbished" means that at least 25,000 square feet have been rebuilt or
38.28modified, including:
38.29(i) installation of enterprise information technology equipment,
new text begin ;new text end environmental
38.30control, computer software, and energy efficiency improvements; and
38.31(ii) building improvements; and
38.32(3) that is used to house enterprise information technology equipment, where the
38.33facility has the following characteristics:
38.34(i) uninterruptible power supplies, generator backup power, or both;
38.35(ii) sophisticated fire suppression and prevention systems; and
39.1(iii) enhanced security. A facility will be considered to have enhanced security if it
39.2has restricted access to the facility to selected personnel; permanent security guards; video
39.3camera surveillance; an electronic system requiring pass codes, keycards, or biometric
39.4scans, such as hand scans and retinal or fingerprint recognition; or similar security features.
39.5In determining whether the facility has the required square footage, the square footage
39.6of the following spaces shall be included if the spaces support the operation of enterprise
39.7information technology equipment: office space, meeting space, and mechanical and
39.8other support facilities. For purposes of this subdivision, "computer software" includes,
39.9but is not limited to, software utilized or loaded at the
new text begin anew text end qualified data center
new text begin or qualified new text end
39.10
new text begin refurbished data centernew text end , including maintenance, licensing, and software customization.
39.11(d) For purposes of this subdivision, a "qualified refurbished data center" means an
39.12existing facility that qualifies as a data center under paragraph (c), clauses (2) and (3), but
39.13that is comprised of one or more buildings that consist in the aggregate of at least 25,000
39.14square feet, and that are located on a single parcel or contiguous parcels, where the total
39.15cost of construction or refurbishment, investment in enterprise information technology
39.16equipment, and computer software is at least $50,000,000 within a 24-month period.
39.17(e) For purposes of this subdivision, "enterprise information technology equipment"
39.18means computers and equipment supporting computing, networking, or data storage,
39.19including servers and routers. It includes, but is not limited to: cooling systems,
39.20cooling towers, and other temperature control infrastructure; power infrastructure for
39.21transformation, distribution, or management of electricity used for the maintenance and
39.22operation of a qualified data center
new text begin or qualified refurbished data centernew text end , including but
39.23not limited to exterior dedicated business-owned substations, backup power generation
39.24systems, battery systems, and related infrastructure; and racking systems, cabling, and
39.25trays, which are necessary for the
new text begin anew text end maintenance and operation of the qualified data center
39.26
new text begin or qualified refurbished data centernew text end .
39.27(f) A qualified data center
new text begin or qualified refurbished data center new text end may claim the
39.28exemptions in this subdivision for purchases made either within 20 years of the date of
39.29its first purchase qualifying for the exemption under paragraph (a), or by June 30, 2042,
39.30whichever is earlier.
39.31(g) The purpose of this exemption is to create jobs in the construction and data
39.32center industries.
39.33(h) This subdivision is effective for sales and purchases made after June 30, 2012,
39.34and before July 1, 2042.
39.35
new text begin (i)(1) The commissioner of employment and economic development must certify new text end
39.36
new text begin to the commissioner of revenue, in a format approved by the commissioner of revenue, new text end
40.1
new text begin when a qualified data center has met the requirements under paragraph (c) or a qualified new text end
40.2
new text begin refurbished data center has met the requirements under paragraph (d). The certification new text end
40.3
new text begin must provide the following information regarding each qualified data center or qualified new text end
40.4
new text begin refurbished data center:new text end
40.5
new text begin (i) the total square footage amount;new text end
40.6
new text begin (ii) the total amount of construction or refurbishment costs and the total amount of new text end
40.7
new text begin qualifying investments in enterprise information technology equipment and computer new text end
40.8
new text begin software; andnew text end
40.9
new text begin (iii) the beginning and ending of the applicable period under either paragraph (c) or new text end
40.10
new text begin (d) in which the qualifying expenditures and purchases under item (ii) were made, but in new text end
40.11
new text begin no case shall the period begin before July 1, 2012; new text end
40.12
new text begin (2) Any refund for sales tax paid on qualifying purchases under this subdivision must new text end
40.13
new text begin not be issued unless the commissioner of revenue has received the certification required new text end
40.14
new text begin under clause (1) either from the commissioner of employment and economic development new text end
40.15
new text begin or the qualified data center or qualified refurbished data center claiming the refund; andnew text end
40.16
new text begin (3) The commissioner of employment and economic development must annually new text end
40.17
new text begin notify the commissioner of revenue of the qualified data centers that are projected to meet new text end
40.18
new text begin the requirements under paragraph (c) and the qualified refurbished data centers that are new text end
40.19
new text begin projected to meet the requirements under paragraph (d) in each of the next four years. The new text end
40.20
new text begin notification must provide the information required under clause (1), items (i) to (iii), for new text end
40.21
new text begin each qualified data center or qualified refurbished data center.new text end
40.22
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
40.23 Sec. 10. Minnesota Statutes 2013 Supplement, section 297A.68, subdivision 44,
40.24is amended to read:
40.25 Subd. 44.
Greater Minnesota business expansions. (a) Purchases and use of
40.26tangible personal property or taxable services by a qualified business, as defined in section
40.27116J.8738
, are exempt if:
40.28(1) the business subsidy agreement provides that the exemption under this
40.29subdivision applies;
40.30(2) the property or services are primarily used or consumed
new text begin at the facility new text end in greater
40.31Minnesota
new text begin identified in the business subsidy agreementnew text end ; and
40.32(3) the purchase was made and delivery received during the duration of the
40.33certification of the business as a qualified business under section
116J.8738.
40.34(b) Purchase and use of construction materials and supplies used or consumed in,
40.35and equipment incorporated into, the construction of improvements to real property in
41.1greater Minnesota are exempt if the improvements after completion of construction are
41.2to be used in the conduct of the trade or business of the qualified business, as defined in
41.3section
116J.8738. This exemption applies regardless of whether the purchases are made
41.4by the business or a contractor.
41.5(c) The exemptions under this subdivision apply to a local sales and use tax.
41.6(d) The tax on purchases imposed under this subdivision must be imposed and
41.7collected as if the rate under section
297A.62 applied, and then refunded in the manner
41.8provided in section
297A.75.
new text begin The total amount refunded for a facility over the certification new text end
41.9
new text begin period is limited to the amount listed in the business subsidy agreement. new text end No more than
41.10$7,000,000 may be refunded in a fiscal year for all purchases under this subdivision.
41.11Refunds must be allocated on a first-come, first-served basis. If more than $7,000,000 of
41.12eligible claims are made in a fiscal year, claims by qualified businesses carry over to the
41.13next fiscal year, and the commissioner must first allocate refunds to qualified businesses
41.14eligible for a refund in the preceding fiscal year. Any portion of the balance of funds
41.15allocated for refunds under this paragraph does not cancel and shall be carried forward to
41.16and available for refunds in subsequent fiscal years.
new text begin Notwithstanding section 297A.75, new text end
41.17
new text begin subdivision 4, for an eligible refund claim that carries over to a subsequent fiscal year, the new text end
41.18
new text begin interest on the amount carried over must be paid on the refund no sooner than from 90 new text end
41.19
new text begin days after July 1 of the fiscal year in which funds are available for the eligible claim.new text end
41.20
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
41.21 Sec. 11. Minnesota Statutes 2013 Supplement, section 297A.70, subdivision 2, is
41.22amended to read:
41.23 Subd. 2.
Sales to government. (a) All sales, except those listed in paragraph (b),
41.24to the following governments and political subdivisions, or to the listed agencies or
41.25instrumentalities of governments and political subdivisions, are exempt:
41.26(1) the United States and its agencies and instrumentalities;
41.27(2) school districts, local governments, the University of Minnesota, state universities,
41.28community colleges, technical colleges, state academies, the Perpich Minnesota Center for
41.29Arts Education, and an instrumentality of a political subdivision that is accredited as an
41.30optional/special function school by the North Central Association of Colleges and Schools;
41.31(3) hospitals and nursing homes owned and operated by political subdivisions of
41.32the state of tangible personal property and taxable services used at or by hospitals and
41.33nursing homes;
42.1(4)
new text begin notwithstanding paragraph (d), the sales and purchases by new text end the Metropolitan
42.2Council, for its purchases of vehicles and repair parts to equip operations provided for in
42.3section
473.4051new text begin are exempt through December 31, 2016new text end ;
42.4(5) other states or political subdivisions of other states, if the sale would be exempt
42.5from taxation if it occurred in that state; and
42.6(6) public libraries, public library systems, multicounty, multitype library systems
42.7as defined in section
134.001, county law libraries under chapter 134A, state agency
42.8libraries, the state library under section
480.09, and the Legislative Reference Library.
42.9(b) This exemption does not apply to the sales of the following products and services:
42.10(1) building, construction, or reconstruction materials purchased by a contractor
42.11or a subcontractor as a part of a lump-sum contract or similar type of contract with a
42.12guaranteed maximum price covering both labor and materials for use in the construction,
42.13alteration, or repair of a building or facility;
42.14(2) construction materials purchased by tax exempt entities or their contractors to
42.15be used in constructing buildings or facilities which will not be used principally by the
42.16tax exempt entities;
42.17(3) the leasing of a motor vehicle as defined in section
297B.01, subdivision 11,
42.18except for leases entered into by the United States or its agencies or instrumentalities;
42.19(4) lodging as defined under section
297A.61, subdivision 3, paragraph (g), clause
42.20(2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in section
42.21297A.67, subdivision 2
, except for lodging, prepared food, candy, soft drinks, and alcoholic
42.22beverages purchased directly by the United States or its agencies or instrumentalities; or
42.23(5) goods or services purchased by a local government as inputs to goods and
42.24services that are generally provided by a private business and the purchases would be
42.25taxable if made by a private business engaged in the same activity
new text begin a liquor store, gas or new text end
42.26
new text begin electric utility, solid waste hauling service, solid waste recycling service, landfill, golf new text end
42.27
new text begin course, marina, campground, cafe, or laundromatnew text end .
42.28(c) As used in this subdivision, "school districts" means public school entities and
42.29districts of every kind and nature organized under the laws of the state of Minnesota, and
42.30any instrumentality of a school district, as defined in section
471.59.
42.31(d) As used in this subdivision
new text begin For purposes of the exemption granted under this new text end
42.32
new text begin subdivisionnew text end , "local governments" means
new text begin has the following meaning:new text end
42.33
new text begin (1) for the period prior to January 1, 2016, local governments means statutory or new text end
42.34
new text begin home rule charternew text end cities, counties, and townships
new text begin ;new text end
42.35
new text begin (2) for the period of January 1, 2016, to December 31, 2016, local governments new text end
42.36
new text begin means statutory or home rule charter cities, counties, and townships; special districts as new text end
43.1
new text begin defined under section 6.465, except for the Metropolitan Council under sections 473.123 new text end
43.2
new text begin to 473.549; any instrumentality of a statutory or home rule charter city, county, or new text end
43.3
new text begin township as defined in section 471.59; and any joint powers board or organization created new text end
43.4
new text begin under section 471.59; andnew text end
43.5
new text begin (3) beginning January 1, 2017, local governments means statutory or home rule new text end
43.6
new text begin charter cities, counties, and townships; special districts as defined under section 6.465; any new text end
43.7
new text begin instrumentality of a statutory or home rule charter city, county, or township as defined in new text end
43.8
new text begin section 471.59; and any joint powers board or organization created under section 471.59new text end .
43.9(e) As used in this subdivision, "goods or services generally provided by a private
43.10business" include, but are not limited to, goods or services provided by liquor stores, gas
43.11and electric utilities, golf courses, marinas, health and fitness centers, campgrounds, cafes,
43.12and laundromats. "Goods or services generally provided by a private business" do not
43.13include housing services, sewer and water services, wastewater treatment, ambulance and
43.14other public safety services, correctional services, chore or homemaking services provided
43.15to elderly or disabled individuals, or road and street maintenance or lighting.
43.16
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for sales and purchases made after new text end
43.17
new text begin June 30, 2014.new text end
43.18 Sec. 12. Minnesota Statutes 2013 Supplement, section 297A.70, subdivision 13,
43.19is amended to read:
43.20 Subd. 13.
Fund-raising sales by or for nonprofit groups. (a) The following
43.21sales by the specified organizations for fund-raising purposes are exempt, subject to the
43.22limitations listed in paragraph (b):
43.23(1) all sales made by a nonprofit organization that exists solely for the purpose of
43.24providing educational or social activities for young people primarily age 18 and under;
43.25(2) all sales made by an organization that is a senior citizen group or association of
43.26groups if (i) in general it limits membership to persons age 55 or older; (ii) it is organized
43.27and operated exclusively for pleasure, recreation, and other nonprofit purposes; and (iii)
43.28no part of its net earnings inures to the benefit of any private shareholders;
43.29(3) the sale or use of tickets or admissions to a golf tournament held in Minnesota if
43.30the beneficiary of the tournament's net proceeds qualifies as a tax-exempt organization
43.31under section 501(c)(3) of the Internal Revenue Code; and
43.32(4) sales of candy sold for fund-raising purposes by a nonprofit organization that
43.33provides educational and social activities primarily for young people age 18 and under.
43.34(b) The exemptions listed in paragraph (a) are limited in the following manner:
44.1(1) the exemption under paragraph (a), clauses (1) and (2), applies only if
new text begin to the first new text end
44.2
new text begin $20,000 ofnew text end the gross annual receipts of the organization from fund-raising do not exceed
44.3$10,000; and
44.4(2) the exemption under paragraph (a), clause (1), does not apply if the sales are
44.5derived from admission charges or from activities for which the money must be deposited
44.6with the school district treasurer under section
123B.49, subdivision 2, or be recorded in
44.7the same manner as other revenues or expenditures of the school district under section
44.8123B.49, subdivision 4
.
44.9(c) Sales of tangible personal property and services are exempt if the entire proceeds,
44.10less the necessary expenses for obtaining the property or services, will be contributed to
44.11a registered combined charitable organization described in section
43A.50, to be used
44.12exclusively for charitable, religious, or educational purposes, and the registered combined
44.13charitable organization has given its written permission for the sale. Sales that occur over
44.14a period of more than 24 days per year are not exempt under this paragraph.
44.15(d) For purposes of this subdivision, a club, association, or other organization of
44.16elementary or secondary school students organized for the purpose of carrying on sports,
44.17educational, or other extracurricular activities is a separate organization from the school
44.18district or school for purposes of applying the $10,000
new text begin $20,000new text end limit.
44.19
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for sales and purchases made after new text end
44.20
new text begin December 31, 2014.new text end
44.21 Sec. 13. Minnesota Statutes 2013 Supplement, section 297A.70, subdivision 14,
44.22is amended to read:
44.23 Subd. 14.
Fund-raising events sponsored by nonprofit groups. (a) Sales of
44.24tangible personal property or services at, and admission charges for fund-raising events
44.25sponsored by, a nonprofit organization are exempt if:
44.26(1) all gross receipts are recorded as such, in accordance with generally accepted
44.27accounting practices, on the books of the nonprofit organization; and
44.28(2) the entire proceeds, less the necessary expenses for the event, will be used solely
44.29and exclusively for charitable, religious, or educational purposes. Exempt sales include
44.30the sale of prepared food, candy, and soft drinks at the fund-raising event.
44.31(b) This exemption is limited in the following manner:
44.32(1) it does not apply to admission charges for events involving bingo or other
44.33gambling activities or to charges for use of amusement devices involving bingo or other
44.34gambling activities;
45.1(2) all gross receipts are taxable if the profits are not used solely and exclusively for
45.2charitable, religious, or educational purposes;
45.3(3) it does not apply unless the organization keeps a separate accounting record,
45.4including receipts and disbursements from each fund-raising event that documents all
45.5deductions from gross receipts with receipts and other records;
45.6(4) it does not apply to any sale made by or in the name of a nonprofit corporation as
45.7the active or passive agent of a person that is not a nonprofit corporation;
45.8(5) all gross receipts are taxable if fund-raising events exceed 24 days per year;
45.9(6) it does not apply to fund-raising events conducted on premises leased for more
45.10than five days but less than 30 days; and
45.11(7) it does not apply if the risk of the event is not borne by the nonprofit organization
45.12and the benefit to the nonprofit organization is less than the total amount of the state and
45.13local tax revenues forgone by this exemption.
45.14(c) For purposes of this subdivision, a "nonprofit organization" means any unit of
45.15government, corporation, society, association, foundation, or institution organized and
45.16operated for charitable, religious, educational, civic, fraternal, and senior citizens' or
45.17veterans' purposes, no part of the net earnings of which inures to the benefit of a private
45.18individual.
45.19
new text begin (d) For purposes of this subdivision, "fund-raising events" means activities of new text end
45.20
new text begin limited duration, not regularly carried out in the normal course of business, that attract new text end
45.21
new text begin patrons for community, social, and entertainment purposes, such as auctions, bake sales, new text end
45.22
new text begin ice cream socials, block parties, carnivals, competitions, concerts, concession stands, new text end
45.23
new text begin craft sales, bazaars, dinners, dances, door-to-door sales of merchandise, fairs, fashion new text end
45.24
new text begin shows, festivals, galas, special event workshops, sporting activities such as marathons and new text end
45.25
new text begin tournaments, and similar events. Fund-raising events do not include the operation of a new text end
45.26
new text begin regular place of business in which services are provided or sales are made during regular new text end
45.27
new text begin hours such as bookstores, thrift stores, gift shops, restaurants, ongoing Internet sales, new text end
45.28
new text begin regularly scheduled classes, or other activities carried out in the normal course of business.new text end
45.29
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
45.30 Sec. 14. Minnesota Statutes 2012, section 297A.70, is amended by adding a
45.31subdivision to read:
45.32
new text begin Subd. 19.new text end new text begin Nonprofit snowmobile clubs; machinery and equipment.new text end new text begin Sales of new text end
45.33
new text begin tangible personal property to a nonprofit snowmobile club that is used primarily and new text end
45.34
new text begin directly for the grooming of state or grant-in-aid snowmobile trails are exempt. The new text end
45.35
new text begin exemption applies to grooming machines, attachments, other associated accessories, new text end
46.1
new text begin and repair parts. A nonprofit snowmobile club is eligible for the exemption under this new text end
46.2
new text begin subdivision if it received, in the current year or in the previous three-year period, a state new text end
46.3
new text begin grant-in-aid maintenance and grooming grant administered by the Department of Natural new text end
46.4
new text begin Resources by applying for the grant with a local unit of government sponsor.new text end
46.5
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for sales and purchases made after new text end
46.6
new text begin June 30, 2014.new text end
46.7 Sec. 15. Minnesota Statutes 2013 Supplement, section 297F.05, subdivision 1, is
46.8amended to read:
46.9 Subdivision 1.
Rates; cigarettes. A tax is imposed upon the sale of cigarettes in
46.10this state, upon having cigarettes in possession in this state with intent to sell, upon any
46.11person engaged in business as a distributor, and upon the use or storage by consumers, at
46.12the following rates:
new text begin rate ofnew text end
46.13(1) on cigarettes weighing not more than three pounds per thousand, 141.5 mills
new text begin , new text end
46.14
new text begin or 14.15 centsnew text end on each such cigarette; and
46.15(2) on cigarettes weighing more than three pounds per thousand, 283 mills on each
46.16such cigarette.
46.17
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2014.new text end
46.18 Sec. 16. Minnesota Statutes 2012, section 297F.09, subdivision 10, is amended to read:
46.19 Subd. 10.
Accelerated tax payment; cigarette or tobacco products distributor.
46.20 A cigarette or tobacco products distributor having a liability of $120,000
new text begin $250,000new text end or
46.21more during a fiscal year ending June 30, shall remit the June liability for the next year
46.22in the following manner:
46.23 (a) Two business days before June 30 of the year, the distributor shall remit the
46.24actual May liability and 90
new text begin 81.4new text end percent of the estimated June liability to the commissioner
46.25and file the return in the form and manner prescribed by the commissioner.
46.26 (b) On or before August 18 of the year, the distributor shall submit a return showing
46.27the actual June liability and pay any additional amount of tax not remitted in June. A
46.28penalty is imposed equal to ten percent of the amount of June liability required to be paid
46.29in June, less the amount remitted in June. However, the penalty is not imposed if the
46.30amount remitted in June equals the lesser of:
46.31 (1) 90
new text begin 81.4new text end percent of the actual June liability; or
46.32 (2) 90
new text begin 81.4new text end percent of the preceding May's
new text begin Maynew text end liability.
46.33
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxes remitted after May 30, 2014.new text end
47.1 Sec. 17. Minnesota Statutes 2012, section 297G.03, is amended by adding a
47.2subdivision to read:
47.3
new text begin Subd. 5.new text end new text begin Microdistillery credit.new text end new text begin (a) A qualified distiller producing distilled spirits is new text end
47.4
new text begin entitled to a tax credit of $1.33 per liter on 100,000 liters sold in any fiscal year beginning new text end
47.5
new text begin July 1. A qualified distiller may take the credit on the 18th day of each month, but the total new text end
47.6
new text begin credit allowed may not exceed in any fiscal year the lesser of:new text end
47.7
new text begin (1) the liability for tax; ornew text end
47.8
new text begin (2) $133,000.new text end
47.9
new text begin (b) For purposes of this subdivision, "qualified distiller" means a microdistillery new text end
47.10
new text begin qualifying under section 340A.101, subdivision 17a, in the calendar year immediately new text end
47.11
new text begin preceding the calendar year for which the credit under this subdivision is claimed.new text end
47.12
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2014.new text end
47.13 Sec. 18.
new text begin [297G.032] MICRODISTILLERIES.new text end
47.14
new text begin A microdistillery, licensed under section 340A.301, is a wholesaler for purposes new text end
47.15
new text begin of the excise tax imposed on distilled spirits given by the microdistillery as samples or new text end
47.16
new text begin sold in cocktail rooms permitted under chapter 340A. Returns must be made in a form new text end
47.17
new text begin and manner prescribed by the commissioner, and must contain any other information new text end
47.18
new text begin required by the commissioner.new text end
47.19
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2014.new text end
47.20 Sec. 19. Minnesota Statutes 2012, section 297G.09, subdivision 9, is amended to read:
47.21 Subd. 9.
Accelerated tax payment; penalty. A person liable for tax under this
47.22chapter having a liability of $120,000
new text begin $250,000new text end or more during a fiscal year ending June
47.2330, shall remit the June liability for the next year in the following manner:
47.24 (a) Two business days before June 30 of the year, the taxpayer shall remit the actual
47.25May liability and 90
new text begin 81.4new text end percent of the estimated June liability to the commissioner and
47.26file the return in the form and manner prescribed by the commissioner.
47.27 (b) On or before August 18 of the year, the taxpayer shall submit a return showing
47.28the actual June liability and pay any additional amount of tax not remitted in June. A
47.29penalty is imposed equal to ten percent of the amount of June liability required to be paid
47.30in June less the amount remitted in June. However, the penalty is not imposed if the
47.31amount remitted in June equals the lesser of:
47.32 (1) 90
new text begin 81.4new text end percent of the actual June liability; or
47.33 (2) 90
new text begin 81.4new text end percent of the preceding May liability.
48.1
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxes remitted after May 30, 2014.new text end
48.2 Sec. 20. Minnesota Statutes 2013 Supplement, section 360.531, subdivision 2, is
48.3amended to read:
48.4 Subd. 2.
Rate. The tax shall be as follows:
48.5
Base Price
Tax
48.6
48.7
Under $499,999
new text begin Not over $500,000new text end
$100
48.8
48.9
new text begin over new text end $500,000 to $999,999
new text begin but not over $1,000,000new text end
$200
48.10
48.11
new text begin over new text end $1,000,000 to $2,499,999
new text begin but not over $2,500,000new text end
$2,000
48.12
48.13
new text begin over new text end $2,500,000 to $4,999,999
new text begin but not over $5,000,000new text end
$4,000
48.14
48.15
new text begin over new text end $5,000,000 to $7,499,999
new text begin but not over $7,500,000new text end
$7,500
48.16
48.17
new text begin over new text end $7,500,000 to $9,999,999
new text begin but not over $10,000,000new text end
$10,000
48.18
48.19
new text begin over new text end $10,000,000 to $12,499,999
new text begin but not over $12,500,000new text end
$12,500
48.20
48.21
new text begin over new text end $12,500,000 to $14,999,999
new text begin but not over $15,000,000new text end
$15,000
48.22
48.23
new text begin over new text end $15,000,000 to $17,499,999
new text begin but not over $17,500,000new text end
$17,500
48.24
48.25
new text begin over new text end $17,500,000 to $19,999,999
new text begin but not over $20,000,000new text end
$20,000
48.26
48.27
new text begin over new text end $20,000,000 to $22,499,999
new text begin but not over $22,500,000new text end
$22,500
48.28
48.29
new text begin over new text end $22,500,000 to $24,999,999
new text begin but not over $25,000,000new text end
$25,000
48.30
48.31
new text begin over new text end $25,000,000 to $27,499,999
new text begin but not over $27,500,000new text end
$27,500
48.32
48.33
new text begin over new text end $27,500,000 to $29,999,999
new text begin but not over $30,000,000new text end
$30,000
48.34
48.35
new text begin over new text end $30,000,000 to $39,999,999
new text begin but not over $40,000,000new text end
$50,000
48.36
new text begin over new text end $40,000,000 and over
$75,000
48.37
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2014, and applies to aircraft new text end
48.38
new text begin tax due on or after that date.new text end
48.39 Sec. 21. Laws 1980, chapter 511, section 1, subdivision 2, as amended by Laws 1991,
48.40chapter 291, article 8, section 22, Laws 1998, chapter 389, article 8, section 25, Laws
48.412003, First Special Session chapter 21, article 8, section 11, and Laws 2008, chapter
48.42154, article 5, section 2, is amended to read:
49.1 Subd. 2.
new text begin (a) new text end Notwithstanding Minnesota Statutes, section
477A.016, or any
49.2other law, ordinance, or city charter provision to the contrary, the city of Duluth may,
49.3by ordinance, impose an additional sales tax of up to two and one-quarter
new text begin one and new text end
49.4
new text begin three-quarternew text end percent on sales transactions which are described in Minnesota Statutes 2000,
49.5section
297A.01, subdivision 3, clause (c). When the city council determines that the taxes
49.6imposed under this subdivision and under Laws 1998, chapter 389, article 8, section 26, at a
49.7rate of one-half of one percent have produced revenue sufficient to pay (1) the debt service
49.8on bonds in a principal amount of $8,000,000 issued for capital improvements to the
49.9Duluth Entertainment and Convention Center, and (2) debt service on outstanding bonds
49.10originally issued in the principal amount of $4,970,000 to finance capital improvements to
49.11the Great Lakes Aquarium since the imposition of the taxes at the rate of one and one-half
49.12percent, the rate of the tax under this subdivision is reduced by one-half of one percent.
49.13 The imposition of this tax shall not be subject to voter referendum under either state law
49.14or city charter provisions. When the city council determines that the taxes imposed under
49.15this subdivision
new text begin paragraphnew text end at a rate of three-quarters of one percent and other sources of
49.16revenue produce revenue sufficient to pay debt service on bonds in the principal amount
49.17of $40,285,000 plus issuance and discount costs, issued for capital improvements at the
49.18Duluth Entertainment and Convention Center, which include a new arena, the rate of tax
49.19under this subdivision must be reduced by three-quarters of one percent.
49.20
new text begin (b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes, new text end
49.21
new text begin section 477A.016, or any other law, ordinance, or city charter provision to the contrary, new text end
49.22
new text begin the city of Duluth may, by ordinance, impose an additional sales tax of up to one-half of new text end
49.23
new text begin one percent on sales transactions which are described in Minnesota Statutes 2000, section new text end
49.24
new text begin 297A.01, subdivision 3, clause (c). This tax expires when the city council determines new text end
49.25
new text begin that the tax imposed under this paragraph, along with the tax imposed under section new text end
49.26
new text begin 22, paragraph (b), has produced revenues sufficient to pay the debt service on bonds new text end
49.27
new text begin in a principal amount of no more than $18,000,000, plus issuance and discount costs, new text end
49.28
new text begin to finance capital improvements to public facilities to support tourism and recreational new text end
49.29
new text begin activities in that portion of the city west of 34th Avenue West.new text end
49.30
new text begin (c) The city of Duluth may sell and issue up to $18,000,000 in general obligation new text end
49.31
new text begin bonds under Minnesota Statutes, chapter 475, plus an additional amount to pay for the new text end
49.32
new text begin costs of issuance and any premiums. The proceeds may be used to finance capital new text end
49.33
new text begin improvements to public facilities that support tourism and recreational activities in the new text end
49.34
new text begin portion of the city west of 34th Avenue West, as described in paragraph (b). The issuance new text end
49.35
new text begin of the bonds is subject to the provisions of Minnesota Statutes, chapter 475, except no new text end
49.36
new text begin election shall be required unless required by the city charter. The bonds shall not be new text end
50.1
new text begin included in computing net debt. The revenues from the taxes that the city of Duluth may new text end
50.2
new text begin impose under paragraph (b) and under section 22, paragraph (b), may be pledged to pay new text end
50.3
new text begin principal of and interest on such bonds.new text end
50.4
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day after the governing body of new text end
50.5
new text begin the city of Duluth and its chief clerical officer comply with Minnesota Statutes, section new text end
50.6
new text begin 645.021, subdivisions 2 and 3.new text end
50.7 Sec. 22. Laws 1980, chapter 511, section 2, as amended by Laws 1998, chapter 389,
50.8article 8, section 26, and Laws 2003, First Special Session chapter 21, article 8, section
50.912, is amended to read:
50.10 Sec. 22.
CITY OF DULUTH; TAX ON RECEIPTS BY HOTELS AND
50.11
MOTELS.
50.12
new text begin (a) new text end Notwithstanding Minnesota Statutes, section
477A.016, or any other law, or
50.13ordinance, or city charter provision to the contrary, the city of Duluth may, by ordinance,
50.14impose an additional tax of one and one-half percent upon the gross receipts from the
50.15sale of lodging for periods of less than 30 days in hotels and motels located in the city.
50.16When the city council determines that the taxes imposed under this section and section 25
50.17at a rate of one-half of one percent have produced revenue sufficient to pay (1) the debt
50.18service on bonds in a principal amount of $8,000,000 issued for capital improvements
50.19for the Duluth Entertainment and Convention Center, and (2) the debt service on
50.20outstanding bonds originally issued in the principal amount of $4,970,000 to finance
50.21capital improvements to the Great Lakes Aquarium since the imposition of the taxes at the
50.22rate of one and one-half percent, the rate of the tax under this section is reduced to one
50.23percent. The tax shall be collected in the same manner as the tax set forth in the Duluth
50.24city charter, section 54(d), paragraph one. The imposition of this tax shall not be subject to
50.25voter referendum under either state law or city charter provisions.
50.26
new text begin (b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes, new text end
50.27
new text begin section 477A.016, or any other law, ordinance, or city charter provision to the contrary, new text end
50.28
new text begin the city of Duluth may, by ordinance, impose an additional sales tax of up to one-half new text end
50.29
new text begin of one percent on the gross receipts from the sale of lodging for periods of less than new text end
50.30
new text begin 30 days in hotels and motels located in the city. This tax expires when the city council new text end
50.31
new text begin first determines that the tax imposed under this paragraph, along with the tax imposed new text end
50.32
new text begin under section 21, paragraph (b), has produced revenues sufficient to pay the debt new text end
50.33
new text begin service on bonds in a principal amount of no more than $18,000,000, plus issuance and new text end
50.34
new text begin discount costs, to finance capital improvements to public facilities to support tourism and new text end
50.35
new text begin recreational activities in that portion of the city west of 34th Avenue West.new text end
51.1
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day after the governing body of new text end
51.2
new text begin the city of Duluth and its chief clerical officer comply with Minnesota Statutes, section new text end
51.3
new text begin 645.021, subdivisions 2 and 3.new text end
51.4 Sec. 23. Laws 2005, First Special Session chapter 3, article 5, section 38, subdivision
51.54, is amended to read:
51.6 Subd. 4.
Termination of taxes. The taxes imposed under this section expire at the
51.7earlier of (1) ten
new text begin 15new text end years after the taxes are first imposed, or (2) when the city council first
51.8determines that the amount of revenues raised to pay for the projects under subdivision 2,
51.9shall meet or exceed the sum of $15,000,000. Any funds remaining after completion of
51.10the projects may be placed in the general fund of the city.
51.11
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day after the governing body of new text end
51.12
new text begin the city of Albert Lea and its chief clerical officer comply with Minnesota Statutes, section new text end
51.13
new text begin 645.021, subdivisions 2 and 3.new text end
51.14 Sec. 24. Laws 2006, chapter 259, article 3, section 10, subdivision 3, is amended to read:
51.15 Subd. 3.
Use of revenues. new text begin (a) new text end Revenues received from the taxes authorized by
51.16subdivisions 1 and 2 must be used to pay the cost of collecting and administering the tax
51.17and to finance the acquisition and betterment of water and wastewater facilities to serve the
51.18cities of Brainerd and Baxter, building and equipping a fire substation, as approved by the
51.19voters at the referendum authorizing the tax. Authorized costs include, but are not limited
51.20to, acquiring property and paying construction and engineering costs related to the projects.
51.21
new text begin (b) In addition to the projects authorized in paragraph (a), the city of Baxter may, if new text end
51.22
new text begin approved by the voters at an election under subdivision 5, paragraph (b), allocate up to an new text end
51.23
new text begin additional $40,000,000 of the revenues received from the taxes authorized by subdivisions new text end
51.24
new text begin 1 and 2 to a capital infrastructure fund. Money from this fund may only be used to new text end
51.25
new text begin finance (1) sanitary sewer, storm sewer, and water projects, (2) transportation safety new text end
51.26
new text begin improvements, and (3) improvements to the Brainerd Lakes Area Airport.new text end
51.27
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day after the governing body of new text end
51.28
new text begin the city of Baxter and its chief clerical officer comply with Minnesota Statutes, section new text end
51.29
new text begin 645.021, subdivisions 2 and 3.new text end
51.30 Sec. 25. Laws 2006, chapter 259, article 3, section 10, subdivision 4, is amended to read:
51.31 Subd. 4.
Bonds. new text begin (a) new text end The city of Baxter, pursuant to the approval of the voters at the
51.32November 2, 2004, referendum authorizing the imposition of the taxes in this section, may
52.1issue general obligation bonds of the city, in one or more series, in the aggregate principal
52.2amount not to exceed $15,000,000 to finance the projects listed in subdivision 3
new text begin , paragraph new text end
52.3
new text begin (a)new text end . The debt represented by the bonds is not included in computing any debt limitations
52.4applicable to the city, and the levy of taxes required by Minnesota Statutes, section
475.61,
52.5to pay the principal of and interest on the bonds is not subject to any levy limitation or
52.6included in computing or applying any levy limitation applicable to the city of Baxter.
52.7
new text begin (b) The city of Baxter, pursuant to the approval of the voters at the 2014 general new text end
52.8
new text begin election to extend the tax under this section, may issue general obligation bonds of the city, new text end
52.9
new text begin in one or more series, in the aggregate principal amount not to exceed (1) $32,000,000 new text end
52.10
new text begin plus an amount equal to the costs of issuance of the bonds to finance the projects listed new text end
52.11
new text begin in subdivision 3, paragraph (b), clauses (1) and (2), and (2) $8,000,000 plus an amount new text end
52.12
new text begin equal to the costs of the issuance of the bonds to finance the project listed in subdivision 3, new text end
52.13
new text begin paragraph (b), clause (3). The debt represented by the bonds is not included in computing new text end
52.14
new text begin any debt limitations applicable to the city, and the levy of taxes required by Minnesota new text end
52.15
new text begin Statutes, section 475.61, to pay the principal of and interest on the bonds is not subject to new text end
52.16
new text begin any levy limitation or included in computing or applying any levy limitation applicable to new text end
52.17
new text begin the city of Baxter.new text end
52.18
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
52.19 Sec. 26. Laws 2006, chapter 259, article 3, section 10, subdivision 5, is amended to read:
52.20 Subd. 5.
Termination of taxes. new text begin (a) new text end The taxes imposed under subdivisions 1 and 2
52.21expire at the earlier of a date 12 years after the imposition of the tax or when the Baxter
52.22City Council first determines that the amount of revenues raised from the taxes to pay for
52.23the projects under subdivision 3 equals or exceeds $15,000,000 plus any interest on bonds
52.24issued for the projects under subdivision 4
new text begin , paragraph (a)new text end . Any funds remaining after the
52.25expiration of the taxes and retirement of the bonds shall be placed in a capital project fund
52.26of the city of Baxter. The taxes imposed under subdivisions 1 and 2 may expire at an
52.27earlier time if the city of Baxter so determines by ordinance.
52.28
new text begin (b) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any new text end
52.29
new text begin other contrary provision of law, ordinance, or city charter, the city of Baxter may, by new text end
52.30
new text begin ordinance, extend the taxes authorized under subdivisions 1 and 2 beyond the termination new text end
52.31
new text begin date in paragraph (a) if approved by the voters of the city at a general election held new text end
52.32
new text begin in 2014. The question put to the voters must indicate that an affirmative vote would new text end
52.33
new text begin extend the imposition of the taxes through 2037 or until an additional $40,000,000, new text end
52.34
new text begin plus an amount equal to interest and issuance costs associated with bonds issued under new text end
52.35
new text begin subdivision 4, paragraph (b), above the initial amount authorized to pay for $15,000,000 new text end
53.1
new text begin in bonds and associated bond cost and projects, listed in subdivision 3, paragraph (a), is new text end
53.2
new text begin raised. If extended under this paragraph, the taxes authorized in subdivisions 1 and 2 will new text end
53.3
new text begin terminate at the earlier of (1) when an additional $40,000,000, plus an amount equal to new text end
53.4
new text begin interest and issuance costs associated with bonds issued under subdivision 4, paragraph new text end
53.5
new text begin (b), above the amount authorized under paragraph (a), is raised, or (2) December 31, 2037.new text end
53.6
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day after the governing body of new text end
53.7
new text begin the city of Baxter and its chief clerical officer comply with Minnesota Statutes, section new text end
53.8
new text begin 645.021, subdivisions 2 and 3.new text end
53.9 Sec. 27. Laws 2006, chapter 259, article 3, section 11, subdivision 3, is amended to read:
53.10 Subd. 3.
Use of revenues. new text begin (a) new text end Revenues received from the taxes authorized by
53.11subdivisions 1 and 2 must be used to pay the cost of collecting and administering the tax
53.12and to finance all or part of the costs of constructing upgraded water and wastewater
53.13treatment facilities to serve the cities of Brainerd and Baxter, water infrastructure
53.14improvements, and trail development, contingent on approval by Brainerd voters at the
53.15November 7, 2006, referendum. Authorized costs include, but are not limited to, acquiring
53.16property and paying construction and engineering costs related to the projects.
53.17
new text begin (b) In addition to the projects authorized in paragraph (a), the city of Brainerd may, new text end
53.18
new text begin if approved by the voters at an election under subdivision 5, paragraph (b), spend up to an new text end
53.19
new text begin additional $15,000,000 from revenues raised from the taxes authorized in subdivisions 1 new text end
53.20
new text begin and 2 on the following projects:new text end
53.21
new text begin (1) an upgraded waste treatment facility jointly serving the cities of Brainerd and new text end
53.22
new text begin Baxter;new text end
53.23
new text begin (2) with any funds not needed for the project in clause (1), water infrastructure new text end
53.24
new text begin improvements; andnew text end
53.25
new text begin (3) with any funds not needed for the projects in clauses (1) and (2), trail new text end
53.26
new text begin improvements.new text end
53.27
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day after the governing body of new text end
53.28
new text begin the city of Brainerd and its chief clerical officer comply with Minnesota Statutes, section new text end
53.29
new text begin 645.021, subdivisions 2 and 3.new text end
53.30 Sec. 28. Laws 2006, chapter 259, article 3, section 11, subdivision 4, is amended to read:
53.31 Subd. 4.
Bonds. The city of Brainerd, contingent on approval of the voters at
53.32the November 7, 2006, referendum authorizing the imposition of taxes in this section,
53.33may issue general obligation bonds of the city, in one or more series, in the aggregate
54.1principal amount not to exceed $22,030,000 to finance the projects listed in subdivision 3
new text begin , new text end
54.2
new text begin paragraph (a)new text end . The debt represented by the bonds is not included in computing any debt
54.3limitations applicable to Brainerd, and the levy of taxes required by Minnesota Statutes,
54.4section
475.61, to pay the principal and interest on the bonds is not subject to any levy
54.5limitation or included in computing any levy limitation applicable to the city of Brainerd.
54.6
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
54.7 Sec. 29. Laws 2006, chapter 259, article 3, section 11, subdivision 5, is amended to read:
54.8 Subd. 5.
Termination of taxes. new text begin (a) new text end The taxes imposed under subdivisions 1 and
54.92 expire at the earlier of a date 12 years after the imposition of the tax or when the city
54.10council first determines that the amount of revenues raised from the taxes to pay for
54.11projects under subdivision 3 equals or exceeds $22,030,000 plus any interest on bonds
54.12issued for the projects under subdivision 4. Any funds remaining after the expiration of
54.13the taxes and retirement of the bonds shall be placed in a capital project fund of the city of
54.14Brainerd. The taxes imposed under subdivision 1 and 2 may expire at an earlier time if the
54.15city of Brainerd so determines by ordinance.
54.16
new text begin (b) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any new text end
54.17
new text begin other contrary provision of law, ordinance, or city charter, the city of Brainerd may, by new text end
54.18
new text begin ordinance, extend the taxes authorized under subdivisions 1 and 2 beyond the termination new text end
54.19
new text begin date in paragraph (a) if approved by the voters of the city at a general election held in 2014. new text end
54.20
new text begin The question put to the voters must indicate that an affirmative vote would extend the new text end
54.21
new text begin imposition of the taxes for an additional 18 years or until an additional $15,000,000 above new text end
54.22
new text begin the initial amount authorized to pay for $22,030,000 in bonds is raised. If extended under new text end
54.23
new text begin this paragraph, the taxes authorized in subdivisions 1 and 2 will terminate at the earlier of new text end
54.24
new text begin (1) when an additional $15,000,000 above the amount authorized under paragraph (a) is new text end
54.25
new text begin raised, or (2) 18 years after the taxes would have expired under paragraph (a).new text end
54.26
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day after the governing body of new text end
54.27
new text begin the city of Brainerd and its chief clerical officer comply with Minnesota Statutes, section new text end
54.28
new text begin 645.021, subdivisions 2 and 3.new text end
54.29 Sec. 30. Laws 2013, chapter 143, article 8, section 22, the effective date, is amended to
54.30read:
54.31
EFFECTIVE DATE.This section is effective for sales and purchases made after
54.32June 30, 2013.
new text begin Subdivision 7, paragraph (c), clause (2), is effective for sales and purchases new text end
54.33
new text begin made after June 30, 2013. The provisions of subdivision 7, paragraph (b), and paragraph new text end
55.1
new text begin (c), clause (8), are effective retroactively for sales and purchases made after April 1, new text end
55.2
new text begin 2009. Any vendor who paid sales or use tax on items now exempt under subdivision 7, new text end
55.3
new text begin paragraph (b), and paragraph (c), clause (8), that were sold after April 1, 2009, and before new text end
55.4
new text begin July 1, 2013, may apply for a refund of the sales or use tax paid in the manner provided new text end
55.5
new text begin in Minnesota Statutes, section 289A.50, subdivision 1, but only if the vendor did not new text end
55.6
new text begin collect and remit sales tax on the items for which a refund is claimed. Interest on the new text end
55.7
new text begin refund shall be paid at the rate in Minnesota Statutes, section 270C.405, from 90 days new text end
55.8
new text begin after the refund claim is filed with the commissioner of revenue. The amount to make the new text end
55.9
new text begin refunds is annually appropriated to the commissioner of revenue from the general fund. new text end
55.10
new text begin Notwithstanding limitations on claims for refunds under Minnesota Statutes, section new text end
55.11
new text begin 289A.40, claims may be filed with the commissioner until June 30, 2015.new text end
55.12
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
55.13 Sec. 31. Laws 2013, chapter 143, article 8, section 23, the effective date, is amended to
55.14read:
55.15
EFFECTIVE DATE.This section is effective for sales and purchases made after
55.16June 30, 2013.
new text begin This section is effective for sales and purchases made after June 30, 2013, new text end
55.17
new text begin except that the provision regarding accessories and supplies purchased in a transaction new text end
55.18
new text begin covered by Medicare or Medicaid that are not already exempt under Minnesota Statutes, new text end
55.19
new text begin section 297A.67, subdivision 7, and the provision defining "Medicare" and "Medicaid" new text end
55.20
new text begin are effective retroactively for sales and purchases made after April 1, 2009. Any vendor new text end
55.21
new text begin who paid sales or use tax on accessories and supplies purchased in a transaction covered new text end
55.22
new text begin by Medicare or Medicaid that are not already exempt under Minnesota Statutes, section new text end
55.23
new text begin 297A.67, subdivision 7, and that were sold after April 1, 2009, and before July 1, 2013, new text end
55.24
new text begin may apply for a refund of the sales or use tax paid in the manner provided in Minnesota new text end
55.25
new text begin Statutes, section 289A.50, subdivision 1, but only if the vendor did not collect and remit new text end
55.26
new text begin sales tax on the accessories and supplies for which a refund is claimed. Interest on the new text end
55.27
new text begin refund shall be paid at the rate in Minnesota Statutes, section 270C.405, from 90 days new text end
55.28
new text begin after the refund claim is filed with the commissioner of revenue. The amount to make the new text end
55.29
new text begin refunds is annually appropriated to the commissioner of revenue from the general fund. new text end
55.30
new text begin Notwithstanding limitations on claims for refunds under Minnesota Statutes, section new text end
55.31
new text begin 289A.40, claims may be filed with the commissioner until June 30, 2015.new text end
55.32
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
56.1 Sec. 32. Laws 2013, chapter 143, article 8, section 27, the effective date, is amended to
56.2read:
56.3
EFFECTIVE DATE.new text begin For the purpose of qualifying under paragraphs (c) and (d), new text end
56.4this section is effective
new text begin retroactively new text end for sales and purchases made after June 30, 2013
56.5
new text begin 2012. For the purpose of determining eligibility for the exemptions provided in this new text end
56.6
new text begin section, this section is effective for sales and purchases of computer software maintenance new text end
56.7
new text begin agreements made after June 30, 2013, and for sales and purchases for either a "qualified new text end
56.8
new text begin refurbished data center" or a "qualified data center" made after June 30, 2013, except that new text end
56.9
new text begin if the data center qualifies as a "qualified data center" as defined in Laws 2011, First new text end
56.10
new text begin Special Session chapter 7, article 3, section 7, then the exemptions provided in this section, new text end
56.11
new text begin other than for computer software maintenance agreements, continue to be effective for new text end
56.12
new text begin sales and purchases made after June 30, 2012new text end .
56.13
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
56.14 Sec. 33. Laws 2013, chapter 143, article 8, section 37, the effective date, is amended to
56.15read:
56.16
EFFECTIVE DATE.This section is effective retroactively to capital investments
56.17made and jobs created after December 31, 2012, and effective retroactively for sales and
56.18purchases made after December 31, 2012, and before July 1, 2019.
new text begin Applications for new text end
56.19
new text begin refunds on purchases exempt under this section must not be filed before June 30, 2015.new text end
56.20
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
56.21 Sec. 34.
new text begin CITY OF PROCTOR; LOCAL TAXES AUTHORIZED.new text end
56.22
new text begin Subdivision 1.new text end new text begin Food and beverage tax authorized.new text end new text begin Notwithstanding Minnesota new text end
56.23
new text begin Statutes, section 297A.99 or 477A.016, or any ordinance, city charter, or other provision new text end
56.24
new text begin of law, the city of Proctor may, by ordinance, impose a sales tax of up to one percent on new text end
56.25
new text begin the gross receipts of all food and beverages sold by a restaurant or place of refreshment, new text end
56.26
new text begin as defined by resolution of the city, that is located within the city. For purposes of this new text end
56.27
new text begin section, "food and beverages" include retail on-sale of intoxicating liquor and fermented new text end
56.28
new text begin malt beverages.new text end
56.29
new text begin Subd. 2.new text end new text begin Use of proceeds from authorized taxes.new text end new text begin The proceeds of the taxes new text end
56.30
new text begin imposed under subdivision 1 must be used by the city to fund: (1) construction and new text end
56.31
new text begin improvement of walking and bicycle trails; (2) a multiuse civic center facility and parking new text end
57.1
new text begin improvements; and (3) improvements related to the redevelopment and realignment of a new text end
57.2
new text begin road through the fairgrounds property ceded to the city of Proctor by the city of Duluth.new text end
57.3
new text begin Subd. 3.new text end new text begin Collection, administration, and enforcement.new text end new text begin The city may enter into new text end
57.4
new text begin an agreement with the commissioner of revenue to administer, collect, and enforce the new text end
57.5
new text begin taxes under subdivision 1. If the commissioner agrees to collect the tax, the provisions new text end
57.6
new text begin of Minnesota Statutes, section 297A.99, related to collection, administration, and new text end
57.7
new text begin enforcement, and Minnesota Statutes, section 270C.171, apply.new text end
57.8
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day after the governing body of new text end
57.9
new text begin the city of Proctor and its chief clerical officer comply with Minnesota Statutes, section new text end
57.10
new text begin 645.021, subdivisions 2 and 3.new text end
57.11 Sec. 35.
new text begin DONATED MATERIALS FOR A LIBRARY EXPANSION.new text end
57.12
new text begin Building materials and supplies purchased and donated by a private entity and new text end
57.13
new text begin used in the construction of an addition to a city library facility occurring before July 1, new text end
57.14
new text begin 2015, are exempt.new text end
57.15
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for materials and supplies used in the new text end
57.16
new text begin construction of the addition between April 1, 2014, and July 1, 2015.new text end
57.17 Sec. 36.
new text begin VALIDATION OF PRIOR ACT; AUTHORIZATION.new text end
57.18
new text begin Notwithstanding the time limits in Minnesota Statutes, section 645.021, the city of new text end
57.19
new text begin Albert Lea may approve Laws 2005, First Special Session chapter 3, article 5, section 38, new text end
57.20
new text begin as amended by Laws 2006, chapter 259, article 3, section 6, and file its approval with the new text end
57.21
new text begin secretary of state by June 15, 2014. If approved as authorized under this section, actions new text end
57.22
new text begin undertaken by the city pursuant to the approval of the voters on November 8, 2005, and new text end
57.23
new text begin otherwise in accordance with Laws 2005, First Special Session chapter 3, article 5, section new text end
57.24
new text begin 38, as amended by Laws 2006, chapter 259, article 3, section 6, are validated.new text end
57.25
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
57.26 Sec. 37.
new text begin SALES TO INSTRUMENTALITIES OF THE STATES.new text end
57.27
new text begin Sales of the following items to an organization defined by the Internal Revenue new text end
57.28
new text begin Service as an instrumentality of each, and all, of the states relating to the holding of an new text end
57.29
new text begin annual meeting in this state are exempt:new text end
57.30
new text begin (1) prepared food, soft drinks, and candy, as defined in Minnesota Statutes, section new text end
57.31
new text begin 297A.61, subdivisions 31 to 33; andnew text end
58.1
new text begin (2) alcoholic beverages, as defined in Minnesota Statutes, section 297A.67, new text end
58.2
new text begin subdivision 2.new text end
58.3
new text begin EFFECTIVE DATE.new text end new text begin This section is applicable to sales and purchases made after new text end
58.4
new text begin June 30, 2014, and before January 1, 2015.new text end
58.5 Sec. 38.
new text begin VOLUNTARY COMPLIANCE PROGRAM; ANIMAL SHELTERS.new text end
58.6
new text begin (a) Any Minnesota nonprofit organization that is primarily engaged in the business new text end
58.7
new text begin of rescuing, sheltering, and finding homes for unwanted animals, for periods prior to the new text end
58.8
new text begin organization registering to collect and remit sales and use tax under Minnesota Statutes, new text end
58.9
new text begin chapter 297A, shall not be liable for any state or local uncollected and unpaid sales and use new text end
58.10
new text begin tax, penalties, or interest incurred in providing animal rescue, shelter, and home placement new text end
58.11
new text begin services, if the nonprofit organization registers through the voluntary compliance program new text end
58.12
new text begin to collect and remit sales and use tax under Minnesota Statutes, chapter 297A, before new text end
58.13
new text begin January 1, 2015.new text end
58.14
new text begin (b) The voluntary compliance program under paragraph (a) also applies to new text end
58.15
new text begin organizations described in paragraph (a) that received notice of the commencement of an new text end
58.16
new text begin audit prior to registering to collect and remit sales and use tax under Minnesota Statutes, new text end
58.17
new text begin chapter 297A, as long as the audit is not finally resolved and the organization registers new text end
58.18
new text begin before January 1, 2015. Paragraph (a) shall not apply to sales and use taxes already paid or new text end
58.19
new text begin remitted to the state or to sales taxes already collected by the organization.new text end
58.20
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
58.21
ARTICLE 4
58.22
INCOME AND ESTATE TAXES
58.23 Section 1. Minnesota Statutes 2013 Supplement, section 116J.8737, subdivision 2, as
58.24amended by Laws 2014, chapter 150, article 1, section 2, is amended to read:
58.25 Subd. 2.
Certification of qualified small businesses. (a) Businesses may apply
58.26to the commissioner for certification as a qualified small business or qualified greater
58.27Minnesota small business for a calendar year. The application must be in the form
58.28and be made under the procedures specified by the commissioner, accompanied by an
58.29application fee of $150. Application fees are deposited in the small business investment
58.30tax credit administration account in the special revenue fund. The application for
58.31certification for 2010 must be made available on the department's Web site by August 1,
58.322010. Applications for subsequent years' certification must be made available on the
58.33department's Web site by November 1 of the preceding year.
59.1(b) Within 30 days of receiving an application for certification under this subdivision,
59.2the commissioner must either certify the business as satisfying the conditions required
59.3of a qualified small business or qualified greater Minnesota small business, request
59.4additional information from the business, or reject the application for certification. If
59.5the commissioner requests additional information from the business, the commissioner
59.6must either certify the business or reject the application within 30 days of receiving the
59.7additional information. If the commissioner neither certifies the business nor rejects
59.8the application within 30 days of receiving the original application or within 30 days of
59.9receiving the additional information requested, whichever is later, then the application is
59.10deemed rejected, and the commissioner must refund the $150 application fee. A business
59.11that applies for certification and is rejected may reapply.
59.12(c) To receive certification as a qualified small business, a business must satisfy
59.13all of the following conditions:
59.14(1) the business has its headquarters in Minnesota;
59.15(2) at least 51 percent of the business's employees are employed in Minnesota, and
59.1651 percent of the business's total payroll is paid or incurred in the state;
59.17(3) the business is engaged in, or is committed to engage in, innovation in Minnesota
59.18in one of the following as its primary business activity:
59.19(i) using proprietary technology to add value to a product, process, or service in a
59.20qualified high-technology field;
59.21(ii) researching or developing a proprietary product, process, or service in a qualified
59.22high-technology field; or
59.23
new text begin (iii) researching or developing a proprietary product, process, or service in the fields new text end
59.24
new text begin of agriculture, tourism, forestry, mining, manufacturing, or transportation; ornew text end
59.25(iii)
new text begin (iv)new text end researching, developing, or producing a new proprietary technology for use
59.26in the fields of agriculture, tourism, forestry, mining, manufacturing, or transportation;
59.27(4) other than the activities specifically listed in clause (3), the business is not
59.28engaged in real estate development, insurance, banking, lending, lobbying, political
59.29consulting, information technology consulting, wholesale or retail trade, leisure,
59.30hospitality, transportation, construction, ethanol production from corn, or professional
59.31services provided by attorneys, accountants, business consultants, physicians, or health
59.32care consultants;
59.33(5) the business has fewer than 25 employees;
59.34(6) the business must pay its employees annual wages of at least 175 percent of the
59.35federal poverty guideline for the year for a family of four and must pay its interns annual
59.36wages of at least 175 percent of the federal minimum wage used for federally covered
60.1employers, except that this requirement must be reduced proportionately for employees
60.2and interns who work less than full-time, and does not apply to an executive, officer, or
60.3member of the board of the business, or to any employee who owns, controls, or holds
60.4power to vote more than 20 percent of the outstanding securities of the business;
60.5(7) the business has (i) not been in operation for more than ten years, or (ii) not
60.6been in operation for more than 20 years if the business is engaged in the research,
60.7development, or production of medical devices or pharmaceuticals for which United
60.8States Food and Drug Administration approval is required for use in the treatment or
60.9diagnosis of a disease or condition;
60.10(8) the business has not previously received private equity investments of more
60.11than $4,000,000;
60.12 (9) the business is not an entity disqualified under section
80A.50, paragraph (b),
60.13clause (3); and
60.14(10) the business has not issued securities that are traded on a public exchange.
60.15(d) In applying the limit under paragraph (c), clause (5), the employees in all members
60.16of the unitary business, as defined in section
290.17, subdivision 4, must be included.
60.17(e) In order for a qualified investment in a business to be eligible for tax credits:
60.18(1) the business must have applied for and received certification for the calendar
60.19year in which the investment was made prior to the date on which the qualified investment
60.20was made;
60.21(2) the business must not have issued securities that are traded on a public exchange;
60.22(3) the business must not issue securities that are traded on a public exchange within
60.23180 days after the date on which the qualified investment was made; and
60.24(4) the business must not have a liquidation event within 180 days after the date on
60.25which the qualified investment was made.
60.26(f) The commissioner must maintain a list of qualified small businesses and qualified
60.27greater Minnesota businesses certified under this subdivision for the calendar year and
60.28make the list accessible to the public on the department's Web site.
60.29(g) For purposes of this subdivision, the following terms have the meanings given:
60.30(1) "qualified high-technology field" includes aerospace, agricultural processing,
60.31renewable energy, energy efficiency and conservation, environmental engineering, food
60.32technology, cellulosic ethanol, information technology, materials science technology,
60.33nanotechnology, telecommunications, biotechnology, medical device products,
60.34pharmaceuticals, diagnostics, biologicals, chemistry, veterinary science, and similar fields;
61.1(2) "proprietary technology" means the technical innovations that are unique and
61.2legally owned or licensed by a business and includes, without limitation, those innovations
61.3that are patented, patent pending, a subject of trade secrets, or copyrighted; and
61.4(3) "greater Minnesota" means the area of Minnesota located outside of the
61.5metropolitan area as defined in section
473.121, subdivision 2.
61.6(h) To receive certification as a qualified greater Minnesota business, a business must
61.7satisfy all of the requirements of paragraph (c) and must satisfy the following conditions:
61.8(1) the business has its headquarters in greater Minnesota; and
61.9(2) at least 51 percent of the business's employees are employed in greater Minnesota,
61.10and 51 percent of the business's total payroll is paid or incurred in greater Minnesota.
61.11
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxable years beginning after new text end
61.12
new text begin December 31, 2013.new text end
61.13 Sec. 2. Minnesota Statutes 2012, section 116J.8737, subdivision 5, as amended by
61.14Laws 2014, chapter 150, article 1, section 3, is amended to read:
61.15 Subd. 5.
Credit allowed. (a) (1) A qualified investor or qualified fund is eligible
61.16for a credit equal to 25 percent of the qualified investment in a qualified small business.
61.17Investments made by a pass-through entity qualify for a credit only if the entity is a
61.18qualified fund. The commissioner must not allocate more than $15,000,000
61.19$15,000,000 in credits to qualified investors or qualified funds for taxable years
61.20beginning after December 31, 2013, and before January 1, 2017; and
61.21(2) for taxable years beginning after December 31, 2014, and before January 1,
61.222017, $7,500,000 must be allocated to credits for qualifying investments in qualified
61.23greater Minnesota businesses and minority- or women-owned qualified small businesses
61.24in Minnesota. Any portion of a taxable year's credits that is reserved for qualifying
61.25investments in greater Minnesota businesses and minority- or women-owned qualified
61.26small businesses in Minnesota that is not allocated by September 30 of the taxable year is
61.27available for allocation to other credit applications beginning on October 1. Any portion
61.28of a taxable year's credits that is not allocated by the commissioner does not cancel and
61.29may be carried forward to subsequent taxable years until all credits have been allocated.
61.30(b) The commissioner may not allocate more than a total maximum amount in credits
61.31for a taxable year to a qualified investor for the investor's cumulative qualified investments
61.32as an individual qualified investor and as an investor in a qualified fund; for married
61.33couples filing joint returns the maximum is $250,000, and for all other filers the maximum
61.34is $125,000. The commissioner may not allocate more than a total of $1,000,000 in credits
61.35over all taxable years for qualified investments in any one qualified small business.
62.1(c) The commissioner may not allocate a credit to a qualified investor either as
62.2an individual qualified investor or as an investor in a qualified fund if, at the time the
62.3investment is proposed:
62.4(1) the investor is an officer or principal of the qualified small business; or
62.5(2) the investor, either individually or in combination with one or more members of
62.6the investor's family, owns, controls, or holds the power to vote 20 percent or more of
62.7the outstanding securities of the qualified small business.
62.8A member of the family of an individual disqualified by this paragraph is not eligible for a
62.9credit under this section. For a married couple filing a joint return, the limitations in this
62.10paragraph apply collectively to the investor and spouse. For purposes of determining the
62.11ownership interest of an investor under this paragraph, the rules under section 267(c) and
62.12267(e) of the Internal Revenue Code apply.
62.13(d) Applications for tax credits for 2010 must be made available on the department's
62.14Web site by September 1, 2010, and the department must begin accepting applications
62.15by September 1, 2010. Applications for subsequent years must be made available by
62.16November 1 of the preceding year.
62.17(e) Qualified investors and qualified funds must apply to the commissioner for tax
62.18credits. Tax credits must be allocated to qualified investors or qualified funds in the order
62.19that the tax credit request applications are filed with the department. The commissioner
62.20must approve or reject tax credit request applications within 15 days of receiving the
62.21application. The commissioner must allocate credits to approved applications if credits
62.22remain available. The investment specified in the application must be made within 60 days
62.23of the allocation of the credits. If the investment is not made within 60 days, the credit
62.24allocation is canceled and available for reallocation. A qualified investor or qualified fund
62.25that fails to invest as specified in the application, within 60 days of allocation of the
62.26credits, must notify the commissioner of the failure to invest within five business days of
62.27the expiration of the 60-day investment period. Credit applications that were approved but
62.28that did not receive an allocation of credits at the time of approval because the aggregate
62.29limit of credits for the year was exhausted remain eligible for allocation of credits if
62.30additional credits become available due to cancellations under this paragraph or due to
62.31termination of the time period for credits reserved for investment in qualified greater
62.32Minnesota businesses and minority- and women-owned small businesses under paragraph
62.33(a). Approved credit applications that do not receive credit allocations in the tax year must
62.34be resubmitted to be eligible for credit allocations in the following tax year.
62.35(f) All tax credit request applications filed with the department on the same day must
62.36be treated as having been filed contemporaneously. If two or more qualified investors or
63.1qualified funds file tax credit request applications on the same day, and the aggregate
63.2amount of credit allocation claims exceeds the aggregate limit of credits under this section
63.3or the lesser amount of credits that remain unallocated on that day, then the credits must
63.4be allocated among the qualified investors or qualified funds who filed on that day on a
63.5pro rata basis with respect to the amounts claimed. The pro rata allocation for any one
63.6qualified investor or qualified fund is the product obtained by multiplying a fraction,
63.7the numerator of which is the amount of the credit allocation claim filed on behalf of
63.8a qualified investor and the denominator of which is the total of all credit allocation
63.9claims filed on behalf of all applicants on that day, by the amount of credits that remain
63.10unallocated on that day for the taxable year.
63.11(g) A qualified investor or qualified fund, or a qualified small business acting on their
63.12behalf, must notify the commissioner when an investment for which credits were allocated
63.13has been made, and the taxable year in which the investment was made. A qualified fund
63.14must also provide the commissioner with a statement indicating the amount invested by
63.15each investor in the qualified fund based on each investor's share of the assets of the
63.16qualified fund at the time of the qualified investment. After receiving notification that the
63.17investment was made, the commissioner must issue credit certificates for the taxable year
63.18in which the investment was made to the qualified investor or, for an investment made by
63.19a qualified fund, to each qualified investor who is an investor in the fund. The certificate
63.20must state that the credit is subject to revocation if the qualified investor or qualified
63.21fund does not hold the investment in the qualified small business for at least three years,
63.22consisting of the calendar year in which the investment was made and the two following
63.23years. The three-year holding period does not apply if:
63.24(1) the investment by the qualified investor or qualified fund becomes worthless
63.25before the end of the three-year period;
63.26(2) 80 percent or more of the assets of the qualified small business is sold before
63.27the end of the three-year period;
63.28(3) the qualified small business is sold before the end of the three-year period;
63.29(4) the qualified small business's common stock begins trading on a public exchange
63.30before the end of the three-year period; or
63.31 (5) the qualified investor dies before the end of the three-year period.
63.32(h) The commissioner must notify the commissioner of revenue of credit certificates
63.33issued under this section.
63.34
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
64.1 Sec. 3. Minnesota Statutes 2012, section 116J.8737, is amended by adding a
64.2subdivision to read:
64.3
new text begin Subd. 5a.new text end new text begin Promotion of credit in greater Minnesota.new text end new text begin (a) By July 1, 2014, new text end
64.4
new text begin the commissioner shall develop a plan to increase awareness of and use of the credit new text end
64.5
new text begin for investments in qualified greater Minnesota businesses and minority-owned and new text end
64.6
new text begin women-owned qualified small businesses with the goal that the portion of the credit new text end
64.7
new text begin reserved for investments in qualified greater Minnesota businesses and minority-owned new text end
64.8
new text begin and women-owned qualified small businesses is allocated in full to those investments.new text end
64.9
new text begin (b) Beginning with the legislative report due on March 15, 2015, under subdivision new text end
64.10
new text begin 9, the commissioner shall report on its plan under this subdivision and the results achieved.new text end
64.11
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
64.12 Sec. 4. Minnesota Statutes 2013 Supplement, section 136A.129, subdivision 1, is
64.13amended to read:
64.14 Subdivision 1.
Definitions. (a) For the purposes of this section, the terms defined in
64.15this subdivision have the meanings given to them.
64.16(b) "Eligible employer" means a taxpayer under section
290.01 with employees
64.17located in greater Minnesota.
64.18(c) "Eligible institution" means a Minnesota public postsecondary institution or
64.19a Minnesota private, nonprofit, baccalaureate
new text begin , or graduatenew text end degree-granting college or
64.20university.
64.21(d) "Eligible student" means a student enrolled in an eligible institution who has
64.22completed one-half of the credits necessary for the respective degree or certification
new text begin , new text end
64.23
new text begin including a graduate degreenew text end .
64.24(e) "Greater Minnesota" means the area of the state outside of the counties of Anoka,
64.25Carver, Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, Washington, and
64.26Wright.
64.27
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
64.28 Sec. 5. Minnesota Statutes 2013 Supplement, section 136A.129, subdivision 3, is
64.29amended to read:
64.30 Subd. 3.
Program components. (a) An intern must be an eligible student who has
64.31been admitted to a major program that is related to the intern experience as determined
64.32by the eligible institution.
64.33(b) To participate in the program, an eligible institution must:
65.1(1) enter into written agreements with eligible employers to provide internships that
65.2are at least 12
new text begin eightnew text end weeks long and located in greater Minnesota;
65.3(2) determine that the work experience of the internship is related to the eligible
65.4student's course of study; and
65.5(3)
new text begin (2)new text end provide academic credit for the successful completion of the internship or
65.6ensure that it fulfills requirements necessary to complete a vocational technical education
65.7program.
65.8(c) To participate in the program, an eligible employer must enter into a written
65.9agreement with an eligible institution specifying that the intern:
65.10(1) would not have been hired without the tax credit described in subdivision 4;
65.11(2) did not work for the employer in the same or a similar job prior to entering
65.12the agreement;
65.13(3) does not replace an existing employee;
65.14(4) has not previously participated in the program;
65.15(5) will be employed at a location in greater Minnesota;
65.16(6) will be paid at least minimum wage for a minimum of 16 hours per week for a
65.17period of at least 12
new text begin eightnew text end weeks; and
65.18(7) will be supervised and evaluated by the employer.
65.19(d) The written agreement between the eligible institution and the eligible employer
65.20must certify a credit amount to the employer, not to exceed $2,000 per intern. The total
65.21dollar amount of credits that an eligible institution certifies to eligible employers in a
65.22calendar year may not exceed the amount of its allocation under subdivision 4.
65.23(e) Participating eligible institutions and eligible employers must report annually to
65.24the office. The report must include at least the following:
65.25(1) the number of interns hired;
65.26(2) the number of hours and weeks worked by interns; and
65.27(3) the compensation paid to interns.
65.28(f) An internship required to complete an academic program does not qualify for the
65.29greater Minnesota internship program under this section.
65.30
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
65.31 Sec. 6. Minnesota Statutes 2013 Supplement, section 136A.129, subdivision 5, is
65.32amended to read:
65.33 Subd. 5.
Reports to the legislature. (a) By February 1, 2015
new text begin 2016new text end , the office
65.34and the Department of Revenue shall report to the legislature on the greater Minnesota
65.35internship program. The report must include at least the following:
66.1(1) the number and dollar amount of credits allowed;
66.2(2) the number of interns employed under the program; and
66.3(3) the cost of administering the program.
66.4(b) By February 1, 2016
new text begin 2017new text end , the office and the Department of Revenue shall
66.5report to the legislature with an analysis of the effectiveness of the program in stimulating
66.6businesses to hire interns and in assisting participating interns in finding permanent
66.7career positions. This report must include the number of students who participated in the
66.8program who were subsequently employed full-time by the employer.
66.9
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
66.10 Sec. 7. Minnesota Statutes 2013 Supplement, section 270B.01, subdivision 8, is
66.11amended to read:
66.12 Subd. 8.
Minnesota tax laws. For purposes of this chapter only, unless expressly
66.13stated otherwise, "Minnesota tax laws" means:
66.14 (1) the taxes, refunds, and fees administered by or paid to the commissioner under
66.15chapters 115B, 289A (except taxes imposed under sections
298.01,
298.015, and
298.24),
66.16290, 290A, 291, 292, 295, 297A, 297B, 297H, and 403, or any similar Indian tribal tax
66.17administered by the commissioner pursuant to any tax agreement between the state and
66.18the Indian tribal government, and includes any laws for the assessment, collection, and
66.19enforcement of those taxes, refunds, and fees; and
66.20 (2) section
273.1315.
66.21
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
66.22 Sec. 8. Minnesota Statutes 2013 Supplement, section 270B.03, subdivision 1, is
66.23amended to read:
66.24 Subdivision 1.
Who may inspect. Returns and return information must, on request,
66.25be made open to inspection by or disclosure to the data subject. The request must be made
66.26in writing or in accordance with written procedures of the chief disclosure officer of the
66.27department that have been approved by the commissioner to establish the identification
66.28of the person making the request as the data subject. For purposes of this chapter, the
66.29following are the data subject:
66.30(1) in the case of an individual return, that individual;
66.31(2) in the case of an income tax return filed jointly, either of the individuals with
66.32respect to whom the return is filed;
67.1(3) in the case of a return filed by a business entity, an officer of a corporation,
67.2a shareholder owning more than one percent of the stock, or any shareholder of an S
67.3corporation; a general partner in a partnership; the owner of a sole proprietorship; a
67.4member or manager of a limited liability company; a participant in a joint venture; the
67.5individual who signed the return on behalf of the business entity; or an employee who is
67.6responsible for handling the tax matters of the business entity, such as the tax manager,
67.7bookkeeper, or managing agent;
67.8(4) in the case of an estate return:
67.9(i) the personal representative or trustee of the estate; and
67.10(ii) any beneficiary of the estate as shown on the federal estate tax return;
67.11(5) in the case of a trust return:
67.12(i) the trustee or trustees, jointly or separately; and
67.13(ii) any beneficiary of the trust as shown in the trust instrument;
67.14(6) if liability has been assessed to a transferee under section
270C.58, subdivision
67.151
, the transferee is the data subject with regard to the returns and return information
67.16relating to the assessed liability;
67.17(7) in the case of an Indian tribal government or an Indian tribal government-owned
67.18entity,
67.19(i) the chair of the tribal government, or
67.20(ii) any person authorized by the tribal government;
new text begin andnew text end
67.21(8) in the case of a successor as defined in section
270C.57, subdivision 1, paragraph
67.22(b), the successor is the data subject and information may be disclosed as provided by
67.23section
270C.57, subdivision 4; and
new text begin .new text end
67.24(9) in the case of a gift return, the donor.
67.25
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
67.26 Sec. 9. Minnesota Statutes 2012, section 289A.02, subdivision 7, as amended by Laws
67.272014, chapter 150, article 1, section 7, is amended to read:
67.28 Subd. 7.
Internal Revenue Code. Unless specifically defined otherwise, "Internal
67.29Revenue Code" means the Internal Revenue Code of 1986, as amended through December
67.3020, 2013
new text begin March 26, 2014new text end .
67.31
new text begin EFFECTIVE DATE.new text end new text begin This section is effective retroactively for taxable years new text end
67.32
new text begin beginning after December 31, 2012.new text end
68.1 Sec. 10. Minnesota Statutes 2013 Supplement, section 290.01, subdivision 19, as
68.2amended by Laws 2014, chapter 150, article 1, section 9, is amended to read:
68.3 Subd. 19.
Net income. The term "net income" means the federal taxable income,
68.4as defined in section 63 of the Internal Revenue Code of 1986, as amended through the
68.5date named in this subdivision, incorporating the federal effective dates of changes to the
68.6Internal Revenue Code and any elections made by the taxpayer in accordance with the
68.7Internal Revenue Code in determining federal taxable income for federal income tax
68.8purposes, and with the modifications provided in subdivisions 19a to 19f.
68.9 In the case of a regulated investment company or a fund thereof, as defined in section
68.10851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment
68.11company taxable income as defined in section 852(b)(2) of the Internal Revenue Code,
68.12except that:
68.13 (1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal
68.14Revenue Code does not apply;
68.15 (2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal
68.16Revenue Code must be applied by allowing a deduction for capital gain dividends and
68.17exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal
68.18Revenue Code; and
68.19 (3) the deduction for dividends paid must also be applied in the amount of any
68.20undistributed capital gains which the regulated investment company elects to have treated
68.21as provided in section 852(b)(3)(D) of the Internal Revenue Code.
68.22 The net income of a real estate investment trust as defined and limited by section
68.23856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust
68.24taxable income as defined in section 857(b)(2) of the Internal Revenue Code.
68.25 The net income of a designated settlement fund as defined in section 468B(d) of
68.26the Internal Revenue Code means the gross income as defined in section 468B(b) of the
68.27Internal Revenue Code.
68.28 The Internal Revenue Code of 1986, as amended through December 20, 2013
new text begin March new text end
68.29
new text begin 26, 2014new text end , shall be in effect for taxable years beginning after December 31, 1996.
68.30 Except as otherwise provided, references to the Internal Revenue Code in
68.31subdivisions 19 to 19f mean the code in effect for purposes of determining net income for
68.32the applicable year.
68.33
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment, new text end
68.34
new text begin except the changes incorporated by federal changes are effective retroactively at the same new text end
68.35
new text begin time as the changes were effective for federal purposes.new text end
69.1 Sec. 11. Minnesota Statutes 2012, section 290.01, subdivision 19a, as amended by
69.2Laws 2014, chapter 150, article 1, section 10, is amended to read:
69.3 Subd. 19a.
Additions to federal taxable income. For individuals, estates, and
69.4trusts, there shall be added to federal taxable income:
69.5 (1)(i) interest income on obligations of any state other than Minnesota or a political
69.6or governmental subdivision, municipality, or governmental agency or instrumentality
69.7of any state other than Minnesota exempt from federal income taxes under the Internal
69.8Revenue Code or any other federal statute; and
69.9 (ii) exempt-interest dividends as defined in section 852(b)(5) of the Internal Revenue
69.10Code, except:
69.11(A) the portion of the exempt-interest dividends exempt from state taxation under
69.12the laws of the United States; and
69.13(B) the portion of the exempt-interest dividends derived from interest income
69.14on obligations of the state of Minnesota or its political or governmental subdivisions,
69.15municipalities, governmental agencies or instrumentalities, but only if the portion of the
69.16exempt-interest dividends from such Minnesota sources paid to all shareholders represents
69.1795 percent or more of the exempt-interest dividends, including any dividends exempt
69.18under subitem (A), that are paid by the regulated investment company as defined in section
69.19851(a) of the Internal Revenue Code, or the fund of the regulated investment company as
69.20defined in section 851(g) of the Internal Revenue Code, making the payment; and
69.21 (iii) for the purposes of items (i) and (ii), interest on obligations of an Indian tribal
69.22government described in section 7871(c) of the Internal Revenue Code shall be treated as
69.23interest income on obligations of the state in which the tribe is located;
69.24 (2) the amount of income, sales and use, motor vehicle sales, or excise taxes paid or
69.25accrued within the taxable year under this chapter and the amount of taxes based on net
69.26income paid, sales and use, motor vehicle sales, or excise taxes paid to any other state or
69.27to any province or territory of Canada, to the extent allowed as a deduction under section
69.2863(d) of the Internal Revenue Code, but the addition may not be more than the amount
69.29by which the state itemized deduction exceeds the amount of the standard deduction as
69.30defined in section 63(c) of the Internal Revenue Code, minus any addition that would have
69.31been required under clause (17) if the taxpayer had claimed the standard deduction. For
69.32the purpose of this clause, income, sales and use, motor vehicle sales, or excise taxes are
69.33the last itemized deductions disallowed under clause (15);
69.34 (3) the capital gain amount of a lump-sum distribution to which the special tax under
69.35section 1122(h)(3)(B)(ii) of the Tax Reform Act of 1986, Public Law 99-514, applies;
70.1 (4) the amount of income taxes paid or accrued within the taxable year under this
70.2chapter and taxes based on net income paid to any other state or any province or territory
70.3of Canada, to the extent allowed as a deduction in determining federal adjusted gross
70.4income. For the purpose of this paragraph, income taxes do not include the taxes imposed
70.5by sections
290.0922, subdivision 1, paragraph (b),
290.9727,
290.9728, and
290.9729;
70.6 (5) the amount of expense, interest, or taxes disallowed pursuant to section
290.10
70.7other than expenses or interest used in computing net interest income for the subtraction
70.8allowed under subdivision 19b, clause (1);
70.9 (6) the amount of a partner's pro rata share of net income which does not flow
70.10through to the partner because the partnership elected to pay the tax on the income under
70.11section 6242(a)(2) of the Internal Revenue Code;
70.12 (7) 80 percent of the depreciation deduction allowed under section 168(k) of the
70.13Internal Revenue Code. For purposes of this clause, if the taxpayer has an activity that
70.14in the taxable year generates a deduction for depreciation under section 168(k) and the
70.15activity generates a loss for the taxable year that the taxpayer is not allowed to claim for
70.16the taxable year, "the depreciation allowed under section 168(k)" for the taxable year is
70.17limited to excess of the depreciation claimed by the activity under section 168(k) over the
70.18amount of the loss from the activity that is not allowed in the taxable year. In succeeding
70.19taxable years when the losses not allowed in the taxable year are allowed, the depreciation
70.20under section 168(k) is allowed;
70.21 (8) 80 percent of the amount by which the deduction allowed by section 179 of the
70.22Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal
70.23Revenue Code of 1986, as amended through December 31, 2003;
70.24 (9) to the extent deducted in computing federal taxable income, the amount of the
70.25deduction allowable under section 199 of the Internal Revenue Code;
70.26 (10) the amount of expenses disallowed under section 290.10, subdivision 2;
70.27 (11) for taxable years beginning before January 1, 2010, the amount deducted for
70.28qualified tuition and related expenses under section 222 of the Internal Revenue Code, to
70.29the extent deducted from gross income;
70.30 (12) for taxable years beginning before January 1, 2010, the amount deducted for
70.31certain expenses of elementary and secondary school teachers under section 62(a)(2)(D)
70.32of the Internal Revenue Code, to the extent deducted from gross income;
70.33(13) discharge of indebtedness income resulting from reacquisition of business
70.34indebtedness and deferred under section 108(i) of the Internal Revenue Code;
70.35(14) changes to federal taxable income attributable to a net operating loss that the
70.36taxpayer elected to carry back for more than two years for federal purposes but for which
71.1the losses can be carried back for only two years under section
290.095, subdivision
71.211
, paragraph (c);
71.3(15) to the extent included in the computation of federal taxable income in taxable
71.4years beginning after December 31, 2010, the amount of disallowed itemized deductions,
71.5but the amount of disallowed itemized deductions plus the addition required under clause
71.6(2) may not be more than the amount by which the itemized deductions as allowed under
71.7section 63(d) of the Internal Revenue Code exceeds the amount of the standard deduction
71.8as defined in section 63(c) of the Internal Revenue Code, and reduced by any addition
71.9that would have been required under clause (17) if the taxpayer had claimed the standard
71.10deduction:
71.11(i) the amount of disallowed itemized deductions is equal to the lesser of:
71.12(A) three percent of the excess of the taxpayer's federal adjusted gross income
71.13over the applicable amount; or
71.14(B) 80 percent of the amount of the itemized deductions otherwise allowable to the
71.15taxpayer under the Internal Revenue Code for the taxable year;
71.16(ii) the term "applicable amount" means $100,000, or $50,000 in the case of a
71.17married individual filing a separate return. Each dollar amount shall be increased by
71.18an amount equal to:
71.19(A) such dollar amount, multiplied by
71.20(B) the cost-of-living adjustment determined under section 1(f)(3) of the Internal
71.21Revenue Code for the calendar year in which the taxable year begins, by substituting
71.22"calendar year 1990" for "calendar year 1992" in subparagraph (B) thereof;
71.23(iii) the term "itemized deductions" does not include:
71.24(A) the deduction for medical expenses under section 213 of the Internal Revenue
71.25Code;
71.26(B) any deduction for investment interest as defined in section 163(d) of the Internal
71.27Revenue Code; and
71.28(C) the deduction under section 165(a) of the Internal Revenue Code for casualty or
71.29theft losses described in paragraph (2) or (3) of section 165(c) of the Internal Revenue
71.30Code or for losses described in section 165(d) of the Internal Revenue Code;
71.31(16) to the extent included in federal taxable income in taxable years beginning after
71.32December 31, 2010, the amount of disallowed personal exemptions for taxpayers with
71.33federal adjusted gross income over the threshold amount:
71.34(i) the disallowed personal exemption amount is equal to the dollar amount of the
71.35
new text begin number ofnew text end personal exemptions claimed by the taxpayer in the computation of federal
71.36taxable income
new text begin allowed under section 151(b) and (c) of the Internal Revenue Code new text end
72.1multiplied by
new text begin the dollar amount for personal exemptions under section 151(d)(1) and (2) new text end
72.2
new text begin of the Internal Revenue Code, as adjusted for inflation by section 151(d)(4) of the Internal new text end
72.3
new text begin Revenue Code, and by new text end the applicable percentage;
72.4(ii) "applicable percentage" means two percentage points for each $2,500 (or
72.5fraction thereof) by which the taxpayer's federal adjusted gross income for the taxable
72.6year exceeds the threshold amount. In the case of a married individual filing a separate
72.7return, the preceding sentence shall be applied by substituting "$1,250" for "$2,500." In
72.8no event shall the applicable percentage exceed 100 percent;
72.9(iii) the term "threshold amount" means:
72.10(A) $150,000 in the case of a joint return or a surviving spouse;
72.11(B) $125,000 in the case of a head of a household;
72.12(C) $100,000 in the case of an individual who is not married and who is not a
72.13surviving spouse or head of a household; and
72.14(D) $75,000 in the case of a married individual filing a separate return; and
72.15(iv) the thresholds shall be increased by an amount equal to:
72.16(A) such dollar amount, multiplied by
72.17(B) the cost-of-living adjustment determined under section 1(f)(3) of the Internal
72.18Revenue Code for the calendar year in which the taxable year begins, by substituting
72.19"calendar year 1990" for "calendar year 1992" in subparagraph (B) thereof; and
72.20(17) to the extent deducted in the computation of federal taxable income, for taxable
72.21years beginning after December 31, 2010, and before January 1, 2014, the difference
72.22between the standard deduction allowed under section 63(c) of the Internal Revenue Code
72.23and the standard deduction allowed for 2011, 2012, and 2013 under the Internal Revenue
72.24Code as amended through December 1, 2010.
72.25
new text begin EFFECTIVE DATE.new text end new text begin This section is effective retroactively for taxable years new text end
72.26
new text begin beginning after December 31, 2012.new text end
72.27 Sec. 12. Minnesota Statutes 2013 Supplement, section 290.01, subdivision 19b, as
72.28amended by Laws 2014, chapter 150, article 1, section 11, is amended to read:
72.29 Subd. 19b.
Subtractions from federal taxable income. For individuals, estates,
72.30and trusts, there shall be subtracted from federal taxable income:
72.31 (1) net interest income on obligations of any authority, commission, or
72.32instrumentality of the United States to the extent includable in taxable income for federal
72.33income tax purposes but exempt from state income tax under the laws of the United States;
73.1 (2) if included in federal taxable income, the amount of any overpayment of income
73.2tax to Minnesota or to any other state, for any previous taxable year, whether the amount
73.3is received as a refund or as a credit to another taxable year's income tax liability;
73.4 (3) the amount paid to others, less the amount used to claim the credit allowed under
73.5section
290.0674, not to exceed $1,625 for each qualifying child in grades kindergarten
73.6to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and
73.7transportation of each qualifying child in attending an elementary or secondary school
73.8situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a
73.9resident of this state may legally fulfill the state's compulsory attendance laws, which
73.10is not operated for profit, and which adheres to the provisions of the Civil Rights Act
73.11of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or
73.12tuition as defined in section
290.0674, subdivision 1, clause (1). As used in this clause,
73.13"textbooks" includes books and other instructional materials and equipment purchased
73.14or leased for use in elementary and secondary schools in teaching only those subjects
73.15legally and commonly taught in public elementary and secondary schools in this state.
73.16Equipment expenses qualifying for deduction includes expenses as defined and limited in
73.17section
290.0674, subdivision 1, clause (3). "Textbooks" does not include instructional
73.18books and materials used in the teaching of religious tenets, doctrines, or worship, the
73.19purpose of which is to instill such tenets, doctrines, or worship, nor does it include books
73.20or materials for, or transportation to, extracurricular activities including sporting events,
73.21musical or dramatic events, speech activities, driver's education, or similar programs. No
73.22deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or
73.23the qualifying child's vehicle to provide such transportation for a qualifying child. For
73.24purposes of the subtraction provided by this clause, "qualifying child" has the meaning
73.25given in section 32(c)(3) of the Internal Revenue Code;
73.26 (4) income as provided under section
290.0802;
73.27 (5) to the extent included in federal adjusted gross income, income realized on
73.28disposition of property exempt from tax under section
290.491;
73.29 (6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E)
73.30of the Internal Revenue Code in determining federal taxable income by an individual
73.31who does not itemize deductions for federal income tax purposes for the taxable year, an
73.32amount equal to 50 percent of the excess of charitable contributions over $500 allowable
73.33as a deduction for the taxable year under section 170(a) of the Internal Revenue Code,
73.34under the provisions of Public Law 109-1 and Public Law 111-126;
73.35 (7) for individuals who are allowed a federal foreign tax credit for taxes that do not
73.36qualify for a credit under section
290.06, subdivision 22, an amount equal to the carryover
74.1of subnational foreign taxes for the taxable year, but not to exceed the total subnational
74.2foreign taxes reported in claiming the foreign tax credit. For purposes of this clause,
74.3"federal foreign tax credit" means the credit allowed under section 27 of the Internal
74.4Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed
74.5under section 904(c) of the Internal Revenue Code minus national level foreign taxes to
74.6the extent they exceed the federal foreign tax credit;
74.7 (8) in each of the five tax years immediately following the tax year in which an
74.8addition is required under subdivision 19a, clause (7), or 19c, clause (12), in the case of a
74.9shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the
74.10delayed depreciation. For purposes of this clause, "delayed depreciation" means the amount
74.11of the addition made by the taxpayer under subdivision 19a, clause (7), or subdivision 19c,
74.12clause (12), in the case of a shareholder of an S corporation, minus the positive value of
74.13any net operating loss under section 172 of the Internal Revenue Code generated for the
74.14tax year of the addition. The resulting delayed depreciation cannot be less than zero;
74.15 (9) job opportunity building zone income as provided under section
469.316;
74.16 (10) to the extent included in federal taxable income, the amount of compensation
74.17paid to members of the Minnesota National Guard or other reserve components of
74.18the United States military for active service, excluding
new text begin includingnew text end compensation for
74.19services performed under the Active Guard Reserve (AGR) program. For purposes of
74.20this clause, "active service" means (i) state active service as defined in section
190.05,
74.21subdivision 5a
, clause (1); or (ii) federally funded state active service as defined in section
74.22190.05, subdivision 5b
, but
new text begin andnew text end "active service" excludes
new text begin includesnew text end service performed in
74.23accordance with section
190.08, subdivision 3;
74.24 (11) to the extent included in federal taxable income, the amount of compensation
74.25paid to Minnesota residents who are members of the armed forces of the United States
74.26or United Nations for active duty performed under United States Code, title 10; or the
74.27authority of the United Nations;
74.28 (12) an amount, not to exceed $10,000, equal to qualified expenses related to a
74.29qualified donor's donation, while living, of one or more of the qualified donor's organs
74.30to another person for human organ transplantation. For purposes of this clause, "organ"
74.31means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow;
74.32"human organ transplantation" means the medical procedure by which transfer of a human
74.33organ is made from the body of one person to the body of another person; "qualified
74.34expenses" means unreimbursed expenses for both the individual and the qualified donor
74.35for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses
74.36may be subtracted under this clause only once; and "qualified donor" means the individual
75.1or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An
75.2individual may claim the subtraction in this clause for each instance of organ donation for
75.3transplantation during the taxable year in which the qualified expenses occur;
75.4 (13) in each of the five tax years immediately following the tax year in which an
75.5addition is required under subdivision 19a, clause (8), or 19c, clause (13), in the case of a
75.6shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the
75.7addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (13), in the
75.8case of a shareholder of a corporation that is an S corporation, minus the positive value of
75.9any net operating loss under section 172 of the Internal Revenue Code generated for the
75.10tax year of the addition. If the net operating loss exceeds the addition for the tax year, a
75.11subtraction is not allowed under this clause;
75.12 (14) to the extent included in the federal taxable income of a nonresident of
75.13Minnesota, compensation paid to a service member as defined in United States Code, title
75.1410, section 101(a)(5), for military service as defined in the Servicemembers Civil Relief
75.15Act, Public Law 108-189, section 101(2);
75.16 (15) to the extent included in federal taxable income, the amount of national service
75.17educational awards received from the National Service Trust under United States Code,
75.18title 42, sections 12601 to 12604, for service in an approved Americorps National Service
75.19program;
75.20(16) to the extent included in federal taxable income, discharge of indebtedness
75.21income resulting from reacquisition of business indebtedness included in federal taxable
75.22income under section 108(i) of the Internal Revenue Code. This subtraction applies only
75.23to the extent that the income was included in net income in a prior year as a result of the
75.24addition under section
290.01, subdivision 19a, clause (13);
75.25(17) the amount of the net operating loss allowed under section
290.095, subdivision
75.2611
, paragraph (c);
75.27(18) the amount of expenses not allowed for federal income tax purposes due
75.28to claiming the railroad track maintenance credit under section 45G(a) of the Internal
75.29Revenue Code;
75.30(19) the amount of the limitation on itemized deductions under section 68(b) of
75.31the Internal Revenue Code; and
75.32(20) the amount of the phaseout of personal exemptions under section 151(d) of
75.33the Internal Revenue Code.
new text begin ; andnew text end
75.34
new text begin (21) to the extent included in federal taxable income, the amount of qualified new text end
75.35
new text begin transportation fringe benefits described in section 132(f)(1)(A) and (B) of the Internal new text end
75.36
new text begin Revenue Code. The subtraction is limited to the lesser of the amount of qualified new text end
76.1
new text begin transportation fringe benefits received in excess of the limitations under section new text end
76.2
new text begin 132(f)(2)(A) of the Internal Revenue Code for the year or the difference between the new text end
76.3
new text begin maximum qualified parking benefits excludable under section 132(f)(2)(B) of the Internal new text end
76.4
new text begin Revenue Code minus the amount of transit benefits excludable under section 132(f)(2)(A) new text end
76.5
new text begin of the Internal Revenue Code.new text end
76.6
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxable years beginning after new text end
76.7
new text begin December 31, 2013.new text end
76.8 Sec. 13. Minnesota Statutes 2013 Supplement, section 290.01, subdivision 31, as
76.9amended by Laws 2014, chapter 150, article 1, section 13, is amended to read:
76.10 Subd. 31.
Internal Revenue Code. Unless specifically defined otherwise, "Internal
76.11Revenue Code" means the Internal Revenue Code of 1986, as amended through December
76.1220, 2013
new text begin March 26, 2014new text end . Internal Revenue Code also includes any uncodified provision
76.13in federal law that relates to provisions of the Internal Revenue Code that are incorporated
76.14into Minnesota law. When used in this chapter, the reference to "subtitle A, chapter 1,
76.15subchapter N, part 1, of the Internal Revenue Code" is to the Internal Revenue Code as
76.16amended through March 18, 2010.
76.17
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment, new text end
76.18
new text begin except the changes incorporated by federal changes are effective retroactively at the same new text end
76.19
new text begin time as the changes were effective for federal purposes.new text end
76.20 Sec. 14. Minnesota Statutes 2012, section 290.081, is amended to read:
76.21
290.081 INCOME OF NONRESIDENTS, RECIPROCITY.
76.22(a) The compensation received for the performance of personal or professional
76.23services within this state by an individual whose residence, place of abode, and place
76.24customarily returned to at least once a month is in another state, shall be excluded from
76.25gross income to the extent such compensation is subject to an income tax imposed by the
76.26state of residence; provided that such state allows a similar exclusion of compensation
76.27received by residents of Minnesota for services performed therein.
76.28(b) When it is deemed to be in the best interests of the people of this state, the
76.29commissioner may determine that the provisions of paragraph (a) shall not apply. As long
76.30as the provisions of paragraph (a) apply between Minnesota and Wisconsin, the provisions
76.31of paragraph (a) shall apply to any individual who is domiciled in Wisconsin.
76.32(c) For the purposes of paragraph (a), whenever the Wisconsin tax on Minnesota
76.33residents which would have been paid Wisconsin without paragraph (a) exceeds the
77.1Minnesota tax on Wisconsin residents which would have been paid Minnesota without
77.2paragraph (a), or vice versa, then the state with the net revenue loss resulting from
77.3paragraph (a) must be compensated by
new text begin shall receive fromnew text end the other state as provided in the
77.4agreement under paragraph (d)
new text begin the amount of such lossnew text end . This provision shall be effective
77.5for all years beginning after December 31, 1972. The data used for computing the loss
77.6to either state shall be determined on or before September 30 of the year following the
77.7close of the previous calendar year.
77.8(d)
new text begin (1)new text end Interest is payable on all amounts calculated under paragraph (c) relating
77.9to taxable years beginning after December 31, 2000. Interest accrues from July 1 of
77.10the taxable year.
77.11
new text begin (2)new text end The commissioner of revenue is authorized to enter into agreements with
77.12the state of Wisconsin specifying the compensation required under paragraph (b), the
77.13reciprocity payment due date
new text begin datesnew text end , conditions constituting delinquency, interest rates, and
77.14a method for computing interest due. Calculation of compensation under the agreement
77.15must specify if the revenue loss is determined before or after the allowance of each state's
77.16credit for taxes paid to the other state.
77.17
new text begin (3) For agreements entered into before October 1, 2014, the annual compensation new text end
77.18
new text begin required under paragraph (c) must equal at least the net revenue loss minus $1,000,000 new text end
77.19
new text begin per fiscal year.new text end
77.20
new text begin (4) For agreements entered into after September 30, 2014, the annual compensation new text end
77.21
new text begin required under paragraph (c) must equal the net revenue loss per fiscal year.new text end
77.22
new text begin (5) For the purposes of clauses (3) and (4), "net revenue loss" means the difference new text end
77.23
new text begin between the amount of Minnesota income taxes Minnesota forgoes by not taxing new text end
77.24
new text begin Wisconsin residents on income subject to reciprocity and the credit Minnesota would new text end
77.25
new text begin have been required to give under section 290.06, subdivision 22, to Minnesota residents new text end
77.26
new text begin working in Wisconsin had there not been reciprocity.new text end
77.27(e) If an agreement cannot be reached as to the amount of the loss, the commissioner
77.28of revenue and the taxing official of the state of Wisconsin shall each appoint a member
77.29of a board of arbitration and these members shall appoint the third member of the board.
77.30The board shall select one of its members as chair. Such board may administer oaths, take
77.31testimony, subpoena witnesses, and require their attendance, require the production of
77.32books, papers and documents, and hold hearings at such places as are deemed necessary.
77.33The board shall then make a determination as to the amount to be paid the other state
77.34which determination shall be final and conclusive.
77.35(f) The commissioner may furnish copies of returns, reports, or other information to
77.36the taxing official of the state of Wisconsin, a member of the board of arbitration, or a
78.1consultant under joint contract with the states of Minnesota and Wisconsin for the purpose
78.2of making a determination as to the amount to be paid the other state under the provisions
78.3of this section. Prior to the release of any information under the provisions of this section,
78.4the person to whom the information is to be released shall sign an agreement which
78.5provides that the person will protect the confidentiality of the returns and information
78.6revealed thereby to the extent that it is protected under the laws of the state of Minnesota.
78.7
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
78.8 Sec. 15. Minnesota Statutes 2013 Supplement, section 290.091, subdivision 2, as
78.9amended by Laws 2014, chapter 150, article 1, section 21, is amended to read:
78.10 Subd. 2.
Definitions. For purposes of the tax imposed by this section, the following
78.11terms have the meanings given:
78.12 (a) "Alternative minimum taxable income" means the sum of the following for
78.13the taxable year:
78.14 (1) the taxpayer's federal alternative minimum taxable income as defined in section
78.1555(b)(2) of the Internal Revenue Code;
78.16 (2) the taxpayer's itemized deductions allowed in computing federal alternative
78.17minimum taxable income, but excluding:
78.18 (i) the charitable contribution deduction under section 170 of the Internal Revenue
78.19Code;
78.20 (ii) the medical expense deduction;
78.21 (iii) the casualty, theft, and disaster loss deduction; and
78.22 (iv) the impairment-related work expenses of a disabled person;
78.23 (3) for depletion allowances computed under section 613A(c) of the Internal
78.24Revenue Code, with respect to each property (as defined in section 614 of the Internal
78.25Revenue Code), to the extent not included in federal alternative minimum taxable income,
78.26the excess of the deduction for depletion allowable under section 611 of the Internal
78.27Revenue Code for the taxable year over the adjusted basis of the property at the end of the
78.28taxable year (determined without regard to the depletion deduction for the taxable year);
78.29 (4) to the extent not included in federal alternative minimum taxable income, the
78.30amount of the tax preference for intangible drilling cost under section 57(a)(2) of the
78.31Internal Revenue Code determined without regard to subparagraph (E);
78.32 (5) to the extent not included in federal alternative minimum taxable income, the
78.33amount of interest income as provided by section
290.01, subdivision 19a, clause (1); and
78.34 (6) the amount of addition required by section
290.01, subdivision 19a, clauses (7)
78.35to (9), and (11) to (14);
79.1 less the sum of the amounts determined under the following:
79.2 (1) interest income as defined in section
290.01, subdivision 19b, clause (1);
79.3 (2) an overpayment of state income tax as provided by section
290.01, subdivision
79.419b
, clause (2), to the extent included in federal alternative minimum taxable income;
79.5 (3) the amount of investment interest paid or accrued within the taxable year on
79.6indebtedness to the extent that the amount does not exceed net investment income, as
79.7defined in section 163(d)(4) of the Internal Revenue Code. Interest does not include
79.8amounts deducted in computing federal adjusted gross income;
79.9 (4) amounts subtracted from federal taxable income as provided by section
290.01,
79.10subdivision 19b
, clauses (6), (8) to (14), and (16)
new text begin , and (21)new text end ; and
79.11(5) the amount of the net operating loss allowed under section
290.095, subdivision
79.1211
, paragraph (c).
79.13 In the case of an estate or trust, alternative minimum taxable income must be
79.14computed as provided in section 59(c) of the Internal Revenue Code.
79.15 (b) "Investment interest" means investment interest as defined in section 163(d)(3)
79.16of the Internal Revenue Code.
79.17 (c) "Net minimum tax" means the minimum tax imposed by this section.
79.18 (d) "Regular tax" means the tax that would be imposed under this chapter (without
79.19regard to this section and section 290.032), reduced by the sum of the nonrefundable
79.20credits allowed under this chapter.
79.21 (e) "Tentative minimum tax" equals
6.75 percent of alternative minimum taxable
79.22income after subtracting the exemption amount determined under subdivision 3.
79.23
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxable years beginning after new text end
79.24
new text begin December 31, 2013.new text end
79.25 Sec. 16. Minnesota Statutes 2013 Supplement, section 290A.03, subdivision 15, as
79.26amended by Laws 2014, chapter 150, article 1, section 22, is amended to read:
79.27 Subd. 15.
Internal Revenue Code. "Internal Revenue Code" means the Internal
79.28Revenue Code of 1986, as amended through December 20, 2013
new text begin March 26, 2014new text end .
79.29
new text begin EFFECTIVE DATE.new text end new text begin This section is effective retroactively for property tax refunds new text end
79.30
new text begin based on property taxes payable after December 31, 2013, and rent paid after December new text end
79.31
new text begin 31, 2012.new text end
79.32 Sec. 17. Minnesota Statutes 2013 Supplement, section 291.005, subdivision 1, as
79.33amended by Laws 2014, chapter 150, article 3, section 3, is amended to read:
80.1 Subdivision 1.
Scope. Unless the context otherwise clearly requires, the following
80.2terms used in this chapter shall have the following meanings:
80.3 (1) "Commissioner" means the commissioner of revenue or any person to whom the
80.4commissioner has delegated functions under this chapter.
80.5 (2) "Federal gross estate" means the gross estate of a decedent as required to be valued
80.6and otherwise determined for federal estate tax purposes under the Internal Revenue Code
new text begin , new text end
80.7
new text begin increased by the value of any property in which the decedent had a qualifying income new text end
80.8
new text begin interest for life and for which an election was made under section 291.03, subdivision 1d, new text end
80.9
new text begin for Minnesota estate tax purposes, but was not made for federal estate tax purposesnew text end .
80.10 (3) "Internal Revenue Code" means the United States Internal Revenue Code of
80.111986, as amended through March 1
new text begin March 26new text end , 2014.
80.12 (4) "Minnesota gross estate" means the federal gross estate of a decedent after
80.13(a) excluding therefrom any property included in the estate which has its situs outside
80.14Minnesota, and (b) including any property omitted from the federal gross estate which
80.15is includable in the estate, has its situs in Minnesota, and was not disclosed to federal
80.16taxing authorities.
80.17 (5) "Nonresident decedent" means an individual whose domicile at the time of
80.18death was not in Minnesota.
80.19 (6) "Personal representative" means the executor, administrator or other person
80.20appointed by the court to administer and dispose of the property of the decedent. If there
80.21is no executor, administrator or other person appointed, qualified, and acting within this
80.22state, then any person in actual or constructive possession of any property having a situs in
80.23this state which is included in the federal gross estate of the decedent shall be deemed
80.24to be a personal representative to the extent of the property and the Minnesota estate tax
80.25due with respect to the property.
80.26 (7) "Resident decedent" means an individual whose domicile at the time of death
80.27was in Minnesota.
80.28 (8) "Situs of property" means, with respect to:
80.29 (i) real property, the state or country in which it is located;
80.30 (ii) tangible personal property, the state or country in which it was normally kept
80.31or located at the time of the decedent's death or for a gift of tangible personal property
80.32within three years of death, the state or country in which it was normally kept or located
80.33when the gift was executed; and
80.34 (iii)
new text begin a qualified work of art, as defined in section 2503(g)(2) of the Internal Revenue new text end
80.35
new text begin Code, owned by a nonresident decedent and that is normally kept or located in this state new text end
80.36
new text begin because it is on loan to an organization, qualifying as exempt from taxation under section new text end
81.1
new text begin 501(c)(3) of the Internal Revenue Code, that is located in Minnesota, the situs of the art is new text end
81.2
new text begin deemed to be outside of Minnesota, notwithstanding the provisions of item (ii); andnew text end
81.3
new text begin (iv) new text end intangible personal property, the state or country in which the decedent was
81.4domiciled at death or for a gift of intangible personal property within three years of death,
81.5the state or country in which the decedent was domiciled when the gift was executed.
81.6 For a nonresident decedent with an ownership interest in a pass-through entity with
81.7assets that include real or tangible personal property, situs of the real or tangible personal
81.8property
new text begin , including qualified works of art,new text end is determined as if the pass-through entity does
81.9not exist and the real or tangible personal property is personally owned by the decedent.
81.10If the pass-through entity is owned by a person or persons in addition to the decedent,
81.11ownership of the property is attributed to the decedent in proportion to the decedent's
81.12capital ownership share of the pass-through entity.
81.13(9) "Pass-through entity" includes the following:
81.14(i) an entity electing S corporation status under section 1362 of the Internal Revenue
81.15Code;
81.16(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code;
81.17(iii) a single-member limited liability company or similar entity, regardless of
81.18whether it is taxed as an association or is disregarded for federal income tax purposes
81.19under Code of Federal Regulations, title 26, section 301.7701-3; or
81.20(iv) a trust to the extent the property is includible in the decedent's federal gross
81.21estate; but excludes
81.22 (v) an entity whose ownership interest securities are traded on an exchange regulated
81.23by the Securities and Exchange Commission as a national securities exchange under
81.24section 6 of the Securities Exchange Act, United States Code, title 15, section 78f.
81.25
new text begin EFFECTIVE DATE.new text end new text begin This section is effective retroactively for estates of decedents new text end
81.26
new text begin dying after December 31, 2013.new text end
81.27 Sec. 18. Minnesota Statutes 2012, section 291.016, subdivision 1, as added by Laws
81.282014, chapter 150, article 3, section 4, is amended to read:
81.29 Subdivision 1.
General. For purposes of the tax under this chapter, the Minnesota
81.30taxable estate equals the federal taxable estate as provided under section 2051 of the Internal
81.31Revenue Code, without regard to whether the estate is subject to the federal estate tax:
81.32(1)
new text begin increased by the value of any property in which the decedent had a qualifying new text end
81.33
new text begin income interest for life and for which an election was made under section 291.03, new text end
81.34
new text begin subdivision 1d, for Minnesota estate tax purposes, but was not made for federal estate new text end
81.35
new text begin tax purposes;new text end
82.1
new text begin (2) new text end increased by the additions under subdivision 2; and
82.2(2)
new text begin (3)new text end decreased by the subtraction under subdivision 3.
82.3
new text begin EFFECTIVE DATE.new text end new text begin This section is effective retroactively for estates of decedents new text end
82.4
new text begin dying after December 31, 2013.new text end
82.5 Sec. 19. Minnesota Statutes 2012, section 291.031, as added by Laws 2014, chapter
82.6150, article 3, section 7, is amended to read:
82.7
291.031 CREDITS.
82.8(a) The estate of a nonresident decedent that is subject to tax under this chapter on
82.9the value of Minnesota situs property held in a pass-through entity is allowed a credit
82.10against the tax due under this section
new text begin 291.03 new text end equal to the lesser of:
82.11(1) the amount of estate or inheritance tax paid to another state that is attributable to
82.12the Minnesota situs property held in the pass-through entity; or
82.13(2) the amount of tax paid under this section attributable to the Minnesota situs
82.14property held in the pass-through entity.
82.15(b) The amount of tax attributable to the Minnesota situs property held in the
82.16pass-through entity must be determined by the increase in the estate or inheritance tax that
82.17results from including the market value of the property in the estate or treating the value
82.18as a taxable inheritance to the recipient of the property.
82.19
new text begin EFFECTIVE DATE.new text end new text begin This section is effective retroactively for estates of decedents new text end
82.20
new text begin dying after December 31, 2013.new text end
82.21 Sec. 20. Laws 2014, chapter 150, article 3, section 4, the effective date, is amended to
82.22read:
82.23
EFFECTIVE DATE.This section is effective retroactively for estates of decedents
82.24dying after December 31, 2013
new text begin , and for taxable gifts made after June 30, 2013new text end .
82.25
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
82.26 Sec. 21.
new text begin DEFINITION OF TAXABLE GIFT FOR DECEDENTS DYING new text end
82.27
new text begin BEFORE JANUARY 1, 2014.new text end
82.28
new text begin For estates of decedents dying before January 1, 2014, "taxable gift" as used by new text end
82.29
new text begin Minnesota Statutes, section 291.005, subdivision 1, paragraph (4), means a transfer by gift new text end
82.30
new text begin which is included in taxable gifts for federal gift tax purposes under the following sections new text end
82.31
new text begin of the Internal Revenue Code: section 529; section 530; section 2501(a)(4); section 2503; new text end
83.1
new text begin sections 2511 to 2514; and sections 2516 to 2519; less the deductions allowed in sections new text end
83.2
new text begin 2522 to 2524 of the Internal Revenue Code, and after excluding taxable gifts of any new text end
83.3
new text begin property that has its situs outside Minnesota and including taxable gifts of any property new text end
83.4
new text begin that has its situs in Minnesota and were not disclosed to federal taxing authorities.new text end
83.5
new text begin EFFECTIVE DATE.new text end new text begin This section is effective retroactively for taxable gifts made new text end
83.6
new text begin after June 30, 2013.new text end
83.7 Sec. 22.
new text begin TEMPORARY READING CREDIT.new text end
83.8
new text begin Subdivision 1.new text end new text begin Reading credit.new text end new text begin (a) A taxpayer is allowed a credit, up to $2,000, new text end
83.9
new text begin against the tax imposed by Minnesota Statutes, chapter 290. The credit amount equals 75 new text end
83.10
new text begin percent of the amount of eligible expenses paid by a taxpayer who is a parent or guardian new text end
83.11
new text begin of a qualifying child:new text end
83.12
new text begin (1) who has been evaluated for determination of a specific learning disability under new text end
83.13
new text begin Minnesota Rules, part 3525.1341, and was not found to meet the criteria under Minnesota new text end
83.14
new text begin Rules, part 3525.1341, subpart 2, to have a specific learning disability; andnew text end
83.15
new text begin (2) for whom the evaluation indicated a determination of a deficiency in basic new text end
83.16
new text begin reading skills, reading comprehension, or reading fluency that impair a child to meet new text end
83.17
new text begin expected age or grade-level standards.new text end
83.18
new text begin (b) For purposes of this subdivision, the following definitions apply:new text end
83.19
new text begin (1) "eligible expenses" means actual expenses, less the amount of expenses used to new text end
83.20
new text begin claim the credit under Minnesota Statutes, section 290.0674, subdivision 1, paid by the new text end
83.21
new text begin taxpayer for tutoring, instruction, or treatment by an instructor and not compensated by new text end
83.22
new text begin insurance, pretax account, or otherwise, for purposes of meeting the academic standards new text end
83.23
new text begin required under Minnesota Statutes, section 120B.021;new text end
83.24
new text begin (2) "instructor" means a person qualifying under Minnesota Statutes, section new text end
83.25
new text begin 120A.22, subdivision 10, clauses (1) to (5), who is not a lineal ancestor or sibling of new text end
83.26
new text begin the qualifying child; new text end
83.27
new text begin (3) "treatment" means instruction that:new text end
83.28
new text begin (i) teaches language decoding skills in a systematic manner;new text end
83.29
new text begin (ii) uses recognized diagnostic assessments to determine what intervention would be new text end
83.30
new text begin most appropriate for individual students; andnew text end
83.31
new text begin (iii) employs a research-based method; andnew text end
83.32
new text begin (4) "qualifying child" has the meaning given in section 32(c)(3) of the Internal new text end
83.33
new text begin Revenue Code.new text end
84.1
new text begin (c) A taxpayer claiming the credit under this subdivision must provide documentation new text end
84.2
new text begin of eligibility for the credit in a form and manner prescribed by the commissioner of new text end
84.3
new text begin revenue in consultation with the commissioner of education. The documentation under new text end
84.4
new text begin this paragraph must not disclose any information other than that necessary to prove new text end
84.5
new text begin eligibility for the credit allowed under this subdivision.new text end
84.6
new text begin (d) For a nonresident or part-year resident, the credit determined under this section new text end
84.7
new text begin must be allocated based on the percentage calculated under Minnesota Statutes, section new text end
84.8
new text begin 290.06, subdivision 2c, paragraph (e).new text end
84.9
new text begin (e) The amount used to claim the credit under this section must be excluded from new text end
84.10
new text begin any amount subtracted from federal taxable income under section 290.01, subdivision new text end
84.11
new text begin 19b, clause (3).new text end
84.12
new text begin Subd. 2.new text end new text begin Assignment of refunds.new text end new text begin The provisions of Minnesota Statutes, section new text end
84.13
new text begin 290.0679, except for subdivision 1, paragraphs (a) and (b), apply to the assignment of new text end
84.14
new text begin refunds authorized under this section. For purposes of assignment of refund under this new text end
84.15
new text begin section, a "qualifying taxpayer" means a taxpayer qualified to receive a credit under this new text end
84.16
new text begin section. In no case shall any condition for assignment require disclosure of the specific new text end
84.17
new text begin findings of an evaluation for a specific learning disability.new text end
84.18
new text begin Subd. 3.new text end new text begin Credit to be refundable.new text end new text begin If the amount of total credits that the claimant is new text end
84.19
new text begin eligible to receive under this section exceeds the claimant's tax liability under Minnesota new text end
84.20
new text begin Statutes, chapter 290, the commissioner of revenue shall refund the excess to the claimant.new text end
84.21
new text begin Subd. 4.new text end new text begin Appropriation.new text end new text begin An amount sufficient to pay the refunds authorized under new text end
84.22
new text begin this section is appropriated to the commissioner of revenue from the general fund.new text end
84.23
new text begin Subd. 5.new text end new text begin Report.new text end new text begin By March 1, 2016, the commissioner of revenue, in compliance new text end
84.24
new text begin with Minnesota Statutes, sections 3.195 and 3.197, must provide a report to the chairs and new text end
84.25
new text begin ranking minority members of the committees of the house of representatives and senate new text end
84.26
new text begin with jurisdiction over taxes and education on:new text end
84.27
new text begin (1) the number of taxpayers claiming the credit under this section and the average new text end
84.28
new text begin amount of credits claimed; andnew text end
84.29
new text begin (2) the administration of the credit, including recommendations for ensuring new text end
84.30
new text begin compliance.new text end
84.31
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxable years beginning after new text end
84.32
new text begin December 31, 2013, and before January 1, 2015 only.new text end
85.1
ARTICLE 5
85.2
MINERALS TAXES
85.3 Section 1. Minnesota Statutes 2012, section 276A.06, subdivision 3, as amended by
85.4Laws 2014, chapter 150, article 6, section 5, is amended to read:
85.5 Subd. 3.
Apportionment of levy. The county auditor shall apportion the levy of
85.6each governmental unit in the county in the manner prescribed by this subdivision. The
85.7auditor shall:
85.8(a) by August 20 of 2014 and each subsequent year, determine the
new text begin preliminary new text end
85.9areawide portion of the levy for each governmental unit by multiplying the local tax
85.10rate of the governmental unit for the preceding levy year times the distribution value set
85.11forth in subdivision 2, clause (b),
new text begin ;new text end
85.12
new text begin (b)new text end new text begin by September 5 of 2014 and each subsequent year, determine the areawide new text end
85.13
new text begin portion of the levy for each governmental unit by multiplying the preliminary areawide new text end
85.14
new text begin portion of the levy for each governmental unitnew text end times a fraction, the numerator of which is
85.15the difference between the sum of the
new text begin preliminary new text end areawide levies for all governmental
85.16units in the area minus the school fund allocation and the denominator is the sum of the
85.17
new text begin preliminary new text end areawide levy for all governmental units in the area; and
85.18(b)
new text begin (c)new text end by September 5 of 2014 and each subsequent year, determine the local
85.19portion of the current year's levy by subtracting the resulting amount from clause (a) from
85.20the governmental unit's current year's levy.
85.21
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxes payable in 2015 and new text end
85.22
new text begin thereafter.new text end
85.23 Sec. 2. Minnesota Statutes 2012, section 276A.06, subdivision 5, as amended by Laws
85.242014, chapter 150, article 6, section 6, is amended to read:
85.25 Subd. 5.
Areawide tax rate. On or before August 25 of 1997 and each subsequent
85.26year, the county auditor shall certify to the administrative auditor that
new text begin the preliminarynew text end
85.27 portion of the levy of each governmental unit determined pursuant to subdivision 3, clause
85.28(a). The administrative auditor shall then determine the areawide tax rate sufficient to
85.29yield an amount equal to the sum of the levies from the
new text begin preliminary new text end areawide net tax
85.30capacity plus the school fund allocation. On or before September 1, the administrative
85.31auditor shall certify the areawide tax rate to each of the county auditors.
85.32
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxes payable in 2015 and new text end
85.33
new text begin thereafter.new text end
86.1 Sec. 3. Minnesota Statutes 2013 Supplement, section 298.018, subdivision 1, is
86.2amended to read:
86.3 Subdivision 1.
Within taconite assistance area. The proceeds of the tax paid under
86.4sections
298.015 and
298.016 on ores, metals, or minerals mined or extracted within the
86.5taconite assistance area defined in section
273.1341, shall be allocated as follows:
86.6 (1) five percent to the city or town within which the minerals or energy resources
86.7are mined or extracted
new text begin , or within which the concentrate was produced. If the mining new text end
86.8
new text begin and concentration, or different steps in either process, are carried on in more than one new text end
86.9
new text begin taxing district, the commissioner shall apportion equitably the proceeds among the new text end
86.10
new text begin cities and towns by attributing 50 percent of the proceeds of the tax to the operation of new text end
86.11
new text begin mining or extraction, and the remainder to the concentrating plant and to the processes of new text end
86.12
new text begin concentration, and with respect to each thereof giving due consideration to the relative new text end
86.13
new text begin extent of the respective operations performed in each taxing districtnew text end ;
86.14 (2) ten percent to the taconite municipal aid account to be distributed as provided
86.15in section
298.282;
86.16 (3) ten percent to the school district within which the minerals or energy resources
86.17are mined or extracted
new text begin , or within which the concentrate was produced. If the mining new text end
86.18
new text begin and concentration, or different steps in either process, are carried on in more than one new text end
86.19
new text begin school district, distribution among the school districts must be based on the apportionment new text end
86.20
new text begin formula prescribed in clause (1)new text end ;
86.21 (4) 20 percent to a group of school districts comprised of those school districts
86.22wherein the mineral or energy resource was mined or extracted or in which there is a
86.23qualifying municipality as defined by section
273.134, paragraph (b), in direct proportion
86.24to school district indexes as follows: for each school district, its pupil units determined
86.25under section
126C.05 for the prior school year shall be multiplied by the ratio of the
86.26average adjusted net tax capacity per pupil unit for school districts receiving aid under
86.27this clause as calculated pursuant to chapters 122A, 126C, and 127A for the school year
86.28ending prior to distribution to the adjusted net tax capacity per pupil unit of the district.
86.29Each district shall receive that portion of the distribution which its index bears to the sum
86.30of the indices for all school districts that receive the distributions;
86.31 (5) 20 percent to the county within which the minerals or energy resources are
86.32mined or extracted
new text begin , or within which the concentrate was produced. If the mining and new text end
86.33
new text begin concentration, or different steps in either process, are carried on in more than one county, new text end
86.34
new text begin distribution among the counties must be based on the apportionment formula prescribed in new text end
86.35
new text begin clause (1), provided that any county receiving distributions under this clause shall pay one new text end
86.36
new text begin percent of its proceeds to the Range Association of Municipalities and Schoolsnew text end ;
87.1 (6) 20 percent to St. Louis County acting as the counties' fiscal agent to be
87.2distributed as provided in sections
273.134 to
273.136;
87.3 (7) five percent to the Iron Range Resources and Rehabilitation Board for the
87.4purposes of section
298.22;
87.5 (8) five
new text begin threenew text end percent to the Douglas J. Johnson economic protection trust fund; and
87.6 (9) five
new text begin sevennew text end percent to the taconite environmental protection fund.
87.7 The proceeds of the tax shall be distributed on July 15 each year.
87.8
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2014.new text end
87.9 Sec. 4. Minnesota Statutes 2012, section 298.28, subdivision 5, as amended by Laws
87.102014, chapter 150, article 6, section 11, is amended to read:
87.11 Subd. 5.
Counties. (a)
21.05 cents per taxable ton
new text begin for distributions in 2015 through new text end
87.12
new text begin 2023, and 26.05 cents per taxable ton for distributions beginning in 2024 new text end is allocated
87.13to counties to be distributed, based upon certification by the commissioner of revenue,
87.14under paragraphs (b) to (d).
87.15 (b)
10.525 cents per taxable ton shall be distributed to the county in which the
87.16taconite is mined or quarried or in which the concentrate is produced, less any amount
87.17which is to be distributed pursuant to paragraph (c). The apportionment formula prescribed
87.18in subdivision 2 is the basis for the distribution.
87.19 (c) If an electric power plant owned by and providing the primary source of power for
87.20a taxpayer mining and concentrating taconite is located in a county other than the county
87.21in which the mining and the concentrating processes are conducted, one cent per taxable
87.22ton of the tax distributed to the counties pursuant to paragraph (b) and imposed on and
87.23collected from such taxpayer shall be paid to the county in which the power plant is located.
87.24 (d) 10.525 cents per taxable ton
new text begin for distributions in 2015 through 2023, and 15.525 new text end
87.25
new text begin cents per taxable ton for distributions beginning in 2024 new text end shall be paid to the county from
87.26which the taconite was mined, quarried or concentrated to be deposited in the county road
87.27and bridge fund. If the mining, quarrying and concentrating, or separate steps in any of
87.28those processes are carried on in more than one county, the commissioner shall follow the
87.29apportionment formula prescribed in subdivision 2.
87.30
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for distributions beginning in 2015 new text end
87.31
new text begin and thereafter.new text end
87.32 Sec. 5. Minnesota Statutes 2012, section 298.28, subdivision 7a, as added by Laws
87.332014, chapter 150, article 6, section 13, is amended to read:
88.1 Subd. 7a.
Iron Range school consolidation and cooperatively operated school
88.2
account. The following amounts must be allocated to the Iron Range Resources and
88.3Rehabilitation Board to be deposited in the Iron Range school consolidation and
88.4cooperatively operated school account that is hereby created:
88.5(1)
new text begin (i) for distributions in 2015 through 2023, new text end ten cents per taxable ton of the tax
88.6imposed under section
298.24new text begin ; and (ii) for distributions beginning in 2024, five cents per new text end
88.7
new text begin taxable ton of the tax imposed under section 298.24new text end ;
88.8(2) the amount as determined under section
298.17, paragraph (b), clause (3); and
88.9(3) for distributions in 2015 through 2017, an amount equal to two-thirds of the
88.10increased tax proceeds attributable to the increase in the implicit price deflator as provided
88.11in section
298.24, subdivision 1new text begin (i) for distributions in 2015, an amount equal to two-thirds new text end
88.12
new text begin of the increased tax proceeds attributable to the increase in the implicit price deflator as new text end
88.13
new text begin provided in section 298.24, subdivision 1, with the remaining one-third to be distributed to new text end
88.14
new text begin the Douglas J. Johnson Economic Protection Trust Fund;new text end
88.15
new text begin (ii) for distributions in 2016, an amount equal to two-thirds of the sum of the new text end
88.16
new text begin increased tax proceeds attributable to the increase in the implicit price deflator as provided new text end
88.17
new text begin in section 298.24, subdivision 1, for distribution years 2015 and 2016, with the remaining new text end
88.18
new text begin one-third to be distributed to the Douglas J. Johnson Economic Protection Trust Fund; andnew text end
88.19
new text begin (iii) for distributions in 2017, an amount equal to two-thirds of the sum of the new text end
88.20
new text begin increased tax proceeds attributable to the increase in the implicit price deflator as provided new text end
88.21
new text begin in section 298.24, subdivision 1, for distribution years 2015, 2016, and 2017, with the new text end
88.22
new text begin remaining one-third to be distributed to the Douglas J. Johnson Economic Protection new text end
88.23
new text begin Trust Fund; andnew text end
88.24
new text begin (4) any other amount as provided by lawnew text end .
88.25Expenditures from this account shall be made only to provide disbursements to
88.26assist school districts with the payment of bonds that were issued for qualified school
88.27projects, or for any other
new text begin school new text end disbursement as approved by the Iron Range Resources
88.28and Rehabilitation Board. For purposes of this section, "qualified school projects" means
88.29school projects within the taconite assistance area as defined in section
273.1341, that were
88.30(1) approved, by referendum, after December 7, 2009
new text begin April 3, 2006new text end ; and (2) approved by
88.31the commissioner of education pursuant to section
123B.71.
88.32No expenditure under this section shall be made unless approved by seven members
88.33of the Iron Range Resources and Rehabilitation Board.
88.34
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for distributions beginning in 2015 new text end
88.35
new text begin and thereafter.new text end
89.1 Sec. 6. Minnesota Statutes 2013 Supplement, section 298.28, subdivision 10, as
89.2amended by Laws 2014, chapter 150, article 6, section 15, is amended to read:
89.3 Subd. 10.
Increase. (a) Except as provided in paragraph (b), for distributions
89.4in 2000 through 2014 and for distributions in 2018 and subsequent years, the amount
89.5determined under subdivision 9 shall be increased in the same proportion as the increase
89.6in the implicit price deflator as provided in section
298.24, subdivision 1. Beginning with
89.7distributions in 2018, the amount determined under subdivision 6, paragraph (a), shall be
89.8increased in the same proportion as the increase in the implicit price deflator as provided
89.9in section
298.24, subdivision 1.
89.10(b) For distributions in 2005 and subsequent years, an amount equal to the increased
89.11tax proceeds attributable to the increase in the implicit price deflator as provided in
89.12section
298.24, subdivision 1, for taxes paid in 2005, except for the amount of revenue
89.13increases provided in subdivision 4, paragraph (d), is distributed to the grant and loan fund
89.14established in section
298.2961, subdivision 4.
89.15(c) For distributions in 2015 through 2017, an amount equal to two-thirds of the
89.16increased tax proceeds attributable to the increase in the implicit price deflator as provided
89.17in section
298.24, subdivision 1, is distributed to the Iron Range school consolidation and
89.18cooperatively operated school account in section
298.28, subdivision 7a, with the remaining
89.19one-third to be distributed to the Douglas J. Johnson Economic Protection Trust Fund.
89.20
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for distributions beginning in 2015 new text end
89.21
new text begin and thereafter.new text end
89.22 Sec. 7. Minnesota Statutes 2012, section 298.75, subdivision 2, is amended to read:
89.23 Subd. 2.
Tax imposed. (a) Except as provided in paragraph (e), a county that
89.24imposes the aggregate production tax shall impose upon every operator a production tax
89.25of 21.5 cents per cubic yard or 15 cents per ton of aggregate material excavated in the
89.26county except that the county board may decide not to impose this tax if it determines
89.27that in the previous year operators removed less than 20,000 tons or 14,000 cubic yards of
89.28aggregate material from that county. The tax shall not be imposed on aggregate material
89.29excavated in the county until the aggregate material is transported from the extraction site
89.30or sold, whichever occurs first. When aggregate material is stored in a stockpile within the
89.31state of Minnesota and a public highway, road or street is not used for transporting the
89.32aggregate material, the tax shall not be imposed until either when the aggregate material
89.33is sold, or when it is transported from the stockpile site, or when it is used from the
89.34stockpile, whichever occurs first.
90.1 (b) Except as provided in paragraph (e), a county that imposes the aggregate
90.2production tax under paragraph (a) shall impose upon every importer a production tax
90.3of 21.5 cents per cubic yard or 15 cents per ton of aggregate material imported into the
90.4county. The tax shall be imposed when the aggregate material is imported from the
90.5extraction site or sold. When imported aggregate material is stored in a stockpile within
90.6the state of Minnesota and a public highway, road, or street is not used for transporting
90.7the aggregate material, the tax shall be imposed either when the aggregate material is
90.8sold, when it is transported from the stockpile site, or when it is used from the stockpile,
90.9whichever occurs first. The tax shall be imposed on an importer when the aggregate
90.10material is imported into the county that imposes the tax.
90.11 (c) If the aggregate material is transported directly from the extraction site to a
90.12waterway, railway, or another mode of transportation other than a highway, road or street,
90.13the tax imposed by this section shall be apportioned equally between the county where the
90.14aggregate material is extracted and the county to which the aggregate material is originally
90.15transported. If that destination is not located in Minnesota, then the county where the
90.16aggregate material was extracted shall receive all of the proceeds of the tax.
90.17 (d) A county, city, or town that receives revenue under this section is prohibited
90.18from imposing any additional host community fees on aggregate production within that
90.19county, city, or town.
90.20(e) A county that borders two other states and that is not contiguous to a county
90.21that imposes a tax under this section may impose the taxes under paragraphs (a) and (b)
90.22at the rate of ten cents per cubic yard or seven cents per ton. This paragraph expires
90.23December 31, 2014
new text begin 2024new text end .
90.24
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
90.25 Sec. 8. Laws 2008, chapter 366, article 10, section 15, is amended to read:
90.26 Sec. 15.
2008 DISTRIBUTIONS ONLY.
90.27 For distribution in 2008 only, a special fund is established to receive 11.4 cents per ton
90.28that otherwise would be allocated under Minnesota Statutes, section
298.28, subdivision 6.
90.29If sufficient funds are not available under Minnesota Statutes, section
298.28, subdivision
90.306
, to make the payments required under this section and under Minnesota Statutes, section
90.31298.28, subdivision 6
, the remaining amount needed to total 11.4 cents per ton may be
90.32taken from funds available under Minnesota Statutes, section
298.28, subdivision 9. If
90.332008 H.F. No. 1812 is enacted and includes a provision that distributes funds that would
90.34otherwise be allocated under Minnesota Statutes, section
298.28, subdivision 6, in a
90.35manner different from the distribution required in this section, the distribution in this
91.1section supersedes the distribution set in 2008 H.F. No. 1812 notwithstanding Minnesota
91.2Statutes, section
645.26. The following amounts are allocated to St. Louis County acting
91.3as the fiscal agent for the recipients for the following specified purposes:
91.4 (1) two cents per ton must be paid to the Hibbing Economic Development Authority
91.5to retire bonds and for economic development purposes;
91.6 (2) one cent per ton must be divided among and paid in equal shares to each of the
91.7board of St. Louis County School District No. 2142, the board of Ely School District No.
91.8696, the board of Mountain Iron-Buhl School District No. 712, and the board of Virginia
91.9School District No. 706 for each to study the potential for and impact of consolidation
91.10and streamlining the operations of their school districts;
91.11 (3) 0.25 cent per ton must be paid to the city of Grand Rapids, for industrial park work;
91.12 (4) 0.65 cent per ton must be paid to the city of Aitkin, for sewer and water for
91.13housing
new text begin economic developmentnew text end projects;
91.14 (5) 0.5 cent per ton must be paid to the city of Crosby, for well and water tower
91.15infrastructure;
91.16 (6) 0.5 cent per ton must be paid to the city of Two Harbors, for well and water
91.17tower infrastructure;
91.18 (7) 1.5 cents per ton must be paid to the city of Silver Bay to pay for health and
91.19safety and maintenance improvements at a former elementary school building that is
91.20currently owned by the city, to be used for economic development purposes;
91.21 (8) 1.5 cents per ton must be paid to St. Louis County to extend water and sewer
91.22lines from the city of Chisholm to the St. Louis County fairgrounds;
91.23 (9) 1.5 cents per ton must be paid to the White Community Hospital for debt
91.24restructuring;
91.25 (10) 0.5 cent per ton must be paid to the city of Keewatin for street, sewer, and
91.26water improvements;
91.27 (11) 0.5 cent per ton must be paid to the city of Calumet for street, sewer, and water
91.28improvements; and
91.29 (12) one cent per ton must be paid to Breitung township for sewer and water
91.30extensions associated with the development of a state park, provided that if a new state
91.31park is not established in Breitung township by July 1, 2009, the money provided in
91.32this clause must be transferred to the northeast Minnesota economic development fund
91.33established in Minnesota Statutes, section
298.2213.
91.34
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment. new text end
91.35
new text begin Upon enactment, the city of Aitkin must release all funds under this section to St. Louis new text end
91.36
new text begin County acting as fiscal agent by July 1, 2014.new text end
92.1 Sec. 9. Laws 2013, chapter 143, article 11, section 10, is amended to read:
92.2 Sec. 10.
2013 DISTRIBUTION ONLY.
92.3For the 2013 distribution, a special fund is established to receive 38.7 cents per ton of
92.4any excess of the balance remaining after distribution of amounts required under Minnesota
92.5Statutes, section
298.28, subdivision 6. The following amounts are allocated to St. Louis
92.6County acting as the fiscal agent for the recipients for the following specific purposes:
92.7(1) 5.1 cents per ton to the city of Hibbing for improvements to the city's water
92.8supply system;
92.9(2) 4.3 cents per ton to the city of Mountain Iron for the cost of moving utilities
92.10required as a result of actions undertaken by United States Steel Corporation;
92.11(3) 2.5 cents per ton to the city of Biwabik for improvements to the city's water supply
92.12system, payable upon agreement with ArcelorMittal to satisfy water permit conditions;
92.13(4) 2 cents per ton to the city of Tower for the Tower Marina;
92.14(5) 2.4 cents per ton to the city of Grand Rapids for an eco-friendly heat transfer
92.15system to replace aging effluent lines and for parking lot repaving;
92.16(6) 2.4 cents per ton to the city of Two Harbors for wastewater treatment plant
92.17improvements;
92.18(7) 0.9 cents per ton to the city of Ely for the sanitary sewer replacement project;
92.19(8) 0.6 cents per ton to the town of Crystal Bay for debt service of the Claire Nelson
92.20Intermodal Transportation Center;
92.21(9) 0.5 cents per ton to the Greenway Joint Recreation Board for the Coleraine
92.22hockey arena renovations;
92.23(10) 1.2 cents per ton for the West Range Regional Fire Hall and Training Center
92.24to merge the existing fire services of Coleraine, Bovey, Taconite Marble, Calumet, and
92.25Greenway Township;
92.26(11) 2.5 cents per ton to the city of Hibbing for the Memorial Building;
92.27(12) 0.7 cents per ton to the city of Chisholm for public works infrastructure;
92.28(13) 1.8 cents per ton to the Crane Lake Water and Sanitary District for sanitary
92.29sewer extension;
92.30(14) 2.5 cents per ton for the city of Buhl for the roof on the Mesabi Academy;
92.31(15) 1.2 cents per ton to the city of Gilbert for the New Jersey/Ohio Avenue project;
92.32(16) 1.5
new text begin 2.0new text end cents per ton to the city of Cook for street improvements, business park
92.33infrastructure, and a maintenance garage;
92.34(17) 0.5 cents per ton to the city of Cook for a water line project;
92.35(18)
new text begin (17)new text end 1.8 cents per ton to the city of Eveleth to be used for Jones Street
92.36reconstruction and the city auditorium;
93.1(19)
new text begin (18)new text end 0.5 cents
new text begin per tonnew text end for the city of Keewatin for an electrical substation and
93.2water line replacements;
93.3(20)
new text begin (19)new text end 3.3 cents
new text begin per tonnew text end for the city of Virginia for Fourth Street North
93.4infrastructure and Franklin Park improvement; and
93.5(21)
new text begin (20)new text end 0.5 cents per ton to the city of Grand Rapids for an economic development
93.6project.
93.7
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
93.8 Sec. 10.
new text begin REALLOCATION OF BOND PAYMENTS.new text end
93.9
new text begin In each year subsequent to the year in which the following appropriations terminate new text end
93.10
new text begin under their terms, an amount equal to the amount payable in 2013 based upon 2012 new text end
93.11
new text begin production of the terminating appropriation is appropriated from the same sources listed new text end
93.12
new text begin in this section to the Iron Range school consolidation and cooperatively operated school new text end
93.13
new text begin account under Laws 2014, chapter 150, article 6, section 13:new text end
93.14
new text begin (1) Laws 1996, chapter 412, article 5, section 21, subdivision 3, appropriation for new text end
93.15
new text begin bonds of Independent School District No. 166, Cook County;new text end
93.16
new text begin (2) Laws 1996, chapter 412, article 5, section 20, subdivision 2, appropriation for new text end
93.17
new text begin bonds of Independent School District No. 696, Ely;new text end
93.18
new text begin (3) Laws 1996, chapter 412, article 5, section 20, subdivision 2, appropriation for new text end
93.19
new text begin bonds of Independent School District No. 706, Virginia:new text end
93.20
new text begin (4) Laws 1996, chapter 412, article 5, section 20, subdivision 2, appropriation for new text end
93.21
new text begin bonds of Independent School District No. 2154, Eveleth-Gilbert;new text end
93.22
new text begin (5) Laws 1998, chapter 398, article 4, section 17, subdivision 2, appropriation for new text end
93.23
new text begin bonds of Independent School District No. 712, Mountain Iron-Buhl;new text end
93.24
new text begin (6) Laws 2000, chapter 489, article 5, section 24, subdivision 1, appropriation for new text end
93.25
new text begin bonds of Independent School District No. 695, Chisholm;new text end
93.26
new text begin (7) Laws 2000, chapter 489, article 5, section 25, subdivision 1, appropriation for new text end
93.27
new text begin bonds of Independent School District No. 316, Greenway-Coleraine;new text end
93.28
new text begin (8) Laws 2000, chapter 489, article 5, section 26, subdivision 1, appropriation for new text end
93.29
new text begin bonds of Independent School District No. 381, Lake Superior; andnew text end
93.30
new text begin (9) Laws 2008, chapter 154, article 8, section 18, appropriation for bonds of new text end
93.31
new text begin Independent School District No. 2711, Mesabi East.new text end
93.32
new text begin EFFECTIVE DATE.new text end new text begin This section is effective beginning with the distribution new text end
93.33
new text begin in 2015.new text end
94.1 Sec. 11.
new text begin 2014 DISTRIBUTION ONLY.new text end
94.2
new text begin For the 2014 distribution, a special fund is established to receive 18.84 cents per ton of new text end
94.3
new text begin any excess of the balance remaining after distribution of amounts required under Minnesota new text end
94.4
new text begin Statutes, section 298.28, subdivision 6. The following amounts are allocated to St. Louis new text end
94.5
new text begin County acting as the fiscal agent for the recipients for the following specific purposes:new text end
94.6
new text begin (1) 1.3 cents per ton to the city of Silver Bay for a water project under Highway 61;new text end
94.7
new text begin (2) 0.5 cents per ton to the city of Grand Rapids for soil and landscape remediation new text end
94.8
new text begin at the Reif Center;new text end
94.9
new text begin (3) 0.65 cents per ton to the city of LaPrairie for sewer, water, and road improvements new text end
94.10
new text begin to accommodate business expansion in the city;new text end
94.11
new text begin (4) 0.78 cents per ton to the city of Cohasset for an infrastructure project;new text end
94.12
new text begin (5) 0.39 cents per ton to Balkan Township for a salt storage building and new text end
94.13
new text begin energy-efficient cold storage building;new text end
94.14
new text begin (6) 3.0 cents per ton to the city of McKinley to construct a water line from the city new text end
94.15
new text begin of Gilbert or the city of Biwabik to the city of McKinley's distribution center in order to new text end
94.16
new text begin secure a potable water source for the city, provided that the city of McKinley secures new text end
94.17
new text begin the remainder of the project costs from other sources, and expires three years following new text end
94.18
new text begin the date of distribution;new text end
94.19
new text begin (7) 6.5 cents per ton to the Iron Range Resources and Rehabilitation Board for new text end
94.20
new text begin township block grants to be distributed by the board;new text end
94.21
new text begin (8) 0.5 cents per ton to the city of Marble for a water main and looping project;new text end
94.22
new text begin (9) 0.65 cents per ton to the city of Nashwauk for an infrastructure project;new text end
94.23
new text begin (10) 0.35 cents per ton to the city of Babbitt for demolition of a public building;new text end
94.24
new text begin (11) 0.65 cents per ton to the city of Hoyt Lakes for a storm water project;new text end
94.25
new text begin (12) 0.65 cents per ton to the city of Aurora for an infrastructure project;new text end
94.26
new text begin (13) 0.65 cents per ton to the town of Silver Creek for an infrastructure project;new text end
94.27
new text begin (14) 0.5 cents per ton to the city of Calumet for an infrastructure project;new text end
94.28
new text begin (15) 0.5 cents per ton to Nashwauk Township for the Nashwauk town hall;new text end
94.29
new text begin (16) 0.5 cents per ton to the city of Biwabik for emergency repair of a wastewater new text end
94.30
new text begin treatment project;new text end
94.31
new text begin (17) 0.47 cents per ton to the city of Cuyuna for improvements to city properties and new text end
94.32
new text begin facilities, including construction, electrical, water, sewer, and site preparation; andnew text end
94.33
new text begin (18) 0.3 cents per ton to Morse Township for a recreational trail.new text end
94.34
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for the 2014 distribution, and all new text end
94.35
new text begin payments must be made separately and within ten days of the date of the August 2014 new text end
94.36
new text begin payment.new text end
95.1
ARTICLE 6
95.2
LOCAL DEVELOPMENT
95.3 Section 1.
new text begin [383A.155] HOUSING IMPROVEMENT AREAS.new text end
95.4
new text begin Subdivision 1.new text end new text begin Powers of a housing improvement authority.new text end new text begin The Ramsey County new text end
95.5
new text begin Housing and Redevelopment Authority shall have the powers of a city under sections new text end
95.6
new text begin 428A.11 to 428A.21 to establish housing improvement areas in Ramsey County.new text end
95.7
new text begin Subd. 2.new text end new text begin Definitions.new text end new text begin (a) For purposes of exercising the powers in sections 428A.11 new text end
95.8
new text begin to 428A.21, references in those sections to the terms in paragraphs (b) to (e) have the new text end
95.9
new text begin meanings given them for purposes of this section.new text end
95.10
new text begin (b) "Mayor" means the chair of the Ramsey County Housing and Redevelopment new text end
95.11
new text begin Authority.new text end
95.12
new text begin (c) "Council" or "governing body of the city" means the Ramsey County Housing new text end
95.13
new text begin and Redevelopment Authority.new text end
95.14
new text begin (d) "City clerk" means the person designated by the Ramsey County Housing and new text end
95.15
new text begin Redevelopment Authority to carry out the duties of the city clerk under sections 428A.11 new text end
95.16
new text begin to 428A.21.new text end
95.17
new text begin (e) "Enabling ordinance" means a resolution adopted under subdivision 3 by the new text end
95.18
new text begin Ramsey County Housing and Redevelopment Authority.new text end
95.19
new text begin Subd. 3.new text end new text begin Establishment of housing improvement areas.new text end new text begin The Ramsey County new text end
95.20
new text begin Housing and Redevelopment Authority may adopt a resolution establishing one or new text end
95.21
new text begin more housing improvement areas within the county under this section. The Ramsey new text end
95.22
new text begin County Housing and Redevelopment Authority shall send a copy of each petition for the new text end
95.23
new text begin establishment of a housing improvement area to the city in which the proposed housing new text end
95.24
new text begin improvement area is located. The public hearings under sections 428A.13 and 428A.14 new text end
95.25
new text begin may be held at the times and places determined by the Ramsey County Housing and new text end
95.26
new text begin Redevelopment Authority, except that they must be held at least 30 days after the date the new text end
95.27
new text begin applicable petition was sent to the city. If the city council adopts a resolution opposing new text end
95.28
new text begin the establishment within 30 days of the date the copy of the petition was sent to the city new text end
95.29
new text begin under this subdivision, the Ramsey County Housing and Redevelopment Authority may new text end
95.30
new text begin not establish the proposed housing improvement area.new text end
95.31
new text begin Subd. 4.new text end new text begin Applicability.new text end new text begin Except as otherwise provided in this section, sections new text end
95.32
new text begin 428A.11 to 428A.21 apply to the establishment of a housing improvement area by the new text end
95.33
new text begin Ramsey County Housing and Redevelopment Authority.new text end
95.34
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
96.1 Sec. 2. Minnesota Statutes 2012, section 383D.41, is amended by adding a subdivision
96.2to read:
96.3
new text begin Subd. 11.new text end new text begin Tax credit allocation threshold criteria.new text end new text begin (a) In addition to the projects new text end
96.4
new text begin described in section 462A.222, subdivision 3, paragraph (d), the Dakota County new text end
96.5
new text begin Community Development Agency may allocate tax credits in the first round for up to three new text end
96.6
new text begin projects of the following type: new construction or substantial rehabilitation multifamily new text end
96.7
new text begin housing projects that are not restricted to persons who are 55 years of age or older and that new text end
96.8
new text begin are located within one of the following areas at the time a reservation for tax credits is made:new text end
96.9
new text begin (1) an area within one-half mile of a completed or planned light rail transit way, bus new text end
96.10
new text begin rapid transit way, or commuter rail station;new text end
96.11
new text begin (2) an area within one-fourth mile from any stop along a high-frequency local bus line;new text end
96.12
new text begin (3) an area within one-half mile from a bus stop or station on a high-frequency new text end
96.13
new text begin express route;new text end
96.14
new text begin (4) an area within one-half mile from a park and ride lot; ornew text end
96.15
new text begin (5) an area within one-fourth mile of a high-service public transportation fixed new text end
96.16
new text begin route stop.new text end
96.17
new text begin (b) For purposes of this section, the following terms have the meaning given them:new text end
96.18
new text begin (1) "high-frequency local bus line" means a local bus route providing service at new text end
96.19
new text begin least every 15 minutes and running between 6:00 a.m. and 7:00 p.m. on weekdays and new text end
96.20
new text begin between 9:00 a.m. and 6:00 p.m. on Saturdays;new text end
96.21
new text begin (2) "high-frequency express route" means an express route with bus service new text end
96.22
new text begin providing six or more trips during at least one of the peak morning hours between 6:00 new text end
96.23
new text begin a.m. and 9:00 a.m. and every ten minutes during the peak morning hour; andnew text end
96.24
new text begin (3) "high-service public transportation fixed route stop" means a stop serviced new text end
96.25
new text begin between 6:00 a.m. and 7:00 p.m. on weekdays and 9:00 a.m. and 6:00 p.m. on Saturdays new text end
96.26
new text begin and with service approximately every 30 minutes during that time.new text end
96.27
new text begin EFFECTIVE DATE.new text end new text begin This section is effective beginning with the 2015 allocation of new text end
96.28
new text begin tax credit.new text end
96.29 Sec. 3. Minnesota Statutes 2012, section 469.1763, subdivision 3, is amended to read:
96.30 Subd. 3.
Five-year rule. (a) Revenues derived from tax increments are considered
96.31to have been expended on an activity within the district under subdivision 2 only if one
96.32of the following occurs:
96.33(1) before or within five years after certification of the district, the revenues are
96.34actually paid to a third party with respect to the activity;
97.1(2) bonds, the proceeds of which must be used to finance the activity, are issued and
97.2sold to a third party before or within five years after certification, the revenues are spent
97.3to repay the bonds, and the proceeds of the bonds either are, on the date of issuance,
97.4reasonably expected to be spent before the end of the later of (i) the five-year period, or
97.5(ii) a reasonable temporary period within the meaning of the use of that term under section
97.6148(c)(1) of the Internal Revenue Code, or are deposited in a reasonably required reserve
97.7or replacement fund;
97.8(3) binding contracts with a third party are entered into for performance of the
97.9activity before or within five years after certification of the district and the revenues are
97.10spent under the contractual obligation;
97.11(4) costs with respect to the activity are paid before or within five years after
97.12certification of the district and the revenues are spent to reimburse a party for payment
97.13of the costs, including interest on unreimbursed costs; or
97.14(5) expenditures are made for housing purposes as permitted by subdivision 2,
97.15paragraphs (b) and (d), or for public infrastructure purposes within a zone as permitted
97.16by subdivision 2, paragraph (e).
97.17(b) For purposes of this subdivision, bonds include subsequent refunding bonds if
97.18the original refunded bonds meet the requirements of paragraph (a), clause (2).
97.19(c) For a redevelopment district or a renewal and renovation district certified after
97.20June 30, 2003, and before April 20, 2009, the five-year periods described in paragraph (a)
97.21are extended to ten years after certification of the district.
new text begin For a redevelopment district new text end
97.22
new text begin certified after April 20, 2009, and before June 30, 2012, the five-year periods described in new text end
97.23
new text begin paragraph (a) are extended to eight years after certification of the district. new text end This extension is
97.24provided primarily to accommodate delays in development activities due to unanticipated
97.25economic circumstances.
97.26
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for districts for which the request for new text end
97.27
new text begin certification was made after April 20, 2009.new text end
97.28 Sec. 4. Minnesota Statutes 2012, section 469.177, subdivision 3, is amended to read:
97.29 Subd. 3.
Tax increment, relationship to chapters 276A and 473F. (a) Unless the
97.30governing body elects pursuant to paragraph (b) the following method of computation
97.31shall apply to a district other than an economic development district for which the request
97.32for certification was made after June 30, 1997:
97.33(1) The original net tax capacity and the current net tax capacity shall be determined
97.34before the application of the fiscal disparity provisions of chapter 276A or 473F. Where
97.35the original net tax capacity is equal to or greater than the current net tax capacity, there is
98.1no captured net tax capacity and no tax increment determination. Where the original net
98.2tax capacity is less than the current net tax capacity, the difference between the original
98.3net tax capacity and the current net tax capacity is the captured net tax capacity. This
98.4amount less any portion thereof which the authority has designated, in its tax increment
98.5financing plan, to share with the local taxing districts is the retained captured net tax
98.6capacity of the authority.
98.7(2) The county auditor shall exclude the retained captured net tax capacity of the
98.8authority from the net tax capacity of the local taxing districts in determining local taxing
98.9district tax rates. The local tax rates so determined are to be extended against the retained
98.10captured net tax capacity of the authority as well as the net tax capacity of the local taxing
98.11districts. The tax generated by the extension of the lesser of (A) the local taxing district
98.12tax rates or (B) the original local tax rate to the retained captured net tax capacity of the
98.13authority is the tax increment of the authority.
98.14(b) The following method of computation applies to any economic development
98.15district for which the request for certification was made after June 30, 1997, and to any
98.16 other district for which the governing body, by resolution approving the tax increment
98.17financing plan pursuant to section
469.175, subdivision 3, elects:
98.18(1) The original net tax capacity shall be determined before the application of the
98.19fiscal disparity provisions of chapter 276A or 473F. The current net tax capacity shall
98.20exclude any fiscal disparity commercial-industrial net tax capacity increase between
98.21the original year and the current year multiplied by the fiscal disparity ratio determined
98.22pursuant to section
276A.06, subdivision 7, or
473F.08, subdivision 6. Where the original
98.23net tax capacity is equal to or greater than the current net tax capacity, there is no captured
98.24net tax capacity and no tax increment determination. Where the original net tax capacity is
98.25less than the current net tax capacity, the difference between the original net tax capacity
98.26and the current net tax capacity is the captured net tax capacity. This amount less any
98.27portion thereof which the authority has designated, in its tax increment financing plan, to
98.28share with the local taxing districts is the retained captured net tax capacity of the authority.
98.29(2) The county auditor shall exclude the retained captured net tax capacity of the
98.30authority from the net tax capacity of the local taxing districts in determining local taxing
98.31district tax rates. The local tax rates so determined are to be extended against the retained
98.32captured net tax capacity of the authority as well as the net tax capacity of the local taxing
98.33districts. The tax generated by the extension of the lesser of (A) the local taxing district
98.34tax rates or (B) the original local tax rate to the retained captured net tax capacity of the
98.35authority is the tax increment of the authority.
99.1(3) An election by the governing body pursuant to paragraph (b) shall be submitted
99.2to the county auditor by the authority at the time of the request for certification pursuant to
99.3subdivision 1.
99.4(c) The method of computation of tax increment applied to a district pursuant to
99.5paragraph (a) or (b) shall remain the same for the duration of the district, except that
99.6the governing body may elect to change its election from the method of computation in
99.7paragraph (a) to the method in paragraph (b).
99.8
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for districts for which the request for new text end
99.9
new text begin certification is made after June 30, 2014.new text end
99.10 Sec. 5. Laws 2013, chapter 143, article 9, section 23, is amended to read:
99.11 Sec. 23.
CITY OF BLOOMINGTON; OLD CEDAR AVENUE BRIDGE.
99.12 (a) Notwithstanding any law to the contrary, the city of Bloomington shall transfer
99.13from the tax increment financing accounts for its Tax Increment Financing District No.
99.141-C and Tax Increment Financing District No. 1-G an amount equal to the tax increment
99.15for each district that is computed under the provisions of Minnesota Statutes, section
99.16473F.08, subdivision 3c
, for taxes payable in 2014 to an account or fund established for
99.17the repair, restoration, or replacement of the Old Cedar Avenue bridge for use by bicycle
99.18commuters and recreational users. The city is authorized to and must use the transferred
99.19funds to complete the repair, renovation, or replacement of the bridge.
99.20
new text begin (b) Upon completion of the repair, restoration, or replacement of the bridge, the city new text end
99.21
new text begin may use any remaining funds in the account for expenditures as provided in this paragraph new text end
99.22
new text begin and that use is deemed to be a permitted use of the increments, regardless of whether it is new text end
99.23
new text begin for improvements within the project area. If the city elects to use the authority under this new text end
99.24
new text begin paragraph, the remaining funds must be spent for the following items and improvements new text end
99.25
new text begin in the following order of priority:new text end
99.26
new text begin (1) signage for the Old Cedar Avenue bridge that is consistent with the number, new text end
99.27
new text begin design, size, and placement of the city's signage for the Normandale Lake District;new text end
99.28
new text begin (2) kiosks and other wayfinding aids for users of the Old Cedar Avenue bridge and new text end
99.29
new text begin immediately adjacent parkland areas; andnew text end
99.30
new text begin (3) bicycle and pedestrian trail improvements that provide access to the Old Cedar new text end
99.31
new text begin Avenue bridge.new text end
99.32 (b)
new text begin (c)new text end No signs, plaques, or markers acknowledging or crediting donations for,
99.33sponsorships of, or naming rights may be posted on or in the vicinity of the Old Cedar
99.34Avenue bridge.
100.1
new text begin EFFECTIVE DATE.new text end new text begin This section is effective without local approval under new text end
100.2
new text begin Minnesota Statutes, section 645.023, subdivision 1, paragraph (a).new text end
100.3 Sec. 6.
new text begin CITY OF BAXTER; TAX INCREMENT FINANCING DISTRICT; new text end
100.4
new text begin PROJECT REQUIREMENT.new text end
100.5
new text begin Subdivision 1.new text end new text begin Addition of parcels to district.new text end new text begin Notwithstanding Minnesota new text end
100.6
new text begin Statutes, sections 469.174, subdivision 12; 469.176, subdivision 4c; or any other law to new text end
100.7
new text begin the contrary, the governing body of the city of Baxter may elect to expand the boundaries new text end
100.8
new text begin of the Isle Drive Tax Increment Financing District to include the real property described as new text end
100.9
new text begin tax parcel number 034120010010009 in the city of Baxter, Crow Wing County, Minnesota.new text end
100.10
new text begin Subd. 2.new text end new text begin Original tax capacity of district.new text end new text begin Upon addition of the property described new text end
100.11
new text begin in subdivision 1 to the Isle Drive Tax Increment Financing District, the Crow Wing new text end
100.12
new text begin County auditor shall increase the original tax capacity of Isle Drive Tax Increment new text end
100.13
new text begin Financing District by the amount required by Minnesota Statutes, section 469.177, except new text end
100.14
new text begin as provided in subdivision 3.new text end
100.15
new text begin Subd. 3.new text end new text begin Prior planned improvements.new text end new text begin Minnesota Statutes, section 469.177, new text end
100.16
new text begin subdivision 4, does not apply to the property described in subdivision 1 added to the Isle new text end
100.17
new text begin Drive Tax Increment Financing District.new text end
100.18
new text begin Subd. 4.new text end new text begin Use of increments.new text end new text begin Tax increments and other revenues derived from any new text end
100.19
new text begin portion of the Isle Drive Tax Increment Financing District, as expanded under this section, new text end
100.20
new text begin may be used to reimburse or otherwise pay for allowable expenditures under the plan new text end
100.21
new text begin budget for the Isle Drive Tax Increment Financing District, as amended in accordance new text end
100.22
new text begin with Minnesota Statutes, section 469.175, subdivision 4.new text end
100.23
new text begin Subd. 5.new text end new text begin Approval and effect of modification.new text end new text begin If the governing body of the new text end
100.24
new text begin city elects to exercise the authority provided in subdivision 1 to modify the district, the new text end
100.25
new text begin following conditions apply:new text end
100.26
new text begin (1) the city must comply with Minnesota Statutes, section 469.175, subdivision 4; andnew text end
100.27
new text begin (2) beginning with the subsequent calendar year, except as otherwise provided new text end
100.28
new text begin in this section, the district is subject to the provisions of Minnesota Statutes, sections new text end
100.29
new text begin 469.174 to 469.1794, as if the request for certification of the entire district was made on new text end
100.30
new text begin December 30, 2011, the date the original request for certification for the Isle Drive Tax new text end
100.31
new text begin Increment Financing District was made.new text end
101.1
new text begin EFFECTIVE DATE.new text end new text begin This section is effective upon approval by the governing body new text end
101.2
new text begin of the city of Baxter and upon compliance by the city with Minnesota Statutes, section new text end
101.3
new text begin 645.021, subdivisions 2 and 3.new text end
101.4 Sec. 7.
new text begin CITY OF EAGAN; TAX INCREMENT FINANCING.new text end
101.5
new text begin (a) Effective for taxes payable in 2015, the city of Eagan may elect to compute tax new text end
101.6
new text begin increment for the Cedar Grove Tax Increment Financing District using the current local tax new text end
101.7
new text begin rate, notwithstanding the provisions of Minnesota Statutes, section 469.177, subdivision 1a.new text end
101.8
new text begin (b) The requirements of Minnesota Statutes, section 469.1763, subdivision 3, that new text end
101.9
new text begin activities must be undertaken within a five-year period from the date of certification new text end
101.10
new text begin of a tax increment financing district, is considered to be met for the Cedar Grove Tax new text end
101.11
new text begin Increment Financing District in the city of Eagan if the activities are undertaken within 13 new text end
101.12
new text begin years from the date of certification of the district.new text end
101.13
new text begin (c) Notwithstanding the provisions of Minnesota Statutes, section 469.176, new text end
101.14
new text begin subdivision 1b, or any other law to the contrary, the city of Eagan may collect tax increment new text end
101.15
new text begin from the Cedar Grove Tax Increment Financing District through December 31, 2032.new text end
101.16
new text begin EFFECTIVE DATE.new text end new text begin Paragraphs (a) and (b) are effective upon compliance by the new text end
101.17
new text begin governing body of the city of Eagan with the requirements of Minnesota Statutes, section new text end
101.18
new text begin 645.021, subdivision 3. Paragraph (c) is effective upon compliance by the governing new text end
101.19
new text begin bodies of the city of Eagan, Dakota County, and Independent School District No. 191 with new text end
101.20
new text begin the requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and 645.021, new text end
101.21
new text begin subdivision 3.new text end
101.22 Sec. 8.
new text begin CITY OF EDINA; TAX INCREMENT FINANCING.new text end
101.23
new text begin Subdivision 1.new text end new text begin Authority to create districts.new text end new text begin (a) The governing body of the city of new text end
101.24
new text begin Edina or its development authority may establish one or more tax increment financing new text end
101.25
new text begin housing districts in the Southeast Edina Redevelopment Project Area, as the boundaries new text end
101.26
new text begin exist on March 31, 2014.new text end
101.27
new text begin (b) The authority to request certification of districts under this section expires on new text end
101.28
new text begin June 30, 2017.new text end
101.29
new text begin Subd. 2.new text end new text begin Rules governing districts.new text end new text begin (a) Housing districts established under this new text end
101.30
new text begin section are subject to the provisions of Minnesota Statutes, sections 469.174 to 469.1794, new text end
101.31
new text begin except as otherwise provided in this subdivision.new text end
102.1
new text begin (b) Notwithstanding the provisions of Minnesota Statutes, section 469.176, new text end
102.2
new text begin subdivision 1b, no increment must be paid to the authority after 20 years after receipt by new text end
102.3
new text begin the authority of the first increment from a district established under this section.new text end
102.4
new text begin (c) Notwithstanding the provisions of Minnesota Statutes, section 469.1761, new text end
102.5
new text begin subdivision 3, for a residential rental project, the city may elect to substitute "20 percent" new text end
102.6
new text begin for "40 percent" in the 40-60 test under section 142(d)(1)(B) of the Internal Revenue Code new text end
102.7
new text begin in determining the applicable income limits.new text end
102.8
new text begin (d) The provisions of Minnesota Statutes, section 469.1761, subdivision 3, apply for new text end
102.9
new text begin a 25-year period beginning on the date of certification of the district.new text end
102.10
new text begin Subd. 3.new text end new text begin Pooling authority.new text end new text begin The city may elect to treat expenditures of increment new text end
102.11
new text begin from the Southdale 2 district for a housing project of a district established under this new text end
102.12
new text begin section as expenditures qualifying under Minnesota Statutes, section 469.1763, subdivision new text end
102.13
new text begin 2, paragraph (d): (1) without regard to whether the housing meets the requirement of a new text end
102.14
new text begin qualified building under section 42 of the Internal Revenue Code; and (2) may increase new text end
102.15
new text begin by an additional 25 percentage points the permitted amount of expenditures for activities new text end
102.16
new text begin located outside the geographic area of the district permitted under that section.new text end
102.17
new text begin EFFECTIVE DATE.new text end new text begin This section is effective upon compliance by the governing new text end
102.18
new text begin body of the city of Edina with the requirements of Minnesota Statutes, section 645.021, new text end
102.19
new text begin subdivisions 2 and 3.new text end
102.20 Sec. 9.
new text begin CITY OF MAPLE GROVE; TAX INCREMENT FINANCING DISTRICT.new text end
102.21
new text begin Subdivision 1.new text end new text begin Definitions.new text end new text begin (a) For the purposes of this section, the following terms new text end
102.22
new text begin have the meanings given them.new text end
102.23
new text begin (b) "City" means the city of Maple Grove.new text end
102.24
new text begin (c) "Project area" means the area in the city commencing at a point 130 feet East and new text end
102.25
new text begin 120 feet North of the southwest corner of the Southeast Quarter of Section 23, Township new text end
102.26
new text begin 119, Range 22, Hennepin County, said point being on the easterly right-of-way line of new text end
102.27
new text begin Hemlock Lane; thence northerly along said easterly right-of-way line of Hemlock Lane new text end
102.28
new text begin to a point on the west line of the east one-half of the Southeast Quarter of section 23, new text end
102.29
new text begin thence south along said west line a distance of 1,200 feet; thence easterly to the east new text end
102.30
new text begin line of Section 23, 1,030 feet North from the southeast corner thereof; thence South 74 new text end
102.31
new text begin degrees East 1,285 feet; thence East a distance of 1,000 feet; thence North 59 degrees new text end
102.32
new text begin West a distance of 650 feet; thence northerly to a point on the northerly right-of-way line new text end
102.33
new text begin of 81st Avenue North, 650 feet westerly measured at right angles, from the east line of new text end
102.34
new text begin the Northwest Quarter of Section 24; thence North 13 degrees West a distance of 795 new text end
103.1
new text begin feet; thence West to the west line of the Southeast Quarter of the Northwest Quarter of new text end
103.2
new text begin Section 24; thence North 55 degrees West to the south line of the Northwest Quarter of the new text end
103.3
new text begin Northwest Quarter of Section 24; thence West along said south line to the east right-of-way new text end
103.4
new text begin line of Zachary Lane; thence North along the east right-of-way line of Zachary Lane to new text end
103.5
new text begin the southwest corner of Lot 1, Block 1, Metropolitan Industrial Park 5th Addition; thence new text end
103.6
new text begin East along the south line of said Lot 1 to the northeast corner of Outlot A, Metropolitan new text end
103.7
new text begin Industrial Park 5th Addition; thence South along the east line of said Outlot A and its new text end
103.8
new text begin southerly extension to the south right-of-way line of County State-Aid Highway (CSAH) new text end
103.9
new text begin 109; thence easterly along the south right-of-way line of CSAH 109 to the east line of the new text end
103.10
new text begin Northwest Quarter of the Northeast Quarter of Section 24; thence South along said east new text end
103.11
new text begin line to the north line of the South Half of the Northeast Quarter of Section 24; thence East new text end
103.12
new text begin along said north line to the westerly right-of-way line of Jefferson Highway North; thence new text end
103.13
new text begin southerly along the westerly right-of-way line of Jefferson Highway to the centerline of new text end
103.14
new text begin CSAH 130; thence continuing South along the west right-of-way line of Pilgrim Lane new text end
103.15
new text begin North to the westerly extension of the north line of Outlot A, Park North Fourth Addition; new text end
103.16
new text begin thence easterly along the north line of Outlot A, Park North Fourth Addition to the new text end
103.17
new text begin northeast corner of said Outlot A; thence southerly along the east line of said Outlot A new text end
103.18
new text begin to the southeast corner of said Outlot A; thence easterly along the south line of Lot 1, new text end
103.19
new text begin Block 1, Park North Fourth Addition to the westerly right-of-way line of State Highway new text end
103.20
new text begin 169; thence southerly, southwesterly, westerly, and northwesterly along the westerly new text end
103.21
new text begin right-of-way line of State Highway 169 and the northerly right-of-way line of Interstate new text end
103.22
new text begin 694 to its intersection with the southerly extension of the easterly right-of-way line of new text end
103.23
new text begin Zachary Lane North; thence northerly along the easterly right-of-way line of Zachary new text end
103.24
new text begin Lane North and its northerly extension to the north right-of-way line of CSAH 130; thence new text end
103.25
new text begin westerly, southerly, northerly, southwesterly, and northwesterly to the point of beginning new text end
103.26
new text begin and there terminating, provided that the project area includes the rights-of-way for all new text end
103.27
new text begin present and future highway interchanges abutting the area described in this paragraph.new text end
103.28
new text begin (d) "Soil deficiency district" means a type of tax increment financing district new text end
103.29
new text begin consisting of a portion of the project area in which the city finds by resolution that the new text end
103.30
new text begin following conditions exist:new text end
103.31
new text begin (1) unusual terrain or soil deficiencies that occurred over 80 percent of the acreage in new text end
103.32
new text begin the district require substantial filling, grading, or other physical preparation for use; andnew text end
103.33
new text begin (2) the estimated cost of the physical preparation under clause (1), but excluding new text end
103.34
new text begin costs directly related to roads as defined in Minnesota Statutes, section 160.01, and new text end
103.35
new text begin local improvements as described in Minnesota Statutes, sections 429.021, subdivision 1, new text end
104.1
new text begin clauses (1) to (7), (11), and (12), and 430.01, exceeds the fair market value of the land new text end
104.2
new text begin before completion of the preparation.new text end
104.3
new text begin Subd. 2.new text end new text begin Special rules.new text end new text begin (a) If the city elects, upon the adoption of the tax increment new text end
104.4
new text begin financing plan for a district, the rules under this section apply to a redevelopment new text end
104.5
new text begin district, renewal and renovation district, soil condition district, or soil deficiency district new text end
104.6
new text begin established by the city or a development authority of the city in the project area.new text end
104.7
new text begin (b) Prior to or upon the adoption of the first tax increment plan subject to the special new text end
104.8
new text begin rules under this subdivision, the city must find by resolution that parcels consisting new text end
104.9
new text begin of at least 80 percent of the acreage of the project area, excluding street and railroad new text end
104.10
new text begin rights-of-way, are characterized by one or more of the following conditions:new text end
104.11
new text begin (1) peat or other soils with geotechnical deficiencies that impair development of new text end
104.12
new text begin commercial buildings or infrastructure;new text end
104.13
new text begin (2) soils or terrain that require substantial filling in order to permit the development new text end
104.14
new text begin of commercial buildings or infrastructure;new text end
104.15
new text begin (3) landfills, dumps, or similar deposits of municipal or private waste;new text end
104.16
new text begin (4) quarries or similar resource extraction sites;new text end
104.17
new text begin (5) floodway; andnew text end
104.18
new text begin (6) substandard buildings, within the meaning of Minnesota Statutes, section new text end
104.19
new text begin 469.174, subdivision 10.new text end
104.20
new text begin (c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by new text end
104.21
new text begin the relevant condition if at least 70 percent of the area of the parcel contains the relevant new text end
104.22
new text begin condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by new text end
104.23
new text begin substandard buildings if substandard buildings occupy at least 30 percent of the area new text end
104.24
new text begin of the parcel.new text end
104.25
new text begin (d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, new text end
104.26
new text begin is extended to eight years for any district, and Minnesota Statutes, section 469.1763, new text end
104.27
new text begin subdivision 4, does not apply to any district.new text end
104.28
new text begin (e) Notwithstanding any provision to the contrary in Minnesota Statutes, section new text end
104.29
new text begin 469.1763, subdivision 2, paragraph (a), not more than 40 percent of the total revenue new text end
104.30
new text begin derived from tax increments paid by properties in any district, measured over the life of new text end
104.31
new text begin the district, may be expended on activities outside the district but within the project area.new text end
104.32
new text begin (f) For a soil deficiency district:new text end
104.33
new text begin (1) increments may be collected through 20 years after the receipt by the authority of new text end
104.34
new text begin the first increment from the district;new text end
104.35
new text begin (2) increments may be used only to:new text end
104.36
new text begin (i) acquire parcels on which the improvements described in item (ii) will occur;new text end
105.1
new text begin (ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the new text end
105.2
new text begin additional cost of installing public improvements directly caused by the deficiencies; andnew text end
105.3
new text begin (iii) pay for the administrative expenses of the authority allocable to the district; andnew text end
105.4
new text begin (3) any parcel acquired with increments from the district must be sold at no less new text end
105.5
new text begin than their fair market value.new text end
105.6
new text begin (g) Increments spent for any infrastructure costs, whether inside a district or outside new text end
105.7
new text begin a district but within the project area, are deemed to satisfy the requirements of Minnesota new text end
105.8
new text begin Statutes, section 469.176, subdivision 4j.new text end
105.9
new text begin (h) The authority to approve tax increment financing plans to establish tax increment new text end
105.10
new text begin financing districts under this section expires June 30, 2020.new text end
105.11
new text begin EFFECTIVE DATE.new text end new text begin This section is effective upon compliance with Minnesota new text end
105.12
new text begin Statutes, section 645.021, subdivision 3.new text end
105.13 Sec. 10.
new text begin CITY OF MOUND; TAX INCREMENT FINANCING.new text end
105.14
new text begin The requirements of Minnesota Statutes, section 469.1763, subdivision 3, that new text end
105.15
new text begin activities must be undertaken within a five-year period from the date of certification of new text end
105.16
new text begin a tax increment financing district, are considered to be met for the Mound Harbor Tax new text end
105.17
new text begin Increment Financing District administered by the Housing and Redevelopment Authority new text end
105.18
new text begin in and for the city of Mound if the activities are undertaken within 13 years from the new text end
105.19
new text begin date of certification of the district.new text end
105.20
new text begin EFFECTIVE DATE.new text end new text begin The section is effective upon compliance by the governing new text end
105.21
new text begin body of the city of Mound with the requirements of Minnesota Statutes, section 645.021, new text end
105.22
new text begin subdivisions 2 and 3.new text end
105.23 Sec. 11.
new text begin CITY OF NORTH ST. PAUL; TAX INCREMENT FINANCING; new text end
105.24
new text begin PARCELS DEEMED OCCUPIED.new text end
105.25
new text begin (a) If the city of North St. Paul authorizes the creation of a redevelopment tax new text end
105.26
new text begin increment financing district under Minnesota Statutes, section 469.174, subdivision 10, new text end
105.27
new text begin parcel number 122922330059 is deemed to meet the requirements of Minnesota Statutes, new text end
105.28
new text begin section 469.174, subdivision 10, paragraph (d), notwithstanding any contrary provisions new text end
105.29
new text begin of that paragraph, if the following conditions are met:new text end
105.30
new text begin (1) buildings located on the parcel were demolished after the city of North St. Paul new text end
105.31
new text begin adopted a resolution under Minnesota Statutes, section 469.174, subdivision 10, paragraph new text end
105.32
new text begin (d), clause (3);new text end
106.1
new text begin (2) the buildings were removed either by the city of North St. Paul or by the owner new text end
106.2
new text begin of the property by entering into a development agreement; andnew text end
106.3
new text begin (3) the request for certification of the parcel as part of a district is filed with the new text end
106.4
new text begin county auditor by December 31, 2017.new text end
106.5
new text begin (b) The city of North St. Paul may elect to use the current value for purposes of new text end
106.6
new text begin calculating original net tax capacity for the parcels deemed occupied under paragraph (a), new text end
106.7
new text begin notwithstanding the provisions of Minnesota Statutes, sections 469.174, subdivision 10, new text end
106.8
new text begin paragraph (d), and 469.177, subdivision 1, paragraph (f).new text end
106.9
new text begin EFFECTIVE DATE.new text end new text begin This section is effective upon compliance by the governing new text end
106.10
new text begin body of the city of North St. Paul with the requirements of Minnesota Statutes, section new text end
106.11
new text begin 645.021, subdivisions 2 and 3.new text end
106.12 Sec. 12.
new text begin CITY OF SAVAGE; TAX INCREMENT FINANCING DISTRICT.new text end
106.13
new text begin Subdivision 1.new text end new text begin Definitions.new text end new text begin (a) For the purposes of this section, the following terms new text end
106.14
new text begin have the meanings given them.new text end
106.15
new text begin (b) "City" means the city of Savage.new text end
106.16
new text begin (c) "Project area" means parcel numbers 26-931-023-0, 26-931-022-0, 26-931-039-0, new text end
106.17
new text begin 26-931-041-0, 26-931-018-1, 26-931-043-0, 26-931-020-0, 26-931-021-0, 26-931-035-0, new text end
106.18
new text begin 26-931-040-0, 26-931-036-0, 26-931-037-0, 26-931-038-0, and 26-931-0310.new text end
106.19
new text begin (d) "Soil deficiency district" means a type of tax increment financing district new text end
106.20
new text begin consisting of a portion of the project area in which the city finds by resolution that the new text end
106.21
new text begin following conditions exist:new text end
106.22
new text begin (1) unusual terrain or soil deficiencies that occurred over 80 percent of the acreage in new text end
106.23
new text begin the district require substantial filling, grading, or other physical preparation for use; andnew text end
106.24
new text begin (2) the estimated cost of the physical preparation under clause (1), but excluding new text end
106.25
new text begin costs directly related to roads as defined in Minnesota Statutes, section 160.01, and new text end
106.26
new text begin local improvements as described in Minnesota Statutes, sections 429.021, subdivision 1, new text end
106.27
new text begin clauses (1) to (7), (11), and (12), and 430.01, exceeds the fair market value of the land new text end
106.28
new text begin before completion of the preparation.new text end
106.29
new text begin Subd. 2.new text end new text begin Special rules.new text end new text begin (a) If the city elects, upon the adoption of the tax increment new text end
106.30
new text begin financing plan for a district, the rules under this section apply to a redevelopment new text end
106.31
new text begin district, renewal and renovation district, soil condition district, or soil deficiency district new text end
106.32
new text begin established by the city or a development authority of the city in the project area.new text end
106.33
new text begin (b) Prior to or upon the adoption of the first tax increment plan subject to the special new text end
106.34
new text begin rules under this subdivision, the city must find by resolution that parcels consisting new text end
107.1
new text begin of at least 80 percent of the acreage of the project area, excluding street and railroad new text end
107.2
new text begin rights-of-way, are characterized by one or more of the following conditions:new text end
107.3
new text begin (1) peat or other soils with geotechnical deficiencies that impair development of new text end
107.4
new text begin commercial buildings or infrastructure;new text end
107.5
new text begin (2) soils or terrain that require substantial filling in order to permit the development new text end
107.6
new text begin of commercial buildings or infrastructure;new text end
107.7
new text begin (3) landfills, dumps, or similar deposits of municipal or private waste;new text end
107.8
new text begin (4) quarries or similar resource extraction sites;new text end
107.9
new text begin (5) floodway; andnew text end
107.10
new text begin (6) substandard buildings, within the meaning of Minnesota Statutes, section new text end
107.11
new text begin 469.174, subdivision 10.new text end
107.12
new text begin (c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by new text end
107.13
new text begin the relevant condition if at least 70 percent of the area of the parcel contains the relevant new text end
107.14
new text begin condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by new text end
107.15
new text begin substandard buildings if substandard buildings occupy at least 30 percent of the area new text end
107.16
new text begin of the parcel.new text end
107.17
new text begin (d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, new text end
107.18
new text begin is extended to eight years for any district, and Minnesota Statutes, section 469.1763, new text end
107.19
new text begin subdivision 4, does not apply to any district.new text end
107.20
new text begin (e) Notwithstanding any provision to the contrary in Minnesota Statutes, section new text end
107.21
new text begin 469.1763, subdivision 2, paragraph (a), not more than 40 percent of the total revenue new text end
107.22
new text begin derived from tax increments paid by properties in any district, measured over the life of new text end
107.23
new text begin the district, may be expended on activities outside the district but within the project area.new text end
107.24
new text begin (f) For a soil deficiency district:new text end
107.25
new text begin (1) increments may be collected through 20 years after the receipt by the authority of new text end
107.26
new text begin the first increment from the district;new text end
107.27
new text begin (2) increments may be used only to:new text end
107.28
new text begin (i) acquire parcels on which the improvements described in item (ii) will occur;new text end
107.29
new text begin (ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the new text end
107.30
new text begin additional cost of installing public improvements directly caused by the deficiencies; andnew text end
107.31
new text begin (iii) pay for the administrative expenses of the authority allocable to the district; andnew text end
107.32
new text begin (3) any parcel acquired with increments from the district must be sold at no less new text end
107.33
new text begin than their fair market value.new text end
107.34
new text begin (g) Increments spent for any infrastructure costs, whether inside a district or outside new text end
107.35
new text begin a district but within the project area, are deemed to satisfy the requirements of Minnesota new text end
107.36
new text begin Statutes, section 469.176, subdivision 4j.new text end
108.1
new text begin (h) The authority to approve tax increment financing plans to establish tax increment new text end
108.2
new text begin financing districts under this section expires June 30, 2020.new text end
108.3
new text begin EFFECTIVE DATE.new text end new text begin This section is effective upon compliance with Minnesota new text end
108.4
new text begin Statutes, section 645.021, subdivision 3.new text end
108.5 Sec. 13.
new text begin SHOREVIEW TAX INCREMENT FINANCING PILOT PROJECT.new text end
108.6
new text begin Subdivision 1.new text end new text begin Authority to establish districts.new text end new text begin (a) The governing body of the city new text end
108.7
new text begin of Shoreview or a development authority it designates may establish not more than three new text end
108.8
new text begin economic development tax increment financing districts in the city subject to the special new text end
108.9
new text begin rules under this section. The purpose of these districts is the retention and expansion of new text end
108.10
new text begin existing businesses in the city and the attraction of new business to the state to create and new text end
108.11
new text begin retain high paying jobs.new text end
108.12
new text begin (b) The authority to establish or approve the tax increment financing plans and new text end
108.13
new text begin request certification for districts under this section expires on June 30, 2019.new text end
108.14
new text begin Subd. 2.new text end new text begin Qualified businesses.new text end new text begin For purposes of this section, a "qualified business" new text end
108.15
new text begin must satisfy the following requirements:new text end
108.16
new text begin (1) the business must qualify under one of the following when the tax increment new text end
108.17
new text begin financing plan is approved:new text end
108.18
new text begin (i) it operates at a location in the city of Shoreview;new text end
108.19
new text begin (ii) it does not have substantial operations in Minnesota; ornew text end
108.20
new text begin (iii) the assistance is provided for relocation of a portion of the business's operation new text end
108.21
new text begin from another state;new text end
108.22
new text begin (2) the expansion or location of the operations of the business in the city, as new text end
108.23
new text begin provided in the business subsidy agreement under Minnesota Statues, sections 116J.993 to new text end
108.24
new text begin 116J.995, will result in an increase in manufacturing, research, service, or professional new text end
108.25
new text begin jobs, at least 75 percent of which pay an average wage or salary that is equal to or greater new text end
108.26
new text begin than 25 percent of the median wage or salary for all jobs within the metropolitan area; andnew text end
108.27
new text begin (3) the business is not engaged in making retail sales or in providing other services, new text end
108.28
new text begin such as legal, medical, accounting, financial, entertainment, or similar services, to third new text end
108.29
new text begin parties at the location receiving assistance.new text end
108.30
new text begin Subd. 3.new text end new text begin Applicable rules.new text end new text begin (a) Unless otherwise stated, the provisions of Minnesota new text end
108.31
new text begin Statutes, sections 469.174 to 469.1794, apply to districts established under this section.new text end
108.32
new text begin (b) Notwithstanding the provisions of section 469.176, subdivision 1b, the duration new text end
108.33
new text begin limit for districts created under this section is 12 years after the receipt of the first increment.new text end
109.1
new text begin (c) The provisions of Minnesota Statutes, section 469.176, subdivision 4c, apply new text end
109.2
new text begin to determining the permitted uses of increments from the districts with the following new text end
109.3
new text begin exceptions:new text end
109.4
new text begin (1) any building and facilities must be for a qualified business;new text end
109.5
new text begin (2) the building and facilities must not be used by the qualified business or its new text end
109.6
new text begin lessees or tenants to relocate operations from another location in this state outside of the new text end
109.7
new text begin city of Shoreview;new text end
109.8
new text begin (3) the 15 percent limit in subdivision 4c, paragraph (a), is increased to 25 percent; andnew text end
109.9
new text begin (4) the city or development authority may elect to deposit up to 20 percent of the new text end
109.10
new text begin increments in the fund established under subdivision 4. If the city elects to use this new text end
109.11
new text begin authority, all of the remaining increments must be expended for administrative expenses new text end
109.12
new text begin or for activities within the district under Minnesota Statutes, section 469.1763.new text end
109.13
new text begin (d) The governing body of the city may elect by resolution to determine the new text end
109.14
new text begin original and current net tax capacity of a district established under this section using the new text end
109.15
new text begin computation under Minnesota Statutes, section 469.177, subdivision 3, paragraph (a) or (b).new text end
109.16
new text begin Subd. 4.new text end new text begin Business retention and expansion fund.new text end new text begin (a) The city may establish a new text end
109.17
new text begin business retention and expansion fund and deposit in the fund:new text end
109.18
new text begin (1) increments as provided under subdivision 3, paragraph (c), clause (4); andnew text end
109.19
new text begin (2) increments from a district for which the request for certification of the district new text end
109.20
new text begin was made prior to April 30, 1990, if the amount necessary to meet all of the debt and other new text end
109.21
new text begin obligations incurred for that district has been received by the city.new text end
109.22
new text begin (b) Amounts in the fund may be expended to assist qualified businesses, as permitted new text end
109.23
new text begin under subdivisions 2 and 3, and are not otherwise subject to the restrictions in Minnesota new text end
109.24
new text begin Statutes, sections 469.174 to 469.1794.new text end
109.25
new text begin EFFECTIVE DATE.new text end new text begin This section is effective upon compliance by the governing new text end
109.26
new text begin body of the city of Shoreview with the requirements of Minnesota Statutes, section new text end
109.27
new text begin 645.021, subdivision 3.new text end
109.28 Sec. 14.
new text begin WORKFORCE HOUSING GRANTS PILOT PROGRAM.new text end
109.29
new text begin Subdivision 1.new text end new text begin Establishment.new text end new text begin The commissioner of employment and economic new text end
109.30
new text begin development shall establish a workforce housing grants pilot program to award grants to a new text end
109.31
new text begin city to be used for financing costs related to the construction of or financing for market new text end
109.32
new text begin rate residential rental properties.new text end
109.33
new text begin Subd. 2.new text end new text begin Definitions.new text end new text begin For purposes of this section:new text end
110.1
new text begin (1) "local unit of government" means a home rule charter or statutory city or county;new text end
110.2
new text begin (2) "qualified city" means a home rule charter or statutory city with a population new text end
110.3
new text begin exceeding 1,500 located in Roseau County or Pennington County;new text end
110.4
new text begin (3) "qualified expenditure" means expenditures for the acquisition of property, new text end
110.5
new text begin construction of improvements, provisions of loans or subsidies, grants, interest rate new text end
110.6
new text begin subsidies, public infrastructure, and related financing costs for market rate rental new text end
110.7
new text begin residential rental properties; andnew text end
110.8
new text begin (4) "market rate residential rental properties" means properties that are rented at new text end
110.9
new text begin market value and excludes: (i) properties constructed with financial assistance requiring new text end
110.10
new text begin the property to be occupied by residents that meet income limits under federal or state new text end
110.11
new text begin law of initial occupancy; and (ii) properties constructed with federal, state, or local flood new text end
110.12
new text begin recovery assistance, regardless of whether that assistance imposed income limits as a new text end
110.13
new text begin condition of receiving assistance.new text end
110.14
new text begin Subd. 3.new text end new text begin Application.new text end new text begin The commissioner must develop forms and procedures new text end
110.15
new text begin for soliciting and reviewing application for grants under this section. At a minimum, a new text end
110.16
new text begin city must include in its application a resolution of its governing body certifying that the new text end
110.17
new text begin matching amount as required under this section is available and committed.new text end
110.18
new text begin Subd. 4.new text end new text begin Program requirements.new text end new text begin The commissioner shall not award a grant to a new text end
110.19
new text begin city under this section until the following determinations are made:new text end
110.20
new text begin (1) the average vacancy rate for rental housing located in the city, and in any city new text end
110.21
new text begin located within 15 miles or less of the boundaries of the city, has been five percent or new text end
110.22
new text begin less for at least a two-year period;new text end
110.23
new text begin (2) one or more businesses located in the city, or within 15 miles of the city, that new text end
110.24
new text begin employ a minimum of twenty full-time equivalent employees in aggregate have provided new text end
110.25
new text begin a written statement to the city indicating that the lack of available rental housing has new text end
110.26
new text begin impeded their ability to recruit and hire employees;new text end
110.27
new text begin (3) the city is located in Roseau County or Pennington County and has a population new text end
110.28
new text begin exceeding 1,500;new text end
110.29
new text begin (4) fewer than five market rate residential units per 1,000 residents were constructed new text end
110.30
new text begin in the city in each of the last ten years; andnew text end
110.31
new text begin (5) the city certifies that the grants will be used for qualified expenditures for the new text end
110.32
new text begin development of rental housing to serve employees of businesses located in the city new text end
110.33
new text begin or surrounding area.new text end
110.34
new text begin Subd. 5.new text end new text begin Allocation.new text end new text begin The amount of a grant may not exceed the lesser of $400,000 new text end
110.35
new text begin or ten percent of the rental housing development project cost. The commissioner shall not new text end
111.1
new text begin award a grant to a city without certification by the city that the amount of the grant shall be new text end
111.2
new text begin matched by a local unit of government, business, or nonprofit organization.new text end
111.3
new text begin Subd. 6.new text end new text begin Report.new text end new text begin By January 15, 2016, the city must submit a report to the chairs and new text end
111.4
new text begin ranking minority members of the senate and house of representatives committees having new text end
111.5
new text begin jurisdiction over taxes and workforce development specifying the projects that received new text end
111.6
new text begin grants under this section and the specific purposes for which the grant funds were used.new text end
111.7
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
111.8 Sec. 15.
new text begin APPROPRIATION.new text end
111.9
new text begin $627,000 in fiscal year 2015 is appropriated from the general fund to the new text end
111.10
new text begin commissioner of employment and economic development to make grants under the new text end
111.11
new text begin workforce housing grants pilot program in section 14. The base for fiscal year 2016 is new text end
111.12
new text begin $1,373,000 and is available until June 30, 2018. The base for fiscal year 2017 is $0. Of new text end
111.13
new text begin these amounts, the commissioner of employment and economic development may use up new text end
111.14
new text begin to five percent for administrative expenses.new text end
111.15
ARTICLE 7
111.16
LEWIS AND CLARK REGIONAL WATER SYSTEM PROJECT
111.17 Section 1.
new text begin [469.352] LEWIS AND CLARK WATER PROJECT BONDING.new text end
111.18
new text begin Subdivision 1.new text end new text begin Authority; aggregate limit.new text end new text begin (a) The governing body of a new text end
111.19
new text begin municipality may, by resolution, issue obligations under chapter 475 to acquire land or new text end
111.20
new text begin interests in land for, and to design, engineer, and construct pipeline and other facilities and new text end
111.21
new text begin infrastructure necessary to complete the Lewis and Clark Regional Water System Project.new text end
111.22
new text begin (b) The maximum amount of bonds that may be issued under this section is limited new text end
111.23
new text begin to an aggregate principal amount of $45,000,000, plus any costs of issuance and amounts new text end
111.24
new text begin to be deposited into a debt service or reserve account. The Lewis and Clark Joint Powers new text end
111.25
new text begin Board shall allocate the limit among the municipalities designated in subdivision 2.new text end
111.26
new text begin Subd. 2.new text end new text begin Municipalities.new text end new text begin For purposes of this section, "municipality" or new text end
111.27
new text begin "municipalities" means any of the following governmental units:new text end
111.28
new text begin (1) the city of Luverne;new text end
111.29
new text begin (2) the city of Worthington;new text end
111.30
new text begin (3) Nobles County; andnew text end
111.31
new text begin (4) Rock County.new text end
112.1
new text begin Subd. 3.new text end new text begin Application of chapter 475 limits.new text end new text begin (a) Notwithstanding section 475.58 or new text end
112.2
new text begin any other law to contrary, obligations under this section, including general obligations, new text end
112.3
new text begin may be issued without obtaining the approval of the electors.new text end
112.4
new text begin (b) Notwithstanding section 475.53 or any other law to the contrary, obligations new text end
112.5
new text begin issued under this section are not subject to any limitations on net debt.new text end
112.6
new text begin Subd. 4.new text end new text begin Payment allocation.new text end new text begin The joint powers board may agree to allocate the new text end
112.7
new text begin responsibility of each of its members and each municipality to pay obligations issued new text end
112.8
new text begin under this section. One-half of any federal grants and aid received to fund the project in new text end
112.9
new text begin any year shall be used to proportionately reduce responsibility to pay obligations under new text end
112.10
new text begin this subdivision.new text end
112.11
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment new text end
112.12
new text begin without local approval under the provisions of Minnesota Statutes, section 645.023.new text end
112.13 Sec. 2.
new text begin [477A.20] DEBT SERVICE AID; LEWIS AND CLARK JOINT POWERS new text end
112.14
new text begin BOARD.new text end
112.15
new text begin (a) The Lewis and Clark Joint Powers Board is eligible to receive an aid distribution new text end
112.16
new text begin under this section equal to (1) the principal and interest payable in the succeeding calendar new text end
112.17
new text begin year for bonds issued under section 469.352 minus the sum of (2) the combined adjusted new text end
112.18
new text begin net tax capacity of Rock County and Nobles County for the assessment year prior to the new text end
112.19
new text begin aid payable year multiplied by 1.5 percent and (3) 50 percent of any federal aid received to new text end
112.20
new text begin fund the project in the calendar year. The board shall certify to the commissioner of revenue new text end
112.21
new text begin the principal and interest due in the succeeding calendar year by June 1 of the aid payable new text end
112.22
new text begin year. The commissioner of revenue shall calculate the aid payable under this section and new text end
112.23
new text begin certify the amount payable before July 1 of the aid distribution year. The commissioner new text end
112.24
new text begin shall pay the aid under this section to the board at the times specified for payments of local new text end
112.25
new text begin government aid in section 477A.015. An amount sufficient to pay the state aid authorized new text end
112.26
new text begin under this section is annually appropriated to the commissioner from the general fund. new text end
112.27
new text begin (b) The board must allocate the aid to the municipalities issuing bonds under section new text end
112.28
new text begin 469.352 in proportion to their principal and interest payments.new text end
112.29
new text begin (c) If the deduction under paragraph (a), clause (3), eliminates the aid payment under new text end
112.30
new text begin this section in a calendar year, then the excess must be used to reduce the principal and new text end
112.31
new text begin interest in the succeeding year or years used to calculate aid under paragraph (a).new text end
112.32
new text begin (d) If federal grants and aid received for the project, not deducted under paragraph new text end
112.33
new text begin (a), clause (3), exceed the total debt service payments for bonds issued under section new text end
112.34
new text begin 469.352, other than payments made with state aid under this section, the joint powers new text end
112.35
new text begin board must repay any excess to the commissioner of revenue for deposit in the general new text end
113.1
new text begin fund. The repayment may not exceed the sum of state aid payments under this section and new text end
113.2
new text begin any other grants made by the state for the project.new text end
113.3
new text begin (e) This section expires at the earlier of January 1, 2039, or when the bonds new text end
113.4
new text begin authorized under section 469.352 have been paid or defeased.new text end
113.5
new text begin EFFECTIVE DATE.new text end new text begin This section is effective beginning with aids payable in 2015.new text end
113.6 Sec. 3. Laws 2005, First Special Session chapter 3, article 5, section 44, subdivision 3,
113.7is amended to read:
113.8 Subd. 3.
Use of revenues. new text begin (a) new text end Revenues received from taxes authorized by
113.9subdivisions 1 and 2 must be used by the city to pay the cost of collecting and
113.10administering the taxes and to pay for the costs of a community center complex and
113.11to make renovations to the Memorial Auditorium. Authorized expenses include, but
113.12are not limited to, acquiring property and paying construction expenses related to these
113.13improvements, and paying debt service on bonds or other obligations issued to finance
113.14acquisition and construction of these improvements.
113.15
new text begin (b) Notwithstanding Minnesota Statutes, section 297A.99, subdivisions 2 and 3, if new text end
113.16
new text begin the city decides to extend the taxes in subdivisions 1 and 2, as allowed under subdivision new text end
113.17
new text begin 5, paragraph (b), the city must use any amounts in excess of the amounts necessary to new text end
113.18
new text begin meet the obligations under paragraph (a) to pay the city's share of debt service on bonds new text end
113.19
new text begin issued under Minnesota Statutes, section 469.352, to fund the Lewis and Clark Regional new text end
113.20
new text begin Water System Project.new text end
113.21
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day after the governing body of new text end
113.22
new text begin the city of Worthington and its chief clerical officer comply with Minnesota Statutes, new text end
113.23
new text begin section 645.021, subdivisions 2 and 3.new text end
113.24 Sec. 4. Laws 2005, First Special Session chapter 3, article 5, section 44, subdivision 5,
113.25is amended to read:
113.26 Subd. 5.
Termination of taxes. new text begin (a) new text end The taxes imposed under subdivisions 1 and
113.272 expire at the earlier of (1) ten years, or (2) when the city council determines that the
113.28amount of revenue received from the taxes to pay for the projects under subdivision 3
113.29equals or exceeds $6,000,000 plus the additional amount needed to pay the costs related
113.30to issuance of bonds under subdivision 4, including interest on the bonds. Any funds
113.31remaining after completion of the project and retirement or redemption of the bonds shall
113.32be placed in a capital project fund of the city. The taxes imposed under subdivisions 1 and
113.332 may expire at an earlier time if the city so determines by ordinance.
114.1
new text begin (b) Notwithstanding paragraph (a), the city council may, by ordinance, extend the new text end
114.2
new text begin taxes imposed under subdivisions 1 and 2 through December 31, 2039, provided that new text end
114.3
new text begin all additional revenues that exceed those necessary to fund the projects and associated new text end
114.4
new text begin financing costs listed in subdivision 3, paragraph (a), are committed to pay debt service new text end
114.5
new text begin on bonds issued under Minnesota Statutes, section 469.352, to fund the Lewis and Clark new text end
114.6
new text begin Regional Water System Project.new text end
114.7
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day after the governing body of new text end
114.8
new text begin the city of Worthington and its chief clerical officer comply with Minnesota Statutes, new text end
114.9
new text begin section 645.021, subdivisions 2 and 3.new text end
114.10 Sec. 5.
new text begin ROCK COUNTY LOCAL SALES TAX.new text end
114.11
new text begin (a) Notwithstanding Minnesota Statutes, sections new text end
new text begin , new text end
new text begin , and new text end
114.12
new text begin , or any other contrary provision of law, ordinance, or charter, and in new text end
114.13
new text begin addition to any taxes the county may impose under another law or statute, the Board new text end
114.14
new text begin of Commissioners of Rock County may, by resolution, impose a sales and use tax of new text end
114.15
new text begin up to one-half of one percent for the purposes specified in paragraph (c). Except as new text end
114.16
new text begin otherwise provided in this section, the provisions of Minnesota Statutes, section new text end
new text begin 297A.99, new text end
114.17new text begin subdivisions new text end
new text begin 4 to 13, govern the imposition, administration, collection, and enforcement new text end
114.18
new text begin of the tax authorized under this paragraph.new text end
114.19
new text begin (b) The tax imposed under paragraph (a) must be imposed in the entire county unless new text end
114.20
new text begin the city of Luverne imposes a local sales tax at the same rate under section 7, in which new text end
114.21
new text begin case the county board of commissioners may elect to impose the tax in the portion of the new text end
114.22
new text begin county located outside of the boundaries of the city of Luverne.new text end
114.23
new text begin (c) The proceeds of any tax imposed under paragraph (a), less refunds and costs of new text end
114.24
new text begin collection, must be first used by the county to pay debt service on bonds issued under new text end
114.25
new text begin Minnesota Statutes, section 469.352, to fund the Lewis and Clark Regional Water System new text end
114.26
new text begin Project. Revenues collected in any calendar year in excess of the county obligation to pay new text end
114.27
new text begin for the county's share of the bonds issued under Minnesota Statutes, section 469.352, may new text end
114.28
new text begin be retained by the county and used for funding other capital projects within the county.new text end
114.29
new text begin (d) A tax imposed under paragraph (a) expires when the county's share of bonds issued new text end
114.30
new text begin under Minnesota Statutes, section 469.352, to fund the Lewis and Clark Regional Water new text end
114.31
new text begin System Project has been paid, or at an earlier time if approved by resolution of the board. new text end
114.32
new text begin The tax must not terminate before the county board of commissioners determines that new text end
114.33
new text begin revenues from these taxes and any other revenue source the county dedicates are sufficient new text end
114.34
new text begin to pay the county's share of the bonds issued under Minnesota Statutes, section 469.352.new text end
115.1
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day after the governing body new text end
115.2
new text begin of Rock County and its chief clerical officer comply with Minnesota Statutes, section new text end
115.3
new text begin 645.021, subdivisions 2 and 3.new text end
115.4 Sec. 6.
new text begin NOBLES COUNTY LOCAL SALES TAX.new text end
115.5
new text begin (a) Notwithstanding Minnesota Statutes, sections new text end
new text begin , new text end
new text begin , and new text end
115.6
new text begin , or any other contrary provision of law, ordinance, or charter, and in new text end
115.7
new text begin addition to any taxes the county may impose under another law or statute, the Board new text end
115.8
new text begin of Commissioners of Nobles County may, by resolution, impose a sales and use tax of new text end
115.9
new text begin up to one-half of one percent for the purposes specified in paragraph (c). Except as new text end
115.10
new text begin otherwise provided in this section, the provisions of Minnesota Statutes, section new text end
new text begin 297A.99, new text end
115.11new text begin subdivisions new text end
new text begin 4 to 13, govern the imposition, administration, collection, and enforcement new text end
115.12
new text begin of the tax authorized under this paragraph.new text end
115.13
new text begin (b) The tax imposed under paragraph (a) must be imposed in the entire county unless new text end
115.14
new text begin the county imposes the tax at one-half of one percent and the local sales tax authorized new text end
115.15
new text begin under Laws 2005, chapter 3, article 5, section 44, as amended, has not expired, in which new text end
115.16
new text begin case the county board of commissioners may elect to impose the tax in the portion of the new text end
115.17
new text begin county located outside of the boundaries of the city of Worthington. If the tax authorized new text end
115.18
new text begin under Laws 2005, chapter 3, article 5, section 44, as amended, expires before the tax new text end
115.19
new text begin authorized under this section expires, the tax authorized under this section is imposed new text end
115.20
new text begin in the entire county.new text end
115.21
new text begin (c) The proceeds of any tax imposed under paragraph (a), less refunds and costs of new text end
115.22
new text begin collection, must be first used by the county to pay debt service on bonds issued under new text end
115.23
new text begin Minnesota Statutes, section 469.352, to fund the Lewis and Clark Regional Water System new text end
115.24
new text begin Project. Revenues collected in any calendar year in excess of the county obligation to pay new text end
115.25
new text begin for the county's share of the bonds issued under Minnesota Statutes, section 469.352, may new text end
115.26
new text begin be retained by the county and used for funding other capital projects within the county.new text end
115.27
new text begin (d) A tax imposed under paragraph (a) expires when the county's share of bonds issued new text end
115.28
new text begin under Minnesota Statutes, section 469.352, to fund the Lewis and Clark Regional Water new text end
115.29
new text begin System Project has been paid, or at an earlier time if approved by resolution of the board. new text end
115.30
new text begin The tax must not terminate before the county board of commissioners determines that new text end
115.31
new text begin revenues from these taxes and any other revenue source the county dedicates are sufficient new text end
115.32
new text begin to pay the county's share of the bonds issued under Minnesota Statutes, section 469.352.new text end
115.33
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day after the governing body of new text end
115.34
new text begin Nobles County and its chief clerical officer comply with Minnesota Statutes, section new text end
115.35
new text begin 645.021, subdivisions 2 and 3.new text end
116.1 Sec. 7.
new text begin CITY OF LUVERNE LOCAL SALES TAX.new text end
116.2
new text begin (a) Notwithstanding Minnesota Statutes, sections new text end
new text begin , new text end
new text begin , and new text end
new text begin , new text end
116.3
new text begin or any other contrary provision of law, ordinance, or city charter, the city of Luverne may, new text end
116.4
new text begin by ordinance, impose a sales and use tax of up to one-half of one percent for the purposes new text end
116.5
new text begin specified in paragraph (b). Except as otherwise provided in this section, the provisions new text end
116.6
new text begin of Minnesota Statutes, section new text end
new text begin 297A.99, subdivisions new text end new text begin 4 to 13, govern the imposition, new text end
116.7
new text begin administration, collection, and enforcement of the tax authorized under this paragraph.new text end
116.8
new text begin (b) The proceeds of any tax imposed under paragraph (a), less refunds and costs new text end
116.9
new text begin of collection, must be first used by the city to pay debt service on bonds issued under new text end
116.10
new text begin Minnesota Statutes, section 469.352, to fund the Lewis and Clark Regional Water System new text end
116.11
new text begin project. Revenues collected in any calendar year in excess of the city obligation to pay for new text end
116.12
new text begin debt service on bonds issued under Minnesota Statutes, section 469.352, may be retained new text end
116.13
new text begin by the city and used for funding other capital projects within the city.new text end
116.14
new text begin (c) A tax imposed under paragraph (a) expires when the city's share of bonds issued new text end
116.15
new text begin under Minnesota Statutes, section 469.352, to fund the Lewis and Clark Regional Water new text end
116.16
new text begin System Project has been made, or at an earlier time if approved by the city council. The new text end
116.17
new text begin tax must not terminate before the city council determines that revenues from this tax and new text end
116.18
new text begin any other revenue source the city dedicates are sufficient to pay the city share of debt new text end
116.19
new text begin service on bonds issued under Minnesota Statutes, section 469.352.new text end
116.20
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day after the governing body of new text end
116.21
new text begin the city of Luverne and its chief clerical officer comply with Minnesota Statutes, section new text end
116.22
new text begin 645.021, subdivisions 2 and 3.new text end
116.23
ARTICLE 8
116.24
MISCELLANEOUS
116.25 Section 1. Minnesota Statutes 2013 Supplement, section 116V.03, is amended to read:
116.26
116V.03 APPROPRIATION.
116.27$1,000,000 in fiscal year 2014 and each year thereafter is appropriated from the
116.28general fund to the commissioner of revenue for transfer to the agricultural project
116.29utilization account in the special revenue fund for the Agricultural Utilization Research
116.30Institute established under section
116V.01.
116.31
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2014.new text end
116.32 Sec. 2. Minnesota Statutes 2012, section 161.14, is amended by adding a subdivision
116.33to read:
117.1
new text begin Subd. 77.new text end new text begin Old Cedar Avenue Bridge.new text end new text begin Minnesota state bridge number 3145, the new text end
117.2
new text begin Camelback bridge over the Minnesota River overflowage (referred to as Long Meadow new text end
117.3
new text begin Lake) constructed in 1920, is designated and named the "Old Cedar Avenue Bridge." This new text end
117.4
new text begin designation and name also applies to any renovation or reconstruction of the bridge and new text end
117.5
new text begin must be used in any publicly financed signage that refers to the bridge.new text end
117.6
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
117.7 Sec. 3. Minnesota Statutes 2012, section 270C.72, subdivision 1, is amended to read:
117.8 Subdivision 1.
Tax clearance required. new text begin (a) new text end The state or a political subdivision of
117.9the state may not issue, transfer, or renew, and must revoke, a license for the conduct of
117.10a profession, occupation, trade, or business, if the commissioner notifies the licensing
117.11authority that the applicant owes the state delinquent taxes payable to the commissioner,
117.12penalties, or interest. The commissioner may not notify the licensing authority unless the
117.13applicant taxpayer owes $500 or more in delinquent taxes, penalties, or interest, or has
117.14not filed returns. If the applicant taxpayer does not owe delinquent taxes, penalties, or
117.15interest, but has not filed returns, the commissioner may not notify the licensing authority
117.16unless the taxpayer has been given 90 days' written notice to file the returns or show
117.17that the returns are not required to be filed.
117.18
new text begin (b) Within ten days after receipt of the notification from the commissioner under new text end
117.19
new text begin paragraph (a), the licensing authority must notify the license holder by certified mail of new text end
117.20
new text begin the potential revocation of the license for the applicable reason under paragraph (a). new text end
117.21
new text begin The notice must include a copy of the commissioner's notice to the licensing agency new text end
117.22
new text begin and information, in the form specified by the commissioner, on the licensee's option for new text end
117.23
new text begin receiving a tax clearance from the commissioner. The licensing authority must revoke the new text end
117.24
new text begin license 30 days after receiving the notice from the commissioner, unless it receives a tax new text end
117.25
new text begin clearance from the commissioner as provided in paragraph (c).new text end
117.26
new text begin (c) new text end A licensing authority that has received a notice from the commissioner may
117.27issue, transfer, renew, or not revoke the applicant's license only if (a)
new text begin (1)new text end the commissioner
117.28issues a tax clearance certificate and (b)
new text begin (2)new text end the commissioner or the applicant forwards a
117.29copy of the clearance to the authority. The commissioner may issue a clearance certificate
117.30only if the applicant does not owe the state any uncontested delinquent taxes, penalties, or
117.31interest and has filed all required returns.
117.32
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2014.new text end
117.33 Sec. 4. Minnesota Statutes 2012, section 270C.72, subdivision 3, is amended to read:
118.1 Subd. 3.
Notice and hearing. (a) The commissioner, on notifying a licensing
118.2authority pursuant to subdivision 1 not to issue, transfer, or renew a license, must send a
118.3copy of the notice to the applicant. If the applicant requests, in writing, within 30 days
118.4of the date of the notice a hearing, a contested case hearing must be held. The hearing
118.5must be held within 45 days of the date the commissioner refers the case to the Office of
118.6Administrative Hearings. Notwithstanding any law to the contrary, the applicant must be
118.7served with 20 days' notice in writing specifying the time and place of the hearing and the
118.8allegations against the applicant. The notice may be served personally or by mail.
118.9(b)
new text begin (a)new text end Prior to notifying a licensing authority pursuant to subdivision 1 to revoke a
118.10license, the commissioner must send a notice to the applicant of the commissioner's intent
118.11to require revocation of the license and of the applicant's right to a hearing under paragraph
118.12(a)
new text begin . If the applicant requests a hearing in writing within 30 days of the date of the notice, a new text end
118.13
new text begin contested case hearing must be held. The hearing must be held within 45 days of the date new text end
118.14
new text begin the commissioner refers the case to the Office of Administrative Hearings. Notwithstanding new text end
118.15
new text begin any law to the contrary, the applicant must be served with 20 days' notice in writing new text end
118.16
new text begin specifying the time and place of the hearing and the allegations against the applicant. The new text end
118.17
new text begin notice may be served personally or by mailnew text end . A license is subject to revocation when 30
118.18days have passed following the date of the notice in this paragraph without the applicant
118.19requesting a hearing, or, if a hearing is timely requested, upon final determination of the
118.20hearing under section
14.62, subdivision 1. A license shall be revoked by the licensing
118.21authority within 30 days after receiving notice from the commissioner to revoke.
118.22
new text begin (b) The commissioner may notify a licensing authority under subdivision 1 only new text end
118.23
new text begin after the requirements of paragraph (a) have been satisfied.new text end
118.24(c) A hearing under this subdivision is in lieu of any other hearing or proceeding
118.25provided by law arising from any action taken under subdivision 1.
118.26
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2014.new text end
118.27 Sec. 5.
new text begin CARLTON COUNTY; LEVY FOR SOIL AND WATER CONSERVATION new text end
118.28
new text begin DISTRICT.new text end
118.29
new text begin Subdivision 1.new text end new text begin Definitions.new text end new text begin (a) For the purposes of this section, "district" means new text end
118.30
new text begin the Carlton County Soil and Water Conservation District.new text end
118.31
new text begin (b) For the purposes of this section, "county" means Carlton County.new text end
118.32
new text begin Subd. 2.new text end new text begin Special project levy.new text end new text begin Notwithstanding any law to the contrary, the county new text end
118.33
new text begin may levy ad valorem property taxes on taxable property within the area of its jurisdiction new text end
118.34
new text begin for the purposes specified in subdivision 3. The proceeds of the tax must be placed in a new text end
119.1
new text begin separate account and used only for the purposes specified in subdivision 3. The amount new text end
119.2
new text begin levied is separate from any other amount to be levied for the district by the county under new text end
119.3
new text begin Minnesota Statutes, section 103C.331, subdivision 16.new text end
119.4
new text begin Subd. 3.new text end new text begin Purpose; limit on levy amount.new text end new text begin (a) The county must allocate the new text end
119.5
new text begin proceeds of any tax imposed under this section to the district solely to pay principal, new text end
119.6
new text begin interest, and any associated costs of obtaining and servicing a loan to finance the planning, new text end
119.7
new text begin constructing, and equipping of an office and storage facility for the district.new text end
119.8
new text begin (b) The maximum amount of the levy in any year may not exceed the amount new text end
119.9
new text begin necessary, after deduction of any amount remaining from the levy imposed in prior years, new text end
119.10
new text begin to pay 105 percent of the principal and interest due in the following calendar year and new text end
119.11
new text begin through July 1 of the next year.new text end
119.12
new text begin Subd. 4.new text end new text begin Expiration.new text end new text begin (a) This section expires:new text end
119.13
new text begin (1) following the final payment of principal, interest, and any associated costs of the new text end
119.14
new text begin loan under subdivision 3, or any loan or other financing that refinanced the original loan; ornew text end
119.15
new text begin (2) if the district does not obtain the loan under subdivision 3 prior to May 1, 2017.new text end
119.16
new text begin (b) Upon expiration of this section, any amount remaining in the account created new text end
119.17
new text begin under subdivision 2 must be transferred to the general account of the county and used to new text end
119.18
new text begin reduce any amount to be levied for the district by the county under Minnesota Statutes, new text end
119.19
new text begin section 103C.331, subdivision 16, for the following year, and any subsequent years, until new text end
119.20
new text begin the amount remaining is exhausted.new text end
119.21
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following compliance by new text end
119.22
new text begin Carlton County with Minnesota Statutes, section 645.021, subdivisions 2 and 3.new text end
119.23 Sec. 6.
new text begin ADMINISTRATIVE APPROPRIATIONS.new text end
119.24
new text begin (a) $700,000 in fiscal year 2014 and $1,800,000 in fiscal year 2015 are appropriated new text end
119.25
new text begin from the general fund to the commissioner of revenue for administering this act. The new text end
119.26
new text begin funding base for this appropriation in fiscal year 2016 is $1,180,000 and is available to be new text end
119.27
new text begin spent until June 30, 2017. The funding base for fiscal year 2017 is $0.new text end
119.28
new text begin (b) $40,000 in fiscal year 2015 is appropriated from the general fund to the new text end
119.29
new text begin commissioner of public safety for administration of the volunteer retention stipend aid new text end
119.30
new text begin pilot program in article 1, section 1. The funding base for this appropriation in fiscal new text end
119.31
new text begin year 2016 is $18,000 and is available to be spent until June 30, 2018. The funding base new text end
119.32
new text begin for fiscal year 2017 is $0.new text end
119.33
new text begin (c) $400,000 in fiscal year 2015 is appropriated from the general fund to the new text end
119.34
new text begin commissioner of natural resources for the purpose of assisting counties in developing plans new text end
120.1
new text begin and providing training for watercraft inspectors to facilitate the implementation of article new text end
120.2
new text begin 1, section 11. This is a onetime appropriation and does not become part of the base budget.new text end
120.3
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
120.4
ARTICLE 9
120.5
UNSESSION
120.6 Section 1. Minnesota Statutes 2012, section 16D.02, subdivision 3, is amended to read:
120.7 Subd. 3.
Debt. "Debt" means an amount owed to the state directly, or through a
120.8state agency, on account of a fee, duty, lease, direct loan, loan insured or guaranteed by
120.9the state, rent, service, sale of real or personal property, overpayment, fine, assessment,
120.10penalty, restitution, damages, interest, tax, bail bond, forfeiture, reimbursement, liability
120.11owed, an assignment to the state including assignments under section
256.741, the Social
120.12Security Act, or other state or federal law, recovery of costs incurred by the state, or any
120.13other source of indebtedness to the state. Debt also includes amounts owed to individuals
120.14as a result of civil, criminal, or administrative action brought by the state or a state agency
120.15pursuant to its statutory authority or for which the state or state agency acts in a fiduciary
120.16capacity in providing collection services in accordance with the regulations adopted under
120.17the Social Security Act at Code of Federal Regulations, title 45, section 302.33. When
120.18the commissioner provides collection services pursuant to a debt qualification plan
new text begin to a new text end
120.19
new text begin referring agencynew text end , debt also includes an amount owed to the courts, local government
120.20units, Minnesota state colleges and universities governed by the Board of Trustees of the
120.21Minnesota State Colleges and Universities, or University of Minnesota.
120.22
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
120.23 Sec. 2. Minnesota Statutes 2012, section 16D.02, subdivision 6, is amended to read:
120.24 Subd. 6.
Referring agency. "Referring agency" means a state agency, local
120.25government unit, Minnesota state colleges and universities governed by the Board of
120.26Trustees of the Minnesota State Colleges and Universities, University of Minnesota, or a
120.27court, that has entered into a debt qualification plan
new text begin an agreementnew text end with the commissioner
120.28to refer debts to the commissioner for collection.
120.29
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
120.30 Sec. 3. Minnesota Statutes 2012, section 16D.04, subdivision 3, is amended to read:
121.1 Subd. 3.
Services. The commissioner shall provide collection services for a state
121.2agency, and may provide for collection services for a court, in accordance with the terms and
121.3conditions of a signed debt qualification plan
new text begin referring agencies other than state agenciesnew text end .
121.4
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
121.5 Sec. 4. Minnesota Statutes 2012, section 16D.04, subdivision 4, is amended to read:
121.6 Subd. 4.
Authority to contract. The commissioners
new text begin commissionernew text end of revenue and
121.7management and budget may contract with credit bureaus, private collection agencies, and
121.8other entities as necessary for the collection of debts. A private collection agency acting
121.9under a contract with the commissioner of revenue or management and budget is subject
121.10to sections
332.31 to
332.45, except that the private collection agency may indicate that it
121.11is acting under a contract with the state. The commissioner may not delegate the powers
121.12provided under section
16D.08 to any nongovernmental entity.
121.13
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
121.14 Sec. 5. Minnesota Statutes 2012, section 16D.07, is amended to read:
121.15
16D.07 NOTICE TO DEBTOR.
121.16The referring agency shall send notice to the debtor by United States mail or
121.17personal delivery at the debtor's last known address at least 20 days before the debt is
121.18referred to the commissioner. The notice must state the nature and amount of the debt,
121.19identify to whom the debt is owed, and inform the debtor of the remedies available under
121.20this chapter.
new text begin The referring agency shall advise the debtor of collection costs imposed new text end
121.21
new text begin under section 16D.11 and of the debtor's right to cancellation of collection costs under new text end
121.22
new text begin section 16D.11, subdivision 3.new text end
121.23
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
121.24 Sec. 6. Minnesota Statutes 2012, section 16D.11, subdivision 1, is amended to read:
121.25 Subdivision 1.
Imposition. As determined by the commissioner of management and
121.26budget
new text begin revenuenew text end , collection costs shall be added to the debts referred to the commissioner
121.27or private collection agency for collection. Collection costs are collectible by the
121.28commissioner or private agency from the debtor at the same time and in the same
121.29manner as the referred debt. The referring agency shall advise the debtor of collection
121.30costs under this section and the debtor's right to cancellation of collection costs under
121.31subdivision 3 at the time the agency sends notice to the debtor under section
.
122.1 If the commissioner or private agency collects an amount less than the total due, the
122.2payment is applied proportionally to collection costs and the underlying debt unless
122.3the commissioner of management and budget has waived this requirement for certain
122.4categories of debt pursuant to the department's internal guidelines. Collection costs
122.5collected by the commissioner under this subdivision or retained under subdivision 6 shall
122.6be deposited in the general fund as nondedicated receipts. Collection costs collected by
122.7private agencies are appropriated to the referring agency to pay the collection fees charged
122.8by the private agency. Collections of collection costs in excess of collection agency fees
122.9must be deposited in the general fund as nondedicated receipts.
122.10
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
122.11 Sec. 7. Minnesota Statutes 2012, section 16D.11, subdivision 3, is amended to read:
122.12 Subd. 3.
Cancellation. Collection costs imposed under subdivision 1 shall be
122.13canceled and subtracted from the amount due if:
122.14(1) the debtor's household income as defined in section
290A.03, subdivision 5,
122.15excluding the exemption subtractions in subdivision 3, paragraph (3) of that section, for
122.16the 12 months preceding the date of referral is less than twice the annual federal poverty
122.17guideline under United States Code, title 42, section 9902, subsection (2);
122.18(2) within 60 days after the first contact with the debtor by the enterprise
122.19
new text begin commissionernew text end or collection agency, the debtor establishes reasonable cause for the failure
122.20to pay the debt prior to referral of the debt to the enterprise
new text begin commissionernew text end ;
122.21(3) a good faith dispute as to the legitimacy or the amount of the debt is made,
122.22and payment is remitted or a payment agreement is entered into within 30 days after
122.23resolution of the dispute;
122.24(4) good faith litigation occurs and the debtor's position is substantially justified, and
122.25if the debtor does not totally prevail, the debt is paid or a payment agreement is entered
122.26into within 30 days after the judgment becomes final and nonappealable; or
122.27(5) collection costs have been added by the referring agency and are included in
122.28the amount of the referred debt.
122.29
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
122.30 Sec. 8. Minnesota Statutes 2012, section 16D.11, subdivision 7, is amended to read:
122.31 Subd. 7.
Adjustment of rate. By June 1 of each year, the commissioner shall
122.32determine the rate of collection costs for debts referred to the enterprise
new text begin commissionernew text end
122.33 during the next fiscal year. The rate is a percentage of the debts in an amount that most
123.1nearly equals the costs of the enterprise
new text begin commissionernew text end necessary to process and collect
123.2referred debts under this chapter. In no event shall the rate of the collection costs exceed
123.325 percent of the debt. Determination of the rate of collection costs under this section is
123.4not subject to the fee setting requirements of section
16A.1283.
123.5
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
123.6 Sec. 9. Minnesota Statutes 2012, section 84A.20, subdivision 2, is amended to read:
123.7 Subd. 2.
County proposal to state. Under certain conditions, The board of county
123.8commissioners of any county may by resolution propose to the state that one or more
123.9areas in the county be taken over by the state for afforestation, reforestation, flood control
123.10projects, or other state purposes. The projects are to be managed, controlled, and used for
123.11the purposes in subdivision 1 on lands to be acquired by the state within the projects, as set
123.12forth in sections
84A.20 to
84A.30. The county board may propose this if (1) the county
123.13contains lands suitable for the purposes in subdivision 1, (2) on January 1, 1931, the taxes
123.14on more than 35 percent of the taxable land in the county are delinquent, (3) on January 1,
123.151931, the county's bonded ditch indebtedness, including accrued interest, equals or exceeds
123.16nine percent of the assessed valuation of the county, exclusive of money and credits.
123.17The area taken over must include lands that have been assessed for all or part of
123.18the cost of the establishment and construction of public drainage ditches under state law,
123.19and on which the assessments or installments are delinquent. A certified copy of the
123.20county board's resolution must be filed with the department and considered and acted
123.21upon by the department. If approved by the department, it must then be submitted to,
123.22considered, and acted upon by the executive council. If approved by the Executive
123.23Council, the proposition must be formally accepted by the governor. Acceptance must be
123.24communicated in writing to and filed with the county auditor.
123.25
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
123.26 Sec. 10. Minnesota Statutes 2012, section 84A.31, subdivision 2, is amended to read:
123.27 Subd. 2.
County proposal to state. Under certain conditions, The board of county
123.28commissioners of any county may by resolution propose that the state take over part of the
123.29tax-delinquent lands in the county. The board may propose this if:
123.30(1) the county contains land suitable for the purposes in subdivision 1;
new text begin .new text end
123.31(2) on January 1, 1933, the taxes on more than 25 percent of the acreage of the lands
123.32in a town in the county are delinquent, as shown by its tax books;
124.1(3) on January 1, 1933, the taxes or ditch assessments on more than 50 percent of the
124.2acreage of the lands to be taken over are delinquent, as shown by the county's tax books; and
124.3(4) on January 1, 1933, the bonded ditch indebtedness of the county equals or
124.4exceeds 15 percent of the assessed value of the county for 1932 as fixed by the Minnesota
124.5Tax Commission, exclusive of money and credits.
124.6
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
124.7 Sec. 11. Minnesota Statutes 2012, section 115B.49, subdivision 4, is amended to read:
124.8 Subd. 4.
Registration; fees. (a) The owner or operator of a dry cleaning facility
124.9shall register on or before October 1 of each year with the commissioner of revenue in
124.10a manner prescribed by the commissioner of revenue and pay a registration fee for the
124.11facility. The amount of the fee is:
124.12(1) $500, for facilities with a full-time equivalence of fewer than five;
124.13(2) $1,000, for facilities with a full-time equivalence of five to ten; and
124.14(3) $1,500, for facilities with a full-time equivalence of more than ten.
124.15The registration fee must be paid on or before October 18 or the owner or operator
124.16of a dry cleaning facility may elect to pay the fee in equal installments. Installment
124.17payments must be paid on or before October 18, on or before January 18, on or before
124.18April 18, and on or before June 18. All payments made after October 18 bear interest
124.19at the rate specified in section
270C.40.
124.20(b) A person who sells dry cleaning solvents for use by dry cleaning facilities in
124.21the state shall collect and remit to the commissioner of revenue in a
new text begin the samenew text end manner
124.22prescribed by the commissioner of revenue, on or before the 20th day of the month
124.23following the month in which the sales of dry cleaning solvents are made
new text begin for the taxes new text end
124.24
new text begin imposed under chapter 297Anew text end , a fee of:
124.25(1) $3.50 for each gallon of perchloroethylene sold for use by dry cleaning facilities
124.26in the state;
124.27(2) 70 cents for each gallon of hydrocarbon-based dry cleaning solvent sold for use
124.28by dry cleaning facilities in the state; and
124.29(3) 35 cents for each gallon of other nonaqueous solvents sold for use by dry
124.30cleaning facilities in the state.
124.31(c) The audit, assessment, appeal, collection, enforcement, and administrative
124.32provisions of chapters 270C and 289A apply to the fee imposed by this subdivision. To
124.33enforce this subdivision, the commissioner of revenue may grant extensions to file returns
124.34and pay fees, impose penalties and interest on the annual registration fee under paragraph
124.35(a) and the monthly fee under paragraph (b), and abate penalties and interest in the manner
125.1provided in chapters 270C and 289A. The penalties and interest imposed on taxes under
125.2chapter 297A apply to the fees imposed under this subdivision. Disclosure of data collected
125.3by the commissioner of revenue under this subdivision is governed by chapter 270B.
125.4
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for fees due after June 30, 2014.new text end
125.5 Sec. 12. Minnesota Statutes 2012, section 163.06, subdivision 1, is amended to read:
125.6 Subdivision 1.
Levy. The county board of any county in which there are unorganized
125.7townships may levy a tax for road and bridge purposes upon all the real and personal
125.8property in such unorganized townships, exclusive of money and credits taxed under the
125.9provisions of chapter 285.
125.10
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
125.11 Sec. 13. Minnesota Statutes 2012, section 270.11, subdivision 1, is amended to read:
125.12 Subdivision 1.
To act as State Board of Equalization. The commissioner of
125.13revenue shall have and exercise all the rights, powers and authority by law vested in the
125.14State Board of Equalization, which board of equalization is hereby continued, with full
125.15power and authority to review, modify, and revise all of the acts and proceedings of the
125.16commissioner in so far as they relate to the equalization and valuation of property assessed
125.17for taxation, as prescribed by section
270.12.
125.18
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
125.19 Sec. 14. Minnesota Statutes 2012, section 270.12, subdivision 2, is amended to read:
125.20 Subd. 2.
Meeting dates; duties. The board shall meet annually between April 15
125.21and June 30 at the office of the commissioner of revenue and examine and compare the
125.22returns of the assessment of the property in the several counties, and equalize the same so
125.23that all the taxable property in the state shall be assessed at its market value, subject to
125.24the following rules:
125.25(1) The board shall add to
new text begin or deduct from new text end the aggregate valuation of the real property
125.26of every county, which the board believes to be valued below
new text begin or above new text end its market value in
125.27money, such percent as will bring the same to its market value in money;
125.28(2) The board shall deduct from the aggregate valuation of the real property of every
125.29county, which the board believes to be valued above its market value in money, such
125.30percent as will reduce the same to its market value in money;
125.31(3)
new text begin (2)new text end If the board believes the valuation for a part of a class determined by a range
125.32of market value under clause (8)
new text begin (6)new text end or otherwise, a class, or classes of the real property of
126.1any town or district in any county, or the valuation for a part of a class, a class, or classes
126.2of the real property of any county not in towns or cities, should be raised or reduced,
126.3without raising or reducing the other real property of such county, or without raising or
126.4reducing it in the same ratio, the board may add to, or take from, the valuation of a part of
126.5a class, a class, or classes in any one or more of such towns or cities, or of the property not
126.6in towns or cities, such percent as the board believes will raise or reduce the same to its
126.7market value in money;
126.8(4)
new text begin (3)new text end The board shall add to
new text begin or take from new text end the aggregate valuation of any part of a
126.9class, a class, or classes of personal property of any county, town, or city, which the
126.10board believes to be valued below
new text begin or above new text end the market value thereof, such percent as will
126.11raise the same to its market value in money;
126.12(5) The board shall take from the aggregate valuation of any part of a class, a class,
126.13or classes of personal property in any county, town or city, which the board believes to
126.14be valued above the market value thereof, such percent as will reduce the same to its
126.15market value in money;
126.16(6)
new text begin (4)new text end The board shall not reduce the aggregate valuation of all the property of the
126.17state, as returned by the several county auditors, more than one percent on the whole
126.18valuation thereof;
126.19(7)
new text begin (5)new text end When it would be of assistance in equalizing values the board may require any
126.20county auditor to furnish statements showing assessments of real and personal property
126.21of any individuals, firms, or corporations within the county. The board shall consider
126.22and equalize such assessments and may increase the assessment of individuals, firms, or
126.23corporations above the amount returned by the county board of equalization when it shall
126.24appear to be undervalued, first giving notice to such persons of the intention of the board
126.25so to do, which notice shall fix a time and place of hearing. The board shall not decrease
126.26any such assessment below the valuation placed by the county board of equalization;
126.27(8)
new text begin (6)new text end In equalizing values pursuant to this section, the board shall utilize a 12-month
126.28assessment/sales ratio study conducted by the Department of Revenue containing only
126.29sales that are filed in the county auditor's office under section
272.115, by November 1 of
126.30the previous year and that occurred between October 1 of the year immediately preceding
126.31the previous year and September 30 of the previous year.
126.32The assessment/sales ratio study may separate the values of residential property
126.33into market value categories. The board may adjust the market value categories and the
126.34number of categories as necessary to create an adequate sample size for each market value
126.35category. The board may determine the adequate sample size. To the extent practicable,
126.36the methodology used in preparing the assessment/sales ratio study must be consistent
127.1with the most recent Standard on Assessment Sales Ratio Studies published by the
127.2Assessment Standards Committee of the International Association of Assessing Officers.
127.3The board may determine the geographic area used in preparing the study to accurately
127.4equalize values. A sales ratio study separating residential property into market value
127.5categories may not be used as the basis for a petition under chapter 278.
127.6The sales prices used in the study must be discounted for terms of financing. The
127.7board shall use the median ratio as the statistical measure of the level of assessment for
127.8any particular category of property; and
127.9(9)
new text begin (7)new text end The board shall receive from each county the estimated market values on the
127.10assessment date falling within the study period for all parcels by magnetic tape or other
new text begin anew text end
127.11 medium as prescribed by the commissioner of revenue.
127.12
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
127.13 Sec. 15. Minnesota Statutes 2012, section 270.12, subdivision 4, is amended to read:
127.14 Subd. 4.
Public utility property. For purposes of equalization only, public utility
127.15personal property shall be treated as a separate class of property notwithstanding the fact
127.16that its class rate is the same as commercial-industrial property.
127.17
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
127.18 Sec. 16. Minnesota Statutes 2012, section 270A.03, subdivision 2, is amended to read:
127.19 Subd. 2.
Claimant agency. "Claimant agency" means any state agency, as defined
127.20by section
14.02, subdivision 2, the regents of the University of Minnesota, any district
127.21court of the state, any county, any statutory or home rule charter city, including a city that
127.22is presenting a claim for a municipal hospital or a public library or a municipal ambulance
127.23service, a hospital district, a private nonprofit hospital that leases its building from the
127.24county or city in which it is located, any ambulance service licensed under chapter 144E,
127.25any public agency responsible for child support enforcement, any public agency responsible
127.26for the collection of court-ordered restitution, and any public agency established by
127.27general or special law that is responsible for the administration of a low-income housing
127.28program, and the Minnesota collection enterprise as defined in section
16D.02, subdivision
127.298
, for the purpose of collecting the costs imposed under section
.
127.30
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
127.31 Sec. 17. Minnesota Statutes 2012, section 270B.14, subdivision 3, is amended to read:
128.1 Subd. 3.
Administration of enterprise, new text begin and new text end job opportunity, and biotechnology
128.2
and health sciences industry zone programs. The commissioner may disclose return
128.3information relating to the taxes imposed by chapters 290 and 297A to the Department of
128.4Employment and Economic Development or a municipality with a border city enterprise
128.5zone as defined under section
469.166, but only as necessary to administer the funding
128.6limitations under section
469.169, or to the Department of Employment and Economic
128.7Development and appropriate officials from the local government units in which a
128.8qualified business is located but only as necessary to enforce the job opportunity building
128.9zone benefits under section
469.315, or biotechnology and health sciences industry zone
128.10benefits under section
.
128.11
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
128.12 Sec. 18. Minnesota Statutes 2012, section 270C.085, is amended to read:
128.13
270C.085 NOTIFICATION REQUIREMENTS; SALES AND USE TAXES.
128.14The commissioner of revenue shall establish a means of electronically notifying
128.15persons holding a sales tax permit under section
297A.84 of any statutory change in
128.16chapter 297A and any issuance or change in any administrative rule, revenue notice, or
128.17sales tax fact sheet or other written information provided by the department explaining the
128.18interpretation or administration of the tax imposed under that chapter. The notification
128.19must indicate the basic subject of the statute, rule, fact sheet, or other material and provide
128.20an electronic link to the material. Any person holding a sales tax permit that provides
128.21an electronic address to the department must receive these notifications unless they
128.22specifically request electronically, or in writing, to be removed from the notification list.
128.23This requirement does not replace traditional means of notifying the general public or
128.24persons without access to electronic communications of changes in the sales tax law. The
128.25electronic notification must begin no later than December 31, 2009.
128.26
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
128.27 Sec. 19. Minnesota Statutes 2012, section 270C.52, subdivision 2, is amended to read:
128.28 Subd. 2.
Payment agreements. (a) When any portion of any tax payable to the
128.29commissioner together with interest and penalty thereon, if any, has not been paid, the
128.30commissioner may extend the time for payment for a further period. When the authority
128.31of this section is invoked, the extension shall be evidenced by written agreement signed by
128.32the taxpayer and the commissioner, stating the amount of the tax with penalty and interest,
128.33if any, and providing for the payment of the amount in installments.
129.1(b) The agreement may contain a confession of judgment for the amount and for any
129.2unpaid portion thereof. If the agreement contains a confession of judgment, the confession
129.3of judgment must provide that the commissioner may enter judgment against the taxpayer
129.4in the district court of the county of residence as shown upon the taxpayer's tax return for
129.5the unpaid portion of the amount specified in the extension agreement.
129.6(c) The agreement shall provide that it can be terminated, after notice by the
129.7commissioner, if information provided by the taxpayer prior to the agreement was
129.8inaccurate or incomplete, collection of the tax covered by the agreement is in jeopardy,
129.9there is a subsequent change in the taxpayer's financial condition, the taxpayer has failed
129.10to make a payment due under the agreement, or the taxpayer has failed to pay any other
129.11tax or file a tax return coming due after the agreement.
129.12(d) The notice must be given at least 14 calendar days prior to termination, and shall
129.13advise the taxpayer of the right to request a reconsideration from the commissioner of
129.14whether termination is reasonable and appropriate under the circumstances. A request for
129.15reconsideration does not stay collection action beyond the 14-day notice period. If the
129.16commissioner has reason to believe that collection of the tax covered by the agreement
129.17is in jeopardy, the commissioner may proceed under section
270C.36 and terminate the
129.18agreement without regard to the 14-day period.
129.19(e) The commissioner may accept other collateral the commissioner considers
129.20appropriate to secure satisfaction of the tax liability. The principal sum specified in the
129.21agreement shall bear interest at the rate specified in section
270C.40 on all unpaid portions
129.22thereof until the same has been fully paid or the unpaid portion thereof has been entered as
129.23a judgment. The judgment shall bear interest at the rate specified in section
270C.40.
129.24(f) If it appears to the commissioner that the tax reported by the taxpayer is in excess
129.25of the amount actually owing by the taxpayer, the extension agreement or the judgment
129.26entered pursuant thereto shall be corrected. If after making the extension agreement
129.27or entering judgment with respect thereto, the commissioner determines that the tax as
129.28reported by the taxpayer is less than the amount actually due, the commissioner shall
129.29assess a further tax in accordance with the provisions of law applicable to the tax.
129.30(g) The authority granted to the commissioner by this section is in addition to any
129.31other authority granted to the commissioner by law to extend the time of payment or the
129.32time for filing a return and shall not be construed in limitation thereof.
129.33(h) The commissioner shall charge a fee for entering into payment agreements that
129.34reflects the commissioner's costs for entering into payment agreements. The fee is set at
129.35$50 and is charged for entering into a payment agreement, for entering into a new payment
129.36agreement after the taxpayer has defaulted on a prior agreement, and for entering into a
130.1new payment agreement as a result of renegotiation of the terms of an existing agreement.
130.2The fee is paid to the commissioner before the payment agreement becomes effective and
130.3does not reduce the amount of the liability.
130.4
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
130.5 Sec. 20. Minnesota Statutes 2012, section 272.01, subdivision 1, is amended to read:
130.6 Subdivision 1.
Generally taxable. All real and personal property in this state, and
130.7all personal property of persons residing therein, including the property of corporations,
130.8banks, banking companies, and bankers, is taxable, except Indian lands and such other
130.9property as is by law exempt from taxation.
130.10
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
130.11 Sec. 21. Minnesota Statutes 2012, section 272.01, subdivision 3, is amended to read:
130.12 Subd. 3.
Exceptions. The provisions of subdivision 2 shall not apply to:
130.13(a) Federal property for which payments are made in lieu of taxes in amounts
130.14equivalent to taxes which might otherwise be lawfully assessed;
130.15(b) Real estate exempt from ad valorem taxes and taxes in lieu thereof which is
130.16leased, loaned, or otherwise made available to telephone companies or electric, light
130.17and power companies upon which personal property consisting of transmission and
130.18distribution lines is situated and assessed pursuant to sections
273.37,
273.38,
273.40
130.19and
273.41, or upon which are situated the communication lines of express, railway,
new text begin or new text end
130.20telephone or telegraph companies, or pipelines used for the transmission and distribution
130.21of petroleum products, or the equipment items of a cable communications company
130.22subject to sections
238.35 to
238.42;
130.23(c) Property presently owned by any educational institution chartered by the
130.24territorial legislature;
130.25(d) Indian lands;
130.26(e) Property of any corporation organized as a tribal corporation under the Indian
130.27Reorganization Act of June 18, 1934, (Statutes at Large, volume 48, page 984);
130.28(f) Real property owned by the state and leased pursuant to section
161.23 or
130.29161.431
, and acts amendatory thereto;
130.30(g) Real property owned by a seaway port authority on June 1, 1967, upon which
130.31there has been constructed docks, warehouses, tank farms, administrative and maintenance
130.32buildings, railroad and ship terminal facilities and other maritime and transportation
130.33facilities or those directly related thereto, together with facilities for the handling of
131.1passengers and baggage and for the handling of freight and bulk liquids, and personal
131.2property owned by a seaway port authority used or usable in connection therewith, when
131.3said property is leased to a private individual, association or corporation, but only when
131.4such lease provides that the said facilities are available to the public for the loading and
131.5unloading of passengers and their baggage and the handling, storage, care, shipment,
131.6and delivery of merchandise, freight and baggage and other maritime and transportation
131.7activities and functions directly related thereto, but not including property used for grain
131.8elevator facilities; it being the declared policy of this state that such property when
131.9so leased is public property used exclusively for a public purpose, notwithstanding the
131.10one-year limitation in the provisions of section
273.19;
131.11(h) Notwithstanding the provisions of clause (g), when the annual rental received by
131.12a seaway port authority in any calendar year for such leased property exceeds an amount
131.13reasonably required for administrative expense of the authority per year, plus promotional
131.14expense for the authority not to exceed the sum of $100,000 per year, to be expended
131.15when and in the manner decided upon by the commissioners, plus an amount sufficient to
131.16pay all installments of principal and interest due, or to become due, during such calendar
131.17year and the next succeeding year on any revenue bonds issued by the authority, plus
131.1825 percent of the gross annual rental to be retained by the authority for improvement,
131.19development, or other contingencies, the authority shall make a payment in lieu of real
131.20and personal property taxes of a reasonable portion of the remaining annual rental to the
131.21county treasurer of the county in which such seaway port authority is principally located.
131.22Any such payments to the county treasurer shall be disbursed by the treasurer on the same
131.23basis as real estate taxes are divided among the various governmental units, but if such
131.24port authority shall have received funds from the state of Minnesota and funds from any
131.25city and county pursuant to Laws 1957, chapters 648, 831, and 849 and acts amendatory
131.26thereof, then such disbursement by the county treasurer shall be on the same basis as real
131.27estate taxes are divided among the various governmental units, except that the portion of
131.28such payments which would otherwise go to other taxing units shall be divided equally
131.29among the state of Minnesota and said county and city.
131.30
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
131.31 Sec. 22. Minnesota Statutes 2012, section 272.025, subdivision 1, is amended to read:
131.32 Subdivision 1.
Statement of exemption. (a) Except in the case of property owned
131.33by the state of Minnesota or any political subdivision thereof, and property exempt from
131.34taxation under section
272.02, subdivisions 9, 10, 13, 15, 18, 20, and 22 to 25, and at the
131.35times provided in subdivision 3, a taxpayer claiming an exemption from taxation on
132.1property described in section
272.02, subdivisions 1
new text begin 2new text end to 33, must file a statement of
132.2exemption with the assessor of the assessment district in which the property is located.
132.3(b) A taxpayer claiming an exemption from taxation on property described in section
132.4272.02, subdivision 10
, must file a statement of exemption with the commissioner of
132.5revenue, on or before February 15 of each year for which the taxpayer claims an exemption.
132.6(c) In case of sickness, absence or other disability or for good cause, the assessor
132.7or the commissioner may extend the time for filing the statement of exemption for a
132.8period not to exceed 60 days.
132.9(d) The commissioner of revenue shall prescribe the form and contents of the
132.10statement of exemption.
132.11
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
132.12 Sec. 23. Minnesota Statutes 2012, section 272.027, subdivision 1, is amended to read:
132.13 Subdivision 1.
Electricity generated to produce goods and services. Personal
132.14property used to generate electric power is exempt from property taxation if the electric
132.15power is used to manufacture or produce goods, products, or services, other than electric
132.16power, by the owner of the electric generation plant. Except as provided in subdivisions 2
132.17and 3, The exemption does not apply to property used to produce electric power for sale
132.18to others and does not apply to real property. In determining the value subject to tax,
132.19a proportionate share of the value of the generating facilities, equal to the proportion
132.20that the power sold to others bears to the total generation of the plant, is subject to the
132.21general property tax in the same manner as other property. Power generated in such a
132.22plant and exchanged for an equivalent amount of power that is used for the manufacture or
132.23production of goods, products, or services other than electric power by the owner of the
132.24generating plant is considered to be used by the owner of the plant.
132.25
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
132.26 Sec. 24. Minnesota Statutes 2012, section 272.029, subdivision 6, is amended to read:
132.27 Subd. 6.
Distribution of revenues. Revenues from the taxes imposed under
132.28subdivision 5 must be part of the settlement between the county treasurer and the county
132.29auditor under section
276.09. The revenue must be distributed by the county auditor or the
132.30county treasurer to local taxing jurisdictions in which the wind energy conversion system
132.31is located as follows: beginning with distributions in 2010, 80 percent to counties; and 20
132.32percent to cities and townships; and for distributions occurring in 2006 to 2009, 80 percent
132.33to counties; 14 percent to cities and townships; and six percent to school districts.
133.1
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
133.2 Sec. 25. Minnesota Statutes 2012, section 273.061, subdivision 6, is amended to read:
133.3 Subd. 6.
Salaries; expenses. The salaries of the county assessor and assistants and
133.4clerical help, shall be fixed by the board of county commissioners and shall be payable in
133.5monthly installments out of the general revenue fund of the county. In counties with a
133.6population of less than 50,000 inhabitants, according to the then last preceding federal
133.7census, the board of county commissioners shall not fix the salary of the county assessor at
133.8an amount below the following schedule:
133.9In counties with a population of less than 6,500, $5,900;
133.10In counties with a population of 6,500 but less than 12,000, $6,200;
133.11In counties with a population of 12,000 but less than 16,000, $6,500;
133.12In counties with a population of 16,000 but less than 21,000, $6,700;
133.13In counties with a population of 21,000 but less than 30,000, $6,900;
133.14In counties with a population of 30,000 but less than 39,500, $7,100;
133.15In counties with a population of 39,500 but less than 50,000, $7,300;
133.16In counties with a population of 50,000 or more, $8,300.
133.17In addition to their salaries, the county assessor and assistants shall be allowed their
133.18expenses for reasonable and necessary travel in the performance of their duties, including
133.19necessary travel, lodging and meal expense incurred by them while attending meetings of
133.20instructions or official hearings called by the commissioner of revenue. These expenses
133.21shall be payable out of the general revenue fund of the county, and shall be allowed on the
133.22same basis as such expenses are allowed to other county officers.
133.23
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
133.24 Sec. 26. Minnesota Statutes 2012, section 273.10, is amended to read:
133.25
273.10 SCHOOL DISTRICTS.
133.26When assessing personal property the county assessor shall designate the number of
133.27the school district in which each person assessed is liable for tax, by writing the number
133.28of the district opposite each assessment in a column provided for that purpose in the
133.29assessment book. When the personal property of any person is assessable in several
133.30school districts, the amount in each shall be assessed separately, and the name of the
133.31owner placed opposite each amount.
133.32
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
134.1 Sec. 27. Minnesota Statutes 2012, section 273.11, subdivision 13, is amended to read:
134.2 Subd. 13.
Valuation of income-producing property. Beginning with the 1995
134.3assessment, Only accredited assessors or senior accredited assessors or other licensed
134.4assessors who have successfully completed at least two income-producing property
134.5appraisal courses may value income-producing property for ad valorem tax purposes.
134.6"Income-producing property" as used in this subdivision means the taxable property in
134.7class 3a and 3b in section
273.13, subdivision 24; class 4a and 4c, except for seasonal
134.8recreational property not used for commercial purposes; and class 5 in section
273.13,
134.9subdivision 31
. "Income-producing property" includes any property in class 4e in section
134.10273.13, subdivision 25
, that would be income-producing property under the definition in
134.11this subdivision if it were not substandard. "Income-producing property appraisal course"
134.12as used in this subdivision means a course of study of approximately 30 instructional
134.13hours, with a final comprehensive test. An assessor must successfully complete the final
134.14examination for each of the two required courses. The course must be approved by the
134.15board of assessors.
134.16
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
134.17 Sec. 28. Minnesota Statutes 2012, section 273.112, subdivision 6a, is amended to read:
134.18 Subd. 6a.
Guidelines issued by commissioner. The commissioner of revenue shall
134.19develop and issue guidelines for qualification by private golf clubs under this section
134.20covering the access to and use of the golf course by members and other adults so as to be
134.21consistent with the purposes and terms of this section. The guidelines shall be mailed to
134.22the county attorney and assessor of each county not later than 60 days following May 26,
134.231989. Within 15 days of receipt of the guidelines from the commissioner, the assessor
134.24shall mail a copy of the guidelines to each golf club in the county.
134.25
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
134.26 Sec. 29. Minnesota Statutes 2013 Supplement, section 273.1325, subdivision 2,
134.27is amended to read:
134.28 Subd. 2.
Methodology. In making its annual assessment/sales ratio studies, the
134.29Department of Revenue must use a methodology consistent with the most recent Standard
134.30on Assessment Ratio Studies published by the assessment standards committee of the
134.31International Association of Assessing Officers. The commissioner of revenue shall
134.32supplement this general methodology with specific procedures necessary for execution of
134.33the study in accordance with other Minnesota laws impacting the assessment/sales ratio
135.1study. The commissioner shall document these specific procedures in writing and shall
135.2publish the procedures in the State Register, but these procedures will not be considered
135.3"rules" pursuant to the Minnesota Administrative Procedure Act. When property is sold and
135.4the purchaser changes its use in a manner that would result in a change of classification of
135.5the property, the assessment sales ratio study under this subdivision must take into account
135.6that changed classification as soon as practicable. A change in status from homestead to
135.7nonhomestead or from nonhomestead to homestead is not a change under this subdivision.
135.8For purposes of this section, sections
270.12, subdivision 2, clause (8)
new text begin (6)new text end , and
278.05,
135.9subdivision 4
, the commissioner of revenue shall exclude from the assessment/sales ratio
135.10study the sale of any nonagricultural property which does not contain an improvement,
135.11if (1) the statutory basis on which the property's taxable value as most recently assessed
135.12is less than market value as defined in section
273.11, or (2) the property has undergone
135.13significant physical change or a change of use since the most recent assessment.
135.14
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
135.15 Sec. 30. Minnesota Statutes 2013 Supplement, section 273.1398, subdivision 3,
135.16is amended to read:
135.17 Subd. 3.
Disparity reduction aid. The amount of disparity aid certified for each
135.18taxing district within each unique taxing jurisdiction
new text begin is the amount certified new text end for taxes
135.19payable in the prior year shall be multiplied by the ratio of (1) the jurisdiction's tax
135.20capacity using the class rates for taxes payable in the year for which aid is being computed,
135.21to (2) its tax capacity using the class rates for taxes payable in the year prior to that for
135.22which aid is being computed, both based upon taxable market values for taxes payable in
135.23the year prior to that for which aid is being computed. If the commissioner determines
135.24that insufficient information is available to reasonably and timely calculate the numerator
135.25in this ratio for the first taxes payable year that a class rate change or new class rate is
135.26effective, the commissioner shall omit the effects of that class rate change or new class
135.27rate when calculating this ratio for aid payable in that taxes payable year. For aid payable
135.28in the year following a year for which such omission was made, the commissioner shall
135.29use in the denominator for the class that was changed or created, the tax capacity for taxes
135.30payable two years prior to that in which the aid is payable, based on taxable market values
135.31for taxes payable in the year prior to that for which aid is being computed.
135.32
new text begin EFFECTIVE DATE.new text end new text begin This section is effective beginning for taxes payable in 2015.new text end
135.33 Sec. 31. Minnesota Statutes 2012, section 273.18, is amended to read:
136.1
273.18 LISTING, VALUATION, AND ASSESSMENT OF EXEMPT
136.2
PROPERTY BY COUNTY AUDITORS.
136.3(a) In every sixth year after the year 1926
new text begin 2010new text end , the county auditor shall enter, in
136.4a separate place in the real estate assessment books, the description of each tract of real
136.5property exempt by law from taxation, with the name of the owner, if known, and the
136.6assessor shall value and assess the same in the same manner that other real property is
136.7valued and assessed, and shall designate in each case the purpose for which the property is
136.8used.
136.9(b) For purposes of the apportionment of fire state aid under section
69.021,
136.10subdivision 7
, the county auditor shall include on the abstract of assessment of exempt real
136.11property filed under this section, the total number of acres of all natural resources lands for
136.12which in lieu payments are made under sections
477A.11 to
477A.14. The assessor shall
136.13estimate its market value, provided that if the assessor is not able to estimate the market
136.14value of the land on a per parcel basis, the assessor shall furnish the commissioner of
136.15revenue with an estimate of the average value per acre of this land within the county.
136.16
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
136.17 Sec. 32. Minnesota Statutes 2012, section 274.01, subdivision 1, is amended to read:
136.18 Subdivision 1.
Ordinary board; meetings, deadlines, grievances. (a) The town
136.19board of a town, or the council or other governing body of a city, is the board of appeal
136.20and equalization except (1) in cities whose charters provide for a board of equalization or
136.21(2) in any city or town that has transferred its local board of review power and duties to
136.22the county board as provided in subdivision 3. The county assessor shall fix a day and
136.23time when the board or the board of equalization shall meet in the assessment districts
136.24of the county. Notwithstanding any law or city charter to the contrary, a city board of
136.25equalization shall be referred to as a board of appeal and equalization. On or before
136.26February 15 of each year the assessor shall give written notice of the time to the city or
136.27town clerk. Notwithstanding the provisions of any charter to the contrary, the meetings
136.28must be held between April 1 and May 31 each year. The clerk shall give published and
136.29posted notice of the meeting at least ten days before the date of the meeting.
136.30 The board shall meet at the office of the clerk to review the assessment and
136.31classification of property in the town or city. No changes in valuation or classification
136.32which are intended to correct errors in judgment by the county assessor may be made by
136.33the county assessor after the board has adjourned in those cities or towns that hold a
136.34local board of review; however, corrections of errors that are merely clerical in nature or
136.35changes that extend homestead treatment to property are permitted after adjournment until
137.1the tax extension date for that assessment year. The changes must be fully documented and
137.2maintained in the assessor's office and must be available for review by any person. A copy
137.3of the changes made during this period in those cities or towns that hold a local board of
137.4review must be sent to the county board no later than December 31 of the assessment year.
137.5 (b) The board shall determine whether the taxable property in the town or city has
137.6been properly placed on the list and properly valued by the assessor. If real or personal
137.7property has been omitted, the board shall place it on the list with its market value, and
137.8correct the assessment so that each tract or lot of real property, and each article, parcel,
137.9or class of personal property, is entered on the assessment list at its market value. No
137.10assessment of the property of any person may be raised unless the person has been
137.11duly notified of the intent of the board to do so. On application of any person feeling
137.12aggrieved, the board shall review the assessment or classification, or both, and correct
137.13it as appears just. The board may not make an individual market value adjustment or
137.14classification change that would benefit the property if the owner or other person having
137.15control over the property has refused the assessor access to inspect the property and the
137.16interior of any buildings or structures as provided in section
273.20. A board member
137.17shall not participate in any actions of the board which result in market value adjustments
137.18or classification changes to property owned by the board member, the spouse, parent,
137.19stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle, aunt, nephew,
137.20or niece of a board member, or property in which a board member has a financial interest.
137.21The relationship may be by blood or marriage.
137.22 (c) A local board may reduce assessments upon petition of the taxpayer but the total
137.23reductions must not reduce the aggregate assessment made by the county assessor by more
137.24than one percent. If the total reductions would lower the aggregate assessments made by
137.25the county assessor by more than one percent, none of the adjustments may be made. The
137.26assessor shall correct any clerical errors or double assessments discovered by the board
137.27without regard to the one percent limitation.
137.28 (d) A local board does not have authority to grant an exemption or to order property
137.29removed from the tax rolls.
137.30 (e) A majority of the members may act at the meeting, and adjourn from day to day
137.31until they finish hearing the cases presented. The assessor shall attend, with the assessment
137.32books and papers, and take part in the proceedings, but must not vote. The county assessor,
137.33or an assistant delegated by the county assessor shall attend the meetings. The board shall
137.34list separately, on a form appended to the assessment book, all omitted property added
137.35to the list by the board and all items of property increased or decreased, with the market
138.1value of each item of property, added or changed by the board, placed opposite the item.
138.2The county assessor shall enter all changes made by the board in the assessment book.
138.3 (f) Except as provided in subdivision 3, if a person fails to appear in person, by
138.4counsel, or by written communication before the board after being duly notified of the
138.5board's intent to raise the assessment of the property, or if a person feeling aggrieved by an
138.6assessment or classification fails to apply for a review of the assessment or classification,
138.7the person may not appear before the county board of appeal and equalization for a review
138.8of the assessment or classification. This paragraph does not apply if an assessment was
138.9made after the local board meeting, as provided in section
273.01, or if the person can
138.10establish not having received notice of market value at least five days before the local
138.11board meeting.
138.12 (g) The local board must complete its work and adjourn within 20 days from the
138.13time of convening stated in the notice of the clerk, unless a longer period is approved by
138.14the commissioner of revenue. No action taken after that date is valid. All complaints
138.15about an assessment or classification made after the meeting of the board must be heard
138.16and determined by the county board of equalization. A nonresident may, at any time,
138.17before the meeting of the board file written objections to an assessment or classification
138.18with the county assessor. The objections must be presented to the board at its meeting by
138.19the county assessor for its consideration.
138.20
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
138.21 Sec. 33. Minnesota Statutes 2012, section 274.01, subdivision 2, is amended to read:
138.22 Subd. 2.
Special board; duties delegated. The governing body of a city, including
138.23a city whose charter provides for a board of equalization, may appoint a special board of
138.24review. The city may delegate to the special board of review all of the powers and duties
138.25in subdivision 1. The special board of review shall serve at the direction and discretion
138.26of the appointing body, subject to the restrictions imposed by law. The appointing body
138.27shall determine the number of members of the board, the compensation and expenses to be
138.28paid, and the term of office of each member. At least one member of the special board
138.29of review must be an appraiser, realtor, or other person familiar with property valuations
138.30in the assessment district.
138.31
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
138.32 Sec. 34. Minnesota Statutes 2012, section 275.08, subdivision 1a, is amended to read:
139.1 Subd. 1a.
Computation of tax capacity. For taxes payable in 1989, the county
139.2auditor shall compute the gross tax capacity for each parcel according to the class rates
139.3specified in section
. The gross tax capacity will be the appropriate class rate
139.4multiplied by the parcel's market value. For taxes payable in 1990 and subsequent years,
139.5 The county auditor shall compute the net tax capacity for each parcel according to the
139.6class rates specified in section
273.13. The net tax capacity will be the appropriate class
139.7rate multiplied by the parcel's market value.
139.8
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
139.9 Sec. 35. Minnesota Statutes 2012, section 275.08, subdivision 1d, is amended to read:
139.10 Subd. 1d.
Additional adjustment. If, after computing each local government's
139.11adjusted local tax rate within a unique taxing jurisdiction pursuant to subdivision 1c, the
139.12auditor finds that the total adjusted local tax rate of all local governments combined is
139.13less than 90 percent of gross tax capacity for taxes payable in 1989 and 90 percent of net
139.14tax capacity for taxes payable in 1990 and thereafter, the auditor shall increase each local
139.15government's adjusted local tax rate proportionately so the total adjusted local tax rate of
139.16all local governments combined equals 90 percent. The total amount of the increase in
139.17tax resulting from the increased local tax rates must not exceed the amount of disparity
139.18aid allocated to the unique taxing district under section
273.1398. The auditor shall
139.19certify to the Department of Revenue the difference between the disparity aid originally
139.20allocated under section
273.1398, subdivision 3, and the amount necessary to reduce
139.21the total adjusted local tax rate of all local governments combined to 90 percent. Each
139.22local government's disparity reduction aid payment under section
273.1398, subdivision
139.236
, must be reduced accordingly.
139.24
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
139.25 Sec. 36. Minnesota Statutes 2013 Supplement, section 275.70, subdivision 5, is
139.26amended to read:
139.27 Subd. 5.
Special levies. "Special levies" means those portions of ad valorem taxes
139.28levied by a local governmental unit for the following purposes or in the following manner:
139.29 (1) to pay the costs of the principal and interest on bonded indebtedness or to
139.30reimburse for the amount of liquor store revenues used to pay the principal and interest
139.31due on municipal liquor store bonds in the year preceding the year for which the levy
139.32limit is calculated;
140.1 (2) to pay the costs of principal and interest on certificates of indebtedness issued for
140.2any corporate purpose except for the following:
140.3 (i) tax anticipation or aid anticipation certificates of indebtedness;
140.4 (ii) certificates of indebtedness issued under sections
298.28 and
298.282;
140.5 (iii) certificates of indebtedness used to fund current expenses or to pay the costs of
140.6extraordinary expenditures that result from a public emergency; or
140.7 (iv) certificates of indebtedness used to fund an insufficiency in tax receipts or an
140.8insufficiency in other revenue sources, provided that nothing in this subdivision limits the
140.9special levy authorized under section
475.755;
140.10 (3) to provide for the bonded indebtedness portion of payments made to another
140.11political subdivision of the state of Minnesota;
140.12 (4) to fund payments made to the Minnesota State Armory Building Commission
140.13under section
193.145, subdivision 2, to retire the principal and interest on armory
140.14construction bonds;
140.15 (5) property taxes approved by voters which are levied against the referendum
140.16market value as provided under section
275.61;
140.17 (6) to fund matching requirements needed to qualify for federal or state grants or
140.18programs to the extent that either (i) the matching requirement exceeds the matching
140.19requirement in calendar year 2001, or (ii) it is a new matching requirement that did not
140.20exist prior to 2002;
140.21 (7) to pay the expenses reasonably and necessarily incurred in preparing for or
140.22repairing the effects of natural disaster including the occurrence or threat of widespread
140.23or severe damage, injury, or loss of life or property resulting from natural causes, in
140.24accordance with standards formulated by the Emergency Services Division of the state
140.25Department of Public Safety, as allowed by the commissioner of revenue under section
140.26275.74, subdivision 2
;
140.27 (8) pay amounts required to correct an error in the levy certified to the county
140.28auditor by a city or county in a levy year, but only to the extent that when added to the
140.29preceding year's levy it is not in excess of an applicable statutory, special law or charter
140.30limitation, or the limitation imposed on the governmental subdivision by sections
275.70
140.31to
275.74 in the preceding levy year;
140.32 (9) to pay an abatement under section
469.1815;
140.33 (10) to pay any costs attributable to increases in the employer contribution rates under
140.34chapter 353, or locally administered pension plans, that are effective after June 30, 2001;
140.35 (11) to pay the operating or maintenance costs of a county jail as authorized in section
140.36641.01
or
641.262, or of a correctional facility as defined in section
241.021, subdivision 1,
141.1paragraph (f), to the extent that the county can demonstrate to the commissioner of revenue
141.2that the amount has been included in the county budget as a direct result of a rule, minimum
141.3requirement, minimum standard, or directive of the Department of Corrections, or to pay
141.4the operating or maintenance costs of a regional jail as authorized in section
641.262. For
141.5purposes of this clause, a district court order is not a rule, minimum requirement, minimum
141.6standard, or directive of the Department of Corrections. If the county utilizes this special
141.7levy, except to pay operating or maintenance costs of a new regional jail facility under
141.8sections
641.262 to
641.264 which will not replace an existing jail facility, any amount
141.9levied by the county in the previous levy year for the purposes specified under this clause
141.10and included in the county's previous year's levy limitation computed under section
141.11275.71
, shall be deducted from the levy limit base under section
275.71, subdivision 2,
141.12when determining the county's current year levy limitation. The county shall provide the
141.13necessary information to the commissioner of revenue for making this determination;
141.14 (12) to pay for operation of a lake improvement district, as authorized under section
141.15103B.555
. If the county utilizes this special levy, any amount levied by the county in the
141.16previous levy year for the purposes specified under this clause and included in the county's
141.17previous year's levy limitation computed under section
275.71 shall be deducted from
141.18the levy limit base under section
275.71, subdivision 2, when determining the county's
141.19current year levy limitation. The county shall provide the necessary information to the
141.20commissioner of revenue for making this determination;
141.21 (13) to repay a state or federal loan used to fund the direct or indirect required
141.22spending by the local government due to a state or federal transportation project or other
141.23state or federal capital project. This authority may only be used if the project is not a
141.24local government initiative;
141.25 (14) to pay for court administration costs as required under section
273.1398,
141.26subdivision 4b
, less the (i) county's share of transferred fines and fees collected by the
141.27district courts in the county for calendar year 2001 and (ii) the aid amount certified to be
141.28paid to the county in 2004 under section
273.1398, subdivision 4c; however, for taxes
141.29levied to pay for these costs in the year in which the court financing is transferred to the
141.30state, the amount under this clause is limited to the amount of aid the county is certified to
141.31receive under section
273.1398, subdivision 4a;
141.32 (15)
new text begin (14)new text end to fund a firefighters relief association as required under Laws 2013,
141.33chapter 111, article 5, sections 31 to 42, to the extent that the required amount exceeds the
141.34amount levied for this purpose in 2001;
141.35 (16)
new text begin (15)new text end for purposes of a storm sewer improvement district under section
444.20;
142.1 (17)
new text begin (16)new text end to pay for the maintenance and support of a city or county society for
142.2the prevention of cruelty to animals under section
343.11, but not to exceed in any year
142.3$4,800 or the sum of $1 per capita based on the county's or city's population as of the most
142.4recent federal census, whichever is greater. If the city or county uses this special levy, any
142.5amount levied by the city or county in the previous levy year for the purposes specified
142.6in this clause and included in the city's or county's previous year's levy limit computed
142.7under section
275.71, must be deducted from the levy limit base under section
275.71,
142.8subdivision 2
, in determining the city's or county's current year levy limit;
142.9 (18)
new text begin (17)new text end for counties, to pay for the increase in their share of health and human
142.10service costs caused by reductions in federal health and human services grants effective
142.11after September 30, 2007;
142.12 (19)
new text begin (18)new text end for a city, for the costs reasonably and necessarily incurred for securing,
142.13maintaining, or demolishing foreclosed or abandoned residential properties, as allowed by
142.14the commissioner of revenue under section
275.74, subdivision 2. A city must have either
142.15(i) a foreclosure rate of at least 1.4 percent in 2007, or (ii) a foreclosure rate in 2007 in
142.16the city or in a zip code area of the city that is at least 50 percent higher than the average
142.17foreclosure rate in the metropolitan area, as defined in section
473.121, subdivision 2,
142.18to use this special levy. For purposes of this paragraph, "foreclosure rate" means the
142.19number of foreclosures, as indicated by sheriff sales records, divided by the number of
142.20households in the city in 2007;
142.21 (20) for a city, for the unreimbursed costs of redeployed traffic-control agents and
142.22lost traffic citation revenue due to the collapse of the Interstate 35W bridge, as certified
142.23to the Federal Highway Administration;
142.24 (21)
new text begin (19)new text end to pay costs attributable to wages and benefits for sheriff, police, and fire
142.25personnel. If a local governmental unit did not use this special levy in the previous year its
142.26levy limit base under section
275.71 shall be reduced by the amount equal to the amount it
142.27levied for the purposes specified in this clause in the previous year;
142.28 (22)
new text begin (20)new text end an amount equal to any reductions in the certified aids or credit
142.29reimbursements payable under sections
477A.011 to
477A.014, and section
273.1384,
142.30due to unallotment under section
16A.152 or reductions under another provision of law.
142.31The amount of the levy allowed under this clause for each year is limited to the amount
142.32unallotted or reduced from the aids and credit reimbursements certified for payment in the
142.33year following the calendar year in which the tax levy is certified unless the unallotment
142.34or reduction amount is not known by September 1 of the levy certification year, and
142.35the local government has not adjusted its levy under section
275.065, subdivision 6, or
143.1275.07, subdivision 6
, in which case that unallotment or reduction amount may be levied
143.2in the following year;
143.3(23)
new text begin (21)new text end to pay for the difference between one-half of the costs of confining sex
143.4offenders undergoing the civil commitment process and any state payments for this
143.5purpose pursuant to section
253D.12;
143.6(24)
new text begin (22)new text end for a county to pay the costs of the first year of maintaining and operating
143.7a new facility or new expansion, either of which contains courts, corrections, dispatch,
143.8criminal investigation labs, or other public safety facilities and for which all or a portion
143.9of the funding for the site acquisition, building design, site preparation, construction, and
143.10related equipment was issued or authorized prior to the imposition of levy limits in 2008.
143.11The levy limit base shall then be increased by an amount equal to the new facility's first
143.12full year's operating costs as described in this clause; and
143.13(25)
new text begin (23)new text end for the estimated amount of reduction to market value credit reimbursements
143.14under section
273.1384 for credits payable in the year in which the levy is payable.
143.15
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
143.16 Sec. 37. Minnesota Statutes 2012, section 275.74, subdivision 2, is amended to read:
143.17 Subd. 2.
Authorization for special levies. (a) A local governmental unit may
143.18request authorization to levy for unreimbursed costs for natural disasters under section
143.19275.70, subdivision 5
, clause (7). The local governmental unit shall submit a request to
143.20levy under section
275.70, subdivision 5, clause (7), to the commissioner of revenue by
143.21September 30 of the levy year and the request must include information documenting the
143.22estimated unreimbursed costs. The commissioner of revenue may grant levy authority,
143.23up to the amount requested based on the documentation submitted. All decisions of the
143.24commissioner are final.
143.25 (b) A city may request authorization to levy for reasonable and necessary costs for
143.26securing, maintaining, or demolishing foreclosed or abandoned residential properties under
143.27section
275.70, subdivision 5, clause (19)
new text begin (18)new text end . The local governmental unit shall submit a
143.28request to levy under section
275.70, subdivision 5, clause (19)
new text begin (18)new text end , to the commissioner
143.29of revenue by September 30 of the levy year and the request must include information
143.30documenting the estimated costs. For taxes payable in 2009, the amount may include
143.31unanticipated costs incurred above the amount budgeted for these purposes in 2008. Costs
143.32of securing foreclosed or abandoned residential properties include payment for police and
143.33fire department services. The commissioner of revenue may grant levy authority, up to the
143.34lesser of (1) the amount requested based on the documentation submitted, or (2) $3,000
144.1multiplied by the number of foreclosed residential properties, as defined by sheriff sales
144.2records, in calendar year 2007. All decisions of the commissioner are final.
144.3
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
144.4 Sec. 38. Minnesota Statutes 2012, section 275.75, is amended to read:
144.5
275.75 CHARTER EXEMPTION FOR AID LOSS.
144.6Notwithstanding any other provision of a municipal charter that limits ad valorem
144.7taxes to a lesser amount, or that would require voter approval for any increase, the
144.8governing body of a municipality may by resolution increase its levy in any year by an
144.9amount equal to its special levies under section
275.70, subdivision 5, clauses (22) and
144.10(25)
new text begin (20) and (23)new text end .
144.11
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
144.12 Sec. 39. Minnesota Statutes 2012, section 279.03, subdivision 1, is amended to read:
144.13 Subdivision 1.
Ratenew text begin Interest calculationnew text end . The rate of interest on delinquent
144.14property taxes levied in 1979 and prior years is fixed at six percent per year until January
144.151, 1983. Thereafter Interest is payable at the rate determined pursuant to section
.
144.16The rate of interest on delinquent property taxes levied in 1980 and subsequent years is
144.17the rate determined pursuant to section
. All provisions of law except section
144.18 providing for the calculation of interest at any different rate on delinquent taxes in
144.19any notice or proceeding in connection with the payment, collection, sale, or assignment
144.20of delinquent taxes, or redemption from such sale or assignment are hereby amended
144.21to correspond herewith. Section
549.09 shall continue in force
new text begin appliesnew text end with respect to
144.22judgments arising out of petitions for review filed pursuant to chapter 278 irrespective of
144.23the levy year.
144.24For property taxes levied in 1980 and prior years, interest is to be calculated at
144.25simple interest from the second Monday in May following the year in which the taxes
144.26become due until the time that the taxes and penalties are paid, computed on the amount
144.27of unpaid taxes, penalties and costs. For property taxes levied in 1981 and subsequent
144.28years, Interest shall commence on the first day of January following the year in which the
144.29taxes become due, but the county treasurer need not calculate interest on unpaid taxes and
144.30penalties on the tax list returned to the county auditor pursuant to section
279.01.
144.31If interest is payable for a portion of a year, the interest is calculated only for the
144.32months that the taxes or penalties remain unpaid, and for this purpose a portion of a month
144.33is deemed to be a whole month.
145.1
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
145.2 Sec. 40. Minnesota Statutes 2012, section 279.03, subdivision 1a, is amended to read:
145.3 Subd. 1a.
Rate after December 31, 1990. (a) Except as provided in paragraph (b),
145.4interest on delinquent property taxes, penalties, and costs unpaid on or after January 1,
145.51991, shall be
new text begin isnew text end payable at the per annum rate determined in section
270C.40, subdivision
145.65
. If the rate so determined is less than ten percent, the rate of interest shall be
new text begin isnew text end ten
145.7percent. The maximum per annum rate shall be
new text begin isnew text end 14 percent if the rate specified under
145.8section
270C.40, subdivision 5, exceeds 14 percent. The rate shall be
new text begin isnew text end subject to change
145.9on January 1 of each year.
145.10(b) If a person is the owner of one or more parcels of property on which taxes are
145.11delinquent, and the delinquent taxes are more than 25 percent of the prior year's school
145.12district levy, interest on the delinquent property taxes, penalties, and costs unpaid after
145.13January 1, 1992, shall be
new text begin isnew text end payable at twice the rate determined under paragraph (a) for
145.14the year.
145.15
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
145.16 Sec. 41. Minnesota Statutes 2012, section 279.16, is amended to read:
145.17
279.16 JUDGMENT WHEN NO ANSWER; FORM; ENTRY.
145.18Upon the expiration of 20 days from the later of the filing of the affidavit of
145.19publication or the filing of the affidavit of mailing pursuant to section
279.131, the
145.20court administrator shall enter judgment against each and every such parcel as to which
145.21no answer has been filed, which judgment shall include all such parcels, and shall be
145.22substantially in the following form:
145.23
State of Minnesota
)
District Court,
145.24
) ss.
145.25
County of
.....
)
.............. Judicial District.
145.26In the matter of the proceedings to enforce payment of the taxes on real estate
145.27remaining delinquent on the first Monday in January, ......., for the county of ....................,
145.28state of Minnesota.
145.29A list of taxes on real property, delinquent on the first Monday in January, ......., for
145.30said county of ................., having been duly filed in the office of the court administrator of
145.31this court, and the notice and list required by law having been duly published and mailed
145.32as required by law, and more than 20 days having elapsed since the last publication of the
145.33notice and list, and no answer having been filed by any person, company, or corporation
146.1to the taxes upon any of the parcels of land hereinafter described, it is hereby adjudged
146.2that each parcel of land hereinafter described is liable for taxes, penalties, and costs to the
146.3amount set opposite the same, as follows:
146.4
Description.
Parcel Number.
Amount.
146.5The amount of taxes, penalties, and cost to which, as hereinbefore stated, each of
146.6such parcels of land is liable, is hereby declared a lien upon such parcel of land as against
146.7the estate, right, title, interest, claim, or lien, of whatever nature, in law or equity, of every
146.8person, company, or corporation; and it is adjudged that, unless the amount to which
146.9each of such parcels is liable be paid, each of such parcels be sold, as provided by law,
146.10to satisfy the amount to which it is liable.
146.11
Dated this ............. day of ..............., .......
146.12
146.13
146.14
.....
Court Administrator of the District Court,
County of
.....
146.15The judgment shall be entered by the court administrator in a book to be kept by
146.16the court administrator, to be called the real estate tax judgment book, and signed by the
146.17court administrator. The judgment shall be written out on the left-hand pages of the book,
146.18leaving the right-hand pages blank for the entries in this chapter hereinafter provided; and
146.19 The same presumption in favor of the regularity and validity of the judgment shall be
146.20deemed to exist as in respect to judgments in civil actions in such court, except where taxes
146.21have been paid before the entry of judgment, or where the land is exempt from taxation, in
146.22which cases the judgment shall be prima facie evidence only of its regularity and validity.
146.23
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
146.24 Sec. 42. Minnesota Statutes 2012, section 279.23, is amended to read:
146.25
279.23 COPY OF JUDGMENT TO COUNTY AUDITOR.
146.26When any real estate tax judgment is entered, the court administrator shall forthwith
146.27 deliver to the county auditor, in a book to be provided by the auditor, a certified copy of
146.28such judgment, which shall be written on the left-hand pages of the book, leaving the
146.29right-hand pages blank.
146.30
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
146.31 Sec. 43. Minnesota Statutes 2012, section 279.25, is amended to read:
146.32
279.25 PAYMENT BEFORE JUDGMENT.
147.1Before sale any person may pay the amount adjudged against any parcel of land.
147.2If payment is made before entry of judgment, and the delinquent list has been filed with
147.3the court administrator, the county auditor shall immediately certify such payment to the
147.4court administrator, who shall note the same on such delinquent list; and all proceedings
147.5pending against such parcel shall thereupon be discontinued. If payment is made after
147.6judgment is entered and before sale, the auditor shall certify such payment to the clerk,
147.7who, upon production of such certificate and the payment of a fee of ten cents, shall enter
147.8on the right-hand page of the real estate tax judgment book, and opposite the description
147.9of such parcel, satisfaction of the judgment against the same. The auditor shall make
147.10proper records of all payments made under this section.
147.11
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
147.12 Sec. 44. Minnesota Statutes 2013 Supplement, section 279.37, subdivision 2, is
147.13amended to read:
147.14 Subd. 2.
Installment payments. The owner of any such parcel, or any person to
147.15whom the right to pay taxes has been given by statute, mortgage, or other agreement, may
147.16make and file with the county auditor of the county in which the parcel is located a written
147.17offer to pay the current taxes each year before they become delinquent, or to contest the
147.18taxes under Minnesota Statutes 1941, sections
to
new text begin chapter 278new text end , and agree
147.19to confess judgment for the amount provided, as determined by the county auditor. By
147.20filing the offer, the owner waives all irregularities in connection with the tax proceedings
147.21affecting the parcel and any defense or objection which the owner may have to the
147.22proceedings, and also waives the requirements of any notice of default in the payment of
147.23any installment or interest to become due pursuant to the composite judgment to be so
147.24entered. Unless the property is subject to subdivision 1a, with the offer, the owner shall (i)
147.25tender one-tenth of the amount of the delinquent taxes, costs, penalty, and interest, and
147.26(ii) tender all current year taxes and penalty due at the time the confession of judgment is
147.27entered. In the offer, the owner shall agree to pay the balance in nine equal installments,
147.28with interest as provided in section
279.03, payable annually on installments remaining
147.29unpaid from time to time, on or before December 31 of each year following the year in
147.30which judgment was confessed. The offer must be substantially as follows:
147.31"To the court administrator of the district court of ........... county, I, .....................,
147.32am the owner of the following described parcel of real estate located in ....................
147.33county, Minnesota:
147.34.............................. Upon that real estate there are delinquent taxes for the year ........., and
147.35prior years, as follows: (here insert year of delinquency and the total amount of delinquent
148.1taxes, costs, interest, and penalty). By signing this document I offer to confess judgment in
148.2the sum of $...... and waive all irregularities in the tax proceedings affecting these taxes and
148.3any defense or objection which I may have to them, and direct judgment to be entered for
148.4the amount stated above, minus the sum of $............, to be paid with this document, which
148.5is one-tenth or one-fifth of the amount of the taxes, costs, penalty, and interest stated above.
148.6I agree to pay the balance of the judgment in nine or four equal, annual installments, with
148.7interest as provided in section
279.03, payable annually, on the installments remaining
148.8unpaid. I agree to pay the installments and interest on or before December 31 of each year
148.9following the year in which this judgment is confessed and current taxes each year before
148.10they become delinquent, or within 30 days after the entry of final judgment in proceedings
148.11to contest the taxes under Minnesota Statutes, sections
to
new text begin chapter 278new text end .
148.12Dated .............., ......."
148.13
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
148.14 Sec. 45. Minnesota Statutes 2012, section 280.001, is amended to read:
148.15
280.001 PUBLIC SALES, AUDITOR'S CERTIFICATES ABOLISHED.
148.16Effective the second Monday in May 1974, and each year thereafter, No parcel of
148.17land against which judgment has been entered and remains unsatisfied for the taxes of
148.18the preceding year or years may be sold at public vendue as provided in sections
280.01
148.19and
280.02 by the county auditor but shall be treated in the same manner and regarded in
148.20all respects as land bid in for the state by the auditor in the manner provided in section
148.21280.02
. No notice of sale required by section
280.01 shall be published or posted in 1974
148.22and in years thereafter, and no auditor's certificate authorized by section
280.03 shall be
148.23issued on the second Monday in May 1974, or thereafter.
148.24
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
148.25 Sec. 46. Minnesota Statutes 2012, section 280.03, is amended to read:
148.26
280.03 CERTIFICATE OF SALE.
148.27The county auditor shall execute to the purchaser of each parcel a certificate which
148.28may be substantially in the following form:
148.29"I, .........., auditor of the county of .........., state of Minnesota, do hereby certify that
148.30at the sale of lands pursuant to the real estate tax judgment entered in the district court
148.31in the county of .........., on the .......... day of .........., ......., in proceedings to enforce the
148.32payment of taxes delinquent on real estate for the years .........., for the county of ..........,
148.33which sale was held at ..............., in said county of ........, on the ........ day of ........, .......,
149.1the following described parcel of land, situate in said county of .........., state of Minnesota:
149.2(insert description), was offered for sale to the bidder who should offer to pay the amount
149.3for which the same was to be sold, at the lowest annual rate of interest on such amount;
149.4and at said sale I did sell the said parcel of land to .......... for the sum of .......... dollars,
149.5with interest at .......... percent per annum on such amount, that being the sum for which the
149.6same was to be sold, and such rate of interest being the lowest rate percent per annum bid
149.7on such sum; and, the sum having been paid, I do therefore, in consideration thereof, and
149.8pursuant to the statute in such case made and provided, convey the said parcel of land, in
149.9fee simple, subject to easements and restrictions of record at the date of the tax judgment
149.10sale, including, but without limitation, permits for telephone, telegraph and electric
149.11power lines either by underground cable or conduit or otherwise, sewer and water lines,
149.12highways, railroads, and pipe lines for gas, liquids, or solids in suspension, to said ..........,
149.13and the heirs and assigns of ......., forever, subject to redemption as provided by law.
149.14Witness my hand and official seal this ........ day of ........, ....... .
149.15
149.16
.....
County Auditor."
149.17If the land shall not be redeemed as provided in chapter 281, such certificate shall
149.18pass to the purchaser an estate therein, in fee simple, without any other act or deed
149.19whatever subject to easements and restrictions of record at the date of the tax judgment
149.20sale, including, but without limitation, permits for telephone, telegraph, and electric
149.21power lines either by underground cable or conduit or otherwise, sewer and water lines,
149.22highways, railroads, and pipe lines for gas, liquids, or solids in suspension. Such certificate
149.23may be recorded, after the time for redemption shall have expired, as other deeds of real
149.24estate, and with like effect. If any purchaser at such sale shall purchase more than one
149.25parcel, the auditor shall issue to the purchaser a certificate for each parcel so purchased.
149.26
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
149.27 Sec. 47. Minnesota Statutes 2012, section 280.07, is amended to read:
149.28
280.07 ENTRIES IN JUDGMENT BOOKS AFTER SALE.
149.29Immediately after such sale the county auditor shall set out in the copy judgment
149.30book
new text begin recordnew text end that all parcels were bid in for the state. The county auditor shall thereupon
149.31deliver such book to
new text begin notifynew text end the court administrator, who shall forthwith enter on the
149.32right-hand page of the real estate tax judgment book, opposite the description of each
149.33parcel sold, the words "bid in for the state," and thereupon redeliver the copy judgment
149.34book to the auditor. Upon redemption the auditor shall make a note thereon in the copy
149.35judgment book, opposite the parcel redeemed.
150.1
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
150.2 Sec. 48. Minnesota Statutes 2012, section 280.11, is amended to read:
150.3
280.11 LANDS BID IN FOR STATE.
150.4At any time after any parcel of land has been bid in for the state, the same not having
150.5been redeemed, the county auditor shall assign and convey the same, and all the right of
150.6the state therein acquired at such sale, to any person who shall pay the amount for which
150.7the same was bid in, with interest at the rate of 12 percent per annum, and the amount of
150.8all subsequent delinquent taxes, penalties, costs, and interest at such rate upon the same
150.9from the time when such taxes became delinquent. The county auditor shall execute to
150.10such person a certificate for such parcel, which may be substantially in the following form:
150.11"I, .........., auditor of the county of .........., state of Minnesota, do hereby certify that
150.12at the sale of lands pursuant to the real estate tax judgment entered in the district court
150.13in the county of .........., on the .......... day of .........., ......., in proceedings to enforce the
150.14payment of taxes delinquent upon real estate for the years .......... for the county of ..........,
150.15which sale was held at .........., in said county of .........., on the .......... day of .........., .......,
150.16the following described parcel of land, situate in said county of .........., state of Minnesota:
150.17(insert description), was duly offered for sale; and, no one bidding upon such offer an
150.18amount equal to that for which the parcel was subject to be sold, the same was then bid in
150.19for the state at such amount, being the sum of .......... dollars; and the same still remaining
150.20unredeemed, and on this day .......... having paid into the treasury of the county the amount
150.21for which the same was so bid in, and all subsequent delinquent taxes, penalties, costs,
150.22and interest, amounting in all to .......... dollars, therefore, in consideration thereof, and
150.23pursuant to the statute in such case made and provided, I do hereby assign and convey this
150.24parcel of land, in fee simple, subject to easements and restrictions of record at the date of
150.25the tax judgment sale, including but without limitation, permits for telephone, telegraph,
150.26 and electric power lines either by underground cable or conduit or otherwise, sewer and
150.27water lines, highways, railroads, and pipe lines for gas, liquids, or solids in suspension,
150.28with all the right, title and interest of the state acquired therein at such sale to .........., and
150.29the heirs and assigns of ........, forever, subject to redemption as provided by law.
150.30Witness my hand and official seal this .......... day of .........., .......
150.31
150.32
.....
County Auditor."
150.33If the land shall not be redeemed, as provided in chapter 281, such certificate shall
150.34pass to the purchaser or assignee an estate therein, in fee simple, without any other act
150.35or deed whatever subject to easements and restrictions of record at the date of the tax
151.1judgment sale, including, but without limitation, permits for telephone, telegraph and
151.2electric power lines either by underground cable or conduit or otherwise, sewer and water
151.3lines, highways, railroads, and pipe lines for gas, liquids, or solids in suspension. Such
151.4certificate or conveyance may be recorded, after the time for redemption shall have
151.5expired, as other deeds of real estate, and with like effect. No assignment of the right of
151.6the state shall be given pursuant to this section after January 1, 1972.
151.7
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
151.8 Sec. 49. Minnesota Statutes 2012, section 281.03, is amended to read:
151.9
281.03 AUDITOR'S CERTIFICATE.
151.10The county auditor shall certify to the amount due on such redemption, and, on
151.11payment of the same to the county treasurer, shall make duplicate receipts for the certified
151.12amount, describing the property redeemed, one of which shall be filed with the auditor.
151.13Such receipts shall be governed by the provisions of this chapter regulating the payment
151.14of current taxes and such payment shall have the effect to annul the sale. If the amount
151.15certified by the auditor and received in payment for redemption be less than that required
151.16by law, it shall not invalidate the redemption. On redemption being made, the auditor shall
151.17enter upon the copy of the tax judgment book, opposite the description of
new text begin recordnew text end the
151.18parcel
new text begin as new text end redeemed, the word, "redeemed."
new text begin .new text end
151.19
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
151.20 Sec. 50. Minnesota Statutes 2013 Supplement, section 281.17, is amended to read:
151.21
281.17 PERIOD FOR REDEMPTION.
151.22Except for properties for which the period of redemption has been limited under
151.23sections
281.173 and
281.174, the following periods for redemption apply.
151.24The period of redemption for all lands sold to the state at a tax judgment sale shall
151.25be three years from the date of sale to the state of Minnesota.
151.26The period of redemption for homesteaded lands as defined in section
273.13,
151.27subdivision 22
, located in a targeted neighborhood as defined in Laws 1987, chapter 386,
151.28article 6, section 4, and sold to the state at a tax judgment sale is three years from the date
151.29of sale. The period of redemption for all lands located in a targeted neighborhood as
151.30defined in Laws 1987, chapter 386, article 6, section 4, except (1) homesteaded lands as
151.31defined in section
273.13, subdivision 22, and (2) for periods of redemption beginning
151.32after June 30, 1991, but before July 1, 1996, lands located in the Loring Park targeted
152.1neighborhood on which a notice of lis pendens has been served, and sold to the state at a
152.2tax judgment sale is one year from the date of sale.
152.3The period of redemption for all real property constituting a mixed municipal solid
152.4waste disposal facility that is a qualified facility under section
115B.39, subdivision 1, is
152.5one year from the date of the sale to the state of Minnesota.
152.6
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
152.7 Sec. 51. Minnesota Statutes 2012, section 281.327, is amended to read:
152.8
281.327 CANCELLATION OF CERTIFICATE UPON JUDICIAL ORDER.
152.9Upon the petition of any person interested in the land covered by a real estate tax
152.10sale certificate, state assignment certificate, or forfeited tax sale certificate and, upon the
152.11giving of such notice to the holder of such certificate as may be ordered, the district court,
152.12in the proceedings resulting in the judgment upon which a real estate tax judgment sale
152.13certificate, state assignment certificate, or forfeited tax sale certificate is based, may order
152.14the cancellation of a real estate tax judgment sale certificate, state assignment certificate,
152.15or forfeited tax sale certificate upon which notice of expiration of time of redemption
152.16has been issued when the certificate or a deed issued thereon has not been recorded in
152.17the office of the county recorder or filed in that of the registrar of titles, if the land is
152.18registered, within seven years after the date of the issuance of such certificate; the county
152.19auditor, on the filing of the order, shall make an entry in the proper copy real estate tax
152.20judgment book, opposite the description of the land, "canceled by order of court"
new text begin record new text end
152.21
new text begin the land as canceled by order of courtnew text end ; and the rights of the holder under the certificate
152.22shall thereupon be terminated of record in the office of the county auditor.
152.23
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
152.24 Sec. 52. Minnesota Statutes 2012, section 282.01, subdivision 6, is amended to read:
152.25 Subd. 6.
Duties of commissioner after sale. When any sale has been made by the
152.26county auditor under sections
282.01 to
282.13, the auditor shall immediately certify to
152.27the commissioner of revenue such information relating to such sale, on such forms as the
152.28commissioner of revenue may prescribe as will enable the commissioner of revenue to
152.29prepare an appropriate deed if the sale is for cash, or keep necessary records if the sale
152.30is on terms; and not later than October 31 of each year the county auditor shall submit
152.31to the commissioner of revenue a statement of all instances wherein any payment of
152.32principal, interest, or current taxes on lands held under certificate, due or to be paid during
152.33the preceding calendar years, are still outstanding at the time such certificate is made.
153.1When such statement shows that a purchaser or the purchaser's assignee is in default, the
153.2commissioner of revenue may instruct the county board of the county in which the land is
153.3located to cancel said certificate of sale in the manner provided by subdivision 5, provided
153.4that upon recommendation of the county board, and where the circumstances are such
153.5that the commissioner of revenue after investigation is satisfied that the purchaser has
153.6made every effort reasonable to make payment of both the annual installment and said
153.7taxes, and that there has been no willful neglect on the part of the purchaser in meeting
153.8these obligations, then the commissioner of revenue may extend the time for the payment
153.9for such period as the commissioner may deem warranted, not to exceed one year. On
153.10payment in full of the purchase price, appropriate conveyance in fee, in such form as may
153.11be prescribed by the attorney general, shall be issued by the commissioner of revenue,
153.12which conveyance must be recorded by the county and shall have the force and effect of
153.13a patent from the state subject to easements and restrictions of record at the date of the
153.14tax judgment sale, including, but without limitation, permits for telephone, telegraph, and
153.15electric power lines either by underground cable or conduit or otherwise, sewer and water
153.16lines, highways, railroads, and pipe lines for gas, liquids, or solids in suspension.
153.17
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
153.18 Sec. 53. Minnesota Statutes 2012, section 282.04, subdivision 4, is amended to read:
153.19 Subd. 4.
Easements. The county auditor, when and for such price and on such
153.20terms and for such period as the county board prescribes, may grant easements or permits
153.21on unsold tax-forfeited land for telephone, telegraph, and electric power lines either by
153.22underground cable or conduit or otherwise, sewer and water lines, highways, recreational
153.23trails, railroads, and pipe lines for gas, liquids, or solids in suspension. Any such easement
153.24or permit may be canceled by resolution of the county board after reasonable notice for
153.25any substantial breach of its terms or if at any time its continuance will conflict with
153.26public use of the land, or any part thereof, on which it is granted. Land affected by any
153.27such easement or permit may be sold or leased for mineral or other legal purpose, but sale
153.28or lease shall be subject to the easement or permit, and all rights granted by the easement
153.29or permit shall be excepted from the conveyance or lease of the land and be reserved,
153.30and may be canceled by the county board in the same manner and for the same reasons
153.31as it could have been canceled before sale and in that case the rights granted thereby
153.32shall vest in the state in trust as the land on which it was granted was held before sale or
153.33lease. Any easement or permit granted before passage of Laws 1951, Chapter 203, may
153.34be governed thereby if the holder thereof and county board so agree. Reasonable notice
153.35as used in this subdivision, means a 90-day written notice addressed to the record owner
154.1of the easement at the last known address, and upon cancellation the county board may
154.2grant extensions of time to vacate the premises affected.
154.3
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
154.4 Sec. 54. Minnesota Statutes 2012, section 282.261, subdivision 2, is amended to read:
154.5 Subd. 2.
Interest rate. The unpaid balance on any repurchase contract approved
154.6by the county board on or after July 1, 1982, is subject to interest at the rate determined
154.7pursuant to section
. Repurchase contracts approved after December 31, 1990, are
154.8subject to interest at the rate determined in section
279.03, subdivision 1a. The interest
154.9rate is subject to change each year on the unpaid balance in the manner provided for rate
154.10changes in section
or
279.03, subdivision 1a, whichever is applicable. Interest on
154.11the unpaid contract balance on repurchases approved before July 1, 1982, is payable at the
154.12rate applicable to the repurchase contract at the time that it was approved.
154.13
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
154.14 Sec. 55. Minnesota Statutes 2012, section 282.261, subdivision 4, is amended to read:
154.15 Subd. 4.
Service fee. The county auditor may collect a service fee to cover
154.16administrative costs as set by the county board for each repurchase application received
154.17after July 1, 1985. The fee must be paid at the time of application and must be credited to
154.18the county general revenue fund.
154.19
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
154.20 Sec. 56. Minnesota Statutes 2012, section 282.261, subdivision 5, is amended to read:
154.21 Subd. 5.
County may impose conditions of repurchase. The county auditor, after
154.22receiving county board approval, may impose conditions on repurchase of tax-forfeited
154.23lands limiting the use of the parcel subject to the repurchase, including, but not limited to,
154.24environmental remediation action plan restrictions or covenants, or easements for lines or
154.25equipment for telephone, telegraph, electric power, or telecommunications.
154.26
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
154.27 Sec. 57. Minnesota Statutes 2012, section 282.322, is amended to read:
154.28
282.322 FORFEITED LANDS LIST.
154.29The county board of any county may at any time after the passage of Laws 1945,
154.30chapter 296, file a list of forfeited lands with the county auditor, if the board is of the
155.1opinion that such lands may be acquired by the state or any municipal subdivision thereof
155.2for public purposes. Upon the filing of such list the county auditor shall withhold said
155.3lands from repurchase. If no proceeding shall be started to acquire such lands by the
155.4state or some municipal subdivision thereof within one year after the filing of such list
155.5the county board shall withdraw said list and thereafter the owner shall have one year in
155.6which to repurchase as otherwise provided in Laws 1945, chapter 296.
155.7
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
155.8 Sec. 58. Minnesota Statutes 2012, section 287.30, is amended to read:
155.9
287.30 COUNTY TREASURER; DUTIES.
155.10The care of documentary stamps entrusted to county treasurers and the duties imposed
155.11upon county treasurers by this chapter are within the duties of such office and are within
155.12the coverage of any official bond delivered to the state, conditioned that any such officer
155.13shall faithfully execute the duties of office. The county board may by resolution require
155.14the county auditor to perform any duty imposed on the county treasurer under this chapter.
155.15
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
155.16 Sec. 59. Minnesota Statutes 2012, section 289A.25, subdivision 1, is amended to read:
155.17 Subdivision 1.
Requirements to pay. An individual, trust, S corporation, or
155.18partnership must, when prescribed in subdivision 3, paragraph (b), make payments of
155.19estimated tax. For individuals, the term "estimated tax" means the amount the taxpayer
155.20estimates is the sum of the taxes imposed by chapter 290 for the taxable year. For trusts,
155.21S corporations, and partnerships, the term estimated tax means the amount the taxpayer
155.22estimates is the sum of the taxes for the taxable year imposed by chapter 290 and the
155.23composite income tax imposed by section
289A.08, subdivision 7. If the individual is an
155.24infant or incompetent person, the payments must be made by the individual's guardian. If
155.25joint payments on estimated tax are made but a joint return is not made for the taxable
155.26year, the estimated tax for that year may be treated as the estimated tax of either the
155.27husband or the wife or may be divided between them.
155.28Notwithstanding the provisions of this section, no payments of estimated tax are
155.29required if the estimated tax, as defined in this subdivision, less the credits allowed against
155.30the tax, is less than $500.
155.31
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
156.1 Sec. 60. Minnesota Statutes 2012, section 290.01, subdivision 5, is amended to read:
156.2 Subd. 5.
Domestic corporation. The term "domestic" when applied to a corporation
156.3means a corporation:
156.4(1) created or organized in the United States, or under the laws of the United
156.5States or of any state, the District of Columbia, or any political subdivision of any of
156.6the foregoing but not including the Commonwealth of Puerto Rico, or any possession
156.7of the United States;
new text begin ornew text end
156.8(2) which qualifies as a DISC, as defined in section 992(a) of the Internal Revenue
156.9Code; or
new text begin .new text end
156.10(3) which qualifies as a FSC, as defined in section 922 of the Internal Revenue Code.
156.11
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxable years beginning after new text end
156.12
new text begin December 31, 2013.new text end
156.13 Sec. 61. Minnesota Statutes 2013 Supplement, section 290.01, subdivision 19d,
156.14is amended to read:
156.15 Subd. 19d.
Corporations; modifications decreasing federal taxable income. For
156.16corporations, there shall be subtracted from federal taxable income after the increases
156.17provided in subdivision 19c:
156.18 (1) the amount of foreign dividend gross-up added to gross income for federal
156.19income tax purposes under section 78 of the Internal Revenue Code;
156.20 (2) the amount of salary expense not allowed for federal income tax purposes due to
156.21claiming the work opportunity credit under section 51 of the Internal Revenue Code;
156.22 (3) any dividend (not including any distribution in liquidation) paid within the
156.23taxable year by a national or state bank to the United States, or to any instrumentality of
156.24the United States exempt from federal income taxes, on the preferred stock of the bank
156.25owned by the United States or the instrumentality;
156.26 (4) amounts disallowed for intangible drilling costs due to differences between
156.27this chapter and the Internal Revenue Code in taxable years beginning before January
156.281, 1987, as follows:
156.29 (i) to the extent the disallowed costs are represented by physical property, an amount
156.30equal to the allowance for depreciation under Minnesota Statutes 1986, section
290.09,
156.31subdivision 7
, subject to the modifications contained in subdivision 19e; and
156.32 (ii) to the extent the disallowed costs are not represented by physical property, an
156.33amount equal to the allowance for cost depletion under Minnesota Statutes 1986, section
156.34
290.09, subdivision 8;
157.1 (5)
new text begin (4)new text end the deduction for capital losses pursuant to sections 1211 and 1212 of the
157.2Internal Revenue Code, except that:
157.3 (i) for capital losses incurred in taxable years beginning after December 31, 1986,
157.4capital loss carrybacks shall not be allowed;
157.5 (ii) for capital losses incurred in taxable years beginning after December 31, 1986,
157.6a capital loss carryover to each of the 15 taxable years succeeding the loss year shall be
157.7allowed;
157.8 (iii) for capital losses incurred in taxable years beginning before January 1, 1987, a
157.9capital loss carryback to each of the three taxable years preceding the loss year, subject to
157.10the provisions of Minnesota Statutes 1986, section
290.16, shall be allowed; and
157.11 (iv) for capital losses incurred in taxable years beginning before January 1, 1987,
157.12a capital loss carryover to each of the five taxable years succeeding the loss year to the
157.13extent such loss was not used in a prior taxable year and subject to the provisions of
157.14Minnesota Statutes 1986, section
290.16, shall be allowed;
157.15 (6)
new text begin (5)new text end an amount for interest and expenses relating to income not taxable for federal
157.16income tax purposes, if (i) the income is taxable under this chapter and (ii) the interest and
157.17expenses were disallowed as deductions under the provisions of section 171(a)(2), 265 or
157.18291 of the Internal Revenue Code in computing federal taxable income;
157.19 (7)
new text begin (6)new text end in the case of mines, oil and gas wells, other natural deposits, and timber for
157.20which percentage depletion was disallowed pursuant to subdivision 19c, clause (8), a
157.21reasonable allowance for depletion based on actual cost. In the case of leases the deduction
157.22must be apportioned between the lessor and lessee in accordance with rules prescribed
157.23by the commissioner. In the case of property held in trust, the allowable deduction must
157.24be apportioned between the income beneficiaries and the trustee in accordance with the
157.25pertinent provisions of the trust, or if there is no provision in the instrument, on the basis
157.26of the trust's income allocable to each;
157.27 (8)
new text begin (7)new text end for certified pollution control facilities placed in service in a taxable year
157.28beginning before December 31, 1986, and for which amortization deductions were elected
157.29under section 169 of the Internal Revenue Code of 1954, as amended through December
157.3031, 1985, an amount equal to the allowance for depreciation under Minnesota Statutes
157.311986, section
290.09, subdivision 7;
157.32 (9)
new text begin (8)new text end amounts included in federal taxable income that are due to refunds of
157.33income, excise, or franchise taxes based on net income or related minimum taxes paid
157.34by the corporation to Minnesota, another state, a political subdivision of another state,
157.35the District of Columbia, or a foreign country or possession of the United States to the
158.1extent that the taxes were added to federal taxable income under subdivision 19c, clause
158.2(1), in a prior taxable year;
158.3 (10)
new text begin (9)new text end income or gains from the business of mining as defined in section
290.05,
158.4subdivision 1
, clause (a), that are not subject to Minnesota franchise tax;
158.5 (11)
new text begin (10)new text end the amount of disability access expenditures in the taxable year which are not
158.6allowed to be deducted or capitalized under section 44(d)(7) of the Internal Revenue Code;
158.7 (12)
new text begin (11)new text end the amount of qualified research expenses not allowed for federal income
158.8tax purposes under section 280C(c) of the Internal Revenue Code, but only to the extent
158.9that the amount exceeds the amount of the credit allowed under section
290.068;
158.10 (13)
new text begin (12)new text end the amount of salary expenses not allowed for federal income tax purposes
158.11due to claiming the Indian employment credit under section 45A(a) of the Internal
158.12Revenue Code;
158.13 (14)
new text begin (13)new text end any decrease in subpart F income, as defined in section 952(a) of the
158.14Internal Revenue Code, for the taxable year when subpart F income is calculated without
158.15regard to the provisions of Division C, title III, section 303(b) of Public Law 110-343;
158.16 (15)
new text begin (14)new text end in each of the five tax years immediately following the tax year in which
158.17an addition is required under subdivision 19c, clause (12), an amount equal to one-fifth
158.18of the delayed depreciation. For purposes of this clause, "delayed depreciation" means
158.19the amount of the addition made by the taxpayer under subdivision 19c, clause (12). The
158.20resulting delayed depreciation cannot be less than zero;
158.21 (16)
new text begin (15)new text end in each of the five tax years immediately following the tax year in which an
158.22addition is required under subdivision 19c, clause (13), an amount equal to one-fifth of the
158.23amount of the addition;
158.24(17)
new text begin (16)new text end to the extent included in federal taxable income, discharge of indebtedness
158.25income resulting from reacquisition of business indebtedness included in federal taxable
158.26income under section 108(i) of the Internal Revenue Code. This subtraction applies only
158.27to the extent that the income was included in net income in a prior year as a result of the
158.28addition under subdivision 19c, clause (16); and
158.29(18)
new text begin (17)new text end the amount of expenses not allowed for federal income tax purposes due
158.30to claiming the railroad track maintenance credit under section 45G(a) of the Internal
158.31Revenue Code.
158.32
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxable years beginning after new text end
158.33
new text begin December 31, 2013.new text end
158.34 Sec. 62. Minnesota Statutes 2012, section 290.01, subdivision 19f, is amended to read:
159.1 Subd. 19f.
Basis modifications affecting gain or loss on disposition of property.
159.2(a) For individuals, estates, and trusts, the basis of property is its adjusted basis for federal
159.3income tax purposes except as set forth in paragraphs
new text begin (e) and new text end (f), (g), and (m). For
159.4corporations, the basis of property is its adjusted basis for federal income tax purposes,
159.5without regard to the time when the property became subject to tax under this chapter or to
159.6whether out-of-state losses or items of tax preference with respect to the property were not
159.7deductible under this chapter, except that the modifications to the basis for federal income
159.8tax purposes set forth in paragraphs (b) to (j)
new text begin (i)new text end are allowed to corporations, and the
159.9resulting modifications to federal taxable income must be made in the year in which gain
159.10or loss on the sale or other disposition of property is recognized.
159.11(b) The basis of property shall not be reduced to reflect federal investment tax credit.
159.12(c) The basis of property subject to the accelerated cost recovery system under
159.13section 168 of the Internal Revenue Code shall be modified to reflect the modifications in
159.14depreciation with respect to the property provided for in subdivision 19e. For certified
159.15pollution control facilities for which amortization deductions were elected under section
159.16169 of the Internal Revenue Code of 1954, the basis of the property must be increased by
159.17the amount of the amortization deduction not previously allowed under this chapter.
159.18(d) For property acquired before January 1, 1933, the basis for computing a gain is
159.19the fair market value of the property as of that date. The basis for determining a loss is
159.20the cost of the property to the taxpayer less any depreciation, amortization, or depletion,
159.21actually sustained before that date. If the adjusted cost exceeds the fair market value of the
159.22property, then the basis is the adjusted cost regardless of whether there is a gain or loss.
159.23(e)
new text begin (d)new text end The basis is reduced by the allowance for amortization of bond premium if
159.24an election to amortize was made pursuant to Minnesota Statutes 1986, section 290.09,
159.25subdivision 13, and the allowance could have been deducted by the taxpayer under this
159.26chapter during the period of the taxpayer's ownership of the property.
159.27(f)
new text begin (e)new text end For assets placed in service before January 1, 1987, corporations, partnerships,
159.28or individuals engaged in the business of mining ores other than iron ore or taconite
159.29concentrates subject to the occupation tax under chapter 298 must use the occupation
159.30tax basis of property used in that business.
159.31(g)
new text begin (f)new text end For assets placed in service before January 1, 1990, corporations, partnerships,
159.32or individuals engaged in the business of mining iron ore or taconite concentrates subject
159.33to the occupation tax under chapter 298 must use the occupation tax basis of property
159.34used in that business.
160.1(h)
new text begin (g)new text end In applying the provisions of sections 301(c)(3)(B), 312(f) and (g), and
160.2316(a)(1) of the Internal Revenue Code, the dates December 31, 1932, and January 1,
160.31933, shall be substituted for February 28, 1913, and March 1, 1913, respectively.
160.4(i)
new text begin (h)new text end In applying the provisions of section 362(a) and (c) of the Internal Revenue
160.5Code, the date December 31, 1956, shall be substituted for June 22, 1954.
160.6(j)
new text begin (i)new text end The basis of property shall be increased by the amount of intangible drilling
160.7costs not previously allowed due to differences between this chapter and the Internal
160.8Revenue Code.
160.9(k)
new text begin (j)new text end The adjusted basis of any corporate partner's interest in a partnership is
160.10the same as the adjusted basis for federal income tax purposes modified as required to
160.11reflect the basis modifications set forth in paragraphs (b) to (j)
new text begin (i)new text end . The adjusted basis
160.12of a partnership in which the partner is an individual, estate, or trust is the same as the
160.13adjusted basis for federal income tax purposes modified as required to reflect the basis
160.14modifications set forth in paragraphs
new text begin (e) and new text end (f) and (g).
160.15(l)
new text begin (k)new text end The modifications contained in paragraphs (b) to (j)
new text begin (i)new text end also apply to the basis
160.16of property that is determined by reference to the basis of the same property in the hands
160.17of a different taxpayer or by reference to the basis of different property.
160.18
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxable years beginning after new text end
160.19
new text begin December 31, 2013.new text end
160.20 Sec. 63. Minnesota Statutes 2012, section 290.01, subdivision 29, is amended to read:
160.21 Subd. 29.
Taxable income. The term "taxable income" means:
160.22(1) for individuals, estates, and trusts, the same as taxable net income;
160.23(2) for corporations, the taxable net income less
160.24(i) the net operating loss deduction under section
290.095;
160.25(ii) the dividends received deduction under section
290.21, subdivision 4;
new text begin andnew text end
160.26(iii) the exemption for operating in a job opportunity building zone under section
160.27469.317
; and
new text begin .new text end
160.28(iv) the exemption for operating in a biotechnology and health sciences industry
160.29zone under section
.
160.30
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxable years beginning after new text end
160.31
new text begin December 31, 2013.new text end
160.32 Sec. 64. Minnesota Statutes 2012, section 290.015, subdivision 1, is amended to read:
161.1 Subdivision 1.
General rule. (a) Except as provided in subdivision 3, a person
161.2that conducts a trade or business that has a place of business in this state, regularly has
161.3employees or independent contractors conducting business activities on its behalf in this
161.4state, or owns or leases real property that is located in this state or tangible personal
161.5property, including but not limited to mobile property, that is present in this state is subject
161.6to the taxes imposed by this chapter.
161.7(b) Except as provided in subdivision 3, a person that conducts a trade or business
161.8not described in paragraph (a) is subject to the taxes imposed by this chapter if the trade
161.9or business obtains or regularly solicits business from within this state, without regard
161.10to physical presence in this state.
161.11(c) For purposes of paragraph (b), business from within this state includes, but is
161.12not limited to:
161.13(1) sales of products or services of any kind or nature to customers in this state who
161.14receive the product or service in this state;
161.15(2) sales of services which are performed from outside this state but the services
161.16are received in this state;
161.17(3) transactions with customers in this state that involve intangible property and
161.18result in receipts attributed to this state as provided in section
290.191, subdivision 5 or 6;
161.19(4) leases of tangible personal property that is located in this state as defined in
161.20section
290.191, subdivision 5, paragraph (g), or 6, paragraph (e); and
161.21(5) sales and leases of real property located in this state.
161.22(d) For purposes of paragraph (b), solicitation includes, but is not limited to:
161.23(1) the distribution, by mail or otherwise, without regard to the state from which such
161.24distribution originated or in which the materials were prepared, of catalogs, periodicals,
161.25advertising flyers, or other written solicitations of business to customers in this state;
161.26(2) display of advertisements on billboards or other outdoor advertising in this state;
161.27(3) advertisements in newspapers published in this state;
161.28(4) advertisements in trade journals or other periodicals, the circulation of which is
161.29primarily within this state;
161.30(5) advertisements in a Minnesota edition of a national or regional publication or a
161.31limited regional edition of which this state is included of a broader regional or national
161.32publication which are not placed in other geographically defined editions of the same issue
161.33of the same publication;
161.34(6) advertisements in regional or national publications in an edition which is not
161.35by its contents geographically targeted to Minnesota, but which is sold over the counter
161.36in Minnesota or by subscription to Minnesota residents;
162.1(7) advertisements broadcast on a radio or television station located in Minnesota; or
162.2(8) any other solicitation by telegraph, telephone, computer database, cable, optic,
162.3microwave, or other communication system.
162.4
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
162.5 Sec. 65. Minnesota Statutes 2012, section 290.07, subdivision 1, is amended to read:
162.6 Subdivision 1.
Annual accounting period. Net income and taxable net income
162.7shall be computed upon the basis of the taxpayer's annual accounting period. If a taxpayer
162.8has no annual accounting period, or has one other than a fiscal year, as heretofore defined,
162.9 the net income and taxable net income shall be computed on the basis of the calendar year.
162.10Taxpayers shall employ the same accounting period on which they report, or would be
162.11required to report, their net income under the Internal Revenue Code. The commissioner
162.12shall provide by rule for the determination of the accounting period for taxpayers who file
162.13a combined report under section
290.17, subdivision 4, when members of the group use
162.14different accounting periods for federal income tax purposes. Unless the taxpayer changes
162.15its accounting period for federal purposes, the due date of the return is not changed.
162.16 A taxpayer may change accounting periods only with the consent of the
162.17commissioner. In case of any such change, the taxpayer shall pay a tax for the period
162.18not included in either the taxpayer's former or newly adopted taxable year, computed as
162.19provided in section
.
162.20
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxable years beginning after new text end
162.21
new text begin December 31, 2013.new text end
162.22 Sec. 66. Minnesota Statutes 2012, section 290.07, subdivision 2, is amended to read:
162.23 Subd. 2.
Accounting methods. Except as specifically provided to the contrary by
162.24this chapter, net income and taxable net income shall be computed in accordance with
162.25the method of accounting regularly employed in keeping the taxpayer's books. If no such
162.26accounting system has been regularly employed, or if that employed does not clearly or
162.27fairly reflect income or the income taxable under this chapter, the computation shall be
162.28made in accordance with such method as in the opinion of the commissioner does clearly
162.29and fairly reflect income and the income taxable under this chapter.
162.30Except as otherwise expressly provided in this chapter, a taxpayer who changes the
162.31method of accounting for regularly computing the taxpayer's income in keeping books
162.32shall, before computing net income and taxable net income under the new method, secure
162.33the consent of the commissioner.
163.1
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxable years beginning after new text end
163.2
new text begin December 31, 2013.new text end
163.3 Sec. 67. Minnesota Statutes 2013 Supplement, section 290.0921, subdivision 3,
163.4is amended to read:
163.5 Subd. 3.
Alternative minimum taxable income. "Alternative minimum taxable
163.6income" is Minnesota net income as defined in section
290.01, subdivision 19, and
163.7includes the adjustments and tax preference items in sections 56, 57, 58, and 59(d), (e),
163.8(f), and (h) of the Internal Revenue Code. If a corporation files a separate company
163.9Minnesota tax return, the minimum tax must be computed on a separate company basis.
163.10If a corporation is part of a tax group filing a unitary return, the minimum tax must be
163.11computed on a unitary basis. The following adjustments must be made.
163.12(1) For purposes of the depreciation adjustments under section 56(a)(1) and
163.1356(g)(4)(A) of the Internal Revenue Code, the basis for depreciable property placed in
163.14service in a taxable year beginning before January 1, 1990, is the adjusted basis for federal
163.15income tax purposes, including any modification made in a taxable year under section
163.16
290.01, subdivision 19e, or Minnesota Statutes 1986, section
290.09, subdivision 7,
163.17paragraph (c).
163.18For taxable years beginning after December 31, 2000, the amount of any remaining
163.19modification made under section
290.01, subdivision 19e, or Minnesota Statutes 1986,
163.20section
290.09, subdivision 7, paragraph (c), not previously deducted is a depreciation
163.21allowance in the first taxable year after December 31, 2000.
163.22(2)
new text begin (1)new text end The portion of the depreciation deduction allowed for federal income tax
163.23purposes under section 168(k) of the Internal Revenue Code that is required as an
163.24addition under section
290.01, subdivision 19c, clause (12), is disallowed in determining
163.25alternative minimum taxable income.
163.26(3)
new text begin (2)new text end The subtraction for depreciation allowed under section
290.01, subdivision
163.2719d
, clause (15)
new text begin (14)new text end , is allowed as a depreciation deduction in determining alternative
163.28minimum taxable income.
163.29(4)
new text begin (3)new text end The alternative tax net operating loss deduction under sections 56(a)(4) and
163.3056(d) of the Internal Revenue Code does not apply.
163.31(5)
new text begin (4)new text end The special rule for certain dividends under section 56(g)(4)(C)(ii) of the
163.32Internal Revenue Code does not apply.
163.33(6)
new text begin (5)new text end The tax preference for depletion under section 57(a)(1) of the Internal
163.34Revenue Code does not apply.
164.1(7) The tax preference for intangible drilling costs under section 57(a)(2) of the
164.2Internal Revenue Code must be calculated without regard to subparagraph (E) and the
164.3subtraction under section
290.01, subdivision 19d, clause (4).
164.4(8)
new text begin (6)new text end The tax preference for tax exempt interest under section 57(a)(5) of the
164.5Internal Revenue Code does not apply.
164.6(9)
new text begin (7)new text end The tax preference for charitable contributions of appreciated property under
164.7section 57(a)(6) of the Internal Revenue Code does not apply.
164.8(10) For purposes of calculating the tax preference for accelerated depreciation or
164.9amortization on certain property placed in service before January 1, 1987, under section
164.1057(a)(7) of the Internal Revenue Code, the deduction allowable for the taxable year is the
164.11deduction allowed under section
290.01, subdivision 19e.
164.12For taxable years beginning after December 31, 2000, the amount of any remaining
164.13modification made under section
290.01, subdivision 19e, not previously deducted is a
164.14depreciation or amortization allowance in the first taxable year after December 31, 2004.
164.15(11)
new text begin (8)new text end For purposes of calculating the adjustment for adjusted current earnings
164.16in section 56(g) of the Internal Revenue Code, the term "alternative minimum taxable
164.17income" as it is used in section 56(g) of the Internal Revenue Code, means alternative
164.18minimum taxable income as defined in this subdivision, determined without regard to the
164.19adjustment for adjusted current earnings in section 56(g) of the Internal Revenue Code.
164.20(12)
new text begin (9)new text end For purposes of determining the amount of adjusted current earnings under
164.21section 56(g)(3) of the Internal Revenue Code, no adjustment shall be made under section
164.2256(g)(4) of the Internal Revenue Code with respect to (i) the amount of foreign dividend
164.23gross-up subtracted as provided in section
290.01, subdivision 19d, clause (1), or (ii) the
164.24amount of refunds of income, excise, or franchise taxes subtracted as provided in section
164.25290.01, subdivision 19d
, clause (9).
164.26(13)
new text begin (10)new text end Alternative minimum taxable income excludes the income from operating
164.27in a job opportunity building zone as provided under section
469.317.
164.28(14) Alternative minimum taxable income excludes the income from operating in a
164.29biotechnology and health sciences industry zone as provided under section
.
164.30Items of tax preference must not be reduced below zero as a result of the
164.31modifications in this subdivision.
164.32
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxable years beginning after new text end
164.33
new text begin December 31, 2013.new text end
164.34 Sec. 68. Minnesota Statutes 2012, section 290.0922, subdivision 3, is amended to read:
165.1 Subd. 3.
Definitions. (a) "Minnesota sales or receipts" means the total sales
165.2apportioned to Minnesota pursuant to section
290.191, subdivision 5, the total receipts
165.3attributed to Minnesota pursuant to section
290.191, subdivisions 6 to 8, and/or the
165.4total sales or receipts apportioned or attributed to Minnesota pursuant to any other
165.5apportionment formula applicable to the taxpayer.
165.6(b) "Minnesota property" means total Minnesota tangible property as provided in
165.7section
290.191, subdivisions 9 to 11, any other tangible property located in Minnesota,
165.8but does not include: (1) the property of a qualified business as defined under section
165.9469.310, subdivision 11
, that is located in a job opportunity building zone designated
165.10under section
469.314 and (2) property of a qualified business located in a biotechnology
165.11and health sciences industry zone designated under section
. Intangible property
165.12shall not be included in Minnesota property for purposes of this section. Taxpayers who
165.13do not utilize tangible property to apportion income shall nevertheless include Minnesota
165.14property for purposes of this section. On a return for a short taxable year, the amount of
165.15Minnesota property owned, as determined under section
290.191, shall be included in
165.16Minnesota property based on a fraction in which the numerator is the number of days in
165.17the short taxable year and the denominator is 365.
165.18(c) "Minnesota payrolls" means total Minnesota payrolls as provided in section
165.19290.191, subdivision 12
, but does not include: (1) the job opportunity building zone payroll
165.20under section
469.310, subdivision 8, of a qualified business as defined under section
165.21469.310, subdivision 11
, and (2) biotechnology and health sciences industry zone payrolls
165.22under section
469.330, subdivision 8. Taxpayers who do not utilize payrolls to apportion
165.23income shall nevertheless include Minnesota payrolls for purposes of this section.
165.24
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxable years beginning after new text end
165.25
new text begin December 31, 2013.new text end
165.26 Sec. 69. Minnesota Statutes 2012, section 290.095, subdivision 3, is amended to read:
165.27 Subd. 3.
Carryover. (a) A net operating loss incurred in a
new text begin during thenew text end taxable year:
165.28(i) beginning after December 31, 1986, shall be a net operating loss carryover to each of
165.29the 15 taxable years following the taxable year of such loss; (ii) beginning before January
165.301, 1987, shall be a net operating loss carryover to each of the five taxable years following
165.31the taxable year of such loss subject to the provisions of Minnesota Statutes 1986, section
165.32; and (iii) beginning before January 1, 1987, shall be a net operating loss carryback
165.33to each of the three taxable years preceding the loss year subject to the provisions of
165.34Minnesota Statutes 1986, section
.
166.1(b) The entire amount of the net operating loss for any taxable year shall be carried to
166.2the earliest of the taxable years to which such loss may be carried. The portion of such loss
166.3which shall be carried to each of the other taxable years shall be the excess, if any, of the
166.4amount of such loss over the sum of the taxable net income, adjusted by the modifications
166.5specified in subdivision 4, for each of the taxable years to which such loss may be carried.
166.6(c) Where a corporation apportions its income under the provisions of section
166.7290.191
, the net operating loss deduction incurred in any taxable year shall be allowed
166.8to the extent of the apportionment ratio of the loss year.
166.9(d) The provisions of sections 381, 382, and 384 of the Internal Revenue Code apply
166.10to carryovers in certain corporate acquisitions and special limitations on net operating loss
166.11carryovers. The limitation amount determined under section 382 shall be applied to net
166.12income, before apportionment, in each post change year to which a loss is carried.
166.13
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxable years beginning after new text end
166.14
new text begin December 31, 2013.new text end
166.15 Sec. 70. Minnesota Statutes 2012, section 290.9728, subdivision 2, is amended to read:
166.16 Subd. 2.
Taxable income. For purposes of this section, taxable income means
166.17the lesser of:
166.18(1) the amount of the net capital gain of the S corporation for the taxable year, as
166.19determined under sections 1222 and 1374 of the Internal Revenue Code, and subject to the
166.20modifications provided in section
290.01, subdivisions 19e and
new text begin subdivisionnew text end 19f, in excess
166.21of $25,000 that is allocable to this state under section
290.17,
290.191, or
290.20; or
166.22(2) the amount of the S corporation's federal taxable income, subject to the
166.23provisions of section
290.01, subdivisions 19c to 19f, that is allocable to this state under
166.24section
290.17,
290.191, or
290.20.
166.25
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxable years beginning after new text end
166.26
new text begin December 31, 2013.new text end
166.27 Sec. 71. Minnesota Statutes 2013 Supplement, section 297A.61, subdivision 3, as
166.28amended by Laws 2014, chapter 150, article 2, section 1, is amended to read:
166.29 Subd. 3.
Sale and purchase. (a) "Sale" and "purchase" include, but are not limited
166.30to, each of the transactions listed in this subdivision. In applying the provisions of this
166.31chapter, the terms "tangible personal property" and "retail sale" include the taxable
166.32services listed in paragraph (g), clause (6), items (i) to (vi) and (viii), and the provision
166.33of these taxable services, unless specifically provided otherwise. Services performed by
167.1an employee for an employer are not taxable. Services performed by a partnership or
167.2association for another partnership or association are not taxable if one of the entities owns
167.3or controls more than 80 percent of the voting power of the equity interest in the other
167.4entity. Services performed between members of an affiliated group of corporations are not
167.5taxable. For purposes of the preceding sentence, "affiliated group of corporations" means
167.6those entities that would be classified as members of an affiliated group as defined under
167.7United States Code, title 26, section 1504, disregarding the exclusions in section 1504(b).
167.8 (b) Sale and purchase include:
167.9 (1) any transfer of title or possession, or both, of tangible personal property, whether
167.10absolutely or conditionally, for a consideration in money or by exchange or barter; and
167.11 (2) the leasing of or the granting of a license to use or consume, for a consideration
167.12in money or by exchange or barter, tangible personal property, other than a manufactured
167.13home used for residential purposes for a continuous period of 30 days or more.
167.14 (c) Sale and purchase include the production, fabrication, printing, or processing of
167.15tangible personal property for a consideration for consumers who furnish either directly or
167.16indirectly the materials used in the production, fabrication, printing, or processing.
167.17 (d) Sale and purchase include the preparing for a consideration of food.
167.18Notwithstanding section
297A.67, subdivision 2, taxable food includes, but is not limited
167.19to, the following:
167.20 (1) prepared food sold by the retailer;
167.21 (2) soft drinks;
167.22 (3) candy;
167.23 (4) dietary supplements; and
167.24 (5) all food sold through vending machines.
167.25 (e) A sale and a purchase includes the furnishing for a consideration of electricity,
167.26gas, water, or steam for use or consumption within this state.
167.27 (f) A sale and a purchase includes the transfer for a consideration of prewritten
167.28computer software whether delivered electronically, by load and leave, or otherwise.
167.29 (g) A sale and a purchase includes the furnishing for a consideration of the following
167.30services:
167.31 (1) the privilege of admission to places of amusement, recreational areas, or athletic
167.32events, and the making available of amusement devices, tanning facilities, reducing
167.33salons, steam baths, Turkish baths, health clubs, and spas or athletic facilities;
167.34 (2) lodging and related services by a hotel, rooming house, resort, campground,
167.35motel, or trailer camp, including furnishing the guest of the facility with access to
167.36telecommunication services, and the granting of any similar license to use real property in
168.1a specific facility, other than the renting or leasing of it for a continuous period of 30 days
168.2or more under an enforceable written agreement that may not be terminated without prior
168.3notice and including accommodations intermediary services provided in connection with
168.4other services provided under this clause;
168.5 (3) nonresidential parking services, whether on a contractual, hourly, or other
168.6periodic basis, except for parking at a meter;
168.7 (4) the granting of membership in a club, association, or other organization if:
168.8 (i) the club, association, or other organization makes available for the use of its
168.9members sports and athletic facilities, without regard to whether a separate charge is
168.10assessed for use of the facilities; and
168.11 (ii) use of the sports and athletic facility is not made available to the general public
168.12on the same basis as it is made available to members.
168.13Granting of membership means both onetime initiation fees and periodic membership
168.14dues. Sports and athletic facilities include golf courses; tennis, racquetball, handball, and
168.15squash courts; basketball and volleyball facilities; running tracks; exercise equipment;
168.16swimming pools; and other similar athletic or sports facilities;
168.17 (5) delivery of aggregate materials by a third party, excluding delivery of aggregate
168.18material used in road construction; and delivery of concrete block by a third party if the
168.19delivery would be subject to the sales tax if provided by the seller of the concrete block.
168.20For purposes of this clause, "road construction" means construction of:
168.21 (i) public roads;
168.22 (ii) cartways; and
168.23 (iii) private roads in townships located outside of the seven-county metropolitan area
168.24up to the point of the emergency response location sign; and
168.25 (6) services as provided in this clause:
168.26 (i) laundry and dry cleaning services including cleaning, pressing, repairing, altering,
168.27and storing clothes, linen services and supply, cleaning and blocking hats, and carpet,
168.28drapery, upholstery, and industrial cleaning. Laundry and dry cleaning services do not
168.29include services provided by coin operated facilities operated by the customer;
168.30 (ii) motor vehicle washing, waxing, and cleaning services, including services
168.31provided by coin operated facilities operated by the customer, and rustproofing,
168.32undercoating, and towing of motor vehicles;
168.33 (iii) building and residential cleaning, maintenance, and disinfecting services and
168.34pest control and exterminating services;
168.35 (iv) detective, security, burglar, fire alarm, and armored car services; but not
168.36including services performed within the jurisdiction they serve by off-duty licensed peace
169.1officers as defined in section
626.84, subdivision 1, or services provided by a nonprofit
169.2organization or any organization at the direction of a county for monitoring and electronic
169.3surveillance of persons placed on in-home detention pursuant to court order or under the
169.4direction of the Minnesota Department of Corrections;
169.5 (v) pet grooming services;
169.6 (vi) lawn care, fertilizing, mowing, spraying and sprigging services; garden planting
169.7and maintenance; tree, bush, and shrub pruning, bracing, spraying, and surgery; indoor
169.8plant care; tree, bush, shrub, and stump removal, except when performed as part of a land
169.9clearing contract as defined in section
297A.68, subdivision 40; and tree trimming for
169.10public utility lines. Services performed under a construction contract for the installation of
169.11shrubbery, plants, sod, trees, bushes, and similar items are not taxable;
169.12 (vii) massages, except when provided by a licensed health care facility or
169.13professional or upon written referral from a licensed health care facility or professional for
169.14treatment of illness, injury, or disease; and
169.15 (viii) the furnishing of lodging, board, and care services for animals in kennels and
169.16other similar arrangements, but excluding veterinary and horse boarding services.
169.17 (h) A sale and a purchase includes the furnishing for a consideration of tangible
169.18personal property or taxable services by the United States or any of its agencies or
169.19instrumentalities, or the state of Minnesota, its agencies, instrumentalities, or political
169.20subdivisions.
169.21 (i) A sale and a purchase includes the furnishing for a consideration of
169.22telecommunications services, ancillary services associated with telecommunication
169.23services, and pay television services. Telecommunication services include, but are
169.24not limited to, the following services, as defined in section
297A.669: air-to-ground
169.25radiotelephone service, mobile telecommunication service, postpaid calling service,
169.26prepaid calling service, prepaid wireless calling service, and private communication
169.27services. The services in this paragraph are taxed to the extent allowed under federal law.
169.28 (j) A sale and a purchase includes the furnishing for a consideration of installation if
169.29the installation charges would be subject to the sales tax if the installation were provided
169.30by the seller of the item being installed.
169.31 (k) A sale and a purchase includes the rental of a vehicle by a motor vehicle dealer
169.32to a customer when (1) the vehicle is rented by the customer for a consideration, or (2)
169.33the motor vehicle dealer is reimbursed pursuant to a service contract as defined in section
169.3459B.02, subdivision
11.
169.35 (l) A sale and a purchase includes furnishing for a consideration of specified digital
169.36products or other digital products or granting the right for a consideration to use specified
170.1digital products or other digital products on a temporary or permanent basis and regardless
170.2of whether the purchaser is required to make continued payments for such right. Wherever
170.3the term "tangible personal property" is used in this chapter, other than in subdivisions 10
170.4and 38, the provisions also apply to specified digital products, or other digital products,
170.5unless specifically provided otherwise or the context indicates otherwise.
170.6
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
170.7 Sec. 72. Minnesota Statutes 2012, section 297A.70, subdivision 10, is amended to read:
170.8 Subd. 10.
Nonprofit tickets or admissions. (a) Tickets or admissions to an event
170.9are exempt if all the gross receipts are recorded as such, in accordance with generally
170.10accepted accounting principles, on the books of one or more organizations whose primary
170.11mission is to provide an opportunity for citizens of the state to participate in the creation,
170.12performance, or appreciation of the arts, and provided that each organization is:
170.13(1) an organization described in section 501(c)(3) of the Internal Revenue Code
170.14in which voluntary contributions make up at least the following
new text begin fivenew text end percent of the
170.15organization's annual revenue in its most recently completed 12-month fiscal year, or in
170.16the current year if the organization has not completed a 12-month fiscal year:
new text begin ;new text end
170.17(i) for sales made after July 31, 2001, and before July 1, 2002, for the organization's
170.18fiscal year completed in calendar year 2000, three percent;
170.19(ii) for sales made on or after July 1, 2002, and on or before June 30, 2003, for the
170.20organization's fiscal year completed in calendar year 2001, three percent;
170.21(iii) for sales made on or after July 1, 2003, and on or before June 30, 2004, for the
170.22organization's fiscal year completed in calendar year 2002, four percent; and
170.23(iv) for sales made in each 12-month period, beginning on July 1, 2004, and each
170.24subsequent year, for the organization's fiscal year completed in the preceding calendar
170.25year, five percent;
170.26(2) a municipal board that promotes cultural and arts activities; or
170.27(3) the University of Minnesota, a state college and university, or a private nonprofit
170.28college or university provided that the event is held at a facility owned by the educational
170.29institution holding the event.
170.30The exemption only applies if the entire proceeds, after reasonable expenses, are used
170.31solely to provide opportunities for citizens of the state to participate in the creation,
170.32performance, or appreciation of the arts.
170.33(b) Tickets or admissions to the premises of the Minnesota Zoological Garden are
170.34exempt, provided that the exemption under this paragraph does not apply to tickets or
170.35admissions to performances or events held on the premises unless the performance or
171.1event is sponsored and conducted exclusively by the Minnesota Zoological Board or
171.2employees of the Minnesota Zoological Garden.
171.3
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
171.4 Sec. 73. Minnesota Statutes 2013 Supplement, section 297A.75, subdivision 1, is
171.5amended to read:
171.6 Subdivision 1.
Tax collected. The tax on the gross receipts from the sale of the
171.7following exempt items must be imposed and collected as if the sale were taxable and the
171.8rate under section
297A.62, subdivision 1, applied. The exempt items include:
171.9 (1) building materials for an agricultural processing facility exempt under section
171.10297A.71, subdivision 13
;
171.11 (2) building materials for mineral production facilities exempt under section
171.12297A.71, subdivision 14
;
171.13 (3) building materials for correctional facilities under section
297A.71, subdivision 3;
171.14 (4) building materials used in a residence for disabled veterans exempt under section
171.15297A.71, subdivision 11
;
171.16 (5) elevators and building materials exempt under section
297A.71, subdivision 12;
171.17 (6) building materials for the Long Lake Conservation Center exempt under section
171.18
297A.71, subdivision 17;
171.19 (7)
new text begin (6)new text end materials and supplies for qualified low-income housing under section
171.20297A.71, subdivision 23
;
171.21 (8)
new text begin (7)new text end materials, supplies, and equipment for municipal electric utility facilities
171.22under section
297A.71, subdivision 35;
171.23 (9)
new text begin (8)new text end equipment and materials used for the generation, transmission, and
171.24distribution of electrical energy and an aerial camera package exempt under section
171.25297A.68
, subdivision 37;
171.26 (10)
new text begin (9)new text end commuter rail vehicle and repair parts under section
297A.70, subdivision
171.273, paragraph (a), clause (10);
171.28 (11)
new text begin (10)new text end materials, supplies, and equipment for construction or improvement of
171.29projects and facilities under section
297A.71, subdivision 40;
171.30(12) materials, supplies, and equipment for construction or improvement of a meat
171.31processing facility exempt under section
297A.71, subdivision 41;
171.32(13)
new text begin (11)new text end materials, supplies, and equipment for construction, improvement, or
171.33expansion of:
171.34(i) an aerospace defense manufacturing facility exempt under section
297A.71,
171.35subdivision 42
;
172.1(ii) a biopharmaceutical manufacturing facility exempt under section
297A.71,
172.2subdivision 45
;
172.3(iii) a research and development facility exempt under section
297A.71, subdivision
172.446
; and
172.5(iv) an industrial measurement manufacturing and controls facility exempt under
172.6section
297A.71, subdivision 47;
172.7(14)
new text begin (12)new text end enterprise information technology equipment and computer software for
172.8use in a qualified data center exempt under section
297A.68, subdivision 42;
172.9(15)
new text begin (13)new text end materials, supplies, and equipment for qualifying capital projects under
172.10section
297A.71, subdivision 44;
172.11(16)
new text begin (14)new text end items purchased for use in providing critical access dental services exempt
172.12under section
297A.70, subdivision 7, paragraph (c); and
172.13(17)
new text begin (15)new text end items and services purchased under a business subsidy agreement for use or
172.14consumption primarily in greater Minnesota exempt under section
297A.68, subdivision 44.
172.15
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
172.16 Sec. 74. Minnesota Statutes 2013 Supplement, section 297A.75, subdivision 2, is
172.17amended to read:
172.18 Subd. 2.
Refund; eligible persons. Upon application on forms prescribed by the
172.19commissioner, a refund equal to the tax paid on the gross receipts of the exempt items
172.20must be paid to the applicant. Only the following persons may apply for the refund:
172.21 (1) for subdivision 1, clauses (1), (2), and (16)
new text begin (14)new text end , the applicant must be the
172.22purchaser;
172.23 (2) for subdivision 1, clauses
new text begin clausenew text end (3) and (6), the applicant must be the
172.24governmental subdivision;
172.25 (3) for subdivision 1, clause (4), the applicant must be the recipient of the benefits
172.26provided in United States Code, title 38, chapter 21;
172.27 (4) for subdivision 1, clause (5), the applicant must be the owner of the homestead
172.28property;
172.29 (5) for subdivision 1, clause (7)
new text begin (6)new text end , the owner of the qualified low-income housing
172.30project;
172.31 (6) for subdivision 1, clause (8)
new text begin (7)new text end , the applicant must be a municipal electric utility
172.32or a joint venture of municipal electric utilities;
172.33 (7) for subdivision 1, clauses (9), (12), (13), (14)
new text begin (8), (11), (12)new text end , and (17)
new text begin (15)new text end ,
172.34the owner of the qualifying business; and
173.1 (8) for subdivision 1, clauses
new text begin (9), new text end (10), (11), and (15)
new text begin (13)new text end , the applicant must be the
173.2governmental entity that owns or contracts for the project or facility.
173.3
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
173.4 Sec. 75. Minnesota Statutes 2013 Supplement, section 297A.75, subdivision 3, is
173.5amended to read:
173.6 Subd. 3.
Application. (a) The application must include sufficient information
173.7to permit the commissioner to verify the tax paid. If the tax was paid by a contractor,
173.8subcontractor, or builder, under subdivision 1, clauses (3) to (15)
new text begin (13)new text end , or (17)
new text begin (15)new text end , the
173.9contractor, subcontractor, or builder must furnish to the refund applicant a statement
173.10including the cost of the exempt items and the taxes paid on the items unless otherwise
173.11specifically provided by this subdivision. The provisions of sections
289A.40 and
173.12289A.50
apply to refunds under this section.
173.13 (b) An applicant may not file more than two applications per calendar year for
173.14refunds for taxes paid on capital equipment exempt under section
297A.68, subdivision 5.
173.15 (c) Total refunds for purchases of items in section
297A.71, subdivision 40, must not
173.16exceed $5,000,000 in fiscal years 2010 and 2011. Applications for refunds for purchases
173.17of items in sections
297A.70, subdivision 3, paragraph (a), clause (11), and
,
173.18subdivision 40, must not be filed until after June 30, 2009.
173.19
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
173.20 Sec. 76. Minnesota Statutes 2012, section 297A.94, is amended to read:
173.21
297A.94 DEPOSIT OF REVENUES.
173.22(a) Except as provided in this section, the commissioner shall deposit the revenues,
173.23including interest and penalties, derived from the taxes imposed by this chapter in the state
173.24treasury and credit them to the general fund.
173.25(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic
173.26account in the special revenue fund if:
173.27(1) the taxes are derived from sales and use of property and services purchased for
173.28the construction and operation of an agricultural resource project; and
173.29(2) the purchase was made on or after the date on which a conditional commitment
173.30was made for a loan guaranty for the project under section
41A.04, subdivision 3.
173.31The commissioner of management and budget shall certify to the commissioner the date
173.32on which the project received the conditional commitment. The amount deposited in
173.33the loan guaranty account must be reduced by any refunds and by the costs incurred by
174.1the Department of Revenue to administer and enforce the assessment and collection of
174.2the taxes.
174.3(c) The commissioner shall deposit the revenues, including interest and penalties,
174.4derived from the taxes imposed on sales and purchases included in section
297A.61,
174.5subdivision 3
, paragraph (g), clauses (1) and (4), in the state treasury, and credit them
174.6as follows:
174.7(1) first to the general obligation special tax bond debt service account in each fiscal
174.8year the amount required by section
16A.661, subdivision 3, paragraph (b); and
174.9(2) after the requirements of clause (1) have been met, the balance to the general fund.
174.10(d) The commissioner shall deposit the revenues, including interest and penalties,
174.11collected under section
297A.64, subdivision 5, in the state treasury and credit them to the
174.12general fund. By July 15 of each year the commissioner shall transfer to the highway user
174.13tax distribution fund an amount equal to the excess fees collected under section
297A.64,
174.14subdivision 5
, for the previous calendar year.
174.15(e) For fiscal year 2001, 97 percent; for fiscal years 2002 and 2003, 87 percent; and
174.16For fiscal year 2004 and thereafter,
72.43 percent of the revenues, including interest and
174.17penalties, transmitted to the commissioner under section
297A.65, must be deposited by
174.18the commissioner in the state treasury as follows:
174.19(1) 50 percent of the receipts must be deposited in the heritage enhancement account
174.20in the game and fish fund, and may be spent only on activities that improve, enhance, or
174.21protect fish and wildlife resources, including conservation, restoration, and enhancement
174.22of land, water, and other natural resources of the state;
174.23(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and
174.24may be spent only for state parks and trails;
174.25(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and
174.26may be spent only on metropolitan park and trail grants;
174.27(4) three percent of the receipts must be deposited in the natural resources fund, and
174.28may be spent only on local trail grants; and
174.29(5) two percent of the receipts must be deposited in the natural resources fund,
174.30and may be spent only for the Minnesota Zoological Garden, the Como Park Zoo and
174.31Conservatory, and the Duluth Zoo.
174.32(f) The revenue dedicated under paragraph (e) may not be used as a substitute
174.33for traditional sources of funding for the purposes specified, but the dedicated revenue
174.34shall supplement traditional sources of funding for those purposes. Land acquired with
174.35money deposited in the game and fish fund under paragraph (e) must be open to public
174.36hunting and fishing during the open season, except that in aquatic management areas or
175.1on lands where angling easements have been acquired, fishing may be prohibited during
175.2certain times of the year and hunting may be prohibited. At least 87 percent of the money
175.3deposited in the game and fish fund for improvement, enhancement, or protection of fish
175.4and wildlife resources under paragraph (e) must be allocated for field operations.
175.5(g) The revenues deposited under paragraphs (a) to (f) do not include the revenues,
175.6including interest and penalties, generated by the sales tax imposed under section
175.7297A.62, subdivision 1a
, which must be deposited as provided under the Minnesota
175.8Constitution, article XI, section 15.
175.9
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
175.10 Sec. 77. Minnesota Statutes 2012, section 297B.09, is amended to read:
175.11
297B.09 ALLOCATION OF REVENUE.
175.12 Subdivision 1.
Deposit of revenues. (a) Money collected and received under this
175.13chapter must be deposited as provided in this subdivision.
175.14 (b) From July 1, 2007, through June 30, 2008, 38.25 percent of the money collected
175.15and received must be deposited in the highway user tax distribution fund, 24 percent must
175.16be deposited in the metropolitan area transit account under section
, and 1.5 percent
175.17must be deposited in the greater Minnesota transit account under section
. The
175.18remaining money must be deposited in the general fund.
175.19 (c) From July 1, 2008, through June 30, 2009, 44.25 percent of the money collected
175.20and received must be deposited in the highway user tax distribution fund, 27.75 percent
175.21must be deposited in the metropolitan area transit account under section
, 1.75
175.22percent must be deposited in the greater Minnesota transit account under section
,
175.23and the remaining money must be deposited in the general fund.
175.24(d) From July 1, 2009, through June 30, 2010, 47.5 percent of the money collected
175.25and received must be deposited in the highway user tax distribution fund, 30 percent
175.26must be deposited in the metropolitan area transit account under section
, 3.5
175.27percent must be deposited in the greater Minnesota transit account under section
,
175.28and 16.25 percent must be deposited in the general fund. The remaining amount must
175.29be deposited as follows:
175.30(1) 1.5 percent in the metropolitan area transit account, except that any amount in
175.31excess of $6,000,000 must be deposited in the highway user tax distribution fund; and
175.32(2) 1.25 percent in the greater Minnesota transit account, except that any amount in
175.33excess of $5,000,000 must be deposited in the highway user tax distribution fund.
176.1(e) From July 1, 2010, through June 30, 2011, 54.5 percent of the money collected
176.2and received must be deposited in the highway user tax distribution fund, 33.75 percent
176.3must be deposited in the metropolitan area transit account under section
,
3.75
176.4percent must be deposited in the greater Minnesota transit account under section
,
176.5and 6.25 percent must be deposited in the general fund. The remaining amount must
176.6be deposited as follows:
176.7(1) 1.5 percent in the metropolitan area transit account, except that any amount in
176.8excess of $6,750,000 must be deposited in the highway user tax distribution fund; and
176.9(2) 0.25 percent in the greater Minnesota transit account, except that any amount in
176.10excess of $1,250,000 must be deposited in the highway user tax distribution fund.
176.11 (f) On and after July 1, 2011,
new text begin (b) new text end 60 percent of the money collected and received
176.12must be deposited in the highway user tax distribution fund, 36 percent must be deposited
176.13in the metropolitan area transit account under section
16A.88, and four percent must be
176.14deposited in the greater Minnesota transit account under section
16A.88.
176.15(g)
new text begin (c)new text end It is the intent of the legislature that the allocations under paragraph (f)
new text begin (b)new text end
176.16 remain unchanged for fiscal year 2012 and all subsequent fiscal years.
176.17
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
176.18 Sec. 78. Minnesota Statutes 2012, section 297F.03, subdivision 2, is amended to read:
176.19 Subd. 2.
Form of application. Every application for a cigarette or tobacco products
176.20license shall be made on a form prescribed by the commissioner and shall state the name
176.21and address of the applicant; if the applicant is a firm, partnership, or association, the name
176.22and address of each of its members; if the applicant is a corporation, the name and address
176.23of each of its officers; the address of its principal place of business; the place where the
176.24business to be licensed is to be conducted; and any other information the commissioner
176.25may require for the administration of this chapter.
176.26
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
176.27 Sec. 79. Minnesota Statutes 2012, section 297H.06, subdivision 2, is amended to read:
176.28 Subd. 2.
Materials. The tax is not imposed upon charges to generators of mixed
176.29municipal solid waste or upon the volume of nonmixed municipal solid waste for waste
176.30management services to manage the following materials:
176.31(1) mixed municipal solid waste and nonmixed municipal solid waste generated
176.32outside of Minnesota;
177.1(2) recyclable materials that are separated for recycling by the generator, collected
177.2separately from other waste, and recycled, to the extent the price of the service for
177.3handling recyclable material is separately itemized;
177.4(3) recyclable nonmixed municipal solid waste that is separated for recycling by
177.5the generator, collected separately from other waste, delivered to a waste facility for the
177.6purpose of recycling, and recycled;
177.7(4) industrial waste, when it is transported to a facility owned and operated by
177.8the same person that generated it;
177.9(5) mixed municipal solid waste from a recycling facility that separates or processes
177.10recyclable materials and reduces the volume of the waste by at least 85 percent, provided
177.11that the exempted waste is managed separately from other waste;
177.12(6) recyclable materials that are separated from mixed municipal solid waste by the
177.13generator, collected and delivered to a waste facility that recycles at least 85 percent of its
177.14waste, and are collected with mixed municipal solid waste that is segregated in leakproof
177.15bags, provided that the mixed municipal solid waste does not exceed five percent of the
177.16total weight of the materials delivered to the facility and is ultimately delivered to a waste
177.17facility identified as a preferred waste management facility in county solid waste plans
177.18under section
115A.46;
177.19(7) source-separated compostable waste, if the waste is delivered to a facility
177.20exempted as described in this clause. To initially qualify for an exemption, a facility must
177.21apply for an exemption in its application for a new or amended solid waste permit to the
177.22Pollution Control Agency. The first time a facility applies to the agency it must certify in
177.23its application that it will comply with the criteria in items (i) to (v) and the commissioner
177.24of the agency shall so certify to the commissioner of revenue who must grant the
177.25exemption. For each subsequent calendar year, by October 1 of the preceding year, The
177.26facility must
new text begin annually new text end apply to the agency for certification to renew its exemption for the
177.27following year. The application must be filed according to the procedures of, and contain
177.28the information required by, the agency. The commissioner of revenue shall grant the
177.29exemption if the commissioner of the Pollution Control Agency finds and certifies to the
177.30commissioner of revenue that based on an evaluation of the composition of incoming
177.31waste and residuals and the quality and use of the product:
177.32(i) generators separate materials at the source;
177.33(ii) the separation is performed in a manner appropriate to the technology specific
177.34to the facility that:
177.35(A) maximizes the quality of the product;
177.36(B) minimizes the toxicity and quantity of residuals; and
178.1(C) provides an opportunity for significant improvement in the environmental
178.2efficiency of the operation;
178.3(iii) the operator of the facility educates generators, in coordination with each county
178.4using the facility, about separating the waste to maximize the quality of the waste stream
178.5for technology specific to the facility;
178.6(iv) process residuals do not exceed 15 percent of the weight of the total material
178.7delivered to the facility; and
178.8(v) the final product is accepted for use;
178.9(8) waste and waste by-products for which the tax has been paid; and
178.10(9) daily cover for landfills that has been approved in writing by the Minnesota
178.11Pollution Control Agency.
178.12 Sec. 80. Minnesota Statutes 2012, section 297I.05, subdivision 14, is amended to read:
178.13 Subd. 14.
Life insurance. A tax is imposed on life insurance. The rate of tax equals
178.14a percentage
new text begin 1.5 percentnew text end of gross premiums less return premiums on all direct business
178.15received by the insurer or agents of the insurer in Minnesota for life insurance, in cash or
178.16otherwise, during the year. For premiums received after December 31, 2005, but before
178.17January 1, 2007, the rate of tax is 1.875 percent. For premiums received after December
178.1831, 2006, but before January 1, 2008, the rate of tax is 1.75 percent. For premiums
178.19received after December 31, 2007, but before January 1, 2009, the rate of tax is 1.625
178.20percent. For premiums received after December 31, 2008, the rate of tax is 1.5 percent.
178.21
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
178.22 Sec. 81. Minnesota Statutes 2012, section 298.75, subdivision 1, is amended to read:
178.23 Subdivision 1.
Definitions. Except as may otherwise be provided, the following
178.24words, when used in this section, shall have the meanings herein ascribed to them.
178.25 (a) "Aggregate material" means:
178.26 (1) nonmetallic natural mineral aggregate including, but not limited to sand, silica
178.27sand, gravel, crushed rock, limestone, granite, and borrow, but only if the borrow is
178.28transported on a public road, street, or highway, provided that nonmetallic aggregate
178.29material does not include dimension stone and dimension granite; and
178.30 (2) taconite tailings, crushed rock, and architectural or dimension stone and dimension
178.31granite removed from a taconite mine or the site of a previously operated taconite mine.
178.32 Aggregate material must be measured or weighed after it has been extracted from
178.33the pit, quarry, or deposit.
179.1 (b) "Person" means any individual, firm, partnership, corporation, organization,
179.2trustee, association, or other entity.
179.3 (c) "Operator" means any person engaged in the business of removing aggregate
179.4material from the surface or subsurface of the soil, for the purpose of sale, either directly
179.5or indirectly, through the use of the aggregate material in a marketable product or service.
179.6 (d) "Extraction site" means a pit, quarry, or deposit containing aggregate material
179.7and any contiguous property to the pit, quarry, or deposit which is used by the operator for
179.8stockpiling the aggregate material.
179.9 (e) "Importer" means any person who buys aggregate material excavated from a
179.10county not listed in paragraph (f) or another state
new text begin site on which the tax under this section is new text end
179.11
new text begin not imposednew text end and causes the aggregate material to be imported into a county in this state
179.12which imposes a tax on aggregate material.
179.13 (f) "County" means the counties of Pope, Stearns, Benton, Sherburne, Carver, Scott,
179.14Dakota, Le Sueur, Kittson, Marshall, Pennington, Red Lake, Polk, Norman, Mahnomen,
179.15Clay, Becker, Carlton, St. Louis, Rock, Murray, Wilkin, Big Stone, Sibley, Hennepin,
179.16Washington, Chisago, and Ramsey. County also means
new text begin a county imposing the tax under new text end
179.17
new text begin this section on December 31, 2014, ornew text end any other county whose board has voted after a
179.18public hearing to impose the tax under this section and has notified the commissioner of
179.19revenue of the imposition of the tax.
179.20 (g) "Borrow" means granular borrow, consisting of durable particles of gravel and
179.21sand, crushed quarry or mine rock, crushed gravel or stone, or any combination thereof,
179.22the ratio of the portion passing the (#200) sieve divided by the portion passing the (1 inch)
179.23sieve may not exceed 20 percent by mass.
179.24
new text begin EFFECTIVE DATE.new text end new text begin This section is effective January 1, 2015.new text end
179.25 Sec. 82. Minnesota Statutes 2012, section 412.131, is amended to read:
179.26
412.131 ASSESSOR; DUTIES, COMPENSATION.
179.27The city assessor, if there is one, shall assess and return as provided by law all
179.28property taxable within the city, if a separate assessment district, and the assessor of the
179.29town within which the city lies shall not include in the return any property taxable in the
179.30city. Any assessor may appoint a deputy assessor as provided in section
273.06. The
179.31assessor may be compensated on a full-time or part-time basis at the option of the council
179.32but the compensation shall be not less than $100 in any one year, if fixed on an annual
179.33basis, or not more than $20 per day, if fixed on a per diem basis. If the compensation is
179.34not fixed by the council the assessor shall be entitled to compensation at the rate of $20
180.1per day for each days service necessarily rendered, and mileage at the rate paid other city
180.2officers for each mile necessarily traveled in going to and returning from the county seat of
180.3the county to attend any meeting of the assessors of the county legally called by the county
180.4auditor, and also for each mile necessarily traveled in making the return of assessment
180.5to the proper county officer and in attending sectional meetings called by the county
180.6assessor, except when mileage is paid by the county. In addition to other compensation,
180.7the council may allow the assessor mileage at the same rate per mile as paid other city
180.8officers for each mile necessarily traveled in assessment work.
180.9
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
180.10 Sec. 83. Minnesota Statutes 2013 Supplement, section 423A.022, subdivision 3,
180.11is amended to read:
180.12 Subd. 3.
Reporting; definitions. (a) On or before September 1, annually, the
180.13executive director of the Public Employees Retirement Association shall report to the
180.14commissioner of revenue the following:
180.15 (1) the municipalities which employ firefighters with retirement coverage by the
180.16public employees police and fire retirement plan;
180.17 (2) the number of firefighters with public employees police and fire retirement plan
180.18coverage employed by each municipality;
180.19 (3)
new text begin (2)new text end the fire departments covered by the voluntary statewide lump-sum volunteer
180.20firefighter retirement plan; and
180.21 (4)
new text begin (3)new text end any other information requested by the commissioner to administer the police
180.22and firefighter retirement supplemental state aid program.
180.23 (b) For this subdivision, (i) the number of firefighters employed by a municipality
180.24who have public employees police and fire retirement plan coverage means the number
180.25of firefighters with public employees police and fire retirement plan coverage that were
180.26employed by the municipality for not less than 30 hours per week for a minimum of six
180.27months prior to December 31 preceding the date of the payment under this section and, if
180.28the person was employed for less than the full year, prorated to the number of full months
180.29employed; and (ii) the number of active police officers certified for police state aid receipt
180.30under section
69.011, subdivisions 2 and 2b, means, for each municipality, the number of
180.31police officers meeting the definition of peace officer in section
69.011, subdivision 1,
180.32counted as provided and limited by section
69.011, subdivisions 2 and 2b.
180.33
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
181.1 Sec. 84. Minnesota Statutes 2013 Supplement, section 465.04, is amended to read:
181.2
465.04 ACCEPTANCE OF GIFTS.
181.3 Cities
new text begin A citynew text end of the second, third, or fourth class, having at any time an estimated
181.4market value of not more than $41,000,000, as officially equalized by the commissioner
181.5of revenue, either
new text begin operating new text end under
new text begin a new text end home rule charter or under the laws of this state, in
181.6addition to all other powers possessed by them, hereby are authorized and empowered to
181.7
new text begin maynew text end receive and accept gifts and donations for the use and benefit of such cities and the
181.8
new text begin city and its new text end inhabitants thereof upon terms and conditions to be approved by the governing
181.9bodies
new text begin bodynew text end of such cities; and such cities are authorized to comply with and perform such
181.10
new text begin the city. Thenew text end terms and conditions, which may include payment to the donor or donors of
181.11interest on the value of the gift at not exceeding five percent per annum payable annually or
181.12semiannually, during the remainder of the natural life or lives of such
new text begin thenew text end donor or donors.
181.13 Sec. 85. Minnesota Statutes 2012, section 469.176, subdivision 1b, is amended to read:
181.14 Subd. 1b.
Duration limits; terms. (a) No tax increment shall in any event be
181.15paid to the authority:
181.16(1) after 15 years after receipt by the authority of the first increment for a renewal
181.17and renovation district;
181.18(2) after 20 years after receipt by the authority of the first increment for a soils
181.19condition district;
181.20(3) after eight years after receipt by the authority of the first increment for an
181.21economic development district;
181.22(4) for a housing district, a compact development district, or a redevelopment
181.23district, after 25 years from the date of receipt by the authority of the first increment.
181.24(b) For purposes of determining a duration limit under this subdivision or subdivision
181.251e that is based on the receipt of an increment, any increments from taxes payable in the year
181.26in which the district terminates shall be paid to the authority. This paragraph does not affect
181.27a duration limit calculated from the date of approval of the tax increment financing plan or
181.28based on the recovery of costs or to a duration limit under subdivision 1c. This paragraph
181.29does not supersede the restrictions on payment of delinquent taxes in subdivision 1f.
181.30(c) An action by the authority to waive or decline to accept an increment has no
181.31effect for purposes of computing a duration limit based on the receipt of increment under
181.32this subdivision or any other provision of law. The authority is deemed to have received an
181.33increment for any year in which it waived or declined to accept an increment, regardless
181.34of whether the increment was paid to the authority.
182.1(d) Receipt by a hazardous substance subdistrict of an increment as a result of a
182.2reduction in original net tax capacity under section
469.174, subdivision 7, paragraph
182.3(b), does not constitute receipt of increment by the overlying district for the purpose of
182.4calculating the duration limit under this section.
182.5
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
182.6 Sec. 86. Minnesota Statutes 2012, section 469.176, subdivision 3, is amended to read:
182.7 Subd. 3.
Limitation on administrative expenses. (a) For districts for which
182.8certification was requested before August 1, 1979, or after June 30, 1982 and before
182.9 August 1, 2001, no tax increment shall be used to pay any administrative expenses for
182.10a project which exceed ten percent of the total estimated tax increment expenditures
182.11authorized by the tax increment financing plan or the total tax increment expenditures
182.12for the project, whichever is less.
182.13(b) For districts for which certification was requested after July 31, 1979, and before
182.14July 1, 1982, no tax increment shall be used to pay administrative expenses, as defined in
182.15Minnesota Statutes 1980, section
, for a district which exceeds five percent of the
182.16total tax increment expenditures authorized by the tax increment financing plan or the total
182.17estimated tax increment expenditures for the district, whichever is less.
182.18(c)
new text begin (b)new text end For districts for which certification was requested after July 31, 2001, no tax
182.19increment may be used to pay any administrative expenses for a project which exceed
182.20ten percent of total estimated tax increment expenditures authorized by the tax increment
182.21financing plan or the total tax increments, as defined in section
469.174, subdivision 25,
182.22clause (1), from the district, whichever is less.
182.23(d)
new text begin (c)new text end Increments used to pay the county's administrative expenses under
182.24subdivision 4h are not subject to the percentage limits in this subdivision.
182.25
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
182.26 Sec. 87. Minnesota Statutes 2013 Supplement, section 469.1763, subdivision 2,
182.27is amended to read:
182.28 Subd. 2.
Expenditures outside district. (a) For each tax increment financing
182.29district, an amount equal to at least 75 percent of the total revenue derived from tax
182.30increments paid by properties in the district must be expended on activities in the district
182.31or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities
182.32in the district or to pay, or secure payment of, debt service on credit enhanced bonds.
182.33For districts, other than redevelopment districts for which the request for certification
183.1was made after June 30, 1995, the in-district percentage for purposes of the preceding
183.2sentence is 80 percent. Not more than 25 percent of the total revenue derived from tax
183.3increments paid by properties in the district may be expended, through a development fund
183.4or otherwise, on activities outside of the district but within the defined geographic area of
183.5the project except to pay, or secure payment of, debt service on credit enhanced bonds.
183.6For districts, other than redevelopment districts for which the request for certification was
183.7made after June 30, 1995, the pooling percentage for purposes of the preceding sentence is
183.820 percent. The revenue derived from tax increments for the district that are expended on
183.9costs under section
469.176, subdivision 4h, paragraph (b), may be deducted first before
183.10calculating the percentages that must be expended within and without the district.
183.11 (b) In the case of a housing district, a housing project, as defined in section
469.174,
183.12subdivision 11
, is an activity in the district.
183.13 (c) All administrative expenses are for activities outside of the district, except that
183.14if the only expenses for activities outside of the district under this subdivision are for
183.15the purposes described in paragraph (d), administrative expenses will be considered as
183.16expenditures for activities in the district.
183.17 (d) The authority may elect, in the tax increment financing plan for the district,
183.18to increase by up to ten percentage points the permitted amount of expenditures for
183.19activities located outside the geographic area of the district under paragraph (a). As
183.20permitted by section
469.176, subdivision 4k, the expenditures, including the permitted
183.21expenditures under paragraph (a), need not be made within the geographic area of the
183.22project. Expenditures that meet the requirements of this paragraph are legally permitted
183.23expenditures of the district, notwithstanding section
469.176, subdivisions 4b, 4c, and 4j.
183.24To qualify for the increase under this paragraph, the expenditures must:
183.25 (1) be used exclusively to assist housing that meets the requirement for a qualified
183.26low-income building, as that term is used in section 42 of the Internal Revenue Code; and
183.27 (2) not exceed the qualified basis of the housing, as defined under section 42(c) of
183.28the Internal Revenue Code, less the amount of any credit allowed under section 42 of
183.29the Internal Revenue Code; and
183.30 (3) be used to:
183.31 (i) acquire and prepare the site of the housing;
183.32 (ii) acquire, construct, or rehabilitate the housing; or
183.33 (iii) make public improvements directly related to the housing; or
183.34(4) be used to develop housing:
183.35(i) if the market value of the housing does not exceed the lesser of:
184.1(A) 150 percent of the average market value of single-family homes in that
184.2municipality; or
184.3(B) $200,000 for municipalities located in the metropolitan area, as defined in
184.4section
473.121, or $125,000 for all other municipalities; and
184.5(ii) if the expenditures are used to pay the cost of site acquisition, relocation,
184.6demolition of existing structures, site preparation, and pollution abatement on one or
184.7more parcels, if the parcel contains a residence containing one to four family dwelling
184.8units that has been vacant for six or more months and is in foreclosure as defined in
184.9section
325N.10, subdivision 7, but without regard to whether the residence is the owner's
184.10principal residence, and only after the redemption period has expired.
184.11 (e) For a district created within a biotechnology and health sciences industry zone
184.12as defined in section
469.330, subdivision 6, or for an existing district located within
184.13such a zone, tax increment derived from such a district may be expended outside of the
184.14district but within the zone only for expenditures required for the construction of public
184.15infrastructure necessary to support the activities of the zone, land acquisition, and other
184.16redevelopment costs as defined in section
469.176, subdivision 4j. These expenditures are
184.17considered as expenditures for activities within the district.
new text begin The authority provided by new text end
184.18
new text begin this paragraph expires for expenditures made after the later of (1) December 31, 2015, new text end
184.19
new text begin or (2) the end of the five-year period beginning on the date the district was certified, new text end
184.20
new text begin provided that date was before January 1, 2016.new text end
184.21(f) The authority under paragraph (d), clause (4), expires on December 31, 2016.
184.22Increments may continue to be expended under this authority after that date, if they are
184.23used to pay bonds or binding contracts that would qualify under subdivision 3, paragraph
184.24(a), if December 31, 2016, is considered to be the last date of the five-year period after
184.25certification under that provision.
184.26
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment new text end
184.27
new text begin and applies to all districts, regardless of when the request for certification was made.new text end
184.28 Sec. 88. Minnesota Statutes 2012, section 473.665, subdivision 5, is amended to read:
184.29 Subd. 5.
Tax levy; surplus; reduction. The corporation, upon issuing any bonds
184.30under the provisions of this section, shall, before the issuance thereof, levy for each year,
184.31until the principal and interest are paid in full, a direct annual tax on all the taxable property
184.32of the cities in and for which the corporation has been created in an amount not less than
184.33five percent in excess of the sum required to pay the principal and interest thereof, when
184.34and as such principal and interest matures. After any of such bonds have been delivered to
184.35purchasers, such tax shall be irrepealable until all such indebtedness is paid, and after the
185.1issuance of such bonds no further action of the corporation shall be necessary to authorize
185.2the extensions, assessments, and collection of such tax. The secretary of the corporation
185.3shall forthwith furnish a certified copy of such levy to the county auditor or county
185.4auditors of the county or counties in which the cities in and for which the corporation has
185.5been created are located, together with full information regarding the bonds for which the
185.6tax is levied, and such county auditor or such county auditors, as the case may be, shall
185.7enter the same in the register provided for in section
475.62, or a similar register, and shall
185.8extend and assess the tax so levied. If both cities are located wholly within one county, the
185.9county auditor thereof shall annually extend and assess the amount of the tax so levied. If
185.10the cities are located in different counties, the county auditor of each such county shall
185.11annually extend and assess such portion of the tax levied as the net tax capacity of the
185.12taxable property, not including moneys and credits, located wholly within the city in such
185.13county bears to the total net tax capacity of the taxable property, not including moneys and
185.14credits, within both cities. Any surplus resulting from the excess levy herein provided
185.15for shall be transferred to a sinking fund after the principal and interest for which the tax
185.16was levied and collected has been paid; provided, that the corporation may, on or before
185.17October 15 in any year, by appropriate action, cause its secretary to certify to the county
185.18auditor, or auditors, the amount on hand and available in its treasury from earnings, or
185.19otherwise, including the amount in the sinking fund, which it will use to pay principal or
185.20interest or both on each specified issue of its bonds, and the county auditor or auditors
185.21shall reduce the levy for that year, herein provided for by that amount. The amount of
185.22funds so certified shall be set aside by the corporation, and be used for no other purpose
185.23than for the payment of the principal and interest of the bonds. All taxes hereunder shall
185.24be collected and remitted to the corporation by the county treasurer or county treasurers,
185.25in accordance with the provisions of law governing the collection of other taxes, and shall
185.26be used solely for the payment of the bonds where due.
185.27
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
185.28 Sec. 89. Minnesota Statutes 2012, section 477A.0124, subdivision 5, is amended to
185.29read:
185.30 Subd. 5.
County transition aid. (a) For 2009 and each year thereafter, A county is
185.31eligible to receive the transition aid it received in 2007.
185.32 (b) In 2009 only, a county with (1) a 2006 population less than 30,000, and (2)
185.33an average Part I crimes per capita greater than 3.9 percent based on factors used in
185.34determining county program aid payable in 2008, shall receive $100,000.
186.1
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
186.2 Sec. 90. Minnesota Statutes 2012, section 477A.014, subdivision 1, is amended to read:
186.3 Subdivision 1.
Calculations and payments. (a) The commissioner of revenue shall
186.4make all necessary calculations and make payments pursuant to sections
477A.013 and
186.5477A.03
directly to the affected taxing authorities annually. In addition, the commissioner
186.6shall notify the authorities of their aid amounts, as well as the computational factors used
186.7in making the calculations for their authority, and those statewide total figures that are
186.8pertinent, before August 1 of the year preceding the aid distribution year.
186.9(b) For the purposes of this subdivision, aid is determined for a city or town based
186.10on its city or town status as of June 30 of the year preceding the aid distribution year. If
186.11the effective date for a municipal incorporation, consolidation, annexation, detachment,
186.12dissolution, or township organization is on or before June 30 of the year preceding
186.13the aid distribution year, such change in boundaries or form of government shall be
186.14recognized for aid determinations for the aid distribution year. If the effective date for a
186.15municipal incorporation, consolidation, annexation, detachment, dissolution, or township
186.16organization is after June 30 of the year preceding the aid distribution year, such change in
186.17boundaries or form of government shall not be recognized for aid determinations until
186.18the following year.
186.19(c) Changes in boundaries or form of government will only be recognized for the
186.20purposes of this subdivision, to the extent that: (1) changes in market values are included
186.21in market values reported by assessors to the commissioner, and changes in population,
186.22
new text begin andnew text end household size, and the road accidents factor are included in their respective
186.23certifications to the commissioner as referenced in section
477A.011, or (2) an annexation
186.24information report as provided in paragraph (d) is received by the commissioner on
186.25or before July 15 of the aid calculation year. Revisions to estimates or data for use in
186.26recognizing changes in boundaries or form of government are not effective for purposes
186.27of this subdivision unless received by the commissioner on or before July 15 of the aid
186.28calculation year. Clerical errors in the certification or use of estimates and data established
186.29as of July 15 in the aid calculation year are subject to correction within the time periods
186.30allowed under subdivision 3.
186.31(d) In the case of an annexation, an annexation information report may be completed
186.32by the annexing jurisdiction and submitted to the commissioner for purposes of this
186.33subdivision if the net tax capacity of annexed area for the assessment year preceding the
186.34effective date of the annexation exceeds five percent of the city's net tax capacity for the
186.35same year. The form and contents of the annexation information report shall be prescribed
187.1by the commissioner. The commissioner shall change the net tax capacity, the population,
187.2the population decline, the commercial industrial percentage, and the transformed
187.3population for the annexing jurisdiction only if the annexation information report provides
187.4data the commissioner determines to be reliable for all of these factors used to compute city
187.5revenue need for the annexing jurisdiction. The commissioner shall adjust the pre-1940
187.6housing percentage, the road accidents factor, and household size only if the entire area of
187.7an existing city or town is annexed or consolidated and only if reliable data is available for
187.8all of these factors used to compute city revenue need for the annexing jurisdiction.
187.9
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
187.10 Sec. 91. Minnesota Statutes 2012, section 611.27, subdivision 13, is amended to read:
187.11 Subd. 13.
Public defense services; correctional facility inmates. All billings
187.12for services rendered and ordered under subdivision 7 shall require the approval of the
187.13chief district public defender before being forwarded on a monthly basis to the state
187.14public defender. In cases where adequate representation cannot be provided by the district
187.15public defender and where counsel has been appointed under a court order, the state
187.16public defender shall forward to the commissioner of management and budget all billings
187.17for services rendered under the court order. The commissioner shall pay for services
187.18from county program aid retained by the commissioner of revenue for that purpose under
187.19section
477A.0124, subdivision 1, clause (4), or
477A.03, subdivision 2b, paragraph (a).
187.20 The costs of appointed counsel and associated services in cases arising from new
187.21criminal charges brought against indigent inmates who are incarcerated in a Minnesota
187.22state correctional facility are the responsibility of the state Board of Public Defense. In
187.23such cases the state public defender may follow the procedures outlined in this section for
187.24obtaining court-ordered counsel.
187.25
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
187.26 Sec. 92. Minnesota Statutes 2012, section 611.27, subdivision 15, is amended to read:
187.27 Subd. 15.
Costs of transcripts. In appeal cases and postconviction cases where
187.28the appellate public defender's office does not have sufficient funds to pay for transcripts
187.29and other necessary expenses because it has spent or committed all of the transcript
187.30funds in its annual budget, the state public defender may forward to the commissioner
187.31of management and budget all billings for transcripts and other necessary expenses. The
187.32commissioner shall pay for these transcripts and other necessary expenses from county
188.1program aid retained by the commissioner of revenue for that purpose under section
188.2
477A.0124, subdivision 1, clause (4), or
477A.03, subdivision 2b, paragraph (a).
188.3
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
188.4 Sec. 93.
new text begin REVISOR'S INSTRUCTION.new text end
188.5
new text begin The revisor of statutes shall make all necessary cross-reference changes in new text end
188.6
new text begin Minnesota Statutes and Minnesota Rules consistent with the amendments and repealers in new text end
188.7
new text begin this article. The revisor can make changes to sentence structure to preserve the meaning of new text end
188.8
new text begin the text. The revisor shall make other changes in chapter titles; section, subdivision, part, new text end
188.9
new text begin and subpart headnotes; and in other terminology necessary as a result of the enactment of new text end
188.10
new text begin this act. The Department of Revenue shall assist in making these corrections.new text end
188.11 Sec. 94.
new text begin REPEALER.new text end
188.12
new text begin (a)new text end new text begin Minnesota Statutes 2012, sections 273.1398, subdivision 4b; 290.01, subdivision new text end
188.13
new text begin 19e; 290.0674, subdivision 3; 290.191, subdivision 4; and 290.33,new text end new text begin and new text end new text begin Minnesota Rules, new text end
188.14
new text begin part 8007.0200,new text end new text begin are repealed.new text end
188.15
new text begin (b)new text end new text begin Minnesota Statutes 2012, sections 16D.02, subdivisions 5 and 8; 16D.11, new text end
188.16
new text begin subdivision 2; 270C.53; 270C.991, subdivision 4; 272.02, subdivisions 1, 1a, 43, 48, 51, new text end
188.17
new text begin 53, 67, 72, and 82; 272.027, subdivision 2; 272.031; 273.015, subdivision 1; 273.03, new text end
188.18
new text begin subdivision 3; 273.075; 273.13, subdivision 21a; 273.1383; 273.1386; 273.80; 275.77; new text end
188.19
new text begin 279.32; 281.173, subdivision 8; 281.174, subdivision 8; 281.328; 282.10; 282.23; 287.20, new text end
188.20
new text begin subdivision 4; 287.27, subdivision 2; 290.01, subdivisions 4b and 20e; 295.52, subdivision new text end
188.21
new text begin 7; 297A.666; 297A.71, subdivisions 4, 5, 7, 9, 10, 17, 18, 20, 32, and 41; 297F.08, new text end
188.22
new text begin subdivision 11; 297H.10, subdivision 2; 469.174, subdivision 10c; 469.175, subdivision new text end
188.23
new text begin 2b; 469.176, subdivision 1i; 469.177, subdivision 10; 477A.0124, subdivisions 1 and 6; new text end
188.24
new text begin and 505.173,new text end new text begin new text end new text begin Minnesota Statutes 2013 Supplement, section 273.1103, new text end new text begin Laws 1993, chapter new text end
188.25
new text begin 375, article 9, section 47, new text end new text begin and new text end new text begin Minnesota Rules, parts 8002.0200, subpart 8; 8100.0800; new text end
188.26
new text begin and 8130.7500, subpart 7,new text end new text begin are repealed.new text end
188.27
new text begin (c) new text end new text begin Minnesota Statutes 2012, section 469.1764,new text end new text begin is repealed.new text end
188.28
new text begin (d)new text end new text begin Minnesota Statutes 2012, sections 289A.56, subdivision 7; 297A.68, subdivision new text end
188.29
new text begin 38; 469.330; 469.331; 469.332; 469.333; 469.334; 469.335; 469.336; 469.337; 469.338; new text end
188.30
new text begin 469.339; 469.340, subdivisions 1, 2, 3, and 5; and 469.341,new text end new text begin and new text end new text begin Minnesota Statutes 2013 new text end
188.31
new text begin Supplement, section 469.340, subdivision 4,new text end new text begin are repealed.new text end
188.32
new text begin (e) new text end new text begin Minnesota Statutes 2012, section 290.06, subdivisions 30 and 31,new text end new text begin are repealed.new text end
189.1
new text begin EFFECTIVE DATE.new text end new text begin Paragraph (a) is effective for taxable years beginning after new text end
189.2
new text begin December 31, 2013.new text end
189.3
new text begin Paragraph (b) is effective the day following final enactment.new text end
189.4
new text begin Paragraph (c) is effective the day following final enactment and any remaining new text end
189.5
new text begin unexpended tax increments from a district subject to Minnesota Statutes, section 469.1764, new text end
189.6
new text begin must be distributed as excess increments to the city, county, and school district under new text end
189.7
new text begin Minnesota Statutes, section 469.176, subdivision 2, paragraph (c), clause (4), on or before new text end
189.8
new text begin December 31, 2014.new text end
189.9
new text begin Paragraph (d) is effective the day following final enactment.new text end
189.10
new text begin Paragraph (e) is effective for taxable years beginning after December 31, 2013.new text end
189.11
ARTICLE 10
189.12
DEPARTMENT OF REVENUE - TECHNICAL AND POLICY
189.13
PROPERTY TAX PROVISIONS
189.14 Section 1. Minnesota Statutes 2012, section 270.87, is amended to read:
189.15
270.87 CERTIFICATION TO COUNTY ASSESSORS.
189.16After making an annual determination of the equalized fair market value of the
189.17operating property of each company in each of the respective counties, and in the taxing
189.18districts therein, the commissioner shall certify the equalized fair market value to the
189.19county assessor on or before June 30. The equalized fair market value of the operating
189.20property of the railroad company in the county and the taxing districts therein is the value
189.21on which taxes must be levied and collected in the same manner as on the commercial and
189.22industrial property of such county and the taxing districts therein. If the commissioner
189.23determines that the equalized fair market value certified on or before June 30 is in error,
189.24the commissioner may issue a corrected certification on or before August 31.
new text begin The new text end
189.25
new text begin commissioner may correct errors that are merely clerical in nature until December 31.new text end
189.26
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
189.27 Sec. 2. Minnesota Statutes 2012, section 272.029, subdivision 4a, is amended to read:
189.28 Subd. 4a.
Correction of errors. If the commissioner of revenue determines that
189.29the amount of production tax has been erroneously calculated, the commissioner may
189.30correct the error. The commissioner must notify the owner of the wind energy conversion
189.31system of the correction and the amount of tax due to each county and must certify the
189.32correction to the county auditor of each county in which the system is located on or before
189.33April 1 of the current year.
new text begin The commissioner may correct errors that are merely clerical new text end
189.34
new text begin in nature until December 31.new text end
190.1
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
190.2 Sec. 3. Minnesota Statutes 2012, section 273.01, is amended to read:
190.3
273.01 LISTING AND ASSESSMENT, TIME.
190.4All real property subject to taxation shall be listed and at least one-fifth of the parcels
190.5listed shall be appraised each year with reference to their value on January 2 preceding the
190.6assessment so that each parcel shall be reappraised at maximum intervals of five years. All
190.7real property becoming taxable in any year shall be listed with reference to its value on
190.8January 2 of that year. Except as provided in this section and section
274.01, subdivision
190.91
, all real property assessments shall be completed two weeks prior to the date scheduled
190.10for the local board of review or equalization. No changes in valuation or classification
190.11which are intended to correct errors in judgment by the county assessor may be made by
190.12the county assessor after the board of review or the county board of equalization has
190.13adjourned; however, corrections of errors
new text begin for real or personal property new text end that are merely
190.14clerical in nature or changes that extend homestead treatment to property are permitted
190.15after adjournment until the tax extension date for that assessment year. Any changes made
190.16by the assessor after adjournment must be fully documented and maintained in a file in the
190.17assessor's office and shall be available for review by any person. A copy of any changes
190.18made during this period shall be sent to the county board no later than December 31 of
190.19the assessment year. In the event a valuation and classification is not placed on any real
190.20property by the dates scheduled for the local board of review or equalization the valuation
190.21and classification determined in the preceding assessment shall be continued in effect and
190.22the provisions of section
273.13 shall, in such case, not be applicable, except with respect
190.23to real estate which has been constructed since the previous assessment. Real property
190.24containing iron ore, the fee to which is owned by the state of Minnesota, shall, if leased by
190.25the state after January 2 in any year, be subject to assessment for that year on the value of
190.26any iron ore removed under said lease prior to January 2 of the following year. Personal
190.27property subject to taxation shall be listed and assessed annually with reference to its value
190.28on January 2; and, if acquired on that day, shall be listed by or for the person acquiring it.
190.29
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
190.30 Sec. 4. Minnesota Statutes 2013 Supplement, section 273.13, subdivision 25, is
190.31amended to read:
190.32 Subd. 25.
Class 4. (a) Class 4a is residential real estate containing four or more
190.33units and used or held for use by the owner or by the tenants or lessees of the owner
191.1as a residence for rental periods of 30 days or more, excluding property qualifying for
191.2class 4d. Class 4a also includes hospitals licensed under sections
144.50 to
144.56, other
191.3than hospitals exempt under section
272.02, and contiguous property used for hospital
191.4purposes, without regard to whether the property has been platted or subdivided. The
191.5market value of class 4a property has a class rate of 1.25 percent.
191.6 (b) Class 4b includes:
191.7 (1) residential real estate containing less than four units that does not qualify as class
191.84bb, other than seasonal residential recreational property;
191.9 (2) manufactured homes not classified under any other provision;
191.10 (3) a dwelling, garage, and surrounding one acre of property on a nonhomestead
191.11farm classified under subdivision 23, paragraph (b) containing two or three units; and
191.12 (4) unimproved property that is classified residential as determined under subdivision
191.1333.
191.14 The market value of class 4b property has a class rate of 1.25 percent.
191.15 (c) Class 4bb includes nonhomestead residential real estate containing one unit,
191.16other than seasonal residential recreational property, and a single family dwelling, garage,
191.17and surrounding one acre of property on a nonhomestead farm classified under subdivision
191.1823, paragraph (b).
191.19 Class 4bb property has the same class rates as class 1a property under subdivision 22.
191.20 Property that has been classified as seasonal residential recreational property at
191.21any time during which it has been owned by the current owner or spouse of the current
191.22owner does not qualify for class 4bb.
191.23 (d) Class 4c property includes:
191.24 (1) except as provided in subdivision 22, paragraph (c), real and personal property
191.25devoted to commercial temporary and seasonal residential occupancy for recreation
191.26purposes, for not more than 250 days in the year preceding the year of assessment. For
191.27purposes of this clause, property is devoted to a commercial purpose on a specific day
191.28if any portion of the property is used for residential occupancy, and a fee is charged for
191.29residential occupancy. Class 4c property under this clause must contain three or more
191.30rental units. A "rental unit" is defined as a cabin, condominium, townhouse, sleeping room,
191.31or individual camping site equipped with water and electrical hookups for recreational
191.32vehicles. A camping pad offered for rent by a property that otherwise qualifies for class
191.334c under this clause is also class 4c under this clause regardless of the term of the rental
191.34agreement, as long as the use of the camping pad does not exceed 250 days. In order for a
191.35property to be classified under this clause, either (i) the business located on the property
191.36must provide recreational activities, at least 40 percent of the annual gross lodging receipts
192.1related to the property must be from business conducted during 90 consecutive days,
192.2and either (A) at least 60 percent of all paid bookings by lodging guests during the year
192.3must be for periods of at least two consecutive nights; or (B) at least 20 percent of the
192.4annual gross receipts must be from charges for providing recreational activities, or (ii) the
192.5business must contain 20 or fewer rental units, and must be located in a township or a city
192.6with a population of 2,500 or less located outside the metropolitan area, as defined under
192.7section
473.121, subdivision 2, that contains a portion of a state trail administered by the
192.8Department of Natural Resources. For purposes of item (i)(A), a paid booking of five or
192.9more nights shall be counted as two bookings. Class 4c property also includes commercial
192.10use real property used exclusively for recreational purposes in conjunction with other class
192.114c property classified under this clause and devoted to temporary and seasonal residential
192.12occupancy for recreational purposes, up to a total of two acres, provided the property is
192.13not devoted to commercial recreational use for more than 250 days in the year preceding
192.14the year of assessment and is located within two miles of the class 4c property with which
192.15it is used. In order for a property to qualify for classification under this clause, the owner
192.16must submit a declaration to the assessor designating the cabins or units occupied for 250
192.17days or less in the year preceding the year of assessment by January 15 of the assessment
192.18year. Those cabins or units and a proportionate share of the land on which they are located
192.19must be designated class 4c under this clause as otherwise provided. The remainder of the
192.20cabins or units and a proportionate share of the land on which they are located will be
192.21designated as class 3a. The owner of property desiring designation as class 4c property
192.22under this clause must provide guest registers or other records demonstrating that the units
192.23for which class 4c designation is sought were not occupied for more than 250 days in the
192.24year preceding the assessment if so requested. The portion of a property operated as a
192.25(1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5) other
192.26nonresidential facility operated on a commercial basis not directly related to temporary and
192.27seasonal residential occupancy for recreation purposes does not qualify for class 4c. For
192.28the purposes of this paragraph, "recreational activities" means renting ice fishing houses,
192.29boats and motors, snowmobiles, downhill or cross-country ski equipment; providing
192.30marina services, launch services, or guide services; or selling bait and fishing tackle;
192.31 (2) qualified property used as a golf course if:
192.32 (i) it is open to the public on a daily fee basis. It may charge membership fees or
192.33dues, but a membership fee may not be required in order to use the property for golfing,
192.34and its green fees for golfing must be comparable to green fees typically charged by
192.35municipal courses; and
192.36 (ii) it meets the requirements of section
273.112, subdivision 3, paragraph (d).
193.1 A structure used as a clubhouse, restaurant, or place of refreshment in conjunction
193.2with the golf course is classified as class 3a property;
193.3 (3) real property up to a maximum of three acres of land owned and used by a
193.4nonprofit community service oriented organization and not used for residential purposes
193.5on either a temporary or permanent basis, provided that:
193.6 (i) the property is not used for a revenue-producing activity for more than six days
193.7in the calendar year preceding the year of assessment; or
193.8 (ii) the organization makes annual charitable contributions and donations at least
193.9equal to the property's previous year's property taxes and the property is allowed to be
193.10used for public and community meetings or events for no charge, as appropriate to the
193.11size of the facility.
193.12 For purposes of this clause:
193.13 (A) "charitable contributions and donations" has the same meaning as lawful
193.14gambling purposes under section
349.12, subdivision 25, excluding those purposes
193.15relating to the payment of taxes, assessments, fees, auditing costs, and utility payments;
193.16 (B) "property taxes" excludes the state general tax;
193.17 (C) a "nonprofit community service oriented organization" means any corporation,
193.18society, association, foundation, or institution organized and operated exclusively for
193.19charitable, religious, fraternal, civic, or educational purposes, and which is exempt from
193.20federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal
193.21Revenue Code; and
193.22 (D) "revenue-producing activities" shall include but not be limited to property or that
193.23portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt
193.24liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling
193.25alley, a retail store, gambling conducted by organizations licensed under chapter 349, an
193.26insurance business, or office or other space leased or rented to a lessee who conducts a
193.27for-profit enterprise on the premises.
193.28 Any portion of the property not qualifying under either item (i) or (ii) is class 3a.
193.29The use of the property for social events open exclusively to members and their guests
193.30for periods of less than 24 hours, when an admission is not charged nor any revenues are
193.31received by the organization shall not be considered a revenue-producing activity.
193.32 The organization shall maintain records of its charitable contributions and donations
193.33and of public meetings and events held on the property and make them available upon
193.34request any time to the assessor to ensure eligibility. An organization meeting the
193.35requirement under item (ii) must file an application by May 1 with the assessor for
194.1eligibility for the current year's assessment. The commissioner shall prescribe a uniform
194.2application form and instructions;
194.3 (4) postsecondary student housing of not more than one acre of land that is owned by
194.4a nonprofit corporation organized under chapter 317A and is used exclusively by a student
194.5cooperative, sorority, or fraternity for on-campus housing or housing located within two
194.6miles of the border of a college campus;
194.7 (5)(i) manufactured home parks as defined in section
327.14, subdivision 3,
194.8excluding manufactured home parks described in section
273.124, subdivision 3a, and (ii)
194.9manufactured home parks as defined in section
327.14, subdivision 3, that are described in
194.10section
273.124, subdivision 3a;
194.11 (6) real property that is actively and exclusively devoted to indoor fitness, health,
194.12social, recreational, and related uses, is owned and operated by a not-for-profit corporation,
194.13and is located within the metropolitan area as defined in section
473.121, subdivision 2;
194.14 (7) a leased or privately owned noncommercial aircraft storage hangar not exempt
194.15under section
272.01, subdivision 2, and the land on which it is located, provided that:
194.16 (i) the land is on an airport owned or operated by a city, town, county, Metropolitan
194.17Airports Commission, or group thereof; and
194.18 (ii) the land lease, or any ordinance or signed agreement restricting the use of the
194.19leased premise, prohibits commercial activity performed at the hangar.
194.20 If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must
194.21be filed by the new owner with the assessor of the county where the property is located
194.22within 60 days of the sale;
194.23 (8) a privately owned noncommercial aircraft storage hangar not exempt under
194.24section
272.01, subdivision 2, and the land on which it is located, provided that:
194.25 (i) the land abuts a public airport; and
194.26 (ii) the owner of the aircraft storage hangar provides the assessor with a signed
194.27agreement restricting the use of the premises, prohibiting commercial use or activity
194.28performed at the hangar; and
194.29 (9) residential real estate, a portion of which is used by the owner for homestead
194.30purposes, and that is also a place of lodging, if all of the following criteria are met:
194.31 (i) rooms are provided for rent to transient guests that generally stay for periods
194.32of 14 or fewer days;
194.33 (ii) meals are provided to persons who rent rooms, the cost of which is incorporated
194.34in the basic room rate;
194.35 (iii) meals are not provided to the general public except for special events on fewer
194.36than seven days in the calendar year preceding the year of the assessment; and
195.1 (iv) the owner is the operator of the property.
195.2 The market value subject to the 4c classification under this clause is limited to
195.3five rental units. Any rental units on the property in excess of five, must be valued and
195.4assessed as class 3a. The portion of the property used for purposes of a homestead by the
195.5owner must be classified as class 1a property under subdivision 22;
195.6 (10) real property up to a maximum of three acres and operated as a restaurant
195.7as defined under section
157.15, subdivision 12, provided it: (A) is located on a lake
195.8as defined under section
103G.005, subdivision 15, paragraph (a), clause (3); and (B)
195.9is either devoted to commercial purposes for not more than 250 consecutive days, or
195.10receives at least 60 percent of its annual gross receipts from business conducted during
195.11four consecutive months. Gross receipts from the sale of alcoholic beverages must be
195.12included in determining the property's qualification under subitem (B). The property's
195.13primary business must be as a restaurant and not as a bar. Gross receipts from gift shop
195.14sales located on the premises must be excluded. Owners of real property desiring 4c
195.15classification under this clause must submit an annual declaration to the assessor by
195.16February 1 of the current assessment year, based on the property's relevant information for
195.17the preceding assessment year;
195.18(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used
195.19as a marina, as defined in section
86A.20, subdivision 5, which is made accessible to
195.20the public and devoted to recreational use for marina services. The marina owner must
195.21annually provide evidence to the assessor that it provides services, including lake or river
195.22access to the public by means of an access ramp or other facility that is either located on
195.23the property of the marina or at a publicly owned site that abuts the property of the marina.
195.24No more than 800 feet of lakeshore may be included in this classification. Buildings used
195.25in conjunction with a marina for marina services, including but not limited to buildings
195.26used to provide food and beverage services, fuel, boat repairs, or the sale of bait or fishing
195.27tackle, are classified as class 3a property; and
195.28(12) real and personal property devoted to noncommercial temporary and seasonal
195.29residential occupancy for recreation purposes.
195.30 Class 4c property has a class rate of 1.5 percent of market value, except that (i) each
195.31parcel of noncommercial seasonal residential recreational property under clause (12)
195.32has the same class rates as class 4bb property, (ii) manufactured home parks assessed
195.33under clause (5), item (i), have the same class rate as class 4b property, and the market
195.34value of manufactured home parks assessed under clause (5), item (ii), has the same class
195.35rate as class 4d property
new text begin has a classification rate of 0.75 percentnew text end if more than 50 percent
195.36of the lots in the park are occupied by shareholders in the cooperative corporation or
196.1association and a class rate of one percent if 50 percent or less of the lots are so occupied,
196.2(iii) commercial-use seasonal residential recreational property and marina recreational
196.3land as described in clause (11), has a class rate of one percent for the first $500,000 of
196.4market value, and 1.25 percent for the remaining market value, (iv) the market value of
196.5property described in clause (4) has a class rate of one percent, (v) the market value of
196.6property described in clauses (2), (6), and (10) has a class rate of 1.25 percent, and (vi)
196.7that portion of the market value of property in clause (9) qualifying for class 4c property
196.8has a class rate of 1.25 percent.
196.9 (e) Class 4d property is qualifying low-income rental housing certified to the assessor
196.10by the Housing Finance Agency under section
273.128, subdivision 3. If only a portion
196.11of the units in the building qualify as low-income rental housing units as certified under
196.12section
273.128, subdivision 3, only the proportion of qualifying units to the total number
196.13of units in the building qualify for class 4d. The remaining portion of the building shall be
196.14classified by the assessor based upon its use. Class 4d also includes the same proportion of
196.15land as the qualifying low-income rental housing units are to the total units in the building.
196.16For all properties qualifying as class 4d, the market value determined by the assessor must
196.17be based on the normal approach to value using normal unrestricted rents.
196.18 (f) The first tier of market value of class 4d property has a class rate of 0.75 percent.
196.19The remaining value of class 4d property has a class rate of 0.25 percent. For the purposes
196.20of this paragraph, the "first tier of market value of class 4d property" means the market
196.21value of each housing unit up to the first tier limit. For the purposes of this paragraph, all
196.22class 4d property value must be assigned to individual housing units. The first tier limit is
196.23$100,000 for assessment year 2014. For subsequent years, the limit is adjusted each year
196.24by the average statewide change in estimated market value of property classified as class 4a
196.25and 4d under this section for the previous assessment year, excluding valuation change due
196.26to new construction, rounded to the nearest $1,000, provided, however, that the limit may
196.27never be less than $100,000. Beginning with assessment year 2015, the commissioner of
196.28revenue must certify the limit for each assessment year by November 1 of the previous year.
196.29
new text begin EFFECTIVE DATE.new text end new text begin This section is effective beginning with assessment year 2014.new text end
196.30 Sec. 5. Minnesota Statutes 2013 Supplement, section 273.1325, subdivision 1, is
196.31amended to read:
196.32 Subdivision 1.
Computation. The Department of Revenue must annually conduct
196.33an assessment/sales ratio study of the taxable property in each county, city, town, and
196.34school district in accordance with the procedures in subdivisions 2 and 3. Based upon the
196.35results of this assessment/sales ratio study, the Department of Revenue must determine
197.1an equalized net tax capacity for the various classes of taxable property in each taxing
197.2district, the aggregate of which is designated as the adjusted net tax capacity. The adjusted
197.3net tax capacity must be reduced by the captured tax capacity of tax increment districts
197.4under section
469.177, subdivision 2, fiscal disparities contribution tax capacities under
197.5sections
276A.06 and
473F.08, and the tax capacity of transmission lines required to be
197.6subtracted from the local tax base under section
273.425; and increased by fiscal disparities
197.7distribution tax capacities under sections
276A.06 and
473F.08. The adjusted net tax
197.8capacities shall be determined using the net tax capacity percentages in effect for the
197.9assessment year following the assessment year of the study. The Department of Revenue
197.10must make whatever estimates are necessary to account for changes in the classification
197.11system. The Department of Revenue may incur the expense necessary to make the
197.12determinations. The commissioner of revenue may reimburse any county or governmental
197.13official for requested services performed in ascertaining the adjusted net tax capacity. On
197.14or before March 15 annually, the Department of Revenue shall file with the chair of the
197.15Tax Committee of the house of representatives and the chair of the Committee on Taxes
197.16and Tax laws of the senate a report of adjusted net tax capacities for school districts.
197.17On or before June 15
new text begin 30new text end annually, the Department of Revenue shall file its final report
197.18on the adjusted net tax capacities for school districts established by the previous year's
197.19assessments and the current year's net tax capacity percentages with the commissioner of
197.20education and each county auditor for those school districts for which the auditor has the
197.21responsibility for determination of local tax rates. A copy of the report so filed shall be
197.22mailed to the clerk of each school district involved and to the county assessor or supervisor
197.23of assessments of the county or counties in which each school district is located.
197.24
new text begin EFFECTIVE DATE.new text end new text begin This section is effective January 1, 2014.new text end
197.25 Sec. 6. Minnesota Statutes 2012, section 273.33, subdivision 2, is amended to read:
197.26 Subd. 2.
Listing and assessment by commissioner. The personal property,
197.27consisting of the pipeline system of mains, pipes, and equipment attached thereto, of
197.28pipeline companies and others engaged in the operations or business of transporting natural
197.29gas, gasoline, crude oil, or other petroleum products by pipelines, shall be listed with and
197.30assessed by the commissioner of revenue and the values provided to the city or county
197.31assessor by order. This subdivision shall not apply to the assessment of the products
197.32transported through the pipelines nor to the lines of local commercial gas companies
197.33engaged primarily in the business of distributing gas to consumers at retail nor to pipelines
197.34used by the owner thereof to supply natural gas or other petroleum products exclusively
197.35for such owner's own consumption and not for resale to others. If more than 85 percent
198.1of the natural gas or other petroleum products actually transported over the pipeline is
198.2used for the owner's own consumption and not for resale to others, then this subdivision
198.3shall not apply; provided, however, that in that event, the pipeline shall be assessed in
198.4proportion to the percentage of gas actually transported over such pipeline that is not used
198.5for the owner's own consumption. On or before August 1, the commissioner shall certify
198.6to the auditor of each county, the amount of such personal property assessment against
198.7each company in each district in which such property is located. If the commissioner
198.8determines that the amount of personal property assessment certified on or before August
198.91 is in error, the commissioner may issue a corrected certification on or before October 1.
198.10
new text begin The commissioner may correct errors that are merely clerical in nature until December 31.new text end
198.11
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
198.12 Sec. 7. Minnesota Statutes 2012, section 273.37, subdivision 2, is amended to read:
198.13 Subd. 2.
Listing and assessment by commissioner. Transmission lines of less
198.14than 69 kv, transmission lines of 69 kv and above located in an unorganized township,
198.15and distribution lines, and equipment attached thereto, having a fixed situs outside the
198.16corporate limits of cities except distribution lines taxed as provided in sections
273.40
198.17and
273.41, shall be listed with and assessed by the commissioner of revenue in the
198.18county where situated and the values provided to the city or county assessor by order.
198.19The commissioner shall assess such property at the percentage of market value fixed by
198.20law; and, on or before August 1, shall certify to the auditor of each county in which
198.21such property is located the amount of the assessment made against each company and
198.22person owning such property. If the commissioner determines that the amount of the
198.23assessment certified on or before August 1 is in error, the commissioner may issue a
198.24corrected certification on or before October 1.
new text begin The commissioner may correct errors that new text end
198.25
new text begin are merely clerical in nature until December 31.new text end
198.26
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
198.27 Sec. 8. Minnesota Statutes 2012, section 273.3711, is amended to read:
198.28
273.3711 RECOMMENDED AND ORDERED VALUES.
198.29 For purposes of sections
273.33,
273.35,
273.36,
273.37,
273.371, and
273.372,
198.30all values not required to be listed and assessed by the commissioner of revenue are
198.31recommended values. If the commissioner provides recommended values, the values must
198.32be certified to the auditor of each county in which the property is located on or before
198.33August 1. If the commissioner determines that the certified recommended value is in
199.1error the commissioner may issue a corrected certification on or before October 1.
new text begin The new text end
199.2
new text begin commissioner may correct errors that are merely clerical in nature until December 31.new text end
199.3
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
199.4 Sec. 9. Minnesota Statutes 2012, section 274.01, subdivision 1, is amended to read:
199.5 Subdivision 1.
Ordinary board; meetings, deadlines, grievances. (a) The town
199.6board of a town, or the council or other governing body of a city, is the board of appeal
199.7and equalization except (1) in cities whose charters provide for a board of equalization or
199.8(2) in any city or town that has transferred its local board of review power and duties to
199.9the county board as provided in subdivision 3. The county assessor shall fix a day and
199.10time when the board or the board of equalization shall meet in the assessment districts
199.11of the county. Notwithstanding any law or city charter to the contrary, a city board of
199.12equalization shall be referred to as a board of appeal and equalization. On or before
199.13February 15 of each year the assessor shall give written notice of the time to the city or
199.14town clerk. Notwithstanding the provisions of any charter to the contrary, the meetings
199.15must be held between April 1 and May 31 each year. The clerk shall give published and
199.16posted notice of the meeting at least ten days before the date of the meeting.
199.17 The board shall meet
new text begin either at a central location within the county or new text end at the office of
199.18the clerk to review the assessment and classification of property in the town or city. No
199.19changes in valuation or classification which are intended to correct errors in judgment by
199.20the county assessor may be made by the county assessor after the board has adjourned
199.21in those cities or towns that hold a local board of review; however, corrections of errors
199.22that are merely clerical in nature or changes that extend homestead treatment to property
199.23are permitted after adjournment until the tax extension date for that assessment year. The
199.24changes must be fully documented and maintained in the assessor's office and must be
199.25available for review by any person. A copy of the changes made during this period in
199.26those cities or towns that hold a local board of review must be sent to the county board no
199.27later than December 31 of the assessment year.
199.28 (b) The board shall determine whether the taxable property in the town or city has
199.29been properly placed on the list and properly valued by the assessor. If real or personal
199.30property has been omitted, the board shall place it on the list with its market value, and
199.31correct the assessment so that each tract or lot of real property, and each article, parcel,
199.32or class of personal property, is entered on the assessment list at its market value. No
199.33assessment of the property of any person may be raised unless the person has been
199.34duly notified of the intent of the board to do so. On application of any person feeling
199.35aggrieved, the board shall review the assessment or classification, or both, and correct
200.1it as appears just. The board may not make an individual market value adjustment or
200.2classification change that would benefit the property if the owner or other person having
200.3control over the property has refused the assessor access to inspect the property and the
200.4interior of any buildings or structures as provided in section
273.20. A board member
200.5shall not participate in any actions of the board which result in market value adjustments
200.6or classification changes to property owned by the board member, the spouse, parent,
200.7stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle, aunt, nephew,
200.8or niece of a board member, or property in which a board member has a financial interest.
200.9The relationship may be by blood or marriage.
200.10 (c) A local board may reduce assessments upon petition of the taxpayer but the total
200.11reductions must not reduce the aggregate assessment made by the county assessor by more
200.12than one percent. If the total reductions would lower the aggregate assessments made by
200.13the county assessor by more than one percent, none of the adjustments may be made. The
200.14assessor shall correct any clerical errors or double assessments discovered by the board
200.15without regard to the one percent limitation.
200.16 (d) A local board does not have authority to grant an exemption or to order property
200.17removed from the tax rolls.
200.18 (e) A majority of the members may act at the meeting, and adjourn from day to day
200.19until they finish hearing the cases presented. The assessor shall attend, with the assessment
200.20books and papers, and take part in the proceedings, but must not vote. The county assessor,
200.21or an assistant delegated by the county assessor shall attend the meetings. The board shall
200.22list separately, on a form appended to the assessment book, all omitted property added
200.23to the list by the board and all items of property increased or decreased, with the market
200.24value of each item of property, added or changed by the board, placed opposite the item.
200.25The county assessor shall enter all changes made by the board in the assessment book.
200.26 (f) Except as provided in subdivision 3, if a person fails to appear in person, by
200.27counsel, or by written communication before the board after being duly notified of the
200.28board's intent to raise the assessment of the property, or if a person feeling aggrieved by an
200.29assessment or classification fails to apply for a review of the assessment or classification,
200.30the person may not appear before the county board of appeal and equalization for a review
200.31of the assessment or classification. This paragraph does not apply if an assessment was
200.32made after the local board meeting, as provided in section
273.01, or if the person can
200.33establish not having received notice of market value at least five days before the local
200.34board meeting.
200.35 (g) The local board must complete its work and adjourn within 20 days from the
200.36time of convening stated in the notice of the clerk, unless a longer period is approved by
201.1the commissioner of revenue. No action taken after that date is valid. All complaints
201.2about an assessment or classification made after the meeting of the board must be heard
201.3and determined by the county board of equalization. A nonresident may, at any time,
201.4before the meeting of the board file written objections to an assessment or classification
201.5with the county assessor. The objections must be presented to the board at its meeting by
201.6the county assessor for its consideration.
201.7
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
201.8 Sec. 10. Minnesota Statutes 2012, section 274.014, subdivision 3, is amended to read:
201.9 Subd. 3.
Proof of compliance; transfer of duties. (a) Any city or town that
201.10conducts local boards of appeal and equalization meetings must provide proof to the
201.11county assessor by December 1, 2006, and each year thereafter,
new text begin February 1new text end that it is in
201.12compliance with the requirements of subdivision 2. Beginning in 2006, This notice must
201.13also verify that there was a quorum of voting members at each meeting of the board
201.14of appeal and equalization in the current
new text begin previousnew text end year. A city or town that does not
201.15comply with these requirements is deemed to have transferred its board of appeal and
201.16equalization powers to the county beginning with the following
new text begin currentnew text end year's assessment
201.17and continuing unless the powers are reinstated under paragraph (c).
201.18 (b) The county shall notify the taxpayers when the board of appeal and equalization
201.19for a city or town has been transferred to the county under this subdivision and, prior to
201.20the meeting time of the county board of equalization, the county shall make available to
201.21those taxpayers a procedure for a review of the assessments, including, but not limited to,
201.22open book meetings. This alternate review process shall take place in April and May.
201.23 (c) A local board whose powers are transferred to the county under this subdivision
201.24may be reinstated by resolution of the governing body of the city or town and upon proof
201.25of compliance with the requirements of subdivision 2. The resolution and proofs must be
201.26provided to the county assessor by December 1
new text begin February 1new text end in order to be effective for
201.27the following year's assessment.
201.28 (d) A local board whose powers are transferred to the county under this subdivision
201.29may continue to employ a local assessor and is not deemed to have transferred its powers
201.30to make assessments.
201.31
new text begin EFFECTIVE DATE.new text end new text begin This section is effective beginning with local boards of appeal new text end
201.32
new text begin and equalization meetings held after February 1, 2016.new text end
202.1 Sec. 11. Minnesota Statutes 2013 Supplement, section 423A.02, subdivision 3, is
202.2amended to read:
202.3 Subd. 3.
Reallocation of amortization state aid. (a) Seventy percent of the
202.4difference between $5,720,000 and the current year amortization aid distributed under
202.5subdivision 1 that is not distributed for any reason to a municipality must be distributed
202.6by the commissioner of revenue according to this paragraph. The commissioner shall
202.7distribute 50 percent of the amounts derived under this paragraph to the Teachers
202.8Retirement Association, ten percent to the Duluth Teachers Retirement Fund Association,
202.9and 40 percent to the St. Paul Teachers Retirement Fund Association to fund the unfunded
202.10actuarial accrued liabilities of the respective funds. These payments must be made on July
202.1115 each fiscal year. If the St. Paul Teachers Retirement Fund Association or the Duluth
202.12Teachers Retirement Fund Association becomes fully funded, the association's eligibility
202.13for its portion of this aid ceases. Amounts remaining in the undistributed balance account
202.14at the end of the biennium if aid eligibility ceases cancel to the general fund.
202.15 (b) In order to receive amortization aid under paragraph (a), before June 30 annually
202.16Independent School District No. 625, St. Paul, must make an additional contribution of
202.17$800,000 each year to the St. Paul Teachers Retirement Fund Association.
202.18 (c) Thirty percent of the difference between $5,720,000 and the current year
202.19amortization aid under subdivision 1a
new text begin 1new text end that is not distributed for any reason to a
202.20municipality must be distributed under section
69.021, subdivision 7, paragraph (d), as
202.21additional funding to support a minimum fire state aid amount for volunteer firefighter
202.22relief associations.
202.23
new text begin EFFECTIVE DATE.new text end new text begin This section is effective retroactively from June 1, 2013.new text end
202.24 Sec. 12.
new text begin REVISOR'S INSTRUCTION.new text end
202.25
new text begin The revisor of statutes shall change the terms "class rate" or "class rates" to new text end
202.26
new text begin "classification rate" or "classification rates" or similar terms wherever they appear in new text end
202.27
new text begin Minnesota Statutes when the terms are being used to refer to the calculation of net tax new text end
202.28
new text begin capacity in the property tax system. The revisor can make changes to sentence structure new text end
202.29
new text begin to preserve the meaning of the text. The revisor shall make other changes in section and new text end
202.30
new text begin subdivision headnotes and in other terminology as necessary as a result of the enactment new text end
202.31
new text begin of this section. The Department of Revenue shall assist in making these corrections.new text end
203.1
ARTICLE 11
203.2
DEPARTMENT OF REVENUE - TECHNICAL AND POLICY INCOME AND
203.3
FRANCHISE, SALES AND USE, AND MISCELLANEOUS TAX PROVISIONS
203.4 Section 1. Minnesota Statutes 2012, section 270C.34, subdivision 2, is amended to read:
203.5 Subd. 2.
Procedure. (a) A request for abatement of penalty under subdivision 1 or
203.6section
289A.60, subdivision 4,
new text begin or a request for abatement of interest or additional tax new text end
203.7
new text begin charge, new text end must be filed with the commissioner within 60 days of the date the notice was
203.8mailed to the taxpayer's last known address, stating that a penalty has been imposed.
203.9(b) If the commissioner issues an order denying a request for abatement of penalty,
203.10
new text begin interest, or additional tax charge, new text end the taxpayer may file an administrative appeal as
203.11provided in section
270C.35 or appeal to Tax Court as provided in section
271.06.
203.12(c) If the commissioner does not issue an order on the abatement request within
203.1360 days from the date the request is received, the taxpayer may appeal to Tax Court as
203.14provided in section
271.06.
203.15
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
203.16 Sec. 2. Minnesota Statutes 2012, section 270C.56, subdivision 3, is amended to read:
203.17 Subd. 3.
Procedure for assessment; claims for refunds. (a) The commissioner
203.18may assess liability for the taxes described in subdivision 1 against a person liable
203.19under this section. The assessment may be based upon information available to the
203.20commissioner. It must be made within the prescribed period of limitations for assessing
203.21the underlying tax, or within one year after the date of an order assessing underlying
203.22tax
new text begin , or within one year after the date of a final administrative or judicial determinationnew text end ,
203.23whichever period expires later. An order assessing personal liability under this section is
203.24reviewable under section
270C.35 and is appealable to Tax Court.
203.25(b) If the time for appealing the order has expired and a payment is made by or
203.26collected from the person assessed on the order in excess of the amount lawfully due
203.27from that person of any portion of the liability shown on the order, a claim for refund
203.28may be made by that person within 120 days after any payment of the liability if the
203.29payment is within 3-1/2 years after the date the order was issued. Claims for refund under
203.30this paragraph are limited to the amount paid during the 120-day period. Any amounts
203.31collected under paragraph (c) after a claim for refund is filed in order to satisfy the unpaid
203.32balance of the assessment that is the subject of the claim shall be returned if the claim is
203.33allowed. There is no claim for refund available under this paragraph if the assessment has
203.34previously been the subject of an administrative or Tax Court appeal, or a denied claim
204.1for refund. The taxpayer may contest denial of the refund as provided in the procedures
204.2governing claims for refunds under section
289A.50, subdivision 7.
204.3(c) If a person has been assessed under this section for an amount for a given period
204.4and the time for appeal has expired, regardless of whether an action contesting denial of a
204.5claim for refund has been filed under paragraph (b), or there has been a final determination
204.6that the person is liable, collection action is not stayed pursuant to section
270C.33,
204.7subdivision 5
, for that assessment or for subsequent assessments of additional amounts for
204.8the same person for the same period and tax type.
204.9
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
204.10 Sec. 3. Minnesota Statutes 2012, section 289A.18, subdivision 2, is amended to read:
204.11 Subd. 2.
Withholding returns, entertainer withholding returns, returns for
204.12
withholding from payments to out-of-state contractors, and withholding returns
204.13
from partnerships and S corporations. new text begin (a) new text end Withholding returns for the first, second,
204.14 and third quarters are due on or before the last day of the month following the close of
204.15the quarterly period. However, if the return shows timely deposits in full payment of
204.16the taxes due for that period, the returns for the first, second, and third quarters may be
204.17filed on or before the tenth day of the second calendar month following the period. The
204.18return for the fourth quarter must be filed on or before the 28th day of the second calendar
204.19month following the period. An employer, in preparing a quarterly return, may take credit
204.20for deposits previously made for that quarter. Entertainer withholding tax returns are
204.21due within 30 days after each performance. Returns for withholding from payments to
204.22out-of-state contractors are due within 30 days after the payment to the contractor. Returns
204.23for withholding by partnerships are due on or before the due date specified for filing
204.24partnership returns. Returns for withholding by S corporations are due on or before the
204.25due date specified for filing corporate franchise tax returns.
204.26
new text begin (b) A seasonal employer who provides notice in the form and manner prescribed new text end
204.27
new text begin by the commissioner before the end of the calendar quarter is not required to file a new text end
204.28
new text begin withholding tax return for periods of anticipated inactivity unless the employer pays wages new text end
204.29
new text begin during the period from which tax is withheld. For purposes of this paragraph, a seasonal new text end
204.30
new text begin employer is an employer that regularly, in the same one or more quarterly periods of each new text end
204.31
new text begin calendar year, pays no wages to employees.new text end
204.32
new text begin EFFECTIVE DATE.new text end new text begin (a) The amendments in paragraph (a) are effective for returns new text end
204.33
new text begin due after January 1, 2016.new text end
205.1
new text begin (b) The amendment adding paragraph (b) is effective for wages paid after December new text end
205.2
new text begin 31, 2015.new text end
205.3 Sec. 4. Minnesota Statutes 2013 Supplement, section 290.191, subdivision 5, is
205.4amended to read:
205.5 Subd. 5.
Determination of sales factor. For purposes of this section, the following
205.6rules apply in determining the sales factor.
205.7 (a) The sales factor includes all sales, gross earnings, or receipts received in the
205.8ordinary course of the business, except that the following types of income are not included
205.9in the sales factor:
205.10 (1) interest;
205.11 (2) dividends;
205.12 (3) sales of capital assets as defined in section 1221 of the Internal Revenue Code;
205.13 (4) sales of property used in the trade or business, except sales of leased property of
205.14a type which is regularly sold as well as leased; and
205.15 (5) sales of debt instruments as defined in section 1275(a)(1) of the Internal Revenue
205.16Code or sales of stock.
205.17 (b) Sales of tangible personal property are made within this state if the property is
205.18received by a purchaser at a point within this state, and the taxpayer is taxable in this state,
205.19 regardless of the f.o.b. point, other conditions of the sale, or the ultimate destination
205.20of the property.
205.21 (c) Tangible personal property delivered to a common or contract carrier or foreign
205.22vessel for delivery to a purchaser in another state or nation is a sale in that state or nation,
205.23regardless of f.o.b. point or other conditions of the sale.
205.24 (d) Notwithstanding paragraphs (b) and (c), when intoxicating liquor, wine,
205.25fermented malt beverages, cigarettes, or tobacco products are sold to a purchaser who is
205.26licensed by a state or political subdivision to resell this property only within the state of
205.27ultimate destination, the sale is made in that state.
205.28 (e) Sales made by or through a corporation that is qualified as a domestic
205.29international sales corporation under section 992 of the Internal Revenue Code are not
205.30considered to have been made within this state.
205.31 (f) Sales, rents, royalties, and other income in connection with real property is
205.32attributed to the state in which the property is located.
205.33 (g) Receipts from the lease or rental of tangible personal property, including finance
205.34leases and true leases, must be attributed to this state if the property is located in this
205.35state and to other states if the property is not located in this state. Receipts from the
206.1lease or rental of moving property including, but not limited to, motor vehicles, rolling
206.2stock, aircraft, vessels, or mobile equipment are included in the numerator of the receipts
206.3factor to the extent that the property is used in this state. The extent of the use of moving
206.4property is determined as follows:
206.5 (1) A motor vehicle is used wholly in the state in which it is registered.
206.6 (2) The extent that rolling stock is used in this state is determined by multiplying
206.7the receipts from the lease or rental of the rolling stock by a fraction, the numerator of
206.8which is the miles traveled within this state by the leased or rented rolling stock and the
206.9denominator of which is the total miles traveled by the leased or rented rolling stock.
206.10 (3) The extent that an aircraft is used in this state is determined by multiplying the
206.11receipts from the lease or rental of the aircraft by a fraction, the numerator of which is
206.12the number of landings of the aircraft in this state and the denominator of which is the
206.13total number of landings of the aircraft.
206.14 (4) The extent that a vessel, mobile equipment, or other mobile property is used in
206.15the state is determined by multiplying the receipts from the lease or rental of the property
206.16by a fraction, the numerator of which is the number of days during the taxable year the
206.17property was in this state and the denominator of which is the total days in the taxable year.
206.18 (h) Royalties and other income received for the use of or for the privilege of using
206.19intangible property, including patents, know-how, formulas, designs, processes, patterns,
206.20copyrights, trade names, service names, franchises, licenses, contracts, customer lists, or
206.21similar items, must be attributed to the state in which the property is used by the purchaser.
206.22If the property is used in more than one state, the royalties or other income must be
206.23apportioned to this state pro rata according to the portion of use in this state. If the portion
206.24of use in this state cannot be determined, the royalties or other income must be excluded
206.25from both the numerator and the denominator. Intangible property is used in this state if
206.26the purchaser uses the intangible property or the rights therein in the regular course of its
206.27business operations in this state, regardless of the location of the purchaser's customers.
206.28 (i) Sales of intangible property are made within the state in which the property is
206.29used by the purchaser. If the property is used in more than one state, the sales must be
206.30apportioned to this state pro rata according to the portion of use in this state. If the
206.31portion of use in this state cannot be determined, the sale must be excluded from both the
206.32numerator and the denominator of the sales factor. Intangible property is used in this
206.33state if the purchaser used the intangible property in the regular course of its business
206.34operations in this state.
206.35 (j) Receipts from the performance of services must be attributed to the state where
206.36the services are received. For the purposes of this section, receipts from the performance
207.1of services provided to a corporation, partnership, or trust may only be attributed to a state
207.2where it has a fixed place of doing business. If the state where the services are received is
207.3not readily determinable or is a state where the corporation, partnership, or trust receiving
207.4the service does not have a fixed place of doing business, the services shall be deemed
207.5to be received at the location of the office of the customer from which the services were
207.6ordered in the regular course of the customer's trade or business. If the ordering office
207.7cannot be determined, the services shall be deemed to be received at the office of the
207.8customer to which the services are billed.
207.9 (k) For the purposes of this subdivision and subdivision 6, paragraph (l), receipts
207.10from management, distribution, or administrative services performed by a corporation
207.11or trust for a fund of a corporation or trust regulated under United States Code, title 15,
207.12sections 80a-1 through 80a-64, must be attributed to the state where the shareholder of
207.13the fund resides. Under this paragraph, receipts for services attributed to shareholders are
207.14determined on the basis of the ratio of: (1) the average of the outstanding shares in the
207.15fund owned by shareholders residing within Minnesota at the beginning and end of each
207.16year; and (2) the average of the total number of outstanding shares in the fund at the
207.17beginning and end of each year. Residence of the shareholder, in the case of an individual,
207.18is determined by the mailing address furnished by the shareholder to the fund. Residence
207.19of the shareholder, when the shares are held by an insurance company as a depositor for
207.20the insurance company policyholders, is the mailing address of the policyholders. In
207.21the case of an insurance company holding the shares as a depositor for the insurance
207.22company policyholders, if the mailing address of the policyholders cannot be determined
207.23by the taxpayer, the receipts must be excluded from both the numerator and denominator.
207.24Residence of other shareholders is the mailing address of the shareholder.
207.25
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
207.26 Sec. 5. Minnesota Statutes 2012, section 296A.01, subdivision 16, is amended to read:
207.27 Subd. 16.
Dyed fuel. "Dyed fuel" means diesel
new text begin motornew text end fuel to which indelible dye
207.28has been added, either before or upon withdrawal at a terminal or refinery rack, and which
207.29may be sold for exempt purposes. The dye may be either dye required to be added per the
207.30EPA or dye that meets other specifications required by the Internal Revenue Service or
207.31the commissioner.
207.32
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
208.1 Sec. 6. Minnesota Statutes 2013 Supplement, section 403.162, subdivision 5, is
208.2amended to read:
208.3 Subd. 5.
Fees deposited. (a) The commissioner of revenue shall, based on
208.4the relative proportion of the prepaid wireless E911 fee and the prepaid wireless
208.5telecommunications access Minnesota fee imposed per retail transaction, divide the fees
208.6collected in corresponding proportions. Within 30 days of receipt of the collected fees,
208.7the commissioner shall:
208.8(1) deposit the proportion of the collected fees attributable to the prepaid wireless
208.9E911 fee in the 911 emergency telecommunications service account in the special revenue
208.10fund; and
208.11(2) deposit the proportion of collected fees attributable to the prepaid wireless
208.12telecommunications access Minnesota fee in the telecommunications access fund
208.13established in section
237.52, subdivision 1.
208.14(b) The department
new text begin commissioner of revenuenew text end may deduct and retain
new text begin deposit in a new text end
208.15
new text begin special revenue accountnew text end an amount, not to exceed two percent of collected fees,
new text begin . Money new text end
208.16
new text begin in the account is annually appropriated to the commissioner of revenuenew text end to reimburse its
208.17direct costs of administering the collection and remittance of prepaid wireless E911 fees
208.18and prepaid wireless telecommunications access Minnesota fees.
208.19
new text begin EFFECTIVE DATE.new text end new text begin This section is effective retroactively from January 1, 2014.new text end
208.20 Sec. 7. Laws 2013, chapter 143, article 8, section 3, the effective date, is amended to
208.21read:
208.22
EFFECTIVE DATE.This section is effective for sales and purchases made after
208.23June 30, 2013
new text begin , except for paragraph (p), which is effective the day following final new text end
208.24
new text begin enactmentnew text end .
208.25
new text begin EFFECTIVE DATE.new text end new text begin This section is effective retroactively from the day following new text end
208.26
new text begin final enactment of Laws 2013, chapter 143, article 8, section 3.new text end
208.27 Sec. 8.
new text begin REPEALER.new text end
208.28
new text begin Minnesota Rules, parts 8130.8900, subpart 3; and 8130.9500, subparts 1, 1a, 2, new text end
208.29
new text begin 3, 4, and 5,new text end new text begin are repealed.new text end
208.30
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end "
208.31Delete the title and insert:
208.32"A bill for an act
209.1relating to financing and operation of state and local government; making changes
209.2to individual income, property, sales and use, excise, estate, mineral, tobacco,
209.3alcohol, special, local, and other taxes and tax-related provisions; providing for
209.4and increasing credits and refunds; modifying local government aids; modifying
209.5property tax exclusions, exemptions, and levy deadlines; imposing a tax on
209.6solar energy production; modifying installment payments; modifying special
209.7service districts; modifying sales, use, and excise tax incentives and exemptions;
209.8changing certain sales, use, and excise tax remittances; modifying and allowing
209.9certain local sales and use taxes; providing for voluntary compliance; modifying
209.10income tax credits and subtractions; clarifying estate tax provisions; modifying
209.11minerals tax provisions; reallocating certain bond payments; providing for
209.12certain local development projects; modifying tax increment finance rules;
209.13authorizing debt service aid and local bonding authority; designating the "Old
209.14Cedar Avenue Bridge"; changing license revocation procedures; modifying
209.15certain county levy authority; removing obsolete, redundant, and unnecessary
209.16laws and administrative rules administered by the Department of Revenue;
209.17making various policy and technical changes; requiring reports; appropriating
209.18money;amending Minnesota Statutes 2012, sections 16D.02, subdivisions 3,
209.196; 16D.04, subdivisions 3, 4; 16D.07; 16D.11, subdivisions 1, 3, 7; 84A.20,
209.20subdivision 2; 84A.31, subdivision 2; 115B.49, subdivision 4; 116J.8737,
209.21subdivision 5, as amended, by adding a subdivision; 161.14, by adding a
209.22subdivision; 163.06, subdivision 1; 270.11, subdivision 1; 270.12, subdivisions 2,
209.234; 270.87; 270A.03, subdivision 2; 270B.14, subdivision 3; 270C.085; 270C.34,
209.24subdivision 2; 270C.52, subdivision 2; 270C.56, subdivision 3; 270C.72,
209.25subdivisions 1, 3; 272.01, subdivisions 1, 3; 272.02, subdivisions 10, 24, 93;
209.26272.0211, subdivisions 1, 2, 4; 272.025, subdivision 1; 272.027, subdivision 1;
209.27272.029, subdivisions 4a, 6; 272.03, subdivision 1; 273.01; 273.061, subdivision
209.286; 273.10; 273.11, subdivision 13; 273.112, subdivision 6a; 273.13, subdivision
209.2934; 273.1384, subdivision 2; 273.18; 273.33, subdivision 2; 273.37, subdivision
209.302; 273.3711; 274.01, subdivisions 1, 2; 274.014, subdivision 3; 275.065,
209.31subdivision 1; 275.08, subdivisions 1a, 1d; 275.74, subdivision 2; 275.75;
209.32276A.06, subdivisions 3, as amended, 5, as amended; 279.03, subdivisions 1, 1a,
209.332; 279.16; 279.23; 279.25; 280.001; 280.03; 280.07; 280.11; 281.03; 281.327;
209.34282.01, subdivision 6; 282.04, subdivision 4; 282.261, subdivisions 2, 4, 5;
209.35282.322; 287.30; 289A.02, subdivision 7, as amended; 289A.18, subdivision
209.362; 289A.25, subdivision 1; 289A.60, subdivision 15; 290.01, subdivisions 5,
209.3719a, as amended, 19f, 29; 290.015, subdivision 1; 290.07, subdivisions 1, 2;
209.38290.081; 290.0922, subdivision 3; 290.095, subdivision 3; 290.9728, subdivision
209.392; 291.016, subdivision 1, as added; 291.031, as added; 296A.01, subdivision
209.4016; 297A.67, subdivision 13a, by adding a subdivision; 297A.68, by adding
209.41a subdivision; 297A.70, subdivision 10, by adding a subdivision; 297A.94;
209.42297B.09; 297F.03, subdivision 2; 297F.09, subdivision 10; 297G.03, by adding
209.43a subdivision; 297G.09, subdivision 9; 297H.06, subdivision 2; 297I.05,
209.44subdivision 14; 298.28, subdivisions 5, as amended, 7a, as added; 298.75,
209.45subdivisions 1, 2; 383D.41, by adding a subdivision; 383E.21, subdivisions
209.461, 2; 412.131; 469.176, subdivisions 1b, 3; 469.1763, subdivision 3; 469.177,
209.47subdivision 3; 473.665, subdivision 5; 477A.0124, subdivision 5; 477A.014,
209.48subdivision 1; 611.27, subdivisions 13, 15; Minnesota Statutes 2013 Supplement,
209.49sections 116J.8737, subdivision 2, as amended; 116J.8738, subdivisions 2, 3,
209.504; 116V.03; 136A.129, subdivisions 1, 3, 5; 144F.01, subdivision 4; 270B.01,
209.51subdivision 8; 270B.03, subdivision 1; 273.13, subdivision 25; 273.1325,
209.52subdivisions 1, 2; 273.1398, subdivisions 3, 4; 275.70, subdivision 5; 279.37,
209.53subdivision 2; 281.17; 289A.20, subdivision 4; 290.01, subdivisions 19, as
209.54amended, 19b, as amended, 19d, 31, as amended; 290.091, subdivision 2, as
209.55amended; 290.0921, subdivision 3; 290.191, subdivision 5; 290A.03, subdivision
209.5615, as amended; 291.005, subdivision 1, as amended; 297A.61, subdivision 3,
209.57as amended; 297A.68, subdivisions 42, 44; 297A.70, subdivisions 2, 13, 14;
209.58297A.75, subdivisions 1, 2, 3; 297F.05, subdivision 1; 298.018, subdivision
210.11; 298.28, subdivision 10, as amended; 360.531, subdivision 2; 403.162,
210.2subdivision 5; 423A.02, subdivision 3; 423A.022, subdivisions 2, 3; 465.04;
210.3469.1763, subdivision 2; 477A.013, subdivision 8; 477A.03, subdivision 2a;
210.4477A.12, subdivisions 1, 2; 477A.14, subdivision 1; Laws 1980, chapter 511,
210.5sections 1, subdivision 2, as amended; 2, as amended; Laws 1999, chapter 243,
210.6article 14, section 5, subdivision 1; Laws 2005, First Special Session chapter 3,
210.7article 5, sections 38, subdivision 4; 44, subdivisions 3, 5; Laws 2006, chapter
210.8259, article 3, sections 10, subdivisions 3, 4, 5; 11, subdivisions 3, 4, 5; Laws
210.92008, chapter 366, article 10, section 15; Laws 2013, chapter 143, article 8,
210.10sections 3; 22; 23; 27; 37; article 9, section 23; article 11, section 10; Laws 2014,
210.11chapter 150, article 3, section 4; proposing coding for new law in Minnesota
210.12Statutes, chapters 69; 272; 297G; 383A; 469; 477A; repealing Minnesota Statutes
210.132012, sections 16D.02, subdivisions 5, 8; 16D.11, subdivision 2; 270C.53;
210.14270C.991, subdivision 4; 272.02, subdivisions 1, 1a, 43, 48, 51, 53, 67, 72, 82;
210.15272.027, subdivision 2; 272.031; 273.015, subdivision 1; 273.03, subdivision 3;
210.16273.075; 273.13, subdivision 21a; 273.1383; 273.1386; 273.1398, subdivision
210.174b; 273.80; 275.77; 279.32; 281.173, subdivision 8; 281.174, subdivision 8;
210.18281.328; 282.10; 282.23; 287.20, subdivision 4; 287.27, subdivision 2; 289A.56,
210.19subdivision 7; 290.01, subdivisions 4b, 19e, 20e; 290.06, subdivisions 30, 31;
210.20290.0674, subdivision 3; 290.191, subdivision 4; 290.33; 295.52, subdivision
210.217; 297A.666; 297A.68, subdivision 38; 297A.71, subdivisions 4, 5, 7, 9, 10,
210.2217, 18, 20, 32, 41; 297F.08, subdivision 11; 297H.10, subdivision 2; 469.174,
210.23subdivision 10c; 469.175, subdivision 2b; 469.176, subdivision 1i; 469.1764;
210.24469.177, subdivision 10; 469.330; 469.331; 469.332; 469.333; 469.334; 469.335;
210.25469.336; 469.337; 469.338; 469.339; 469.340, subdivisions 1, 2, 3, 5; 469.341;
210.26477A.0124, subdivisions 1, 6; 505.173; Minnesota Statutes 2013 Supplement,
210.27sections 273.1103; 469.340, subdivision 4; Laws 1993, chapter 375, article 9,
210.28section 47; Minnesota Rules, parts 8002.0200, subpart 8; 8007.0200; 8100.0800;
210.298130.7500, subpart 7; 8130.8900, subpart 3; 8130.9500, subparts 1, 1a, 2, 3, 4, 5."
211.1
We request the adoption of this report and repassage of the bill.
211.2
House Conferees:
211.3
.....
.....
211.4
Ann Lenczewski
Jim Davnie
211.5
.....
.....
211.6
Greg Davids
Paul Torkelson
211.7
.....
211.8
Linda Slocum
211.9
Senate Conferees:
211.10
.....
.....
211.11
Rod Skoe
Ann H. Rest
211.12
.....
.....
211.13
Kari Dziedzic
Lyle Koenen
211.14
.....
211.15
Paul E. Gazelka
