HF 3167

1st Unofficial Engrossment - 88th Legislature (2013 - 2014)

Posted on 04/08/2014 08:02 p.m.

1.1A bill for an act 1.2relating to financing of state and local government; making changes to individual 1.3income, property, sales and use, excise, estate, mineral, tobacco, alcohol, special, 1.4local, and other taxes and tax-related provisions; modifying local government 1.5aids; modifying exclusions, exemptions, and levy deadlines; modifying sales, 1.6use, and excise tax exemptions; changing sales, use, and excise tax remittances; 1.7modifying certain local sales and use taxes; modifying income tax credits 1.8and subtractions; clarifying estate tax provisions; providing for certain local 1.9development projects; changing license revocation procedures; modifying 1.10installment payments; removing obsolete, redundant, and unnecessary laws and 1.11administrative rules administered by the Department of Revenue; making various 1.12policy and technical changes; requiring reports; modifying special service 1.13districts; repealing purpose statements and certain reporting requirements; 1.14increasing certain abatement authority; reallocating certain bond payments; 1.15requiring fund transfer; modifying tax increment finance rules; appropriating 1.16money;amending Minnesota Statutes 2012, sections 16D.02, subdivisions 3, 1.176; 16D.04, subdivisions 3, 4; 16D.07; 16D.11, subdivisions 1, 3, 7; 84A.20, 1.18subdivision 2; 84A.31, subdivision 2; 115B.49, subdivision 4; 116J.8737, 1.19subdivision 5, as amended; 163.06, subdivision 1; 270.11, subdivision 1; 270.12, 1.20subdivisions 2, 4; 270.87; 270A.03, subdivision 2; 270B.14, subdivision 3; 1.21270C.085; 270C.34, subdivision 2; 270C.52, subdivision 2; 270C.56, subdivision 1.223; 270C.72, subdivisions 1, 3; 272.01, subdivisions 1, 3; 272.02, subdivisions 10, 1.2393; 272.0211, subdivisions 1, 2, by adding a subdivision; 272.025, subdivision 1.241; 272.027, subdivision 1; 272.029, subdivisions 4a, 6; 272.03, subdivision 1.251; 273.01; 273.061, subdivision 6; 273.10; 273.11, subdivision 13; 273.112, 1.26subdivision 6a; 273.13, subdivision 22; 273.18; 273.33, subdivision 2; 273.37, 1.27subdivision 2; 273.3711; 274.01, subdivisions 1, 2; 274.014, subdivision 3; 1.28275.065, subdivision 1; 275.08, subdivisions 1a, 1d; 275.74, subdivision 2; 1.29275.75; 279.03, subdivisions 1, 1a, 2; 279.16; 279.23; 279.25; 280.001; 280.03; 1.30280.07; 280.11; 281.03; 281.327; 282.01, subdivision 6; 282.04, subdivision 1.314; 282.261, subdivisions 2, 4, 5; 282.322; 287.30; 289A.02, subdivision 7, 1.32as amended; 289A.18, subdivision 2; 289A.25, subdivision 1; 289A.60, 1.33subdivision 15; 290.01, subdivisions 5, 7, 19f, 29; 290.015, subdivision 1; 1.34290.0677, subdivisions 1, 1a; 290.07, subdivisions 1, 2; 290.081; 290.0922, 1.35subdivision 3; 290.095, subdivision 3; 290.9728, subdivision 2; 296A.01, 1.36subdivision 16; 297A.67, subdivision 13a, by adding subdivisions; 297A.68, 1.37by adding a subdivision; 297A.70, subdivision 10, by adding a subdivision; 1.38297A.94; 297B.09; 297F.03, subdivision 2; 297F.09, subdivision 10; 297G.09, 1.39subdivision 9; 297I.05, subdivision 14; 298.28, subdivisions 5, as amended, 2.17a, as added; 298.75, subdivision 2; 383E.21, subdivisions 1, 2; 412.131; 2.2469.176, subdivisions 1b, 3; 469.1763, subdivision 3; 473.665, subdivision 5; 2.3477A.0124, subdivisions 3, 5, by adding a subdivision; 477A.014, subdivision 2.41; 611.27, subdivisions 13, 15; Minnesota Statutes 2013 Supplement, sections 2.5116J.8738, subdivisions 2, 3, 4; 116V.03; 136A.129, subdivisions 1, 3, 5; 2.6144F.01, subdivision 4; 270B.01, subdivision 8; 270B.03, subdivision 1; 273.13, 2.7subdivision 25; 273.1325, subdivisions 1, 2; 275.70, subdivision 5; 279.37, 2.8subdivision 2; 281.17; 289A.20, subdivision 4; 290.01, subdivisions 19, as 2.9amended, 19b, as amended, 19d, 31, as amended; 290.091, subdivision 2, as 2.10amended; 290.0921, subdivision 3; 290.191, subdivision 5; 290A.03, subdivision 2.1115, as amended; 291.005, subdivision 1, as amended; 297A.61, subdivision 3, 2.12as amended; 297A.68, subdivisions 42, 44; 297A.70, subdivisions 2, 13, 14; 2.13297A.75, subdivisions 1, 2, 3; 297B.01, subdivision 16; 297F.05, subdivision 1; 2.14298.28, subdivision 4; 360.531, subdivision 2; 403.162, subdivision 5; 423A.02, 2.15subdivision 3; 423A.022, subdivision 3; 428A.02, subdivision 1; 469.1763, 2.16subdivision 2; 477A.0124, subdivision 2; 477A.013, subdivision 8; 477A.03, 2.17subdivision 2b; 477A.12, subdivisions 1, 2; 477A.14, subdivision 1; Laws 1980, 2.18chapter 511, section 1, subdivision 2, as amended; Laws 1999, chapter 243, 2.19article 14, section 5, subdivision 1; Laws 2005, First Special Session chapter 2.203, article 5, section 38, subdivision 4; Laws 2006, chapter 257, section 2, as 2.21amended; Laws 2008, chapter 366, article 10, section 15; Laws 2013, chapter 2.22143, article 8, sections 3; 22; 23; 27; 37; article 9, section 23; article 11, section 2.2310; Laws 2014, chapter 150, article 3, section 4; proposing coding for new law 2.24in Minnesota Statutes, chapters 168A; 290; repealing Minnesota Statutes 2012, 2.25sections 3.192; 16D.02, subdivisions 5, 8; 16D.11, subdivision 2; 270C.131; 2.26270C.53; 270C.991, subdivision 4; 272.02, subdivisions 1, 1a, 48, 51, 53, 67, 72, 2.2782; 272.027, subdivision 2; 272.031; 273.015, subdivision 1; 273.03, subdivision 2.283; 273.075; 273.1383; 273.1386; 273.80; 275.77; 279.32; 281.173, subdivision 2.298; 281.174, subdivision 8; 281.328; 282.10; 282.23; 287.20, subdivision 4; 2.30287.27, subdivision 2; 289A.56, subdivision 7; 290.01, subdivisions 4b, 19e, 2.3120e; 290.06, subdivisions 30, 31; 290.0674, subdivision 3; 290.33; 295.52, 2.32subdivision 7; 297A.68, subdivision 38; 297A.71, subdivisions 4, 5, 7, 10, 2.3317, 18, 20, 32; 297F.08, subdivision 11; 297H.10, subdivision 2; 469.174, 2.34subdivision 10c; 469.175, subdivision 2b; 469.176, subdivision 1i; 469.1764; 2.35469.177, subdivision 10; 469.330; 469.331; 469.332; 469.333; 469.334; 469.335; 2.36469.336; 469.337; 469.338; 469.339; 469.340, subdivisions 1, 2, 3, 5; 469.341; 2.37477A.0124, subdivisions 1, 6; 505.173; Minnesota Statutes 2013 Supplement, 2.38section 469.340, subdivision 4; Laws 1961, chapter 372, sections 1; 2; Laws 2.391963, chapter 118, sections 1, as amended; 2, as amended; 3; 4, as amended; 5; 2.406, as amended; 7; 8; 9; 10; Laws 1996, chapter 471, article 8, sections 19; 20; 2.4121; 22; Minnesota Rules, parts 8002.0200, subpart 8; 8007.0200; 8100.0800; 2.428130.7500, subpart 7; 8130.8900, subpart 3; 8130.9500, subparts 1, 1a, 2, 3, 4, 5. 2.43BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.44ARTICLE 1 2.45PROPERTY TAX 2.46    Section 1. Minnesota Statutes 2013 Supplement, section 144F.01, subdivision 4, 2.47is amended to read: 2.48    Subd. 4. Property tax levy authority. The district's board may levy a tax on the 2.49taxable real and personal property in the district. The ad valorem tax levy may not exceed 2.500.048 percent of the estimated market value of the district or $400,000 new text begin $550,000 new text end , whichever 3.1is less. The proceeds of the levy must be used as provided in subdivision 5. The board shall 3.2certify the levy at the times as provided under section 275.07. The board shall provide the 3.3county with whatever information is necessary to identify the property that is located within 3.4the district. If the boundaries include a part of a parcel, the entire parcel shall be included 3.5in the district. The county auditors must spread, collect, and distribute the proceeds of the 3.6tax at the same time and in the same manner as provided by law for all other property taxes. 3.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessments in 2015, taxes new text end 3.8 new text begin payable in 2016, and thereafter. new text end 3.9    Sec. 2. Minnesota Statutes 2012, section 272.02, subdivision 10, is amended to read: 3.10    Subd. 10. Personal property used for pollution control. Personal property used 3.11primarily for the abatement and control of air, water, or land pollution is exempt to the 3.12extent that it is so used, and real property is exempt if it is used primarily for abatement 3.13and control of air, water, or land pollution as part of an agricultural operation, as a part 3.14of a centralized treatment and recovery facility operating under a permit issued by the 3.15Minnesota Pollution Control Agency pursuant to chapters 115 and 116 and Minnesota 3.16Rules, parts 7001.0500 to 7001.0730, and 7045.0020 to 7045.1260, as a wastewater 3.17treatment facility and for the treatment, recovery, and stabilization of metals, oils, 3.18chemicals, water, sludges, or inorganic materials from hazardous industrial wastes, or as 3.19part of an electric generation system. For purposes of this subdivision, personal property 3.20includes ponderous machinery and equipment used in a business or production activity 3.21that at common law is considered real property. 3.22Any taxpayer requesting exemption of all or a portion of any real property or any 3.23equipment or device, or part thereof, operated primarily for the control or abatement of air, 3.24water, or land pollution shall file an application with the commissioner of revenue. new text begin If the new text end 3.25 new text begin property is an electric power generation facility located in a city, then the commissioner new text end 3.26 new text begin shall notify the county assessor, city finance officer, and superintendent of the school new text end 3.27 new text begin district of the jurisdictions that host the facility that the application has been received. new text end The 3.28Minnesota Pollution Control Agency shall upon request of the commissioner furnish 3.29information and advice to the commissioner. 3.30The information and advice furnished by the Minnesota Pollution Control Agency 3.31must include statements as to whether the equipment, device, or real property meets 3.32a standard, rule, criteria, guideline, policy, or order of the Minnesota Pollution Control 3.33Agency, and whether the equipment, device, or real property is installed or operated 3.34in accordance with it. On determining that property qualifies for exemption, the 3.35commissioner shall issue an order exempting the property from taxation. new text begin If the property is new text end 4.1 new text begin an electric power generation facility located in a city, then the commissioner shall provide new text end 4.2 new text begin notification of the order to the county assessor, city finance officer, and superintendent new text end 4.3 new text begin of the school district of the jurisdictions that host the facility. new text end The equipment, device, or 4.4real property shall continue to be exempt from taxation as long as the order issued by the 4.5commissioner remains in effect. 4.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 4.7    Sec. 3. Minnesota Statutes 2012, section 272.02, subdivision 93, is amended to read: 4.8    Subd. 93. Electric generation facility; personal property. Notwithstanding 4.9subdivision 9, clause (a), attached machinery and other personal property that is part of 4.10a simple-cycle electric generation facility of more than 40 megawatts and less than 125 4.11megawatts of installed capacity and that meets the requirements of this subdivision is 4.12exempt. At the time of construction, the facility must: 4.13(1) utilize natural gas as a primary fuel; 4.14(2) be located within two miles of parallel existing 36-inch natural gas pipelines and 4.15an existing 115-kilovolt high-voltage electric transmission line; 4.16(3) be designed to provide peaking, emergency backup, or contingency services; 4.17(4) satisfy a resource deficiency identified in an approved integrated resource plan 4.18filed under section 216B.2422; and 4.19(5) have an agreement with the host county, township, and school district for 4.20payment in lieu of personal property taxes to the host county, township, and school district 4.21for the operating life of the facility. Any amount distributed to the school district is not 4.22subject to the deductions under section 126C.21. 4.23Construction of the facility must be commenced after January 1, 2010 new text begin 2015 new text end , and 4.24before January 1, 2014 new text begin 2019 new text end . Property eligible for this exemption does not include electric 4.25transmission lines and interconnections or gas pipelines and interconnections appurtenant 4.26to the property or the facility. 4.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessments in 2015, taxes new text end 4.28 new text begin payable in 2016, and thereafter. new text end 4.29    Sec. 4. Minnesota Statutes 2012, section 272.0211, subdivision 1, is amended to read: 4.30    Subdivision 1. Efficiency determination and certification. An owner or operator 4.31of a new or existing electric power generation facility, excluding wind energy conversion 4.32systems, may apply to the commissioner of revenue for a market value exclusion on the 4.33property as provided for in this section. This exclusion shall apply only to the market 5.1value of the equipment of the facility, and shall not apply to the structures and the land 5.2upon which the facility is located. The commissioner of revenue shall prescribe the forms 5.3and procedures for this application. Upon receiving the application, the commissioner of 5.4revenue shall new text begin : (1) new text end request the commissioner of commerce to make a determination of the 5.5efficiency of the applicant's electric power generation facility new text begin ; and (2) if the facility is in new text end 5.6 new text begin a city, notify the county assessor, city finance officer, and superintendent of the school new text end 5.7 new text begin district of the jurisdictions that host the facility that an application for an exclusion is being new text end 5.8 new text begin processed new text end . The commissioner of commerce shall calculate efficiency as the ratio of useful 5.9energy outputs to energy inputs, expressed as a percentage, based on the performance of 5.10the facility's equipment during normal full load operation. The commissioner must include 5.11in this formula the energy used in any on-site preparation of materials necessary to convert 5.12the materials into the fuel used to generate electricity, such as a process to gasify petroleum 5.13coke. The commissioner shall use the Higher Heating Value (HHV) for all substances in 5.14the commissioner's efficiency calculations, except for wood for fuel in a biomass-eligible 5.15project under section 216B.2424; for these instances, the commissioner shall adjust the 5.16heating value to allow for energy consumed for evaporation of the moisture in the wood. 5.17The applicant shall provide the commissioner of commerce with whatever information the 5.18commissioner deems necessary to make the determination. Within 30 days of the receipt 5.19of the necessary information, the commissioner of commerce shall certify the findings of 5.20the efficiency determination to the commissioner of revenue and to the applicant. The 5.21commissioner of commerce shall determine the efficiency of the facility and certify the 5.22findings of that determination to the commissioner of revenue every two years thereafter 5.23from the date of the original certification. 5.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 5.25    Sec. 5. Minnesota Statutes 2012, section 272.0211, subdivision 2, is amended to read: 5.26    Subd. 2. Sliding scale exclusion. Based upon the efficiency determination provided 5.27by the commissioner of commerce as described in subdivision 1, the commissioner of 5.28revenue shall subtract eight percent of the taxable market value of the qualifying property 5.29for each percentage point that the efficiency of the specific facility, as determined by the 5.30commissioner of commerce, is above 40 percent. The reduction in taxable market value 5.31shall be reflected in the taxable market value of the facility beginning with the assessment 5.32year immediately following the determination. new text begin If the facility is located in a city, the new text end 5.33 new text begin commissioner shall notify the county assessor, city finance officer, and superintendent of new text end 5.34 new text begin the school district of the jurisdictions that host the facility of the reduction in taxable new text end 5.35 new text begin market value. new text end For a facility that is assessed by the county in which the facility is located, 6.1the commissioner of revenue shall certify to the assessor of that county the percentage 6.2of the taxable market value of the facility to be excluded. 6.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 6.4    Sec. 6. Minnesota Statutes 2012, section 272.0211, is amended by adding a subdivision 6.5to read: 6.6     new text begin Subd. 5. new text end new text begin Limitation. new text end new text begin This section applies only to an electric power generation new text end 6.7 new text begin facility that was eligible for the exclusion under this section for taxes payable in 2014. new text end 6.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2014 and new text end 6.9 new text begin thereafter. new text end 6.10    Sec. 7. Minnesota Statutes 2012, section 272.03, subdivision 1, is amended to read: 6.11    Subdivision 1. Real property. (a) For the purposes of taxation, "real property" 6.12includes the land itself, rails, ties, and other track materials annexed to the land, and all 6.13buildings, structures, and improvements or other fixtures on it, bridges of bridge companies, 6.14and all rights and privileges belonging or appertaining to the land, and all mines, iron ore 6.15and taconite minerals not otherwise exempt, quarries, fossils, and trees on or under it. 6.16(b) A building or structure shall include the building or structure itself, together with 6.17all improvements or fixtures annexed to the building or structure, which are integrated 6.18with and of permanent benefit to the building or structure, regardless of the present use 6.19of the building, and which cannot be removed without substantial damage to itself or to 6.20the building or structure. 6.21(c)(i) Real property does not include tools, implements, machinery, and equipment 6.22attached to or installed in real property for use in the business or production activity 6.23conducted thereon, regardless of size, weight or method of attachment, and mine shafts, 6.24tunnels, and other underground openings used to extract ores and minerals taxed under 6.25chapter 298 together with steel, concrete, and other materials used to support such openings. 6.26(ii) The exclusion provided in clause (i) shall not apply to machinery and equipment 6.27includable as real estate by paragraphs (a) and (b) even though such machinery and 6.28equipment is used in the business or production activity conducted on the real property if 6.29and to the extent such business or production activity consists of furnishing services or 6.30products to other buildings or structures which are subject to taxation under this chapter. 6.31(iii) The exclusion provided in clause (i) does not apply to the exterior shell of a 6.32structure which constitutes walls, ceilings, roofs, or floors if the shell of the structure has 6.33structural, insulation, or temperature control functions or provides protection from the 7.1elements new text begin , unless the structure is primarily used in the production of biofuels, wine, beer, new text end 7.2 new text begin distilled beverages, or dairy products new text end . Such an exterior shell is included in the definition 7.3of real property even if it also has special functions distinct from that of a building new text begin , or if new text end 7.4 new text begin such an exterior shell is primarily used for the storage of ingredients or materials used in new text end 7.5 new text begin the production of biofuels, wine, beer, distilled beverages, or dairy products or the storage new text end 7.6 new text begin of finished biofuels, wine, beer, distilled beverages, or dairy products new text end . 7.7(d) The term real property does not include tools, implements, machinery, 7.8equipment, poles, lines, cables, wires, conduit, and station connections which are part of a 7.9telephone communications system, regardless of attachment to or installation in real 7.10property and regardless of size, weight, or method of attachment or installation. 7.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with assessment year 2015. new text end 7.12    Sec. 8. Minnesota Statutes 2012, section 275.065, subdivision 1, is amended to read: 7.13    Subdivision 1. Proposed levy. (a) Notwithstanding any law or charter to the 7.14contrary, on or before September 15 new text begin 30 new text end , each taxing authority, other than a school district, 7.15shall adopt a proposed budget and new text begin county and each home rule charter or statutory city new text end shall 7.16certify to the county auditor the proposed or, in the case of a town, the final property tax 7.17levy for taxes payable in the following year. 7.18    (b) new text begin Notwithstanding any law or charter to the contrary, on or before September 15, new text end 7.19 new text begin each town and each special taxing district shall adopt and certify to the county auditor a new text end 7.20 new text begin proposed property tax levy for taxes payable in the following year. For towns, the final new text end 7.21 new text begin certified levy shall also be considered the proposed levy. new text end 7.22     new text begin (c) new text end On or before September 30, each school district that has not mutually agreed 7.23with its home county to extend this date shall certify to the county auditor the proposed 7.24property tax levy for taxes payable in the following year. Each school district that has 7.25agreed with its home county to delay the certification of its proposed property tax levy 7.26must certify its proposed property tax levy for the following year no later than October 7.277. The school district shall certify the proposed levy as: 7.28    (1) a specific dollar amount by school district fund, broken down between 7.29voter-approved and non-voter-approved levies and between referendum market value 7.30and tax capacity levies; or 7.31    (2) the maximum levy limitation certified by the commissioner of education 7.32according to section 126C.48, subdivision 1. 7.33    (c) new text begin (d) new text end If the board of estimate and taxation or any similar board that establishes 7.34maximum tax levies for taxing jurisdictions within a first class city certifies the maximum 7.35property tax levies for funds under its jurisdiction by charter to the county auditor by 8.1September 15 new text begin the date specified in paragraph (a) new text end , the city shall be deemed to have certified 8.2its levies for those taxing jurisdictions. 8.3    (d) new text begin (e) new text end For purposes of this section, "taxing authority" includes all home rule and 8.4statutory cities, towns, counties, school districts, and new text begin "special taxing district" means a new text end 8.5 special taxing districts new text begin district new text end as defined in section 275.066. Intermediate school districts 8.6that levy a tax under chapter 124 or 136D, joint powers boards established under sections 8.7123A.44 to 123A.446, and Common School Districts No. 323, Franconia, and No. 815, 8.8Prinsburg, are also special taxing districts for purposes of this section. 8.9(e) new text begin (f) new text end At the meeting at which the new text begin a new text end taxing authority, other than a town, adopts its 8.10proposed tax levy under paragraph (a) or (b) new text begin this subdivision new text end , the taxing authority shall 8.11announce the time and place of its subsequent regularly scheduled meetings at which 8.12the budget and levy will be discussed and at which the public will be allowed to speak. 8.13The time and place of those meetings must be included in the proceedings or summary 8.14of proceedings published in the official newspaper of the taxing authority under section 8.15123B.09 , 375.12, or 412.191. 8.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with taxes payable in 2015. new text end 8.17    Sec. 9. Minnesota Statutes 2012, section 279.03, subdivision 2, is amended to read: 8.18    Subd. 2. Composite judgment. Amounts included in composite judgments 8.19authorized by section 279.37, subdivision 1, and confessed on or after July 1, 1982, are 8.20subject to interest at the rate determined pursuant to section . Amounts confessed 8.21under this authority after December 31, 1990, new text begin (a) Except as provided in paragraph (b), new text end 8.22 new text begin amounts included in composite judgments authorized by section 279.37, subdivision 1, new text end 8.23 are subject to interest at the rate calculated under subdivision 1a. During each calendar 8.24year, interest shall accrue on the unpaid balance of the composite judgment from the time 8.25it is confessed until it is paid. The rate of interest is subject to change each year in the 8.26same manner that section or subdivision 1a, whichever is applicable, for rate 8.27changes. Interest on the unpaid contract balance on judgments confessed before July 1, 8.281982, is payable at the rate applicable to the judgment at the time that it was confessed 8.29 new text begin The interest rate established at the time the judgment is confessed shall remain for the new text end 8.30 new text begin duration of that judgment new text end . 8.31 new text begin (b) A confession of judgment covering any part of a parcel classified as 1a or 1b, and new text end 8.32 new text begin used as the primary homestead of the owner, is subject to interest at the rate provided in new text end 8.33 new text begin section 279.37, subdivision 2, paragraph (b). new text end 8.34 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2015. new text end 9.1    Sec. 10. Minnesota Statutes 2013 Supplement, section 279.37, subdivision 2, is 9.2amended to read: 9.3    Subd. 2. Installment payments. new text begin (a) new text end The owner of any such parcel, or any person to 9.4whom the right to pay taxes has been given by statute, mortgage, or other agreement, may 9.5make and file with the county auditor of the county in which the parcel is located a written 9.6offer to pay the current taxes each year before they become delinquent, or to contest the 9.7taxes under Minnesota Statutes 1941, sections 278.01 to 278.13, and agree to confess 9.8judgment for the amount provided, as determined by the county auditor. By filing the 9.9offer, the owner waives all irregularities in connection with the tax proceedings affecting 9.10the parcel and any defense or objection which the owner may have to the proceedings, and 9.11also waives the requirements of any notice of default in the payment of any installment or 9.12interest to become due pursuant to the composite judgment to be so entered. Unless the 9.13property is subject to subdivision 1a, with the offer, the owner shall (i) tender one-tenth of 9.14the amount of the delinquent taxes, costs, penalty, and interest, and (ii) tender all current 9.15year taxes and penalty due at the time the confession of judgment is entered. In the offer, 9.16the owner shall agree to pay the balance in nine equal installments, with interest as provided 9.17in section 279.03, payable annually on installments remaining unpaid from time to time, on 9.18or before December 31 of each year following the year in which judgment was confessed. 9.19 new text begin (b) If any part of the parcel consists of real estate classified as 1a or 1b and used new text end 9.20 new text begin as the primary homestead by the owner of the property, the interest rate on offers made new text end 9.21 new text begin under paragraph (a) shall be set annually by the commissioner of revenue at the greater of new text end 9.22 new text begin five percent or two percent above the prime rate charged by banks during the six-month new text end 9.23 new text begin period ending on September 30 of that year, rounded to the nearest full percent, provided new text end 9.24 new text begin that the rate shall not exceed the maximum annum rate specified under section 279.03, new text end 9.25 new text begin subdivision 1a. The rate of interest becomes effective on January 1 of the immediately new text end 9.26 new text begin succeeding year. The determination of the commissioner pursuant to this subdivision shall new text end 9.27 new text begin not be considered a "rule" and shall not be subject to the Administrative Procedure Act new text end 9.28 new text begin contained in chapter 14. In the event of default occurring in the payments to be made new text end 9.29 new text begin under any confessed judgment entered pursuant to this paragraph, the taxes and penalties new text end 9.30 new text begin due shall be subject to the interest rate specified in section 279.03. new text end 9.31 new text begin For purposes of this subdivision: new text end 9.32 new text begin (1) the term "prime rate charged by banks" means the average predominant prime new text end 9.33 new text begin rate quoted by commercial banks to large businesses, as determined by the Board of new text end 9.34 new text begin Governors of the Federal Reserve System; and new text end 10.1 new text begin (2) "default" means the cancellation of the confession of judgment due to new text end 10.2 new text begin nonpayment of the current year tax or failure to make any installment payment required by new text end 10.3 new text begin this confessed judgment within 60 days from the date on which payment was due. new text end 10.4 new text begin (c) The interest rate established at the time the judgment is confessed shall remain new text end 10.5 new text begin for the duration of that judgment. By October 15 of each year, the commissioner of new text end 10.6 new text begin revenue must determine the rate of interest as provided under paragraph (b) and, by new text end 10.7 new text begin November 1 of each year, must certify the rate to the county auditor. new text end 10.8 new text begin (d) A qualified property owner eligible to enter into a second confession of judgment new text end 10.9 new text begin may do so at the interest rate provided in paragraph (b). new text end 10.10 new text begin (e) Repurchase agreements or contracts for repurchase for properties being new text end 10.11 new text begin repurchased under section 282.261 are not eligible to receive the interest rate provided in new text end 10.12 new text begin paragraph (b). new text end 10.13 new text begin (f) new text end The offer must be substantially as follows: 10.14"To the court administrator of the district court of ........... county, I, ....................., 10.15am the owner of the following described parcel of real estate located in .................... 10.16county, Minnesota: 10.17.............................. Upon that real estate there are delinquent taxes for the year ........., and 10.18prior years, as follows: (here insert year of delinquency and the total amount of delinquent 10.19taxes, costs, interest, and penalty). By signing this document I offer to confess judgment in 10.20the sum of $...... and waive all irregularities in the tax proceedings affecting these taxes and 10.21any defense or objection which I may have to them, and direct judgment to be entered for 10.22the amount stated above, minus the sum of $............, to be paid with this document, which 10.23is one-tenth or one-fifth of the amount of the taxes, costs, penalty, and interest stated above. 10.24I agree to pay the balance of the judgment in nine or four equal, annual installments, with 10.25interest as provided in section 279.03, payable annually, on the installments remaining 10.26unpaid. I agree to pay the installments and interest on or before December 31 of each year 10.27following the year in which this judgment is confessed and current taxes each year before 10.28they become delinquent, or within 30 days after the entry of final judgment in proceedings 10.29to contest the taxes under Minnesota Statutes, sections 278.01 to 278.13. 10.30Dated .............., ......." 10.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for confessions of judgment entered new text end 10.32 new text begin into on or after January 1, 2015. new text end 10.33    Sec. 11. Minnesota Statutes 2012, section 383E.21, subdivision 1, is amended to read: 11.1    Subdivision 1. Authority to new text begin levy property taxes and new text end incur debt. (a) To finance the 11.2cost of designing, constructing, and acquiring countywide public safety improvements 11.3and equipment, including personal property, benefiting both Anoka County and the 11.4municipalities located within Anoka County, the governing body of Anoka County may 11.5 new text begin levy property taxes for public safety improvements and equipment, and new text end issue: 11.6(1) capital improvement bonds under the provisions of section 373.40 as if the 11.7infrastructure and equipment qualified as a "capital improvement" within the meaning of 11.8section 373.40, subdivision 1, paragraph (b); and 11.9(2) capital notes under the provisions of section 373.01, subdivision 3, as if the 11.10equipment qualified as "capital equipment" within the meaning of section 373.01, 11.11subdivision 3. Personal property acquired with the proceeds of the bonds or capital 11.12notes issued under this section must have an expected useful life at least as long as the 11.13term of debt. 11.14(b) The outstanding principal amount of the bonds and the capital notes issued under 11.15this section may not exceed $8,000,000 at any time. Any bonds or notes issued pursuant 11.16to this section must only be issued after approval by a majority vote of the Anoka County 11.17Joint Law Enforcement Council, a joint powers board. 11.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning for taxes payable in 2013 new text end 11.19 new text begin and expires under section 383E.21, subdivision 3. new text end 11.20    Sec. 12. Minnesota Statutes 2012, section 383E.21, subdivision 2, is amended to read: 11.21    Subd. 2. Treatment of levy. Notwithstanding sections 275.065, subdivision 3, 11.22and 276.04, the county may report the tax attributable to any levy to new text begin fund public safety new text end 11.23 new text begin capital improvements or equipment projects approved by the Anoka County Joint Law new text end 11.24 new text begin Enforcement Council or new text end pay principal and interest on bonds or notes issued under this 11.25section as a separate line item on the proposed property tax notice and the property tax 11.26statement. Notwithstanding any provision in chapter 275 or 373 to the contrary, bonds or 11.27notes issued by Anoka County under this section must not be included in the computation 11.28of the net debt of Anoka County. 11.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning for taxes payable in 2013 new text end 11.30 new text begin and expires under section 383E.21, subdivision 3. new text end 11.31    Sec. 13. Minnesota Statutes 2013 Supplement, section 428A.02, subdivision 1, is 11.32amended to read: 12.1    Subdivision 1. Ordinance. new text begin (a) new text end The governing body of a city may adopt an ordinance 12.2establishing a special service district. Only property that is new text begin wholly or partially new text end classified 12.3 new text begin as class 3 new text end under section 273.13 and used for commercial, industrial, or public utility 12.4purposes, or is vacant land zoned or designated on a land use plan for commercial or 12.5industrial use and located in the special service district, may be subject to the charges 12.6imposed by the city on the special service district. Other types of property new text begin properties new text end may 12.7be included within the boundaries of the special service district but are not subject to the 12.8levies or charges imposed by the city on the special service district. 12.9     new text begin (b) new text end If 50 percent or more of the estimated market value of a parcel of property 12.10is classified under section as commercial, industrial, or vacant land zoned or 12.11designated on a land use plan for commercial or industrial use, or public utility for the 12.12current assessment year new text begin a property is subject to a service charge new text end , then the entire taxable 12.13market value of the property new text begin , including any portion not classified as class 3, new text end is new text begin may be new text end 12.14 subject to a new text begin the new text end service charge based on net tax capacity for purposes of sections 428A.01 12.15 to . 12.16     new text begin (c) new text end The ordinance shall describe with particularity the area within the city to be 12.17included in the district and the special services to be furnished in the district. The 12.18ordinance may not be adopted until after a public hearing has been held on the question. 12.19Notice of the hearing shall include the time and place of hearing, a map showing the 12.20boundaries of the proposed district, and a statement that all persons owning property in the 12.21proposed district that would be subject to a service charge will be given opportunity to be 12.22heard at the hearing. Within 30 days after adoption of the ordinance under this subdivision, 12.23the governing body shall send a copy of the ordinance to the commissioner of revenue. 12.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment, new text end 12.25 new text begin and applies to service district charges for 2014 and thereafter. new text end 12.26    Sec. 14. Minnesota Statutes 2013 Supplement, section 477A.0124, subdivision 2, 12.27is amended to read: 12.28    Subd. 2. Definitions. (a) For the purposes of this section, the following terms 12.29have the meanings given them. 12.30    (b) "County program aid" means the sum of "county need aid," "county tax base 12.31equalization aid," and "county transition aid." 12.32    (c) "Age-adjusted population" means a county's population multiplied by the county 12.33age index. 13.1    (d) "County age index" means the percentage of the population over age 65 within 13.2the county divided by the percentage of the population over age 65 within the state, except 13.3that the age index for any county may not be greater than 1.8 nor less than 0.8. 13.4    (e) "Population over age 65" means the population over age 65 established as of 13.5July 15 in an aid calculation year by the most recent federal census, by a special census 13.6conducted under contract with the United States Bureau of the Census, by a population 13.7estimate made by the Metropolitan Council, or by a population estimate of the state 13.8demographer made pursuant to section 4A.02, whichever is the most recent as to the stated 13.9date of the count or estimate for the preceding calendar year and which has been certified 13.10to the commissioner of revenue on or before July 15 of the aid calculation year. A revision 13.11to an estimate or count is effective for these purposes only if certified to the commissioner 13.12on or before July 15 of the aid calculation year. Clerical errors in the certification or use of 13.13estimates and counts established as of July 15 in the aid calculation year are subject to 13.14correction within the time periods allowed under section 477A.014. 13.15    (f) "Part I crimes" means the three-year average annual number of Part I crimes 13.16reported for each county by the Department of Public Safety for the most recent years 13.17available. By July 1 of each year, the commissioner of public safety shall certify to the 13.18commissioner of revenue the number of Part I crimes reported for each county for the 13.19three most recent calendar years available. 13.20    (g) "Households receiving food stamps" means the average monthly number of 13.21households receiving food stamps for the three most recent years for which data is 13.22available. By July 1 of each year, the commissioner of human services must certify to the 13.23commissioner of revenue the average monthly number of households in the state and in 13.24each county that receive food stamps, for the three most recent calendar years available. 13.25 new text begin (h) "Watercraft trailer launch" means any public water access site designed for new text end 13.26 new text begin launching watercraft. new text end 13.27 new text begin (i) "Watercraft trailer parking space" means a parking space designated for a boat new text end 13.28 new text begin trailer at any public water access site designed for launching watercraft. new text end 13.29    (h) new text begin (j) new text end "County net tax capacity" means the county's adjusted net tax capacity under 13.30section 273.1325. 13.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar year new text end 13.32 new text begin 2014 and thereafter. new text end 13.33    Sec. 15. Minnesota Statutes 2012, section 477A.0124, subdivision 3, is amended to 13.34read: 14.1    Subd. 3. County need aid. For 2005 and subsequent years, new text begin (a) new text end The money 14.2appropriated to county need aid each calendar year new text begin under section 477A.03, subdivision new text end 14.3 new text begin 2b, paragraph (a), new text end shall be allocated as follows: 40 percent based on each county's share 14.4of age-adjusted population, 40 percent based on each county's share of the state total of 14.5households receiving food stamps, and 20 percent based on each county's share of the 14.6state total of Part I crimes. 14.7 new text begin (b) The money appropriated to the county need aid each calendar year under section new text end 14.8 new text begin 477A.03, subdivision 2b, paragraph (c), shall be allocated as follows: 50 percent based on new text end 14.9 new text begin each county's share of watercraft trailer launches and 50 percent based on each county's new text end 14.10 new text begin share of watercraft trailer parking spaces. new text end 14.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar year new text end 14.12 new text begin 2014 and thereafter. new text end 14.13    Sec. 16. Minnesota Statutes 2012, section 477A.0124, is amended by adding a 14.14subdivision to read: 14.15     new text begin Subd. 3a. new text end new text begin Use of proceeds. new text end new text begin A county that receives a distribution under subdivision new text end 14.16 new text begin 3, paragraph (b), must use the proceeds solely to prevent the introduction of or limit new text end 14.17 new text begin the spread of aquatic invasive species at all access sites within the county. The county new text end 14.18 new text begin must establish, by resolution or through adoption of a plan, guidelines for the use of new text end 14.19 new text begin the proceeds. The guidelines set by the county board may include, but are not limited new text end 14.20 new text begin to, providing for site-level management, countywide awareness, and other procedures new text end 14.21 new text begin that the county finds necessary to achieve compliance. The county may appropriate the new text end 14.22 new text begin proceeds directly, or may use any portion of the proceeds to provide funding for a joint new text end 14.23 new text begin powers board or cooperative agreement with another political subdivision, a soil and water new text end 14.24 new text begin conservation district in the county, a watershed district in the county, or a lake association new text end 14.25 new text begin located in the county. Any money appropriated by the county to a different entity or new text end 14.26 new text begin political subdivision must be used as required under this section. new text end 14.27 new text begin For purposes of this section, "aquatic invasive species" means nonnative aquatic new text end 14.28 new text begin organisms that invade water beyond their natural and historic range. new text end 14.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar year new text end 14.30 new text begin 2014 and thereafter. new text end 14.31    Sec. 17. Minnesota Statutes 2013 Supplement, section 477A.013, subdivision 8, 14.32is amended to read: 15.1    Subd. 8. City formula aid. (a) For aids payable in 2014 only, the formula aid for a 15.2city is equal to the sum of (1) its 2013 certified aid, and (2) the product of (i) the difference 15.3between its unmet need and its 2013 certified aid, and (ii) the aid gap percentage. 15.4    (b) For aids payable in 2015 and thereafter, the formula aid for a city is equal to the 15.5sum of (1) its formula aid in the previous year and (2) the product of (i) the difference 15.6between its unmet need and its certified new text begin formula new text end aid in the previous year under subdivision 15.79, and (ii) the aid gap percentage. 15.8     new text begin (c) For aids payable in 2015 and thereafter, if a city's certified aid from the previous new text end 15.9 new text begin year is greater than the sum of its unmet need plus its aid adjustment under subdivision 13, new text end 15.10 new text begin its formula aid is adjusted to equal its unmet need. new text end 15.11     new text begin (d) new text end No city may have a formula aid amount less than zero. The aid gap percentage 15.12must be the same for all cities new text begin subject to paragraph (b) new text end . 15.13     new text begin (e) new text end The applicable aid gap percentage must be calculated by the Department of 15.14Revenue so that the total of the aid under subdivision 9 equals the total amount available 15.15for aid under section 477A.03. Data used in calculating aids to cities under sections 15.16477A.011 to 477A.013 shall be the most recently available data as of January 1 in the 15.17year in which the aid is calculated. 15.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar year new text end 15.19 new text begin 2015 and thereafter. new text end 15.20    Sec. 18. Minnesota Statutes 2013 Supplement, section 477A.03, subdivision 2b, 15.21is amended to read: 15.22    Subd. 2b. Counties. (a) For aids payable in 2014 new text begin 2015 new text end and thereafter, the total 15.23aid payable under section 477A.0124, subdivision 3, is $100,795,000. Each calendar 15.24year, $500,000 of this appropriation shall be retained by the commissioner of revenue to 15.25make reimbursements to the commissioner of management and budget for payments 15.26made under section 611.27. The reimbursements shall be to defray the additional costs 15.27associated with court-ordered counsel under section 611.27. Any retained amounts not 15.28used for reimbursement in a year shall be included in the next distribution of county 15.29need aid that is certified to the county auditors for the purpose of property tax reduction 15.30for the next taxes payable year. 15.31    (b) For aids payable in 2014 new text begin 2015 new text end and thereafter, the total aid under section 15.32477A.0124, subdivision 4 , is $104,909,575. The commissioner of revenue shall transfer 15.33to the commissioner of management and budget $207,000 annually for the cost of 15.34preparation of local impact notes as required by section 3.987, and other local government 15.35activities. The commissioner of revenue shall transfer to the commissioner of education 16.1$7,000 annually for the cost of preparation of local impact notes for school districts 16.2as required by section 3.987. The commissioner of revenue shall deduct the amounts 16.3transferred under this paragraph from the appropriation under this paragraph. The amounts 16.4transferred are appropriated to the commissioner of management and budget and the 16.5commissioner of education respectively. 16.6 new text begin (c) For aids payable in 2015 and thereafter, the total aid payable under section new text end 16.7 new text begin 477A.0124, subdivision 3, paragraph (b), is $10,000,000. Notwithstanding section new text end 16.8 new text begin 477A.015, the first installment of aid payable in 2015 under this paragraph shall be made new text end 16.9 new text begin on March 15, 2015, and the second installment shall be made on July 20, 2015. new text end 16.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in calendar year new text end 16.11 new text begin 2015 and thereafter. new text end 16.12    Sec. 19. Minnesota Statutes 2013 Supplement, section 477A.12, subdivision 1, is 16.13amended to read: 16.14    Subdivision 1. Types of land; payments. The following amounts are annually 16.15appropriated to the commissioner of natural resources from the general fund for transfer 16.16to the commissioner of revenue. The commissioner of revenue shall pay the transferred 16.17funds to counties as required by sections 477A.11 to 477A.14. The amounts, based on the 16.18acreage as of July 1 of each year prior to the payment year, are: 16.19(1) $5.133 multiplied by the total number of acres of acquired natural resources land 16.20or, at the county's option three-fourths of one percent of the appraised value of all acquired 16.21natural resources land in the county, whichever is greater; 16.22(2) $5.133, multiplied by the total number of acres of transportation wetland or, at 16.23the county's option, three-fourths of one percent of the appraised value of all transportation 16.24wetland in the county, whichever is greater; 16.25(3) new text begin $5.133, multiplied by the total number of acres of wildlife management land, or, new text end 16.26 new text begin at the county's option, new text end three-fourths of one percent of the appraised value of all wildlife 16.27management land in the county new text begin , whichever is greater new text end ; 16.28(4) 50 percent of the dollar amount as determined under clause (1), multiplied by 16.29the number of acres of military refuge land in the county; 16.30(5) $1.50, multiplied by the number of acres of county-administered other natural 16.31resources land in the county; 16.32(6) $5.133, multiplied by the total number of acres of land utilization project land 16.33in the county; 16.34(7) $1.50, multiplied by the number of acres of commissioner-administered other 16.35natural resources land in the county; and 17.1    (8) without regard to acreage, new text begin and notwithstanding the rules adopted under section new text end 17.2 new text begin 84A.55, new text end $300,000 for local assessments under section 84A.55, subdivision 9 new text begin , that shall be new text end 17.3 new text begin divided and distributed to the counties containing state-owned lands within a conservation new text end 17.4 new text begin area in proportion to each county's percentage of the total annual ditch assessments new text end . 17.5 new text begin EFFECTIVE DATE. new text end new text begin The amendments to clause (3) are effective for payments new text end 17.6 new text begin made in calendar year 2015 and later. The amendments to clause (8) are effective for new text end 17.7 new text begin assessments payable in calendar year 2014 and later. new text end 17.8    Sec. 20. Minnesota Statutes 2013 Supplement, section 477A.12, subdivision 2, is 17.9amended to read: 17.10    Subd. 2. Procedure. new text begin (a) new text end Each county auditor shall certify to the Department of 17.11Natural Resources during July of each year prior to the payment year the number of acres 17.12of county-administered other natural resources land within the county. The Department of 17.13Natural resources may, in addition to the certification of acreage, require descriptive lists 17.14of land so certified. The commissioner of natural resources shall determine and certify to 17.15the commissioner of revenue by March 1 of the payment year: 17.16(1) the number of acres and most recent appraised value of acquired natural 17.17resources land, wildlife management land, and military refuge land within each county; 17.18(2) the number of acres of commissioner-administered natural resources land within 17.19each county; 17.20(3) the number of acres of county-administered other natural resources land within 17.21each county, based on the reports filed by each county auditor with the commissioner 17.22of natural resources; and 17.23(4) the number of acres of land utilization project land within each county. 17.24 new text begin (b) new text end The commissioner of transportation shall determine and certify to the 17.25commissioner of revenue by March 1 of the payment year the number of acres of 17.26transportation wetland and the appraised value of the land, but only if it exceeds 500 17.27acres in a county. 17.28 new text begin (c) Each auditor of a county that contains state-owned lands within a conservation new text end 17.29 new text begin area shall determine and certify to the commissioner of natural resources by May 31 of new text end 17.30 new text begin the payment year, the county's ditch assessments for state-owned lands subject to section new text end 17.31 new text begin 84A.55, subdivision 9. A joint certification for two or more counties may be submitted to new text end 17.32 new text begin the commissioner of natural resources through the Consolidated Conservation Counties new text end 17.33 new text begin Joint Powers Board. The commissioner of natural resources shall certify the ditch new text end 17.34 new text begin assessments to the commissioner of revenue by June 15 of the payment year. new text end 18.1 new text begin (d) new text end The commissioner of revenue shall determine the distributions provided for in this 18.2section using new text begin : (1) new text end the number of acres and appraised values certified by the commissioner 18.3of natural resources and the commissioner of transportation by March 1 of the payment 18.4year new text begin ; and (2) ditch assessments under paragraph (c), by June 30 of the payment year new text end . 18.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for assessments payable in calendar new text end 18.6 new text begin year 2014 and later. new text end 18.7    Sec. 21. Minnesota Statutes 2013 Supplement, section 477A.14, subdivision 1, is 18.8amended to read: 18.9    Subdivision 1. General distribution. Except as provided in subdivisions 2 and 3, 18.1040 percent of the total payment to the county shall be deposited in the county general 18.11revenue fund to be used to provide property tax levy reduction. The remainder shall be 18.12distributed by the county in the following priority: 18.13(a) new text begin (1) new text end 64.2 cents, for each acre of county-administered other natural resources land 18.14shall be deposited in a resource development fund to be created within the county treasury 18.15for use in resource development, forest management, game and fish habitat improvement, 18.16and recreational development and maintenance of county-administered other natural 18.17resources land. Any county receiving less than $5,000 annually for the resource 18.18development fund may elect to deposit that amount in the county general revenue fund; 18.19(b) from the funds remaining, new text begin (2) new text end within 30 days of receipt of the payment to 18.20the county, the county treasurer shall pay each organized township ten percent of the 18.21amount received new text begin a township with land that qualifies for payment new text end under section 477A.12, 18.22subdivision 1 , clauses (1), (2), and (5) to (7) new text begin , ten percent of the payment the county new text end 18.23 new text begin received for such land within that township new text end . Payments for natural resources lands not 18.24located in an organized township shall be deposited in the county general revenue fund. 18.25Payments to counties and townships pursuant to this paragraph shall be used to provide 18.26property tax levy reduction, except that of the payments for natural resources lands not 18.27located in an organized township, the county may allocate the amount determined to be 18.28necessary for maintenance of roads in unorganized townships. Provided that, if the total 18.29payment to the county pursuant to section is not sufficient to fully fund the 18.30distribution provided for in this clause, the amount available shall be distributed to each 18.31township and the county general revenue fund on a pro rata basis; and 18.32(c) new text begin (3) new text end any remaining funds shall be deposited in the county general revenue fund. 18.33Provided that, if the distribution to the county general revenue fund exceeds $35,000, the 18.34excess shall be used to provide property tax levy reduction. 19.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2014. new text end 19.2    Sec. 22. Laws 1999, chapter 243, article 14, section 5, subdivision 1, is amended to read: 19.3    Subdivision 1. Board plan and program. The board shall adopt a comprehensive 19.4plan for the collection, treatment, and disposal of sewage in the district for a designated 19.5period the board deems proper and reasonable. The board shall prepare and adopt 19.6subsequent comprehensive plans for the collection, treatment, and disposal of sewage 19.7in the district for each succeeding designated period as the board deems proper and 19.8reasonable. All comprehensive plans of the district shall be subject to the planning 19.9and zoning authority of Scott county and in conformance with all planning and zoning 19.10ordinances of Scott county. The first plan, as modified by the board, and any subsequent 19.11plan shall take into account the preservation and best and most economic use of water and 19.12other natural resources in the area; the preservation, use, and potential for use of lands 19.13adjoining waters of the state to be used for the disposal of sewage; and the impact the 19.14disposal system will have on present and future land use in the area affected. In no case 19.15shall the comprehensive plan provide for more than 325 new text begin 364 new text end connections to the disposal 19.16system. All connections must be charged a full assessment. Connections made after the 19.17initial assessment period ends must be charged an amount equal to the initial assessment 19.18plus an adjustment for inflation and plus any other charges determined to be reasonable 19.19and necessary by the board. Deferred assessments may be permitted, as provided for in 19.20Minnesota Statutes, chapter 429. The plans shall include the general location of needed 19.21interceptors and treatment works, a description of the area that is to be served by the 19.22various interceptors and treatment works, a long-range capital improvements program, and 19.23any other details as the board deems appropriate. In developing the plans, the board shall 19.24consult with persons designated for the purpose by governing bodies of any governmental 19.25unit within the district to represent the entities and shall consider the data, resources, and 19.26input offered to the board by the entities and any planning agency acting on behalf of one 19.27or more of the entities. Each plan, when adopted, must be followed in the district and may 19.28be revised as often as the board deems necessary. 19.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of new text end 19.30 new text begin the Cedar Lake area water and sanitary sewer district and its chief clerical officer timely new text end 19.31 new text begin complete their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3. new text end 19.32    Sec. 23. new text begin CITY OF JACKSON; LIMITATION ON ABATEMENTS. new text end 19.33 new text begin Notwithstanding the provisions of Minnesota Statutes, section 469.1813, subdivision new text end 19.34 new text begin 8, the total amount of property taxes abated by the city of Jackson in any year may not new text end 20.1 new text begin exceed the greater of (1) ten percent of the city's net tax capacity for the taxes payable year new text end 20.2 new text begin to which the abatement applies; or (2) $240,000. new text end 20.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2015 through new text end 20.4 new text begin taxes payable in 2019. new text end 20.5    Sec. 24. new text begin FUND TRANSFER FROM IRON RANGE RESOURCES AND new text end 20.6 new text begin REHABILITATION BOARD. new text end 20.7 new text begin The Iron Range Resources and Rehabilitation Board must transfer $60,000 to the new text end 20.8 new text begin commissioner of management and budget for deposit into the general fund on July 1, 2014. new text end 20.9    Sec. 25. new text begin HELENA TOWNSHIP, SCOTT COUNTY; REMOVAL OF new text end 20.10 new text begin SUBORDINATE SERVICE DISTRICT. new text end 20.11     new text begin Subdivision 1. new text end new text begin Application. new text end new text begin This section applies to the subordinate service district new text end 20.12 new text begin established in Helena Township, Scott County, for the Silver Maple Bay Estates, under new text end 20.13 new text begin Minnesota Statutes, chapter 365A. new text end 20.14     new text begin Subd. 2. new text end new text begin Special provision for removal of the district. new text end new text begin Notwithstanding the new text end 20.15 new text begin requirements of Minnesota Statutes, section 365A.095, subdivision 2, if the district is new text end 20.16 new text begin removed as provided in Minnesota Statutes, section 365A.095, subdivision 1, after all new text end 20.17 new text begin outstanding obligations of the district have been paid in full, the town board may vote to new text end 20.18 new text begin sell or use the surplus of any land or equipment, or the surplus of any tax revenue or service new text end 20.19 new text begin charge, or any part of it, collected from or associated with the district to connect the owners new text end 20.20 new text begin of any property within the discontinued district to another public sewer system. Any new text end 20.21 new text begin surplus not used to connect residents to such sewer system may be distributed equally to new text end 20.22 new text begin the owners of any property within the discontinued district that were charged the extra tax new text end 20.23 new text begin or service fee during the most recent tax year for which the tax or service fee was imposed. new text end 20.24 new text begin Any surplus not refunded under this section must be transferred to the town's general fund. new text end 20.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of new text end 20.26 new text begin Helena Township and its chief clerical officer timely complete their compliance with new text end 20.27 new text begin Minnesota Statutes, section 645.021, subdivisions 2 and 3. new text end 20.28    Sec. 26. new text begin IRON RANGE FISCAL DISPARITIES STUDY. new text end 20.29 new text begin The commissioner of revenue, in consultation with the administrative auditor, as new text end 20.30 new text begin defined in Minnesota Statutes, section 276A.01, subdivision 2, shall conduct a study of new text end 20.31 new text begin the tax relief area revenue distribution program contained in Minnesota Statutes, chapter new text end 20.32 new text begin 276A, commonly known as the Iron Range fiscal disparities program. By January 15, new text end 21.1 new text begin 2015, the commissioner of revenue shall submit a report to the chairs and ranking minority new text end 21.2 new text begin members of the house of representatives and senate tax committees consisting of the new text end 21.3 new text begin findings of the study and recommendations. The study must analyze: new text end 21.4 new text begin (1) the ability to use a municipality's contribution based on its commercial, new text end 21.5 new text begin industrial, and utility values from the current year rather than the previous year; and new text end 21.6 new text begin (2) recommended changes to the program to decrease the volatility of the program's new text end 21.7 new text begin distribution. new text end 21.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 21.9    Sec. 27. new text begin PRIVATE SALE OF LAND; DISTRICT ONE HOSPITAL BOARD. new text end 21.10 new text begin (a) Notwithstanding Laws 1963, chapter 118, section 5, or any other law to the new text end 21.11 new text begin contrary, the District One Hospital District may, without advertising for bids, sell, new text end 21.12 new text begin convey, and transfer management, control, and operation of the hospital, any of the new text end 21.13 new text begin hospital's personal property, and any of the real property described in paragraph (b). new text end 21.14 new text begin Notwithstanding any law to the contrary, the District One Hospital District may include new text end 21.15 new text begin some or all tangible and intangible personal property associated with the hospital as part new text end 21.16 new text begin of the negotiated sale price. new text end 21.17 new text begin (b) The land referred to in paragraph (a), is located in Rice County and consists of new text end 21.18 new text begin the parcels of property known as the District One Hospital and adjacent property. Legal new text end 21.19 new text begin descriptions for the properties are as follows: new text end 21.20 new text begin (1) LOT SIX (6), NORTH SEABURY ADDITION, FARIBAULT, RICE COUNTY, new text end 21.21 new text begin MINNESOTA; new text end 21.22 new text begin (2) ALL OF BLOCK 4, AUDITOR'S PLAT NO. 1 OF THE SW1/4 OF SECTION new text end 21.23 new text begin 32, TOWNSHIP 110 NORTH, RANGE 20 WEST OF THE 5TH P.M., FARIBAULT, new text end 21.24 new text begin RICE COUNTY, MINNESOTA, EXCEPTING THEREFROM THAT PART OF SAID new text end 21.25 new text begin BLOCK 4 DESCRIBED AS FOLLOWS: BEGINNING AT A POINT IN THE NORTH new text end 21.26 new text begin LINE OF SAID BLOCK 4, A DISTANCE OF 179.00 FEET WESTERLY FROM THE new text end 21.27 new text begin NORTHEAST CORNER OF SAID BLOCK 4, THENCE SOUTHERLY, PARALLEL new text end 21.28 new text begin WITH THE EAST LINE OF SAID BLOCK 4, A DISTANCE OF 225.00 FEET; THENCE new text end 21.29 new text begin WESTERLY, PARALLEL WITH SAID NORTH LINE OF BLOCK 4, A DISTANCE OF new text end 21.30 new text begin 154.00 FEET; THENCE NORTHERLY, PARALLEL WITH SAID EAST LINE, 75.00 new text end 21.31 new text begin FEET; THENCE WESTERLY, PARALLEL WITH SAID NORTH LINE, 36.00 FEET; new text end 21.32 new text begin THENCE NORTHERLY, PARALLEL WITH SAID EAST LINE, 150.00 FEET TO A new text end 21.33 new text begin POINT IN SAID NORTH LINE; THENCE EASTERLY ALONG SAID NORTH LINE, new text end 21.34 new text begin 190.00 FEET TO SAID POINT OF BEGINNING; new text end 22.1 new text begin (3) LOT THREE (3), NORTH SEABURY ADDITION, FARIBAULT, RICE new text end 22.2 new text begin COUNTY, MINNESOTA; new text end 22.3 new text begin (4) LOT 5, NORTH SEABURY ADDITION, FARIBAULT, MINNESOTA, new text end 22.4 new text begin ACCORDING TO THE PLAT THEREOF ON FILE AND OF RECORD IN THE new text end 22.5 new text begin REGISTER OF DEEDS FOR RICE COUNTY, MINNESOTA; new text end 22.6 new text begin (5) LOT 7, 8, 9, 10, AND THE EAST 82.4 FEET OF LOT 11, ALL IN NORTH new text end 22.7 new text begin SEABURY ADDITION, FARIBAULT, RICE COUNTY, MINNESOTA, AND THE new text end 22.8 new text begin EAST 82.4 FEET OF ALL OF LOTS 7 AND 8, BLOCK 1, FARIBAULT'S ADDITION new text end 22.9 new text begin TO FARIBAULT, WHICH LIES NORTH AND WEST OF A LINE DRAWN FROM new text end 22.10 new text begin THE SOUTHWEST CORNER OF SAID BLOCK 1, NORTHEASTERLY TO THE new text end 22.11 new text begin NORTHEAST CORNER OF SAID LOT 7, OF BLOCK 1; new text end 22.12 new text begin (6) LOTS 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, THE SOUTH 10 new text end 22.13 new text begin FEET OF LOT 18, THE WEST FIVE FEET OF LOT 32 AND LOT 23, EXCEPT new text end 22.14 new text begin THE EAST 141.22 FEET, ALL IN BLOCK 6, AUDITOR'S PLAT NO. 1, SW1/4 OF new text end 22.15 new text begin SECTION 32, TOWNSHIP 110 NORTH, RANGE 20 WEST OF THE 5TH PRINCIPAL new text end 22.16 new text begin MERIDIAN, FARIBAULT, RICE COUNTY, MINNESOTA; new text end 22.17 new text begin (7) UNIT 2, CONDOMINIUM NUMBER 8, JOHNSTON HALL CONDOMINIUM, new text end 22.18 new text begin FARIBAULT, RICE COUNTY, MINNESOTA; new text end 22.19 new text begin (8) UNIT 1, CONDOMINIUM NUMBER 8, JOHNSTON HALL CONDOMINIUM, new text end 22.20 new text begin FARIBAULT, RICE COUNTY, MINNESOTA; AND new text end 22.21 new text begin (9) COMMON ELEMENTS, CONDOMINIUM NUMBER 8, JOHNSTON HALL new text end 22.22 new text begin CONDOMINIUM, FARIBAULT, RICE COUNTY, MINNESOTA. new text end 22.23 new text begin (c) Upon determination by the District One Hospital Board that all sale requirements new text end 22.24 new text begin have been met, and sufficient funds exist to pay all outstanding principal and interest on new text end 22.25 new text begin any bonds issued prior to and in conjunction with the sale, each statutory or home rule new text end 22.26 new text begin charter city and town located within the hospital district must file a petition with the new text end 22.27 new text begin hospital board for dissolution under Minnesota Statutes, section 447.38. new text end 22.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 22.29    Sec. 28. new text begin TRANSITION PROVISION. new text end 22.30 new text begin The owner of any property lying within the boundaries of a special service district in new text end 22.31 new text begin existence as of June 1, 2014, that becomes potentially liable for a service charge due to the new text end 22.32 new text begin changes in eligibility requirements contained in section 1, may file a written objection new text end 22.33 new text begin with the city clerk as provided under Minnesota Statutes, section 428A.02, subdivision 4. new text end 22.34 new text begin The objection must be filed by August 1, 2014. The governing body of the city must make new text end 22.35 new text begin a determination on the objection within 30 days of its filing. new text end 23.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment, new text end 23.2 new text begin and applies to service district charges for 2014 and thereafter. new text end 23.3    Sec. 29. new text begin 2014 SUPPLEMENTAL PAYMENT FOR AQUATIC INVASIVE new text end 23.4 new text begin SPECIES PREVENTION AID; APPROPRIATION. new text end 23.5 new text begin (a) For aids payable in 2014 only, the total aid payable under Minnesota Statutes, new text end 23.6 new text begin section 477A.0124, subdivision 3, paragraph (b), is $5,000,000. new text end 23.7 new text begin (b) Payment to the counties of the amounts determined under Minnesota Statutes, new text end 23.8 new text begin section 477A.0124, subdivision 3, paragraph (b), must be made by the commissioner new text end 23.9 new text begin of revenue from the general fund at the time provided in Minnesota Statutes, section new text end 23.10 new text begin 477A.015 for the first installment of local government aid. new text end 23.11 new text begin (c) $5,000,000 is appropriated from the general fund to the commissioner of revenue new text end 23.12 new text begin in fiscal year 2015 to make the aid payments under this section. new text end 23.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for aids payable in 2014 only. new text end 23.14    Sec. 30. new text begin APPROPRIATION. new text end 23.15 new text begin The sum of $60,000 in fiscal year 2015 is appropriated from the general fund new text end 23.16 new text begin to the commissioner of revenue to pay for the study required under section 26. This is new text end 23.17 new text begin a onetime appropriation. new text end 23.18    Sec. 31. new text begin STUDY OF NORTH DAKOTA OIL PRODUCTION; IMPACT ON new text end 23.19 new text begin MINNESOTA. new text end 23.20 new text begin (a) $250,000 in fiscal year 2015 is appropriated from the general fund to the new text end 23.21 new text begin commissioner of employment and economic development, in consultation with the new text end 23.22 new text begin commissioner of revenue, to finance a study and analysis of the effects of current and new text end 23.23 new text begin projected oil production in North Dakota on the Minnesota economy with special focus on new text end 23.24 new text begin the northwestern region of Minnesota and area border cities as provided in paragraph (b). new text end 23.25 new text begin (b) The study and analysis must address: new text end 23.26 new text begin (1) current and projected economic, fiscal, and demographic effects and issues; new text end 23.27 new text begin (2) direct and indirect costs and benefits; new text end 23.28 new text begin (3) positive and negative effects; and new text end 23.29 new text begin (4) economic challenges and opportunities for economic growth or diversification. new text end 23.30 new text begin (c) The study must be objective, evidence-based, and designed to produce empirical new text end 23.31 new text begin data. Study data must be utilized to formulate policy recommendations on how the state, new text end 23.32 new text begin the northwestern region of the state, and border cities may respond to the challenges and new text end 24.1 new text begin opportunities for economic growth and financial investment that may be derived from the new text end 24.2 new text begin regional economic changes that are the result of oil production in North Dakota. new text end 24.3 new text begin (d) For the purposes of this section, "border cities" has the meaning given in new text end 24.4 new text begin Minnesota Statutes, section 469.1731. new text end 24.5 new text begin (e) The study and analysis must be conducted by an independent entity with new text end 24.6 new text begin demonstrated knowledge in the following areas: new text end 24.7 new text begin (1) the economy and demography of Minnesota; new text end 24.8 new text begin (2) the domestic and foreign oil industry; and new text end 24.9 new text begin (3) technologies, markets, and geopolitical factors that have an impact on current new text end 24.10 new text begin and future oil production in the region. new text end 24.11 new text begin (f) The commissioner shall report on the findings and recommendations of the study new text end 24.12 new text begin to the committees of the house of representatives and senate having jurisdiction over new text end 24.13 new text begin economic development and workforce issues by February 15, 2015. new text end 24.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 24.15    Sec. 32. new text begin STUDY OF ENERGY PRODUCING SYSTEMS. new text end 24.16 new text begin (a) $150,000 in fiscal year 2015 is appropriated from the general fund to the new text end 24.17 new text begin commissioner of revenue to conduct a study and analysis of the property taxation of new text end 24.18 new text begin all energy producing systems in the state of Minnesota, including both traditional and new text end 24.19 new text begin renewable energy sources. new text end 24.20 new text begin (b) The study and analysis must address: new text end 24.21 new text begin (1) the various methods by which the personal and real property of energy producing new text end 24.22 new text begin systems are taxed; new text end 24.23 new text begin (2) the availability of any exclusions, exemptions, or payment-in-lieu of taxation new text end 24.24 new text begin arrangements that apply to the systems; and new text end 24.25 new text begin (3) recommendations on the taxation of solar energy producing systems, including new text end 24.26 new text begin both real and personal property. new text end 24.27 new text begin (c) The commissioner shall report the findings of the study to the committees of the new text end 24.28 new text begin house of representatives and senate having jurisdiction over taxes by February 1, 2015. new text end 24.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 24.30    Sec. 33. new text begin REPEALER. new text end 24.31 new text begin Laws 1961, chapter 372, sections 1; and 2; Laws 1963, chapter 118, sections 1, as new text end 24.32 new text begin amended by Laws 1996, chapter 471, article 8, section 19; 2, as amended by Laws 1996, new text end 24.33 new text begin chapter 471, article 8, section 20; 3; 4, as amended by Laws 1996, chapter 471, article 8, new text end 25.1 new text begin section 21; 5; 6, as amended by Laws 1996, chapter 471, article 8, section 22; 7; 8; 9; and new text end 25.2 new text begin 10; and Laws 1996, chapter 471, article 8, sections 19; 20; 21; and 22, new text end new text begin are repealed. new text end 25.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon the statutory and home rule new text end 25.4 new text begin charter cities located within the hospital district filing a petition with the hospital board new text end 25.5 new text begin for dissolution under Minnesota Statutes, section 447.38. new text end 25.6ARTICLE 2 25.7SALES, USE, AND EXCISE TAXES 25.8    Section 1. Minnesota Statutes 2013 Supplement, section 116J.8738, subdivision 2, 25.9is amended to read: 25.10    Subd. 2. Qualified business. (a) A business is a qualified business if it satisfies the 25.11requirement of this paragraph and is not disqualified under the provisions of paragraph 25.12(b). To qualify, the business must: 25.13(1) have operated its trade or business in a city or cities in greater Minnesota for at 25.14least one year before applying under subdivision 3; 25.15(2) pay or agree to pay in the future each employee compensation, including benefits 25.16not mandated by law, that on an annualized basis equal at least 120 percent of the federal 25.17poverty level for a family of four; 25.18(3) plan and agree to expand its employment in one or more cities in greater Minnesota 25.19by the minimum number of employees required under subdivision 3, paragraph (c); and 25.20(4) have received certification from the commissioner under subdivision 3 that 25.21it is a qualified business. 25.22(b) A business is not a qualified business if it is either: 25.23(1) primarily engaged in making retail sales to purchasers who are physically present 25.24at the business's location or locations in greater Minnesota; or 25.25(2) a public utility, as defined in section 336B.01 new text begin ; or new text end 25.26 new text begin (3) primarily engaged in lobbying; gambling; entertainment; professional sports; new text end 25.27 new text begin political consulting; leisure; hospitality; or professional services provided by attorneys, new text end 25.28 new text begin accountants, business consultants, physicians, or health care consultants new text end . 25.29(c) The requirements in paragraph (a) that the business's operations and expansion 25.30be located in a city do not apply to an agricultural processing facility. 25.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 25.32    Sec. 2. Minnesota Statutes 2013 Supplement, section 116J.8738, subdivision 3, is 25.33amended to read: 26.1    Subd. 3. Certification of qualified business. (a) A business may apply to the 26.2commissioner for certification as a qualified business under this section. The commissioner 26.3shall specify the form of the application, the manner and times for applying, and the 26.4information required to be included in the application. The commissioner may impose an 26.5application fee in an amount sufficient to defray the commissioner's cost of processing 26.6certifications. A business must file a copy of its application with the chief clerical officer 26.7of the city at the same time it applies to the commissioner. For an agricultural processing 26.8facility located outside the boundaries of a city, the business must file a copy of the 26.9application with the county auditor. 26.10(b) The commissioner shall certify each business as a qualified business that: 26.11(1) satisfies the requirements of subdivision 2; 26.12(2) the commissioner determines would not expand its operations in greater 26.13Minnesota without the tax incentives available under subdivision 4; and 26.14(3) enters a business subsidy agreement with the commissioner that pledges to 26.15satisfy the minimum expansion requirements of paragraph (c) within three years or less 26.16following execution of the agreement. 26.17The commissioner must act on an application within 60 new text begin 90 new text end days after its filing. 26.18Failure by the commissioner to take action within the 60-day new text begin 90-day new text end period is deemed 26.19approval of the application. 26.20(c) The following minimum expansion requirements apply, based on the number of 26.21employees of the business at locations in greater Minnesota: 26.22(1) a business that employs 50 or fewer full-time equivalent employees in greater 26.23Minnesota when the agreement is executed must increase its employment by five or more 26.24full-time equivalent employees; 26.25(2) a business that employs more than 50 but fewer than 200 full-time equivalent 26.26employees in greater Minnesota when the agreement is executed must increase the number 26.27of its full-time equivalent employees in greater Minnesota by at least ten percent; or 26.28(3) a business that employs 200 or more full-time equivalent employees in greater 26.29Minnesota when the agreement is executed must increase its employment by at least 21 26.30full-time equivalent employees new text begin (c) The business must increase the number of full-time new text end 26.31 new text begin equivalent employees in greater Minnesota from the time the business subsidy agreement new text end 26.32 new text begin is executed by two employees or ten percent, whichever is greater new text end . 26.33(d) The city, or a county for an agricultural processing facility located outside the 26.34boundaries of a city, in which the business proposes to expand its operations may file 26.35comments supporting or opposing the application with the commissioner. The comments 26.36must be filed within 30 days after receipt by the city of the application and may include a 27.1notice of any contribution the city or county intends to make to encourage or support the 27.2business expansion, such as the use of tax increment financing, property tax abatement, 27.3additional city or county services, or other financial assistance. 27.4(e) Certification of a qualified business is effective for the 12-year new text begin seven-year new text end period 27.5beginning on the first day of the calendar month immediately following execution of 27.6the business subsidy agreement new text begin the date that the commissioner informs the business of new text end 27.7 new text begin the award of the benefit new text end . 27.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 27.9    Sec. 3. Minnesota Statutes 2013 Supplement, section 116J.8738, subdivision 4, is 27.10amended to read: 27.11    Subd. 4. Available tax incentives. A qualified business is entitled to a sales tax 27.12exemption, new text begin up to $2,000,000 annually and $10,000,000 during the total period of the new text end 27.13 new text begin agreement, new text end as provided in section 297A.68, subdivision 44, for purchases made during 27.14the period the business was certified as a qualified business under this section. new text begin The new text end 27.15 new text begin commissioner has discretion to set the maximum amounts of the annual and total sales tax new text end 27.16 new text begin exemption allowed for each qualifying business as part of the business subsidy agreement. new text end 27.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 27.18    Sec. 4. Minnesota Statutes 2013 Supplement, section 289A.20, subdivision 4, is 27.19amended to read: 27.20    Subd. 4. Sales and use tax. (a) The taxes imposed by chapter 297A are due and 27.21payable to the commissioner monthly on or before the 20th day of the month following the 27.22month in which the taxable event occurred, or following another reporting period as the 27.23commissioner prescribes or as allowed under section 289A.18, subdivision 4, paragraph 27.24(f) or (g), except that use taxes due on an annual use tax return as provided under section 27.25289A.11, subdivision 1 , are payable by April 15 following the close of the calendar year. 27.26    (b) A vendor having a liability of $120,000 new text begin $250,000 new text end or more during a fiscal year 27.27ending June 30 must remit the June liability for the next year in the following manner: 27.28    (1) Two business days before June 30 of the year, the vendor must remit 90 new text begin 81.4 new text end 27.29 percent of the estimated June liability to the commissioner. 27.30    (2) On or before August 20 of the year, the vendor must pay any additional amount 27.31of tax not remitted in June. 27.32    (c) A vendor having a liability of: 28.1    (1) $10,000 or more, but less than $120,000 new text begin $250,000 new text end during a fiscal year ending 28.2June 30, 2013, and fiscal years thereafter, must remit by electronic means all liabilities 28.3on returns due for periods beginning in all subsequent calendar years on or before the 28.420th day of the month following the month in which the taxable event occurred, or on 28.5or before the 20th day of the month following the month in which the sale is reported 28.6under section 289A.18, subdivision 4; or 28.7(2) $120,000 new text begin $250,000 new text end or more, during a fiscal year ending June 30, 2009 new text begin 2013 new text end , 28.8and fiscal years thereafter, must remit by electronic means all liabilities in the manner 28.9provided in paragraph (a) on returns due for periods beginning in the subsequent calendar 28.10year, except for 90 new text begin 81.4 new text end percent of the estimated June liability, which is due two business 28.11days before June 30. The remaining amount of the June liability is due on August 20. 28.12(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's 28.13religious beliefs from paying electronically shall be allowed to remit the payment by mail. 28.14The filer must notify the commissioner of revenue of the intent to pay by mail before 28.15doing so on a form prescribed by the commissioner. No extra fee may be charged to a 28.16person making payment by mail under this paragraph. The payment must be postmarked 28.17at least two business days before the due date for making the payment in order to be 28.18considered paid on a timely basis. 28.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes remitted after May 30, 2014. new text end 28.20    Sec. 5. Minnesota Statutes 2012, section 289A.60, subdivision 15, is amended to read: 28.21    Subd. 15. Accelerated payment of June sales tax liability; penalty for 28.22underpayment. For payments made after December 31, 2006 new text begin 2013 new text end , if a vendor is 28.23required by law to submit an estimation of June sales tax liabilities and 90 new text begin 81.4 new text end percent 28.24payment by a certain date, the vendor shall pay a penalty equal to ten percent of the 28.25amount of actual June liability required to be paid in June less the amount remitted in 28.26June. The penalty must not be imposed, however, if the amount remitted in June equals 28.27the lesser of 90 new text begin 81.4 new text end percent of the preceding May's liability or 90 new text begin 81.4 new text end percent of the 28.28average monthly liability for the previous calendar year. 28.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes remitted after May 30, 2014. new text end 28.30    Sec. 6. Minnesota Statutes 2012, section 297A.67, subdivision 13a, is amended to read: 28.31    Subd. 13a. Instructional materials. Instructional materials, other than textbooks, 28.32that are prescribed for use in conjunction with a course of study in a postsecondary school, 28.33college, university, or private career school to students who are regularly enrolled at such 29.1institutions are exempt. For purposes of this subdivision, "instructional materials" means 29.2materials required to be used directly in the completion of the course of study, including, 29.3but not limited to, interactive CDs, tapes, new text begin digital audio works, digital audiovisual works, new text end 29.4and computer software. 29.5Instructional materials do not include general reference works or other items 29.6incidental to the instructional process such as pens, pencils, paper, folders, or computers. 29.7For purposes of this subdivision, "school" and "private career school" have the meanings 29.8given in subdivision 13. 29.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 29.10    Sec. 7. Minnesota Statutes 2012, section 297A.67, is amended by adding a subdivision 29.11to read: 29.12     new text begin Subd. 33. new text end new text begin Bullion coin. new text end new text begin Bullion coin as defined in section 80G.01, subdivision new text end 29.13 new text begin 2, are exempt. new text end 29.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 29.15 new text begin June 30, 2014. new text end 29.16    Sec. 8. Minnesota Statutes 2012, section 297A.67, is amended by adding a subdivision 29.17to read: 29.18     new text begin Subd. 34. new text end new text begin Presentations accessed as digital audio and audiovisual works. new text end 29.19 new text begin The charge for a live or prerecorded presentation, such as a lecture, seminar, new text end 29.20 new text begin workshop, or course, where participants access the presentation as a digital audio new text end 29.21 new text begin work or digital audiovisual work, and are connected to the presentation via the new text end 29.22 new text begin Internet, telecommunications equipment or other device that transfers the presentation new text end 29.23 new text begin electronically, is exempt if: new text end 29.24 new text begin (1) participants and the presenter, during the time that participants access the new text end 29.25 new text begin presentation, are able to give, receive, and discuss the presentation with each other, new text end 29.26 new text begin although the amount of interaction and when in the presentation the interaction occurs new text end 29.27 new text begin may be limited by the presenter; and new text end 29.28 new text begin (2) for those presentations where participants are given the option to attend the new text end 29.29 new text begin same presentation in person: new text end 29.30 new text begin (i) any limitations on the amount of interaction and when it occurs during the new text end 29.31 new text begin presentation are the same for those participants accessing the presentation electronically new text end 29.32 new text begin as those attending in person; and new text end 29.33 new text begin (ii) the admission to the in person presentation is not subject to tax under this chapter. new text end 30.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 30.2 new text begin June 30, 2014. new text end 30.3    Sec. 9. Minnesota Statutes 2012, section 297A.68, is amended by adding a subdivision 30.4to read: 30.5     new text begin Subd. 3a. new text end new text begin Coin-operated entertainment and amusement devices. new text end new text begin Coin-operated new text end 30.6 new text begin entertainment and amusement devices, including, but not limited to, fortune-telling new text end 30.7 new text begin machines, cranes, foosball and pool tables, video and pinball games, batting cages, rides, new text end 30.8 new text begin photo or video booths, and jukeboxes, are exempt when purchased by retailers selling new text end 30.9 new text begin admission to places of amusement and making available amusement devices as provided new text end 30.10 new text begin in section 297A.61, subdivision 3, paragraph (g), clause (1). new text end 30.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 30.12 new text begin June 30, 2014. new text end 30.13    Sec. 10. Minnesota Statutes 2013 Supplement, section 297A.68, subdivision 42, 30.14is amended to read: 30.15    Subd. 42. Qualified data centers. (a) Purchases of enterprise information 30.16technology equipment and computer software for use in a qualified data center, or a 30.17qualified refurbished data center, are exempt new text begin , except that computer software maintenance new text end 30.18 new text begin agreements are exempt for purchases made after June 30, 2013 new text end . The tax on purchases 30.19exempt under this paragraph must be imposed and collected as if the rate under section 30.20297A.62, subdivision 1 , applied, and then refunded after June 30, 2013, in the manner 30.21provided in section 297A.75. This exemption includes enterprise information technology 30.22equipment and computer software purchased to replace or upgrade enterprise information 30.23technology equipment and computer software in a qualified data center, or a qualified 30.24refurbished data center. 30.25(b) Electricity used or consumed in the operation of a qualified data center new text begin or new text end 30.26 new text begin qualified refurbished data center new text end is exempt. 30.27(c) For purposes of this subdivision, "qualified data center, or a qualified refurbished 30.28data center, " means a facility in Minnesota: 30.29(1) that is comprised of one or more buildings that consist in the aggregate of 30.30at least 25,000 square feet, and that are located on a single parcel or on contiguous 30.31parcels, where the total cost of construction or refurbishment, investment in enterprise 30.32information technology equipment, and computer software is at least $30,000,000 within a 30.3348-month period new text begin . The 48-month period begins no sooner than July 1, 2012, except that new text end 31.1 new text begin costs for computer software maintenance agreements purchased before July 1, 2013, are new text end 31.2 new text begin not included in determining if the $30,000,000 threshold has been met new text end ; 31.3(2) that is constructed or substantially refurbished after June 30, 2012, where 31.4"substantially refurbished" means that at least 25,000 square feet have been rebuilt or 31.5modified, including: 31.6(i) installation of enterprise information technology equipment, new text begin ; new text end environmental 31.7control, computer software, and energy efficiency improvements; and 31.8(ii) building improvements; and 31.9(3) that is used to house enterprise information technology equipment, where the 31.10facility has the following characteristics: 31.11(i) uninterruptible power supplies, generator backup power, or both; 31.12(ii) sophisticated fire suppression and prevention systems; and 31.13(iii) enhanced security. A facility will be considered to have enhanced security if it 31.14has restricted access to the facility to selected personnel; permanent security guards; video 31.15camera surveillance; an electronic system requiring pass codes, keycards, or biometric 31.16scans, such as hand scans and retinal or fingerprint recognition; or similar security features. 31.17In determining whether the facility has the required square footage, the square footage 31.18of the following spaces shall be included if the spaces support the operation of enterprise 31.19information technology equipment: office space, meeting space, and mechanical and 31.20other support facilities. For purposes of this subdivision, "computer software" includes, 31.21but is not limited to, software utilized or loaded at the new text begin a new text end qualified data center new text begin or qualified new text end 31.22 new text begin refurbished data center new text end , including maintenance, licensing, and software customization. 31.23(d) For purposes of this subdivision, a "qualified refurbished data center" means an 31.24existing facility that qualifies as a data center under paragraph (c), clauses (2) and (3), but 31.25that is comprised of one or more buildings that consist in the aggregate of at least 25,000 31.26square feet, and that are located on a single parcel or contiguous parcels, where the total 31.27cost of construction or refurbishment, investment in enterprise information technology 31.28equipment, and computer software is at least $50,000,000 within a 24-month period. 31.29(e) For purposes of this subdivision, "enterprise information technology equipment" 31.30means computers and equipment supporting computing, networking, or data storage, 31.31including servers and routers. It includes, but is not limited to: cooling systems, 31.32cooling towers, and other temperature control infrastructure; power infrastructure for 31.33transformation, distribution, or management of electricity used for the maintenance and 31.34operation of a qualified data center new text begin or qualified refurbished data center new text end , including but 31.35not limited to exterior dedicated business-owned substations, backup power generation 31.36systems, battery systems, and related infrastructure; and racking systems, cabling, and 32.1trays, which are necessary for the new text begin a new text end maintenance and operation of the qualified data center 32.2 new text begin or qualified refurbished data center new text end . 32.3(f) A qualified data center new text begin or qualified refurbished data center new text end may claim the 32.4exemptions in this subdivision for purchases made either within 20 years of the date of 32.5its first purchase qualifying for the exemption under paragraph (a), or by June 30, 2042, 32.6whichever is earlier. 32.7(g) The purpose of this exemption is to create jobs in the construction and data 32.8center industries. 32.9(h) This subdivision is effective for sales and purchases made after June 30, 2012, 32.10and before July 1, 2042. 32.11 new text begin (i)(1) The commissioner of employment and economic development must certify new text end 32.12 new text begin to the commissioner of revenue, in a format approved by the commissioner of revenue, new text end 32.13 new text begin when a qualified data center has met the requirements under paragraph (c) or a qualified new text end 32.14 new text begin refurbished data center has met the requirements under paragraph (d). The certification new text end 32.15 new text begin must provide the following information regarding each qualified data center or qualified new text end 32.16 new text begin refurbished data center: new text end 32.17 new text begin (i) the total square footage amount; new text end 32.18 new text begin (ii) the total amount of construction or refurbishment costs and the total amount of new text end 32.19 new text begin qualifying investments in enterprise information technology equipment and computer new text end 32.20 new text begin software; and new text end 32.21 new text begin (iii) the beginning and ending of the applicable period under either paragraph (c) or new text end 32.22 new text begin (d) in which the qualifying expenditures and purchases under item (ii) were made, but in new text end 32.23 new text begin no case shall the period begin before July 1, 2012; new text end 32.24 new text begin (2) Any refund for sales tax paid on qualifying purchases under this subdivision must new text end 32.25 new text begin not be issued unless the commissioner of revenue has received the certification required new text end 32.26 new text begin under clause (1) either from the commissioner of employment and economic development new text end 32.27 new text begin or the qualified data center or qualified refurbished data center claiming the refund; and new text end 32.28 new text begin (3) The commissioner of employment and economic development must annually new text end 32.29 new text begin notify the commissioner of revenue of the qualified data centers that are projected to meet new text end 32.30 new text begin the requirements under paragraph (c) and the qualified refurbished data centers that are new text end 32.31 new text begin projected to meet the requirements under paragraph (d) in each of the next four years. The new text end 32.32 new text begin notification must provide the information required under clause (1), items (i) to (iii), for new text end 32.33 new text begin each qualified data center or qualified refurbished data center. new text end 32.34 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 33.1    Sec. 11. Minnesota Statutes 2013 Supplement, section 297A.68, subdivision 44, 33.2is amended to read: 33.3    Subd. 44. Greater Minnesota business expansions. (a) Purchases and use of 33.4tangible personal property or taxable services by a qualified business, as defined in section 33.5116J.8738 , are exempt if: 33.6(1) the business subsidy agreement provides that the exemption under this 33.7subdivision applies; 33.8(2) the property or services are primarily used or consumed new text begin at the facility new text end in greater 33.9Minnesota new text begin identified in the business subsidy agreement new text end ; and 33.10(3) the purchase was made and delivery received during the duration of the 33.11certification of the business as a qualified business under section 116J.8738. 33.12(b) Purchase and use of construction materials and supplies used or consumed in, 33.13and equipment incorporated into, the construction of improvements to real property in 33.14greater Minnesota are exempt if the improvements after completion of construction are 33.15to be used in the conduct of the trade or business of the qualified business, as defined in 33.16section 116J.8738. This exemption applies regardless of whether the purchases are made 33.17by the business or a contractor. 33.18(c) The exemptions under this subdivision apply to a local sales and use tax. 33.19(d) The tax on purchases imposed under this subdivision must be imposed and 33.20collected as if the rate under section 297A.62 applied, and then refunded in the manner 33.21provided in section 297A.75. new text begin The total amount refunded for a facility over the certification new text end 33.22 new text begin period is limited to the amount listed in the business subsidy agreement. new text end No more than 33.23$7,000,000 may be refunded in a fiscal year for all purchases under this subdivision. 33.24Refunds must be allocated on a first-come, first-served basis. If more than $7,000,000 of 33.25eligible claims are made in a fiscal year, claims by qualified businesses carry over to the 33.26next fiscal year, and the commissioner must first allocate refunds to qualified businesses 33.27eligible for a refund in the preceding fiscal year. Any portion of the balance of funds 33.28allocated for refunds under this paragraph does not cancel and shall be carried forward to 33.29and available for refunds in subsequent fiscal years. 33.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 33.31    Sec. 12. Minnesota Statutes 2013 Supplement, section 297A.70, subdivision 2, is 33.32amended to read: 33.33    Subd. 2. Sales to government. (a) All sales, except those listed in paragraph (b), 33.34to the following governments and political subdivisions, or to the listed agencies or 33.35instrumentalities of governments and political subdivisions, are exempt: 34.1(1) the United States and its agencies and instrumentalities; 34.2(2) school districts, local governments, the University of Minnesota, state universities, 34.3community colleges, technical colleges, state academies, the Perpich Minnesota Center for 34.4Arts Education, and an instrumentality of a political subdivision that is accredited as an 34.5optional/special function school by the North Central Association of Colleges and Schools; 34.6(3) hospitals and nursing homes owned and operated by political subdivisions of 34.7the state of tangible personal property and taxable services used at or by hospitals and 34.8nursing homes; 34.9(4) the Metropolitan Council, for its purchases of vehicles and repair parts to equip 34.10operations provided for in section ; 34.11(5) new text begin (4) new text end other states or political subdivisions of other states, if the sale would be 34.12exempt from taxation if it occurred in that state; and 34.13(6) new text begin (5) new text end public libraries, public library systems, multicounty, multitype library systems 34.14as defined in section 134.001, county law libraries under chapter 134A, state agency 34.15libraries, the state library under section 480.09, and the Legislative Reference Library. 34.16(b) This exemption does not apply to the sales of the following products and services: 34.17(1) building, construction, or reconstruction materials purchased by a contractor 34.18or a subcontractor as a part of a lump-sum contract or similar type of contract with a 34.19guaranteed maximum price covering both labor and materials for use in the construction, 34.20alteration, or repair of a building or facility; 34.21(2) construction materials purchased by tax exempt entities or their contractors to 34.22be used in constructing buildings or facilities which will not be used principally by the 34.23tax exempt entities; 34.24(3) the leasing of a motor vehicle as defined in section 297B.01, subdivision 11, 34.25except for leases entered into by the United States or its agencies or instrumentalities; 34.26(4) lodging as defined under section 297A.61, subdivision 3, paragraph (g), clause 34.27(2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in section 34.28297A.67, subdivision 2 , except for lodging, prepared food, candy, soft drinks, and alcoholic 34.29beverages purchased directly by the United States or its agencies or instrumentalities; or 34.30(5) goods or services purchased by a local government as inputs to goods and 34.31services that are generally provided by a private business and the purchases would be 34.32taxable if made by a private business engaged in the same activity. 34.33(c) As used in this subdivision, "school districts" means public school entities and 34.34districts of every kind and nature organized under the laws of the state of Minnesota, and 34.35any instrumentality of a school district, as defined in section 471.59. 35.1(d) As used in this subdivision, "local governments" means cities, counties, and 35.2townships new text begin ; special districts as defined under section 6.465; any instrumentality of a new text end 35.3 new text begin city, county, or township as defined in section 471.59; and any joint powers board or new text end 35.4 new text begin organization created under section 471.59 new text end . 35.5(e) As used in this subdivision, "goods or services generally provided by a private 35.6business" include, but are not limited to, goods or services provided by liquor stores, gas 35.7and electric utilities, golf courses, marinas, health and fitness centers, campgrounds, cafes, 35.8and laundromats new text begin , solid waste management services, housing facility improvements and new text end 35.9 new text begin maintenance, fitness and special interest classes, recreational and athletic facilities, banquet new text end 35.10 new text begin and private party facilities, aquatic facilities, and cemeteries new text end . "Goods or services generally 35.11provided by a private business" do not include housing services, new text begin : new text end sewer and water 35.12services, wastewater treatment, ambulance and other public safety services, correctional 35.13services, chore or homemaking services provided to elderly or disabled individuals, or 35.14 new text begin computing services, ball fields, new text end road and street maintenance or new text begin , new text end lighting new text begin , or any goods or new text end 35.15 new text begin services provided by local government only to local governments, and housing, chore, or new text end 35.16 new text begin homemaking services provided to the poor, elderly, or disabled individuals new text end . 35.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 35.18 new text begin December 31, 2014. new text end 35.19    Sec. 13. Minnesota Statutes 2013 Supplement, section 297A.70, subdivision 13, 35.20is amended to read: 35.21    Subd. 13. Fund-raising sales by or for nonprofit groups. (a) The following 35.22sales by the specified organizations for fund-raising purposes are exempt, subject to the 35.23limitations listed in paragraph (b): 35.24(1) all sales made by a nonprofit organization that exists solely for the purpose of 35.25providing educational or social activities for young people primarily age 18 and under; 35.26(2) all sales made by an organization that is a senior citizen group or association of 35.27groups if (i) in general it limits membership to persons age 55 or older; (ii) it is organized 35.28and operated exclusively for pleasure, recreation, and other nonprofit purposes; and (iii) 35.29no part of its net earnings inures to the benefit of any private shareholders; 35.30(3) the sale or use of tickets or admissions to a golf tournament held in Minnesota if 35.31the beneficiary of the tournament's net proceeds qualifies as a tax-exempt organization 35.32under section 501(c)(3) of the Internal Revenue Code; and 35.33(4) sales of candy sold for fund-raising purposes by a nonprofit organization that 35.34provides educational and social activities primarily for young people age 18 and under. 35.35(b) The exemptions listed in paragraph (a) are limited in the following manner: 36.1(1) the exemption under paragraph (a), clauses (1) and (2), applies only if new text begin to the first new text end 36.2 new text begin $20,000 of new text end the gross annual receipts of the organization from fund-raising do not exceed 36.3$10,000; and 36.4(2) the exemption under paragraph (a), clause (1), does not apply if the sales are 36.5derived from admission charges or from activities for which the money must be deposited 36.6with the school district treasurer under section 123B.49, subdivision 2, or be recorded in 36.7the same manner as other revenues or expenditures of the school district under section 36.8123B.49, subdivision 4 . 36.9(c) Sales of tangible personal property and services are exempt if the entire proceeds, 36.10less the necessary expenses for obtaining the property or services, will be contributed to 36.11a registered combined charitable organization described in section 43A.50, to be used 36.12exclusively for charitable, religious, or educational purposes, and the registered combined 36.13charitable organization has given its written permission for the sale. Sales that occur over 36.14a period of more than 24 days per year are not exempt under this paragraph. 36.15(d) For purposes of this subdivision, a club, association, or other organization of 36.16elementary or secondary school students organized for the purpose of carrying on sports, 36.17educational, or other extracurricular activities is a separate organization from the school 36.18district or school for purposes of applying the $10,000 new text begin $20,000 new text end limit. 36.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 36.20 new text begin December 31, 2014. new text end 36.21    Sec. 14. Minnesota Statutes 2013 Supplement, section 297A.70, subdivision 14, 36.22is amended to read: 36.23    Subd. 14. Fund-raising events sponsored by nonprofit groups. (a) Sales of 36.24tangible personal property or services at, and admission charges for fund-raising events 36.25sponsored by, a nonprofit organization are exempt if: 36.26(1) all gross receipts are recorded as such, in accordance with generally accepted 36.27accounting practices, on the books of the nonprofit organization; and 36.28(2) the entire proceeds, less the necessary expenses for the event, will be used solely 36.29and exclusively for charitable, religious, or educational purposes. Exempt sales include 36.30the sale of prepared food, candy, and soft drinks at the fund-raising event. 36.31(b) This exemption is limited in the following manner: 36.32(1) it does not apply to admission charges for events involving bingo or other 36.33gambling activities or to charges for use of amusement devices involving bingo or other 36.34gambling activities; 37.1(2) all gross receipts are taxable if the profits are not used solely and exclusively for 37.2charitable, religious, or educational purposes; 37.3(3) it does not apply unless the organization keeps a separate accounting record, 37.4including receipts and disbursements from each fund-raising event that documents all 37.5deductions from gross receipts with receipts and other records; 37.6(4) it does not apply to any sale made by or in the name of a nonprofit corporation as 37.7the active or passive agent of a person that is not a nonprofit corporation; 37.8(5) all gross receipts are taxable if fund-raising events exceed 24 days per year; 37.9(6) it does not apply to fund-raising events conducted on premises leased for more 37.10than five days but less than 30 days; and 37.11(7) it does not apply if the risk of the event is not borne by the nonprofit organization 37.12and the benefit to the nonprofit organization is less than the total amount of the state and 37.13local tax revenues forgone by this exemption. 37.14(c) For purposes of this subdivision, a "nonprofit organization" means any unit of 37.15government, corporation, society, association, foundation, or institution organized and 37.16operated for charitable, religious, educational, civic, fraternal, and senior citizens' or 37.17veterans' purposes, no part of the net earnings of which inures to the benefit of a private 37.18individual. 37.19 new text begin (d) For purposes of this subdivision, "fund-raising events" means activities of new text end 37.20 new text begin limited duration, not regularly carried out in the normal course of business, that attract new text end 37.21 new text begin patrons for community, social, and entertainment purposes, such as auctions, bake sales, new text end 37.22 new text begin ice cream socials, block parties, carnivals, competitions, concerts, concession stands, new text end 37.23 new text begin craft sales, bazaars, dinners, dances, door-to-door sales of merchandise, fairs, fashion new text end 37.24 new text begin shows, festivals, galas, special event workshops, sporting activities such as marathons and new text end 37.25 new text begin tournaments, and similar events. Fund-raising events do not include the operation of a new text end 37.26 new text begin regular place of business in which services are provided or sales are made during regular new text end 37.27 new text begin hours such as bookstores, thrift stores, gift shops, restaurants, ongoing Internet sales, new text end 37.28 new text begin regularly scheduled classes, or other activities carried out in the normal course of business. new text end 37.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 37.30 new text begin December 31, 2014. new text end 37.31    Sec. 15. Minnesota Statutes 2012, section 297A.70, is amended by adding a 37.32subdivision to read: 37.33     new text begin Subd. 19. new text end new text begin Nonprofit snowmobile clubs; machinery and equipment. new text end new text begin Sales of new text end 37.34 new text begin tangible personal property to a nonprofit snowmobile club and that is used primarily and new text end 37.35 new text begin directly for the grooming of state or grant-in-aid snowmobile trails are exempt. The new text end 38.1 new text begin exemption applies to grooming machines, attachments, other associated accessories, new text end 38.2 new text begin and repair parts. new text end 38.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 38.4 new text begin June 30, 2014. new text end 38.5    Sec. 16. Minnesota Statutes 2013 Supplement, section 297F.05, subdivision 1, is 38.6amended to read: 38.7    Subdivision 1. Rates; cigarettes. A tax is imposed upon the sale of cigarettes in 38.8this state, upon having cigarettes in possession in this state with intent to sell, upon any 38.9person engaged in business as a distributor, and upon the use or storage by consumers, at 38.10the following rates: new text begin rate of new text end 38.11(1) on cigarettes weighing not more than three pounds per thousand, 141.5 mills new text begin , new text end 38.12 new text begin or 14.15 cents new text end on each such cigarette; and 38.13(2) on cigarettes weighing more than three pounds per thousand, 283 mills on each 38.14such cigarette. 38.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2014. new text end 38.16    Sec. 17. Minnesota Statutes 2012, section 297F.09, subdivision 10, is amended to read: 38.17    Subd. 10. Accelerated tax payment; cigarette or tobacco products distributor. 38.18    A cigarette or tobacco products distributor having a liability of $120,000 new text begin $250,000 new text end or 38.19more during a fiscal year ending June 30, shall remit the June liability for the next year 38.20in the following manner: 38.21    (a) Two business days before June 30 of the year, the distributor shall remit the 38.22actual May liability and 90 new text begin 81.4 new text end percent of the estimated June liability to the commissioner 38.23and file the return in the form and manner prescribed by the commissioner. 38.24    (b) On or before August 18 of the year, the distributor shall submit a return showing 38.25the actual June liability and pay any additional amount of tax not remitted in June. A 38.26penalty is imposed equal to ten percent of the amount of June liability required to be paid 38.27in June, less the amount remitted in June. However, the penalty is not imposed if the 38.28amount remitted in June equals the lesser of: 38.29    (1) 90 new text begin 81.4 new text end percent of the actual June liability; or 38.30    (2) 90 new text begin 81.4 new text end percent of the preceding May's new text begin May new text end liability. 38.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes remitted after May 30, 2014. new text end 38.32    Sec. 18. Minnesota Statutes 2012, section 297G.09, subdivision 9, is amended to read: 39.1    Subd. 9. Accelerated tax payment; penalty. A person liable for tax under this 39.2chapter having a liability of $120,000 new text begin $250,000 new text end or more during a fiscal year ending June 39.330, shall remit the June liability for the next year in the following manner: 39.4    (a) Two business days before June 30 of the year, the taxpayer shall remit the actual 39.5May liability and 90 new text begin 81.4 new text end percent of the estimated June liability to the commissioner and 39.6file the return in the form and manner prescribed by the commissioner. 39.7    (b) On or before August 18 of the year, the taxpayer shall submit a return showing 39.8the actual June liability and pay any additional amount of tax not remitted in June. A 39.9penalty is imposed equal to ten percent of the amount of June liability required to be paid 39.10in June less the amount remitted in June. However, the penalty is not imposed if the 39.11amount remitted in June equals the lesser of: 39.12    (1) 90 new text begin 81.4 new text end percent of the actual June liability; or 39.13    (2) 90 new text begin 81.4 new text end percent of the preceding May liability. 39.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes remitted after May 30, 2014. new text end 39.15    Sec. 19. Minnesota Statutes 2013 Supplement, section 360.531, subdivision 2, is 39.16amended to read: 39.17    Subd. 2. Rate. The tax shall be as follows: 39.18 Base Price Tax 39.19 39.20 Under $499,999 new text begin Not over $500,000 new text end $100 39.21 39.22 new text begin over new text end $500,000 to $999,999 new text begin but not over $1,000,000 new text end $200 39.23 39.24 new text begin over new text end $1,000,000 to $2,499,999 new text begin but not over $2,500,000 new text end $2,000 39.25 39.26 new text begin over new text end $2,500,000 to $4,999,999 new text begin but not over $5,000,000 new text end $4,000 39.27 39.28 new text begin over new text end $5,000,000 to $7,499,999 new text begin but not over $7,500,000 new text end $7,500 39.29 39.30 new text begin over new text end $7,500,000 to $9,999,999 new text begin but not over $10,000,000 new text end $10,000 39.31 39.32 new text begin over new text end $10,000,000 to $12,499,999 new text begin but not over $12,500,000 new text end $12,500 39.33 39.34 new text begin over new text end $12,500,000 to $14,999,999 new text begin but not over $15,000,000 new text end $15,000 39.35 39.36 new text begin over new text end $15,000,000 to $17,499,999 new text begin but not over $17,500,000 new text end $17,500 39.37 39.38 new text begin over new text end $17,500,000 to $19,999,999 new text begin but not over $20,000,000 new text end $20,000 39.39 39.40 new text begin over new text end $20,000,000 to $22,499,999 new text begin but not over $22,500,000 new text end $22,500 40.1 40.2 new text begin over new text end $22,500,000 to $24,999,999 new text begin but not over $25,000,000 new text end $25,000 40.3 40.4 new text begin over new text end $25,000,000 to $27,499,999 new text begin but not over $27,500,000 new text end $27,500 40.5 40.6 new text begin over new text end $27,500,000 to $29,999,999 new text begin but not over $30,000,000 new text end $30,000 40.7 40.8 new text begin over new text end $30,000,000 to $39,999,999 new text begin but not over $40,000,000 new text end $50,000 40.9 new text begin over new text end $40,000,000 and over $75,000 40.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2014, and applies to aircraft new text end 40.11 new text begin tax due on or after that date. new text end 40.12    Sec. 20. Laws 1980, chapter 511, section 1, subdivision 2, as amended by Laws 1991, 40.13chapter 291, article 8, section 22, Laws 1998, chapter 389, article 8, section 25, Laws 40.142003, First Special Session chapter 21, article 8, section 11, and Laws 2008, chapter 40.15154, article 5, section 2, is amended to read: 40.16    Subd. 2. new text begin (a) new text end Notwithstanding Minnesota Statutes, section 477A.016, or any 40.17other law, ordinance, or city charter provision to the contrary, the city of Duluth may, 40.18by ordinance, impose an additional sales tax of up to two and one-quarter new text begin one and new text end 40.19 new text begin three-quarter new text end percent on sales transactions which are described in Minnesota Statutes 2000, 40.20section 297A.01, subdivision 3, clause (c). When the city council determines that the taxes 40.21imposed under this subdivision and under Laws 1998, chapter 389, article 8, section 26, at a 40.22rate of one-half of one percent have produced revenue sufficient to pay (1) the debt service 40.23on bonds in a principal amount of $8,000,000 issued for capital improvements to the 40.24Duluth Entertainment and Convention Center, and (2) debt service on outstanding bonds 40.25originally issued in the principal amount of $4,970,000 to finance capital improvements to 40.26the Great Lakes Aquarium since the imposition of the taxes at the rate of one and one-half 40.27percent, the rate of the tax under this subdivision is reduced by one-half of one percent. 40.28 The imposition of this tax shall not be subject to voter referendum under either state law 40.29or city charter provisions. When the city council determines that the taxes imposed under 40.30this subdivision new text begin paragraph new text end at a rate of three-quarters of one percent and other sources of 40.31revenue produce revenue sufficient to pay debt service on bonds in the principal amount 40.32of $40,285,000 plus issuance and discount costs, issued for capital improvements at the 40.33Duluth Entertainment and Convention Center, which include a new arena, the rate of tax 40.34under this subdivision must be reduced by three-quarters of one percent. 40.35 new text begin (b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes, new text end 40.36 new text begin section 477A.016, or any other law, ordinance, or city charter provision to the contrary, new text end 40.37 new text begin the city of Duluth may, by ordinance, impose an additional sales tax of up to one-half of new text end 41.1 new text begin one percent on sales transactions which are described in Minnesota Statutes 2000, section new text end 41.2 new text begin 297A.01, subdivision 3, clause (c). This tax expires when the city council determines that new text end 41.3 new text begin the tax imposed under this paragraph has produced revenues sufficient to pay the debt new text end 41.4 new text begin service on bonds in a principal amount of no more than $18,000,000, plus issuance and new text end 41.5 new text begin discount costs, to finance capital improvements to public facilities to support tourism and new text end 41.6 new text begin recreational activities in that portion of the city west of 34th Avenue West. new text end 41.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of new text end 41.8 new text begin the city of Duluth and its chief clerical officer comply with Minnesota Statutes, section new text end 41.9 new text begin 645.021, subdivisions 2 and 3. new text end 41.10    Sec. 21. Laws 2005, First Special Session chapter 3, article 5, section 38, subdivision 41.114, is amended to read: 41.12    Subd. 4. Termination of taxes. The taxes imposed under this section expire at the 41.13earlier of (1) ten new text begin 15 new text end years after the taxes are first imposed, or (2) when the city council first 41.14determines that the amount of revenues raised to pay for the projects under subdivision 2, 41.15shall meet or exceed the sum of $15,000,000. Any funds remaining after completion of 41.16the projects may be placed in the general fund of the city. 41.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after compliance by the new text end 41.18 new text begin governing body of the city of Albert Lea and its chief clerical officer with Minnesota new text end 41.19 new text begin Statutes, section 645.021, subdivisions 2 and 3. new text end 41.20    Sec. 22. Laws 2006, chapter 257, section 2, the effective date, as amended by Laws 41.212011, First Special Session chapter 7, article 3, section 17, is amended to read: 41.22EFFECTIVE DATE.This section is effective for sales and purchases after June 30, 41.232006, and before July 1, 2015. 41.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 41.25    Sec. 23. Laws 2013, chapter 143, article 8, section 22, the effective date, is amended to 41.26read: 41.27EFFECTIVE DATE.This section is effective for sales and purchases made after 41.28June 30, 2013 new text begin retroactively for sales and purchases made after April 1, 2009. Purchasers new text end 41.29 new text begin may apply for a refund of tax paid for qualifying purchases under this subdivision made new text end 41.30 new text begin after April 1, 2009, and before July 1, 2013, in the manner provided in Minnesota Statutes, new text end 42.1 new text begin section 297A.75. Notwithstanding limitations on claims for refunds under Minnesota new text end 42.2 new text begin Statutes, section 289A.40, claims may be filed with the commissioner until June 30, 2015 new text end . 42.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 42.4    Sec. 24. Laws 2013, chapter 143, article 8, section 23, the effective date, is amended to 42.5read: 42.6EFFECTIVE DATE.This section is effective for sales and purchases made after 42.7June 30, 2013 new text begin retroactively for sales and purchases made after April 1, 2009. Purchasers new text end 42.8 new text begin may apply for a refund of tax paid for qualifying purchases under this subdivision made new text end 42.9 new text begin after April 1, 2009, and before July 1, 2013, in the manner provided in Minnesota Statutes, new text end 42.10 new text begin section 297A.75. Notwithstanding limitations on claims for refunds under Minnesota new text end 42.11 new text begin Statutes, section 289A.40, claims may be filed with the commissioner until June 30, 2015 new text end . 42.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 42.13    Sec. 25. Laws 2013, chapter 143, article 8, section 27, the effective date, is amended to 42.14read: 42.15EFFECTIVE DATE. new text begin For the purpose of qualifying under paragraphs (c) and (d), new text end 42.16this section is effective new text begin retroactively new text end for sales and purchases made after June 30, 2013 42.17 new text begin 2012. For the purpose of determining eligibility for the exemptions provided in this new text end 42.18 new text begin section, this section is effective for sales and purchases of computer software maintenance new text end 42.19 new text begin agreements made after June 30, 2013, and for sales and purchases for either a "qualified new text end 42.20 new text begin refurbished data center" or a "qualified data center" made after June 30, 2013, except that new text end 42.21 new text begin if the data center qualifies as a "qualified data center" as defined in Laws 2011, First new text end 42.22 new text begin Special Session chapter 7, article 3, section 7, then the exemptions provided in this section, new text end 42.23 new text begin other than for computer software maintenance agreements, continue to be effective for new text end 42.24 new text begin sales and purchases made after June 30, 2012 new text end . 42.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 42.26    Sec. 26. Laws 2013, chapter 143, article 8, section 37, the effective date, is amended to 42.27read: 42.28EFFECTIVE DATE.This section is effective retroactively to capital investments 42.29made and jobs created after December 31, 2012, and effective retroactively for sales and 43.1purchases made after December 31, 2012, and before July 1, 2019. new text begin Applications for new text end 43.2 new text begin refunds on purchases exempt under this section must not be filed before June 30, 2015. new text end 43.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 43.4    Sec. 27. new text begin CITY OF PROCTOR; LOCAL TAXES AUTHORIZED. new text end 43.5     new text begin Subdivision 1. new text end new text begin Food and beverage tax authorized. new text end new text begin Notwithstanding Minnesota new text end 43.6 new text begin Statutes, section 297A.99 or 477A.016, or any ordinance, city charter, or other provision new text end 43.7 new text begin of law, the city of Proctor may, by ordinance, impose a sales tax of up to one percent on new text end 43.8 new text begin the gross receipts of all food and beverages sold by a restaurant or place of refreshment, new text end 43.9 new text begin as defined by resolution of the city, that is located within the city. For purposes of this new text end 43.10 new text begin section, "food and beverages" include retail on-sale of intoxicating liquor and fermented new text end 43.11 new text begin malt beverages. new text end 43.12     new text begin Subd. 2. new text end new text begin Use of proceeds from authorized taxes. new text end new text begin The proceeds of the taxes new text end 43.13 new text begin imposed under subdivisions 1 and 2 must be used by the city to fund: (1) construction and new text end 43.14 new text begin improvement of walking and bicycle trails; (2) a multiuse civic center facility and parking new text end 43.15 new text begin improvements; and (3) improvements related to the redevelopment and realignment of a new text end 43.16 new text begin road through the fairgrounds property ceded to the city of Proctor by the city of Duluth. new text end 43.17     new text begin Subd. 3. new text end new text begin Collection, administration, and enforcement. new text end new text begin The city may enter into new text end 43.18 new text begin an agreement with the commissioner of revenue to administer, collect, and enforce the new text end 43.19 new text begin taxes under subdivision 1. If the commissioner agrees to collect the tax, the provisions new text end 43.20 new text begin of Minnesota Statutes, section 297A.99, related to collection, administration, and new text end 43.21 new text begin enforcement, and Minnesota Statutes, section 270C.171, apply. new text end 43.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of new text end 43.23 new text begin the city of Proctor and its chief clerical officer comply with Minnesota Statutes, section new text end 43.24 new text begin 645.021, subdivisions 2 and 3. new text end 43.25    Sec. 28. new text begin VALIDATION OF PRIOR ACT; AUTHORIZATION. new text end 43.26 new text begin Notwithstanding the time limits in Minnesota Statutes, section 645.021, the city of new text end 43.27 new text begin Albert Lea may approve Laws 2005, First Special Session chapter 3, article 5, section 38, new text end 43.28 new text begin as amended by Laws 2006, chapter 259, article 3, section 6, and file its approval with the new text end 43.29 new text begin secretary of state by June 15, 2014. If approved as authorized under this section, actions new text end 43.30 new text begin undertaken by the city pursuant to the approval of the voters on November 8, 2005, and new text end 43.31 new text begin otherwise in accordance with Laws 2005, First Special Session chapter 3, article 5, section new text end 43.32 new text begin 38, as amended by Laws 2006, chapter 259, article 3, section 6, are validated. new text end 43.33 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 44.1    Sec. 29. new text begin SALES TO INSTRUMENTALITIES OF THE STATES. new text end 44.2 new text begin Sales of the following items to an organization defined by the Internal Revenue new text end 44.3 new text begin Service as an instrumentality of each, and all, of the states relating to the holding of an new text end 44.4 new text begin annual meeting in this state are exempt: new text end 44.5 new text begin (1) prepared food, soft drinks, and candy, as defined in Minnesota Statutes, section new text end 44.6 new text begin 297A.61, subdivisions 31 to 33; and new text end 44.7 new text begin (2) alcoholic beverages, as defined in Minnesota Statutes, section 297A.67, new text end 44.8 new text begin subdivision 2. new text end 44.9 new text begin EFFECTIVE DATE. new text end new text begin This section is applicable to sales and purchases made after new text end 44.10 new text begin June 30, 2014, and before January 1, 2015. new text end 44.11ARTICLE 3 44.12INCOME AND ESTATE TAXES 44.13    Section 1. Minnesota Statutes 2012, section 116J.8737, subdivision 5, as amended by 44.14Laws 2014, chapter 150, article 1, section 3, is amended to read: 44.15    Subd. 5. Credit allowed. (a) (1) A qualified investor or qualified fund is eligible 44.16for a credit equal to 25 percent of the qualified investment in a qualified small business. 44.17Investments made by a pass-through entity qualify for a credit only if the entity is a 44.18qualified fund. The commissioner must not allocate more than $15,000,000 44.19$15,000,000 in credits to qualified investors or qualified funds for taxable years 44.20beginning after December 31, 2013, and before January 1, 2017; and 44.21(2) for taxable years beginning after December 31, 2014, and before January 1, 44.222017, $7,500,000 must be allocated to credits for qualifying investments in qualified 44.23greater Minnesota businesses and minority- or women-owned qualified small businesses 44.24in Minnesota. Any portion of a taxable year's credits that is reserved for qualifying 44.25investments in greater Minnesota businesses and minority- or women-owned qualified 44.26small businesses in Minnesota that is not allocated by September 30 of the taxable year is 44.27available for allocation to other credit applications beginning on October 1. Any portion 44.28of a taxable year's credits that is not allocated by the commissioner does not cancel and 44.29may be carried forward to subsequent taxable years until all credits have been allocated. 44.30(b) The commissioner may not allocate more than a total maximum amount in credits 44.31for a taxable year to a qualified investor for the investor's cumulative qualified investments 44.32as an individual qualified investor and as an investor in a qualified fund; for married 44.33couples filing joint returns the maximum is $250,000, and for all other filers the maximum 45.1is $125,000. The commissioner may not allocate more than a total of $1,000,000 in credits 45.2over all taxable years for qualified investments in any one qualified small business. 45.3(c) The commissioner may not allocate a credit to a qualified investor either as 45.4an individual qualified investor or as an investor in a qualified fund if, at the time the 45.5investment is proposed: 45.6(1) the investor is an officer or principal of the qualified small business; or 45.7(2) the investor, either individually or in combination with one or more members of 45.8the investor's family, owns, controls, or holds the power to vote 20 percent or more of 45.9the outstanding securities of the qualified small business. 45.10A member of the family of an individual disqualified by this paragraph is not eligible for a 45.11credit under this section. For a married couple filing a joint return, the limitations in this 45.12paragraph apply collectively to the investor and spouse. For purposes of determining the 45.13ownership interest of an investor under this paragraph, the rules under section 267(c) and 45.14267(e) of the Internal Revenue Code apply. 45.15(d) Applications for tax credits for 2010 must be made available on the department's 45.16Web site by September 1, 2010, and the department must begin accepting applications 45.17by September 1, 2010. Applications for subsequent years must be made available by 45.18November 1 of the preceding year. 45.19(e) Qualified investors and qualified funds must apply to the commissioner for tax 45.20credits. Tax credits must be allocated to qualified investors or qualified funds in the order 45.21that the tax credit request applications are filed with the department. The commissioner 45.22must approve or reject tax credit request applications within 15 days of receiving the 45.23application. The commissioner must allocate credits to approved applications if credits 45.24remain available. The investment specified in the application must be made within 60 days 45.25of the allocation of the credits. If the investment is not made within 60 days, the credit 45.26allocation is canceled and available for reallocation. A qualified investor or qualified fund 45.27that fails to invest as specified in the application, within 60 days of allocation of the 45.28credits, must notify the commissioner of the failure to invest within five business days of 45.29the expiration of the 60-day investment period. Credit applications that were approved but 45.30that did not receive an allocation of credits at the time of approval because the aggregate 45.31limit of credits for the year was exhausted remain eligible for allocation of credits if 45.32additional credits become available due to cancellations under this paragraph or due to 45.33termination of the time period for credits reserved for investment in qualified greater 45.34Minnesota businesses and minority- and women-owned small businesses under paragraph 45.35(a). Approved credit applications that do not receive credit allocations in the tax year must 45.36be resubmitted to be eligible for credit allocations in the following tax year. 46.1(f) All tax credit request applications filed with the department on the same day must 46.2be treated as having been filed contemporaneously. If two or more qualified investors or 46.3qualified funds file tax credit request applications on the same day, and the aggregate 46.4amount of credit allocation claims exceeds the aggregate limit of credits under this section 46.5or the lesser amount of credits that remain unallocated on that day, then the credits must 46.6be allocated among the qualified investors or qualified funds who filed on that day on a 46.7pro rata basis with respect to the amounts claimed. The pro rata allocation for any one 46.8qualified investor or qualified fund is the product obtained by multiplying a fraction, 46.9the numerator of which is the amount of the credit allocation claim filed on behalf of 46.10a qualified investor and the denominator of which is the total of all credit allocation 46.11claims filed on behalf of all applicants on that day, by the amount of credits that remain 46.12unallocated on that day for the taxable year. 46.13(g) A qualified investor or qualified fund, or a qualified small business acting on their 46.14behalf, must notify the commissioner when an investment for which credits were allocated 46.15has been made, and the taxable year in which the investment was made. A qualified fund 46.16must also provide the commissioner with a statement indicating the amount invested by 46.17each investor in the qualified fund based on each investor's share of the assets of the 46.18qualified fund at the time of the qualified investment. After receiving notification that the 46.19investment was made, the commissioner must issue credit certificates for the taxable year 46.20in which the investment was made to the qualified investor or, for an investment made by 46.21a qualified fund, to each qualified investor who is an investor in the fund. The certificate 46.22must state that the credit is subject to revocation if the qualified investor or qualified 46.23fund does not hold the investment in the qualified small business for at least three years, 46.24consisting of the calendar year in which the investment was made and the two following 46.25years. The three-year holding period does not apply if: 46.26(1) the investment by the qualified investor or qualified fund becomes worthless 46.27before the end of the three-year period; 46.28(2) 80 percent or more of the assets of the qualified small business is sold before 46.29the end of the three-year period; 46.30(3) the qualified small business is sold before the end of the three-year period; 46.31(4) the qualified small business's common stock begins trading on a public exchange 46.32before the end of the three-year period; or 46.33    (5) the qualified investor dies before the end of the three-year period. 46.34(h) The commissioner must notify the commissioner of revenue of credit certificates 46.35issued under this section. 46.36 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 47.1    Sec. 2. Minnesota Statutes 2013 Supplement, section 136A.129, subdivision 1, is 47.2amended to read: 47.3    Subdivision 1. Definitions. (a) For the purposes of this section, the terms defined in 47.4this subdivision have the meanings given to them. 47.5(b) "Eligible employer" means a taxpayer under section 290.01 with employees 47.6located in greater Minnesota. 47.7(c) "Eligible institution" means a Minnesota public postsecondary institution or 47.8a Minnesota private, nonprofit, baccalaureate new text begin , or graduate new text end degree-granting college or 47.9university. 47.10(d) "Eligible student" means a student enrolled in an eligible institution who has 47.11completed one-half of the credits necessary for the respective degree or certification new text begin , new text end 47.12 new text begin including a graduate degree new text end . 47.13(e) "Greater Minnesota" means the area of the state outside of the counties of Anoka, 47.14Carver, Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, Washington, and 47.15Wright. 47.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 47.17    Sec. 3. Minnesota Statutes 2013 Supplement, section 136A.129, subdivision 3, is 47.18amended to read: 47.19    Subd. 3. Program components. (a) An intern must be an eligible student who has 47.20been admitted to a major program that is related to the intern experience as determined 47.21by the eligible institution. 47.22(b) To participate in the program, an eligible institution must: 47.23(1) enter into written agreements with eligible employers to provide internships that 47.24are at least 12 new text begin eight new text end weeks long and located in greater Minnesota; 47.25(2) determine that the work experience of the internship is related to the eligible 47.26student's course of study; and 47.27(3) new text begin (2) new text end provide academic credit for the successful completion of the internship or 47.28ensure that it fulfills requirements necessary to complete a vocational technical education 47.29program. 47.30(c) To participate in the program, an eligible employer must enter into a written 47.31agreement with an eligible institution specifying that the intern: 47.32(1) would not have been hired without the tax credit described in subdivision 4; 47.33(2) did not work for the employer in the same or a similar job prior to entering 47.34the agreement; 47.35(3) does not replace an existing employee; 48.1(4) has not previously participated in the program; 48.2(5) will be employed at a location in greater Minnesota; 48.3(6) will be paid at least minimum wage for a minimum of 16 hours per week for a 48.4period of at least 12 new text begin eight new text end weeks; and 48.5(7) will be supervised and evaluated by the employer. 48.6(d) The written agreement between the eligible institution and the eligible employer 48.7must certify a credit amount to the employer, not to exceed $2,000 per intern. The total 48.8dollar amount of credits that an eligible institution certifies to eligible employers in a 48.9calendar year may not exceed the amount of its allocation under subdivision 4. 48.10(e) Participating eligible institutions and eligible employers must report annually to 48.11the office. The report must include at least the following: 48.12(1) the number of interns hired; 48.13(2) the number of hours and weeks worked by interns; and 48.14(3) the compensation paid to interns. 48.15(f) An internship required to complete an academic program does not qualify for the 48.16greater Minnesota internship program under this section. 48.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 48.18    Sec. 4. Minnesota Statutes 2013 Supplement, section 136A.129, subdivision 5, is 48.19amended to read: 48.20    Subd. 5. Reports to the legislature. (a) By February 1, 2015 new text begin 2016 new text end , the office 48.21and the Department of Revenue shall report to the legislature on the greater Minnesota 48.22internship program. The report must include at least the following: 48.23(1) the number and dollar amount of credits allowed; 48.24(2) the number of interns employed under the program; and 48.25(3) the cost of administering the program. 48.26(b) By February 1, 2016 new text begin 2017 new text end , the office and the Department of Revenue shall 48.27report to the legislature with an analysis of the effectiveness of the program in stimulating 48.28businesses to hire interns and in assisting participating interns in finding permanent 48.29career positions. This report must include the number of students who participated in the 48.30program who were subsequently employed full-time by the employer. 48.31    Sec. 5. Minnesota Statutes 2013 Supplement, section 270B.01, subdivision 8, is 48.32amended to read: 48.33    Subd. 8. Minnesota tax laws. For purposes of this chapter only, unless expressly 48.34stated otherwise, "Minnesota tax laws" means: 49.1    (1) the taxes, refunds, and fees administered by or paid to the commissioner under 49.2chapters 115B, 289A (except taxes imposed under sections 298.01, 298.015, and 298.24), 49.3290, 290A, 291, 292, 295, 297A, 297B, 297H, and 403, or any similar Indian tribal tax 49.4administered by the commissioner pursuant to any tax agreement between the state and 49.5the Indian tribal government, and includes any laws for the assessment, collection, and 49.6enforcement of those taxes, refunds, and fees; and 49.7    (2) section 273.1315. 49.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 49.9    Sec. 6. Minnesota Statutes 2013 Supplement, section 270B.03, subdivision 1, is 49.10amended to read: 49.11    Subdivision 1. Who may inspect. Returns and return information must, on request, 49.12be made open to inspection by or disclosure to the data subject. The request must be made 49.13in writing or in accordance with written procedures of the chief disclosure officer of the 49.14department that have been approved by the commissioner to establish the identification 49.15of the person making the request as the data subject. For purposes of this chapter, the 49.16following are the data subject: 49.17(1) in the case of an individual return, that individual; 49.18(2) in the case of an income tax return filed jointly, either of the individuals with 49.19respect to whom the return is filed; 49.20(3) in the case of a return filed by a business entity, an officer of a corporation, 49.21a shareholder owning more than one percent of the stock, or any shareholder of an S 49.22corporation; a general partner in a partnership; the owner of a sole proprietorship; a 49.23member or manager of a limited liability company; a participant in a joint venture; the 49.24individual who signed the return on behalf of the business entity; or an employee who is 49.25responsible for handling the tax matters of the business entity, such as the tax manager, 49.26bookkeeper, or managing agent; 49.27(4) in the case of an estate return: 49.28(i) the personal representative or trustee of the estate; and 49.29(ii) any beneficiary of the estate as shown on the federal estate tax return; 49.30(5) in the case of a trust return: 49.31(i) the trustee or trustees, jointly or separately; and 49.32(ii) any beneficiary of the trust as shown in the trust instrument; 49.33(6) if liability has been assessed to a transferee under section 270C.58, subdivision 49.341 , the transferee is the data subject with regard to the returns and return information 49.35relating to the assessed liability; 50.1(7) in the case of an Indian tribal government or an Indian tribal government-owned 50.2entity, 50.3(i) the chair of the tribal government, or 50.4(ii) any person authorized by the tribal government; new text begin and new text end 50.5(8) in the case of a successor as defined in section 270C.57, subdivision 1, paragraph 50.6(b), the successor is the data subject and information may be disclosed as provided by 50.7section 270C.57, subdivision 4; and new text begin . new text end 50.8(9) in the case of a gift return, the donor. 50.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 50.10    Sec. 7. Minnesota Statutes 2012, section 289A.02, subdivision 7, as amended by Laws 50.112014, chapter 150, article 1, section 7, is amended to read: 50.12    Subd. 7. Internal Revenue Code. Unless specifically defined otherwise, "Internal 50.13Revenue Code" means the Internal Revenue Code of 1986, as amended through December 50.1420, 2013 new text begin March 26, 2014 new text end . 50.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively for taxable years new text end 50.16 new text begin beginning after December 31, 2012. new text end 50.17    Sec. 8. Minnesota Statutes 2012, section 290.01, subdivision 7, is amended to read: 50.18    Subd. 7. Resident. (a) The term "resident" means any individual domiciled 50.19in Minnesota, except that an individual is not a "resident" for the period of time that 50.20the individual is a "qualified individual" as defined in section 911(d)(1) of the Internal 50.21Revenue Code, if the qualified individual notifies the county within three months of 50.22moving out of the country that homestead status be revoked for the Minnesota residence 50.23of the qualified individual, and the property is not classified as a homestead while the 50.24individual remains a qualified individual. 50.25(b) "Resident" also means any individual domiciled outside the state who maintains 50.26a place of abode in the state and spends in the aggregate more than one-half of the tax 50.27year in Minnesota, unless: 50.28(1) the individual or the spouse of the individual is in the armed forces of the United 50.29States; or 50.30(2) the individual is covered under the reciprocity provisions in section 290.081. 50.31For purposes of this subdivision, presence within the state for any part of a calendar 50.32day constitutes a day spent in the state. Individuals shall keep adequate records to 50.33substantiate the days spent outside the state. 51.1The term "abode" means a dwelling maintained by an individual, whether or not 51.2owned by the individual and whether or not occupied by the individual, and includes a 51.3dwelling place owned or leased by the individual's spouse. 51.4(c) new text begin In determining if an individual is domiciled in Minnesota, new text end neither the 51.5commissioner nor any court shall consider new text begin : new text end 51.6 new text begin (1) new text end charitable contributions made by an new text begin the new text end individual within or without the state in 51.7determining if the individual is domiciled in Minnesota new text begin ; or new text end 51.8 new text begin (2) the location of the individual's attorneys, certified public accountants, or financial new text end 51.9 new text begin advisors within or without the state new text end . 51.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 51.11    Sec. 9. Minnesota Statutes 2013 Supplement, section 290.01, subdivision 19, as 51.12amended by Laws 2014, chapter 150, article 1, section 9, is amended to read: 51.13    Subd. 19. Net income. The term "net income" means the federal taxable income, 51.14as defined in section 63 of the Internal Revenue Code of 1986, as amended through the 51.15date named in this subdivision, incorporating the federal effective dates of changes to the 51.16Internal Revenue Code and any elections made by the taxpayer in accordance with the 51.17Internal Revenue Code in determining federal taxable income for federal income tax 51.18purposes, and with the modifications provided in subdivisions 19a to 19f. 51.19    In the case of a regulated investment company or a fund thereof, as defined in section 51.20851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment 51.21company taxable income as defined in section 852(b)(2) of the Internal Revenue Code, 51.22except that: 51.23    (1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal 51.24Revenue Code does not apply; 51.25    (2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal 51.26Revenue Code must be applied by allowing a deduction for capital gain dividends and 51.27exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal 51.28Revenue Code; and 51.29    (3) the deduction for dividends paid must also be applied in the amount of any 51.30undistributed capital gains which the regulated investment company elects to have treated 51.31as provided in section 852(b)(3)(D) of the Internal Revenue Code. 51.32    The net income of a real estate investment trust as defined and limited by section 51.33856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust 51.34taxable income as defined in section 857(b)(2) of the Internal Revenue Code. 52.1    The net income of a designated settlement fund as defined in section 468B(d) of 52.2the Internal Revenue Code means the gross income as defined in section 468B(b) of the 52.3Internal Revenue Code. 52.4    The Internal Revenue Code of 1986, as amended through December 20, 2013 new text begin March new text end 52.5 new text begin 26, 2014 new text end , shall be in effect for taxable years beginning after December 31, 1996. 52.6    Except as otherwise provided, references to the Internal Revenue Code in 52.7subdivisions 19 to 19f mean the code in effect for purposes of determining net income for 52.8the applicable year. 52.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment, new text end 52.10 new text begin except the changes incorporated by federal changes are effective retroactively at the same new text end 52.11 new text begin time as the changes were effective for federal purposes. new text end 52.12    Sec. 10. Minnesota Statutes 2013 Supplement, section 290.01, subdivision 19b, as 52.13amended by Laws 2014, chapter 150, article 1, section 11, is amended to read: 52.14    Subd. 19b. Subtractions from federal taxable income. For individuals, estates, 52.15and trusts, there shall be subtracted from federal taxable income: 52.16    (1) net interest income on obligations of any authority, commission, or 52.17instrumentality of the United States to the extent includable in taxable income for federal 52.18income tax purposes but exempt from state income tax under the laws of the United States; 52.19    (2) if included in federal taxable income, the amount of any overpayment of income 52.20tax to Minnesota or to any other state, for any previous taxable year, whether the amount 52.21is received as a refund or as a credit to another taxable year's income tax liability; 52.22    (3) the amount paid to others, less the amount used to claim the credit allowed under 52.23section 290.0674, not to exceed $1,625 for each qualifying child in grades kindergarten 52.24to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and 52.25transportation of each qualifying child in attending an elementary or secondary school 52.26situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a 52.27resident of this state may legally fulfill the state's compulsory attendance laws, which 52.28is not operated for profit, and which adheres to the provisions of the Civil Rights Act 52.29of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or 52.30tuition as defined in section 290.0674, subdivision 1, clause (1). As used in this clause, 52.31"textbooks" includes books and other instructional materials and equipment purchased 52.32or leased for use in elementary and secondary schools in teaching only those subjects 52.33legally and commonly taught in public elementary and secondary schools in this state. 52.34Equipment expenses qualifying for deduction includes expenses as defined and limited in 52.35section 290.0674, subdivision 1, clause (3). "Textbooks" does not include instructional 53.1books and materials used in the teaching of religious tenets, doctrines, or worship, the 53.2purpose of which is to instill such tenets, doctrines, or worship, nor does it include books 53.3or materials for, or transportation to, extracurricular activities including sporting events, 53.4musical or dramatic events, speech activities, driver's education, or similar programs. No 53.5deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or 53.6the qualifying child's vehicle to provide such transportation for a qualifying child. For 53.7purposes of the subtraction provided by this clause, "qualifying child" has the meaning 53.8given in section 32(c)(3) of the Internal Revenue Code; 53.9    (4) income as provided under section 290.0802; 53.10    (5) to the extent included in federal adjusted gross income, income realized on 53.11disposition of property exempt from tax under section 290.491; 53.12    (6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E) 53.13of the Internal Revenue Code in determining federal taxable income by an individual 53.14who does not itemize deductions for federal income tax purposes for the taxable year, an 53.15amount equal to 50 percent of the excess of charitable contributions over $500 allowable 53.16as a deduction for the taxable year under section 170(a) of the Internal Revenue Code, 53.17under the provisions of Public Law 109-1 and Public Law 111-126; 53.18    (7) for individuals who are allowed a federal foreign tax credit for taxes that do not 53.19qualify for a credit under section 290.06, subdivision 22, an amount equal to the carryover 53.20of subnational foreign taxes for the taxable year, but not to exceed the total subnational 53.21foreign taxes reported in claiming the foreign tax credit. For purposes of this clause, 53.22"federal foreign tax credit" means the credit allowed under section 27 of the Internal 53.23Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed 53.24under section 904(c) of the Internal Revenue Code minus national level foreign taxes to 53.25the extent they exceed the federal foreign tax credit; 53.26    (8) in each of the five tax years immediately following the tax year in which an 53.27addition is required under subdivision 19a, clause (7), or 19c, clause (12), in the case of a 53.28shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the 53.29delayed depreciation. For purposes of this clause, "delayed depreciation" means the amount 53.30of the addition made by the taxpayer under subdivision 19a, clause (7), or subdivision 19c, 53.31clause (12), in the case of a shareholder of an S corporation, minus the positive value of 53.32any net operating loss under section 172 of the Internal Revenue Code generated for the 53.33tax year of the addition. The resulting delayed depreciation cannot be less than zero; 53.34    (9) job opportunity building zone income as provided under section 469.316; 53.35    (10) to the extent included in federal taxable income, the amount of compensation 53.36paid to members of the Minnesota National Guard or other reserve components of the 54.1United States military for active service, excluding compensation for services performed 54.2under the Active Guard Reserve (AGR) program. For purposes of this clause, "active 54.3service" means (i) state active service as defined in section 190.05, subdivision 5a, clause 54.4(1); or (ii) federally funded state active service as defined in section 190.05, subdivision 54.55b , but "active service" excludes service performed in accordance with section 190.08, 54.6subdivision 3 ; 54.7    (11) to the extent included in federal taxable income, the amount of compensation 54.8paid to Minnesota residents who are members of the armed forces of the United States 54.9or United Nations for active duty performed under United States Code, title 10; or the 54.10authority of the United Nations; 54.11    (12) an amount, not to exceed $10,000, equal to qualified expenses related to a 54.12qualified donor's donation, while living, of one or more of the qualified donor's organs 54.13to another person for human organ transplantation. For purposes of this clause, "organ" 54.14means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow; 54.15"human organ transplantation" means the medical procedure by which transfer of a human 54.16organ is made from the body of one person to the body of another person; "qualified 54.17expenses" means unreimbursed expenses for both the individual and the qualified donor 54.18for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses 54.19may be subtracted under this clause only once; and "qualified donor" means the individual 54.20or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An 54.21individual may claim the subtraction in this clause for each instance of organ donation for 54.22transplantation during the taxable year in which the qualified expenses occur; 54.23    (13) in each of the five tax years immediately following the tax year in which an 54.24addition is required under subdivision 19a, clause (8), or 19c, clause (13), in the case of a 54.25shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the 54.26addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (13), in the 54.27case of a shareholder of a corporation that is an S corporation, minus the positive value of 54.28any net operating loss under section 172 of the Internal Revenue Code generated for the 54.29tax year of the addition. If the net operating loss exceeds the addition for the tax year, a 54.30subtraction is not allowed under this clause; 54.31    (14) to the extent included in the federal taxable income of a nonresident of 54.32Minnesota, compensation paid to a service member as defined in United States Code, title 54.3310, section 101(a)(5), for military service as defined in the Servicemembers Civil Relief 54.34Act, Public Law 108-189, section 101(2); 54.35    (15) to the extent included in federal taxable income, the amount of national service 54.36educational awards received from the National Service Trust under United States Code, 55.1title 42, sections 12601 to 12604, for service in an approved Americorps National Service 55.2program; 55.3(16) to the extent included in federal taxable income, discharge of indebtedness 55.4income resulting from reacquisition of business indebtedness included in federal taxable 55.5income under section 108(i) of the Internal Revenue Code. This subtraction applies only 55.6to the extent that the income was included in net income in a prior year as a result of the 55.7addition under section 290.01, subdivision 19a, clause (13); 55.8(17) the amount of the net operating loss allowed under section 290.095, subdivision 55.911 , paragraph (c); 55.10(18) the amount of expenses not allowed for federal income tax purposes due 55.11to claiming the railroad track maintenance credit under section 45G(a) of the Internal 55.12Revenue Code; 55.13(19) the amount of the limitation on itemized deductions under section 68(b) of 55.14the Internal Revenue Code; and 55.15(20) the amount of the phaseout of personal exemptions under section 151(d) of the 55.16Internal Revenue Code. new text begin ; new text end 55.17 new text begin (21) to extent included in federal taxable income, the amount of qualified new text end 55.18 new text begin transportation fringe benefits described in section 132(f)(1)(A) and (B) of the Internal new text end 55.19 new text begin Revenue Code. The subtraction is limited to the lesser of the amount of qualified new text end 55.20 new text begin transportation fringe benefits received in excess of the limitations under section new text end 55.21 new text begin 132(f)(2)(A) of the Internal Revenue Code for the year or the difference between the new text end 55.22 new text begin maximum qualified parking benefits excludable under section 132(f)(2)(B) of the Internal new text end 55.23 new text begin Revenue Code minus the amount of transit benefits excludable under section 132(f)(2)(A) new text end 55.24 new text begin of the Internal Revenue Code; and new text end 55.25 new text begin (22) for taxable years beginning after December 31, 2013, and before January 1, new text end 55.26 new text begin 2015, to the extent included in federal taxable income, discharge of qualified principal new text end 55.27 new text begin residence indebtedness, as provided in subparagraph (E) of section 108(a)(1) of the new text end 55.28 new text begin Internal Revenue Code, without regard to whether subparagraph (E) of section 108(a)(1) new text end 55.29 new text begin of the Internal Revenue Code is in effect for the taxable year. new text end 55.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 55.31 new text begin December 31, 2013. new text end 55.32    Sec. 11. Minnesota Statutes 2013 Supplement, section 290.01, subdivision 31, as 55.33amended by Laws 2014, chapter 150, article 1, section 13, is amended to read: 55.34    Subd. 31. Internal Revenue Code. Unless specifically defined otherwise, "Internal 55.35Revenue Code" means the Internal Revenue Code of 1986, as amended through December 56.120, 2013 new text begin March 26, 2014 new text end . Internal Revenue Code also includes any uncodified provision 56.2in federal law that relates to provisions of the Internal Revenue Code that are incorporated 56.3into Minnesota law. When used in this chapter, the reference to "subtitle A, chapter 1, 56.4subchapter N, part 1, of the Internal Revenue Code" is to the Internal Revenue Code as 56.5amended through March 18, 2010. 56.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment, new text end 56.7 new text begin except the changes incorporated by federal changes are effective retroactively at the same new text end 56.8 new text begin time as the changes were effective for federal purposes. new text end 56.9    Sec. 12. Minnesota Statutes 2012, section 290.0677, subdivision 1, is amended to read: 56.10    Subdivision 1. Credit allowed; current military service. (a) An individual is 56.11allowed a credit against the tax due under this chapter equal to $59 for each month or 56.12portion thereof that the individual was in active military service in a designated area after 56.13September 11, 2001, and before January 1, 2009, while a Minnesota domiciliary. 56.14    (b) An individual is allowed a credit against the tax due under this chapter equal to 56.15$120 for each month or portion thereof that the individual was in active military service in 56.16a designated area after December 31, 2008, while a Minnesota domiciliary. 56.17 new text begin (c) An individual is allowed a credit against the tax due under this chapter equal to new text end 56.18 new text begin $200 for each month or portion thereof that the individual was in active military service in new text end 56.19 new text begin a designated area after December 31, 2013, while a Minnesota domiciliary. new text end 56.20    (c) new text begin (d) new text end For active service performed after September 11, 2001, and before December 56.2131, 2006, the individual may claim the credit in the taxable year beginning after December 56.2231, 2005, and before January 1, 2007. 56.23    (d) new text begin (e) new text end For active service performed after December 31, 2006, the individual may 56.24claim the credit for the taxable year in which the active service was performed. 56.25    (e) new text begin (f) new text end If an individual entitled to the credit died prior to January 1, 2006, the 56.26individual's estate or heirs at law, if the individual's probate estate has closed or the estate 56.27was not probated, may claim the credit. 56.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 56.29 new text begin December 31, 2013. new text end 56.30    Sec. 13. Minnesota Statutes 2012, section 290.0677, subdivision 1a, is amended to read: 56.31    Subd. 1a. Credit allowed; past military service. (a) A qualified individual is 56.32allowed a credit against the tax imposed under this chapter for past military service. The 56.33credit equals $750 new text begin $1,500 new text end . The credit allowed under this subdivision is reduced by ten 57.1percent of adjusted gross income in excess of $30,000, but in no case is the credit less 57.2than zero. 57.3    (b) For a nonresident or a part-year resident, the credit under this subdivision 57.4must be allocated based on the percentage calculated under section 290.06, subdivision 57.52c , paragraph (e). 57.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 57.7 new text begin December 31, 2013. new text end 57.8    Sec. 14. new text begin [290.0682] VOLUNTEER FIRST RESPONDER CREDIT. new text end 57.9     new text begin Subdivision 1. new text end new text begin Credit allowed; volunteer first responders. new text end new text begin (a) A qualified new text end 57.10 new text begin individual is allowed a credit against the tax due under this chapter equal to $450. new text end 57.11 new text begin (b) For a nonresident or part-year resident, the credit under this subdivision must new text end 57.12 new text begin be allocated based on the percentage calculated under section 290.06, subdivision 2c, new text end 57.13 new text begin paragraph (e). new text end 57.14     new text begin Subd. 2. new text end new text begin Definitions. new text end new text begin For purposes of this section, "qualified individual" means an new text end 57.15 new text begin individual who is: new text end 57.16 new text begin (1) a volunteer firefighter as defined in section 424A.001, subdivision 10; new text end 57.17 new text begin (2) a volunteer ambulance attendant as defined in section 144E.001, subdivision 15; or new text end 57.18 new text begin (3) an emergency medical responder as defined in section 144E.001, subdivision 6, new text end 57.19 new text begin who provides emergency medical services as a volunteer. new text end 57.20     new text begin Subd. 3. new text end new text begin Credit to be refundable new text end new text begin If the amount of total credits that the claimant is new text end 57.21 new text begin eligible to receive under this section exceeds the claimant's tax liability under chapter 290, new text end 57.22 new text begin the commissioner shall refund the excess to the claimant. new text end 57.23     new text begin Subd. 3. new text end new text begin Limitations. new text end new text begin An individual is not eligible for the credit under this section new text end 57.24 new text begin unless the individual has served as a volunteer firefighter, volunteer ambulance attendant, new text end 57.25 new text begin or volunteer emergency medical provider for more than one calendar year. new text end 57.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 57.27 new text begin December 31, 2013. new text end 57.28    Sec. 15. Minnesota Statutes 2012, section 290.081, is amended to read: 57.29290.081 INCOME OF NONRESIDENTS, RECIPROCITY. 57.30(a) The compensation received for the performance of personal or professional 57.31services within this state by an individual whose residence, place of abode, and place 57.32customarily returned to at least once a month is in another state, shall be excluded from 57.33gross income to the extent such compensation is subject to an income tax imposed by the 58.1state of residence; provided that such state allows a similar exclusion of compensation 58.2received by residents of Minnesota for services performed therein. 58.3(b) When it is deemed to be in the best interests of the people of this state, the 58.4commissioner may determine that the provisions of paragraph (a) shall not apply. As long 58.5as the provisions of paragraph (a) apply between Minnesota and Wisconsin, the provisions 58.6of paragraph (a) shall apply to any individual who is domiciled in Wisconsin. 58.7(c) For the purposes of paragraph (a), whenever the Wisconsin tax on Minnesota 58.8residents which would have been paid Wisconsin without paragraph (a) exceeds the 58.9Minnesota tax on Wisconsin residents which would have been paid Minnesota without 58.10paragraph (a), or vice versa, then the state with the net revenue loss resulting from 58.11paragraph (a) must be compensated by new text begin shall receive from new text end the other state as provided in the 58.12agreement under paragraph (d) new text begin the amount of such loss new text end . This provision shall be effective 58.13for all years beginning after December 31, 1972. The data used for computing the loss 58.14to either state shall be determined on or before September 30 of the year following the 58.15close of the previous calendar year. 58.16(d) new text begin (1) new text end Interest is payable on all amounts calculated under paragraph (c) relating 58.17to taxable years beginning after December 31, 2000. Interest accrues from July 1 of 58.18the taxable year. 58.19 new text begin (2) new text end The commissioner of revenue is authorized to enter into agreements with 58.20the state of Wisconsin specifying the compensation required under paragraph (b), the 58.21reciprocity payment due date new text begin dates new text end , conditions constituting delinquency, interest rates, and 58.22a method for computing interest due. Calculation of compensation under the agreement 58.23must specify if the revenue loss is determined before or after the allowance of each state's 58.24credit for taxes paid to the other state. 58.25 new text begin (3) For agreements entered into before October 1, 2014, the annual compensation new text end 58.26 new text begin required under paragraph (c) must equal at least the net revenue loss minus $1,000,000 new text end 58.27 new text begin per fiscal year. new text end 58.28 new text begin (4) For agreements entered into after September 30, 2014, the annual compensation new text end 58.29 new text begin required under paragraph (c) must equal the net revenue loss per fiscal year. new text end 58.30 new text begin (5) For the purposes of clauses (3) and (4), "net revenue loss" means the difference new text end 58.31 new text begin between the amount of Minnesota income taxes Minnesota forgoes by not taxing new text end 58.32 new text begin Wisconsin residents on income subject to reciprocity and the credit Minnesota would new text end 58.33 new text begin have been required to give under section 290.06, subdivision 22, to Minnesota residents new text end 58.34 new text begin working in Wisconsin had there not been reciprocity. new text end 58.35(e) If an agreement cannot be reached as to the amount of the loss, the commissioner 58.36of revenue and the taxing official of the state of Wisconsin shall each appoint a member 59.1of a board of arbitration and these members shall appoint the third member of the board. 59.2The board shall select one of its members as chair. Such board may administer oaths, take 59.3testimony, subpoena witnesses, and require their attendance, require the production of 59.4books, papers and documents, and hold hearings at such places as are deemed necessary. 59.5The board shall then make a determination as to the amount to be paid the other state 59.6which determination shall be final and conclusive. 59.7(f) The commissioner may furnish copies of returns, reports, or other information to 59.8the taxing official of the state of Wisconsin, a member of the board of arbitration, or a 59.9consultant under joint contract with the states of Minnesota and Wisconsin for the purpose 59.10of making a determination as to the amount to be paid the other state under the provisions 59.11of this section. Prior to the release of any information under the provisions of this section, 59.12the person to whom the information is to be released shall sign an agreement which 59.13provides that the person will protect the confidentiality of the returns and information 59.14revealed thereby to the extent that it is protected under the laws of the state of Minnesota. 59.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 59.16    Sec. 16. Minnesota Statutes 2013 Supplement, section 290.091, subdivision 2, as 59.17amended by Laws 2014, chapter 150, article 1, section 21, is amended to read: 59.18    Subd. 2. Definitions. For purposes of the tax imposed by this section, the following 59.19terms have the meanings given: 59.20    (a) "Alternative minimum taxable income" means the sum of the following for 59.21the taxable year: 59.22    (1) the taxpayer's federal alternative minimum taxable income as defined in section 59.2355(b)(2) of the Internal Revenue Code; 59.24    (2) the taxpayer's itemized deductions allowed in computing federal alternative 59.25minimum taxable income, but excluding: 59.26    (i) the charitable contribution deduction under section 170 of the Internal Revenue 59.27Code; 59.28    (ii) the medical expense deduction; 59.29    (iii) the casualty, theft, and disaster loss deduction; and 59.30    (iv) the impairment-related work expenses of a disabled person; 59.31    (3) for depletion allowances computed under section 613A(c) of the Internal 59.32Revenue Code, with respect to each property (as defined in section 614 of the Internal 59.33Revenue Code), to the extent not included in federal alternative minimum taxable income, 59.34the excess of the deduction for depletion allowable under section 611 of the Internal 60.1Revenue Code for the taxable year over the adjusted basis of the property at the end of the 60.2taxable year (determined without regard to the depletion deduction for the taxable year); 60.3    (4) to the extent not included in federal alternative minimum taxable income, the 60.4amount of the tax preference for intangible drilling cost under section 57(a)(2) of the 60.5Internal Revenue Code determined without regard to subparagraph (E); 60.6    (5) to the extent not included in federal alternative minimum taxable income, the 60.7amount of interest income as provided by section 290.01, subdivision 19a, clause (1); and 60.8    (6) the amount of addition required by section 290.01, subdivision 19a, clauses (7) 60.9to (9), and (11) to (14); 60.10    less the sum of the amounts determined under the following: 60.11    (1) interest income as defined in section 290.01, subdivision 19b, clause (1); 60.12    (2) an overpayment of state income tax as provided by section 290.01, subdivision 60.1319b , clause (2), to the extent included in federal alternative minimum taxable income; 60.14    (3) the amount of investment interest paid or accrued within the taxable year on 60.15indebtedness to the extent that the amount does not exceed net investment income, as 60.16defined in section 163(d)(4) of the Internal Revenue Code. Interest does not include 60.17amounts deducted in computing federal adjusted gross income; 60.18    (4) amounts subtracted from federal taxable income as provided by section 290.01, 60.19subdivision 19b , clauses (6), (8) to (14), and (16) new text begin , (21), and (22) new text end ; and 60.20(5) the amount of the net operating loss allowed under section 290.095, subdivision 60.2111 , paragraph (c). 60.22    In the case of an estate or trust, alternative minimum taxable income must be 60.23computed as provided in section 59(c) of the Internal Revenue Code. 60.24    (b) "Investment interest" means investment interest as defined in section 163(d)(3) 60.25of the Internal Revenue Code. 60.26    (c) "Net minimum tax" means the minimum tax imposed by this section. 60.27    (d) "Regular tax" means the tax that would be imposed under this chapter (without 60.28regard to this section and section 290.032), reduced by the sum of the nonrefundable 60.29credits allowed under this chapter. 60.30    (e) "Tentative minimum tax" equals 6.75 percent of alternative minimum taxable 60.31income after subtracting the exemption amount determined under subdivision 3. 60.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 60.33 new text begin December 31, 2013. new text end 60.34    Sec. 17. Minnesota Statutes 2013 Supplement, section 290A.03, subdivision 15, as 60.35amended by Laws 2014, chapter 150, article 1, section 22, is amended to read: 61.1    Subd. 15. Internal Revenue Code. "Internal Revenue Code" means the Internal 61.2Revenue Code of 1986, as amended through December 20, 2013 new text begin March 26, 2014 new text end . 61.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively for property tax refunds new text end 61.4 new text begin based on property taxes payable after December 31, 2013, and rent paid after December new text end 61.5 new text begin 31, 2012. new text end 61.6    Sec. 18. Minnesota Statutes 2013 Supplement, section 291.005, subdivision 1, as 61.7amended by Laws 2014, chapter 150, article 3, section 3, is amended to read: 61.8    Subdivision 1. Scope. Unless the context otherwise clearly requires, the following 61.9terms used in this chapter shall have the following meanings: 61.10    (1) "Commissioner" means the commissioner of revenue or any person to whom the 61.11commissioner has delegated functions under this chapter. 61.12    (2) "Federal gross estate" means the gross estate of a decedent as required to be valued 61.13and otherwise determined for federal estate tax purposes under the Internal Revenue Code. 61.14    (3) "Internal Revenue Code" means the United States Internal Revenue Code of 61.151986, as amended through March 1 new text begin 26 new text end , 2014. 61.16    (4) "Minnesota gross estate" means the federal gross estate of a decedent after 61.17(a) excluding therefrom any property included in the estate which has its situs outside 61.18Minnesota, and (b) including any property omitted from the federal gross estate which 61.19is includable in the estate, has its situs in Minnesota, and was not disclosed to federal 61.20taxing authorities. 61.21    (5) "Nonresident decedent" means an individual whose domicile at the time of 61.22death was not in Minnesota. 61.23    (6) "Personal representative" means the executor, administrator or other person 61.24appointed by the court to administer and dispose of the property of the decedent. If there 61.25is no executor, administrator or other person appointed, qualified, and acting within this 61.26state, then any person in actual or constructive possession of any property having a situs in 61.27this state which is included in the federal gross estate of the decedent shall be deemed 61.28to be a personal representative to the extent of the property and the Minnesota estate tax 61.29due with respect to the property. 61.30    (7) "Resident decedent" means an individual whose domicile at the time of death 61.31was in Minnesota. new text begin The provisions of section 290.01, subdivision 7, paragraph (c), apply to new text end 61.32 new text begin determinations of domicile under this chapter. new text end 61.33    (8) "Situs of property" means, with respect to: 61.34    (i) real property, the state or country in which it is located; 62.1    (ii) tangible personal property, the state or country in which it was normally kept 62.2or located at the time of the decedent's death or for a gift of tangible personal property 62.3within three years of death, the state or country in which it was normally kept or located 62.4when the gift was executed; and 62.5    (iii) new text begin a qualified work of art, as defined in section 2503(g)(2) of the Internal Revenue new text end 62.6 new text begin Code, owned by a nonresident decedent and that is normally kept or located in this state new text end 62.7 new text begin because it is on loan to an organization, qualifying as exempt from taxation under section new text end 62.8 new text begin 501(c)(3) of the Internal Revenue Code, that is located in Minnesota, the situs of the art is new text end 62.9 new text begin deemed to be outside of Minnesota, notwithstanding the provisions of item (ii); and new text end 62.10     new text begin (iv) new text end intangible personal property, the state or country in which the decedent was 62.11domiciled at death or for a gift of intangible personal property within three years of death, 62.12the state or country in which the decedent was domiciled when the gift was executed. 62.13    For a nonresident decedent with an ownership interest in a pass-through entity with 62.14assets that include real or tangible personal property, situs of the real or tangible personal 62.15property new text begin , including qualified works of art, new text end is determined as if the pass-through entity does 62.16not exist and the real or tangible personal property is personally owned by the decedent. 62.17If the pass-through entity is owned by a person or persons in addition to the decedent, 62.18ownership of the property is attributed to the decedent in proportion to the decedent's 62.19capital ownership share of the pass-through entity. 62.20(9) "Pass-through entity" includes the following: 62.21(i) an entity electing S corporation status under section 1362 of the Internal Revenue 62.22Code; 62.23(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code; 62.24(iii) a single-member limited liability company or similar entity, regardless of 62.25whether it is taxed as an association or is disregarded for federal income tax purposes 62.26under Code of Federal Regulations, title 26, section 301.7701-3; or 62.27(iv) a trust to the extent the property is includible in the decedent's federal gross 62.28estate; but excludes 62.29    (v) an entity whose ownership interest securities are traded on an exchange regulated 62.30by the Securities and Exchange Commission as a national securities exchange under 62.31section 6 of the Securities Exchange Act, United States Code, title 15, section 78f. 62.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively for estates of decedents new text end 62.33 new text begin dying after December 31, 2013, except the changes in clause (7) are effective the day new text end 62.34 new text begin following final enactment. new text end 63.1    Sec. 19. Laws 2014, chapter 150, article 3, section 4, the effective date, is amended to 63.2read: 63.3EFFECTIVE DATE.This section is effective retroactively for estates of decedents 63.4dying after December 31, 2013 new text begin , and for taxable gifts made after June 30, 2013 new text end . 63.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 63.6    Sec. 20. new text begin DEFINITION OF TAXABLE GIFT FOR DECEDENTS DYING new text end 63.7 new text begin BEFORE JANUARY 1, 2014. new text end 63.8 new text begin For estates of decedents dying before January 1, 2014, "taxable gift" as used by new text end 63.9 new text begin Minnesota Statutes, section 291.005, subdivision 1, paragraph (4), means a transfer by gift new text end 63.10 new text begin which is included in taxable gifts for federal gift tax purposes under the following sections new text end 63.11 new text begin of the Internal Revenue Code: section 529; section 530; section 2501(a)(4); section 2503; new text end 63.12 new text begin sections 2511 to 2514; and sections 2516 to 2519; less the deductions allowed in sections new text end 63.13 new text begin 2522 to 2524 of the Internal Revenue Code, and after excluding taxable gifts of any new text end 63.14 new text begin property that has its situs outside Minnesota and including taxable gifts of any property new text end 63.15 new text begin tax that has its situs in Minnesota and were not disclosed to federal taxing authorities. new text end 63.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively for taxable gifts made new text end 63.17 new text begin after June 30, 2013. new text end 63.18    Sec. 21. new text begin TEMPORARY EDUCATION CREDITS. new text end 63.19     new text begin Subdivision 1. new text end new text begin Students with disabilities tutoring credit. new text end new text begin (a) A taxpayer is allowed new text end 63.20 new text begin a credit, up to $2,000, against the tax imposed by Minnesota Statutes, chapter 290. The new text end 63.21 new text begin credit amount equals 75 percent of the amount of eligible expenses paid by a taxpayer who new text end 63.22 new text begin is a parent or guardian of a child for whom a Minnesota individualized education program is new text end 63.23 new text begin in effect pursuant to Minnesota Statutes, section 125A.08. The taxpayer claiming the credit new text end 63.24 new text begin under this subdivision must be a member of the child's individual education program team. new text end 63.25 new text begin (b) For the purposes of this subdivision, the following definitions apply: new text end 63.26 new text begin (1) "eligible expenses" means actual expenses, less the amount of expenses used to new text end 63.27 new text begin claim the credit under Minnesota Statutes, section 290.0674, subdivision 1, paid by the new text end 63.28 new text begin taxpayer for tutoring, instruction, or treatment by an instructor and not compensated by new text end 63.29 new text begin insurance, pretax account, or otherwise, to meet the cognitive, academic, communicative, new text end 63.30 new text begin social and emotional, motor ability, vocational, sensory, physical, or behavioral and new text end 63.31 new text begin functional needs of a student for purposes of improvement in meeting the academic new text end 63.32 new text begin standards required under Minnesota Statutes, section 120B.22; and new text end 64.1 new text begin (2) "instructor" means a person qualifying under Minnesota Statutes, section new text end 64.2 new text begin 120A.22, subdivision 10, clauses (1) to (5), who is not a lineal ancestor or sibling of new text end 64.3 new text begin the qualifying child. new text end 64.4 new text begin (c) A taxpayer claiming the credit under this subdivision must provide documentation new text end 64.5 new text begin of eligibility for the credit in a form and manner prescribed by the commissioner of revenue. new text end 64.6     new text begin Subd. 2. new text end new text begin Reading credit. new text end new text begin (a) A taxpayer is allowed a credit, up to $2,000, against the new text end 64.7 new text begin tax imposed by Minnesota Statutes, chapter 290. The credit amount equals 75 percent of new text end 64.8 new text begin the amount of eligible expenses paid by a taxpayer who is a parent or guardian of a child: new text end 64.9 new text begin (1) who has been evaluated for determination of a specific learning disability under new text end 64.10 new text begin Minnesota Rules, part 3525.1341, and was not found to meet the criteria under Minnesota new text end 64.11 new text begin Rules, part 3525.1341, subpart 2, to have a specific learning disability; and new text end 64.12 new text begin (2) for whom the evaluation indicated a determination of a deficiency in basic new text end 64.13 new text begin reading skills, reading comprehension, or reading fluency that impair a child to meet new text end 64.14 new text begin expected age or grade-level standards. new text end 64.15 new text begin (b) For purposes of this subdivision, the following definitions apply: new text end 64.16 new text begin (1) "eligible expenses" means actual expenses, less the amount of expenses used to new text end 64.17 new text begin claim the credit under Minnesota Statutes, section 290.0674, subdivision 1, paid by the new text end 64.18 new text begin taxpayer for tutoring, instruction, or treatment by an instructor and not compensated by new text end 64.19 new text begin insurance, pretax account, or otherwise, for purposes of meeting the academic standards new text end 64.20 new text begin required under Minnesota Statutes, section 120B.22; new text end 64.21 new text begin (2) "instructor" means a person qualifying under Minnesota Statutes, section new text end 64.22 new text begin 120A.22, subdivision 10, clauses (1) to (5), who is not a lineal ancestor or sibling of new text end 64.23 new text begin the qualifying child; and new text end 64.24 new text begin (3) "treatment" means instruction that: new text end 64.25 new text begin (i) teaches language decoding skills in a systematic manner; new text end 64.26 new text begin (ii) uses recognized diagnostic assessments to determine what intervention would be new text end 64.27 new text begin most appropriate for individual students; and new text end 64.28 new text begin (iii) employs a research-based method. new text end 64.29 new text begin (c) A taxpayer claiming the credit under this subdivision must provide documentation new text end 64.30 new text begin of eligibility for the credit in a form and manner prescribed by the commissioner. new text end 64.31     new text begin Subd. 3. new text end new text begin Assignment of refunds. new text end new text begin The provisions of Minnesota Statutes, section new text end 64.32 new text begin 290.0679, except for subdivision 1, paragraphs (c) to (f), apply to the assignment of new text end 64.33 new text begin refunds authorized under this section. For purposes of assignment of refund under this new text end 64.34 new text begin section, a "qualifying taxpayer" means a taxpayer qualified to receive a credit under this new text end 64.35 new text begin section. In no case shall any condition for assignment require disclosure of the specific new text end 64.36 new text begin findings of an evaluation for a specific learning disability. new text end 65.1     new text begin Subd. 4. new text end new text begin Credit to be refundable. new text end new text begin If the amount of total credits that the claimant is new text end 65.2 new text begin eligible to receive under this section exceeds the claimant's tax liability under Minnesota new text end 65.3 new text begin Statutes, chapter 290, the commissioner shall refund the excess to the claimant. new text end 65.4     new text begin Subd. 5. new text end new text begin Appropriation. new text end new text begin An amount sufficient to pay the refunds authorized under new text end 65.5 new text begin this section is appropriated to the commissioner from the general fund. new text end 65.6     new text begin Subd. 6. new text end new text begin Report. new text end new text begin By October 1, 2015, the commissioner must provide a report to new text end 65.7 new text begin the chairs and ranking minority members of the committees of the house of representatives new text end 65.8 new text begin and senate with jurisdiction over taxes on: new text end 65.9 new text begin (1) the number of taxpayers claiming the credits under this section and the average new text end 65.10 new text begin amount of credits claimed; and new text end 65.11 new text begin (2) the administration of the credits, including recommendations for ensuring new text end 65.12 new text begin compliance. new text end 65.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment for new text end 65.14 new text begin tax year 2014 only. new text end 65.15ARTICLE 4 65.16MINERALS 65.17    Section 1. Minnesota Statutes 2013 Supplement, section 298.28, subdivision 4, is 65.18amended to read: 65.19    Subd. 4. School districts. (a) new text begin 33.5 new text end cents per taxable ton, plus the increase 65.20provided in paragraph (d), less the amount that would have been computed under 65.21Minnesota Statutes 2008, section 126C.21, subdivision 4, for the current year for that 65.22district, must be allocated to qualifying school districts to be distributed, based upon the 65.23certification of the commissioner of revenue, under paragraphs (b), (c), and (f). 65.24    (b)(i) 3.43 new text begin 3.88 new text end cents per taxable ton must be distributed to the school districts in 65.25which the lands from which taconite was mined or quarried were located or within which 65.26the concentrate was produced. The distribution must be based on the apportionment 65.27formula prescribed in subdivision 2. 65.28    (ii) Four new text begin 4.45 new text end cents per taxable ton from each taconite facility must be distributed 65.29to each affected school district for deposit in a fund dedicated to building maintenance 65.30and repairs, as follows: 65.31    (1) proceeds from Keewatin Taconite or its successor are distributed to Independent 65.32School Districts Nos. 316, Coleraine, and 319, Nashwauk-Keewatin, or their successor 65.33districts; 66.1    (2) proceeds from the Hibbing Taconite Company or its successor are distributed to 66.2Independent School Districts Nos. 695, Chisholm, and 701, Hibbing, or their successor 66.3districts; 66.4    (3) proceeds from the Mittal Steel Company and Minntac or their successors are 66.5distributed to Independent School Districts Nos. 712, Mountain Iron-Buhl, 706, Virginia, 66.62711, Mesabi East, and 2154, Eveleth-Gilbert, or their successor districts; 66.7    (4) proceeds from the Northshore Mining Company or its successor are distributed 66.8to Independent School Districts Nos. 2142, St. Louis County, and 381, Lake Superior, 66.9or their successor districts; and 66.10    (5) proceeds from United Taconite or its successor are distributed to Independent 66.11School Districts Nos. 2142, St. Louis County, and 2154, Eveleth-Gilbert, or their 66.12successor districts. 66.13    Revenues that are required to be distributed to more than one district shall be 66.14apportioned according to the number of pupil units identified in section 126C.05, 66.15subdivision 1 , enrolled in the second previous year. 66.16    (c)(i) new text begin 25.17 new text end cents per taxable ton, less any amount distributed under paragraph 66.17(e), shall be distributed to a group of school districts comprised of those school districts 66.18which qualify as a tax relief area under section 273.134, paragraph (b), or in which there is 66.19a qualifying municipality as defined by section 273.134, paragraph (a), in direct proportion 66.20to school district indexes as follows: for each school district, its pupil units determined 66.21under section 126C.05 for the prior school year shall be multiplied by the ratio of the 66.22average adjusted net tax capacity per pupil unit for school districts receiving aid under 66.23this clause as calculated pursuant to chapters 122A, 126C, and 127A for the school year 66.24ending prior to distribution to the adjusted net tax capacity per pupil unit of the district. 66.25Each district shall receive that portion of the distribution which its index bears to the sum 66.26of the indices for all school districts that receive the distributions. 66.27    (ii) Notwithstanding clause (i), each school district that receives a distribution 66.28under sections 298.018; 298.23 to 298.28, exclusive of any amount received under this 66.29clause; 298.34 to 298.39; 298.391 to 298.396; 298.405; or any law imposing a tax on 66.30severed mineral values after reduction for any portion distributed to cities and towns 66.31under section 126C.48, subdivision 8, paragraph (5), that is less than the amount of its 66.32levy reduction under section 126C.48, subdivision 8, for the second year prior to the 66.33year of the distribution shall receive a distribution equal to the difference; the amount 66.34necessary to make this payment shall be derived from proportionate reductions in the 66.35initial distribution to other school districts under clause (i). If there are insufficient tax 66.36proceeds to make the distribution provided under this paragraph in any year, money must 67.1be transferred from the taconite property tax relief account in subdivision 6, to the extent 67.2of the shortfall in the distribution. 67.3    (d)(1) Any school district described in paragraph (c) where a levy increase pursuant 67.4to section 126C.17, subdivision 9, was authorized by referendum for taxes payable in 67.52001, shall receive a distribution of 21.3 cents per ton. Each district shall receive $175 67.6times the pupil units identified in section 126C.05, subdivision 1, enrolled in the second 67.7previous year or the 1983-1984 school year, whichever is greater, less the product of 1.8 67.8percent times the district's taxable net tax capacity in 2011. 67.9(2) Districts qualifying under paragraph (c) must receive additional taconite aid each 67.10year equal to 22.5 percent of the amount obtained by subtracting: 67.11(i) 1.8 percent of the district's net tax capacity for 2011, from: 67.12(ii) the district's weighted average daily membership for fiscal year 2012, multiplied 67.13by the sum of: 67.14(A) $415, plus 67.15(B) the district's referendum revenue allowance for fiscal year 2013. 67.16    If the total amount provided by paragraph (d) is insufficient to make the payments 67.17herein required then the entitlement of $175 per pupil unit shall be reduced uniformly 67.18so as not to exceed the funds available. Any amounts received by a qualifying school 67.19district in any fiscal year pursuant to paragraph (d) shall not be applied to reduce general 67.20education aid which the district receives pursuant to section 126C.13 or the permissible 67.21levies of the district. Any amount remaining after the payments provided in this paragraph 67.22shall be paid to the commissioner of Iron Range resources and rehabilitation who shall 67.23deposit the same in the taconite environmental protection fund and the Douglas J. Johnson 67.24economic protection trust fund as provided in subdivision 11. 67.25    Each district receiving money according to this paragraph shall reserve the lesser of 67.26the amount received under this paragraph or $25 times the number of pupil units served in 67.27the district. It may use the money for early childhood programs. 67.28    (e) There shall be distributed to any school district the amount which the school 67.29district was entitled to receive under section 298.32 in 1975. 67.30    (f) Four new text begin 4.45 new text end cents per taxable ton must be distributed to qualifying school districts 67.31according to the distribution specified in paragraph (b), clause (ii), and 11 cents per 67.32taxable ton must be distributed according to the distribution specified in paragraph (c). 67.33These amounts are not subject to sections 126C.21, subdivision 4, and new text begin section new text end 126C.48, 67.34subdivision 8 . 67.35 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning for the 2015 distribution. new text end 68.1    Sec. 2. Minnesota Statutes 2012, section 298.28, subdivision 5, as amended by Laws 68.22014, chapter 150, article 6, section 11, is amended to read: 68.3    Subd. 5. Counties. (a) new text begin 21.941 new text end cents per taxable ton is allocated to counties to 68.4be distributed, based upon certification by the commissioner of revenue, under paragraphs 68.5(b) to (d). 68.6    (b) 10.525 cents per taxable ton shall be distributed to the county in which the 68.7taconite is mined or quarried or in which the concentrate is produced, less any amount 68.8which is to be distributed pursuant to paragraph (c). The apportionment formula prescribed 68.9in subdivision 2 is the basis for the distribution. 68.10    (c) If an electric power plant owned by and providing the primary source of power for 68.11a taxpayer mining and concentrating taconite is located in a county other than the county 68.12in which the mining and the concentrating processes are conducted, one cent per taxable 68.13ton of the tax distributed to the counties pursuant to paragraph (b) and imposed on and 68.14collected from such taxpayer shall be paid to the county in which the power plant is located. 68.15    (d) 10.525 new text begin 11.416 new text end cents per taxable ton shall be paid to the county from which the 68.16taconite was mined, quarried or concentrated to be deposited in the county road and 68.17bridge fund. If the mining, quarrying and concentrating, or separate steps in any of those 68.18processes are carried on in more than one county, the commissioner shall follow the 68.19apportionment formula prescribed in subdivision 2. 68.20    Sec. 3. Minnesota Statutes 2013, section 298.28, subdivision 7a, as added by Laws 68.212014, chapter 150, article 6, section 13, is amended to read: 68.22    Subd. 7a. Iron Range school consolidation and cooperatively operated school 68.23account. The following amounts must be allocated to the Iron Range Resources and 68.24Rehabilitation Board to be deposited in the Iron Range school consolidation and 68.25cooperatively operated school account that is hereby created: 68.26(1) ten cents per taxable ton of the tax imposed under section 298.24; 68.27(2) the amount as determined under section 298.17, paragraph (b), clause (3); and 68.28(3) for distributions in 2015 through 2017, an amount equal to two-thirds of the 68.29increased tax proceeds attributable to the increase in the implicit price deflator as provided 68.30in section 298.24, subdivision 1 new text begin ; and new text end 68.31 new text begin (4) any other amount as provided by law new text end . 68.32Expenditures from this account shall be made only to provide disbursements to 68.33assist school districts with the payment of bonds that were issued for qualified school 68.34projects, or for any other new text begin school new text end disbursement as approved by the Iron Range Resources 68.35and Rehabilitation Board. For purposes of this section, "qualified school projects" means 69.1school projects within the taconite assistance area as defined in section 273.1341, that were 69.2(1) approved, by referendum, after December 7, 2009 new text begin April 3, 2006 new text end ; and (2) approved by 69.3the commissioner of education pursuant to section 123B.71. 69.4No expenditure under this section shall be made unless approved by seven members 69.5of the Iron Range Resources and Rehabilitation Board. 69.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for production year 2014 and new text end 69.7 new text begin thereafter. new text end 69.8    Sec. 4. Minnesota Statutes 2012, section 298.75, subdivision 2, is amended to read: 69.9    Subd. 2. Tax imposed. (a) Except as provided in paragraph (e), a county that 69.10imposes the aggregate production tax shall impose upon every operator a production tax 69.11of 21.5 cents per cubic yard or 15 cents per ton of aggregate material excavated in the 69.12county except that the county board may decide not to impose this tax if it determines 69.13that in the previous year operators removed less than 20,000 tons or 14,000 cubic yards of 69.14aggregate material from that county. The tax shall not be imposed on aggregate material 69.15excavated in the county until the aggregate material is transported from the extraction site 69.16or sold, whichever occurs first. When aggregate material is stored in a stockpile within the 69.17state of Minnesota and a public highway, road or street is not used for transporting the 69.18aggregate material, the tax shall not be imposed until either when the aggregate material 69.19is sold, or when it is transported from the stockpile site, or when it is used from the 69.20stockpile, whichever occurs first. 69.21    (b) Except as provided in paragraph (e), a county that imposes the aggregate 69.22production tax under paragraph (a) shall impose upon every importer a production tax 69.23of 21.5 cents per cubic yard or 15 cents per ton of aggregate material imported into the 69.24county. The tax shall be imposed when the aggregate material is imported from the 69.25extraction site or sold. When imported aggregate material is stored in a stockpile within 69.26the state of Minnesota and a public highway, road, or street is not used for transporting 69.27the aggregate material, the tax shall be imposed either when the aggregate material is 69.28sold, when it is transported from the stockpile site, or when it is used from the stockpile, 69.29whichever occurs first. The tax shall be imposed on an importer when the aggregate 69.30material is imported into the county that imposes the tax. 69.31    (c) If the aggregate material is transported directly from the extraction site to a 69.32waterway, railway, or another mode of transportation other than a highway, road or street, 69.33the tax imposed by this section shall be apportioned equally between the county where the 69.34aggregate material is extracted and the county to which the aggregate material is originally 70.1transported. If that destination is not located in Minnesota, then the county where the 70.2aggregate material was extracted shall receive all of the proceeds of the tax. 70.3    (d) A county, city, or town that receives revenue under this section is prohibited 70.4from imposing any additional host community fees on aggregate production within that 70.5county, city, or town. 70.6(e) A county that borders two other states and that is not contiguous to a county 70.7that imposes a tax under this section may impose the taxes under paragraphs (a) and (b) 70.8at the rate of ten cents per cubic yard or seven cents per ton. This paragraph expires 70.9December 31, 2014 new text begin 2019 new text end . 70.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 70.11    Sec. 5. Laws 2008, chapter 366, article 10, section 15, is amended to read: 70.12    Sec. 15. 2008 DISTRIBUTIONS ONLY. 70.13    For distribution in 2008 only, a special fund is established to receive 11.4 cents per ton 70.14that otherwise would be allocated under Minnesota Statutes, section 298.28, subdivision 6. 70.15If sufficient funds are not available under Minnesota Statutes, section 298.28, subdivision 70.166 , to make the payments required under this section and under Minnesota Statutes, section 70.17298.28, subdivision 6 , the remaining amount needed to total 11.4 cents per ton may be 70.18taken from funds available under Minnesota Statutes, section 298.28, subdivision 9. If 70.192008 H.F. No. 1812 is enacted and includes a provision that distributes funds that would 70.20otherwise be allocated under Minnesota Statutes, section 298.28, subdivision 6, in a 70.21manner different from the distribution required in this section, the distribution in this 70.22section supersedes the distribution set in 2008 H.F. No. 1812 notwithstanding Minnesota 70.23Statutes, section 645.26. The following amounts are allocated to St. Louis County acting 70.24as the fiscal agent for the recipients for the following specified purposes: 70.25    (1) two cents per ton must be paid to the Hibbing Economic Development Authority 70.26to retire bonds and for economic development purposes; 70.27    (2) one cent per ton must be divided among and paid in equal shares to each of the 70.28board of St. Louis County School District No. 2142, the board of Ely School District No. 70.29696, the board of Mountain Iron-Buhl School District No. 712, and the board of Virginia 70.30School District No. 706 for each to study the potential for and impact of consolidation 70.31and streamlining the operations of their school districts; 70.32    (3) 0.25 cent per ton must be paid to the city of Grand Rapids, for industrial park work; 70.33    (4) 0.65 cent per ton must be paid to the city of Aitkin, for sewer and water for 70.34housing new text begin economic development new text end projects; 71.1    (5) 0.5 cent per ton must be paid to the city of Crosby, for well and water tower 71.2infrastructure; 71.3    (6) 0.5 cent per ton must be paid to the city of Two Harbors, for well and water 71.4tower infrastructure; 71.5    (7) 1.5 cents per ton must be paid to the city of Silver Bay to pay for health and 71.6safety and maintenance improvements at a former elementary school building that is 71.7currently owned by the city, to be used for economic development purposes; 71.8    (8) 1.5 cents per ton must be paid to St. Louis County to extend water and sewer 71.9lines from the city of Chisholm to the St. Louis County fairgrounds; 71.10    (9) 1.5 cents per ton must be paid to the White Community Hospital for debt 71.11restructuring; 71.12    (10) 0.5 cent per ton must be paid to the city of Keewatin for street, sewer, and 71.13water improvements; 71.14    (11) 0.5 cent per ton must be paid to the city of Calumet for street, sewer, and water 71.15improvements; and 71.16    (12) one cent per ton must be paid to Breitung township for sewer and water 71.17extensions associated with the development of a state park, provided that if a new state 71.18park is not established in Breitung township by July 1, 2009, the money provided in 71.19this clause must be transferred to the northeast Minnesota economic development fund 71.20established in Minnesota Statutes, section 298.2213. 71.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 71.22 new text begin Upon enactment, the city of Aitkin must release all funds under this section to St. Louis new text end 71.23 new text begin County acting as fiscal agent by July 1, 2014. new text end 71.24    Sec. 6. Laws 2013, chapter 143, article 11, section 10, is amended to read: 71.25    Sec. 10. 2013 DISTRIBUTION ONLY. 71.26For the 2013 distribution, a special fund is established to receive 38.7 cents per ton of 71.27any excess of the balance remaining after distribution of amounts required under Minnesota 71.28Statutes, section 298.28, subdivision 6. The following amounts are allocated to St. Louis 71.29County acting as the fiscal agent for the recipients for the following specific purposes: 71.30(1) 5.1 cents per ton to the city of Hibbing for improvements to the city's water 71.31supply system; 71.32(2) 4.3 cents per ton to the city of Mountain Iron for the cost of moving utilities 71.33required as a result of actions undertaken by United States Steel Corporation; 71.34(3) 2.5 cents per ton to the city of Biwabik for improvements to the city's water supply 71.35system, payable upon agreement with ArcelorMittal to satisfy water permit conditions; 72.1(4) 2 cents per ton to the city of Tower for the Tower Marina; 72.2(5) 2.4 cents per ton to the city of Grand Rapids for an eco-friendly heat transfer 72.3system to replace aging effluent lines and for parking lot repaving; 72.4(6) 2.4 cents per ton to the city of Two Harbors for wastewater treatment plant 72.5improvements; 72.6(7) 0.9 cents per ton to the city of Ely for the sanitary sewer replacement project; 72.7(8) 0.6 cents per ton to the town of Crystal Bay for debt service of the Claire Nelson 72.8Intermodal Transportation Center; 72.9(9) 0.5 cents per ton to the Greenway Joint Recreation Board for the Coleraine 72.10hockey arena renovations; 72.11(10) 1.2 cents per ton for the West Range Regional Fire Hall and Training Center 72.12to merge the existing fire services of Coleraine, Bovey, Taconite Marble, Calumet, and 72.13Greenway Township; 72.14(11) 2.5 cents per ton to the city of Hibbing for the Memorial Building; 72.15(12) 0.7 cents per ton to the city of Chisholm for public works infrastructure; 72.16(13) 1.8 cents per ton to the Crane Lake Water and Sanitary District for sanitary 72.17sewer extension; 72.18(14) 2.5 cents per ton for the city of Buhl for the roof on the Mesabi Academy; 72.19(15) 1.2 cents per ton to the city of Gilbert for the New Jersey/Ohio Avenue project; 72.20(16) 1.5 new text begin 2.0 new text end cents per ton to the city of Cook for street improvements, business park 72.21infrastructure, and a maintenance garage; 72.22(17) 0.5 cents per ton to the city of Cook for a water line project; 72.23(18) new text begin (17) new text end 1.8 cents per ton to the city of Eveleth to be used for Jones Street 72.24reconstruction and the city auditorium; 72.25(19) new text begin (18) new text end 0.5 cents new text begin per ton new text end for the city of Keewatin for an electrical substation and 72.26water line replacements; 72.27(20) new text begin (19) new text end 3.3 cents new text begin per ton new text end for the city of Virginia for Fourth Street North 72.28infrastructure and Franklin Park improvement; and 72.29(21) new text begin (20) new text end 0.5 cents per ton to the city of Grand Rapids for an economic development 72.30project. 72.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 72.32    Sec. 7. new text begin REALLOCATION OF BOND PAYMENTS. new text end 72.33 new text begin In each year subsequent to the year in which the following appropriations terminate new text end 72.34 new text begin under their terms, an amount equal to the amount payable in 2013 based upon 2012 new text end 72.35 new text begin production of the terminating appropriation is appropriated from the same sources listed new text end 73.1 new text begin in this section to the Iron Range school consolidation and cooperatively operated school new text end 73.2 new text begin account under Laws 2014, chapter 150, article 6, section 13: new text end 73.3 new text begin (1) Laws 1996, chapter 412, article 5, section 21, subdivision 3, appropriation for new text end 73.4 new text begin bonds of Independent School District No. 166, Cook County; new text end 73.5 new text begin (2) Laws 1996, chapter 412, article 5, section 20, subdivision 2, appropriation for new text end 73.6 new text begin bonds of Independent School District No. 696, Ely; new text end 73.7 new text begin (3) Laws 1996, chapter 412, article 5, section 20, subdivision 2, appropriation for new text end 73.8 new text begin bonds of Independent School District No. 706, Virginia: new text end 73.9 new text begin (4) Laws 1996, chapter 412, article 5, section 20, subdivision 2, appropriation for new text end 73.10 new text begin bonds of Independent School District No. 2154, Eveleth-Gilbert; new text end 73.11 new text begin (5) Laws 1998, chapter 398, article 4, section 17, subdivision 2, appropriation for new text end 73.12 new text begin bonds of Independent School District No. 712, Mountain Iron-Buhl; new text end 73.13 new text begin (6) Laws 2000, chapter 489, article 5, section 24, subdivision 1, appropriation for new text end 73.14 new text begin bonds of Independent School District No. 695, Chisholm; new text end 73.15 new text begin (7) Laws 2000, chapter 489, article 5, section 25, subdivision 1, appropriation for new text end 73.16 new text begin bonds of Independent School District No. 316, Greenway-Coleraine; new text end 73.17 new text begin (8) Laws 2000, chapter 489, article 5, section 26, subdivision 1, appropriation for new text end 73.18 new text begin bonds of Independent School District No. 381, Lake Superior; and new text end 73.19 new text begin (9) Laws 2008, chapter 154, article 8, section 18, appropriation for bonds of new text end 73.20 new text begin Independent School District No. 2711, Mesabi East. new text end 73.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with the distribution new text end 73.22 new text begin in 2015. new text end 73.23ARTICLE 5 73.24LOCAL DEVELOPMENT 73.25    Section 1. Minnesota Statutes 2012, section 469.1763, subdivision 3, is amended to read: 73.26    Subd. 3. Five-year rule. (a) Revenues derived from tax increments are considered 73.27to have been expended on an activity within the district under subdivision 2 only if one 73.28of the following occurs: 73.29(1) before or within five years after certification of the district, the revenues are 73.30actually paid to a third party with respect to the activity; 73.31(2) bonds, the proceeds of which must be used to finance the activity, are issued and 73.32sold to a third party before or within five years after certification, the revenues are spent 73.33to repay the bonds, and the proceeds of the bonds either are, on the date of issuance, 73.34reasonably expected to be spent before the end of the later of (i) the five-year period, or 74.1(ii) a reasonable temporary period within the meaning of the use of that term under section 74.2148(c)(1) of the Internal Revenue Code, or are deposited in a reasonably required reserve 74.3or replacement fund; 74.4(3) binding contracts with a third party are entered into for performance of the 74.5activity before or within five years after certification of the district and the revenues are 74.6spent under the contractual obligation; 74.7(4) costs with respect to the activity are paid before or within five years after 74.8certification of the district and the revenues are spent to reimburse a party for payment 74.9of the costs, including interest on unreimbursed costs; or 74.10(5) expenditures are made for housing purposes as permitted by subdivision 2, 74.11paragraphs (b) and (d), or for public infrastructure purposes within a zone as permitted 74.12by subdivision 2, paragraph (e). 74.13(b) For purposes of this subdivision, bonds include subsequent refunding bonds if 74.14the original refunded bonds meet the requirements of paragraph (a), clause (2). 74.15(c) For a redevelopment district or a renewal and renovation district certified after 74.16June 30, 2003, and before April 20, 2009, the five-year periods described in paragraph (a) 74.17are extended to ten years after certification of the district. new text begin For a redevelopment district new text end 74.18 new text begin certified after April 20, 2009, and before June 30, 2013, the five-year periods described in new text end 74.19 new text begin paragraph (a) are extended to eight years after certification of the district. new text end This extension is 74.20provided primarily to accommodate delays in development activities due to unanticipated 74.21economic circumstances. 74.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for districts for which the request for new text end 74.23 new text begin certification was made after April 20, 2009. new text end 74.24    Sec. 2. Laws 2013, chapter 143, article 9, section 23, is amended to read: 74.25    Sec. 23. CITY OF BLOOMINGTON; OLD CEDAR AVENUE BRIDGE. 74.26    (a) Notwithstanding any law to the contrary, the city of Bloomington shall transfer 74.27from the tax increment financing accounts for its Tax Increment Financing District No. 74.281-C and Tax Increment Financing District No. 1-G an amount equal to the tax increment 74.29for each district that is computed under the provisions of Minnesota Statutes, section 74.30473F.08, subdivision 3c , for taxes payable in 2014 to an account or fund established for 74.31the repair, restoration, or replacement of the Old Cedar Avenue bridge for use by bicycle 74.32commuters and recreational users. The city is authorized to and must use the transferred 74.33funds to complete the repair, renovation, or replacement of the bridge. new text begin Upon completion new text end 74.34 new text begin of the repair, renovation, or replacement of the bridge, the city may use any remaining new text end 75.1 new text begin funds in the account for costs of improving bicycle and pedestrian trails that access the new text end 75.2 new text begin bridge and that use is deemed to be a permitted use of the increments. new text end 75.3    (b) No signs, plaques, or markers acknowledging or crediting donations for, 75.4sponsorships of, or naming rights may be posted on or in the vicinity of the Old Cedar 75.5Avenue bridge. 75.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective without local approval under new text end 75.7 new text begin Minnesota Statutes, section 645.023, subdivision 1, paragraph (a). new text end 75.8    Sec. 3. new text begin CITY OF BAXTER; TAX INCREMENT FINANCING DISTRICT; new text end 75.9 new text begin PROJECT REQUIREMENT. new text end 75.10     new text begin Subdivision 1. new text end new text begin Addition of parcels to district. new text end new text begin Notwithstanding Minnesota new text end 75.11 new text begin Statutes, sections 469.174, subdivision 12; 469.176, subdivision 4c; or any other law to new text end 75.12 new text begin the contrary, the governing body of the city of Baxter may elect to expand the boundaries new text end 75.13 new text begin of Isle Drive Tax Increment Financing District to include the real property described as tax new text end 75.14 new text begin parcel number 034120010010009 in the city of Baxter, Crow Wing County, Minnesota. new text end 75.15     new text begin Subd. 2. new text end new text begin Original tax capacity of district. new text end new text begin Upon addition of the property described new text end 75.16 new text begin in subdivision 1 to the Isle Drive Tax Increment Financing District, the Crow Wing new text end 75.17 new text begin County auditor shall increase the original tax capacity of Isle Drive Tax Increment new text end 75.18 new text begin Financing District by the amount required by Minnesota Statutes, section 469.177, except new text end 75.19 new text begin as provided in subdivision 3. new text end 75.20     new text begin Subd. 3. new text end new text begin Prior planned improvements. new text end new text begin Minnesota Statutes, section 469.177, new text end 75.21 new text begin subdivision 4, does not apply to the property described in subdivision 1 added to the Isle new text end 75.22 new text begin Drive Tax Increment Financing District. new text end 75.23     new text begin Subd. 4. new text end new text begin Use of increments. new text end new text begin Tax increments and other revenues derived from any new text end 75.24 new text begin portion of Isle Drive Tax Increment Financing District, as expanded under this section, new text end 75.25 new text begin may be used to reimburse or otherwise pay for allowable expenditures under the plan new text end 75.26 new text begin budget for Isle Drive Tax Increment Financing District, as amended in accordance with new text end 75.27 new text begin Minnesota Statutes, section 469.175, subdivision 4. new text end 75.28     new text begin Subd. 5. new text end new text begin Approval and effect of modification. new text end new text begin If the governing body of the new text end 75.29 new text begin city elects to exercise the authority provided in subdivision 1 to modify the district, the new text end 75.30 new text begin following conditions apply: new text end 75.31 new text begin (1) the city must comply with Minnesota Statutes, section 469.175, subdivision 4; and new text end 75.32 new text begin (2) beginning with the subsequent calendar year, except as otherwise provided new text end 75.33 new text begin in this section, the district is subject to the provisions of Minnesota Statutes, sections new text end 75.34 new text begin 469.174 to 469.1794, as if the request for certification of the entire district was made on new text end 76.1 new text begin December 30, 2011, the date the original request for certification for the Isle Drive Tax new text end 76.2 new text begin Increment Financing District was made. new text end 76.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon approval by the governing body new text end 76.4 new text begin of the city of Baxter and upon compliance by the city with Minnesota Statutes, section new text end 76.5 new text begin 645.021, subdivisions 2 and 3. new text end 76.6    Sec. 4. new text begin CITY OF EAGAN; TAX INCREMENT FINANCING. new text end 76.7 new text begin Notwithstanding the provisions of Minnesota Statutes, section 469.176, subdivision new text end 76.8 new text begin 1b, or any other law to the contrary, the city of Eagan may collect tax increment from the new text end 76.9 new text begin Cedar Grove Tax Increment Financing District through December 31, 2039. new text end 76.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon compliance by the governing new text end 76.11 new text begin bodies of the city of Eagan, Dakota County, and Independent School District No. 191 with new text end 76.12 new text begin the requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and 645.021, new text end 76.13 new text begin subdivision 3. new text end 76.14    Sec. 5. new text begin CITY OF EDINA; TAX INCREMENT FINANCING. new text end 76.15     new text begin Subdivision 1. new text end new text begin Authority to create districts. new text end new text begin (a) The governing body of the city of new text end 76.16 new text begin Edina or its development authority may establish one or more tax increment financing new text end 76.17 new text begin housing districts in the Southeast Edina Redevelopment Project Area, as the boundaries new text end 76.18 new text begin exist on March 31, 2014. new text end 76.19 new text begin (b) The authority to request certification of districts under this authority expires new text end 76.20 new text begin on June 30, 2017. new text end 76.21     new text begin Subd. 2. new text end new text begin Rules governing districts. new text end new text begin (a) Housing districts established under this new text end 76.22 new text begin section are subject to the provisions of Minnesota Statutes, sections 469.174 to 469.1794, new text end 76.23 new text begin except as otherwise provided in this subdivision. new text end 76.24 new text begin (b) Notwithstanding the provisions of Minnesota Statutes, section 469.176, new text end 76.25 new text begin subdivision 1b, no increment must be paid to the authority after 20 years after receipt by new text end 76.26 new text begin the authority of the first increment from a district established under this section. new text end 76.27 new text begin (c) Notwithstanding the provisions of Minnesota Statutes, section 469.1761, new text end 76.28 new text begin subdivision 3, for a residential rental project the city may elect to substitute "20 percent" new text end 76.29 new text begin for "40 percent" in the 40-60 test under section 142(d)(1)(B) of the Internal Revenue Code new text end 76.30 new text begin in determining the applicable income limits. new text end 76.31     new text begin Subd. 3. new text end new text begin Pooling authority. new text end new text begin The city may elect, in the tax increment financing new text end 76.32 new text begin plan for the district, to increase by up to 15 percentage points the permitted amount of new text end 76.33 new text begin expenditures for activities located outside the geographic area of the district. new text end 77.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon compliance by the governing new text end 77.2 new text begin body of the city of Edina with the requirements of Minnesota Statutes, section 645.021, new text end 77.3 new text begin subdivisions 2 and 3. new text end 77.4    Sec. 6. new text begin CITY OF MAPLE GROVE; TAX INCREMENT FINANCING DISTRICT. new text end 77.5     new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin (a) For the purposes of this section, the following terms new text end 77.6 new text begin have the meanings given to them. new text end 77.7 new text begin (b) "City" means the city of Maple Grove. new text end 77.8 new text begin (c) "Project area" means the area in the city commencing at a point 130 feet East and new text end 77.9 new text begin 120 feet North of the southwest corner of the Southeast Quarter of Section 23, Township new text end 77.10 new text begin 119, Range 22, Hennepin County, said point being on the easterly right-of-way line of new text end 77.11 new text begin Hemlock Lane; thence northerly along said easterly right-of-way line of Hemlock Lane new text end 77.12 new text begin a distance of 900 feet; thence easterly to the east line of Section 23, 1,030 feet North new text end 77.13 new text begin from the southeast corner thereof; thence South 74 degrees East 1,285 feet; thence East new text end 77.14 new text begin a distance of 1,000 feet; thence North 59 degrees West a distance of 650 feet; thence new text end 77.15 new text begin northerly to a point on the northerly right-of-way line of 81st Avenue North, 650 feet new text end 77.16 new text begin westerly measured at right angles, from the east line of the Northwest Quarter of Section new text end 77.17 new text begin 24; thence North 13 degrees West a distance of 795 feet; thence West to the west line of new text end 77.18 new text begin the Southeast Quarter of the Northwest Quarter of Section 24; thence North 55 degrees new text end 77.19 new text begin West to the south line of the Northwest Quarter of the Northwest Quarter of Section 24; new text end 77.20 new text begin thence West along said south line to the east right-of-way line of Zachary Lane; thence new text end 77.21 new text begin North along the east right-of-way line of Zachary Lane to the southwest corner of Lot 1, new text end 77.22 new text begin Block 1, Metropolitan Industrial Park 5th Addition; thence East along the south line of new text end 77.23 new text begin said Lot 1 to the northeast corner of Outlot A, Metropolitan Industrial Park 5th Addition; new text end 77.24 new text begin thence South along the east line of said Outlot A and its southerly extension to the south new text end 77.25 new text begin right-of-way line of County State-Aid Highway (CSAH) 109; thence easterly along the new text end 77.26 new text begin south right-of-way line of CSAH 109 to the east line of the Northwest Quarter of the new text end 77.27 new text begin Northeast Quarter of Section 24; thence South along said east line to the north line of the new text end 77.28 new text begin South Half of the Northeast Quarter of Section 24; thence East along said north line to new text end 77.29 new text begin the westerly right-of-way line of Jefferson Highway North; thence southerly along the new text end 77.30 new text begin westerly right-of-way line of Jefferson Highway to the centerline of CSAH 130; thence new text end 77.31 new text begin continuing South along the west right-of-way line of Pilgrim Lane North to the westerly new text end 77.32 new text begin extension of the north line of Outlot A, Park North Fourth Addition; thence easterly new text end 77.33 new text begin along the north line of Outlot A, Park North Fourth Addition to the northeast corner new text end 77.34 new text begin of said Outlot A; thence southerly along the east line of said Outlot A to the southeast new text end 77.35 new text begin corner of said Outlot A; thence easterly along the south line of Lot 1, Block 1, Park new text end 78.1 new text begin North Fourth Addition to the westerly right-of-way line of State Highway 169; thence new text end 78.2 new text begin southerly, southwesterly, westerly, and northwesterly along the westerly right-of-way new text end 78.3 new text begin line of State Highway 169 and the northerly right-of-way line of Interstate 694 to its new text end 78.4 new text begin intersection with the southerly extension of the easterly right-of-way line of Zachary Lane new text end 78.5 new text begin North; thence northerly along the easterly right-of-way line of Zachary Lane North and new text end 78.6 new text begin its northerly extension to the north right-of-way line of CSAH 130; thence westerly, new text end 78.7 new text begin southerly, northerly, southwesterly, and northwesterly to the point of beginning and there new text end 78.8 new text begin terminating, provided that the project area includes the rights-of-way for all present and new text end 78.9 new text begin future highway interchanges abutting the area described in this paragraph. new text end 78.10 new text begin (d) "Soil deficiency district" means a type of tax increment financing district new text end 78.11 new text begin consisting of a portion of the project area in which the city finds by resolution that the new text end 78.12 new text begin following conditions exist: new text end 78.13 new text begin (1) unusual terrain or soil deficiencies that occurred over 80 percent of the acreage in new text end 78.14 new text begin the district require substantial filling, grading, or other physical preparation for use; and new text end 78.15 new text begin (2) the estimated cost of the physical preparation under clause (1), but excluding new text end 78.16 new text begin costs directly related to roads as defined in Minnesota Statutes, section 160.01, and new text end 78.17 new text begin local improvements as described in Minnesota Statutes, sections 429.021, subdivision 1, new text end 78.18 new text begin clauses (1) to (7), (11), and (12), and 430.01, exceeds the fair market value of the land new text end 78.19 new text begin before completion of the preparation. new text end 78.20     new text begin Subd. 2. new text end new text begin Special rules. new text end new text begin (a) If the city elects, upon the adoption of the tax increment new text end 78.21 new text begin financing plan for a district, the rules under this section apply to a redevelopment new text end 78.22 new text begin district, renewal and renovation district, soil condition district, or soil deficiency district new text end 78.23 new text begin established by the city or a development authority of the city in the project area. new text end 78.24 new text begin (b) Prior to or upon the adoption of the first tax increment plan subject to the special new text end 78.25 new text begin rules under this subdivision, the city must find by resolution that parcels consisting new text end 78.26 new text begin of at least 80 percent of the acreage of the project area, excluding street and railroad new text end 78.27 new text begin rights-of-way, are characterized by one or more of the following conditions: new text end 78.28 new text begin (1) peat or other soils with geotechnical deficiencies that impair development of new text end 78.29 new text begin commercial buildings or infrastructure; new text end 78.30 new text begin (2) soils or terrain that requires substantial filling in order to permit the development new text end 78.31 new text begin of commercial buildings or infrastructure; new text end 78.32 new text begin (3) landfills, dumps, or similar deposits of municipal or private waste; new text end 78.33 new text begin (4) quarries or similar resource extraction sites; new text end 78.34 new text begin (5) floodway; and new text end 78.35 new text begin (6) substandard buildings, within the meaning of Minnesota Statutes, section new text end 78.36 new text begin 469.174, subdivision 10. new text end 79.1 new text begin (c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by new text end 79.2 new text begin the relevant condition if at least 70 percent of the area of the parcel contains the relevant new text end 79.3 new text begin condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by new text end 79.4 new text begin substandard buildings if substandard buildings occupy at least 30 percent of the area new text end 79.5 new text begin of the parcel. new text end 79.6 new text begin (d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision new text end 79.7 new text begin 3, is extended to ten years for any district, and Minnesota Statutes, section 469.1763, new text end 79.8 new text begin subdivision 4, does not apply to any district. new text end 79.9 new text begin (e) Notwithstanding any provision to the contrary in Minnesota Statutes, section new text end 79.10 new text begin 469.1763, subdivision 2, paragraph (a), not more than 80 percent of the total revenue new text end 79.11 new text begin derived from tax increments paid by properties in any district, measured over the life of new text end 79.12 new text begin the district, may be expended on activities outside the district but within the project area. new text end 79.13 new text begin (f) For a soil deficiency district: new text end 79.14 new text begin (1) increments may be collected through 20 years after the receipt by the authority of new text end 79.15 new text begin the first increment from the district; and new text end 79.16 new text begin (2) except as otherwise provided in this subdivision, increments may be used only to: new text end 79.17 new text begin (i) acquire parcels on which the improvements described in item (ii) will occur; new text end 79.18 new text begin (ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the new text end 79.19 new text begin additional cost of installing public improvements directly caused by the deficiencies; and new text end 79.20 new text begin (iii) pay for the administrative expenses of the authority allocable to the district. new text end 79.21 new text begin (g) Increments spent for any infrastructure costs, whether inside a district or outside new text end 79.22 new text begin a district but within the project area, are deemed to satisfy the requirements of paragraph new text end 79.23 new text begin (f) and Minnesota Statutes, section 469.176, subdivisions 4b and 4j. new text end 79.24 new text begin (h) The authority to approve tax increment financing plans to establish tax increment new text end 79.25 new text begin financing districts under this section expires December 31, 2022. new text end 79.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon compliance with Minnesota new text end 79.27 new text begin Statutes, section 645.021, subdivision 3. new text end 79.28    Sec. 7. new text begin CITY OF MOUND; TAX INCREMENT FINANCING. new text end 79.29 new text begin The requirements of Minnesota Statutes, section 469.1763, subdivision 3, that new text end 79.30 new text begin activities must be undertaken within a five-year period from the date of certification of new text end 79.31 new text begin a tax increment financing district, are considered to be met for the Mound Harbor Tax new text end 79.32 new text begin Increment Financing District administered by the Housing and Redevelopment Authority new text end 79.33 new text begin in and for the city of Mound if the activities are undertaken within 13 years from the new text end 79.34 new text begin date of certification of the district. new text end 80.1 new text begin EFFECTIVE DATE. new text end new text begin The section is effective upon compliance by the governing new text end 80.2 new text begin body of the city of Mound with the requirements of Minnesota Statutes, section 645.021, new text end 80.3 new text begin subdivisions 2 and 3. new text end 80.4    Sec. 8. new text begin CITY OF NORTH ST. PAUL; TAX INCREMENT FINANCING; new text end 80.5 new text begin PARCELS DEEMED OCCUPIED. new text end 80.6 new text begin (a) If the city of North St. Paul authorizes the creation of a redevelopment tax new text end 80.7 new text begin increment financing district under Minnesota Statutes, section 469.174, subdivision 10, new text end 80.8 new text begin parcel number 122922330059 is deemed to meet the requirements of Minnesota Statutes, new text end 80.9 new text begin section 469.174, subdivision 10, paragraph (d), notwithstanding any contrary provisions new text end 80.10 new text begin of that paragraph, if the following conditions are met: new text end 80.11 new text begin (1) buildings located on the parcel were demolished after the city of North St. Paul new text end 80.12 new text begin adopted a resolution under Minnesota Statutes, section 469.174, subdivision 10, paragraph new text end 80.13 new text begin (d), clause (3); new text end 80.14 new text begin (2) the buildings were removed either by the city of North St. Paul or by the owner new text end 80.15 new text begin of the property by entering into a development agreement; and new text end 80.16 new text begin (3) the request for certification of the parcel as part of a district is filed with the new text end 80.17 new text begin county auditor by December 31, 2017. new text end 80.18 new text begin (b) The city of North St. Paul may elect to use the current value for purposes of new text end 80.19 new text begin calculating original net tax capacity for the parcels deemed occupied under paragraph (a), new text end 80.20 new text begin notwithstanding the provisions of Minnesota Statutes, sections 469.174, subdivision 10, new text end 80.21 new text begin paragraph (d), and 469.177, subdivision 1, paragraph (f). new text end 80.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon compliance by the governing new text end 80.23 new text begin body of the city of North St. Paul with the requirements of Minnesota Statutes, section new text end 80.24 new text begin 645.021, subdivisions 2 and 3. new text end 80.25    Sec. 9. new text begin CITY OF SAVAGE; TAX INCREMENT FINANCING DISTRICT. new text end 80.26     new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin (a) For the purposes of this section, the following terms new text end 80.27 new text begin have the meanings given to them. new text end 80.28 new text begin (b) "City" means the city of Savage. new text end 80.29 new text begin (c) "Project area" means parcel numbers 26-931-023-0, 26-931-022-0, 26-931-039-0, new text end 80.30 new text begin 26-931-041-0, 26-931-018-1, 26-931-043-0, 26-931-020-0, 26-931-021-0, 26-931-035-0, new text end 80.31 new text begin 26-931-040-0, 26-931-036-0, 26-931-037-0, 26-931-038-0, 26-931-0310. new text end 80.32 new text begin (d) "Soil deficiency district" means a type of tax increment financing district new text end 80.33 new text begin consisting of a portion of the project area in which the city finds by resolution that the new text end 80.34 new text begin following conditions exist: new text end 81.1 new text begin (1) unusual terrain or soil deficiencies that occurred over 80 percent of the acreage in new text end 81.2 new text begin the district require substantial filling, grading, or other physical preparation for use; and new text end 81.3 new text begin (2) the estimated cost of the physical preparation under clause (1), but excluding new text end 81.4 new text begin costs directly related to roads as defined in Minnesota Statutes, section 160.01, and new text end 81.5 new text begin local improvements as described in Minnesota Statutes, sections 429.021, subdivision 1, new text end 81.6 new text begin clauses (1) to (7), (11), and (12), and 430.01, exceeds the fair market value of the land new text end 81.7 new text begin before completion of the preparation. new text end 81.8     new text begin Subd. 2. new text end new text begin Special rules. new text end new text begin (a) If the city elects, upon the adoption of the tax increment new text end 81.9 new text begin financing plan for a district, the rules under this section apply to a redevelopment new text end 81.10 new text begin district, renewal and renovation district, soil condition district, or soil deficiency district new text end 81.11 new text begin established by the city or a development authority of the city in the project area. new text end 81.12 new text begin (b) Prior to or upon the adoption of the first tax increment plan subject to the special new text end 81.13 new text begin rules under this subdivision, the city must find by resolution that parcels consisting new text end 81.14 new text begin of at least 80 percent of the acreage of the project area, excluding street and railroad new text end 81.15 new text begin rights-of-way, are characterized by one or more of the following conditions: new text end 81.16 new text begin (1) peat or other soils with geotechnical deficiencies that impair development of new text end 81.17 new text begin commercial buildings or infrastructure; new text end 81.18 new text begin (2) soils or terrain that requires substantial filling in order to permit the development new text end 81.19 new text begin of commercial buildings or infrastructure; new text end 81.20 new text begin (3) landfills, dumps, or similar deposits of municipal or private waste; new text end 81.21 new text begin (4) quarries or similar resource extraction sites; new text end 81.22 new text begin (5) floodway; and new text end 81.23 new text begin (6) substandard buildings, within the meaning of Minnesota Statutes, section new text end 81.24 new text begin 469.174, subdivision 10. new text end 81.25 new text begin (c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by new text end 81.26 new text begin the relevant condition if at least 70 percent of the area of the parcel contains the relevant new text end 81.27 new text begin condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by new text end 81.28 new text begin substandard buildings if substandard buildings occupy at least 30 percent of the area new text end 81.29 new text begin of the parcel. new text end 81.30 new text begin (d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision new text end 81.31 new text begin 3, is extended to ten years for any district, and Minnesota Statutes, section 469.1763, new text end 81.32 new text begin subdivision 4, does not apply to any district. new text end 81.33 new text begin (e) Notwithstanding any provision to the contrary in Minnesota Statutes, section new text end 81.34 new text begin 469.1763, subdivision 2, paragraph (a), not more than 80 percent of the total revenue new text end 81.35 new text begin derived from tax increments paid by properties in any district, measured over the life of new text end 81.36 new text begin the district, may be expended on activities outside the district but within the project area. new text end 82.1 new text begin (f) For a soil deficiency district: new text end 82.2 new text begin (1) increments may be collected through 20 years after the receipt by the authority of new text end 82.3 new text begin the first increment from the district; and new text end 82.4 new text begin (2) except as otherwise provided in this subdivision, increments may be used only to: new text end 82.5 new text begin (i) acquire parcels on which the improvements described in item (ii) will occur; new text end 82.6 new text begin (ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the new text end 82.7 new text begin additional cost of installing public improvements directly caused by the deficiencies; and new text end 82.8 new text begin (iii) pay for the administrative expenses of the authority allocable to the district. new text end 82.9 new text begin (g) Increments spent for any infrastructure costs, whether inside a district or outside new text end 82.10 new text begin a district but within the project area, are deemed to satisfy the requirements of paragraph new text end 82.11 new text begin (f) and Minnesota Statutes, section 469.176, subdivisions 4b and 4j. new text end 82.12 new text begin (h) The authority to approve tax increment financing plans to establish tax increment new text end 82.13 new text begin financing districts under this section expires December 31, 2022. new text end 82.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon compliance with Minnesota new text end 82.15 new text begin Statutes, section 645.021, subdivision 3. new text end 82.16    Sec. 10. new text begin WORKFORCE HOUSING TAX INCREMENT FINANCING PILOT new text end 82.17 new text begin PROJECT. new text end 82.18     new text begin Subdivision 1. new text end new text begin Authority to create districts. new text end new text begin (a) The governing body of a city new text end 82.19 new text begin located in either Roseau or Pennington County and has a population exceeding 1,500 new text end 82.20 new text begin may establish no more than two tax increment financing housing districts subject to the new text end 82.21 new text begin rules as provided in this section. new text end 82.22 new text begin (b) The authority to establish or approve the tax increment financing plans and new text end 82.23 new text begin request certification for districts under this section expires on June 30, 2019. new text end 82.24     new text begin Subd. 2. new text end new text begin Rules governing districts. new text end new text begin (a) Housing districts established under this new text end 82.25 new text begin section are subject to the provisions of Minnesota Statutes, sections 469.174 to 469.1794, new text end 82.26 new text begin except as otherwise provided in this subdivision. new text end 82.27 new text begin (b) Notwithstanding the provisions of Minnesota Statutes, section 469.1761, new text end 82.28 new text begin subdivision 2, for a residential rental project, the city may elect to substitute "80 percent" new text end 82.29 new text begin for both "40 percent" and "60 percent" in the 40-60 test under section 142(d)(1)(B) of the new text end 82.30 new text begin Internal Revenue Code in determining the applicable income limits. new text end 82.31 new text begin (c) Within five years from the date of certification of a tax increment financing new text end 82.32 new text begin district under this section, the governing body of the city must submit a report detailing new text end 82.33 new text begin the funding mechanisms, in addition to the use of the tax increment, that are being used new text end 82.34 new text begin to fund the projects as outlined in the tax increment financing plan. The report must be new text end 83.1 new text begin submitted to the committees of the house of representatives and senate having jurisdiction new text end 83.2 new text begin over taxes and economic development. new text end 83.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for districts for which the request for new text end 83.4 new text begin certification is made after June 30, 2014. new text end 83.5ARTICLE 6 83.6MISCELLANEOUS 83.7    Section 1. Minnesota Statutes 2013 Supplement, section 116V.03, is amended to read: 83.8116V.03 APPROPRIATION. 83.9$1,000,000 in fiscal year 2014 and each year thereafter is appropriated from the 83.10general fund to the commissioner of revenue for transfer to the agricultural project 83.11utilization account in the special revenue fund for the Agricultural Utilization Research 83.12Institute established under section 116V.01. 83.13    Sec. 2. new text begin [168A.125] TRANSFER-ON-DEATH OF TITLE TO MOTOR VEHICLE. new text end 83.14     new text begin Subdivision 1. new text end new text begin Titled as transfer-on-death. new text end new text begin A motor vehicle may be titled in new text end 83.15 new text begin transfer-on-death or TOD form by a natural person by including in the certificate of title a new text end 83.16 new text begin designation of a beneficiary or beneficiaries who are natural persons to whom the motor new text end 83.17 new text begin vehicle must be transferred on death of the owner or the last survivor of joint owners with new text end 83.18 new text begin rights of survivorship, subject to the rights of all secured parties. new text end 83.19     new text begin Subd. 2. new text end new text begin Designation of beneficiary. new text end new text begin A motor vehicle is registered in new text end 83.20 new text begin transfer-on-death form by designating on the certificate of title the name of the owner new text end 83.21 new text begin and the names of joint owners with identification of rights of survivorship, followed by new text end 83.22 new text begin the words "transfer-on-death to (name of beneficiary or beneficiaries)." The designation new text end 83.23 new text begin "TOD" may be used instead of "transfer-on-death." A title in transfer-on-death form is new text end 83.24 new text begin not required to be supported by consideration, and the certificate of title in which the new text end 83.25 new text begin designation is made is not required to be delivered to the beneficiary or beneficiaries in new text end 83.26 new text begin order for the designation to be effective. new text end 83.27     new text begin Subd. 3. new text end new text begin Interest of beneficiary. new text end new text begin The transfer-on-death beneficiary or beneficiaries new text end 83.28 new text begin shall have no interest in the motor vehicle until the death of the owner or the last survivor new text end 83.29 new text begin of the joint owners with right of survivorship. A beneficiary designation may be changed at new text end 83.30 new text begin any time by the owner or by all joint owners with rights of survivorship, without the consent new text end 83.31 new text begin of the beneficiary or beneficiaries, by filing an application for a new certificate of title. new text end 83.32     new text begin Subd. 4. new text end new text begin Vesting of ownership in beneficiary. new text end new text begin Ownership of a motor vehicle new text end 83.33 new text begin titled in transfer-on-death form shall vest in the designated beneficiary or beneficiaries on new text end 84.1 new text begin the death of the owner or the last of the joint owners with right of survivorship, subject new text end 84.2 new text begin to the rights of all secured parties, including any claim or lien by the state or county new text end 84.3 new text begin agency authorized by section 246.53, 256B.15, 256D.16, or 261.04. The transfer-on-death new text end 84.4 new text begin beneficiary or beneficiaries who survive the owner may apply for a new certificate of new text end 84.5 new text begin title to the motor vehicle upon submitting proof of the death of the owner of the motor new text end 84.6 new text begin vehicle. If no transfer-on-death beneficiary or beneficiaries survive the owner of a motor new text end 84.7 new text begin vehicle, the motor vehicle must be included in the probate estate of the deceased owner. new text end 84.8 new text begin A transfer of a motor vehicle to a transfer-on-death beneficiary or beneficiaries is not new text end 84.9 new text begin a testamentary transfer. new text end 84.10     new text begin Subd. 5. new text end new text begin Rights of creditors. new text end new text begin This section does not limit the rights of any secured new text end 84.11 new text begin party or creditor of the owner of a motor vehicle against a transfer-on-death beneficiary new text end 84.12 new text begin or beneficiaries, including any claim or lien by the state or county agency authorized by new text end 84.13 new text begin section 246.53, 256B.15, 256D.16, or 261.04, if other assets of the deceased owner's new text end 84.14 new text begin estate are insufficient to pay the amount of any such claim. new text end 84.15    Sec. 3. Minnesota Statutes 2012, section 270C.72, subdivision 1, is amended to read: 84.16    Subdivision 1. Tax clearance required. new text begin (a) new text end The state or a political subdivision of 84.17the state may not issue, transfer, or renew, and must revoke, a license for the conduct of 84.18a profession, occupation, trade, or business, if the commissioner notifies the licensing 84.19authority that the applicant owes the state delinquent taxes payable to the commissioner, 84.20penalties, or interest. The commissioner may not notify the licensing authority unless the 84.21applicant taxpayer owes $500 or more in delinquent taxes, penalties, or interest, or has 84.22not filed returns. If the applicant taxpayer does not owe delinquent taxes, penalties, or 84.23interest, but has not filed returns, the commissioner may not notify the licensing authority 84.24unless the taxpayer has been given 90 days' written notice to file the returns or show 84.25that the returns are not required to be filed. 84.26 new text begin (b) Within ten days after receipt of the notification from the commissioner under new text end 84.27 new text begin paragraph (a), the licensing authority must notify the license holder by certified mail of new text end 84.28 new text begin the potential revocation of the license for the applicable reason under paragraph (a). new text end 84.29 new text begin The notice must include a copy of the commissioner's notice to the licensing agency new text end 84.30 new text begin and information, in the form specified by the commissioner, on the licensee's option for new text end 84.31 new text begin receiving a tax clearance from the commissioner. The licensing authority must revoke the new text end 84.32 new text begin license 30 days after receiving the notice from the commissioner, unless it receives a tax new text end 84.33 new text begin clearance from the commissioner as provided in paragraph (c). new text end 84.34 new text begin (c) new text end A licensing authority that has received a notice from the commissioner may 84.35issue, transfer, renew, or not revoke the applicant's license only if (a) new text begin (1) new text end the commissioner 85.1issues a tax clearance certificate and (b) new text begin (2) new text end the commissioner or the applicant forwards a 85.2copy of the clearance to the authority. The commissioner may issue a clearance certificate 85.3only if the applicant does not owe the state any uncontested delinquent taxes, penalties, or 85.4interest and has filed all required returns. 85.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2014. new text end 85.6    Sec. 4. Minnesota Statutes 2012, section 270C.72, subdivision 3, is amended to read: 85.7    Subd. 3. Notice and hearing. (a) The commissioner, on notifying a licensing 85.8authority pursuant to subdivision 1 not to issue, transfer, or renew a license, must send a 85.9copy of the notice to the applicant. If the applicant requests, in writing, within 30 days 85.10of the date of the notice a hearing, a contested case hearing must be held. The hearing 85.11must be held within 45 days of the date the commissioner refers the case to the Office of 85.12Administrative Hearings. Notwithstanding any law to the contrary, the applicant must be 85.13served with 20 days' notice in writing specifying the time and place of the hearing and the 85.14allegations against the applicant. The notice may be served personally or by mail. 85.15(b) new text begin (a) new text end Prior to notifying a licensing authority pursuant to subdivision 1 to revoke a 85.16license, the commissioner must send a notice to the applicant of the commissioner's intent 85.17to require revocation of the license and of the applicant's right to a hearing under paragraph 85.18(a) new text begin . If the applicant requests a hearing in writing within 30 days of the date of the notice, a new text end 85.19 new text begin contested case hearing must be held. The hearing must be held within 45 days of the date new text end 85.20 new text begin the commissioner refers the case to the Office of Administrative Hearings. Notwithstanding new text end 85.21 new text begin any law to the contrary, the applicant must be served with 20 days notice in writing new text end 85.22 new text begin specifying the time and place of the hearing and the allegations against the applicant. The new text end 85.23 new text begin notice may be served personally or by mail new text end . A license is subject to revocation when 30 85.24days have passed following the date of the notice in this paragraph without the applicant 85.25requesting a hearing, or, if a hearing is timely requested, upon final determination of the 85.26hearing under section 14.62, subdivision 1. A license shall be revoked by the licensing 85.27authority within 30 days after receiving notice from the commissioner to revoke. 85.28 new text begin (b) The commissioner may notify a licensing authority under subdivision 1 only new text end 85.29 new text begin after the requirements of paragraph (a) have been satisfied. new text end 85.30(c) A hearing under this subdivision is in lieu of any other hearing or proceeding 85.31provided by law arising from any action taken under subdivision 1. 85.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2014. new text end 86.1    Sec. 5. Minnesota Statutes 2013 Supplement, section 297B.01, subdivision 16, is 86.2amended to read: 86.3    Subd. 16. Sale, sells, selling, purchase, purchased, or acquired. (a) "Sale," 86.4"sells," "selling," "purchase," "purchased," or "acquired" means any transfer of title of any 86.5motor vehicle, whether absolutely or conditionally, for a consideration in money or by 86.6exchange or barter for any purpose other than resale in the regular course of business. 86.7    (b) Any motor vehicle utilized by the owner only by leasing such vehicle to others 86.8or by holding it in an effort to so lease it, and which is put to no other use by the owner 86.9other than resale after such lease or effort to lease, shall be considered property purchased 86.10for resale. 86.11    (c) The terms also shall include any transfer of title or ownership of a motor vehicle 86.12by other means, for or without consideration, except that these terms shall not include: 86.13    (1) the acquisition of a motor vehicle by inheritance from or by bequest of new text begin , or new text end 86.14 new text begin transfer-on-death of title by new text end , a decedent who owned it; 86.15    (2) the transfer of a motor vehicle which was previously licensed in the names of 86.16two or more joint tenants and subsequently transferred without monetary consideration to 86.17one or more of the joint tenants; 86.18    (3) the transfer of a motor vehicle by way of gift from a limited used vehicle dealer 86.19licensed under section 168.27, subdivision 4a, to an individual, when the transfer is with 86.20no monetary or other consideration or expectation of consideration and the parties to the 86.21transfer submit an affidavit to that effect at the time the title transfer is recorded; 86.22    (4) the transfer of a motor vehicle by gift between: 86.23(i) spouses; 86.24(ii) parents and a child; or 86.25(iii) grandparents and a grandchild; 86.26(5) the voluntary or involuntary transfer of a motor vehicle between a husband and 86.27wife in a divorce proceeding; or 86.28    (6) the transfer of a motor vehicle by way of a gift to an organization that is exempt 86.29from federal income taxation under section 501(c)(3) of the Internal Revenue Code when 86.30the motor vehicle will be used exclusively for religious, charitable, or educational purposes. 86.31ARTICLE 7 86.32UNSESSION 86.33    Section 1. Minnesota Statutes 2012, section 16D.02, subdivision 3, is amended to read: 86.34    Subd. 3. Debt. "Debt" means an amount owed to the state directly, or through a 86.35state agency, on account of a fee, duty, lease, direct loan, loan insured or guaranteed by 87.1the state, rent, service, sale of real or personal property, overpayment, fine, assessment, 87.2penalty, restitution, damages, interest, tax, bail bond, forfeiture, reimbursement, liability 87.3owed, an assignment to the state including assignments under section 256.741, the Social 87.4Security Act, or other state or federal law, recovery of costs incurred by the state, or any 87.5other source of indebtedness to the state. Debt also includes amounts owed to individuals 87.6as a result of civil, criminal, or administrative action brought by the state or a state agency 87.7pursuant to its statutory authority or for which the state or state agency acts in a fiduciary 87.8capacity in providing collection services in accordance with the regulations adopted under 87.9the Social Security Act at Code of Federal Regulations, title 45, section 302.33. When 87.10the commissioner provides collection services pursuant to a debt qualification plan new text begin to a new text end 87.11 new text begin referring agency new text end , debt also includes an amount owed to the courts, local government 87.12units, Minnesota state colleges and universities governed by the Board of Trustees of the 87.13Minnesota State Colleges and Universities, or University of Minnesota. 87.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 87.15    Sec. 2. Minnesota Statutes 2012, section 16D.02, subdivision 6, is amended to read: 87.16    Subd. 6. Referring agency. "Referring agency" means a state agency, local 87.17government unit, Minnesota state colleges and universities governed by the Board of 87.18Trustees of the Minnesota State Colleges and Universities, University of Minnesota, or a 87.19court, that has entered into a debt qualification plan new text begin an agreement new text end with the commissioner 87.20to refer debts to the commissioner for collection. 87.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 87.22    Sec. 3. Minnesota Statutes 2012, section 16D.04, subdivision 3, is amended to read: 87.23    Subd. 3. Services. The commissioner shall provide collection services for a state 87.24agency, and may provide for collection services for a court, in accordance with the terms and 87.25conditions of a signed debt qualification plan new text begin referring agencies other than state agencies new text end . 87.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 87.27    Sec. 4. Minnesota Statutes 2012, section 16D.04, subdivision 4, is amended to read: 87.28    Subd. 4. Authority to contract. The commissioners new text begin commissioner new text end of revenue and 87.29management and budget may contract with credit bureaus, private collection agencies, and 87.30other entities as necessary for the collection of debts. A private collection agency acting 87.31under a contract with the commissioner of revenue or management and budget is subject 87.32to sections 332.31 to 332.45, except that the private collection agency may indicate that it 88.1is acting under a contract with the state. The commissioner may not delegate the powers 88.2provided under section 16D.08 to any nongovernmental entity. 88.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 88.4    Sec. 5. Minnesota Statutes 2012, section 16D.07, is amended to read: 88.516D.07 NOTICE TO DEBTOR. 88.6The referring agency shall send notice to the debtor by United States mail or 88.7personal delivery at the debtor's last known address at least 20 days before the debt is 88.8referred to the commissioner. The notice must state the nature and amount of the debt, 88.9identify to whom the debt is owed, and inform the debtor of the remedies available under 88.10this chapter. new text begin The referring agency shall advise the debtor of collection costs imposed new text end 88.11 new text begin under section 16D.11 and of the debtor's right to cancellation of collection costs under new text end 88.12 new text begin section 16D.11, subdivision 3. new text end 88.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 88.14    Sec. 6. Minnesota Statutes 2012, section 16D.11, subdivision 1, is amended to read: 88.15    Subdivision 1. Imposition. As determined by the commissioner of management and 88.16budget new text begin revenue new text end , collection costs shall be added to the debts referred to the commissioner 88.17or private collection agency for collection. Collection costs are collectible by the 88.18commissioner or private agency from the debtor at the same time and in the same 88.19manner as the referred debt. The referring agency shall advise the debtor of collection 88.20costs under this section and the debtor's right to cancellation of collection costs under 88.21subdivision 3 at the time the agency sends notice to the debtor under section . 88.22 If the commissioner or private agency collects an amount less than the total due, the 88.23payment is applied proportionally to collection costs and the underlying debt unless 88.24the commissioner of management and budget has waived this requirement for certain 88.25categories of debt pursuant to the department's internal guidelines. Collection costs 88.26collected by the commissioner under this subdivision or retained under subdivision 6 shall 88.27be deposited in the general fund as nondedicated receipts. Collection costs collected by 88.28private agencies are appropriated to the referring agency to pay the collection fees charged 88.29by the private agency. Collections of collection costs in excess of collection agency fees 88.30must be deposited in the general fund as nondedicated receipts. 88.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 89.1    Sec. 7. Minnesota Statutes 2012, section 16D.11, subdivision 3, is amended to read: 89.2    Subd. 3. Cancellation. Collection costs imposed under subdivision 1 shall be 89.3canceled and subtracted from the amount due if: 89.4(1) the debtor's household income as defined in section 290A.03, subdivision 5, 89.5excluding the exemption subtractions in subdivision 3, paragraph (3) of that section, for 89.6the 12 months preceding the date of referral is less than twice the annual federal poverty 89.7guideline under United States Code, title 42, section 9902, subsection (2); 89.8(2) within 60 days after the first contact with the debtor by the enterprise 89.9 new text begin commissioner new text end or collection agency, the debtor establishes reasonable cause for the failure 89.10to pay the debt prior to referral of the debt to the enterprise new text begin commissioner new text end ; 89.11(3) a good faith dispute as to the legitimacy or the amount of the debt is made, 89.12and payment is remitted or a payment agreement is entered into within 30 days after 89.13resolution of the dispute; 89.14(4) good faith litigation occurs and the debtor's position is substantially justified, and 89.15if the debtor does not totally prevail, the debt is paid or a payment agreement is entered 89.16into within 30 days after the judgment becomes final and nonappealable; or 89.17(5) collection costs have been added by the referring agency and are included in 89.18the amount of the referred debt. 89.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 89.20    Sec. 8. Minnesota Statutes 2012, section 16D.11, subdivision 7, is amended to read: 89.21    Subd. 7. Adjustment of rate. By June 1 of each year, the commissioner shall 89.22determine the rate of collection costs for debts referred to the enterprise new text begin commissioner new text end 89.23 during the next fiscal year. The rate is a percentage of the debts in an amount that most 89.24nearly equals the costs of the enterprise new text begin commissioner new text end necessary to process and collect 89.25referred debts under this chapter. In no event shall the rate of the collection costs exceed 89.2625 percent of the debt. Determination of the rate of collection costs under this section is 89.27not subject to the fee setting requirements of section 16A.1283. 89.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 89.29    Sec. 9. Minnesota Statutes 2012, section 84A.20, subdivision 2, is amended to read: 89.30    Subd. 2. County proposal to state. Under certain conditions, The board of county 89.31commissioners of any county may by resolution propose to the state that one or more 89.32areas in the county be taken over by the state for afforestation, reforestation, flood control 89.33projects, or other state purposes. The projects are to be managed, controlled, and used for 90.1the purposes in subdivision 1 on lands to be acquired by the state within the projects, as set 90.2forth in sections 84A.20 to 84A.30. The county board may propose this if (1) the county 90.3contains lands suitable for the purposes in subdivision 1, (2) on January 1, 1931, the taxes 90.4on more than 35 percent of the taxable land in the county are delinquent, (3) on January 1, 90.51931, the county's bonded ditch indebtedness, including accrued interest, equals or exceeds 90.6nine percent of the assessed valuation of the county, exclusive of money and credits. 90.7The area taken over must include lands that have been assessed for all or part of 90.8the cost of the establishment and construction of public drainage ditches under state law, 90.9and on which the assessments or installments are delinquent. A certified copy of the 90.10county board's resolution must be filed with the department and considered and acted 90.11upon by the department. If approved by the department, it must then be submitted to, 90.12considered, and acted upon by the executive council. If approved by the Executive 90.13Council, the proposition must be formally accepted by the governor. Acceptance must be 90.14communicated in writing to and filed with the county auditor. 90.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 90.16    Sec. 10. Minnesota Statutes 2012, section 84A.31, subdivision 2, is amended to read: 90.17    Subd. 2. County proposal to state. Under certain conditions, The board of county 90.18commissioners of any county may by resolution propose that the state take over part of the 90.19tax-delinquent lands in the county. The board may propose this if: 90.20(1) the county contains land suitable for the purposes in subdivision 1; new text begin . new text end 90.21(2) on January 1, 1933, the taxes on more than 25 percent of the acreage of the lands 90.22in a town in the county are delinquent, as shown by its tax books; 90.23(3) on January 1, 1933, the taxes or ditch assessments on more than 50 percent of the 90.24acreage of the lands to be taken over are delinquent, as shown by the county's tax books; and 90.25(4) on January 1, 1933, the bonded ditch indebtedness of the county equals or 90.26exceeds 15 percent of the assessed value of the county for 1932 as fixed by the Minnesota 90.27Tax Commission, exclusive of money and credits. 90.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 90.29    Sec. 11. Minnesota Statutes 2012, section 115B.49, subdivision 4, is amended to read: 90.30    Subd. 4. Registration; fees. (a) The owner or operator of a dry cleaning facility 90.31shall register on or before October 1 of each year with the commissioner of revenue in 90.32a manner prescribed by the commissioner of revenue and pay a registration fee for the 90.33facility. The amount of the fee is: 91.1(1) $500, for facilities with a full-time equivalence of fewer than five; 91.2(2) $1,000, for facilities with a full-time equivalence of five to ten; and 91.3(3) $1,500, for facilities with a full-time equivalence of more than ten. 91.4The registration fee must be paid on or before October 18 or the owner or operator 91.5of a dry cleaning facility may elect to pay the fee in equal installments. Installment 91.6payments must be paid on or before October 18, on or before January 18, on or before 91.7April 18, and on or before June 18. All payments made after October 18 bear interest 91.8at the rate specified in section 270C.40. 91.9(b) A person who sells dry cleaning solvents for use by dry cleaning facilities in 91.10the state shall collect and remit to the commissioner of revenue in a new text begin the same new text end manner 91.11prescribed by the commissioner of revenue, on or before the 20th day of the month 91.12following the month in which the sales of dry cleaning solvents are made new text begin for the taxes new text end 91.13 new text begin imposed under chapter 297A new text end , a fee of: 91.14(1) $3.50 for each gallon of perchloroethylene sold for use by dry cleaning facilities 91.15in the state; 91.16(2) 70 cents for each gallon of hydrocarbon-based dry cleaning solvent sold for use 91.17by dry cleaning facilities in the state; and 91.18(3) 35 cents for each gallon of other nonaqueous solvents sold for use by dry 91.19cleaning facilities in the state. 91.20(c) The audit, assessment, appeal, collection, enforcement, and administrative 91.21provisions of chapters 270C and 289A apply to the fee imposed by this subdivision. To 91.22enforce this subdivision, the commissioner of revenue may grant extensions to file returns 91.23and pay fees, impose penalties and interest on the annual registration fee under paragraph 91.24(a) and the monthly fee under paragraph (b), and abate penalties and interest in the manner 91.25provided in chapters 270C and 289A. The penalties and interest imposed on taxes under 91.26chapter 297A apply to the fees imposed under this subdivision. Disclosure of data collected 91.27by the commissioner of revenue under this subdivision is governed by chapter 270B. 91.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for fees due after June 30, 2014. new text end 91.29    Sec. 12. Minnesota Statutes 2012, section 163.06, subdivision 1, is amended to read: 91.30    Subdivision 1. Levy. The county board of any county in which there are unorganized 91.31townships may levy a tax for road and bridge purposes upon all the real and personal 91.32property in such unorganized townships, exclusive of money and credits taxed under the 91.33provisions of chapter 285. 91.34 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 92.1    Sec. 13. Minnesota Statutes 2012, section 270.11, subdivision 1, is amended to read: 92.2    Subdivision 1. To act as State Board of Equalization. The commissioner of 92.3revenue shall have and exercise all the rights, powers and authority by law vested in the 92.4State Board of Equalization, which board of equalization is hereby continued, with full 92.5power and authority to review, modify, and revise all of the acts and proceedings of the 92.6commissioner in so far as they relate to the equalization and valuation of property assessed 92.7for taxation, as prescribed by section 270.12. 92.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 92.9    Sec. 14. Minnesota Statutes 2012, section 270.12, subdivision 2, is amended to read: 92.10    Subd. 2. Meeting dates; duties. The board shall meet annually between April 15 92.11and June 30 at the office of the commissioner of revenue and examine and compare the 92.12returns of the assessment of the property in the several counties, and equalize the same so 92.13that all the taxable property in the state shall be assessed at its market value, subject to 92.14the following rules: 92.15(1) The board shall add to new text begin or deduct from new text end the aggregate valuation of the real property 92.16of every county, which the board believes to be valued below new text begin or above new text end its market value in 92.17money, such percent as will bring the same to its market value in money; 92.18(2) The board shall deduct from the aggregate valuation of the real property of every 92.19county, which the board believes to be valued above its market value in money, such 92.20percent as will reduce the same to its market value in money; 92.21(3) new text begin (2) new text end If the board believes the valuation for a part of a class determined by a range 92.22of market value under clause (8) new text begin (6) new text end or otherwise, a class, or classes of the real property of 92.23any town or district in any county, or the valuation for a part of a class, a class, or classes 92.24of the real property of any county not in towns or cities, should be raised or reduced, 92.25without raising or reducing the other real property of such county, or without raising or 92.26reducing it in the same ratio, the board may add to, or take from, the valuation of a part of 92.27a class, a class, or classes in any one or more of such towns or cities, or of the property not 92.28in towns or cities, such percent as the board believes will raise or reduce the same to its 92.29market value in money; 92.30(4) new text begin (3) new text end The board shall add to new text begin or take from new text end the aggregate valuation of any part of a 92.31class, a class, or classes of personal property of any county, town, or city, which the 92.32board believes to be valued below new text begin or above new text end the market value thereof, such percent as will 92.33raise the same to its market value in money; 92.34(5) The board shall take from the aggregate valuation of any part of a class, a class, 92.35or classes of personal property in any county, town or city, which the board believes to 93.1be valued above the market value thereof, such percent as will reduce the same to its 93.2market value in money; 93.3(6) new text begin (4) new text end The board shall not reduce the aggregate valuation of all the property of the 93.4state, as returned by the several county auditors, more than one percent on the whole 93.5valuation thereof; 93.6(7) new text begin (5) new text end When it would be of assistance in equalizing values the board may require any 93.7county auditor to furnish statements showing assessments of real and personal property 93.8of any individuals, firms, or corporations within the county. The board shall consider 93.9and equalize such assessments and may increase the assessment of individuals, firms, or 93.10corporations above the amount returned by the county board of equalization when it shall 93.11appear to be undervalued, first giving notice to such persons of the intention of the board 93.12so to do, which notice shall fix a time and place of hearing. The board shall not decrease 93.13any such assessment below the valuation placed by the county board of equalization; 93.14(8) new text begin (6) new text end In equalizing values pursuant to this section, the board shall utilize a 12-month 93.15assessment/sales ratio study conducted by the Department of Revenue containing only 93.16sales that are filed in the county auditor's office under section 272.115, by November 1 of 93.17the previous year and that occurred between October 1 of the year immediately preceding 93.18the previous year and September 30 of the previous year. 93.19The assessment/sales ratio study may separate the values of residential property 93.20into market value categories. The board may adjust the market value categories and the 93.21number of categories as necessary to create an adequate sample size for each market value 93.22category. The board may determine the adequate sample size. To the extent practicable, 93.23the methodology used in preparing the assessment/sales ratio study must be consistent 93.24with the most recent Standard on Assessment Sales Ratio Studies published by the 93.25Assessment Standards Committee of the International Association of Assessing Officers. 93.26The board may determine the geographic area used in preparing the study to accurately 93.27equalize values. A sales ratio study separating residential property into market value 93.28categories may not be used as the basis for a petition under chapter 278. 93.29The sales prices used in the study must be discounted for terms of financing. The 93.30board shall use the median ratio as the statistical measure of the level of assessment for 93.31any particular category of property; and 93.32(9) new text begin (7) new text end The board shall receive from each county the estimated market values on the 93.33assessment date falling within the study period for all parcels by magnetic tape or other new text begin a new text end 93.34 medium as prescribed by the commissioner of revenue. 93.35 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 94.1    Sec. 15. Minnesota Statutes 2012, section 270.12, subdivision 4, is amended to read: 94.2    Subd. 4. Public utility property. For purposes of equalization only, public utility 94.3personal property shall be treated as a separate class of property notwithstanding the fact 94.4that its class rate is the same as commercial-industrial property. 94.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 94.6    Sec. 16. Minnesota Statutes 2012, section 270A.03, subdivision 2, is amended to read: 94.7    Subd. 2. Claimant agency. "Claimant agency" means any state agency, as defined 94.8by section 14.02, subdivision 2, the regents of the University of Minnesota, any district 94.9court of the state, any county, any statutory or home rule charter city, including a city that 94.10is presenting a claim for a municipal hospital or a public library or a municipal ambulance 94.11service, a hospital district, a private nonprofit hospital that leases its building from the 94.12county or city in which it is located, any ambulance service licensed under chapter 144E, 94.13any public agency responsible for child support enforcement, any public agency responsible 94.14for the collection of court-ordered restitution, and any public agency established by 94.15general or special law that is responsible for the administration of a low-income housing 94.16program, and the Minnesota collection enterprise as defined in section 16D.02, subdivision 94.178 , for the purpose of collecting the costs imposed under section . 94.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 94.19    Sec. 17. Minnesota Statutes 2012, section 270B.14, subdivision 3, is amended to read: 94.20    Subd. 3. Administration of enterprise, new text begin and new text end job opportunity, and biotechnology 94.21and health sciences industry zone programs. The commissioner may disclose return 94.22information relating to the taxes imposed by chapters 290 and 297A to the Department of 94.23Employment and Economic Development or a municipality with a border city enterprise 94.24zone as defined under section 469.166, but only as necessary to administer the funding 94.25limitations under section 469.169, or to the Department of Employment and Economic 94.26Development and appropriate officials from the local government units in which a 94.27qualified business is located but only as necessary to enforce the job opportunity building 94.28zone benefits under section 469.315, or biotechnology and health sciences industry zone 94.29benefits under section . 94.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2016. new text end 95.1    Sec. 18. Minnesota Statutes 2012, section 270C.085, is amended to read: 95.2270C.085 NOTIFICATION REQUIREMENTS; SALES AND USE TAXES. 95.3The commissioner of revenue shall establish a means of electronically notifying 95.4persons holding a sales tax permit under section 297A.84 of any statutory change in 95.5chapter 297A and any issuance or change in any administrative rule, revenue notice, or 95.6sales tax fact sheet or other written information provided by the department explaining the 95.7interpretation or administration of the tax imposed under that chapter. The notification 95.8must indicate the basic subject of the statute, rule, fact sheet, or other material and provide 95.9an electronic link to the material. Any person holding a sales tax permit that provides 95.10an electronic address to the department must receive these notifications unless they 95.11specifically request electronically, or in writing, to be removed from the notification list. 95.12This requirement does not replace traditional means of notifying the general public or 95.13persons without access to electronic communications of changes in the sales tax law. The 95.14electronic notification must begin no later than December 31, 2009. 95.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 95.16    Sec. 19. Minnesota Statutes 2012, section 270C.52, subdivision 2, is amended to read: 95.17    Subd. 2. Payment agreements. (a) When any portion of any tax payable to the 95.18commissioner together with interest and penalty thereon, if any, has not been paid, the 95.19commissioner may extend the time for payment for a further period. When the authority 95.20of this section is invoked, the extension shall be evidenced by written agreement signed by 95.21the taxpayer and the commissioner, stating the amount of the tax with penalty and interest, 95.22if any, and providing for the payment of the amount in installments. 95.23(b) The agreement may contain a confession of judgment for the amount and for any 95.24unpaid portion thereof. If the agreement contains a confession of judgment, the confession 95.25of judgment must provide that the commissioner may enter judgment against the taxpayer 95.26in the district court of the county of residence as shown upon the taxpayer's tax return for 95.27the unpaid portion of the amount specified in the extension agreement. 95.28(c) The agreement shall provide that it can be terminated, after notice by the 95.29commissioner, if information provided by the taxpayer prior to the agreement was 95.30inaccurate or incomplete, collection of the tax covered by the agreement is in jeopardy, 95.31there is a subsequent change in the taxpayer's financial condition, the taxpayer has failed 95.32to make a payment due under the agreement, or the taxpayer has failed to pay any other 95.33tax or file a tax return coming due after the agreement. 96.1(d) The notice must be given at least 14 calendar days prior to termination, and shall 96.2advise the taxpayer of the right to request a reconsideration from the commissioner of 96.3whether termination is reasonable and appropriate under the circumstances. A request for 96.4reconsideration does not stay collection action beyond the 14-day notice period. If the 96.5commissioner has reason to believe that collection of the tax covered by the agreement 96.6is in jeopardy, the commissioner may proceed under section 270C.36 and terminate the 96.7agreement without regard to the 14-day period. 96.8(e) The commissioner may accept other collateral the commissioner considers 96.9appropriate to secure satisfaction of the tax liability. The principal sum specified in the 96.10agreement shall bear interest at the rate specified in section 270C.40 on all unpaid portions 96.11thereof until the same has been fully paid or the unpaid portion thereof has been entered as 96.12a judgment. The judgment shall bear interest at the rate specified in section 270C.40. 96.13(f) If it appears to the commissioner that the tax reported by the taxpayer is in excess 96.14of the amount actually owing by the taxpayer, the extension agreement or the judgment 96.15entered pursuant thereto shall be corrected. If after making the extension agreement 96.16or entering judgment with respect thereto, the commissioner determines that the tax as 96.17reported by the taxpayer is less than the amount actually due, the commissioner shall 96.18assess a further tax in accordance with the provisions of law applicable to the tax. 96.19(g) The authority granted to the commissioner by this section is in addition to any 96.20other authority granted to the commissioner by law to extend the time of payment or the 96.21time for filing a return and shall not be construed in limitation thereof. 96.22(h) The commissioner shall charge a fee for entering into payment agreements that 96.23reflects the commissioner's costs for entering into payment agreements. The fee is set at 96.24$50 and is charged for entering into a payment agreement, for entering into a new payment 96.25agreement after the taxpayer has defaulted on a prior agreement, and for entering into a 96.26new payment agreement as a result of renegotiation of the terms of an existing agreement. 96.27The fee is paid to the commissioner before the payment agreement becomes effective and 96.28does not reduce the amount of the liability. 96.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 96.30    Sec. 20. Minnesota Statutes 2012, section 272.01, subdivision 1, is amended to read: 96.31    Subdivision 1. Generally taxable. All real and personal property in this state, and 96.32all personal property of persons residing therein, including the property of corporations, 96.33banks, banking companies, and bankers, is taxable, except Indian lands and such other 96.34property as is by law exempt from taxation. 97.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 97.2    Sec. 21. Minnesota Statutes 2012, section 272.01, subdivision 3, is amended to read: 97.3    Subd. 3. Exceptions. The provisions of subdivision 2 shall not apply to: 97.4(a) Federal property for which payments are made in lieu of taxes in amounts 97.5equivalent to taxes which might otherwise be lawfully assessed; 97.6(b) Real estate exempt from ad valorem taxes and taxes in lieu thereof which is 97.7leased, loaned, or otherwise made available to telephone companies or electric, light 97.8and power companies upon which personal property consisting of transmission and 97.9distribution lines is situated and assessed pursuant to sections 273.37, 273.38, 273.40 97.10and 273.41, or upon which are situated the communication lines of express, railway, new text begin or new text end 97.11telephone or telegraph companies, or pipelines used for the transmission and distribution 97.12of petroleum products, or the equipment items of a cable communications company 97.13subject to sections 238.35 to 238.42; 97.14(c) Property presently owned by any educational institution chartered by the 97.15territorial legislature; 97.16(d) Indian lands; 97.17(e) Property of any corporation organized as a tribal corporation under the Indian 97.18Reorganization Act of June 18, 1934, (Statutes at Large, volume 48, page 984); 97.19(f) Real property owned by the state and leased pursuant to section 161.23 or 97.20161.431 , and acts amendatory thereto; 97.21(g) Real property owned by a seaway port authority on June 1, 1967, upon which 97.22there has been constructed docks, warehouses, tank farms, administrative and maintenance 97.23buildings, railroad and ship terminal facilities and other maritime and transportation 97.24facilities or those directly related thereto, together with facilities for the handling of 97.25passengers and baggage and for the handling of freight and bulk liquids, and personal 97.26property owned by a seaway port authority used or usable in connection therewith, when 97.27said property is leased to a private individual, association or corporation, but only when 97.28such lease provides that the said facilities are available to the public for the loading and 97.29unloading of passengers and their baggage and the handling, storage, care, shipment, 97.30and delivery of merchandise, freight and baggage and other maritime and transportation 97.31activities and functions directly related thereto, but not including property used for grain 97.32elevator facilities; it being the declared policy of this state that such property when 97.33so leased is public property used exclusively for a public purpose, notwithstanding the 97.34one-year limitation in the provisions of section 273.19; 98.1(h) Notwithstanding the provisions of clause (g), when the annual rental received by 98.2a seaway port authority in any calendar year for such leased property exceeds an amount 98.3reasonably required for administrative expense of the authority per year, plus promotional 98.4expense for the authority not to exceed the sum of $100,000 per year, to be expended 98.5when and in the manner decided upon by the commissioners, plus an amount sufficient to 98.6pay all installments of principal and interest due, or to become due, during such calendar 98.7year and the next succeeding year on any revenue bonds issued by the authority, plus 98.825 percent of the gross annual rental to be retained by the authority for improvement, 98.9development, or other contingencies, the authority shall make a payment in lieu of real 98.10and personal property taxes of a reasonable portion of the remaining annual rental to the 98.11county treasurer of the county in which such seaway port authority is principally located. 98.12Any such payments to the county treasurer shall be disbursed by the treasurer on the same 98.13basis as real estate taxes are divided among the various governmental units, but if such 98.14port authority shall have received funds from the state of Minnesota and funds from any 98.15city and county pursuant to Laws 1957, chapters 648, 831, and 849 and acts amendatory 98.16thereof, then such disbursement by the county treasurer shall be on the same basis as real 98.17estate taxes are divided among the various governmental units, except that the portion of 98.18such payments which would otherwise go to other taxing units shall be divided equally 98.19among the state of Minnesota and said county and city. 98.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 98.21    Sec. 22. Minnesota Statutes 2012, section 272.025, subdivision 1, is amended to read: 98.22    Subdivision 1. Statement of exemption. (a) Except in the case of property owned 98.23by the state of Minnesota or any political subdivision thereof, and property exempt from 98.24taxation under section 272.02, subdivisions 9, 10, 13, 15, 18, 20, and 22 to 25, and at the 98.25times provided in subdivision 3, a taxpayer claiming an exemption from taxation on 98.26property described in section 272.02, subdivisions 1 new text begin 2 new text end to 33, must file a statement of 98.27exemption with the assessor of the assessment district in which the property is located. 98.28(b) A taxpayer claiming an exemption from taxation on property described in section 98.29272.02, subdivision 10 , must file a statement of exemption with the commissioner of 98.30revenue, on or before February 15 of each year for which the taxpayer claims an exemption. 98.31(c) In case of sickness, absence or other disability or for good cause, the assessor 98.32or the commissioner may extend the time for filing the statement of exemption for a 98.33period not to exceed 60 days. 98.34(d) The commissioner of revenue shall prescribe the form and contents of the 98.35statement of exemption. 99.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 99.2    Sec. 23. Minnesota Statutes 2012, section 272.027, subdivision 1, is amended to read: 99.3    Subdivision 1. Electricity generated to produce goods and services. Personal 99.4property used to generate electric power is exempt from property taxation if the electric 99.5power is used to manufacture or produce goods, products, or services, other than electric 99.6power, by the owner of the electric generation plant. Except as provided in subdivisions 2 99.7and 3, The exemption does not apply to property used to produce electric power for sale 99.8to others and does not apply to real property. In determining the value subject to tax, 99.9a proportionate share of the value of the generating facilities, equal to the proportion 99.10that the power sold to others bears to the total generation of the plant, is subject to the 99.11general property tax in the same manner as other property. Power generated in such a 99.12plant and exchanged for an equivalent amount of power that is used for the manufacture or 99.13production of goods, products, or services other than electric power by the owner of the 99.14generating plant is considered to be used by the owner of the plant. 99.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 99.16    Sec. 24. Minnesota Statutes 2012, section 272.029, subdivision 6, is amended to read: 99.17    Subd. 6. Distribution of revenues. Revenues from the taxes imposed under 99.18subdivision 5 must be part of the settlement between the county treasurer and the county 99.19auditor under section 276.09. The revenue must be distributed by the county auditor or the 99.20county treasurer to local taxing jurisdictions in which the wind energy conversion system 99.21is located as follows: beginning with distributions in 2010, 80 percent to counties; and 20 99.22percent to cities and townships; and for distributions occurring in 2006 to 2009, 80 percent 99.23to counties; 14 percent to cities and townships; and six percent to school districts. 99.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 99.25    Sec. 25. Minnesota Statutes 2012, section 273.061, subdivision 6, is amended to read: 99.26    Subd. 6. Salaries; expenses. The salaries of the county assessor and assistants and 99.27clerical help, shall be fixed by the board of county commissioners and shall be payable in 99.28monthly installments out of the general revenue fund of the county. In counties with a 99.29population of less than 50,000 inhabitants, according to the then last preceding federal 99.30census, the board of county commissioners shall not fix the salary of the county assessor at 99.31an amount below the following schedule: 99.32In counties with a population of less than 6,500, $5,900; 100.1In counties with a population of 6,500 but less than 12,000, $6,200; 100.2In counties with a population of 12,000 but less than 16,000, $6,500; 100.3In counties with a population of 16,000 but less than 21,000, $6,700; 100.4In counties with a population of 21,000 but less than 30,000, $6,900; 100.5In counties with a population of 30,000 but less than 39,500, $7,100; 100.6In counties with a population of 39,500 but less than 50,000, $7,300; 100.7In counties with a population of 50,000 or more, $8,300. 100.8In addition to their salaries, the county assessor and assistants shall be allowed their 100.9expenses for reasonable and necessary travel in the performance of their duties, including 100.10necessary travel, lodging and meal expense incurred by them while attending meetings of 100.11instructions or official hearings called by the commissioner of revenue. These expenses 100.12shall be payable out of the general revenue fund of the county, and shall be allowed on the 100.13same basis as such expenses are allowed to other county officers. 100.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 100.15    Sec. 26. Minnesota Statutes 2012, section 273.10, is amended to read: 100.16273.10 SCHOOL DISTRICTS. 100.17When assessing personal property the county assessor shall designate the number of 100.18the school district in which each person assessed is liable for tax, by writing the number 100.19of the district opposite each assessment in a column provided for that purpose in the 100.20assessment book. When the personal property of any person is assessable in several 100.21school districts, the amount in each shall be assessed separately, and the name of the 100.22owner placed opposite each amount. 100.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 100.24    Sec. 27. Minnesota Statutes 2012, section 273.11, subdivision 13, is amended to read: 100.25    Subd. 13. Valuation of income-producing property. Beginning with the 1995 100.26assessment, Only accredited assessors or senior accredited assessors or other licensed 100.27assessors who have successfully completed at least two income-producing property 100.28appraisal courses may value income-producing property for ad valorem tax purposes. 100.29"Income-producing property" as used in this subdivision means the taxable property in 100.30class 3a and 3b in section 273.13, subdivision 24; class 4a and 4c, except for seasonal 100.31recreational property not used for commercial purposes; and class 5 in section 273.13, 100.32subdivision 31 . "Income-producing property" includes any property in class 4e in section 100.33273.13, subdivision 25 , that would be income-producing property under the definition in 101.1this subdivision if it were not substandard. "Income-producing property appraisal course" 101.2as used in this subdivision means a course of study of approximately 30 instructional 101.3hours, with a final comprehensive test. An assessor must successfully complete the final 101.4examination for each of the two required courses. The course must be approved by the 101.5board of assessors. 101.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 101.7    Sec. 28. Minnesota Statutes 2012, section 273.112, subdivision 6a, is amended to read: 101.8    Subd. 6a. Guidelines issued by commissioner. The commissioner of revenue shall 101.9develop and issue guidelines for qualification by private golf clubs under this section 101.10covering the access to and use of the golf course by members and other adults so as to be 101.11consistent with the purposes and terms of this section. The guidelines shall be mailed to 101.12the county attorney and assessor of each county not later than 60 days following May 26, 101.131989. Within 15 days of receipt of the guidelines from the commissioner, the assessor 101.14shall mail a copy of the guidelines to each golf club in the county. 101.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 101.16    Sec. 29. Minnesota Statutes 2013 Supplement, section 273.1325, subdivision 2, 101.17is amended to read: 101.18    Subd. 2. Methodology. In making its annual assessment/sales ratio studies, the 101.19Department of Revenue must use a methodology consistent with the most recent Standard 101.20on Assessment Ratio Studies published by the assessment standards committee of the 101.21International Association of Assessing Officers. The commissioner of revenue shall 101.22supplement this general methodology with specific procedures necessary for execution of 101.23the study in accordance with other Minnesota laws impacting the assessment/sales ratio 101.24study. The commissioner shall document these specific procedures in writing and shall 101.25publish the procedures in the State Register, but these procedures will not be considered 101.26"rules" pursuant to the Minnesota Administrative Procedure Act. When property is sold and 101.27the purchaser changes its use in a manner that would result in a change of classification of 101.28the property, the assessment sales ratio study under this subdivision must take into account 101.29that changed classification as soon as practicable. A change in status from homestead to 101.30nonhomestead or from nonhomestead to homestead is not a change under this subdivision. 101.31For purposes of this section, sections 270.12, subdivision 2, clause (8) new text begin (6) new text end , and 278.05, 101.32subdivision 4 , the commissioner of revenue shall exclude from the assessment/sales ratio 101.33study the sale of any nonagricultural property which does not contain an improvement, 102.1if (1) the statutory basis on which the property's taxable value as most recently assessed 102.2is less than market value as defined in section 273.11, or (2) the property has undergone 102.3significant physical change or a change of use since the most recent assessment. 102.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 102.5    Sec. 30. Minnesota Statutes 2012, section 273.18, is amended to read: 102.6273.18 LISTING, VALUATION, AND ASSESSMENT OF EXEMPT 102.7PROPERTY BY COUNTY AUDITORS. 102.8(a) In every sixth year after the year 1926 new text begin 2010 new text end , the county auditor shall enter, in 102.9a separate place in the real estate assessment books, the description of each tract of real 102.10property exempt by law from taxation, with the name of the owner, if known, and the 102.11assessor shall value and assess the same in the same manner that other real property is 102.12valued and assessed, and shall designate in each case the purpose for which the property is 102.13used. 102.14(b) For purposes of the apportionment of fire state aid under section 69.021, 102.15subdivision 7 , the county auditor shall include on the abstract of assessment of exempt real 102.16property filed under this section, the total number of acres of all natural resources lands for 102.17which in lieu payments are made under sections 477A.11 to 477A.14. The assessor shall 102.18estimate its market value, provided that if the assessor is not able to estimate the market 102.19value of the land on a per parcel basis, the assessor shall furnish the commissioner of 102.20revenue with an estimate of the average value per acre of this land within the county. 102.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 102.22    Sec. 31. Minnesota Statutes 2012, section 274.01, subdivision 1, is amended to read: 102.23    Subdivision 1. Ordinary board; meetings, deadlines, grievances. (a) The town 102.24board of a town, or the council or other governing body of a city, is the board of appeal 102.25and equalization except (1) in cities whose charters provide for a board of equalization or 102.26(2) in any city or town that has transferred its local board of review power and duties to 102.27the county board as provided in subdivision 3. The county assessor shall fix a day and 102.28time when the board or the board of equalization shall meet in the assessment districts 102.29of the county. Notwithstanding any law or city charter to the contrary, a city board of 102.30equalization shall be referred to as a board of appeal and equalization. On or before 102.31February 15 of each year the assessor shall give written notice of the time to the city or 102.32town clerk. Notwithstanding the provisions of any charter to the contrary, the meetings 103.1must be held between April 1 and May 31 each year. The clerk shall give published and 103.2posted notice of the meeting at least ten days before the date of the meeting. 103.3    The board shall meet at the office of the clerk to review the assessment and 103.4classification of property in the town or city. No changes in valuation or classification 103.5which are intended to correct errors in judgment by the county assessor may be made by 103.6the county assessor after the board has adjourned in those cities or towns that hold a 103.7local board of review; however, corrections of errors that are merely clerical in nature or 103.8changes that extend homestead treatment to property are permitted after adjournment until 103.9the tax extension date for that assessment year. The changes must be fully documented and 103.10maintained in the assessor's office and must be available for review by any person. A copy 103.11of the changes made during this period in those cities or towns that hold a local board of 103.12review must be sent to the county board no later than December 31 of the assessment year. 103.13    (b) The board shall determine whether the taxable property in the town or city has 103.14been properly placed on the list and properly valued by the assessor. If real or personal 103.15property has been omitted, the board shall place it on the list with its market value, and 103.16correct the assessment so that each tract or lot of real property, and each article, parcel, 103.17or class of personal property, is entered on the assessment list at its market value. No 103.18assessment of the property of any person may be raised unless the person has been 103.19duly notified of the intent of the board to do so. On application of any person feeling 103.20aggrieved, the board shall review the assessment or classification, or both, and correct 103.21it as appears just. The board may not make an individual market value adjustment or 103.22classification change that would benefit the property if the owner or other person having 103.23control over the property has refused the assessor access to inspect the property and the 103.24interior of any buildings or structures as provided in section 273.20. A board member 103.25shall not participate in any actions of the board which result in market value adjustments 103.26or classification changes to property owned by the board member, the spouse, parent, 103.27stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle, aunt, nephew, 103.28or niece of a board member, or property in which a board member has a financial interest. 103.29The relationship may be by blood or marriage. 103.30    (c) A local board may reduce assessments upon petition of the taxpayer but the total 103.31reductions must not reduce the aggregate assessment made by the county assessor by more 103.32than one percent. If the total reductions would lower the aggregate assessments made by 103.33the county assessor by more than one percent, none of the adjustments may be made. The 103.34assessor shall correct any clerical errors or double assessments discovered by the board 103.35without regard to the one percent limitation. 104.1    (d) A local board does not have authority to grant an exemption or to order property 104.2removed from the tax rolls. 104.3    (e) A majority of the members may act at the meeting, and adjourn from day to day 104.4until they finish hearing the cases presented. The assessor shall attend, with the assessment 104.5books and papers, and take part in the proceedings, but must not vote. The county assessor, 104.6or an assistant delegated by the county assessor shall attend the meetings. The board shall 104.7list separately, on a form appended to the assessment book, all omitted property added 104.8to the list by the board and all items of property increased or decreased, with the market 104.9value of each item of property, added or changed by the board, placed opposite the item. 104.10The county assessor shall enter all changes made by the board in the assessment book. 104.11    (f) Except as provided in subdivision 3, if a person fails to appear in person, by 104.12counsel, or by written communication before the board after being duly notified of the 104.13board's intent to raise the assessment of the property, or if a person feeling aggrieved by an 104.14assessment or classification fails to apply for a review of the assessment or classification, 104.15the person may not appear before the county board of appeal and equalization for a review 104.16of the assessment or classification. This paragraph does not apply if an assessment was 104.17made after the local board meeting, as provided in section 273.01, or if the person can 104.18establish not having received notice of market value at least five days before the local 104.19board meeting. 104.20    (g) The local board must complete its work and adjourn within 20 days from the 104.21time of convening stated in the notice of the clerk, unless a longer period is approved by 104.22the commissioner of revenue. No action taken after that date is valid. All complaints 104.23about an assessment or classification made after the meeting of the board must be heard 104.24and determined by the county board of equalization. A nonresident may, at any time, 104.25before the meeting of the board file written objections to an assessment or classification 104.26with the county assessor. The objections must be presented to the board at its meeting by 104.27the county assessor for its consideration. 104.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 104.29    Sec. 32. Minnesota Statutes 2012, section 274.01, subdivision 2, is amended to read: 104.30    Subd. 2. Special board; duties delegated. The governing body of a city, including 104.31a city whose charter provides for a board of equalization, may appoint a special board of 104.32review. The city may delegate to the special board of review all of the powers and duties 104.33in subdivision 1. The special board of review shall serve at the direction and discretion 104.34of the appointing body, subject to the restrictions imposed by law. The appointing body 104.35shall determine the number of members of the board, the compensation and expenses to be 105.1paid, and the term of office of each member. At least one member of the special board 105.2of review must be an appraiser, realtor, or other person familiar with property valuations 105.3in the assessment district. 105.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 105.5    Sec. 33. Minnesota Statutes 2012, section 275.08, subdivision 1a, is amended to read: 105.6    Subd. 1a. Computation of tax capacity. For taxes payable in 1989, the county 105.7auditor shall compute the gross tax capacity for each parcel according to the class rates 105.8specified in section . The gross tax capacity will be the appropriate class rate 105.9multiplied by the parcel's market value. For taxes payable in 1990 and subsequent years, 105.10 The county auditor shall compute the net tax capacity for each parcel according to the 105.11class rates specified in section 273.13. The net tax capacity will be the appropriate class 105.12rate multiplied by the parcel's market value. 105.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 105.14    Sec. 34. Minnesota Statutes 2012, section 275.08, subdivision 1d, is amended to read: 105.15    Subd. 1d. Additional adjustment. If, after computing each local government's 105.16adjusted local tax rate within a unique taxing jurisdiction pursuant to subdivision 1c, the 105.17auditor finds that the total adjusted local tax rate of all local governments combined is 105.18less than 90 percent of gross tax capacity for taxes payable in 1989 and 90 percent of net 105.19tax capacity for taxes payable in 1990 and thereafter, the auditor shall increase each local 105.20government's adjusted local tax rate proportionately so the total adjusted local tax rate of 105.21all local governments combined equals 90 percent. The total amount of the increase in 105.22tax resulting from the increased local tax rates must not exceed the amount of disparity 105.23aid allocated to the unique taxing district under section 273.1398. The auditor shall 105.24certify to the Department of Revenue the difference between the disparity aid originally 105.25allocated under section 273.1398, subdivision 3, and the amount necessary to reduce 105.26the total adjusted local tax rate of all local governments combined to 90 percent. Each 105.27local government's disparity reduction aid payment under section 273.1398, subdivision 105.286 , must be reduced accordingly. 105.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 105.30    Sec. 35. Minnesota Statutes 2013 Supplement, section 275.70, subdivision 5, is 105.31amended to read: 106.1    Subd. 5. Special levies. "Special levies" means those portions of ad valorem taxes 106.2levied by a local governmental unit for the following purposes or in the following manner: 106.3    (1) to pay the costs of the principal and interest on bonded indebtedness or to 106.4reimburse for the amount of liquor store revenues used to pay the principal and interest 106.5due on municipal liquor store bonds in the year preceding the year for which the levy 106.6limit is calculated; 106.7    (2) to pay the costs of principal and interest on certificates of indebtedness issued for 106.8any corporate purpose except for the following: 106.9    (i) tax anticipation or aid anticipation certificates of indebtedness; 106.10    (ii) certificates of indebtedness issued under sections 298.28 and 298.282; 106.11    (iii) certificates of indebtedness used to fund current expenses or to pay the costs of 106.12extraordinary expenditures that result from a public emergency; or 106.13    (iv) certificates of indebtedness used to fund an insufficiency in tax receipts or an 106.14insufficiency in other revenue sources, provided that nothing in this subdivision limits the 106.15special levy authorized under section 475.755; 106.16    (3) to provide for the bonded indebtedness portion of payments made to another 106.17political subdivision of the state of Minnesota; 106.18    (4) to fund payments made to the Minnesota State Armory Building Commission 106.19under section 193.145, subdivision 2, to retire the principal and interest on armory 106.20construction bonds; 106.21    (5) property taxes approved by voters which are levied against the referendum 106.22market value as provided under section 275.61; 106.23    (6) to fund matching requirements needed to qualify for federal or state grants or 106.24programs to the extent that either (i) the matching requirement exceeds the matching 106.25requirement in calendar year 2001, or (ii) it is a new matching requirement that did not 106.26exist prior to 2002; 106.27    (7) to pay the expenses reasonably and necessarily incurred in preparing for or 106.28repairing the effects of natural disaster including the occurrence or threat of widespread 106.29or severe damage, injury, or loss of life or property resulting from natural causes, in 106.30accordance with standards formulated by the Emergency Services Division of the state 106.31Department of Public Safety, as allowed by the commissioner of revenue under section 106.32275.74, subdivision 2 ; 106.33    (8) pay amounts required to correct an error in the levy certified to the county 106.34auditor by a city or county in a levy year, but only to the extent that when added to the 106.35preceding year's levy it is not in excess of an applicable statutory, special law or charter 107.1limitation, or the limitation imposed on the governmental subdivision by sections 275.70 107.2to 275.74 in the preceding levy year; 107.3    (9) to pay an abatement under section 469.1815; 107.4    (10) to pay any costs attributable to increases in the employer contribution rates under 107.5chapter 353, or locally administered pension plans, that are effective after June 30, 2001; 107.6    (11) to pay the operating or maintenance costs of a county jail as authorized in section 107.7641.01 or 641.262, or of a correctional facility as defined in section 241.021, subdivision 1, 107.8paragraph (f), to the extent that the county can demonstrate to the commissioner of revenue 107.9that the amount has been included in the county budget as a direct result of a rule, minimum 107.10requirement, minimum standard, or directive of the Department of Corrections, or to pay 107.11the operating or maintenance costs of a regional jail as authorized in section 641.262. For 107.12purposes of this clause, a district court order is not a rule, minimum requirement, minimum 107.13standard, or directive of the Department of Corrections. If the county utilizes this special 107.14levy, except to pay operating or maintenance costs of a new regional jail facility under 107.15sections 641.262 to 641.264 which will not replace an existing jail facility, any amount 107.16levied by the county in the previous levy year for the purposes specified under this clause 107.17and included in the county's previous year's levy limitation computed under section 107.18275.71 , shall be deducted from the levy limit base under section 275.71, subdivision 2, 107.19when determining the county's current year levy limitation. The county shall provide the 107.20necessary information to the commissioner of revenue for making this determination; 107.21    (12) to pay for operation of a lake improvement district, as authorized under section 107.22103B.555 . If the county utilizes this special levy, any amount levied by the county in the 107.23previous levy year for the purposes specified under this clause and included in the county's 107.24previous year's levy limitation computed under section 275.71 shall be deducted from 107.25the levy limit base under section 275.71, subdivision 2, when determining the county's 107.26current year levy limitation. The county shall provide the necessary information to the 107.27commissioner of revenue for making this determination; 107.28    (13) to repay a state or federal loan used to fund the direct or indirect required 107.29spending by the local government due to a state or federal transportation project or other 107.30state or federal capital project. This authority may only be used if the project is not a 107.31local government initiative; 107.32    (14) to pay for court administration costs as required under section 273.1398, 107.33subdivision 4b , less the (i) county's share of transferred fines and fees collected by the 107.34district courts in the county for calendar year 2001 and (ii) the aid amount certified to be 107.35paid to the county in 2004 under section 273.1398, subdivision 4c; however, for taxes 107.36levied to pay for these costs in the year in which the court financing is transferred to the 108.1state, the amount under this clause is limited to the amount of aid the county is certified to 108.2receive under section 273.1398, subdivision 4a; 108.3    (15) new text begin (14) new text end to fund a firefighters relief association as required under Laws 2013, 108.4chapter 111, article 5, sections 31 to 42, to the extent that the required amount exceeds the 108.5amount levied for this purpose in 2001; 108.6    (16) new text begin (15) new text end for purposes of a storm sewer improvement district under section 444.20; 108.7    (17) new text begin (16) new text end to pay for the maintenance and support of a city or county society for 108.8the prevention of cruelty to animals under section 343.11, but not to exceed in any year 108.9$4,800 or the sum of $1 per capita based on the county's or city's population as of the most 108.10recent federal census, whichever is greater. If the city or county uses this special levy, any 108.11amount levied by the city or county in the previous levy year for the purposes specified 108.12in this clause and included in the city's or county's previous year's levy limit computed 108.13under section 275.71, must be deducted from the levy limit base under section 275.71, 108.14subdivision 2 , in determining the city's or county's current year levy limit; 108.15    (18) new text begin (17) new text end for counties, to pay for the increase in their share of health and human 108.16service costs caused by reductions in federal health and human services grants effective 108.17after September 30, 2007; 108.18    (19) new text begin (18) new text end for a city, for the costs reasonably and necessarily incurred for securing, 108.19maintaining, or demolishing foreclosed or abandoned residential properties, as allowed by 108.20the commissioner of revenue under section 275.74, subdivision 2. A city must have either 108.21(i) a foreclosure rate of at least 1.4 percent in 2007, or (ii) a foreclosure rate in 2007 in 108.22the city or in a zip code area of the city that is at least 50 percent higher than the average 108.23foreclosure rate in the metropolitan area, as defined in section 473.121, subdivision 2, 108.24to use this special levy. For purposes of this paragraph, "foreclosure rate" means the 108.25number of foreclosures, as indicated by sheriff sales records, divided by the number of 108.26households in the city in 2007; 108.27    (20) for a city, for the unreimbursed costs of redeployed traffic-control agents and 108.28lost traffic citation revenue due to the collapse of the Interstate 35W bridge, as certified 108.29to the Federal Highway Administration; 108.30    (21) new text begin (19) new text end to pay costs attributable to wages and benefits for sheriff, police, and fire 108.31personnel. If a local governmental unit did not use this special levy in the previous year its 108.32levy limit base under section 275.71 shall be reduced by the amount equal to the amount it 108.33levied for the purposes specified in this clause in the previous year; 108.34    (22) new text begin (20) new text end an amount equal to any reductions in the certified aids or credit 108.35reimbursements payable under sections 477A.011 to 477A.014, and section 273.1384, 108.36due to unallotment under section 16A.152 or reductions under another provision of law. 109.1The amount of the levy allowed under this clause for each year is limited to the amount 109.2unallotted or reduced from the aids and credit reimbursements certified for payment in the 109.3year following the calendar year in which the tax levy is certified unless the unallotment 109.4or reduction amount is not known by September 1 of the levy certification year, and 109.5the local government has not adjusted its levy under section 275.065, subdivision 6, or 109.6275.07, subdivision 6 , in which case that unallotment or reduction amount may be levied 109.7in the following year; 109.8(23) new text begin (21) new text end to pay for the difference between one-half of the costs of confining sex 109.9offenders undergoing the civil commitment process and any state payments for this 109.10purpose pursuant to section 253D.12; 109.11(24) new text begin (22) new text end for a county to pay the costs of the first year of maintaining and operating 109.12a new facility or new expansion, either of which contains courts, corrections, dispatch, 109.13criminal investigation labs, or other public safety facilities and for which all or a portion 109.14of the funding for the site acquisition, building design, site preparation, construction, and 109.15related equipment was issued or authorized prior to the imposition of levy limits in 2008. 109.16The levy limit base shall then be increased by an amount equal to the new facility's first 109.17full year's operating costs as described in this clause; and 109.18(25) new text begin (23) new text end for the estimated amount of reduction to market value credit reimbursements 109.19under section 273.1384 for credits payable in the year in which the levy is payable. 109.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 109.21    Sec. 36. Minnesota Statutes 2012, section 275.74, subdivision 2, is amended to read: 109.22    Subd. 2. Authorization for special levies. (a) A local governmental unit may 109.23request authorization to levy for unreimbursed costs for natural disasters under section 109.24275.70, subdivision 5 , clause (7). The local governmental unit shall submit a request to 109.25levy under section 275.70, subdivision 5, clause (7), to the commissioner of revenue by 109.26September 30 of the levy year and the request must include information documenting the 109.27estimated unreimbursed costs. The commissioner of revenue may grant levy authority, 109.28up to the amount requested based on the documentation submitted. All decisions of the 109.29commissioner are final. 109.30    (b) A city may request authorization to levy for reasonable and necessary costs for 109.31securing, maintaining, or demolishing foreclosed or abandoned residential properties under 109.32section 275.70, subdivision 5, clause (19) new text begin (18) new text end . The local governmental unit shall submit a 109.33request to levy under section 275.70, subdivision 5, clause (19) new text begin (18) new text end , to the commissioner 109.34of revenue by September 30 of the levy year and the request must include information 109.35documenting the estimated costs. For taxes payable in 2009, the amount may include 110.1unanticipated costs incurred above the amount budgeted for these purposes in 2008. Costs 110.2of securing foreclosed or abandoned residential properties include payment for police and 110.3fire department services. The commissioner of revenue may grant levy authority, up to the 110.4lesser of (1) the amount requested based on the documentation submitted, or (2) $3,000 110.5multiplied by the number of foreclosed residential properties, as defined by sheriff sales 110.6records, in calendar year 2007. All decisions of the commissioner are final. 110.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 110.8    Sec. 37. Minnesota Statutes 2012, section 275.75, is amended to read: 110.9275.75 CHARTER EXEMPTION FOR AID LOSS. 110.10Notwithstanding any other provision of a municipal charter that limits ad valorem 110.11taxes to a lesser amount, or that would require voter approval for any increase, the 110.12governing body of a municipality may by resolution increase its levy in any year by an 110.13amount equal to its special levies under section 275.70, subdivision 5, clauses (22) and 110.14(25) new text begin (20) and (23) new text end . 110.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 110.16    Sec. 38. Minnesota Statutes 2012, section 279.03, subdivision 1, is amended to read: 110.17    Subdivision 1. Rate new text begin Interest calculation new text end . The rate of interest on delinquent 110.18property taxes levied in 1979 and prior years is fixed at six percent per year until January 110.191, 1983. Thereafter Interest is payable at the rate determined pursuant to section . 110.20The rate of interest on delinquent property taxes levied in 1980 and subsequent years is 110.21the rate determined pursuant to section . All provisions of law except section 110.22 providing for the calculation of interest at any different rate on delinquent taxes in 110.23any notice or proceeding in connection with the payment, collection, sale, or assignment 110.24of delinquent taxes, or redemption from such sale or assignment are hereby amended 110.25to correspond herewith. Section 549.09 shall continue in force new text begin applies new text end with respect to 110.26judgments arising out of petitions for review filed pursuant to chapter 278 irrespective of 110.27the levy year. 110.28For property taxes levied in 1980 and prior years, interest is to be calculated at 110.29simple interest from the second Monday in May following the year in which the taxes 110.30become due until the time that the taxes and penalties are paid, computed on the amount 110.31of unpaid taxes, penalties and costs. For property taxes levied in 1981 and subsequent 110.32years, Interest shall commence on the first day of January following the year in which the 111.1taxes become due, but the county treasurer need not calculate interest on unpaid taxes and 111.2penalties on the tax list returned to the county auditor pursuant to section 279.01. 111.3If interest is payable for a portion of a year, the interest is calculated only for the 111.4months that the taxes or penalties remain unpaid, and for this purpose a portion of a month 111.5is deemed to be a whole month. 111.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 111.7    Sec. 39. Minnesota Statutes 2012, section 279.03, subdivision 1a, is amended to read: 111.8    Subd. 1a. Rate after December 31, 1990. (a) Except as provided in paragraph (b), 111.9interest on delinquent property taxes, penalties, and costs unpaid on or after January 1, 111.101991, shall be new text begin is new text end payable at the per annum rate determined in section 270C.40, subdivision 111.115 . If the rate so determined is less than ten percent, the rate of interest shall be new text begin is new text end ten 111.12percent. The maximum per annum rate shall be new text begin is new text end 14 percent if the rate specified under 111.13section 270C.40, subdivision 5, exceeds 14 percent. The rate shall be new text begin is new text end subject to change 111.14on January 1 of each year. 111.15(b) If a person is the owner of one or more parcels of property on which taxes are 111.16delinquent, and the delinquent taxes are more than 25 percent of the prior year's school 111.17district levy, interest on the delinquent property taxes, penalties, and costs unpaid after 111.18January 1, 1992, shall be new text begin is new text end payable at twice the rate determined under paragraph (a) for 111.19the year. 111.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 111.21    Sec. 40. Minnesota Statutes 2012, section 279.16, is amended to read: 111.22279.16 JUDGMENT WHEN NO ANSWER; FORM; ENTRY. 111.23Upon the expiration of 20 days from the later of the filing of the affidavit of 111.24publication or the filing of the affidavit of mailing pursuant to section 279.131, the 111.25court administrator shall enter judgment against each and every such parcel as to which 111.26no answer has been filed, which judgment shall include all such parcels, and shall be 111.27substantially in the following form: 111.28 State of Minnesota ) District Court, 111.29 ) ss. 111.30 County of ..... ) .............. Judicial District. 111.31In the matter of the proceedings to enforce payment of the taxes on real estate 111.32remaining delinquent on the first Monday in January, ......., for the county of ...................., 111.33state of Minnesota. 112.1A list of taxes on real property, delinquent on the first Monday in January, ......., for 112.2said county of ................., having been duly filed in the office of the court administrator of 112.3this court, and the notice and list required by law having been duly published and mailed 112.4as required by law, and more than 20 days having elapsed since the last publication of the 112.5notice and list, and no answer having been filed by any person, company, or corporation 112.6to the taxes upon any of the parcels of land hereinafter described, it is hereby adjudged 112.7that each parcel of land hereinafter described is liable for taxes, penalties, and costs to the 112.8amount set opposite the same, as follows: 112.9 Description. Parcel Number. Amount. 112.10The amount of taxes, penalties, and cost to which, as hereinbefore stated, each of 112.11such parcels of land is liable, is hereby declared a lien upon such parcel of land as against 112.12the estate, right, title, interest, claim, or lien, of whatever nature, in law or equity, of every 112.13person, company, or corporation; and it is adjudged that, unless the amount to which 112.14each of such parcels is liable be paid, each of such parcels be sold, as provided by law, 112.15to satisfy the amount to which it is liable. 112.16 Dated this ............. day of ..............., ....... 112.17 112.18 112.19 ..... Court Administrator of the District Court, County of ..... 112.20The judgment shall be entered by the court administrator in a book to be kept by 112.21the court administrator, to be called the real estate tax judgment book, and signed by the 112.22court administrator. The judgment shall be written out on the left-hand pages of the book, 112.23leaving the right-hand pages blank for the entries in this chapter hereinafter provided; and 112.24 The same presumption in favor of the regularity and validity of the judgment shall be 112.25deemed to exist as in respect to judgments in civil actions in such court, except where taxes 112.26have been paid before the entry of judgment, or where the land is exempt from taxation, in 112.27which cases the judgment shall be prima facie evidence only of its regularity and validity. 112.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 112.29    Sec. 41. Minnesota Statutes 2012, section 279.23, is amended to read: 112.30279.23 COPY OF JUDGMENT TO COUNTY AUDITOR. 112.31When any real estate tax judgment is entered, the court administrator shall forthwith 112.32 deliver to the county auditor, in a book to be provided by the auditor, a certified copy of 112.33such judgment, which shall be written on the left-hand pages of the book, leaving the 112.34right-hand pages blank. 113.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 113.2    Sec. 42. Minnesota Statutes 2012, section 279.25, is amended to read: 113.3279.25 PAYMENT BEFORE JUDGMENT. 113.4Before sale any person may pay the amount adjudged against any parcel of land. 113.5If payment is made before entry of judgment, and the delinquent list has been filed with 113.6the court administrator, the county auditor shall immediately certify such payment to the 113.7court administrator, who shall note the same on such delinquent list; and all proceedings 113.8pending against such parcel shall thereupon be discontinued. If payment is made after 113.9judgment is entered and before sale, the auditor shall certify such payment to the clerk, 113.10who, upon production of such certificate and the payment of a fee of ten cents, shall enter 113.11on the right-hand page of the real estate tax judgment book, and opposite the description 113.12of such parcel, satisfaction of the judgment against the same. The auditor shall make 113.13proper records of all payments made under this section. 113.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 113.15    Sec. 43. Minnesota Statutes 2013 Supplement, section 279.37, subdivision 2, is 113.16amended to read: 113.17    Subd. 2. Installment payments. The owner of any such parcel, or any person to 113.18whom the right to pay taxes has been given by statute, mortgage, or other agreement, may 113.19make and file with the county auditor of the county in which the parcel is located a written 113.20offer to pay the current taxes each year before they become delinquent, or to contest the 113.21taxes under Minnesota Statutes 1941, sections to new text begin chapter 278 new text end , and agree 113.22to confess judgment for the amount provided, as determined by the county auditor. By 113.23filing the offer, the owner waives all irregularities in connection with the tax proceedings 113.24affecting the parcel and any defense or objection which the owner may have to the 113.25proceedings, and also waives the requirements of any notice of default in the payment of 113.26any installment or interest to become due pursuant to the composite judgment to be so 113.27entered. Unless the property is subject to subdivision 1a, with the offer, the owner shall (i) 113.28tender one-tenth of the amount of the delinquent taxes, costs, penalty, and interest, and 113.29(ii) tender all current year taxes and penalty due at the time the confession of judgment is 113.30entered. In the offer, the owner shall agree to pay the balance in nine equal installments, 113.31with interest as provided in section 279.03, payable annually on installments remaining 113.32unpaid from time to time, on or before December 31 of each year following the year in 113.33which judgment was confessed. The offer must be substantially as follows: 114.1"To the court administrator of the district court of ........... county, I, ....................., 114.2am the owner of the following described parcel of real estate located in .................... 114.3county, Minnesota: 114.4.............................. Upon that real estate there are delinquent taxes for the year ........., and 114.5prior years, as follows: (here insert year of delinquency and the total amount of delinquent 114.6taxes, costs, interest, and penalty). By signing this document I offer to confess judgment in 114.7the sum of $...... and waive all irregularities in the tax proceedings affecting these taxes and 114.8any defense or objection which I may have to them, and direct judgment to be entered for 114.9the amount stated above, minus the sum of $............, to be paid with this document, which 114.10is one-tenth or one-fifth of the amount of the taxes, costs, penalty, and interest stated above. 114.11I agree to pay the balance of the judgment in nine or four equal, annual installments, with 114.12interest as provided in section 279.03, payable annually, on the installments remaining 114.13unpaid. I agree to pay the installments and interest on or before December 31 of each year 114.14following the year in which this judgment is confessed and current taxes each year before 114.15they become delinquent, or within 30 days after the entry of final judgment in proceedings 114.16to contest the taxes under Minnesota Statutes, sections to new text begin chapter 278 new text end . 114.17Dated .............., ......." 114.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 114.19    Sec. 44. Minnesota Statutes 2012, section 280.001, is amended to read: 114.20280.001 PUBLIC SALES, AUDITOR'S CERTIFICATES ABOLISHED. 114.21Effective the second Monday in May 1974, and each year thereafter, No parcel of 114.22land against which judgment has been entered and remains unsatisfied for the taxes of 114.23the preceding year or years may be sold at public vendue as provided in sections 280.01 114.24and 280.02 by the county auditor but shall be treated in the same manner and regarded in 114.25all respects as land bid in for the state by the auditor in the manner provided in section 114.26280.02 . No notice of sale required by section 280.01 shall be published or posted in 1974 114.27and in years thereafter, and no auditor's certificate authorized by section 280.03 shall be 114.28issued on the second Monday in May 1974, or thereafter. 114.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 114.30    Sec. 45. Minnesota Statutes 2012, section 280.03, is amended to read: 114.31280.03 CERTIFICATE OF SALE. 115.1The county auditor shall execute to the purchaser of each parcel a certificate which 115.2may be substantially in the following form: 115.3"I, .........., auditor of the county of .........., state of Minnesota, do hereby certify that 115.4at the sale of lands pursuant to the real estate tax judgment entered in the district court 115.5in the county of .........., on the .......... day of .........., ......., in proceedings to enforce the 115.6payment of taxes delinquent on real estate for the years .........., for the county of .........., 115.7which sale was held at ..............., in said county of ........, on the ........ day of ........, ......., 115.8the following described parcel of land, situate in said county of .........., state of Minnesota: 115.9(insert description), was offered for sale to the bidder who should offer to pay the amount 115.10for which the same was to be sold, at the lowest annual rate of interest on such amount; 115.11and at said sale I did sell the said parcel of land to .......... for the sum of .......... dollars, 115.12with interest at .......... percent per annum on such amount, that being the sum for which the 115.13same was to be sold, and such rate of interest being the lowest rate percent per annum bid 115.14on such sum; and, the sum having been paid, I do therefore, in consideration thereof, and 115.15pursuant to the statute in such case made and provided, convey the said parcel of land, in 115.16fee simple, subject to easements and restrictions of record at the date of the tax judgment 115.17sale, including, but without limitation, permits for telephone, telegraph and electric 115.18power lines either by underground cable or conduit or otherwise, sewer and water lines, 115.19highways, railroads, and pipe lines for gas, liquids, or solids in suspension, to said .........., 115.20and the heirs and assigns of ......., forever, subject to redemption as provided by law. 115.21Witness my hand and official seal this ........ day of ........, ....... . 115.22 115.23 ..... County Auditor." 115.24If the land shall not be redeemed as provided in chapter 281, such certificate shall 115.25pass to the purchaser an estate therein, in fee simple, without any other act or deed 115.26whatever subject to easements and restrictions of record at the date of the tax judgment 115.27sale, including, but without limitation, permits for telephone, telegraph, and electric 115.28power lines either by underground cable or conduit or otherwise, sewer and water lines, 115.29highways, railroads, and pipe lines for gas, liquids, or solids in suspension. Such certificate 115.30may be recorded, after the time for redemption shall have expired, as other deeds of real 115.31estate, and with like effect. If any purchaser at such sale shall purchase more than one 115.32parcel, the auditor shall issue to the purchaser a certificate for each parcel so purchased. 115.33 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 115.34    Sec. 46. Minnesota Statutes 2012, section 280.07, is amended to read: 115.35280.07 ENTRIES IN JUDGMENT BOOKS AFTER SALE. 116.1Immediately after such sale the county auditor shall set out in the copy judgment 116.2book new text begin record new text end that all parcels were bid in for the state. The county auditor shall thereupon 116.3deliver such book to new text begin notify new text end the court administrator, who shall forthwith enter on the 116.4right-hand page of the real estate tax judgment book, opposite the description of each 116.5parcel sold, the words "bid in for the state," and thereupon redeliver the copy judgment 116.6book to the auditor. Upon redemption the auditor shall make a note thereon in the copy 116.7judgment book, opposite the parcel redeemed. 116.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 116.9    Sec. 47. Minnesota Statutes 2012, section 280.11, is amended to read: 116.10280.11 LANDS BID IN FOR STATE. 116.11At any time after any parcel of land has been bid in for the state, the same not having 116.12been redeemed, the county auditor shall assign and convey the same, and all the right of 116.13the state therein acquired at such sale, to any person who shall pay the amount for which 116.14the same was bid in, with interest at the rate of 12 percent per annum, and the amount of 116.15all subsequent delinquent taxes, penalties, costs, and interest at such rate upon the same 116.16from the time when such taxes became delinquent. The county auditor shall execute to 116.17such person a certificate for such parcel, which may be substantially in the following form: 116.18"I, .........., auditor of the county of .........., state of Minnesota, do hereby certify that 116.19at the sale of lands pursuant to the real estate tax judgment entered in the district court 116.20in the county of .........., on the .......... day of .........., ......., in proceedings to enforce the 116.21payment of taxes delinquent upon real estate for the years .......... for the county of .........., 116.22which sale was held at .........., in said county of .........., on the .......... day of .........., ......., 116.23the following described parcel of land, situate in said county of .........., state of Minnesota: 116.24(insert description), was duly offered for sale; and, no one bidding upon such offer an 116.25amount equal to that for which the parcel was subject to be sold, the same was then bid in 116.26for the state at such amount, being the sum of .......... dollars; and the same still remaining 116.27unredeemed, and on this day .......... having paid into the treasury of the county the amount 116.28for which the same was so bid in, and all subsequent delinquent taxes, penalties, costs, 116.29and interest, amounting in all to .......... dollars, therefore, in consideration thereof, and 116.30pursuant to the statute in such case made and provided, I do hereby assign and convey this 116.31parcel of land, in fee simple, subject to easements and restrictions of record at the date of 116.32the tax judgment sale, including but without limitation, permits for telephone, telegraph, 116.33 and electric power lines either by underground cable or conduit or otherwise, sewer and 116.34water lines, highways, railroads, and pipe lines for gas, liquids, or solids in suspension, 117.1with all the right, title and interest of the state acquired therein at such sale to .........., and 117.2the heirs and assigns of ........, forever, subject to redemption as provided by law. 117.3Witness my hand and official seal this .......... day of .........., ....... 117.4 117.5 ..... County Auditor." 117.6If the land shall not be redeemed, as provided in chapter 281, such certificate shall 117.7pass to the purchaser or assignee an estate therein, in fee simple, without any other act 117.8or deed whatever subject to easements and restrictions of record at the date of the tax 117.9judgment sale, including, but without limitation, permits for telephone, telegraph and 117.10electric power lines either by underground cable or conduit or otherwise, sewer and water 117.11lines, highways, railroads, and pipe lines for gas, liquids, or solids in suspension. Such 117.12certificate or conveyance may be recorded, after the time for redemption shall have 117.13expired, as other deeds of real estate, and with like effect. No assignment of the right of 117.14the state shall be given pursuant to this section after January 1, 1972. 117.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 117.16    Sec. 48. Minnesota Statutes 2012, section 281.03, is amended to read: 117.17281.03 AUDITOR'S CERTIFICATE. 117.18The county auditor shall certify to the amount due on such redemption, and, on 117.19payment of the same to the county treasurer, shall make duplicate receipts for the certified 117.20amount, describing the property redeemed, one of which shall be filed with the auditor. 117.21Such receipts shall be governed by the provisions of this chapter regulating the payment 117.22of current taxes and such payment shall have the effect to annul the sale. If the amount 117.23certified by the auditor and received in payment for redemption be less than that required 117.24by law, it shall not invalidate the redemption. On redemption being made, the auditor shall 117.25enter upon the copy of the tax judgment book, opposite the description of new text begin record new text end the 117.26parcel new text begin as new text end redeemed, the word, "redeemed." new text begin . new text end 117.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 117.28    Sec. 49. Minnesota Statutes 2013 Supplement, section 281.17, is amended to read: 117.29281.17 PERIOD FOR REDEMPTION. 117.30Except for properties for which the period of redemption has been limited under 117.31sections 281.173 and 281.174, the following periods for redemption apply. 117.32The period of redemption for all lands sold to the state at a tax judgment sale shall 117.33be three years from the date of sale to the state of Minnesota. 118.1The period of redemption for homesteaded lands as defined in section 273.13, 118.2subdivision 22 , located in a targeted neighborhood as defined in Laws 1987, chapter 386, 118.3article 6, section 4, and sold to the state at a tax judgment sale is three years from the date 118.4of sale. The period of redemption for all lands located in a targeted neighborhood as 118.5defined in Laws 1987, chapter 386, article 6, section 4, except (1) homesteaded lands as 118.6defined in section 273.13, subdivision 22, and (2) for periods of redemption beginning 118.7after June 30, 1991, but before July 1, 1996, lands located in the Loring Park targeted 118.8neighborhood on which a notice of lis pendens has been served, and sold to the state at a 118.9tax judgment sale is one year from the date of sale. 118.10The period of redemption for all real property constituting a mixed municipal solid 118.11waste disposal facility that is a qualified facility under section 115B.39, subdivision 1, is 118.12one year from the date of the sale to the state of Minnesota. 118.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 118.14    Sec. 50. Minnesota Statutes 2012, section 281.327, is amended to read: 118.15281.327 CANCELLATION OF CERTIFICATE UPON JUDICIAL ORDER. 118.16Upon the petition of any person interested in the land covered by a real estate tax 118.17sale certificate, state assignment certificate, or forfeited tax sale certificate and, upon the 118.18giving of such notice to the holder of such certificate as may be ordered, the district court, 118.19in the proceedings resulting in the judgment upon which a real estate tax judgment sale 118.20certificate, state assignment certificate, or forfeited tax sale certificate is based, may order 118.21the cancellation of a real estate tax judgment sale certificate, state assignment certificate, 118.22or forfeited tax sale certificate upon which notice of expiration of time of redemption 118.23has been issued when the certificate or a deed issued thereon has not been recorded in 118.24the office of the county recorder or filed in that of the registrar of titles, if the land is 118.25registered, within seven years after the date of the issuance of such certificate; the county 118.26auditor, on the filing of the order, shall make an entry in the proper copy real estate tax 118.27judgment book, opposite the description of the land, "canceled by order of court" new text begin record new text end 118.28 new text begin the land as canceled by order of court new text end ; and the rights of the holder under the certificate 118.29shall thereupon be terminated of record in the office of the county auditor. 118.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 118.31    Sec. 51. Minnesota Statutes 2012, section 282.01, subdivision 6, is amended to read: 118.32    Subd. 6. Duties of commissioner after sale. When any sale has been made by the 118.33county auditor under sections 282.01 to 282.13, the auditor shall immediately certify to 119.1the commissioner of revenue such information relating to such sale, on such forms as the 119.2commissioner of revenue may prescribe as will enable the commissioner of revenue to 119.3prepare an appropriate deed if the sale is for cash, or keep necessary records if the sale 119.4is on terms; and not later than October 31 of each year the county auditor shall submit 119.5to the commissioner of revenue a statement of all instances wherein any payment of 119.6principal, interest, or current taxes on lands held under certificate, due or to be paid during 119.7the preceding calendar years, are still outstanding at the time such certificate is made. 119.8When such statement shows that a purchaser or the purchaser's assignee is in default, the 119.9commissioner of revenue may instruct the county board of the county in which the land is 119.10located to cancel said certificate of sale in the manner provided by subdivision 5, provided 119.11that upon recommendation of the county board, and where the circumstances are such 119.12that the commissioner of revenue after investigation is satisfied that the purchaser has 119.13made every effort reasonable to make payment of both the annual installment and said 119.14taxes, and that there has been no willful neglect on the part of the purchaser in meeting 119.15these obligations, then the commissioner of revenue may extend the time for the payment 119.16for such period as the commissioner may deem warranted, not to exceed one year. On 119.17payment in full of the purchase price, appropriate conveyance in fee, in such form as may 119.18be prescribed by the attorney general, shall be issued by the commissioner of revenue, 119.19which conveyance must be recorded by the county and shall have the force and effect of 119.20a patent from the state subject to easements and restrictions of record at the date of the 119.21tax judgment sale, including, but without limitation, permits for telephone, telegraph, and 119.22electric power lines either by underground cable or conduit or otherwise, sewer and water 119.23lines, highways, railroads, and pipe lines for gas, liquids, or solids in suspension. 119.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 119.25    Sec. 52. Minnesota Statutes 2012, section 282.04, subdivision 4, is amended to read: 119.26    Subd. 4. Easements. The county auditor, when and for such price and on such 119.27terms and for such period as the county board prescribes, may grant easements or permits 119.28on unsold tax-forfeited land for telephone, telegraph, and electric power lines either by 119.29underground cable or conduit or otherwise, sewer and water lines, highways, recreational 119.30trails, railroads, and pipe lines for gas, liquids, or solids in suspension. Any such easement 119.31or permit may be canceled by resolution of the county board after reasonable notice for 119.32any substantial breach of its terms or if at any time its continuance will conflict with 119.33public use of the land, or any part thereof, on which it is granted. Land affected by any 119.34such easement or permit may be sold or leased for mineral or other legal purpose, but sale 119.35or lease shall be subject to the easement or permit, and all rights granted by the easement 120.1or permit shall be excepted from the conveyance or lease of the land and be reserved, 120.2and may be canceled by the county board in the same manner and for the same reasons 120.3as it could have been canceled before sale and in that case the rights granted thereby 120.4shall vest in the state in trust as the land on which it was granted was held before sale or 120.5lease. Any easement or permit granted before passage of Laws 1951, Chapter 203, may 120.6be governed thereby if the holder thereof and county board so agree. Reasonable notice 120.7as used in this subdivision, means a 90-day written notice addressed to the record owner 120.8of the easement at the last known address, and upon cancellation the county board may 120.9grant extensions of time to vacate the premises affected. 120.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 120.11    Sec. 53. Minnesota Statutes 2012, section 282.261, subdivision 2, is amended to read: 120.12    Subd. 2. Interest rate. The unpaid balance on any repurchase contract approved 120.13by the county board on or after July 1, 1982, is subject to interest at the rate determined 120.14pursuant to section . Repurchase contracts approved after December 31, 1990, are 120.15subject to interest at the rate determined in section 279.03, subdivision 1a. The interest 120.16rate is subject to change each year on the unpaid balance in the manner provided for rate 120.17changes in section or 279.03, subdivision 1a, whichever is applicable. Interest on 120.18the unpaid contract balance on repurchases approved before July 1, 1982, is payable at the 120.19rate applicable to the repurchase contract at the time that it was approved. 120.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 120.21    Sec. 54. Minnesota Statutes 2012, section 282.261, subdivision 4, is amended to read: 120.22    Subd. 4. Service fee. The county auditor may collect a service fee to cover 120.23administrative costs as set by the county board for each repurchase application received 120.24after July 1, 1985. The fee must be paid at the time of application and must be credited to 120.25the county general revenue fund. 120.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 120.27    Sec. 55. Minnesota Statutes 2012, section 282.261, subdivision 5, is amended to read: 120.28    Subd. 5. County may impose conditions of repurchase. The county auditor, after 120.29receiving county board approval, may impose conditions on repurchase of tax-forfeited 120.30lands limiting the use of the parcel subject to the repurchase, including, but not limited to, 120.31environmental remediation action plan restrictions or covenants, or easements for lines or 120.32equipment for telephone, telegraph, electric power, or telecommunications. 121.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 121.2    Sec. 56. Minnesota Statutes 2012, section 282.322, is amended to read: 121.3282.322 FORFEITED LANDS LIST. 121.4The county board of any county may at any time after the passage of Laws 1945, 121.5chapter 296, file a list of forfeited lands with the county auditor, if the board is of the 121.6opinion that such lands may be acquired by the state or any municipal subdivision thereof 121.7for public purposes. Upon the filing of such list the county auditor shall withhold said 121.8lands from repurchase. If no proceeding shall be started to acquire such lands by the 121.9state or some municipal subdivision thereof within one year after the filing of such list 121.10the county board shall withdraw said list and thereafter the owner shall have one year in 121.11which to repurchase as otherwise provided in Laws 1945, chapter 296. 121.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 121.13    Sec. 57. Minnesota Statutes 2012, section 287.30, is amended to read: 121.14287.30 COUNTY TREASURER; DUTIES. 121.15The care of documentary stamps entrusted to county treasurers and the duties imposed 121.16upon county treasurers by this chapter are within the duties of such office and are within 121.17the coverage of any official bond delivered to the state, conditioned that any such officer 121.18shall faithfully execute the duties of office. The county board may by resolution require 121.19the county auditor to perform any duty imposed on the county treasurer under this chapter. 121.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 121.21    Sec. 58. Minnesota Statutes 2012, section 289A.25, subdivision 1, is amended to read: 121.22    Subdivision 1. Requirements to pay. An individual, trust, S corporation, or 121.23partnership must, when prescribed in subdivision 3, paragraph (b), make payments of 121.24estimated tax. For individuals, the term "estimated tax" means the amount the taxpayer 121.25estimates is the sum of the taxes imposed by chapter 290 for the taxable year. For trusts, 121.26S corporations, and partnerships, the term estimated tax means the amount the taxpayer 121.27estimates is the sum of the taxes for the taxable year imposed by chapter 290 and the 121.28composite income tax imposed by section 289A.08, subdivision 7. If the individual is an 121.29infant or incompetent person, the payments must be made by the individual's guardian. If 121.30joint payments on estimated tax are made but a joint return is not made for the taxable 121.31year, the estimated tax for that year may be treated as the estimated tax of either the 121.32husband or the wife or may be divided between them. 122.1Notwithstanding the provisions of this section, no payments of estimated tax are 122.2required if the estimated tax, as defined in this subdivision, less the credits allowed against 122.3the tax, is less than $500. 122.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 122.5    Sec. 59. Minnesota Statutes 2012, section 290.01, subdivision 5, is amended to read: 122.6    Subd. 5. Domestic corporation. The term "domestic" when applied to a corporation 122.7means a corporation: 122.8(1) created or organized in the United States, or under the laws of the United 122.9States or of any state, the District of Columbia, or any political subdivision of any of 122.10the foregoing but not including the Commonwealth of Puerto Rico, or any possession 122.11of the United States; new text begin or new text end 122.12(2) which qualifies as a DISC, as defined in section 992(a) of the Internal Revenue 122.13Code; or new text begin . new text end 122.14(3) which qualifies as a FSC, as defined in section 922 of the Internal Revenue Code. 122.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 122.16 new text begin December 31, 2013. new text end 122.17    Sec. 60. Minnesota Statutes 2013 Supplement, section 290.01, subdivision 19d, 122.18is amended to read: 122.19    Subd. 19d. Corporations; modifications decreasing federal taxable income. For 122.20corporations, there shall be subtracted from federal taxable income after the increases 122.21provided in subdivision 19c: 122.22    (1) the amount of foreign dividend gross-up added to gross income for federal 122.23income tax purposes under section 78 of the Internal Revenue Code; 122.24    (2) the amount of salary expense not allowed for federal income tax purposes due to 122.25claiming the work opportunity credit under section 51 of the Internal Revenue Code; 122.26    (3) any dividend (not including any distribution in liquidation) paid within the 122.27taxable year by a national or state bank to the United States, or to any instrumentality of 122.28the United States exempt from federal income taxes, on the preferred stock of the bank 122.29owned by the United States or the instrumentality; 122.30    (4) amounts disallowed for intangible drilling costs due to differences between 122.31this chapter and the Internal Revenue Code in taxable years beginning before January 122.321, 1987, as follows: 123.1    (i) to the extent the disallowed costs are represented by physical property, an amount 123.2equal to the allowance for depreciation under Minnesota Statutes 1986, section 290.09, 123.3subdivision 7 , subject to the modifications contained in subdivision 19e; and 123.4    (ii) to the extent the disallowed costs are not represented by physical property, an 123.5amount equal to the allowance for cost depletion under Minnesota Statutes 1986, section 123.6290.09, subdivision 8; 123.7    (5) new text begin (4) new text end the deduction for capital losses pursuant to sections 1211 and 1212 of the 123.8Internal Revenue Code, except that: 123.9    (i) for capital losses incurred in taxable years beginning after December 31, 1986, 123.10capital loss carrybacks shall not be allowed; 123.11    (ii) for capital losses incurred in taxable years beginning after December 31, 1986, 123.12a capital loss carryover to each of the 15 taxable years succeeding the loss year shall be 123.13allowed; 123.14    (iii) for capital losses incurred in taxable years beginning before January 1, 1987, a 123.15capital loss carryback to each of the three taxable years preceding the loss year, subject to 123.16the provisions of Minnesota Statutes 1986, section 290.16, shall be allowed; and 123.17    (iv) for capital losses incurred in taxable years beginning before January 1, 1987, 123.18a capital loss carryover to each of the five taxable years succeeding the loss year to the 123.19extent such loss was not used in a prior taxable year and subject to the provisions of 123.20Minnesota Statutes 1986, section 290.16, shall be allowed; 123.21    (6) new text begin (5) new text end an amount for interest and expenses relating to income not taxable for federal 123.22income tax purposes, if (i) the income is taxable under this chapter and (ii) the interest and 123.23expenses were disallowed as deductions under the provisions of section 171(a)(2), 265 or 123.24291 of the Internal Revenue Code in computing federal taxable income; 123.25    (7) new text begin (6) new text end in the case of mines, oil and gas wells, other natural deposits, and timber for 123.26which percentage depletion was disallowed pursuant to subdivision 19c, clause (8), a 123.27reasonable allowance for depletion based on actual cost. In the case of leases the deduction 123.28must be apportioned between the lessor and lessee in accordance with rules prescribed 123.29by the commissioner. In the case of property held in trust, the allowable deduction must 123.30be apportioned between the income beneficiaries and the trustee in accordance with the 123.31pertinent provisions of the trust, or if there is no provision in the instrument, on the basis 123.32of the trust's income allocable to each; 123.33    (8) new text begin (7) new text end for certified pollution control facilities placed in service in a taxable year 123.34beginning before December 31, 1986, and for which amortization deductions were elected 123.35under section 169 of the Internal Revenue Code of 1954, as amended through December 124.131, 1985, an amount equal to the allowance for depreciation under Minnesota Statutes 124.21986, section 290.09, subdivision 7; 124.3    (9) new text begin (8) new text end amounts included in federal taxable income that are due to refunds of 124.4income, excise, or franchise taxes based on net income or related minimum taxes paid 124.5by the corporation to Minnesota, another state, a political subdivision of another state, 124.6the District of Columbia, or a foreign country or possession of the United States to the 124.7extent that the taxes were added to federal taxable income under subdivision 19c, clause 124.8(1), in a prior taxable year; 124.9    (10) new text begin (9) new text end income or gains from the business of mining as defined in section 290.05, 124.10subdivision 1 , clause (a), that are not subject to Minnesota franchise tax; 124.11    (11) new text begin (10) new text end the amount of disability access expenditures in the taxable year which are not 124.12allowed to be deducted or capitalized under section 44(d)(7) of the Internal Revenue Code; 124.13    (12) new text begin (11) new text end the amount of qualified research expenses not allowed for federal income 124.14tax purposes under section 280C(c) of the Internal Revenue Code, but only to the extent 124.15that the amount exceeds the amount of the credit allowed under section 290.068; 124.16    (13) new text begin (12) new text end the amount of salary expenses not allowed for federal income tax purposes 124.17due to claiming the Indian employment credit under section 45A(a) of the Internal 124.18Revenue Code; 124.19    (14) new text begin (13) new text end any decrease in subpart F income, as defined in section 952(a) of the 124.20Internal Revenue Code, for the taxable year when subpart F income is calculated without 124.21regard to the provisions of Division C, title III, section 303(b) of Public Law 110-343; 124.22    (15) new text begin (14) new text end in each of the five tax years immediately following the tax year in which 124.23an addition is required under subdivision 19c, clause (12), an amount equal to one-fifth 124.24of the delayed depreciation. For purposes of this clause, "delayed depreciation" means 124.25the amount of the addition made by the taxpayer under subdivision 19c, clause (12). The 124.26resulting delayed depreciation cannot be less than zero; 124.27    (16) new text begin (15) new text end in each of the five tax years immediately following the tax year in which an 124.28addition is required under subdivision 19c, clause (13), an amount equal to one-fifth of the 124.29amount of the addition; 124.30(17) new text begin (16) new text end to the extent included in federal taxable income, discharge of indebtedness 124.31income resulting from reacquisition of business indebtedness included in federal taxable 124.32income under section 108(i) of the Internal Revenue Code. This subtraction applies only 124.33to the extent that the income was included in net income in a prior year as a result of the 124.34addition under subdivision 19c, clause (16); and 125.1(18) new text begin (17) new text end the amount of expenses not allowed for federal income tax purposes due 125.2to claiming the railroad track maintenance credit under section 45G(a) of the Internal 125.3Revenue Code. 125.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 125.5 new text begin December 31, 2013. new text end 125.6    Sec. 61. Minnesota Statutes 2012, section 290.01, subdivision 19f, is amended to read: 125.7    Subd. 19f. Basis modifications affecting gain or loss on disposition of property. 125.8(a) For individuals, estates, and trusts, the basis of property is its adjusted basis for federal 125.9income tax purposes except as set forth in paragraphs new text begin (e) and new text end (f), (g), and (m). For 125.10corporations, the basis of property is its adjusted basis for federal income tax purposes, 125.11without regard to the time when the property became subject to tax under this chapter or to 125.12whether out-of-state losses or items of tax preference with respect to the property were not 125.13deductible under this chapter, except that the modifications to the basis for federal income 125.14tax purposes set forth in paragraphs (b) to (j) new text begin (i) new text end are allowed to corporations, and the 125.15resulting modifications to federal taxable income must be made in the year in which gain 125.16or loss on the sale or other disposition of property is recognized. 125.17(b) The basis of property shall not be reduced to reflect federal investment tax credit. 125.18(c) The basis of property subject to the accelerated cost recovery system under 125.19section 168 of the Internal Revenue Code shall be modified to reflect the modifications in 125.20depreciation with respect to the property provided for in subdivision 19e. For certified 125.21pollution control facilities for which amortization deductions were elected under section 125.22169 of the Internal Revenue Code of 1954, the basis of the property must be increased by 125.23the amount of the amortization deduction not previously allowed under this chapter. 125.24(d) For property acquired before January 1, 1933, the basis for computing a gain is 125.25the fair market value of the property as of that date. The basis for determining a loss is 125.26the cost of the property to the taxpayer less any depreciation, amortization, or depletion, 125.27actually sustained before that date. If the adjusted cost exceeds the fair market value of the 125.28property, then the basis is the adjusted cost regardless of whether there is a gain or loss. 125.29(e) new text begin (d) new text end The basis is reduced by the allowance for amortization of bond premium if 125.30an election to amortize was made pursuant to Minnesota Statutes 1986, section 290.09, 125.31subdivision 13, and the allowance could have been deducted by the taxpayer under this 125.32chapter during the period of the taxpayer's ownership of the property. 125.33(f) new text begin (e) new text end For assets placed in service before January 1, 1987, corporations, partnerships, 125.34or individuals engaged in the business of mining ores other than iron ore or taconite 126.1concentrates subject to the occupation tax under chapter 298 must use the occupation 126.2tax basis of property used in that business. 126.3(g) new text begin (f) new text end For assets placed in service before January 1, 1990, corporations, partnerships, 126.4or individuals engaged in the business of mining iron ore or taconite concentrates subject 126.5to the occupation tax under chapter 298 must use the occupation tax basis of property 126.6used in that business. 126.7(h) new text begin (g) new text end In applying the provisions of sections 301(c)(3)(B), 312(f) and (g), and 126.8316(a)(1) of the Internal Revenue Code, the dates December 31, 1932, and January 1, 126.91933, shall be substituted for February 28, 1913, and March 1, 1913, respectively. 126.10(i) new text begin (h) new text end In applying the provisions of section 362(a) and (c) of the Internal Revenue 126.11Code, the date December 31, 1956, shall be substituted for June 22, 1954. 126.12(j) new text begin (i) new text end The basis of property shall be increased by the amount of intangible drilling 126.13costs not previously allowed due to differences between this chapter and the Internal 126.14Revenue Code. 126.15(k) new text begin (j) new text end The adjusted basis of any corporate partner's interest in a partnership is 126.16the same as the adjusted basis for federal income tax purposes modified as required to 126.17reflect the basis modifications set forth in paragraphs (b) to (j) new text begin (i) new text end . The adjusted basis 126.18of a partnership in which the partner is an individual, estate, or trust is the same as the 126.19adjusted basis for federal income tax purposes modified as required to reflect the basis 126.20modifications set forth in paragraphs new text begin (e) and new text end (f) and (g). 126.21(l) new text begin (k) new text end The modifications contained in paragraphs (b) to (j) new text begin (i) new text end also apply to the basis 126.22of property that is determined by reference to the basis of the same property in the hands 126.23of a different taxpayer or by reference to the basis of different property. 126.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 126.25 new text begin December 31, 2013. new text end 126.26    Sec. 62. Minnesota Statutes 2012, section 290.01, subdivision 29, is amended to read: 126.27    Subd. 29. Taxable income. The term "taxable income" means: 126.28(1) for individuals, estates, and trusts, the same as taxable net income; 126.29(2) for corporations, the taxable net income less 126.30(i) the net operating loss deduction under section 290.095; 126.31(ii) the dividends received deduction under section 290.21, subdivision 4; new text begin and new text end 126.32(iii) the exemption for operating in a job opportunity building zone under section 126.33469.317 ; and new text begin . new text end 126.34(iv) the exemption for operating in a biotechnology and health sciences industry 126.35zone under section . 127.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 127.2 new text begin December 31, 2015. new text end 127.3    Sec. 63. Minnesota Statutes 2012, section 290.015, subdivision 1, is amended to read: 127.4    Subdivision 1. General rule. (a) Except as provided in subdivision 3, a person 127.5that conducts a trade or business that has a place of business in this state, regularly has 127.6employees or independent contractors conducting business activities on its behalf in this 127.7state, or owns or leases real property that is located in this state or tangible personal 127.8property, including but not limited to mobile property, that is present in this state is subject 127.9to the taxes imposed by this chapter. 127.10(b) Except as provided in subdivision 3, a person that conducts a trade or business 127.11not described in paragraph (a) is subject to the taxes imposed by this chapter if the trade 127.12or business obtains or regularly solicits business from within this state, without regard 127.13to physical presence in this state. 127.14(c) For purposes of paragraph (b), business from within this state includes, but is 127.15not limited to: 127.16(1) sales of products or services of any kind or nature to customers in this state who 127.17receive the product or service in this state; 127.18(2) sales of services which are performed from outside this state but the services 127.19are received in this state; 127.20(3) transactions with customers in this state that involve intangible property and 127.21result in receipts attributed to this state as provided in section 290.191, subdivision 5 or 6; 127.22(4) leases of tangible personal property that is located in this state as defined in 127.23section 290.191, subdivision 5, paragraph (g), or 6, paragraph (e); and 127.24(5) sales and leases of real property located in this state. 127.25(d) For purposes of paragraph (b), solicitation includes, but is not limited to: 127.26(1) the distribution, by mail or otherwise, without regard to the state from which such 127.27distribution originated or in which the materials were prepared, of catalogs, periodicals, 127.28advertising flyers, or other written solicitations of business to customers in this state; 127.29(2) display of advertisements on billboards or other outdoor advertising in this state; 127.30(3) advertisements in newspapers published in this state; 127.31(4) advertisements in trade journals or other periodicals, the circulation of which is 127.32primarily within this state; 127.33(5) advertisements in a Minnesota edition of a national or regional publication or a 127.34limited regional edition of which this state is included of a broader regional or national 128.1publication which are not placed in other geographically defined editions of the same issue 128.2of the same publication; 128.3(6) advertisements in regional or national publications in an edition which is not 128.4by its contents geographically targeted to Minnesota, but which is sold over the counter 128.5in Minnesota or by subscription to Minnesota residents; 128.6(7) advertisements broadcast on a radio or television station located in Minnesota; or 128.7(8) any other solicitation by telegraph, telephone, computer database, cable, optic, 128.8microwave, or other communication system. 128.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 128.10    Sec. 64. Minnesota Statutes 2012, section 290.07, subdivision 1, is amended to read: 128.11    Subdivision 1. Annual accounting period. Net income and taxable net income 128.12shall be computed upon the basis of the taxpayer's annual accounting period. If a taxpayer 128.13has no annual accounting period, or has one other than a fiscal year, as heretofore defined, 128.14 the net income and taxable net income shall be computed on the basis of the calendar year. 128.15Taxpayers shall employ the same accounting period on which they report, or would be 128.16required to report, their net income under the Internal Revenue Code. The commissioner 128.17shall provide by rule for the determination of the accounting period for taxpayers who file 128.18a combined report under section 290.17, subdivision 4, when members of the group use 128.19different accounting periods for federal income tax purposes. Unless the taxpayer changes 128.20its accounting period for federal purposes, the due date of the return is not changed. 128.21    A taxpayer may change accounting periods only with the consent of the 128.22commissioner. In case of any such change, the taxpayer shall pay a tax for the period 128.23not included in either the taxpayer's former or newly adopted taxable year, computed as 128.24provided in section . 128.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 128.26 new text begin December 31, 2013. new text end 128.27    Sec. 65. Minnesota Statutes 2012, section 290.07, subdivision 2, is amended to read: 128.28    Subd. 2. Accounting methods. Except as specifically provided to the contrary by 128.29this chapter, net income and taxable net income shall be computed in accordance with 128.30the method of accounting regularly employed in keeping the taxpayer's books. If no such 128.31accounting system has been regularly employed, or if that employed does not clearly or 128.32fairly reflect income or the income taxable under this chapter, the computation shall be 129.1made in accordance with such method as in the opinion of the commissioner does clearly 129.2and fairly reflect income and the income taxable under this chapter. 129.3Except as otherwise expressly provided in this chapter, a taxpayer who changes the 129.4method of accounting for regularly computing the taxpayer's income in keeping books 129.5shall, before computing net income and taxable net income under the new method, secure 129.6the consent of the commissioner. 129.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 129.8 new text begin December 31, 2013. new text end 129.9    Sec. 66. Minnesota Statutes 2013 Supplement, section 290.0921, subdivision 3, 129.10is amended to read: 129.11    Subd. 3. Alternative minimum taxable income. "Alternative minimum taxable 129.12income" is Minnesota net income as defined in section 290.01, subdivision 19, and 129.13includes the adjustments and tax preference items in sections 56, 57, 58, and 59(d), (e), 129.14(f), and (h) of the Internal Revenue Code. If a corporation files a separate company 129.15Minnesota tax return, the minimum tax must be computed on a separate company basis. 129.16If a corporation is part of a tax group filing a unitary return, the minimum tax must be 129.17computed on a unitary basis. The following adjustments must be made. 129.18(1) For purposes of the depreciation adjustments under section 56(a)(1) and 129.1956(g)(4)(A) of the Internal Revenue Code, the basis for depreciable property placed in 129.20service in a taxable year beginning before January 1, 1990, is the adjusted basis for federal 129.21income tax purposes, including any modification made in a taxable year under section 129.22290.01, subdivision 19e, or Minnesota Statutes 1986, section 290.09, subdivision 7, 129.23paragraph (c). 129.24For taxable years beginning after December 31, 2000, the amount of any remaining 129.25modification made under section 290.01, subdivision 19e, or Minnesota Statutes 1986, 129.26section 290.09, subdivision 7, paragraph (c), not previously deducted is a depreciation 129.27allowance in the first taxable year after December 31, 2000. 129.28(2) new text begin (1) new text end The portion of the depreciation deduction allowed for federal income tax 129.29purposes under section 168(k) of the Internal Revenue Code that is required as an 129.30addition under section 290.01, subdivision 19c, clause (12), is disallowed in determining 129.31alternative minimum taxable income. 129.32(3) new text begin (2) new text end The subtraction for depreciation allowed under section 290.01, subdivision 129.3319d , clause (15) new text begin (14) new text end , is allowed as a depreciation deduction in determining alternative 129.34minimum taxable income. 130.1(4) new text begin (3) new text end The alternative tax net operating loss deduction under sections 56(a)(4) and 130.256(d) of the Internal Revenue Code does not apply. 130.3(5) new text begin (4) new text end The special rule for certain dividends under section 56(g)(4)(C)(ii) of the 130.4Internal Revenue Code does not apply. 130.5(6) new text begin (5) new text end The tax preference for depletion under section 57(a)(1) of the Internal 130.6Revenue Code does not apply. 130.7(7) The tax preference for intangible drilling costs under section 57(a)(2) of the 130.8Internal Revenue Code must be calculated without regard to subparagraph (E) and the 130.9subtraction under section 290.01, subdivision 19d, clause (4). 130.10(8) new text begin (6) new text end The tax preference for tax exempt interest under section 57(a)(5) of the 130.11Internal Revenue Code does not apply. 130.12(9) new text begin (7) new text end The tax preference for charitable contributions of appreciated property under 130.13section 57(a)(6) of the Internal Revenue Code does not apply. 130.14(10) For purposes of calculating the tax preference for accelerated depreciation or 130.15amortization on certain property placed in service before January 1, 1987, under section 130.1657(a)(7) of the Internal Revenue Code, the deduction allowable for the taxable year is the 130.17deduction allowed under section 290.01, subdivision 19e. 130.18For taxable years beginning after December 31, 2000, the amount of any remaining 130.19modification made under section 290.01, subdivision 19e, not previously deducted is a 130.20depreciation or amortization allowance in the first taxable year after December 31, 2004. 130.21(11) new text begin (8) new text end For purposes of calculating the adjustment for adjusted current earnings 130.22in section 56(g) of the Internal Revenue Code, the term "alternative minimum taxable 130.23income" as it is used in section 56(g) of the Internal Revenue Code, means alternative 130.24minimum taxable income as defined in this subdivision, determined without regard to the 130.25adjustment for adjusted current earnings in section 56(g) of the Internal Revenue Code. 130.26(12) new text begin (9) new text end For purposes of determining the amount of adjusted current earnings under 130.27section 56(g)(3) of the Internal Revenue Code, no adjustment shall be made under section 130.2856(g)(4) of the Internal Revenue Code with respect to (i) the amount of foreign dividend 130.29gross-up subtracted as provided in section 290.01, subdivision 19d, clause (1), or (ii) the 130.30amount of refunds of income, excise, or franchise taxes subtracted as provided in section 130.31290.01, subdivision 19d , clause (9). 130.32(13) new text begin (10) new text end Alternative minimum taxable income excludes the income from operating 130.33in a job opportunity building zone as provided under section 469.317. 130.34(14) Alternative minimum taxable income excludes the income from operating in a 130.35biotechnology and health sciences industry zone as provided under section . 131.1Items of tax preference must not be reduced below zero as a result of the 131.2modifications in this subdivision. 131.3 new text begin EFFECTIVE DATE. new text end new text begin The amendments striking clauses (1), (7), and (10), and new text end 131.4 new text begin the renumbering of clauses are effective for taxable years beginning after December new text end 131.5 new text begin 31, 2013. The amendment striking clause (14) is effective for taxable years beginning new text end 131.6 new text begin after December 31, 2015. new text end 131.7    Sec. 67. Minnesota Statutes 2012, section 290.0922, subdivision 3, is amended to read: 131.8    Subd. 3. Definitions. (a) "Minnesota sales or receipts" means the total sales 131.9apportioned to Minnesota pursuant to section 290.191, subdivision 5, the total receipts 131.10attributed to Minnesota pursuant to section 290.191, subdivisions 6 to 8, and/or the 131.11total sales or receipts apportioned or attributed to Minnesota pursuant to any other 131.12apportionment formula applicable to the taxpayer. 131.13(b) "Minnesota property" means total Minnesota tangible property as provided in 131.14section 290.191, subdivisions 9 to 11, any other tangible property located in Minnesota, 131.15but does not include: (1) the property of a qualified business as defined under section 131.16469.310, subdivision 11 , that is located in a job opportunity building zone designated 131.17under section 469.314 and (2) property of a qualified business located in a biotechnology 131.18and health sciences industry zone designated under section . Intangible property 131.19shall not be included in Minnesota property for purposes of this section. Taxpayers who 131.20do not utilize tangible property to apportion income shall nevertheless include Minnesota 131.21property for purposes of this section. On a return for a short taxable year, the amount of 131.22Minnesota property owned, as determined under section 290.191, shall be included in 131.23Minnesota property based on a fraction in which the numerator is the number of days in 131.24the short taxable year and the denominator is 365. 131.25(c) "Minnesota payrolls" means total Minnesota payrolls as provided in section 131.26290.191, subdivision 12 , but does not include: (1) the job opportunity building zone payroll 131.27under section 469.310, subdivision 8, of a qualified business as defined under section 131.28469.310, subdivision 11 , and (2) biotechnology and health sciences industry zone payrolls 131.29under section 469.330, subdivision 8. Taxpayers who do not utilize payrolls to apportion 131.30income shall nevertheless include Minnesota payrolls for purposes of this section. 131.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 131.32 new text begin December 31, 2015. new text end 131.33    Sec. 68. Minnesota Statutes 2012, section 290.095, subdivision 3, is amended to read: 132.1    Subd. 3. Carryover. (a) A net operating loss incurred in a new text begin during the new text end taxable year: 132.2(i) beginning after December 31, 1986, shall be a net operating loss carryover to each of 132.3the 15 taxable years following the taxable year of such loss; (ii) beginning before January 132.41, 1987, shall be a net operating loss carryover to each of the five taxable years following 132.5the taxable year of such loss subject to the provisions of Minnesota Statutes 1986, section 132.6; and (iii) beginning before January 1, 1987, shall be a net operating loss carryback 132.7to each of the three taxable years preceding the loss year subject to the provisions of 132.8Minnesota Statutes 1986, section . 132.9(b) The entire amount of the net operating loss for any taxable year shall be carried to 132.10the earliest of the taxable years to which such loss may be carried. The portion of such loss 132.11which shall be carried to each of the other taxable years shall be the excess, if any, of the 132.12amount of such loss over the sum of the taxable net income, adjusted by the modifications 132.13specified in subdivision 4, for each of the taxable years to which such loss may be carried. 132.14(c) Where a corporation apportions its income under the provisions of section 132.15290.191 , the net operating loss deduction incurred in any taxable year shall be allowed 132.16to the extent of the apportionment ratio of the loss year. 132.17(d) The provisions of sections 381, 382, and 384 of the Internal Revenue Code apply 132.18to carryovers in certain corporate acquisitions and special limitations on net operating loss 132.19carryovers. The limitation amount determined under section 382 shall be applied to net 132.20income, before apportionment, in each post change year to which a loss is carried. 132.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 132.22 new text begin December 31, 2013. new text end 132.23    Sec. 69. Minnesota Statutes 2013 Supplement, section 290.191, subdivision 5, is 132.24amended to read: 132.25    Subd. 5. Determination of sales factor. For purposes of this section, the following 132.26rules apply in determining the sales factor. 132.27    (a) The sales factor includes all sales, gross earnings, or receipts received in the 132.28ordinary course of the business, except that the following types of income are not included 132.29in the sales factor: 132.30    (1) interest; 132.31    (2) dividends; 132.32    (3) sales of capital assets as defined in section 1221 of the Internal Revenue Code; 132.33    (4) sales of property used in the trade or business, except sales of leased property of 132.34a type which is regularly sold as well as leased; and 133.1    (5) sales of debt instruments as defined in section 1275(a)(1) of the Internal Revenue 133.2Code or sales of stock. 133.3    (b) Sales of tangible personal property are made within this state if the property is 133.4received by a purchaser at a point within this state, and the taxpayer is taxable in this state, 133.5 regardless of the f.o.b. point, other conditions of the sale, or the ultimate destination 133.6of the property. 133.7    (c) Tangible personal property delivered to a common or contract carrier or foreign 133.8vessel for delivery to a purchaser in another state or nation is a sale in that state or nation, 133.9regardless of f.o.b. point or other conditions of the sale. 133.10    (d) Notwithstanding paragraphs (b) and (c), when intoxicating liquor, wine, 133.11fermented malt beverages, cigarettes, or tobacco products are sold to a purchaser who is 133.12licensed by a state or political subdivision to resell this property only within the state of 133.13ultimate destination, the sale is made in that state. 133.14    (e) Sales made by or through a corporation that is qualified as a domestic 133.15international sales corporation under section 992 of the Internal Revenue Code are not 133.16considered to have been made within this state. 133.17    (f) Sales, rents, royalties, and other income in connection with real property is 133.18attributed to the state in which the property is located. 133.19    (g) Receipts from the lease or rental of tangible personal property, including finance 133.20leases and true leases, must be attributed to this state if the property is located in this 133.21state and to other states if the property is not located in this state. Receipts from the 133.22lease or rental of moving property including, but not limited to, motor vehicles, rolling 133.23stock, aircraft, vessels, or mobile equipment are included in the numerator of the receipts 133.24factor to the extent that the property is used in this state. The extent of the use of moving 133.25property is determined as follows: 133.26    (1) A motor vehicle is used wholly in the state in which it is registered. 133.27    (2) The extent that rolling stock is used in this state is determined by multiplying 133.28the receipts from the lease or rental of the rolling stock by a fraction, the numerator of 133.29which is the miles traveled within this state by the leased or rented rolling stock and the 133.30denominator of which is the total miles traveled by the leased or rented rolling stock. 133.31    (3) The extent that an aircraft is used in this state is determined by multiplying the 133.32receipts from the lease or rental of the aircraft by a fraction, the numerator of which is 133.33the number of landings of the aircraft in this state and the denominator of which is the 133.34total number of landings of the aircraft. 133.35    (4) The extent that a vessel, mobile equipment, or other mobile property is used in 133.36the state is determined by multiplying the receipts from the lease or rental of the property 134.1by a fraction, the numerator of which is the number of days during the taxable year the 134.2property was in this state and the denominator of which is the total days in the taxable year. 134.3    (h) Royalties and other income received for the use of or for the privilege of using 134.4intangible property, including patents, know-how, formulas, designs, processes, patterns, 134.5copyrights, trade names, service names, franchises, licenses, contracts, customer lists, or 134.6similar items, must be attributed to the state in which the property is used by the purchaser. 134.7If the property is used in more than one state, the royalties or other income must be 134.8apportioned to this state pro rata according to the portion of use in this state. If the portion 134.9of use in this state cannot be determined, the royalties or other income must be excluded 134.10from both the numerator and the denominator. Intangible property is used in this state if 134.11the purchaser uses the intangible property or the rights therein in the regular course of its 134.12business operations in this state, regardless of the location of the purchaser's customers. 134.13    (i) Sales of intangible property are made within the state in which the property is 134.14used by the purchaser. If the property is used in more than one state, the sales must be 134.15apportioned to this state pro rata according to the portion of use in this state. If the 134.16portion of use in this state cannot be determined, the sale must be excluded from both the 134.17numerator and the denominator of the sales factor. Intangible property is used in this 134.18state if the purchaser used the intangible property in the regular course of its business 134.19operations in this state. 134.20    (j) Receipts from the performance of services must be attributed to the state where 134.21the services are received. For the purposes of this section, receipts from the performance 134.22of services provided to a corporation, partnership, or trust may only be attributed to a state 134.23where it has a fixed place of doing business. If the state where the services are received is 134.24not readily determinable or is a state where the corporation, partnership, or trust receiving 134.25the service does not have a fixed place of doing business, the services shall be deemed 134.26to be received at the location of the office of the customer from which the services were 134.27ordered in the regular course of the customer's trade or business. If the ordering office 134.28cannot be determined, the services shall be deemed to be received at the office of the 134.29customer to which the services are billed. 134.30    (k) For the purposes of this subdivision and subdivision 6, paragraph (l), receipts 134.31from management, distribution, or administrative services performed by a corporation 134.32or trust for a fund of a corporation or trust regulated under United States Code, title 15, 134.33sections 80a-1 through 80a-64, must be attributed to the state where the shareholder of 134.34the fund resides. Under this paragraph, receipts for services attributed to shareholders are 134.35determined on the basis of the ratio of: (1) the average of the outstanding shares in the 134.36fund owned by shareholders residing within Minnesota at the beginning and end of each 135.1year; and (2) the average of the total number of outstanding shares in the fund at the 135.2beginning and end of each year. Residence of the shareholder, in the case of an individual, 135.3is determined by the mailing address furnished by the shareholder to the fund. Residence 135.4of the shareholder, when the shares are held by an insurance company as a depositor for 135.5the insurance company policyholders, is the mailing address of the policyholders. In 135.6the case of an insurance company holding the shares as a depositor for the insurance 135.7company policyholders, if the mailing address of the policyholders cannot be determined 135.8by the taxpayer, the receipts must be excluded from both the numerator and denominator. 135.9Residence of other shareholders is the mailing address of the shareholder. 135.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 135.11    Sec. 70. Minnesota Statutes 2012, section 290.9728, subdivision 2, is amended to read: 135.12    Subd. 2. Taxable income. For purposes of this section, taxable income means 135.13the lesser of: 135.14(1) the amount of the net capital gain of the S corporation for the taxable year, as 135.15determined under sections 1222 and 1374 of the Internal Revenue Code, and subject to the 135.16modifications provided in section 290.01, subdivisions 19e and new text begin subdivision new text end 19f, in excess 135.17of $25,000 that is allocable to this state under section 290.17, 290.191, or 290.20; or 135.18(2) the amount of the S corporation's federal taxable income, subject to the 135.19provisions of section 290.01, subdivisions 19c to 19f, that is allocable to this state under 135.20section 290.17, 290.191, or 290.20. 135.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 135.22 new text begin December 31, 2013. new text end 135.23    Sec. 71. Minnesota Statutes 2013 Supplement, section 297A.61, subdivision 3, as 135.24amended by Laws 2014, chapter 150, article 2, section 1, is amended to read: 135.25    Subd. 3. Sale and purchase. (a) "Sale" and "purchase" include, but are not limited 135.26to, each of the transactions listed in this subdivision. In applying the provisions of this 135.27chapter, the terms "tangible personal property" and "retail sale" include the taxable 135.28services listed in paragraph (g), clause (6), items (i) to (vi) and (viii), and the provision 135.29of these taxable services, unless specifically provided otherwise. Services performed by 135.30an employee for an employer are not taxable. Services performed by a partnership or 135.31association for another partnership or association are not taxable if one of the entities owns 135.32or controls more than 80 percent of the voting power of the equity interest in the other 135.33entity. Services performed between members of an affiliated group of corporations are not 136.1taxable. For purposes of the preceding sentence, "affiliated group of corporations" means 136.2those entities that would be classified as members of an affiliated group as defined under 136.3United States Code, title 26, section 1504, disregarding the exclusions in section 1504(b). 136.4    (b) Sale and purchase include: 136.5    (1) any transfer of title or possession, or both, of tangible personal property, whether 136.6absolutely or conditionally, for a consideration in money or by exchange or barter; and 136.7    (2) the leasing of or the granting of a license to use or consume, for a consideration 136.8in money or by exchange or barter, tangible personal property, other than a manufactured 136.9home used for residential purposes for a continuous period of 30 days or more. 136.10    (c) Sale and purchase include the production, fabrication, printing, or processing of 136.11tangible personal property for a consideration for consumers who furnish either directly or 136.12indirectly the materials used in the production, fabrication, printing, or processing. 136.13    (d) Sale and purchase include the preparing for a consideration of food. 136.14Notwithstanding section 297A.67, subdivision 2, taxable food includes, but is not limited 136.15to, the following: 136.16    (1) prepared food sold by the retailer; 136.17    (2) soft drinks; 136.18    (3) candy; 136.19    (4) dietary supplements; and 136.20    (5) all food sold through vending machines. 136.21    (e) A sale and a purchase includes the furnishing for a consideration of electricity, 136.22gas, water, or steam for use or consumption within this state. 136.23    (f) A sale and a purchase includes the transfer for a consideration of prewritten 136.24computer software whether delivered electronically, by load and leave, or otherwise. 136.25    (g) A sale and a purchase includes the furnishing for a consideration of the following 136.26services: 136.27    (1) the privilege of admission to places of amusement, recreational areas, or athletic 136.28events, and the making available of amusement devices, tanning facilities, reducing 136.29salons, steam baths, Turkish baths, health clubs, and spas or athletic facilities; 136.30    (2) lodging and related services by a hotel, rooming house, resort, campground, 136.31motel, or trailer camp, including furnishing the guest of the facility with access to 136.32telecommunication services, and the granting of any similar license to use real property in 136.33a specific facility, other than the renting or leasing of it for a continuous period of 30 days 136.34or more under an enforceable written agreement that may not be terminated without prior 136.35notice and including accommodations intermediary services provided in connection with 136.36other services provided under this clause; 137.1    (3) nonresidential parking services, whether on a contractual, hourly, or other 137.2periodic basis, except for parking at a meter; 137.3    (4) the granting of membership in a club, association, or other organization if: 137.4    (i) the club, association, or other organization makes available for the use of its 137.5members sports and athletic facilities, without regard to whether a separate charge is 137.6assessed for use of the facilities; and 137.7    (ii) use of the sports and athletic facility is not made available to the general public 137.8on the same basis as it is made available to members. 137.9Granting of membership means both onetime initiation fees and periodic membership 137.10dues. Sports and athletic facilities include golf courses; tennis, racquetball, handball, and 137.11squash courts; basketball and volleyball facilities; running tracks; exercise equipment; 137.12swimming pools; and other similar athletic or sports facilities; 137.13    (5) delivery of aggregate materials by a third party, excluding delivery of aggregate 137.14material used in road construction; and delivery of concrete block by a third party if the 137.15delivery would be subject to the sales tax if provided by the seller of the concrete block. 137.16For purposes of this clause, "road construction" means construction of: 137.17    (i) public roads; 137.18    (ii) cartways; and 137.19    (iii) private roads in townships located outside of the seven-county metropolitan area 137.20up to the point of the emergency response location sign; and 137.21    (6) services as provided in this clause: 137.22    (i) laundry and dry cleaning services including cleaning, pressing, repairing, altering, 137.23and storing clothes, linen services and supply, cleaning and blocking hats, and carpet, 137.24drapery, upholstery, and industrial cleaning. Laundry and dry cleaning services do not 137.25include services provided by coin operated facilities operated by the customer; 137.26    (ii) motor vehicle washing, waxing, and cleaning services, including services 137.27provided by coin operated facilities operated by the customer, and rustproofing, 137.28undercoating, and towing of motor vehicles; 137.29    (iii) building and residential cleaning, maintenance, and disinfecting services and 137.30pest control and exterminating services; 137.31    (iv) detective, security, burglar, fire alarm, and armored car services; but not 137.32including services performed within the jurisdiction they serve by off-duty licensed peace 137.33officers as defined in section 626.84, subdivision 1, or services provided by a nonprofit 137.34organization or any organization at the direction of a county for monitoring and electronic 137.35surveillance of persons placed on in-home detention pursuant to court order or under the 137.36direction of the Minnesota Department of Corrections; 138.1    (v) pet grooming services; 138.2    (vi) lawn care, fertilizing, mowing, spraying and sprigging services; garden planting 138.3and maintenance; tree, bush, and shrub pruning, bracing, spraying, and surgery; indoor 138.4plant care; tree, bush, shrub, and stump removal, except when performed as part of a land 138.5clearing contract as defined in section 297A.68, subdivision 40; and tree trimming for 138.6public utility lines. Services performed under a construction contract for the installation of 138.7shrubbery, plants, sod, trees, bushes, and similar items are not taxable; 138.8    (vii) massages, except when provided by a licensed health care facility or 138.9professional or upon written referral from a licensed health care facility or professional for 138.10treatment of illness, injury, or disease; and 138.11    (viii) the furnishing of lodging, board, and care services for animals in kennels and 138.12other similar arrangements, but excluding veterinary and horse boarding services. 138.13    (h) A sale and a purchase includes the furnishing for a consideration of tangible 138.14personal property or taxable services by the United States or any of its agencies or 138.15instrumentalities, or the state of Minnesota, its agencies, instrumentalities, or political 138.16subdivisions. 138.17    (i) A sale and a purchase includes the furnishing for a consideration of 138.18telecommunications services, ancillary services associated with telecommunication 138.19services, and pay television services. Telecommunication services include, but are 138.20not limited to, the following services, as defined in section 297A.669: air-to-ground 138.21radiotelephone service, mobile telecommunication service, postpaid calling service, 138.22prepaid calling service, prepaid wireless calling service, and private communication 138.23services. The services in this paragraph are taxed to the extent allowed under federal law. 138.24    (j) A sale and a purchase includes the furnishing for a consideration of installation if 138.25the installation charges would be subject to the sales tax if the installation were provided 138.26by the seller of the item being installed. 138.27    (k) A sale and a purchase includes the rental of a vehicle by a motor vehicle dealer 138.28to a customer when (1) the vehicle is rented by the customer for a consideration, or (2) 138.29the motor vehicle dealer is reimbursed pursuant to a service contract as defined in section 138.3059B.02, subdivision 11. 138.31    (l) A sale and a purchase includes furnishing for a consideration of specified digital 138.32products or other digital products or granting the right for a consideration to use specified 138.33digital products or other digital products on a temporary or permanent basis and regardless 138.34of whether the purchaser is required to make continued payments for such right. Wherever 138.35the term "tangible personal property" is used in this chapter, other than in subdivisions 10 139.1and 38, the provisions also apply to specified digital products, or other digital products, 139.2unless specifically provided otherwise or the context indicates otherwise. 139.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 139.4    Sec. 72. Minnesota Statutes 2012, section 297A.70, subdivision 10, is amended to read: 139.5    Subd. 10. Nonprofit tickets or admissions. (a) Tickets or admissions to an event 139.6are exempt if all the gross receipts are recorded as such, in accordance with generally 139.7accepted accounting principles, on the books of one or more organizations whose primary 139.8mission is to provide an opportunity for citizens of the state to participate in the creation, 139.9performance, or appreciation of the arts, and provided that each organization is: 139.10(1) an organization described in section 501(c)(3) of the Internal Revenue Code 139.11in which voluntary contributions make up at least the following new text begin five new text end percent of the 139.12organization's annual revenue in its most recently completed 12-month fiscal year, or in 139.13the current year if the organization has not completed a 12-month fiscal year: new text begin ; new text end 139.14(i) for sales made after July 31, 2001, and before July 1, 2002, for the organization's 139.15fiscal year completed in calendar year 2000, three percent; 139.16(ii) for sales made on or after July 1, 2002, and on or before June 30, 2003, for the 139.17organization's fiscal year completed in calendar year 2001, three percent; 139.18(iii) for sales made on or after July 1, 2003, and on or before June 30, 2004, for the 139.19organization's fiscal year completed in calendar year 2002, four percent; and 139.20(iv) for sales made in each 12-month period, beginning on July 1, 2004, and each 139.21subsequent year, for the organization's fiscal year completed in the preceding calendar 139.22year, five percent; 139.23(2) a municipal board that promotes cultural and arts activities; or 139.24(3) the University of Minnesota, a state college and university, or a private nonprofit 139.25college or university provided that the event is held at a facility owned by the educational 139.26institution holding the event. 139.27The exemption only applies if the entire proceeds, after reasonable expenses, are used 139.28solely to provide opportunities for citizens of the state to participate in the creation, 139.29performance, or appreciation of the arts. 139.30(b) Tickets or admissions to the premises of the Minnesota Zoological Garden are 139.31exempt, provided that the exemption under this paragraph does not apply to tickets or 139.32admissions to performances or events held on the premises unless the performance or 139.33event is sponsored and conducted exclusively by the Minnesota Zoological Board or 139.34employees of the Minnesota Zoological Garden. 140.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 140.2    Sec. 73. Minnesota Statutes 2013 Supplement, section 297A.75, subdivision 1, is 140.3amended to read: 140.4    Subdivision 1. Tax collected. The tax on the gross receipts from the sale of the 140.5following exempt items must be imposed and collected as if the sale were taxable and the 140.6rate under section 297A.62, subdivision 1, applied. The exempt items include: 140.7    (1) building materials for an agricultural processing facility exempt under section 140.8297A.71, subdivision 13 ; 140.9    (2) building materials for mineral production facilities exempt under section 140.10297A.71, subdivision 14 ; 140.11    (3) building materials for correctional facilities under section 297A.71, subdivision 3; 140.12    (4) building materials used in a residence for disabled veterans exempt under section 140.13297A.71, subdivision 11 ; 140.14    (5) elevators and building materials exempt under section 297A.71, subdivision 12; 140.15    (6) building materials for the Long Lake Conservation Center exempt under section 140.16297A.71, subdivision 17; 140.17    (7) new text begin (6) new text end materials and supplies for qualified low-income housing under section 140.18297A.71, subdivision 23 ; 140.19    (8) new text begin (7) new text end materials, supplies, and equipment for municipal electric utility facilities 140.20under section 297A.71, subdivision 35; 140.21    (9) new text begin (8) new text end equipment and materials used for the generation, transmission, and 140.22distribution of electrical energy and an aerial camera package exempt under section 140.23297A.68 , subdivision 37; 140.24    (10) new text begin (9) new text end commuter rail vehicle and repair parts under section 297A.70, subdivision 140.253, paragraph (a), clause (10); 140.26    (11) new text begin (10) new text end materials, supplies, and equipment for construction or improvement of 140.27projects and facilities under section 297A.71, subdivision 40; 140.28(12) new text begin (11) new text end materials, supplies, and equipment for construction or improvement of a 140.29meat processing facility exempt under section 297A.71, subdivision 41; 140.30(13) new text begin (12) new text end materials, supplies, and equipment for construction, improvement, or 140.31expansion of: 140.32(i) an aerospace defense manufacturing facility exempt under section 297A.71, 140.33subdivision 42 ; 140.34(ii) a biopharmaceutical manufacturing facility exempt under section 297A.71, 140.35subdivision 45 ; 141.1(iii) a research and development facility exempt under section 297A.71, subdivision 141.246 ; and 141.3(iv) an industrial measurement manufacturing and controls facility exempt under 141.4section 297A.71, subdivision 47; 141.5(14) new text begin (13) new text end enterprise information technology equipment and computer software for 141.6use in a qualified data center exempt under section 297A.68, subdivision 42; 141.7(15) new text begin (14) new text end materials, supplies, and equipment for qualifying capital projects under 141.8section 297A.71, subdivision 44; 141.9(16) new text begin (15) new text end items purchased for use in providing critical access dental services exempt 141.10under section 297A.70, subdivision 7, paragraph (c); and 141.11(17) new text begin (16) new text end items and services purchased under a business subsidy agreement for use or 141.12consumption primarily in greater Minnesota exempt under section 297A.68, subdivision 44. 141.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 141.14    Sec. 74. Minnesota Statutes 2013 Supplement, section 297A.75, subdivision 2, is 141.15amended to read: 141.16    Subd. 2. Refund; eligible persons. Upon application on forms prescribed by the 141.17commissioner, a refund equal to the tax paid on the gross receipts of the exempt items 141.18must be paid to the applicant. Only the following persons may apply for the refund: 141.19    (1) for subdivision 1, clauses (1), (2), and (16) new text begin (15) new text end , the applicant must be the 141.20purchaser; 141.21    (2) for subdivision 1, clauses new text begin clause new text end (3) and (6), the applicant must be the 141.22governmental subdivision; 141.23    (3) for subdivision 1, clause (4), the applicant must be the recipient of the benefits 141.24provided in United States Code, title 38, chapter 21; 141.25    (4) for subdivision 1, clause (5), the applicant must be the owner of the homestead 141.26property; 141.27    (5) for subdivision 1, clause (7) new text begin (6) new text end , the owner of the qualified low-income housing 141.28project; 141.29    (6) for subdivision 1, clause (8) new text begin (7) new text end , the applicant must be a municipal electric utility 141.30or a joint venture of municipal electric utilities; 141.31    (7) for subdivision 1, clauses (9), (12), (13), (14) new text begin (8), (11), (12), (13) new text end , and (17) new text begin (16) new text end , 141.32the owner of the qualifying business; and 141.33    (8) for subdivision 1, clauses new text begin (9), new text end (10), (11), and (15) new text begin (14) new text end , the applicant must be the 141.34governmental entity that owns or contracts for the project or facility. 142.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 142.2    Sec. 75. Minnesota Statutes 2013 Supplement, section 297A.75, subdivision 3, is 142.3amended to read: 142.4    Subd. 3. Application. (a) The application must include sufficient information 142.5to permit the commissioner to verify the tax paid. If the tax was paid by a contractor, 142.6subcontractor, or builder, under subdivision 1, clauses (3) to (15) new text begin (13) new text end , or (17) new text begin (15) new text end , the 142.7contractor, subcontractor, or builder must furnish to the refund applicant a statement 142.8including the cost of the exempt items and the taxes paid on the items unless otherwise 142.9specifically provided by this subdivision. The provisions of sections 289A.40 and 142.10289A.50 apply to refunds under this section. 142.11    (b) An applicant may not file more than two applications per calendar year for 142.12refunds for taxes paid on capital equipment exempt under section 297A.68, subdivision 5. 142.13    (c) Total refunds for purchases of items in section 297A.71, subdivision 40, must not 142.14exceed $5,000,000 in fiscal years 2010 and 2011. Applications for refunds for purchases 142.15of items in sections 297A.70, subdivision 3, paragraph (a), clause (11), and , 142.16subdivision 40, must not be filed until after June 30, 2009. 142.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 142.18    Sec. 76. Minnesota Statutes 2012, section 297A.94, is amended to read: 142.19297A.94 DEPOSIT OF REVENUES. 142.20(a) Except as provided in this section, the commissioner shall deposit the revenues, 142.21including interest and penalties, derived from the taxes imposed by this chapter in the state 142.22treasury and credit them to the general fund. 142.23(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic 142.24account in the special revenue fund if: 142.25(1) the taxes are derived from sales and use of property and services purchased for 142.26the construction and operation of an agricultural resource project; and 142.27(2) the purchase was made on or after the date on which a conditional commitment 142.28was made for a loan guaranty for the project under section 41A.04, subdivision 3. 142.29The commissioner of management and budget shall certify to the commissioner the date 142.30on which the project received the conditional commitment. The amount deposited in 142.31the loan guaranty account must be reduced by any refunds and by the costs incurred by 142.32the Department of Revenue to administer and enforce the assessment and collection of 142.33the taxes. 143.1(c) The commissioner shall deposit the revenues, including interest and penalties, 143.2derived from the taxes imposed on sales and purchases included in section 297A.61, 143.3subdivision 3 , paragraph (g), clauses (1) and (4), in the state treasury, and credit them 143.4as follows: 143.5(1) first to the general obligation special tax bond debt service account in each fiscal 143.6year the amount required by section 16A.661, subdivision 3, paragraph (b); and 143.7(2) after the requirements of clause (1) have been met, the balance to the general fund. 143.8(d) The commissioner shall deposit the revenues, including interest and penalties, 143.9collected under section 297A.64, subdivision 5, in the state treasury and credit them to the 143.10general fund. By July 15 of each year the commissioner shall transfer to the highway user 143.11tax distribution fund an amount equal to the excess fees collected under section 297A.64, 143.12subdivision 5 , for the previous calendar year. 143.13(e) For fiscal year 2001, 97 percent; for fiscal years 2002 and 2003, 87 percent; and 143.14For fiscal year 2004 and thereafter, 72.43 percent of the revenues, including interest and 143.15penalties, transmitted to the commissioner under section 297A.65, must be deposited by 143.16the commissioner in the state treasury as follows: 143.17(1) 50 percent of the receipts must be deposited in the heritage enhancement account 143.18in the game and fish fund, and may be spent only on activities that improve, enhance, or 143.19protect fish and wildlife resources, including conservation, restoration, and enhancement 143.20of land, water, and other natural resources of the state; 143.21(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and 143.22may be spent only for state parks and trails; 143.23(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and 143.24may be spent only on metropolitan park and trail grants; 143.25(4) three percent of the receipts must be deposited in the natural resources fund, and 143.26may be spent only on local trail grants; and 143.27(5) two percent of the receipts must be deposited in the natural resources fund, 143.28and may be spent only for the Minnesota Zoological Garden, the Como Park Zoo and 143.29Conservatory, and the Duluth Zoo. 143.30(f) The revenue dedicated under paragraph (e) may not be used as a substitute 143.31for traditional sources of funding for the purposes specified, but the dedicated revenue 143.32shall supplement traditional sources of funding for those purposes. Land acquired with 143.33money deposited in the game and fish fund under paragraph (e) must be open to public 143.34hunting and fishing during the open season, except that in aquatic management areas or 143.35on lands where angling easements have been acquired, fishing may be prohibited during 143.36certain times of the year and hunting may be prohibited. At least 87 percent of the money 144.1deposited in the game and fish fund for improvement, enhancement, or protection of fish 144.2and wildlife resources under paragraph (e) must be allocated for field operations. 144.3(g) The revenues deposited under paragraphs (a) to (f) do not include the revenues, 144.4including interest and penalties, generated by the sales tax imposed under section 144.5297A.62, subdivision 1a , which must be deposited as provided under the Minnesota 144.6Constitution, article XI, section 15. 144.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 144.8    Sec. 77. Minnesota Statutes 2012, section 297B.09, is amended to read: 144.9297B.09 ALLOCATION OF REVENUE. 144.10    Subdivision 1. Deposit of revenues. (a) Money collected and received under this 144.11chapter must be deposited as provided in this subdivision. 144.12    (b) From July 1, 2007, through June 30, 2008, 38.25 percent of the money collected 144.13and received must be deposited in the highway user tax distribution fund, 24 percent must 144.14be deposited in the metropolitan area transit account under section , and 1.5 percent 144.15must be deposited in the greater Minnesota transit account under section . The 144.16remaining money must be deposited in the general fund. 144.17    (c) From July 1, 2008, through June 30, 2009, 44.25 percent of the money collected 144.18and received must be deposited in the highway user tax distribution fund, 27.75 percent 144.19must be deposited in the metropolitan area transit account under section , 1.75 144.20percent must be deposited in the greater Minnesota transit account under section , 144.21and the remaining money must be deposited in the general fund. 144.22(d) From July 1, 2009, through June 30, 2010, 47.5 percent of the money collected 144.23and received must be deposited in the highway user tax distribution fund, 30 percent 144.24must be deposited in the metropolitan area transit account under section , 3.5 144.25percent must be deposited in the greater Minnesota transit account under section , 144.26and 16.25 percent must be deposited in the general fund. The remaining amount must 144.27be deposited as follows: 144.28(1) 1.5 percent in the metropolitan area transit account, except that any amount in 144.29excess of $6,000,000 must be deposited in the highway user tax distribution fund; and 144.30(2) 1.25 percent in the greater Minnesota transit account, except that any amount in 144.31excess of $5,000,000 must be deposited in the highway user tax distribution fund. 144.32(e) From July 1, 2010, through June 30, 2011, 54.5 percent of the money collected 144.33and received must be deposited in the highway user tax distribution fund, 33.75 percent 144.34must be deposited in the metropolitan area transit account under section , 3.75 145.1percent must be deposited in the greater Minnesota transit account under section , 145.2and 6.25 percent must be deposited in the general fund. The remaining amount must 145.3be deposited as follows: 145.4(1) 1.5 percent in the metropolitan area transit account, except that any amount in 145.5excess of $6,750,000 must be deposited in the highway user tax distribution fund; and 145.6(2) 0.25 percent in the greater Minnesota transit account, except that any amount in 145.7excess of $1,250,000 must be deposited in the highway user tax distribution fund. 145.8    (f) On and after July 1, 2011, new text begin (b) new text end 60 percent of the money collected and received 145.9must be deposited in the highway user tax distribution fund, 36 percent must be deposited 145.10in the metropolitan area transit account under section 16A.88, and four percent must be 145.11deposited in the greater Minnesota transit account under section 16A.88. 145.12(g) new text begin (c) new text end It is the intent of the legislature that the allocations under paragraph (f) new text begin (b) new text end 145.13 remain unchanged for fiscal year 2012 and all subsequent fiscal years. 145.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 145.15    Sec. 78. Minnesota Statutes 2012, section 297F.03, subdivision 2, is amended to read: 145.16    Subd. 2. Form of application. Every application for a cigarette or tobacco products 145.17license shall be made on a form prescribed by the commissioner and shall state the name 145.18and address of the applicant; if the applicant is a firm, partnership, or association, the name 145.19and address of each of its members; if the applicant is a corporation, the name and address 145.20of each of its officers; the address of its principal place of business; the place where the 145.21business to be licensed is to be conducted; and any other information the commissioner 145.22may require for the administration of this chapter. 145.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 145.24    Sec. 79. Minnesota Statutes 2012, section 297I.05, subdivision 14, is amended to read: 145.25    Subd. 14. Life insurance. A tax is imposed on life insurance. The rate of tax equals 145.26a percentage new text begin 1.5 percent new text end of gross premiums less return premiums on all direct business 145.27received by the insurer or agents of the insurer in Minnesota for life insurance, in cash or 145.28otherwise, during the year. For premiums received after December 31, 2005, but before 145.29January 1, 2007, the rate of tax is 1.875 percent. For premiums received after December 145.3031, 2006, but before January 1, 2008, the rate of tax is 1.75 percent. For premiums 145.31received after December 31, 2007, but before January 1, 2009, the rate of tax is 1.625 145.32percent. For premiums received after December 31, 2008, the rate of tax is 1.5 percent. 145.33 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 146.1    Sec. 80. Minnesota Statutes 2012, section 412.131, is amended to read: 146.2412.131 ASSESSOR; DUTIES, COMPENSATION. 146.3The city assessor, if there is one, shall assess and return as provided by law all 146.4property taxable within the city, if a separate assessment district, and the assessor of the 146.5town within which the city lies shall not include in the return any property taxable in the 146.6city. Any assessor may appoint a deputy assessor as provided in section 273.06. The 146.7assessor may be compensated on a full-time or part-time basis at the option of the council 146.8but the compensation shall be not less than $100 in any one year, if fixed on an annual 146.9basis, or not more than $20 per day, if fixed on a per diem basis. If the compensation is 146.10not fixed by the council the assessor shall be entitled to compensation at the rate of $20 146.11per day for each days service necessarily rendered, and mileage at the rate paid other city 146.12officers for each mile necessarily traveled in going to and returning from the county seat of 146.13the county to attend any meeting of the assessors of the county legally called by the county 146.14auditor, and also for each mile necessarily traveled in making the return of assessment 146.15to the proper county officer and in attending sectional meetings called by the county 146.16assessor, except when mileage is paid by the county. In addition to other compensation, 146.17the council may allow the assessor mileage at the same rate per mile as paid other city 146.18officers for each mile necessarily traveled in assessment work. 146.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 146.20    Sec. 81. Minnesota Statutes 2013 Supplement, section 423A.022, subdivision 3, 146.21is amended to read: 146.22    Subd. 3. Reporting; definitions. (a) On or before September 1, annually, the 146.23executive director of the Public Employees Retirement Association shall report to the 146.24commissioner of revenue the following: 146.25    (1) the municipalities which employ firefighters with retirement coverage by the 146.26public employees police and fire retirement plan; 146.27    (2) the number of firefighters with public employees police and fire retirement plan 146.28coverage employed by each municipality; 146.29    (3) new text begin (2) new text end the fire departments covered by the voluntary statewide lump-sum volunteer 146.30firefighter retirement plan; and 146.31    (4) new text begin (3) new text end any other information requested by the commissioner to administer the police 146.32and firefighter retirement supplemental state aid program. 146.33    (b) For this subdivision, (i) the number of firefighters employed by a municipality 146.34who have public employees police and fire retirement plan coverage means the number 147.1of firefighters with public employees police and fire retirement plan coverage that were 147.2employed by the municipality for not less than 30 hours per week for a minimum of six 147.3months prior to December 31 preceding the date of the payment under this section and, if 147.4the person was employed for less than the full year, prorated to the number of full months 147.5employed; and (ii) the number of active police officers certified for police state aid receipt 147.6under section 69.011, subdivisions 2 and 2b, means, for each municipality, the number of 147.7police officers meeting the definition of peace officer in section 69.011, subdivision 1, 147.8counted as provided and limited by section 69.011, subdivisions 2 and 2b. 147.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 147.10    Sec. 82. Minnesota Statutes 2012, section 469.176, subdivision 1b, is amended to read: 147.11    Subd. 1b. Duration limits; terms. (a) No tax increment shall in any event be 147.12paid to the authority: 147.13(1) after 15 years after receipt by the authority of the first increment for a renewal 147.14and renovation district; 147.15(2) after 20 years after receipt by the authority of the first increment for a soils 147.16condition district; 147.17(3) after eight years after receipt by the authority of the first increment for an 147.18economic development district; 147.19(4) for a housing district, a compact development district, or a redevelopment 147.20district, after 25 years from the date of receipt by the authority of the first increment. 147.21(b) For purposes of determining a duration limit under this subdivision or subdivision 147.221e that is based on the receipt of an increment, any increments from taxes payable in the year 147.23in which the district terminates shall be paid to the authority. This paragraph does not affect 147.24a duration limit calculated from the date of approval of the tax increment financing plan or 147.25based on the recovery of costs or to a duration limit under subdivision 1c. This paragraph 147.26does not supersede the restrictions on payment of delinquent taxes in subdivision 1f. 147.27(c) An action by the authority to waive or decline to accept an increment has no 147.28effect for purposes of computing a duration limit based on the receipt of increment under 147.29this subdivision or any other provision of law. The authority is deemed to have received an 147.30increment for any year in which it waived or declined to accept an increment, regardless 147.31of whether the increment was paid to the authority. 147.32(d) Receipt by a hazardous substance subdistrict of an increment as a result of a 147.33reduction in original net tax capacity under section 469.174, subdivision 7, paragraph 147.34(b), does not constitute receipt of increment by the overlying district for the purpose of 147.35calculating the duration limit under this section. 148.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 148.2    Sec. 83. Minnesota Statutes 2012, section 469.176, subdivision 3, is amended to read: 148.3    Subd. 3. Limitation on administrative expenses. (a) For districts for which 148.4certification was requested before August 1, 1979, or after June 30, 1982 and before 148.5 August 1, 2001, no tax increment shall be used to pay any administrative expenses for 148.6a project which exceed ten percent of the total estimated tax increment expenditures 148.7authorized by the tax increment financing plan or the total tax increment expenditures 148.8for the project, whichever is less. 148.9(b) For districts for which certification was requested after July 31, 1979, and before 148.10July 1, 1982, no tax increment shall be used to pay administrative expenses, as defined in 148.11Minnesota Statutes 1980, section , for a district which exceeds five percent of the 148.12total tax increment expenditures authorized by the tax increment financing plan or the total 148.13estimated tax increment expenditures for the district, whichever is less. 148.14(c) new text begin (b) new text end For districts for which certification was requested after July 31, 2001, no tax 148.15increment may be used to pay any administrative expenses for a project which exceed 148.16ten percent of total estimated tax increment expenditures authorized by the tax increment 148.17financing plan or the total tax increments, as defined in section 469.174, subdivision 25, 148.18clause (1), from the district, whichever is less. 148.19(d) new text begin (c) new text end Increments used to pay the county's administrative expenses under 148.20subdivision 4h are not subject to the percentage limits in this subdivision. 148.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 148.22    Sec. 84. Minnesota Statutes 2013 Supplement, section 469.1763, subdivision 2, 148.23is amended to read: 148.24    Subd. 2. Expenditures outside district. (a) For each tax increment financing 148.25district, an amount equal to at least 75 percent of the total revenue derived from tax 148.26increments paid by properties in the district must be expended on activities in the district 148.27or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities 148.28in the district or to pay, or secure payment of, debt service on credit enhanced bonds. 148.29For districts, other than redevelopment districts for which the request for certification 148.30was made after June 30, 1995, the in-district percentage for purposes of the preceding 148.31sentence is 80 percent. Not more than 25 percent of the total revenue derived from tax 148.32increments paid by properties in the district may be expended, through a development fund 148.33or otherwise, on activities outside of the district but within the defined geographic area of 148.34the project except to pay, or secure payment of, debt service on credit enhanced bonds. 149.1For districts, other than redevelopment districts for which the request for certification was 149.2made after June 30, 1995, the pooling percentage for purposes of the preceding sentence is 149.320 percent. The revenue derived from tax increments for the district that are expended on 149.4costs under section 469.176, subdivision 4h, paragraph (b), may be deducted first before 149.5calculating the percentages that must be expended within and without the district. 149.6    (b) In the case of a housing district, a housing project, as defined in section 469.174, 149.7subdivision 11 , is an activity in the district. 149.8    (c) All administrative expenses are for activities outside of the district, except that 149.9if the only expenses for activities outside of the district under this subdivision are for 149.10the purposes described in paragraph (d), administrative expenses will be considered as 149.11expenditures for activities in the district. 149.12    (d) The authority may elect, in the tax increment financing plan for the district, 149.13to increase by up to ten percentage points the permitted amount of expenditures for 149.14activities located outside the geographic area of the district under paragraph (a). As 149.15permitted by section 469.176, subdivision 4k, the expenditures, including the permitted 149.16expenditures under paragraph (a), need not be made within the geographic area of the 149.17project. Expenditures that meet the requirements of this paragraph are legally permitted 149.18expenditures of the district, notwithstanding section 469.176, subdivisions 4b, 4c, and 4j. 149.19To qualify for the increase under this paragraph, the expenditures must: 149.20    (1) be used exclusively to assist housing that meets the requirement for a qualified 149.21low-income building, as that term is used in section 42 of the Internal Revenue Code; and 149.22    (2) not exceed the qualified basis of the housing, as defined under section 42(c) of 149.23the Internal Revenue Code, less the amount of any credit allowed under section 42 of 149.24the Internal Revenue Code; and 149.25    (3) be used to: 149.26    (i) acquire and prepare the site of the housing; 149.27    (ii) acquire, construct, or rehabilitate the housing; or 149.28    (iii) make public improvements directly related to the housing; or 149.29(4) be used to develop housing: 149.30(i) if the market value of the housing does not exceed the lesser of: 149.31(A) 150 percent of the average market value of single-family homes in that 149.32municipality; or 149.33(B) $200,000 for municipalities located in the metropolitan area, as defined in 149.34section 473.121, or $125,000 for all other municipalities; and 149.35(ii) if the expenditures are used to pay the cost of site acquisition, relocation, 149.36demolition of existing structures, site preparation, and pollution abatement on one or 150.1more parcels, if the parcel contains a residence containing one to four family dwelling 150.2units that has been vacant for six or more months and is in foreclosure as defined in 150.3section 325N.10, subdivision 7, but without regard to whether the residence is the owner's 150.4principal residence, and only after the redemption period has expired. 150.5    (e) For a district created within a biotechnology and health sciences industry zone 150.6as defined in new text begin Minnesota Statutes 2012, new text end section 469.330, subdivision 6, or for an existing 150.7district located within such a zone, tax increment derived from such a district may be 150.8expended outside of the district but within the zone only for expenditures required for the 150.9construction of public infrastructure necessary to support the activities of the zone, land 150.10acquisition, and other redevelopment costs as defined in section 469.176, subdivision 4j. 150.11These expenditures are considered as expenditures for activities within the district. new text begin The new text end 150.12 new text begin authority provided by this paragraph expires for expenditures made after the later of (1) new text end 150.13 new text begin December 31, 2015, or (2) the end of the five-year period beginning on the date the district new text end 150.14 new text begin was certified, provided that date was before January 1, 2016. new text end 150.15(f) The authority under paragraph (d), clause (4), expires on December 31, 2016. 150.16Increments may continue to be expended under this authority after that date, if they are 150.17used to pay bonds or binding contracts that would qualify under subdivision 3, paragraph 150.18(a), if December 31, 2016, is considered to be the last date of the five-year period after 150.19certification under that provision. 150.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment new text end 150.21 new text begin and applies to all districts, regardless of when the request for certification was made. new text end 150.22    Sec. 85. Minnesota Statutes 2012, section 473.665, subdivision 5, is amended to read: 150.23    Subd. 5. Tax levy; surplus; reduction. The corporation, upon issuing any bonds 150.24under the provisions of this section, shall, before the issuance thereof, levy for each year, 150.25until the principal and interest are paid in full, a direct annual tax on all the taxable property 150.26of the cities in and for which the corporation has been created in an amount not less than 150.27five percent in excess of the sum required to pay the principal and interest thereof, when 150.28and as such principal and interest matures. After any of such bonds have been delivered to 150.29purchasers, such tax shall be irrepealable until all such indebtedness is paid, and after the 150.30issuance of such bonds no further action of the corporation shall be necessary to authorize 150.31the extensions, assessments, and collection of such tax. The secretary of the corporation 150.32shall forthwith furnish a certified copy of such levy to the county auditor or county 150.33auditors of the county or counties in which the cities in and for which the corporation has 150.34been created are located, together with full information regarding the bonds for which the 150.35tax is levied, and such county auditor or such county auditors, as the case may be, shall 151.1enter the same in the register provided for in section 475.62, or a similar register, and shall 151.2extend and assess the tax so levied. If both cities are located wholly within one county, the 151.3county auditor thereof shall annually extend and assess the amount of the tax so levied. If 151.4the cities are located in different counties, the county auditor of each such county shall 151.5annually extend and assess such portion of the tax levied as the net tax capacity of the 151.6taxable property, not including moneys and credits, located wholly within the city in such 151.7county bears to the total net tax capacity of the taxable property, not including moneys and 151.8credits, within both cities. Any surplus resulting from the excess levy herein provided 151.9for shall be transferred to a sinking fund after the principal and interest for which the tax 151.10was levied and collected has been paid; provided, that the corporation may, on or before 151.11October 15 in any year, by appropriate action, cause its secretary to certify to the county 151.12auditor, or auditors, the amount on hand and available in its treasury from earnings, or 151.13otherwise, including the amount in the sinking fund, which it will use to pay principal or 151.14interest or both on each specified issue of its bonds, and the county auditor or auditors 151.15shall reduce the levy for that year, herein provided for by that amount. The amount of 151.16funds so certified shall be set aside by the corporation, and be used for no other purpose 151.17than for the payment of the principal and interest of the bonds. All taxes hereunder shall 151.18be collected and remitted to the corporation by the county treasurer or county treasurers, 151.19in accordance with the provisions of law governing the collection of other taxes, and shall 151.20be used solely for the payment of the bonds where due. 151.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 151.22    Sec. 86. Minnesota Statutes 2012, section 477A.0124, subdivision 5, is amended to 151.23read: 151.24    Subd. 5. County transition aid. (a) For 2009 and each year thereafter, A county is 151.25eligible to receive the transition aid it received in 2007. 151.26    (b) In 2009 only, a county with (1) a 2006 population less than 30,000, and (2) 151.27an average Part I crimes per capita greater than 3.9 percent based on factors used in 151.28determining county program aid payable in 2008, shall receive $100,000. 151.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 151.30    Sec. 87. Minnesota Statutes 2012, section 477A.014, subdivision 1, is amended to read: 151.31    Subdivision 1. Calculations and payments. (a) The commissioner of revenue shall 151.32make all necessary calculations and make payments pursuant to sections 477A.013 and 151.33477A.03 directly to the affected taxing authorities annually. In addition, the commissioner 152.1shall notify the authorities of their aid amounts, as well as the computational factors used 152.2in making the calculations for their authority, and those statewide total figures that are 152.3pertinent, before August 1 of the year preceding the aid distribution year. 152.4(b) For the purposes of this subdivision, aid is determined for a city or town based 152.5on its city or town status as of June 30 of the year preceding the aid distribution year. If 152.6the effective date for a municipal incorporation, consolidation, annexation, detachment, 152.7dissolution, or township organization is on or before June 30 of the year preceding 152.8the aid distribution year, such change in boundaries or form of government shall be 152.9recognized for aid determinations for the aid distribution year. If the effective date for a 152.10municipal incorporation, consolidation, annexation, detachment, dissolution, or township 152.11organization is after June 30 of the year preceding the aid distribution year, such change in 152.12boundaries or form of government shall not be recognized for aid determinations until 152.13the following year. 152.14(c) Changes in boundaries or form of government will only be recognized for the 152.15purposes of this subdivision, to the extent that: (1) changes in market values are included 152.16in market values reported by assessors to the commissioner, and changes in population, 152.17 new text begin and new text end household size, and the road accidents factor are included in their respective 152.18certifications to the commissioner as referenced in section 477A.011, or (2) an annexation 152.19information report as provided in paragraph (d) is received by the commissioner on 152.20or before July 15 of the aid calculation year. Revisions to estimates or data for use in 152.21recognizing changes in boundaries or form of government are not effective for purposes 152.22of this subdivision unless received by the commissioner on or before July 15 of the aid 152.23calculation year. Clerical errors in the certification or use of estimates and data established 152.24as of July 15 in the aid calculation year are subject to correction within the time periods 152.25allowed under subdivision 3. 152.26(d) In the case of an annexation, an annexation information report may be completed 152.27by the annexing jurisdiction and submitted to the commissioner for purposes of this 152.28subdivision if the net tax capacity of annexed area for the assessment year preceding the 152.29effective date of the annexation exceeds five percent of the city's net tax capacity for the 152.30same year. The form and contents of the annexation information report shall be prescribed 152.31by the commissioner. The commissioner shall change the net tax capacity, the population, 152.32the population decline, the commercial industrial percentage, and the transformed 152.33population for the annexing jurisdiction only if the annexation information report provides 152.34data the commissioner determines to be reliable for all of these factors used to compute city 152.35revenue need for the annexing jurisdiction. The commissioner shall adjust the pre-1940 152.36housing percentage, the road accidents factor, and household size only if the entire area of 153.1an existing city or town is annexed or consolidated and only if reliable data is available for 153.2all of these factors used to compute city revenue need for the annexing jurisdiction. 153.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 153.4    Sec. 88. Minnesota Statutes 2012, section 611.27, subdivision 13, is amended to read: 153.5    Subd. 13. Public defense services; correctional facility inmates. All billings 153.6for services rendered and ordered under subdivision 7 shall require the approval of the 153.7chief district public defender before being forwarded on a monthly basis to the state 153.8public defender. In cases where adequate representation cannot be provided by the district 153.9public defender and where counsel has been appointed under a court order, the state 153.10public defender shall forward to the commissioner of management and budget all billings 153.11for services rendered under the court order. The commissioner shall pay for services 153.12from county program aid retained by the commissioner of revenue for that purpose under 153.13section 477A.0124, subdivision 1, clause (4), or 477A.03, subdivision 2b, paragraph (a). 153.14    The costs of appointed counsel and associated services in cases arising from new 153.15criminal charges brought against indigent inmates who are incarcerated in a Minnesota 153.16state correctional facility are the responsibility of the state Board of Public Defense. In 153.17such cases the state public defender may follow the procedures outlined in this section for 153.18obtaining court-ordered counsel. 153.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 153.20    Sec. 89. Minnesota Statutes 2012, section 611.27, subdivision 15, is amended to read: 153.21    Subd. 15. Costs of transcripts. In appeal cases and postconviction cases where 153.22the appellate public defender's office does not have sufficient funds to pay for transcripts 153.23and other necessary expenses because it has spent or committed all of the transcript 153.24funds in its annual budget, the state public defender may forward to the commissioner 153.25of management and budget all billings for transcripts and other necessary expenses. The 153.26commissioner shall pay for these transcripts and other necessary expenses from county 153.27program aid retained by the commissioner of revenue for that purpose under section 153.28477A.0124, subdivision 1, clause (4), or 477A.03, subdivision 2b, paragraph (a). 153.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 153.30    Sec. 90. new text begin REVISOR'S INSTRUCTION. new text end 153.31 new text begin The revisor of statutes shall make all necessary cross-reference changes in new text end 153.32 new text begin Minnesota Statutes and Minnesota Rules consistent with the amendments and repealers in new text end 154.1 new text begin this act. The revisor can make changes to sentence structure to preserve the meaning of new text end 154.2 new text begin the text. The revisor shall make other changes in chapter titles; section, subdivision, part, new text end 154.3 new text begin and subpart headnotes; and in other terminology necessary as a result of the enactment of new text end 154.4 new text begin this act. The Department of Revenue shall assist in making these corrections. new text end 154.5    Sec. 91. new text begin REPEALER. new text end 154.6 new text begin (a) new text end new text begin Minnesota Statutes 2012, sections 290.01, subdivision 19e; 290.0674, new text end 154.7 new text begin subdivision 3; and 290.33, new text end new text begin and new text end new text begin Minnesota Rules, part 8007.0200, new text end new text begin are repealed. new text end 154.8 new text begin (b) new text end new text begin Minnesota Statutes 2012, sections 16D.02, subdivisions 5 and 8; 16D.11, new text end 154.9 new text begin subdivision 2; 270C.131; 270C.53; 270C.991, subdivision 4; 272.02, subdivisions 1, 1a, new text end 154.10 new text begin 48, 51, 53, 67, 72, and 82; 272.027, subdivision 2; 272.031; 273.015, subdivision 1; new text end 154.11 new text begin 273.03, subdivision 3; 273.075; 273.1383; 273.1386; 273.80; 275.77; 279.32; 281.173, new text end 154.12 new text begin subdivision 8; 281.174, subdivision 8; 281.328; 282.10; 282.23; 287.20, subdivision 4; new text end 154.13 new text begin 287.27, subdivision 2; 290.01, subdivisions 4b and 20e; 295.52, subdivision 7; 297A.71, new text end 154.14 new text begin subdivisions 4, 5, 7, 10, 17, 18, 20, and 32; 297F.08, subdivision 11; 297H.10, subdivision new text end 154.15 new text begin 2; 469.174, subdivision 10c; 469.175, subdivision 2b; 469.176, subdivision 1i; 469.177, new text end 154.16 new text begin subdivision 10; 477A.0124, subdivisions 1 and 6; and 505.173, new text end new text begin and new text end new text begin Minnesota Rules, new text end 154.17 new text begin parts 8002.0200, subpart 8; 8100.0800; 8130.7500, subpart 7; 8130.8900, subpart 3; and new text end 154.18 new text begin 8130.9500, subparts 1, 1a, 2, 3, 4, and 5, new text end new text begin are repealed. new text end 154.19 new text begin (c) new text end new text begin Minnesota Statutes 2012, section 3.192, new text end new text begin is repealed. new text end 154.20 new text begin (d) new text end new text begin Minnesota Statutes 2012, section 469.1764, new text end new text begin and new text end new text begin Minnesota Statutes 2013 new text end 154.21 new text begin Supplement, section 469.340, subdivision 4, new text end new text begin are repealed. new text end 154.22 new text begin (e) new text end new text begin Minnesota Statutes 2012, sections 289A.56, subdivision 7; 290.06, subdivisions new text end 154.23 new text begin 30 and 31; 297A.68, subdivision 38; 469.330; 469.331; 469.332; 469.333; 469.334; new text end 154.24 new text begin 469.335; 469.336; 469.337; 469.338; 469.339; 469.340, subdivisions 1, 2, 3, and 5; and new text end 154.25 new text begin 469.341, new text end new text begin are repealed. new text end 154.26 new text begin EFFECTIVE DATE. new text end new text begin Paragraph (a) is effective for taxable years beginning after new text end 154.27 new text begin December 31, 2013. new text end 154.28 new text begin Paragraph (b) is effective the day following final enactment. new text end 154.29 new text begin Paragraph (c) is effective retroactively from April 1, 2014. new text end 154.30 new text begin Paragraph (d) is effective the day following final enactment and any remaining new text end 154.31 new text begin unexpended tax increments from a district subject to Minnesota Statutes, section 469.1764, new text end 154.32 new text begin must be distributed as excess increments to the city, county, and school district under new text end 154.33 new text begin Minnesota Statutes, section 469.176, subdivision 2, paragraph (c), clause (4), on or before new text end 154.34 new text begin December 31, 2014. new text end 154.35 new text begin Paragraph (e) is effective January 1, 2016. new text end 155.1ARTICLE 8 155.2DEPARTMENT POLICY AND TECHNICAL; PROPERTY 155.3    Section 1. Minnesota Statutes 2012, section 270.87, is amended to read: 155.4270.87 CERTIFICATION TO COUNTY ASSESSORS. 155.5After making an annual determination of the equalized fair market value of the 155.6operating property of each company in each of the respective counties, and in the taxing 155.7districts therein, the commissioner shall certify the equalized fair market value to the 155.8county assessor on or before June 30. The equalized fair market value of the operating 155.9property of the railroad company in the county and the taxing districts therein is the value 155.10on which taxes must be levied and collected in the same manner as on the commercial and 155.11industrial property of such county and the taxing districts therein. If the commissioner 155.12determines that the equalized fair market value certified on or before June 30 is in error, 155.13the commissioner may issue a corrected certification on or before August 31. new text begin The new text end 155.14 new text begin commissioner may correct errors that are merely clerical in nature until December 31. new text end 155.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 155.16    Sec. 2. Minnesota Statutes 2012, section 272.029, subdivision 4a, is amended to read: 155.17    Subd. 4a. Correction of errors. If the commissioner of revenue determines that 155.18the amount of production tax has been erroneously calculated, the commissioner may 155.19correct the error. The commissioner must notify the owner of the wind energy conversion 155.20system of the correction and the amount of tax due to each county and must certify the 155.21correction to the county auditor of each county in which the system is located on or before 155.22April 1 of the current year. new text begin The commissioner may correct errors that are merely clerical new text end 155.23 new text begin in nature until December 31. new text end 155.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 155.25    Sec. 3. Minnesota Statutes 2012, section 273.01, is amended to read: 155.26273.01 LISTING AND ASSESSMENT, TIME. 155.27All real property subject to taxation shall be listed and at least one-fifth of the parcels 155.28listed shall be appraised each year with reference to their value on January 2 preceding the 155.29assessment so that each parcel shall be reappraised at maximum intervals of five years. All 155.30real property becoming taxable in any year shall be listed with reference to its value on 155.31January 2 of that year. Except as provided in this section and section 274.01, subdivision 155.321 , all real property assessments shall be completed two weeks prior to the date scheduled 156.1for the local board of review or equalization. No changes in valuation or classification 156.2which are intended to correct errors in judgment by the county assessor may be made by 156.3the county assessor after the board of review or the county board of equalization has 156.4adjourned; however, corrections of errors new text begin for real or personal property new text end that are merely 156.5clerical in nature or changes that extend homestead treatment to property are permitted 156.6after adjournment until the tax extension date for that assessment year. Any changes made 156.7by the assessor after adjournment must be fully documented and maintained in a file in the 156.8assessor's office and shall be available for review by any person. A copy of any changes 156.9made during this period shall be sent to the county board no later than December 31 of 156.10the assessment year. In the event a valuation and classification is not placed on any real 156.11property by the dates scheduled for the local board of review or equalization the valuation 156.12and classification determined in the preceding assessment shall be continued in effect and 156.13the provisions of section 273.13 shall, in such case, not be applicable, except with respect 156.14to real estate which has been constructed since the previous assessment. Real property 156.15containing iron ore, the fee to which is owned by the state of Minnesota, shall, if leased by 156.16the state after January 2 in any year, be subject to assessment for that year on the value of 156.17any iron ore removed under said lease prior to January 2 of the following year. Personal 156.18property subject to taxation shall be listed and assessed annually with reference to its value 156.19on January 2; and, if acquired on that day, shall be listed by or for the person acquiring it. 156.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 156.21    Sec. 4. Minnesota Statutes 2012, section 273.13, subdivision 22, is amended to read: 156.22    Subd. 22. Class 1. (a) Except as provided in subdivision 23 and in paragraphs (b) 156.23and (c), real estate which is residential and used for homestead purposes is class 1a. In the 156.24case of a duplex or triplex in which one of the units is used for homestead purposes, the 156.25entire property is deemed to be used for homestead purposes. The market value of class 1a 156.26property must be determined based upon the value of the house, garage, and land. 156.27    The first $500,000 of market value of class 1a property has a net class new text begin classification new text end 156.28 rate of one percent of its market value; and the market value of class 1a property that 156.29exceeds $500,000 has a class new text begin classification new text end rate of 1.25 percent of its market value. 156.30    (b) Class 1b property includes homestead real estate or homestead manufactured 156.31homes used for the purposes of a homestead by: 156.32    (1) any person who is blind as defined in section 256D.35, or the blind person and 156.33the blind person's spouse; 156.34    (2) any person who is permanently and totally disabled or by the disabled person and 156.35the disabled person's spouse; or 157.1    (3) the surviving spouse of a permanently and totally disabled veteran homesteading 157.2a property classified under this paragraph for taxes payable in 2008. 157.3    Property is classified and assessed under clause (2) only if the government agency or 157.4income-providing source certifies, upon the request of the homestead occupant, that the 157.5homestead occupant satisfies the disability requirements of this paragraph, and that the 157.6property is not eligible for the valuation exclusion under subdivision 34. 157.7    Property is classified and assessed under paragraph (b) only if the commissioner 157.8of revenue or the county assessor certifies that the homestead occupant satisfies the 157.9requirements of this paragraph. 157.10    Permanently and totally disabled for the purpose of this subdivision means a 157.11condition which is permanent in nature and totally incapacitates the person from working 157.12at an occupation which brings the person an income. The first $50,000 market value of 157.13class 1b property has a net class new text begin classification new text end rate of .45 percent of its market value. The 157.14remaining market value of class 1b property has a class new text begin classification new text end rate using the rates 157.15for class 1a or class 2a property, whichever is appropriate, of similar market value. 157.16    (c) Class 1c property is commercial use real and personal property that abuts public 157.17water as defined in section 103G.005, subdivision 15, and is devoted to temporary and 157.18seasonal residential occupancy for recreational purposes but not devoted to commercial 157.19purposes for more than 250 days in the year preceding the year of assessment, and that 157.20includes a portion used as a homestead by the owner, which includes a dwelling occupied 157.21as a homestead by a shareholder of a corporation that owns the resort, a partner in a 157.22partnership that owns the resort, or a member of a limited liability company that owns the 157.23resort even if the title to the homestead is held by the corporation, partnership, or limited 157.24liability company. For purposes of this paragraph, property is devoted to a commercial 157.25purpose on a specific day if any portion of the property, excluding the portion used 157.26exclusively as a homestead, is used for residential occupancy and a fee is charged for 157.27residential occupancy. Class 1c property must contain three or more rental units. A "rental 157.28unit" is defined as a cabin, condominium, townhouse, sleeping room, or individual camping 157.29site equipped with water and electrical hookups for recreational vehicles. Class 1c property 157.30must provide recreational activities such as the rental of ice fishing houses, boats and 157.31motors, snowmobiles, downhill or cross-country ski equipment; provide marina services, 157.32launch services, or guide services; or sell bait and fishing tackle. Any unit in which the 157.33right to use the property is transferred to an individual or entity by deeded interest, or the 157.34sale of shares or stock, no longer qualifies for class 1c even though it may remain available 157.35for rent. A camping pad offered for rent by a property that otherwise qualifies for class 1c 157.36is also class 1c, regardless of the term of the rental agreement, as long as the use of the 158.1camping pad does not exceed 250 days. If the same owner owns two separate parcels that 158.2are located in the same township, and one of those properties is classified as a class 1c 158.3property and the other would be eligible to be classified as a class 1c property if it was 158.4used as the homestead of the owner, both properties will be assessed as a single class 1c 158.5property; for purposes of this sentence, properties are deemed to be owned by the same 158.6owner if each of them is owned by a limited liability company, and both limited liability 158.7companies have the same membership. The portion of the property used as a homestead 158.8is class 1a property under paragraph (a). The remainder of the property is classified as 158.9follows: the first $600,000 of market value is tier I, the next $1,700,000 of market value is 158.10tier II, and any remaining market value is tier III. The class new text begin classification new text end rates for class 1c 158.11are: tier I, 0.50 percent; tier II, 1.0 percent; and tier III, 1.25 percent. Owners of real and 158.12personal property devoted to temporary and seasonal residential occupancy for recreation 158.13purposes in which all or a portion of the property was devoted to commercial purposes for 158.14not more than 250 days in the year preceding the year of assessment desiring classification 158.15as class 1c, must submit a declaration to the assessor designating the cabins or units 158.16occupied for 250 days or less in the year preceding the year of assessment by January 15 of 158.17the assessment year. Those cabins or units and a proportionate share of the land on which 158.18they are located must be designated as class 1c as otherwise provided. The remainder of 158.19the cabins or units and a proportionate share of the land on which they are located must be 158.20designated as class 3a commercial. The owner of property desiring designation as class 158.211c property must provide guest registers or other records demonstrating that the units for 158.22which class 1c designation is sought were not occupied for more than 250 days in the 158.23year preceding the assessment if so requested. The portion of a property operated as a 158.24(1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5) other 158.25nonresidential facility operated on a commercial basis not directly related to temporary 158.26and seasonal residential occupancy for recreation purposes does not qualify for class 1c. 158.27    (d) Class 1d property includes structures that meet all of the following criteria: 158.28    (1) the structure is located on property that is classified as agricultural property under 158.29section 273.13, subdivision 23; 158.30    (2) the structure is occupied exclusively by seasonal farm workers during the time 158.31when they work on that farm, and the occupants are not charged rent for the privilege of 158.32occupying the property, provided that use of the structure for storage of farm equipment 158.33and produce does not disqualify the property from classification under this paragraph; 158.34    (3) the structure meets all applicable health and safety requirements for the 158.35appropriate season; and 159.1    (4) the structure is not salable as residential property because it does not comply 159.2with local ordinances relating to location in relation to streets or roads. 159.3    The market value of class 1d property has the same class rates as class 1a property 159.4under paragraph (a) new text begin a classification rate of one percent on the first $500,000 of market new text end 159.5 new text begin value and a classification rate of 1.25 percent on the market value that exceeds $500,000 new text end . 159.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with assessment year 2014. new text end 159.7    Sec. 5. Minnesota Statutes 2013 Supplement, section 273.13, subdivision 25, is 159.8amended to read: 159.9    Subd. 25. Class 4. (a) Class 4a is residential real estate containing four or more 159.10units and used or held for use by the owner or by the tenants or lessees of the owner 159.11as a residence for rental periods of 30 days or more, excluding property qualifying for 159.12class 4d. Class 4a also includes hospitals licensed under sections 144.50 to 144.56, other 159.13than hospitals exempt under section 272.02, and contiguous property used for hospital 159.14purposes, without regard to whether the property has been platted or subdivided. The 159.15market value of class 4a property has a class new text begin classification new text end rate of 1.25 percent. 159.16    (b) Class 4b includes: 159.17    (1) residential real estate containing less than four units that does not qualify as class 159.184bb, other than seasonal residential recreational property; 159.19    (2) manufactured homes not classified under any other provision; 159.20    (3) a dwelling, garage, and surrounding one acre of property on a nonhomestead 159.21farm classified under subdivision 23, paragraph (b) containing two or three units; and 159.22    (4) unimproved property that is classified residential as determined under subdivision 159.2333. 159.24    The market value of class 4b property has a class new text begin classification new text end rate of 1.25 percent. 159.25    (c) Class 4bb includes nonhomestead residential real estate containing one unit, 159.26other than seasonal residential recreational property, and a single family dwelling, garage, 159.27and surrounding one acre of property on a nonhomestead farm classified under subdivision 159.2823, paragraph (b). 159.29    Class 4bb property has the same class rates as class 1a property under subdivision 22 159.30 new text begin a classification rate of one percent on the first $500,000 of market value and a classification new text end 159.31 new text begin rate of 1.25 percent on the market value that exceeds $500,000 new text end . 159.32    Property that has been classified as seasonal residential recreational property at 159.33any time during which it has been owned by the current owner or spouse of the current 159.34owner does not qualify for class 4bb. 159.35    (d) Class 4c property includes: 160.1    (1) except as provided in subdivision 22, paragraph (c), real and personal property 160.2devoted to commercial temporary and seasonal residential occupancy for recreation 160.3purposes, for not more than 250 days in the year preceding the year of assessment. For 160.4purposes of this clause, property is devoted to a commercial purpose on a specific day 160.5if any portion of the property is used for residential occupancy, and a fee is charged for 160.6residential occupancy. Class 4c property under this clause must contain three or more 160.7rental units. A "rental unit" is defined as a cabin, condominium, townhouse, sleeping room, 160.8or individual camping site equipped with water and electrical hookups for recreational 160.9vehicles. A camping pad offered for rent by a property that otherwise qualifies for class 160.104c under this clause is also class 4c under this clause regardless of the term of the rental 160.11agreement, as long as the use of the camping pad does not exceed 250 days. In order for a 160.12property to be classified under this clause, either (i) the business located on the property 160.13must provide recreational activities, at least 40 percent of the annual gross lodging receipts 160.14related to the property must be from business conducted during 90 consecutive days, 160.15and either (A) at least 60 percent of all paid bookings by lodging guests during the year 160.16must be for periods of at least two consecutive nights; or (B) at least 20 percent of the 160.17annual gross receipts must be from charges for providing recreational activities, or (ii) the 160.18business must contain 20 or fewer rental units, and must be located in a township or a city 160.19with a population of 2,500 or less located outside the metropolitan area, as defined under 160.20section 473.121, subdivision 2, that contains a portion of a state trail administered by the 160.21Department of Natural Resources. For purposes of item (i)(A), a paid booking of five or 160.22more nights shall be counted as two bookings. Class 4c property also includes commercial 160.23use real property used exclusively for recreational purposes in conjunction with other class 160.244c property classified under this clause and devoted to temporary and seasonal residential 160.25occupancy for recreational purposes, up to a total of two acres, provided the property is 160.26not devoted to commercial recreational use for more than 250 days in the year preceding 160.27the year of assessment and is located within two miles of the class 4c property with which 160.28it is used. In order for a property to qualify for classification under this clause, the owner 160.29must submit a declaration to the assessor designating the cabins or units occupied for 250 160.30days or less in the year preceding the year of assessment by January 15 of the assessment 160.31year. Those cabins or units and a proportionate share of the land on which they are located 160.32must be designated class 4c under this clause as otherwise provided. The remainder of the 160.33cabins or units and a proportionate share of the land on which they are located will be 160.34designated as class 3a. The owner of property desiring designation as class 4c property 160.35under this clause must provide guest registers or other records demonstrating that the units 160.36for which class 4c designation is sought were not occupied for more than 250 days in the 161.1year preceding the assessment if so requested. The portion of a property operated as a 161.2(1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5) other 161.3nonresidential facility operated on a commercial basis not directly related to temporary and 161.4seasonal residential occupancy for recreation purposes does not qualify for class 4c. For 161.5the purposes of this paragraph, "recreational activities" means renting ice fishing houses, 161.6boats and motors, snowmobiles, downhill or cross-country ski equipment; providing 161.7marina services, launch services, or guide services; or selling bait and fishing tackle; 161.8    (2) qualified property used as a golf course if: 161.9    (i) it is open to the public on a daily fee basis. It may charge membership fees or 161.10dues, but a membership fee may not be required in order to use the property for golfing, 161.11and its green fees for golfing must be comparable to green fees typically charged by 161.12municipal courses; and 161.13    (ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d). 161.14    A structure used as a clubhouse, restaurant, or place of refreshment in conjunction 161.15with the golf course is classified as class 3a property; 161.16    (3) real property up to a maximum of three acres of land owned and used by a 161.17nonprofit community service oriented organization and not used for residential purposes 161.18on either a temporary or permanent basis, provided that: 161.19    (i) the property is not used for a revenue-producing activity for more than six days 161.20in the calendar year preceding the year of assessment; or 161.21    (ii) the organization makes annual charitable contributions and donations at least 161.22equal to the property's previous year's property taxes and the property is allowed to be 161.23used for public and community meetings or events for no charge, as appropriate to the 161.24size of the facility. 161.25    For purposes of this clause: 161.26    (A) "charitable contributions and donations" has the same meaning as lawful 161.27gambling purposes under section 349.12, subdivision 25, excluding those purposes 161.28relating to the payment of taxes, assessments, fees, auditing costs, and utility payments; 161.29    (B) "property taxes" excludes the state general tax; 161.30    (C) a "nonprofit community service oriented organization" means any corporation, 161.31society, association, foundation, or institution organized and operated exclusively for 161.32charitable, religious, fraternal, civic, or educational purposes, and which is exempt from 161.33federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal 161.34Revenue Code; and 161.35    (D) "revenue-producing activities" shall include but not be limited to property or that 161.36portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt 162.1liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling 162.2alley, a retail store, gambling conducted by organizations licensed under chapter 349, an 162.3insurance business, or office or other space leased or rented to a lessee who conducts a 162.4for-profit enterprise on the premises. 162.5    Any portion of the property not qualifying under either item (i) or (ii) is class 3a. 162.6The use of the property for social events open exclusively to members and their guests 162.7for periods of less than 24 hours, when an admission is not charged nor any revenues are 162.8received by the organization shall not be considered a revenue-producing activity. 162.9    The organization shall maintain records of its charitable contributions and donations 162.10and of public meetings and events held on the property and make them available upon 162.11request any time to the assessor to ensure eligibility. An organization meeting the 162.12requirement under item (ii) must file an application by May 1 with the assessor for 162.13eligibility for the current year's assessment. The commissioner shall prescribe a uniform 162.14application form and instructions; 162.15    (4) postsecondary student housing of not more than one acre of land that is owned by 162.16a nonprofit corporation organized under chapter 317A and is used exclusively by a student 162.17cooperative, sorority, or fraternity for on-campus housing or housing located within two 162.18miles of the border of a college campus; 162.19    (5)(i) manufactured home parks as defined in section 327.14, subdivision 3, 162.20excluding manufactured home parks described in section 273.124, subdivision 3a, and (ii) 162.21manufactured home parks as defined in section 327.14, subdivision 3, that are described in 162.22section 273.124, subdivision 3a; 162.23    (6) real property that is actively and exclusively devoted to indoor fitness, health, 162.24social, recreational, and related uses, is owned and operated by a not-for-profit corporation, 162.25and is located within the metropolitan area as defined in section 473.121, subdivision 2; 162.26    (7) a leased or privately owned noncommercial aircraft storage hangar not exempt 162.27under section 272.01, subdivision 2, and the land on which it is located, provided that: 162.28    (i) the land is on an airport owned or operated by a city, town, county, Metropolitan 162.29Airports Commission, or group thereof; and 162.30    (ii) the land lease, or any ordinance or signed agreement restricting the use of the 162.31leased premise, prohibits commercial activity performed at the hangar. 162.32    If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must 162.33be filed by the new owner with the assessor of the county where the property is located 162.34within 60 days of the sale; 162.35    (8) a privately owned noncommercial aircraft storage hangar not exempt under 162.36section 272.01, subdivision 2, and the land on which it is located, provided that: 163.1    (i) the land abuts a public airport; and 163.2    (ii) the owner of the aircraft storage hangar provides the assessor with a signed 163.3agreement restricting the use of the premises, prohibiting commercial use or activity 163.4performed at the hangar; and 163.5    (9) residential real estate, a portion of which is used by the owner for homestead 163.6purposes, and that is also a place of lodging, if all of the following criteria are met: 163.7    (i) rooms are provided for rent to transient guests that generally stay for periods 163.8of 14 or fewer days; 163.9    (ii) meals are provided to persons who rent rooms, the cost of which is incorporated 163.10in the basic room rate; 163.11    (iii) meals are not provided to the general public except for special events on fewer 163.12than seven days in the calendar year preceding the year of the assessment; and 163.13    (iv) the owner is the operator of the property. 163.14    The market value subject to the 4c classification under this clause is limited to 163.15five rental units. Any rental units on the property in excess of five, must be valued and 163.16assessed as class 3a. The portion of the property used for purposes of a homestead by the 163.17owner must be classified as class 1a property under subdivision 22; 163.18    (10) real property up to a maximum of three acres and operated as a restaurant 163.19as defined under section 157.15, subdivision 12, provided it: (A) is located on a lake 163.20as defined under section 103G.005, subdivision 15, paragraph (a), clause (3); and (B) 163.21is either devoted to commercial purposes for not more than 250 consecutive days, or 163.22receives at least 60 percent of its annual gross receipts from business conducted during 163.23four consecutive months. Gross receipts from the sale of alcoholic beverages must be 163.24included in determining the property's qualification under subitem (B). The property's 163.25primary business must be as a restaurant and not as a bar. Gross receipts from gift shop 163.26sales located on the premises must be excluded. Owners of real property desiring 4c 163.27classification under this clause must submit an annual declaration to the assessor by 163.28February 1 of the current assessment year, based on the property's relevant information for 163.29the preceding assessment year; 163.30(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used 163.31as a marina, as defined in section 86A.20, subdivision 5, which is made accessible to 163.32the public and devoted to recreational use for marina services. The marina owner must 163.33annually provide evidence to the assessor that it provides services, including lake or river 163.34access to the public by means of an access ramp or other facility that is either located on 163.35the property of the marina or at a publicly owned site that abuts the property of the marina. 163.36No more than 800 feet of lakeshore may be included in this classification. Buildings used 164.1in conjunction with a marina for marina services, including but not limited to buildings 164.2used to provide food and beverage services, fuel, boat repairs, or the sale of bait or fishing 164.3tackle, are classified as class 3a property; and 164.4(12) real and personal property devoted to noncommercial temporary and seasonal 164.5residential occupancy for recreation purposes. 164.6    Class 4c property has a class new text begin classification new text end rate of 1.5 percent of market value, except 164.7that (i) each parcel of noncommercial seasonal residential recreational property under 164.8clause (12) has the same class rates as class 4bb property new text begin a classification rate of one percent new text end 164.9 new text begin on the first $500,000 of market value and a classification rate of 1.25 percent on the market new text end 164.10 new text begin value that exceeds $500,000 new text end , (ii) manufactured home parks assessed under clause (5), item 164.11(i), have the same class rate as class 4b property new text begin a classification rate of 1.25 percent new text end , and 164.12the market value of manufactured home parks assessed under clause (5), item (ii), has the 164.13same class rate as class 4d property new text begin have a classification rate of 0.75 percent new text end if more than 50 164.14percent of the lots in the park are occupied by shareholders in the cooperative corporation 164.15or association and a class new text begin classification new text end rate of one percent if 50 percent or less of the lots 164.16are so occupied, (iii) commercial-use seasonal residential recreational property and marina 164.17recreational land as described in clause (11), has a class new text begin classification new text end rate of one percent 164.18for the first $500,000 of market value, and 1.25 percent for the remaining market value, (iv) 164.19the market value of property described in clause (4) has a class new text begin classification new text end rate of one 164.20percent, (v) the market value of property described in clauses (2), (6), and (10) has a class 164.21 new text begin classification new text end rate of 1.25 percent, and (vi) that portion of the market value of property in 164.22clause (9) qualifying for class 4c property has a class new text begin classification new text end rate of 1.25 percent. 164.23    (e) Class 4d property is qualifying low-income rental housing certified to the assessor 164.24by the Housing Finance Agency under section 273.128, subdivision 3. If only a portion 164.25of the units in the building qualify as low-income rental housing units as certified under 164.26section 273.128, subdivision 3, only the proportion of qualifying units to the total number 164.27of units in the building qualify for class 4d. The remaining portion of the building shall be 164.28classified by the assessor based upon its use. Class 4d also includes the same proportion of 164.29land as the qualifying low-income rental housing units are to the total units in the building. 164.30For all properties qualifying as class 4d, the market value determined by the assessor must 164.31be based on the normal approach to value using normal unrestricted rents. 164.32    (f) The first tier of market value of class 4d property has a class new text begin classification new text end rate 164.33of 0.75 percent. The remaining value of class 4d property has a class new text begin classification new text end 164.34 rate of 0.25 percent. For the purposes of this paragraph, the "first tier of market value 164.35of class 4d property" means the market value of each housing unit up to the first tier 164.36limit. For the purposes of this paragraph, all class 4d property value must be assigned 165.1to individual housing units. The first tier limit is $100,000 for assessment year 2014. 165.2For subsequent years, the limit is adjusted each year by the average statewide change in 165.3estimated market value of property classified as class 4a and 4d under this section for the 165.4previous assessment year, excluding valuation change due to new construction, rounded to 165.5the nearest $1,000, provided, however, that the limit may never be less than $100,000. 165.6Beginning with assessment year 2015, the commissioner of revenue must certify the limit 165.7for each assessment year by November 1 of the previous year. 165.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with assessment year 2014. new text end 165.9    Sec. 6. Minnesota Statutes 2013 Supplement, section 273.1325, subdivision 1, is 165.10amended to read: 165.11    Subdivision 1. Computation. The Department of Revenue must annually conduct 165.12an assessment/sales ratio study of the taxable property in each county, city, town, and 165.13school district in accordance with the procedures in subdivisions 2 and 3. Based upon the 165.14results of this assessment/sales ratio study, the Department of Revenue must determine 165.15an equalized net tax capacity for the various classes of taxable property in each taxing 165.16district, the aggregate of which is designated as the adjusted net tax capacity. The adjusted 165.17net tax capacity must be reduced by the captured tax capacity of tax increment districts 165.18under section 469.177, subdivision 2, fiscal disparities contribution tax capacities under 165.19sections 276A.06 and 473F.08, and the tax capacity of transmission lines required to be 165.20subtracted from the local tax base under section 273.425; and increased by fiscal disparities 165.21distribution tax capacities under sections 276A.06 and 473F.08. The adjusted net tax 165.22capacities shall be determined using the net tax capacity percentages in effect for the 165.23assessment year following the assessment year of the study. The Department of Revenue 165.24must make whatever estimates are necessary to account for changes in the classification 165.25system. The Department of Revenue may incur the expense necessary to make the 165.26determinations. The commissioner of revenue may reimburse any county or governmental 165.27official for requested services performed in ascertaining the adjusted net tax capacity. On 165.28or before March 15 annually, the Department of Revenue shall file with the chair of the 165.29Tax Committee of the house of representatives and the chair of the Committee on Taxes 165.30and Tax laws of the senate a report of adjusted net tax capacities for school districts. 165.31On or before June 15 new text begin 30 new text end annually, the Department of Revenue shall file its final report 165.32on the adjusted net tax capacities for school districts established by the previous year's 165.33assessments and the current year's net tax capacity percentages with the commissioner of 165.34education and each county auditor for those school districts for which the auditor has the 165.35responsibility for determination of local tax rates. A copy of the report so filed shall be 166.1mailed to the clerk of each school district involved and to the county assessor or supervisor 166.2of assessments of the county or counties in which each school district is located. 166.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2014. new text end 166.4    Sec. 7. Minnesota Statutes 2012, section 273.33, subdivision 2, is amended to read: 166.5    Subd. 2. Listing and assessment by commissioner. The personal property, 166.6consisting of the pipeline system of mains, pipes, and equipment attached thereto, of 166.7pipeline companies and others engaged in the operations or business of transporting natural 166.8gas, gasoline, crude oil, or other petroleum products by pipelines, shall be listed with and 166.9assessed by the commissioner of revenue and the values provided to the city or county 166.10assessor by order. This subdivision shall not apply to the assessment of the products 166.11transported through the pipelines nor to the lines of local commercial gas companies 166.12engaged primarily in the business of distributing gas to consumers at retail nor to pipelines 166.13used by the owner thereof to supply natural gas or other petroleum products exclusively 166.14for such owner's own consumption and not for resale to others. If more than 85 percent 166.15of the natural gas or other petroleum products actually transported over the pipeline is 166.16used for the owner's own consumption and not for resale to others, then this subdivision 166.17shall not apply; provided, however, that in that event, the pipeline shall be assessed in 166.18proportion to the percentage of gas actually transported over such pipeline that is not used 166.19for the owner's own consumption. On or before August 1, the commissioner shall certify 166.20to the auditor of each county, the amount of such personal property assessment against 166.21each company in each district in which such property is located. If the commissioner 166.22determines that the amount of personal property assessment certified on or before August 166.231 is in error, the commissioner may issue a corrected certification on or before October 1. 166.24 new text begin The commissioner may correct errors that are merely clerical in nature until December 31. new text end 166.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 166.26    Sec. 8. Minnesota Statutes 2012, section 273.37, subdivision 2, is amended to read: 166.27    Subd. 2. Listing and assessment by commissioner. Transmission lines of less 166.28than 69 kv, transmission lines of 69 kv and above located in an unorganized township, 166.29and distribution lines, and equipment attached thereto, having a fixed situs outside the 166.30corporate limits of cities except distribution lines taxed as provided in sections 273.40 166.31and 273.41, shall be listed with and assessed by the commissioner of revenue in the 166.32county where situated and the values provided to the city or county assessor by order. 166.33The commissioner shall assess such property at the percentage of market value fixed by 167.1law; and, on or before August 1, shall certify to the auditor of each county in which 167.2such property is located the amount of the assessment made against each company and 167.3person owning such property. If the commissioner determines that the amount of the 167.4assessment certified on or before August 1 is in error, the commissioner may issue a 167.5corrected certification on or before October 1. new text begin The commissioner may correct errors that new text end 167.6 new text begin are merely clerical in nature until December 31. new text end 167.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 167.8    Sec. 9. Minnesota Statutes 2012, section 273.3711, is amended to read: 167.9273.3711 RECOMMENDED AND ORDERED VALUES. 167.10    For purposes of sections 273.33, 273.35, 273.36, 273.37, 273.371, and 273.372, 167.11all values not required to be listed and assessed by the commissioner of revenue are 167.12recommended values. If the commissioner provides recommended values, the values must 167.13be certified to the auditor of each county in which the property is located on or before 167.14August 1. If the commissioner determines that the certified recommended value is in 167.15error the commissioner may issue a corrected certification on or before October 1. new text begin The new text end 167.16 new text begin commissioner may correct errors that are merely clerical in nature until December 31. new text end 167.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 167.18    Sec. 10. Minnesota Statutes 2012, section 274.01, subdivision 1, is amended to read: 167.19    Subdivision 1. Ordinary board; meetings, deadlines, grievances. (a) The town 167.20board of a town, or the council or other governing body of a city, is the board of appeal 167.21and equalization except (1) in cities whose charters provide for a board of equalization or 167.22(2) in any city or town that has transferred its local board of review power and duties to 167.23the county board as provided in subdivision 3. The county assessor shall fix a day and 167.24time when the board or the board of equalization shall meet in the assessment districts 167.25of the county. Notwithstanding any law or city charter to the contrary, a city board of 167.26equalization shall be referred to as a board of appeal and equalization. On or before 167.27February 15 of each year the assessor shall give written notice of the time to the city or 167.28town clerk. Notwithstanding the provisions of any charter to the contrary, the meetings 167.29must be held between April 1 and May 31 each year. The clerk shall give published and 167.30posted notice of the meeting at least ten days before the date of the meeting. 167.31    The board shall meet new text begin either at a central location within the county or new text end at the office of 167.32the clerk to review the assessment and classification of property in the town or city. No 167.33changes in valuation or classification which are intended to correct errors in judgment by 168.1the county assessor may be made by the county assessor after the board has adjourned 168.2in those cities or towns that hold a local board of review; however, corrections of errors 168.3that are merely clerical in nature or changes that extend homestead treatment to property 168.4are permitted after adjournment until the tax extension date for that assessment year. The 168.5changes must be fully documented and maintained in the assessor's office and must be 168.6available for review by any person. A copy of the changes made during this period in 168.7those cities or towns that hold a local board of review must be sent to the county board no 168.8later than December 31 of the assessment year. 168.9    (b) The board shall determine whether the taxable property in the town or city has 168.10been properly placed on the list and properly valued by the assessor. If real or personal 168.11property has been omitted, the board shall place it on the list with its market value, and 168.12correct the assessment so that each tract or lot of real property, and each article, parcel, 168.13or class of personal property, is entered on the assessment list at its market value. No 168.14assessment of the property of any person may be raised unless the person has been 168.15duly notified of the intent of the board to do so. On application of any person feeling 168.16aggrieved, the board shall review the assessment or classification, or both, and correct 168.17it as appears just. The board may not make an individual market value adjustment or 168.18classification change that would benefit the property if the owner or other person having 168.19control over the property has refused the assessor access to inspect the property and the 168.20interior of any buildings or structures as provided in section 273.20. A board member 168.21shall not participate in any actions of the board which result in market value adjustments 168.22or classification changes to property owned by the board member, the spouse, parent, 168.23stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle, aunt, nephew, 168.24or niece of a board member, or property in which a board member has a financial interest. 168.25The relationship may be by blood or marriage. 168.26    (c) A local board may reduce assessments upon petition of the taxpayer but the total 168.27reductions must not reduce the aggregate assessment made by the county assessor by more 168.28than one percent. If the total reductions would lower the aggregate assessments made by 168.29the county assessor by more than one percent, none of the adjustments may be made. The 168.30assessor shall correct any clerical errors or double assessments discovered by the board 168.31without regard to the one percent limitation. 168.32    (d) A local board does not have authority to grant an exemption or to order property 168.33removed from the tax rolls. 168.34    (e) A majority of the members may act at the meeting, and adjourn from day to day 168.35until they finish hearing the cases presented. The assessor shall attend, with the assessment 168.36books and papers, and take part in the proceedings, but must not vote. The county assessor, 169.1or an assistant delegated by the county assessor shall attend the meetings. The board shall 169.2list separately, on a form appended to the assessment book, all omitted property added 169.3to the list by the board and all items of property increased or decreased, with the market 169.4value of each item of property, added or changed by the board, placed opposite the item. 169.5The county assessor shall enter all changes made by the board in the assessment book. 169.6    (f) Except as provided in subdivision 3, if a person fails to appear in person, by 169.7counsel, or by written communication before the board after being duly notified of the 169.8board's intent to raise the assessment of the property, or if a person feeling aggrieved by an 169.9assessment or classification fails to apply for a review of the assessment or classification, 169.10the person may not appear before the county board of appeal and equalization for a review 169.11of the assessment or classification. This paragraph does not apply if an assessment was 169.12made after the local board meeting, as provided in section 273.01, or if the person can 169.13establish not having received notice of market value at least five days before the local 169.14board meeting. 169.15    (g) The local board must complete its work and adjourn within 20 days from the 169.16time of convening stated in the notice of the clerk, unless a longer period is approved by 169.17the commissioner of revenue. No action taken after that date is valid. All complaints 169.18about an assessment or classification made after the meeting of the board must be heard 169.19and determined by the county board of equalization. A nonresident may, at any time, 169.20before the meeting of the board file written objections to an assessment or classification 169.21with the county assessor. The objections must be presented to the board at its meeting by 169.22the county assessor for its consideration. 169.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 169.24    Sec. 11. Minnesota Statutes 2012, section 274.014, subdivision 3, is amended to read: 169.25    Subd. 3. Proof of compliance; transfer of duties. (a) Any city or town that 169.26conducts local boards of appeal and equalization meetings must provide proof to the 169.27county assessor by December 1, 2006 new text begin February 15, 2015 new text end , and each year thereafter, that it 169.28is in compliance with the requirements of subdivision 2. Beginning in 2006 new text begin 2015 new text end , this 169.29notice must also verify that there was a quorum of voting members at each meeting of the 169.30board of appeal and equalization in the current year. A city or town that does not comply 169.31with these requirements is deemed to have transferred its board of appeal and equalization 169.32powers to the county beginning with the following year's assessment and continuing 169.33unless the powers are reinstated under paragraph (c). 169.34    (b) The county shall notify the taxpayers when the board of appeal and equalization 169.35for a city or town has been transferred to the county under this subdivision and, prior to 170.1the meeting time of the county board of equalization, the county shall make available to 170.2those taxpayers a procedure for a review of the assessments, including, but not limited to, 170.3open book meetings. This alternate review process shall take place in April and May. 170.4    (c) A local board whose powers are transferred to the county under this subdivision 170.5may be reinstated by resolution of the governing body of the city or town and upon proof 170.6of compliance with the requirements of subdivision 2. The resolution and proofs must be 170.7provided to the county assessor by December 1 new text begin February 15 new text end in order to be effective for 170.8the following year's assessment. 170.9    (d) A local board whose powers are transferred to the county under this subdivision 170.10may continue to employ a local assessor and is not deemed to have transferred its powers 170.11to make assessments. 170.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with local boards of appeal new text end 170.13 new text begin and equalization meetings held after December 31, 2014. new text end 170.14    Sec. 12. Minnesota Statutes 2013 Supplement, section 423A.02, subdivision 3, is 170.15amended to read: 170.16    Subd. 3. Reallocation of amortization state aid. (a) Seventy percent of the 170.17difference between $5,720,000 and the current year amortization aid distributed under 170.18subdivision 1 that is not distributed for any reason to a municipality must be distributed 170.19by the commissioner of revenue according to this paragraph. The commissioner shall 170.20distribute 50 percent of the amounts derived under this paragraph to the Teachers 170.21Retirement Association, ten percent to the Duluth Teachers Retirement Fund Association, 170.22and 40 percent to the St. Paul Teachers Retirement Fund Association to fund the unfunded 170.23actuarial accrued liabilities of the respective funds. These payments must be made on July 170.2415 each fiscal year. If the St. Paul Teachers Retirement Fund Association or the Duluth 170.25Teachers Retirement Fund Association becomes fully funded, the association's eligibility 170.26for its portion of this aid ceases. Amounts remaining in the undistributed balance account 170.27at the end of the biennium if aid eligibility ceases cancel to the general fund. 170.28    (b) In order to receive amortization aid under paragraph (a), before June 30 annually 170.29Independent School District No. 625, St. Paul, must make an additional contribution of 170.30$800,000 each year to the St. Paul Teachers Retirement Fund Association. 170.31    (c) Thirty percent of the difference between $5,720,000 and the current year 170.32amortization aid under subdivision 1a new text begin 1 new text end that is not distributed for any reason to a 170.33municipality must be distributed under section 69.021, subdivision 7, paragraph (d), as 170.34additional funding to support a minimum fire state aid amount for volunteer firefighter 170.35relief associations. 171.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively from June 1, 2013. new text end 171.2    Sec. 13. Minnesota Statutes 2013 Supplement, section 477A.14, subdivision 1, is 171.3amended to read: 171.4    Subdivision 1. General distribution. Except as provided in subdivisions 2 and 3, 171.540 percent of the total payment to the county shall be deposited in the county general 171.6revenue fund to be used to provide property tax levy reduction. The remainder shall be 171.7distributed by the county in the following priority: 171.8(a) new text begin (1) new text end 64.2 cents, for each acre of county-administered other natural resources land 171.9shall be deposited in a resource development fund to be created within the county treasury 171.10for use in resource development, forest management, game and fish habitat improvement, 171.11and recreational development and maintenance of county-administered other natural 171.12resources land. Any county receiving less than $5,000 annually for the resource 171.13development fund may elect to deposit that amount in the county general revenue fund; 171.14(b) from the funds remaining, new text begin (2) new text end within 30 days of receipt of the payment to 171.15the county, the county treasurer shall pay each organized township ten percent of the 171.16amount received new text begin a township with land that qualifies for payment new text end under section 477A.12, 171.17subdivision 1 , clauses (1), (2), and (5) to (7) new text begin , ten percent of the payment the county new text end 171.18 new text begin received for such land within that township new text end . Payments for natural resources lands not 171.19located in an organized township shall be deposited in the county general revenue fund. 171.20Payments to counties and townships pursuant to this paragraph shall be used to provide 171.21property tax levy reduction, except that of the payments for natural resources lands not 171.22located in an organized township, the county may allocate the amount determined to be 171.23necessary for maintenance of roads in unorganized townships. Provided that, if the total 171.24payment to the county pursuant to section is not sufficient to fully fund the 171.25distribution provided for in this clause, the amount available shall be distributed to each 171.26township and the county general revenue fund on a pro rata basis; and 171.27(c) new text begin (3) new text end any remaining funds shall be deposited in the county general revenue fund. 171.28Provided that, if the distribution to the county general revenue fund exceeds $35,000, the 171.29excess shall be used to provide property tax levy reduction. 171.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2014. new text end 171.31    Sec. 14. new text begin REVISOR'S INSTRUCTION. new text end 171.32 new text begin The revisor of statutes shall change the terms "class rate" or "class rates" to new text end 171.33 new text begin "classification rate" or "classification rates" or similar terms whenever they appear in new text end 171.34 new text begin Minnesota Statutes when the terms are used to refer to the calculation of net tax capacity new text end 172.1 new text begin in the property tax system. The revisor can make changes to sentence structure to preserve new text end 172.2 new text begin the meaning of the text. The revisor shall make other changes in section and subdivision new text end 172.3 new text begin headnotes and in other terminology as necessary as a result of the enactment of this new text end 172.4 new text begin section. The Department of Revenue shall assist in making these corrections. new text end 172.5ARTICLE 9 172.6DEPARTMENT POLICY AND TECHNICAL; INCOME AND 172.7FRANCHISE; SALES AND USE 172.8    Section 1. Minnesota Statutes 2012, section 270C.34, subdivision 2, is amended to read: 172.9    Subd. 2. Procedure. (a) A request for abatement of penalty under subdivision 1 or 172.10section 289A.60, subdivision 4, new text begin or a request for abatement of interest or additional tax new text end 172.11 new text begin charge, new text end must be filed with the commissioner within 60 days of the date the notice was 172.12mailed to the taxpayer's last known address, stating that a penalty has been imposed. 172.13(b) If the commissioner issues an order denying a request for abatement of penalty, 172.14 new text begin interest, or additional tax charge, new text end the taxpayer may file an administrative appeal as 172.15provided in section 270C.35 or appeal to Tax Court as provided in section 271.06. 172.16(c) If the commissioner does not issue an order on the abatement request within 172.1760 days from the date the request is received, the taxpayer may appeal to Tax Court as 172.18provided in section 271.06. 172.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 172.20    Sec. 2. Minnesota Statutes 2012, section 270C.56, subdivision 3, is amended to read: 172.21    Subd. 3. Procedure for assessment; claims for refunds. (a) The commissioner 172.22may assess liability for the taxes described in subdivision 1 against a person liable 172.23under this section. The assessment may be based upon information available to the 172.24commissioner. It must be made within the prescribed period of limitations for assessing 172.25the underlying tax, or within one year after the date of an order assessing underlying 172.26tax new text begin , or within one year after the date of a final administrative or judicial determination new text end , 172.27whichever period expires later. An order assessing personal liability under this section is 172.28reviewable under section 270C.35 and is appealable to Tax Court. 172.29(b) If the time for appealing the order has expired and a payment is made by or 172.30collected from the person assessed on the order in excess of the amount lawfully due 172.31from that person of any portion of the liability shown on the order, a claim for refund 172.32may be made by that person within 120 days after any payment of the liability if the 172.33payment is within 3-1/2 years after the date the order was issued. Claims for refund under 173.1this paragraph are limited to the amount paid during the 120-day period. Any amounts 173.2collected under paragraph (c) after a claim for refund is filed in order to satisfy the unpaid 173.3balance of the assessment that is the subject of the claim shall be returned if the claim is 173.4allowed. There is no claim for refund available under this paragraph if the assessment has 173.5previously been the subject of an administrative or Tax Court appeal, or a denied claim 173.6for refund. The taxpayer may contest denial of the refund as provided in the procedures 173.7governing claims for refunds under section 289A.50, subdivision 7. 173.8(c) If a person has been assessed under this section for an amount for a given period 173.9and the time for appeal has expired, regardless of whether an action contesting denial of a 173.10claim for refund has been filed under paragraph (b), or there has been a final determination 173.11that the person is liable, collection action is not stayed pursuant to section 270C.33, 173.12subdivision 5 , for that assessment or for subsequent assessments of additional amounts for 173.13the same person for the same period and tax type. 173.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 173.15    Sec. 3. Minnesota Statutes 2012, section 289A.18, subdivision 2, is amended to read: 173.16    Subd. 2. Withholding returns, entertainer withholding returns, returns for 173.17withholding from payments to out-of-state contractors, and withholding returns 173.18from partnerships and S corporations. new text begin (a) new text end Withholding returns for the first, second, 173.19 and third quarters are due on or before the last day of the month following the close of 173.20the quarterly period. However, if the return shows timely deposits in full payment of 173.21the taxes due for that period, the returns for the first, second, and third quarters may be 173.22filed on or before the tenth day of the second calendar month following the period. The 173.23return for the fourth quarter must be filed on or before the 28th day of the second calendar 173.24month following the period. An employer, in preparing a quarterly return, may take credit 173.25for deposits previously made for that quarter. Entertainer withholding tax returns are 173.26due within 30 days after each performance. Returns for withholding from payments to 173.27out-of-state contractors are due within 30 days after the payment to the contractor. Returns 173.28for withholding by partnerships are due on or before the due date specified for filing 173.29partnership returns. Returns for withholding by S corporations are due on or before the 173.30due date specified for filing corporate franchise tax returns. 173.31 new text begin (b) A seasonal employer who provides notice in the form and manner prescribed new text end 173.32 new text begin by the commissioner before the end of the calendar quarter is not required to file a new text end 173.33 new text begin withholding tax return for periods of anticipated inactivity unless the employer pays wages new text end 173.34 new text begin during the period from which tax is withheld. For purposes of this paragraph, a seasonal new text end 174.1 new text begin employer is an employer that regularly, in the same one or more quarterly periods of each new text end 174.2 new text begin calendar year, pays no wages to employees. new text end 174.3 new text begin EFFECTIVE DATE. new text end new text begin (a) The amendments in paragraph (a) are effective for returns new text end 174.4 new text begin due after January 1, 2016. new text end 174.5 new text begin (b) The amendment adding paragraph (b) is effective for wages paid after December new text end 174.6 new text begin 31, 2015. new text end 174.7    Sec. 4. Minnesota Statutes 2012, section 296A.01, subdivision 16, is amended to read: 174.8    Subd. 16. Dyed fuel. "Dyed fuel" means diesel new text begin motor new text end fuel to which indelible dye 174.9has been added, either before or upon withdrawal at a terminal or refinery rack, and which 174.10may be sold for exempt purposes. The dye may be either dye required to be added per the 174.11EPA or dye that meets other specifications required by the Internal Revenue Service or 174.12the commissioner. 174.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 174.14    Sec. 5. Minnesota Statutes 2013 Supplement, section 403.162, subdivision 5, is 174.15amended to read: 174.16    Subd. 5. Fees deposited. (a) The commissioner of revenue shall, based on 174.17the relative proportion of the prepaid wireless E911 fee and the prepaid wireless 174.18telecommunications access Minnesota fee imposed per retail transaction, divide the fees 174.19collected in corresponding proportions. Within 30 days of receipt of the collected fees, 174.20the commissioner shall: 174.21(1) deposit the proportion of the collected fees attributable to the prepaid wireless 174.22E911 fee in the 911 emergency telecommunications service account in the special revenue 174.23fund; and 174.24(2) deposit the proportion of collected fees attributable to the prepaid wireless 174.25telecommunications access Minnesota fee in the telecommunications access fund 174.26established in section 237.52, subdivision 1. 174.27(b) The department new text begin commissioner of revenue new text end may deduct and retain new text begin deposit in a new text end 174.28 new text begin special revenue account new text end an amount, not to exceed two percent of collected fees, new text begin . Money new text end 174.29 new text begin in the account is annually appropriated to the commissioner of revenue new text end to reimburse its 174.30direct costs of administering the collection and remittance of prepaid wireless E911 fees 174.31and prepaid wireless telecommunications access Minnesota fees. 174.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively from January 1, 2014. new text end 175.1    Sec. 6. Laws 2013, chapter 143, article 8, section 3, the effective date, is amended to 175.2read: 175.3EFFECTIVE DATE.This section is effective for sales and purchases made after 175.4June 30, 2013 new text begin , except for paragraph (p), which is effective the day following final new text end 175.5 new text begin enactment new text end . 175.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively from the day following new text end 175.7 new text begin final enactment of Laws 2013, chapter 143, article 8, section 3. new text end 175.8    Sec. 7. new text begin REPEALER. new text end 175.9 new text begin Minnesota Rules, parts 8130.8900, subpart 3; and 8130.9500, subparts 1, 1a, 2, new text end 175.10 new text begin 3, 4, and 5, new text end new text begin are repealed. new text end 175.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end