1.1CONFERENCE COMMITTEE REPORT ON H. F. No. 31671.2A bill for an act1.3relating 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, 20142.42The Honorable Paul Thissen2.43Speaker of the House of Representatives2.44The Honorable Sandra L. Pappas2.45President of the Senate2.46We, 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 13.2PROPERTY TAX AIDS AND CREDITS3.3    Section 1. [69.022] VOLUNTEER RETENTION STIPEND AID PILOT.3.4    Subdivision 1.Definitions.(a) For purposes of this section, the following terms 3.5have the meanings given them.3.6(b) "Commissioner," unless otherwise specified, means the commissioner of public 3.7safety.3.8(c) "Emergency medical services provider" means a licensee as defined under 3.9section 144E.001, subdivision 8.3.10(d) "Independent nonprofit firefighting corporation" has the same meaning as used in 3.11chapter 424A.3.12(e) "Municipality" has the meaning given in section 69.011, but only if the 3.13municipality uses one or more qualified volunteers to provide service.3.14(f) "Qualified entity" means an emergency medical services provider, independent 3.15nonprofit firefighting corporation, or municipality.3.16(g) "Qualified volunteer" means one of the following types of volunteers who has 3.17provided service, for the entire prior calendar year, to one or more qualified entities:3.18(1) a volunteer firefighter as defined in section 299N.03, subdivision 7;3.19(2) a volunteer ambulance attendant as defined in section 144E.001, subdivision 15; or3.20(3) an emergency medical responder as defined in section 144E.001, subdivision 6, 3.21who provides emergency medical services as a volunteer.3.22(h) "Pilot area" means the following groups of counties:3.23(1) southern Minnesota, consisting of the counties of Faribault, Fillmore, Freeborn, 3.24Houston, and Watonwan;3.25(2) west central Minnesota, consisting of the counties of Chippewa, Kandiyohi, 3.26Redwood, and Renville;3.27(3) central Minnesota, consisting of the counties of Morrison and Todd; and3.28(4) north central Minnesota, consisting of the counties of Beltrami, Clearwater, 3.29and Mahnomen.3.30    Subd. 2.Certification.By June 1 of the calendar year following the year in 3.31which the qualified volunteer provided service, the commissioner shall certify to the 3.32commissioner of revenue each qualified volunteer's name and the qualified entity for which 3.33the qualified volunteer provided service, but the commissioner must remove duplicate 3.34listings of qualified volunteers who provided service to more than one qualified entity so 3.35that each qualified volunteer is listed only once. The commissioner shall also certify to the 3.36commissioner of revenue the total amount of aid to be paid to each qualified entity under 4.1subdivision 3. For qualified entities that are not municipalities, the commissioner must 4.2indicate the municipality to which the aid is to be paid, as designated by the qualified entity.4.3    Subd. 3.Aid payment and calculation.The commissioner of revenue shall pay aid 4.4to qualified entities located in the pilot area to provide funds for the qualified entities to 4.5pay annual volunteer retention stipends to qualified volunteers who provide services to 4.6the qualified entities. A qualified entity is located in the pilot area if it is a municipality 4.7located in whole or in part in the pilot area, or if it is an emergency medical services 4.8provider or independent nonprofit firefighting corporation with its main office located in 4.9the pilot area. The amount of the aid equals $500 multiplied by the number of qualified 4.10volunteers. For purposes of calculating this aid, each individual providing volunteer 4.11service, regardless of the different types of service provided, is one qualified volunteer. 4.12The commissioner of revenue shall pay the aid to qualified entities by July 15 of the 4.13calendar year following the year in which the qualified volunteer provided service. If a 4.14qualified entity is not a municipality, the commissioner shall pay the aid to the treasurer of 4.15the municipality designated by the qualified entity. The treasurer of the municipality shall, 4.16within 30 days of receipt of the aid, transmit the aid to the qualified entity.4.17    Subd. 4.Application.Each year each qualified entity in the pilot area may apply to 4.18the commissioner for aid under this section. The application must be made at the time and 4.19in the form prescribed by the commissioner and must provide sufficient information to 4.20permit the commissioner to determine the applicant's entitlement to aid under this section.4.21    Subd. 5.Payment of stipends.A qualified entity receiving state aid under this 4.22section must pay the aid as retention stipends of $500 to qualified volunteers no later than 4.23September 15 of the year in which the aid was received.4.24    Subd. 6.Report.No later than January 15, 2018, the commissioner must report to 4.25the chairs and ranking minority members of the legislative committees having jurisdiction 4.26over public safety and taxes in the senate and the house of representatives, in compliance 4.27with sections 3.195 and 3.197, on aid paid under this section. The report must include:4.28(1) for each county in the pilot area, a listing of the qualified entities that received 4.29aid in each of the three years of the pilot;4.30(2) the amount of aid paid to each qualified entity that received aid in each of the 4.31three years of the pilot; and4.32(3) for each qualified entity that received aid, the number of qualified volunteers 4.33who were paid stipends in each of the three years of the pilot, and the number of qualified 4.34volunteers in the year preceding the pilot.4.35The report must also provide information on the number of qualified volunteers 4.36providing service to qualified entities in comparison counties in each of the three years of 5.1the pilot and in the year preceding the pilot, and must summarize changes in the number 5.2of qualified volunteers during the year preceding the pilot and during the three years of 5.3the pilot both within the pilot area and in the comparison counties. For purposes of this 5.4subdivision, "comparison counties" means counties designated by the commissioner to 5.5include at least half of the counties that border each group of counties in the pilot area, 5.6as specified in subdivision 1. Qualified entities in comparison counties must provide 5.7information to the commissioner necessary to the report in this subdivision in the form 5.8and manner required by the commissioner.5.9    Subd. 7.Appropriation. An amount sufficient to pay the state aid under this section 5.10is appropriated from the general fund to the commissioner of revenue. 5.11    Subd. 8.Sunset.This section expires for aid payable after calendar year 2017, 5.12except that the reporting requirement in subdivision 6 remains in effect through 2018.5.13EFFECTIVE DATE.This section is effective the day following final enactment 5.14and applies for volunteer service provided beginning in calendar years 2014, 2015, and 5.152016, and for aid payable in calendar years 2015, 2016, and 2017.5.16    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 plus 5.230.1 percent of the property's agricultural credit market value in excess of $115,000, subject 5.24to a maximum reduction credit of $115 $490. 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.5.30EFFECTIVE DATE.This section is effective beginning with taxes payable in 2015.5.31    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 is eligible to have 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 1.6 percent of the property's taxable market value and (ii) the tax on class 6.113a property to 1.9 1.6 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.6.15EFFECTIVE DATE.This section is effective beginning with taxes payable in 2015.6.16    Sec. 4. Minnesota Statutes 2013 Supplement, section 423A.022, subdivision 2, is 6.17amended to read:6.18    Subd. 2. Allocation.(a) Of the total amount appropriated as supplemental state aid:6.19    (1) 58.06558.064 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; and7.1    (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(b) For purposes of this section, the term "municipalities" includes independent 7.4nonprofit firefighting corporations that participate in the voluntary statewide lump-sum 7.5volunteer firefighter retirement plan under chapter 353G or with subsidiary volunteer 7.6firefighter relief associations operating under chapter 424A.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 formula aid in the previous year under subdivision 7.159, and (ii) the aid gap percentage.7.16    (c) For aids payable in 2015 and thereafter, if a city's certified aid from the previous 7.17year is greater than the sum of its unmet need plus its aid adjustment under subdivision 13, 7.18its formula aid is adjusted to equal its unmet need.7.19    (d) No city may have a formula aid amount less than zero. The aid gap percentage 7.20must be the same for all cities subject to paragraph (b).7.21    (e) 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.7.26EFFECTIVE DATE.This section is effective for aids payable in calendar year 7.272015 and thereafter.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 $516,898,012 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 $519,398,012.8.1EFFECTIVE DATE.This section is effective for aids payable in calendar year 8.22015 and thereafter.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) $5.133, multiplied by the total number of acres of wildlife management land, or, 8.17at the county's option, three-fourths of one percent of the appraised value of all wildlife 8.18management land in the county, whichever is greater;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; and8.27    (8) without regard to acreage, and notwithstanding the rules adopted under section 8.2884A.55, $300,000 for local assessments under section 
         84A.55, subdivision 9, that shall be 8.29divided and distributed to the counties containing state-owned lands within a conservation 8.30area in proportion to each county's percentage of the total annual ditch assessments.8.31The commissioner of natural resources shall certify the number of acres and appraised 8.32values for wildlife management lands under clause (3) for calendar year 2013 to the 8.33commissioner of revenue by June 15, 2014. The commissioner of revenue shall make the 8.34payment for any positive difference in the 2013 payment under clause (3) by June 30, 2014.9.1EFFECTIVE DATE.The amendments to clause (3) are effective retroactively 9.2for payments made in calendar year 2013 and later. The amendments to clause (8) are 9.3effective for assessments payable in calendar year 2014 and later.9.4    Sec. 8. Minnesota Statutes 2013 Supplement, section 477A.12, subdivision 2, is 9.5amended to read:9.6    Subd. 2. Procedure.(a) 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; and9.19(4) the number of acres of land utilization project land within each county.9.20(b) 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(c) Each auditor of a county that contains state-owned lands within a conservation 9.25area shall determine and certify to the commissioner of natural resources by May 31 of 9.26the payment year, the county's ditch assessments for state-owned lands subject to section 9.2784A.55, subdivision 9. A joint certification for two or more counties may be submitted to 9.28the commissioner of natural resources through the Consolidated Conservation Counties 9.29Joint Powers Board. The commissioner of natural resources shall certify the ditch 9.30assessments to the commissioner of revenue by June 15 of the payment year. The 9.31commissioner of natural resources shall certify the ditch assessments under this paragraph 9.32for payment year 2013 by June 15, 2014. The commissioner of revenue shall make the 9.33payment for 2013 by June 30, 2014.9.34(d) The commissioner of revenue shall determine the distributions provided for in this 9.35section using: (1) 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; and (2) ditch assessments under paragraph (c), by July 15 of the payment year.10.3EFFECTIVE DATE.This section is effective for assessments payable in calendar 10.4year 2014 and later.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) (1) 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, (2) 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 a township with land that qualifies for payment under section 
         477A.12, 10.20subdivision 1
         , clauses (1), (2), and (5) to (7), ten percent of the payment the county 10.21received for such land within that township. 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 477A.12 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; and10.30(c) (3) 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.10.33EFFECTIVE DATE.This section is effective retroactively for payments made in 10.34calendar year 2013 and thereafter.11.1    Sec. 10. [477A.18] PRODUCTION PROPERTY TRANSITION AID.11.2    Subdivision 1.Definitions.(a) When used in this section, the following terms have 11.3the meanings indicated in this subdivision.11.4(b) "Local unit" means a home rule charter or statutory city, or a town.11.5(c) "Net tax capacity differential" means the positive difference, if any, by which the 11.6local unit's net tax capacity was reduced from assessment year 2014 to assessment year 11.72015 due to the change in the definition of real property in section 272.03, subdivision 11.81, enacted by article 2, section 9. For purposes of determining the net tax capacity 11.9differential, any property in a job opportunity building zone under section 469.314 may 11.10not be included when calculating a local unit's net tax capacity.11.11    Subd. 2.Aid eligibility; payment.(a) If the net tax capacity differential of the local 11.12unit exceeds five percent of its 2015 net tax capacity, the local unit is eligible for transition 11.13aid computed under paragraphs (b) to (f).11.14(b) For aids payable in 2016, transition aid under this section for an eligible local 11.15unit equals (1) the net tax capacity differential, times (2) the jurisdiction's tax rate for 11.16taxes payable in 2015.11.17(c) For aids payable in 2017, transition aid under this section for an eligible local 11.18unit equals 80 percent of (1) the net tax capacity differential, times (2) the jurisdiction's 11.19tax rate for taxes payable in 2016.11.20(d) For aids payable in 2018, transition aid under this section for an eligible local 11.21unit equals 60 percent of (1) the net tax capacity differential, times (2) the jurisdiction's 11.22tax rate for taxes payable in 2017.11.23(e) For aids payable in 2019, transition aid under this section for an eligible local 11.24unit equals 40 percent of (1) the net tax capacity differential, times (2) the jurisdiction's 11.25tax rate for taxes payable in 2018.11.26(f) For aids payable in 2020, transition aid under this section for an eligible local 11.27unit equals 20 percent of (1) the net tax capacity differential, times (2) the jurisdiction's 11.28tax rate for taxes payable in 2019.11.29(g) No aids shall be payable under this section in 2021 and thereafter.11.30(h) The commissioner of revenue shall compute the amount of transition aid payable 11.31to each local unit under this section. On or before August 1 of each year, the commissioner 11.32shall certify the amount of transition aid computed for aids payable in the following year 11.33for each recipient local unit. The commissioner shall pay transition aid to local units 11.34annually at the times provided in section 477A.015.11.35(i) The commissioner of revenue may require counties to provide any data that the 11.36commissioner deems necessary to administer this section.12.1    Subd. 3.Appropriation.An amount sufficient to pay transition aid under this 12.2section is annually appropriated to the commissioner of revenue from the general fund.12.3EFFECTIVE DATE.This section is effective beginning with assessment year 2015.12.4    Sec. 11. [477A.19] AQUATIC INVASIVE SPECIES PREVENTION AID.12.5    Subdivision 1.Definitions.(a) When used in this section, the following terms have 12.6the meanings given them in this subdivision.12.7(b) "Aquatic invasive species" means nonnative aquatic organisms that invade water 12.8beyond their natural and historic range.12.9(c) "Watercraft trailer launch" means any public water access site designed for 12.10launching watercraft.12.11(d) "Watercraft trailer parking space" means a parking space designated for a boat 12.12trailer at any public water access site designed for launching watercraft.12.13    Subd. 2.Distribution.The money appropriated to aquatic invasive species 12.14prevention aid under this section shall be allocated to all counties in the state as follows: 12.1550 percent based on each county's share of watercraft trailer launches and 50 percent based 12.16on each county's share of watercraft trailer parking spaces.12.17    Subd. 3.Use of proceeds.A county that receives a distribution under this section 12.18must use the proceeds solely to prevent the introduction or limit the spread of aquatic 12.19invasive species at all access sites within the county. The county must establish, by 12.20resolution or through adoption of a plan, guidelines for the use of the proceeds. The 12.21guidelines set by the county board may include, but are not limited to, providing for 12.22site-level management, countywide awareness, and other procedures that the county finds 12.23necessary to achieve compliance. The county may appropriate the proceeds directly, 12.24or may use any portion of the proceeds to provide funding for a joint powers board or 12.25cooperative agreement with another political subdivision, a soil and water conservation 12.26district in the county, a watershed district in the county, or a lake association located 12.27in the county. Any money appropriated by the county to a different entity or political 12.28subdivision must be used as required under this section. Each county must submit a 12.29copy of its guidelines for use of the proceeds to the Department of Natural Resources by 12.30December 31 of the year the payments are received.12.31    Subd. 4.Payments.The commissioner of revenue must compute the amount of 12.32aquatic invasive species prevention aid payable to each county under this section. On or 12.33before August 1 of each year, the commissioner shall certify the amount to be paid to 12.34each county in the following year. The commissioner shall pay aquatic invasive species 12.35prevention aid to counties annually at the times provided in section 477A.015. For aid 13.1payable in 2014 only, the commissioner shall certify the amount to be paid to each county 13.2by July 1, 2014, and payment to the counties must be made at the time provided in section 13.3477A.015 for the first installment of local government aid.13.4    Subd. 5.Appropriation.$4,500,000 in 2014, and $10,000,000 each year thereafter, 13.5is appropriated from the general fund to the commissioner of revenue to make the 13.6payments required under this section.13.7EFFECTIVE DATE.This section is effective beginning with aid payable in 2014.13.8    Sec. 12. ADDITIONAL SUPPLEMENTAL AID REVISION FOR OMITTED 13.92013 INDEPENDENT NONPROFIT FIREFIGHTING CORPORATIONS.13.10(a) Notwithstanding any provision of Minnesota Statutes, chapter 423A, to the 13.11contrary, this section modifies the allocation of the police and fire supplemental retirement 13.12state aid under Minnesota Statutes 2013 Supplement, section 423A.022, for October 13.131, 2014.13.14(b) Before the allocation of the police and fire supplemental retirement state aid is 13.15made for October 1, 2014, the commissioner of revenue shall:13.16(1) determine those fire departments that qualified for fire state aid under Minnesota 13.17Statutes 2012, section 69.021, subdivision 7, on October 1, 2013, did not receive a 2013 13.18allocation of police and fire supplemental retirement state aid, and were an independent 13.19nonprofit firefighting corporation; and13.20(2) determine the amount of police and fire supplemental retirement state aid 13.21under Minnesota Statutes 2013 Supplement, section 423A.022, that the fire departments 13.22described in clause (1) would have received on October 1, 2013, if the fire departments 13.23had been included in that allocation.13.24(c) The total amount determined in paragraph (b), clause (2), must be deducted from 13.25the amount available for allocation under Minnesota Statutes 2013 Supplement, section 13.26423A.022, subdivision 2, clause (2), and the commissioner of revenue shall pay to the fire 13.27departments determined in paragraph (b), clause (1), their respective portion of the total as 13.28an additional payment on October 1, 2014.13.29(d) The remaining amount after the deduction of the total amount under paragraph 13.30(c) must be allocated as provided in section 4.13.31    Sec. 13. SUPPLEMENTAL COUNTY PROGRAM AID FOR 2014.13.32(a) Each county whose certified aid for 2014 under Minnesota Statutes, section 13.33477A.0124, is less than the aid it received under that section in 2013 shall be eligible for 14.1supplemental aid in 2014 equal to the difference between the amount received in 2013 14.2and the amount certified for 2014.14.3(b) The aid under this section shall be paid in the same manner and at the same time 14.4as the regular aid payments under Minnesota Statutes, section 477A.0124.14.5(c) The amount necessary to pay supplemental aid under this section is appropriated 14.6from the general fund to the commissioner of revenue.14.7EFFECTIVE DATE.This section is effective July 1, 2014.14.8    Sec. 14. SUPPLEMENTAL AGRICULTURAL CREDIT FOR TAXES PAYABLE 14.9IN 2014 ONLY.14.10    Subdivision 1.Eligibility.Each agricultural homestead qualifying for a credit 14.11for taxes payable in 2014 under Minnesota Statutes, section 273.1384, is eligible for a 14.12supplemental credit equal to the lesser of (i) $205, or (ii) the net property taxes payable on 14.13the property, excluding the taxes attributable to the house, garage, and surrounding one acre 14.14of land. A supplemental credit must not be paid to any property that has delinquent property 14.15taxes. By August 15, 2014, the county auditor must notify the commissioner of revenue of 14.16the name and address of the property owner of each homestead that received an agricultural 14.17credit for taxes payable in 2014, along with the net taxes due upon the agricultural 14.18homestead, whether there are any delinquent taxes on the property, and whatever other 14.19information the commissioner deems necessary, in a form prescribed by the commissioner.14.20    Subd. 2.Payment of supplemental credit.The commissioner must pay 14.21supplemental credit amounts to each qualifying taxpayer by October 15, 2014.14.22    Subd. 3.Property tax statements for taxes payable in 2015.In preparing 14.23proposed property tax notices for taxes payable in 2015 under Minnesota Statutes, section 14.24275.065, and final property tax statements for taxes payable in 2015 under Minnesota 14.25Statutes, section 276.04, the auditor must indicate that the taxpayer may have received a 14.26supplemental credit under this section for taxes payable in 2014.14.27    Subd. 4.Appropriation.The amount necessary to make the payments required 14.28under subdivision 2 is appropriated from the general fund to the commissioner of revenue 14.29for fiscal year 2015.14.30EFFECTIVE DATE.This section is effective the day following final enactment.14.31    Sec. 15. 2013 CITY AID PENALTY FORGIVENESS; CITY OF BLUFFTON.15.1Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the city of 15.2Bluffton shall receive the half of its aid payments for calendar years 2011, 2012, and 15.32013 under Minnesota Statutes, section 477A.013, that were withheld under Minnesota 15.4Statutes, section 477A.017, subdivision 3, provided that the state auditor certifies to the 15.5commissioner of revenue that it received audited financial statements from the city for 15.6calendar years 2010, 2011, and 2012 by December 31, 2013, and for calendar year 2013 15.7by June 30, 2014. The commissioner of revenue shall make a payment of $20,000 with 15.8the first payment of aids under Minnesota Statutes, section 477A.015, in calendar year 15.92014. The commissioner shall pay the remaining amount, totaling $28,151.50, with the 15.10first payment of aids under Minnesota Statutes, section 477A.015, in calendar year 2015. 15.11$20,000 in fiscal year 2015 and $28,151.50 in fiscal year 2016 are appropriated from the 15.12general fund to the commissioner of revenue to make payments under this section.15.13EFFECTIVE DATE.This section is effective the day following final enactment.15.14    Sec. 16. HOMESTEAD CREDIT REFUND AND RENTER PROPERTY TAX 15.15REFUND INCREASE.15.16    Subdivision 1.Homestead credit refund increase.For claims filed based on taxes 15.17payable in 2014, the commissioner shall increase by three percent the refund otherwise 15.18payable under Minnesota Statutes, section 290A.04, subdivision 2.15.19    Subd. 2.Renter property tax refund increase.For claims filed based on rent paid 15.20in 2013, the commissioner shall increase by six percent the refund otherwise payable 15.21under Minnesota Statutes, section 290A.04, subdivision 2a.15.22    Subd. 3.No notification of appeal rights.In adjusting homestead credit refunds 15.23and renter property tax refunds under this section, the commissioner is not required to 15.24provide information concerning appeal rights that ordinarily must be provided whenever 15.25the commissioner adjusts refunds payable under Minnesota Statutes, chapter 290A. 15.26Taxpayers retain all rights to appeal adjustments under this section.15.27    Subd. 4.Appropriation.The amount necessary to make the payments required 15.28under this section is appropriated from the general fund to the commissioner of revenue.15.29EFFECTIVE DATE.This section is effective for refund claims based on taxes 15.30payable in 2014 and rent paid in 2013 only.16.1ARTICLE 216.2PROPERTY TAXES16.3    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 $550,000, 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.16.14EFFECTIVE DATE.This section is effective for assessments in 2015, taxes 16.15payable in 2016, and thereafter.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. 16.32The commissioner shall develop an electronic means to notify interested parties when 16.33electric power generation facilities have filed an application. 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. The 17.9commissioner shall develop an electronic means to notify interested parties when 17.10the commissioner has issued an order exempting property from taxation under this 17.11subdivision. 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.17.13EFFECTIVE DATE.This section is effective the day following final enactment.17.14    Sec. 3. Minnesota Statutes 2012, section 272.02, subdivision 24, is amended to read:17.15    Subd. 24. Electric power photovoltaic devices Solar energy generating systems.17.16Photovoltaic devices Personal property consisting of solar energy generating systems, as 17.17defined in section 
         216C.06, subdivision 16, installed after January 1, 1992, and used to 17.18produce or store electric power are 272.0295, is exempt. If the real property upon which a 17.19solar energy generating system is located is used primarily for solar energy production 17.20subject to the production tax under section 272.0295, the real property shall be classified 17.21as class 3a. If the real property upon which a solar energy generating system is located is 17.22not used primarily for solar energy production subject to the production tax under section 17.23272.0295, the real property shall be classified without regard to the system.17.24EFFECTIVE DATE.This section is effective for assessments in 2015, taxes 17.25payable in 2016, and thereafter.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; and18.6(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 2015, and 18.11before January 1, 2014 2019. 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.18.14EFFECTIVE DATE.This section is effective for assessments in 2015, taxes 18.15payable in 2016, and thereafter.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: (1)  request the commissioner of commerce to make a determination of 18.25the efficiency of the applicant's electric power generation facility; and (2) shall develop 18.26an electronic means to notify interested parties when electric power generation facilities 18.27have filed an application. 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.19.8EFFECTIVE DATE.This section is effective the day following final enactment.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. The commissioner shall develop an 19.17electronic means to notify interested parties of the qualifying facilities and their respective 19.18exclusion percentages after the efficiency determination is made by the Department of 19.19Commerce. 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.19.22EFFECTIVE DATE.This section is effective the day following final enactment.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; and20.1(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; and20.5(4) for any facility that was not certified as eligible for an exclusion under 20.6subdivision 2 for property taxes payable in 2015, the facility must be converted from 20.7coal to an alternative fuel and must have a nameplate capacity prior to conversion of 20.8less than 75 megawatts.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 4.20.14EFFECTIVE DATE.This is section is effective for assessment year 2015 and 20.15thereafter.20.16    Sec. 8. [272.0295] SOLAR ENERGY PRODUCTION TAX.20.17    Subdivision 1.Production tax.A tax is imposed on the production of electricity 20.18from a solar energy generating system used as an electric power source.20.19    Subd. 2.Definitions.(a) For the purposes of this section, the term "solar energy 20.20generating system" means a set of devices whose primary purpose is to produce electricity 20.21by means of any combination of collecting, transferring, or converting solar generated 20.22energy.20.23(b) The total size of a solar energy generating system under this subdivision shall 20.24be determined according to this paragraph. Unless the systems are interconnected with 20.25different distribution systems, the nameplate capacity of a solar energy generating system 20.26shall be combined with the nameplate capacity of any other solar energy generating 20.27system that is:20.28(1) constructed within the same 12-month period as the solar energy generating 20.29system; and20.30(2) exhibits characteristics of being a single development, including but not 20.31limited to ownership structure, an umbrella sales arrangement, shared interconnection, 20.32revenue-sharing arrangements, and common debt or equity financing.20.33In the case of a dispute, the commissioner of commerce shall determine the total size of 20.34the system and shall draw all reasonable inferences in favor of combining the systems.21.1(c) In making a determination under paragraph (b), the commissioner of commerce 21.2may determine that two solar energy generating systems are under common ownership 21.3when the underlying ownership structure contains similar persons or entities, even if the 21.4ownership shares differ between the two systems. Solar energy generating systems are 21.5not under common ownership solely because the same person or entity provided equity 21.6financing for the systems.21.7    Subd. 3.Rate of tax.(a) For a solar energy generating system with a capacity 21.8exceeding one megawatt alternating current, the tax is $1.20 per megawatt-hour.21.9(b) A solar energy generating system with a capacity of one megawatt alternating 21.10current or less is exempt from the tax imposed under this section.21.11    Subd. 4.Reports.An owner of a solar energy generating system subject to tax 21.12under this section shall file a report with the commissioner of revenue annually on or 21.13before January 15 detailing the amount of electricity in megawatt-hours that was produced 21.14by the system in the previous calendar year. The commissioner shall prescribe the form 21.15of the report. The report must contain the information required by the commissioner to 21.16determine the tax due to each county under this section for the current year. If an owner 21.17of a solar energy generating system subject to taxation under this section fails to file the 21.18report by the due date, the commissioner of revenue shall determine the tax based upon 21.19the nameplate capacity of the system multiplied by a capacity factor of 30 percent.21.20    Subd. 5.Notification of tax.(a) On or before February 28, the commissioner of 21.21revenue shall notify the owner of each solar energy generating system of the tax due to 21.22each county for the current year and shall certify to the county auditor of each county in 21.23which the system is located the tax due from each owner for the current year.21.24(b) If the commissioner of revenue determines that the amount of production tax has 21.25been erroneously calculated, the commissioner may correct the error. The commissioner 21.26must notify the owner of the solar energy generating system of the correction and the 21.27amount of tax due to each county and must certify the correction to the county auditor of 21.28each county in which the system is located on or before April 1 of the current year.21.29    Subd. 6.Payment of tax; collection.The amount of production tax determined 21.30under subdivision 5 must be paid to the county treasurer at the time and in the manner 21.31provided for payment of property taxes under section 277.01, subdivision 3, and, if unpaid, 21.32is subject to the same enforcement, collection, and interest and penalties as delinquent 21.33personal property taxes. Except to the extent inconsistent with this section, the provisions 21.34of sections 277.01 to 277.24 and 278.01 to 278.14 apply to the taxes imposed under this 21.35section, and for purposes of those provisions, the taxes imposed under this section are 21.36considered personal property taxes.22.1    Subd. 7.Distribution of revenues.Revenues from the taxes imposed under this 22.2section must be part of the settlement between the county treasurer and the county auditor 22.3under section 276.09. The revenue must be distributed by the county auditor or the county 22.4treasurer to local taxing jurisdictions in which the solar energy generating system is 22.5located as follows: 80 percent to counties; and 20 percent to cities and townships.22.6EFFECTIVE DATE.This section is effective beginning with taxes payable in 2015.22.7    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, unless the structure is primarily used in the production of biofuels, wine, beer, 22.32distilled beverages, or dairy products. 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, or if 22.34such an exterior shell is primarily used for the storage of ingredients or materials used in 23.1the production of biofuels, wine, beer, distilled beverages, or dairy products, or for the 23.2storage of finished biofuels, wine, beer, distilled beverages, or dairy products.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.23.7EFFECTIVE DATE.This section is effective beginning with assessment year 2015.23.8    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); and23.19    (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 eight 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 eight 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; 24.27and24.28(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.24.33EFFECTIVE DATE.This section is effective for taxes payable in 2015, and 24.34applies to homesteads that initially qualified for the exclusion for taxes payable in 2009 24.35and thereafter.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 30, each taxing authority, other than a school district, 25.4shall adopt a proposed budget and county and each home rule charter or statutory city 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) Notwithstanding any law or charter to the contrary, on or before September 15, 25.8each town and each special taxing district shall adopt and certify to the county auditor a 25.9proposed property tax levy for taxes payable in the following year. For towns, the final 25.10certified levy shall also be considered the proposed levy.25.11    (c) 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; or25.20    (2) the maximum levy limitation certified by the commissioner of education 25.21according to section 
         126C.48, subdivision 1.25.22    (c) (d) 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 the date specified in paragraph (a), the city shall be deemed to have certified 25.26its levies for those taxing jurisdictions.25.27    (d) (e) For purposes of this section, "taxing authority" includes all home rule and 25.28statutory cities, towns, counties, school districts, and "special taxing district" means a25.29 special taxing districts district 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) (f) At the meeting at which the a taxing authority, other than a town, adopts its 25.34proposed tax levy under paragraph (a) or (b) this subdivision, 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 
         412.191.26.4EFFECTIVE DATE.This section is effective beginning with taxes payable in 2015.26.5    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 549.09. Amounts confessed 26.9under this authority after December 31, 1990, (a) Except as provided in paragraph (b), 26.10amounts included in composite judgments authorized by section 279.37, subdivision 1, 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 549.09 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. The 26.17interest rate established at the time the judgment is confessed is fixed for the duration of 26.18that judgment.26.19(b) A confession of judgment covering any part of a parcel classified as 1a or 1b, 26.20and used as the homestead of the owner, is subject to interest at the rate provided in 26.21section 279.37, subdivision 2, paragraph (b). This paragraph does not apply to a relative 26.22homestead under section 273.124, subdivision 1, paragraph (c).26.23EFFECTIVE DATE.This section is effective for confession judgments entered 26.24into on or after January 1, 2015.26.25    Sec. 13. Minnesota Statutes 2013 Supplement, section 279.37, subdivision 2, is 26.26amended to read:26.27    Subd. 2. Installment payments.(a) 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(b) For property which qualifies under section 279.03, subdivision 2, paragraph (b), 27.11each year the commissioner shall set the interest rate for offers made under paragraph (a) 27.12at the greater of five percent or two percent above the prime rate charged by banks during 27.13the six-month period ending on September 30 of that year, rounded to the nearest full 27.14percent, provided that the rate must not exceed the maximum annum rate specified under 27.15section 279.03, subdivision 1a. The rate of interest becomes effective on January 1 of the 27.16immediately succeeding year. The commissioner's determination under this subdivision is 27.17not a rule subject to the Administrative Procedure Act in chapter 14, including section 27.1814.386. If a default occurs in the payments under any confessed judgment entered under 27.19this paragraph, the taxes and penalties due are subject to the interest rate specified in 27.20section 279.03.27.21For the purposes of this subdivision:27.22(1) the term "prime rate charged by banks" means the average predominant prime 27.23rate quoted by commercial banks to large businesses, as determined by the Board of 27.24Governors of the Federal Reserve System; and27.25(2) "default" means the cancellation of the confession of judgment due to 27.26nonpayment of the current year tax or failure to make any installment payment required by 27.27this confessed judgment within 60 days from the date on which payment was due.27.28(c) The interest rate established at the time judgment is confessed is fixed for the 27.29duration of the judgment. By October 15 of each year, the commissioner of revenue must 27.30determine the rate of interest as provided under paragraph (b) and, by November 1 of each 27.31year, must certify the rate to the county auditor.27.32(d) A qualified property owner eligible to enter into a second confession of judgment 27.33may do so at the interest rate provided in paragraph (b).27.34(e) Repurchase agreements or contracts for repurchase for properties being 27.35repurchased under section 282.261 are not eligible to receive the interest rate under 27.36paragraph (b).28.1(f) 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 .............., ......."28.19EFFECTIVE DATE.This section shall be effective for confession judgments 28.20entered into on or after January 1, 2015.28.21    Sec. 14. Minnesota Statutes 2012, section 383E.21, subdivision 1, is amended to read:28.22    Subdivision 1. Authority to levy property taxes and 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 may28.26 levy property taxes for public safety improvements and equipment, and 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); and28.30(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.29.5EFFECTIVE DATE.This section is effective retroactively for taxes payable in 29.62013 and thereafter and expires under Minnesota Statutes, section 383E.21, subdivision 3.29.7    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 fund public safety 29.10capital improvements or equipment projects approved by the Anoka County Joint Law 29.11Enforcement Council or 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.29.16EFFECTIVE DATE.This section is effective retroactively for taxes payable in 29.172013 and thereafter and expires under Minnesota Statutes, section 383E.21, subdivision 3.29.18    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 325 364 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.30.12EFFECTIVE DATE.This section is effective the day after the governing body of 30.13the Cedar Lake area water and sanitary sewer district and its chief clerical officer timely 30.14complete their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3.30.15    Sec. 17. HELENA TOWNSHIP, SCOTT COUNTY; REMOVAL OF 30.16SUBORDINATE SERVICE DISTRICT.30.17    Subdivision 1.Application.This section applies to the subordinate service district 30.18established in Helena Township, Scott County, for the Silver Maple Bay Estates, under 30.19Minnesota Statutes, chapter 365A.30.20    Subd. 2.Special provision for removal of the district.Notwithstanding the 30.21requirements of Minnesota Statutes, section 365A.095, subdivision 2, if the district is 30.22removed as provided in Minnesota Statutes, section 365A.095, subdivision 1, after all 30.23outstanding obligations of the district have been paid in full, the town board may vote to 30.24sell or use the surplus of any land or equipment, or the surplus of any tax revenue or service 30.25charge, or any part of it, collected from or associated with the district to connect the owners 30.26of any property within the discontinued district to another public sewer system. Any 30.27surplus not used to connect residents to such sewer system may be distributed equally to 30.28the owners of any property within the discontinued district that were charged the extra tax 30.29or service fee during the most recent tax year for which the tax or service fee was imposed. 30.30Any surplus not refunded under this section must be transferred to the town's general fund.30.31EFFECTIVE DATE.This section is effective the day following final enactment.30.32    Sec. 18. CITY OF JACKSON; LIMITATION ON ABATEMENTS.31.1Notwithstanding the provisions of Minnesota Statutes, section 469.1813, subdivision 31.28, the total amount of property taxes abated by the city of Jackson in any year under 31.3Minnesota Statutes, section 469.1813, may not exceed the greater of (1) ten percent of 31.4the city's net tax capacity for the taxes payable year to which the abatement applies; or 31.5(2) $240,000.31.6EFFECTIVE DATE.This section is effective for taxes payable in 2015 through 31.7taxes payable in 2019.31.8    Sec. 19. STUDY OF ENERGY PRODUCING SYSTEMS.31.9(a) The commissioner of revenue shall prepare a report on the taxation of electric 31.10energy producing systems in the state of Minnesota, including both traditional and 31.11renewable energy sources. For purposes of this study, traditional sources include coal, 31.12nuclear, and natural gas production and renewable sources include, but are not limited to, 31.13solar, wind, biomass, and hydro.31.14(b) The report must, to the extent practicable under the appropriation and the time 31.15available:31.16(1) describe, analyze, and compare the various methods by which the personal and 31.17real property of energy producing systems, using both traditional and renewable energy 31.18sources, are taxed under the property tax;31.19(2) describe, analyze, and compare the availability of any exclusions, exemptions, 31.20or payment-in-lieu of taxation arrangements that apply to the systems and relative tax 31.21and economic effects of the arrangements; 31.22(3) evaluate the extent to which host political subdivisions and communities are 31.23compensated under the existing Minnesota property tax system for the external costs 31.24that the various types of production facilities impose on the host political subdivisions 31.25and communities;31.26(4) compare the net cost of property and other taxes per unit of energy produced in 31.27Minnesota compared to its border states, for both traditional and renewable energy sources;31.28(5) develop and evaluate alternative tax or fee systems for appropriately 31.29compensating host political subdivisions and communities for the external costs imposed 31.30by the facilities; and31.31(6) make recommendations for the taxation of solar energy producing systems, 31.32including both real and personal property.31.33(c) The commissioner shall report the findings of the study to the committees of the 31.34house of representatives and senate having jurisdiction over taxes by February 1, 2015, 31.35and file the report as required by Minnesota Statutes, section 3.195.32.1(d) $150,000 is appropriated from the general fund in fiscal year 2015 to the 32.2commissioner of revenue for purposes of preparing the report under this section. This is a 32.3onetime appropriation and is not added to the base budget.32.4EFFECTIVE DATE.This section is effective the day following final enactment.32.5    Sec. 20. STUDY OF NORTH DAKOTA OIL PRODUCTION; IMPACT ON 32.6MINNESOTA.32.7(a) $250,000 in fiscal year 2015 is appropriated from the general fund to the 32.8commissioner of employment and economic development, in consultation with the 32.9commissioner of revenue and the commissioner of transportation, to finance a study and 32.10analysis of the effects of current and projected oil production in North Dakota on the 32.11Minnesota economy with special focus on the northwestern region of Minnesota and area 32.12border cities as provided in paragraph (b).32.13(b) The study and analysis must address:32.14(1) current and projected economic, fiscal, and demographic effects and issues;32.15(2) direct and indirect costs and benefits and positive and negative effects, including 32.16those upon workforce, taxation, and transportation, including the transportation of 32.17passengers and agricultural products by railroads; and32.18(3) economic challenges and opportunities for economic growth or diversification.32.19(c) The study must be objective, evidence-based, and designed to produce empirical 32.20data. Study data must be utilized to formulate policy recommendations on how the state, 32.21the northwestern region of the state, and border cities may respond to the challenges and 32.22opportunities for economic growth and financial investment that may be derived from the 32.23regional economic changes that are the result of oil production in North Dakota.32.24(d) For the purposes of this section, "border cities" has the meaning given in 32.25Minnesota Statutes, section 469.1731.32.26(e) The study and analysis must be conducted by an independent entity with 32.27demonstrated knowledge in the following areas:32.28(1) the economy and demography of Minnesota;32.29(2) the domestic and foreign oil industry; and 32.30(3) technologies, markets, and geopolitical factors that have an impact on current 32.31and future oil production in the region.32.32(f) The commissioner shall report on the findings and recommendations of the study 32.33to the committees of the house of representatives and senate having jurisdiction over 32.34economic development, workforce issues, and taxation by February 15, 2015.33.1EFFECTIVE DATE.This section is effective the day following final enactment.33.2ARTICLE 333.3SALES, USE, AND EXCISE TAXES33.4    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); and33.16(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; or33.21(2) a public utility, as defined in section 
         336B.01; or33.22(3) primarily engaged in lobbying; gambling; entertainment; professional sports; 33.23political consulting; leisure; hospitality; or professional services provided by attorneys, 33.24accountants, business consultants, physicians, or health care consultants.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.33.27EFFECTIVE DATE.This section is effective the day following final enactment.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; and34.9(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 90  days after its filing. 34.13Failure by the commissioner to take action within the 60-day 90-day 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; or34.23(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 (c) The business must increase the number of full-time 34.26equivalent employees in greater Minnesota from the time the business subsidy agreement 34.27is executed by two employees or ten percent, whichever is greater.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 seven-year period 34.36beginning on the first day of the calendar month immediately following execution of 35.1the business subsidy agreement the date that the commissioner informs the business of 35.2the award of the benefit.35.3EFFECTIVE DATE.This section is effective the day following final enactment.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, up to $2,000,000 annually and $10,000,000 during the total period of the 35.8agreement, 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. The 35.10commissioner has discretion to set the maximum amounts of the annual and total sales tax 35.11exemption allowed for each qualifying business as part of the business subsidy agreement.35.12EFFECTIVE DATE.This section is effective the day following final enactment.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 $250,000 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 81.435.24 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 $250,000 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; or36.1(2) $120,000 $250,000 or more, during a fiscal year ending June 30, 2009 2013, 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 81.4 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.36.13EFFECTIVE DATE.This section is effective for taxes remitted after May 30, 2014.36.14    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 36.16underpayment. For payments made after December 31, 2006 2013, if a vendor is 36.17required by law to submit an estimation of June sales tax liabilities and 9081.4 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 81.4 percent of the preceding May's liability or 90 81.4 percent of the 36.22average monthly liability for the previous calendar year.36.23EFFECTIVE DATE.This section is effective for taxes remitted after May 30, 2014.36.24    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, digital audio works, digital audiovisual works, 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 13.37.3EFFECTIVE DATE.This section is effective the day following final enactment.37.4    Sec. 7. Minnesota Statutes 2012, section 297A.67, is amended by adding a subdivision 37.5to read:37.6    Subd. 33.Presentations accessed as digital audio and audiovisual works.37.7The charge for a live or prerecorded presentation, such as a lecture, seminar, 37.8workshop, or course, where participants access the presentation as a digital audio 37.9work or digital audiovisual work, and are connected to the presentation via the 37.10Internet, telecommunications equipment or other device that transfers the presentation 37.11electronically, is exempt if:37.12(1) participants and the presenter, during the time that participants access the 37.13presentation, are able to give, receive, and discuss the presentation with each other, 37.14although the amount of interaction and when in the presentation the interaction occurs 37.15may be limited by the presenter; and37.16(2) for those presentations where participants are given the option to attend the 37.17same presentation in person:37.18(i) any limitations on the amount of interaction and when it occurs during the 37.19presentation are the same for those participants accessing the presentation electronically 37.20as those attending in person; and37.21(ii) the admission to the in person presentation is not subject to tax under this chapter.37.22EFFECTIVE DATE.This section is effective for sales and purchases made after 37.23June 30, 2014.37.24    Sec. 8. Minnesota Statutes 2012, section 297A.68, is amended by adding a subdivision 37.25to read:37.26    Subd. 3a.Coin-operated entertainment and amusement devices. Coin-operated 37.27entertainment and amusement devices including, but not limited to, fortune-telling 37.28machines, cranes, foosball and pool tables, video and pinball games, batting cages, rides, 37.29photo or video booths, and jukeboxes, are exempt when purchased by retailers selling 37.30admission to places of amusement and making available amusement devices as provided 37.31in section 297A.61, subdivision 3, paragraph (g), clause (1). Coin-operated entertainment 37.32and amusement devices do not include vending machines, lottery devices, or gaming 37.33devices as described in chapters 297E and 349.38.1EFFECTIVE DATE.This section is effective for sales and purchases made after 38.2June 30, 2014.38.3    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, except that computer software maintenance 38.8agreements are exempt for purchases made after June 30, 2013. 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 or 38.16qualified refurbished data center 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. The 48-month period begins no sooner than July 1, 2012, except that 38.24costs for computer software maintenance agreements purchased before July 1, 2013, are 38.25not included in determining if the $30,000,000 threshold has been met;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,; environmental 38.30control, computer software, and energy efficiency improvements; and38.31(ii) building improvements; and38.32(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; and39.1(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 thea qualified data center or qualified 39.10refurbished data center, 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 or qualified refurbished data center, 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 thea maintenance and operation of the qualified data center 39.26or qualified refurbished data center.39.27(f) A qualified data center or qualified refurbished data center 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(i)(1) The commissioner of employment and economic development must certify 39.36to the commissioner of revenue, in a format approved by the commissioner of revenue, 40.1when a qualified data center has met the requirements under paragraph (c) or a qualified 40.2refurbished data center has met the requirements under paragraph (d). The certification 40.3must provide the following information regarding each qualified data center or qualified 40.4refurbished data center:40.5(i) the total square footage amount;40.6(ii) the total amount of construction or refurbishment costs and the total amount of 40.7qualifying investments in enterprise information technology equipment and computer 40.8software; and40.9(iii) the beginning and ending of the applicable period under either paragraph (c) or 40.10(d) in which the qualifying expenditures and purchases under item (ii) were made, but in 40.11no case shall the period begin before July 1, 2012; 40.12(2) Any refund for sales tax paid on qualifying purchases under this subdivision must 40.13not be issued unless the commissioner of revenue has received the certification required 40.14under clause (1) either from the commissioner of employment and economic development 40.15or the qualified data center or qualified refurbished data center claiming the refund; and40.16(3) The commissioner of employment and economic development must annually 40.17notify the commissioner of revenue of the qualified data centers that are projected to meet 40.18the requirements under paragraph (c) and the qualified refurbished data centers that are 40.19projected to meet the requirements under paragraph (d) in each of the next four years. The 40.20notification must provide the information required under clause (1), items (i) to (iii), for 40.21each qualified data center or qualified refurbished data center.40.22EFFECTIVE DATE.This section is effective the day following final enactment.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 at the facility in greater 40.31Minnesota identified in the business subsidy agreement; and40.32(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. The total amount refunded for a facility over the certification 41.9period is limited to the amount listed in the business subsidy agreement. 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. Notwithstanding section 297A.75, 41.17subdivision 4, for an eligible refund claim that carries over to a subsequent fiscal year, the 41.18interest on the amount carried over must be paid on the refund no sooner than from 90 41.19days after July 1 of the fiscal year in which funds are available for the eligible claim.41.20EFFECTIVE DATE.This section is effective the day following final enactment.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) notwithstanding paragraph (d), the sales and purchases by the Metropolitan 42.2Council, for its purchases of vehicles and repair parts to equip operations provided for in 42.3section 
         473.4051 are exempt through December 31, 2016;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; and42.6(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; or42.23(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 a liquor store, gas or 42.26electric utility, solid waste hauling service, solid waste recycling service, landfill, golf 42.27course, marina, campground, cafe, or laundromat.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 For purposes of the exemption granted under this 42.32subdivision, "local governments" means has the following meaning:42.33(1) for the period prior to January 1, 2016, local governments means statutory or 42.34home rule charter cities, counties, and townships;42.35(2) for the period of January 1, 2016, to December 31, 2016, local governments 42.36means statutory or home rule charter cities, counties, and townships; special districts as 43.1defined under section 6.465, except for the Metropolitan Council under sections 473.123 43.2to 473.549; any instrumentality of a statutory or home rule charter city, county, or 43.3township as defined in section 471.59; and any joint powers board or organization created 43.4under section 471.59; and43.5(3) beginning January 1, 2017, local governments means statutory or home rule 43.6charter cities, counties, and townships; special districts as defined under section 6.465; any 43.7instrumentality of a statutory or home rule charter city, county, or township as defined in 43.8section 471.59; and any joint powers board or organization created under section 471.59.43.9(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.43.16EFFECTIVE DATE.This section is effective for sales and purchases made after 43.17June 30, 2014.43.18    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; and43.32(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 to the first 44.2$20,000 of the gross annual receipts of the organization from fund-raising do not exceed 44.3$10,000; and44.4(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 $20,000 limit.44.19EFFECTIVE DATE.This section is effective for sales and purchases made after 44.20December 31, 2014.44.21    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; and44.28(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; and45.11(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(d) For purposes of this subdivision, "fund-raising events" means activities of 45.20limited duration, not regularly carried out in the normal course of business, that attract 45.21patrons for community, social, and entertainment purposes, such as auctions, bake sales, 45.22ice cream socials, block parties, carnivals, competitions, concerts, concession stands, 45.23craft sales, bazaars, dinners, dances, door-to-door sales of merchandise, fairs, fashion 45.24shows, festivals, galas, special event workshops, sporting activities such as marathons and 45.25tournaments, and similar events. Fund-raising events do not include the operation of a 45.26regular place of business in which services are provided or sales are made during regular 45.27hours such as bookstores, thrift stores, gift shops, restaurants, ongoing Internet sales, 45.28regularly scheduled classes, or other activities carried out in the normal course of business.45.29EFFECTIVE DATE.This section is effective the day following final enactment.45.30    Sec. 14. Minnesota Statutes 2012, section 297A.70, is amended by adding a 45.31subdivision to read:45.32    Subd. 19.Nonprofit snowmobile clubs; machinery and equipment.Sales of 45.33tangible personal property to a nonprofit snowmobile club that is used primarily and 45.34directly for the grooming of state or grant-in-aid snowmobile trails are exempt. The 45.35exemption applies to grooming machines, attachments, other associated accessories, 46.1and repair parts. A nonprofit snowmobile club is eligible for the exemption under this 46.2subdivision if it received, in the current year or in the previous three-year period, a state 46.3grant-in-aid maintenance and grooming grant administered by the Department of Natural 46.4Resources by applying for the grant with a local unit of government sponsor.46.5EFFECTIVE DATE.This section is effective for sales and purchases made after 46.6June 30, 2014.46.7    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: rate of46.13(1) on cigarettes weighing not more than three pounds per thousand, 141.5 mills, 46.14or 14.15 cents on each such cigarette; and46.15(2) on cigarettes weighing more than three pounds per thousand, 283 mills on each 46.16such cigarette.46.17EFFECTIVE DATE.This section is effective July 1, 2014.46.18    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 $250,000 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 81.4 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 81.4 percent of the actual June liability; or46.32    (2) 90 81.4 percent of the preceding May's May liability.46.33EFFECTIVE DATE.This section is effective for taxes remitted after May 30, 2014.47.1    Sec. 17. Minnesota Statutes 2012, section 297G.03, is amended by adding a 47.2subdivision to read:47.3    Subd. 5.Microdistillery credit.(a) A qualified distiller producing distilled spirits is 47.4entitled to a tax credit of $1.33 per liter on 100,000 liters sold in any fiscal year beginning 47.5July 1. A qualified distiller may take the credit on the 18th day of each month, but the total 47.6credit allowed may not exceed in any fiscal year the lesser of:47.7(1) the liability for tax; or47.8(2) $133,000.47.9(b) For purposes of this subdivision, "qualified distiller" means a microdistillery 47.10qualifying under section 340A.101, subdivision 17a, in the calendar year immediately 47.11preceding the calendar year for which the credit under this subdivision is claimed.47.12EFFECTIVE DATE.This section is effective July 1, 2014.47.13    Sec. 18. [297G.032] MICRODISTILLERIES.47.14A microdistillery, licensed under section 340A.301, is a wholesaler for purposes 47.15of the excise tax imposed on distilled spirits given by the microdistillery as samples or 47.16sold in cocktail rooms permitted under chapter 340A. Returns must be made in a form 47.17and manner prescribed by the commissioner, and must contain any other information 47.18required by the commissioner.47.19EFFECTIVE DATE.This section is effective July 1, 2014.47.20    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 $250,000 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 81.4 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 81.4 percent of the actual June liability; or47.33    (2) 90 81.4 percent of the preceding May liability.48.1EFFECTIVE DATE.This section is effective for taxes remitted after May 30, 2014.48.2    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:

48.5Base PriceTax48.648.7Under $499,999 Not over $500,000$10048.848.9over $500,000 to $999,999 but not over $1,000,000$20048.1048.11over $1,000,000 to $2,499,999 but not over $2,500,000$2,00048.1248.13over $2,500,000 to $4,999,999 but not over $5,000,000$4,00048.1448.15over $5,000,000 to $7,499,999 but not over $7,500,000$7,50048.1648.17over $7,500,000 to $9,999,999 but not over $10,000,000$10,00048.1848.19over $10,000,000 to $12,499,999 but not over $12,500,000$12,50048.2048.21over $12,500,000 to $14,999,999 but not over $15,000,000$15,00048.2248.23over $15,000,000 to $17,499,999 but not over $17,500,000$17,50048.2448.25over $17,500,000 to $19,999,999 but not over $20,000,000$20,00048.2648.27over $20,000,000 to $22,499,999 but not over $22,500,000$22,50048.2848.29over $22,500,000 to $24,999,999 but not over $25,000,000$25,00048.3048.31over $25,000,000 to $27,499,999 but not over $27,500,000$27,50048.3248.33over $27,500,000 to $29,999,999 but not over $30,000,000$30,00048.3448.35over $30,000,000 to $39,999,999 but not over $40,000,000$50,00048.36over $40,000,000 and over$75,000

48.37EFFECTIVE DATE.This section is effective July 1, 2014, and applies to aircraft 48.38tax due on or after that date.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. (a) 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 one and 49.4three-quarter 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 paragraph 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(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes, 49.21section 477A.016, or any other law, ordinance, or city charter provision to the contrary, 49.22the city of Duluth may, by ordinance, impose an additional sales tax of up to one-half of 49.23one percent on sales transactions which are described in Minnesota Statutes 2000, section 49.24297A.01, subdivision 3, clause (c). This tax expires when the city council determines 49.25that the tax imposed under this paragraph, along with the tax imposed under section 49.2622, paragraph (b), has produced revenues sufficient to pay the debt service on bonds 49.27in a principal amount of no more than $18,000,000, plus issuance and discount costs, 49.28to finance capital improvements to public facilities to support tourism and recreational 49.29activities in that portion of the city west of 34th Avenue West.49.30(c) The city of Duluth may sell and issue up to $18,000,000 in general obligation 49.31bonds under Minnesota Statutes, chapter 475, plus an additional amount to pay for the 49.32costs of issuance and any premiums. The proceeds may be used to finance capital 49.33improvements to public facilities that support tourism and recreational activities in the 49.34portion of the city west of 34th Avenue West, as described in paragraph (b). The issuance 49.35of the bonds is subject to the provisions of Minnesota Statutes, chapter 475, except no 49.36election shall be required unless required by the city charter. The bonds shall not be 50.1included in computing net debt. The revenues from the taxes that the city of Duluth may 50.2impose under paragraph (b) and under section 22, paragraph (b), may be pledged to pay 50.3principal of and interest on such bonds.50.4EFFECTIVE DATE.This section is effective the day after the governing body of 50.5the city of Duluth and its chief clerical officer comply with Minnesota Statutes, section 50.6645.021, subdivisions 2 and 3.50.7    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 50.11MOTELS.50.12    (a) 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(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes, 50.27section 477A.016, or any other law, ordinance, or city charter provision to the contrary, 50.28the city of Duluth may, by ordinance, impose an additional sales tax of up to one-half 50.29of one percent on the gross receipts from the sale of lodging for periods of less than 50.3030 days in hotels and motels located in the city. This tax expires when the city council 50.31first determines that the tax imposed under this paragraph, along with the tax imposed 50.32under section 21, paragraph (b), has produced revenues sufficient to pay the debt 50.33service on bonds in a principal amount of no more than $18,000,000, plus issuance and 50.34discount costs, to finance capital improvements to public facilities to support tourism and 50.35recreational activities in that portion of the city west of 34th Avenue West.51.1EFFECTIVE DATE.This section is effective the day after the governing body of 51.2the city of Duluth and its chief clerical officer comply with Minnesota Statutes, section 51.3645.021, subdivisions 2 and 3.51.4    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 15 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.51.11EFFECTIVE DATE.This section is effective the day after the governing body of 51.12the city of Albert Lea and its chief clerical officer comply with Minnesota Statutes, section 51.13645.021, subdivisions 2 and 3.51.14    Sec. 24. Laws 2006, chapter 259, article 3, section 10, subdivision 3, is amended to read:51.15    Subd. 3. Use of revenues.(a) 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(b) In addition to the projects authorized in paragraph (a), the city of Baxter may, if 51.22approved by the voters at an election under subdivision 5, paragraph (b), allocate up to an 51.23additional $40,000,000 of the revenues received from the taxes authorized by subdivisions 51.241 and 2 to a capital infrastructure fund. Money from this fund may only be used to 51.25finance (1) sanitary sewer, storm sewer, and water projects, (2) transportation safety 51.26improvements, and (3) improvements to the Brainerd Lakes Area Airport.51.27EFFECTIVE DATE.This section is effective the day after the governing body of 51.28the city of Baxter and its chief clerical officer comply with Minnesota Statutes, section 51.29645.021, subdivisions 2 and 3.51.30    Sec. 25. Laws 2006, chapter 259, article 3, section 10, subdivision 4, is amended to read:51.31    Subd. 4. Bonds.(a) 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, paragraph 52.3(a). 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(b) The city of Baxter, pursuant to the approval of the voters at the 2014 general 52.8election to extend the tax under this section, may issue general obligation bonds of the city, 52.9in one or more series, in the aggregate principal amount not to exceed (1) $32,000,000 52.10plus an amount equal to the costs of issuance of the bonds to finance the projects listed 52.11in subdivision 3, paragraph (b), clauses (1) and (2), and (2) $8,000,000 plus an amount 52.12equal to the costs of the issuance of the bonds to finance the project listed in subdivision 3, 52.13paragraph (b), clause (3). The debt represented by the bonds is not included in computing 52.14any debt limitations applicable to the city, and the levy of taxes required by Minnesota 52.15Statutes, section 475.61, to pay the principal of and interest on the bonds is not subject to 52.16any levy limitation or included in computing or applying any levy limitation applicable to 52.17the city of Baxter.52.18EFFECTIVE DATE.This section is effective the day following final enactment.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.(a) 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, paragraph (a). 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(b) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any 52.29other contrary provision of law, ordinance, or city charter, the city of Baxter may, by 52.30ordinance, extend the taxes authorized under subdivisions 1 and 2 beyond the termination 52.31date in paragraph (a) if approved by the voters of the city at a general election held 52.32in 2014. The question put to the voters must indicate that an affirmative vote would 52.33extend the imposition of the taxes through 2037 or until an additional $40,000,000, 52.34plus an amount equal to interest and issuance costs associated with bonds issued under 52.35subdivision 4, paragraph (b), above the initial amount authorized to pay for $15,000,000 53.1in bonds and associated bond cost and projects, listed in subdivision 3, paragraph (a), is 53.2raised. If extended under this paragraph, the taxes authorized in subdivisions 1 and 2 will 53.3terminate at the earlier of (1) when an additional $40,000,000, plus an amount equal to 53.4interest and issuance costs associated with bonds issued under subdivision 4, paragraph 53.5(b), above the amount authorized under paragraph (a), is raised, or (2) December 31, 2037.53.6EFFECTIVE DATE.This section is effective the day after the governing body of 53.7the city of Baxter and its chief clerical officer comply with Minnesota Statutes, section 53.8645.021, subdivisions 2 and 3.53.9    Sec. 27. Laws 2006, chapter 259, article 3, section 11, subdivision 3, is amended to read:53.10    Subd. 3. Use of revenues.(a) 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(b) In addition to the projects authorized in paragraph (a), the city of Brainerd may, 53.18if approved by the voters at an election under subdivision 5, paragraph (b), spend up to an 53.19additional $15,000,000 from revenues raised from the taxes authorized in subdivisions 1 53.20and 2 on the following projects:53.21(1) an upgraded waste treatment facility jointly serving the cities of Brainerd and 53.22Baxter;53.23(2) with any funds not needed for the project in clause (1), water infrastructure 53.24improvements; and53.25(3) with any funds not needed for the projects in clauses (1) and (2), trail 53.26improvements.53.27EFFECTIVE DATE.This section is effective the day after the governing body of 53.28the city of Brainerd and its chief clerical officer comply with Minnesota Statutes, section 53.29645.021, subdivisions 2 and 3.53.30    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, 54.2paragraph (a). 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.54.6EFFECTIVE DATE.This section is effective the day following final enactment.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.(a) 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(b) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any 54.17other contrary provision of law, ordinance, or city charter, the city of Brainerd may, by 54.18ordinance, extend the taxes authorized under subdivisions 1 and 2 beyond the termination 54.19date in paragraph (a) if approved by the voters of the city at a general election held in 2014. 54.20The question put to the voters must indicate that an affirmative vote would extend the 54.21imposition of the taxes for an additional 18 years or until an additional $15,000,000 above 54.22the initial amount authorized to pay for $22,030,000 in bonds is raised. If extended under 54.23this paragraph, the taxes authorized in subdivisions 1 and 2 will terminate at the earlier of 54.24(1) when an additional $15,000,000 above the amount authorized under paragraph (a) is 54.25raised, or (2) 18 years after the taxes would have expired under paragraph (a).54.26EFFECTIVE DATE.This section is effective the day after the governing body of 54.27the city of Brainerd and its chief clerical officer comply with Minnesota Statutes, section 54.28645.021, subdivisions 2 and 3.54.29    Sec. 30. Laws 2013, chapter 143, article 8, section 22, the effective date, is amended to 54.30read:54.31EFFECTIVE DATE.This section is effective for sales and purchases made after 54.32June 30, 2013. Subdivision 7, paragraph (c), clause (2), is effective for sales and purchases 54.33made after June 30, 2013. The provisions of subdivision 7, paragraph (b), and paragraph 55.1(c), clause (8), are effective retroactively for sales and purchases made after April 1, 55.22009. Any vendor who paid sales or use tax on items now exempt under subdivision 7, 55.3paragraph (b), and paragraph (c), clause (8), that were sold after April 1, 2009, and before 55.4July 1, 2013, may apply for a refund of the sales or use tax paid in the manner provided 55.5in Minnesota Statutes, section 289A.50, subdivision 1, but only if the vendor did not 55.6collect and remit sales tax on the items for which a refund is claimed. Interest on the 55.7refund shall be paid at the rate in Minnesota Statutes, section 270C.405, from 90 days 55.8after the refund claim is filed with the commissioner of revenue. The amount to make the 55.9refunds is annually appropriated to the commissioner of revenue from the general fund. 55.10Notwithstanding limitations on claims for refunds under Minnesota Statutes, section 55.11289A.40, claims may be filed with the commissioner until June 30, 2015.55.12EFFECTIVE DATE.This section is effective the day following final enactment.55.13    Sec. 31. Laws 2013, chapter 143, article 8, section 23, the effective date, is amended to 55.14read:55.15EFFECTIVE DATE.This section is effective for sales and purchases made after 55.16June 30, 2013. This section is effective for sales and purchases made after June 30, 2013, 55.17except that the provision regarding accessories and supplies purchased in a transaction 55.18covered by Medicare or Medicaid that are not already exempt under Minnesota Statutes, 55.19section 297A.67, subdivision 7, and the provision defining "Medicare" and "Medicaid" 55.20are effective retroactively for sales and purchases made after April 1, 2009. Any vendor 55.21who paid sales or use tax on accessories and supplies purchased in a transaction covered 55.22by Medicare or Medicaid that are not already exempt under Minnesota Statutes, section 55.23297A.67, subdivision 7, and that were sold after April 1, 2009, and before July 1, 2013, 55.24may apply for a refund of the sales or use tax paid in the manner provided in Minnesota 55.25Statutes, section 289A.50, subdivision 1, but only if the vendor did not collect and remit 55.26sales tax on the accessories and supplies for which a refund is claimed. Interest on the 55.27refund shall be paid at the rate in Minnesota Statutes, section 270C.405, from 90 days 55.28after the refund claim is filed with the commissioner of revenue. The amount to make the 55.29refunds is annually appropriated to the commissioner of revenue from the general fund. 55.30Notwithstanding limitations on claims for refunds under Minnesota Statutes, section 55.31289A.40, claims may be filed with the commissioner until June 30, 2015.55.32EFFECTIVE DATE.This section is effective the day following final enactment.56.1    Sec. 32. Laws 2013, chapter 143, article 8, section 27, the effective date, is amended to 56.2read:56.3EFFECTIVE DATE.For the purpose of qualifying under paragraphs (c) and (d), 56.4this section is effective retroactively for sales and purchases made after June 30, 201356.5 2012. For the purpose of determining eligibility for the exemptions provided in this 56.6section, this section is effective for sales and purchases of computer software maintenance 56.7agreements made after June 30, 2013, and for sales and purchases for either a "qualified 56.8refurbished data center" or a "qualified data center" made after June 30, 2013, except that 56.9if the data center qualifies as a "qualified data center" as defined in Laws 2011, First 56.10Special Session chapter 7, article 3, section 7, then the exemptions provided in this section, 56.11other than for computer software maintenance agreements, continue to be effective for 56.12sales and purchases made after June 30, 2012.56.13EFFECTIVE DATE.This section is effective the day following final enactment.56.14    Sec. 33. Laws 2013, chapter 143, article 8, section 37, the effective date, is amended to 56.15read:56.16EFFECTIVE 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. Applications for 56.19refunds on purchases exempt under this section must not be filed before June 30, 2015.56.20EFFECTIVE DATE.This section is effective the day following final enactment.56.21    Sec. 34. CITY OF PROCTOR; LOCAL TAXES AUTHORIZED.56.22    Subdivision 1.Food and beverage tax authorized.Notwithstanding Minnesota 56.23Statutes, section 297A.99 or 477A.016, or any ordinance, city charter, or other provision 56.24of law, the city of Proctor may, by ordinance, impose a sales tax of up to one percent on 56.25the gross receipts of all food and beverages sold by a restaurant or place of refreshment, 56.26as defined by resolution of the city, that is located within the city. For purposes of this 56.27section, "food and beverages" include retail on-sale of intoxicating liquor and fermented 56.28malt beverages.56.29    Subd. 2.Use of proceeds from authorized taxes.The proceeds of the taxes 56.30imposed under subdivision 1 must be used by the city to fund: (1) construction and 56.31improvement of walking and bicycle trails; (2) a multiuse civic center facility and parking 57.1improvements; and (3) improvements related to the redevelopment and realignment of a 57.2road through the fairgrounds property ceded to the city of Proctor by the city of Duluth.57.3    Subd. 3.Collection, administration, and enforcement.The city may enter into 57.4an agreement with the commissioner of revenue to administer, collect, and enforce the 57.5taxes under subdivision 1. If the commissioner agrees to collect the tax, the provisions 57.6of Minnesota Statutes, section 297A.99, related to collection, administration, and 57.7enforcement, and Minnesota Statutes, section 270C.171, apply.57.8EFFECTIVE DATE.This section is effective the day after the governing body of 57.9the city of Proctor and its chief clerical officer comply with Minnesota Statutes, section 57.10645.021, subdivisions 2 and 3.57.11    Sec. 35. DONATED MATERIALS FOR A LIBRARY EXPANSION.57.12Building materials and supplies purchased and donated by a private entity and 57.13used in the construction of an addition to a city library facility occurring before July 1, 57.142015, are exempt.57.15EFFECTIVE DATE.This section is effective for materials and supplies used in the 57.16construction of the addition between April 1, 2014, and July 1, 2015.57.17    Sec. 36. VALIDATION OF PRIOR ACT; AUTHORIZATION.57.18Notwithstanding the time limits in Minnesota Statutes, section 645.021, the city of 57.19Albert Lea may approve Laws 2005, First Special Session chapter 3, article 5, section 38, 57.20as amended by Laws 2006, chapter 259, article 3, section 6, and file its approval with the 57.21secretary of state by June 15, 2014. If approved as authorized under this section, actions 57.22undertaken by the city pursuant to the approval of the voters on November 8, 2005, and 57.23otherwise in accordance with Laws 2005, First Special Session chapter 3, article 5, section 57.2438, as amended by Laws 2006, chapter 259, article 3, section 6, are validated.57.25EFFECTIVE DATE.This section is effective the day following final enactment.57.26    Sec. 37. SALES TO INSTRUMENTALITIES OF THE STATES.57.27Sales of the following items to an organization defined by the Internal Revenue 57.28Service as an instrumentality of each, and all, of the states relating to the holding of an 57.29annual meeting in this state are exempt:57.30(1) prepared food, soft drinks, and candy, as defined in Minnesota Statutes, section 57.31297A.61, subdivisions 31 to 33; and58.1(2) alcoholic beverages, as defined in Minnesota Statutes, section 297A.67, 58.2subdivision 2.58.3EFFECTIVE DATE.This section is applicable to sales and purchases made after 58.4June 30, 2014, and before January 1, 2015.58.5    Sec. 38. VOLUNTARY COMPLIANCE PROGRAM; ANIMAL SHELTERS.58.6(a) Any Minnesota nonprofit organization that is primarily engaged in the business 58.7of rescuing, sheltering, and finding homes for unwanted animals, for periods prior to the 58.8organization registering to collect and remit sales and use tax under Minnesota Statutes, 58.9chapter 297A, shall not be liable for any state or local uncollected and unpaid sales and use 58.10tax, penalties, or interest incurred in providing animal rescue, shelter, and home placement 58.11services, if the nonprofit organization registers through the voluntary compliance program 58.12to collect and remit sales and use tax under Minnesota Statutes, chapter 297A, before 58.13January 1, 2015.58.14(b) The voluntary compliance program under paragraph (a) also applies to 58.15organizations described in paragraph (a) that received notice of the commencement of an 58.16audit prior to registering to collect and remit sales and use tax under Minnesota Statutes, 58.17chapter 297A, as long as the audit is not finally resolved and the organization registers 58.18before January 1, 2015. Paragraph (a) shall not apply to sales and use taxes already paid or 58.19remitted to the state or to sales taxes already collected by the organization.58.20EFFECTIVE DATE.This section is effective the day following final enactment.58.21ARTICLE 458.22INCOME AND ESTATE TAXES58.23    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; or59.23(iii) researching or developing a proprietary product, process, or service in the fields 59.24of agriculture, tourism, forestry, mining, manufacturing, or transportation; or59.25(iii) (iv) 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); and60.14(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; and60.24(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; and61.4(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; and61.9(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.61.11EFFECTIVE DATE.This section is effective for taxable years beginning after 61.12December 31, 2013.61.13    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 $15,000,00061.19$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; or62.5(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; or63.31    (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.63.34EFFECTIVE DATE.This section is effective the day following final enactment.64.1    Sec. 3. Minnesota Statutes 2012, section 116J.8737, is amended by adding a 64.2subdivision to read:64.3    Subd. 5a.Promotion of credit in greater Minnesota.(a) By July 1, 2014, 64.4the commissioner shall develop a plan to increase awareness of and use of the credit 64.5for investments in qualified greater Minnesota businesses and minority-owned and 64.6women-owned qualified small businesses with the goal that the portion of the credit 64.7reserved for investments in qualified greater Minnesota businesses and minority-owned 64.8and women-owned qualified small businesses is allocated in full to those investments.64.9(b) Beginning with the legislative report due on March 15, 2015, under subdivision 64.109, the commissioner shall report on its plan under this subdivision and the results achieved.64.11EFFECTIVE DATE.This section is effective the day following final enactment.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, or graduate 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, 64.23including a graduate degree.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.64.27EFFECTIVE DATE.This section is effective the day following final enactment.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 eight 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; and65.5(3) (2) 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 eight weeks; and65.18(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; and65.27(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.65.30EFFECTIVE DATE.This section is effective the day following final enactment.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 2016, 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; and66.3(3) the cost of administering the program.66.4(b) By February 1, 2016 2017, 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.66.9EFFECTIVE DATE.This section is effective the day following final enactment.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; and66.20    (2) section 
         273.1315.66.21EFFECTIVE DATE.This section is effective the day following final enactment.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; and67.10(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; and67.13(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, or67.20(ii) any person authorized by the tribal government; and67.21(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.67.24(9) in the case of a gift return, the donor.67.25EFFECTIVE DATE.This section is effective the day following final enactment.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 March 26, 2014.67.31EFFECTIVE DATE.This section is effective retroactively for taxable years 67.32beginning after December 31, 2012.68.1    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; and68.19    (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 March 68.2926, 2014, 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.68.33EFFECTIVE DATE.This section is effective the day following final enactment, 68.34except the changes incorporated by federal changes are effective retroactively at the same 68.35time as the changes were effective for federal purposes.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; and69.9    (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; and69.13(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; and69.21    (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; or71.14(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 by71.20(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; and71.28(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 the71.35 number of personal exemptions claimed by the taxpayer in the computation of federal 71.36taxable incomeallowed under section 151(b) and (c) of the Internal Revenue Code 72.1multiplied by the dollar amount for personal exemptions under section 151(d)(1) and (2) 72.2of the Internal Revenue Code, as adjusted for inflation by section 151(d)(4) of the Internal 72.3Revenue Code, and by 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; and72.14(D) $75,000 in the case of a married individual filing a separate return; and72.15(iv) the thresholds shall be increased by an amount equal to:72.16(A) such dollar amount, multiplied by72.17(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; and72.20(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, 2010.72.25EFFECTIVE DATE.This section is effective retroactively for taxable years 72.26beginning after December 31, 2012.72.27    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 including 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 and "active service" excludes includes 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; and75.32(20) the amount of the phaseout of personal exemptions under section 151(d) of 75.33the Internal Revenue Code.; and75.34(21) to the extent included in federal taxable income, the amount of qualified 75.35transportation fringe benefits described in section 132(f)(1)(A) and (B) of the Internal 75.36Revenue Code. The subtraction is limited to the lesser of the amount of qualified 76.1transportation fringe benefits received in excess of the limitations under section 76.2132(f)(2)(A) of the Internal Revenue Code for the year or the difference between the 76.3maximum qualified parking benefits excludable under section 132(f)(2)(B) of the Internal 76.4Revenue Code minus the amount of transit benefits excludable under section 132(f)(2)(A) 76.5of the Internal Revenue Code.76.6EFFECTIVE DATE.This section is effective for taxable years beginning after 76.7December 31, 2013.76.8    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 March 26, 2014. 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, 2010.76.17EFFECTIVE DATE.This section is effective the day following final enactment, 76.18except the changes incorporated by federal changes are effective retroactively at the same 76.19time as the changes were effective for federal purposes.76.20    Sec. 14. Minnesota Statutes 2012, section 290.081, is amended to read:76.21290.081 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 shall receive from the other state as provided in the 77.4agreement under paragraph (d) the amount of such loss. 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)(1) 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(2) 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 dates, 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(3) For agreements entered into before October 1, 2014, the annual compensation 77.18required under paragraph (c) must equal at least the net revenue loss minus $1,000,000 77.19per fiscal year.77.20(4) For agreements entered into after September 30, 2014, the annual compensation 77.21required under paragraph (c) must equal the net revenue loss per fiscal year.77.22(5) For the purposes of clauses (3) and (4), "net revenue loss" means the difference 77.23between the amount of Minnesota income taxes Minnesota forgoes by not taxing 77.24Wisconsin residents on income subject to reciprocity and the credit Minnesota would 77.25have been required to give under section 290.06, subdivision 22, to Minnesota residents 77.26working in Wisconsin had there not been reciprocity.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.78.7EFFECTIVE DATE.This section is effective the day following final enactment.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; and78.22    (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); and78.34    (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), and (21); and79.11(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 3.79.23EFFECTIVE DATE.This section is effective for taxable years beginning after 79.24December 31, 2013.79.25    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 March 26, 2014.79.29EFFECTIVE DATE.This section is effective retroactively for property tax refunds 79.30based on property taxes payable after December 31, 2013, and rent paid after December 79.3131, 2012.79.32    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, 80.7increased by the value of any property in which the decedent had a qualifying income 80.8interest for life and for which an election was made under section 291.03, subdivision 1d, 80.9for Minnesota estate tax purposes, but was not made for federal estate tax purposes.80.10    (3) "Internal Revenue Code" means the United States Internal Revenue Code of 80.111986, as amended through March 1March 26, 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; and80.34    (iii) a qualified work of art, as defined in section 2503(g)(2) of the Internal Revenue 80.35Code, owned by a nonresident decedent and that is normally kept or located in this state 80.36because it is on loan to an organization, qualifying as exempt from taxation under section 81.1501(c)(3) of the Internal Revenue Code, that is located in Minnesota, the situs of the art is 81.2deemed to be outside of Minnesota, notwithstanding the provisions of item (ii); and81.3    (iv) 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, including qualified works of art, 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; or81.20(iv) a trust to the extent the property is includible in the decedent's federal gross 81.21estate; but excludes81.22    (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.81.25EFFECTIVE DATE.This section is effective retroactively for estates of decedents 81.26dying after December 31, 2013.81.27    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) increased by the value of any property in which the decedent had a qualifying 81.33income interest for life and for which an election was made under section 291.03, 81.34subdivision 1d, for Minnesota estate tax purposes, but was not made for federal estate 81.35tax purposes;82.1(2) increased by the additions under subdivision 2; and82.2(2) (3) decreased by the subtraction under subdivision 3.82.3EFFECTIVE DATE.This section is effective retroactively for estates of decedents 82.4dying after December 31, 2013.82.5    Sec. 19. Minnesota Statutes 2012, section 291.031, as added by Laws 2014, chapter 82.6150, article 3, section 7, is amended to read:82.7291.031 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 291.03 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; or82.13(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.82.19EFFECTIVE DATE.This section is effective retroactively for estates of decedents 82.20dying after December 31, 2013.82.21    Sec. 20. Laws 2014, chapter 150, article 3, section 4, the effective date, is amended to 82.22read:82.23EFFECTIVE DATE.This section is effective retroactively for estates of decedents 82.24dying after December 31, 2013, and for taxable gifts made after June 30, 2013.82.25EFFECTIVE DATE.This section is effective the day following final enactment.82.26    Sec. 21. DEFINITION OF TAXABLE GIFT FOR DECEDENTS DYING 82.27BEFORE JANUARY 1, 2014.82.28For estates of decedents dying before January 1, 2014, "taxable gift" as used by 82.29Minnesota Statutes, section 291.005, subdivision 1, paragraph (4), means a transfer by gift 82.30which is included in taxable gifts for federal gift tax purposes under the following sections 82.31of the Internal Revenue Code: section 529; section 530; section 2501(a)(4); section 2503; 83.1sections 2511 to 2514; and sections 2516 to 2519; less the deductions allowed in sections 83.22522 to 2524 of the Internal Revenue Code, and after excluding taxable gifts of any 83.3property that has its situs outside Minnesota and including taxable gifts of any property 83.4that has its situs in Minnesota and were not disclosed to federal taxing authorities.83.5EFFECTIVE DATE.This section is effective retroactively for taxable gifts made 83.6after June 30, 2013.83.7    Sec. 22. TEMPORARY READING CREDIT.83.8    Subdivision 1.Reading credit.(a) A taxpayer is allowed a credit, up to $2,000, 83.9against the tax imposed by Minnesota Statutes, chapter 290. The credit amount equals 75 83.10percent of the amount of eligible expenses paid by a taxpayer who is a parent or guardian 83.11of a qualifying child:83.12(1) who has been evaluated for determination of a specific learning disability under 83.13Minnesota Rules, part 3525.1341, and was not found to meet the criteria under Minnesota 83.14Rules, part 3525.1341, subpart 2, to have a specific learning disability; and83.15(2) for whom the evaluation indicated a determination of a deficiency in basic 83.16reading skills, reading comprehension, or reading fluency that impair a child to meet 83.17expected age or grade-level standards.83.18(b) For purposes of this subdivision, the following definitions apply:83.19(1) "eligible expenses" means actual expenses, less the amount of expenses used to 83.20claim the credit under Minnesota Statutes, section 290.0674, subdivision 1, paid by the 83.21taxpayer for tutoring, instruction, or treatment by an instructor and not compensated by 83.22insurance, pretax account, or otherwise, for purposes of meeting the academic standards 83.23required under Minnesota Statutes, section 120B.021;83.24(2) "instructor" means a person qualifying under Minnesota Statutes, section 83.25120A.22, subdivision 10, clauses (1) to (5), who is not a lineal ancestor or sibling of 83.26the qualifying child; 83.27(3) "treatment" means instruction that:83.28(i) teaches language decoding skills in a systematic manner;83.29(ii) uses recognized diagnostic assessments to determine what intervention would be 83.30most appropriate for individual students; and83.31(iii) employs a research-based method; and83.32(4) "qualifying child" has the meaning given in section 32(c)(3) of the Internal 83.33Revenue Code.84.1(c) A taxpayer claiming the credit under this subdivision must provide documentation 84.2of eligibility for the credit in a form and manner prescribed by the commissioner of 84.3revenue in consultation with the commissioner of education. The documentation under 84.4this paragraph must not disclose any information other than that necessary to prove 84.5eligibility for the credit allowed under this subdivision.84.6(d) For a nonresident or part-year resident, the credit determined under this section 84.7must be allocated based on the percentage calculated under Minnesota Statutes, section 84.8290.06, subdivision 2c, paragraph (e).84.9(e) The amount used to claim the credit under this section must be excluded from 84.10any amount subtracted from federal taxable income under section 290.01, subdivision 84.1119b, clause (3).84.12    Subd. 2.Assignment of refunds.The provisions of Minnesota Statutes, section 84.13290.0679, except for subdivision 1, paragraphs (a) and (b), apply to the assignment of 84.14refunds authorized under this section. For purposes of assignment of refund under this 84.15section, a "qualifying taxpayer" means a taxpayer qualified to receive a credit under this 84.16section. In no case shall any condition for assignment require disclosure of the specific 84.17findings of an evaluation for a specific learning disability.84.18    Subd. 3.Credit to be refundable.If the amount of total credits that the claimant is 84.19eligible to receive under this section exceeds the claimant's tax liability under Minnesota 84.20Statutes, chapter 290, the commissioner of revenue shall refund the excess to the claimant.84.21    Subd. 4.Appropriation.An amount sufficient to pay the refunds authorized under 84.22this section is appropriated to the commissioner of revenue from the general fund.84.23    Subd. 5.Report.By March 1, 2016, the commissioner of revenue, in compliance 84.24with Minnesota Statutes, sections 3.195 and 3.197, must provide a report to the chairs and 84.25ranking minority members of the committees of the house of representatives and senate 84.26with jurisdiction over taxes and education on:84.27(1) the number of taxpayers claiming the credit under this section and the average 84.28amount of credits claimed; and84.29(2) the administration of the credit, including recommendations for ensuring 84.30compliance.84.31EFFECTIVE DATE.This section is effective for taxable years beginning after 84.32December 31, 2013, and before January 1, 2015 only.85.1ARTICLE 585.2MINERALS TAXES85.3    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 preliminary 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),;85.12(b) by September 5 of 2014 and each subsequent year, determine the areawide 85.13portion of the levy for each governmental unit by multiplying the preliminary areawide 85.14portion of the levy for each governmental unit times a fraction, the numerator of which is 85.15the difference between the sum of the preliminary areawide levies for all governmental 85.16units in the area minus the school fund allocation and the denominator is the sum of the 85.17preliminary areawide levy for all governmental units in the area; and85.18(b) (c) 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.85.21EFFECTIVE DATE.This section is effective for taxes payable in 2015 and 85.22thereafter.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 the preliminary85.27 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 preliminary 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.85.32EFFECTIVE DATE.This section is effective for taxes payable in 2015 and 85.33thereafter.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, or within which the concentrate was produced. If the mining 86.8and concentration, or different steps in either process, are carried on in more than one 86.9taxing district, the commissioner shall apportion equitably the proceeds among the 86.10cities and towns by attributing 50 percent of the proceeds of the tax to the operation of 86.11mining or extraction, and the remainder to the concentrating plant and to the processes of 86.12concentration, and with respect to each thereof giving due consideration to the relative 86.13extent of the respective operations performed in each taxing district;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, or within which the concentrate was produced. If the mining 86.18and concentration, or different steps in either process, are carried on in more than one 86.19school district, distribution among the school districts must be based on the apportionment 86.20formula prescribed in clause (1);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, or within which the concentrate was produced. If the mining and 86.33concentration, or different steps in either process, are carried on in more than one county, 86.34distribution among the counties must be based on the apportionment formula prescribed in 86.35clause (1), provided that any county receiving distributions under this clause shall pay one 86.36percent of its proceeds to the Range Association of Municipalities and Schools;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 three percent to the Douglas J. Johnson economic protection trust fund; and87.6    (9) five seven percent to the taconite environmental protection fund.87.7    The proceeds of the tax shall be distributed on July 15 each year.87.8EFFECTIVE DATE.This section is effective July 1, 2014.87.9    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 for distributions in 2015 through 87.122023, and 26.05 cents per taxable ton for distributions beginning in 2024 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 for distributions in 2015 through 2023, and 15.525 87.25cents per taxable ton for distributions beginning in 2024 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 2.87.30EFFECTIVE DATE.This section is effective for distributions beginning in 2015 87.31and thereafter.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 88.2account. 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) (i) for distributions in 2015 through 2023,  ten cents per taxable ton of the tax 88.6imposed under section 
         298.24; and (ii) for distributions beginning in 2024, five cents per 88.7taxable ton of the tax imposed under section 298.24;88.8(2) the amount as determined under section 
         298.17, paragraph (b), clause (3); and88.9(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 1 (i) for distributions in 2015, an amount equal to two-thirds 88.12of the increased tax proceeds attributable to the increase in the implicit price deflator as 88.13provided in section 298.24, subdivision 1, with the remaining one-third to be distributed to 88.14the Douglas J. Johnson Economic Protection Trust Fund;88.15(ii) for distributions in 2016, an amount equal to two-thirds of the sum of the 88.16increased tax proceeds attributable to the increase in the implicit price deflator as provided 88.17in section 298.24, subdivision 1, for distribution years 2015 and 2016, with the remaining 88.18one-third to be distributed to the Douglas J. Johnson Economic Protection Trust Fund; and88.19(iii) for distributions in 2017, an amount equal to two-thirds of the sum of the 88.20increased tax proceeds attributable to the increase in the implicit price deflator as provided 88.21in section 298.24, subdivision 1, for distribution years 2015, 2016, and 2017, with the 88.22remaining one-third to be distributed to the Douglas J. Johnson Economic Protection 88.23Trust Fund; and88.24(4) any other amount as provided by law.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 school 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 April 3, 2006; 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.88.34EFFECTIVE DATE.This section is effective for distributions beginning in 2015 88.35and thereafter.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.89.20EFFECTIVE DATE.This section is effective for distributions beginning in 2015 89.21and thereafter.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 2024.90.24EFFECTIVE DATE.This section is effective the day following final enactment.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 economic development 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; and91.29    (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 
         298.2213.91.34EFFECTIVE DATE.This section is effective the day following final enactment. 91.35Upon enactment, the city of Aitkin must release all funds under this section to St. Louis 91.36County acting as fiscal agent by July 1, 2014.92.1    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 2.0 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) (17) 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) (18) 0.5 cents per ton for the city of Keewatin for an electrical substation and 93.2water line replacements;93.3(20) (19) 3.3 cents per ton for the city of Virginia for Fourth Street North 93.4infrastructure and Franklin Park improvement; and93.5(21) (20) 0.5 cents per ton to the city of Grand Rapids for an economic development 93.6project.93.7EFFECTIVE DATE.This section is effective the day following final enactment.93.8    Sec. 10. REALLOCATION OF BOND PAYMENTS.93.9In each year subsequent to the year in which the following appropriations terminate 93.10under their terms, an amount equal to the amount payable in 2013 based upon 2012 93.11production of the terminating appropriation is appropriated from the same sources listed 93.12in this section to the Iron Range school consolidation and cooperatively operated school 93.13account under Laws 2014, chapter 150, article 6, section 13:93.14(1) Laws 1996, chapter 412, article 5, section 21, subdivision 3, appropriation for 93.15bonds of Independent School District No. 166, Cook County;93.16(2) Laws 1996, chapter 412, article 5, section 20, subdivision 2, appropriation for 93.17bonds of Independent School District No. 696, Ely;93.18(3) Laws 1996, chapter 412, article 5, section 20, subdivision 2, appropriation for 93.19bonds of Independent School District No. 706, Virginia:93.20(4) Laws 1996, chapter 412, article 5, section 20, subdivision 2, appropriation for 93.21bonds of Independent School District No. 2154, Eveleth-Gilbert;93.22(5) Laws 1998, chapter 398, article 4, section 17, subdivision 2, appropriation for 93.23bonds of Independent School District No. 712, Mountain Iron-Buhl;93.24(6) Laws 2000, chapter 489, article 5, section 24, subdivision 1, appropriation for 93.25bonds of Independent School District No. 695, Chisholm;93.26(7) Laws 2000, chapter 489, article 5, section 25, subdivision 1, appropriation for 93.27bonds of Independent School District No. 316, Greenway-Coleraine;93.28(8) Laws 2000, chapter 489, article 5, section 26, subdivision 1, appropriation for 93.29bonds of Independent School District No. 381, Lake Superior; and93.30(9) Laws 2008, chapter 154, article 8, section 18, appropriation for bonds of 93.31Independent School District No. 2711, Mesabi East.93.32EFFECTIVE DATE.This section is effective beginning with the distribution 93.33in 2015.94.1    Sec. 11. 2014 DISTRIBUTION ONLY.94.2For the 2014 distribution, a special fund is established to receive 18.84 cents per ton of 94.3any excess of the balance remaining after distribution of amounts required under Minnesota 94.4Statutes, section 298.28, subdivision 6. The following amounts are allocated to St. Louis 94.5County acting as the fiscal agent for the recipients for the following specific purposes:94.6(1) 1.3 cents per ton to the city of Silver Bay for a water project under Highway 61;94.7(2) 0.5 cents per ton to the city of Grand Rapids for soil and landscape remediation 94.8at the Reif Center;94.9(3) 0.65 cents per ton to the city of LaPrairie for sewer, water, and road improvements 94.10to accommodate business expansion in the city;94.11(4) 0.78 cents per ton to the city of Cohasset for an infrastructure project;94.12(5) 0.39 cents per ton to Balkan Township for a salt storage building and 94.13energy-efficient cold storage building;94.14(6) 3.0 cents per ton to the city of McKinley to construct a water line from the city 94.15of Gilbert or the city of Biwabik to the city of McKinley's distribution center in order to 94.16secure a potable water source for the city, provided that the city of McKinley secures 94.17the remainder of the project costs from other sources, and expires three years following 94.18the date of distribution;94.19(7) 6.5 cents per ton to the Iron Range Resources and Rehabilitation Board for 94.20township block grants to be distributed by the board;94.21(8) 0.5 cents per ton to the city of Marble for a water main and looping project;94.22(9) 0.65 cents per ton to the city of Nashwauk for an infrastructure project;94.23(10) 0.35 cents per ton to the city of Babbitt for demolition of a public building;94.24(11) 0.65 cents per ton to the city of Hoyt Lakes for a storm water project;94.25(12) 0.65 cents per ton to the city of Aurora for an infrastructure project;94.26(13) 0.65 cents per ton to the town of Silver Creek for an infrastructure project;94.27(14) 0.5 cents per ton to the city of Calumet for an infrastructure project;94.28(15) 0.5 cents per ton to Nashwauk Township for the Nashwauk town hall;94.29(16) 0.5 cents per ton to the city of Biwabik for emergency repair of a wastewater 94.30treatment project;94.31(17) 0.47 cents per ton to the city of Cuyuna for improvements to city properties and 94.32facilities, including construction, electrical, water, sewer, and site preparation; and94.33(18) 0.3 cents per ton to Morse Township for a recreational trail.94.34EFFECTIVE DATE.This section is effective for the 2014 distribution, and all 94.35payments must be made separately and within ten days of the date of the August 2014 94.36payment.95.1ARTICLE 695.2LOCAL DEVELOPMENT95.3    Section 1. [383A.155] HOUSING IMPROVEMENT AREAS.95.4    Subdivision 1.Powers of a housing improvement authority.The Ramsey County 95.5Housing and Redevelopment Authority shall have the powers of a city under sections 95.6428A.11 to 428A.21 to establish housing improvement areas in Ramsey County.95.7    Subd. 2.Definitions.(a) For purposes of exercising the powers in sections 428A.11 95.8to 428A.21, references in those sections to the terms in paragraphs (b) to (e) have the 95.9meanings given them for purposes of this section.95.10(b) "Mayor" means the chair of the Ramsey County Housing and Redevelopment 95.11Authority.95.12(c) "Council" or "governing body of the city" means the Ramsey County Housing 95.13and Redevelopment Authority.95.14(d) "City clerk" means the person designated by the Ramsey County Housing and 95.15Redevelopment Authority to carry out the duties of the city clerk under sections 428A.11 95.16to 428A.21.95.17(e) "Enabling ordinance" means a resolution adopted under subdivision 3 by the 95.18Ramsey County Housing and Redevelopment Authority.95.19    Subd. 3.Establishment of housing improvement areas.The Ramsey County 95.20Housing and Redevelopment Authority may adopt a resolution establishing one or 95.21more housing improvement areas within the county under this section. The Ramsey 95.22County Housing and Redevelopment Authority shall send a copy of each petition for the 95.23establishment of a housing improvement area to the city in which the proposed housing 95.24improvement area is located. The public hearings under sections 428A.13 and 428A.14 95.25may be held at the times and places determined by the Ramsey County Housing and 95.26Redevelopment Authority, except that they must be held at least 30 days after the date the 95.27applicable petition was sent to the city. If the city council adopts a resolution opposing 95.28the establishment within 30 days of the date the copy of the petition was sent to the city 95.29under this subdivision, the Ramsey County Housing and Redevelopment Authority may 95.30not establish the proposed housing improvement area.95.31    Subd. 4.Applicability.Except as otherwise provided in this section, sections 95.32428A.11 to 428A.21 apply to the establishment of a housing improvement area by the 95.33Ramsey County Housing and Redevelopment Authority.95.34EFFECTIVE DATE.This section is effective the day following final enactment.96.1    Sec. 2. Minnesota Statutes 2012, section 383D.41, is amended by adding a subdivision 96.2to read:96.3    Subd. 11.Tax credit allocation threshold criteria.(a) In addition to the projects 96.4described in section 462A.222, subdivision 3, paragraph (d), the Dakota County 96.5Community Development Agency may allocate tax credits in the first round for up to three 96.6projects of the following type: new construction or substantial rehabilitation multifamily 96.7housing projects that are not restricted to persons who are 55 years of age or older and that 96.8are located within one of the following areas at the time a reservation for tax credits is made:96.9(1) an area within one-half mile of a completed or planned light rail transit way, bus 96.10rapid transit way, or commuter rail station;96.11(2) an area within one-fourth mile from any stop along a high-frequency local bus line;96.12(3) an area within one-half mile from a bus stop or station on a high-frequency 96.13express route;96.14(4) an area within one-half mile from a park and ride lot; or96.15(5) an area within one-fourth mile of a high-service public transportation fixed 96.16route stop.96.17(b) For purposes of this section, the following terms have the meaning given them:96.18(1) "high-frequency local bus line" means a local bus route providing service at 96.19least every 15 minutes and running between 6:00 a.m. and 7:00 p.m. on weekdays and 96.20between 9:00 a.m. and 6:00 p.m. on Saturdays;96.21(2) "high-frequency express route" means an express route with bus service 96.22providing six or more trips during at least one of the peak morning hours between 6:00 96.23a.m. and 9:00 a.m. and every ten minutes during the peak morning hour; and96.24(3) "high-service public transportation fixed route stop" means a stop serviced 96.25between 6:00 a.m. and 7:00 p.m. on weekdays and 9:00 a.m. and 6:00 p.m. on Saturdays 96.26and with service approximately every 30 minutes during that time.96.27EFFECTIVE DATE.This section is effective beginning with the 2015 allocation of 96.28tax credit.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; or97.14(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. For a redevelopment district 97.22certified after April 20, 2009, and before June 30, 2012, the five-year periods described in 97.23paragraph (a) are extended to eight years after certification of the district. This extension is 97.24provided primarily to accommodate delays in development activities due to unanticipated 97.25economic circumstances.97.26EFFECTIVE DATE.This section is effective for districts for which the request for 97.27certification was made after April 20, 2009.97.28    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 any98.16 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).99.8EFFECTIVE DATE.This section is effective for districts for which the request for 99.9certification is made after June 30, 2014.99.10    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(b) Upon completion of the repair, restoration, or replacement of the bridge, the city 99.21may use any remaining funds in the account for expenditures as provided in this paragraph 99.22and that use is deemed to be a permitted use of the increments, regardless of whether it is 99.23for improvements within the project area. If the city elects to use the authority under this 99.24paragraph, the remaining funds must be spent for the following items and improvements 99.25in the following order of priority:99.26(1) signage for the Old Cedar Avenue bridge that is consistent with the number, 99.27design, size, and placement of the city's signage for the Normandale Lake District;99.28(2) kiosks and other wayfinding aids for users of the Old Cedar Avenue bridge and 99.29immediately adjacent parkland areas; and99.30(3) bicycle and pedestrian trail improvements that provide access to the Old Cedar 99.31Avenue bridge.99.32    (b) (c) 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.100.1EFFECTIVE DATE.This section is effective without local approval under 100.2Minnesota Statutes, section 645.023, subdivision 1, paragraph (a).100.3    Sec. 6. CITY OF BAXTER; TAX INCREMENT FINANCING DISTRICT; 100.4PROJECT REQUIREMENT.100.5    Subdivision 1.Addition of parcels to district.Notwithstanding Minnesota 100.6Statutes, sections 469.174, subdivision 12; 469.176, subdivision 4c; or any other law to 100.7the contrary, the governing body of the city of Baxter may elect to expand the boundaries 100.8of the Isle Drive Tax Increment Financing District to include the real property described as 100.9tax parcel number 034120010010009 in the city of Baxter, Crow Wing County, Minnesota.100.10    Subd. 2.Original tax capacity of district.Upon addition of the property described 100.11in subdivision 1 to the Isle Drive Tax Increment Financing District, the Crow Wing 100.12County auditor shall increase the original tax capacity of Isle Drive Tax Increment 100.13Financing District by the amount required by Minnesota Statutes, section 469.177, except 100.14as provided in subdivision 3.100.15    Subd. 3.Prior planned improvements.Minnesota Statutes, section 469.177, 100.16subdivision 4, does not apply to the property described in subdivision 1 added to the Isle 100.17Drive Tax Increment Financing District.100.18    Subd. 4.Use of increments.Tax increments and other revenues derived from any 100.19portion of the Isle Drive Tax Increment Financing District, as expanded under this section, 100.20may be used to reimburse or otherwise pay for allowable expenditures under the plan 100.21budget for the Isle Drive Tax Increment Financing District, as amended in accordance 100.22with Minnesota Statutes, section 469.175, subdivision 4.100.23    Subd. 5.Approval and effect of modification.If the governing body of the 100.24city elects to exercise the authority provided in subdivision 1 to modify the district, the 100.25following conditions apply:100.26(1) the city must comply with Minnesota Statutes, section 469.175, subdivision 4; and100.27(2) beginning with the subsequent calendar year, except as otherwise provided 100.28in this section, the district is subject to the provisions of Minnesota Statutes, sections 100.29469.174 to 469.1794, as if the request for certification of the entire district was made on 100.30December 30, 2011, the date the original request for certification for the Isle Drive Tax 100.31Increment Financing District was made.101.1EFFECTIVE DATE.This section is effective upon approval by the governing body 101.2of the city of Baxter and upon compliance by the city with Minnesota Statutes, section 101.3645.021, subdivisions 2 and 3.101.4    Sec. 7. CITY OF EAGAN; TAX INCREMENT FINANCING.101.5(a) Effective for taxes payable in 2015, the city of Eagan may elect to compute tax 101.6increment for the Cedar Grove Tax Increment Financing District using the current local tax 101.7rate, notwithstanding the provisions of Minnesota Statutes, section 469.177, subdivision 1a.101.8(b) The requirements of Minnesota Statutes, section 469.1763, subdivision 3, that 101.9activities must be undertaken within a five-year period from the date of certification 101.10of a tax increment financing district, is considered to be met for the Cedar Grove Tax 101.11Increment Financing District in the city of Eagan if the activities are undertaken within 13 101.12years from the date of certification of the district.101.13(c) Notwithstanding the provisions of Minnesota Statutes, section 469.176, 101.14subdivision 1b, or any other law to the contrary, the city of Eagan may collect tax increment 101.15from the Cedar Grove Tax Increment Financing District through December 31, 2032.101.16EFFECTIVE DATE.Paragraphs (a) and (b) are effective upon compliance by the 101.17governing body of the city of Eagan with the requirements of Minnesota Statutes, section 101.18645.021, subdivision 3. Paragraph (c) is effective upon compliance by the governing 101.19bodies of the city of Eagan, Dakota County, and Independent School District No. 191 with 101.20the requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and 645.021, 101.21subdivision 3.101.22    Sec. 8. CITY OF EDINA; TAX INCREMENT FINANCING.101.23    Subdivision 1.Authority to create districts.(a) The governing body of the city of 101.24Edina or its development authority may establish one or more tax increment financing 101.25housing districts in the Southeast Edina Redevelopment Project Area, as the boundaries 101.26exist on March 31, 2014.101.27(b) The authority to request certification of districts under this section expires on 101.28June 30, 2017.101.29    Subd. 2.Rules governing districts.(a) Housing districts established under this 101.30section are subject to the provisions of Minnesota Statutes, sections 469.174 to 469.1794, 101.31except as otherwise provided in this subdivision.102.1(b) Notwithstanding the provisions of Minnesota Statutes, section 469.176, 102.2subdivision 1b, no increment must be paid to the authority after 20 years after receipt by 102.3the authority of the first increment from a district established under this section.102.4(c) Notwithstanding the provisions of Minnesota Statutes, section 469.1761, 102.5subdivision 3, for a residential rental project, the city may elect to substitute "20 percent" 102.6for "40 percent" in the 40-60 test under section 142(d)(1)(B) of the Internal Revenue Code 102.7in determining the applicable income limits.102.8(d) The provisions of Minnesota Statutes, section 469.1761, subdivision 3, apply for 102.9a 25-year period beginning on the date of certification of the district.102.10    Subd. 3.Pooling authority.The city may elect to treat expenditures of increment 102.11from the Southdale 2 district for a housing project of a district established under this 102.12section as expenditures qualifying under Minnesota Statutes, section 469.1763, subdivision 102.132, paragraph (d): (1) without regard to whether the housing meets the requirement of a 102.14qualified building under section 42 of the Internal Revenue Code; and (2) may increase 102.15by an additional 25 percentage points the permitted amount of expenditures for activities 102.16located outside the geographic area of the district permitted under that section.102.17EFFECTIVE DATE.This section is effective upon compliance by the governing 102.18body of the city of Edina with the requirements of Minnesota Statutes, section 645.021, 102.19subdivisions 2 and 3.102.20    Sec. 9. CITY OF MAPLE GROVE; TAX INCREMENT FINANCING DISTRICT.102.21    Subdivision 1.Definitions.(a) For the purposes of this section, the following terms 102.22have the meanings given them.102.23(b) "City" means the city of Maple Grove.102.24(c) "Project area" means the area in the city commencing at a point 130 feet East and 102.25120 feet North of the southwest corner of the Southeast Quarter of Section 23, Township 102.26119, Range 22, Hennepin County, said point being on the easterly right-of-way line of 102.27Hemlock Lane; thence northerly along said easterly right-of-way line of Hemlock Lane 102.28to a point on the west line of the east one-half of the Southeast Quarter of section 23, 102.29thence south along said west line a distance of 1,200 feet; thence easterly to the east 102.30line of Section 23, 1,030 feet North from the southeast corner thereof; thence South 74 102.31degrees East 1,285 feet; thence East a distance of 1,000 feet; thence North 59 degrees 102.32West a distance of 650 feet; thence northerly to a point on the northerly right-of-way line 102.33of 81st Avenue North, 650 feet westerly measured at right angles, from the east line of 102.34the Northwest Quarter of Section 24; thence North 13 degrees West a distance of 795 103.1feet; thence West to the west line of the Southeast Quarter of the Northwest Quarter of 103.2Section 24; thence North 55 degrees West to the south line of the Northwest Quarter of the 103.3Northwest Quarter of Section 24; thence West along said south line to the east right-of-way 103.4line of Zachary Lane; thence North along the east right-of-way line of Zachary Lane to 103.5the southwest corner of Lot 1, Block 1, Metropolitan Industrial Park 5th Addition; thence 103.6East along the south line of said Lot 1 to the northeast corner of Outlot A, Metropolitan 103.7Industrial Park 5th Addition; thence South along the east line of said Outlot A and its 103.8southerly extension to the south right-of-way line of County State-Aid Highway (CSAH) 103.9109; thence easterly along the south right-of-way line of CSAH 109 to the east line of the 103.10Northwest Quarter of the Northeast Quarter of Section 24; thence South along said east 103.11line to the north line of the South Half of the Northeast Quarter of Section 24; thence East 103.12along said north line to the westerly right-of-way line of Jefferson Highway North; thence 103.13southerly along the westerly right-of-way line of Jefferson Highway to the centerline of 103.14CSAH 130; thence continuing South along the west right-of-way line of Pilgrim Lane 103.15North to the westerly extension of the north line of Outlot A, Park North Fourth Addition; 103.16thence easterly along the north line of Outlot A, Park North Fourth Addition to the 103.17northeast corner of said Outlot A; thence southerly along the east line of said Outlot A 103.18to the southeast corner of said Outlot A; thence easterly along the south line of Lot 1, 103.19Block 1, Park North Fourth Addition to the westerly right-of-way line of State Highway 103.20169; thence southerly, southwesterly, westerly, and northwesterly along the westerly 103.21right-of-way line of State Highway 169 and the northerly right-of-way line of Interstate 103.22694 to its intersection with the southerly extension of the easterly right-of-way line of 103.23Zachary Lane North; thence northerly along the easterly right-of-way line of Zachary 103.24Lane North and its northerly extension to the north right-of-way line of CSAH 130; thence 103.25westerly, southerly, northerly, southwesterly, and northwesterly to the point of beginning 103.26and there terminating, provided that the project area includes the rights-of-way for all 103.27present and future highway interchanges abutting the area described in this paragraph.103.28(d) "Soil deficiency district" means a type of tax increment financing district 103.29consisting of a portion of the project area in which the city finds by resolution that the 103.30following conditions exist:103.31(1) unusual terrain or soil deficiencies that occurred over 80 percent of the acreage in 103.32the district require substantial filling, grading, or other physical preparation for use; and103.33(2) the estimated cost of the physical preparation under clause (1), but excluding 103.34costs directly related to roads as defined in Minnesota Statutes, section 160.01, and 103.35local improvements as described in Minnesota Statutes, sections 429.021, subdivision 1, 104.1clauses (1) to (7), (11), and (12), and 430.01, exceeds the fair market value of the land 104.2before completion of the preparation.104.3    Subd. 2.Special rules.(a) If the city elects, upon the adoption of the tax increment 104.4financing plan for a district, the rules under this section apply to a redevelopment 104.5district, renewal and renovation district, soil condition district, or soil deficiency district 104.6established by the city or a development authority of the city in the project area.104.7(b) Prior to or upon the adoption of the first tax increment plan subject to the special 104.8rules under this subdivision, the city must find by resolution that parcels consisting 104.9of at least 80 percent of the acreage of the project area, excluding street and railroad 104.10rights-of-way, are characterized by one or more of the following conditions:104.11(1) peat or other soils with geotechnical deficiencies that impair development of 104.12commercial buildings or infrastructure;104.13(2) soils or terrain that require substantial filling in order to permit the development 104.14of commercial buildings or infrastructure;104.15(3) landfills, dumps, or similar deposits of municipal or private waste;104.16(4) quarries or similar resource extraction sites;104.17(5) floodway; and104.18(6) substandard buildings, within the meaning of Minnesota Statutes, section 104.19469.174, subdivision 10.104.20(c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by 104.21the relevant condition if at least 70 percent of the area of the parcel contains the relevant 104.22condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by 104.23substandard buildings if substandard buildings occupy at least 30 percent of the area 104.24of the parcel.104.25(d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, 104.26is extended to eight years for any district, and Minnesota Statutes, section 469.1763, 104.27subdivision 4, does not apply to any district.104.28(e) Notwithstanding any provision to the contrary in Minnesota Statutes, section 104.29469.1763, subdivision 2, paragraph (a), not more than 40 percent of the total revenue 104.30derived from tax increments paid by properties in any district, measured over the life of 104.31the district, may be expended on activities outside the district but within the project area.104.32(f) For a soil deficiency district:104.33(1) increments may be collected through 20 years after the receipt by the authority of 104.34the first increment from the district;104.35(2) increments may be used only to:104.36(i) acquire parcels on which the improvements described in item (ii) will occur;105.1(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the 105.2additional cost of installing public improvements directly caused by the deficiencies; and105.3(iii) pay for the administrative expenses of the authority allocable to the district; and105.4(3) any parcel acquired with increments from the district must be sold at no less 105.5than their fair market value.105.6(g) Increments spent for any infrastructure costs, whether inside a district or outside 105.7a district but within the project area, are deemed to satisfy the requirements of Minnesota 105.8Statutes, section 469.176, subdivision 4j.105.9(h) The authority to approve tax increment financing plans to establish tax increment 105.10financing districts under this section expires June 30, 2020.105.11EFFECTIVE DATE.This section is effective upon compliance with Minnesota 105.12Statutes, section 645.021, subdivision 3.105.13    Sec. 10. CITY OF MOUND; TAX INCREMENT FINANCING.105.14The requirements of Minnesota Statutes, section 469.1763, subdivision 3, that 105.15activities must be undertaken within a five-year period from the date of certification of 105.16a tax increment financing district, are considered to be met for the Mound Harbor Tax 105.17Increment Financing District administered by the Housing and Redevelopment Authority 105.18in and for the city of Mound if the activities are undertaken within 13 years from the 105.19date of certification of the district.105.20EFFECTIVE DATE.The section is effective upon compliance by the governing 105.21body of the city of Mound with the requirements of Minnesota Statutes, section 645.021, 105.22subdivisions 2 and 3.105.23    Sec. 11. CITY OF NORTH ST. PAUL; TAX INCREMENT FINANCING; 105.24PARCELS DEEMED OCCUPIED.105.25(a) If the city of North St. Paul authorizes the creation of a redevelopment tax 105.26increment financing district under Minnesota Statutes, section 469.174, subdivision 10, 105.27parcel number 122922330059 is deemed to meet the requirements of Minnesota Statutes, 105.28section 469.174, subdivision 10, paragraph (d), notwithstanding any contrary provisions 105.29of that paragraph, if the following conditions are met:105.30(1) buildings located on the parcel were demolished after the city of North St. Paul 105.31adopted a resolution under Minnesota Statutes, section 469.174, subdivision 10, paragraph 105.32(d), clause (3);106.1(2) the buildings were removed either by the city of North St. Paul or by the owner 106.2of the property by entering into a development agreement; and106.3(3) the request for certification of the parcel as part of a district is filed with the 106.4county auditor by December 31, 2017.106.5(b) The city of North St. Paul may elect to use the current value for purposes of 106.6calculating original net tax capacity for the parcels deemed occupied under paragraph (a), 106.7notwithstanding the provisions of Minnesota Statutes, sections 469.174, subdivision 10, 106.8paragraph (d), and 469.177, subdivision 1, paragraph (f).106.9EFFECTIVE DATE.This section is effective upon compliance by the governing 106.10body of the city of North St. Paul with the requirements of Minnesota Statutes, section 106.11645.021, subdivisions 2 and 3.106.12    Sec. 12. CITY OF SAVAGE; TAX INCREMENT FINANCING DISTRICT.106.13    Subdivision 1.Definitions.(a) For the purposes of this section, the following terms 106.14have the meanings given them.106.15(b) "City" means the city of Savage.106.16(c) "Project area" means parcel numbers 26-931-023-0, 26-931-022-0, 26-931-039-0, 106.1726-931-041-0, 26-931-018-1, 26-931-043-0, 26-931-020-0, 26-931-021-0, 26-931-035-0, 106.1826-931-040-0, 26-931-036-0, 26-931-037-0, 26-931-038-0, and 26-931-0310.106.19(d) "Soil deficiency district" means a type of tax increment financing district 106.20consisting of a portion of the project area in which the city finds by resolution that the 106.21following conditions exist:106.22(1) unusual terrain or soil deficiencies that occurred over 80 percent of the acreage in 106.23the district require substantial filling, grading, or other physical preparation for use; and106.24(2) the estimated cost of the physical preparation under clause (1), but excluding 106.25costs directly related to roads as defined in Minnesota Statutes, section 160.01, and 106.26local improvements as described in Minnesota Statutes, sections 429.021, subdivision 1, 106.27clauses (1) to (7), (11), and (12), and 430.01, exceeds the fair market value of the land 106.28before completion of the preparation.106.29    Subd. 2.Special rules.(a) If the city elects, upon the adoption of the tax increment 106.30financing plan for a district, the rules under this section apply to a redevelopment 106.31district, renewal and renovation district, soil condition district, or soil deficiency district 106.32established by the city or a development authority of the city in the project area.106.33(b) Prior to or upon the adoption of the first tax increment plan subject to the special 106.34rules under this subdivision, the city must find by resolution that parcels consisting 107.1of at least 80 percent of the acreage of the project area, excluding street and railroad 107.2rights-of-way, are characterized by one or more of the following conditions:107.3(1) peat or other soils with geotechnical deficiencies that impair development of 107.4commercial buildings or infrastructure;107.5(2) soils or terrain that require substantial filling in order to permit the development 107.6of commercial buildings or infrastructure;107.7(3) landfills, dumps, or similar deposits of municipal or private waste;107.8(4) quarries or similar resource extraction sites;107.9(5) floodway; and107.10(6) substandard buildings, within the meaning of Minnesota Statutes, section 107.11469.174, subdivision 10.107.12(c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by 107.13the relevant condition if at least 70 percent of the area of the parcel contains the relevant 107.14condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by 107.15substandard buildings if substandard buildings occupy at least 30 percent of the area 107.16of the parcel.107.17(d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, 107.18is extended to eight years for any district, and Minnesota Statutes, section 469.1763, 107.19subdivision 4, does not apply to any district.107.20(e) Notwithstanding any provision to the contrary in Minnesota Statutes, section 107.21469.1763, subdivision 2, paragraph (a), not more than 40 percent of the total revenue 107.22derived from tax increments paid by properties in any district, measured over the life of 107.23the district, may be expended on activities outside the district but within the project area.107.24(f) For a soil deficiency district:107.25(1) increments may be collected through 20 years after the receipt by the authority of 107.26the first increment from the district;107.27(2) increments may be used only to:107.28(i) acquire parcels on which the improvements described in item (ii) will occur;107.29(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the 107.30additional cost of installing public improvements directly caused by the deficiencies; and107.31(iii) pay for the administrative expenses of the authority allocable to the district; and107.32(3) any parcel acquired with increments from the district must be sold at no less 107.33than their fair market value.107.34(g) Increments spent for any infrastructure costs, whether inside a district or outside 107.35a district but within the project area, are deemed to satisfy the requirements of Minnesota 107.36Statutes, section 469.176, subdivision 4j.108.1(h) The authority to approve tax increment financing plans to establish tax increment 108.2financing districts under this section expires June 30, 2020.108.3EFFECTIVE DATE.This section is effective upon compliance with Minnesota 108.4Statutes, section 645.021, subdivision 3.108.5    Sec. 13. SHOREVIEW TAX INCREMENT FINANCING PILOT PROJECT.108.6    Subdivision 1.Authority to establish districts.(a) The governing body of the city 108.7of Shoreview or a development authority it designates may establish not more than three 108.8economic development tax increment financing districts in the city subject to the special 108.9rules under this section. The purpose of these districts is the retention and expansion of 108.10existing businesses in the city and the attraction of new business to the state to create and 108.11retain high paying jobs.108.12(b) The authority to establish or approve the tax increment financing plans and 108.13request certification for districts under this section expires on June 30, 2019.108.14    Subd. 2.Qualified businesses.For purposes of this section, a "qualified business" 108.15must satisfy the following requirements:108.16(1) the business must qualify under one of the following when the tax increment 108.17financing plan is approved:108.18(i) it operates at a location in the city of Shoreview;108.19(ii) it does not have substantial operations in Minnesota; or108.20(iii) the assistance is provided for relocation of a portion of the business's operation 108.21from another state;108.22(2) the expansion or location of the operations of the business in the city, as 108.23provided in the business subsidy agreement under Minnesota Statues, sections 116J.993 to 108.24116J.995, will result in an increase in manufacturing, research, service, or professional 108.25jobs, at least 75 percent of which pay an average wage or salary that is equal to or greater 108.26than 25 percent of the median wage or salary for all jobs within the metropolitan area; and108.27(3) the business is not engaged in making retail sales or in providing other services, 108.28such as legal, medical, accounting, financial, entertainment, or similar services, to third 108.29parties at the location receiving assistance.108.30    Subd. 3.Applicable rules.(a) Unless otherwise stated, the provisions of Minnesota 108.31Statutes, sections 469.174 to 469.1794, apply to districts established under this section.108.32(b) Notwithstanding the provisions of section 469.176, subdivision 1b, the duration 108.33limit for districts created under this section is 12 years after the receipt of the first increment.109.1(c) The provisions of Minnesota Statutes, section 469.176, subdivision 4c, apply 109.2to determining the permitted uses of increments from the districts with the following 109.3exceptions:109.4(1) any building and facilities must be for a qualified business;109.5(2) the building and facilities must not be used by the qualified business or its 109.6lessees or tenants to relocate operations from another location in this state outside of the 109.7city of Shoreview;109.8(3) the 15 percent limit in subdivision 4c, paragraph (a), is increased to 25 percent; and109.9(4) the city or development authority may elect to deposit up to 20 percent of the 109.10increments in the fund established under subdivision 4. If the city elects to use this 109.11authority, all of the remaining increments must be expended for administrative expenses 109.12or for activities within the district under Minnesota Statutes, section 469.1763.109.13(d) The governing body of the city may elect by resolution to determine the 109.14original and current net tax capacity of a district established under this section using the 109.15computation under Minnesota Statutes, section 469.177, subdivision 3, paragraph (a) or (b).109.16    Subd. 4.Business retention and expansion fund.(a) The city may establish a 109.17business retention and expansion fund and deposit in the fund:109.18(1) increments as provided under subdivision 3, paragraph (c), clause (4); and109.19(2) increments from a district for which the request for certification of the district 109.20was made prior to April 30, 1990, if the amount necessary to meet all of the debt and other 109.21obligations incurred for that district has been received by the city.109.22(b) Amounts in the fund may be expended to assist qualified businesses, as permitted 109.23under subdivisions 2 and 3, and are not otherwise subject to the restrictions in Minnesota 109.24Statutes, sections 469.174 to 469.1794.109.25EFFECTIVE DATE.This section is effective upon compliance by the governing 109.26body of the city of Shoreview with the requirements of Minnesota Statutes, section 109.27645.021, subdivision 3.109.28    Sec. 14. WORKFORCE HOUSING GRANTS PILOT PROGRAM.109.29    Subdivision 1.Establishment.The commissioner of employment and economic 109.30development shall establish a workforce housing grants pilot program to award grants to a 109.31city to be used for financing costs related to the construction of or financing for market 109.32rate residential rental properties.109.33    Subd. 2.Definitions.For purposes of this section:110.1(1) "local unit of government" means a home rule charter or statutory city or county;110.2(2) "qualified city" means a home rule charter or statutory city with a population 110.3exceeding 1,500 located in Roseau County or Pennington County;110.4(3) "qualified expenditure" means expenditures for the acquisition of property, 110.5construction of improvements, provisions of loans or subsidies, grants, interest rate 110.6subsidies, public infrastructure, and related financing costs for market rate rental 110.7residential rental properties; and110.8(4) "market rate residential rental properties" means properties that are rented at 110.9market value and excludes: (i) properties constructed with financial assistance requiring 110.10the property to be occupied by residents that meet income limits under federal or state 110.11law of initial occupancy; and (ii) properties constructed with federal, state, or local flood 110.12recovery assistance, regardless of whether that assistance imposed income limits as a 110.13condition of receiving assistance.110.14    Subd. 3.Application.The commissioner must develop forms and procedures 110.15for soliciting and reviewing application for grants under this section. At a minimum, a 110.16city must include in its application a resolution of its governing body certifying that the 110.17matching amount as required under this section is available and committed.110.18    Subd. 4.Program requirements.The commissioner shall not award a grant to a 110.19city under this section until the following determinations are made:110.20(1) the average vacancy rate for rental housing located in the city, and in any city 110.21located within 15 miles or less of the boundaries of the city, has been five percent or 110.22less for at least a two-year period;110.23(2) one or more businesses located in the city, or within 15 miles of the city, that 110.24employ a minimum of twenty full-time equivalent employees in aggregate have provided 110.25a written statement to the city indicating that the lack of available rental housing has 110.26impeded their ability to recruit and hire employees;110.27(3) the city is located in Roseau County or Pennington County and has a population 110.28exceeding 1,500;110.29(4) fewer than five market rate residential units per 1,000 residents were constructed 110.30in the city in each of the last ten years; and110.31(5) the city certifies that the grants will be used for qualified expenditures for the 110.32development of rental housing to serve employees of businesses located in the city 110.33or surrounding area.110.34    Subd. 5.Allocation.The amount of a grant may not exceed the lesser of $400,000 110.35or ten percent of the rental housing development project cost. The commissioner shall not 111.1award a grant to a city without certification by the city that the amount of the grant shall be 111.2matched by a local unit of government, business, or nonprofit organization.111.3    Subd. 6.Report.By January 15, 2016, the city must submit a report to the chairs and 111.4ranking minority members of the senate and house of representatives committees having 111.5jurisdiction over taxes and workforce development specifying the projects that received 111.6grants under this section and the specific purposes for which the grant funds were used.111.7EFFECTIVE DATE.This section is effective the day following final enactment.111.8    Sec. 15. APPROPRIATION.111.9$627,000 in fiscal year 2015 is appropriated from the general fund to the 111.10commissioner of employment and economic development to make grants under the 111.11workforce housing grants pilot program in section 14. The base for fiscal year 2016 is 111.12$1,373,000 and is available until June 30, 2018. The base for fiscal year 2017 is $0. Of 111.13these amounts, the commissioner of employment and economic development may use up 111.14to five percent for administrative expenses.111.15ARTICLE 7111.16LEWIS AND CLARK REGIONAL WATER SYSTEM PROJECT111.17    Section 1. [469.352] LEWIS AND CLARK WATER PROJECT BONDING.111.18    Subdivision 1.Authority; aggregate limit.(a) The governing body of a 111.19municipality may, by resolution, issue obligations under chapter 475 to acquire land or 111.20interests in land for, and to design, engineer, and construct  pipeline and other facilities and 111.21infrastructure necessary to complete the Lewis and Clark Regional Water System Project.111.22(b) The maximum amount of bonds that may be issued under this section is limited 111.23to an aggregate principal amount of $45,000,000, plus any costs of issuance and amounts 111.24to be deposited into a debt service or reserve account. The Lewis and Clark Joint Powers 111.25Board shall allocate the limit among the municipalities designated in subdivision 2.111.26    Subd. 2.Municipalities.For purposes of this section, "municipality" or 111.27"municipalities" means any of the following governmental units:111.28(1) the city of Luverne;111.29(2) the city of Worthington;111.30(3) Nobles County; and111.31(4) Rock County.112.1    Subd. 3.Application of chapter 475 limits.(a) Notwithstanding section 475.58 or 112.2any other law to contrary, obligations under this section, including general obligations, 112.3may be issued without obtaining the approval of the electors.112.4(b) Notwithstanding section 475.53 or any other law to the contrary, obligations 112.5issued under this section are not subject to any limitations on net debt.112.6    Subd. 4.Payment allocation.The joint powers board may agree to allocate the 112.7responsibility of each of its members and each municipality to pay obligations issued 112.8under this section. One-half of any federal grants and aid received to fund the project in 112.9any year shall be used to proportionately reduce responsibility to pay obligations under 112.10this subdivision.112.11EFFECTIVE DATE.This section is effective the day following final enactment 112.12without local approval under the provisions of Minnesota Statutes, section 645.023.112.13    Sec. 2. [477A.20] DEBT SERVICE AID; LEWIS AND CLARK JOINT POWERS 112.14BOARD.112.15(a) The Lewis and Clark Joint Powers Board is eligible to receive an aid distribution 112.16under this section equal to (1) the principal and interest payable in the succeeding calendar 112.17year for bonds issued under section 469.352 minus the sum of (2) the combined adjusted 112.18net tax capacity of Rock County and Nobles County for the assessment year prior to the 112.19aid payable year multiplied by 1.5 percent and (3) 50 percent of any federal aid received to 112.20fund the project in the calendar year. The board shall certify to the commissioner of revenue 112.21the principal and interest due in the succeeding calendar year by June 1 of the aid payable 112.22year. The commissioner of revenue shall calculate the aid payable under this section and 112.23certify the amount payable before July 1 of the aid distribution year. The commissioner 112.24shall pay the aid under this section to the board at the times specified for payments of local 112.25government aid in section 477A.015. An amount sufficient to pay the state aid authorized 112.26under this section is annually appropriated to the commissioner from the general fund. 112.27(b) The board must allocate the aid to the municipalities issuing bonds under section 112.28469.352 in proportion to their principal and interest payments.112.29(c) If the deduction under paragraph (a), clause (3), eliminates the aid payment under 112.30this section in a calendar year, then the excess must be used to reduce the principal and 112.31interest in the succeeding year or years used to calculate aid under paragraph (a).112.32(d) If federal grants and aid received for the project, not deducted under paragraph 112.33(a), clause (3), exceed the total debt service payments for bonds issued under section 112.34469.352, other than payments made with state aid under this section, the joint powers 112.35board must repay any excess to the commissioner of revenue for deposit in the general 113.1fund. The repayment may not exceed the sum of state aid payments under this section and 113.2any other grants made by the state for the project.113.3(e) This section expires at the earlier of January 1, 2039, or when the bonds 113.4authorized under section 469.352 have been paid or defeased.113.5EFFECTIVE DATE.This section is effective beginning with aids payable in 2015.113.6    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.(a) 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    (b) Notwithstanding Minnesota Statutes, section 297A.99, subdivisions 2 and 3, if 113.16the city decides to extend the taxes in subdivisions 1 and 2, as allowed under subdivision 113.175, paragraph (b), the city must use any amounts in excess of the amounts necessary to 113.18meet the obligations under paragraph (a) to pay the city's share of debt service on bonds 113.19issued under Minnesota Statutes, section 469.352, to fund the Lewis and Clark Regional 113.20Water System Project.113.21EFFECTIVE DATE.This section is effective the day after the governing body of 113.22the city of Worthington and its chief clerical officer comply with Minnesota Statutes, 113.23section 645.021, subdivisions 2 and 3.113.24    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.(a) 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    (b) Notwithstanding paragraph (a), the city council may, by ordinance, extend the 114.2taxes imposed under subdivisions 1 and 2 through December 31, 2039, provided that 114.3all additional revenues that exceed those necessary to fund the projects and associated 114.4financing costs listed in subdivision 3, paragraph (a), are committed to pay debt service 114.5on bonds issued under Minnesota Statutes, section 469.352, to fund the Lewis and Clark 114.6Regional Water System Project.114.7EFFECTIVE DATE.This section is effective the day after the governing body of 114.8the city of Worthington and its chief clerical officer comply with Minnesota Statutes, 114.9section 645.021, subdivisions 2 and 3.114.10    Sec. 5. ROCK COUNTY LOCAL SALES TAX.114.11(a) Notwithstanding Minnesota Statutes, sections 297A.99, 297A.993, and 114.12477A.016, or any other contrary provision of law, ordinance, or charter, and in 114.13addition to any taxes the county may impose under another law or statute, the Board 114.14of Commissioners of Rock County may, by resolution, impose a sales and use tax of 114.15up to one-half of one percent for the purposes specified in paragraph (c). Except as 114.16otherwise provided in this section, the provisions of Minnesota Statutes, section 297A.99, 114.17subdivisions 4 to 13, govern the imposition, administration, collection, and enforcement 114.18of the tax authorized under this paragraph.114.19(b) The tax imposed under paragraph (a) must be imposed in the entire county unless 114.20the city of Luverne imposes a local sales tax at the same rate under section 7, in which 114.21case the county board of commissioners may elect to impose the tax in the portion of the 114.22county located outside of the boundaries of the city of Luverne.114.23(c) The proceeds of any tax imposed under paragraph (a), less refunds and costs of 114.24collection, must be first used by the county to pay debt service on bonds issued under 114.25Minnesota Statutes, section 469.352, to fund the Lewis and Clark Regional Water System 114.26Project. Revenues collected in any calendar year in excess of the county obligation to pay 114.27for the county's share of the bonds issued under Minnesota Statutes, section 469.352, may 114.28be retained by the county and used for funding other capital projects within the county.114.29(d) A tax imposed under paragraph (a) expires when the county's share of bonds issued 114.30under Minnesota Statutes, section 469.352, to fund the Lewis and Clark Regional Water 114.31System Project has been paid, or at an earlier time if approved by resolution of the board. 114.32The tax must not terminate before the county board of commissioners determines that 114.33revenues from these taxes and any other revenue source the county dedicates are sufficient 114.34to pay the county's share of the bonds issued under Minnesota Statutes, section 469.352.115.1EFFECTIVE DATE.This section is effective the day after the governing body 115.2of Rock County and its chief clerical officer comply with Minnesota Statutes, section 115.3645.021, subdivisions 2 and 3.115.4    Sec. 6. NOBLES COUNTY LOCAL SALES TAX.115.5(a) Notwithstanding Minnesota Statutes, sections 297A.99, 297A.993, and 115.6477A.016, or any other contrary provision of law, ordinance, or charter, and in 115.7addition to any taxes the county may impose under another law or statute, the Board 115.8of Commissioners of Nobles County may, by resolution, impose a sales and use tax of 115.9up to one-half of one percent for the purposes specified in paragraph (c). Except as 115.10otherwise provided in this section, the provisions of Minnesota Statutes, section 297A.99, 115.11subdivisions 4 to 13, govern the imposition, administration, collection, and enforcement 115.12of the tax authorized under this paragraph.115.13(b) The tax imposed under paragraph (a) must be imposed in the entire county unless 115.14the county imposes the tax at one-half of one percent and the local sales tax authorized 115.15under Laws 2005, chapter 3, article 5, section 44, as amended, has not expired, in which 115.16case the county board of commissioners may elect to impose the tax in the portion of the 115.17county located outside of the boundaries of the city of Worthington. If the tax authorized 115.18under Laws 2005, chapter 3, article 5, section 44, as amended, expires before the tax 115.19authorized under this section expires, the tax authorized under this section is imposed 115.20in the entire county.115.21(c) The proceeds of any tax imposed under paragraph (a), less refunds and costs of 115.22collection, must be first used by the county to pay debt service on bonds issued under 115.23Minnesota Statutes, section 469.352, to fund the Lewis and Clark Regional Water System 115.24Project. Revenues collected in any calendar year in excess of the county obligation to pay 115.25for the county's share of the bonds issued under Minnesota Statutes, section 469.352, may 115.26be retained by the county and used for funding other capital projects within the county.115.27(d) A tax imposed under paragraph (a) expires when the county's share of bonds issued 115.28under Minnesota Statutes, section 469.352, to fund the Lewis and Clark Regional Water 115.29System Project has been paid, or at an earlier time if approved by resolution of the board. 115.30The tax must not terminate before the county board of commissioners determines that 115.31revenues from these taxes and any other revenue source the county dedicates are sufficient 115.32to pay the county's share of the bonds issued under Minnesota Statutes, section 469.352.115.33EFFECTIVE DATE.This section is effective the day after the governing body of 115.34Nobles County and its chief clerical officer comply with Minnesota Statutes, section 115.35645.021, subdivisions 2 and 3.116.1    Sec. 7. CITY OF LUVERNE LOCAL SALES TAX.116.2(a) Notwithstanding Minnesota Statutes, sections 297A.99, 297A.993, and 477A.016, 116.3or any other contrary provision of law, ordinance, or city charter, the city of Luverne may, 116.4by ordinance, impose a sales and use tax of up to one-half of one percent for the purposes 116.5specified in paragraph (b). Except as otherwise provided in this section, the provisions 116.6of Minnesota Statutes, section 297A.99, subdivisions 4 to 13, govern the imposition, 116.7administration, collection, and enforcement of the tax authorized under this paragraph.116.8(b) The proceeds of any tax imposed under paragraph (a), less refunds and costs 116.9of collection, must be first used by the city to pay debt service on bonds issued under 116.10Minnesota Statutes, section 469.352, to fund the Lewis and Clark Regional Water System 116.11project. Revenues collected in any calendar year in excess of the city obligation to pay for 116.12debt service on bonds issued under Minnesota Statutes, section 469.352, may be retained 116.13by the city and used for funding other capital projects within the city.116.14(c) A tax imposed under paragraph (a) expires when the city's share of bonds issued 116.15under Minnesota Statutes, section 469.352, to fund the Lewis and Clark Regional Water 116.16System Project has been made, or at an earlier time if approved by the city council. The 116.17tax must not terminate before the city council determines that revenues from this tax and 116.18any other revenue source the city dedicates are sufficient to pay the city share of debt 116.19service on bonds issued under Minnesota Statutes, section 469.352.116.20EFFECTIVE DATE.This section is effective the day after the governing body of 116.21the city of Luverne and its chief clerical officer comply with Minnesota Statutes, section 116.22645.021, subdivisions 2 and 3.116.23ARTICLE 8116.24MISCELLANEOUS116.25    Section 1. Minnesota Statutes 2013 Supplement, section 116V.03, is amended to read:116.26116V.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.01.116.31EFFECTIVE DATE.This section is effective July 1, 2014.116.32    Sec. 2. Minnesota Statutes 2012, section 161.14, is amended by adding a subdivision 116.33to read:117.1    Subd. 77.Old Cedar Avenue Bridge.Minnesota state bridge number 3145, the 117.2Camelback bridge over the Minnesota River overflowage (referred to as Long Meadow 117.3Lake) constructed in 1920, is designated and named the "Old Cedar Avenue Bridge." This 117.4designation and name also applies to any renovation or reconstruction of the bridge and 117.5must be used in any publicly financed signage that refers to the bridge.117.6EFFECTIVE DATE.This section is effective the day following final enactment.117.7    Sec. 3. Minnesota Statutes 2012, section 270C.72, subdivision 1, is amended to read:117.8    Subdivision 1. Tax clearance required.(a) 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(b) Within ten days after receipt of the notification from the commissioner under 117.19paragraph (a), the licensing authority must notify the license holder by certified mail of 117.20the potential revocation of the license for the applicable reason under paragraph (a). 117.21The notice must include a copy of the commissioner's notice to the licensing agency 117.22and information, in the form specified by the commissioner, on the licensee's option for 117.23receiving a tax clearance from the commissioner. The licensing authority must revoke the 117.24license 30 days after receiving the notice from the commissioner, unless it receives a tax 117.25clearance from the commissioner as provided in paragraph (c).117.26(c) 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) (1) the commissioner 117.28issues a tax clearance certificate and (b) (2) 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.117.32EFFECTIVE DATE.This section is effective July 1, 2014.117.33    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) (a) 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). If the applicant requests a hearing in writing within 30 days of the date of the notice, a 118.13contested case hearing must be held. The hearing must be held within 45 days of the date 118.14the commissioner refers the case to the Office of Administrative Hearings. Notwithstanding 118.15any law to the contrary, the applicant must be served with 20 days' notice in writing 118.16specifying the time and place of the hearing and the allegations against the applicant. The 118.17notice may be served personally or by mail. 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(b) The commissioner may notify a licensing authority under subdivision 1 only 118.23after the requirements of paragraph (a) have been satisfied.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 1.118.26EFFECTIVE DATE.This section is effective July 1, 2014.118.27    Sec. 5. CARLTON COUNTY; LEVY FOR SOIL AND WATER CONSERVATION 118.28DISTRICT.118.29    Subdivision 1.Definitions.(a) For the purposes of this section, "district" means 118.30the Carlton County Soil and Water Conservation District.118.31(b) For the purposes of this section, "county" means Carlton County.118.32    Subd. 2.Special project levy.Notwithstanding any law to the contrary, the county 118.33may levy ad valorem property taxes on taxable property within the area of its jurisdiction 118.34for the purposes specified in subdivision 3. The proceeds of the tax must be placed in a 119.1separate account and used only for the purposes specified in subdivision 3. The amount 119.2levied is separate from any other amount to be levied for the district by the county under 119.3Minnesota Statutes, section 103C.331, subdivision 16.119.4    Subd. 3.Purpose; limit on levy amount.(a) The county must allocate the 119.5proceeds of any tax imposed under this section to the district solely to pay principal, 119.6interest, and any associated costs of obtaining and servicing a loan to finance the planning, 119.7constructing, and equipping of an office and storage facility for the district.119.8(b) The maximum amount of the levy in any year may not exceed the amount 119.9necessary, after deduction of any amount remaining from the levy imposed in prior years, 119.10to pay 105 percent of the principal and interest due in the following calendar year and 119.11through July 1 of the next year.119.12    Subd. 4.Expiration.(a) This section expires:119.13(1) following the final payment of principal, interest, and any associated costs of the 119.14loan under subdivision 3, or any loan or other financing that refinanced the original loan; or119.15(2) if the district does not obtain the loan under subdivision 3 prior to May 1, 2017.119.16(b) Upon expiration of this section, any amount remaining in the account created 119.17under subdivision 2 must be transferred to the general account of the county and used to 119.18reduce any amount to be levied for the district by the county under Minnesota Statutes, 119.19section 103C.331, subdivision 16, for the following year, and any subsequent years, until 119.20the amount remaining is exhausted.119.21EFFECTIVE DATE.This section is effective the day following compliance by 119.22Carlton County with Minnesota Statutes, section 645.021, subdivisions 2 and 3.119.23    Sec. 6. ADMINISTRATIVE APPROPRIATIONS.119.24(a) $700,000 in fiscal year 2014 and $1,800,000 in fiscal year 2015 are appropriated 119.25from the general fund to the commissioner of revenue for administering this act. The 119.26funding base for this appropriation in fiscal year 2016 is $1,180,000 and is available to be 119.27spent until June 30, 2017. The funding base for fiscal year 2017 is $0.119.28(b) $40,000 in fiscal year 2015 is appropriated from the general fund to the 119.29commissioner of public safety for administration of the volunteer retention stipend aid 119.30pilot program in article 1, section 1. The funding base for this appropriation in fiscal 119.31year 2016 is $18,000 and is available to be spent until June 30, 2018. The funding base 119.32for fiscal year 2017 is $0.119.33(c) $400,000 in fiscal year 2015 is appropriated from the general fund to the 119.34commissioner of natural resources for the purpose of assisting counties in developing plans 120.1and providing training for watercraft inspectors to facilitate the implementation of article 120.21, section 11. This is a onetime appropriation and does not become part of the base budget.120.3EFFECTIVE DATE.This section is effective the day following final enactment.120.4ARTICLE 9120.5UNSESSION120.6    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 to a 120.19referring agency, 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.120.22EFFECTIVE DATE.This section is effective the day following final enactment.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 an agreement with the commissioner 120.28to refer debts to the commissioner for collection.120.29EFFECTIVE DATE.This section is effective the day following final enactment.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 referring agencies other than state agencies.121.4EFFECTIVE DATE.This section is effective the day following final enactment.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 commissioner 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.121.13EFFECTIVE DATE.This section is effective the day following final enactment.121.14    Sec. 5. Minnesota Statutes 2012, section 16D.07, is amended to read:121.1516D.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. The referring agency shall advise the debtor of collection costs imposed 121.21under section 16D.11 and of the debtor's right to cancellation of collection costs under 121.22section 16D.11, subdivision 3.121.23EFFECTIVE DATE.This section is effective the day following final enactment.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 revenue, 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 16D.07.122.1 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.122.10EFFECTIVE DATE.This section is effective the day following final enactment.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 enterprise122.19 commissioner 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 commissioner;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; or122.27(5) collection costs have been added by the referring agency and are included in 122.28the amount of the referred debt.122.29EFFECTIVE DATE.This section is effective the day following final enactment.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 commissioner122.33 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 commissioner 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.1283.123.5EFFECTIVE DATE.This section is effective the day following final enactment.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.123.25EFFECTIVE DATE.This section is effective the day following final enactment.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;.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; and124.3(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.124.6EFFECTIVE DATE.This section is effective the day following final enactment.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; and124.14(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 the same 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 for the taxes 124.24imposed under chapter 297A, 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; and124.29(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.125.4EFFECTIVE DATE.This section is effective for fees due after June 30, 2014.125.5    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 285.125.10EFFECTIVE DATE.This section is effective the day following final enactment.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 
         270.12.125.18EFFECTIVE DATE.This section is effective the day following final enactment.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 or deduct from the aggregate valuation of the real property 125.26of every county, which the board believes to be valued below or above 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) (2) If the board believes the valuation for a part of a class determined by a range 125.32of market value under clause (8) (6) 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) (3) The board shall add to or take from 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 or above 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) (4) 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) (5) 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) (6) 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; and127.9(9) (7) 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 a127.11 medium as prescribed by the commissioner of revenue.127.12EFFECTIVE DATE.This section is effective the day following final enactment.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.127.17EFFECTIVE DATE.This section is effective the day following final enactment.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 16D.11.127.30EFFECTIVE DATE.This section is effective the day following final enactment.127.31    Sec. 17. Minnesota Statutes 2012, section 270B.14, subdivision 3, is amended to read:128.1    Subd. 3. Administration of enterprise,and job opportunity, and biotechnology 128.2and 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 469.336.128.11EFFECTIVE DATE.This section is effective the day following final enactment.128.12    Sec. 18. Minnesota Statutes 2012, section 270C.085, is amended to read:128.13270C.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, 2009.128.26EFFECTIVE DATE.This section is effective the day following final enactment.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.130.4EFFECTIVE DATE.This section is effective the day following final enactment.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.130.10EFFECTIVE DATE.This section is effective the day following final enactment.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, 
         273.40130.19and 
         273.41, or upon which are situated the communication lines of express, railway, or 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.131.30EFFECTIVE DATE.This section is effective the day following final enactment.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 2 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.132.11EFFECTIVE DATE.This section is effective the day following final enactment.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.132.25EFFECTIVE DATE.This section is effective the day following final enactment.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.133.1EFFECTIVE DATE.This section is effective the day following final enactment.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.133.23EFFECTIVE DATE.This section is effective the day following final enactment.133.24    Sec. 26. Minnesota Statutes 2012, section 273.10, is amended to read:133.25273.10 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.133.32EFFECTIVE DATE.This section is effective the day following final enactment.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.134.16EFFECTIVE DATE.This section is effective the day following final enactment.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.134.25EFFECTIVE DATE.This section is effective the day following final enactment.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) (6), 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.135.14EFFECTIVE DATE.This section is effective the day following final enactment.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 is the amount certified 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.135.32EFFECTIVE DATE.This section is effective beginning for taxes payable in 2015.135.33    Sec. 31. Minnesota Statutes 2012, section 273.18, is amended to read:136.1273.18 LISTING, VALUATION, AND ASSESSMENT OF EXEMPT 136.2PROPERTY BY COUNTY AUDITORS.136.3(a) In every sixth year after the year 1926 2010, 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.136.16EFFECTIVE DATE.This section is effective the day following final enactment.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.138.20EFFECTIVE DATE.This section is effective the day following final enactment.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.138.31EFFECTIVE DATE.This section is effective the day following final enactment.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 273.13. 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.139.8EFFECTIVE DATE.This section is effective the day following final enactment.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.139.24EFFECTIVE DATE.This section is effective the day following final enactment.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; or140.7    (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) (14) 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) (15) for purposes of a storm sewer improvement district under section 
         444.20;142.1    (17) (16) 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) (17) 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) (18) 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) (19) 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) (20) 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) (21) 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) (22) 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; and143.13(25) (23) 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.143.15EFFECTIVE DATE.This section is effective the day following final enactment.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) (18). The local governmental unit shall submit a 143.28request to levy under section 
         275.70, subdivision 5, clause (19) (18), 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.144.3EFFECTIVE DATE.This section is effective the day following final enactment.144.4    Sec. 38. Minnesota Statutes 2012, section 275.75, is amended to read:144.5275.75 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) (20) and (23).144.11EFFECTIVE DATE.This section is effective the day following final enactment.144.12    Sec. 39. Minnesota Statutes 2012, section 279.03, subdivision 1, is amended to read:144.13    Subdivision 1. Rate Interest calculation.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 549.09. 144.16The rate of interest on delinquent property taxes levied in 1980 and subsequent years is 144.17the rate determined pursuant to section 549.09. All provisions of law except section 144.18549.09 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 
         549.09shall continue in force applies 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.145.1EFFECTIVE DATE.This section is effective the day following final enactment.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 is 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 is ten 145.7percent. The maximum per annum rate shall be is 14 percent if the rate specified under 145.8section 
         270C.40, subdivision 5, exceeds 14 percent. The rate shall be is 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 is payable at twice the rate determined under paragraph (a) for 145.14the year.145.15EFFECTIVE DATE.This section is effective the day following final enactment.145.16    Sec. 41. Minnesota Statutes 2012, section 279.16, is amended to read:145.17279.16 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:

145.23State of Minnesota)District Court,145.24) ss.145.25County 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:

146.4Description.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.

146.11Dated this ............. day of ..............., .......146.12146.13146.14
                     							.....
                     						
                  		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; and146.19 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.146.23EFFECTIVE DATE.This section is effective the day following final enactment.146.24    Sec. 42. Minnesota Statutes 2012, section 279.23, is amended to read:146.25279.23 COPY OF JUDGMENT TO COUNTY AUDITOR.146.26When any real estate tax judgment is entered, the court administrator shall forthwith146.27 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.146.30EFFECTIVE DATE.This section is effective the day following final enactment.146.31    Sec. 43. Minnesota Statutes 2012, section 279.25, is amended to read:146.32279.25 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.147.11EFFECTIVE DATE.This section is effective the day following final enactment.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 278.01 to 278.13 chapter 278, 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 278.01 to 278.13 chapter 278.148.12Dated .............., ......."148.13EFFECTIVE DATE.This section is effective the day following final enactment.148.14    Sec. 45. Minnesota Statutes 2012, section 280.001, is amended to read:148.15280.001 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 
         280.01148.19and 
         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.148.24EFFECTIVE DATE.This section is effective the day following final enactment.148.25    Sec. 46. Minnesota Statutes 2012, section 280.03, is amended to read:148.26280.03 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 ........, ....... .

149.15149.16
                     							.....
                     						
                  		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.149.26EFFECTIVE DATE.This section is effective the day following final enactment.149.27    Sec. 47. Minnesota Statutes 2012, section 280.07, is amended to read:149.28280.07 ENTRIES IN JUDGMENT BOOKS AFTER SALE.149.29Immediately after such sale the county auditor shall set out in the copy judgment 149.30book record that all parcels were bid in for the state. The county auditor shall thereupon 149.31deliver such book to notify 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.150.1EFFECTIVE DATE.This section is effective the day following final enactment.150.2    Sec. 48. Minnesota Statutes 2012, section 280.11, is amended to read:150.3280.11 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 .........., .......

150.31150.32
                     							.....
                     						
                  		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, 1972.151.7EFFECTIVE DATE.This section is effective the day following final enactment.151.8    Sec. 49. Minnesota Statutes 2012, section 281.03, is amended to read:151.9281.03 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 record the 151.18parcel as redeemed, the word, "redeemed.".151.19EFFECTIVE DATE.This section is effective the day following final enactment.151.20    Sec. 50. Minnesota Statutes 2013 Supplement, section 281.17, is amended to read:151.21281.17 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.152.6EFFECTIVE DATE.This section is effective the day following final enactment.152.7    Sec. 51. Minnesota Statutes 2012, section 281.327, is amended to read:152.8281.327 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" record 152.21the land as canceled by order of court; and the rights of the holder under the certificate 152.22shall thereupon be terminated of record in the office of the county auditor.152.23EFFECTIVE DATE.This section is effective the day following final enactment.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.153.17EFFECTIVE DATE.This section is effective the day following final enactment.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.154.3EFFECTIVE DATE.This section is effective the day following final enactment.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 549.09. 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 
         549.09 or279.03, 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.154.13EFFECTIVE DATE.This section is effective the day following final enactment.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.154.19EFFECTIVE DATE.This section is effective the day following final enactment.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.154.26EFFECTIVE DATE.This section is effective the day following final enactment.154.27    Sec. 57. Minnesota Statutes 2012, section 282.322, is amended to read:154.28282.322 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 296.155.7EFFECTIVE DATE.This section is effective the day following final enactment.155.8    Sec. 58. Minnesota Statutes 2012, section 287.30, is amended to read:155.9287.30 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.155.15EFFECTIVE DATE.This section is effective the day following final enactment.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 $500.155.31EFFECTIVE DATE.This section is effective the day following final enactment.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; or156.8(2) which qualifies as a DISC, as defined in section 992(a) of the Internal Revenue 156.9Code; or.156.10(3) which qualifies as a FSC, as defined in section 922 of the Internal Revenue Code.156.11EFFECTIVE DATE.This section is effective for taxable years beginning after 156.12December 31, 2013.156.13    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; and156.32    (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 156.34290.09, subdivision 8;157.1    (5) (4) 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; and157.11    (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) (5) 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) (6) 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) (7) 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) (8) 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) (9) 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) (10) 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) (11) 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) (12) 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) (13) 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) (14) 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) (15) 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) (16) 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); and158.29(18) (17) 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.158.32EFFECTIVE DATE.This section is effective for taxable years beginning after 158.33December 31, 2013.158.34    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 (e) and (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) (i) 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) (d) 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) (e) 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) (f) 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) (g) 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) (h) 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) (i) 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) (j) 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) (i). 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 (e) and (f) and (g).160.15(l) (k) The modifications contained in paragraphs (b) to (j) (i) 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.160.18EFFECTIVE DATE.This section is effective for taxable years beginning after 160.19December 31, 2013.160.20    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 less160.24(i) the net operating loss deduction under section 
         290.095;160.25(ii) the dividends received deduction under section 
         290.21, subdivision 4; and160.26(iii) the exemption for operating in a job opportunity building zone under section 160.27469.317
         ; and.160.28(iv) the exemption for operating in a biotechnology and health sciences industry 160.29zone under section 469.337.160.30EFFECTIVE DATE.This section is effective for taxable years beginning after 160.31December 31, 2013.160.32    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); and161.21(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; or162.2(8) any other solicitation by telegraph, telephone, computer database, cable, optic, 162.3microwave, or other communication system.162.4EFFECTIVE DATE.This section is effective the day following final enactment.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 290.32.162.20EFFECTIVE DATE.This section is effective for taxable years beginning after 162.21December 31, 2013.162.22    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.163.1EFFECTIVE DATE.This section is effective for taxable years beginning after 163.2December 31, 2013.163.3    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 163.16290.01, 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) (1) 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) (2) The subtraction for depreciation allowed under section 
         290.01, subdivision 163.2719d
         , clause (15) (14), is allowed as a depreciation deduction in determining alternative 163.28minimum taxable income.163.29(4) (3) 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) (4) 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) (5) 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) (6) The tax preference for tax exempt interest under section 57(a)(5) of the 164.5Internal Revenue Code does not apply.164.6(9) (7) 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) (8) 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) (9) 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) (10) 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 469.337.164.30Items of tax preference must not be reduced below zero as a result of the 164.31modifications in this subdivision.164.32EFFECTIVE DATE.This section is effective for taxable years beginning after 164.33December 31, 2013.164.34    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 469.334. 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.165.24EFFECTIVE DATE.This section is effective for taxable years beginning after 165.25December 31, 2013.165.26    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 during the 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 165.32290.095; 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 290.095.166.1(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.166.13EFFECTIVE DATE.This section is effective for taxable years beginning after 166.14December 31, 2013.166.15    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 subdivision 19f, in excess 166.21of $25,000 that is allocable to this state under section 
         290.17, 
         290.191, or 
         290.20; or166.22(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 
         290.20.166.25EFFECTIVE DATE.This section is effective for taxable years beginning after 166.26December 31, 2013.166.27    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; and167.11    (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; and167.24    (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; and168.11    (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; and168.23    (iii) private roads in townships located outside of the seven-county metropolitan area 168.24up to the point of the emergency response location sign; and168.25    (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; and169.15    (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.170.6EFFECTIVE DATE.This section is effective the day following final enactment.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 five 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:;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; and170.23(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; or170.27(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.171.3EFFECTIVE DATE.This section is effective the day following final enactment.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 171.18297A.71, subdivision 17;171.19    (7) (6) materials and supplies for qualified low-income housing under section 171.20297A.71, subdivision 23
         ;171.21    (8) (7) materials, supplies, and equipment for municipal electric utility facilities 171.22under section 
         297A.71, subdivision 35;171.23    (9) (8) 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) (9) commuter rail vehicle and repair parts under section 
         297A.70, subdivision 171.273, paragraph (a), clause (10);171.28    (11) (10) 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) (11) 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
         ; and172.5(iv) an industrial measurement manufacturing and controls facility exempt under 172.6section 
         297A.71, subdivision 47;172.7(14) (12) 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) (13) materials, supplies, and equipment for qualifying capital projects under 172.10section 
         297A.71, subdivision 44;172.11(16) (14) items purchased for use in providing critical access dental services exempt 172.12under section 
         297A.70, subdivision 7, paragraph (c); and172.13(17) (15) items and services purchased under a business subsidy agreement for use or 172.14consumption primarily in greater Minnesota exempt under section 
         297A.68, subdivision 44.172.15EFFECTIVE DATE.This section is effective the day following final enactment.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) (14), the applicant must be the 172.22purchaser;172.23    (2) for subdivision 1, clauses clause (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) (6), the owner of the qualified low-income housing 172.30project;172.31    (6) for subdivision 1, clause (8) (7), 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) (8), (11), (12), and (17) (15), 172.34the owner of the qualifying business; and173.1    (8) for subdivision 1, clauses (9), (10), (11), and (15) (13), the applicant must be the 173.2governmental entity that owns or contracts for the project or facility.173.3EFFECTIVE DATE.This section is effective the day following final enactment.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) (13), or (17) (15), 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 297A.71, 173.18subdivision 40, must not be filed until after June 30, 2009.173.19EFFECTIVE DATE.This section is effective the day following final enactment.173.20    Sec. 76. Minnesota Statutes 2012, section 297A.94, is amended to read:173.21297A.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; and173.29(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); and174.9(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; and174.29(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 15.175.9EFFECTIVE DATE.This section is effective the day following final enactment.175.10    Sec. 77. Minnesota Statutes 2012, section 297B.09, is amended to read:175.11297B.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 16A.88, and 1.5 percent 175.17must be deposited in the greater Minnesota transit account under section 16A.88. 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 16A.88, 1.75 175.22percent must be deposited in the greater Minnesota transit account under section 16A.88, 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 16A.88, 3.5 175.27percent must be deposited in the greater Minnesota transit account under section 16A.88, 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; and175.32(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 16A.88, 3.75 176.4percent must be deposited in the greater Minnesota transit account under section 16A.88, 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; and176.9(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,(b) 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) (c) It is the intent of the legislature that the allocations under paragraph (f) (b)176.16 remain unchanged for fiscal year 2012 and all subsequent fiscal years.176.17EFFECTIVE DATE.This section is effective the day following final enactment.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.176.26EFFECTIVE DATE.This section is effective the day following final enactment.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 annually 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; and178.1(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; and178.8(v) the final product is accepted for use;178.9(8) waste and waste by-products for which the tax has been paid; and178.10(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 1.5 percent 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.178.21EFFECTIVE DATE.This section is effective the day following final enactment.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; and178.30    (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 site on which the tax under this section is 179.11not imposed 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 a county imposing the tax under 179.17this section on December 31, 2014, or 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.179.24EFFECTIVE DATE.This section is effective January 1, 2015.179.25    Sec. 82. Minnesota Statutes 2012, section 412.131, is amended to read:179.26412.131 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.180.9EFFECTIVE DATE.This section is effective the day following final enactment.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) (2) the fire departments covered by the voluntary statewide lump-sum volunteer 180.20firefighter retirement plan; and180.21    (4) (3) 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.180.33EFFECTIVE DATE.This section is effective the day following final enactment.181.1    Sec. 84. Minnesota Statutes 2013 Supplement, section 465.04, is amended to read:181.2465.04 ACCEPTANCE OF GIFTS.181.3    Cities A city 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 operating under a 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 to181.7 may receive and accept gifts and donations for the use and benefit of such cities and the 181.8city and its inhabitants thereof upon terms and conditions to be approved by the governing 181.9bodies body of such cities; and such cities are authorized to comply with and perform such181.10 the city. The 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 the 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.182.5EFFECTIVE DATE.This section is effective the day following final enactment.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 before182.9 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 273.73, 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) (b) 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) (c) Increments used to pay the county's administrative expenses under 182.24subdivision 4h are not subject to the percentage limits in this subdivision.182.25EFFECTIVE DATE.This section is effective the day following final enactment.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; and183.27    (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; and183.30    (3) be used to:183.31    (i) acquire and prepare the site of the housing;183.32    (ii) acquire, construct, or rehabilitate the housing; or183.33    (iii) make public improvements directly related to the housing; or183.34(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; or184.3(B) $200,000 for municipalities located in the metropolitan area, as defined in 184.4section 
         473.121, or $125,000 for all other municipalities; and184.5(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. The authority provided by 184.18this paragraph expires for expenditures made after the later of (1) December 31, 2015, 184.19or (2) the end of the five-year period beginning on the date the district was certified, 184.20provided that date was before January 1, 2016.184.21(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.184.26EFFECTIVE DATE.This section is effective the day following final enactment 184.27and applies to all districts, regardless of when the request for certification was made.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.185.27EFFECTIVE DATE.This section is effective the day following final enactment.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 $100,000.186.1EFFECTIVE DATE.This section is effective the day following final enactment.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 and 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.187.9EFFECTIVE DATE.This section is effective the day following final enactment.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), or477A.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.187.25EFFECTIVE DATE.This section is effective the day following final enactment.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 188.2477A.0124, subdivision 1, clause (4), or477A.03, subdivision 2b, paragraph (a).188.3EFFECTIVE DATE.This section is effective the day following final enactment.188.4    Sec. 93. REVISOR'S INSTRUCTION.188.5The revisor of statutes shall make all necessary cross-reference changes in 188.6Minnesota Statutes and Minnesota Rules consistent with the amendments and repealers in 188.7this article. The revisor can make changes to sentence structure to preserve the meaning of 188.8the text. The revisor shall make other changes in chapter titles; section, subdivision, part, 188.9and subpart headnotes; and in other terminology necessary as a result of the enactment of 188.10this act. The Department of Revenue shall assist in making these corrections.188.11    Sec. 94.  REPEALER.188.12(a) Minnesota Statutes 2012, sections 273.1398, subdivision 4b; 290.01, subdivision 188.1319e; 290.0674, subdivision 3; 290.191, subdivision 4; and 290.33, and Minnesota Rules, 188.14part 8007.0200, are repealed.188.15(b) Minnesota Statutes 2012, sections 16D.02, subdivisions 5 and 8; 16D.11, 188.16subdivision 2; 270C.53; 270C.991, subdivision 4; 272.02, subdivisions 1, 1a, 43, 48, 51, 188.1753, 67, 72, and 82; 272.027, subdivision 2; 272.031; 273.015, subdivision 1; 273.03, 188.18subdivision 3; 273.075; 273.13, subdivision 21a; 273.1383; 273.1386; 273.80; 275.77; 188.19279.32; 281.173, subdivision 8; 281.174, subdivision 8; 281.328; 282.10; 282.23; 287.20, 188.20subdivision 4; 287.27, subdivision 2; 290.01, subdivisions 4b and 20e; 295.52, subdivision 188.217; 297A.666; 297A.71, subdivisions 4, 5, 7, 9, 10, 17, 18, 20, 32, and 41; 297F.08, 188.22subdivision 11; 297H.10, subdivision 2; 469.174, subdivision 10c; 469.175, subdivision 188.232b; 469.176, subdivision 1i; 469.177, subdivision 10; 477A.0124, subdivisions 1 and 6; 188.24and 505.173,Minnesota Statutes 2013 Supplement, section 273.1103, Laws 1993, chapter 188.25375, article 9, section 47,  and Minnesota Rules, parts 8002.0200, subpart 8; 8100.0800; 188.26and 8130.7500, subpart 7, are repealed.188.27(c) Minnesota Statutes 2012, section 469.1764, is repealed.188.28(d) Minnesota Statutes 2012, sections 289A.56, subdivision 7; 297A.68, subdivision 188.2938; 469.330; 469.331; 469.332; 469.333; 469.334; 469.335; 469.336; 469.337; 469.338; 188.30469.339; 469.340, subdivisions 1, 2, 3, and 5; and 469.341, and Minnesota Statutes 2013 188.31Supplement, section 469.340, subdivision 4, are repealed.188.32(e) Minnesota Statutes 2012, section 290.06, subdivisions 30 and 31, are repealed.189.1EFFECTIVE DATE.Paragraph (a) is effective for taxable years beginning after 189.2December 31, 2013.189.3Paragraph (b) is effective the day following final enactment.189.4Paragraph (c) is effective the day following final enactment and any remaining 189.5unexpended tax increments from a district subject to Minnesota Statutes, section 469.1764, 189.6must be distributed as excess increments to the city, county, and school district under 189.7Minnesota Statutes, section 469.176, subdivision 2, paragraph (c), clause (4), on or before 189.8December 31, 2014.189.9Paragraph (d) is effective the day following final enactment.189.10Paragraph (e) is effective for taxable years beginning after December 31, 2013.189.11ARTICLE 10189.12DEPARTMENT OF REVENUE - TECHNICAL AND POLICY 189.13PROPERTY TAX PROVISIONS189.14    Section 1. Minnesota Statutes 2012, section 270.87, is amended to read:189.15270.87 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. The 189.25commissioner may correct errors that are merely clerical in nature until December 31.189.26EFFECTIVE DATE.This section is effective the day following final enactment.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. The commissioner may correct errors that are merely clerical 189.34in nature until December 31.190.1EFFECTIVE DATE.This section is effective the day following final enactment.190.2    Sec. 3. Minnesota Statutes 2012, section 273.01, is amended to read:190.3273.01 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 for real or personal property 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.190.29EFFECTIVE DATE.This section is effective the day following final enactment.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; and191.12    (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; and192.36    (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; or193.8    (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; and193.22    (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; and194.18    (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; and194.26    (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; and194.29    (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; and195.1    (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; and195.28(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 has a classification rate of 0.75 percent 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.196.29EFFECTIVE DATE.This section is effective beginning with assessment year 2014.196.30    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 30 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.197.24EFFECTIVE DATE.This section is effective January 1, 2014.197.25    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 The commissioner may correct errors that are merely clerical in nature until December 31.198.11EFFECTIVE DATE.This section is effective the day following final enactment.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. The commissioner may correct errors that 198.25are merely clerical in nature until December 31.198.26EFFECTIVE DATE.This section is effective the day following final enactment.198.27    Sec. 8. Minnesota Statutes 2012, section 273.3711, is amended to read:198.28273.3711 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. The 199.2commissioner may correct errors that are merely clerical in nature until December 31.199.3EFFECTIVE DATE.This section is effective the day following final enactment.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 either at a central location within the county or 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.201.7EFFECTIVE DATE.This section is effective the day following final enactment.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, February 1 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 previous 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 current 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 February 1 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.201.31EFFECTIVE DATE.This section is effective beginning with local boards of appeal 201.32and equalization meetings held after February 1, 2016.202.1    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 1 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.202.23EFFECTIVE DATE.This section is effective retroactively from June 1, 2013.202.24    Sec. 12. REVISOR'S INSTRUCTION.202.25The revisor of statutes shall change the terms "class rate" or "class rates" to 202.26"classification rate" or "classification rates" or similar terms wherever they appear in 202.27Minnesota Statutes when the terms are being used to refer to the calculation of net tax 202.28capacity in the property tax system. The revisor can make changes to sentence structure 202.29to preserve the meaning of the text. The revisor shall make other changes in section and 202.30subdivision headnotes and in other terminology as necessary as a result of the enactment 202.31of this section. The Department of Revenue shall assist in making these corrections.203.1ARTICLE 11203.2DEPARTMENT OF REVENUE - TECHNICAL AND POLICY INCOME AND 203.3FRANCHISE, SALES AND USE, AND MISCELLANEOUS TAX PROVISIONS203.4    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, or a request for abatement of interest or additional tax 203.7charge, 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, 203.10interest, or additional tax charge, 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 
         271.06.203.15EFFECTIVE DATE.This section is effective the day following final enactment.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, or within one year after the date of a final administrative or judicial determination, 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.204.9EFFECTIVE DATE.This section is effective the day following final enactment.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 204.12withholding from payments to out-of-state contractors, and withholding returns 204.13from partnerships and S corporations.(a) Withholding returns for the first, second,204.14and 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(b) A seasonal employer who provides notice in the form and manner prescribed 204.27by the commissioner before the end of the calendar quarter is not required to file a 204.28withholding tax return for periods of anticipated inactivity unless the employer pays wages 204.29during the period from which tax is withheld. For purposes of this paragraph, a seasonal 204.30employer is an employer that regularly, in the same one or more quarterly periods of each 204.31calendar year, pays no wages to employees.204.32EFFECTIVE DATE.(a) The amendments in paragraph (a) are effective for returns 204.33due after January 1, 2016.205.1(b) The amendment adding paragraph (b) is effective for wages paid after December 205.231, 2015.205.3    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; and205.15    (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.207.25EFFECTIVE DATE.This section is effective the day following final enactment.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 motor 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.207.32EFFECTIVE DATE.This section is effective the day following final enactment.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; and208.11(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 commissioner of revenue may deduct and retain deposit in a 208.15special revenue account an amount, not to exceed two percent of collected fees,. Money 208.16in the account is annually appropriated to the commissioner of revenue 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.208.19EFFECTIVE DATE.This section is effective retroactively from January 1, 2014.208.20    Sec. 7. Laws 2013, chapter 143, article 8, section 3, the effective date, is amended to 208.21read:208.22EFFECTIVE DATE.This section is effective for sales and purchases made after 208.23June 30, 2013, except for paragraph (p), which is effective the day following final 208.24enactment.208.25EFFECTIVE DATE.This section is effective retroactively from the day following 208.26final enactment of Laws 2013, chapter 143, article 8, section 3.208.27    Sec. 8.  REPEALER.208.28Minnesota Rules, parts 8130.8900, subpart 3; and 8130.9500, subparts 1, 1a, 2, 208.293, 4, and 5, are repealed.208.30EFFECTIVE DATE.This section is effective the day following final enactment."208.31Delete the title and insert:208.32"A bill for an act209.1relating 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."

211.1We request the adoption of this report and repassage of the bill.211.2House Conferees:211.3
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                     						211.4Ann LenczewskiJim Davnie211.5
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                     						211.6Greg DavidsPaul Torkelson211.7
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                     						211.8Linda Slocum211.9Senate Conferees:211.10
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                     						211.11Rod SkoeAnn H. Rest211.12
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                     						211.13Kari DziedzicLyle Koenen211.14
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                     						211.15Paul E. Gazelka