<a id="pl.1.3"></a><var>1.3</var>income, property, sales and use, excise, estate, mineral, tobacco, alcohol, special, <br/>
<a id="pl.1.4"></a><var>1.4</var>local, and other taxes and tax-related provisions; modifying local government <br/>
<a id="pl.1.5"></a><var>1.5</var>aids; modifying exclusions, exemptions, and levy deadlines; modifying sales, <br/>
<a id="pl.1.6"></a><var>1.6</var>use, and excise tax exemptions; changing sales, use, and excise tax remittances; <br/>
<a id="pl.1.7"></a><var>1.7</var>modifying certain local sales and use taxes; modifying income tax credits <br/>
<a id="pl.1.8"></a><var>1.8</var>and subtractions; clarifying estate tax provisions; providing for certain local <br/>
<a id="pl.1.9"></a><var>1.9</var>development projects; changing license revocation procedures; modifying <br/>
<a id="pl.1.10"></a><var>1.10</var>installment payments; removing obsolete, redundant, and unnecessary laws and <br/>
<a id="pl.1.11"></a><var>1.11</var>administrative rules administered by the Department of Revenue; making various <br/>
<a id="pl.1.12"></a><var>1.12</var>policy and technical changes; requiring reports; modifying special service <br/>
<a id="pl.1.13"></a><var>1.13</var>districts; repealing purpose statements and certain reporting requirements; <br/>
<a id="pl.1.14"></a><var>1.14</var>increasing certain abatement authority; reallocating certain bond payments; <br/>
<a id="pl.1.15"></a><var>1.15</var>requiring fund transfer; modifying tax increment finance rules; appropriating <br/>
<a id="pl.1.16"></a><var>1.16</var>money;amending Minnesota Statutes 2012, sections 16D.02, subdivisions 3, <br/>
<a id="pl.1.17"></a><var>1.17</var>6; 16D.04, subdivisions 3, 4; 16D.07; 16D.11, subdivisions 1, 3, 7; 84A.20, <br/>
<a id="pl.1.18"></a><var>1.18</var>subdivision 2; 84A.31, subdivision 2; 115B.49, subdivision 4; 116J.8737, <br/>
<a id="pl.1.19"></a><var>1.19</var>subdivision 5, as amended; 163.06, subdivision 1; 270.11, subdivision 1; 270.12, <br/>
<a id="pl.1.20"></a><var>1.20</var>subdivisions 2, 4; 270.87; 270A.03, subdivision 2; 270B.14, subdivision 3; <br/>
<a id="pl.1.21"></a><var>1.21</var>270C.085; 270C.34, subdivision 2; 270C.52, subdivision 2; 270C.56, subdivision <br/>
<a id="pl.1.22"></a><var>1.22</var>3; 270C.72, subdivisions 1, 3; 272.01, subdivisions 1, 3; 272.02, subdivisions 10, <br/>
<a id="pl.1.23"></a><var>1.23</var>93; 272.0211, subdivisions 1, 2, by adding a subdivision; 272.025, subdivision <br/>
<a id="pl.1.24"></a><var>1.24</var>1; 272.027, subdivision 1; 272.029, subdivisions 4a, 6; 272.03, subdivision <br/>
<a id="pl.1.25"></a><var>1.25</var>1; 273.01; 273.061, subdivision 6; 273.10; 273.11, subdivision 13; 273.112, <br/>
<a id="pl.1.26"></a><var>1.26</var>subdivision 6a; 273.13, subdivision 22; 273.18; 273.33, subdivision 2; 273.37, <br/>
<a id="pl.1.27"></a><var>1.27</var>subdivision 2; 273.3711; 274.01, subdivisions 1, 2; 274.014, subdivision 3; <br/>
<a id="pl.1.28"></a><var>1.28</var>275.065, subdivision 1; 275.08, subdivisions 1a, 1d; 275.74, subdivision 2; <br/>
<a id="pl.1.29"></a><var>1.29</var>275.75; 279.03, subdivisions 1, 1a, 2; 279.16; 279.23; 279.25; 280.001; 280.03; <br/>
<a id="pl.1.30"></a><var>1.30</var>280.07; 280.11; 281.03; 281.327; 282.01, subdivision 6; 282.04, subdivision <br/>
<a id="pl.1.31"></a><var>1.31</var>4; 282.261, subdivisions 2, 4, 5; 282.322; 287.30; 289A.02, subdivision 7, <br/>
<a id="pl.1.32"></a><var>1.32</var>as amended; 289A.18, subdivision 2; 289A.25, subdivision 1; 289A.60, <br/>
<a id="pl.1.33"></a><var>1.33</var>subdivision 15; 290.01, subdivisions 5, 7, 19f, 29; 290.015, subdivision 1; <br/>
<a id="pl.1.34"></a><var>1.34</var>290.0677, subdivisions 1, 1a; 290.07, subdivisions 1, 2; 290.081; 290.0922, <br/>
<a id="pl.1.35"></a><var>1.35</var>subdivision 3; 290.095, subdivision 3; 290.9728, subdivision 2; 296A.01, <br/>
<a id="pl.1.36"></a><var>1.36</var>subdivision 16; 297A.67, subdivision 13a, by adding subdivisions; 297A.68, <br/>
<a id="pl.1.37"></a><var>1.37</var>by adding a subdivision; 297A.70, subdivision 10, by adding a subdivision; <br/>
<a id="pl.1.38"></a><var>1.38</var>297A.94; 297B.09; 297F.03, subdivision 2; 297F.09, subdivision 10; 297G.09, <br/>
<a id="pl.1.39"></a><var>1.39</var>subdivision 9; 297I.05, subdivision 14; 298.28, subdivisions 5, as amended, <br/>
<a id="pl.2.1"></a><var>2.1</var>7a, as added; 298.75, subdivision 2; 383E.21, subdivisions 1, 2; 412.131; <br/>
<a id="pl.2.2"></a><var>2.2</var>469.176, subdivisions 1b, 3; 469.1763, subdivision 3; 473.665, subdivision 5; <br/>
<a id="pl.2.3"></a><var>2.3</var>477A.0124, subdivisions 3, 5, by adding a subdivision; 477A.014, subdivision <br/>
<a id="pl.2.4"></a><var>2.4</var>1; 611.27, subdivisions 13, 15; Minnesota Statutes 2013 Supplement, sections <br/>
<a id="pl.2.5"></a><var>2.5</var>116J.8738, subdivisions 2, 3, 4; 116V.03; 136A.129, subdivisions 1, 3, 5; <br/>
<a id="pl.2.6"></a><var>2.6</var>144F.01, subdivision 4; 270B.01, subdivision 8; 270B.03, subdivision 1; 273.13, <br/>
<a id="pl.2.7"></a><var>2.7</var>subdivision 25; 273.1325, subdivisions 1, 2; 275.70, subdivision 5; 279.37, <br/>
<a id="pl.2.8"></a><var>2.8</var>subdivision 2; 281.17; 289A.20, subdivision 4; 290.01, subdivisions 19, as <br/>
<a id="pl.2.9"></a><var>2.9</var>amended, 19b, as amended, 19d, 31, as amended; 290.091, subdivision 2, as <br/>
<a id="pl.2.10"></a><var>2.10</var>amended; 290.0921, subdivision 3; 290.191, subdivision 5; 290A.03, subdivision <br/>
<a id="pl.2.11"></a><var>2.11</var>15, as amended; 291.005, subdivision 1, as amended; 297A.61, subdivision 3, <br/>
<a id="pl.2.12"></a><var>2.12</var>as amended; 297A.68, subdivisions 42, 44; 297A.70, subdivisions 2, 13, 14; <br/>
<a id="pl.2.13"></a><var>2.13</var>297A.75, subdivisions 1, 2, 3; 297B.01, subdivision 16; 297F.05, subdivision 1; <br/>
<a id="pl.2.14"></a><var>2.14</var>298.28, subdivision 4; 360.531, subdivision 2; 403.162, subdivision 5; 423A.02, <br/>
<a id="pl.2.15"></a><var>2.15</var>subdivision 3; 423A.022, subdivision 3; 428A.02, subdivision 1; 469.1763, <br/>
<a id="pl.2.16"></a><var>2.16</var>subdivision 2; 477A.0124, subdivision 2; 477A.013, subdivision 8; 477A.03, <br/>
<a id="pl.2.17"></a><var>2.17</var>subdivision 2b; 477A.12, subdivisions 1, 2; 477A.14, subdivision 1; Laws 1980, <br/>
<a id="pl.2.18"></a><var>2.18</var>chapter 511, section 1, subdivision 2, as amended; Laws 1999, chapter 243, <br/>
<a id="pl.2.19"></a><var>2.19</var>article 14, section 5, subdivision 1; Laws 2005, First Special Session chapter <br/>
<a id="pl.2.20"></a><var>2.20</var>3, article 5, section 38, subdivision 4; Laws 2006, chapter 257, section 2, as <br/>
<a id="pl.2.21"></a><var>2.21</var>amended; Laws 2008, chapter 366, article 10, section 15; Laws 2013, chapter <br/>
<a id="pl.2.22"></a><var>2.22</var>143, article 8, sections 3; 22; 23; 27; 37; article 9, section 23; article 11, section <br/>
<a id="pl.2.23"></a><var>2.23</var>10; Laws 2014, chapter 150, article 3, section 4; proposing coding for new law <br/>
<a id="pl.2.24"></a><var>2.24</var>in Minnesota Statutes, chapters 168A; 290; repealing Minnesota Statutes 2012, <br/>
<a id="pl.2.25"></a><var>2.25</var>sections 3.192; 16D.02, subdivisions 5, 8; 16D.11, subdivision 2; 270C.131; <br/>
<a id="pl.2.26"></a><var>2.26</var>270C.53; 270C.991, subdivision 4; 272.02, subdivisions 1, 1a, 48, 51, 53, 67, 72, <br/>
<a id="pl.2.27"></a><var>2.27</var>82; 272.027, subdivision 2; 272.031; 273.015, subdivision 1; 273.03, subdivision <br/>
<a id="pl.2.28"></a><var>2.28</var>3; 273.075; 273.1383; 273.1386; 273.80; 275.77; 279.32; 281.173, subdivision <br/>
<a id="pl.2.29"></a><var>2.29</var>8; 281.174, subdivision 8; 281.328; 282.10; 282.23; 287.20, subdivision 4; <br/>
<a id="pl.2.30"></a><var>2.30</var>287.27, subdivision 2; 289A.56, subdivision 7; 290.01, subdivisions 4b, 19e, <br/>
<a id="pl.2.31"></a><var>2.31</var>20e; 290.06, subdivisions 30, 31; 290.0674, subdivision 3; 290.33; 295.52, <br/>
<a id="pl.2.32"></a><var>2.32</var>subdivision 7; 297A.68, subdivision 38; 297A.71, subdivisions 4, 5, 7, 10, <br/>
<a id="pl.2.33"></a><var>2.33</var>17, 18, 20, 32; 297F.08, subdivision 11; 297H.10, subdivision 2; 469.174, <br/>
<a id="pl.2.34"></a><var>2.34</var>subdivision 10c; 469.175, subdivision 2b; 469.176, subdivision 1i; 469.1764; <br/>
<a id="pl.2.35"></a><var>2.35</var>469.177, subdivision 10; 469.330; 469.331; 469.332; 469.333; 469.334; 469.335; <br/>
<a id="pl.2.36"></a><var>2.36</var>469.336; 469.337; 469.338; 469.339; 469.340, subdivisions 1, 2, 3, 5; 469.341; <br/>
<a id="pl.2.37"></a><var>2.37</var>477A.0124, subdivisions 1, 6; 505.173; Minnesota Statutes 2013 Supplement, <br/>
<a id="pl.2.38"></a><var>2.38</var>section 469.340, subdivision 4; Laws 1961, chapter 372, sections 1; 2; Laws <br/>
<a id="pl.2.39"></a><var>2.39</var>1963, chapter 118, sections 1, as amended; 2, as amended; 3; 4, as amended; 5; <br/>
<a id="pl.2.40"></a><var>2.40</var>6, as amended; 7; 8; 9; 10; Laws 1996, chapter 471, article 8, sections 19; 20; <br/>
<a id="pl.2.41"></a><var>2.41</var>21; 22; Minnesota Rules, parts 8002.0200, subpart 8; 8007.0200; 8100.0800; <br/>
<a id="pl.2.42"></a><var>2.42</var>8130.7500, subpart 7; 8130.8900, subpart 3; 8130.9500, subparts 1, 1a, 2, 3, 4, 5.<br/>
<a id="pl.2.43"></a><var>2.43</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.1.0.0"></a>

<a id="bill.1.1.0"></a><a id="pl.2.46"></a><var>2.46</var>    Section 1. Minnesota Statutes 2013 Supplement, section 144F.01, subdivision 4, <br/>
<a id="pl.2.47"></a><var>2.47</var>is amended to read:<br/>
<a id="pl.2.48"></a><var>2.48</var>    Subd. 4. <b>Property tax levy authority.</b> The district's board may levy a tax on the <br/>
<a id="pl.2.49"></a><var>2.49</var>taxable real and personal property in the district. The ad valorem tax levy may not exceed <br/>
<a id="pl.2.50"></a><var>2.50</var>0.048 percent of the estimated market value of the district or $400,000 $550,000, whichever <br/>
<a id="pl.3.1"></a><var>3.1</var>is less. The proceeds of the levy must be used as provided in subdivision 5. The board shall <br/>
<a id="pl.3.2"></a><var>3.2</var>certify the levy at the times as provided under section 
         <statute_ref>275.07</statute_ref>. The board shall provide the <br/>
<a id="pl.3.3"></a><var>3.3</var>county with whatever information is necessary to identify the property that is located within <br/>
<a id="pl.3.4"></a><var>3.4</var>the district. If the boundaries include a part of a parcel, the entire parcel shall be included <br/>
<a id="pl.3.5"></a><var>3.5</var>in the district. The county auditors must spread, collect, and distribute the proceeds of the <br/>
<a id="pl.3.6"></a><var>3.6</var>tax at the same time and in the same manner as provided by law for all other property taxes.<br/>
<a id="pl.3.7"></a><var>3.7</var><b>EFFECTIVE DATE.</b>This section is effective for assessments in 2015, taxes <br/>
<a id="pl.3.8"></a><var>3.8</var>payable in 2016, and thereafter.<br/>
<br/>
<a id="bill.1.2.0"></a><a id="pl.3.9"></a><var>3.9</var>    Sec. 2. Minnesota Statutes 2012, section 272.02, subdivision 10, is amended to read:<br/>
<a id="pl.3.10"></a><var>3.10</var>    Subd. 10. <b>Personal property used for pollution control.</b> Personal property used <br/>
<a id="pl.3.11"></a><var>3.11</var>primarily for the abatement and control of air, water, or land pollution is exempt to the <br/>
<a id="pl.3.12"></a><var>3.12</var>extent that it is so used, and real property is exempt if it is used primarily for abatement <br/>
<a id="pl.3.13"></a><var>3.13</var>and control of air, water, or land pollution as part of an agricultural operation, as a part <br/>
<a id="pl.3.14"></a><var>3.14</var>of a centralized treatment and recovery facility operating under a permit issued by the <br/>
<a id="pl.3.15"></a><var>3.15</var>Minnesota Pollution Control Agency pursuant to chapters 115 and 116 and Minnesota <br/>
<a id="pl.3.16"></a><var>3.16</var>Rules, parts 7001.0500 to 7001.0730, and 7045.0020 to 7045.1260, as a wastewater <br/>
<a id="pl.3.17"></a><var>3.17</var>treatment facility and for the treatment, recovery, and stabilization of metals, oils, <br/>
<a id="pl.3.18"></a><var>3.18</var>chemicals, water, sludges, or inorganic materials from hazardous industrial wastes, or as <br/>
<a id="pl.3.19"></a><var>3.19</var>part of an electric generation system. For purposes of this subdivision, personal property <br/>
<a id="pl.3.20"></a><var>3.20</var>includes ponderous machinery and equipment used in a business or production activity <br/>
<a id="pl.3.21"></a><var>3.21</var>that at common law is considered real property.<br/>
<a id="pl.3.22"></a><var>3.22</var>Any taxpayer requesting exemption of all or a portion of any real property or any <br/>
<a id="pl.3.23"></a><var>3.23</var>equipment or device, or part thereof, operated primarily for the control or abatement of air, <br/>
<a id="pl.3.24"></a><var>3.24</var>water, or land pollution shall file an application with the commissioner of revenue. If the <br/>
<a id="pl.3.25"></a><var>3.25</var>property is an electric power generation facility located in a city, then the commissioner <br/>
<a id="pl.3.26"></a><var>3.26</var>shall notify the county assessor, city finance officer, and superintendent of the school <br/>
<a id="pl.3.27"></a><var>3.27</var>district of the jurisdictions that host the facility that the application has been received. The <br/>
<a id="pl.3.28"></a><var>3.28</var>Minnesota Pollution Control Agency shall upon request of the commissioner furnish <br/>
<a id="pl.3.29"></a><var>3.29</var>information and advice to the commissioner.<br/>
<a id="pl.3.30"></a><var>3.30</var>The information and advice furnished by the Minnesota Pollution Control Agency <br/>
<a id="pl.3.31"></a><var>3.31</var>must include statements as to whether the equipment, device, or real property meets <br/>
<a id="pl.3.32"></a><var>3.32</var>a standard, rule, criteria, guideline, policy, or order of the Minnesota Pollution Control <br/>
<a id="pl.3.33"></a><var>3.33</var>Agency, and whether the equipment, device, or real property is installed or operated <br/>
<a id="pl.3.34"></a><var>3.34</var>in accordance with it. On determining that property qualifies for exemption, the <br/>
<a id="pl.3.35"></a><var>3.35</var>commissioner shall issue an order exempting the property from taxation. If the property is <br/>
<a id="pl.4.1"></a><var>4.1</var>an electric power generation facility located in a city, then the commissioner shall provide <br/>
<a id="pl.4.2"></a><var>4.2</var>notification of the order to the county assessor, city finance officer, and superintendent <br/>
<a id="pl.4.3"></a><var>4.3</var>of the school district of the jurisdictions that host the facility. The equipment, device, or <br/>
<a id="pl.4.4"></a><var>4.4</var>real property shall continue to be exempt from taxation as long as the order issued by the <br/>
<a id="pl.4.5"></a><var>4.5</var>commissioner remains in effect.<br/>
<a id="pl.4.6"></a><var>4.6</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.3.0"></a><a id="pl.4.7"></a><var>4.7</var>    Sec. 3. Minnesota Statutes 2012, section 272.02, subdivision 93, is amended to read:<br/>
<a id="pl.4.8"></a><var>4.8</var>    Subd. 93. <b>Electric generation facility; personal property.</b> Notwithstanding <br/>
<a id="pl.4.9"></a><var>4.9</var>subdivision 9, clause (a), attached machinery and other personal property that is part of <br/>
<a id="pl.4.10"></a><var>4.10</var>a simple-cycle electric generation facility of more than 40 megawatts and less than 125 <br/>
<a id="pl.4.11"></a><var>4.11</var>megawatts of installed capacity and that meets the requirements of this subdivision is <br/>
<a id="pl.4.12"></a><var>4.12</var>exempt. At the time of construction, the facility must:<br/>
<a id="pl.4.13"></a><var>4.13</var>(1) utilize natural gas as a primary fuel;<br/>
<a id="pl.4.14"></a><var>4.14</var>(2) be located within two miles of parallel existing 36-inch natural gas pipelines and <br/>
<a id="pl.4.15"></a><var>4.15</var>an existing 115-kilovolt high-voltage electric transmission line;<br/>
<a id="pl.4.16"></a><var>4.16</var>(3) be designed to provide peaking, emergency backup, or contingency services;<br/>
<a id="pl.4.17"></a><var>4.17</var>(4) satisfy a resource deficiency identified in an approved integrated resource plan <br/>
<a id="pl.4.18"></a><var>4.18</var>filed under section 
         <statute_ref>216B.2422</statute_ref>; and<br/>
<a id="pl.4.19"></a><var>4.19</var>(5) have an agreement with the host county, township, and school district for <br/>
<a id="pl.4.20"></a><var>4.20</var>payment in lieu of personal property taxes to the host county, township, and school district <br/>
<a id="pl.4.21"></a><var>4.21</var>for the operating life of the facility. Any amount distributed to the school district is not <br/>
<a id="pl.4.22"></a><var>4.22</var>subject to the deductions under section 
         <statute_ref>126C.21</statute_ref>.<br/>
<a id="pl.4.23"></a><var>4.23</var>Construction of the facility must be commenced after January 1, 2010 2015, and <br/>
<a id="pl.4.24"></a><var>4.24</var>before January 1, 2014 2019. Property eligible for this exemption does not include electric <br/>
<a id="pl.4.25"></a><var>4.25</var>transmission lines and interconnections or gas pipelines and interconnections appurtenant <br/>
<a id="pl.4.26"></a><var>4.26</var>to the property or the facility.<br/>
<a id="pl.4.27"></a><var>4.27</var><b>EFFECTIVE DATE.</b>This section is effective for assessments in 2015, taxes <br/>
<a id="pl.4.28"></a><var>4.28</var>payable in 2016, and thereafter.<br/>
<br/>
<a id="bill.1.4.0"></a><a id="pl.4.29"></a><var>4.29</var>    Sec. 4. Minnesota Statutes 2012, section 272.0211, subdivision 1, is amended to read:<br/>
<a id="pl.4.30"></a><var>4.30</var>    Subdivision 1. <b>Efficiency determination and certification.</b> An owner or operator <br/>
<a id="pl.4.31"></a><var>4.31</var>of a new or existing electric power generation facility, excluding wind energy conversion <br/>
<a id="pl.4.32"></a><var>4.32</var>systems, may apply to the commissioner of revenue for a market value exclusion on the <br/>
<a id="pl.4.33"></a><var>4.33</var>property as provided for in this section. This exclusion shall apply only to the market <br/>
<a id="pl.5.1"></a><var>5.1</var>value of the equipment of the facility, and shall not apply to the structures and the land <br/>
<a id="pl.5.2"></a><var>5.2</var>upon which the facility is located. The commissioner of revenue shall prescribe the forms <br/>
<a id="pl.5.3"></a><var>5.3</var>and procedures for this application. Upon receiving the application, the commissioner of <br/>
<a id="pl.5.4"></a><var>5.4</var>revenue shall: (1)  request the commissioner of commerce to make a determination of the <br/>
<a id="pl.5.5"></a><var>5.5</var>efficiency of the applicant's electric power generation facility; and (2) if the facility is in <br/>
<a id="pl.5.6"></a><var>5.6</var>a city, notify the county assessor, city finance officer, and superintendent of the school <br/>
<a id="pl.5.7"></a><var>5.7</var>district of the jurisdictions that host the facility that an application for an exclusion is being <br/>
<a id="pl.5.8"></a><var>5.8</var>processed. The commissioner of commerce shall calculate efficiency as the ratio of useful <br/>
<a id="pl.5.9"></a><var>5.9</var>energy outputs to energy inputs, expressed as a percentage, based on the performance of <br/>
<a id="pl.5.10"></a><var>5.10</var>the facility's equipment during normal full load operation. The commissioner must include <br/>
<a id="pl.5.11"></a><var>5.11</var>in this formula the energy used in any on-site preparation of materials necessary to convert <br/>
<a id="pl.5.12"></a><var>5.12</var>the materials into the fuel used to generate electricity, such as a process to gasify petroleum <br/>
<a id="pl.5.13"></a><var>5.13</var>coke. The commissioner shall use the Higher Heating Value (HHV) for all substances in <br/>
<a id="pl.5.14"></a><var>5.14</var>the commissioner's efficiency calculations, except for wood for fuel in a biomass-eligible <br/>
<a id="pl.5.15"></a><var>5.15</var>project under section 
         <statute_ref>216B.2424</statute_ref>; for these instances, the commissioner shall adjust the <br/>
<a id="pl.5.16"></a><var>5.16</var>heating value to allow for energy consumed for evaporation of the moisture in the wood. <br/>
<a id="pl.5.17"></a><var>5.17</var>The applicant shall provide the commissioner of commerce with whatever information the <br/>
<a id="pl.5.18"></a><var>5.18</var>commissioner deems necessary to make the determination. Within 30 days of the receipt <br/>
<a id="pl.5.19"></a><var>5.19</var>of the necessary information, the commissioner of commerce shall certify the findings of <br/>
<a id="pl.5.20"></a><var>5.20</var>the efficiency determination to the commissioner of revenue and to the applicant. The <br/>
<a id="pl.5.21"></a><var>5.21</var>commissioner of commerce shall determine the efficiency of the facility and certify the <br/>
<a id="pl.5.22"></a><var>5.22</var>findings of that determination to the commissioner of revenue every two years thereafter <br/>
<a id="pl.5.23"></a><var>5.23</var>from the date of the original certification.<br/>
<a id="pl.5.24"></a><var>5.24</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.5.0"></a><a id="pl.5.25"></a><var>5.25</var>    Sec. 5. Minnesota Statutes 2012, section 272.0211, subdivision 2, is amended to read:<br/>
<a id="pl.5.26"></a><var>5.26</var>    Subd. 2. <b>Sliding scale exclusion.</b> Based upon the efficiency determination provided <br/>
<a id="pl.5.27"></a><var>5.27</var>by the commissioner of commerce as described in subdivision 1, the commissioner of <br/>
<a id="pl.5.28"></a><var>5.28</var>revenue shall subtract eight percent of the taxable market value of the qualifying property <br/>
<a id="pl.5.29"></a><var>5.29</var>for each percentage point that the efficiency of the specific facility, as determined by the <br/>
<a id="pl.5.30"></a><var>5.30</var>commissioner of commerce, is above 40 percent. The reduction in taxable market value <br/>
<a id="pl.5.31"></a><var>5.31</var>shall be reflected in the taxable market value of the facility beginning with the assessment <br/>
<a id="pl.5.32"></a><var>5.32</var>year immediately following the determination. If the facility is located in a city, the <br/>
<a id="pl.5.33"></a><var>5.33</var>commissioner shall notify the county assessor, city finance officer, and superintendent of <br/>
<a id="pl.5.34"></a><var>5.34</var>the school district of the jurisdictions that host the facility of the reduction in taxable <br/>
<a id="pl.5.35"></a><var>5.35</var>market value. For a facility that is assessed by the county in which the facility is located, <br/>
<a id="pl.6.1"></a><var>6.1</var>the commissioner of revenue shall certify to the assessor of that county the percentage <br/>
<a id="pl.6.2"></a><var>6.2</var>of the taxable market value of the facility to be excluded.<br/>
<a id="pl.6.3"></a><var>6.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.6.0"></a><a id="pl.6.4"></a><var>6.4</var>    Sec. 6. Minnesota Statutes 2012, section 272.0211, is amended by adding a subdivision <br/>
<a id="pl.6.5"></a><var>6.5</var>to read:<br/>
<a id="pl.6.6"></a><var>6.6</var>    Subd. 5. <b>Limitation.</b> This section applies only to an electric power generation <br/>
<a id="pl.6.7"></a><var>6.7</var>facility that was eligible for the exclusion under this section for taxes payable in 2014.<br/>
<a id="pl.6.8"></a><var>6.8</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2014 and <br/>
<a id="pl.6.9"></a><var>6.9</var>thereafter.<br/>
<br/>
<a id="bill.1.7.0"></a><a id="pl.6.10"></a><var>6.10</var>    Sec. 7. Minnesota Statutes 2012, section 272.03, subdivision 1, is amended to read:<br/>
<a id="pl.6.11"></a><var>6.11</var>    Subdivision 1. <b>Real property.</b> (a) For the purposes of taxation, "real property" <br/>
<a id="pl.6.12"></a><var>6.12</var>includes the land itself, rails, ties, and other track materials annexed to the land, and all <br/>
<a id="pl.6.13"></a><var>6.13</var>buildings, structures, and improvements or other fixtures on it, bridges of bridge companies, <br/>
<a id="pl.6.14"></a><var>6.14</var>and all rights and privileges belonging or appertaining to the land, and all mines, iron ore <br/>
<a id="pl.6.15"></a><var>6.15</var>and taconite minerals not otherwise exempt, quarries, fossils, and trees on or under it.<br/>
<a id="pl.6.16"></a><var>6.16</var>(b) A building or structure shall include the building or structure itself, together with <br/>
<a id="pl.6.17"></a><var>6.17</var>all improvements or fixtures annexed to the building or structure, which are integrated <br/>
<a id="pl.6.18"></a><var>6.18</var>with and of permanent benefit to the building or structure, regardless of the present use <br/>
<a id="pl.6.19"></a><var>6.19</var>of the building, and which cannot be removed without substantial damage to itself or to <br/>
<a id="pl.6.20"></a><var>6.20</var>the building or structure.<br/>
<a id="pl.6.21"></a><var>6.21</var>(c)(i) Real property does not include tools, implements, machinery, and equipment <br/>
<a id="pl.6.22"></a><var>6.22</var>attached to or installed in real property for use in the business or production activity <br/>
<a id="pl.6.23"></a><var>6.23</var>conducted thereon, regardless of size, weight or method of attachment, and mine shafts, <br/>
<a id="pl.6.24"></a><var>6.24</var>tunnels, and other underground openings used to extract ores and minerals taxed under <br/>
<a id="pl.6.25"></a><var>6.25</var>chapter 298 together with steel, concrete, and other materials used to support such openings.<br/>
<a id="pl.6.26"></a><var>6.26</var>(ii) The exclusion provided in clause (i) shall not apply to machinery and equipment <br/>
<a id="pl.6.27"></a><var>6.27</var>includable as real estate by paragraphs (a) and (b) even though such machinery and <br/>
<a id="pl.6.28"></a><var>6.28</var>equipment is used in the business or production activity conducted on the real property if <br/>
<a id="pl.6.29"></a><var>6.29</var>and to the extent such business or production activity consists of furnishing services or <br/>
<a id="pl.6.30"></a><var>6.30</var>products to other buildings or structures which are subject to taxation under this chapter.<br/>
<a id="pl.6.31"></a><var>6.31</var>(iii) The exclusion provided in clause (i) does not apply to the exterior shell of a <br/>
<a id="pl.6.32"></a><var>6.32</var>structure which constitutes walls, ceilings, roofs, or floors if the shell of the structure has <br/>
<a id="pl.6.33"></a><var>6.33</var>structural, insulation, or temperature control functions or provides protection from the <br/>
<a id="pl.7.1"></a><var>7.1</var>elements, unless the structure is primarily used in the production of biofuels, wine, beer, <br/>
<a id="pl.7.2"></a><var>7.2</var>distilled beverages, or dairy products. Such an exterior shell is included in the definition <br/>
<a id="pl.7.3"></a><var>7.3</var>of real property even if it also has special functions distinct from that of a building, or if <br/>
<a id="pl.7.4"></a><var>7.4</var>such an exterior shell is primarily used for the storage of ingredients or materials used in <br/>
<a id="pl.7.5"></a><var>7.5</var>the production of biofuels, wine, beer, distilled beverages, or dairy products or the storage <br/>
<a id="pl.7.6"></a><var>7.6</var>of finished biofuels, wine, beer, distilled beverages, or dairy products.<br/>
<a id="pl.7.7"></a><var>7.7</var>(d) The term real property does not include tools, implements, machinery, <br/>
<a id="pl.7.8"></a><var>7.8</var>equipment, poles, lines, cables, wires, conduit, and station connections which are part of a <br/>
<a id="pl.7.9"></a><var>7.9</var>telephone communications system, regardless of attachment to or installation in real <br/>
<a id="pl.7.10"></a><var>7.10</var>property and regardless of size, weight, or method of attachment or installation.<br/>
<a id="pl.7.11"></a><var>7.11</var><b>EFFECTIVE DATE.</b>This section is effective beginning with assessment year 2015.<br/>
<br/>
<a id="bill.1.8.0"></a><a id="pl.7.12"></a><var>7.12</var>    Sec. 8. Minnesota Statutes 2012, section 275.065, subdivision 1, is amended to read:<br/>
<a id="pl.7.13"></a><var>7.13</var>    Subdivision 1. <b>Proposed levy.</b> (a) Notwithstanding any law or charter to the <br/>
<a id="pl.7.14"></a><var>7.14</var>contrary, on or before September 15 30, each taxing authority, other than a school district, <br/>
<a id="pl.7.15"></a><var>7.15</var>shall adopt a proposed budget and county and each home rule charter or statutory city shall <br/>
<a id="pl.7.16"></a><var>7.16</var>certify to the county auditor the proposed or, in the case of a town, the final property tax <br/>
<a id="pl.7.17"></a><var>7.17</var>levy for taxes payable in the following year.<br/>
<a id="pl.7.18"></a><var>7.18</var>    (b) Notwithstanding any law or charter to the contrary, on or before September 15, <br/>
<a id="pl.7.19"></a><var>7.19</var>each town and each special taxing district shall adopt and certify to the county auditor a <br/>
<a id="pl.7.20"></a><var>7.20</var>proposed property tax levy for taxes payable in the following year. For towns, the final <br/>
<a id="pl.7.21"></a><var>7.21</var>certified levy shall also be considered the proposed levy.<br/>
<a id="pl.7.22"></a><var>7.22</var>    (c) On or before September 30, each school district that has not mutually agreed <br/>
<a id="pl.7.23"></a><var>7.23</var>with its home county to extend this date shall certify to the county auditor the proposed <br/>
<a id="pl.7.24"></a><var>7.24</var>property tax levy for taxes payable in the following year. Each school district that has <br/>
<a id="pl.7.25"></a><var>7.25</var>agreed with its home county to delay the certification of its proposed property tax levy <br/>
<a id="pl.7.26"></a><var>7.26</var>must certify its proposed property tax levy for the following year no later than October <br/>
<a id="pl.7.27"></a><var>7.27</var>7. The school district shall certify the proposed levy as:<br/>
<a id="pl.7.28"></a><var>7.28</var>    (1) a specific dollar amount by school district fund, broken down between <br/>
<a id="pl.7.29"></a><var>7.29</var>voter-approved and non-voter-approved levies and between referendum market value <br/>
<a id="pl.7.30"></a><var>7.30</var>and tax capacity levies; or<br/>
<a id="pl.7.31"></a><var>7.31</var>    (2) the maximum levy limitation certified by the commissioner of education <br/>
<a id="pl.7.32"></a><var>7.32</var>according to section 
         <statute_ref>126C.48, subdivision 1</statute_ref>.<br/>
<a id="pl.7.33"></a><var>7.33</var>    (c) (d) If the board of estimate and taxation or any similar board that establishes <br/>
<a id="pl.7.34"></a><var>7.34</var>maximum tax levies for taxing jurisdictions within a first class city certifies the maximum <br/>
<a id="pl.7.35"></a><var>7.35</var>property tax levies for funds under its jurisdiction by charter to the county auditor by <br/>
<a id="pl.8.1"></a><var>8.1</var>September 15 the date specified in paragraph (a), the city shall be deemed to have certified <br/>
<a id="pl.8.2"></a><var>8.2</var>its levies for those taxing jurisdictions.<br/>
<a id="pl.8.3"></a><var>8.3</var>    (d) (e) For purposes of this section, "taxing authority" includes all home rule and <br/>
<a id="pl.8.4"></a><var>8.4</var>statutory cities, towns, counties, school districts, and "special taxing district" means a<br/>
<a id="pl.8.5"></a><var>8.5</var> special taxing districts district as defined in section 
         <statute_ref>275.066</statute_ref>. Intermediate school districts <br/>
<a id="pl.8.6"></a><var>8.6</var>that levy a tax under chapter 124 or 136D, joint powers boards established under sections <br/>
<statute_ref><a id="pl.8.7"></a><var>8.7</var>123A.44
         </statute_ref> to 
         <statute_ref>123A.446</statute_ref>, and Common School Districts No. 323, Franconia, and No. 815, <br/>
<a id="pl.8.8"></a><var>8.8</var>Prinsburg, are also special taxing districts for purposes of this section.<br/>
<a id="pl.8.9"></a><var>8.9</var>(e) (f) At the meeting at which the a taxing authority, other than a town, adopts its <br/>
<a id="pl.8.10"></a><var>8.10</var>proposed tax levy under paragraph (a) or (b) this subdivision, the taxing authority shall <br/>
<a id="pl.8.11"></a><var>8.11</var>announce the time and place of its subsequent regularly scheduled meetings at which <br/>
<a id="pl.8.12"></a><var>8.12</var>the budget and levy will be discussed and at which the public will be allowed to speak. <br/>
<a id="pl.8.13"></a><var>8.13</var>The time and place of those meetings must be included in the proceedings or summary <br/>
<a id="pl.8.14"></a><var>8.14</var>of proceedings published in the official newspaper of the taxing authority under section <br/>
<statute_ref><a id="pl.8.15"></a><var>8.15</var>123B.09
         </statute_ref>, 
         <statute_ref>375.12</statute_ref>, or 
         <statute_ref>412.191</statute_ref>.<br/>
<a id="pl.8.16"></a><var>8.16</var><b>EFFECTIVE DATE.</b>This section is effective beginning with taxes payable in 2015.<br/>
<br/>
<a id="bill.1.9.0"></a><a id="pl.8.17"></a><var>8.17</var>    Sec. 9. Minnesota Statutes 2012, section 279.03, subdivision 2, is amended to read:<br/>
<a id="pl.8.18"></a><var>8.18</var>    Subd. 2. <b>Composite judgment.</b> Amounts included in composite judgments <br/>
<a id="pl.8.19"></a><var>8.19</var>authorized by section 
<statute_ref>279.37, subdivision 1</statute_ref>, and confessed on or after July 1, 1982, are <br/>
<a id="pl.8.20"></a><var>8.20</var>subject to interest at the rate determined pursuant to section 
<statute_ref>549.09</statute_ref>. Amounts confessed <br/>
<a id="pl.8.21"></a><var>8.21</var>under this authority after December 31, 1990, (a) Except as provided in paragraph (b), <br/>
<a id="pl.8.22"></a><var>8.22</var>amounts included in composite judgments authorized by section 279.37, subdivision 1, <br/>
<a id="pl.8.23"></a><var>8.23</var> are subject to interest at the rate calculated under subdivision 1a. During each calendar <br/>
<a id="pl.8.24"></a><var>8.24</var>year, interest shall accrue on the unpaid balance of the composite judgment from the time <br/>
<a id="pl.8.25"></a><var>8.25</var>it is confessed until it is paid. The rate of interest is subject to change each year in the <br/>
<a id="pl.8.26"></a><var>8.26</var>same manner that section 
<statute_ref>549.09</statute_ref> or subdivision 1a, whichever is applicable, for rate <br/>
<a id="pl.8.27"></a><var>8.27</var>changes. Interest on the unpaid contract balance on judgments confessed before July 1, <br/>
<a id="pl.8.28"></a><var>8.28</var>1982, is payable at the rate applicable to the judgment at the time that it was confessed<br/>
<a id="pl.8.29"></a><var>8.29</var> The interest rate established at the time the judgment is confessed shall remain for the <br/>
<a id="pl.8.30"></a><var>8.30</var>duration of that judgment.<br/>
<a id="pl.8.31"></a><var>8.31</var>(b) A confession of judgment covering any part of a parcel classified as 1a or 1b, and <br/>
<a id="pl.8.32"></a><var>8.32</var>used as the primary homestead of the owner, is subject to interest at the rate provided in <br/>
<a id="pl.8.33"></a><var>8.33</var>section 279.37, subdivision 2, paragraph (b).<br/>
<a id="pl.8.34"></a><var>8.34</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2015.<br/>
<br/>
<a id="bill.1.10.0"></a><a id="pl.9.1"></a><var>9.1</var>    Sec. 10. Minnesota Statutes 2013 Supplement, section 279.37, subdivision 2, is <br/>
<a id="pl.9.2"></a><var>9.2</var>amended to read:<br/>
<a id="pl.9.3"></a><var>9.3</var>    Subd. 2. <b>Installment payments.</b> (a) The owner of any such parcel, or any person to <br/>
<a id="pl.9.4"></a><var>9.4</var>whom the right to pay taxes has been given by statute, mortgage, or other agreement, may <br/>
<a id="pl.9.5"></a><var>9.5</var>make and file with the county auditor of the county in which the parcel is located a written <br/>
<a id="pl.9.6"></a><var>9.6</var>offer to pay the current taxes each year before they become delinquent, or to contest the <br/>
<a id="pl.9.7"></a><var>9.7</var>taxes under Minnesota Statutes 1941, sections 
         <statute_ref>278.01</statute_ref> to 
         <statute_ref>278.13</statute_ref>, and agree to confess <br/>
<a id="pl.9.8"></a><var>9.8</var>judgment for the amount provided, as determined by the county auditor. By filing the <br/>
<a id="pl.9.9"></a><var>9.9</var>offer, the owner waives all irregularities in connection with the tax proceedings affecting <br/>
<a id="pl.9.10"></a><var>9.10</var>the parcel and any defense or objection which the owner may have to the proceedings, and <br/>
<a id="pl.9.11"></a><var>9.11</var>also waives the requirements of any notice of default in the payment of any installment or <br/>
<a id="pl.9.12"></a><var>9.12</var>interest to become due pursuant to the composite judgment to be so entered. Unless the <br/>
<a id="pl.9.13"></a><var>9.13</var>property is subject to subdivision 1a, with the offer, the owner shall (i) tender one-tenth of <br/>
<a id="pl.9.14"></a><var>9.14</var>the amount of the delinquent taxes, costs, penalty, and interest, and (ii) tender all current <br/>
<a id="pl.9.15"></a><var>9.15</var>year taxes and penalty due at the time the confession of judgment is entered. In the offer, <br/>
<a id="pl.9.16"></a><var>9.16</var>the owner shall agree to pay the balance in nine equal installments, with interest as provided <br/>
<a id="pl.9.17"></a><var>9.17</var>in section 
         <statute_ref>279.03</statute_ref>, payable annually on installments remaining unpaid from time to time, on <br/>
<a id="pl.9.18"></a><var>9.18</var>or before December 31 of each year following the year in which judgment was confessed.<br/>
<a id="pl.9.19"></a><var>9.19</var>(b) If any part of the parcel consists of real estate classified as 1a or 1b and used <br/>
<a id="pl.9.20"></a><var>9.20</var>as the primary homestead by the owner of the property, the interest rate on offers made <br/>
<a id="pl.9.21"></a><var>9.21</var>under paragraph (a) shall be set annually by the commissioner of revenue at the greater of <br/>
<a id="pl.9.22"></a><var>9.22</var>five percent or two percent above the prime rate charged by banks during the six-month <br/>
<a id="pl.9.23"></a><var>9.23</var>period ending on September 30 of that year, rounded to the nearest full percent, provided <br/>
<a id="pl.9.24"></a><var>9.24</var>that the rate shall not exceed the maximum annum rate specified under section 279.03, <br/>
<a id="pl.9.25"></a><var>9.25</var>subdivision 1a. The rate of interest becomes effective on January 1 of the immediately <br/>
<a id="pl.9.26"></a><var>9.26</var>succeeding year. The determination of the commissioner pursuant to this subdivision shall <br/>
<a id="pl.9.27"></a><var>9.27</var>not be considered a "rule" and shall not be subject to the Administrative Procedure Act <br/>
<a id="pl.9.28"></a><var>9.28</var>contained in chapter 14. In the event of default occurring in the payments to be made <br/>
<a id="pl.9.29"></a><var>9.29</var>under any confessed judgment entered pursuant to this paragraph, the taxes and penalties <br/>
<a id="pl.9.30"></a><var>9.30</var>due shall be subject to the interest rate specified in section 279.03.<br/>
<a id="pl.9.31"></a><var>9.31</var>For purposes of this subdivision:<br/>
<a id="pl.9.32"></a><var>9.32</var>(1) the term "prime rate charged by banks" means the average predominant prime <br/>
<a id="pl.9.33"></a><var>9.33</var>rate quoted by commercial banks to large businesses, as determined by the Board of <br/>
<a id="pl.9.34"></a><var>9.34</var>Governors of the Federal Reserve System; and<br/>
<a id="pl.10.1"></a><var>10.1</var>(2) "default" means the cancellation of the confession of judgment due to <br/>
<a id="pl.10.2"></a><var>10.2</var>nonpayment of the current year tax or failure to make any installment payment required by <br/>
<a id="pl.10.3"></a><var>10.3</var>this confessed judgment within 60 days from the date on which payment was due.<br/>
<a id="pl.10.4"></a><var>10.4</var>(c) The interest rate established at the time the judgment is confessed shall remain <br/>
<a id="pl.10.5"></a><var>10.5</var>for the duration of that judgment. By October 15 of each year, the commissioner of <br/>
<a id="pl.10.6"></a><var>10.6</var>revenue must determine the rate of interest as provided under paragraph (b) and, by <br/>
<a id="pl.10.7"></a><var>10.7</var>November 1 of each year, must certify the rate to the county auditor.<br/>
<a id="pl.10.8"></a><var>10.8</var>(d) A qualified property owner eligible to enter into a second confession of judgment <br/>
<a id="pl.10.9"></a><var>10.9</var>may do so at the interest rate provided in paragraph (b).<br/>
<a id="pl.10.10"></a><var>10.10</var>(e) Repurchase agreements or contracts for repurchase for properties being <br/>
<a id="pl.10.11"></a><var>10.11</var>repurchased under section 282.261 are not eligible to receive the interest rate provided in <br/>
<a id="pl.10.12"></a><var>10.12</var>paragraph (b).<br/>
<a id="pl.10.13"></a><var>10.13</var>(f) The offer must be substantially as follows:<br/>
<a id="pl.10.14"></a><var>10.14</var>"To the court administrator of the district court of ........... county, I, ....................., <br/>
<a id="pl.10.15"></a><var>10.15</var>am the owner of the following described parcel of real estate located in .................... <br/>
<a id="pl.10.16"></a><var>10.16</var>county, Minnesota:<br/>
<a id="pl.10.17"></a><var>10.17</var>.............................. Upon that real estate there are delinquent taxes for the year ........., and <br/>
<a id="pl.10.18"></a><var>10.18</var>prior years, as follows: (here insert year of delinquency and the total amount of delinquent <br/>
<a id="pl.10.19"></a><var>10.19</var>taxes, costs, interest, and penalty). By signing this document I offer to confess judgment in <br/>
<a id="pl.10.20"></a><var>10.20</var>the sum of $...... and waive all irregularities in the tax proceedings affecting these taxes and <br/>
<a id="pl.10.21"></a><var>10.21</var>any defense or objection which I may have to them, and direct judgment to be entered for <br/>
<a id="pl.10.22"></a><var>10.22</var>the amount stated above, minus the sum of $............, to be paid with this document, which <br/>
<a id="pl.10.23"></a><var>10.23</var>is one-tenth or one-fifth of the amount of the taxes, costs, penalty, and interest stated above. <br/>
<a id="pl.10.24"></a><var>10.24</var>I agree to pay the balance of the judgment in nine or four equal, annual installments, with <br/>
<a id="pl.10.25"></a><var>10.25</var>interest as provided in section 
         <statute_ref>279.03</statute_ref>, payable annually, on the installments remaining <br/>
<a id="pl.10.26"></a><var>10.26</var>unpaid. I agree to pay the installments and interest on or before December 31 of each year <br/>
<a id="pl.10.27"></a><var>10.27</var>following the year in which this judgment is confessed and current taxes each year before <br/>
<a id="pl.10.28"></a><var>10.28</var>they become delinquent, or within 30 days after the entry of final judgment in proceedings <br/>
<a id="pl.10.29"></a><var>10.29</var>to contest the taxes under Minnesota Statutes, sections 
         <statute_ref>278.01</statute_ref> to 
         <statute_ref>278.13</statute_ref>.<br/>
<a id="pl.10.30"></a><var>10.30</var>Dated .............., ......."<br/>
<a id="pl.10.31"></a><var>10.31</var><b>EFFECTIVE DATE.</b>This section is effective for confessions of judgment entered <br/>
<a id="pl.10.32"></a><var>10.32</var>into on or after January 1, 2015.<br/>
<br/>
<a id="bill.1.11.0"></a><a id="pl.10.33"></a><var>10.33</var>    Sec. 11. Minnesota Statutes 2012, section 383E.21, subdivision 1, is amended to read:<br/>
<a id="pl.11.1"></a><var>11.1</var>    Subdivision 1. <b>Authority to </b><b>levy property taxes and </b><b>incur debt.</b> (a) To finance the <br/>
<a id="pl.11.2"></a><var>11.2</var>cost of designing, constructing, and acquiring countywide public safety improvements <br/>
<a id="pl.11.3"></a><var>11.3</var>and equipment, including personal property, benefiting both Anoka County and the <br/>
<a id="pl.11.4"></a><var>11.4</var>municipalities located within Anoka County, the governing body of Anoka County may<br/>
<a id="pl.11.5"></a><var>11.5</var> levy property taxes for public safety improvements and equipment, and issue:<br/>
<a id="pl.11.6"></a><var>11.6</var>(1) capital improvement bonds under the provisions of section 373.40 as if the <br/>
<a id="pl.11.7"></a><var>11.7</var>infrastructure and equipment qualified as a "capital improvement" within the meaning of <br/>
<a id="pl.11.8"></a><var>11.8</var>section 373.40, subdivision 1, paragraph (b); and<br/>
<a id="pl.11.9"></a><var>11.9</var>(2) capital notes under the provisions of section 373.01, subdivision 3, as if the <br/>
<a id="pl.11.10"></a><var>11.10</var>equipment qualified as "capital equipment" within the meaning of section 373.01, <br/>
<a id="pl.11.11"></a><var>11.11</var>subdivision 3. Personal property acquired with the proceeds of the bonds or capital <br/>
<a id="pl.11.12"></a><var>11.12</var>notes issued under this section must have an expected useful life at least as long as the <br/>
<a id="pl.11.13"></a><var>11.13</var>term of debt.<br/>
<a id="pl.11.14"></a><var>11.14</var>(b) The outstanding principal amount of the bonds and the capital notes issued under <br/>
<a id="pl.11.15"></a><var>11.15</var>this section may not exceed $8,000,000 at any time. Any bonds or notes issued pursuant <br/>
<a id="pl.11.16"></a><var>11.16</var>to this section must only be issued after approval by a majority vote of the Anoka County <br/>
<a id="pl.11.17"></a><var>11.17</var>Joint Law Enforcement Council, a joint powers board.<br/>
<a id="pl.11.18"></a><var>11.18</var><b>EFFECTIVE DATE.</b>This section is effective beginning for taxes payable in 2013 <br/>
<a id="pl.11.19"></a><var>11.19</var>and expires under section 383E.21, subdivision 3.<br/>
<br/>
<a id="bill.1.12.0"></a><a id="pl.11.20"></a><var>11.20</var>    Sec. 12. Minnesota Statutes 2012, section 383E.21, subdivision 2, is amended to read:<br/>
<a id="pl.11.21"></a><var>11.21</var>    Subd. 2. <b>Treatment of levy.</b> Notwithstanding sections 275.065, subdivision 3, <br/>
<a id="pl.11.22"></a><var>11.22</var>and 276.04, the county may report the tax attributable to any levy to fund public safety <br/>
<a id="pl.11.23"></a><var>11.23</var>capital improvements or equipment projects approved by the Anoka County Joint Law <br/>
<a id="pl.11.24"></a><var>11.24</var>Enforcement Council or pay principal and interest on bonds or notes issued under this <br/>
<a id="pl.11.25"></a><var>11.25</var>section as a separate line item on the proposed property tax notice and the property tax <br/>
<a id="pl.11.26"></a><var>11.26</var>statement. Notwithstanding any provision in chapter 275 or 373 to the contrary, bonds or <br/>
<a id="pl.11.27"></a><var>11.27</var>notes issued by Anoka County under this section must not be included in the computation <br/>
<a id="pl.11.28"></a><var>11.28</var>of the net debt of Anoka County.<br/>
<a id="pl.11.29"></a><var>11.29</var><b>EFFECTIVE DATE.</b>This section is effective beginning for taxes payable in 2013 <br/>
<a id="pl.11.30"></a><var>11.30</var>and expires under section 383E.21, subdivision 3.<br/>
<br/>
<a id="bill.1.13.0"></a><a id="pl.11.31"></a><var>11.31</var>    Sec. 13. Minnesota Statutes 2013 Supplement, section 428A.02, subdivision 1, is <br/>
<a id="pl.11.32"></a><var>11.32</var>amended to read:<br/>
<a id="pl.12.1"></a><var>12.1</var>    Subdivision 1. <b>Ordinance.</b> (a) The governing body of a city may adopt an ordinance <br/>
<a id="pl.12.2"></a><var>12.2</var>establishing a special service district. Only property that is wholly or partially classified <br/>
<a id="pl.12.3"></a><var>12.3</var>as class 3 under section 
         <statute_ref>273.13 </statute_ref>and used for commercial, industrial, or public utility <br/>
<a id="pl.12.4"></a><var>12.4</var>purposes, or is vacant land zoned or designated on a land use plan for commercial or <br/>
<a id="pl.12.5"></a><var>12.5</var>industrial use and located in the special service district, may be subject to the charges <br/>
<a id="pl.12.6"></a><var>12.6</var>imposed by the city on the special service district. Other types of property properties may <br/>
<a id="pl.12.7"></a><var>12.7</var>be included within the boundaries of the special service district but are not subject to the <br/>
<a id="pl.12.8"></a><var>12.8</var>levies or charges imposed by the city on the special service district.<br/>
<a id="pl.12.9"></a><var>12.9</var>    (b) If 50 percent or more of the estimated market value of a parcel of property <br/>
<a id="pl.12.10"></a><var>12.10</var>is classified under section 
<statute_ref>273.13</statute_ref> as commercial, industrial, or vacant land zoned or <br/>
<a id="pl.12.11"></a><var>12.11</var>designated on a land use plan for commercial or industrial use, or public utility for the <br/>
<a id="pl.12.12"></a><var>12.12</var>current assessment year a property is subject to a service charge, then the entire taxable <br/>
<a id="pl.12.13"></a><var>12.13</var>market value of the property, including any portion not classified as class 3, is may be<br/>
<a id="pl.12.14"></a><var>12.14</var> subject to a the service charge based on net tax capacity for purposes of sections 
<statute_ref>428A.01<br/>
</statute_ref><a id="pl.12.15"></a><var>12.15</var> to 
<statute_ref>428A.10</statute_ref>.<br/>
<a id="pl.12.16"></a><var>12.16</var>    (c) The ordinance shall describe with particularity the area within the city to be <br/>
<a id="pl.12.17"></a><var>12.17</var>included in the district and the special services to be furnished in the district. The <br/>
<a id="pl.12.18"></a><var>12.18</var>ordinance may not be adopted until after a public hearing has been held on the question. <br/>
<a id="pl.12.19"></a><var>12.19</var>Notice of the hearing shall include the time and place of hearing, a map showing the <br/>
<a id="pl.12.20"></a><var>12.20</var>boundaries of the proposed district, and a statement that all persons owning property in the <br/>
<a id="pl.12.21"></a><var>12.21</var>proposed district that would be subject to a service charge will be given opportunity to be <br/>
<a id="pl.12.22"></a><var>12.22</var>heard at the hearing. Within 30 days after adoption of the ordinance under this subdivision, <br/>
<a id="pl.12.23"></a><var>12.23</var>the governing body shall send a copy of the ordinance to the commissioner of revenue.<br/>
<a id="pl.12.24"></a><var>12.24</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment, <br/>
<a id="pl.12.25"></a><var>12.25</var>and applies to service district charges for 2014 and thereafter.<br/>
<br/>
<a id="bill.1.14.0"></a><a id="pl.12.26"></a><var>12.26</var>    Sec. 14. Minnesota Statutes 2013 Supplement, section 477A.0124, subdivision 2, <br/>
<a id="pl.12.27"></a><var>12.27</var>is amended to read:<br/>
<a id="pl.12.28"></a><var>12.28</var>    Subd. 2. <b>Definitions.</b> (a) For the purposes of this section, the following terms <br/>
<a id="pl.12.29"></a><var>12.29</var>have the meanings given them.<br/>
<a id="pl.12.30"></a><var>12.30</var>    (b) "County program aid" means the sum of "county need aid," "county tax base <br/>
<a id="pl.12.31"></a><var>12.31</var>equalization aid," and "county transition aid."<br/>
<a id="pl.12.32"></a><var>12.32</var>    (c) "Age-adjusted population" means a county's population multiplied by the county <br/>
<a id="pl.12.33"></a><var>12.33</var>age index.<br/>
<a id="pl.13.1"></a><var>13.1</var>    (d) "County age index" means the percentage of the population over age 65 within <br/>
<a id="pl.13.2"></a><var>13.2</var>the county divided by the percentage of the population over age 65 within the state, except <br/>
<a id="pl.13.3"></a><var>13.3</var>that the age index for any county may not be greater than 1.8 nor less than 0.8.<br/>
<a id="pl.13.4"></a><var>13.4</var>    (e) "Population over age 65" means the population over age 65 established as of <br/>
<a id="pl.13.5"></a><var>13.5</var>July 15 in an aid calculation year by the most recent federal census, by a special census <br/>
<a id="pl.13.6"></a><var>13.6</var>conducted under contract with the United States Bureau of the Census, by a population <br/>
<a id="pl.13.7"></a><var>13.7</var>estimate made by the Metropolitan Council, or by a population estimate of the state <br/>
<a id="pl.13.8"></a><var>13.8</var>demographer made pursuant to section 
         <statute_ref>4A.02</statute_ref>, whichever is the most recent as to the stated <br/>
<a id="pl.13.9"></a><var>13.9</var>date of the count or estimate for the preceding calendar year and which has been certified <br/>
<a id="pl.13.10"></a><var>13.10</var>to the commissioner of revenue on or before July 15 of the aid calculation year. A revision <br/>
<a id="pl.13.11"></a><var>13.11</var>to an estimate or count is effective for these purposes only if certified to the commissioner <br/>
<a id="pl.13.12"></a><var>13.12</var>on or before July 15 of the aid calculation year. Clerical errors in the certification or use of <br/>
<a id="pl.13.13"></a><var>13.13</var>estimates and counts established as of July 15 in the aid calculation year are subject to <br/>
<a id="pl.13.14"></a><var>13.14</var>correction within the time periods allowed under section 
         <statute_ref>477A.014</statute_ref>.<br/>
<a id="pl.13.15"></a><var>13.15</var>    (f) "Part I crimes" means the three-year average annual number of Part I crimes <br/>
<a id="pl.13.16"></a><var>13.16</var>reported for each county by the Department of Public Safety for the most recent years <br/>
<a id="pl.13.17"></a><var>13.17</var>available. By July 1 of each year, the commissioner of public safety shall certify to the <br/>
<a id="pl.13.18"></a><var>13.18</var>commissioner of revenue the number of Part I crimes reported for each county for the <br/>
<a id="pl.13.19"></a><var>13.19</var>three most recent calendar years available.<br/>
<a id="pl.13.20"></a><var>13.20</var>    (g) "Households receiving food stamps" means the average monthly number of <br/>
<a id="pl.13.21"></a><var>13.21</var>households receiving food stamps for the three most recent years for which data is <br/>
<a id="pl.13.22"></a><var>13.22</var>available. By July 1 of each year, the commissioner of human services must certify to the <br/>
<a id="pl.13.23"></a><var>13.23</var>commissioner of revenue the average monthly number of households in the state and in <br/>
<a id="pl.13.24"></a><var>13.24</var>each county that receive food stamps, for the three most recent calendar years available.<br/>
<a id="pl.13.25"></a><var>13.25</var>(h) "Watercraft trailer launch" means any public water access site designed for <br/>
<a id="pl.13.26"></a><var>13.26</var>launching watercraft.<br/>
<a id="pl.13.27"></a><var>13.27</var>(i) "Watercraft trailer parking space" means a parking space designated for a boat <br/>
<a id="pl.13.28"></a><var>13.28</var>trailer at any public water access site designed for launching watercraft.<br/>
<a id="pl.13.29"></a><var>13.29</var>    (h) (j) "County net tax capacity" means the county's adjusted net tax capacity under <br/>
<a id="pl.13.30"></a><var>13.30</var>section 
         <statute_ref>273.1325</statute_ref>.<br/>
<a id="pl.13.31"></a><var>13.31</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.13.32"></a><var>13.32</var>2014 and thereafter.<br/>
<br/>
<a id="bill.1.15.0"></a><a id="pl.13.33"></a><var>13.33</var>    Sec. 15. Minnesota Statutes 2012, section 477A.0124, subdivision 3, is amended to <br/>
<a id="pl.13.34"></a><var>13.34</var>read:<br/>
<a id="pl.14.1"></a><var>14.1</var>    Subd. 3. <b>County need aid.</b> For 2005 and subsequent years, (a) The money <br/>
<a id="pl.14.2"></a><var>14.2</var>appropriated to county need aid each calendar year under section 477A.03, subdivision <br/>
<a id="pl.14.3"></a><var>14.3</var>2b, paragraph (a), shall be allocated as follows: 40 percent based on each county's share <br/>
<a id="pl.14.4"></a><var>14.4</var>of age-adjusted population, 40 percent based on each county's share of the state total of <br/>
<a id="pl.14.5"></a><var>14.5</var>households receiving food stamps, and 20 percent based on each county's share of the <br/>
<a id="pl.14.6"></a><var>14.6</var>state total of Part I crimes.<br/>
<a id="pl.14.7"></a><var>14.7</var>(b) The money appropriated to the county need aid each calendar year under section <br/>
<a id="pl.14.8"></a><var>14.8</var>477A.03, subdivision 2b, paragraph (c), shall be allocated as follows: 50 percent based on <br/>
<a id="pl.14.9"></a><var>14.9</var>each county's share of watercraft trailer launches and 50 percent based on each county's <br/>
<a id="pl.14.10"></a><var>14.10</var>share of watercraft trailer parking spaces.<br/>
<a id="pl.14.11"></a><var>14.11</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.14.12"></a><var>14.12</var>2014 and thereafter.<br/>
<br/>
<a id="bill.1.16.0"></a><a id="pl.14.13"></a><var>14.13</var>    Sec. 16. Minnesota Statutes 2012, section 477A.0124, is amended by adding a <br/>
<a id="pl.14.14"></a><var>14.14</var>subdivision to read:<br/>
<a id="pl.14.15"></a><var>14.15</var>    Subd. 3a. <b>Use of proceeds.</b> A county that receives a distribution under subdivision <br/>
<a id="pl.14.16"></a><var>14.16</var>3, paragraph (b), must use the proceeds solely to prevent the introduction of or limit <br/>
<a id="pl.14.17"></a><var>14.17</var>the spread of aquatic invasive species at all access sites within the county. The county <br/>
<a id="pl.14.18"></a><var>14.18</var>must establish, by resolution or through adoption of a plan, guidelines for the use of <br/>
<a id="pl.14.19"></a><var>14.19</var>the proceeds. The guidelines set by the county board may include, but are not limited <br/>
<a id="pl.14.20"></a><var>14.20</var>to, providing for site-level management, countywide awareness, and other procedures <br/>
<a id="pl.14.21"></a><var>14.21</var>that the county finds necessary to achieve compliance. The county may appropriate the <br/>
<a id="pl.14.22"></a><var>14.22</var>proceeds directly, or may use any portion of the proceeds to provide funding for a joint <br/>
<a id="pl.14.23"></a><var>14.23</var>powers board or cooperative agreement with another political subdivision, a soil and water <br/>
<a id="pl.14.24"></a><var>14.24</var>conservation district in the county, a watershed district in the county, or a lake association <br/>
<a id="pl.14.25"></a><var>14.25</var>located in the county. Any money appropriated by the county to a different entity or <br/>
<a id="pl.14.26"></a><var>14.26</var>political subdivision must be used as required under this section.<br/>
<a id="pl.14.27"></a><var>14.27</var>For purposes of this section, "aquatic invasive species" means nonnative aquatic <br/>
<a id="pl.14.28"></a><var>14.28</var>organisms that invade water beyond their natural and historic range.<br/>
<a id="pl.14.29"></a><var>14.29</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.14.30"></a><var>14.30</var>2014 and thereafter.<br/>
<br/>
<a id="bill.1.17.0"></a><a id="pl.14.31"></a><var>14.31</var>    Sec. 17. Minnesota Statutes 2013 Supplement, section 477A.013, subdivision 8, <br/>
<a id="pl.14.32"></a><var>14.32</var>is amended to read:<br/>
<a id="pl.15.1"></a><var>15.1</var>    Subd. 8. <b>City formula aid.</b> (a) For aids payable in 2014 only, the formula aid for a <br/>
<a id="pl.15.2"></a><var>15.2</var>city is equal to the sum of (1) its 2013 certified aid, and (2) the product of (i) the difference <br/>
<a id="pl.15.3"></a><var>15.3</var>between its unmet need and its 2013 certified aid, and (ii) the aid gap percentage.<br/>
<a id="pl.15.4"></a><var>15.4</var>    (b) For aids payable in 2015 and thereafter, the formula aid for a city is equal to the <br/>
<a id="pl.15.5"></a><var>15.5</var>sum of (1) its formula aid in the previous year and (2) the product of (i) the difference <br/>
<a id="pl.15.6"></a><var>15.6</var>between its unmet need and its certified formula aid in the previous year under subdivision <br/>
<a id="pl.15.7"></a><var>15.7</var>9, and (ii) the aid gap percentage.<br/>
<a id="pl.15.8"></a><var>15.8</var>    (c) For aids payable in 2015 and thereafter, if a city's certified aid from the previous <br/>
<a id="pl.15.9"></a><var>15.9</var>year is greater than the sum of its unmet need plus its aid adjustment under subdivision 13, <br/>
<a id="pl.15.10"></a><var>15.10</var>its formula aid is adjusted to equal its unmet need.<br/>
<a id="pl.15.11"></a><var>15.11</var>    (d) No city may have a formula aid amount less than zero. The aid gap percentage <br/>
<a id="pl.15.12"></a><var>15.12</var>must be the same for all cities subject to paragraph (b).<br/>
<a id="pl.15.13"></a><var>15.13</var>    (e) The applicable aid gap percentage must be calculated by the Department of <br/>
<a id="pl.15.14"></a><var>15.14</var>Revenue so that the total of the aid under subdivision 9 equals the total amount available <br/>
<a id="pl.15.15"></a><var>15.15</var>for aid under section 
         <statute_ref>477A.03</statute_ref>. Data used in calculating aids to cities under sections <br/>
<statute_ref><a id="pl.15.16"></a><var>15.16</var>477A.011
         </statute_ref> to 
         <statute_ref>477A.013</statute_ref> shall be the most recently available data as of January 1 in the <br/>
<a id="pl.15.17"></a><var>15.17</var>year in which the aid is calculated.<br/>
<a id="pl.15.18"></a><var>15.18</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.15.19"></a><var>15.19</var>2015 and thereafter.<br/>
<br/>
<a id="bill.1.18.0"></a><a id="pl.15.20"></a><var>15.20</var>    Sec. 18. Minnesota Statutes 2013 Supplement, section 477A.03, subdivision 2b, <br/>
<a id="pl.15.21"></a><var>15.21</var>is amended to read:<br/>
<a id="pl.15.22"></a><var>15.22</var>    Subd. 2b. <b>Counties.</b> (a) For aids payable in 2014 2015 and thereafter, the total <br/>
<a id="pl.15.23"></a><var>15.23</var>aid payable under section 
         <statute_ref>477A.0124, subdivision 3</statute_ref>, is $100,795,000. Each calendar <br/>
<a id="pl.15.24"></a><var>15.24</var>year, $500,000 of this appropriation shall be retained by the commissioner of revenue to <br/>
<a id="pl.15.25"></a><var>15.25</var>make reimbursements to the commissioner of management and budget for payments <br/>
<a id="pl.15.26"></a><var>15.26</var>made under section 
         <statute_ref>611.27</statute_ref>. The reimbursements shall be to defray the additional costs <br/>
<a id="pl.15.27"></a><var>15.27</var>associated with court-ordered counsel under section 
         <statute_ref>611.27</statute_ref>. Any retained amounts not <br/>
<a id="pl.15.28"></a><var>15.28</var>used for reimbursement in a year shall be included in the next distribution of county <br/>
<a id="pl.15.29"></a><var>15.29</var>need aid that is certified to the county auditors for the purpose of property tax reduction <br/>
<a id="pl.15.30"></a><var>15.30</var>for the next taxes payable year.<br/>
<a id="pl.15.31"></a><var>15.31</var>    (b) For aids payable in 2014 2015 and thereafter, the total aid under section <br/>
<statute_ref><a id="pl.15.32"></a><var>15.32</var>477A.0124, subdivision 4
         </statute_ref>, is $104,909,575. The commissioner of revenue shall transfer <br/>
<a id="pl.15.33"></a><var>15.33</var>to the commissioner of management and budget $207,000 annually for the cost of <br/>
<a id="pl.15.34"></a><var>15.34</var>preparation of local impact notes as required by section 
         <statute_ref>3.987</statute_ref>, and other local government <br/>
<a id="pl.15.35"></a><var>15.35</var>activities. The commissioner of revenue shall transfer to the commissioner of education <br/>
<a id="pl.16.1"></a><var>16.1</var>$7,000 annually for the cost of preparation of local impact notes for school districts <br/>
<a id="pl.16.2"></a><var>16.2</var>as required by section 
         <statute_ref>3.987</statute_ref>. The commissioner of revenue shall deduct the amounts <br/>
<a id="pl.16.3"></a><var>16.3</var>transferred under this paragraph from the appropriation under this paragraph. The amounts <br/>
<a id="pl.16.4"></a><var>16.4</var>transferred are appropriated to the commissioner of management and budget and the <br/>
<a id="pl.16.5"></a><var>16.5</var>commissioner of education respectively.<br/>
<a id="pl.16.6"></a><var>16.6</var>(c) For aids payable in 2015 and thereafter, the total aid payable under section <br/>
<a id="pl.16.7"></a><var>16.7</var>477A.0124, subdivision 3, paragraph (b), is $10,000,000. Notwithstanding section <br/>
<a id="pl.16.8"></a><var>16.8</var>477A.015, the first installment of aid payable in 2015 under this paragraph shall be made <br/>
<a id="pl.16.9"></a><var>16.9</var>on March 15, 2015, and the second installment shall be made on July 20, 2015.<br/>
<a id="pl.16.10"></a><var>16.10</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br/>
<a id="pl.16.11"></a><var>16.11</var>2015 and thereafter.<br/>
<br/>
<a id="bill.1.19.0"></a><a id="pl.16.12"></a><var>16.12</var>    Sec. 19. Minnesota Statutes 2013 Supplement, section 477A.12, subdivision 1, is <br/>
<a id="pl.16.13"></a><var>16.13</var>amended to read:<br/>
<a id="pl.16.14"></a><var>16.14</var>    Subdivision 1. <b>Types of land; payments.</b>  The following amounts are annually <br/>
<a id="pl.16.15"></a><var>16.15</var>appropriated to the commissioner of natural resources from the general fund for transfer <br/>
<a id="pl.16.16"></a><var>16.16</var>to the commissioner of revenue. The commissioner of revenue shall pay the transferred <br/>
<a id="pl.16.17"></a><var>16.17</var>funds to counties as required by sections 
         <statute_ref>477A.11</statute_ref> to 
         <statute_ref>477A.14</statute_ref>. The amounts, based on the <br/>
<a id="pl.16.18"></a><var>16.18</var>acreage as of July 1 of each year prior to the payment year, are:<br/>
<a id="pl.16.19"></a><var>16.19</var>(1) $5.133 multiplied by the total number of acres of acquired natural resources land <br/>
<a id="pl.16.20"></a><var>16.20</var>or, at the county's option three-fourths of one percent of the appraised value of all acquired <br/>
<a id="pl.16.21"></a><var>16.21</var>natural resources land in the county, whichever is greater;<br/>
<a id="pl.16.22"></a><var>16.22</var>(2) $5.133, multiplied by the total number of acres of transportation wetland or, at <br/>
<a id="pl.16.23"></a><var>16.23</var>the county's option, three-fourths of one percent of the appraised value of all transportation <br/>
<a id="pl.16.24"></a><var>16.24</var>wetland in the county, whichever is greater;<br/>
<a id="pl.16.25"></a><var>16.25</var>(3) $5.133, multiplied by the total number of acres of wildlife management land, or, <br/>
<a id="pl.16.26"></a><var>16.26</var>at the county's option, three-fourths of one percent of the appraised value of all wildlife <br/>
<a id="pl.16.27"></a><var>16.27</var>management land in the county, whichever is greater;<br/>
<a id="pl.16.28"></a><var>16.28</var>(4) 50 percent of the dollar amount as determined under clause (1), multiplied by <br/>
<a id="pl.16.29"></a><var>16.29</var>the number of acres of military refuge land in the county;<br/>
<a id="pl.16.30"></a><var>16.30</var>(5) $1.50, multiplied by the number of acres of county-administered other natural <br/>
<a id="pl.16.31"></a><var>16.31</var>resources land in the county;<br/>
<a id="pl.16.32"></a><var>16.32</var>(6) $5.133, multiplied by the total number of acres of land utilization project land <br/>
<a id="pl.16.33"></a><var>16.33</var>in the county;<br/>
<a id="pl.16.34"></a><var>16.34</var>(7) $1.50, multiplied by the number of acres of commissioner-administered other <br/>
<a id="pl.16.35"></a><var>16.35</var>natural resources land in the county; and<br/>
<a id="pl.17.1"></a><var>17.1</var>    (8) without regard to acreage, and notwithstanding the rules adopted under section <br/>
<a id="pl.17.2"></a><var>17.2</var>84A.55, $300,000 for local assessments under section 
         <statute_ref>84A.55, subdivision 9</statute_ref>, that shall be <br/>
<a id="pl.17.3"></a><var>17.3</var>divided and distributed to the counties containing state-owned lands within a conservation <br/>
<a id="pl.17.4"></a><var>17.4</var>area in proportion to each county's percentage of the total annual ditch assessments.<br/>
<a id="pl.17.5"></a><var>17.5</var><b>EFFECTIVE DATE.</b>The amendments to clause (3) are effective for payments <br/>
<a id="pl.17.6"></a><var>17.6</var>made in calendar year 2015 and later. The amendments to clause (8) are effective for <br/>
<a id="pl.17.7"></a><var>17.7</var>assessments payable in calendar year 2014 and later.<br/>
<br/>
<a id="bill.1.20.0"></a><a id="pl.17.8"></a><var>17.8</var>    Sec. 20. Minnesota Statutes 2013 Supplement, section 477A.12, subdivision 2, is <br/>
<a id="pl.17.9"></a><var>17.9</var>amended to read:<br/>
<a id="pl.17.10"></a><var>17.10</var>    Subd. 2. <b>Procedure.</b> (a) Each county auditor shall certify to the Department of <br/>
<a id="pl.17.11"></a><var>17.11</var>Natural Resources during July of each year prior to the payment year the number of acres <br/>
<a id="pl.17.12"></a><var>17.12</var>of county-administered other natural resources land within the county. The Department of <br/>
<a id="pl.17.13"></a><var>17.13</var>Natural resources may, in addition to the certification of acreage, require descriptive lists <br/>
<a id="pl.17.14"></a><var>17.14</var>of land so certified. The commissioner of natural resources shall determine and certify to <br/>
<a id="pl.17.15"></a><var>17.15</var>the commissioner of revenue by March 1 of the payment year:<br/>
<a id="pl.17.16"></a><var>17.16</var>(1) the number of acres and most recent appraised value of acquired natural <br/>
<a id="pl.17.17"></a><var>17.17</var>resources land, wildlife management land, and military refuge land within each county;<br/>
<a id="pl.17.18"></a><var>17.18</var>(2) the number of acres of commissioner-administered natural resources land within <br/>
<a id="pl.17.19"></a><var>17.19</var>each county;<br/>
<a id="pl.17.20"></a><var>17.20</var>(3) the number of acres of county-administered other natural resources land within <br/>
<a id="pl.17.21"></a><var>17.21</var>each county, based on the reports filed by each county auditor with the commissioner <br/>
<a id="pl.17.22"></a><var>17.22</var>of natural resources; and<br/>
<a id="pl.17.23"></a><var>17.23</var>(4) the number of acres of land utilization project land within each county.<br/>
<a id="pl.17.24"></a><var>17.24</var>(b) The commissioner of transportation shall determine and certify to the <br/>
<a id="pl.17.25"></a><var>17.25</var>commissioner of revenue by March 1 of the payment year the number of acres of <br/>
<a id="pl.17.26"></a><var>17.26</var>transportation wetland and the appraised value of the land, but only if it exceeds 500 <br/>
<a id="pl.17.27"></a><var>17.27</var>acres in a county.<br/>
<a id="pl.17.28"></a><var>17.28</var>(c) Each auditor of a county that contains state-owned lands within a conservation <br/>
<a id="pl.17.29"></a><var>17.29</var>area shall determine and certify to the commissioner of natural resources by May 31 of <br/>
<a id="pl.17.30"></a><var>17.30</var>the payment year, the county's ditch assessments for state-owned lands subject to section <br/>
<a id="pl.17.31"></a><var>17.31</var>84A.55, subdivision 9. A joint certification for two or more counties may be submitted to <br/>
<a id="pl.17.32"></a><var>17.32</var>the commissioner of natural resources through the Consolidated Conservation Counties <br/>
<a id="pl.17.33"></a><var>17.33</var>Joint Powers Board. The commissioner of natural resources shall certify the ditch <br/>
<a id="pl.17.34"></a><var>17.34</var>assessments to the commissioner of revenue by June 15 of the payment year.<br/>
<a id="pl.18.1"></a><var>18.1</var>(d) The commissioner of revenue shall determine the distributions provided for in this <br/>
<a id="pl.18.2"></a><var>18.2</var>section using: (1) the number of acres and appraised values certified by the commissioner <br/>
<a id="pl.18.3"></a><var>18.3</var>of natural resources and the commissioner of transportation by March 1 of the payment <br/>
<a id="pl.18.4"></a><var>18.4</var>year; and (2) ditch assessments under paragraph (c), by June 30 of the payment year.<br/>
<a id="pl.18.5"></a><var>18.5</var><b>EFFECTIVE DATE.</b>This section is effective for assessments payable in calendar <br/>
<a id="pl.18.6"></a><var>18.6</var>year 2014 and later.<br/>
<br/>
<a id="bill.1.21.0"></a><a id="pl.18.7"></a><var>18.7</var>    Sec. 21. Minnesota Statutes 2013 Supplement, section 477A.14, subdivision 1, is <br/>
<a id="pl.18.8"></a><var>18.8</var>amended to read:<br/>
<a id="pl.18.9"></a><var>18.9</var>    Subdivision 1. <b>General distribution.</b> Except as provided in subdivisions 2 and 3, <br/>
<a id="pl.18.10"></a><var>18.10</var>40 percent of the total payment to the county shall be deposited in the county general <br/>
<a id="pl.18.11"></a><var>18.11</var>revenue fund to be used to provide property tax levy reduction. The remainder shall be <br/>
<a id="pl.18.12"></a><var>18.12</var>distributed by the county in the following priority:<br/>
<a id="pl.18.13"></a><var>18.13</var>(a) (1) 64.2 cents, for each acre of county-administered other natural resources land <br/>
<a id="pl.18.14"></a><var>18.14</var>shall be deposited in a resource development fund to be created within the county treasury <br/>
<a id="pl.18.15"></a><var>18.15</var>for use in resource development, forest management, game and fish habitat improvement, <br/>
<a id="pl.18.16"></a><var>18.16</var>and recreational development and maintenance of county-administered other natural <br/>
<a id="pl.18.17"></a><var>18.17</var>resources land. Any county receiving less than $5,000 annually for the resource <br/>
<a id="pl.18.18"></a><var>18.18</var>development fund may elect to deposit that amount in the county general revenue fund;<br/>
<a id="pl.18.19"></a><var>18.19</var>(b) from the funds remaining, (2) within 30 days of receipt of the payment to <br/>
<a id="pl.18.20"></a><var>18.20</var>the county, the county treasurer shall pay each organized township ten percent of the <br/>
<a id="pl.18.21"></a><var>18.21</var>amount received a township with land that qualifies for payment under section 
         <statute_ref>477A.12, <br/>
<a id="pl.18.22"></a><var>18.22</var>subdivision 1
         </statute_ref>, clauses (1), (2), and (5) to (7), ten percent of the payment the county <br/>
<a id="pl.18.23"></a><var>18.23</var>received for such land within that township. Payments for natural resources lands not <br/>
<a id="pl.18.24"></a><var>18.24</var>located in an organized township shall be deposited in the county general revenue fund. <br/>
<a id="pl.18.25"></a><var>18.25</var>Payments to counties and townships pursuant to this paragraph shall be used to provide <br/>
<a id="pl.18.26"></a><var>18.26</var>property tax levy reduction, except that of the payments for natural resources lands not <br/>
<a id="pl.18.27"></a><var>18.27</var>located in an organized township, the county may allocate the amount determined to be <br/>
<a id="pl.18.28"></a><var>18.28</var>necessary for maintenance of roads in unorganized townships. Provided that, if the total <br/>
<a id="pl.18.29"></a><var>18.29</var>payment to the county pursuant to section 
<statute_ref>477A.12</statute_ref> is not sufficient to fully fund the <br/>
<a id="pl.18.30"></a><var>18.30</var>distribution provided for in this clause, the amount available shall be distributed to each <br/>
<a id="pl.18.31"></a><var>18.31</var>township and the county general revenue fund on a pro rata basis; and<br/>
<a id="pl.18.32"></a><var>18.32</var>(c) (3) any remaining funds shall be deposited in the county general revenue fund. <br/>
<a id="pl.18.33"></a><var>18.33</var>Provided that, if the distribution to the county general revenue fund exceeds $35,000, the <br/>
<a id="pl.18.34"></a><var>18.34</var>excess shall be used to provide property tax levy reduction.<br/>
<a id="pl.19.1"></a><var>19.1</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2014.<br/>
<br/>
<a id="bill.1.22.0"></a><a id="pl.19.2"></a><var>19.2</var>    Sec. 22. Laws 1999, chapter 243, article 14, section 5, subdivision 1, is amended to read:<br/>
<a id="pl.19.3"></a><var>19.3</var>    Subdivision 1. <b>Board plan and program.</b> The board shall adopt a comprehensive <br/>
<a id="pl.19.4"></a><var>19.4</var>plan for the collection, treatment, and disposal of sewage in the district for a designated <br/>
<a id="pl.19.5"></a><var>19.5</var>period the board deems proper and reasonable. The board shall prepare and adopt <br/>
<a id="pl.19.6"></a><var>19.6</var>subsequent comprehensive plans for the collection, treatment, and disposal of sewage <br/>
<a id="pl.19.7"></a><var>19.7</var>in the district for each succeeding designated period as the board deems proper and <br/>
<a id="pl.19.8"></a><var>19.8</var>reasonable. All comprehensive plans of the district shall be subject to the planning <br/>
<a id="pl.19.9"></a><var>19.9</var>and zoning authority of Scott county and in conformance with all planning and zoning <br/>
<a id="pl.19.10"></a><var>19.10</var>ordinances of Scott county. The first plan, as modified by the board, and any subsequent <br/>
<a id="pl.19.11"></a><var>19.11</var>plan shall take into account the preservation and best and most economic use of water and <br/>
<a id="pl.19.12"></a><var>19.12</var>other natural resources in the area; the preservation, use, and potential for use of lands <br/>
<a id="pl.19.13"></a><var>19.13</var>adjoining waters of the state to be used for the disposal of sewage; and the impact the <br/>
<a id="pl.19.14"></a><var>19.14</var>disposal system will have on present and future land use in the area affected. In no case <br/>
<a id="pl.19.15"></a><var>19.15</var>shall the comprehensive plan provide for more than 325 364 connections to the disposal <br/>
<a id="pl.19.16"></a><var>19.16</var>system. All connections must be charged a full assessment. Connections made after the <br/>
<a id="pl.19.17"></a><var>19.17</var>initial assessment period ends must be charged an amount equal to the initial assessment <br/>
<a id="pl.19.18"></a><var>19.18</var>plus an adjustment for inflation and plus any other charges determined to be reasonable <br/>
<a id="pl.19.19"></a><var>19.19</var>and necessary by the board. Deferred assessments may be permitted, as provided for in <br/>
<a id="pl.19.20"></a><var>19.20</var>Minnesota Statutes, chapter 429. The plans shall include the general location of needed <br/>
<a id="pl.19.21"></a><var>19.21</var>interceptors and treatment works, a description of the area that is to be served by the <br/>
<a id="pl.19.22"></a><var>19.22</var>various interceptors and treatment works, a long-range capital improvements program, and <br/>
<a id="pl.19.23"></a><var>19.23</var>any other details as the board deems appropriate. In developing the plans, the board shall <br/>
<a id="pl.19.24"></a><var>19.24</var>consult with persons designated for the purpose by governing bodies of any governmental <br/>
<a id="pl.19.25"></a><var>19.25</var>unit within the district to represent the entities and shall consider the data, resources, and <br/>
<a id="pl.19.26"></a><var>19.26</var>input offered to the board by the entities and any planning agency acting on behalf of one <br/>
<a id="pl.19.27"></a><var>19.27</var>or more of the entities. Each plan, when adopted, must be followed in the district and may <br/>
<a id="pl.19.28"></a><var>19.28</var>be revised as often as the board deems necessary.<br/>
<a id="pl.19.29"></a><var>19.29</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br/>
<a id="pl.19.30"></a><var>19.30</var>the Cedar Lake area water and sanitary sewer district and its chief clerical officer timely <br/>
<a id="pl.19.31"></a><var>19.31</var>complete their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.1.23.0"></a><a id="pl.19.32"></a><var>19.32</var>    Sec. 23. <b>CITY OF JACKSON; LIMITATION ON ABATEMENTS.</b><br/>
<a id="pl.19.33"></a><var>19.33</var>Notwithstanding the provisions of Minnesota Statutes, section 469.1813, subdivision <br/>
<a id="pl.19.34"></a><var>19.34</var>8, the total amount of property taxes abated by the city of Jackson in any year may not <br/>
<a id="pl.20.1"></a><var>20.1</var>exceed the greater of (1) ten percent of the city's net tax capacity for the taxes payable year <br/>
<a id="pl.20.2"></a><var>20.2</var>to which the abatement applies; or (2) $240,000.<br/>
<a id="pl.20.3"></a><var>20.3</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2015 through <br/>
<a id="pl.20.4"></a><var>20.4</var>taxes payable in 2019.<br/>
<br/>
<a id="bill.1.24.0"></a><a id="pl.20.5"></a><var>20.5</var>    Sec. 24. <b>FUND TRANSFER FROM IRON RANGE RESOURCES AND </b><br/>
<a id="pl.20.6"></a><var>20.6</var><b>REHABILITATION BOARD.</b><br/>
<a id="pl.20.7"></a><var>20.7</var>The Iron Range Resources and Rehabilitation Board must transfer $60,000 to the <br/>
<a id="pl.20.8"></a><var>20.8</var>commissioner of management and budget for deposit into the general fund on July 1, 2014.<br/>
<br/>
<a id="bill.1.25.0"></a><a id="pl.20.9"></a><var>20.9</var>    Sec. 25. <b>HELENA TOWNSHIP, SCOTT COUNTY; REMOVAL OF </b><br/>
<a id="pl.20.10"></a><var>20.10</var><b>SUBORDINATE SERVICE DISTRICT.</b><br/>
<a id="pl.20.11"></a><var>20.11</var>    Subdivision 1. <b>Application.</b> This section applies to the subordinate service district <br/>
<a id="pl.20.12"></a><var>20.12</var>established in Helena Township, Scott County, for the Silver Maple Bay Estates, under <br/>
<a id="pl.20.13"></a><var>20.13</var>Minnesota Statutes, chapter 365A.<br/>
<a id="pl.20.14"></a><var>20.14</var>    Subd. 2. <b>Special provision for removal of the district.</b> Notwithstanding the <br/>
<a id="pl.20.15"></a><var>20.15</var>requirements of Minnesota Statutes, section 365A.095, subdivision 2, if the district is <br/>
<a id="pl.20.16"></a><var>20.16</var>removed as provided in Minnesota Statutes, section 365A.095, subdivision 1, after all <br/>
<a id="pl.20.17"></a><var>20.17</var>outstanding obligations of the district have been paid in full, the town board may vote to <br/>
<a id="pl.20.18"></a><var>20.18</var>sell or use the surplus of any land or equipment, or the surplus of any tax revenue or service <br/>
<a id="pl.20.19"></a><var>20.19</var>charge, or any part of it, collected from or associated with the district to connect the owners <br/>
<a id="pl.20.20"></a><var>20.20</var>of any property within the discontinued district to another public sewer system. Any <br/>
<a id="pl.20.21"></a><var>20.21</var>surplus not used to connect residents to such sewer system may be distributed equally to <br/>
<a id="pl.20.22"></a><var>20.22</var>the owners of any property within the discontinued district that were charged the extra tax <br/>
<a id="pl.20.23"></a><var>20.23</var>or service fee during the most recent tax year for which the tax or service fee was imposed. <br/>
<a id="pl.20.24"></a><var>20.24</var>Any surplus not refunded under this section must be transferred to the town's general fund.<br/>
<a id="pl.20.25"></a><var>20.25</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br/>
<a id="pl.20.26"></a><var>20.26</var>Helena Township and its chief clerical officer timely complete their compliance with <br/>
<a id="pl.20.27"></a><var>20.27</var>Minnesota Statutes, section 645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.1.26.0"></a><a id="pl.20.28"></a><var>20.28</var>    Sec. 26. <b>IRON RANGE FISCAL DISPARITIES STUDY.</b><br/>
<a id="pl.20.29"></a><var>20.29</var>The commissioner of revenue, in consultation with the administrative auditor, as <br/>
<a id="pl.20.30"></a><var>20.30</var>defined in Minnesota Statutes, section 276A.01, subdivision 2, shall conduct a study of <br/>
<a id="pl.20.31"></a><var>20.31</var>the tax relief area revenue distribution program contained in Minnesota Statutes, chapter <br/>
<a id="pl.20.32"></a><var>20.32</var>276A, commonly known as the Iron Range fiscal disparities program. By January 15, <br/>
<a id="pl.21.1"></a><var>21.1</var>2015, the commissioner of revenue shall submit a report to the chairs and ranking minority <br/>
<a id="pl.21.2"></a><var>21.2</var>members of the house of representatives and senate tax committees consisting of the <br/>
<a id="pl.21.3"></a><var>21.3</var>findings of the study and recommendations. The study must analyze:<br/>
<a id="pl.21.4"></a><var>21.4</var>(1) the ability to use a municipality's contribution based on its commercial, <br/>
<a id="pl.21.5"></a><var>21.5</var>industrial, and utility values from the current year rather than the previous year; and<br/>
<a id="pl.21.6"></a><var>21.6</var>(2) recommended changes to the program to decrease the volatility of the program's <br/>
<a id="pl.21.7"></a><var>21.7</var>distribution.<br/>
<a id="pl.21.8"></a><var>21.8</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.27.0"></a><a id="pl.21.9"></a><var>21.9</var>    Sec. 27. <b>PRIVATE SALE OF LAND; DISTRICT ONE HOSPITAL BOARD.</b><br/>
<a id="pl.21.10"></a><var>21.10</var>(a) Notwithstanding Laws 1963, chapter 118, section 5, or any other law to the <br/>
<a id="pl.21.11"></a><var>21.11</var>contrary, the District One Hospital District may, without advertising for bids, sell, <br/>
<a id="pl.21.12"></a><var>21.12</var>convey, and transfer management, control, and operation of the hospital, any of the <br/>
<a id="pl.21.13"></a><var>21.13</var>hospital's personal property, and any of the real property described in paragraph (b). <br/>
<a id="pl.21.14"></a><var>21.14</var>Notwithstanding any law to the contrary, the District One Hospital District may include <br/>
<a id="pl.21.15"></a><var>21.15</var>some or all tangible and intangible personal property associated with the hospital as part <br/>
<a id="pl.21.16"></a><var>21.16</var>of the negotiated sale price.<br/>
<a id="pl.21.17"></a><var>21.17</var>(b) The land referred to in paragraph (a), is located in Rice County and consists of <br/>
<a id="pl.21.18"></a><var>21.18</var>the parcels of property known as the District One Hospital and adjacent property. Legal <br/>
<a id="pl.21.19"></a><var>21.19</var>descriptions for the properties are as follows: <br/>
<a id="pl.21.20"></a><var>21.20</var>(1) LOT SIX (6), NORTH SEABURY ADDITION, FARIBAULT, RICE COUNTY, <br/>
<a id="pl.21.21"></a><var>21.21</var>MINNESOTA;<br/>
<a id="pl.21.22"></a><var>21.22</var>(2) ALL OF BLOCK 4, AUDITOR'S PLAT NO. 1 OF THE SW1/4 OF SECTION <br/>
<a id="pl.21.23"></a><var>21.23</var>32, TOWNSHIP 110 NORTH, RANGE 20 WEST OF THE 5TH P.M., FARIBAULT, <br/>
<a id="pl.21.24"></a><var>21.24</var>RICE COUNTY, MINNESOTA, EXCEPTING THEREFROM THAT PART OF SAID <br/>
<a id="pl.21.25"></a><var>21.25</var>BLOCK 4 DESCRIBED AS FOLLOWS: BEGINNING AT A POINT IN THE NORTH <br/>
<a id="pl.21.26"></a><var>21.26</var>LINE OF SAID BLOCK 4, A DISTANCE OF 179.00 FEET WESTERLY FROM THE <br/>
<a id="pl.21.27"></a><var>21.27</var>NORTHEAST CORNER OF SAID BLOCK 4, THENCE SOUTHERLY, PARALLEL <br/>
<a id="pl.21.28"></a><var>21.28</var>WITH THE EAST LINE OF SAID BLOCK 4, A DISTANCE OF 225.00 FEET; THENCE <br/>
<a id="pl.21.29"></a><var>21.29</var>WESTERLY, PARALLEL WITH SAID NORTH LINE OF BLOCK 4, A DISTANCE OF <br/>
<a id="pl.21.30"></a><var>21.30</var>154.00 FEET; THENCE NORTHERLY, PARALLEL WITH SAID EAST LINE, 75.00 <br/>
<a id="pl.21.31"></a><var>21.31</var>FEET; THENCE WESTERLY, PARALLEL WITH SAID NORTH LINE, 36.00 FEET; <br/>
<a id="pl.21.32"></a><var>21.32</var>THENCE NORTHERLY, PARALLEL WITH SAID EAST LINE, 150.00 FEET TO A <br/>
<a id="pl.21.33"></a><var>21.33</var>POINT IN SAID NORTH LINE; THENCE EASTERLY ALONG SAID NORTH LINE, <br/>
<a id="pl.21.34"></a><var>21.34</var>190.00 FEET TO SAID POINT OF BEGINNING;<br/>
<a id="pl.22.1"></a><var>22.1</var>(3) LOT THREE (3), NORTH SEABURY ADDITION, FARIBAULT, RICE <br/>
<a id="pl.22.2"></a><var>22.2</var>COUNTY, MINNESOTA;<br/>
<a id="pl.22.3"></a><var>22.3</var>(4) LOT 5, NORTH SEABURY ADDITION, FARIBAULT, MINNESOTA, <br/>
<a id="pl.22.4"></a><var>22.4</var>ACCORDING TO THE PLAT THEREOF ON FILE AND OF RECORD IN THE <br/>
<a id="pl.22.5"></a><var>22.5</var>REGISTER OF DEEDS FOR RICE COUNTY, MINNESOTA;<br/>
<a id="pl.22.6"></a><var>22.6</var>(5) LOT 7, 8, 9, 10, AND THE EAST 82.4 FEET OF LOT 11, ALL IN NORTH <br/>
<a id="pl.22.7"></a><var>22.7</var>SEABURY ADDITION, FARIBAULT, RICE COUNTY, MINNESOTA, AND THE <br/>
<a id="pl.22.8"></a><var>22.8</var>EAST 82.4 FEET OF ALL OF LOTS 7 AND 8, BLOCK 1, FARIBAULT'S ADDITION <br/>
<a id="pl.22.9"></a><var>22.9</var>TO FARIBAULT, WHICH LIES NORTH AND WEST OF A LINE DRAWN FROM <br/>
<a id="pl.22.10"></a><var>22.10</var>THE SOUTHWEST CORNER OF SAID BLOCK 1, NORTHEASTERLY TO THE <br/>
<a id="pl.22.11"></a><var>22.11</var>NORTHEAST CORNER OF SAID LOT 7, OF BLOCK 1;<br/>
<a id="pl.22.12"></a><var>22.12</var>(6) LOTS 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, THE SOUTH 10 <br/>
<a id="pl.22.13"></a><var>22.13</var>FEET OF LOT 18, THE WEST FIVE FEET OF LOT 32 AND LOT 23, EXCEPT <br/>
<a id="pl.22.14"></a><var>22.14</var>THE EAST 141.22 FEET, ALL IN BLOCK 6, AUDITOR'S PLAT NO. 1, SW1/4 OF <br/>
<a id="pl.22.15"></a><var>22.15</var>SECTION 32, TOWNSHIP 110 NORTH, RANGE 20 WEST OF THE 5TH PRINCIPAL <br/>
<a id="pl.22.16"></a><var>22.16</var>MERIDIAN, FARIBAULT, RICE COUNTY, MINNESOTA;<br/>
<a id="pl.22.17"></a><var>22.17</var>(7) UNIT 2, CONDOMINIUM NUMBER 8, JOHNSTON HALL CONDOMINIUM, <br/>
<a id="pl.22.18"></a><var>22.18</var>FARIBAULT, RICE COUNTY, MINNESOTA;<br/>
<a id="pl.22.19"></a><var>22.19</var>(8) UNIT 1, CONDOMINIUM NUMBER 8, JOHNSTON HALL CONDOMINIUM, <br/>
<a id="pl.22.20"></a><var>22.20</var>FARIBAULT, RICE COUNTY, MINNESOTA; AND<br/>
<a id="pl.22.21"></a><var>22.21</var>(9) COMMON ELEMENTS, CONDOMINIUM NUMBER 8, JOHNSTON HALL <br/>
<a id="pl.22.22"></a><var>22.22</var>CONDOMINIUM, FARIBAULT, RICE COUNTY, MINNESOTA.<br/>
<a id="pl.22.23"></a><var>22.23</var>(c) Upon determination by the District One Hospital Board that all sale requirements <br/>
<a id="pl.22.24"></a><var>22.24</var>have been met, and sufficient funds exist to pay all outstanding principal and interest on <br/>
<a id="pl.22.25"></a><var>22.25</var>any bonds issued prior to and in conjunction with the sale, each statutory or home rule <br/>
<a id="pl.22.26"></a><var>22.26</var>charter city and town located within the hospital district must file a petition with the <br/>
<a id="pl.22.27"></a><var>22.27</var>hospital board for dissolution under Minnesota Statutes, section 447.38.<br/>
<a id="pl.22.28"></a><var>22.28</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.28.0"></a><a id="pl.22.29"></a><var>22.29</var>    Sec. 28. <b>TRANSITION PROVISION.</b><br/>
<a id="pl.22.30"></a><var>22.30</var>The owner of any property lying within the boundaries of a special service district in <br/>
<a id="pl.22.31"></a><var>22.31</var>existence as of June 1, 2014, that becomes potentially liable for a service charge due to the <br/>
<a id="pl.22.32"></a><var>22.32</var>changes in eligibility requirements contained in section 1, may file a written objection <br/>
<a id="pl.22.33"></a><var>22.33</var>with the city clerk as provided under Minnesota Statutes, section 428A.02, subdivision 4. <br/>
<a id="pl.22.34"></a><var>22.34</var>The objection must be filed by August 1, 2014. The governing body of the city must make <br/>
<a id="pl.22.35"></a><var>22.35</var>a determination on the objection within 30 days of its filing.<br/>
<a id="pl.23.1"></a><var>23.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment, <br/>
<a id="pl.23.2"></a><var>23.2</var>and applies to service district charges for 2014 and thereafter.<br/>
<br/>
<a id="bill.1.29.0"></a><a id="pl.23.3"></a><var>23.3</var>    Sec. 29. <b>2014 SUPPLEMENTAL PAYMENT FOR AQUATIC INVASIVE </b><br/>
<a id="pl.23.4"></a><var>23.4</var><b>SPECIES PREVENTION AID; APPROPRIATION.</b><br/>
<a id="pl.23.5"></a><var>23.5</var>(a) For aids payable in 2014 only, the total aid payable under Minnesota Statutes, <br/>
<a id="pl.23.6"></a><var>23.6</var>section 477A.0124, subdivision 3, paragraph (b), is $5,000,000.<br/>
<a id="pl.23.7"></a><var>23.7</var>(b) Payment to the counties of the amounts determined under Minnesota Statutes, <br/>
<a id="pl.23.8"></a><var>23.8</var>section 477A.0124, subdivision 3, paragraph (b), must be made by the commissioner <br/>
<a id="pl.23.9"></a><var>23.9</var>of revenue from the general fund at the time provided in Minnesota Statutes, section <br/>
<a id="pl.23.10"></a><var>23.10</var>477A.015 for the first installment of local government aid.<br/>
<a id="pl.23.11"></a><var>23.11</var>(c) $5,000,000 is appropriated from the general fund to the commissioner of revenue <br/>
<a id="pl.23.12"></a><var>23.12</var>in fiscal year 2015 to make the aid payments under this section.<br/>
<a id="pl.23.13"></a><var>23.13</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in 2014 only.<br/>
<br/>
<a id="bill.1.30.0"></a><a id="pl.23.14"></a><var>23.14</var>    Sec. 30. <b>APPROPRIATION.</b><br/>
<a id="pl.23.15"></a><var>23.15</var>The sum of $60,000 in fiscal year 2015 is appropriated from the general fund <br/>
<a id="pl.23.16"></a><var>23.16</var>to the commissioner of revenue to pay for the study required under section 26. This is <br/>
<a id="pl.23.17"></a><var>23.17</var>a onetime appropriation.<br/>
<br/>
<a id="bill.1.31.0"></a><a id="pl.23.18"></a><var>23.18</var>    Sec. 31. <b>STUDY OF NORTH DAKOTA OIL PRODUCTION; IMPACT ON </b><br/>
<a id="pl.23.19"></a><var>23.19</var><b>MINNESOTA.</b><br/>
<a id="pl.23.20"></a><var>23.20</var>(a) $250,000 in fiscal year 2015 is appropriated from the general fund to the <br/>
<a id="pl.23.21"></a><var>23.21</var>commissioner of employment and economic development, in consultation with the <br/>
<a id="pl.23.22"></a><var>23.22</var>commissioner of revenue, to finance a study and analysis of the effects of current and <br/>
<a id="pl.23.23"></a><var>23.23</var>projected oil production in North Dakota on the Minnesota economy with special focus on <br/>
<a id="pl.23.24"></a><var>23.24</var>the northwestern region of Minnesota and area border cities as provided in paragraph (b).<br/>
<a id="pl.23.25"></a><var>23.25</var>(b) The study and analysis must address:<br/>
<a id="pl.23.26"></a><var>23.26</var>(1) current and projected economic, fiscal, and demographic effects and issues;<br/>
<a id="pl.23.27"></a><var>23.27</var>(2) direct and indirect costs and benefits;<br/>
<a id="pl.23.28"></a><var>23.28</var>(3) positive and negative effects; and<br/>
<a id="pl.23.29"></a><var>23.29</var>(4) economic challenges and opportunities for economic growth or diversification.<br/>
<a id="pl.23.30"></a><var>23.30</var>(c) The study must be objective, evidence-based, and designed to produce empirical <br/>
<a id="pl.23.31"></a><var>23.31</var>data. Study data must be utilized to formulate policy recommendations on how the state, <br/>
<a id="pl.23.32"></a><var>23.32</var>the northwestern region of the state, and border cities may respond to the challenges and <br/>
<a id="pl.24.1"></a><var>24.1</var>opportunities for economic growth and financial investment that may be derived from the <br/>
<a id="pl.24.2"></a><var>24.2</var>regional economic changes that are the result of oil production in North Dakota.<br/>
<a id="pl.24.3"></a><var>24.3</var>(d) For the purposes of this section, "border cities" has the meaning given in <br/>
<a id="pl.24.4"></a><var>24.4</var>Minnesota Statutes, section 469.1731.<br/>
<a id="pl.24.5"></a><var>24.5</var>(e) The study and analysis must be conducted by an independent entity with <br/>
<a id="pl.24.6"></a><var>24.6</var>demonstrated knowledge in the following areas:<br/>
<a id="pl.24.7"></a><var>24.7</var>(1) the economy and demography of Minnesota;<br/>
<a id="pl.24.8"></a><var>24.8</var>(2) the domestic and foreign oil industry; and <br/>
<a id="pl.24.9"></a><var>24.9</var>(3) technologies, markets, and geopolitical factors that have an impact on current <br/>
<a id="pl.24.10"></a><var>24.10</var>and future oil production in the region.<br/>
<a id="pl.24.11"></a><var>24.11</var>(f) The commissioner shall report on the findings and recommendations of the study <br/>
<a id="pl.24.12"></a><var>24.12</var>to the committees of the house of representatives and senate having jurisdiction over <br/>
<a id="pl.24.13"></a><var>24.13</var>economic development and workforce issues by February 15, 2015.<br/>
<a id="pl.24.14"></a><var>24.14</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.32.0"></a><a id="pl.24.15"></a><var>24.15</var>    Sec. 32. <b>STUDY OF ENERGY PRODUCING SYSTEMS.</b><br/>
<a id="pl.24.16"></a><var>24.16</var>(a) $150,000 in fiscal year 2015 is appropriated from the general fund to the <br/>
<a id="pl.24.17"></a><var>24.17</var>commissioner of revenue to conduct a study and analysis of the property taxation of <br/>
<a id="pl.24.18"></a><var>24.18</var>all energy producing systems in the state of Minnesota, including both traditional and <br/>
<a id="pl.24.19"></a><var>24.19</var>renewable energy sources.<br/>
<a id="pl.24.20"></a><var>24.20</var>(b) The study and analysis must address:<br/>
<a id="pl.24.21"></a><var>24.21</var>(1) the various methods by which the personal and real property of energy producing <br/>
<a id="pl.24.22"></a><var>24.22</var>systems are taxed;<br/>
<a id="pl.24.23"></a><var>24.23</var>(2) the availability of any exclusions, exemptions, or payment-in-lieu of taxation <br/>
<a id="pl.24.24"></a><var>24.24</var>arrangements that apply to the systems; and<br/>
<a id="pl.24.25"></a><var>24.25</var>(3) recommendations on the taxation of solar energy producing systems, including <br/>
<a id="pl.24.26"></a><var>24.26</var>both real and personal property.<br/>
<a id="pl.24.27"></a><var>24.27</var>(c) The commissioner shall report the findings of the study to the committees of the <br/>
<a id="pl.24.28"></a><var>24.28</var>house of representatives and senate having jurisdiction over taxes by February 1, 2015.<br/>
<a id="pl.24.29"></a><var>24.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.33.0"></a><a id="pl.24.30"></a><var>24.30</var>    Sec. 33. <b> REPEALER.</b><br/>
<a id="pl.24.31"></a><var>24.31</var>Laws 1961, chapter 372, sections 1; and 2; Laws 1963, chapter 118, sections 1, as <br/>
<a id="pl.24.32"></a><var>24.32</var>amended by Laws 1996, chapter 471, article 8, section 19; 2, as amended by Laws 1996, <br/>
<a id="pl.24.33"></a><var>24.33</var>chapter 471, article 8, section 20; 3; 4, as amended by Laws 1996, chapter 471, article 8, <br/>
<a id="pl.25.1"></a><var>25.1</var>section 21; 5; 6, as amended by Laws 1996, chapter 471, article 8, section 22; 7; 8; 9; and <br/>
<a id="pl.25.2"></a><var>25.2</var>10; and Laws 1996, chapter 471, article 8, sections 19; 20; 21; and 22, are repealed.<br/>
<a id="pl.25.3"></a><var>25.3</var><b>EFFECTIVE DATE.</b>This section is effective upon the statutory and home rule <br/>
<a id="pl.25.4"></a><var>25.4</var>charter cities located within the hospital district filing a petition with the hospital board <br/>
<a id="pl.25.5"></a><var>25.5</var>for dissolution under Minnesota Statutes, section 447.38.<br/>
<br/>
<a id="bill.2.0.0"></a>

<a id="bill.2.1.0"></a><a id="pl.25.8"></a><var>25.8</var>    Section 1. Minnesota Statutes 2013 Supplement, section 116J.8738, subdivision 2, <br/>
<a id="pl.25.9"></a><var>25.9</var>is amended to read:<br/>
<a id="pl.25.10"></a><var>25.10</var>    Subd. 2. <b>Qualified business.</b> (a) A business is a qualified business if it satisfies the <br/>
<a id="pl.25.11"></a><var>25.11</var>requirement of this paragraph and is not disqualified under the provisions of paragraph <br/>
<a id="pl.25.12"></a><var>25.12</var>(b). To qualify, the business must:<br/>
<a id="pl.25.13"></a><var>25.13</var>(1) have operated its trade or business in a city or cities in greater Minnesota for at <br/>
<a id="pl.25.14"></a><var>25.14</var>least one year before applying under subdivision 3;<br/>
<a id="pl.25.15"></a><var>25.15</var>(2) pay or agree to pay in the future each employee compensation, including benefits <br/>
<a id="pl.25.16"></a><var>25.16</var>not mandated by law, that on an annualized basis equal at least 120 percent of the federal <br/>
<a id="pl.25.17"></a><var>25.17</var>poverty level for a family of four;<br/>
<a id="pl.25.18"></a><var>25.18</var>(3) plan and agree to expand its employment in one or more cities in greater Minnesota <br/>
<a id="pl.25.19"></a><var>25.19</var>by the minimum number of employees required under subdivision 3, paragraph (c); and<br/>
<a id="pl.25.20"></a><var>25.20</var>(4) have received certification from the commissioner under subdivision 3 that <br/>
<a id="pl.25.21"></a><var>25.21</var>it is a qualified business.<br/>
<a id="pl.25.22"></a><var>25.22</var>(b) A business is not a qualified business if it is either:<br/>
<a id="pl.25.23"></a><var>25.23</var>(1) primarily engaged in making retail sales to purchasers who are physically present <br/>
<a id="pl.25.24"></a><var>25.24</var>at the business's location or locations in greater Minnesota; or<br/>
<a id="pl.25.25"></a><var>25.25</var>(2) a public utility, as defined in section 
         <statute_ref>336B.01</statute_ref>; or<br/>
<a id="pl.25.26"></a><var>25.26</var>(3) primarily engaged in lobbying; gambling; entertainment; professional sports; <br/>
<a id="pl.25.27"></a><var>25.27</var>political consulting; leisure; hospitality; or professional services provided by attorneys, <br/>
<a id="pl.25.28"></a><var>25.28</var>accountants, business consultants, physicians, or health care consultants.<br/>
<a id="pl.25.29"></a><var>25.29</var>(c) The requirements in paragraph (a) that the business's operations and expansion <br/>
<a id="pl.25.30"></a><var>25.30</var>be located in a city do not apply to an agricultural processing facility.<br/>
<a id="pl.25.31"></a><var>25.31</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.2.0"></a><a id="pl.25.32"></a><var>25.32</var>    Sec. 2. Minnesota Statutes 2013 Supplement, section 116J.8738, subdivision 3, is <br/>
<a id="pl.25.33"></a><var>25.33</var>amended to read:<br/>
<a id="pl.26.1"></a><var>26.1</var>    Subd. 3. <b>Certification of qualified business.</b> (a) A business may apply to the <br/>
<a id="pl.26.2"></a><var>26.2</var>commissioner for certification as a qualified business under this section. The commissioner <br/>
<a id="pl.26.3"></a><var>26.3</var>shall specify the form of the application, the manner and times for applying, and the <br/>
<a id="pl.26.4"></a><var>26.4</var>information required to be included in the application. The commissioner may impose an <br/>
<a id="pl.26.5"></a><var>26.5</var>application fee in an amount sufficient to defray the commissioner's cost of processing <br/>
<a id="pl.26.6"></a><var>26.6</var>certifications. A business must file a copy of its application with the chief clerical officer <br/>
<a id="pl.26.7"></a><var>26.7</var>of the city at the same time it applies to the commissioner. For an agricultural processing <br/>
<a id="pl.26.8"></a><var>26.8</var>facility located outside the boundaries of a city, the business must file a copy of the <br/>
<a id="pl.26.9"></a><var>26.9</var>application with the county auditor.<br/>
<a id="pl.26.10"></a><var>26.10</var>(b) The commissioner shall certify each business as a qualified business that:<br/>
<a id="pl.26.11"></a><var>26.11</var>(1) satisfies the requirements of subdivision 2;<br/>
<a id="pl.26.12"></a><var>26.12</var>(2) the commissioner determines would not expand its operations in greater <br/>
<a id="pl.26.13"></a><var>26.13</var>Minnesota without the tax incentives available under subdivision 4; and<br/>
<a id="pl.26.14"></a><var>26.14</var>(3) enters a business subsidy agreement with the commissioner that pledges to <br/>
<a id="pl.26.15"></a><var>26.15</var>satisfy the minimum expansion requirements of paragraph (c) within three years or less <br/>
<a id="pl.26.16"></a><var>26.16</var>following execution of the agreement.<br/>
<a id="pl.26.17"></a><var>26.17</var>The commissioner must act on an application within 60 90  days after its filing. <br/>
<a id="pl.26.18"></a><var>26.18</var>Failure by the commissioner to take action within the 60-day 90-day period is deemed <br/>
<a id="pl.26.19"></a><var>26.19</var>approval of the application.<br/>
<a id="pl.26.20"></a><var>26.20</var>(c) The following minimum expansion requirements apply, based on the number of <br/>
<a id="pl.26.21"></a><var>26.21</var>employees of the business at locations in greater Minnesota:<br/>
<a id="pl.26.22"></a><var>26.22</var>(1) a business that employs 50 or fewer full-time equivalent employees in greater <br/>
<a id="pl.26.23"></a><var>26.23</var>Minnesota when the agreement is executed must increase its employment by five or more <br/>
<a id="pl.26.24"></a><var>26.24</var>full-time equivalent employees;<br/>
<a id="pl.26.25"></a><var>26.25</var>(2) a business that employs more than 50 but fewer than 200 full-time equivalent <br/>
<a id="pl.26.26"></a><var>26.26</var>employees in greater Minnesota when the agreement is executed must increase the number <br/>
<a id="pl.26.27"></a><var>26.27</var>of its full-time equivalent employees in greater Minnesota by at least ten percent; or<br/>
<a id="pl.26.28"></a><var>26.28</var>(3) a business that employs 200 or more full-time equivalent employees in greater <br/>
<a id="pl.26.29"></a><var>26.29</var>Minnesota when the agreement is executed must increase its employment by at least 21 <br/>
<a id="pl.26.30"></a><var>26.30</var>full-time equivalent employees (c) The business must increase the number of full-time <br/>
<a id="pl.26.31"></a><var>26.31</var>equivalent employees in greater Minnesota from the time the business subsidy agreement <br/>
<a id="pl.26.32"></a><var>26.32</var>is executed by two employees or ten percent, whichever is greater.<br/>
<a id="pl.26.33"></a><var>26.33</var>(d) The city, or a county for an agricultural processing facility located outside the <br/>
<a id="pl.26.34"></a><var>26.34</var>boundaries of a city, in which the business proposes to expand its operations may file <br/>
<a id="pl.26.35"></a><var>26.35</var>comments supporting or opposing the application with the commissioner. The comments <br/>
<a id="pl.26.36"></a><var>26.36</var>must be filed within 30 days after receipt by the city of the application and may include a <br/>
<a id="pl.27.1"></a><var>27.1</var>notice of any contribution the city or county intends to make to encourage or support the <br/>
<a id="pl.27.2"></a><var>27.2</var>business expansion, such as the use of tax increment financing, property tax abatement, <br/>
<a id="pl.27.3"></a><var>27.3</var>additional city or county services, or other financial assistance.<br/>
<a id="pl.27.4"></a><var>27.4</var>(e) Certification of a qualified business is effective for the 12-year seven-year period <br/>
<a id="pl.27.5"></a><var>27.5</var>beginning on the first day of the calendar month immediately following execution of <br/>
<a id="pl.27.6"></a><var>27.6</var>the business subsidy agreement the date that the commissioner informs the business of <br/>
<a id="pl.27.7"></a><var>27.7</var>the award of the benefit.<br/>
<a id="pl.27.8"></a><var>27.8</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.3.0"></a><a id="pl.27.9"></a><var>27.9</var>    Sec. 3. Minnesota Statutes 2013 Supplement, section 116J.8738, subdivision 4, is <br/>
<a id="pl.27.10"></a><var>27.10</var>amended to read:<br/>
<a id="pl.27.11"></a><var>27.11</var>    Subd. 4. <b>Available tax incentives.</b> A qualified business is entitled to a sales tax <br/>
<a id="pl.27.12"></a><var>27.12</var>exemption, up to $2,000,000 annually and $10,000,000 during the total period of the <br/>
<a id="pl.27.13"></a><var>27.13</var>agreement, as provided in section 
         <statute_ref>297A.68, subdivision 44</statute_ref>, for purchases made during <br/>
<a id="pl.27.14"></a><var>27.14</var>the period the business was certified as a qualified business under this section. The <br/>
<a id="pl.27.15"></a><var>27.15</var>commissioner has discretion to set the maximum amounts of the annual and total sales tax <br/>
<a id="pl.27.16"></a><var>27.16</var>exemption allowed for each qualifying business as part of the business subsidy agreement.<br/>
<a id="pl.27.17"></a><var>27.17</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.4.0"></a><a id="pl.27.18"></a><var>27.18</var>    Sec. 4. Minnesota Statutes 2013 Supplement, section 289A.20, subdivision 4, is <br/>
<a id="pl.27.19"></a><var>27.19</var>amended to read:<br/>
<a id="pl.27.20"></a><var>27.20</var>    Subd. 4. <b>Sales and use tax.</b> (a) The taxes imposed by chapter 297A are due and <br/>
<a id="pl.27.21"></a><var>27.21</var>payable to the commissioner monthly on or before the 20th day of the month following the <br/>
<a id="pl.27.22"></a><var>27.22</var>month in which the taxable event occurred, or following another reporting period as the <br/>
<a id="pl.27.23"></a><var>27.23</var>commissioner prescribes or as allowed under section 
         <statute_ref>289A.18, subdivision 4</statute_ref>, paragraph <br/>
<a id="pl.27.24"></a><var>27.24</var>(f) or (g), except that use taxes due on an annual use tax return as provided under section <br/>
<statute_ref><a id="pl.27.25"></a><var>27.25</var>289A.11, subdivision 1
         </statute_ref>, are payable by April 15 following the close of the calendar year.<br/>
<a id="pl.27.26"></a><var>27.26</var>    (b) A vendor having a liability of $120,000 $250,000 or more during a fiscal year <br/>
<a id="pl.27.27"></a><var>27.27</var>ending June 30 must remit the June liability for the next year in the following manner:<br/>
<a id="pl.27.28"></a><var>27.28</var>    (1) Two business days before June 30 of the year, the vendor must remit 90 81.4<br/>
<a id="pl.27.29"></a><var>27.29</var> percent of the estimated June liability to the commissioner.<br/>
<a id="pl.27.30"></a><var>27.30</var>    (2) On or before August 20 of the year, the vendor must pay any additional amount <br/>
<a id="pl.27.31"></a><var>27.31</var>of tax not remitted in June.<br/>
<a id="pl.27.32"></a><var>27.32</var>    (c) A vendor having a liability of:<br/>
<a id="pl.28.1"></a><var>28.1</var>    (1) $10,000 or more, but less than $120,000 $250,000 during a fiscal year ending <br/>
<a id="pl.28.2"></a><var>28.2</var>June 30, 2013, and fiscal years thereafter, must remit by electronic means all liabilities <br/>
<a id="pl.28.3"></a><var>28.3</var>on returns due for periods beginning in all subsequent calendar years on or before the <br/>
<a id="pl.28.4"></a><var>28.4</var>20th day of the month following the month in which the taxable event occurred, or on <br/>
<a id="pl.28.5"></a><var>28.5</var>or before the 20th day of the month following the month in which the sale is reported <br/>
<a id="pl.28.6"></a><var>28.6</var>under section 
         <statute_ref>289A.18, subdivision 4</statute_ref>; or<br/>
<a id="pl.28.7"></a><var>28.7</var>(2) $120,000 $250,000 or more, during a fiscal year ending June 30, 2009 2013, <br/>
<a id="pl.28.8"></a><var>28.8</var>and fiscal years thereafter, must remit by electronic means all liabilities in the manner <br/>
<a id="pl.28.9"></a><var>28.9</var>provided in paragraph (a) on returns due for periods beginning in the subsequent calendar <br/>
<a id="pl.28.10"></a><var>28.10</var>year, except for 90 81.4 percent of the estimated June liability, which is due two business <br/>
<a id="pl.28.11"></a><var>28.11</var>days before June 30. The remaining amount of the June liability is due on August 20.<br/>
<a id="pl.28.12"></a><var>28.12</var>(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's <br/>
<a id="pl.28.13"></a><var>28.13</var>religious beliefs from paying electronically shall be allowed to remit the payment by mail. <br/>
<a id="pl.28.14"></a><var>28.14</var>The filer must notify the commissioner of revenue of the intent to pay by mail before <br/>
<a id="pl.28.15"></a><var>28.15</var>doing so on a form prescribed by the commissioner. No extra fee may be charged to a <br/>
<a id="pl.28.16"></a><var>28.16</var>person making payment by mail under this paragraph. The payment must be postmarked <br/>
<a id="pl.28.17"></a><var>28.17</var>at least two business days before the due date for making the payment in order to be <br/>
<a id="pl.28.18"></a><var>28.18</var>considered paid on a timely basis.<br/>
<a id="pl.28.19"></a><var>28.19</var><b>EFFECTIVE DATE.</b>This section is effective for taxes remitted after May 30, 2014.<br/>
<br/>
<a id="bill.2.5.0"></a><a id="pl.28.20"></a><var>28.20</var>    Sec. 5. Minnesota Statutes 2012, section 289A.60, subdivision 15, is amended to read:<br/>
<a id="pl.28.21"></a><var>28.21</var>    Subd. 15. <b>Accelerated payment of June sales tax liability; penalty for </b><br/>
<a id="pl.28.22"></a><var>28.22</var><b>underpayment.</b> For payments made after December 31, 2006 2013, if a vendor is <br/>
<a id="pl.28.23"></a><var>28.23</var>required by law to submit an estimation of June sales tax liabilities and 90 81.4 percent <br/>
<a id="pl.28.24"></a><var>28.24</var>payment by a certain date, the vendor shall pay a penalty equal to ten percent of the <br/>
<a id="pl.28.25"></a><var>28.25</var>amount of actual June liability required to be paid in June less the amount remitted in <br/>
<a id="pl.28.26"></a><var>28.26</var>June. The penalty must not be imposed, however, if the amount remitted in June equals <br/>
<a id="pl.28.27"></a><var>28.27</var>the lesser of 90 81.4 percent of the preceding May's liability or 90 81.4 percent of the <br/>
<a id="pl.28.28"></a><var>28.28</var>average monthly liability for the previous calendar year.<br/>
<a id="pl.28.29"></a><var>28.29</var><b>EFFECTIVE DATE.</b>This section is effective for taxes remitted after May 30, 2014.<br/>
<br/>
<a id="bill.2.6.0"></a><a id="pl.28.30"></a><var>28.30</var>    Sec. 6. Minnesota Statutes 2012, section 297A.67, subdivision 13a, is amended to read:<br/>
<a id="pl.28.31"></a><var>28.31</var>    Subd. 13a. <b>Instructional materials.</b> Instructional materials, other than textbooks, <br/>
<a id="pl.28.32"></a><var>28.32</var>that are prescribed for use in conjunction with a course of study in a postsecondary school, <br/>
<a id="pl.28.33"></a><var>28.33</var>college, university, or private career school to students who are regularly enrolled at such <br/>
<a id="pl.29.1"></a><var>29.1</var>institutions are exempt. For purposes of this subdivision, "instructional materials" means <br/>
<a id="pl.29.2"></a><var>29.2</var>materials required to be used directly in the completion of the course of study, including, <br/>
<a id="pl.29.3"></a><var>29.3</var>but not limited to, interactive CDs, tapes, digital audio works, digital audiovisual works, <br/>
<a id="pl.29.4"></a><var>29.4</var>and computer software.<br/>
<a id="pl.29.5"></a><var>29.5</var>Instructional materials do not include general reference works or other items <br/>
<a id="pl.29.6"></a><var>29.6</var>incidental to the instructional process such as pens, pencils, paper, folders, or computers. <br/>
<a id="pl.29.7"></a><var>29.7</var>For purposes of this subdivision, "school" and "private career school" have the meanings <br/>
<a id="pl.29.8"></a><var>29.8</var>given in subdivision 13.<br/>
<a id="pl.29.9"></a><var>29.9</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.7.0"></a><a id="pl.29.10"></a><var>29.10</var>    Sec. 7. Minnesota Statutes 2012, section 297A.67, is amended by adding a subdivision <br/>
<a id="pl.29.11"></a><var>29.11</var>to read:<br/>
<a id="pl.29.12"></a><var>29.12</var>    Subd. 33. <b>Bullion coin.</b> Bullion coin as defined in section 80G.01, subdivision <br/>
<a id="pl.29.13"></a><var>29.13</var>2, are exempt.<br/>
<a id="pl.29.14"></a><var>29.14</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.29.15"></a><var>29.15</var>June 30, 2014.<br/>
<br/>
<a id="bill.2.8.0"></a><a id="pl.29.16"></a><var>29.16</var>    Sec. 8. Minnesota Statutes 2012, section 297A.67, is amended by adding a subdivision <br/>
<a id="pl.29.17"></a><var>29.17</var>to read:<br/>
<a id="pl.29.18"></a><var>29.18</var>    Subd. 34. <b>Presentations accessed as digital audio and audiovisual works.</b><br/>
<a id="pl.29.19"></a><var>29.19</var>The charge for a live or prerecorded presentation, such as a lecture, seminar, <br/>
<a id="pl.29.20"></a><var>29.20</var>workshop, or course, where participants access the presentation as a digital audio <br/>
<a id="pl.29.21"></a><var>29.21</var>work or digital audiovisual work, and are connected to the presentation via the <br/>
<a id="pl.29.22"></a><var>29.22</var>Internet, telecommunications equipment or other device that transfers the presentation <br/>
<a id="pl.29.23"></a><var>29.23</var>electronically, is exempt if:<br/>
<a id="pl.29.24"></a><var>29.24</var>(1) participants and the presenter, during the time that participants access the <br/>
<a id="pl.29.25"></a><var>29.25</var>presentation, are able to give, receive, and discuss the presentation with each other, <br/>
<a id="pl.29.26"></a><var>29.26</var>although the amount of interaction and when in the presentation the interaction occurs <br/>
<a id="pl.29.27"></a><var>29.27</var>may be limited by the presenter; and<br/>
<a id="pl.29.28"></a><var>29.28</var>(2) for those presentations where participants are given the option to attend the <br/>
<a id="pl.29.29"></a><var>29.29</var>same presentation in person:<br/>
<a id="pl.29.30"></a><var>29.30</var>(i) any limitations on the amount of interaction and when it occurs during the <br/>
<a id="pl.29.31"></a><var>29.31</var>presentation are the same for those participants accessing the presentation electronically <br/>
<a id="pl.29.32"></a><var>29.32</var>as those attending in person; and<br/>
<a id="pl.29.33"></a><var>29.33</var>(ii) the admission to the in person presentation is not subject to tax under this chapter.<br/>
<a id="pl.30.1"></a><var>30.1</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.30.2"></a><var>30.2</var>June 30, 2014.<br/>
<br/>
<a id="bill.2.9.0"></a><a id="pl.30.3"></a><var>30.3</var>    Sec. 9. Minnesota Statutes 2012, section 297A.68, is amended by adding a subdivision <br/>
<a id="pl.30.4"></a><var>30.4</var>to read:<br/>
<a id="pl.30.5"></a><var>30.5</var>    Subd. 3a. <b>Coin-operated entertainment and amusement devices.</b>  Coin-operated <br/>
<a id="pl.30.6"></a><var>30.6</var>entertainment and amusement devices, including, but not limited to, fortune-telling <br/>
<a id="pl.30.7"></a><var>30.7</var>machines, cranes, foosball and pool tables, video and pinball games, batting cages, rides, <br/>
<a id="pl.30.8"></a><var>30.8</var>photo or video booths, and jukeboxes, are exempt when purchased by retailers selling <br/>
<a id="pl.30.9"></a><var>30.9</var>admission to places of amusement and making available amusement devices as provided <br/>
<a id="pl.30.10"></a><var>30.10</var>in section 297A.61, subdivision 3, paragraph (g), clause (1).<br/>
<a id="pl.30.11"></a><var>30.11</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.30.12"></a><var>30.12</var>June 30, 2014.<br/>
<br/>
<a id="bill.2.10.0"></a><a id="pl.30.13"></a><var>30.13</var>    Sec. 10. Minnesota Statutes 2013 Supplement, section 297A.68, subdivision 42, <br/>
<a id="pl.30.14"></a><var>30.14</var>is amended to read:<br/>
<a id="pl.30.15"></a><var>30.15</var>    Subd. 42. <b>Qualified data centers.</b> (a) Purchases of enterprise information <br/>
<a id="pl.30.16"></a><var>30.16</var>technology equipment and computer software for use in a qualified data center, or a <br/>
<a id="pl.30.17"></a><var>30.17</var>qualified refurbished data center, are exempt, except that computer software maintenance <br/>
<a id="pl.30.18"></a><var>30.18</var>agreements are exempt for purchases made after June 30, 2013. The tax on purchases <br/>
<a id="pl.30.19"></a><var>30.19</var>exempt under this paragraph must be imposed and collected as if the rate under section <br/>
<statute_ref><a id="pl.30.20"></a><var>30.20</var>297A.62, subdivision 1
         </statute_ref>, applied, and then refunded after June 30, 2013, in the manner <br/>
<a id="pl.30.21"></a><var>30.21</var>provided in section 
         <statute_ref>297A.75</statute_ref>. This exemption includes enterprise information technology <br/>
<a id="pl.30.22"></a><var>30.22</var>equipment and computer software purchased to replace or upgrade enterprise information <br/>
<a id="pl.30.23"></a><var>30.23</var>technology equipment and computer software in a qualified data center, or a qualified <br/>
<a id="pl.30.24"></a><var>30.24</var>refurbished data center.<br/>
<a id="pl.30.25"></a><var>30.25</var>(b) Electricity used or consumed in the operation of a qualified data center or <br/>
<a id="pl.30.26"></a><var>30.26</var>qualified refurbished data center is exempt.<br/>
<a id="pl.30.27"></a><var>30.27</var>(c) For purposes of this subdivision, "qualified data center, or a qualified refurbished <br/>
<a id="pl.30.28"></a><var>30.28</var>data center, " means a facility in Minnesota:<br/>
<a id="pl.30.29"></a><var>30.29</var>(1) that is comprised of one or more buildings that consist in the aggregate of <br/>
<a id="pl.30.30"></a><var>30.30</var>at least 25,000 square feet, and that are located on a single parcel or on contiguous <br/>
<a id="pl.30.31"></a><var>30.31</var>parcels, where the total cost of construction or refurbishment, investment in enterprise <br/>
<a id="pl.30.32"></a><var>30.32</var>information technology equipment, and computer software is at least $30,000,000 within a <br/>
<a id="pl.30.33"></a><var>30.33</var>48-month period. The 48-month period begins no sooner than July 1, 2012, except that <br/>
<a id="pl.31.1"></a><var>31.1</var>costs for computer software maintenance agreements purchased before July 1, 2013, are <br/>
<a id="pl.31.2"></a><var>31.2</var>not included in determining if the $30,000,000 threshold has been met;<br/>
<a id="pl.31.3"></a><var>31.3</var>(2) that is constructed or substantially refurbished after June 30, 2012, where <br/>
<a id="pl.31.4"></a><var>31.4</var>"substantially refurbished" means that at least 25,000 square feet have been rebuilt or <br/>
<a id="pl.31.5"></a><var>31.5</var>modified, including:<br/>
<a id="pl.31.6"></a><var>31.6</var>(i) installation of enterprise information technology equipment,; environmental <br/>
<a id="pl.31.7"></a><var>31.7</var>control, computer software, and energy efficiency improvements; and<br/>
<a id="pl.31.8"></a><var>31.8</var>(ii) building improvements; and<br/>
<a id="pl.31.9"></a><var>31.9</var>(3) that is used to house enterprise information technology equipment, where the <br/>
<a id="pl.31.10"></a><var>31.10</var>facility has the following characteristics:<br/>
<a id="pl.31.11"></a><var>31.11</var>(i) uninterruptible power supplies, generator backup power, or both;<br/>
<a id="pl.31.12"></a><var>31.12</var>(ii) sophisticated fire suppression and prevention systems; and<br/>
<a id="pl.31.13"></a><var>31.13</var>(iii) enhanced security. A facility will be considered to have enhanced security if it <br/>
<a id="pl.31.14"></a><var>31.14</var>has restricted access to the facility to selected personnel; permanent security guards; video <br/>
<a id="pl.31.15"></a><var>31.15</var>camera surveillance; an electronic system requiring pass codes, keycards, or biometric <br/>
<a id="pl.31.16"></a><var>31.16</var>scans, such as hand scans and retinal or fingerprint recognition; or similar security features.<br/>
<a id="pl.31.17"></a><var>31.17</var>In determining whether the facility has the required square footage, the square footage <br/>
<a id="pl.31.18"></a><var>31.18</var>of the following spaces shall be included if the spaces support the operation of enterprise <br/>
<a id="pl.31.19"></a><var>31.19</var>information technology equipment: office space, meeting space, and mechanical and <br/>
<a id="pl.31.20"></a><var>31.20</var>other support facilities. For purposes of this subdivision, "computer software" includes, <br/>
<a id="pl.31.21"></a><var>31.21</var>but is not limited to, software utilized or loaded at the a qualified data center or qualified <br/>
<a id="pl.31.22"></a><var>31.22</var>refurbished data center, including maintenance, licensing, and software customization.<br/>
<a id="pl.31.23"></a><var>31.23</var>(d) For purposes of this subdivision, a "qualified refurbished data center" means an <br/>
<a id="pl.31.24"></a><var>31.24</var>existing facility that qualifies as a data center under paragraph (c), clauses (2) and (3), but <br/>
<a id="pl.31.25"></a><var>31.25</var>that is comprised of one or more buildings that consist in the aggregate of at least 25,000 <br/>
<a id="pl.31.26"></a><var>31.26</var>square feet, and that are located on a single parcel or contiguous parcels, where the total <br/>
<a id="pl.31.27"></a><var>31.27</var>cost of construction or refurbishment, investment in enterprise information technology <br/>
<a id="pl.31.28"></a><var>31.28</var>equipment, and computer software is at least $50,000,000 within a 24-month period.<br/>
<a id="pl.31.29"></a><var>31.29</var>(e) For purposes of this subdivision, "enterprise information technology equipment" <br/>
<a id="pl.31.30"></a><var>31.30</var>means computers and equipment supporting computing, networking, or data storage, <br/>
<a id="pl.31.31"></a><var>31.31</var>including servers and routers. It includes, but is not limited to: cooling systems, <br/>
<a id="pl.31.32"></a><var>31.32</var>cooling towers, and other temperature control infrastructure; power infrastructure for <br/>
<a id="pl.31.33"></a><var>31.33</var>transformation, distribution, or management of electricity used for the maintenance and <br/>
<a id="pl.31.34"></a><var>31.34</var>operation of a qualified data center or qualified refurbished data center, including but <br/>
<a id="pl.31.35"></a><var>31.35</var>not limited to exterior dedicated business-owned substations, backup power generation <br/>
<a id="pl.31.36"></a><var>31.36</var>systems, battery systems, and related infrastructure; and racking systems, cabling, and <br/>
<a id="pl.32.1"></a><var>32.1</var>trays, which are necessary for the a maintenance and operation of the qualified data center <br/>
<a id="pl.32.2"></a><var>32.2</var>or qualified refurbished data center.<br/>
<a id="pl.32.3"></a><var>32.3</var>(f) A qualified data center or qualified refurbished data center may claim the <br/>
<a id="pl.32.4"></a><var>32.4</var>exemptions in this subdivision for purchases made either within 20 years of the date of <br/>
<a id="pl.32.5"></a><var>32.5</var>its first purchase qualifying for the exemption under paragraph (a), or by June 30, 2042, <br/>
<a id="pl.32.6"></a><var>32.6</var>whichever is earlier.<br/>
<a id="pl.32.7"></a><var>32.7</var>(g) The purpose of this exemption is to create jobs in the construction and data <br/>
<a id="pl.32.8"></a><var>32.8</var>center industries.<br/>
<a id="pl.32.9"></a><var>32.9</var>(h) This subdivision is effective for sales and purchases made after June 30, 2012, <br/>
<a id="pl.32.10"></a><var>32.10</var>and before July 1, 2042.<br/>
<a id="pl.32.11"></a><var>32.11</var>(i)(1) The commissioner of employment and economic development must certify <br/>
<a id="pl.32.12"></a><var>32.12</var>to the commissioner of revenue, in a format approved by the commissioner of revenue, <br/>
<a id="pl.32.13"></a><var>32.13</var>when a qualified data center has met the requirements under paragraph (c) or a qualified <br/>
<a id="pl.32.14"></a><var>32.14</var>refurbished data center has met the requirements under paragraph (d). The certification <br/>
<a id="pl.32.15"></a><var>32.15</var>must provide the following information regarding each qualified data center or qualified <br/>
<a id="pl.32.16"></a><var>32.16</var>refurbished data center:<br/>
<a id="pl.32.17"></a><var>32.17</var>(i) the total square footage amount;<br/>
<a id="pl.32.18"></a><var>32.18</var>(ii) the total amount of construction or refurbishment costs and the total amount of <br/>
<a id="pl.32.19"></a><var>32.19</var>qualifying investments in enterprise information technology equipment and computer <br/>
<a id="pl.32.20"></a><var>32.20</var>software; and<br/>
<a id="pl.32.21"></a><var>32.21</var>(iii) the beginning and ending of the applicable period under either paragraph (c) or <br/>
<a id="pl.32.22"></a><var>32.22</var>(d) in which the qualifying expenditures and purchases under item (ii) were made, but in <br/>
<a id="pl.32.23"></a><var>32.23</var>no case shall the period begin before July 1, 2012; <br/>
<a id="pl.32.24"></a><var>32.24</var>(2) Any refund for sales tax paid on qualifying purchases under this subdivision must <br/>
<a id="pl.32.25"></a><var>32.25</var>not be issued unless the commissioner of revenue has received the certification required <br/>
<a id="pl.32.26"></a><var>32.26</var>under clause (1) either from the commissioner of employment and economic development <br/>
<a id="pl.32.27"></a><var>32.27</var>or the qualified data center or qualified refurbished data center claiming the refund; and<br/>
<a id="pl.32.28"></a><var>32.28</var>(3) The commissioner of employment and economic development must annually <br/>
<a id="pl.32.29"></a><var>32.29</var>notify the commissioner of revenue of the qualified data centers that are projected to meet <br/>
<a id="pl.32.30"></a><var>32.30</var>the requirements under paragraph (c) and the qualified refurbished data centers that are <br/>
<a id="pl.32.31"></a><var>32.31</var>projected to meet the requirements under paragraph (d) in each of the next four years. The <br/>
<a id="pl.32.32"></a><var>32.32</var>notification must provide the information required under clause (1), items (i) to (iii), for <br/>
<a id="pl.32.33"></a><var>32.33</var>each qualified data center or qualified refurbished data center.<br/>
<a id="pl.32.34"></a><var>32.34</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.11.0"></a><a id="pl.33.1"></a><var>33.1</var>    Sec. 11. Minnesota Statutes 2013 Supplement, section 297A.68, subdivision 44, <br/>
<a id="pl.33.2"></a><var>33.2</var>is amended to read:<br/>
<a id="pl.33.3"></a><var>33.3</var>    Subd. 44. <b>Greater Minnesota business expansions.</b> (a) Purchases and use of <br/>
<a id="pl.33.4"></a><var>33.4</var>tangible personal property or taxable services by a qualified business, as defined in section <br/>
<statute_ref><a id="pl.33.5"></a><var>33.5</var>116J.8738
         </statute_ref>, are exempt if:<br/>
<a id="pl.33.6"></a><var>33.6</var>(1) the business subsidy agreement provides that the exemption under this <br/>
<a id="pl.33.7"></a><var>33.7</var>subdivision applies;<br/>
<a id="pl.33.8"></a><var>33.8</var>(2) the property or services are primarily used or consumed at the facility in greater <br/>
<a id="pl.33.9"></a><var>33.9</var>Minnesota identified in the business subsidy agreement; and<br/>
<a id="pl.33.10"></a><var>33.10</var>(3) the purchase was made and delivery received during the duration of the <br/>
<a id="pl.33.11"></a><var>33.11</var>certification of the business as a qualified business under section 
         <statute_ref>116J.8738</statute_ref>.<br/>
<a id="pl.33.12"></a><var>33.12</var>(b) Purchase and use of construction materials and supplies used or consumed in, <br/>
<a id="pl.33.13"></a><var>33.13</var>and equipment incorporated into, the construction of improvements to real property in <br/>
<a id="pl.33.14"></a><var>33.14</var>greater Minnesota are exempt if the improvements after completion of construction are <br/>
<a id="pl.33.15"></a><var>33.15</var>to be used in the conduct of the trade or business of the qualified business, as defined in <br/>
<a id="pl.33.16"></a><var>33.16</var>section 
         <statute_ref>116J.8738</statute_ref>. This exemption applies regardless of whether the purchases are made <br/>
<a id="pl.33.17"></a><var>33.17</var>by the business or a contractor.<br/>
<a id="pl.33.18"></a><var>33.18</var>(c) The exemptions under this subdivision apply to a local sales and use tax.<br/>
<a id="pl.33.19"></a><var>33.19</var>(d) The tax on purchases imposed under this subdivision must be imposed and <br/>
<a id="pl.33.20"></a><var>33.20</var>collected as if the rate under section 
         <statute_ref>297A.62</statute_ref> applied, and then refunded in the manner <br/>
<a id="pl.33.21"></a><var>33.21</var>provided in section 
         <statute_ref>297A.75</statute_ref>. The total amount refunded for a facility over the certification <br/>
<a id="pl.33.22"></a><var>33.22</var>period is limited to the amount listed in the business subsidy agreement. No more than <br/>
<a id="pl.33.23"></a><var>33.23</var>$7,000,000 may be refunded in a fiscal year for all purchases under this subdivision. <br/>
<a id="pl.33.24"></a><var>33.24</var>Refunds must be allocated on a first-come, first-served basis. If more than $7,000,000 of <br/>
<a id="pl.33.25"></a><var>33.25</var>eligible claims are made in a fiscal year, claims by qualified businesses carry over to the <br/>
<a id="pl.33.26"></a><var>33.26</var>next fiscal year, and the commissioner must first allocate refunds to qualified businesses <br/>
<a id="pl.33.27"></a><var>33.27</var>eligible for a refund in the preceding fiscal year. Any portion of the balance of funds <br/>
<a id="pl.33.28"></a><var>33.28</var>allocated for refunds under this paragraph does not cancel and shall be carried forward to <br/>
<a id="pl.33.29"></a><var>33.29</var>and available for refunds in subsequent fiscal years.<br/>
<a id="pl.33.30"></a><var>33.30</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.12.0"></a><a id="pl.33.31"></a><var>33.31</var>    Sec. 12. Minnesota Statutes 2013 Supplement, section 297A.70, subdivision 2, is <br/>
<a id="pl.33.32"></a><var>33.32</var>amended to read:<br/>
<a id="pl.33.33"></a><var>33.33</var>    Subd. 2. <b>Sales to government.</b> (a) All sales, except those listed in paragraph (b), <br/>
<a id="pl.33.34"></a><var>33.34</var>to the following governments and political subdivisions, or to the listed agencies or <br/>
<a id="pl.33.35"></a><var>33.35</var>instrumentalities of governments and political subdivisions, are exempt:<br/>
<a id="pl.34.1"></a><var>34.1</var>(1) the United States and its agencies and instrumentalities;<br/>
<a id="pl.34.2"></a><var>34.2</var>(2) school districts, local governments, the University of Minnesota, state universities, <br/>
<a id="pl.34.3"></a><var>34.3</var>community colleges, technical colleges, state academies, the Perpich Minnesota Center for <br/>
<a id="pl.34.4"></a><var>34.4</var>Arts Education, and an instrumentality of a political subdivision that is accredited as an <br/>
<a id="pl.34.5"></a><var>34.5</var>optional/special function school by the North Central Association of Colleges and Schools;<br/>
<a id="pl.34.6"></a><var>34.6</var>(3) hospitals and nursing homes owned and operated by political subdivisions of <br/>
<a id="pl.34.7"></a><var>34.7</var>the state of tangible personal property and taxable services used at or by hospitals and <br/>
<a id="pl.34.8"></a><var>34.8</var>nursing homes;<br/>
<a id="pl.34.9"></a><var>34.9</var>(4) the Metropolitan Council, for its purchases of vehicles and repair parts to equip <br/>
<a id="pl.34.10"></a><var>34.10</var>operations provided for in section 
<statute_ref>473.4051</statute_ref>;<br/>
<a id="pl.34.11"></a><var>34.11</var>(5) (4) other states or political subdivisions of other states, if the sale would be <br/>
<a id="pl.34.12"></a><var>34.12</var>exempt from taxation if it occurred in that state; and<br/>
<a id="pl.34.13"></a><var>34.13</var>(6) (5) public libraries, public library systems, multicounty, multitype library systems <br/>
<a id="pl.34.14"></a><var>34.14</var>as defined in section 
         <statute_ref>134.001</statute_ref>, county law libraries under chapter 134A, state agency <br/>
<a id="pl.34.15"></a><var>34.15</var>libraries, the state library under section 
         <statute_ref>480.09</statute_ref>, and the Legislative Reference Library.<br/>
<a id="pl.34.16"></a><var>34.16</var>(b) This exemption does not apply to the sales of the following products and services:<br/>
<a id="pl.34.17"></a><var>34.17</var>(1) building, construction, or reconstruction materials purchased by a contractor <br/>
<a id="pl.34.18"></a><var>34.18</var>or a subcontractor as a part of a lump-sum contract or similar type of contract with a <br/>
<a id="pl.34.19"></a><var>34.19</var>guaranteed maximum price covering both labor and materials for use in the construction, <br/>
<a id="pl.34.20"></a><var>34.20</var>alteration, or repair of a building or facility;<br/>
<a id="pl.34.21"></a><var>34.21</var>(2) construction materials purchased by tax exempt entities or their contractors to <br/>
<a id="pl.34.22"></a><var>34.22</var>be used in constructing buildings or facilities which will not be used principally by the <br/>
<a id="pl.34.23"></a><var>34.23</var>tax exempt entities;<br/>
<a id="pl.34.24"></a><var>34.24</var>(3) the leasing of a motor vehicle as defined in section 
         <statute_ref>297B.01, subdivision 11</statute_ref>, <br/>
<a id="pl.34.25"></a><var>34.25</var>except for leases entered into by the United States or its agencies or instrumentalities;<br/>
<a id="pl.34.26"></a><var>34.26</var>(4) lodging as defined under section 
         <statute_ref>297A.61, subdivision 3</statute_ref>, paragraph (g), clause <br/>
<a id="pl.34.27"></a><var>34.27</var>(2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in section <br/>
<statute_ref><a id="pl.34.28"></a><var>34.28</var>297A.67, subdivision 2
         </statute_ref>, except for lodging, prepared food, candy, soft drinks, and alcoholic <br/>
<a id="pl.34.29"></a><var>34.29</var>beverages purchased directly by the United States or its agencies or instrumentalities; or<br/>
<a id="pl.34.30"></a><var>34.30</var>(5) goods or services purchased by a local government as inputs to goods and <br/>
<a id="pl.34.31"></a><var>34.31</var>services that are generally provided by a private business and the purchases would be <br/>
<a id="pl.34.32"></a><var>34.32</var>taxable if made by a private business engaged in the same activity.<br/>
<a id="pl.34.33"></a><var>34.33</var>(c) As used in this subdivision, "school districts" means public school entities and <br/>
<a id="pl.34.34"></a><var>34.34</var>districts of every kind and nature organized under the laws of the state of Minnesota, and <br/>
<a id="pl.34.35"></a><var>34.35</var>any instrumentality of a school district, as defined in section 
         <statute_ref>471.59</statute_ref>.<br/>
<a id="pl.35.1"></a><var>35.1</var>(d) As used in this subdivision, "local governments" means cities, counties, and <br/>
<a id="pl.35.2"></a><var>35.2</var>townships; special districts as defined under section 6.465; any instrumentality of a <br/>
<a id="pl.35.3"></a><var>35.3</var>city, county, or township as defined in section 471.59; and any joint powers board or <br/>
<a id="pl.35.4"></a><var>35.4</var>organization created under section 471.59.<br/>
<a id="pl.35.5"></a><var>35.5</var>(e) As used in this subdivision, "goods or services generally provided by a private <br/>
<a id="pl.35.6"></a><var>35.6</var>business" include, but are not limited to, goods or services provided by liquor stores, gas <br/>
<a id="pl.35.7"></a><var>35.7</var>and electric utilities, golf courses, marinas, health and fitness centers, campgrounds, cafes, <br/>
<a id="pl.35.8"></a><var>35.8</var>and laundromats, solid waste management services, housing facility improvements and <br/>
<a id="pl.35.9"></a><var>35.9</var>maintenance, fitness and special interest classes, recreational and athletic facilities, banquet <br/>
<a id="pl.35.10"></a><var>35.10</var>and private party facilities, aquatic facilities, and cemeteries. "Goods or services generally <br/>
<a id="pl.35.11"></a><var>35.11</var>provided by a private business" do not include housing services,: sewer and water <br/>
<a id="pl.35.12"></a><var>35.12</var>services, wastewater treatment, ambulance and other public safety services, correctional <br/>
<a id="pl.35.13"></a><var>35.13</var>services, chore or homemaking services provided to elderly or disabled individuals, or<br/>
<a id="pl.35.14"></a><var>35.14</var> computing services, ball fields,  road and street maintenance or, lighting, or any goods or <br/>
<a id="pl.35.15"></a><var>35.15</var>services provided by local government only to local governments, and housing, chore, or <br/>
<a id="pl.35.16"></a><var>35.16</var>homemaking services provided to the poor, elderly, or disabled individuals.<br/>
<a id="pl.35.17"></a><var>35.17</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.35.18"></a><var>35.18</var>December 31, 2014.<br/>
<br/>
<a id="bill.2.13.0"></a><a id="pl.35.19"></a><var>35.19</var>    Sec. 13. Minnesota Statutes 2013 Supplement, section 297A.70, subdivision 13, <br/>
<a id="pl.35.20"></a><var>35.20</var>is amended to read:<br/>
<a id="pl.35.21"></a><var>35.21</var>    Subd. 13. <b>Fund-raising sales by or for nonprofit groups.</b> (a) The following <br/>
<a id="pl.35.22"></a><var>35.22</var>sales by the specified organizations for fund-raising purposes are exempt, subject to the <br/>
<a id="pl.35.23"></a><var>35.23</var>limitations listed in paragraph (b):<br/>
<a id="pl.35.24"></a><var>35.24</var>(1) all sales made by a nonprofit organization that exists solely for the purpose of <br/>
<a id="pl.35.25"></a><var>35.25</var>providing educational or social activities for young people primarily age 18 and under;<br/>
<a id="pl.35.26"></a><var>35.26</var>(2) all sales made by an organization that is a senior citizen group or association of <br/>
<a id="pl.35.27"></a><var>35.27</var>groups if (i) in general it limits membership to persons age 55 or older; (ii) it is organized <br/>
<a id="pl.35.28"></a><var>35.28</var>and operated exclusively for pleasure, recreation, and other nonprofit purposes; and (iii) <br/>
<a id="pl.35.29"></a><var>35.29</var>no part of its net earnings inures to the benefit of any private shareholders;<br/>
<a id="pl.35.30"></a><var>35.30</var>(3) the sale or use of tickets or admissions to a golf tournament held in Minnesota if <br/>
<a id="pl.35.31"></a><var>35.31</var>the beneficiary of the tournament's net proceeds qualifies as a tax-exempt organization <br/>
<a id="pl.35.32"></a><var>35.32</var>under section 501(c)(3) of the Internal Revenue Code; and<br/>
<a id="pl.35.33"></a><var>35.33</var>(4) sales of candy sold for fund-raising purposes by a nonprofit organization that <br/>
<a id="pl.35.34"></a><var>35.34</var>provides educational and social activities primarily for young people age 18 and under.<br/>
<a id="pl.35.35"></a><var>35.35</var>(b) The exemptions listed in paragraph (a) are limited in the following manner:<br/>
<a id="pl.36.1"></a><var>36.1</var>(1) the exemption under paragraph (a), clauses (1) and (2), applies only if to the first <br/>
<a id="pl.36.2"></a><var>36.2</var>$20,000 of the gross annual receipts of the organization from fund-raising do not exceed <br/>
<a id="pl.36.3"></a><var>36.3</var>$10,000; and<br/>
<a id="pl.36.4"></a><var>36.4</var>(2) the exemption under paragraph (a), clause (1), does not apply if the sales are <br/>
<a id="pl.36.5"></a><var>36.5</var>derived from admission charges or from activities for which the money must be deposited <br/>
<a id="pl.36.6"></a><var>36.6</var>with the school district treasurer under section 
         <statute_ref>123B.49, subdivision 2</statute_ref>, or be recorded in <br/>
<a id="pl.36.7"></a><var>36.7</var>the same manner as other revenues or expenditures of the school district under section <br/>
<statute_ref><a id="pl.36.8"></a><var>36.8</var>123B.49, subdivision 4
         </statute_ref>.<br/>
<a id="pl.36.9"></a><var>36.9</var>(c) Sales of tangible personal property and services are exempt if the entire proceeds, <br/>
<a id="pl.36.10"></a><var>36.10</var>less the necessary expenses for obtaining the property or services, will be contributed to <br/>
<a id="pl.36.11"></a><var>36.11</var>a registered combined charitable organization described in section 
         <statute_ref>43A.50</statute_ref>, to be used <br/>
<a id="pl.36.12"></a><var>36.12</var>exclusively for charitable, religious, or educational purposes, and the registered combined <br/>
<a id="pl.36.13"></a><var>36.13</var>charitable organization has given its written permission for the sale. Sales that occur over <br/>
<a id="pl.36.14"></a><var>36.14</var>a period of more than 24 days per year are not exempt under this paragraph.<br/>
<a id="pl.36.15"></a><var>36.15</var>(d) For purposes of this subdivision, a club, association, or other organization of <br/>
<a id="pl.36.16"></a><var>36.16</var>elementary or secondary school students organized for the purpose of carrying on sports, <br/>
<a id="pl.36.17"></a><var>36.17</var>educational, or other extracurricular activities is a separate organization from the school <br/>
<a id="pl.36.18"></a><var>36.18</var>district or school for purposes of applying the $10,000 $20,000 limit.<br/>
<a id="pl.36.19"></a><var>36.19</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.36.20"></a><var>36.20</var>December 31, 2014.<br/>
<br/>
<a id="bill.2.14.0"></a><a id="pl.36.21"></a><var>36.21</var>    Sec. 14. Minnesota Statutes 2013 Supplement, section 297A.70, subdivision 14, <br/>
<a id="pl.36.22"></a><var>36.22</var>is amended to read:<br/>
<a id="pl.36.23"></a><var>36.23</var>    Subd. 14. <b>Fund-raising events sponsored by nonprofit groups.</b> (a) Sales of <br/>
<a id="pl.36.24"></a><var>36.24</var>tangible personal property or services at, and admission charges for fund-raising events <br/>
<a id="pl.36.25"></a><var>36.25</var>sponsored by, a nonprofit organization are exempt if:<br/>
<a id="pl.36.26"></a><var>36.26</var>(1) all gross receipts are recorded as such, in accordance with generally accepted <br/>
<a id="pl.36.27"></a><var>36.27</var>accounting practices, on the books of the nonprofit organization; and<br/>
<a id="pl.36.28"></a><var>36.28</var>(2) the entire proceeds, less the necessary expenses for the event, will be used solely <br/>
<a id="pl.36.29"></a><var>36.29</var>and exclusively for charitable, religious, or educational purposes. Exempt sales include <br/>
<a id="pl.36.30"></a><var>36.30</var>the sale of prepared food, candy, and soft drinks at the fund-raising event.<br/>
<a id="pl.36.31"></a><var>36.31</var>(b) This exemption is limited in the following manner:<br/>
<a id="pl.36.32"></a><var>36.32</var>(1) it does not apply to admission charges for events involving bingo or other <br/>
<a id="pl.36.33"></a><var>36.33</var>gambling activities or to charges for use of amusement devices involving bingo or other <br/>
<a id="pl.36.34"></a><var>36.34</var>gambling activities;<br/>
<a id="pl.37.1"></a><var>37.1</var>(2) all gross receipts are taxable if the profits are not used solely and exclusively for <br/>
<a id="pl.37.2"></a><var>37.2</var>charitable, religious, or educational purposes;<br/>
<a id="pl.37.3"></a><var>37.3</var>(3) it does not apply unless the organization keeps a separate accounting record, <br/>
<a id="pl.37.4"></a><var>37.4</var>including receipts and disbursements from each fund-raising event that documents all <br/>
<a id="pl.37.5"></a><var>37.5</var>deductions from gross receipts with receipts and other records;<br/>
<a id="pl.37.6"></a><var>37.6</var>(4) it does not apply to any sale made by or in the name of a nonprofit corporation as <br/>
<a id="pl.37.7"></a><var>37.7</var>the active or passive agent of a person that is not a nonprofit corporation;<br/>
<a id="pl.37.8"></a><var>37.8</var>(5) all gross receipts are taxable if fund-raising events exceed 24 days per year;<br/>
<a id="pl.37.9"></a><var>37.9</var>(6) it does not apply to fund-raising events conducted on premises leased for more <br/>
<a id="pl.37.10"></a><var>37.10</var>than five days but less than 30 days; and<br/>
<a id="pl.37.11"></a><var>37.11</var>(7) it does not apply if the risk of the event is not borne by the nonprofit organization <br/>
<a id="pl.37.12"></a><var>37.12</var>and the benefit to the nonprofit organization is less than the total amount of the state and <br/>
<a id="pl.37.13"></a><var>37.13</var>local tax revenues forgone by this exemption.<br/>
<a id="pl.37.14"></a><var>37.14</var>(c) For purposes of this subdivision, a "nonprofit organization" means any unit of <br/>
<a id="pl.37.15"></a><var>37.15</var>government, corporation, society, association, foundation, or institution organized and <br/>
<a id="pl.37.16"></a><var>37.16</var>operated for charitable, religious, educational, civic, fraternal, and senior citizens' or <br/>
<a id="pl.37.17"></a><var>37.17</var>veterans' purposes, no part of the net earnings of which inures to the benefit of a private <br/>
<a id="pl.37.18"></a><var>37.18</var>individual.<br/>
<a id="pl.37.19"></a><var>37.19</var>(d) For purposes of this subdivision, "fund-raising events" means activities of <br/>
<a id="pl.37.20"></a><var>37.20</var>limited duration, not regularly carried out in the normal course of business, that attract <br/>
<a id="pl.37.21"></a><var>37.21</var>patrons for community, social, and entertainment purposes, such as auctions, bake sales, <br/>
<a id="pl.37.22"></a><var>37.22</var>ice cream socials, block parties, carnivals, competitions, concerts, concession stands, <br/>
<a id="pl.37.23"></a><var>37.23</var>craft sales, bazaars, dinners, dances, door-to-door sales of merchandise, fairs, fashion <br/>
<a id="pl.37.24"></a><var>37.24</var>shows, festivals, galas, special event workshops, sporting activities such as marathons and <br/>
<a id="pl.37.25"></a><var>37.25</var>tournaments, and similar events. Fund-raising events do not include the operation of a <br/>
<a id="pl.37.26"></a><var>37.26</var>regular place of business in which services are provided or sales are made during regular <br/>
<a id="pl.37.27"></a><var>37.27</var>hours such as bookstores, thrift stores, gift shops, restaurants, ongoing Internet sales, <br/>
<a id="pl.37.28"></a><var>37.28</var>regularly scheduled classes, or other activities carried out in the normal course of business.<br/>
<a id="pl.37.29"></a><var>37.29</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.37.30"></a><var>37.30</var>December 31, 2014.<br/>
<br/>
<a id="bill.2.15.0"></a><a id="pl.37.31"></a><var>37.31</var>    Sec. 15. Minnesota Statutes 2012, section 297A.70, is amended by adding a <br/>
<a id="pl.37.32"></a><var>37.32</var>subdivision to read:<br/>
<a id="pl.37.33"></a><var>37.33</var>    Subd. 19. <b>Nonprofit snowmobile clubs; machinery and equipment.</b> Sales of <br/>
<a id="pl.37.34"></a><var>37.34</var>tangible personal property to a nonprofit snowmobile club and that is used primarily and <br/>
<a id="pl.37.35"></a><var>37.35</var>directly for the grooming of state or grant-in-aid snowmobile trails are exempt. The <br/>
<a id="pl.38.1"></a><var>38.1</var>exemption applies to grooming machines, attachments, other associated accessories, <br/>
<a id="pl.38.2"></a><var>38.2</var>and repair parts.<br/>
<a id="pl.38.3"></a><var>38.3</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.38.4"></a><var>38.4</var>June 30, 2014.<br/>
<br/>
<a id="bill.2.16.0"></a><a id="pl.38.5"></a><var>38.5</var>    Sec. 16. Minnesota Statutes 2013 Supplement, section 297F.05, subdivision 1, is <br/>
<a id="pl.38.6"></a><var>38.6</var>amended to read:<br/>
<a id="pl.38.7"></a><var>38.7</var>    Subdivision 1. <b>Rates; cigarettes.</b> A tax is imposed upon the sale of cigarettes in <br/>
<a id="pl.38.8"></a><var>38.8</var>this state, upon having cigarettes in possession in this state with intent to sell, upon any <br/>
<a id="pl.38.9"></a><var>38.9</var>person engaged in business as a distributor, and upon the use or storage by consumers, at <br/>
<a id="pl.38.10"></a><var>38.10</var>the following rates: rate of<br/>
<a id="pl.38.11"></a><var>38.11</var>(1) on cigarettes weighing not more than three pounds per thousand, 141.5 mills, <br/>
<a id="pl.38.12"></a><var>38.12</var>or 14.15 cents on each such cigarette; and<br/>
<a id="pl.38.13"></a><var>38.13</var>(2) on cigarettes weighing more than three pounds per thousand, 283 mills on each <br/>
<a id="pl.38.14"></a><var>38.14</var>such cigarette.<br/>
<a id="pl.38.15"></a><var>38.15</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2014.<br/>
<br/>
<a id="bill.2.17.0"></a><a id="pl.38.16"></a><var>38.16</var>    Sec. 17. Minnesota Statutes 2012, section 297F.09, subdivision 10, is amended to read:<br/>
<a id="pl.38.17"></a><var>38.17</var>    Subd. 10. <b>Accelerated tax payment; cigarette or tobacco products distributor.</b><br/>
<a id="pl.38.18"></a><var>38.18</var>    A cigarette or tobacco products distributor having a liability of $120,000 $250,000 or <br/>
<a id="pl.38.19"></a><var>38.19</var>more during a fiscal year ending June 30, shall remit the June liability for the next year <br/>
<a id="pl.38.20"></a><var>38.20</var>in the following manner:<br/>
<a id="pl.38.21"></a><var>38.21</var>    (a) Two business days before June 30 of the year, the distributor shall remit the <br/>
<a id="pl.38.22"></a><var>38.22</var>actual May liability and 90 81.4 percent of the estimated June liability to the commissioner <br/>
<a id="pl.38.23"></a><var>38.23</var>and file the return in the form and manner prescribed by the commissioner.<br/>
<a id="pl.38.24"></a><var>38.24</var>    (b) On or before August 18 of the year, the distributor shall submit a return showing <br/>
<a id="pl.38.25"></a><var>38.25</var>the actual June liability and pay any additional amount of tax not remitted in June. A <br/>
<a id="pl.38.26"></a><var>38.26</var>penalty is imposed equal to ten percent of the amount of June liability required to be paid <br/>
<a id="pl.38.27"></a><var>38.27</var>in June, less the amount remitted in June. However, the penalty is not imposed if the <br/>
<a id="pl.38.28"></a><var>38.28</var>amount remitted in June equals the lesser of:<br/>
<a id="pl.38.29"></a><var>38.29</var>    (1) 90 81.4 percent of the actual June liability; or<br/>
<a id="pl.38.30"></a><var>38.30</var>    (2) 90 81.4 percent of the preceding May's May liability.<br/>
<a id="pl.38.31"></a><var>38.31</var><b>EFFECTIVE DATE.</b>This section is effective for taxes remitted after May 30, 2014.<br/>
<br/>
<a id="bill.2.18.0"></a><a id="pl.38.32"></a><var>38.32</var>    Sec. 18. Minnesota Statutes 2012, section 297G.09, subdivision 9, is amended to read:<br/>
<a id="pl.39.1"></a><var>39.1</var>    Subd. 9. <b>Accelerated tax payment; penalty.</b> A person liable for tax under this <br/>
<a id="pl.39.2"></a><var>39.2</var>chapter having a liability of $120,000 $250,000 or more during a fiscal year ending June <br/>
<a id="pl.39.3"></a><var>39.3</var>30, shall remit the June liability for the next year in the following manner:<br/>
<a id="pl.39.4"></a><var>39.4</var>    (a) Two business days before June 30 of the year, the taxpayer shall remit the actual <br/>
<a id="pl.39.5"></a><var>39.5</var>May liability and 90 81.4 percent of the estimated June liability to the commissioner and <br/>
<a id="pl.39.6"></a><var>39.6</var>file the return in the form and manner prescribed by the commissioner.<br/>
<a id="pl.39.7"></a><var>39.7</var>    (b) On or before August 18 of the year, the taxpayer shall submit a return showing <br/>
<a id="pl.39.8"></a><var>39.8</var>the actual June liability and pay any additional amount of tax not remitted in June. A <br/>
<a id="pl.39.9"></a><var>39.9</var>penalty is imposed equal to ten percent of the amount of June liability required to be paid <br/>
<a id="pl.39.10"></a><var>39.10</var>in June less the amount remitted in June. However, the penalty is not imposed if the <br/>
<a id="pl.39.11"></a><var>39.11</var>amount remitted in June equals the lesser of:<br/>
<a id="pl.39.12"></a><var>39.12</var>    (1) 90 81.4 percent of the actual June liability; or<br/>
<a id="pl.39.13"></a><var>39.13</var>    (2) 90 81.4 percent of the preceding May liability.<br/>
<a id="pl.39.14"></a><var>39.14</var><b>EFFECTIVE DATE.</b>This section is effective for taxes remitted after May 30, 2014.<br/>
<br/>
<a id="bill.2.19.0"></a><a id="pl.39.15"></a><var>39.15</var>    Sec. 19. Minnesota Statutes 2013 Supplement, section 360.531, subdivision 2, is <br/>
<a id="pl.39.16"></a><var>39.16</var>amended to read:<br/>
<a id="pl.39.17"></a><var>39.17</var>    Subd. 2. <b>Rate.</b> The tax shall be as follows:<br/>
<table>
<col width="50px"/>
<col width="25.299999999999997"/>
<col width="2.2"/>
<col width="16.9"/>
<tr>
<td><a id="pl.39.18"></a><var>39.18</var><br/>
</td>
<td>Base Price<br/>
</td>
<td align="center"></td>
<td align="left">Tax<br/>
</td>
</tr>
<tr>
<td><a id="pl.39.19"></a><var>39.19</var><br/>
<a id="pl.39.20"></a><var>39.20</var><br/>
</td>
<td>Under $499,999<br/>
 Not over $500,000<br/>
</td>
<td align="center"></td>
<td>$100<br/>
</td>
</tr>
<tr>
<td><a id="pl.39.21"></a><var>39.21</var><br/>
<a id="pl.39.22"></a><var>39.22</var><br/>
</td>
<td>over $500,000 to $999,999<br/>
 but not over $1,000,000<br/>
</td>
<td align="center"></td>
<td>$200<br/>
</td>
</tr>
<tr>
<td><a id="pl.39.23"></a><var>39.23</var><br/>
<a id="pl.39.24"></a><var>39.24</var><br/>
</td>
<td>over $1,000,000 to $2,499,999<br/>
 but not over $2,500,000<br/>
</td>
<td align="center"></td>
<td align="left">$2,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.39.25"></a><var>39.25</var><br/>
<a id="pl.39.26"></a><var>39.26</var><br/>
</td>
<td>over $2,500,000 to $4,999,999<br/>
 but not over $5,000,000<br/>
</td>
<td align="center"></td>
<td align="left">$4,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.39.27"></a><var>39.27</var><br/>
<a id="pl.39.28"></a><var>39.28</var><br/>
</td>
<td>over $5,000,000 to $7,499,999<br/>
 but not over $7,500,000<br/>
</td>
<td align="center"></td>
<td align="left">$7,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.39.29"></a><var>39.29</var><br/>
<a id="pl.39.30"></a><var>39.30</var><br/>
</td>
<td>over $7,500,000 to $9,999,999<br/>
 but not over $10,000,000<br/>
</td>
<td align="center"></td>
<td align="left">$10,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.39.31"></a><var>39.31</var><br/>
<a id="pl.39.32"></a><var>39.32</var><br/>
</td>
<td>over $10,000,000 to $12,499,999<br/>
 but not over $12,500,000<br/>
</td>
<td align="center"></td>
<td>$12,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.39.33"></a><var>39.33</var><br/>
<a id="pl.39.34"></a><var>39.34</var><br/>
</td>
<td>over $12,500,000 to $14,999,999<br/>
 but not over $15,000,000<br/>
</td>
<td align="center"></td>
<td>$15,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.39.35"></a><var>39.35</var><br/>
<a id="pl.39.36"></a><var>39.36</var><br/>
</td>
<td>over $15,000,000 to $17,499,999<br/>
 but not over $17,500,000<br/>
</td>
<td align="center"></td>
<td align="left">$17,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.39.37"></a><var>39.37</var><br/>
<a id="pl.39.38"></a><var>39.38</var><br/>
</td>
<td>over $17,500,000 to $19,999,999<br/>
 but not over $20,000,000<br/>
</td>
<td align="center"></td>
<td>$20,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.39.39"></a><var>39.39</var><br/>
<a id="pl.39.40"></a><var>39.40</var><br/>
</td>
<td>over $20,000,000 to $22,499,999<br/>
 but not over $22,500,000<br/>
</td>
<td align="center"></td>
<td>$22,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.40.1"></a><var>40.1</var><br/>
<a id="pl.40.2"></a><var>40.2</var><br/>
</td>
<td>over $22,500,000 to $24,999,999<br/>
 but not over $25,000,000<br/>
</td>
<td align="center"></td>
<td align="left">$25,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.40.3"></a><var>40.3</var><br/>
<a id="pl.40.4"></a><var>40.4</var><br/>
</td>
<td>over $25,000,000 to $27,499,999<br/>
 but not over $27,500,000<br/>
</td>
<td align="center"></td>
<td>$27,500<br/>
</td>
</tr>
<tr>
<td><a id="pl.40.5"></a><var>40.5</var><br/>
<a id="pl.40.6"></a><var>40.6</var><br/>
</td>
<td>over $27,500,000 to $29,999,999<br/>
 but not over $30,000,000<br/>
</td>
<td align="center"></td>
<td align="left">$30,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.40.7"></a><var>40.7</var><br/>
<a id="pl.40.8"></a><var>40.8</var><br/>
</td>
<td>over $30,000,000 to $39,999,999<br/>
 but not over $40,000,000<br/>
</td>
<td align="center"></td>
<td align="left">$50,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.40.9"></a><var>40.9</var><br/>
</td>
<td>over $40,000,000 and over<br/>
</td>
<td align="center"></td>
<td>$75,000<br/>
</td>
</tr>
</table><a id="pl.40.10"></a><var>40.10</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2014, and applies to aircraft <br/>
<a id="pl.40.11"></a><var>40.11</var>tax due on or after that date.<br/>
<br/>
<a id="bill.2.20.0"></a><a id="pl.40.12"></a><var>40.12</var>    Sec. 20. Laws 1980, chapter 511, section 1, subdivision 2, as amended by Laws 1991, <br/>
<a id="pl.40.13"></a><var>40.13</var>chapter 291, article 8, section 22, Laws 1998, chapter 389, article 8, section 25, Laws <br/>
<a id="pl.40.14"></a><var>40.14</var>2003, First Special Session chapter 21, article 8, section 11, and Laws 2008, chapter <br/>
<a id="pl.40.15"></a><var>40.15</var>154, article 5, section 2, is amended to read:<br/>
<a id="pl.40.16"></a><var>40.16</var>    Subd. 2. (a) Notwithstanding Minnesota Statutes, section 
         <statute_ref>477A.016</statute_ref>, or any <br/>
<a id="pl.40.17"></a><var>40.17</var>other law, ordinance, or city charter provision to the contrary, the city of Duluth may, <br/>
<a id="pl.40.18"></a><var>40.18</var>by ordinance, impose an additional sales tax of up to two and one-quarter one and <br/>
<a id="pl.40.19"></a><var>40.19</var>three-quarter percent on sales transactions which are described in Minnesota Statutes 2000, <br/>
<a id="pl.40.20"></a><var>40.20</var>section 
         <statute_ref>297A.01</statute_ref>, subdivision 3, clause (c). When the city council determines that the taxes <br/>
<a id="pl.40.21"></a><var>40.21</var>imposed under this subdivision and under Laws 1998, chapter 389, article 8, section 26, at a <br/>
<a id="pl.40.22"></a><var>40.22</var>rate of one-half of one percent have produced revenue sufficient to pay (1) the debt service <br/>
<a id="pl.40.23"></a><var>40.23</var>on bonds in a principal amount of $8,000,000 issued for capital improvements to the <br/>
<a id="pl.40.24"></a><var>40.24</var>Duluth Entertainment and Convention Center, and (2) debt service on outstanding bonds <br/>
<a id="pl.40.25"></a><var>40.25</var>originally issued in the principal amount of $4,970,000 to finance capital improvements to <br/>
<a id="pl.40.26"></a><var>40.26</var>the Great Lakes Aquarium since the imposition of the taxes at the rate of one and one-half <br/>
<a id="pl.40.27"></a><var>40.27</var>percent, the rate of the tax under this subdivision is reduced by one-half of one percent.<br/>
<a id="pl.40.28"></a><var>40.28</var> The imposition of this tax shall not be subject to voter referendum under either state law <br/>
<a id="pl.40.29"></a><var>40.29</var>or city charter provisions. When the city council determines that the taxes imposed under <br/>
<a id="pl.40.30"></a><var>40.30</var>this subdivision paragraph at a rate of three-quarters of one percent and other sources of <br/>
<a id="pl.40.31"></a><var>40.31</var>revenue produce revenue sufficient to pay debt service on bonds in the principal amount <br/>
<a id="pl.40.32"></a><var>40.32</var>of $40,285,000 plus issuance and discount costs, issued for capital improvements at the <br/>
<a id="pl.40.33"></a><var>40.33</var>Duluth Entertainment and Convention Center, which include a new arena, the rate of tax <br/>
<a id="pl.40.34"></a><var>40.34</var>under this subdivision must be reduced by three-quarters of one percent.<br/>
<a id="pl.40.35"></a><var>40.35</var>(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes, <br/>
<a id="pl.40.36"></a><var>40.36</var>section 477A.016, or any other law, ordinance, or city charter provision to the contrary, <br/>
<a id="pl.40.37"></a><var>40.37</var>the city of Duluth may, by ordinance, impose an additional sales tax of up to one-half of <br/>
<a id="pl.41.1"></a><var>41.1</var>one percent on sales transactions which are described in Minnesota Statutes 2000, section <br/>
<a id="pl.41.2"></a><var>41.2</var>297A.01, subdivision 3, clause (c). This tax expires when the city council determines that <br/>
<a id="pl.41.3"></a><var>41.3</var>the tax imposed under this paragraph has produced revenues sufficient to pay the debt <br/>
<a id="pl.41.4"></a><var>41.4</var>service on bonds in a principal amount of no more than $18,000,000, plus issuance and <br/>
<a id="pl.41.5"></a><var>41.5</var>discount costs, to finance capital improvements to public facilities to support tourism and <br/>
<a id="pl.41.6"></a><var>41.6</var>recreational activities in that portion of the city west of 34th Avenue West.<br/>
<a id="pl.41.7"></a><var>41.7</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br/>
<a id="pl.41.8"></a><var>41.8</var>the city of Duluth and its chief clerical officer comply with Minnesota Statutes, section <br/>
<a id="pl.41.9"></a><var>41.9</var>645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.2.21.0"></a><a id="pl.41.10"></a><var>41.10</var>    Sec. 21. Laws 2005, First Special Session chapter 3, article 5, section 38, subdivision <br/>
<a id="pl.41.11"></a><var>41.11</var>4, is amended to read:<br/>
<a id="pl.41.12"></a><var>41.12</var>    Subd. 4. <b>Termination of taxes.</b> The taxes imposed under this section expire at the <br/>
<a id="pl.41.13"></a><var>41.13</var>earlier of (1) ten 15 years after the taxes are first imposed, or (2) when the city council first <br/>
<a id="pl.41.14"></a><var>41.14</var>determines that the amount of revenues raised to pay for the projects under subdivision 2, <br/>
<a id="pl.41.15"></a><var>41.15</var>shall meet or exceed the sum of $15,000,000. Any funds remaining after completion of <br/>
<a id="pl.41.16"></a><var>41.16</var>the projects may be placed in the general fund of the city.<br/>
<a id="pl.41.17"></a><var>41.17</var><b>EFFECTIVE DATE.</b>This section is effective the day after compliance by the <br/>
<a id="pl.41.18"></a><var>41.18</var>governing body of the city of Albert Lea and its chief clerical officer with Minnesota <br/>
<a id="pl.41.19"></a><var>41.19</var>Statutes, section 645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.2.22.0"></a><a id="pl.41.20"></a><var>41.20</var>    Sec. 22. Laws 2006, chapter 257, section 2, the effective date, as amended by Laws <br/>
<a id="pl.41.21"></a><var>41.21</var>2011, First Special Session chapter 7, article 3, section 17, is amended to read:<br/>
<a id="pl.41.22"></a><var>41.22</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases after June 30, <br/>
<a id="pl.41.23"></a><var>41.23</var>2006, and before July 1, 2015.<br/>
<a id="pl.41.24"></a><var>41.24</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.23.0"></a><a id="pl.41.25"></a><var>41.25</var>    Sec. 23. Laws 2013, chapter 143, article 8, section 22, the effective date, is amended to <br/>
<a id="pl.41.26"></a><var>41.26</var>read:<br/>
<a id="pl.41.27"></a><var>41.27</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.41.28"></a><var>41.28</var>June 30, 2013 retroactively for sales and purchases made after April 1, 2009. Purchasers <br/>
<a id="pl.41.29"></a><var>41.29</var>may apply for a refund of tax paid for qualifying purchases under this subdivision made <br/>
<a id="pl.41.30"></a><var>41.30</var>after April 1, 2009, and before July 1, 2013, in the manner provided in Minnesota Statutes, <br/>
<a id="pl.42.1"></a><var>42.1</var>section 297A.75. Notwithstanding limitations on claims for refunds under Minnesota <br/>
<a id="pl.42.2"></a><var>42.2</var>Statutes, section 289A.40, claims may be filed with the commissioner until June 30, 2015.<br/>
<a id="pl.42.3"></a><var>42.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.24.0"></a><a id="pl.42.4"></a><var>42.4</var>    Sec. 24. Laws 2013, chapter 143, article 8, section 23, the effective date, is amended to <br/>
<a id="pl.42.5"></a><var>42.5</var>read:<br/>
<a id="pl.42.6"></a><var>42.6</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.42.7"></a><var>42.7</var>June 30, 2013 retroactively for sales and purchases made after April 1, 2009. Purchasers <br/>
<a id="pl.42.8"></a><var>42.8</var>may apply for a refund of tax paid for qualifying purchases under this subdivision made <br/>
<a id="pl.42.9"></a><var>42.9</var>after April 1, 2009, and before July 1, 2013, in the manner provided in Minnesota Statutes, <br/>
<a id="pl.42.10"></a><var>42.10</var>section 297A.75. Notwithstanding limitations on claims for refunds under Minnesota <br/>
<a id="pl.42.11"></a><var>42.11</var>Statutes, section 289A.40, claims may be filed with the commissioner until June 30, 2015.<br/>
<a id="pl.42.12"></a><var>42.12</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.25.0"></a><a id="pl.42.13"></a><var>42.13</var>    Sec. 25. Laws 2013, chapter 143, article 8, section 27, the effective date, is amended to <br/>
<a id="pl.42.14"></a><var>42.14</var>read:<br/>
<a id="pl.42.15"></a><var>42.15</var><b>EFFECTIVE DATE.</b>For the purpose of qualifying under paragraphs (c) and (d), <br/>
<a id="pl.42.16"></a><var>42.16</var>this section is effective retroactively for sales and purchases made after June 30, 2013<br/>
<a id="pl.42.17"></a><var>42.17</var> 2012. For the purpose of determining eligibility for the exemptions provided in this <br/>
<a id="pl.42.18"></a><var>42.18</var>section, this section is effective for sales and purchases of computer software maintenance <br/>
<a id="pl.42.19"></a><var>42.19</var>agreements made after June 30, 2013, and for sales and purchases for either a "qualified <br/>
<a id="pl.42.20"></a><var>42.20</var>refurbished data center" or a "qualified data center" made after June 30, 2013, except that <br/>
<a id="pl.42.21"></a><var>42.21</var>if the data center qualifies as a "qualified data center" as defined in Laws 2011, First <br/>
<a id="pl.42.22"></a><var>42.22</var>Special Session chapter 7, article 3, section 7, then the exemptions provided in this section, <br/>
<a id="pl.42.23"></a><var>42.23</var>other than for computer software maintenance agreements, continue to be effective for <br/>
<a id="pl.42.24"></a><var>42.24</var>sales and purchases made after June 30, 2012.<br/>
<a id="pl.42.25"></a><var>42.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.26.0"></a><a id="pl.42.26"></a><var>42.26</var>    Sec. 26. Laws 2013, chapter 143, article 8, section 37, the effective date, is amended to <br/>
<a id="pl.42.27"></a><var>42.27</var>read:<br/>
<a id="pl.42.28"></a><var>42.28</var><b>EFFECTIVE DATE.</b>This section is effective retroactively to capital investments <br/>
<a id="pl.42.29"></a><var>42.29</var>made and jobs created after December 31, 2012, and effective retroactively for sales and <br/>
<a id="pl.43.1"></a><var>43.1</var>purchases made after December 31, 2012, and before July 1, 2019. Applications for <br/>
<a id="pl.43.2"></a><var>43.2</var>refunds on purchases exempt under this section must not be filed before June 30, 2015.<br/>
<a id="pl.43.3"></a><var>43.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.27.0"></a><a id="pl.43.4"></a><var>43.4</var>    Sec. 27. <b>CITY OF PROCTOR; LOCAL TAXES AUTHORIZED.</b><br/>
<a id="pl.43.5"></a><var>43.5</var>    Subdivision 1. <b>Food and beverage tax authorized.</b> Notwithstanding Minnesota <br/>
<a id="pl.43.6"></a><var>43.6</var>Statutes, section 297A.99 or 477A.016, or any ordinance, city charter, or other provision <br/>
<a id="pl.43.7"></a><var>43.7</var>of law, the city of Proctor may, by ordinance, impose a sales tax of up to one percent on <br/>
<a id="pl.43.8"></a><var>43.8</var>the gross receipts of all food and beverages sold by a restaurant or place of refreshment, <br/>
<a id="pl.43.9"></a><var>43.9</var>as defined by resolution of the city, that is located within the city. For purposes of this <br/>
<a id="pl.43.10"></a><var>43.10</var>section, "food and beverages" include retail on-sale of intoxicating liquor and fermented <br/>
<a id="pl.43.11"></a><var>43.11</var>malt beverages.<br/>
<a id="pl.43.12"></a><var>43.12</var>    Subd. 2. <b>Use of proceeds from authorized taxes.</b> The proceeds of the taxes <br/>
<a id="pl.43.13"></a><var>43.13</var>imposed under subdivisions 1 and 2 must be used by the city to fund: (1) construction and <br/>
<a id="pl.43.14"></a><var>43.14</var>improvement of walking and bicycle trails; (2) a multiuse civic center facility and parking <br/>
<a id="pl.43.15"></a><var>43.15</var>improvements; and (3) improvements related to the redevelopment and realignment of a <br/>
<a id="pl.43.16"></a><var>43.16</var>road through the fairgrounds property ceded to the city of Proctor by the city of Duluth.<br/>
<a id="pl.43.17"></a><var>43.17</var>    Subd. 3. <b>Collection, administration, and enforcement.</b> The city may enter into <br/>
<a id="pl.43.18"></a><var>43.18</var>an agreement with the commissioner of revenue to administer, collect, and enforce the <br/>
<a id="pl.43.19"></a><var>43.19</var>taxes under subdivision 1. If the commissioner agrees to collect the tax, the provisions <br/>
<a id="pl.43.20"></a><var>43.20</var>of Minnesota Statutes, section 297A.99, related to collection, administration, and <br/>
<a id="pl.43.21"></a><var>43.21</var>enforcement, and Minnesota Statutes, section 270C.171, apply.<br/>
<a id="pl.43.22"></a><var>43.22</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br/>
<a id="pl.43.23"></a><var>43.23</var>the city of Proctor and its chief clerical officer comply with Minnesota Statutes, section <br/>
<a id="pl.43.24"></a><var>43.24</var>645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.2.28.0"></a><a id="pl.43.25"></a><var>43.25</var>    Sec. 28. <b>VALIDATION OF PRIOR ACT; AUTHORIZATION.</b><br/>
<a id="pl.43.26"></a><var>43.26</var>Notwithstanding the time limits in Minnesota Statutes, section 645.021, the city of <br/>
<a id="pl.43.27"></a><var>43.27</var>Albert Lea may approve Laws 2005, First Special Session chapter 3, article 5, section 38, <br/>
<a id="pl.43.28"></a><var>43.28</var>as amended by Laws 2006, chapter 259, article 3, section 6, and file its approval with the <br/>
<a id="pl.43.29"></a><var>43.29</var>secretary of state by June 15, 2014. If approved as authorized under this section, actions <br/>
<a id="pl.43.30"></a><var>43.30</var>undertaken by the city pursuant to the approval of the voters on November 8, 2005, and <br/>
<a id="pl.43.31"></a><var>43.31</var>otherwise in accordance with Laws 2005, First Special Session chapter 3, article 5, section <br/>
<a id="pl.43.32"></a><var>43.32</var>38, as amended by Laws 2006, chapter 259, article 3, section 6, are validated.<br/>
<a id="pl.43.33"></a><var>43.33</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.29.0"></a><a id="pl.44.1"></a><var>44.1</var>    Sec. 29. <b>SALES TO INSTRUMENTALITIES OF THE STATES.</b><br/>
<a id="pl.44.2"></a><var>44.2</var>Sales of the following items to an organization defined by the Internal Revenue <br/>
<a id="pl.44.3"></a><var>44.3</var>Service as an instrumentality of each, and all, of the states relating to the holding of an <br/>
<a id="pl.44.4"></a><var>44.4</var>annual meeting in this state are exempt:<br/>
<a id="pl.44.5"></a><var>44.5</var>(1) prepared food, soft drinks, and candy, as defined in Minnesota Statutes, section <br/>
<a id="pl.44.6"></a><var>44.6</var>297A.61, subdivisions 31 to 33; and<br/>
<a id="pl.44.7"></a><var>44.7</var>(2) alcoholic beverages, as defined in Minnesota Statutes, section 297A.67, <br/>
<a id="pl.44.8"></a><var>44.8</var>subdivision 2.<br/>
<a id="pl.44.9"></a><var>44.9</var><b>EFFECTIVE DATE.</b>This section is applicable to sales and purchases made after <br/>
<a id="pl.44.10"></a><var>44.10</var>June 30, 2014, and before January 1, 2015.<br/>
<br/>
<a id="bill.3.0.0"></a>

<a id="bill.3.1.0"></a><a id="pl.44.13"></a><var>44.13</var>    Section 1. Minnesota Statutes 2012, section 116J.8737, subdivision 5, as amended by <br/>
<a id="pl.44.14"></a><var>44.14</var>Laws 2014, chapter 150, article 1, section 3, is amended to read:<br/>
<a id="pl.44.15"></a><var>44.15</var>    Subd. 5. <b>Credit allowed.</b> (a) (1) A qualified investor or qualified fund is eligible <br/>
<a id="pl.44.16"></a><var>44.16</var>for a credit equal to 25 percent of the qualified investment in a qualified small business. <br/>
<a id="pl.44.17"></a><var>44.17</var>Investments made by a pass-through entity qualify for a credit only if the entity is a <br/>
<a id="pl.44.18"></a><var>44.18</var>qualified fund. The commissioner must not allocate more than $15,000,000<br/>
<a id="pl.44.19"></a><var>44.19</var>$15,000,000 in credits to qualified investors or qualified funds for taxable years <br/>
<a id="pl.44.20"></a><var>44.20</var>beginning after December 31, 2013, and before January 1, 2017; and <br/>
<a id="pl.44.21"></a><var>44.21</var>(2) for taxable years beginning after December 31, 2014, and before January 1, <br/>
<a id="pl.44.22"></a><var>44.22</var>2017, $7,500,000 must be allocated to credits for qualifying investments in qualified <br/>
<a id="pl.44.23"></a><var>44.23</var>greater Minnesota businesses and minority- or women-owned qualified small businesses <br/>
<a id="pl.44.24"></a><var>44.24</var>in Minnesota. Any portion of a taxable year's credits that is reserved for qualifying <br/>
<a id="pl.44.25"></a><var>44.25</var>investments in greater Minnesota businesses and minority- or women-owned qualified <br/>
<a id="pl.44.26"></a><var>44.26</var>small businesses in Minnesota that is not allocated by September 30 of the taxable year is <br/>
<a id="pl.44.27"></a><var>44.27</var>available for allocation to other credit applications beginning on October 1. Any portion <br/>
<a id="pl.44.28"></a><var>44.28</var>of a taxable year's credits that is not allocated by the commissioner does not cancel and <br/>
<a id="pl.44.29"></a><var>44.29</var>may be carried forward to subsequent taxable years until all credits have been allocated.<br/>
<a id="pl.44.30"></a><var>44.30</var>(b) The commissioner may not allocate more than a total maximum amount in credits <br/>
<a id="pl.44.31"></a><var>44.31</var>for a taxable year to a qualified investor for the investor's cumulative qualified investments <br/>
<a id="pl.44.32"></a><var>44.32</var>as an individual qualified investor and as an investor in a qualified fund; for married <br/>
<a id="pl.44.33"></a><var>44.33</var>couples filing joint returns the maximum is $250,000, and for all other filers the maximum <br/>
<a id="pl.45.1"></a><var>45.1</var>is $125,000. The commissioner may not allocate more than a total of $1,000,000 in credits <br/>
<a id="pl.45.2"></a><var>45.2</var>over all taxable years for qualified investments in any one qualified small business.<br/>
<a id="pl.45.3"></a><var>45.3</var>(c) The commissioner may not allocate a credit to a qualified investor either as <br/>
<a id="pl.45.4"></a><var>45.4</var>an individual qualified investor or as an investor in a qualified fund if, at the time the <br/>
<a id="pl.45.5"></a><var>45.5</var>investment is proposed:<br/>
<a id="pl.45.6"></a><var>45.6</var>(1) the investor is an officer or principal of the qualified small business; or<br/>
<a id="pl.45.7"></a><var>45.7</var>(2) the investor, either individually or in combination with one or more members of <br/>
<a id="pl.45.8"></a><var>45.8</var>the investor's family, owns, controls, or holds the power to vote 20 percent or more of <br/>
<a id="pl.45.9"></a><var>45.9</var>the outstanding securities of the qualified small business. <br/>
<a id="pl.45.10"></a><var>45.10</var>A member of the family of an individual disqualified by this paragraph is not eligible for a <br/>
<a id="pl.45.11"></a><var>45.11</var>credit under this section. For a married couple filing a joint return, the limitations in this <br/>
<a id="pl.45.12"></a><var>45.12</var>paragraph apply collectively to the investor and spouse. For purposes of determining the <br/>
<a id="pl.45.13"></a><var>45.13</var>ownership interest of an investor under this paragraph, the rules under section 267(c) and <br/>
<a id="pl.45.14"></a><var>45.14</var>267(e) of the Internal Revenue Code apply.<br/>
<a id="pl.45.15"></a><var>45.15</var>(d) Applications for tax credits for 2010 must be made available on the department's <br/>
<a id="pl.45.16"></a><var>45.16</var>Web site by September 1, 2010, and the department must begin accepting applications <br/>
<a id="pl.45.17"></a><var>45.17</var>by September 1, 2010. Applications for subsequent years must be made available by <br/>
<a id="pl.45.18"></a><var>45.18</var>November 1 of the preceding year.<br/>
<a id="pl.45.19"></a><var>45.19</var>(e) Qualified investors and qualified funds must apply to the commissioner for tax <br/>
<a id="pl.45.20"></a><var>45.20</var>credits. Tax credits must be allocated to qualified investors or qualified funds in the order <br/>
<a id="pl.45.21"></a><var>45.21</var>that the tax credit request applications are filed with the department. The commissioner <br/>
<a id="pl.45.22"></a><var>45.22</var>must approve or reject tax credit request applications within 15 days of receiving the <br/>
<a id="pl.45.23"></a><var>45.23</var>application. The commissioner must allocate credits to approved applications if credits <br/>
<a id="pl.45.24"></a><var>45.24</var>remain available. The investment specified in the application must be made within 60 days <br/>
<a id="pl.45.25"></a><var>45.25</var>of the allocation of the credits. If the investment is not made within 60 days, the credit <br/>
<a id="pl.45.26"></a><var>45.26</var>allocation is canceled and available for reallocation. A qualified investor or qualified fund <br/>
<a id="pl.45.27"></a><var>45.27</var>that fails to invest as specified in the application, within 60 days of allocation of the <br/>
<a id="pl.45.28"></a><var>45.28</var>credits, must notify the commissioner of the failure to invest within five business days of <br/>
<a id="pl.45.29"></a><var>45.29</var>the expiration of the 60-day investment period. Credit applications that were approved but <br/>
<a id="pl.45.30"></a><var>45.30</var>that did not receive an allocation of credits at the time of approval because the aggregate <br/>
<a id="pl.45.31"></a><var>45.31</var>limit of credits for the year was exhausted remain eligible for allocation of credits if <br/>
<a id="pl.45.32"></a><var>45.32</var>additional credits become available due to cancellations under this paragraph or due to <br/>
<a id="pl.45.33"></a><var>45.33</var>termination of the time period for credits reserved for investment in qualified greater <br/>
<a id="pl.45.34"></a><var>45.34</var>Minnesota businesses and minority- and women-owned small businesses under paragraph <br/>
<a id="pl.45.35"></a><var>45.35</var>(a). Approved credit applications that do not receive credit allocations in the tax year must <br/>
<a id="pl.45.36"></a><var>45.36</var>be resubmitted to be eligible for credit allocations in the following tax year.<br/>
<a id="pl.46.1"></a><var>46.1</var>(f) All tax credit request applications filed with the department on the same day must <br/>
<a id="pl.46.2"></a><var>46.2</var>be treated as having been filed contemporaneously. If two or more qualified investors or <br/>
<a id="pl.46.3"></a><var>46.3</var>qualified funds file tax credit request applications on the same day, and the aggregate <br/>
<a id="pl.46.4"></a><var>46.4</var>amount of credit allocation claims exceeds the aggregate limit of credits under this section <br/>
<a id="pl.46.5"></a><var>46.5</var>or the lesser amount of credits that remain unallocated on that day, then the credits must <br/>
<a id="pl.46.6"></a><var>46.6</var>be allocated among the qualified investors or qualified funds who filed on that day on a <br/>
<a id="pl.46.7"></a><var>46.7</var>pro rata basis with respect to the amounts claimed. The pro rata allocation for any one <br/>
<a id="pl.46.8"></a><var>46.8</var>qualified investor or qualified fund is the product obtained by multiplying a fraction, <br/>
<a id="pl.46.9"></a><var>46.9</var>the numerator of which is the amount of the credit allocation claim filed on behalf of <br/>
<a id="pl.46.10"></a><var>46.10</var>a qualified investor and the denominator of which is the total of all credit allocation <br/>
<a id="pl.46.11"></a><var>46.11</var>claims filed on behalf of all applicants on that day, by the amount of credits that remain <br/>
<a id="pl.46.12"></a><var>46.12</var>unallocated on that day for the taxable year.<br/>
<a id="pl.46.13"></a><var>46.13</var>(g) A qualified investor or qualified fund, or a qualified small business acting on their <br/>
<a id="pl.46.14"></a><var>46.14</var>behalf, must notify the commissioner when an investment for which credits were allocated <br/>
<a id="pl.46.15"></a><var>46.15</var>has been made, and the taxable year in which the investment was made. A qualified fund <br/>
<a id="pl.46.16"></a><var>46.16</var>must also provide the commissioner with a statement indicating the amount invested by <br/>
<a id="pl.46.17"></a><var>46.17</var>each investor in the qualified fund based on each investor's share of the assets of the <br/>
<a id="pl.46.18"></a><var>46.18</var>qualified fund at the time of the qualified investment. After receiving notification that the <br/>
<a id="pl.46.19"></a><var>46.19</var>investment was made, the commissioner must issue credit certificates for the taxable year <br/>
<a id="pl.46.20"></a><var>46.20</var>in which the investment was made to the qualified investor or, for an investment made by <br/>
<a id="pl.46.21"></a><var>46.21</var>a qualified fund, to each qualified investor who is an investor in the fund. The certificate <br/>
<a id="pl.46.22"></a><var>46.22</var>must state that the credit is subject to revocation if the qualified investor or qualified <br/>
<a id="pl.46.23"></a><var>46.23</var>fund does not hold the investment in the qualified small business for at least three years, <br/>
<a id="pl.46.24"></a><var>46.24</var>consisting of the calendar year in which the investment was made and the two following <br/>
<a id="pl.46.25"></a><var>46.25</var>years. The three-year holding period does not apply if:<br/>
<a id="pl.46.26"></a><var>46.26</var>(1) the investment by the qualified investor or qualified fund becomes worthless <br/>
<a id="pl.46.27"></a><var>46.27</var>before the end of the three-year period;<br/>
<a id="pl.46.28"></a><var>46.28</var>(2) 80 percent or more of the assets of the qualified small business is sold before <br/>
<a id="pl.46.29"></a><var>46.29</var>the end of the three-year period;<br/>
<a id="pl.46.30"></a><var>46.30</var>(3) the qualified small business is sold before the end of the three-year period;<br/>
<a id="pl.46.31"></a><var>46.31</var>(4) the qualified small business's common stock begins trading on a public exchange <br/>
<a id="pl.46.32"></a><var>46.32</var>before the end of the three-year period; or<br/>
<a id="pl.46.33"></a><var>46.33</var>    (5) the qualified investor dies before the end of the three-year period.<br/>
<a id="pl.46.34"></a><var>46.34</var>(h) The commissioner must notify the commissioner of revenue of credit certificates <br/>
<a id="pl.46.35"></a><var>46.35</var>issued under this section.<br/>
<a id="pl.46.36"></a><var>46.36</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.2.0"></a><a id="pl.47.1"></a><var>47.1</var>    Sec. 2. Minnesota Statutes 2013 Supplement, section 136A.129, subdivision 1, is <br/>
<a id="pl.47.2"></a><var>47.2</var>amended to read:<br/>
<a id="pl.47.3"></a><var>47.3</var>    Subdivision 1. <b>Definitions.</b> (a) For the purposes of this section, the terms defined in <br/>
<a id="pl.47.4"></a><var>47.4</var>this subdivision have the meanings given to them.<br/>
<a id="pl.47.5"></a><var>47.5</var>(b) "Eligible employer" means a taxpayer under section 
         <statute_ref>290.01</statute_ref> with employees <br/>
<a id="pl.47.6"></a><var>47.6</var>located in greater Minnesota.<br/>
<a id="pl.47.7"></a><var>47.7</var>(c) "Eligible institution" means a Minnesota public postsecondary institution or <br/>
<a id="pl.47.8"></a><var>47.8</var>a Minnesota private, nonprofit, baccalaureate, or graduate degree-granting college or <br/>
<a id="pl.47.9"></a><var>47.9</var>university.<br/>
<a id="pl.47.10"></a><var>47.10</var>(d) "Eligible student" means a student enrolled in an eligible institution who has <br/>
<a id="pl.47.11"></a><var>47.11</var>completed one-half of the credits necessary for the respective degree or certification, <br/>
<a id="pl.47.12"></a><var>47.12</var>including a graduate degree.<br/>
<a id="pl.47.13"></a><var>47.13</var>(e) "Greater Minnesota" means the area of the state outside of the counties of Anoka, <br/>
<a id="pl.47.14"></a><var>47.14</var>Carver, Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, Washington, and <br/>
<a id="pl.47.15"></a><var>47.15</var>Wright.<br/>
<a id="pl.47.16"></a><var>47.16</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.3.0"></a><a id="pl.47.17"></a><var>47.17</var>    Sec. 3. Minnesota Statutes 2013 Supplement, section 136A.129, subdivision 3, is <br/>
<a id="pl.47.18"></a><var>47.18</var>amended to read:<br/>
<a id="pl.47.19"></a><var>47.19</var>    Subd. 3. <b>Program components.</b> (a) An intern must be an eligible student who has <br/>
<a id="pl.47.20"></a><var>47.20</var>been admitted to a major program that is related to the intern experience as determined <br/>
<a id="pl.47.21"></a><var>47.21</var>by the eligible institution.<br/>
<a id="pl.47.22"></a><var>47.22</var>(b) To participate in the program, an eligible institution must:<br/>
<a id="pl.47.23"></a><var>47.23</var>(1) enter into written agreements with eligible employers to provide internships that <br/>
<a id="pl.47.24"></a><var>47.24</var>are at least 12 eight weeks long and located in greater Minnesota;<br/>
<a id="pl.47.25"></a><var>47.25</var>(2) determine that the work experience of the internship is related to the eligible <br/>
<a id="pl.47.26"></a><var>47.26</var>student's course of study; and<br/>
<a id="pl.47.27"></a><var>47.27</var>(3) (2) provide academic credit for the successful completion of the internship or <br/>
<a id="pl.47.28"></a><var>47.28</var>ensure that it fulfills requirements necessary to complete a vocational technical education <br/>
<a id="pl.47.29"></a><var>47.29</var>program.<br/>
<a id="pl.47.30"></a><var>47.30</var>(c) To participate in the program, an eligible employer must enter into a written <br/>
<a id="pl.47.31"></a><var>47.31</var>agreement with an eligible institution specifying that the intern:<br/>
<a id="pl.47.32"></a><var>47.32</var>(1) would not have been hired without the tax credit described in subdivision 4;<br/>
<a id="pl.47.33"></a><var>47.33</var>(2) did not work for the employer in the same or a similar job prior to entering <br/>
<a id="pl.47.34"></a><var>47.34</var>the agreement;<br/>
<a id="pl.47.35"></a><var>47.35</var>(3) does not replace an existing employee;<br/>
<a id="pl.48.1"></a><var>48.1</var>(4) has not previously participated in the program;<br/>
<a id="pl.48.2"></a><var>48.2</var>(5) will be employed at a location in greater Minnesota;<br/>
<a id="pl.48.3"></a><var>48.3</var>(6) will be paid at least minimum wage for a minimum of 16 hours per week for a <br/>
<a id="pl.48.4"></a><var>48.4</var>period of at least 12 eight weeks; and<br/>
<a id="pl.48.5"></a><var>48.5</var>(7) will be supervised and evaluated by the employer.<br/>
<a id="pl.48.6"></a><var>48.6</var>(d) The written agreement between the eligible institution and the eligible employer <br/>
<a id="pl.48.7"></a><var>48.7</var>must certify a credit amount to the employer, not to exceed $2,000 per intern. The total <br/>
<a id="pl.48.8"></a><var>48.8</var>dollar amount of credits that an eligible institution certifies to eligible employers in a <br/>
<a id="pl.48.9"></a><var>48.9</var>calendar year may not exceed the amount of its allocation under subdivision 4.<br/>
<a id="pl.48.10"></a><var>48.10</var>(e) Participating eligible institutions and eligible employers must report annually to <br/>
<a id="pl.48.11"></a><var>48.11</var>the office. The report must include at least the following:<br/>
<a id="pl.48.12"></a><var>48.12</var>(1) the number of interns hired;<br/>
<a id="pl.48.13"></a><var>48.13</var>(2) the number of hours and weeks worked by interns; and<br/>
<a id="pl.48.14"></a><var>48.14</var>(3) the compensation paid to interns.<br/>
<a id="pl.48.15"></a><var>48.15</var>(f) An internship required to complete an academic program does not qualify for the <br/>
<a id="pl.48.16"></a><var>48.16</var>greater Minnesota internship program under this section.<br/>
<a id="pl.48.17"></a><var>48.17</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.4.0"></a><a id="pl.48.18"></a><var>48.18</var>    Sec. 4. Minnesota Statutes 2013 Supplement, section 136A.129, subdivision 5, is <br/>
<a id="pl.48.19"></a><var>48.19</var>amended to read:<br/>
<a id="pl.48.20"></a><var>48.20</var>    Subd. 5. <b>Reports to the legislature.</b> (a) By February 1, 2015 2016, the office <br/>
<a id="pl.48.21"></a><var>48.21</var>and the Department of Revenue shall report to the legislature on the greater Minnesota <br/>
<a id="pl.48.22"></a><var>48.22</var>internship program. The report must include at least the following:<br/>
<a id="pl.48.23"></a><var>48.23</var>(1) the number and dollar amount of credits allowed;<br/>
<a id="pl.48.24"></a><var>48.24</var>(2) the number of interns employed under the program; and<br/>
<a id="pl.48.25"></a><var>48.25</var>(3) the cost of administering the program.<br/>
<a id="pl.48.26"></a><var>48.26</var>(b) By February 1, 2016 2017, the office and the Department of Revenue shall <br/>
<a id="pl.48.27"></a><var>48.27</var>report to the legislature with an analysis of the effectiveness of the program in stimulating <br/>
<a id="pl.48.28"></a><var>48.28</var>businesses to hire interns and in assisting participating interns in finding permanent <br/>
<a id="pl.48.29"></a><var>48.29</var>career positions. This report must include the number of students who participated in the <br/>
<a id="pl.48.30"></a><var>48.30</var>program who were subsequently employed full-time by the employer.<br/>
<br/>
<a id="bill.3.5.0"></a><a id="pl.48.31"></a><var>48.31</var>    Sec. 5. Minnesota Statutes 2013 Supplement, section 270B.01, subdivision 8, is <br/>
<a id="pl.48.32"></a><var>48.32</var>amended to read:<br/>
<a id="pl.48.33"></a><var>48.33</var>    Subd. 8. <b>Minnesota tax laws.</b> For purposes of this chapter only, unless expressly <br/>
<a id="pl.48.34"></a><var>48.34</var>stated otherwise, "Minnesota tax laws" means:<br/>
<a id="pl.49.1"></a><var>49.1</var>    (1) the taxes, refunds, and fees administered by or paid to the commissioner under <br/>
<a id="pl.49.2"></a><var>49.2</var>chapters 115B, 289A (except taxes imposed under sections 
         <statute_ref>298.01</statute_ref>, 
         <statute_ref>298.015</statute_ref>, and 
         <statute_ref>298.24</statute_ref>), <br/>
<a id="pl.49.3"></a><var>49.3</var>290, 290A, 291, 292, 295, 297A, 297B, 297H, and 403, or any similar Indian tribal tax <br/>
<a id="pl.49.4"></a><var>49.4</var>administered by the commissioner pursuant to any tax agreement between the state and <br/>
<a id="pl.49.5"></a><var>49.5</var>the Indian tribal government, and includes any laws for the assessment, collection, and <br/>
<a id="pl.49.6"></a><var>49.6</var>enforcement of those taxes, refunds, and fees; and<br/>
<a id="pl.49.7"></a><var>49.7</var>    (2) section 
         <statute_ref>273.1315</statute_ref>.<br/>
<a id="pl.49.8"></a><var>49.8</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.6.0"></a><a id="pl.49.9"></a><var>49.9</var>    Sec. 6. Minnesota Statutes 2013 Supplement, section 270B.03, subdivision 1, is <br/>
<a id="pl.49.10"></a><var>49.10</var>amended to read:<br/>
<a id="pl.49.11"></a><var>49.11</var>    Subdivision 1. <b>Who may inspect.</b> Returns and return information must, on request, <br/>
<a id="pl.49.12"></a><var>49.12</var>be made open to inspection by or disclosure to the data subject. The request must be made <br/>
<a id="pl.49.13"></a><var>49.13</var>in writing or in accordance with written procedures of the chief disclosure officer of the <br/>
<a id="pl.49.14"></a><var>49.14</var>department that have been approved by the commissioner to establish the identification <br/>
<a id="pl.49.15"></a><var>49.15</var>of the person making the request as the data subject. For purposes of this chapter, the <br/>
<a id="pl.49.16"></a><var>49.16</var>following are the data subject:<br/>
<a id="pl.49.17"></a><var>49.17</var>(1) in the case of an individual return, that individual;<br/>
<a id="pl.49.18"></a><var>49.18</var>(2) in the case of an income tax return filed jointly, either of the individuals with <br/>
<a id="pl.49.19"></a><var>49.19</var>respect to whom the return is filed;<br/>
<a id="pl.49.20"></a><var>49.20</var>(3) in the case of a return filed by a business entity, an officer of a corporation, <br/>
<a id="pl.49.21"></a><var>49.21</var>a shareholder owning more than one percent of the stock, or any shareholder of an S <br/>
<a id="pl.49.22"></a><var>49.22</var>corporation; a general partner in a partnership; the owner of a sole proprietorship; a <br/>
<a id="pl.49.23"></a><var>49.23</var>member or manager of a limited liability company; a participant in a joint venture; the <br/>
<a id="pl.49.24"></a><var>49.24</var>individual who signed the return on behalf of the business entity; or an employee who is <br/>
<a id="pl.49.25"></a><var>49.25</var>responsible for handling the tax matters of the business entity, such as the tax manager, <br/>
<a id="pl.49.26"></a><var>49.26</var>bookkeeper, or managing agent;<br/>
<a id="pl.49.27"></a><var>49.27</var>(4) in the case of an estate return:<br/>
<a id="pl.49.28"></a><var>49.28</var>(i) the personal representative or trustee of the estate; and<br/>
<a id="pl.49.29"></a><var>49.29</var>(ii) any beneficiary of the estate as shown on the federal estate tax return;<br/>
<a id="pl.49.30"></a><var>49.30</var>(5) in the case of a trust return:<br/>
<a id="pl.49.31"></a><var>49.31</var>(i) the trustee or trustees, jointly or separately; and<br/>
<a id="pl.49.32"></a><var>49.32</var>(ii) any beneficiary of the trust as shown in the trust instrument;<br/>
<a id="pl.49.33"></a><var>49.33</var>(6) if liability has been assessed to a transferee under section 
         <statute_ref>270C.58, subdivision <br/>
<a id="pl.49.34"></a><var>49.34</var>1
         </statute_ref>, the transferee is the data subject with regard to the returns and return information <br/>
<a id="pl.49.35"></a><var>49.35</var>relating to the assessed liability;<br/>
<a id="pl.50.1"></a><var>50.1</var>(7) in the case of an Indian tribal government or an Indian tribal government-owned <br/>
<a id="pl.50.2"></a><var>50.2</var>entity,<br/>
<a id="pl.50.3"></a><var>50.3</var>(i) the chair of the tribal government, or<br/>
<a id="pl.50.4"></a><var>50.4</var>(ii) any person authorized by the tribal government; and<br/>
<a id="pl.50.5"></a><var>50.5</var>(8) in the case of a successor as defined in section 
         <statute_ref>270C.57, subdivision 1</statute_ref>, paragraph <br/>
<a id="pl.50.6"></a><var>50.6</var>(b), the successor is the data subject and information may be disclosed as provided by <br/>
<a id="pl.50.7"></a><var>50.7</var>section 
         <statute_ref>270C.57, subdivision 4</statute_ref>; and.<br/>
<a id="pl.50.8"></a><var>50.8</var>(9) in the case of a gift return, the donor.<br/>
<a id="pl.50.9"></a><var>50.9</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.7.0"></a><a id="pl.50.10"></a><var>50.10</var>    Sec. 7. Minnesota Statutes 2012, section 289A.02, subdivision 7, as amended by Laws <br/>
<a id="pl.50.11"></a><var>50.11</var>2014, chapter 150, article 1, section 7, is amended to read:<br/>
<a id="pl.50.12"></a><var>50.12</var>    Subd. 7. <b>Internal Revenue Code.</b> Unless specifically defined otherwise, "Internal <br/>
<a id="pl.50.13"></a><var>50.13</var>Revenue Code" means the Internal Revenue Code of 1986, as amended through December <br/>
<a id="pl.50.14"></a><var>50.14</var>20, 2013 March 26, 2014.<br/>
<a id="pl.50.15"></a><var>50.15</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for taxable years <br/>
<a id="pl.50.16"></a><var>50.16</var>beginning after December 31, 2012.<br/>
<br/>
<a id="bill.3.8.0"></a><a id="pl.50.17"></a><var>50.17</var>    Sec. 8. Minnesota Statutes 2012, section 290.01, subdivision 7, is amended to read:<br/>
<a id="pl.50.18"></a><var>50.18</var>    Subd. 7. <b>Resident.</b> (a) The term "resident" means any individual domiciled <br/>
<a id="pl.50.19"></a><var>50.19</var>in Minnesota, except that an individual is not a "resident" for the period of time that <br/>
<a id="pl.50.20"></a><var>50.20</var>the individual is a "qualified individual" as defined in section 911(d)(1) of the Internal <br/>
<a id="pl.50.21"></a><var>50.21</var>Revenue Code, if the qualified individual notifies the county within three months of <br/>
<a id="pl.50.22"></a><var>50.22</var>moving out of the country that homestead status be revoked for the Minnesota residence <br/>
<a id="pl.50.23"></a><var>50.23</var>of the qualified individual, and the property is not classified as a homestead while the <br/>
<a id="pl.50.24"></a><var>50.24</var>individual remains a qualified individual.<br/>
<a id="pl.50.25"></a><var>50.25</var>(b) "Resident" also means any individual domiciled outside the state who maintains <br/>
<a id="pl.50.26"></a><var>50.26</var>a place of abode in the state and spends in the aggregate more than one-half of the tax <br/>
<a id="pl.50.27"></a><var>50.27</var>year in Minnesota, unless:<br/>
<a id="pl.50.28"></a><var>50.28</var>(1) the individual or the spouse of the individual is in the armed forces of the United <br/>
<a id="pl.50.29"></a><var>50.29</var>States; or<br/>
<a id="pl.50.30"></a><var>50.30</var>(2) the individual is covered under the reciprocity provisions in section 
         <statute_ref>290.081</statute_ref>.<br/>
<a id="pl.50.31"></a><var>50.31</var>For purposes of this subdivision, presence within the state for any part of a calendar <br/>
<a id="pl.50.32"></a><var>50.32</var>day constitutes a day spent in the state. Individuals shall keep adequate records to <br/>
<a id="pl.50.33"></a><var>50.33</var>substantiate the days spent outside the state.<br/>
<a id="pl.51.1"></a><var>51.1</var>The term "abode" means a dwelling maintained by an individual, whether or not <br/>
<a id="pl.51.2"></a><var>51.2</var>owned by the individual and whether or not occupied by the individual, and includes a <br/>
<a id="pl.51.3"></a><var>51.3</var>dwelling place owned or leased by the individual's spouse.<br/>
<a id="pl.51.4"></a><var>51.4</var>(c) In determining if an individual is domiciled in Minnesota, neither the <br/>
<a id="pl.51.5"></a><var>51.5</var>commissioner nor any court shall consider:<br/>
<a id="pl.51.6"></a><var>51.6</var>(1) charitable contributions made by an the individual within or without the state in <br/>
<a id="pl.51.7"></a><var>51.7</var>determining if the individual is domiciled in Minnesota; or<br/>
<a id="pl.51.8"></a><var>51.8</var>(2) the location of the individual's attorneys, certified public accountants, or financial <br/>
<a id="pl.51.9"></a><var>51.9</var>advisors within or without the state.<br/>
<a id="pl.51.10"></a><var>51.10</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.9.0"></a><a id="pl.51.11"></a><var>51.11</var>    Sec. 9. Minnesota Statutes 2013 Supplement, section 290.01, subdivision 19, as <br/>
<a id="pl.51.12"></a><var>51.12</var>amended by Laws 2014, chapter 150, article 1, section 9, is amended to read:<br/>
<a id="pl.51.13"></a><var>51.13</var>    Subd. 19. <b>Net income.</b> The term "net income" means the federal taxable income, <br/>
<a id="pl.51.14"></a><var>51.14</var>as defined in section 63 of the Internal Revenue Code of 1986, as amended through the <br/>
<a id="pl.51.15"></a><var>51.15</var>date named in this subdivision, incorporating the federal effective dates of changes to the <br/>
<a id="pl.51.16"></a><var>51.16</var>Internal Revenue Code and any elections made by the taxpayer in accordance with the <br/>
<a id="pl.51.17"></a><var>51.17</var>Internal Revenue Code in determining federal taxable income for federal income tax <br/>
<a id="pl.51.18"></a><var>51.18</var>purposes, and with the modifications provided in subdivisions 19a to 19f.<br/>
<a id="pl.51.19"></a><var>51.19</var>    In the case of a regulated investment company or a fund thereof, as defined in section <br/>
<a id="pl.51.20"></a><var>51.20</var>851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment <br/>
<a id="pl.51.21"></a><var>51.21</var>company taxable income as defined in section 852(b)(2) of the Internal Revenue Code, <br/>
<a id="pl.51.22"></a><var>51.22</var>except that:<br/>
<a id="pl.51.23"></a><var>51.23</var>    (1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal <br/>
<a id="pl.51.24"></a><var>51.24</var>Revenue Code does not apply;<br/>
<a id="pl.51.25"></a><var>51.25</var>    (2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal <br/>
<a id="pl.51.26"></a><var>51.26</var>Revenue Code must be applied by allowing a deduction for capital gain dividends and <br/>
<a id="pl.51.27"></a><var>51.27</var>exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal <br/>
<a id="pl.51.28"></a><var>51.28</var>Revenue Code; and<br/>
<a id="pl.51.29"></a><var>51.29</var>    (3) the deduction for dividends paid must also be applied in the amount of any <br/>
<a id="pl.51.30"></a><var>51.30</var>undistributed capital gains which the regulated investment company elects to have treated <br/>
<a id="pl.51.31"></a><var>51.31</var>as provided in section 852(b)(3)(D) of the Internal Revenue Code.<br/>
<a id="pl.51.32"></a><var>51.32</var>    The net income of a real estate investment trust as defined and limited by section <br/>
<a id="pl.51.33"></a><var>51.33</var>856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust <br/>
<a id="pl.51.34"></a><var>51.34</var>taxable income as defined in section 857(b)(2) of the Internal Revenue Code.<br/>
<a id="pl.52.1"></a><var>52.1</var>    The net income of a designated settlement fund as defined in section 468B(d) of <br/>
<a id="pl.52.2"></a><var>52.2</var>the Internal Revenue Code means the gross income as defined in section 468B(b) of the <br/>
<a id="pl.52.3"></a><var>52.3</var>Internal Revenue Code.<br/>
<a id="pl.52.4"></a><var>52.4</var>    The Internal Revenue Code of 1986, as amended through December 20, 2013 March <br/>
<a id="pl.52.5"></a><var>52.5</var>26, 2014, shall be in effect for taxable years beginning after December 31, 1996.<br/>
<a id="pl.52.6"></a><var>52.6</var>    Except as otherwise provided, references to the Internal Revenue Code in <br/>
<a id="pl.52.7"></a><var>52.7</var>subdivisions 19 to 19f mean the code in effect for purposes of determining net income for <br/>
<a id="pl.52.8"></a><var>52.8</var>the applicable year.<br/>
<a id="pl.52.9"></a><var>52.9</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment, <br/>
<a id="pl.52.10"></a><var>52.10</var>except the changes incorporated by federal changes are effective retroactively at the same <br/>
<a id="pl.52.11"></a><var>52.11</var>time as the changes were effective for federal purposes.<br/>
<br/>
<a id="bill.3.10.0"></a><a id="pl.52.12"></a><var>52.12</var>    Sec. 10. Minnesota Statutes 2013 Supplement, section 290.01, subdivision 19b, as <br/>
<a id="pl.52.13"></a><var>52.13</var>amended by Laws 2014, chapter 150, article 1, section 11, is amended to read:<br/>
<a id="pl.52.14"></a><var>52.14</var>    Subd. 19b. <b>Subtractions from federal taxable income.</b> For individuals, estates, <br/>
<a id="pl.52.15"></a><var>52.15</var>and trusts, there shall be subtracted from federal taxable income:<br/>
<a id="pl.52.16"></a><var>52.16</var>    (1) net interest income on obligations of any authority, commission, or <br/>
<a id="pl.52.17"></a><var>52.17</var>instrumentality of the United States to the extent includable in taxable income for federal <br/>
<a id="pl.52.18"></a><var>52.18</var>income tax purposes but exempt from state income tax under the laws of the United States;<br/>
<a id="pl.52.19"></a><var>52.19</var>    (2) if included in federal taxable income, the amount of any overpayment of income <br/>
<a id="pl.52.20"></a><var>52.20</var>tax to Minnesota or to any other state, for any previous taxable year, whether the amount <br/>
<a id="pl.52.21"></a><var>52.21</var>is received as a refund or as a credit to another taxable year's income tax liability;<br/>
<a id="pl.52.22"></a><var>52.22</var>    (3) the amount paid to others, less the amount used to claim the credit allowed under <br/>
<a id="pl.52.23"></a><var>52.23</var>section 
         <statute_ref>290.0674</statute_ref>, not to exceed $1,625 for each qualifying child in grades kindergarten <br/>
<a id="pl.52.24"></a><var>52.24</var>to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and <br/>
<a id="pl.52.25"></a><var>52.25</var>transportation of each qualifying child in attending an elementary or secondary school <br/>
<a id="pl.52.26"></a><var>52.26</var>situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a <br/>
<a id="pl.52.27"></a><var>52.27</var>resident of this state may legally fulfill the state's compulsory attendance laws, which <br/>
<a id="pl.52.28"></a><var>52.28</var>is not operated for profit, and which adheres to the provisions of the Civil Rights Act <br/>
<a id="pl.52.29"></a><var>52.29</var>of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or <br/>
<a id="pl.52.30"></a><var>52.30</var>tuition as defined in section 
         <statute_ref>290.0674, subdivision 1</statute_ref>, clause (1). As used in this clause, <br/>
<a id="pl.52.31"></a><var>52.31</var>"textbooks" includes books and other instructional materials and equipment purchased <br/>
<a id="pl.52.32"></a><var>52.32</var>or leased for use in elementary and secondary schools in teaching only those subjects <br/>
<a id="pl.52.33"></a><var>52.33</var>legally and commonly taught in public elementary and secondary schools in this state. <br/>
<a id="pl.52.34"></a><var>52.34</var>Equipment expenses qualifying for deduction includes expenses as defined and limited in <br/>
<a id="pl.52.35"></a><var>52.35</var>section 
         <statute_ref>290.0674, subdivision 1</statute_ref>, clause (3). "Textbooks" does not include instructional <br/>
<a id="pl.53.1"></a><var>53.1</var>books and materials used in the teaching of religious tenets, doctrines, or worship, the <br/>
<a id="pl.53.2"></a><var>53.2</var>purpose of which is to instill such tenets, doctrines, or worship, nor does it include books <br/>
<a id="pl.53.3"></a><var>53.3</var>or materials for, or transportation to, extracurricular activities including sporting events, <br/>
<a id="pl.53.4"></a><var>53.4</var>musical or dramatic events, speech activities, driver's education, or similar programs. No <br/>
<a id="pl.53.5"></a><var>53.5</var>deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or <br/>
<a id="pl.53.6"></a><var>53.6</var>the qualifying child's vehicle to provide such transportation for a qualifying child. For <br/>
<a id="pl.53.7"></a><var>53.7</var>purposes of the subtraction provided by this clause, "qualifying child" has the meaning <br/>
<a id="pl.53.8"></a><var>53.8</var>given in section 32(c)(3) of the Internal Revenue Code;<br/>
<a id="pl.53.9"></a><var>53.9</var>    (4) income as provided under section 
         <statute_ref>290.0802</statute_ref>;<br/>
<a id="pl.53.10"></a><var>53.10</var>    (5) to the extent included in federal adjusted gross income, income realized on <br/>
<a id="pl.53.11"></a><var>53.11</var>disposition of property exempt from tax under section 
         <statute_ref>290.491</statute_ref>;<br/>
<a id="pl.53.12"></a><var>53.12</var>    (6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E) <br/>
<a id="pl.53.13"></a><var>53.13</var>of the Internal Revenue Code in determining federal taxable income by an individual <br/>
<a id="pl.53.14"></a><var>53.14</var>who does not itemize deductions for federal income tax purposes for the taxable year, an <br/>
<a id="pl.53.15"></a><var>53.15</var>amount equal to 50 percent of the excess of charitable contributions over $500 allowable <br/>
<a id="pl.53.16"></a><var>53.16</var>as a deduction for the taxable year under section 170(a) of the Internal Revenue Code, <br/>
<a id="pl.53.17"></a><var>53.17</var>under the provisions of Public Law 109-1 and Public Law 111-126;<br/>
<a id="pl.53.18"></a><var>53.18</var>    (7) for individuals who are allowed a federal foreign tax credit for taxes that do not <br/>
<a id="pl.53.19"></a><var>53.19</var>qualify for a credit under section 
         <statute_ref>290.06, subdivision 22</statute_ref>, an amount equal to the carryover <br/>
<a id="pl.53.20"></a><var>53.20</var>of subnational foreign taxes for the taxable year, but not to exceed the total subnational <br/>
<a id="pl.53.21"></a><var>53.21</var>foreign taxes reported in claiming the foreign tax credit. For purposes of this clause, <br/>
<a id="pl.53.22"></a><var>53.22</var>"federal foreign tax credit" means the credit allowed under section 27 of the Internal <br/>
<a id="pl.53.23"></a><var>53.23</var>Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed <br/>
<a id="pl.53.24"></a><var>53.24</var>under section 904(c) of the Internal Revenue Code minus national level foreign taxes to <br/>
<a id="pl.53.25"></a><var>53.25</var>the extent they exceed the federal foreign tax credit;<br/>
<a id="pl.53.26"></a><var>53.26</var>    (8) in each of the five tax years immediately following the tax year in which an <br/>
<a id="pl.53.27"></a><var>53.27</var>addition is required under subdivision 19a, clause (7), or 19c, clause (12), in the case of a <br/>
<a id="pl.53.28"></a><var>53.28</var>shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the <br/>
<a id="pl.53.29"></a><var>53.29</var>delayed depreciation. For purposes of this clause, "delayed depreciation" means the amount <br/>
<a id="pl.53.30"></a><var>53.30</var>of the addition made by the taxpayer under subdivision 19a, clause (7), or subdivision 19c, <br/>
<a id="pl.53.31"></a><var>53.31</var>clause (12), in the case of a shareholder of an S corporation, minus the positive value of <br/>
<a id="pl.53.32"></a><var>53.32</var>any net operating loss under section 172 of the Internal Revenue Code generated for the <br/>
<a id="pl.53.33"></a><var>53.33</var>tax year of the addition. The resulting delayed depreciation cannot be less than zero;<br/>
<a id="pl.53.34"></a><var>53.34</var>    (9) job opportunity building zone income as provided under section 
         <statute_ref>469.316</statute_ref>;<br/>
<a id="pl.53.35"></a><var>53.35</var>    (10) to the extent included in federal taxable income, the amount of compensation <br/>
<a id="pl.53.36"></a><var>53.36</var>paid to members of the Minnesota National Guard or other reserve components of the <br/>
<a id="pl.54.1"></a><var>54.1</var>United States military for active service, excluding compensation for services performed <br/>
<a id="pl.54.2"></a><var>54.2</var>under the Active Guard Reserve (AGR) program. For purposes of this clause, "active <br/>
<a id="pl.54.3"></a><var>54.3</var>service" means (i) state active service as defined in section 
         <statute_ref>190.05, subdivision 5a</statute_ref>, clause <br/>
<a id="pl.54.4"></a><var>54.4</var>(1); or (ii) federally funded state active service as defined in section 
         <statute_ref>190.05, subdivision <br/>
<a id="pl.54.5"></a><var>54.5</var>5b
         </statute_ref>, but "active service" excludes service performed in accordance with section 
         <statute_ref>190.08, <br/>
<a id="pl.54.6"></a><var>54.6</var>subdivision 3
         </statute_ref>;<br/>
<a id="pl.54.7"></a><var>54.7</var>    (11) to the extent included in federal taxable income, the amount of compensation <br/>
<a id="pl.54.8"></a><var>54.8</var>paid to Minnesota residents who are members of the armed forces of the United States <br/>
<a id="pl.54.9"></a><var>54.9</var>or United Nations for active duty performed under United States Code, title 10; or the <br/>
<a id="pl.54.10"></a><var>54.10</var>authority of the United Nations;<br/>
<a id="pl.54.11"></a><var>54.11</var>    (12) an amount, not to exceed $10,000, equal to qualified expenses related to a <br/>
<a id="pl.54.12"></a><var>54.12</var>qualified donor's donation, while living, of one or more of the qualified donor's organs <br/>
<a id="pl.54.13"></a><var>54.13</var>to another person for human organ transplantation. For purposes of this clause, "organ" <br/>
<a id="pl.54.14"></a><var>54.14</var>means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow; <br/>
<a id="pl.54.15"></a><var>54.15</var>"human organ transplantation" means the medical procedure by which transfer of a human <br/>
<a id="pl.54.16"></a><var>54.16</var>organ is made from the body of one person to the body of another person; "qualified <br/>
<a id="pl.54.17"></a><var>54.17</var>expenses" means unreimbursed expenses for both the individual and the qualified donor <br/>
<a id="pl.54.18"></a><var>54.18</var>for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses <br/>
<a id="pl.54.19"></a><var>54.19</var>may be subtracted under this clause only once; and "qualified donor" means the individual <br/>
<a id="pl.54.20"></a><var>54.20</var>or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An <br/>
<a id="pl.54.21"></a><var>54.21</var>individual may claim the subtraction in this clause for each instance of organ donation for <br/>
<a id="pl.54.22"></a><var>54.22</var>transplantation during the taxable year in which the qualified expenses occur;<br/>
<a id="pl.54.23"></a><var>54.23</var>    (13) in each of the five tax years immediately following the tax year in which an <br/>
<a id="pl.54.24"></a><var>54.24</var>addition is required under subdivision 19a, clause (8), or 19c, clause (13), in the case of a <br/>
<a id="pl.54.25"></a><var>54.25</var>shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the <br/>
<a id="pl.54.26"></a><var>54.26</var>addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (13), in the <br/>
<a id="pl.54.27"></a><var>54.27</var>case of a shareholder of a corporation that is an S corporation, minus the positive value of <br/>
<a id="pl.54.28"></a><var>54.28</var>any net operating loss under section 172 of the Internal Revenue Code generated for the <br/>
<a id="pl.54.29"></a><var>54.29</var>tax year of the addition. If the net operating loss exceeds the addition for the tax year, a <br/>
<a id="pl.54.30"></a><var>54.30</var>subtraction is not allowed under this clause;<br/>
<a id="pl.54.31"></a><var>54.31</var>    (14) to the extent included in the federal taxable income of a nonresident of <br/>
<a id="pl.54.32"></a><var>54.32</var>Minnesota, compensation paid to a service member as defined in United States Code, title <br/>
<a id="pl.54.33"></a><var>54.33</var>10, section 101(a)(5), for military service as defined in the Servicemembers Civil Relief <br/>
<a id="pl.54.34"></a><var>54.34</var>Act, Public Law 108-189, section 101(2);<br/>
<a id="pl.54.35"></a><var>54.35</var>    (15) to the extent included in federal taxable income, the amount of national service <br/>
<a id="pl.54.36"></a><var>54.36</var>educational awards received from the National Service Trust under United States Code, <br/>
<a id="pl.55.1"></a><var>55.1</var>title 42, sections 12601 to 12604, for service in an approved Americorps National Service <br/>
<a id="pl.55.2"></a><var>55.2</var>program;<br/>
<a id="pl.55.3"></a><var>55.3</var>(16) to the extent included in federal taxable income, discharge of indebtedness <br/>
<a id="pl.55.4"></a><var>55.4</var>income resulting from reacquisition of business indebtedness included in federal taxable <br/>
<a id="pl.55.5"></a><var>55.5</var>income under section 108(i) of the Internal Revenue Code. This subtraction applies only <br/>
<a id="pl.55.6"></a><var>55.6</var>to the extent that the income was included in net income in a prior year as a result of the <br/>
<a id="pl.55.7"></a><var>55.7</var>addition under section 
         <statute_ref>290.01, subdivision 19a</statute_ref>, clause (13);<br/>
<a id="pl.55.8"></a><var>55.8</var>(17) the amount of the net operating loss allowed under section 
         <statute_ref>290.095, subdivision <br/>
<a id="pl.55.9"></a><var>55.9</var>11
         </statute_ref>, paragraph (c); <br/>
<a id="pl.55.10"></a><var>55.10</var>(18) the amount of expenses not allowed for federal income tax purposes due <br/>
<a id="pl.55.11"></a><var>55.11</var>to claiming the railroad track maintenance credit under section 45G(a) of the Internal <br/>
<a id="pl.55.12"></a><var>55.12</var>Revenue Code;<br/>
<a id="pl.55.13"></a><var>55.13</var>(19) the amount of the limitation on itemized deductions under section 68(b) of <br/>
<a id="pl.55.14"></a><var>55.14</var>the Internal Revenue Code; and<br/>
<a id="pl.55.15"></a><var>55.15</var>(20) the amount of the phaseout of personal exemptions under section 151(d) of the <br/>
<a id="pl.55.16"></a><var>55.16</var>Internal Revenue Code.;<br/>
<a id="pl.55.17"></a><var>55.17</var>(21) to extent included in federal taxable income, the amount of qualified <br/>
<a id="pl.55.18"></a><var>55.18</var>transportation fringe benefits described in section 132(f)(1)(A) and (B) of the Internal <br/>
<a id="pl.55.19"></a><var>55.19</var>Revenue Code. The subtraction is limited to the lesser of the amount of qualified <br/>
<a id="pl.55.20"></a><var>55.20</var>transportation fringe benefits received in excess of the limitations under section <br/>
<a id="pl.55.21"></a><var>55.21</var>132(f)(2)(A) of the Internal Revenue Code for the year or the difference between the <br/>
<a id="pl.55.22"></a><var>55.22</var>maximum qualified parking benefits excludable under section 132(f)(2)(B) of the Internal <br/>
<a id="pl.55.23"></a><var>55.23</var>Revenue Code minus the amount of transit benefits excludable under section 132(f)(2)(A) <br/>
<a id="pl.55.24"></a><var>55.24</var>of the Internal Revenue Code; and<br/>
<a id="pl.55.25"></a><var>55.25</var>(22) for taxable years beginning after December 31, 2013, and before January 1, <br/>
<a id="pl.55.26"></a><var>55.26</var>2015, to the extent included in federal taxable income, discharge of qualified principal <br/>
<a id="pl.55.27"></a><var>55.27</var>residence indebtedness, as provided in subparagraph (E) of section 108(a)(1) of the <br/>
<a id="pl.55.28"></a><var>55.28</var>Internal Revenue Code, without regard to whether subparagraph (E) of section 108(a)(1) <br/>
<a id="pl.55.29"></a><var>55.29</var>of the Internal Revenue Code is in effect for the taxable year.<br/>
<a id="pl.55.30"></a><var>55.30</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.55.31"></a><var>55.31</var>December 31, 2013.<br/>
<br/>
<a id="bill.3.11.0"></a><a id="pl.55.32"></a><var>55.32</var>    Sec. 11. Minnesota Statutes 2013 Supplement, section 290.01, subdivision 31, as <br/>
<a id="pl.55.33"></a><var>55.33</var>amended by Laws 2014, chapter 150, article 1, section 13, is amended to read:<br/>
<a id="pl.55.34"></a><var>55.34</var>    Subd. 31. <b>Internal Revenue Code.</b> Unless specifically defined otherwise, "Internal <br/>
<a id="pl.55.35"></a><var>55.35</var>Revenue Code" means the Internal Revenue Code of 1986, as amended through December <br/>
<a id="pl.56.1"></a><var>56.1</var>20, 2013 March 26, 2014. Internal Revenue Code also includes any uncodified provision <br/>
<a id="pl.56.2"></a><var>56.2</var>in federal law that relates to provisions of the Internal Revenue Code that are incorporated <br/>
<a id="pl.56.3"></a><var>56.3</var>into Minnesota law. When used in this chapter, the reference to "subtitle A, chapter 1, <br/>
<a id="pl.56.4"></a><var>56.4</var>subchapter N, part 1, of the Internal Revenue Code" is to the Internal Revenue Code as <br/>
<a id="pl.56.5"></a><var>56.5</var>amended through March 18, 2010.<br/>
<a id="pl.56.6"></a><var>56.6</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment, <br/>
<a id="pl.56.7"></a><var>56.7</var>except the changes incorporated by federal changes are effective retroactively at the same <br/>
<a id="pl.56.8"></a><var>56.8</var>time as the changes were effective for federal purposes.<br/>
<br/>
<a id="bill.3.12.0"></a><a id="pl.56.9"></a><var>56.9</var>    Sec. 12. Minnesota Statutes 2012, section 290.0677, subdivision 1, is amended to read:<br/>
<a id="pl.56.10"></a><var>56.10</var>    Subdivision 1. <b>Credit allowed; current military service. </b> (a) An individual is <br/>
<a id="pl.56.11"></a><var>56.11</var>allowed a credit against the tax due under this chapter equal to $59 for each month or <br/>
<a id="pl.56.12"></a><var>56.12</var>portion thereof that the individual was in active military service in a designated area after <br/>
<a id="pl.56.13"></a><var>56.13</var>September 11, 2001, and before January 1, 2009, while a Minnesota domiciliary.<br/>
<a id="pl.56.14"></a><var>56.14</var>    (b) An individual is allowed a credit against the tax due under this chapter equal to <br/>
<a id="pl.56.15"></a><var>56.15</var>$120 for each month or portion thereof that the individual was in active military service in <br/>
<a id="pl.56.16"></a><var>56.16</var>a designated area after December 31, 2008, while a Minnesota domiciliary.<br/>
<a id="pl.56.17"></a><var>56.17</var>(c) An individual is allowed a credit against the tax due under this chapter equal to <br/>
<a id="pl.56.18"></a><var>56.18</var>$200 for each month or portion thereof that the individual was in active military service in <br/>
<a id="pl.56.19"></a><var>56.19</var>a designated area after December 31, 2013, while a Minnesota domiciliary.<br/>
<a id="pl.56.20"></a><var>56.20</var>    (c) (d) For active service performed after September 11, 2001, and before December <br/>
<a id="pl.56.21"></a><var>56.21</var>31, 2006, the individual may claim the credit in the taxable year beginning after December <br/>
<a id="pl.56.22"></a><var>56.22</var>31, 2005, and before January 1, 2007.<br/>
<a id="pl.56.23"></a><var>56.23</var>    (d) (e) For active service performed after December 31, 2006, the individual may <br/>
<a id="pl.56.24"></a><var>56.24</var>claim the credit for the taxable year in which the active service was performed.<br/>
<a id="pl.56.25"></a><var>56.25</var>    (e) (f) If an individual entitled to the credit died prior to January 1, 2006, the <br/>
<a id="pl.56.26"></a><var>56.26</var>individual's estate or heirs at law, if the individual's probate estate has closed or the estate <br/>
<a id="pl.56.27"></a><var>56.27</var>was not probated, may claim the credit.<br/>
<a id="pl.56.28"></a><var>56.28</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.56.29"></a><var>56.29</var>December 31, 2013.<br/>
<br/>
<a id="bill.3.13.0"></a><a id="pl.56.30"></a><var>56.30</var>    Sec. 13. Minnesota Statutes 2012, section 290.0677, subdivision 1a, is amended to read:<br/>
<a id="pl.56.31"></a><var>56.31</var>    Subd. 1a. <b>Credit allowed; past military service.</b> (a) A qualified individual is <br/>
<a id="pl.56.32"></a><var>56.32</var>allowed a credit against the tax imposed under this chapter for past military service. The <br/>
<a id="pl.56.33"></a><var>56.33</var>credit equals $750 $1,500. The credit allowed under this subdivision is reduced by ten <br/>
<a id="pl.57.1"></a><var>57.1</var>percent of adjusted gross income in excess of $30,000, but in no case is the credit less <br/>
<a id="pl.57.2"></a><var>57.2</var>than zero.<br/>
<a id="pl.57.3"></a><var>57.3</var>    (b) For a nonresident or a part-year resident, the credit under this subdivision <br/>
<a id="pl.57.4"></a><var>57.4</var>must be allocated based on the percentage calculated under section 
         <statute_ref>290.06, subdivision <br/>
<a id="pl.57.5"></a><var>57.5</var>2c
         </statute_ref>, paragraph (e).<br/>
<a id="pl.57.6"></a><var>57.6</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.57.7"></a><var>57.7</var>December 31, 2013.<br/>
<br/>
<a id="bill.3.14.0"></a><a id="pl.57.8"></a><var>57.8</var>    Sec. 14. <b>[290.0682] VOLUNTEER FIRST RESPONDER CREDIT.</b><br/>
<a id="pl.57.9"></a><var>57.9</var>    Subdivision 1. <b>Credit allowed; volunteer first responders.</b> (a) A qualified <br/>
<a id="pl.57.10"></a><var>57.10</var>individual is allowed a credit against the tax due under this chapter equal to $450.<br/>
<a id="pl.57.11"></a><var>57.11</var>(b) For a nonresident or part-year resident, the credit under this subdivision must <br/>
<a id="pl.57.12"></a><var>57.12</var>be allocated based on the percentage calculated under section 290.06, subdivision 2c, <br/>
<a id="pl.57.13"></a><var>57.13</var>paragraph (e).<br/>
<a id="pl.57.14"></a><var>57.14</var>    Subd. 2. <b>Definitions.</b> For purposes of this section, "qualified individual" means an <br/>
<a id="pl.57.15"></a><var>57.15</var>individual who is:<br/>
<a id="pl.57.16"></a><var>57.16</var>(1) a volunteer firefighter as defined in section 424A.001, subdivision 10;<br/>
<a id="pl.57.17"></a><var>57.17</var>(2) a volunteer ambulance attendant as defined in section 144E.001, subdivision 15; or<br/>
<a id="pl.57.18"></a><var>57.18</var>(3) an emergency medical responder as defined in section 144E.001, subdivision 6, <br/>
<a id="pl.57.19"></a><var>57.19</var>who provides emergency medical services as a volunteer.<br/>
<a id="pl.57.20"></a><var>57.20</var>    Subd. 3. <b>Credit to be refundable</b> If the amount of total credits that the claimant is <br/>
<a id="pl.57.21"></a><var>57.21</var>eligible to receive under this section exceeds the claimant's tax liability under chapter 290, <br/>
<a id="pl.57.22"></a><var>57.22</var>the commissioner shall refund the excess to the claimant.<br/>
<a id="pl.57.23"></a><var>57.23</var>    Subd. 3. <b>Limitations.</b> An individual is not eligible for the credit under this section <br/>
<a id="pl.57.24"></a><var>57.24</var>unless the individual has served as a volunteer firefighter, volunteer ambulance attendant, <br/>
<a id="pl.57.25"></a><var>57.25</var>or volunteer emergency medical provider for more than one calendar year.<br/>
<a id="pl.57.26"></a><var>57.26</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.57.27"></a><var>57.27</var>December 31, 2013.<br/>
<br/>
<a id="bill.3.15.0"></a><a id="pl.57.28"></a><var>57.28</var>    Sec. 15. Minnesota Statutes 2012, section 290.081, is amended to read:<br/>
<a id="pl.57.29"></a><var>57.29</var><b>290.081 INCOME OF NONRESIDENTS, RECIPROCITY.</b><br/>
<a id="pl.57.30"></a><var>57.30</var>(a) The compensation received for the performance of personal or professional <br/>
<a id="pl.57.31"></a><var>57.31</var>services within this state by an individual whose residence, place of abode, and place <br/>
<a id="pl.57.32"></a><var>57.32</var>customarily returned to at least once a month is in another state, shall be excluded from <br/>
<a id="pl.57.33"></a><var>57.33</var>gross income to the extent such compensation is subject to an income tax imposed by the <br/>
<a id="pl.58.1"></a><var>58.1</var>state of residence; provided that such state allows a similar exclusion of compensation <br/>
<a id="pl.58.2"></a><var>58.2</var>received by residents of Minnesota for services performed therein.<br/>
<a id="pl.58.3"></a><var>58.3</var>(b) When it is deemed to be in the best interests of the people of this state, the <br/>
<a id="pl.58.4"></a><var>58.4</var>commissioner may determine that the provisions of paragraph (a) shall not apply. As long <br/>
<a id="pl.58.5"></a><var>58.5</var>as the provisions of paragraph (a) apply between Minnesota and Wisconsin, the provisions <br/>
<a id="pl.58.6"></a><var>58.6</var>of paragraph (a) shall apply to any individual who is domiciled in Wisconsin.<br/>
<a id="pl.58.7"></a><var>58.7</var>(c) For the purposes of paragraph (a), whenever the Wisconsin tax on Minnesota <br/>
<a id="pl.58.8"></a><var>58.8</var>residents which would have been paid Wisconsin without paragraph (a) exceeds the <br/>
<a id="pl.58.9"></a><var>58.9</var>Minnesota tax on Wisconsin residents which would have been paid Minnesota without <br/>
<a id="pl.58.10"></a><var>58.10</var>paragraph (a), or vice versa, then the state with the net revenue loss resulting from <br/>
<a id="pl.58.11"></a><var>58.11</var>paragraph (a) must be compensated by shall receive from the other state as provided in the <br/>
<a id="pl.58.12"></a><var>58.12</var>agreement under paragraph (d) the amount of such loss. This provision shall be effective <br/>
<a id="pl.58.13"></a><var>58.13</var>for all years beginning after December 31, 1972. The data used for computing the loss <br/>
<a id="pl.58.14"></a><var>58.14</var>to either state shall be determined on or before September 30 of the year following the <br/>
<a id="pl.58.15"></a><var>58.15</var>close of the previous calendar year.<br/>
<a id="pl.58.16"></a><var>58.16</var>(d)(1) Interest is payable on all amounts calculated under paragraph (c) relating <br/>
<a id="pl.58.17"></a><var>58.17</var>to taxable years beginning after December 31, 2000. Interest accrues from July 1 of <br/>
<a id="pl.58.18"></a><var>58.18</var>the taxable year.<br/>
<a id="pl.58.19"></a><var>58.19</var>(2) The commissioner of revenue is authorized to enter into agreements with <br/>
<a id="pl.58.20"></a><var>58.20</var>the state of Wisconsin specifying the compensation required under paragraph (b), the <br/>
<a id="pl.58.21"></a><var>58.21</var>reciprocity payment due date dates, conditions constituting delinquency, interest rates, and <br/>
<a id="pl.58.22"></a><var>58.22</var>a method for computing interest due. Calculation of compensation under the agreement <br/>
<a id="pl.58.23"></a><var>58.23</var>must specify if the revenue loss is determined before or after the allowance of each state's <br/>
<a id="pl.58.24"></a><var>58.24</var>credit for taxes paid to the other state.<br/>
<a id="pl.58.25"></a><var>58.25</var>(3) For agreements entered into before October 1, 2014, the annual compensation <br/>
<a id="pl.58.26"></a><var>58.26</var>required under paragraph (c) must equal at least the net revenue loss minus $1,000,000 <br/>
<a id="pl.58.27"></a><var>58.27</var>per fiscal year.<br/>
<a id="pl.58.28"></a><var>58.28</var>(4) For agreements entered into after September 30, 2014, the annual compensation <br/>
<a id="pl.58.29"></a><var>58.29</var>required under paragraph (c) must equal the net revenue loss per fiscal year.<br/>
<a id="pl.58.30"></a><var>58.30</var>(5) For the purposes of clauses (3) and (4), "net revenue loss" means the difference <br/>
<a id="pl.58.31"></a><var>58.31</var>between the amount of Minnesota income taxes Minnesota forgoes by not taxing <br/>
<a id="pl.58.32"></a><var>58.32</var>Wisconsin residents on income subject to reciprocity and the credit Minnesota would <br/>
<a id="pl.58.33"></a><var>58.33</var>have been required to give under section 290.06, subdivision 22, to Minnesota residents <br/>
<a id="pl.58.34"></a><var>58.34</var>working in Wisconsin had there not been reciprocity.<br/>
<a id="pl.58.35"></a><var>58.35</var>(e) If an agreement cannot be reached as to the amount of the loss, the commissioner <br/>
<a id="pl.58.36"></a><var>58.36</var>of revenue and the taxing official of the state of Wisconsin shall each appoint a member <br/>
<a id="pl.59.1"></a><var>59.1</var>of a board of arbitration and these members shall appoint the third member of the board. <br/>
<a id="pl.59.2"></a><var>59.2</var>The board shall select one of its members as chair. Such board may administer oaths, take <br/>
<a id="pl.59.3"></a><var>59.3</var>testimony, subpoena witnesses, and require their attendance, require the production of <br/>
<a id="pl.59.4"></a><var>59.4</var>books, papers and documents, and hold hearings at such places as are deemed necessary. <br/>
<a id="pl.59.5"></a><var>59.5</var>The board shall then make a determination as to the amount to be paid the other state <br/>
<a id="pl.59.6"></a><var>59.6</var>which determination shall be final and conclusive.<br/>
<a id="pl.59.7"></a><var>59.7</var>(f) The commissioner may furnish copies of returns, reports, or other information to <br/>
<a id="pl.59.8"></a><var>59.8</var>the taxing official of the state of Wisconsin, a member of the board of arbitration, or a <br/>
<a id="pl.59.9"></a><var>59.9</var>consultant under joint contract with the states of Minnesota and Wisconsin for the purpose <br/>
<a id="pl.59.10"></a><var>59.10</var>of making a determination as to the amount to be paid the other state under the provisions <br/>
<a id="pl.59.11"></a><var>59.11</var>of this section. Prior to the release of any information under the provisions of this section, <br/>
<a id="pl.59.12"></a><var>59.12</var>the person to whom the information is to be released shall sign an agreement which <br/>
<a id="pl.59.13"></a><var>59.13</var>provides that the person will protect the confidentiality of the returns and information <br/>
<a id="pl.59.14"></a><var>59.14</var>revealed thereby to the extent that it is protected under the laws of the state of Minnesota.<br/>
<a id="pl.59.15"></a><var>59.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.16.0"></a><a id="pl.59.16"></a><var>59.16</var>    Sec. 16. Minnesota Statutes 2013 Supplement, section 290.091, subdivision 2, as <br/>
<a id="pl.59.17"></a><var>59.17</var>amended by Laws 2014, chapter 150, article 1, section 21, is amended to read:<br/>
<a id="pl.59.18"></a><var>59.18</var>    Subd. 2. <b>Definitions.</b> For purposes of the tax imposed by this section, the following <br/>
<a id="pl.59.19"></a><var>59.19</var>terms have the meanings given:<br/>
<a id="pl.59.20"></a><var>59.20</var>    (a) "Alternative minimum taxable income" means the sum of the following for <br/>
<a id="pl.59.21"></a><var>59.21</var>the taxable year:<br/>
<a id="pl.59.22"></a><var>59.22</var>    (1) the taxpayer's federal alternative minimum taxable income as defined in section <br/>
<a id="pl.59.23"></a><var>59.23</var>55(b)(2) of the Internal Revenue Code;<br/>
<a id="pl.59.24"></a><var>59.24</var>    (2) the taxpayer's itemized deductions allowed in computing federal alternative <br/>
<a id="pl.59.25"></a><var>59.25</var>minimum taxable income, but excluding:<br/>
<a id="pl.59.26"></a><var>59.26</var>    (i) the charitable contribution deduction under section 170 of the Internal Revenue <br/>
<a id="pl.59.27"></a><var>59.27</var>Code;<br/>
<a id="pl.59.28"></a><var>59.28</var>    (ii) the medical expense deduction;<br/>
<a id="pl.59.29"></a><var>59.29</var>    (iii) the casualty, theft, and disaster loss deduction; and<br/>
<a id="pl.59.30"></a><var>59.30</var>    (iv) the impairment-related work expenses of a disabled person;<br/>
<a id="pl.59.31"></a><var>59.31</var>    (3) for depletion allowances computed under section 613A(c) of the Internal <br/>
<a id="pl.59.32"></a><var>59.32</var>Revenue Code, with respect to each property (as defined in section 614 of the Internal <br/>
<a id="pl.59.33"></a><var>59.33</var>Revenue Code), to the extent not included in federal alternative minimum taxable income, <br/>
<a id="pl.59.34"></a><var>59.34</var>the excess of the deduction for depletion allowable under section 611 of the Internal <br/>
<a id="pl.60.1"></a><var>60.1</var>Revenue Code for the taxable year over the adjusted basis of the property at the end of the <br/>
<a id="pl.60.2"></a><var>60.2</var>taxable year (determined without regard to the depletion deduction for the taxable year);<br/>
<a id="pl.60.3"></a><var>60.3</var>    (4) to the extent not included in federal alternative minimum taxable income, the <br/>
<a id="pl.60.4"></a><var>60.4</var>amount of the tax preference for intangible drilling cost under section 57(a)(2) of the <br/>
<a id="pl.60.5"></a><var>60.5</var>Internal Revenue Code determined without regard to subparagraph (E);<br/>
<a id="pl.60.6"></a><var>60.6</var>    (5) to the extent not included in federal alternative minimum taxable income, the <br/>
<a id="pl.60.7"></a><var>60.7</var>amount of interest income as provided by section 
         <statute_ref>290.01, subdivision 19a</statute_ref>, clause (1); and<br/>
<a id="pl.60.8"></a><var>60.8</var>    (6) the amount of addition required by section 
         <statute_ref>290.01, subdivision 19a</statute_ref>, clauses (7) <br/>
<a id="pl.60.9"></a><var>60.9</var>to (9), and (11) to (14);<br/>
<a id="pl.60.10"></a><var>60.10</var>    less the sum of the amounts determined under the following:<br/>
<a id="pl.60.11"></a><var>60.11</var>    (1) interest income as defined in section 
         <statute_ref>290.01, subdivision 19b</statute_ref>, clause (1);<br/>
<a id="pl.60.12"></a><var>60.12</var>    (2) an overpayment of state income tax as provided by section 
         <statute_ref>290.01, subdivision <br/>
<a id="pl.60.13"></a><var>60.13</var>19b
         </statute_ref>, clause (2), to the extent included in federal alternative minimum taxable income;<br/>
<a id="pl.60.14"></a><var>60.14</var>    (3) the amount of investment interest paid or accrued within the taxable year on <br/>
<a id="pl.60.15"></a><var>60.15</var>indebtedness to the extent that the amount does not exceed net investment income, as <br/>
<a id="pl.60.16"></a><var>60.16</var>defined in section 163(d)(4) of the Internal Revenue Code. Interest does not include <br/>
<a id="pl.60.17"></a><var>60.17</var>amounts deducted in computing federal adjusted gross income;<br/>
<a id="pl.60.18"></a><var>60.18</var>    (4) amounts subtracted from federal taxable income as provided by section 
         <statute_ref>290.01, <br/>
<a id="pl.60.19"></a><var>60.19</var>subdivision 19b
         </statute_ref>, clauses (6), (8) to (14), and (16), (21), and (22); and<br/>
<a id="pl.60.20"></a><var>60.20</var>(5) the amount of the net operating loss allowed under section 
         <statute_ref>290.095, subdivision <br/>
<a id="pl.60.21"></a><var>60.21</var>11
         </statute_ref>, paragraph (c).<br/>
<a id="pl.60.22"></a><var>60.22</var>    In the case of an estate or trust, alternative minimum taxable income must be <br/>
<a id="pl.60.23"></a><var>60.23</var>computed as provided in section 59(c) of the Internal Revenue Code.<br/>
<a id="pl.60.24"></a><var>60.24</var>    (b) "Investment interest" means investment interest as defined in section 163(d)(3) <br/>
<a id="pl.60.25"></a><var>60.25</var>of the Internal Revenue Code.<br/>
<a id="pl.60.26"></a><var>60.26</var>    (c) "Net minimum tax" means the minimum tax imposed by this section.<br/>
<a id="pl.60.27"></a><var>60.27</var>    (d) "Regular tax" means the tax that would be imposed under this chapter (without <br/>
<a id="pl.60.28"></a><var>60.28</var>regard to this section and section 290.032), reduced by the sum of the nonrefundable <br/>
<a id="pl.60.29"></a><var>60.29</var>credits allowed under this chapter.<br/>
<a id="pl.60.30"></a><var>60.30</var>    (e) "Tentative minimum tax" equals 
         <statute_ref>6.75</statute_ref> percent of alternative minimum taxable <br/>
<a id="pl.60.31"></a><var>60.31</var>income after subtracting the exemption amount determined under subdivision 3.<br/>
<a id="pl.60.32"></a><var>60.32</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.60.33"></a><var>60.33</var>December 31, 2013.<br/>
<br/>
<a id="bill.3.17.0"></a><a id="pl.60.34"></a><var>60.34</var>    Sec. 17. Minnesota Statutes 2013 Supplement, section 290A.03, subdivision 15, as <br/>
<a id="pl.60.35"></a><var>60.35</var>amended by Laws 2014, chapter 150, article 1, section 22, is amended to read:<br/>
<a id="pl.61.1"></a><var>61.1</var>    Subd. 15. <b>Internal Revenue Code.</b>  "Internal Revenue Code" means the Internal <br/>
<a id="pl.61.2"></a><var>61.2</var>Revenue Code of 1986, as amended through December 20, 2013 March 26, 2014.<br/>
<a id="pl.61.3"></a><var>61.3</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for property tax refunds <br/>
<a id="pl.61.4"></a><var>61.4</var>based on property taxes payable after December 31, 2013, and rent paid after December <br/>
<a id="pl.61.5"></a><var>61.5</var>31, 2012.<br/>
<br/>
<a id="bill.3.18.0"></a><a id="pl.61.6"></a><var>61.6</var>    Sec. 18. Minnesota Statutes 2013 Supplement, section 291.005, subdivision 1, as <br/>
<a id="pl.61.7"></a><var>61.7</var>amended by Laws 2014, chapter 150, article 3, section 3, is amended to read:<br/>
<a id="pl.61.8"></a><var>61.8</var>    Subdivision 1. <b>Scope.</b> Unless the context otherwise clearly requires, the following <br/>
<a id="pl.61.9"></a><var>61.9</var>terms used in this chapter shall have the following meanings:<br/>
<a id="pl.61.10"></a><var>61.10</var>    (1) "Commissioner" means the commissioner of revenue or any person to whom the <br/>
<a id="pl.61.11"></a><var>61.11</var>commissioner has delegated functions under this chapter.<br/>
<a id="pl.61.12"></a><var>61.12</var>    (2) "Federal gross estate" means the gross estate of a decedent as required to be valued <br/>
<a id="pl.61.13"></a><var>61.13</var>and otherwise determined for federal estate tax purposes under the Internal Revenue Code.<br/>
<a id="pl.61.14"></a><var>61.14</var>    (3) "Internal Revenue Code" means the United States Internal Revenue Code of <br/>
<a id="pl.61.15"></a><var>61.15</var>1986, as amended through March 1 26, 2014.<br/>
<a id="pl.61.16"></a><var>61.16</var>    (4) "Minnesota gross estate" means the federal gross estate of a decedent after <br/>
<a id="pl.61.17"></a><var>61.17</var>(a) excluding therefrom any property included in the estate which has its situs outside <br/>
<a id="pl.61.18"></a><var>61.18</var>Minnesota, and (b) including any property omitted from the federal gross estate which <br/>
<a id="pl.61.19"></a><var>61.19</var>is includable in the estate, has its situs in Minnesota, and was not disclosed to federal <br/>
<a id="pl.61.20"></a><var>61.20</var>taxing authorities.<br/>
<a id="pl.61.21"></a><var>61.21</var>    (5) "Nonresident decedent" means an individual whose domicile at the time of <br/>
<a id="pl.61.22"></a><var>61.22</var>death was not in Minnesota.<br/>
<a id="pl.61.23"></a><var>61.23</var>    (6) "Personal representative" means the executor, administrator or other person <br/>
<a id="pl.61.24"></a><var>61.24</var>appointed by the court to administer and dispose of the property of the decedent. If there <br/>
<a id="pl.61.25"></a><var>61.25</var>is no executor, administrator or other person appointed, qualified, and acting within this <br/>
<a id="pl.61.26"></a><var>61.26</var>state, then any person in actual or constructive possession of any property having a situs in <br/>
<a id="pl.61.27"></a><var>61.27</var>this state which is included in the federal gross estate of the decedent shall be deemed <br/>
<a id="pl.61.28"></a><var>61.28</var>to be a personal representative to the extent of the property and the Minnesota estate tax <br/>
<a id="pl.61.29"></a><var>61.29</var>due with respect to the property.<br/>
<a id="pl.61.30"></a><var>61.30</var>    (7) "Resident decedent" means an individual whose domicile at the time of death <br/>
<a id="pl.61.31"></a><var>61.31</var>was in Minnesota. The provisions of section 290.01, subdivision 7, paragraph (c), apply to <br/>
<a id="pl.61.32"></a><var>61.32</var>determinations of domicile under this chapter.<br/>
<a id="pl.61.33"></a><var>61.33</var>    (8) "Situs of property" means, with respect to:<br/>
<a id="pl.61.34"></a><var>61.34</var>    (i) real property, the state or country in which it is located;<br/>
<a id="pl.62.1"></a><var>62.1</var>    (ii) tangible personal property, the state or country in which it was normally kept <br/>
<a id="pl.62.2"></a><var>62.2</var>or located at the time of the decedent's death or for a gift of tangible personal property <br/>
<a id="pl.62.3"></a><var>62.3</var>within three years of death, the state or country in which it was normally kept or located <br/>
<a id="pl.62.4"></a><var>62.4</var>when the gift was executed; and<br/>
<a id="pl.62.5"></a><var>62.5</var>    (iii) a qualified work of art, as defined in section 2503(g)(2) of the Internal Revenue <br/>
<a id="pl.62.6"></a><var>62.6</var>Code, owned by a nonresident decedent and that is normally kept or located in this state <br/>
<a id="pl.62.7"></a><var>62.7</var>because it is on loan to an organization, qualifying as exempt from taxation under section <br/>
<a id="pl.62.8"></a><var>62.8</var>501(c)(3) of the Internal Revenue Code, that is located in Minnesota, the situs of the art is <br/>
<a id="pl.62.9"></a><var>62.9</var>deemed to be outside of Minnesota, notwithstanding the provisions of item (ii); and<br/>
<a id="pl.62.10"></a><var>62.10</var>    (iv) intangible personal property, the state or country in which the decedent was <br/>
<a id="pl.62.11"></a><var>62.11</var>domiciled at death or for a gift of intangible personal property within three years of death, <br/>
<a id="pl.62.12"></a><var>62.12</var>the state or country in which the decedent was domiciled when the gift was executed.<br/>
<a id="pl.62.13"></a><var>62.13</var>    For a nonresident decedent with an ownership interest in a pass-through entity with <br/>
<a id="pl.62.14"></a><var>62.14</var>assets that include real or tangible personal property, situs of the real or tangible personal <br/>
<a id="pl.62.15"></a><var>62.15</var>property, including qualified works of art, is determined as if the pass-through entity does <br/>
<a id="pl.62.16"></a><var>62.16</var>not exist and the real or tangible personal property is personally owned by the decedent. <br/>
<a id="pl.62.17"></a><var>62.17</var>If the pass-through entity is owned by a person or persons in addition to the decedent, <br/>
<a id="pl.62.18"></a><var>62.18</var>ownership of the property is attributed to the decedent in proportion to the decedent's <br/>
<a id="pl.62.19"></a><var>62.19</var>capital ownership share of the pass-through entity.<br/>
<a id="pl.62.20"></a><var>62.20</var>(9) "Pass-through entity" includes the following:<br/>
<a id="pl.62.21"></a><var>62.21</var>(i) an entity electing S corporation status under section 1362 of the Internal Revenue <br/>
<a id="pl.62.22"></a><var>62.22</var>Code;<br/>
<a id="pl.62.23"></a><var>62.23</var>(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code;<br/>
<a id="pl.62.24"></a><var>62.24</var>(iii) a single-member limited liability company or similar entity, regardless of <br/>
<a id="pl.62.25"></a><var>62.25</var>whether it is taxed as an association or is disregarded for federal income tax purposes <br/>
<a id="pl.62.26"></a><var>62.26</var>under Code of Federal Regulations, title 26, section 301.7701-3; or<br/>
<a id="pl.62.27"></a><var>62.27</var>(iv) a trust to the extent the property is includible in the decedent's federal gross <br/>
<a id="pl.62.28"></a><var>62.28</var>estate; but excludes<br/>
<a id="pl.62.29"></a><var>62.29</var>    (v) an entity whose ownership interest securities are traded on an exchange regulated <br/>
<a id="pl.62.30"></a><var>62.30</var>by the Securities and Exchange Commission as a national securities exchange under <br/>
<a id="pl.62.31"></a><var>62.31</var>section 6 of the Securities Exchange Act, United States Code, title 15, section 78f.<br/>
<a id="pl.62.32"></a><var>62.32</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for estates of decedents <br/>
<a id="pl.62.33"></a><var>62.33</var>dying after December 31, 2013, except the changes in clause (7) are effective the day <br/>
<a id="pl.62.34"></a><var>62.34</var>following final enactment.<br/>
<br/>
<a id="bill.3.19.0"></a><a id="pl.63.1"></a><var>63.1</var>    Sec. 19. Laws 2014, chapter 150, article 3, section 4, the effective date, is amended to <br/>
<a id="pl.63.2"></a><var>63.2</var>read:<br/>
<a id="pl.63.3"></a><var>63.3</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for estates of decedents <br/>
<a id="pl.63.4"></a><var>63.4</var>dying after December 31, 2013, and for taxable gifts made after June 30, 2013.<br/>
<a id="pl.63.5"></a><var>63.5</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.20.0"></a><a id="pl.63.6"></a><var>63.6</var>    Sec. 20. <b>DEFINITION OF TAXABLE GIFT FOR DECEDENTS DYING </b><br/>
<a id="pl.63.7"></a><var>63.7</var><b>BEFORE JANUARY 1, 2014.</b><br/>
<a id="pl.63.8"></a><var>63.8</var>For estates of decedents dying before January 1, 2014, "taxable gift" as used by <br/>
<a id="pl.63.9"></a><var>63.9</var>Minnesota Statutes, section 291.005, subdivision 1, paragraph (4), means a transfer by gift <br/>
<a id="pl.63.10"></a><var>63.10</var>which is included in taxable gifts for federal gift tax purposes under the following sections <br/>
<a id="pl.63.11"></a><var>63.11</var>of the Internal Revenue Code: section 529; section 530; section 2501(a)(4); section 2503; <br/>
<a id="pl.63.12"></a><var>63.12</var>sections 2511 to 2514; and sections 2516 to 2519; less the deductions allowed in sections <br/>
<a id="pl.63.13"></a><var>63.13</var>2522 to 2524 of the Internal Revenue Code, and after excluding taxable gifts of any <br/>
<a id="pl.63.14"></a><var>63.14</var>property that has its situs outside Minnesota and including taxable gifts of any property <br/>
<a id="pl.63.15"></a><var>63.15</var>tax that has its situs in Minnesota and were not disclosed to federal taxing authorities.<br/>
<a id="pl.63.16"></a><var>63.16</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for taxable gifts made <br/>
<a id="pl.63.17"></a><var>63.17</var>after June 30, 2013.<br/>
<br/>
<a id="bill.3.21.0"></a><a id="pl.63.18"></a><var>63.18</var>    Sec. 21. <b>TEMPORARY EDUCATION CREDITS.</b><br/>
<a id="pl.63.19"></a><var>63.19</var>    Subdivision 1. <b>Students with disabilities tutoring credit.</b> (a) A taxpayer is allowed <br/>
<a id="pl.63.20"></a><var>63.20</var>a credit, up to $2,000, against the tax imposed by Minnesota Statutes, chapter 290. The <br/>
<a id="pl.63.21"></a><var>63.21</var>credit amount equals 75 percent of the amount of eligible expenses paid by a taxpayer who <br/>
<a id="pl.63.22"></a><var>63.22</var>is a parent or guardian of a child for whom a Minnesota individualized education program is <br/>
<a id="pl.63.23"></a><var>63.23</var>in effect pursuant to Minnesota Statutes, section 125A.08. The taxpayer claiming the credit <br/>
<a id="pl.63.24"></a><var>63.24</var>under this subdivision must be a member of the child's individual education program team.<br/>
<a id="pl.63.25"></a><var>63.25</var>(b) For the purposes of this subdivision, the following definitions apply:<br/>
<a id="pl.63.26"></a><var>63.26</var>(1) "eligible expenses" means actual expenses, less the amount of expenses used to <br/>
<a id="pl.63.27"></a><var>63.27</var>claim the credit under Minnesota Statutes, section 290.0674, subdivision 1, paid by the <br/>
<a id="pl.63.28"></a><var>63.28</var>taxpayer for tutoring, instruction, or treatment by an instructor and not compensated by <br/>
<a id="pl.63.29"></a><var>63.29</var>insurance, pretax account, or otherwise, to meet the cognitive, academic, communicative, <br/>
<a id="pl.63.30"></a><var>63.30</var>social and emotional, motor ability, vocational, sensory, physical, or behavioral and <br/>
<a id="pl.63.31"></a><var>63.31</var>functional needs of a student for purposes of improvement in meeting the academic <br/>
<a id="pl.63.32"></a><var>63.32</var>standards required under Minnesota Statutes, section 120B.22; and<br/>
<a id="pl.64.1"></a><var>64.1</var>(2) "instructor" means a person qualifying under Minnesota Statutes, section <br/>
<a id="pl.64.2"></a><var>64.2</var>120A.22, subdivision 10, clauses (1) to (5), who is not a lineal ancestor or sibling of <br/>
<a id="pl.64.3"></a><var>64.3</var>the qualifying child.<br/>
<a id="pl.64.4"></a><var>64.4</var>(c) A taxpayer claiming the credit under this subdivision must provide documentation <br/>
<a id="pl.64.5"></a><var>64.5</var>of eligibility for the credit in a form and manner prescribed by the commissioner of revenue.<br/>
<a id="pl.64.6"></a><var>64.6</var>    Subd. 2. <b>Reading credit.</b> (a) A taxpayer is allowed a credit, up to $2,000, against the <br/>
<a id="pl.64.7"></a><var>64.7</var>tax imposed by Minnesota Statutes, chapter 290. The credit amount equals 75 percent of <br/>
<a id="pl.64.8"></a><var>64.8</var>the amount of eligible expenses paid by a taxpayer who is a parent or guardian of a child:<br/>
<a id="pl.64.9"></a><var>64.9</var>(1) who has been evaluated for determination of a specific learning disability under <br/>
<a id="pl.64.10"></a><var>64.10</var>Minnesota Rules, part 3525.1341, and was not found to meet the criteria under Minnesota <br/>
<a id="pl.64.11"></a><var>64.11</var>Rules, part 3525.1341, subpart 2, to have a specific learning disability; and<br/>
<a id="pl.64.12"></a><var>64.12</var>(2) for whom the evaluation indicated a determination of a deficiency in basic <br/>
<a id="pl.64.13"></a><var>64.13</var>reading skills, reading comprehension, or reading fluency that impair a child to meet <br/>
<a id="pl.64.14"></a><var>64.14</var>expected age or grade-level standards.<br/>
<a id="pl.64.15"></a><var>64.15</var>(b) For purposes of this subdivision, the following definitions apply:<br/>
<a id="pl.64.16"></a><var>64.16</var>(1) "eligible expenses" means actual expenses, less the amount of expenses used to <br/>
<a id="pl.64.17"></a><var>64.17</var>claim the credit under Minnesota Statutes, section 290.0674, subdivision 1, paid by the <br/>
<a id="pl.64.18"></a><var>64.18</var>taxpayer for tutoring, instruction, or treatment by an instructor and not compensated by <br/>
<a id="pl.64.19"></a><var>64.19</var>insurance, pretax account, or otherwise, for purposes of meeting the academic standards <br/>
<a id="pl.64.20"></a><var>64.20</var>required under Minnesota Statutes, section 120B.22;<br/>
<a id="pl.64.21"></a><var>64.21</var>(2) "instructor" means a person qualifying under Minnesota Statutes, section <br/>
<a id="pl.64.22"></a><var>64.22</var>120A.22, subdivision 10, clauses (1) to (5), who is not a lineal ancestor or sibling of <br/>
<a id="pl.64.23"></a><var>64.23</var>the qualifying child; and<br/>
<a id="pl.64.24"></a><var>64.24</var>(3) "treatment" means instruction that:<br/>
<a id="pl.64.25"></a><var>64.25</var>(i) teaches language decoding skills in a systematic manner;<br/>
<a id="pl.64.26"></a><var>64.26</var>(ii) uses recognized diagnostic assessments to determine what intervention would be <br/>
<a id="pl.64.27"></a><var>64.27</var>most appropriate for individual students; and<br/>
<a id="pl.64.28"></a><var>64.28</var>(iii) employs a research-based method.<br/>
<a id="pl.64.29"></a><var>64.29</var>(c) A taxpayer claiming the credit under this subdivision must provide documentation <br/>
<a id="pl.64.30"></a><var>64.30</var>of eligibility for the credit in a form and manner prescribed by the commissioner.<br/>
<a id="pl.64.31"></a><var>64.31</var>    Subd. 3. <b>Assignment of refunds.</b> The provisions of Minnesota Statutes, section <br/>
<a id="pl.64.32"></a><var>64.32</var>290.0679, except for subdivision 1, paragraphs (c) to (f), apply to the assignment of <br/>
<a id="pl.64.33"></a><var>64.33</var>refunds authorized under this section. For purposes of assignment of refund under this <br/>
<a id="pl.64.34"></a><var>64.34</var>section, a "qualifying taxpayer" means a taxpayer qualified to receive a credit under this <br/>
<a id="pl.64.35"></a><var>64.35</var>section. In no case shall any condition for assignment require disclosure of the specific <br/>
<a id="pl.64.36"></a><var>64.36</var>findings of an evaluation for a specific learning disability.<br/>
<a id="pl.65.1"></a><var>65.1</var>    Subd. 4. <b>Credit to be refundable.</b> If the amount of total credits that the claimant is <br/>
<a id="pl.65.2"></a><var>65.2</var>eligible to receive under this section exceeds the claimant's tax liability under Minnesota <br/>
<a id="pl.65.3"></a><var>65.3</var>Statutes, chapter 290, the commissioner shall refund the excess to the claimant.<br/>
<a id="pl.65.4"></a><var>65.4</var>    Subd. 5. <b>Appropriation.</b> An amount sufficient to pay the refunds authorized under <br/>
<a id="pl.65.5"></a><var>65.5</var>this section is appropriated to the commissioner from the general fund.<br/>
<a id="pl.65.6"></a><var>65.6</var>    Subd. 6. <b>Report.</b> By October 1, 2015, the commissioner must provide a report to <br/>
<a id="pl.65.7"></a><var>65.7</var>the chairs and ranking minority members of the committees of the house of representatives <br/>
<a id="pl.65.8"></a><var>65.8</var>and senate with jurisdiction over taxes on:<br/>
<a id="pl.65.9"></a><var>65.9</var>(1) the number of taxpayers claiming the credits under this section and the average <br/>
<a id="pl.65.10"></a><var>65.10</var>amount of credits claimed; and<br/>
<a id="pl.65.11"></a><var>65.11</var>(2) the administration of the credits, including recommendations for ensuring <br/>
<a id="pl.65.12"></a><var>65.12</var>compliance.<br/>
<a id="pl.65.13"></a><var>65.13</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment for <br/>
<a id="pl.65.14"></a><var>65.14</var>tax year 2014 only.<br/>
<br/>
<a id="bill.4.0.0"></a>

<a id="bill.4.1.0"></a><a id="pl.65.17"></a><var>65.17</var>    Section 1. Minnesota Statutes 2013 Supplement, section 298.28, subdivision 4, is <br/>
<a id="pl.65.18"></a><var>65.18</var>amended to read:<br/>
<a id="pl.65.19"></a><var>65.19</var>    Subd. 4. <b>School districts.</b> (a) 
         <statute_ref>32.15</statute_ref> 33.5 cents per taxable ton, plus the increase <br/>
<a id="pl.65.20"></a><var>65.20</var>provided in paragraph (d), less the amount that would have been computed under <br/>
<a id="pl.65.21"></a><var>65.21</var>Minnesota Statutes 2008, section 
         <statute_ref>126C.21, subdivision 4</statute_ref>, for the current year for that <br/>
<a id="pl.65.22"></a><var>65.22</var>district, must be allocated to qualifying school districts to be distributed, based upon the <br/>
<a id="pl.65.23"></a><var>65.23</var>certification of the commissioner of revenue, under paragraphs (b), (c), and (f).<br/>
<a id="pl.65.24"></a><var>65.24</var>    (b)(i) 3.43 3.88 cents per taxable ton must be distributed to the school districts in <br/>
<a id="pl.65.25"></a><var>65.25</var>which the lands from which taconite was mined or quarried were located or within which <br/>
<a id="pl.65.26"></a><var>65.26</var>the concentrate was produced. The distribution must be based on the apportionment <br/>
<a id="pl.65.27"></a><var>65.27</var>formula prescribed in subdivision 2.<br/>
<a id="pl.65.28"></a><var>65.28</var>    (ii) Four 4.45 cents per taxable ton from each taconite facility must be distributed <br/>
<a id="pl.65.29"></a><var>65.29</var>to each affected school district for deposit in a fund dedicated to building maintenance <br/>
<a id="pl.65.30"></a><var>65.30</var>and repairs, as follows:<br/>
<a id="pl.65.31"></a><var>65.31</var>    (1) proceeds from Keewatin Taconite or its successor are distributed to Independent <br/>
<a id="pl.65.32"></a><var>65.32</var>School Districts Nos. 316, Coleraine, and 319, Nashwauk-Keewatin, or their successor <br/>
<a id="pl.65.33"></a><var>65.33</var>districts;<br/>
<a id="pl.66.1"></a><var>66.1</var>    (2) proceeds from the Hibbing Taconite Company or its successor are distributed to <br/>
<a id="pl.66.2"></a><var>66.2</var>Independent School Districts Nos. 695, Chisholm, and 701, Hibbing, or their successor <br/>
<a id="pl.66.3"></a><var>66.3</var>districts;<br/>
<a id="pl.66.4"></a><var>66.4</var>    (3) proceeds from the Mittal Steel Company and Minntac or their successors are <br/>
<a id="pl.66.5"></a><var>66.5</var>distributed to Independent School Districts Nos. 712, Mountain Iron-Buhl, 706, Virginia, <br/>
<a id="pl.66.6"></a><var>66.6</var>2711, Mesabi East, and 2154, Eveleth-Gilbert, or their successor districts;<br/>
<a id="pl.66.7"></a><var>66.7</var>    (4) proceeds from the Northshore Mining Company or its successor are distributed <br/>
<a id="pl.66.8"></a><var>66.8</var>to Independent School Districts Nos. 2142, St. Louis County, and 381, Lake Superior, <br/>
<a id="pl.66.9"></a><var>66.9</var>or their successor districts; and<br/>
<a id="pl.66.10"></a><var>66.10</var>    (5) proceeds from United Taconite or its successor are distributed to Independent <br/>
<a id="pl.66.11"></a><var>66.11</var>School Districts Nos. 2142, St. Louis County, and 2154, Eveleth-Gilbert, or their <br/>
<a id="pl.66.12"></a><var>66.12</var>successor districts.<br/>
<a id="pl.66.13"></a><var>66.13</var>    Revenues that are required to be distributed to more than one district shall be <br/>
<a id="pl.66.14"></a><var>66.14</var>apportioned according to the number of pupil units identified in section 
         <statute_ref>126C.05, <br/>
<a id="pl.66.15"></a><var>66.15</var>subdivision 1
         </statute_ref>, enrolled in the second previous year.<br/>
<a id="pl.66.16"></a><var>66.16</var>    (c)(i) 
         <statute_ref>24.72</statute_ref> 25.17 cents per taxable ton, less any amount distributed under paragraph <br/>
<a id="pl.66.17"></a><var>66.17</var>(e), shall be distributed to a group of school districts comprised of those school districts <br/>
<a id="pl.66.18"></a><var>66.18</var>which qualify as a tax relief area under section 
         <statute_ref>273.134, paragraph (b)</statute_ref>, or in which there is <br/>
<a id="pl.66.19"></a><var>66.19</var>a qualifying municipality as defined by section 
         <statute_ref>273.134, paragraph (a)</statute_ref>, in direct proportion <br/>
<a id="pl.66.20"></a><var>66.20</var>to school district indexes as follows: for each school district, its pupil units determined <br/>
<a id="pl.66.21"></a><var>66.21</var>under section 
         <statute_ref>126C.05</statute_ref> for the prior school year shall be multiplied by the ratio of the <br/>
<a id="pl.66.22"></a><var>66.22</var>average adjusted net tax capacity per pupil unit for school districts receiving aid under <br/>
<a id="pl.66.23"></a><var>66.23</var>this clause as calculated pursuant to chapters 122A, 126C, and 127A for the school year <br/>
<a id="pl.66.24"></a><var>66.24</var>ending prior to distribution to the adjusted net tax capacity per pupil unit of the district. <br/>
<a id="pl.66.25"></a><var>66.25</var>Each district shall receive that portion of the distribution which its index bears to the sum <br/>
<a id="pl.66.26"></a><var>66.26</var>of the indices for all school districts that receive the distributions.<br/>
<a id="pl.66.27"></a><var>66.27</var>    (ii) Notwithstanding clause (i), each school district that receives a distribution <br/>
<a id="pl.66.28"></a><var>66.28</var>under sections 
         <statute_ref>298.018</statute_ref>; 
         <statute_ref>298.23</statute_ref> to 
         <statute_ref>298.28</statute_ref>, exclusive of any amount received under this <br/>
<a id="pl.66.29"></a><var>66.29</var>clause; 
         <statute_ref>298.34</statute_ref> to 
         <statute_ref>298.39</statute_ref>; 
         <statute_ref>298.391</statute_ref> to 
         <statute_ref>298.396</statute_ref>; 
         <statute_ref>298.405</statute_ref>; or any law imposing a tax on <br/>
<a id="pl.66.30"></a><var>66.30</var>severed mineral values after reduction for any portion distributed to cities and towns <br/>
<a id="pl.66.31"></a><var>66.31</var>under section 
         <statute_ref>126C.48, subdivision 8</statute_ref>, paragraph (5), that is less than the amount of its <br/>
<a id="pl.66.32"></a><var>66.32</var>levy reduction under section 
         <statute_ref>126C.48, subdivision 8</statute_ref>, for the second year prior to the <br/>
<a id="pl.66.33"></a><var>66.33</var>year of the distribution shall receive a distribution equal to the difference; the amount <br/>
<a id="pl.66.34"></a><var>66.34</var>necessary to make this payment shall be derived from proportionate reductions in the <br/>
<a id="pl.66.35"></a><var>66.35</var>initial distribution to other school districts under clause (i). If there are insufficient tax <br/>
<a id="pl.66.36"></a><var>66.36</var>proceeds to make the distribution provided under this paragraph in any year, money must <br/>
<a id="pl.67.1"></a><var>67.1</var>be transferred from the taconite property tax relief account in subdivision 6, to the extent <br/>
<a id="pl.67.2"></a><var>67.2</var>of the shortfall in the distribution.<br/>
<a id="pl.67.3"></a><var>67.3</var>    (d)(1) Any school district described in paragraph (c) where a levy increase pursuant <br/>
<a id="pl.67.4"></a><var>67.4</var>to section 
         <statute_ref>126C.17, subdivision 9</statute_ref>, was authorized by referendum for taxes payable in <br/>
<a id="pl.67.5"></a><var>67.5</var>2001, shall receive a distribution of 21.3 cents per ton. Each district shall receive $175 <br/>
<a id="pl.67.6"></a><var>67.6</var>times the pupil units identified in section 
         <statute_ref>126C.05, subdivision 1</statute_ref>, enrolled in the second <br/>
<a id="pl.67.7"></a><var>67.7</var>previous year or the 1983-1984 school year, whichever is greater, less the product of 1.8 <br/>
<a id="pl.67.8"></a><var>67.8</var>percent times the district's taxable net tax capacity in 2011.<br/>
<a id="pl.67.9"></a><var>67.9</var>(2) Districts qualifying under paragraph (c) must receive additional taconite aid each <br/>
<a id="pl.67.10"></a><var>67.10</var>year equal to 22.5 percent of the amount obtained by subtracting:<br/>
<a id="pl.67.11"></a><var>67.11</var>(i) 1.8 percent of the district's net tax capacity for 2011, from:<br/>
<a id="pl.67.12"></a><var>67.12</var>(ii) the district's weighted average daily membership for fiscal year 2012, multiplied <br/>
<a id="pl.67.13"></a><var>67.13</var>by the sum of:<br/>
<a id="pl.67.14"></a><var>67.14</var>(A) $415, plus<br/>
<a id="pl.67.15"></a><var>67.15</var>(B) the district's referendum revenue allowance for fiscal year 2013.<br/>
<a id="pl.67.16"></a><var>67.16</var>    If the total amount provided by paragraph (d) is insufficient to make the payments <br/>
<a id="pl.67.17"></a><var>67.17</var>herein required then the entitlement of $175 per pupil unit shall be reduced uniformly <br/>
<a id="pl.67.18"></a><var>67.18</var>so as not to exceed the funds available. Any amounts received by a qualifying school <br/>
<a id="pl.67.19"></a><var>67.19</var>district in any fiscal year pursuant to paragraph (d) shall not be applied to reduce general <br/>
<a id="pl.67.20"></a><var>67.20</var>education aid which the district receives pursuant to section 
         <statute_ref>126C.13</statute_ref> or the permissible <br/>
<a id="pl.67.21"></a><var>67.21</var>levies of the district. Any amount remaining after the payments provided in this paragraph <br/>
<a id="pl.67.22"></a><var>67.22</var>shall be paid to the commissioner of Iron Range resources and rehabilitation who shall <br/>
<a id="pl.67.23"></a><var>67.23</var>deposit the same in the taconite environmental protection fund and the Douglas J. Johnson <br/>
<a id="pl.67.24"></a><var>67.24</var>economic protection trust fund as provided in subdivision 11.<br/>
<a id="pl.67.25"></a><var>67.25</var>    Each district receiving money according to this paragraph shall reserve the lesser of <br/>
<a id="pl.67.26"></a><var>67.26</var>the amount received under this paragraph or $25 times the number of pupil units served in <br/>
<a id="pl.67.27"></a><var>67.27</var>the district. It may use the money for early childhood programs.<br/>
<a id="pl.67.28"></a><var>67.28</var>    (e) There shall be distributed to any school district the amount which the school <br/>
<a id="pl.67.29"></a><var>67.29</var>district was entitled to receive under section 
         <statute_ref>298.32</statute_ref> in 1975.<br/>
<a id="pl.67.30"></a><var>67.30</var>    (f) Four 4.45 cents per taxable ton must be distributed to qualifying school districts <br/>
<a id="pl.67.31"></a><var>67.31</var>according to the distribution specified in paragraph (b), clause (ii), and 11 cents per <br/>
<a id="pl.67.32"></a><var>67.32</var>taxable ton must be distributed according to the distribution specified in paragraph (c). <br/>
<a id="pl.67.33"></a><var>67.33</var>These amounts are not subject to sections 
<statute_ref>126C.21, subdivision 4</statute_ref>, and
<statute_ref>section 126C.48, <br/>
<a id="pl.67.34"></a><var>67.34</var>subdivision 8
         </statute_ref>.<br/>
<a id="pl.67.35"></a><var>67.35</var><b>EFFECTIVE DATE.</b>This section is effective beginning for the 2015 distribution.<br/>
<br/>
<a id="bill.4.2.0"></a><a id="pl.68.1"></a><var>68.1</var>    Sec. 2. Minnesota Statutes 2012, section 298.28, subdivision 5, as amended by Laws <br/>
<a id="pl.68.2"></a><var>68.2</var>2014, chapter 150, article 6, section 11, is amended to read:<br/>
<a id="pl.68.3"></a><var>68.3</var>    Subd. 5. <b>Counties.</b> (a) 
         <statute_ref>21.05</statute_ref> 21.941 cents per taxable ton is allocated to counties to <br/>
<a id="pl.68.4"></a><var>68.4</var>be distributed, based upon certification by the commissioner of revenue, under paragraphs <br/>
<a id="pl.68.5"></a><var>68.5</var>(b) to (d).<br/>
<a id="pl.68.6"></a><var>68.6</var>    (b) 
         <statute_ref>10.525</statute_ref> cents per taxable ton shall be distributed to the county in which the <br/>
<a id="pl.68.7"></a><var>68.7</var>taconite is mined or quarried or in which the concentrate is produced, less any amount <br/>
<a id="pl.68.8"></a><var>68.8</var>which is to be distributed pursuant to paragraph (c). The apportionment formula prescribed <br/>
<a id="pl.68.9"></a><var>68.9</var>in subdivision 2 is the basis for the distribution.<br/>
<a id="pl.68.10"></a><var>68.10</var>    (c) If an electric power plant owned by and providing the primary source of power for <br/>
<a id="pl.68.11"></a><var>68.11</var>a taxpayer mining and concentrating taconite is located in a county other than the county <br/>
<a id="pl.68.12"></a><var>68.12</var>in which the mining and the concentrating processes are conducted, one cent per taxable <br/>
<a id="pl.68.13"></a><var>68.13</var>ton of the tax distributed to the counties pursuant to paragraph (b) and imposed on and <br/>
<a id="pl.68.14"></a><var>68.14</var>collected from such taxpayer shall be paid to the county in which the power plant is located.<br/>
<a id="pl.68.15"></a><var>68.15</var>    (d) 10.525 11.416 cents per taxable ton shall be paid to the county from which the <br/>
<a id="pl.68.16"></a><var>68.16</var>taconite was mined, quarried or concentrated to be deposited in the county road and <br/>
<a id="pl.68.17"></a><var>68.17</var>bridge fund. If the mining, quarrying and concentrating, or separate steps in any of those <br/>
<a id="pl.68.18"></a><var>68.18</var>processes are carried on in more than one county, the commissioner shall follow the <br/>
<a id="pl.68.19"></a><var>68.19</var>apportionment formula prescribed in subdivision 2.<br/>
<br/>
<a id="bill.4.3.0"></a><a id="pl.68.20"></a><var>68.20</var>    Sec. 3. Minnesota Statutes 2013, section 298.28, subdivision 7a, as added by Laws <br/>
<a id="pl.68.21"></a><var>68.21</var>2014, chapter 150, article 6, section 13, is amended to read:<br/>
<a id="pl.68.22"></a><var>68.22</var>    Subd. 7a. <b>Iron Range school consolidation and cooperatively operated school </b><br/>
<a id="pl.68.23"></a><var>68.23</var><b>account.</b> The following amounts must be allocated to the Iron Range Resources and <br/>
<a id="pl.68.24"></a><var>68.24</var>Rehabilitation Board to be deposited in the Iron Range school consolidation and <br/>
<a id="pl.68.25"></a><var>68.25</var>cooperatively operated school account that is hereby created:<br/>
<a id="pl.68.26"></a><var>68.26</var>(1) ten cents per taxable ton of the tax imposed under section 
         <statute_ref>298.24</statute_ref>;<br/>
<a id="pl.68.27"></a><var>68.27</var>(2) the amount as determined under section 
         <statute_ref>298.17</statute_ref>, paragraph (b), clause (3); and<br/>
<a id="pl.68.28"></a><var>68.28</var>(3) for distributions in 2015 through 2017, an amount equal to two-thirds of the <br/>
<a id="pl.68.29"></a><var>68.29</var>increased tax proceeds attributable to the increase in the implicit price deflator as provided <br/>
<a id="pl.68.30"></a><var>68.30</var>in section 
         <statute_ref>298.24, subdivision 1; and<br/>
</statute_ref><a id="pl.68.31"></a><var>68.31</var>(4) any other amount as provided by law.<br/>
<a id="pl.68.32"></a><var>68.32</var>Expenditures from this account shall be made only to provide disbursements to <br/>
<a id="pl.68.33"></a><var>68.33</var>assist school districts with the payment of bonds that were issued for qualified school <br/>
<a id="pl.68.34"></a><var>68.34</var>projects, or for any other school disbursement as approved by the Iron Range Resources <br/>
<a id="pl.68.35"></a><var>68.35</var>and Rehabilitation Board. For purposes of this section, "qualified school projects" means <br/>
<a id="pl.69.1"></a><var>69.1</var>school projects within the taconite assistance area as defined in section 
         <statute_ref>273.1341</statute_ref>, that were <br/>
<a id="pl.69.2"></a><var>69.2</var>(1) approved, by referendum, after December 7, 2009 April 3, 2006; and (2) approved by <br/>
<a id="pl.69.3"></a><var>69.3</var>the commissioner of education pursuant to section 
         <statute_ref>123B.71</statute_ref>.<br/>
<a id="pl.69.4"></a><var>69.4</var>No expenditure under this section shall be made unless approved by seven members <br/>
<a id="pl.69.5"></a><var>69.5</var>of the Iron Range Resources and Rehabilitation Board.<br/>
<a id="pl.69.6"></a><var>69.6</var><b>EFFECTIVE DATE.</b>This section is effective for production year 2014 and <br/>
<a id="pl.69.7"></a><var>69.7</var>thereafter.<br/>
<br/>
<a id="bill.4.4.0"></a><a id="pl.69.8"></a><var>69.8</var>    Sec. 4. Minnesota Statutes 2012, section 298.75, subdivision 2, is amended to read:<br/>
<a id="pl.69.9"></a><var>69.9</var>    Subd. 2. <b>Tax imposed.</b> (a) Except as provided in paragraph (e), a county that <br/>
<a id="pl.69.10"></a><var>69.10</var>imposes the aggregate production tax shall impose upon every operator a production tax <br/>
<a id="pl.69.11"></a><var>69.11</var>of 21.5 cents per cubic yard or 15 cents per ton of aggregate material excavated in the <br/>
<a id="pl.69.12"></a><var>69.12</var>county except that the county board may decide not to impose this tax if it determines <br/>
<a id="pl.69.13"></a><var>69.13</var>that in the previous year operators removed less than 20,000 tons or 14,000 cubic yards of <br/>
<a id="pl.69.14"></a><var>69.14</var>aggregate material from that county. The tax shall not be imposed on aggregate material <br/>
<a id="pl.69.15"></a><var>69.15</var>excavated in the county until the aggregate material is transported from the extraction site <br/>
<a id="pl.69.16"></a><var>69.16</var>or sold, whichever occurs first. When aggregate material is stored in a stockpile within the <br/>
<a id="pl.69.17"></a><var>69.17</var>state of Minnesota and a public highway, road or street is not used for transporting the <br/>
<a id="pl.69.18"></a><var>69.18</var>aggregate material, the tax shall not be imposed until either when the aggregate material <br/>
<a id="pl.69.19"></a><var>69.19</var>is sold, or when it is transported from the stockpile site, or when it is used from the <br/>
<a id="pl.69.20"></a><var>69.20</var>stockpile, whichever occurs first.<br/>
<a id="pl.69.21"></a><var>69.21</var>    (b) Except as provided in paragraph (e), a county that imposes the aggregate <br/>
<a id="pl.69.22"></a><var>69.22</var>production tax under paragraph (a) shall impose upon every importer a production tax <br/>
<a id="pl.69.23"></a><var>69.23</var>of 21.5 cents per cubic yard or 15 cents per ton of aggregate material imported into the <br/>
<a id="pl.69.24"></a><var>69.24</var>county. The tax shall be imposed when the aggregate material is imported from the <br/>
<a id="pl.69.25"></a><var>69.25</var>extraction site or sold. When imported aggregate material is stored in a stockpile within <br/>
<a id="pl.69.26"></a><var>69.26</var>the state of Minnesota and a public highway, road, or street is not used for transporting <br/>
<a id="pl.69.27"></a><var>69.27</var>the aggregate material, the tax shall be imposed either when the aggregate material is <br/>
<a id="pl.69.28"></a><var>69.28</var>sold, when it is transported from the stockpile site, or when it is used from the stockpile, <br/>
<a id="pl.69.29"></a><var>69.29</var>whichever occurs first. The tax shall be imposed on an importer when the aggregate <br/>
<a id="pl.69.30"></a><var>69.30</var>material is imported into the county that imposes the tax.<br/>
<a id="pl.69.31"></a><var>69.31</var>    (c) If the aggregate material is transported directly from the extraction site to a <br/>
<a id="pl.69.32"></a><var>69.32</var>waterway, railway, or another mode of transportation other than a highway, road or street, <br/>
<a id="pl.69.33"></a><var>69.33</var>the tax imposed by this section shall be apportioned equally between the county where the <br/>
<a id="pl.69.34"></a><var>69.34</var>aggregate material is extracted and the county to which the aggregate material is originally <br/>
<a id="pl.70.1"></a><var>70.1</var>transported. If that destination is not located in Minnesota, then the county where the <br/>
<a id="pl.70.2"></a><var>70.2</var>aggregate material was extracted shall receive all of the proceeds of the tax.<br/>
<a id="pl.70.3"></a><var>70.3</var>    (d) A county, city, or town that receives revenue under this section is prohibited <br/>
<a id="pl.70.4"></a><var>70.4</var>from imposing any additional host community fees on aggregate production within that <br/>
<a id="pl.70.5"></a><var>70.5</var>county, city, or town.<br/>
<a id="pl.70.6"></a><var>70.6</var>(e) A county that borders two other states and that is not contiguous to a county <br/>
<a id="pl.70.7"></a><var>70.7</var>that imposes a tax under this section may impose the taxes under paragraphs (a) and (b) <br/>
<a id="pl.70.8"></a><var>70.8</var>at the rate of ten cents per cubic yard or seven cents per ton. This paragraph expires <br/>
<a id="pl.70.9"></a><var>70.9</var>December 31, 2014 2019.<br/>
<a id="pl.70.10"></a><var>70.10</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.5.0"></a><a id="pl.70.11"></a><var>70.11</var>    Sec. 5. Laws 2008, chapter 366, article 10, section 15, is amended to read:<br/>
<a id="pl.70.12"></a><var>70.12</var>    Sec. 15. <b>2008 DISTRIBUTIONS ONLY.</b><br/>
<a id="pl.70.13"></a><var>70.13</var>    For distribution in 2008 only, a special fund is established to receive 11.4 cents per ton <br/>
<a id="pl.70.14"></a><var>70.14</var>that otherwise would be allocated under Minnesota Statutes, section 
         <statute_ref>298.28, subdivision 6</statute_ref>. <br/>
<a id="pl.70.15"></a><var>70.15</var>If sufficient funds are not available under Minnesota Statutes, section 
         <statute_ref>298.28, subdivision <br/>
<a id="pl.70.16"></a><var>70.16</var>6
         </statute_ref>, to make the payments required under this section and under Minnesota Statutes, section <br/>
<statute_ref><a id="pl.70.17"></a><var>70.17</var>298.28, subdivision 6
         </statute_ref>, the remaining amount needed to total 11.4 cents per ton may be <br/>
<a id="pl.70.18"></a><var>70.18</var>taken from funds available under Minnesota Statutes, section 
         <statute_ref>298.28, subdivision 9</statute_ref>. If <br/>
<a id="pl.70.19"></a><var>70.19</var>2008 H.F. No. 1812 is enacted and includes a provision that distributes funds that would <br/>
<a id="pl.70.20"></a><var>70.20</var>otherwise be allocated under Minnesota Statutes, section 
         <statute_ref>298.28, subdivision 6</statute_ref>, in a <br/>
<a id="pl.70.21"></a><var>70.21</var>manner different from the distribution required in this section, the distribution in this <br/>
<a id="pl.70.22"></a><var>70.22</var>section supersedes the distribution set in 2008 H.F. No. 1812 notwithstanding Minnesota <br/>
<a id="pl.70.23"></a><var>70.23</var>Statutes, section 
         <statute_ref>645.26</statute_ref>. The following amounts are allocated to St. Louis County acting <br/>
<a id="pl.70.24"></a><var>70.24</var>as the fiscal agent for the recipients for the following specified purposes:<br/>
<a id="pl.70.25"></a><var>70.25</var>    (1) two cents per ton must be paid to the Hibbing Economic Development Authority <br/>
<a id="pl.70.26"></a><var>70.26</var>to retire bonds and for economic development purposes;<br/>
<a id="pl.70.27"></a><var>70.27</var>    (2) one cent per ton must be divided among and paid in equal shares to each of the <br/>
<a id="pl.70.28"></a><var>70.28</var>board of St. Louis County School District No. 2142, the board of Ely School District No. <br/>
<a id="pl.70.29"></a><var>70.29</var>696, the board of Mountain Iron-Buhl School District No. 712, and the board of Virginia <br/>
<a id="pl.70.30"></a><var>70.30</var>School District No. 706 for each to study the potential for and impact of consolidation <br/>
<a id="pl.70.31"></a><var>70.31</var>and streamlining the operations of their school districts;<br/>
<a id="pl.70.32"></a><var>70.32</var>    (3) 0.25 cent per ton must be paid to the city of Grand Rapids, for industrial park work;<br/>
<a id="pl.70.33"></a><var>70.33</var>    (4) 0.65 cent per ton must be paid to the city of Aitkin, for sewer and water for <br/>
<a id="pl.70.34"></a><var>70.34</var>housing economic development projects;<br/>
<a id="pl.71.1"></a><var>71.1</var>    (5) 0.5 cent per ton must be paid to the city of Crosby, for well and water tower <br/>
<a id="pl.71.2"></a><var>71.2</var>infrastructure;<br/>
<a id="pl.71.3"></a><var>71.3</var>    (6) 0.5 cent per ton must be paid to the city of Two Harbors, for well and water <br/>
<a id="pl.71.4"></a><var>71.4</var>tower infrastructure;<br/>
<a id="pl.71.5"></a><var>71.5</var>    (7) 1.5 cents per ton must be paid to the city of Silver Bay to pay for health and <br/>
<a id="pl.71.6"></a><var>71.6</var>safety and maintenance improvements at a former elementary school building that is <br/>
<a id="pl.71.7"></a><var>71.7</var>currently owned by the city, to be used for economic development purposes;<br/>
<a id="pl.71.8"></a><var>71.8</var>    (8) 1.5 cents per ton must be paid to St. Louis County to extend water and sewer <br/>
<a id="pl.71.9"></a><var>71.9</var>lines from the city of Chisholm to the St. Louis County fairgrounds;<br/>
<a id="pl.71.10"></a><var>71.10</var>    (9) 1.5 cents per ton must be paid to the White Community Hospital for debt <br/>
<a id="pl.71.11"></a><var>71.11</var>restructuring;<br/>
<a id="pl.71.12"></a><var>71.12</var>    (10) 0.5 cent per ton must be paid to the city of Keewatin for street, sewer, and <br/>
<a id="pl.71.13"></a><var>71.13</var>water improvements;<br/>
<a id="pl.71.14"></a><var>71.14</var>    (11) 0.5 cent per ton must be paid to the city of Calumet for street, sewer, and water <br/>
<a id="pl.71.15"></a><var>71.15</var>improvements; and<br/>
<a id="pl.71.16"></a><var>71.16</var>    (12) one cent per ton must be paid to Breitung township for sewer and water <br/>
<a id="pl.71.17"></a><var>71.17</var>extensions associated with the development of a state park, provided that if a new state <br/>
<a id="pl.71.18"></a><var>71.18</var>park is not established in Breitung township by July 1, 2009, the money provided in <br/>
<a id="pl.71.19"></a><var>71.19</var>this clause must be transferred to the northeast Minnesota economic development fund <br/>
<a id="pl.71.20"></a><var>71.20</var>established in Minnesota Statutes, section 
         <statute_ref>298.2213</statute_ref>.<br/>
<a id="pl.71.21"></a><var>71.21</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment. <br/>
<a id="pl.71.22"></a><var>71.22</var>Upon enactment, the city of Aitkin must release all funds under this section to St. Louis <br/>
<a id="pl.71.23"></a><var>71.23</var>County acting as fiscal agent by July 1, 2014.<br/>
<br/>
<a id="bill.4.6.0"></a><a id="pl.71.24"></a><var>71.24</var>    Sec. 6. Laws 2013, chapter 143, article 11, section 10, is amended to read:<br/>
<a id="pl.71.25"></a><var>71.25</var>    Sec. 10. <b>2013 DISTRIBUTION ONLY.</b><br/>
<a id="pl.71.26"></a><var>71.26</var>For the 2013 distribution, a special fund is established to receive 38.7 cents per ton of <br/>
<a id="pl.71.27"></a><var>71.27</var>any excess of the balance remaining after distribution of amounts required under Minnesota <br/>
<a id="pl.71.28"></a><var>71.28</var>Statutes, section 
         <statute_ref>298.28, subdivision 6</statute_ref>. The following amounts are allocated to St. Louis <br/>
<a id="pl.71.29"></a><var>71.29</var>County acting as the fiscal agent for the recipients for the following specific purposes:<br/>
<a id="pl.71.30"></a><var>71.30</var>(1) 5.1 cents per ton to the city of Hibbing for improvements to the city's water <br/>
<a id="pl.71.31"></a><var>71.31</var>supply system;<br/>
<a id="pl.71.32"></a><var>71.32</var>(2) 4.3 cents per ton to the city of Mountain Iron for the cost of moving utilities <br/>
<a id="pl.71.33"></a><var>71.33</var>required as a result of actions undertaken by United States Steel Corporation;<br/>
<a id="pl.71.34"></a><var>71.34</var>(3) 2.5 cents per ton to the city of Biwabik for improvements to the city's water supply <br/>
<a id="pl.71.35"></a><var>71.35</var>system, payable upon agreement with ArcelorMittal to satisfy water permit conditions;<br/>
<a id="pl.72.1"></a><var>72.1</var>(4) 2 cents per ton to the city of Tower for the Tower Marina;<br/>
<a id="pl.72.2"></a><var>72.2</var>(5) 2.4 cents per ton to the city of Grand Rapids for an eco-friendly heat transfer <br/>
<a id="pl.72.3"></a><var>72.3</var>system to replace aging effluent lines and for parking lot repaving;<br/>
<a id="pl.72.4"></a><var>72.4</var>(6) 2.4 cents per ton to the city of Two Harbors for wastewater treatment plant <br/>
<a id="pl.72.5"></a><var>72.5</var>improvements;<br/>
<a id="pl.72.6"></a><var>72.6</var>(7) 0.9 cents per ton to the city of Ely for the sanitary sewer replacement project;<br/>
<a id="pl.72.7"></a><var>72.7</var>(8) 0.6 cents per ton to the town of Crystal Bay for debt service of the Claire Nelson <br/>
<a id="pl.72.8"></a><var>72.8</var>Intermodal Transportation Center;<br/>
<a id="pl.72.9"></a><var>72.9</var>(9) 0.5 cents per ton to the Greenway Joint Recreation Board for the Coleraine <br/>
<a id="pl.72.10"></a><var>72.10</var>hockey arena renovations;<br/>
<a id="pl.72.11"></a><var>72.11</var>(10) 1.2 cents per ton for the West Range Regional Fire Hall and Training Center <br/>
<a id="pl.72.12"></a><var>72.12</var>to merge the existing fire services of Coleraine, Bovey, Taconite Marble, Calumet, and <br/>
<a id="pl.72.13"></a><var>72.13</var>Greenway Township;<br/>
<a id="pl.72.14"></a><var>72.14</var>(11) 2.5 cents per ton to the city of Hibbing for the Memorial Building;<br/>
<a id="pl.72.15"></a><var>72.15</var>(12) 0.7 cents per ton to the city of Chisholm for public works infrastructure;<br/>
<a id="pl.72.16"></a><var>72.16</var>(13) 1.8 cents per ton to the Crane Lake Water and Sanitary District for sanitary <br/>
<a id="pl.72.17"></a><var>72.17</var>sewer extension;<br/>
<a id="pl.72.18"></a><var>72.18</var>(14) 2.5 cents per ton for the city of Buhl for the roof on the Mesabi Academy;<br/>
<a id="pl.72.19"></a><var>72.19</var>(15) 1.2 cents per ton to the city of Gilbert for the New Jersey/Ohio Avenue project;<br/>
<a id="pl.72.20"></a><var>72.20</var>(16) 1.5 2.0 cents per ton to the city of Cook for street improvements, business park <br/>
<a id="pl.72.21"></a><var>72.21</var>infrastructure, and a maintenance garage;<br/>
<a id="pl.72.22"></a><var>72.22</var>(17) 0.5 cents per ton to the city of Cook for a water line project;<br/>
<a id="pl.72.23"></a><var>72.23</var>(18) (17) 1.8 cents per ton to the city of Eveleth to be used for Jones Street <br/>
<a id="pl.72.24"></a><var>72.24</var>reconstruction and the city auditorium;<br/>
<a id="pl.72.25"></a><var>72.25</var>(19) (18) 0.5 cents per ton for the city of Keewatin for an electrical substation and <br/>
<a id="pl.72.26"></a><var>72.26</var>water line replacements;<br/>
<a id="pl.72.27"></a><var>72.27</var>(20) (19) 3.3 cents per ton for the city of Virginia for Fourth Street North <br/>
<a id="pl.72.28"></a><var>72.28</var>infrastructure and Franklin Park improvement; and<br/>
<a id="pl.72.29"></a><var>72.29</var>(21) (20) 0.5 cents per ton to the city of Grand Rapids for an economic development <br/>
<a id="pl.72.30"></a><var>72.30</var>project.<br/>
<a id="pl.72.31"></a><var>72.31</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.7.0"></a><a id="pl.72.32"></a><var>72.32</var>    Sec. 7. <b>REALLOCATION OF BOND PAYMENTS.</b><br/>
<a id="pl.72.33"></a><var>72.33</var>In each year subsequent to the year in which the following appropriations terminate <br/>
<a id="pl.72.34"></a><var>72.34</var>under their terms, an amount equal to the amount payable in 2013 based upon 2012 <br/>
<a id="pl.72.35"></a><var>72.35</var>production of the terminating appropriation is appropriated from the same sources listed <br/>
<a id="pl.73.1"></a><var>73.1</var>in this section to the Iron Range school consolidation and cooperatively operated school <br/>
<a id="pl.73.2"></a><var>73.2</var>account under Laws 2014, chapter 150, article 6, section 13:<br/>
<a id="pl.73.3"></a><var>73.3</var>(1) Laws 1996, chapter 412, article 5, section 21, subdivision 3, appropriation for <br/>
<a id="pl.73.4"></a><var>73.4</var>bonds of Independent School District No. 166, Cook County;<br/>
<a id="pl.73.5"></a><var>73.5</var>(2) Laws 1996, chapter 412, article 5, section 20, subdivision 2, appropriation for <br/>
<a id="pl.73.6"></a><var>73.6</var>bonds of Independent School District No. 696, Ely;<br/>
<a id="pl.73.7"></a><var>73.7</var>(3) Laws 1996, chapter 412, article 5, section 20, subdivision 2, appropriation for <br/>
<a id="pl.73.8"></a><var>73.8</var>bonds of Independent School District No. 706, Virginia:<br/>
<a id="pl.73.9"></a><var>73.9</var>(4) Laws 1996, chapter 412, article 5, section 20, subdivision 2, appropriation for <br/>
<a id="pl.73.10"></a><var>73.10</var>bonds of Independent School District No. 2154, Eveleth-Gilbert;<br/>
<a id="pl.73.11"></a><var>73.11</var>(5) Laws 1998, chapter 398, article 4, section 17, subdivision 2, appropriation for <br/>
<a id="pl.73.12"></a><var>73.12</var>bonds of Independent School District No. 712, Mountain Iron-Buhl;<br/>
<a id="pl.73.13"></a><var>73.13</var>(6) Laws 2000, chapter 489, article 5, section 24, subdivision 1, appropriation for <br/>
<a id="pl.73.14"></a><var>73.14</var>bonds of Independent School District No. 695, Chisholm;<br/>
<a id="pl.73.15"></a><var>73.15</var>(7) Laws 2000, chapter 489, article 5, section 25, subdivision 1, appropriation for <br/>
<a id="pl.73.16"></a><var>73.16</var>bonds of Independent School District No. 316, Greenway-Coleraine;<br/>
<a id="pl.73.17"></a><var>73.17</var>(8) Laws 2000, chapter 489, article 5, section 26, subdivision 1, appropriation for <br/>
<a id="pl.73.18"></a><var>73.18</var>bonds of Independent School District No. 381, Lake Superior; and<br/>
<a id="pl.73.19"></a><var>73.19</var>(9) Laws 2008, chapter 154, article 8, section 18, appropriation for bonds of <br/>
<a id="pl.73.20"></a><var>73.20</var>Independent School District No. 2711, Mesabi East.<br/>
<a id="pl.73.21"></a><var>73.21</var><b>EFFECTIVE DATE.</b>This section is effective beginning with the distribution <br/>
<a id="pl.73.22"></a><var>73.22</var>in 2015.<br/>
<br/>
<a id="bill.5.0.0"></a>

<a id="bill.5.1.0"></a><a id="pl.73.25"></a><var>73.25</var>    Section 1. Minnesota Statutes 2012, section 469.1763, subdivision 3, is amended to read:<br/>
<a id="pl.73.26"></a><var>73.26</var>    Subd. 3. <b>Five-year rule.</b> (a) Revenues derived from tax increments are considered <br/>
<a id="pl.73.27"></a><var>73.27</var>to have been expended on an activity within the district under subdivision 2 only if one <br/>
<a id="pl.73.28"></a><var>73.28</var>of the following occurs:<br/>
<a id="pl.73.29"></a><var>73.29</var>(1) before or within five years after certification of the district, the revenues are <br/>
<a id="pl.73.30"></a><var>73.30</var>actually paid to a third party with respect to the activity;<br/>
<a id="pl.73.31"></a><var>73.31</var>(2) bonds, the proceeds of which must be used to finance the activity, are issued and <br/>
<a id="pl.73.32"></a><var>73.32</var>sold to a third party before or within five years after certification, the revenues are spent <br/>
<a id="pl.73.33"></a><var>73.33</var>to repay the bonds, and the proceeds of the bonds either are, on the date of issuance, <br/>
<a id="pl.73.34"></a><var>73.34</var>reasonably expected to be spent before the end of the later of (i) the five-year period, or <br/>
<a id="pl.74.1"></a><var>74.1</var>(ii) a reasonable temporary period within the meaning of the use of that term under section <br/>
<a id="pl.74.2"></a><var>74.2</var>148(c)(1) of the Internal Revenue Code, or are deposited in a reasonably required reserve <br/>
<a id="pl.74.3"></a><var>74.3</var>or replacement fund;<br/>
<a id="pl.74.4"></a><var>74.4</var>(3) binding contracts with a third party are entered into for performance of the <br/>
<a id="pl.74.5"></a><var>74.5</var>activity before or within five years after certification of the district and the revenues are <br/>
<a id="pl.74.6"></a><var>74.6</var>spent under the contractual obligation;<br/>
<a id="pl.74.7"></a><var>74.7</var>(4) costs with respect to the activity are paid before or within five years after <br/>
<a id="pl.74.8"></a><var>74.8</var>certification of the district and the revenues are spent to reimburse a party for payment <br/>
<a id="pl.74.9"></a><var>74.9</var>of the costs, including interest on unreimbursed costs; or<br/>
<a id="pl.74.10"></a><var>74.10</var>(5) expenditures are made for housing purposes as permitted by subdivision 2, <br/>
<a id="pl.74.11"></a><var>74.11</var>paragraphs (b) and (d), or for public infrastructure purposes within a zone as permitted <br/>
<a id="pl.74.12"></a><var>74.12</var>by subdivision 2, paragraph (e).<br/>
<a id="pl.74.13"></a><var>74.13</var>(b) For purposes of this subdivision, bonds include subsequent refunding bonds if <br/>
<a id="pl.74.14"></a><var>74.14</var>the original refunded bonds meet the requirements of paragraph (a), clause (2).<br/>
<a id="pl.74.15"></a><var>74.15</var>(c) For a redevelopment district or a renewal and renovation district certified after <br/>
<a id="pl.74.16"></a><var>74.16</var>June 30, 2003, and before April 20, 2009, the five-year periods described in paragraph (a) <br/>
<a id="pl.74.17"></a><var>74.17</var>are extended to ten years after certification of the district. For a redevelopment district <br/>
<a id="pl.74.18"></a><var>74.18</var>certified after April 20, 2009, and before June 30, 2013, the five-year periods described in <br/>
<a id="pl.74.19"></a><var>74.19</var>paragraph (a) are extended to eight years after certification of the district. This extension is <br/>
<a id="pl.74.20"></a><var>74.20</var>provided primarily to accommodate delays in development activities due to unanticipated <br/>
<a id="pl.74.21"></a><var>74.21</var>economic circumstances.<br/>
<a id="pl.74.22"></a><var>74.22</var><b>EFFECTIVE DATE.</b>This section is effective for districts for which the request for <br/>
<a id="pl.74.23"></a><var>74.23</var>certification was made after April 20, 2009.<br/>
<br/>
<a id="bill.5.2.0"></a><a id="pl.74.24"></a><var>74.24</var>    Sec. 2. Laws 2013, chapter 143, article 9, section 23, is amended to read:<br/>
<a id="pl.74.25"></a><var>74.25</var>    Sec. 23. <b>CITY OF BLOOMINGTON; OLD CEDAR AVENUE BRIDGE.</b><br/>
<a id="pl.74.26"></a><var>74.26</var>    (a) Notwithstanding any law to the contrary, the city of Bloomington shall transfer <br/>
<a id="pl.74.27"></a><var>74.27</var>from the tax increment financing accounts for its Tax Increment Financing District No. <br/>
<a id="pl.74.28"></a><var>74.28</var>1-C and Tax Increment Financing District No. 1-G an amount equal to the tax increment <br/>
<a id="pl.74.29"></a><var>74.29</var>for each district that is computed under the provisions of Minnesota Statutes, section <br/>
<statute_ref><a id="pl.74.30"></a><var>74.30</var>473F.08, subdivision 3c
         </statute_ref>, for taxes payable in 2014 to an account or fund established for <br/>
<a id="pl.74.31"></a><var>74.31</var>the repair, restoration, or replacement of the Old Cedar Avenue bridge for use by bicycle <br/>
<a id="pl.74.32"></a><var>74.32</var>commuters and recreational users. The city is authorized to and must use the transferred <br/>
<a id="pl.74.33"></a><var>74.33</var>funds to complete the repair, renovation, or replacement of the bridge. Upon completion <br/>
<a id="pl.74.34"></a><var>74.34</var>of the repair, renovation, or replacement of the bridge, the city may use any remaining <br/>
<a id="pl.75.1"></a><var>75.1</var>funds in the account for costs of improving bicycle and pedestrian trails that access the <br/>
<a id="pl.75.2"></a><var>75.2</var>bridge and that use is deemed to be a permitted use of the increments.<br/>
<a id="pl.75.3"></a><var>75.3</var>    (b) No signs, plaques, or markers acknowledging or crediting donations for, <br/>
<a id="pl.75.4"></a><var>75.4</var>sponsorships of, or naming rights may be posted on or in the vicinity of the Old Cedar <br/>
<a id="pl.75.5"></a><var>75.5</var>Avenue bridge.<br/>
<a id="pl.75.6"></a><var>75.6</var><b>EFFECTIVE DATE.</b>This section is effective without local approval under <br/>
<a id="pl.75.7"></a><var>75.7</var>Minnesota Statutes, section 645.023, subdivision 1, paragraph (a).<br/>
<br/>
<a id="bill.5.3.0"></a><a id="pl.75.8"></a><var>75.8</var>    Sec. 3. <b>CITY OF BAXTER; TAX INCREMENT FINANCING DISTRICT; </b><br/>
<a id="pl.75.9"></a><var>75.9</var><b>PROJECT REQUIREMENT.</b><br/>
<a id="pl.75.10"></a><var>75.10</var>    Subdivision 1. <b>Addition of parcels to district.</b> Notwithstanding Minnesota <br/>
<a id="pl.75.11"></a><var>75.11</var>Statutes, sections 469.174, subdivision 12; 469.176, subdivision 4c; or any other law to <br/>
<a id="pl.75.12"></a><var>75.12</var>the contrary, the governing body of the city of Baxter may elect to expand the boundaries <br/>
<a id="pl.75.13"></a><var>75.13</var>of Isle Drive Tax Increment Financing District to include the real property described as tax <br/>
<a id="pl.75.14"></a><var>75.14</var>parcel number 034120010010009 in the city of Baxter, Crow Wing County, Minnesota.<br/>
<a id="pl.75.15"></a><var>75.15</var>    Subd. 2. <b>Original tax capacity of district.</b> Upon addition of the property described <br/>
<a id="pl.75.16"></a><var>75.16</var>in subdivision 1 to the Isle Drive Tax Increment Financing District, the Crow Wing <br/>
<a id="pl.75.17"></a><var>75.17</var>County auditor shall increase the original tax capacity of Isle Drive Tax Increment <br/>
<a id="pl.75.18"></a><var>75.18</var>Financing District by the amount required by Minnesota Statutes, section 469.177, except <br/>
<a id="pl.75.19"></a><var>75.19</var>as provided in subdivision 3.<br/>
<a id="pl.75.20"></a><var>75.20</var>    Subd. 3. <b>Prior planned improvements.</b> Minnesota Statutes, section 469.177, <br/>
<a id="pl.75.21"></a><var>75.21</var>subdivision 4, does not apply to the property described in subdivision 1 added to the Isle <br/>
<a id="pl.75.22"></a><var>75.22</var>Drive Tax Increment Financing District.<br/>
<a id="pl.75.23"></a><var>75.23</var>    Subd. 4. <b>Use of increments.</b> Tax increments and other revenues derived from any <br/>
<a id="pl.75.24"></a><var>75.24</var>portion of Isle Drive Tax Increment Financing District, as expanded under this section, <br/>
<a id="pl.75.25"></a><var>75.25</var>may be used to reimburse or otherwise pay for allowable expenditures under the plan <br/>
<a id="pl.75.26"></a><var>75.26</var>budget for Isle Drive Tax Increment Financing District, as amended in accordance with <br/>
<a id="pl.75.27"></a><var>75.27</var>Minnesota Statutes, section 469.175, subdivision 4.<br/>
<a id="pl.75.28"></a><var>75.28</var>    Subd. 5. <b>Approval and effect of modification.</b> If the governing body of the <br/>
<a id="pl.75.29"></a><var>75.29</var>city elects to exercise the authority provided in subdivision 1 to modify the district, the <br/>
<a id="pl.75.30"></a><var>75.30</var>following conditions apply:<br/>
<a id="pl.75.31"></a><var>75.31</var>(1) the city must comply with Minnesota Statutes, section 469.175, subdivision 4; and<br/>
<a id="pl.75.32"></a><var>75.32</var>(2) beginning with the subsequent calendar year, except as otherwise provided <br/>
<a id="pl.75.33"></a><var>75.33</var>in this section, the district is subject to the provisions of Minnesota Statutes, sections <br/>
<a id="pl.75.34"></a><var>75.34</var>469.174 to 469.1794, as if the request for certification of the entire district was made on <br/>
<a id="pl.76.1"></a><var>76.1</var>December 30, 2011, the date the original request for certification for the Isle Drive Tax <br/>
<a id="pl.76.2"></a><var>76.2</var>Increment Financing District was made.<br/>
<a id="pl.76.3"></a><var>76.3</var><b>EFFECTIVE DATE.</b>This section is effective upon approval by the governing body <br/>
<a id="pl.76.4"></a><var>76.4</var>of the city of Baxter and upon compliance by the city with Minnesota Statutes, section <br/>
<a id="pl.76.5"></a><var>76.5</var>645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.5.4.0"></a><a id="pl.76.6"></a><var>76.6</var>    Sec. 4. <b>CITY OF EAGAN; TAX INCREMENT FINANCING.</b><br/>
<a id="pl.76.7"></a><var>76.7</var>Notwithstanding the provisions of Minnesota Statutes, section 469.176, subdivision <br/>
<a id="pl.76.8"></a><var>76.8</var>1b, or any other law to the contrary, the city of Eagan may collect tax increment from the <br/>
<a id="pl.76.9"></a><var>76.9</var>Cedar Grove Tax Increment Financing District through December 31, 2039.<br/>
<a id="pl.76.10"></a><var>76.10</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance by the governing <br/>
<a id="pl.76.11"></a><var>76.11</var>bodies of the city of Eagan, Dakota County, and Independent School District No. 191 with <br/>
<a id="pl.76.12"></a><var>76.12</var>the requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and 645.021, <br/>
<a id="pl.76.13"></a><var>76.13</var>subdivision 3.<br/>
<br/>
<a id="bill.5.5.0"></a><a id="pl.76.14"></a><var>76.14</var>    Sec. 5. <b>CITY OF EDINA; TAX INCREMENT FINANCING.</b><br/>
<a id="pl.76.15"></a><var>76.15</var>    Subdivision 1. <b>Authority to create districts.</b> (a) The governing body of the city of <br/>
<a id="pl.76.16"></a><var>76.16</var>Edina or its development authority may establish one or more tax increment financing <br/>
<a id="pl.76.17"></a><var>76.17</var>housing districts in the Southeast Edina Redevelopment Project Area, as the boundaries <br/>
<a id="pl.76.18"></a><var>76.18</var>exist on March 31, 2014.<br/>
<a id="pl.76.19"></a><var>76.19</var>(b) The authority to request certification of districts under this authority expires <br/>
<a id="pl.76.20"></a><var>76.20</var>on June 30, 2017.<br/>
<a id="pl.76.21"></a><var>76.21</var>    Subd. 2. <b>Rules governing districts.</b> (a) Housing districts established under this <br/>
<a id="pl.76.22"></a><var>76.22</var>section are subject to the provisions of Minnesota Statutes, sections 469.174 to 469.1794, <br/>
<a id="pl.76.23"></a><var>76.23</var>except as otherwise provided in this subdivision.<br/>
<a id="pl.76.24"></a><var>76.24</var>(b) Notwithstanding the provisions of Minnesota Statutes, section 469.176, <br/>
<a id="pl.76.25"></a><var>76.25</var>subdivision 1b, no increment must be paid to the authority after 20 years after receipt by <br/>
<a id="pl.76.26"></a><var>76.26</var>the authority of the first increment from a district established under this section.<br/>
<a id="pl.76.27"></a><var>76.27</var>(c) Notwithstanding the provisions of Minnesota Statutes, section 469.1761, <br/>
<a id="pl.76.28"></a><var>76.28</var>subdivision 3, for a residential rental project the city may elect to substitute "20 percent" <br/>
<a id="pl.76.29"></a><var>76.29</var>for "40 percent" in the 40-60 test under section 142(d)(1)(B) of the Internal Revenue Code <br/>
<a id="pl.76.30"></a><var>76.30</var>in determining the applicable income limits.<br/>
<a id="pl.76.31"></a><var>76.31</var>    Subd. 3. <b>Pooling authority.</b> The city may elect, in the tax increment financing <br/>
<a id="pl.76.32"></a><var>76.32</var>plan for the district, to increase by up to 15 percentage points the permitted amount of <br/>
<a id="pl.76.33"></a><var>76.33</var>expenditures for activities located outside the geographic area of the district.<br/>
<a id="pl.77.1"></a><var>77.1</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance by the governing <br/>
<a id="pl.77.2"></a><var>77.2</var>body of the city of Edina with the requirements of Minnesota Statutes, section 645.021, <br/>
<a id="pl.77.3"></a><var>77.3</var>subdivisions 2 and 3.<br/>
<br/>
<a id="bill.5.6.0"></a><a id="pl.77.4"></a><var>77.4</var>    Sec. 6. <b>CITY OF MAPLE GROVE; TAX INCREMENT FINANCING DISTRICT.</b><br/>
<a id="pl.77.5"></a><var>77.5</var>    Subdivision 1. <b>Definitions.</b> (a) For the purposes of this section, the following terms <br/>
<a id="pl.77.6"></a><var>77.6</var>have the meanings given to them.<br/>
<a id="pl.77.7"></a><var>77.7</var>(b) "City" means the city of Maple Grove.<br/>
<a id="pl.77.8"></a><var>77.8</var>(c) "Project area" means the area in the city commencing at a point 130 feet East and <br/>
<a id="pl.77.9"></a><var>77.9</var>120 feet North of the southwest corner of the Southeast Quarter of Section 23, Township <br/>
<a id="pl.77.10"></a><var>77.10</var>119, Range 22, Hennepin County, said point being on the easterly right-of-way line of <br/>
<a id="pl.77.11"></a><var>77.11</var>Hemlock Lane; thence northerly along said easterly right-of-way line of Hemlock Lane <br/>
<a id="pl.77.12"></a><var>77.12</var>a distance of 900 feet; thence easterly to the east line of Section 23, 1,030 feet North <br/>
<a id="pl.77.13"></a><var>77.13</var>from the southeast corner thereof; thence South 74 degrees East 1,285 feet; thence East <br/>
<a id="pl.77.14"></a><var>77.14</var>a distance of 1,000 feet; thence North 59 degrees West a distance of 650 feet; thence <br/>
<a id="pl.77.15"></a><var>77.15</var>northerly to a point on the northerly right-of-way line of 81st Avenue North, 650 feet <br/>
<a id="pl.77.16"></a><var>77.16</var>westerly measured at right angles, from the east line of the Northwest Quarter of Section <br/>
<a id="pl.77.17"></a><var>77.17</var>24; thence North 13 degrees West a distance of 795 feet; thence West to the west line of <br/>
<a id="pl.77.18"></a><var>77.18</var>the Southeast Quarter of the Northwest Quarter of Section 24; thence North 55 degrees <br/>
<a id="pl.77.19"></a><var>77.19</var>West to the south line of the Northwest Quarter of the Northwest Quarter of Section 24; <br/>
<a id="pl.77.20"></a><var>77.20</var>thence West along said south line to the east right-of-way line of Zachary Lane; thence <br/>
<a id="pl.77.21"></a><var>77.21</var>North along the east right-of-way line of Zachary Lane to the southwest corner of Lot 1, <br/>
<a id="pl.77.22"></a><var>77.22</var>Block 1, Metropolitan Industrial Park 5th Addition; thence East along the south line of <br/>
<a id="pl.77.23"></a><var>77.23</var>said Lot 1 to the northeast corner of Outlot A, Metropolitan Industrial Park 5th Addition; <br/>
<a id="pl.77.24"></a><var>77.24</var>thence South along the east line of said Outlot A and its southerly extension to the south <br/>
<a id="pl.77.25"></a><var>77.25</var>right-of-way line of County State-Aid Highway (CSAH) 109; thence easterly along the <br/>
<a id="pl.77.26"></a><var>77.26</var>south right-of-way line of CSAH 109 to the east line of the Northwest Quarter of the <br/>
<a id="pl.77.27"></a><var>77.27</var>Northeast Quarter of Section 24; thence South along said east line to the north line of the <br/>
<a id="pl.77.28"></a><var>77.28</var>South Half of the Northeast Quarter of Section 24; thence East along said north line to <br/>
<a id="pl.77.29"></a><var>77.29</var>the westerly right-of-way line of Jefferson Highway North; thence southerly along the <br/>
<a id="pl.77.30"></a><var>77.30</var>westerly right-of-way line of Jefferson Highway to the centerline of CSAH 130; thence <br/>
<a id="pl.77.31"></a><var>77.31</var>continuing South along the west right-of-way line of Pilgrim Lane North to the westerly <br/>
<a id="pl.77.32"></a><var>77.32</var>extension of the north line of Outlot A, Park North Fourth Addition; thence easterly <br/>
<a id="pl.77.33"></a><var>77.33</var>along the north line of Outlot A, Park North Fourth Addition to the northeast corner <br/>
<a id="pl.77.34"></a><var>77.34</var>of said Outlot A; thence southerly along the east line of said Outlot A to the southeast <br/>
<a id="pl.77.35"></a><var>77.35</var>corner of said Outlot A; thence easterly along the south line of Lot 1, Block 1, Park <br/>
<a id="pl.78.1"></a><var>78.1</var>North Fourth Addition to the westerly right-of-way line of State Highway 169; thence <br/>
<a id="pl.78.2"></a><var>78.2</var>southerly, southwesterly, westerly, and northwesterly along the westerly right-of-way <br/>
<a id="pl.78.3"></a><var>78.3</var>line of State Highway 169 and the northerly right-of-way line of Interstate 694 to its <br/>
<a id="pl.78.4"></a><var>78.4</var>intersection with the southerly extension of the easterly right-of-way line of Zachary Lane <br/>
<a id="pl.78.5"></a><var>78.5</var>North; thence northerly along the easterly right-of-way line of Zachary Lane North and <br/>
<a id="pl.78.6"></a><var>78.6</var>its northerly extension to the north right-of-way line of CSAH 130; thence westerly, <br/>
<a id="pl.78.7"></a><var>78.7</var>southerly, northerly, southwesterly, and northwesterly to the point of beginning and there <br/>
<a id="pl.78.8"></a><var>78.8</var>terminating, provided that the project area includes the rights-of-way for all present and <br/>
<a id="pl.78.9"></a><var>78.9</var>future highway interchanges abutting the area described in this paragraph.<br/>
<a id="pl.78.10"></a><var>78.10</var>(d) "Soil deficiency district" means a type of tax increment financing district <br/>
<a id="pl.78.11"></a><var>78.11</var>consisting of a portion of the project area in which the city finds by resolution that the <br/>
<a id="pl.78.12"></a><var>78.12</var>following conditions exist:<br/>
<a id="pl.78.13"></a><var>78.13</var>(1) unusual terrain or soil deficiencies that occurred over 80 percent of the acreage in <br/>
<a id="pl.78.14"></a><var>78.14</var>the district require substantial filling, grading, or other physical preparation for use; and<br/>
<a id="pl.78.15"></a><var>78.15</var>(2) the estimated cost of the physical preparation under clause (1), but excluding <br/>
<a id="pl.78.16"></a><var>78.16</var>costs directly related to roads as defined in Minnesota Statutes, section 160.01, and <br/>
<a id="pl.78.17"></a><var>78.17</var>local improvements as described in Minnesota Statutes, sections 429.021, subdivision 1, <br/>
<a id="pl.78.18"></a><var>78.18</var>clauses (1) to (7), (11), and (12), and 430.01, exceeds the fair market value of the land <br/>
<a id="pl.78.19"></a><var>78.19</var>before completion of the preparation.<br/>
<a id="pl.78.20"></a><var>78.20</var>    Subd. 2. <b>Special rules.</b> (a) If the city elects, upon the adoption of the tax increment <br/>
<a id="pl.78.21"></a><var>78.21</var>financing plan for a district, the rules under this section apply to a redevelopment <br/>
<a id="pl.78.22"></a><var>78.22</var>district, renewal and renovation district, soil condition district, or soil deficiency district <br/>
<a id="pl.78.23"></a><var>78.23</var>established by the city or a development authority of the city in the project area.<br/>
<a id="pl.78.24"></a><var>78.24</var>(b) Prior to or upon the adoption of the first tax increment plan subject to the special <br/>
<a id="pl.78.25"></a><var>78.25</var>rules under this subdivision, the city must find by resolution that parcels consisting <br/>
<a id="pl.78.26"></a><var>78.26</var>of at least 80 percent of the acreage of the project area, excluding street and railroad <br/>
<a id="pl.78.27"></a><var>78.27</var>rights-of-way, are characterized by one or more of the following conditions:<br/>
<a id="pl.78.28"></a><var>78.28</var>(1) peat or other soils with geotechnical deficiencies that impair development of <br/>
<a id="pl.78.29"></a><var>78.29</var>commercial buildings or infrastructure;<br/>
<a id="pl.78.30"></a><var>78.30</var>(2) soils or terrain that requires substantial filling in order to permit the development <br/>
<a id="pl.78.31"></a><var>78.31</var>of commercial buildings or infrastructure;<br/>
<a id="pl.78.32"></a><var>78.32</var>(3) landfills, dumps, or similar deposits of municipal or private waste;<br/>
<a id="pl.78.33"></a><var>78.33</var>(4) quarries or similar resource extraction sites;<br/>
<a id="pl.78.34"></a><var>78.34</var>(5) floodway; and<br/>
<a id="pl.78.35"></a><var>78.35</var>(6) substandard buildings, within the meaning of Minnesota Statutes, section <br/>
<a id="pl.78.36"></a><var>78.36</var>469.174, subdivision 10.<br/>
<a id="pl.79.1"></a><var>79.1</var>(c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by <br/>
<a id="pl.79.2"></a><var>79.2</var>the relevant condition if at least 70 percent of the area of the parcel contains the relevant <br/>
<a id="pl.79.3"></a><var>79.3</var>condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by <br/>
<a id="pl.79.4"></a><var>79.4</var>substandard buildings if substandard buildings occupy at least 30 percent of the area <br/>
<a id="pl.79.5"></a><var>79.5</var>of the parcel.<br/>
<a id="pl.79.6"></a><var>79.6</var>(d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision <br/>
<a id="pl.79.7"></a><var>79.7</var>3, is extended to ten years for any district, and Minnesota Statutes, section 469.1763, <br/>
<a id="pl.79.8"></a><var>79.8</var>subdivision 4, does not apply to any district.<br/>
<a id="pl.79.9"></a><var>79.9</var>(e) Notwithstanding any provision to the contrary in Minnesota Statutes, section <br/>
<a id="pl.79.10"></a><var>79.10</var>469.1763, subdivision 2, paragraph (a), not more than 80 percent of the total revenue <br/>
<a id="pl.79.11"></a><var>79.11</var>derived from tax increments paid by properties in any district, measured over the life of <br/>
<a id="pl.79.12"></a><var>79.12</var>the district, may be expended on activities outside the district but within the project area.<br/>
<a id="pl.79.13"></a><var>79.13</var>(f) For a soil deficiency district:<br/>
<a id="pl.79.14"></a><var>79.14</var>(1) increments may be collected through 20 years after the receipt by the authority of <br/>
<a id="pl.79.15"></a><var>79.15</var>the first increment from the district; and<br/>
<a id="pl.79.16"></a><var>79.16</var>(2) except as otherwise provided in this subdivision, increments may be used only to:<br/>
<a id="pl.79.17"></a><var>79.17</var>(i) acquire parcels on which the improvements described in item (ii) will occur;<br/>
<a id="pl.79.18"></a><var>79.18</var>(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the <br/>
<a id="pl.79.19"></a><var>79.19</var>additional cost of installing public improvements directly caused by the deficiencies; and<br/>
<a id="pl.79.20"></a><var>79.20</var>(iii) pay for the administrative expenses of the authority allocable to the district.<br/>
<a id="pl.79.21"></a><var>79.21</var>(g) Increments spent for any infrastructure costs, whether inside a district or outside <br/>
<a id="pl.79.22"></a><var>79.22</var>a district but within the project area, are deemed to satisfy the requirements of paragraph <br/>
<a id="pl.79.23"></a><var>79.23</var>(f) and Minnesota Statutes, section 469.176, subdivisions 4b and 4j.<br/>
<a id="pl.79.24"></a><var>79.24</var>(h) The authority to approve tax increment financing plans to establish tax increment <br/>
<a id="pl.79.25"></a><var>79.25</var>financing districts under this section expires December 31, 2022.<br/>
<a id="pl.79.26"></a><var>79.26</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance with Minnesota <br/>
<a id="pl.79.27"></a><var>79.27</var>Statutes, section 645.021, subdivision 3.<br/>
<br/>
<a id="bill.5.7.0"></a><a id="pl.79.28"></a><var>79.28</var>    Sec. 7. <b>CITY OF MOUND; TAX INCREMENT FINANCING.</b><br/>
<a id="pl.79.29"></a><var>79.29</var>The requirements of Minnesota Statutes, section 469.1763, subdivision 3, that <br/>
<a id="pl.79.30"></a><var>79.30</var>activities must be undertaken within a five-year period from the date of certification of <br/>
<a id="pl.79.31"></a><var>79.31</var>a tax increment financing district, are considered to be met for the Mound Harbor Tax <br/>
<a id="pl.79.32"></a><var>79.32</var>Increment Financing District administered by the Housing and Redevelopment Authority <br/>
<a id="pl.79.33"></a><var>79.33</var>in and for the city of Mound if the activities are undertaken within 13 years from the <br/>
<a id="pl.79.34"></a><var>79.34</var>date of certification of the district.<br/>
<a id="pl.80.1"></a><var>80.1</var><b>EFFECTIVE DATE.</b>The section is effective upon compliance by the governing <br/>
<a id="pl.80.2"></a><var>80.2</var>body of the city of Mound with the requirements of Minnesota Statutes, section 645.021, <br/>
<a id="pl.80.3"></a><var>80.3</var>subdivisions 2 and 3.<br/>
<br/>
<a id="bill.5.8.0"></a><a id="pl.80.4"></a><var>80.4</var>    Sec. 8. <b>CITY OF NORTH ST. PAUL; TAX INCREMENT FINANCING; </b><br/>
<a id="pl.80.5"></a><var>80.5</var><b>PARCELS DEEMED OCCUPIED.</b><br/>
<a id="pl.80.6"></a><var>80.6</var>(a) If the city of North St. Paul authorizes the creation of a redevelopment tax <br/>
<a id="pl.80.7"></a><var>80.7</var>increment financing district under Minnesota Statutes, section 469.174, subdivision 10, <br/>
<a id="pl.80.8"></a><var>80.8</var>parcel number 122922330059 is deemed to meet the requirements of Minnesota Statutes, <br/>
<a id="pl.80.9"></a><var>80.9</var>section 469.174, subdivision 10, paragraph (d), notwithstanding any contrary provisions <br/>
<a id="pl.80.10"></a><var>80.10</var>of that paragraph, if the following conditions are met:<br/>
<a id="pl.80.11"></a><var>80.11</var>(1) buildings located on the parcel were demolished after the city of North St. Paul <br/>
<a id="pl.80.12"></a><var>80.12</var>adopted a resolution under Minnesota Statutes, section 469.174, subdivision 10, paragraph <br/>
<a id="pl.80.13"></a><var>80.13</var>(d), clause (3);<br/>
<a id="pl.80.14"></a><var>80.14</var>(2) the buildings were removed either by the city of North St. Paul or by the owner <br/>
<a id="pl.80.15"></a><var>80.15</var>of the property by entering into a development agreement; and<br/>
<a id="pl.80.16"></a><var>80.16</var>(3) the request for certification of the parcel as part of a district is filed with the <br/>
<a id="pl.80.17"></a><var>80.17</var>county auditor by December 31, 2017.<br/>
<a id="pl.80.18"></a><var>80.18</var>(b) The city of North St. Paul may elect to use the current value for purposes of <br/>
<a id="pl.80.19"></a><var>80.19</var>calculating original net tax capacity for the parcels deemed occupied under paragraph (a), <br/>
<a id="pl.80.20"></a><var>80.20</var>notwithstanding the provisions of Minnesota Statutes, sections 469.174, subdivision 10, <br/>
<a id="pl.80.21"></a><var>80.21</var>paragraph (d), and 469.177, subdivision 1, paragraph (f).<br/>
<a id="pl.80.22"></a><var>80.22</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance by the governing <br/>
<a id="pl.80.23"></a><var>80.23</var>body of the city of North St. Paul with the requirements of Minnesota Statutes, section <br/>
<a id="pl.80.24"></a><var>80.24</var>645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.5.9.0"></a><a id="pl.80.25"></a><var>80.25</var>    Sec. 9. <b>CITY OF SAVAGE; TAX INCREMENT FINANCING DISTRICT.</b><br/>
<a id="pl.80.26"></a><var>80.26</var>    Subdivision 1. <b>Definitions.</b> (a) For the purposes of this section, the following terms <br/>
<a id="pl.80.27"></a><var>80.27</var>have the meanings given to them.<br/>
<a id="pl.80.28"></a><var>80.28</var>(b) "City" means the city of Savage.<br/>
<a id="pl.80.29"></a><var>80.29</var>(c) "Project area" means parcel numbers 26-931-023-0, 26-931-022-0, 26-931-039-0, <br/>
<a id="pl.80.30"></a><var>80.30</var>26-931-041-0, 26-931-018-1, 26-931-043-0, 26-931-020-0, 26-931-021-0, 26-931-035-0, <br/>
<a id="pl.80.31"></a><var>80.31</var>26-931-040-0, 26-931-036-0, 26-931-037-0, 26-931-038-0, 26-931-0310.<br/>
<a id="pl.80.32"></a><var>80.32</var>(d) "Soil deficiency district" means a type of tax increment financing district <br/>
<a id="pl.80.33"></a><var>80.33</var>consisting of a portion of the project area in which the city finds by resolution that the <br/>
<a id="pl.80.34"></a><var>80.34</var>following conditions exist:<br/>
<a id="pl.81.1"></a><var>81.1</var>(1) unusual terrain or soil deficiencies that occurred over 80 percent of the acreage in <br/>
<a id="pl.81.2"></a><var>81.2</var>the district require substantial filling, grading, or other physical preparation for use; and<br/>
<a id="pl.81.3"></a><var>81.3</var>(2) the estimated cost of the physical preparation under clause (1), but excluding <br/>
<a id="pl.81.4"></a><var>81.4</var>costs directly related to roads as defined in Minnesota Statutes, section 160.01, and <br/>
<a id="pl.81.5"></a><var>81.5</var>local improvements as described in Minnesota Statutes, sections 429.021, subdivision 1, <br/>
<a id="pl.81.6"></a><var>81.6</var>clauses (1) to (7), (11), and (12), and 430.01, exceeds the fair market value of the land <br/>
<a id="pl.81.7"></a><var>81.7</var>before completion of the preparation.<br/>
<a id="pl.81.8"></a><var>81.8</var>    Subd. 2. <b>Special rules.</b> (a) If the city elects, upon the adoption of the tax increment <br/>
<a id="pl.81.9"></a><var>81.9</var>financing plan for a district, the rules under this section apply to a redevelopment <br/>
<a id="pl.81.10"></a><var>81.10</var>district, renewal and renovation district, soil condition district, or soil deficiency district <br/>
<a id="pl.81.11"></a><var>81.11</var>established by the city or a development authority of the city in the project area.<br/>
<a id="pl.81.12"></a><var>81.12</var>(b) Prior to or upon the adoption of the first tax increment plan subject to the special <br/>
<a id="pl.81.13"></a><var>81.13</var>rules under this subdivision, the city must find by resolution that parcels consisting <br/>
<a id="pl.81.14"></a><var>81.14</var>of at least 80 percent of the acreage of the project area, excluding street and railroad <br/>
<a id="pl.81.15"></a><var>81.15</var>rights-of-way, are characterized by one or more of the following conditions:<br/>
<a id="pl.81.16"></a><var>81.16</var>(1) peat or other soils with geotechnical deficiencies that impair development of <br/>
<a id="pl.81.17"></a><var>81.17</var>commercial buildings or infrastructure;<br/>
<a id="pl.81.18"></a><var>81.18</var>(2) soils or terrain that requires substantial filling in order to permit the development <br/>
<a id="pl.81.19"></a><var>81.19</var>of commercial buildings or infrastructure;<br/>
<a id="pl.81.20"></a><var>81.20</var>(3) landfills, dumps, or similar deposits of municipal or private waste;<br/>
<a id="pl.81.21"></a><var>81.21</var>(4) quarries or similar resource extraction sites;<br/>
<a id="pl.81.22"></a><var>81.22</var>(5) floodway; and<br/>
<a id="pl.81.23"></a><var>81.23</var>(6) substandard buildings, within the meaning of Minnesota Statutes, section <br/>
<a id="pl.81.24"></a><var>81.24</var>469.174, subdivision 10.<br/>
<a id="pl.81.25"></a><var>81.25</var>(c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by <br/>
<a id="pl.81.26"></a><var>81.26</var>the relevant condition if at least 70 percent of the area of the parcel contains the relevant <br/>
<a id="pl.81.27"></a><var>81.27</var>condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by <br/>
<a id="pl.81.28"></a><var>81.28</var>substandard buildings if substandard buildings occupy at least 30 percent of the area <br/>
<a id="pl.81.29"></a><var>81.29</var>of the parcel.<br/>
<a id="pl.81.30"></a><var>81.30</var>(d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision <br/>
<a id="pl.81.31"></a><var>81.31</var>3, is extended to ten years for any district, and Minnesota Statutes, section 469.1763, <br/>
<a id="pl.81.32"></a><var>81.32</var>subdivision 4, does not apply to any district.<br/>
<a id="pl.81.33"></a><var>81.33</var>(e) Notwithstanding any provision to the contrary in Minnesota Statutes, section <br/>
<a id="pl.81.34"></a><var>81.34</var>469.1763, subdivision 2, paragraph (a), not more than 80 percent of the total revenue <br/>
<a id="pl.81.35"></a><var>81.35</var>derived from tax increments paid by properties in any district, measured over the life of <br/>
<a id="pl.81.36"></a><var>81.36</var>the district, may be expended on activities outside the district but within the project area.<br/>
<a id="pl.82.1"></a><var>82.1</var>(f) For a soil deficiency district:<br/>
<a id="pl.82.2"></a><var>82.2</var>(1) increments may be collected through 20 years after the receipt by the authority of <br/>
<a id="pl.82.3"></a><var>82.3</var>the first increment from the district; and<br/>
<a id="pl.82.4"></a><var>82.4</var>(2) except as otherwise provided in this subdivision, increments may be used only to:<br/>
<a id="pl.82.5"></a><var>82.5</var>(i) acquire parcels on which the improvements described in item (ii) will occur;<br/>
<a id="pl.82.6"></a><var>82.6</var>(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the <br/>
<a id="pl.82.7"></a><var>82.7</var>additional cost of installing public improvements directly caused by the deficiencies; and<br/>
<a id="pl.82.8"></a><var>82.8</var>(iii) pay for the administrative expenses of the authority allocable to the district.<br/>
<a id="pl.82.9"></a><var>82.9</var>(g) Increments spent for any infrastructure costs, whether inside a district or outside <br/>
<a id="pl.82.10"></a><var>82.10</var>a district but within the project area, are deemed to satisfy the requirements of paragraph <br/>
<a id="pl.82.11"></a><var>82.11</var>(f) and Minnesota Statutes, section 469.176, subdivisions 4b and 4j.<br/>
<a id="pl.82.12"></a><var>82.12</var>(h) The authority to approve tax increment financing plans to establish tax increment <br/>
<a id="pl.82.13"></a><var>82.13</var>financing districts under this section expires December 31, 2022.<br/>
<a id="pl.82.14"></a><var>82.14</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance with Minnesota <br/>
<a id="pl.82.15"></a><var>82.15</var>Statutes, section 645.021, subdivision 3.<br/>
<br/>
<a id="bill.5.10.0"></a><a id="pl.82.16"></a><var>82.16</var>    Sec. 10. <b>WORKFORCE HOUSING TAX INCREMENT FINANCING PILOT </b><br/>
<a id="pl.82.17"></a><var>82.17</var><b>PROJECT.</b><br/>
<a id="pl.82.18"></a><var>82.18</var>    Subdivision 1. <b> Authority to create districts.</b> (a) The governing body of a city <br/>
<a id="pl.82.19"></a><var>82.19</var>located in either Roseau or Pennington County and has a population exceeding 1,500 <br/>
<a id="pl.82.20"></a><var>82.20</var>may establish no more than two tax increment financing housing districts subject to the <br/>
<a id="pl.82.21"></a><var>82.21</var>rules as provided in this section.<br/>
<a id="pl.82.22"></a><var>82.22</var>(b) The authority to establish or approve the tax increment financing plans and <br/>
<a id="pl.82.23"></a><var>82.23</var>request certification for districts under this section expires on June 30, 2019.<br/>
<a id="pl.82.24"></a><var>82.24</var>    Subd. 2. <b>Rules governing districts.</b> (a) Housing districts established under this <br/>
<a id="pl.82.25"></a><var>82.25</var>section are subject to the provisions of Minnesota Statutes, sections 469.174 to 469.1794, <br/>
<a id="pl.82.26"></a><var>82.26</var>except as otherwise provided in this subdivision.<br/>
<a id="pl.82.27"></a><var>82.27</var>(b) Notwithstanding the provisions of Minnesota Statutes, section 469.1761, <br/>
<a id="pl.82.28"></a><var>82.28</var>subdivision 2, for a residential rental project, the city may elect to substitute "80 percent" <br/>
<a id="pl.82.29"></a><var>82.29</var>for both "40 percent" and "60 percent" in the 40-60 test under section 142(d)(1)(B) of the <br/>
<a id="pl.82.30"></a><var>82.30</var>Internal Revenue Code in determining the applicable income limits.<br/>
<a id="pl.82.31"></a><var>82.31</var>(c) Within five years from the date of certification of a tax increment financing <br/>
<a id="pl.82.32"></a><var>82.32</var>district under this section, the governing body of the city must submit a report detailing <br/>
<a id="pl.82.33"></a><var>82.33</var>the funding mechanisms, in addition to the use of the tax increment, that are being used <br/>
<a id="pl.82.34"></a><var>82.34</var>to fund the projects as outlined in the tax increment financing plan. The report must be <br/>
<a id="pl.83.1"></a><var>83.1</var>submitted to the committees of the house of representatives and senate having jurisdiction <br/>
<a id="pl.83.2"></a><var>83.2</var>over taxes and economic development.<br/>
<a id="pl.83.3"></a><var>83.3</var><b>EFFECTIVE DATE.</b>This section is effective for districts for which the request for <br/>
<a id="pl.83.4"></a><var>83.4</var>certification is made after June 30, 2014.<br/>
<br/>
<a id="bill.6.0.0"></a>

<a id="bill.6.1.0"></a><a id="pl.83.7"></a><var>83.7</var>    Section 1. Minnesota Statutes 2013 Supplement, section 116V.03, is amended to read:<br/>
<a id="pl.83.8"></a><var>83.8</var><b>116V.03 APPROPRIATION.</b><br/>
<a id="pl.83.9"></a><var>83.9</var>$1,000,000 in fiscal year 2014 and each year thereafter is appropriated from the <br/>
<a id="pl.83.10"></a><var>83.10</var>general fund to the commissioner of revenue for transfer to the agricultural project <br/>
<a id="pl.83.11"></a><var>83.11</var>utilization account in the special revenue fund for the Agricultural Utilization Research <br/>
<a id="pl.83.12"></a><var>83.12</var>Institute established under section 
         <statute_ref>116V.01</statute_ref>.<br/>
<br/>
<a id="bill.6.2.0"></a><a id="pl.83.13"></a><var>83.13</var>    Sec. 2. <b>[168A.125] TRANSFER-ON-DEATH OF TITLE TO MOTOR VEHICLE.</b><br/>
<a id="pl.83.14"></a><var>83.14</var>    Subdivision 1. <b>Titled as transfer-on-death.</b> A motor vehicle may be titled in <br/>
<a id="pl.83.15"></a><var>83.15</var>transfer-on-death or TOD form by a natural person by including in the certificate of title a <br/>
<a id="pl.83.16"></a><var>83.16</var>designation of a beneficiary or beneficiaries who are natural persons to whom the motor <br/>
<a id="pl.83.17"></a><var>83.17</var>vehicle must be transferred on death of the owner or the last survivor of joint owners with <br/>
<a id="pl.83.18"></a><var>83.18</var>rights of survivorship, subject to the rights of all secured parties.<br/>
<a id="pl.83.19"></a><var>83.19</var>    Subd. 2. <b>Designation of beneficiary.</b> A motor vehicle is registered in <br/>
<a id="pl.83.20"></a><var>83.20</var>transfer-on-death form by designating on the certificate of title the name of the owner <br/>
<a id="pl.83.21"></a><var>83.21</var>and the names of joint owners with identification of rights of survivorship, followed by <br/>
<a id="pl.83.22"></a><var>83.22</var>the words "transfer-on-death to (name of beneficiary or beneficiaries)." The designation <br/>
<a id="pl.83.23"></a><var>83.23</var>"TOD" may be used instead of "transfer-on-death." A title in transfer-on-death form is <br/>
<a id="pl.83.24"></a><var>83.24</var>not required to be supported by consideration, and the certificate of title in which the <br/>
<a id="pl.83.25"></a><var>83.25</var>designation is made is not required to be delivered to the beneficiary or beneficiaries in <br/>
<a id="pl.83.26"></a><var>83.26</var>order for the designation to be effective.<br/>
<a id="pl.83.27"></a><var>83.27</var>    Subd. 3. <b>Interest of beneficiary.</b> The transfer-on-death beneficiary or beneficiaries <br/>
<a id="pl.83.28"></a><var>83.28</var>shall have no interest in the motor vehicle until the death of the owner or the last survivor <br/>
<a id="pl.83.29"></a><var>83.29</var>of the joint owners with right of survivorship. A beneficiary designation may be changed at <br/>
<a id="pl.83.30"></a><var>83.30</var>any time by the owner or by all joint owners with rights of survivorship, without the consent <br/>
<a id="pl.83.31"></a><var>83.31</var>of the beneficiary or beneficiaries, by filing an application for a new certificate of title.<br/>
<a id="pl.83.32"></a><var>83.32</var>    Subd. 4. <b>Vesting of ownership in beneficiary.</b> Ownership of a motor vehicle <br/>
<a id="pl.83.33"></a><var>83.33</var>titled in transfer-on-death form shall vest in the designated beneficiary or beneficiaries on <br/>
<a id="pl.84.1"></a><var>84.1</var>the death of the owner or the last of the joint owners with right of survivorship, subject <br/>
<a id="pl.84.2"></a><var>84.2</var>to the rights of all secured parties, including any claim or lien by the state or county <br/>
<a id="pl.84.3"></a><var>84.3</var>agency authorized by section 246.53, 256B.15, 256D.16, or 261.04. The transfer-on-death <br/>
<a id="pl.84.4"></a><var>84.4</var>beneficiary or beneficiaries who survive the owner may apply for a new certificate of <br/>
<a id="pl.84.5"></a><var>84.5</var>title to the motor vehicle upon submitting proof of the death of the owner of the motor <br/>
<a id="pl.84.6"></a><var>84.6</var>vehicle. If no transfer-on-death beneficiary or beneficiaries survive the owner of a motor <br/>
<a id="pl.84.7"></a><var>84.7</var>vehicle, the motor vehicle must be included in the probate estate of the deceased owner. <br/>
<a id="pl.84.8"></a><var>84.8</var>A transfer of a motor vehicle to a transfer-on-death beneficiary or beneficiaries is not <br/>
<a id="pl.84.9"></a><var>84.9</var>a testamentary transfer.<br/>
<a id="pl.84.10"></a><var>84.10</var>    Subd. 5. <b>Rights of creditors.</b> This section does not limit the rights of any secured <br/>
<a id="pl.84.11"></a><var>84.11</var>party or creditor of the owner of a motor vehicle against a transfer-on-death beneficiary <br/>
<a id="pl.84.12"></a><var>84.12</var>or beneficiaries, including any claim or lien by the state or county agency authorized by <br/>
<a id="pl.84.13"></a><var>84.13</var>section 246.53, 256B.15, 256D.16, or 261.04, if other assets of the deceased owner's <br/>
<a id="pl.84.14"></a><var>84.14</var>estate are insufficient to pay the amount of any such claim.<br/>
<br/>
<a id="bill.6.3.0"></a><a id="pl.84.15"></a><var>84.15</var>    Sec. 3. Minnesota Statutes 2012, section 270C.72, subdivision 1, is amended to read:<br/>
<a id="pl.84.16"></a><var>84.16</var>    Subdivision 1. <b>Tax clearance required.</b> (a) The state or a political subdivision of <br/>
<a id="pl.84.17"></a><var>84.17</var>the state may not issue, transfer, or renew, and must revoke, a license for the conduct of <br/>
<a id="pl.84.18"></a><var>84.18</var>a profession, occupation, trade, or business, if the commissioner notifies the licensing <br/>
<a id="pl.84.19"></a><var>84.19</var>authority that the applicant owes the state delinquent taxes payable to the commissioner, <br/>
<a id="pl.84.20"></a><var>84.20</var>penalties, or interest. The commissioner may not notify the licensing authority unless the <br/>
<a id="pl.84.21"></a><var>84.21</var>applicant taxpayer owes $500 or more in delinquent taxes, penalties, or interest, or has <br/>
<a id="pl.84.22"></a><var>84.22</var>not filed returns. If the applicant taxpayer does not owe delinquent taxes, penalties, or <br/>
<a id="pl.84.23"></a><var>84.23</var>interest, but has not filed returns, the commissioner may not notify the licensing authority <br/>
<a id="pl.84.24"></a><var>84.24</var>unless the taxpayer has been given 90 days' written notice to file the returns or show <br/>
<a id="pl.84.25"></a><var>84.25</var>that the returns are not required to be filed. <br/>
<a id="pl.84.26"></a><var>84.26</var>(b) Within ten days after receipt of the notification from the commissioner under <br/>
<a id="pl.84.27"></a><var>84.27</var>paragraph (a), the licensing authority must notify the license holder by certified mail of <br/>
<a id="pl.84.28"></a><var>84.28</var>the potential revocation of the license for the applicable reason under paragraph (a). <br/>
<a id="pl.84.29"></a><var>84.29</var>The notice must include a copy of the commissioner's notice to the licensing agency <br/>
<a id="pl.84.30"></a><var>84.30</var>and information, in the form specified by the commissioner, on the licensee's option for <br/>
<a id="pl.84.31"></a><var>84.31</var>receiving a tax clearance from the commissioner. The licensing authority must revoke the <br/>
<a id="pl.84.32"></a><var>84.32</var>license 30 days after receiving the notice from the commissioner, unless it receives a tax <br/>
<a id="pl.84.33"></a><var>84.33</var>clearance from the commissioner as provided in paragraph (c).<br/>
<a id="pl.84.34"></a><var>84.34</var>(c) A licensing authority that has received a notice from the commissioner may <br/>
<a id="pl.84.35"></a><var>84.35</var>issue, transfer, renew, or not revoke the applicant's license only if (a) (1) the commissioner <br/>
<a id="pl.85.1"></a><var>85.1</var>issues a tax clearance certificate and (b) (2) the commissioner or the applicant forwards a <br/>
<a id="pl.85.2"></a><var>85.2</var>copy of the clearance to the authority. The commissioner may issue a clearance certificate <br/>
<a id="pl.85.3"></a><var>85.3</var>only if the applicant does not owe the state any uncontested delinquent taxes, penalties, or <br/>
<a id="pl.85.4"></a><var>85.4</var>interest and has filed all required returns.<br/>
<a id="pl.85.5"></a><var>85.5</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2014.<br/>
<br/>
<a id="bill.6.4.0"></a><a id="pl.85.6"></a><var>85.6</var>    Sec. 4. Minnesota Statutes 2012, section 270C.72, subdivision 3, is amended to read:<br/>
<a id="pl.85.7"></a><var>85.7</var>    Subd. 3. <b>Notice and hearing.</b> (a) The commissioner, on notifying a licensing <br/>
<a id="pl.85.8"></a><var>85.8</var>authority pursuant to subdivision 1 not to issue, transfer, or renew a license, must send a <br/>
<a id="pl.85.9"></a><var>85.9</var>copy of the notice to the applicant. If the applicant requests, in writing, within 30 days <br/>
<a id="pl.85.10"></a><var>85.10</var>of the date of the notice a hearing, a contested case hearing must be held. The hearing <br/>
<a id="pl.85.11"></a><var>85.11</var>must be held within 45 days of the date the commissioner refers the case to the Office of <br/>
<a id="pl.85.12"></a><var>85.12</var>Administrative Hearings. Notwithstanding any law to the contrary, the applicant must be <br/>
<a id="pl.85.13"></a><var>85.13</var>served with 20 days' notice in writing specifying the time and place of the hearing and the <br/>
<a id="pl.85.14"></a><var>85.14</var>allegations against the applicant. The notice may be served personally or by mail.<br/>
<a id="pl.85.15"></a><var>85.15</var>(b) (a) Prior to notifying a licensing authority pursuant to subdivision 1 to revoke a <br/>
<a id="pl.85.16"></a><var>85.16</var>license, the commissioner must send a notice to the applicant of the commissioner's intent <br/>
<a id="pl.85.17"></a><var>85.17</var>to require revocation of the license and of the applicant's right to a hearing under paragraph <br/>
<a id="pl.85.18"></a><var>85.18</var>(a). If the applicant requests a hearing in writing within 30 days of the date of the notice, a <br/>
<a id="pl.85.19"></a><var>85.19</var>contested case hearing must be held. The hearing must be held within 45 days of the date <br/>
<a id="pl.85.20"></a><var>85.20</var>the commissioner refers the case to the Office of Administrative Hearings. Notwithstanding <br/>
<a id="pl.85.21"></a><var>85.21</var>any law to the contrary, the applicant must be served with 20 days notice in writing <br/>
<a id="pl.85.22"></a><var>85.22</var>specifying the time and place of the hearing and the allegations against the applicant. The <br/>
<a id="pl.85.23"></a><var>85.23</var>notice may be served personally or by mail. A license is subject to revocation when 30 <br/>
<a id="pl.85.24"></a><var>85.24</var>days have passed following the date of the notice in this paragraph without the applicant <br/>
<a id="pl.85.25"></a><var>85.25</var>requesting a hearing, or, if a hearing is timely requested, upon final determination of the <br/>
<a id="pl.85.26"></a><var>85.26</var>hearing under section 
         <statute_ref>14.62, subdivision 1</statute_ref>. A license shall be revoked by the licensing <br/>
<a id="pl.85.27"></a><var>85.27</var>authority within 30 days after receiving notice from the commissioner to revoke.<br/>
<a id="pl.85.28"></a><var>85.28</var>(b) The commissioner may notify a licensing authority under subdivision 1 only <br/>
<a id="pl.85.29"></a><var>85.29</var>after the requirements of paragraph (a) have been satisfied.<br/>
<a id="pl.85.30"></a><var>85.30</var>(c) A hearing under this subdivision is in lieu of any other hearing or proceeding <br/>
<a id="pl.85.31"></a><var>85.31</var>provided by law arising from any action taken under subdivision 1.<br/>
<a id="pl.85.32"></a><var>85.32</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2014.<br/>
<br/>
<a id="bill.6.5.0"></a><a id="pl.86.1"></a><var>86.1</var>    Sec. 5. Minnesota Statutes 2013 Supplement, section 297B.01, subdivision 16, is <br/>
<a id="pl.86.2"></a><var>86.2</var>amended to read:<br/>
<a id="pl.86.3"></a><var>86.3</var>    Subd. 16. <b>Sale, sells, selling, purchase, purchased, or acquired.</b> (a) "Sale," <br/>
<a id="pl.86.4"></a><var>86.4</var>"sells," "selling," "purchase," "purchased," or "acquired" means any transfer of title of any <br/>
<a id="pl.86.5"></a><var>86.5</var>motor vehicle, whether absolutely or conditionally, for a consideration in money or by <br/>
<a id="pl.86.6"></a><var>86.6</var>exchange or barter for any purpose other than resale in the regular course of business.<br/>
<a id="pl.86.7"></a><var>86.7</var>    (b) Any motor vehicle utilized by the owner only by leasing such vehicle to others <br/>
<a id="pl.86.8"></a><var>86.8</var>or by holding it in an effort to so lease it, and which is put to no other use by the owner <br/>
<a id="pl.86.9"></a><var>86.9</var>other than resale after such lease or effort to lease, shall be considered property purchased <br/>
<a id="pl.86.10"></a><var>86.10</var>for resale.<br/>
<a id="pl.86.11"></a><var>86.11</var>    (c) The terms also shall include any transfer of title or ownership of a motor vehicle <br/>
<a id="pl.86.12"></a><var>86.12</var>by other means, for or without consideration, except that these terms shall not include:<br/>
<a id="pl.86.13"></a><var>86.13</var>    (1) the acquisition of a motor vehicle by inheritance from or by bequest of, or <br/>
<a id="pl.86.14"></a><var>86.14</var>transfer-on-death of title by, a decedent who owned it;<br/>
<a id="pl.86.15"></a><var>86.15</var>    (2) the transfer of a motor vehicle which was previously licensed in the names of <br/>
<a id="pl.86.16"></a><var>86.16</var>two or more joint tenants and subsequently transferred without monetary consideration to <br/>
<a id="pl.86.17"></a><var>86.17</var>one or more of the joint tenants;<br/>
<a id="pl.86.18"></a><var>86.18</var>    (3) the transfer of a motor vehicle by way of gift from a limited used vehicle dealer <br/>
<a id="pl.86.19"></a><var>86.19</var>licensed under section 
         <statute_ref>168.27, subdivision 4a</statute_ref>, to an individual, when the transfer is with <br/>
<a id="pl.86.20"></a><var>86.20</var>no monetary or other consideration or expectation of consideration and the parties to the <br/>
<a id="pl.86.21"></a><var>86.21</var>transfer submit an affidavit to that effect at the time the title transfer is recorded;<br/>
<a id="pl.86.22"></a><var>86.22</var>    (4) the transfer of a motor vehicle by gift between:<br/>
<a id="pl.86.23"></a><var>86.23</var>(i) spouses;<br/>
<a id="pl.86.24"></a><var>86.24</var>(ii) parents and a child; or<br/>
<a id="pl.86.25"></a><var>86.25</var>(iii) grandparents and a grandchild;<br/>
<a id="pl.86.26"></a><var>86.26</var>(5) the voluntary or involuntary transfer of a motor vehicle between a husband and <br/>
<a id="pl.86.27"></a><var>86.27</var>wife in a divorce proceeding; or<br/>
<a id="pl.86.28"></a><var>86.28</var>    (6) the transfer of a motor vehicle by way of a gift to an organization that is exempt <br/>
<a id="pl.86.29"></a><var>86.29</var>from federal income taxation under section 501(c)(3) of the Internal Revenue Code when <br/>
<a id="pl.86.30"></a><var>86.30</var>the motor vehicle will be used exclusively for religious, charitable, or educational purposes.<br/>
<br/>
<a id="bill.7.0.0"></a>

<a id="bill.7.1.0"></a><a id="pl.86.33"></a><var>86.33</var>    Section 1. Minnesota Statutes 2012, section 16D.02, subdivision 3, is amended to read:<br/>
<a id="pl.86.34"></a><var>86.34</var>    Subd. 3. <b>Debt.</b> "Debt" means an amount owed to the state directly, or through a <br/>
<a id="pl.86.35"></a><var>86.35</var>state agency, on account of a fee, duty, lease, direct loan, loan insured or guaranteed by <br/>
<a id="pl.87.1"></a><var>87.1</var>the state, rent, service, sale of real or personal property, overpayment, fine, assessment, <br/>
<a id="pl.87.2"></a><var>87.2</var>penalty, restitution, damages, interest, tax, bail bond, forfeiture, reimbursement, liability <br/>
<a id="pl.87.3"></a><var>87.3</var>owed, an assignment to the state including assignments under section 
         <statute_ref>256.741</statute_ref>, the Social <br/>
<a id="pl.87.4"></a><var>87.4</var>Security Act, or other state or federal law, recovery of costs incurred by the state, or any <br/>
<a id="pl.87.5"></a><var>87.5</var>other source of indebtedness to the state. Debt also includes amounts owed to individuals <br/>
<a id="pl.87.6"></a><var>87.6</var>as a result of civil, criminal, or administrative action brought by the state or a state agency <br/>
<a id="pl.87.7"></a><var>87.7</var>pursuant to its statutory authority or for which the state or state agency acts in a fiduciary <br/>
<a id="pl.87.8"></a><var>87.8</var>capacity in providing collection services in accordance with the regulations adopted under <br/>
<a id="pl.87.9"></a><var>87.9</var>the Social Security Act at Code of Federal Regulations, title 45, section 302.33. When <br/>
<a id="pl.87.10"></a><var>87.10</var>the commissioner provides collection services pursuant to a debt qualification plan to a <br/>
<a id="pl.87.11"></a><var>87.11</var>referring agency, debt also includes an amount owed to the courts, local government <br/>
<a id="pl.87.12"></a><var>87.12</var>units, Minnesota state colleges and universities governed by the Board of Trustees of the <br/>
<a id="pl.87.13"></a><var>87.13</var>Minnesota State Colleges and Universities, or University of Minnesota.<br/>
<a id="pl.87.14"></a><var>87.14</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.2.0"></a><a id="pl.87.15"></a><var>87.15</var>    Sec. 2. Minnesota Statutes 2012, section 16D.02, subdivision 6, is amended to read:<br/>
<a id="pl.87.16"></a><var>87.16</var>    Subd. 6. <b>Referring agency.</b> "Referring agency" means a state agency, local <br/>
<a id="pl.87.17"></a><var>87.17</var>government unit, Minnesota state colleges and universities governed by the Board of <br/>
<a id="pl.87.18"></a><var>87.18</var>Trustees of the Minnesota State Colleges and Universities, University of Minnesota, or a <br/>
<a id="pl.87.19"></a><var>87.19</var>court, that has entered into a debt qualification plan an agreement with the commissioner <br/>
<a id="pl.87.20"></a><var>87.20</var>to refer debts to the commissioner for collection.<br/>
<a id="pl.87.21"></a><var>87.21</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.3.0"></a><a id="pl.87.22"></a><var>87.22</var>    Sec. 3. Minnesota Statutes 2012, section 16D.04, subdivision 3, is amended to read:<br/>
<a id="pl.87.23"></a><var>87.23</var>    Subd. 3. <b>Services.</b> The commissioner shall provide collection services for a state <br/>
<a id="pl.87.24"></a><var>87.24</var>agency, and may provide for collection services for a court, in accordance with the terms and <br/>
<a id="pl.87.25"></a><var>87.25</var>conditions of a signed debt qualification plan referring agencies other than state agencies.<br/>
<a id="pl.87.26"></a><var>87.26</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.4.0"></a><a id="pl.87.27"></a><var>87.27</var>    Sec. 4. Minnesota Statutes 2012, section 16D.04, subdivision 4, is amended to read:<br/>
<a id="pl.87.28"></a><var>87.28</var>    Subd. 4. <b>Authority to contract.</b> The commissioners commissioner of revenue and <br/>
<a id="pl.87.29"></a><var>87.29</var>management and budget may contract with credit bureaus, private collection agencies, and <br/>
<a id="pl.87.30"></a><var>87.30</var>other entities as necessary for the collection of debts. A private collection agency acting <br/>
<a id="pl.87.31"></a><var>87.31</var>under a contract with the commissioner of revenue or management and budget is subject <br/>
<a id="pl.87.32"></a><var>87.32</var>to sections 
         <statute_ref>332.31</statute_ref> to 
         <statute_ref>332.45</statute_ref>, except that the private collection agency may indicate that it <br/>
<a id="pl.88.1"></a><var>88.1</var>is acting under a contract with the state. The commissioner may not delegate the powers <br/>
<a id="pl.88.2"></a><var>88.2</var>provided under section 
         <statute_ref>16D.08</statute_ref> to any nongovernmental entity.<br/>
<a id="pl.88.3"></a><var>88.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.5.0"></a><a id="pl.88.4"></a><var>88.4</var>    Sec. 5. Minnesota Statutes 2012, section 16D.07, is amended to read:<br/>
<a id="pl.88.5"></a><var>88.5</var><b>16D.07 NOTICE TO DEBTOR.</b><br/>
<a id="pl.88.6"></a><var>88.6</var>The referring agency shall send notice to the debtor by United States mail or <br/>
<a id="pl.88.7"></a><var>88.7</var>personal delivery at the debtor's last known address at least 20 days before the debt is <br/>
<a id="pl.88.8"></a><var>88.8</var>referred to the commissioner. The notice must state the nature and amount of the debt, <br/>
<a id="pl.88.9"></a><var>88.9</var>identify to whom the debt is owed, and inform the debtor of the remedies available under <br/>
<a id="pl.88.10"></a><var>88.10</var>this chapter. The referring agency shall advise the debtor of collection costs imposed <br/>
<a id="pl.88.11"></a><var>88.11</var>under section 16D.11 and of the debtor's right to cancellation of collection costs under <br/>
<a id="pl.88.12"></a><var>88.12</var>section 16D.11, subdivision 3.<br/>
<a id="pl.88.13"></a><var>88.13</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.6.0"></a><a id="pl.88.14"></a><var>88.14</var>    Sec. 6. Minnesota Statutes 2012, section 16D.11, subdivision 1, is amended to read:<br/>
<a id="pl.88.15"></a><var>88.15</var>    Subdivision 1. <b>Imposition.</b> As determined by the commissioner of management and <br/>
<a id="pl.88.16"></a><var>88.16</var>budget revenue, collection costs shall be added to the debts referred to the commissioner <br/>
<a id="pl.88.17"></a><var>88.17</var>or private collection agency for collection. Collection costs are collectible by the <br/>
<a id="pl.88.18"></a><var>88.18</var>commissioner or private agency from the debtor at the same time and in the same <br/>
<a id="pl.88.19"></a><var>88.19</var>manner as the referred debt. The referring agency shall advise the debtor of collection <br/>
<a id="pl.88.20"></a><var>88.20</var>costs under this section and the debtor's right to cancellation of collection costs under <br/>
<a id="pl.88.21"></a><var>88.21</var>subdivision 3 at the time the agency sends notice to the debtor under section 
<statute_ref>16D.07</statute_ref>.<br/>
<a id="pl.88.22"></a><var>88.22</var> If the commissioner or private agency collects an amount less than the total due, the <br/>
<a id="pl.88.23"></a><var>88.23</var>payment is applied proportionally to collection costs and the underlying debt unless <br/>
<a id="pl.88.24"></a><var>88.24</var>the commissioner of management and budget has waived this requirement for certain <br/>
<a id="pl.88.25"></a><var>88.25</var>categories of debt pursuant to the department's internal guidelines. Collection costs <br/>
<a id="pl.88.26"></a><var>88.26</var>collected by the commissioner under this subdivision or retained under subdivision 6 shall <br/>
<a id="pl.88.27"></a><var>88.27</var>be deposited in the general fund as nondedicated receipts. Collection costs collected by <br/>
<a id="pl.88.28"></a><var>88.28</var>private agencies are appropriated to the referring agency to pay the collection fees charged <br/>
<a id="pl.88.29"></a><var>88.29</var>by the private agency. Collections of collection costs in excess of collection agency fees <br/>
<a id="pl.88.30"></a><var>88.30</var>must be deposited in the general fund as nondedicated receipts.<br/>
<a id="pl.88.31"></a><var>88.31</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.7.0"></a><a id="pl.89.1"></a><var>89.1</var>    Sec. 7. Minnesota Statutes 2012, section 16D.11, subdivision 3, is amended to read:<br/>
<a id="pl.89.2"></a><var>89.2</var>    Subd. 3. <b>Cancellation.</b> Collection costs imposed under subdivision 1 shall be <br/>
<a id="pl.89.3"></a><var>89.3</var>canceled and subtracted from the amount due if:<br/>
<a id="pl.89.4"></a><var>89.4</var>(1) the debtor's household income as defined in section 
         <statute_ref>290A.03, subdivision 5</statute_ref>, <br/>
<a id="pl.89.5"></a><var>89.5</var>excluding the exemption subtractions in subdivision 3, paragraph (3) of that section, for <br/>
<a id="pl.89.6"></a><var>89.6</var>the 12 months preceding the date of referral is less than twice the annual federal poverty <br/>
<a id="pl.89.7"></a><var>89.7</var>guideline under United States Code, title 42, section 9902, subsection (2);<br/>
<a id="pl.89.8"></a><var>89.8</var>(2) within 60 days after the first contact with the debtor by the enterprise<br/>
<a id="pl.89.9"></a><var>89.9</var> commissioner or collection agency, the debtor establishes reasonable cause for the failure <br/>
<a id="pl.89.10"></a><var>89.10</var>to pay the debt prior to referral of the debt to the enterprise commissioner;<br/>
<a id="pl.89.11"></a><var>89.11</var>(3) a good faith dispute as to the legitimacy or the amount of the debt is made, <br/>
<a id="pl.89.12"></a><var>89.12</var>and payment is remitted or a payment agreement is entered into within 30 days after <br/>
<a id="pl.89.13"></a><var>89.13</var>resolution of the dispute;<br/>
<a id="pl.89.14"></a><var>89.14</var>(4) good faith litigation occurs and the debtor's position is substantially justified, and <br/>
<a id="pl.89.15"></a><var>89.15</var>if the debtor does not totally prevail, the debt is paid or a payment agreement is entered <br/>
<a id="pl.89.16"></a><var>89.16</var>into within 30 days after the judgment becomes final and nonappealable; or<br/>
<a id="pl.89.17"></a><var>89.17</var>(5) collection costs have been added by the referring agency and are included in <br/>
<a id="pl.89.18"></a><var>89.18</var>the amount of the referred debt.<br/>
<a id="pl.89.19"></a><var>89.19</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.8.0"></a><a id="pl.89.20"></a><var>89.20</var>    Sec. 8. Minnesota Statutes 2012, section 16D.11, subdivision 7, is amended to read:<br/>
<a id="pl.89.21"></a><var>89.21</var>    Subd. 7. <b>Adjustment of rate.</b> By June 1 of each year, the commissioner shall <br/>
<a id="pl.89.22"></a><var>89.22</var>determine the rate of collection costs for debts referred to the enterprise commissioner<br/>
<a id="pl.89.23"></a><var>89.23</var> during the next fiscal year. The rate is a percentage of the debts in an amount that most <br/>
<a id="pl.89.24"></a><var>89.24</var>nearly equals the costs of the enterprise commissioner necessary to process and collect <br/>
<a id="pl.89.25"></a><var>89.25</var>referred debts under this chapter. In no event shall the rate of the collection costs exceed <br/>
<a id="pl.89.26"></a><var>89.26</var>25 percent of the debt. Determination of the rate of collection costs under this section is <br/>
<a id="pl.89.27"></a><var>89.27</var>not subject to the fee setting requirements of section 
         <statute_ref>16A.1283</statute_ref>.<br/>
<a id="pl.89.28"></a><var>89.28</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.9.0"></a><a id="pl.89.29"></a><var>89.29</var>    Sec. 9. Minnesota Statutes 2012, section 84A.20, subdivision 2, is amended to read:<br/>
<a id="pl.89.30"></a><var>89.30</var>    Subd. 2. <b>County proposal to state.</b> Under certain conditions, The board of county <br/>
<a id="pl.89.31"></a><var>89.31</var>commissioners of any county may by resolution propose to the state that one or more <br/>
<a id="pl.89.32"></a><var>89.32</var>areas in the county be taken over by the state for afforestation, reforestation, flood control <br/>
<a id="pl.89.33"></a><var>89.33</var>projects, or other state purposes. The projects are to be managed, controlled, and used for <br/>
<a id="pl.90.1"></a><var>90.1</var>the purposes in subdivision 1 on lands to be acquired by the state within the projects, as set <br/>
<a id="pl.90.2"></a><var>90.2</var>forth in sections 
         <statute_ref>84A.20</statute_ref> to 
         <statute_ref>84A.30</statute_ref>. The county board may propose this if (1) the county <br/>
<a id="pl.90.3"></a><var>90.3</var>contains lands suitable for the purposes in subdivision 1, (2) on January 1, 1931, the taxes <br/>
<a id="pl.90.4"></a><var>90.4</var>on more than 35 percent of the taxable land in the county are delinquent, (3) on January 1, <br/>
<a id="pl.90.5"></a><var>90.5</var>1931, the county's bonded ditch indebtedness, including accrued interest, equals or exceeds <br/>
<a id="pl.90.6"></a><var>90.6</var>nine percent of the assessed valuation of the county, exclusive of money and credits.<br/>
<a id="pl.90.7"></a><var>90.7</var>The area taken over must include lands that have been assessed for all or part of <br/>
<a id="pl.90.8"></a><var>90.8</var>the cost of the establishment and construction of public drainage ditches under state law, <br/>
<a id="pl.90.9"></a><var>90.9</var>and on which the assessments or installments are delinquent. A certified copy of the <br/>
<a id="pl.90.10"></a><var>90.10</var>county board's resolution must be filed with the department and considered and acted <br/>
<a id="pl.90.11"></a><var>90.11</var>upon by the department. If approved by the department, it must then be submitted to, <br/>
<a id="pl.90.12"></a><var>90.12</var>considered, and acted upon by the executive council. If approved by the Executive <br/>
<a id="pl.90.13"></a><var>90.13</var>Council, the proposition must be formally accepted by the governor. Acceptance must be <br/>
<a id="pl.90.14"></a><var>90.14</var>communicated in writing to and filed with the county auditor.<br/>
<a id="pl.90.15"></a><var>90.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.10.0"></a><a id="pl.90.16"></a><var>90.16</var>    Sec. 10. Minnesota Statutes 2012, section 84A.31, subdivision 2, is amended to read:<br/>
<a id="pl.90.17"></a><var>90.17</var>    Subd. 2. <b>County proposal to state.</b> Under certain conditions, The board of county <br/>
<a id="pl.90.18"></a><var>90.18</var>commissioners of any county may by resolution propose that the state take over part of the <br/>
<a id="pl.90.19"></a><var>90.19</var>tax-delinquent lands in the county. The board may propose this if:<br/>
<a id="pl.90.20"></a><var>90.20</var>(1) the county contains land suitable for the purposes in subdivision 1;.<br/>
<a id="pl.90.21"></a><var>90.21</var>(2) on January 1, 1933, the taxes on more than 25 percent of the acreage of the lands <br/>
<a id="pl.90.22"></a><var>90.22</var>in a town in the county are delinquent, as shown by its tax books;<br/>
<a id="pl.90.23"></a><var>90.23</var>(3) on January 1, 1933, the taxes or ditch assessments on more than 50 percent of the <br/>
<a id="pl.90.24"></a><var>90.24</var>acreage of the lands to be taken over are delinquent, as shown by the county's tax books; and<br/>
<a id="pl.90.25"></a><var>90.25</var>(4) on January 1, 1933, the bonded ditch indebtedness of the county equals or <br/>
<a id="pl.90.26"></a><var>90.26</var>exceeds 15 percent of the assessed value of the county for 1932 as fixed by the Minnesota <br/>
<a id="pl.90.27"></a><var>90.27</var>Tax Commission, exclusive of money and credits.<br/>
<a id="pl.90.28"></a><var>90.28</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.11.0"></a><a id="pl.90.29"></a><var>90.29</var>    Sec. 11. Minnesota Statutes 2012, section 115B.49, subdivision 4, is amended to read:<br/>
<a id="pl.90.30"></a><var>90.30</var>    Subd. 4. <b>Registration; fees.</b> (a) The owner or operator of a dry cleaning facility <br/>
<a id="pl.90.31"></a><var>90.31</var>shall register on or before October 1 of each year with the commissioner of revenue in <br/>
<a id="pl.90.32"></a><var>90.32</var>a manner prescribed by the commissioner of revenue and pay a registration fee for the <br/>
<a id="pl.90.33"></a><var>90.33</var>facility. The amount of the fee is:<br/>
<a id="pl.91.1"></a><var>91.1</var>(1) $500, for facilities with a full-time equivalence of fewer than five;<br/>
<a id="pl.91.2"></a><var>91.2</var>(2) $1,000, for facilities with a full-time equivalence of five to ten; and<br/>
<a id="pl.91.3"></a><var>91.3</var>(3) $1,500, for facilities with a full-time equivalence of more than ten.<br/>
<a id="pl.91.4"></a><var>91.4</var>The registration fee must be paid on or before October 18 or the owner or operator <br/>
<a id="pl.91.5"></a><var>91.5</var>of a dry cleaning facility may elect to pay the fee in equal installments. Installment <br/>
<a id="pl.91.6"></a><var>91.6</var>payments must be paid on or before October 18, on or before January 18, on or before <br/>
<a id="pl.91.7"></a><var>91.7</var>April 18, and on or before June 18. All payments made after October 18 bear interest <br/>
<a id="pl.91.8"></a><var>91.8</var>at the rate specified in section 
         <statute_ref>270C.40</statute_ref>.<br/>
<a id="pl.91.9"></a><var>91.9</var>(b) A person who sells dry cleaning solvents for use by dry cleaning facilities in <br/>
<a id="pl.91.10"></a><var>91.10</var>the state shall collect and remit to the commissioner of revenue in a the same manner <br/>
<a id="pl.91.11"></a><var>91.11</var>prescribed by the commissioner of revenue, on or before the 20th day of the month <br/>
<a id="pl.91.12"></a><var>91.12</var>following the month in which the sales of dry cleaning solvents are made for the taxes <br/>
<a id="pl.91.13"></a><var>91.13</var>imposed under chapter 297A, a fee of:<br/>
<a id="pl.91.14"></a><var>91.14</var>(1) $3.50 for each gallon of perchloroethylene sold for use by dry cleaning facilities <br/>
<a id="pl.91.15"></a><var>91.15</var>in the state;<br/>
<a id="pl.91.16"></a><var>91.16</var>(2) 70 cents for each gallon of hydrocarbon-based dry cleaning solvent sold for use <br/>
<a id="pl.91.17"></a><var>91.17</var>by dry cleaning facilities in the state; and<br/>
<a id="pl.91.18"></a><var>91.18</var>(3) 35 cents for each gallon of other nonaqueous solvents sold for use by dry <br/>
<a id="pl.91.19"></a><var>91.19</var>cleaning facilities in the state.<br/>
<a id="pl.91.20"></a><var>91.20</var>(c) The audit, assessment, appeal, collection, enforcement, and administrative <br/>
<a id="pl.91.21"></a><var>91.21</var>provisions of chapters 270C and 289A apply to the fee imposed by this subdivision. To <br/>
<a id="pl.91.22"></a><var>91.22</var>enforce this subdivision, the commissioner of revenue may grant extensions to file returns <br/>
<a id="pl.91.23"></a><var>91.23</var>and pay fees, impose penalties and interest on the annual registration fee under paragraph <br/>
<a id="pl.91.24"></a><var>91.24</var>(a) and the monthly fee under paragraph (b), and abate penalties and interest in the manner <br/>
<a id="pl.91.25"></a><var>91.25</var>provided in chapters 270C and 289A. The penalties and interest imposed on taxes under <br/>
<a id="pl.91.26"></a><var>91.26</var>chapter 297A apply to the fees imposed under this subdivision. Disclosure of data collected <br/>
<a id="pl.91.27"></a><var>91.27</var>by the commissioner of revenue under this subdivision is governed by chapter 270B.<br/>
<a id="pl.91.28"></a><var>91.28</var><b>EFFECTIVE DATE.</b>This section is effective for fees due after June 30, 2014.<br/>
<br/>
<a id="bill.7.12.0"></a><a id="pl.91.29"></a><var>91.29</var>    Sec. 12. Minnesota Statutes 2012, section 163.06, subdivision 1, is amended to read:<br/>
<a id="pl.91.30"></a><var>91.30</var>    Subdivision 1. <b>Levy.</b> The county board of any county in which there are unorganized <br/>
<a id="pl.91.31"></a><var>91.31</var>townships may levy a tax for road and bridge purposes upon all the real and personal <br/>
<a id="pl.91.32"></a><var>91.32</var>property in such unorganized townships, exclusive of money and credits taxed under the <br/>
<a id="pl.91.33"></a><var>91.33</var>provisions of chapter 285.<br/>
<a id="pl.91.34"></a><var>91.34</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.13.0"></a><a id="pl.92.1"></a><var>92.1</var>    Sec. 13. Minnesota Statutes 2012, section 270.11, subdivision 1, is amended to read:<br/>
<a id="pl.92.2"></a><var>92.2</var>    Subdivision 1. <b>To act as State Board of Equalization.</b> The commissioner of <br/>
<a id="pl.92.3"></a><var>92.3</var>revenue shall have and exercise all the rights, powers and authority by law vested in the <br/>
<a id="pl.92.4"></a><var>92.4</var>State Board of Equalization, which board of equalization is hereby continued, with full <br/>
<a id="pl.92.5"></a><var>92.5</var>power and authority to review, modify, and revise all of the acts and proceedings of the <br/>
<a id="pl.92.6"></a><var>92.6</var>commissioner in so far as they relate to the equalization and valuation of property assessed <br/>
<a id="pl.92.7"></a><var>92.7</var>for taxation, as prescribed by section 
         <statute_ref>270.12</statute_ref>.<br/>
<a id="pl.92.8"></a><var>92.8</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.14.0"></a><a id="pl.92.9"></a><var>92.9</var>    Sec. 14. Minnesota Statutes 2012, section 270.12, subdivision 2, is amended to read:<br/>
<a id="pl.92.10"></a><var>92.10</var>    Subd. 2. <b>Meeting dates; duties.</b> The board shall meet annually between April 15 <br/>
<a id="pl.92.11"></a><var>92.11</var>and June 30 at the office of the commissioner of revenue and examine and compare the <br/>
<a id="pl.92.12"></a><var>92.12</var>returns of the assessment of the property in the several counties, and equalize the same so <br/>
<a id="pl.92.13"></a><var>92.13</var>that all the taxable property in the state shall be assessed at its market value, subject to <br/>
<a id="pl.92.14"></a><var>92.14</var>the following rules:<br/>
<a id="pl.92.15"></a><var>92.15</var>(1) The board shall add to or deduct from the aggregate valuation of the real property <br/>
<a id="pl.92.16"></a><var>92.16</var>of every county, which the board believes to be valued below or above its market value in <br/>
<a id="pl.92.17"></a><var>92.17</var>money, such percent as will bring the same to its market value in money;<br/>
<a id="pl.92.18"></a><var>92.18</var>(2) The board shall deduct from the aggregate valuation of the real property of every <br/>
<a id="pl.92.19"></a><var>92.19</var>county, which the board believes to be valued above its market value in money, such <br/>
<a id="pl.92.20"></a><var>92.20</var>percent as will reduce the same to its market value in money;<br/>
<a id="pl.92.21"></a><var>92.21</var>(3) (2) If the board believes the valuation for a part of a class determined by a range <br/>
<a id="pl.92.22"></a><var>92.22</var>of market value under clause (8) (6) or otherwise, a class, or classes of the real property of <br/>
<a id="pl.92.23"></a><var>92.23</var>any town or district in any county, or the valuation for a part of a class, a class, or classes <br/>
<a id="pl.92.24"></a><var>92.24</var>of the real property of any county not in towns or cities, should be raised or reduced, <br/>
<a id="pl.92.25"></a><var>92.25</var>without raising or reducing the other real property of such county, or without raising or <br/>
<a id="pl.92.26"></a><var>92.26</var>reducing it in the same ratio, the board may add to, or take from, the valuation of a part of <br/>
<a id="pl.92.27"></a><var>92.27</var>a class, a class, or classes in any one or more of such towns or cities, or of the property not <br/>
<a id="pl.92.28"></a><var>92.28</var>in towns or cities, such percent as the board believes will raise or reduce the same to its <br/>
<a id="pl.92.29"></a><var>92.29</var>market value in money;<br/>
<a id="pl.92.30"></a><var>92.30</var>(4) (3) The board shall add to or take from the aggregate valuation of any part of a <br/>
<a id="pl.92.31"></a><var>92.31</var>class, a class, or classes of personal property of any county, town, or city, which the <br/>
<a id="pl.92.32"></a><var>92.32</var>board believes to be valued below or above the market value thereof, such percent as will <br/>
<a id="pl.92.33"></a><var>92.33</var>raise the same to its market value in money;<br/>
<a id="pl.92.34"></a><var>92.34</var>(5) The board shall take from the aggregate valuation of any part of a class, a class, <br/>
<a id="pl.92.35"></a><var>92.35</var>or classes of personal property in any county, town or city, which the board believes to <br/>
<a id="pl.93.1"></a><var>93.1</var>be valued above the market value thereof, such percent as will reduce the same to its <br/>
<a id="pl.93.2"></a><var>93.2</var>market value in money;<br/>
<a id="pl.93.3"></a><var>93.3</var>(6) (4) The board shall not reduce the aggregate valuation of all the property of the <br/>
<a id="pl.93.4"></a><var>93.4</var>state, as returned by the several county auditors, more than one percent on the whole <br/>
<a id="pl.93.5"></a><var>93.5</var>valuation thereof;<br/>
<a id="pl.93.6"></a><var>93.6</var>(7) (5) When it would be of assistance in equalizing values the board may require any <br/>
<a id="pl.93.7"></a><var>93.7</var>county auditor to furnish statements showing assessments of real and personal property <br/>
<a id="pl.93.8"></a><var>93.8</var>of any individuals, firms, or corporations within the county. The board shall consider <br/>
<a id="pl.93.9"></a><var>93.9</var>and equalize such assessments and may increase the assessment of individuals, firms, or <br/>
<a id="pl.93.10"></a><var>93.10</var>corporations above the amount returned by the county board of equalization when it shall <br/>
<a id="pl.93.11"></a><var>93.11</var>appear to be undervalued, first giving notice to such persons of the intention of the board <br/>
<a id="pl.93.12"></a><var>93.12</var>so to do, which notice shall fix a time and place of hearing. The board shall not decrease <br/>
<a id="pl.93.13"></a><var>93.13</var>any such assessment below the valuation placed by the county board of equalization;<br/>
<a id="pl.93.14"></a><var>93.14</var>(8) (6) In equalizing values pursuant to this section, the board shall utilize a 12-month <br/>
<a id="pl.93.15"></a><var>93.15</var>assessment/sales ratio study conducted by the Department of Revenue containing only <br/>
<a id="pl.93.16"></a><var>93.16</var>sales that are filed in the county auditor's office under section 
         <statute_ref>272.115</statute_ref>, by November 1 of <br/>
<a id="pl.93.17"></a><var>93.17</var>the previous year and that occurred between October 1 of the year immediately preceding <br/>
<a id="pl.93.18"></a><var>93.18</var>the previous year and September 30 of the previous year.<br/>
<a id="pl.93.19"></a><var>93.19</var>The assessment/sales ratio study may separate the values of residential property <br/>
<a id="pl.93.20"></a><var>93.20</var>into market value categories. The board may adjust the market value categories and the <br/>
<a id="pl.93.21"></a><var>93.21</var>number of categories as necessary to create an adequate sample size for each market value <br/>
<a id="pl.93.22"></a><var>93.22</var>category. The board may determine the adequate sample size. To the extent practicable, <br/>
<a id="pl.93.23"></a><var>93.23</var>the methodology used in preparing the assessment/sales ratio study must be consistent <br/>
<a id="pl.93.24"></a><var>93.24</var>with the most recent Standard on Assessment Sales Ratio Studies published by the <br/>
<a id="pl.93.25"></a><var>93.25</var>Assessment Standards Committee of the International Association of Assessing Officers. <br/>
<a id="pl.93.26"></a><var>93.26</var>The board may determine the geographic area used in preparing the study to accurately <br/>
<a id="pl.93.27"></a><var>93.27</var>equalize values. A sales ratio study separating residential property into market value <br/>
<a id="pl.93.28"></a><var>93.28</var>categories may not be used as the basis for a petition under chapter 278.<br/>
<a id="pl.93.29"></a><var>93.29</var>The sales prices used in the study must be discounted for terms of financing. The <br/>
<a id="pl.93.30"></a><var>93.30</var>board shall use the median ratio as the statistical measure of the level of assessment for <br/>
<a id="pl.93.31"></a><var>93.31</var>any particular category of property; and<br/>
<a id="pl.93.32"></a><var>93.32</var>(9) (7) The board shall receive from each county the estimated market values on the <br/>
<a id="pl.93.33"></a><var>93.33</var>assessment date falling within the study period for all parcels by magnetic tape or other a<br/>
<a id="pl.93.34"></a><var>93.34</var> medium as prescribed by the commissioner of revenue.<br/>
<a id="pl.93.35"></a><var>93.35</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.15.0"></a><a id="pl.94.1"></a><var>94.1</var>    Sec. 15. Minnesota Statutes 2012, section 270.12, subdivision 4, is amended to read:<br/>
<a id="pl.94.2"></a><var>94.2</var>    Subd. 4. <b>Public utility property.</b> For purposes of equalization only, public utility <br/>
<a id="pl.94.3"></a><var>94.3</var>personal property shall be treated as a separate class of property notwithstanding the fact <br/>
<a id="pl.94.4"></a><var>94.4</var>that its class rate is the same as commercial-industrial property.<br/>
<a id="pl.94.5"></a><var>94.5</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.16.0"></a><a id="pl.94.6"></a><var>94.6</var>    Sec. 16. Minnesota Statutes 2012, section 270A.03, subdivision 2, is amended to read:<br/>
<a id="pl.94.7"></a><var>94.7</var>    Subd. 2. <b>Claimant agency.</b> "Claimant agency" means any state agency, as defined <br/>
<a id="pl.94.8"></a><var>94.8</var>by section 
         <statute_ref>14.02, subdivision 2</statute_ref>, the regents of the University of Minnesota, any district <br/>
<a id="pl.94.9"></a><var>94.9</var>court of the state, any county, any statutory or home rule charter city, including a city that <br/>
<a id="pl.94.10"></a><var>94.10</var>is presenting a claim for a municipal hospital or a public library or a municipal ambulance <br/>
<a id="pl.94.11"></a><var>94.11</var>service, a hospital district, a private nonprofit hospital that leases its building from the <br/>
<a id="pl.94.12"></a><var>94.12</var>county or city in which it is located, any ambulance service licensed under chapter 144E, <br/>
<a id="pl.94.13"></a><var>94.13</var>any public agency responsible for child support enforcement, any public agency responsible <br/>
<a id="pl.94.14"></a><var>94.14</var>for the collection of court-ordered restitution, and any public agency established by <br/>
<a id="pl.94.15"></a><var>94.15</var>general or special law that is responsible for the administration of a low-income housing <br/>
<a id="pl.94.16"></a><var>94.16</var>program, and the Minnesota collection enterprise as defined in section 
<statute_ref>16D.02, subdivision <br/>
<a id="pl.94.17"></a><var>94.17</var>8
</statute_ref>, for the purpose of collecting the costs imposed under section 
<statute_ref>16D.11</statute_ref>.<br/>
<a id="pl.94.18"></a><var>94.18</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.17.0"></a><a id="pl.94.19"></a><var>94.19</var>    Sec. 17. Minnesota Statutes 2012, section 270B.14, subdivision 3, is amended to read:<br/>
<a id="pl.94.20"></a><var>94.20</var>    Subd. 3. <b>Administration of enterprise</b><b>,</b><b> </b><b>and </b><b>job opportunity</b><b>, and biotechnology </b><br/>
<a id="pl.94.21"></a><var>94.21</var><b>and health sciences industry zone</b><b> programs.</b> The commissioner may disclose return <br/>
<a id="pl.94.22"></a><var>94.22</var>information relating to the taxes imposed by chapters 290 and 297A to the Department of <br/>
<a id="pl.94.23"></a><var>94.23</var>Employment and Economic Development or a municipality with a border city enterprise <br/>
<a id="pl.94.24"></a><var>94.24</var>zone as defined under section 
         <statute_ref>469.166</statute_ref>, but only as necessary to administer the funding <br/>
<a id="pl.94.25"></a><var>94.25</var>limitations under section 
         <statute_ref>469.169</statute_ref>, or to the Department of Employment and Economic <br/>
<a id="pl.94.26"></a><var>94.26</var>Development and appropriate officials from the local government units in which a <br/>
<a id="pl.94.27"></a><var>94.27</var>qualified business is located but only as necessary to enforce the job opportunity building <br/>
<a id="pl.94.28"></a><var>94.28</var>zone benefits under section 
         <statute_ref>469.315</statute_ref>, or biotechnology and health sciences industry zone <br/>
<a id="pl.94.29"></a><var>94.29</var>benefits under section 
<statute_ref>469.336</statute_ref>.<br/>
<a id="pl.94.30"></a><var>94.30</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2016.<br/>
<br/>
<a id="bill.7.18.0"></a><a id="pl.95.1"></a><var>95.1</var>    Sec. 18. Minnesota Statutes 2012, section 270C.085, is amended to read:<br/>
<a id="pl.95.2"></a><var>95.2</var><b>270C.085 NOTIFICATION REQUIREMENTS; SALES AND USE TAXES.</b><br/>
<a id="pl.95.3"></a><var>95.3</var>The commissioner of revenue shall establish a means of electronically notifying <br/>
<a id="pl.95.4"></a><var>95.4</var>persons holding a sales tax permit under section 
         <statute_ref>297A.84</statute_ref> of any statutory change in <br/>
<a id="pl.95.5"></a><var>95.5</var>chapter 297A and any issuance or change in any administrative rule, revenue notice, or <br/>
<a id="pl.95.6"></a><var>95.6</var>sales tax fact sheet or other written information provided by the department explaining the <br/>
<a id="pl.95.7"></a><var>95.7</var>interpretation or administration of the tax imposed under that chapter. The notification <br/>
<a id="pl.95.8"></a><var>95.8</var>must indicate the basic subject of the statute, rule, fact sheet, or other material and provide <br/>
<a id="pl.95.9"></a><var>95.9</var>an electronic link to the material. Any person holding a sales tax permit that provides <br/>
<a id="pl.95.10"></a><var>95.10</var>an electronic address to the department must receive these notifications unless they <br/>
<a id="pl.95.11"></a><var>95.11</var>specifically request electronically, or in writing, to be removed from the notification list. <br/>
<a id="pl.95.12"></a><var>95.12</var>This requirement does not replace traditional means of notifying the general public or <br/>
<a id="pl.95.13"></a><var>95.13</var>persons without access to electronic communications of changes in the sales tax law. The <br/>
<a id="pl.95.14"></a><var>95.14</var>electronic notification must begin no later than December 31, 2009.<br/>
<a id="pl.95.15"></a><var>95.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.19.0"></a><a id="pl.95.16"></a><var>95.16</var>    Sec. 19. Minnesota Statutes 2012, section 270C.52, subdivision 2, is amended to read:<br/>
<a id="pl.95.17"></a><var>95.17</var>    Subd. 2. <b>Payment agreements.</b> (a) When any portion of any tax payable to the <br/>
<a id="pl.95.18"></a><var>95.18</var>commissioner together with interest and penalty thereon, if any, has not been paid, the <br/>
<a id="pl.95.19"></a><var>95.19</var>commissioner may extend the time for payment for a further period. When the authority <br/>
<a id="pl.95.20"></a><var>95.20</var>of this section is invoked, the extension shall be evidenced by written agreement signed by <br/>
<a id="pl.95.21"></a><var>95.21</var>the taxpayer and the commissioner, stating the amount of the tax with penalty and interest, <br/>
<a id="pl.95.22"></a><var>95.22</var>if any, and providing for the payment of the amount in installments.<br/>
<a id="pl.95.23"></a><var>95.23</var>(b) The agreement may contain a confession of judgment for the amount and for any <br/>
<a id="pl.95.24"></a><var>95.24</var>unpaid portion thereof. If the agreement contains a confession of judgment, the confession <br/>
<a id="pl.95.25"></a><var>95.25</var>of judgment must provide that the commissioner may enter judgment against the taxpayer <br/>
<a id="pl.95.26"></a><var>95.26</var>in the district court of the county of residence as shown upon the taxpayer's tax return for <br/>
<a id="pl.95.27"></a><var>95.27</var>the unpaid portion of the amount specified in the extension agreement.<br/>
<a id="pl.95.28"></a><var>95.28</var>(c) The agreement shall provide that it can be terminated, after notice by the <br/>
<a id="pl.95.29"></a><var>95.29</var>commissioner, if information provided by the taxpayer prior to the agreement was <br/>
<a id="pl.95.30"></a><var>95.30</var>inaccurate or incomplete, collection of the tax covered by the agreement is in jeopardy, <br/>
<a id="pl.95.31"></a><var>95.31</var>there is a subsequent change in the taxpayer's financial condition, the taxpayer has failed <br/>
<a id="pl.95.32"></a><var>95.32</var>to make a payment due under the agreement, or the taxpayer has failed to pay any other <br/>
<a id="pl.95.33"></a><var>95.33</var>tax or file a tax return coming due after the agreement.<br/>
<a id="pl.96.1"></a><var>96.1</var>(d) The notice must be given at least 14 calendar days prior to termination, and shall <br/>
<a id="pl.96.2"></a><var>96.2</var>advise the taxpayer of the right to request a reconsideration from the commissioner of <br/>
<a id="pl.96.3"></a><var>96.3</var>whether termination is reasonable and appropriate under the circumstances. A request for <br/>
<a id="pl.96.4"></a><var>96.4</var>reconsideration does not stay collection action beyond the 14-day notice period. If the <br/>
<a id="pl.96.5"></a><var>96.5</var>commissioner has reason to believe that collection of the tax covered by the agreement <br/>
<a id="pl.96.6"></a><var>96.6</var>is in jeopardy, the commissioner may proceed under section 
         <statute_ref>270C.36</statute_ref> and terminate the <br/>
<a id="pl.96.7"></a><var>96.7</var>agreement without regard to the 14-day period.<br/>
<a id="pl.96.8"></a><var>96.8</var>(e) The commissioner may accept other collateral the commissioner considers <br/>
<a id="pl.96.9"></a><var>96.9</var>appropriate to secure satisfaction of the tax liability. The principal sum specified in the <br/>
<a id="pl.96.10"></a><var>96.10</var>agreement shall bear interest at the rate specified in section 
         <statute_ref>270C.40</statute_ref> on all unpaid portions <br/>
<a id="pl.96.11"></a><var>96.11</var>thereof until the same has been fully paid or the unpaid portion thereof has been entered as <br/>
<a id="pl.96.12"></a><var>96.12</var>a judgment. The judgment shall bear interest at the rate specified in section 
         <statute_ref>270C.40</statute_ref>.<br/>
<a id="pl.96.13"></a><var>96.13</var>(f) If it appears to the commissioner that the tax reported by the taxpayer is in excess <br/>
<a id="pl.96.14"></a><var>96.14</var>of the amount actually owing by the taxpayer, the extension agreement or the judgment <br/>
<a id="pl.96.15"></a><var>96.15</var>entered pursuant thereto shall be corrected. If after making the extension agreement <br/>
<a id="pl.96.16"></a><var>96.16</var>or entering judgment with respect thereto, the commissioner determines that the tax as <br/>
<a id="pl.96.17"></a><var>96.17</var>reported by the taxpayer is less than the amount actually due, the commissioner shall <br/>
<a id="pl.96.18"></a><var>96.18</var>assess a further tax in accordance with the provisions of law applicable to the tax.<br/>
<a id="pl.96.19"></a><var>96.19</var>(g) The authority granted to the commissioner by this section is in addition to any <br/>
<a id="pl.96.20"></a><var>96.20</var>other authority granted to the commissioner by law to extend the time of payment or the <br/>
<a id="pl.96.21"></a><var>96.21</var>time for filing a return and shall not be construed in limitation thereof.<br/>
<a id="pl.96.22"></a><var>96.22</var>(h) The commissioner shall charge a fee for entering into payment agreements that <br/>
<a id="pl.96.23"></a><var>96.23</var>reflects the commissioner's costs for entering into payment agreements. The fee is set at <br/>
<a id="pl.96.24"></a><var>96.24</var>$50 and is charged for entering into a payment agreement, for entering into a new payment <br/>
<a id="pl.96.25"></a><var>96.25</var>agreement after the taxpayer has defaulted on a prior agreement, and for entering into a <br/>
<a id="pl.96.26"></a><var>96.26</var>new payment agreement as a result of renegotiation of the terms of an existing agreement. <br/>
<a id="pl.96.27"></a><var>96.27</var>The fee is paid to the commissioner before the payment agreement becomes effective and <br/>
<a id="pl.96.28"></a><var>96.28</var>does not reduce the amount of the liability.<br/>
<a id="pl.96.29"></a><var>96.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.20.0"></a><a id="pl.96.30"></a><var>96.30</var>    Sec. 20. Minnesota Statutes 2012, section 272.01, subdivision 1, is amended to read:<br/>
<a id="pl.96.31"></a><var>96.31</var>    Subdivision 1. <b>Generally taxable.</b> All real and personal property in this state, and <br/>
<a id="pl.96.32"></a><var>96.32</var>all personal property of persons residing therein, including the property of corporations, <br/>
<a id="pl.96.33"></a><var>96.33</var>banks, banking companies, and bankers, is taxable, except Indian lands and such other <br/>
<a id="pl.96.34"></a><var>96.34</var>property as is by law exempt from taxation.<br/>
<a id="pl.97.1"></a><var>97.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.21.0"></a><a id="pl.97.2"></a><var>97.2</var>    Sec. 21. Minnesota Statutes 2012, section 272.01, subdivision 3, is amended to read:<br/>
<a id="pl.97.3"></a><var>97.3</var>    Subd. 3. <b>Exceptions.</b> The provisions of subdivision 2 shall not apply to:<br/>
<a id="pl.97.4"></a><var>97.4</var>(a) Federal property for which payments are made in lieu of taxes in amounts <br/>
<a id="pl.97.5"></a><var>97.5</var>equivalent to taxes which might otherwise be lawfully assessed;<br/>
<a id="pl.97.6"></a><var>97.6</var>(b) Real estate exempt from ad valorem taxes and taxes in lieu thereof which is <br/>
<a id="pl.97.7"></a><var>97.7</var>leased, loaned, or otherwise made available to telephone companies or electric, light <br/>
<a id="pl.97.8"></a><var>97.8</var>and power companies upon which personal property consisting of transmission and <br/>
<a id="pl.97.9"></a><var>97.9</var>distribution lines is situated and assessed pursuant to sections 
         <statute_ref>273.37</statute_ref>, 
         <statute_ref>273.38</statute_ref>, 
         <statute_ref>273.40</statute_ref> <br/>
<a id="pl.97.10"></a><var>97.10</var>and 
         <statute_ref>273.41</statute_ref>, or upon which are situated the communication lines of express, railway, or <br/>
<a id="pl.97.11"></a><var>97.11</var>telephone or telegraph companies, or pipelines used for the transmission and distribution <br/>
<a id="pl.97.12"></a><var>97.12</var>of petroleum products, or the equipment items of a cable communications company <br/>
<a id="pl.97.13"></a><var>97.13</var>subject to sections 
         <statute_ref>238.35</statute_ref> to 
         <statute_ref>238.42</statute_ref>;<br/>
<a id="pl.97.14"></a><var>97.14</var>(c) Property presently owned by any educational institution chartered by the <br/>
<a id="pl.97.15"></a><var>97.15</var>territorial legislature;<br/>
<a id="pl.97.16"></a><var>97.16</var>(d) Indian lands;<br/>
<a id="pl.97.17"></a><var>97.17</var>(e) Property of any corporation organized as a tribal corporation under the Indian <br/>
<a id="pl.97.18"></a><var>97.18</var>Reorganization Act of June 18, 1934, (Statutes at Large, volume 48, page 984);<br/>
<a id="pl.97.19"></a><var>97.19</var>(f) Real property owned by the state and leased pursuant to section 
         <statute_ref>161.23</statute_ref> or <br/>
<statute_ref><a id="pl.97.20"></a><var>97.20</var>161.431
         </statute_ref>, and acts amendatory thereto;<br/>
<a id="pl.97.21"></a><var>97.21</var>(g) Real property owned by a seaway port authority on June 1, 1967, upon which <br/>
<a id="pl.97.22"></a><var>97.22</var>there has been constructed docks, warehouses, tank farms, administrative and maintenance <br/>
<a id="pl.97.23"></a><var>97.23</var>buildings, railroad and ship terminal facilities and other maritime and transportation <br/>
<a id="pl.97.24"></a><var>97.24</var>facilities or those directly related thereto, together with facilities for the handling of <br/>
<a id="pl.97.25"></a><var>97.25</var>passengers and baggage and for the handling of freight and bulk liquids, and personal <br/>
<a id="pl.97.26"></a><var>97.26</var>property owned by a seaway port authority used or usable in connection therewith, when <br/>
<a id="pl.97.27"></a><var>97.27</var>said property is leased to a private individual, association or corporation, but only when <br/>
<a id="pl.97.28"></a><var>97.28</var>such lease provides that the said facilities are available to the public for the loading and <br/>
<a id="pl.97.29"></a><var>97.29</var>unloading of passengers and their baggage and the handling, storage, care, shipment, <br/>
<a id="pl.97.30"></a><var>97.30</var>and delivery of merchandise, freight and baggage and other maritime and transportation <br/>
<a id="pl.97.31"></a><var>97.31</var>activities and functions directly related thereto, but not including property used for grain <br/>
<a id="pl.97.32"></a><var>97.32</var>elevator facilities; it being the declared policy of this state that such property when <br/>
<a id="pl.97.33"></a><var>97.33</var>so leased is public property used exclusively for a public purpose, notwithstanding the <br/>
<a id="pl.97.34"></a><var>97.34</var>one-year limitation in the provisions of section 
         <statute_ref>273.19</statute_ref>;<br/>
<a id="pl.98.1"></a><var>98.1</var>(h) Notwithstanding the provisions of clause (g), when the annual rental received by <br/>
<a id="pl.98.2"></a><var>98.2</var>a seaway port authority in any calendar year for such leased property exceeds an amount <br/>
<a id="pl.98.3"></a><var>98.3</var>reasonably required for administrative expense of the authority per year, plus promotional <br/>
<a id="pl.98.4"></a><var>98.4</var>expense for the authority not to exceed the sum of $100,000 per year, to be expended <br/>
<a id="pl.98.5"></a><var>98.5</var>when and in the manner decided upon by the commissioners, plus an amount sufficient to <br/>
<a id="pl.98.6"></a><var>98.6</var>pay all installments of principal and interest due, or to become due, during such calendar <br/>
<a id="pl.98.7"></a><var>98.7</var>year and the next succeeding year on any revenue bonds issued by the authority, plus <br/>
<a id="pl.98.8"></a><var>98.8</var>25 percent of the gross annual rental to be retained by the authority for improvement, <br/>
<a id="pl.98.9"></a><var>98.9</var>development, or other contingencies, the authority shall make a payment in lieu of real <br/>
<a id="pl.98.10"></a><var>98.10</var>and personal property taxes of a reasonable portion of the remaining annual rental to the <br/>
<a id="pl.98.11"></a><var>98.11</var>county treasurer of the county in which such seaway port authority is principally located. <br/>
<a id="pl.98.12"></a><var>98.12</var>Any such payments to the county treasurer shall be disbursed by the treasurer on the same <br/>
<a id="pl.98.13"></a><var>98.13</var>basis as real estate taxes are divided among the various governmental units, but if such <br/>
<a id="pl.98.14"></a><var>98.14</var>port authority shall have received funds from the state of Minnesota and funds from any <br/>
<a id="pl.98.15"></a><var>98.15</var>city and county pursuant to Laws 1957, chapters 648, 831, and 849 and acts amendatory <br/>
<a id="pl.98.16"></a><var>98.16</var>thereof, then such disbursement by the county treasurer shall be on the same basis as real <br/>
<a id="pl.98.17"></a><var>98.17</var>estate taxes are divided among the various governmental units, except that the portion of <br/>
<a id="pl.98.18"></a><var>98.18</var>such payments which would otherwise go to other taxing units shall be divided equally <br/>
<a id="pl.98.19"></a><var>98.19</var>among the state of Minnesota and said county and city.<br/>
<a id="pl.98.20"></a><var>98.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.22.0"></a><a id="pl.98.21"></a><var>98.21</var>    Sec. 22. Minnesota Statutes 2012, section 272.025, subdivision 1, is amended to read:<br/>
<a id="pl.98.22"></a><var>98.22</var>    Subdivision 1. <b>Statement of exemption.</b> (a) Except in the case of property owned <br/>
<a id="pl.98.23"></a><var>98.23</var>by the state of Minnesota or any political subdivision thereof, and property exempt from <br/>
<a id="pl.98.24"></a><var>98.24</var>taxation under section 
         <statute_ref>272.02, subdivisions 9, 10, 13, 15, 18, 20, and 22</statute_ref> to 25, and at the <br/>
<a id="pl.98.25"></a><var>98.25</var>times provided in subdivision 3, a taxpayer claiming an exemption from taxation on <br/>
<a id="pl.98.26"></a><var>98.26</var>property described in section 
         <statute_ref>272.02</statute_ref>, subdivisions 1 2 to 33, must file a statement of <br/>
<a id="pl.98.27"></a><var>98.27</var>exemption with the assessor of the assessment district in which the property is located.<br/>
<a id="pl.98.28"></a><var>98.28</var>(b) A taxpayer claiming an exemption from taxation on property described in section <br/>
<statute_ref><a id="pl.98.29"></a><var>98.29</var>272.02, subdivision 10
         </statute_ref>, must file a statement of exemption with the commissioner of <br/>
<a id="pl.98.30"></a><var>98.30</var>revenue, on or before February 15 of each year for which the taxpayer claims an exemption.<br/>
<a id="pl.98.31"></a><var>98.31</var>(c) In case of sickness, absence or other disability or for good cause, the assessor <br/>
<a id="pl.98.32"></a><var>98.32</var>or the commissioner may extend the time for filing the statement of exemption for a <br/>
<a id="pl.98.33"></a><var>98.33</var>period not to exceed 60 days.<br/>
<a id="pl.98.34"></a><var>98.34</var>(d) The commissioner of revenue shall prescribe the form and contents of the <br/>
<a id="pl.98.35"></a><var>98.35</var>statement of exemption.<br/>
<a id="pl.99.1"></a><var>99.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.23.0"></a><a id="pl.99.2"></a><var>99.2</var>    Sec. 23. Minnesota Statutes 2012, section 272.027, subdivision 1, is amended to read:<br/>
<a id="pl.99.3"></a><var>99.3</var>    Subdivision 1. <b>Electricity generated to produce goods and services.</b> Personal <br/>
<a id="pl.99.4"></a><var>99.4</var>property used to generate electric power is exempt from property taxation if the electric <br/>
<a id="pl.99.5"></a><var>99.5</var>power is used to manufacture or produce goods, products, or services, other than electric <br/>
<a id="pl.99.6"></a><var>99.6</var>power, by the owner of the electric generation plant. Except as provided in subdivisions 2 <br/>
<a id="pl.99.7"></a><var>99.7</var>and 3, The exemption does not apply to property used to produce electric power for sale <br/>
<a id="pl.99.8"></a><var>99.8</var>to others and does not apply to real property. In determining the value subject to tax, <br/>
<a id="pl.99.9"></a><var>99.9</var>a proportionate share of the value of the generating facilities, equal to the proportion <br/>
<a id="pl.99.10"></a><var>99.10</var>that the power sold to others bears to the total generation of the plant, is subject to the <br/>
<a id="pl.99.11"></a><var>99.11</var>general property tax in the same manner as other property. Power generated in such a <br/>
<a id="pl.99.12"></a><var>99.12</var>plant and exchanged for an equivalent amount of power that is used for the manufacture or <br/>
<a id="pl.99.13"></a><var>99.13</var>production of goods, products, or services other than electric power by the owner of the <br/>
<a id="pl.99.14"></a><var>99.14</var>generating plant is considered to be used by the owner of the plant.<br/>
<a id="pl.99.15"></a><var>99.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.24.0"></a><a id="pl.99.16"></a><var>99.16</var>    Sec. 24. Minnesota Statutes 2012, section 272.029, subdivision 6, is amended to read:<br/>
<a id="pl.99.17"></a><var>99.17</var>    Subd. 6. <b>Distribution of revenues.</b> Revenues from the taxes imposed under <br/>
<a id="pl.99.18"></a><var>99.18</var>subdivision 5 must be part of the settlement between the county treasurer and the county <br/>
<a id="pl.99.19"></a><var>99.19</var>auditor under section 
         <statute_ref>276.09</statute_ref>. The revenue must be distributed by the county auditor or the <br/>
<a id="pl.99.20"></a><var>99.20</var>county treasurer to local taxing jurisdictions in which the wind energy conversion system <br/>
<a id="pl.99.21"></a><var>99.21</var>is located as follows: beginning with distributions in 2010, 80 percent to counties; and 20 <br/>
<a id="pl.99.22"></a><var>99.22</var>percent to cities and townships; and for distributions occurring in 2006 to 2009, 80 percent <br/>
<a id="pl.99.23"></a><var>99.23</var>to counties; 14 percent to cities and townships; and six percent to school districts.<br/>
<a id="pl.99.24"></a><var>99.24</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.25.0"></a><a id="pl.99.25"></a><var>99.25</var>    Sec. 25. Minnesota Statutes 2012, section 273.061, subdivision 6, is amended to read:<br/>
<a id="pl.99.26"></a><var>99.26</var>    Subd. 6. <b>Salaries; expenses.</b> The salaries of the county assessor and assistants and <br/>
<a id="pl.99.27"></a><var>99.27</var>clerical help, shall be fixed by the board of county commissioners and shall be payable in <br/>
<a id="pl.99.28"></a><var>99.28</var>monthly installments out of the general revenue fund of the county. In counties with a <br/>
<a id="pl.99.29"></a><var>99.29</var>population of less than 50,000 inhabitants, according to the then last preceding federal <br/>
<a id="pl.99.30"></a><var>99.30</var>census, the board of county commissioners shall not fix the salary of the county assessor at <br/>
<a id="pl.99.31"></a><var>99.31</var>an amount below the following schedule:<br/>
<a id="pl.99.32"></a><var>99.32</var>In counties with a population of less than 6,500, $5,900;<br/>
<a id="pl.100.1"></a><var>100.1</var>In counties with a population of 6,500 but less than 12,000, $6,200;<br/>
<a id="pl.100.2"></a><var>100.2</var>In counties with a population of 12,000 but less than 16,000, $6,500;<br/>
<a id="pl.100.3"></a><var>100.3</var>In counties with a population of 16,000 but less than 21,000, $6,700;<br/>
<a id="pl.100.4"></a><var>100.4</var>In counties with a population of 21,000 but less than 30,000, $6,900;<br/>
<a id="pl.100.5"></a><var>100.5</var>In counties with a population of 30,000 but less than 39,500, $7,100;<br/>
<a id="pl.100.6"></a><var>100.6</var>In counties with a population of 39,500 but less than 50,000, $7,300;<br/>
<a id="pl.100.7"></a><var>100.7</var>In counties with a population of 50,000 or more, $8,300.<br/>
<a id="pl.100.8"></a><var>100.8</var>In addition to their salaries, the county assessor and assistants shall be allowed their <br/>
<a id="pl.100.9"></a><var>100.9</var>expenses for reasonable and necessary travel in the performance of their duties, including <br/>
<a id="pl.100.10"></a><var>100.10</var>necessary travel, lodging and meal expense incurred by them while attending meetings of <br/>
<a id="pl.100.11"></a><var>100.11</var>instructions or official hearings called by the commissioner of revenue. These expenses <br/>
<a id="pl.100.12"></a><var>100.12</var>shall be payable out of the general revenue fund of the county, and shall be allowed on the <br/>
<a id="pl.100.13"></a><var>100.13</var>same basis as such expenses are allowed to other county officers.<br/>
<a id="pl.100.14"></a><var>100.14</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.26.0"></a><a id="pl.100.15"></a><var>100.15</var>    Sec. 26. Minnesota Statutes 2012, section 273.10, is amended to read:<br/>
<a id="pl.100.16"></a><var>100.16</var><b>273.10 SCHOOL DISTRICTS.</b><br/>
<a id="pl.100.17"></a><var>100.17</var>When assessing personal property the county assessor shall designate the number of <br/>
<a id="pl.100.18"></a><var>100.18</var>the school district in which each person assessed is liable for tax, by writing the number <br/>
<a id="pl.100.19"></a><var>100.19</var>of the district opposite each assessment in a column provided for that purpose in the <br/>
<a id="pl.100.20"></a><var>100.20</var>assessment book. When the personal property of any person is assessable in several <br/>
<a id="pl.100.21"></a><var>100.21</var>school districts, the amount in each shall be assessed separately, and the name of the <br/>
<a id="pl.100.22"></a><var>100.22</var>owner placed opposite each amount.<br/>
<a id="pl.100.23"></a><var>100.23</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.27.0"></a><a id="pl.100.24"></a><var>100.24</var>    Sec. 27. Minnesota Statutes 2012, section 273.11, subdivision 13, is amended to read:<br/>
<a id="pl.100.25"></a><var>100.25</var>    Subd. 13. <b>Valuation of income-producing property.</b> Beginning with the 1995 <br/>
<a id="pl.100.26"></a><var>100.26</var>assessment, Only accredited assessors or senior accredited assessors or other licensed <br/>
<a id="pl.100.27"></a><var>100.27</var>assessors who have successfully completed at least two income-producing property <br/>
<a id="pl.100.28"></a><var>100.28</var>appraisal courses may value income-producing property for ad valorem tax purposes. <br/>
<a id="pl.100.29"></a><var>100.29</var>"Income-producing property" as used in this subdivision means the taxable property in <br/>
<a id="pl.100.30"></a><var>100.30</var>class 3a and 3b in section 
         <statute_ref>273.13, subdivision 24</statute_ref>; class 4a and 4c, except for seasonal <br/>
<a id="pl.100.31"></a><var>100.31</var>recreational property not used for commercial purposes; and class 5 in section 
         <statute_ref>273.13, <br/>
<a id="pl.100.32"></a><var>100.32</var>subdivision 31
         </statute_ref>. "Income-producing property" includes any property in class 4e in section <br/>
<statute_ref><a id="pl.100.33"></a><var>100.33</var>273.13, subdivision 25
         </statute_ref>, that would be income-producing property under the definition in <br/>
<a id="pl.101.1"></a><var>101.1</var>this subdivision if it were not substandard. "Income-producing property appraisal course" <br/>
<a id="pl.101.2"></a><var>101.2</var>as used in this subdivision means a course of study of approximately 30 instructional <br/>
<a id="pl.101.3"></a><var>101.3</var>hours, with a final comprehensive test. An assessor must successfully complete the final <br/>
<a id="pl.101.4"></a><var>101.4</var>examination for each of the two required courses. The course must be approved by the <br/>
<a id="pl.101.5"></a><var>101.5</var>board of assessors.<br/>
<a id="pl.101.6"></a><var>101.6</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.28.0"></a><a id="pl.101.7"></a><var>101.7</var>    Sec. 28. Minnesota Statutes 2012, section 273.112, subdivision 6a, is amended to read:<br/>
<a id="pl.101.8"></a><var>101.8</var>    Subd. 6a. <b>Guidelines issued by commissioner.</b> The commissioner of revenue shall <br/>
<a id="pl.101.9"></a><var>101.9</var>develop and issue guidelines for qualification by private golf clubs under this section <br/>
<a id="pl.101.10"></a><var>101.10</var>covering the access to and use of the golf course by members and other adults so as to be <br/>
<a id="pl.101.11"></a><var>101.11</var>consistent with the purposes and terms of this section. The guidelines shall be mailed to <br/>
<a id="pl.101.12"></a><var>101.12</var>the county attorney and assessor of each county not later than 60 days following May 26, <br/>
<a id="pl.101.13"></a><var>101.13</var>1989. Within 15 days of receipt of the guidelines from the commissioner, the assessor <br/>
<a id="pl.101.14"></a><var>101.14</var>shall mail a copy of the guidelines to each golf club in the county.<br/>
<a id="pl.101.15"></a><var>101.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.29.0"></a><a id="pl.101.16"></a><var>101.16</var>    Sec. 29. Minnesota Statutes 2013 Supplement, section 273.1325, subdivision 2, <br/>
<a id="pl.101.17"></a><var>101.17</var>is amended to read:<br/>
<a id="pl.101.18"></a><var>101.18</var>    Subd. 2. <b>Methodology.</b> In making its annual assessment/sales ratio studies, the <br/>
<a id="pl.101.19"></a><var>101.19</var>Department of Revenue must use a methodology consistent with the most recent Standard <br/>
<a id="pl.101.20"></a><var>101.20</var>on Assessment Ratio Studies published by the assessment standards committee of the <br/>
<a id="pl.101.21"></a><var>101.21</var>International Association of Assessing Officers. The commissioner of revenue shall <br/>
<a id="pl.101.22"></a><var>101.22</var>supplement this general methodology with specific procedures necessary for execution of <br/>
<a id="pl.101.23"></a><var>101.23</var>the study in accordance with other Minnesota laws impacting the assessment/sales ratio <br/>
<a id="pl.101.24"></a><var>101.24</var>study. The commissioner shall document these specific procedures in writing and shall <br/>
<a id="pl.101.25"></a><var>101.25</var>publish the procedures in the State Register, but these procedures will not be considered <br/>
<a id="pl.101.26"></a><var>101.26</var>"rules" pursuant to the Minnesota Administrative Procedure Act. When property is sold and <br/>
<a id="pl.101.27"></a><var>101.27</var>the purchaser changes its use in a manner that would result in a change of classification of <br/>
<a id="pl.101.28"></a><var>101.28</var>the property, the assessment sales ratio study under this subdivision must take into account <br/>
<a id="pl.101.29"></a><var>101.29</var>that changed classification as soon as practicable. A change in status from homestead to <br/>
<a id="pl.101.30"></a><var>101.30</var>nonhomestead or from nonhomestead to homestead is not a change under this subdivision. <br/>
<a id="pl.101.31"></a><var>101.31</var>For purposes of this section, sections 
         <statute_ref>270.12, subdivision 2</statute_ref>, clause (8) (6), and 
         <statute_ref>278.05, <br/>
<a id="pl.101.32"></a><var>101.32</var>subdivision 4
         </statute_ref>, the commissioner of revenue shall exclude from the assessment/sales ratio <br/>
<a id="pl.101.33"></a><var>101.33</var>study the sale of any nonagricultural property which does not contain an improvement, <br/>
<a id="pl.102.1"></a><var>102.1</var>if (1) the statutory basis on which the property's taxable value as most recently assessed <br/>
<a id="pl.102.2"></a><var>102.2</var>is less than market value as defined in section 
         <statute_ref>273.11</statute_ref>, or (2) the property has undergone <br/>
<a id="pl.102.3"></a><var>102.3</var>significant physical change or a change of use since the most recent assessment.<br/>
<a id="pl.102.4"></a><var>102.4</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.30.0"></a><a id="pl.102.5"></a><var>102.5</var>    Sec. 30. Minnesota Statutes 2012, section 273.18, is amended to read:<br/>
<a id="pl.102.6"></a><var>102.6</var><b>273.18 LISTING, VALUATION, AND ASSESSMENT OF EXEMPT </b><br/>
<a id="pl.102.7"></a><var>102.7</var><b>PROPERTY BY COUNTY AUDITORS.</b><br/>
<a id="pl.102.8"></a><var>102.8</var>(a) In every sixth year after the year 1926 2010, the county auditor shall enter, in <br/>
<a id="pl.102.9"></a><var>102.9</var>a separate place in the real estate assessment books, the description of each tract of real <br/>
<a id="pl.102.10"></a><var>102.10</var>property exempt by law from taxation, with the name of the owner, if known, and the <br/>
<a id="pl.102.11"></a><var>102.11</var>assessor shall value and assess the same in the same manner that other real property is <br/>
<a id="pl.102.12"></a><var>102.12</var>valued and assessed, and shall designate in each case the purpose for which the property is <br/>
<a id="pl.102.13"></a><var>102.13</var>used.<br/>
<a id="pl.102.14"></a><var>102.14</var>(b) For purposes of the apportionment of fire state aid under section 
         <statute_ref>69.021, <br/>
<a id="pl.102.15"></a><var>102.15</var>subdivision 7
         </statute_ref>, the county auditor shall include on the abstract of assessment of exempt real <br/>
<a id="pl.102.16"></a><var>102.16</var>property filed under this section, the total number of acres of all natural resources lands for <br/>
<a id="pl.102.17"></a><var>102.17</var>which in lieu payments are made under sections 
         <statute_ref>477A.11</statute_ref> to 
         <statute_ref>477A.14</statute_ref>. The assessor shall <br/>
<a id="pl.102.18"></a><var>102.18</var>estimate its market value, provided that if the assessor is not able to estimate the market <br/>
<a id="pl.102.19"></a><var>102.19</var>value of the land on a per parcel basis, the assessor shall furnish the commissioner of <br/>
<a id="pl.102.20"></a><var>102.20</var>revenue with an estimate of the average value per acre of this land within the county.<br/>
<a id="pl.102.21"></a><var>102.21</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.31.0"></a><a id="pl.102.22"></a><var>102.22</var>    Sec. 31. Minnesota Statutes 2012, section 274.01, subdivision 1, is amended to read:<br/>
<a id="pl.102.23"></a><var>102.23</var>    Subdivision 1. <b>Ordinary board; meetings, deadlines, grievances.</b> (a) The town <br/>
<a id="pl.102.24"></a><var>102.24</var>board of a town, or the council or other governing body of a city, is the board of appeal <br/>
<a id="pl.102.25"></a><var>102.25</var>and equalization except (1) in cities whose charters provide for a board of equalization or <br/>
<a id="pl.102.26"></a><var>102.26</var>(2) in any city or town that has transferred its local board of review power and duties to <br/>
<a id="pl.102.27"></a><var>102.27</var>the county board as provided in subdivision 3. The county assessor shall fix a day and <br/>
<a id="pl.102.28"></a><var>102.28</var>time when the board or the board of equalization shall meet in the assessment districts <br/>
<a id="pl.102.29"></a><var>102.29</var>of the county. Notwithstanding any law or city charter to the contrary, a city board of <br/>
<a id="pl.102.30"></a><var>102.30</var>equalization shall be referred to as a board of appeal and equalization. On or before <br/>
<a id="pl.102.31"></a><var>102.31</var>February 15 of each year the assessor shall give written notice of the time to the city or <br/>
<a id="pl.102.32"></a><var>102.32</var>town clerk. Notwithstanding the provisions of any charter to the contrary, the meetings <br/>
<a id="pl.103.1"></a><var>103.1</var>must be held between April 1 and May 31 each year. The clerk shall give published and <br/>
<a id="pl.103.2"></a><var>103.2</var>posted notice of the meeting at least ten days before the date of the meeting.<br/>
<a id="pl.103.3"></a><var>103.3</var>    The board shall meet at the office of the clerk to review the assessment and <br/>
<a id="pl.103.4"></a><var>103.4</var>classification of property in the town or city. No changes in valuation or classification <br/>
<a id="pl.103.5"></a><var>103.5</var>which are intended to correct errors in judgment by the county assessor may be made by <br/>
<a id="pl.103.6"></a><var>103.6</var>the county assessor after the board has adjourned in those cities or towns that hold a <br/>
<a id="pl.103.7"></a><var>103.7</var>local board of review; however, corrections of errors that are merely clerical in nature or <br/>
<a id="pl.103.8"></a><var>103.8</var>changes that extend homestead treatment to property are permitted after adjournment until <br/>
<a id="pl.103.9"></a><var>103.9</var>the tax extension date for that assessment year. The changes must be fully documented and <br/>
<a id="pl.103.10"></a><var>103.10</var>maintained in the assessor's office and must be available for review by any person. A copy <br/>
<a id="pl.103.11"></a><var>103.11</var>of the changes made during this period in those cities or towns that hold a local board of <br/>
<a id="pl.103.12"></a><var>103.12</var>review must be sent to the county board no later than December 31 of the assessment year.<br/>
<a id="pl.103.13"></a><var>103.13</var>    (b) The board shall determine whether the taxable property in the town or city has <br/>
<a id="pl.103.14"></a><var>103.14</var>been properly placed on the list and properly valued by the assessor. If real or personal <br/>
<a id="pl.103.15"></a><var>103.15</var>property has been omitted, the board shall place it on the list with its market value, and <br/>
<a id="pl.103.16"></a><var>103.16</var>correct the assessment so that each tract or lot of real property, and each article, parcel, <br/>
<a id="pl.103.17"></a><var>103.17</var>or class of personal property, is entered on the assessment list at its market value. No <br/>
<a id="pl.103.18"></a><var>103.18</var>assessment of the property of any person may be raised unless the person has been <br/>
<a id="pl.103.19"></a><var>103.19</var>duly notified of the intent of the board to do so. On application of any person feeling <br/>
<a id="pl.103.20"></a><var>103.20</var>aggrieved, the board shall review the assessment or classification, or both, and correct <br/>
<a id="pl.103.21"></a><var>103.21</var>it as appears just. The board may not make an individual market value adjustment or <br/>
<a id="pl.103.22"></a><var>103.22</var>classification change that would benefit the property if the owner or other person having <br/>
<a id="pl.103.23"></a><var>103.23</var>control over the property has refused the assessor access to inspect the property and the <br/>
<a id="pl.103.24"></a><var>103.24</var>interior of any buildings or structures as provided in section 
         <statute_ref>273.20</statute_ref>. A board member <br/>
<a id="pl.103.25"></a><var>103.25</var>shall not participate in any actions of the board which result in market value adjustments <br/>
<a id="pl.103.26"></a><var>103.26</var>or classification changes to property owned by the board member, the spouse, parent, <br/>
<a id="pl.103.27"></a><var>103.27</var>stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle, aunt, nephew, <br/>
<a id="pl.103.28"></a><var>103.28</var>or niece of a board member, or property in which a board member has a financial interest. <br/>
<a id="pl.103.29"></a><var>103.29</var>The relationship may be by blood or marriage.<br/>
<a id="pl.103.30"></a><var>103.30</var>    (c) A local board may reduce assessments upon petition of the taxpayer but the total <br/>
<a id="pl.103.31"></a><var>103.31</var>reductions must not reduce the aggregate assessment made by the county assessor by more <br/>
<a id="pl.103.32"></a><var>103.32</var>than one percent. If the total reductions would lower the aggregate assessments made by <br/>
<a id="pl.103.33"></a><var>103.33</var>the county assessor by more than one percent, none of the adjustments may be made. The <br/>
<a id="pl.103.34"></a><var>103.34</var>assessor shall correct any clerical errors or double assessments discovered by the board <br/>
<a id="pl.103.35"></a><var>103.35</var>without regard to the one percent limitation.<br/>
<a id="pl.104.1"></a><var>104.1</var>    (d) A local board does not have authority to grant an exemption or to order property <br/>
<a id="pl.104.2"></a><var>104.2</var>removed from the tax rolls.<br/>
<a id="pl.104.3"></a><var>104.3</var>    (e) A majority of the members may act at the meeting, and adjourn from day to day <br/>
<a id="pl.104.4"></a><var>104.4</var>until they finish hearing the cases presented. The assessor shall attend, with the assessment <br/>
<a id="pl.104.5"></a><var>104.5</var>books and papers, and take part in the proceedings, but must not vote. The county assessor, <br/>
<a id="pl.104.6"></a><var>104.6</var>or an assistant delegated by the county assessor shall attend the meetings. The board shall <br/>
<a id="pl.104.7"></a><var>104.7</var>list separately, on a form appended to the assessment book, all omitted property added <br/>
<a id="pl.104.8"></a><var>104.8</var>to the list by the board and all items of property increased or decreased, with the market <br/>
<a id="pl.104.9"></a><var>104.9</var>value of each item of property, added or changed by the board, placed opposite the item. <br/>
<a id="pl.104.10"></a><var>104.10</var>The county assessor shall enter all changes made by the board in the assessment book.<br/>
<a id="pl.104.11"></a><var>104.11</var>    (f) Except as provided in subdivision 3, if a person fails to appear in person, by <br/>
<a id="pl.104.12"></a><var>104.12</var>counsel, or by written communication before the board after being duly notified of the <br/>
<a id="pl.104.13"></a><var>104.13</var>board's intent to raise the assessment of the property, or if a person feeling aggrieved by an <br/>
<a id="pl.104.14"></a><var>104.14</var>assessment or classification fails to apply for a review of the assessment or classification, <br/>
<a id="pl.104.15"></a><var>104.15</var>the person may not appear before the county board of appeal and equalization for a review <br/>
<a id="pl.104.16"></a><var>104.16</var>of the assessment or classification. This paragraph does not apply if an assessment was <br/>
<a id="pl.104.17"></a><var>104.17</var>made after the local board meeting, as provided in section 
         <statute_ref>273.01</statute_ref>, or if the person can <br/>
<a id="pl.104.18"></a><var>104.18</var>establish not having received notice of market value at least five days before the local <br/>
<a id="pl.104.19"></a><var>104.19</var>board meeting.<br/>
<a id="pl.104.20"></a><var>104.20</var>    (g) The local board must complete its work and adjourn within 20 days from the <br/>
<a id="pl.104.21"></a><var>104.21</var>time of convening stated in the notice of the clerk, unless a longer period is approved by <br/>
<a id="pl.104.22"></a><var>104.22</var>the commissioner of revenue. No action taken after that date is valid. All complaints <br/>
<a id="pl.104.23"></a><var>104.23</var>about an assessment or classification made after the meeting of the board must be heard <br/>
<a id="pl.104.24"></a><var>104.24</var>and determined by the county board of equalization. A nonresident may, at any time, <br/>
<a id="pl.104.25"></a><var>104.25</var>before the meeting of the board file written objections to an assessment or classification <br/>
<a id="pl.104.26"></a><var>104.26</var>with the county assessor. The objections must be presented to the board at its meeting by <br/>
<a id="pl.104.27"></a><var>104.27</var>the county assessor for its consideration.<br/>
<a id="pl.104.28"></a><var>104.28</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.32.0"></a><a id="pl.104.29"></a><var>104.29</var>    Sec. 32. Minnesota Statutes 2012, section 274.01, subdivision 2, is amended to read:<br/>
<a id="pl.104.30"></a><var>104.30</var>    Subd. 2. <b>Special board; duties delegated.</b> The governing body of a city, including <br/>
<a id="pl.104.31"></a><var>104.31</var>a city whose charter provides for a board of equalization, may appoint a special board of <br/>
<a id="pl.104.32"></a><var>104.32</var>review. The city may delegate to the special board of review all of the powers and duties <br/>
<a id="pl.104.33"></a><var>104.33</var>in subdivision 1. The special board of review shall serve at the direction and discretion <br/>
<a id="pl.104.34"></a><var>104.34</var>of the appointing body, subject to the restrictions imposed by law. The appointing body <br/>
<a id="pl.104.35"></a><var>104.35</var>shall determine the number of members of the board, the compensation and expenses to be <br/>
<a id="pl.105.1"></a><var>105.1</var>paid, and the term of office of each member. At least one member of the special board <br/>
<a id="pl.105.2"></a><var>105.2</var>of review must be an appraiser, realtor, or other person familiar with property valuations <br/>
<a id="pl.105.3"></a><var>105.3</var>in the assessment district.<br/>
<a id="pl.105.4"></a><var>105.4</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.33.0"></a><a id="pl.105.5"></a><var>105.5</var>    Sec. 33. Minnesota Statutes 2012, section 275.08, subdivision 1a, is amended to read:<br/>
<a id="pl.105.6"></a><var>105.6</var>    Subd. 1a. <b>Computation of tax capacity.</b> For taxes payable in 1989, the county <br/>
<a id="pl.105.7"></a><var>105.7</var>auditor shall compute the gross tax capacity for each parcel according to the class rates <br/>
<a id="pl.105.8"></a><var>105.8</var>specified in section 
<statute_ref>273.13</statute_ref>. The gross tax capacity will be the appropriate class rate <br/>
<a id="pl.105.9"></a><var>105.9</var>multiplied by the parcel's market value. For taxes payable in 1990 and subsequent years,<br/>
<a id="pl.105.10"></a><var>105.10</var> The county auditor shall compute the net tax capacity for each parcel according to the <br/>
<a id="pl.105.11"></a><var>105.11</var>class rates specified in section 
         <statute_ref>273.13</statute_ref>. The net tax capacity will be the appropriate class <br/>
<a id="pl.105.12"></a><var>105.12</var>rate multiplied by the parcel's market value.<br/>
<a id="pl.105.13"></a><var>105.13</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.34.0"></a><a id="pl.105.14"></a><var>105.14</var>    Sec. 34. Minnesota Statutes 2012, section 275.08, subdivision 1d, is amended to read:<br/>
<a id="pl.105.15"></a><var>105.15</var>    Subd. 1d. <b>Additional adjustment.</b> If, after computing each local government's <br/>
<a id="pl.105.16"></a><var>105.16</var>adjusted local tax rate within a unique taxing jurisdiction pursuant to subdivision 1c, the <br/>
<a id="pl.105.17"></a><var>105.17</var>auditor finds that the total adjusted local tax rate of all local governments combined is <br/>
<a id="pl.105.18"></a><var>105.18</var>less than 90 percent of gross tax capacity for taxes payable in 1989 and 90 percent of net <br/>
<a id="pl.105.19"></a><var>105.19</var>tax capacity for taxes payable in 1990 and thereafter, the auditor shall increase each local <br/>
<a id="pl.105.20"></a><var>105.20</var>government's adjusted local tax rate proportionately so the total adjusted local tax rate of <br/>
<a id="pl.105.21"></a><var>105.21</var>all local governments combined equals 90 percent. The total amount of the increase in <br/>
<a id="pl.105.22"></a><var>105.22</var>tax resulting from the increased local tax rates must not exceed the amount of disparity <br/>
<a id="pl.105.23"></a><var>105.23</var>aid allocated to the unique taxing district under section 
         <statute_ref>273.1398</statute_ref>. The auditor shall <br/>
<a id="pl.105.24"></a><var>105.24</var>certify to the Department of Revenue the difference between the disparity aid originally <br/>
<a id="pl.105.25"></a><var>105.25</var>allocated under section 
         <statute_ref>273.1398, subdivision 3</statute_ref>, and the amount necessary to reduce <br/>
<a id="pl.105.26"></a><var>105.26</var>the total adjusted local tax rate of all local governments combined to 90 percent. Each <br/>
<a id="pl.105.27"></a><var>105.27</var>local government's disparity reduction aid payment under section 
         <statute_ref>273.1398, subdivision <br/>
<a id="pl.105.28"></a><var>105.28</var>6
         </statute_ref>, must be reduced accordingly.<br/>
<a id="pl.105.29"></a><var>105.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.35.0"></a><a id="pl.105.30"></a><var>105.30</var>    Sec. 35. Minnesota Statutes 2013 Supplement, section 275.70, subdivision 5, is <br/>
<a id="pl.105.31"></a><var>105.31</var>amended to read:<br/>
<a id="pl.106.1"></a><var>106.1</var>    Subd. 5. <b>Special levies.</b> "Special levies" means those portions of ad valorem taxes <br/>
<a id="pl.106.2"></a><var>106.2</var>levied by a local governmental unit for the following purposes or in the following manner:<br/>
<a id="pl.106.3"></a><var>106.3</var>    (1) to pay the costs of the principal and interest on bonded indebtedness or to <br/>
<a id="pl.106.4"></a><var>106.4</var>reimburse for the amount of liquor store revenues used to pay the principal and interest <br/>
<a id="pl.106.5"></a><var>106.5</var>due on municipal liquor store bonds in the year preceding the year for which the levy <br/>
<a id="pl.106.6"></a><var>106.6</var>limit is calculated;<br/>
<a id="pl.106.7"></a><var>106.7</var>    (2) to pay the costs of principal and interest on certificates of indebtedness issued for <br/>
<a id="pl.106.8"></a><var>106.8</var>any corporate purpose except for the following:<br/>
<a id="pl.106.9"></a><var>106.9</var>    (i) tax anticipation or aid anticipation certificates of indebtedness;<br/>
<a id="pl.106.10"></a><var>106.10</var>    (ii) certificates of indebtedness issued under sections 
         <statute_ref>298.28</statute_ref> and 
         <statute_ref>298.282</statute_ref>;<br/>
<a id="pl.106.11"></a><var>106.11</var>    (iii) certificates of indebtedness used to fund current expenses or to pay the costs of <br/>
<a id="pl.106.12"></a><var>106.12</var>extraordinary expenditures that result from a public emergency; or<br/>
<a id="pl.106.13"></a><var>106.13</var>    (iv) certificates of indebtedness used to fund an insufficiency in tax receipts or an <br/>
<a id="pl.106.14"></a><var>106.14</var>insufficiency in other revenue sources, provided that nothing in this subdivision limits the <br/>
<a id="pl.106.15"></a><var>106.15</var>special levy authorized under section 
         <statute_ref>475.755</statute_ref>;<br/>
<a id="pl.106.16"></a><var>106.16</var>    (3) to provide for the bonded indebtedness portion of payments made to another <br/>
<a id="pl.106.17"></a><var>106.17</var>political subdivision of the state of Minnesota;<br/>
<a id="pl.106.18"></a><var>106.18</var>    (4) to fund payments made to the Minnesota State Armory Building Commission <br/>
<a id="pl.106.19"></a><var>106.19</var>under section 
         <statute_ref>193.145, subdivision 2</statute_ref>, to retire the principal and interest on armory <br/>
<a id="pl.106.20"></a><var>106.20</var>construction bonds;<br/>
<a id="pl.106.21"></a><var>106.21</var>    (5) property taxes approved by voters which are levied against the referendum <br/>
<a id="pl.106.22"></a><var>106.22</var>market value as provided under section 
         <statute_ref>275.61</statute_ref>;<br/>
<a id="pl.106.23"></a><var>106.23</var>    (6) to fund matching requirements needed to qualify for federal or state grants or <br/>
<a id="pl.106.24"></a><var>106.24</var>programs to the extent that either (i) the matching requirement exceeds the matching <br/>
<a id="pl.106.25"></a><var>106.25</var>requirement in calendar year 2001, or (ii) it is a new matching requirement that did not <br/>
<a id="pl.106.26"></a><var>106.26</var>exist prior to 2002;<br/>
<a id="pl.106.27"></a><var>106.27</var>    (7) to pay the expenses reasonably and necessarily incurred in preparing for or <br/>
<a id="pl.106.28"></a><var>106.28</var>repairing the effects of natural disaster including the occurrence or threat of widespread <br/>
<a id="pl.106.29"></a><var>106.29</var>or severe damage, injury, or loss of life or property resulting from natural causes, in <br/>
<a id="pl.106.30"></a><var>106.30</var>accordance with standards formulated by the Emergency Services Division of the state <br/>
<a id="pl.106.31"></a><var>106.31</var>Department of Public Safety, as allowed by the commissioner of revenue under section <br/>
<statute_ref><a id="pl.106.32"></a><var>106.32</var>275.74, subdivision 2
         </statute_ref>;<br/>
<a id="pl.106.33"></a><var>106.33</var>    (8) pay amounts required to correct an error in the levy certified to the county <br/>
<a id="pl.106.34"></a><var>106.34</var>auditor by a city or county in a levy year, but only to the extent that when added to the <br/>
<a id="pl.106.35"></a><var>106.35</var>preceding year's levy it is not in excess of an applicable statutory, special law or charter <br/>
<a id="pl.107.1"></a><var>107.1</var>limitation, or the limitation imposed on the governmental subdivision by sections 
         <statute_ref>275.70 <br/>
</statute_ref><a id="pl.107.2"></a><var>107.2</var>to 
         <statute_ref>275.74</statute_ref> in the preceding levy year;<br/>
<a id="pl.107.3"></a><var>107.3</var>    (9) to pay an abatement under section 
         <statute_ref>469.1815</statute_ref>;<br/>
<a id="pl.107.4"></a><var>107.4</var>    (10) to pay any costs attributable to increases in the employer contribution rates under <br/>
<a id="pl.107.5"></a><var>107.5</var>chapter 353, or locally administered pension plans, that are effective after June 30, 2001;<br/>
<a id="pl.107.6"></a><var>107.6</var>    (11) to pay the operating or maintenance costs of a county jail as authorized in section <br/>
<statute_ref><a id="pl.107.7"></a><var>107.7</var>641.01
         </statute_ref> or 
         <statute_ref>641.262</statute_ref>, or of a correctional facility as defined in section 
         <statute_ref>241.021, subdivision 1</statute_ref>, <br/>
<a id="pl.107.8"></a><var>107.8</var>paragraph (f), to the extent that the county can demonstrate to the commissioner of revenue <br/>
<a id="pl.107.9"></a><var>107.9</var>that the amount has been included in the county budget as a direct result of a rule, minimum <br/>
<a id="pl.107.10"></a><var>107.10</var>requirement, minimum standard, or directive of the Department of Corrections, or to pay <br/>
<a id="pl.107.11"></a><var>107.11</var>the operating or maintenance costs of a regional jail as authorized in section 
         <statute_ref>641.262</statute_ref>. For <br/>
<a id="pl.107.12"></a><var>107.12</var>purposes of this clause, a district court order is not a rule, minimum requirement, minimum <br/>
<a id="pl.107.13"></a><var>107.13</var>standard, or directive of the Department of Corrections. If the county utilizes this special <br/>
<a id="pl.107.14"></a><var>107.14</var>levy, except to pay operating or maintenance costs of a new regional jail facility under <br/>
<a id="pl.107.15"></a><var>107.15</var>sections 
         <statute_ref>641.262</statute_ref> to 
         <statute_ref>641.264</statute_ref> which will not replace an existing jail facility, any amount <br/>
<a id="pl.107.16"></a><var>107.16</var>levied by the county in the previous levy year for the purposes specified under this clause <br/>
<a id="pl.107.17"></a><var>107.17</var>and included in the county's previous year's levy limitation computed under section <br/>
<statute_ref><a id="pl.107.18"></a><var>107.18</var>275.71
         </statute_ref>, shall be deducted from the levy limit base under section 
         <statute_ref>275.71, subdivision 2</statute_ref>, <br/>
<a id="pl.107.19"></a><var>107.19</var>when determining the county's current year levy limitation. The county shall provide the <br/>
<a id="pl.107.20"></a><var>107.20</var>necessary information to the commissioner of revenue for making this determination;<br/>
<a id="pl.107.21"></a><var>107.21</var>    (12) to pay for operation of a lake improvement district, as authorized under section <br/>
<statute_ref><a id="pl.107.22"></a><var>107.22</var>103B.555
         </statute_ref>. If the county utilizes this special levy, any amount levied by the county in the <br/>
<a id="pl.107.23"></a><var>107.23</var>previous levy year for the purposes specified under this clause and included in the county's <br/>
<a id="pl.107.24"></a><var>107.24</var>previous year's levy limitation computed under section 
         <statute_ref>275.71</statute_ref> shall be deducted from <br/>
<a id="pl.107.25"></a><var>107.25</var>the levy limit base under section 
         <statute_ref>275.71, subdivision 2</statute_ref>, when determining the county's <br/>
<a id="pl.107.26"></a><var>107.26</var>current year levy limitation. The county shall provide the necessary information to the <br/>
<a id="pl.107.27"></a><var>107.27</var>commissioner of revenue for making this determination;<br/>
<a id="pl.107.28"></a><var>107.28</var>    (13) to repay a state or federal loan used to fund the direct or indirect required <br/>
<a id="pl.107.29"></a><var>107.29</var>spending by the local government due to a state or federal transportation project or other <br/>
<a id="pl.107.30"></a><var>107.30</var>state or federal capital project. This authority may only be used if the project is not a <br/>
<a id="pl.107.31"></a><var>107.31</var>local government initiative;<br/>
<a id="pl.107.32"></a><var>107.32</var>    (14) to pay for court administration costs as required under section 
<statute_ref>273.1398, <br/>
<a id="pl.107.33"></a><var>107.33</var>subdivision 4b
</statute_ref>, less the (i) county's share of transferred fines and fees collected by the <br/>
<a id="pl.107.34"></a><var>107.34</var>district courts in the county for calendar year 2001 and (ii) the aid amount certified to be <br/>
<a id="pl.107.35"></a><var>107.35</var>paid to the county in 2004 under section 
<statute_ref>273.1398, subdivision 4c</statute_ref>; however, for taxes <br/>
<a id="pl.107.36"></a><var>107.36</var>levied to pay for these costs in the year in which the court financing is transferred to the <br/>
<a id="pl.108.1"></a><var>108.1</var>state, the amount under this clause is limited to the amount of aid the county is certified to <br/>
<a id="pl.108.2"></a><var>108.2</var>receive under section 
<statute_ref>273.1398, subdivision 4a</statute_ref>;<br/>
<a id="pl.108.3"></a><var>108.3</var>    (15) (14) to fund a firefighters relief association as required under Laws 2013, <br/>
<a id="pl.108.4"></a><var>108.4</var>chapter 111, article 5, sections 31 to 42, to the extent that the required amount exceeds the <br/>
<a id="pl.108.5"></a><var>108.5</var>amount levied for this purpose in 2001;<br/>
<a id="pl.108.6"></a><var>108.6</var>    (16) (15) for purposes of a storm sewer improvement district under section 
         <statute_ref>444.20</statute_ref>;<br/>
<a id="pl.108.7"></a><var>108.7</var>    (17) (16) to pay for the maintenance and support of a city or county society for <br/>
<a id="pl.108.8"></a><var>108.8</var>the prevention of cruelty to animals under section 
         <statute_ref>343.11</statute_ref>, but not to exceed in any year <br/>
<a id="pl.108.9"></a><var>108.9</var>$4,800 or the sum of $1 per capita based on the county's or city's population as of the most <br/>
<a id="pl.108.10"></a><var>108.10</var>recent federal census, whichever is greater. If the city or county uses this special levy, any <br/>
<a id="pl.108.11"></a><var>108.11</var>amount levied by the city or county in the previous levy year for the purposes specified <br/>
<a id="pl.108.12"></a><var>108.12</var>in this clause and included in the city's or county's previous year's levy limit computed <br/>
<a id="pl.108.13"></a><var>108.13</var>under section 
         <statute_ref>275.71</statute_ref>, must be deducted from the levy limit base under section 
         <statute_ref>275.71, <br/>
<a id="pl.108.14"></a><var>108.14</var>subdivision 2
         </statute_ref>, in determining the city's or county's current year levy limit;<br/>
<a id="pl.108.15"></a><var>108.15</var>    (18) (17) for counties, to pay for the increase in their share of health and human <br/>
<a id="pl.108.16"></a><var>108.16</var>service costs caused by reductions in federal health and human services grants effective <br/>
<a id="pl.108.17"></a><var>108.17</var>after September 30, 2007;<br/>
<a id="pl.108.18"></a><var>108.18</var>    (19) (18) for a city, for the costs reasonably and necessarily incurred for securing, <br/>
<a id="pl.108.19"></a><var>108.19</var>maintaining, or demolishing foreclosed or abandoned residential properties, as allowed by <br/>
<a id="pl.108.20"></a><var>108.20</var>the commissioner of revenue under section 
         <statute_ref>275.74, subdivision 2</statute_ref>. A city must have either <br/>
<a id="pl.108.21"></a><var>108.21</var>(i) a foreclosure rate of at least 1.4 percent in 2007, or (ii) a foreclosure rate in 2007 in <br/>
<a id="pl.108.22"></a><var>108.22</var>the city or in a zip code area of the city that is at least 50 percent higher than the average <br/>
<a id="pl.108.23"></a><var>108.23</var>foreclosure rate in the metropolitan area, as defined in section 
         <statute_ref>473.121</statute_ref>, subdivision 2, <br/>
<a id="pl.108.24"></a><var>108.24</var>to use this special levy. For purposes of this paragraph, "foreclosure rate" means the <br/>
<a id="pl.108.25"></a><var>108.25</var>number of foreclosures, as indicated by sheriff sales records, divided by the number of <br/>
<a id="pl.108.26"></a><var>108.26</var>households in the city in 2007;<br/>
<a id="pl.108.27"></a><var>108.27</var>    (20) for a city, for the unreimbursed costs of redeployed traffic-control agents and <br/>
<a id="pl.108.28"></a><var>108.28</var>lost traffic citation revenue due to the collapse of the Interstate 35W bridge, as certified <br/>
<a id="pl.108.29"></a><var>108.29</var>to the Federal Highway Administration;<br/>
<a id="pl.108.30"></a><var>108.30</var>    (21) (19) to pay costs attributable to wages and benefits for sheriff, police, and fire <br/>
<a id="pl.108.31"></a><var>108.31</var>personnel. If a local governmental unit did not use this special levy in the previous year its <br/>
<a id="pl.108.32"></a><var>108.32</var>levy limit base under section 
         <statute_ref>275.71</statute_ref> shall be reduced by the amount equal to the amount it <br/>
<a id="pl.108.33"></a><var>108.33</var>levied for the purposes specified in this clause in the previous year;<br/>
<a id="pl.108.34"></a><var>108.34</var>    (22) (20) an amount equal to any reductions in the certified aids or credit <br/>
<a id="pl.108.35"></a><var>108.35</var>reimbursements payable under sections 
         <statute_ref>477A.011</statute_ref> to 
         <statute_ref>477A.014</statute_ref>, and section 
         <statute_ref>273.1384</statute_ref>, <br/>
<a id="pl.108.36"></a><var>108.36</var>due to unallotment under section 
         <statute_ref>16A.152</statute_ref> or reductions under another provision of law. <br/>
<a id="pl.109.1"></a><var>109.1</var>The amount of the levy allowed under this clause for each year is limited to the amount <br/>
<a id="pl.109.2"></a><var>109.2</var>unallotted or reduced from the aids and credit reimbursements certified for payment in the <br/>
<a id="pl.109.3"></a><var>109.3</var>year following the calendar year in which the tax levy is certified unless the unallotment <br/>
<a id="pl.109.4"></a><var>109.4</var>or reduction amount is not known by September 1 of the levy certification year, and <br/>
<a id="pl.109.5"></a><var>109.5</var>the local government has not adjusted its levy under section 
         <statute_ref>275.065, subdivision 6</statute_ref>, or <br/>
<statute_ref><a id="pl.109.6"></a><var>109.6</var>275.07, subdivision 6
         </statute_ref>, in which case that unallotment or reduction amount may be levied <br/>
<a id="pl.109.7"></a><var>109.7</var>in the following year;<br/>
<a id="pl.109.8"></a><var>109.8</var>(23) (21) to pay for the difference between one-half of the costs of confining sex <br/>
<a id="pl.109.9"></a><var>109.9</var>offenders undergoing the civil commitment process and any state payments for this <br/>
<a id="pl.109.10"></a><var>109.10</var>purpose pursuant to section 
         <statute_ref>253D.12</statute_ref>;<br/>
<a id="pl.109.11"></a><var>109.11</var>(24) (22) for a county to pay the costs of the first year of maintaining and operating <br/>
<a id="pl.109.12"></a><var>109.12</var>a new facility or new expansion, either of which contains courts, corrections, dispatch, <br/>
<a id="pl.109.13"></a><var>109.13</var>criminal investigation labs, or other public safety facilities and for which all or a portion <br/>
<a id="pl.109.14"></a><var>109.14</var>of the funding for the site acquisition, building design, site preparation, construction, and <br/>
<a id="pl.109.15"></a><var>109.15</var>related equipment was issued or authorized prior to the imposition of levy limits in 2008. <br/>
<a id="pl.109.16"></a><var>109.16</var>The levy limit base shall then be increased by an amount equal to the new facility's first <br/>
<a id="pl.109.17"></a><var>109.17</var>full year's operating costs as described in this clause; and<br/>
<a id="pl.109.18"></a><var>109.18</var>(25) (23) for the estimated amount of reduction to market value credit reimbursements <br/>
<a id="pl.109.19"></a><var>109.19</var>under section 
         <statute_ref>273.1384</statute_ref> for credits payable in the year in which the levy is payable.<br/>
<a id="pl.109.20"></a><var>109.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.36.0"></a><a id="pl.109.21"></a><var>109.21</var>    Sec. 36. Minnesota Statutes 2012, section 275.74, subdivision 2, is amended to read:<br/>
<a id="pl.109.22"></a><var>109.22</var>    Subd. 2. <b>Authorization for special levies.</b> (a) A local governmental unit may <br/>
<a id="pl.109.23"></a><var>109.23</var>request authorization to levy for unreimbursed costs for natural disasters under section <br/>
<statute_ref><a id="pl.109.24"></a><var>109.24</var>275.70, subdivision 5
         </statute_ref>, clause (7). The local governmental unit shall submit a request to <br/>
<a id="pl.109.25"></a><var>109.25</var>levy under section 
         <statute_ref>275.70, subdivision 5</statute_ref>, clause (7), to the commissioner of revenue by <br/>
<a id="pl.109.26"></a><var>109.26</var>September 30 of the levy year and the request must include information documenting the <br/>
<a id="pl.109.27"></a><var>109.27</var>estimated unreimbursed costs. The commissioner of revenue may grant levy authority, <br/>
<a id="pl.109.28"></a><var>109.28</var>up to the amount requested based on the documentation submitted. All decisions of the <br/>
<a id="pl.109.29"></a><var>109.29</var>commissioner are final.<br/>
<a id="pl.109.30"></a><var>109.30</var>    (b) A city may request authorization to levy for reasonable and necessary costs for <br/>
<a id="pl.109.31"></a><var>109.31</var>securing, maintaining, or demolishing foreclosed or abandoned residential properties under <br/>
<a id="pl.109.32"></a><var>109.32</var>section 
         <statute_ref>275.70, subdivision 5</statute_ref>, clause (19) (18). The local governmental unit shall submit a <br/>
<a id="pl.109.33"></a><var>109.33</var>request to levy under section 
         <statute_ref>275.70, subdivision 5</statute_ref>, clause (19) (18), to the commissioner <br/>
<a id="pl.109.34"></a><var>109.34</var>of revenue by September 30 of the levy year and the request must include information <br/>
<a id="pl.109.35"></a><var>109.35</var>documenting the estimated costs. For taxes payable in 2009, the amount may include <br/>
<a id="pl.110.1"></a><var>110.1</var>unanticipated costs incurred above the amount budgeted for these purposes in 2008. Costs <br/>
<a id="pl.110.2"></a><var>110.2</var>of securing foreclosed or abandoned residential properties include payment for police and <br/>
<a id="pl.110.3"></a><var>110.3</var>fire department services. The commissioner of revenue may grant levy authority, up to the <br/>
<a id="pl.110.4"></a><var>110.4</var>lesser of (1) the amount requested based on the documentation submitted, or (2) $3,000 <br/>
<a id="pl.110.5"></a><var>110.5</var>multiplied by the number of foreclosed residential properties, as defined by sheriff sales <br/>
<a id="pl.110.6"></a><var>110.6</var>records, in calendar year 2007. All decisions of the commissioner are final.<br/>
<a id="pl.110.7"></a><var>110.7</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.37.0"></a><a id="pl.110.8"></a><var>110.8</var>    Sec. 37. Minnesota Statutes 2012, section 275.75, is amended to read:<br/>
<a id="pl.110.9"></a><var>110.9</var><b>275.75 CHARTER EXEMPTION FOR AID LOSS.</b><br/>
<a id="pl.110.10"></a><var>110.10</var>Notwithstanding any other provision of a municipal charter that limits ad valorem <br/>
<a id="pl.110.11"></a><var>110.11</var>taxes to a lesser amount, or that would require voter approval for any increase, the <br/>
<a id="pl.110.12"></a><var>110.12</var>governing body of a municipality may by resolution increase its levy in any year by an <br/>
<a id="pl.110.13"></a><var>110.13</var>amount equal to its special levies under section 
         <statute_ref>275.70, subdivision 5</statute_ref>, clauses (22) and <br/>
<a id="pl.110.14"></a><var>110.14</var>(25) (20) and (23).<br/>
<a id="pl.110.15"></a><var>110.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.38.0"></a><a id="pl.110.16"></a><var>110.16</var>    Sec. 38. Minnesota Statutes 2012, section 279.03, subdivision 1, is amended to read:<br/>
<a id="pl.110.17"></a><var>110.17</var>    Subdivision 1. <b>Rate</b><b> Interest calculation</b><b>.</b> The rate of interest on delinquent <br/>
<a id="pl.110.18"></a><var>110.18</var>property taxes levied in 1979 and prior years is fixed at six percent per year until January <br/>
<a id="pl.110.19"></a><var>110.19</var>1, 1983. Thereafter Interest is payable at the rate determined pursuant to section 
<statute_ref>549.09</statute_ref>. <br/>
<a id="pl.110.20"></a><var>110.20</var>The rate of interest on delinquent property taxes levied in 1980 and subsequent years is <br/>
<a id="pl.110.21"></a><var>110.21</var>the rate determined pursuant to section 
<statute_ref>549.09</statute_ref>. All provisions of law except section <br/>
<a id="pl.110.22"></a><var>110.22</var><statute_ref>549.09</statute_ref> providing for the calculation of interest at any different rate on delinquent taxes in <br/>
<a id="pl.110.23"></a><var>110.23</var>any notice or proceeding in connection with the payment, collection, sale, or assignment <br/>
<a id="pl.110.24"></a><var>110.24</var>of delinquent taxes, or redemption from such sale or assignment are hereby amended <br/>
<a id="pl.110.25"></a><var>110.25</var>to correspond herewith. Section 
         <statute_ref>549.09</statute_ref> shall continue in force applies with respect to <br/>
<a id="pl.110.26"></a><var>110.26</var>judgments arising out of petitions for review filed pursuant to chapter 278 irrespective of <br/>
<a id="pl.110.27"></a><var>110.27</var>the levy year.<br/>
<a id="pl.110.28"></a><var>110.28</var>For property taxes levied in 1980 and prior years, interest is to be calculated at <br/>
<a id="pl.110.29"></a><var>110.29</var>simple interest from the second Monday in May following the year in which the taxes <br/>
<a id="pl.110.30"></a><var>110.30</var>become due until the time that the taxes and penalties are paid, computed on the amount <br/>
<a id="pl.110.31"></a><var>110.31</var>of unpaid taxes, penalties and costs. For property taxes levied in 1981 and subsequent <br/>
<a id="pl.110.32"></a><var>110.32</var>years, Interest shall commence on the first day of January following the year in which the <br/>
<a id="pl.111.1"></a><var>111.1</var>taxes become due, but the county treasurer need not calculate interest on unpaid taxes and <br/>
<a id="pl.111.2"></a><var>111.2</var>penalties on the tax list returned to the county auditor pursuant to section 
         <statute_ref>279.01</statute_ref>.<br/>
<a id="pl.111.3"></a><var>111.3</var>If interest is payable for a portion of a year, the interest is calculated only for the <br/>
<a id="pl.111.4"></a><var>111.4</var>months that the taxes or penalties remain unpaid, and for this purpose a portion of a month <br/>
<a id="pl.111.5"></a><var>111.5</var>is deemed to be a whole month.<br/>
<a id="pl.111.6"></a><var>111.6</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.39.0"></a><a id="pl.111.7"></a><var>111.7</var>    Sec. 39. Minnesota Statutes 2012, section 279.03, subdivision 1a, is amended to read:<br/>
<a id="pl.111.8"></a><var>111.8</var>    Subd. 1a. <b>Rate </b><b>after December 31, 1990</b><b>.</b> (a) Except as provided in paragraph (b), <br/>
<a id="pl.111.9"></a><var>111.9</var>interest on delinquent property taxes, penalties, and costs unpaid on or after January 1, <br/>
<a id="pl.111.10"></a><var>111.10</var>1991, shall be is payable at the per annum rate determined in section 
         <statute_ref>270C.40, subdivision <br/>
<a id="pl.111.11"></a><var>111.11</var>5
         </statute_ref>. If the rate so determined is less than ten percent, the rate of interest shall be is ten <br/>
<a id="pl.111.12"></a><var>111.12</var>percent. The maximum per annum rate shall be is 14 percent if the rate specified under <br/>
<a id="pl.111.13"></a><var>111.13</var>section 
         <statute_ref>270C.40, subdivision 5</statute_ref>, exceeds 14 percent. The rate shall be is subject to change <br/>
<a id="pl.111.14"></a><var>111.14</var>on January 1 of each year.<br/>
<a id="pl.111.15"></a><var>111.15</var>(b) If a person is the owner of one or more parcels of property on which taxes are <br/>
<a id="pl.111.16"></a><var>111.16</var>delinquent, and the delinquent taxes are more than 25 percent of the prior year's school <br/>
<a id="pl.111.17"></a><var>111.17</var>district levy, interest on the delinquent property taxes, penalties, and costs unpaid after <br/>
<a id="pl.111.18"></a><var>111.18</var>January 1, 1992, shall be is payable at twice the rate determined under paragraph (a) for <br/>
<a id="pl.111.19"></a><var>111.19</var>the year.<br/>
<a id="pl.111.20"></a><var>111.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.40.0"></a><a id="pl.111.21"></a><var>111.21</var>    Sec. 40. Minnesota Statutes 2012, section 279.16, is amended to read:<br/>
<a id="pl.111.22"></a><var>111.22</var><b>279.16 JUDGMENT WHEN NO ANSWER; FORM; ENTRY.</b><br/>
<a id="pl.111.23"></a><var>111.23</var>Upon the expiration of 20 days from the later of the filing of the affidavit of <br/>
<a id="pl.111.24"></a><var>111.24</var>publication or the filing of the affidavit of mailing pursuant to section 
         <statute_ref>279.131</statute_ref>, the <br/>
<a id="pl.111.25"></a><var>111.25</var>court administrator shall enter judgment against each and every such parcel as to which <br/>
<a id="pl.111.26"></a><var>111.26</var>no answer has been filed, which judgment shall include all such parcels, and shall be <br/>
<a id="pl.111.27"></a><var>111.27</var>substantially in the following form:<br/>
<table>
<col width="50px"/>
<col width="15"/>
<col width="5"/>
<col width="35"/>
<col width="10"/>
<tr>
<td><a id="pl.111.28"></a><var>111.28</var><br/>
</td>
<td>State of Minnesota<br/>
</td>
<td>)<br/>
</td>
<td align="right">District Court,<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.111.29"></a><var>111.29</var><br/>
</td>
<td></td>
<td>) ss.<br/>
</td>
<td></td>
<td></td>
</tr>
<tr>
<td><a id="pl.111.30"></a><var>111.30</var><br/>
</td>
<td>County of <br/>
<span>
                     							.....
                     						</span></td>
<td>)<br/>
</td>
<td align="right">.............. Judicial District.<br/>
</td>
<td></td>
</tr>
</table><a id="pl.111.31"></a><var>111.31</var>In the matter of the proceedings to enforce payment of the taxes on real estate <br/>
<a id="pl.111.32"></a><var>111.32</var>remaining delinquent on the first Monday in January, ......., for the county of ...................., <br/>
<a id="pl.111.33"></a><var>111.33</var>state of Minnesota.<br/>
<a id="pl.112.1"></a><var>112.1</var>A list of taxes on real property, delinquent on the first Monday in January, ......., for <br/>
<a id="pl.112.2"></a><var>112.2</var>said county of ................., having been duly filed in the office of the court administrator of <br/>
<a id="pl.112.3"></a><var>112.3</var>this court, and the notice and list required by law having been duly published and mailed <br/>
<a id="pl.112.4"></a><var>112.4</var>as required by law, and more than 20 days having elapsed since the last publication of the <br/>
<a id="pl.112.5"></a><var>112.5</var>notice and list, and no answer having been filed by any person, company, or corporation <br/>
<a id="pl.112.6"></a><var>112.6</var>to the taxes upon any of the parcels of land hereinafter described, it is hereby adjudged <br/>
<a id="pl.112.7"></a><var>112.7</var>that each parcel of land hereinafter described is liable for taxes, penalties, and costs to the <br/>
<a id="pl.112.8"></a><var>112.8</var>amount set opposite the same, as follows:<br/>
<table>
<col width="50px"/>
<col width="25"/>
<col width="20"/>
<col width="20"/>
<tr>
<td><a id="pl.112.9"></a><var>112.9</var><br/>
</td>
<td align="center">Description.<br/>
</td>
<td align="center">Parcel Number.<br/>
</td>
<td align="center">Amount.<br/>
</td>
</tr>
</table><a id="pl.112.10"></a><var>112.10</var>The amount of taxes, penalties, and cost to which, as hereinbefore stated, each of <br/>
<a id="pl.112.11"></a><var>112.11</var>such parcels of land is liable, is hereby declared a lien upon such parcel of land as against <br/>
<a id="pl.112.12"></a><var>112.12</var>the estate, right, title, interest, claim, or lien, of whatever nature, in law or equity, of every <br/>
<a id="pl.112.13"></a><var>112.13</var>person, company, or corporation; and it is adjudged that, unless the amount to which <br/>
<a id="pl.112.14"></a><var>112.14</var>each of such parcels is liable be paid, each of such parcels be sold, as provided by law, <br/>
<a id="pl.112.15"></a><var>112.15</var>to satisfy the amount to which it is liable.<br/>
<table>
<col width="50px"/>
<col width="21px"/>
<col width="30"/>
<col width="30"/>
<tr>
<td><a id="pl.112.16"></a><var>112.16</var><br/>
</td>
<td></td>
<td>Dated this ............. day of ..............., .......<br/>
</td>
<td></td>
</tr>
<tr>
<td><a id="pl.112.17"></a><var>112.17</var><br/>
<a id="pl.112.18"></a><var>112.18</var><br/>
<a id="pl.112.19"></a><var>112.19</var><br/>
</td>
<td></td>
<td><span>
                     							.....
                     						</span><br/>
                  		Court Administrator of the District Court,<br/>
                  		County of <br/>
<span>
                     							.....
                     						</span></td>
<td></td>
</tr>
</table><a id="pl.112.20"></a><var>112.20</var>The judgment shall be entered by the court administrator in a book to be kept by <br/>
<a id="pl.112.21"></a><var>112.21</var>the court administrator, to be called the real estate tax judgment book, and signed by the <br/>
<a id="pl.112.22"></a><var>112.22</var>court administrator. The judgment shall be written out on the left-hand pages of the book, <br/>
<a id="pl.112.23"></a><var>112.23</var>leaving the right-hand pages blank for the entries in this chapter hereinafter provided; and<br/>
<a id="pl.112.24"></a><var>112.24</var> The same presumption in favor of the regularity and validity of the judgment shall be <br/>
<a id="pl.112.25"></a><var>112.25</var>deemed to exist as in respect to judgments in civil actions in such court, except where taxes <br/>
<a id="pl.112.26"></a><var>112.26</var>have been paid before the entry of judgment, or where the land is exempt from taxation, in <br/>
<a id="pl.112.27"></a><var>112.27</var>which cases the judgment shall be prima facie evidence only of its regularity and validity.<br/>
<a id="pl.112.28"></a><var>112.28</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.41.0"></a><a id="pl.112.29"></a><var>112.29</var>    Sec. 41. Minnesota Statutes 2012, section 279.23, is amended to read:<br/>
<a id="pl.112.30"></a><var>112.30</var><b>279.23 COPY OF JUDGMENT TO COUNTY AUDITOR.</b><br/>
<a id="pl.112.31"></a><var>112.31</var>When any real estate tax judgment is entered, the court administrator shall forthwith<br/>
<a id="pl.112.32"></a><var>112.32</var> deliver to the county auditor, in a book to be provided by the auditor, a certified copy of <br/>
<a id="pl.112.33"></a><var>112.33</var>such judgment, which shall be written on the left-hand pages of the book, leaving the <br/>
<a id="pl.112.34"></a><var>112.34</var>right-hand pages blank.<br/>
<a id="pl.113.1"></a><var>113.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.42.0"></a><a id="pl.113.2"></a><var>113.2</var>    Sec. 42. Minnesota Statutes 2012, section 279.25, is amended to read:<br/>
<a id="pl.113.3"></a><var>113.3</var><b>279.25 PAYMENT BEFORE JUDGMENT.</b><br/>
<a id="pl.113.4"></a><var>113.4</var>Before sale any person may pay the amount adjudged against any parcel of land. <br/>
<a id="pl.113.5"></a><var>113.5</var>If payment is made before entry of judgment, and the delinquent list has been filed with <br/>
<a id="pl.113.6"></a><var>113.6</var>the court administrator, the county auditor shall immediately certify such payment to the <br/>
<a id="pl.113.7"></a><var>113.7</var>court administrator, who shall note the same on such delinquent list; and all proceedings <br/>
<a id="pl.113.8"></a><var>113.8</var>pending against such parcel shall thereupon be discontinued. If payment is made after <br/>
<a id="pl.113.9"></a><var>113.9</var>judgment is entered and before sale, the auditor shall certify such payment to the clerk, <br/>
<a id="pl.113.10"></a><var>113.10</var>who, upon production of such certificate and the payment of a fee of ten cents, shall enter <br/>
<a id="pl.113.11"></a><var>113.11</var>on the right-hand page of the real estate tax judgment book, and opposite the description <br/>
<a id="pl.113.12"></a><var>113.12</var>of such parcel, satisfaction of the judgment against the same. The auditor shall make <br/>
<a id="pl.113.13"></a><var>113.13</var>proper records of all payments made under this section.<br/>
<a id="pl.113.14"></a><var>113.14</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.43.0"></a><a id="pl.113.15"></a><var>113.15</var>    Sec. 43. Minnesota Statutes 2013 Supplement, section 279.37, subdivision 2, is <br/>
<a id="pl.113.16"></a><var>113.16</var>amended to read:<br/>
<a id="pl.113.17"></a><var>113.17</var>    Subd. 2. <b>Installment payments.</b> The owner of any such parcel, or any person to <br/>
<a id="pl.113.18"></a><var>113.18</var>whom the right to pay taxes has been given by statute, mortgage, or other agreement, may <br/>
<a id="pl.113.19"></a><var>113.19</var>make and file with the county auditor of the county in which the parcel is located a written <br/>
<a id="pl.113.20"></a><var>113.20</var>offer to pay the current taxes each year before they become delinquent, or to contest the <br/>
<a id="pl.113.21"></a><var>113.21</var>taxes under Minnesota Statutes 1941, sections 
<statute_ref>278.01</statute_ref> to 
<statute_ref>278.13</statute_ref> chapter 278, and agree <br/>
<a id="pl.113.22"></a><var>113.22</var>to confess judgment for the amount provided, as determined by the county auditor. By <br/>
<a id="pl.113.23"></a><var>113.23</var>filing the offer, the owner waives all irregularities in connection with the tax proceedings <br/>
<a id="pl.113.24"></a><var>113.24</var>affecting the parcel and any defense or objection which the owner may have to the <br/>
<a id="pl.113.25"></a><var>113.25</var>proceedings, and also waives the requirements of any notice of default in the payment of <br/>
<a id="pl.113.26"></a><var>113.26</var>any installment or interest to become due pursuant to the composite judgment to be so <br/>
<a id="pl.113.27"></a><var>113.27</var>entered. Unless the property is subject to subdivision 1a, with the offer, the owner shall (i) <br/>
<a id="pl.113.28"></a><var>113.28</var>tender one-tenth of the amount of the delinquent taxes, costs, penalty, and interest, and <br/>
<a id="pl.113.29"></a><var>113.29</var>(ii) tender all current year taxes and penalty due at the time the confession of judgment is <br/>
<a id="pl.113.30"></a><var>113.30</var>entered. In the offer, the owner shall agree to pay the balance in nine equal installments, <br/>
<a id="pl.113.31"></a><var>113.31</var>with interest as provided in section 
         <statute_ref>279.03</statute_ref>, payable annually on installments remaining <br/>
<a id="pl.113.32"></a><var>113.32</var>unpaid from time to time, on or before December 31 of each year following the year in <br/>
<a id="pl.113.33"></a><var>113.33</var>which judgment was confessed. The offer must be substantially as follows:<br/>
<a id="pl.114.1"></a><var>114.1</var>"To the court administrator of the district court of ........... county, I, ....................., <br/>
<a id="pl.114.2"></a><var>114.2</var>am the owner of the following described parcel of real estate located in .................... <br/>
<a id="pl.114.3"></a><var>114.3</var>county, Minnesota:<br/>
<a id="pl.114.4"></a><var>114.4</var>.............................. Upon that real estate there are delinquent taxes for the year ........., and <br/>
<a id="pl.114.5"></a><var>114.5</var>prior years, as follows: (here insert year of delinquency and the total amount of delinquent <br/>
<a id="pl.114.6"></a><var>114.6</var>taxes, costs, interest, and penalty). By signing this document I offer to confess judgment in <br/>
<a id="pl.114.7"></a><var>114.7</var>the sum of $...... and waive all irregularities in the tax proceedings affecting these taxes and <br/>
<a id="pl.114.8"></a><var>114.8</var>any defense or objection which I may have to them, and direct judgment to be entered for <br/>
<a id="pl.114.9"></a><var>114.9</var>the amount stated above, minus the sum of $............, to be paid with this document, which <br/>
<a id="pl.114.10"></a><var>114.10</var>is one-tenth or one-fifth of the amount of the taxes, costs, penalty, and interest stated above. <br/>
<a id="pl.114.11"></a><var>114.11</var>I agree to pay the balance of the judgment in nine or four equal, annual installments, with <br/>
<a id="pl.114.12"></a><var>114.12</var>interest as provided in section 
         <statute_ref>279.03</statute_ref>, payable annually, on the installments remaining <br/>
<a id="pl.114.13"></a><var>114.13</var>unpaid. I agree to pay the installments and interest on or before December 31 of each year <br/>
<a id="pl.114.14"></a><var>114.14</var>following the year in which this judgment is confessed and current taxes each year before <br/>
<a id="pl.114.15"></a><var>114.15</var>they become delinquent, or within 30 days after the entry of final judgment in proceedings <br/>
<a id="pl.114.16"></a><var>114.16</var>to contest the taxes under Minnesota Statutes, sections 
<statute_ref>278.01</statute_ref> to 
<statute_ref>278.13</statute_ref> chapter 278.<br/>
<a id="pl.114.17"></a><var>114.17</var>Dated .............., ......."<br/>
<a id="pl.114.18"></a><var>114.18</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.44.0"></a><a id="pl.114.19"></a><var>114.19</var>    Sec. 44. Minnesota Statutes 2012, section 280.001, is amended to read:<br/>
<a id="pl.114.20"></a><var>114.20</var><b>280.001 PUBLIC SALES, AUDITOR'S CERTIFICATES ABOLISHED.</b><br/>
<a id="pl.114.21"></a><var>114.21</var>Effective the second Monday in May 1974, and each year thereafter, No parcel of <br/>
<a id="pl.114.22"></a><var>114.22</var>land against which judgment has been entered and remains unsatisfied for the taxes of <br/>
<a id="pl.114.23"></a><var>114.23</var>the preceding year or years may be sold at public vendue as provided in sections 
         <statute_ref>280.01</statute_ref> <br/>
<a id="pl.114.24"></a><var>114.24</var>and 
         <statute_ref>280.02</statute_ref> by the county auditor but shall be treated in the same manner and regarded in <br/>
<a id="pl.114.25"></a><var>114.25</var>all respects as land bid in for the state by the auditor in the manner provided in section <br/>
<statute_ref><a id="pl.114.26"></a><var>114.26</var>280.02
         </statute_ref>. No notice of sale required by section 
         <statute_ref>280.01</statute_ref> shall be published or posted in 1974 <br/>
<a id="pl.114.27"></a><var>114.27</var>and in years thereafter, and no auditor's certificate authorized by section 
         <statute_ref>280.03</statute_ref> shall be <br/>
<a id="pl.114.28"></a><var>114.28</var>issued on the second Monday in May 1974, or thereafter.<br/>
<a id="pl.114.29"></a><var>114.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.45.0"></a><a id="pl.114.30"></a><var>114.30</var>    Sec. 45. Minnesota Statutes 2012, section 280.03, is amended to read:<br/>
<a id="pl.114.31"></a><var>114.31</var><b>280.03 CERTIFICATE OF SALE.</b><br/>
<a id="pl.115.1"></a><var>115.1</var>The county auditor shall execute to the purchaser of each parcel a certificate which <br/>
<a id="pl.115.2"></a><var>115.2</var>may be substantially in the following form:<br/>
<a id="pl.115.3"></a><var>115.3</var>"I, .........., auditor of the county of .........., state of Minnesota, do hereby certify that <br/>
<a id="pl.115.4"></a><var>115.4</var>at the sale of lands pursuant to the real estate tax judgment entered in the district court <br/>
<a id="pl.115.5"></a><var>115.5</var>in the county of .........., on the .......... day of .........., ......., in proceedings to enforce the <br/>
<a id="pl.115.6"></a><var>115.6</var>payment of taxes delinquent on real estate for the years .........., for the county of .........., <br/>
<a id="pl.115.7"></a><var>115.7</var>which sale was held at ..............., in said county of ........, on the ........ day of ........, ......., <br/>
<a id="pl.115.8"></a><var>115.8</var>the following described parcel of land, situate in said county of .........., state of Minnesota: <br/>
<a id="pl.115.9"></a><var>115.9</var>(insert description), was offered for sale to the bidder who should offer to pay the amount <br/>
<a id="pl.115.10"></a><var>115.10</var>for which the same was to be sold, at the lowest annual rate of interest on such amount; <br/>
<a id="pl.115.11"></a><var>115.11</var>and at said sale I did sell the said parcel of land to .......... for the sum of .......... dollars, <br/>
<a id="pl.115.12"></a><var>115.12</var>with interest at .......... percent per annum on such amount, that being the sum for which the <br/>
<a id="pl.115.13"></a><var>115.13</var>same was to be sold, and such rate of interest being the lowest rate percent per annum bid <br/>
<a id="pl.115.14"></a><var>115.14</var>on such sum; and, the sum having been paid, I do therefore, in consideration thereof, and <br/>
<a id="pl.115.15"></a><var>115.15</var>pursuant to the statute in such case made and provided, convey the said parcel of land, in <br/>
<a id="pl.115.16"></a><var>115.16</var>fee simple, subject to easements and restrictions of record at the date of the tax judgment <br/>
<a id="pl.115.17"></a><var>115.17</var>sale, including, but without limitation, permits for telephone, telegraph and electric <br/>
<a id="pl.115.18"></a><var>115.18</var>power lines either by underground cable or conduit or otherwise, sewer and water lines, <br/>
<a id="pl.115.19"></a><var>115.19</var>highways, railroads, and pipe lines for gas, liquids, or solids in suspension, to said .........., <br/>
<a id="pl.115.20"></a><var>115.20</var>and the heirs and assigns of ......., forever, subject to redemption as provided by law.<br/>
<a id="pl.115.21"></a><var>115.21</var>Witness my hand and official seal this ........ day of ........, ....... .<br/>
<table>
<col width="50px"/>
<col width="30"/>
<col width="30"/>
<col width="5"/>
<tr>
<td><a id="pl.115.22"></a><var>115.22</var><br/>
<a id="pl.115.23"></a><var>115.23</var><br/>
</td>
<td></td>
<td><span>
                     							.....
                     						</span><br/>
                  		County Auditor."<br/>
</td>
<td></td>
</tr>
</table><a id="pl.115.24"></a><var>115.24</var>If the land shall not be redeemed as provided in chapter 281, such certificate shall <br/>
<a id="pl.115.25"></a><var>115.25</var>pass to the purchaser an estate therein, in fee simple, without any other act or deed <br/>
<a id="pl.115.26"></a><var>115.26</var>whatever subject to easements and restrictions of record at the date of the tax judgment <br/>
<a id="pl.115.27"></a><var>115.27</var>sale, including, but without limitation, permits for telephone, telegraph, and electric <br/>
<a id="pl.115.28"></a><var>115.28</var>power lines either by underground cable or conduit or otherwise, sewer and water lines, <br/>
<a id="pl.115.29"></a><var>115.29</var>highways, railroads, and pipe lines for gas, liquids, or solids in suspension. Such certificate <br/>
<a id="pl.115.30"></a><var>115.30</var>may be recorded, after the time for redemption shall have expired, as other deeds of real <br/>
<a id="pl.115.31"></a><var>115.31</var>estate, and with like effect. If any purchaser at such sale shall purchase more than one <br/>
<a id="pl.115.32"></a><var>115.32</var>parcel, the auditor shall issue to the purchaser a certificate for each parcel so purchased.<br/>
<a id="pl.115.33"></a><var>115.33</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.46.0"></a><a id="pl.115.34"></a><var>115.34</var>    Sec. 46. Minnesota Statutes 2012, section 280.07, is amended to read:<br/>
<a id="pl.115.35"></a><var>115.35</var><b>280.07 ENTRIES </b><b>IN JUDGMENT BOOKS</b><b> AFTER SALE.</b><br/>
<a id="pl.116.1"></a><var>116.1</var>Immediately after such sale the county auditor shall set out in the copy judgment <br/>
<a id="pl.116.2"></a><var>116.2</var>book record that all parcels were bid in for the state. The county auditor shall thereupon <br/>
<a id="pl.116.3"></a><var>116.3</var>deliver such book to notify the court administrator, who shall forthwith enter on the <br/>
<a id="pl.116.4"></a><var>116.4</var>right-hand page of the real estate tax judgment book, opposite the description of each <br/>
<a id="pl.116.5"></a><var>116.5</var>parcel sold, the words "bid in for the state," and thereupon redeliver the copy judgment <br/>
<a id="pl.116.6"></a><var>116.6</var>book to the auditor. Upon redemption the auditor shall make a note thereon in the copy <br/>
<a id="pl.116.7"></a><var>116.7</var>judgment book, opposite the parcel redeemed.<br/>
<a id="pl.116.8"></a><var>116.8</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.47.0"></a><a id="pl.116.9"></a><var>116.9</var>    Sec. 47. Minnesota Statutes 2012, section 280.11, is amended to read:<br/>
<a id="pl.116.10"></a><var>116.10</var><b>280.11 LANDS BID IN FOR STATE.</b><br/>
<a id="pl.116.11"></a><var>116.11</var>At any time after any parcel of land has been bid in for the state, the same not having <br/>
<a id="pl.116.12"></a><var>116.12</var>been redeemed, the county auditor shall assign and convey the same, and all the right of <br/>
<a id="pl.116.13"></a><var>116.13</var>the state therein acquired at such sale, to any person who shall pay the amount for which <br/>
<a id="pl.116.14"></a><var>116.14</var>the same was bid in, with interest at the rate of 12 percent per annum, and the amount of <br/>
<a id="pl.116.15"></a><var>116.15</var>all subsequent delinquent taxes, penalties, costs, and interest at such rate upon the same <br/>
<a id="pl.116.16"></a><var>116.16</var>from the time when such taxes became delinquent. The county auditor shall execute to <br/>
<a id="pl.116.17"></a><var>116.17</var>such person a certificate for such parcel, which may be substantially in the following form:<br/>
<a id="pl.116.18"></a><var>116.18</var>"I, .........., auditor of the county of .........., state of Minnesota, do hereby certify that <br/>
<a id="pl.116.19"></a><var>116.19</var>at the sale of lands pursuant to the real estate tax judgment entered in the district court <br/>
<a id="pl.116.20"></a><var>116.20</var>in the county of .........., on the .......... day of .........., ......., in proceedings to enforce the <br/>
<a id="pl.116.21"></a><var>116.21</var>payment of taxes delinquent upon real estate for the years .......... for the county of .........., <br/>
<a id="pl.116.22"></a><var>116.22</var>which sale was held at .........., in said county of .........., on the .......... day of .........., ......., <br/>
<a id="pl.116.23"></a><var>116.23</var>the following described parcel of land, situate in said county of .........., state of Minnesota: <br/>
<a id="pl.116.24"></a><var>116.24</var>(insert description), was duly offered for sale; and, no one bidding upon such offer an <br/>
<a id="pl.116.25"></a><var>116.25</var>amount equal to that for which the parcel was subject to be sold, the same was then bid in <br/>
<a id="pl.116.26"></a><var>116.26</var>for the state at such amount, being the sum of .......... dollars; and the same still remaining <br/>
<a id="pl.116.27"></a><var>116.27</var>unredeemed, and on this day .......... having paid into the treasury of the county the amount <br/>
<a id="pl.116.28"></a><var>116.28</var>for which the same was so bid in, and all subsequent delinquent taxes, penalties, costs, <br/>
<a id="pl.116.29"></a><var>116.29</var>and interest, amounting in all to .......... dollars, therefore, in consideration thereof, and <br/>
<a id="pl.116.30"></a><var>116.30</var>pursuant to the statute in such case made and provided, I do hereby assign and convey this <br/>
<a id="pl.116.31"></a><var>116.31</var>parcel of land, in fee simple, subject to easements and restrictions of record at the date of <br/>
<a id="pl.116.32"></a><var>116.32</var>the tax judgment sale, including but without limitation, permits for telephone, telegraph,<br/>
<a id="pl.116.33"></a><var>116.33</var> and electric power lines either by underground cable or conduit or otherwise, sewer and <br/>
<a id="pl.116.34"></a><var>116.34</var>water lines, highways, railroads, and pipe lines for gas, liquids, or solids in suspension, <br/>
<a id="pl.117.1"></a><var>117.1</var>with all the right, title and interest of the state acquired therein at such sale to .........., and <br/>
<a id="pl.117.2"></a><var>117.2</var>the heirs and assigns of ........, forever, subject to redemption as provided by law.<br/>
<a id="pl.117.3"></a><var>117.3</var>Witness my hand and official seal this .......... day of .........., .......<br/>
<table>
<col width="50px"/>
<col width="30"/>
<col width="30"/>
<col width="5"/>
<tr>
<td><a id="pl.117.4"></a><var>117.4</var><br/>
<a id="pl.117.5"></a><var>117.5</var><br/>
</td>
<td></td>
<td><span>
                     							.....
                     						</span><br/>
                  		County Auditor."<br/>
</td>
<td></td>
</tr>
</table><a id="pl.117.6"></a><var>117.6</var>If the land shall not be redeemed, as provided in chapter 281, such certificate shall <br/>
<a id="pl.117.7"></a><var>117.7</var>pass to the purchaser or assignee an estate therein, in fee simple, without any other act <br/>
<a id="pl.117.8"></a><var>117.8</var>or deed whatever subject to easements and restrictions of record at the date of the tax <br/>
<a id="pl.117.9"></a><var>117.9</var>judgment sale, including, but without limitation, permits for telephone, telegraph and <br/>
<a id="pl.117.10"></a><var>117.10</var>electric power lines either by underground cable or conduit or otherwise, sewer and water <br/>
<a id="pl.117.11"></a><var>117.11</var>lines, highways, railroads, and pipe lines for gas, liquids, or solids in suspension. Such <br/>
<a id="pl.117.12"></a><var>117.12</var>certificate or conveyance may be recorded, after the time for redemption shall have <br/>
<a id="pl.117.13"></a><var>117.13</var>expired, as other deeds of real estate, and with like effect. No assignment of the right of <br/>
<a id="pl.117.14"></a><var>117.14</var>the state shall be given pursuant to this section after January 1, 1972.<br/>
<a id="pl.117.15"></a><var>117.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.48.0"></a><a id="pl.117.16"></a><var>117.16</var>    Sec. 48. Minnesota Statutes 2012, section 281.03, is amended to read:<br/>
<a id="pl.117.17"></a><var>117.17</var><b>281.03 AUDITOR'S CERTIFICATE.</b><br/>
<a id="pl.117.18"></a><var>117.18</var>The county auditor shall certify to the amount due on such redemption, and, on <br/>
<a id="pl.117.19"></a><var>117.19</var>payment of the same to the county treasurer, shall make duplicate receipts for the certified <br/>
<a id="pl.117.20"></a><var>117.20</var>amount, describing the property redeemed, one of which shall be filed with the auditor. <br/>
<a id="pl.117.21"></a><var>117.21</var>Such receipts shall be governed by the provisions of this chapter regulating the payment <br/>
<a id="pl.117.22"></a><var>117.22</var>of current taxes and such payment shall have the effect to annul the sale. If the amount <br/>
<a id="pl.117.23"></a><var>117.23</var>certified by the auditor and received in payment for redemption be less than that required <br/>
<a id="pl.117.24"></a><var>117.24</var>by law, it shall not invalidate the redemption. On redemption being made, the auditor shall <br/>
<a id="pl.117.25"></a><var>117.25</var>enter upon the copy of the tax judgment book, opposite the description of record the <br/>
<a id="pl.117.26"></a><var>117.26</var>parcel as redeemed, the word, "redeemed.".<br/>
<a id="pl.117.27"></a><var>117.27</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.49.0"></a><a id="pl.117.28"></a><var>117.28</var>    Sec. 49. Minnesota Statutes 2013 Supplement, section 281.17, is amended to read:<br/>
<a id="pl.117.29"></a><var>117.29</var><b>281.17 PERIOD FOR REDEMPTION.</b><br/>
<a id="pl.117.30"></a><var>117.30</var>Except for properties for which the period of redemption has been limited under <br/>
<a id="pl.117.31"></a><var>117.31</var>sections 
         <statute_ref>281.173</statute_ref> and 
         <statute_ref>281.174</statute_ref>, the following periods for redemption apply.<br/>
<a id="pl.117.32"></a><var>117.32</var>The period of redemption for all lands sold to the state at a tax judgment sale shall <br/>
<a id="pl.117.33"></a><var>117.33</var>be three years from the date of sale to the state of Minnesota.<br/>
<a id="pl.118.1"></a><var>118.1</var>The period of redemption for homesteaded lands as defined in section 
         <statute_ref>273.13, <br/>
<a id="pl.118.2"></a><var>118.2</var>subdivision 22
         </statute_ref>, located in a targeted neighborhood as defined in Laws 1987, chapter 386, <br/>
<a id="pl.118.3"></a><var>118.3</var>article 6, section 4, and sold to the state at a tax judgment sale is three years from the date <br/>
<a id="pl.118.4"></a><var>118.4</var>of sale. The period of redemption for all lands located in a targeted neighborhood as <br/>
<a id="pl.118.5"></a><var>118.5</var>defined in Laws 1987, chapter 386, article 6, section 4, except (1) homesteaded lands as <br/>
<a id="pl.118.6"></a><var>118.6</var>defined in section 
         <statute_ref>273.13, subdivision 22</statute_ref>, and (2) for periods of redemption beginning <br/>
<a id="pl.118.7"></a><var>118.7</var>after June 30, 1991, but before July 1, 1996, lands located in the Loring Park targeted <br/>
<a id="pl.118.8"></a><var>118.8</var>neighborhood on which a notice of lis pendens has been served, and sold to the state at a <br/>
<a id="pl.118.9"></a><var>118.9</var>tax judgment sale is one year from the date of sale.<br/>
<a id="pl.118.10"></a><var>118.10</var>The period of redemption for all real property constituting a mixed municipal solid <br/>
<a id="pl.118.11"></a><var>118.11</var>waste disposal facility that is a qualified facility under section 
         <statute_ref>115B.39, subdivision 1</statute_ref>, is <br/>
<a id="pl.118.12"></a><var>118.12</var>one year from the date of the sale to the state of Minnesota.<br/>
<a id="pl.118.13"></a><var>118.13</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.50.0"></a><a id="pl.118.14"></a><var>118.14</var>    Sec. 50. Minnesota Statutes 2012, section 281.327, is amended to read:<br/>
<a id="pl.118.15"></a><var>118.15</var><b>281.327 CANCELLATION OF CERTIFICATE UPON JUDICIAL ORDER.</b><br/>
<a id="pl.118.16"></a><var>118.16</var>Upon the petition of any person interested in the land covered by a real estate tax <br/>
<a id="pl.118.17"></a><var>118.17</var>sale certificate, state assignment certificate, or forfeited tax sale certificate and, upon the <br/>
<a id="pl.118.18"></a><var>118.18</var>giving of such notice to the holder of such certificate as may be ordered, the district court, <br/>
<a id="pl.118.19"></a><var>118.19</var>in the proceedings resulting in the judgment upon which a real estate tax judgment sale <br/>
<a id="pl.118.20"></a><var>118.20</var>certificate, state assignment certificate, or forfeited tax sale certificate is based, may order <br/>
<a id="pl.118.21"></a><var>118.21</var>the cancellation of a real estate tax judgment sale certificate, state assignment certificate, <br/>
<a id="pl.118.22"></a><var>118.22</var>or forfeited tax sale certificate upon which notice of expiration of time of redemption <br/>
<a id="pl.118.23"></a><var>118.23</var>has been issued when the certificate or a deed issued thereon has not been recorded in <br/>
<a id="pl.118.24"></a><var>118.24</var>the office of the county recorder or filed in that of the registrar of titles, if the land is <br/>
<a id="pl.118.25"></a><var>118.25</var>registered, within seven years after the date of the issuance of such certificate; the county <br/>
<a id="pl.118.26"></a><var>118.26</var>auditor, on the filing of the order, shall make an entry in the proper copy real estate tax <br/>
<a id="pl.118.27"></a><var>118.27</var>judgment book, opposite the description of the land, "canceled by order of court" record <br/>
<a id="pl.118.28"></a><var>118.28</var>the land as canceled by order of court; and the rights of the holder under the certificate <br/>
<a id="pl.118.29"></a><var>118.29</var>shall thereupon be terminated of record in the office of the county auditor.<br/>
<a id="pl.118.30"></a><var>118.30</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.51.0"></a><a id="pl.118.31"></a><var>118.31</var>    Sec. 51. Minnesota Statutes 2012, section 282.01, subdivision 6, is amended to read:<br/>
<a id="pl.118.32"></a><var>118.32</var>    Subd. 6. <b>Duties of commissioner after sale.</b> When any sale has been made by the <br/>
<a id="pl.118.33"></a><var>118.33</var>county auditor under sections 
         <statute_ref>282.01</statute_ref> to 
         <statute_ref>282.13</statute_ref>, the auditor shall immediately certify to <br/>
<a id="pl.119.1"></a><var>119.1</var>the commissioner of revenue such information relating to such sale, on such forms as the <br/>
<a id="pl.119.2"></a><var>119.2</var>commissioner of revenue may prescribe as will enable the commissioner of revenue to <br/>
<a id="pl.119.3"></a><var>119.3</var>prepare an appropriate deed if the sale is for cash, or keep necessary records if the sale <br/>
<a id="pl.119.4"></a><var>119.4</var>is on terms; and not later than October 31 of each year the county auditor shall submit <br/>
<a id="pl.119.5"></a><var>119.5</var>to the commissioner of revenue a statement of all instances wherein any payment of <br/>
<a id="pl.119.6"></a><var>119.6</var>principal, interest, or current taxes on lands held under certificate, due or to be paid during <br/>
<a id="pl.119.7"></a><var>119.7</var>the preceding calendar years, are still outstanding at the time such certificate is made. <br/>
<a id="pl.119.8"></a><var>119.8</var>When such statement shows that a purchaser or the purchaser's assignee is in default, the <br/>
<a id="pl.119.9"></a><var>119.9</var>commissioner of revenue may instruct the county board of the county in which the land is <br/>
<a id="pl.119.10"></a><var>119.10</var>located to cancel said certificate of sale in the manner provided by subdivision 5, provided <br/>
<a id="pl.119.11"></a><var>119.11</var>that upon recommendation of the county board, and where the circumstances are such <br/>
<a id="pl.119.12"></a><var>119.12</var>that the commissioner of revenue after investigation is satisfied that the purchaser has <br/>
<a id="pl.119.13"></a><var>119.13</var>made every effort reasonable to make payment of both the annual installment and said <br/>
<a id="pl.119.14"></a><var>119.14</var>taxes, and that there has been no willful neglect on the part of the purchaser in meeting <br/>
<a id="pl.119.15"></a><var>119.15</var>these obligations, then the commissioner of revenue may extend the time for the payment <br/>
<a id="pl.119.16"></a><var>119.16</var>for such period as the commissioner may deem warranted, not to exceed one year. On <br/>
<a id="pl.119.17"></a><var>119.17</var>payment in full of the purchase price, appropriate conveyance in fee, in such form as may <br/>
<a id="pl.119.18"></a><var>119.18</var>be prescribed by the attorney general, shall be issued by the commissioner of revenue, <br/>
<a id="pl.119.19"></a><var>119.19</var>which conveyance must be recorded by the county and shall have the force and effect of <br/>
<a id="pl.119.20"></a><var>119.20</var>a patent from the state subject to easements and restrictions of record at the date of the <br/>
<a id="pl.119.21"></a><var>119.21</var>tax judgment sale, including, but without limitation, permits for telephone, telegraph, and <br/>
<a id="pl.119.22"></a><var>119.22</var>electric power lines either by underground cable or conduit or otherwise, sewer and water <br/>
<a id="pl.119.23"></a><var>119.23</var>lines, highways, railroads, and pipe lines for gas, liquids, or solids in suspension.<br/>
<a id="pl.119.24"></a><var>119.24</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.52.0"></a><a id="pl.119.25"></a><var>119.25</var>    Sec. 52. Minnesota Statutes 2012, section 282.04, subdivision 4, is amended to read:<br/>
<a id="pl.119.26"></a><var>119.26</var>    Subd. 4. <b>Easements.</b> The county auditor, when and for such price and on such <br/>
<a id="pl.119.27"></a><var>119.27</var>terms and for such period as the county board prescribes, may grant easements or permits <br/>
<a id="pl.119.28"></a><var>119.28</var>on unsold tax-forfeited land for telephone, telegraph, and electric power lines either by <br/>
<a id="pl.119.29"></a><var>119.29</var>underground cable or conduit or otherwise, sewer and water lines, highways, recreational <br/>
<a id="pl.119.30"></a><var>119.30</var>trails, railroads, and pipe lines for gas, liquids, or solids in suspension. Any such easement <br/>
<a id="pl.119.31"></a><var>119.31</var>or permit may be canceled by resolution of the county board after reasonable notice for <br/>
<a id="pl.119.32"></a><var>119.32</var>any substantial breach of its terms or if at any time its continuance will conflict with <br/>
<a id="pl.119.33"></a><var>119.33</var>public use of the land, or any part thereof, on which it is granted. Land affected by any <br/>
<a id="pl.119.34"></a><var>119.34</var>such easement or permit may be sold or leased for mineral or other legal purpose, but sale <br/>
<a id="pl.119.35"></a><var>119.35</var>or lease shall be subject to the easement or permit, and all rights granted by the easement <br/>
<a id="pl.120.1"></a><var>120.1</var>or permit shall be excepted from the conveyance or lease of the land and be reserved, <br/>
<a id="pl.120.2"></a><var>120.2</var>and may be canceled by the county board in the same manner and for the same reasons <br/>
<a id="pl.120.3"></a><var>120.3</var>as it could have been canceled before sale and in that case the rights granted thereby <br/>
<a id="pl.120.4"></a><var>120.4</var>shall vest in the state in trust as the land on which it was granted was held before sale or <br/>
<a id="pl.120.5"></a><var>120.5</var>lease. Any easement or permit granted before passage of Laws 1951, Chapter 203, may <br/>
<a id="pl.120.6"></a><var>120.6</var>be governed thereby if the holder thereof and county board so agree. Reasonable notice <br/>
<a id="pl.120.7"></a><var>120.7</var>as used in this subdivision, means a 90-day written notice addressed to the record owner <br/>
<a id="pl.120.8"></a><var>120.8</var>of the easement at the last known address, and upon cancellation the county board may <br/>
<a id="pl.120.9"></a><var>120.9</var>grant extensions of time to vacate the premises affected.<br/>
<a id="pl.120.10"></a><var>120.10</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.53.0"></a><a id="pl.120.11"></a><var>120.11</var>    Sec. 53. Minnesota Statutes 2012, section 282.261, subdivision 2, is amended to read:<br/>
<a id="pl.120.12"></a><var>120.12</var>    Subd. 2. <b>Interest rate.</b> The unpaid balance on any repurchase contract approved <br/>
<a id="pl.120.13"></a><var>120.13</var>by the county board on or after July 1, 1982, is subject to interest at the rate determined <br/>
<a id="pl.120.14"></a><var>120.14</var>pursuant to section 
<statute_ref>549.09</statute_ref>. Repurchase contracts approved after December 31, 1990, are <br/>
<a id="pl.120.15"></a><var>120.15</var>subject to interest at the rate determined in section 
         <statute_ref>279.03, subdivision 1a</statute_ref>. The interest <br/>
<a id="pl.120.16"></a><var>120.16</var>rate is subject to change each year on the unpaid balance in the manner provided for rate <br/>
<a id="pl.120.17"></a><var>120.17</var>changes in section 
         <statute_ref>549.09</statute_ref> or
<statute_ref>279.03, subdivision 1a</statute_ref>, whichever is applicable. Interest on <br/>
<a id="pl.120.18"></a><var>120.18</var>the unpaid contract balance on repurchases approved before July 1, 1982, is payable at the <br/>
<a id="pl.120.19"></a><var>120.19</var>rate applicable to the repurchase contract at the time that it was approved.<br/>
<a id="pl.120.20"></a><var>120.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.54.0"></a><a id="pl.120.21"></a><var>120.21</var>    Sec. 54. Minnesota Statutes 2012, section 282.261, subdivision 4, is amended to read:<br/>
<a id="pl.120.22"></a><var>120.22</var>    Subd. 4. <b>Service fee.</b> The county auditor may collect a service fee to cover <br/>
<a id="pl.120.23"></a><var>120.23</var>administrative costs as set by the county board for each repurchase application received <br/>
<a id="pl.120.24"></a><var>120.24</var>after July 1, 1985. The fee must be paid at the time of application and must be credited to <br/>
<a id="pl.120.25"></a><var>120.25</var>the county general revenue fund.<br/>
<a id="pl.120.26"></a><var>120.26</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.55.0"></a><a id="pl.120.27"></a><var>120.27</var>    Sec. 55. Minnesota Statutes 2012, section 282.261, subdivision 5, is amended to read:<br/>
<a id="pl.120.28"></a><var>120.28</var>    Subd. 5. <b>County may impose conditions of repurchase.</b> The county auditor, after <br/>
<a id="pl.120.29"></a><var>120.29</var>receiving county board approval, may impose conditions on repurchase of tax-forfeited <br/>
<a id="pl.120.30"></a><var>120.30</var>lands limiting the use of the parcel subject to the repurchase, including, but not limited to, <br/>
<a id="pl.120.31"></a><var>120.31</var>environmental remediation action plan restrictions or covenants, or easements for lines or <br/>
<a id="pl.120.32"></a><var>120.32</var>equipment for telephone, telegraph, electric power, or telecommunications.<br/>
<a id="pl.121.1"></a><var>121.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.56.0"></a><a id="pl.121.2"></a><var>121.2</var>    Sec. 56. Minnesota Statutes 2012, section 282.322, is amended to read:<br/>
<a id="pl.121.3"></a><var>121.3</var><b>282.322 FORFEITED LANDS LIST.</b><br/>
<a id="pl.121.4"></a><var>121.4</var>The county board of any county may at any time after the passage of Laws 1945, <br/>
<a id="pl.121.5"></a><var>121.5</var>chapter 296, file a list of forfeited lands with the county auditor, if the board is of the <br/>
<a id="pl.121.6"></a><var>121.6</var>opinion that such lands may be acquired by the state or any municipal subdivision thereof <br/>
<a id="pl.121.7"></a><var>121.7</var>for public purposes. Upon the filing of such list the county auditor shall withhold said <br/>
<a id="pl.121.8"></a><var>121.8</var>lands from repurchase. If no proceeding shall be started to acquire such lands by the <br/>
<a id="pl.121.9"></a><var>121.9</var>state or some municipal subdivision thereof within one year after the filing of such list <br/>
<a id="pl.121.10"></a><var>121.10</var>the county board shall withdraw said list and thereafter the owner shall have one year in <br/>
<a id="pl.121.11"></a><var>121.11</var>which to repurchase as otherwise provided in Laws 1945, chapter 296.<br/>
<a id="pl.121.12"></a><var>121.12</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.57.0"></a><a id="pl.121.13"></a><var>121.13</var>    Sec. 57. Minnesota Statutes 2012, section 287.30, is amended to read:<br/>
<a id="pl.121.14"></a><var>121.14</var><b>287.30 COUNTY TREASURER; DUTIES.</b><br/>
<a id="pl.121.15"></a><var>121.15</var>The care of documentary stamps entrusted to county treasurers and the duties imposed <br/>
<a id="pl.121.16"></a><var>121.16</var>upon county treasurers by this chapter are within the duties of such office and are within <br/>
<a id="pl.121.17"></a><var>121.17</var>the coverage of any official bond delivered to the state, conditioned that any such officer <br/>
<a id="pl.121.18"></a><var>121.18</var>shall faithfully execute the duties of office. The county board may by resolution require <br/>
<a id="pl.121.19"></a><var>121.19</var>the county auditor to perform any duty imposed on the county treasurer under this chapter.<br/>
<a id="pl.121.20"></a><var>121.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.58.0"></a><a id="pl.121.21"></a><var>121.21</var>    Sec. 58. Minnesota Statutes 2012, section 289A.25, subdivision 1, is amended to read:<br/>
<a id="pl.121.22"></a><var>121.22</var>    Subdivision 1. <b>Requirements to pay.</b> An individual, trust, S corporation, or <br/>
<a id="pl.121.23"></a><var>121.23</var>partnership must, when prescribed in subdivision 3, paragraph (b), make payments of <br/>
<a id="pl.121.24"></a><var>121.24</var>estimated tax. For individuals, the term "estimated tax" means the amount the taxpayer <br/>
<a id="pl.121.25"></a><var>121.25</var>estimates is the sum of the taxes imposed by chapter 290 for the taxable year. For trusts, <br/>
<a id="pl.121.26"></a><var>121.26</var>S corporations, and partnerships, the term estimated tax means the amount the taxpayer <br/>
<a id="pl.121.27"></a><var>121.27</var>estimates is the sum of the taxes for the taxable year imposed by chapter 290 and the <br/>
<a id="pl.121.28"></a><var>121.28</var>composite income tax imposed by section 
         <statute_ref>289A.08, subdivision 7</statute_ref>. If the individual is an <br/>
<a id="pl.121.29"></a><var>121.29</var>infant or incompetent person, the payments must be made by the individual's guardian. If <br/>
<a id="pl.121.30"></a><var>121.30</var>joint payments on estimated tax are made but a joint return is not made for the taxable <br/>
<a id="pl.121.31"></a><var>121.31</var>year, the estimated tax for that year may be treated as the estimated tax of either the <br/>
<a id="pl.121.32"></a><var>121.32</var>husband or the wife or may be divided between them.<br/>
<a id="pl.122.1"></a><var>122.1</var>Notwithstanding the provisions of this section, no payments of estimated tax are <br/>
<a id="pl.122.2"></a><var>122.2</var>required if the estimated tax, as defined in this subdivision, less the credits allowed against <br/>
<a id="pl.122.3"></a><var>122.3</var>the tax, is less than $500.<br/>
<a id="pl.122.4"></a><var>122.4</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.59.0"></a><a id="pl.122.5"></a><var>122.5</var>    Sec. 59. Minnesota Statutes 2012, section 290.01, subdivision 5, is amended to read:<br/>
<a id="pl.122.6"></a><var>122.6</var>    Subd. 5. <b>Domestic corporation.</b> The term "domestic" when applied to a corporation <br/>
<a id="pl.122.7"></a><var>122.7</var>means a corporation:<br/>
<a id="pl.122.8"></a><var>122.8</var>(1) created or organized in the United States, or under the laws of the United <br/>
<a id="pl.122.9"></a><var>122.9</var>States or of any state, the District of Columbia, or any political subdivision of any of <br/>
<a id="pl.122.10"></a><var>122.10</var>the foregoing but not including the Commonwealth of Puerto Rico, or any possession <br/>
<a id="pl.122.11"></a><var>122.11</var>of the United States; or<br/>
<a id="pl.122.12"></a><var>122.12</var>(2) which qualifies as a DISC, as defined in section 992(a) of the Internal Revenue <br/>
<a id="pl.122.13"></a><var>122.13</var>Code; or.<br/>
<a id="pl.122.14"></a><var>122.14</var>(3) which qualifies as a FSC, as defined in section 922 of the Internal Revenue Code.<br/>
<a id="pl.122.15"></a><var>122.15</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.122.16"></a><var>122.16</var>December 31, 2013.<br/>
<br/>
<a id="bill.7.60.0"></a><a id="pl.122.17"></a><var>122.17</var>    Sec. 60. Minnesota Statutes 2013 Supplement, section 290.01, subdivision 19d, <br/>
<a id="pl.122.18"></a><var>122.18</var>is amended to read:<br/>
<a id="pl.122.19"></a><var>122.19</var>    Subd. 19d. <b>Corporations; modifications decreasing federal taxable income.</b> For <br/>
<a id="pl.122.20"></a><var>122.20</var>corporations, there shall be subtracted from federal taxable income after the increases <br/>
<a id="pl.122.21"></a><var>122.21</var>provided in subdivision 19c:<br/>
<a id="pl.122.22"></a><var>122.22</var>    (1) the amount of foreign dividend gross-up added to gross income for federal <br/>
<a id="pl.122.23"></a><var>122.23</var>income tax purposes under section 78 of the Internal Revenue Code;<br/>
<a id="pl.122.24"></a><var>122.24</var>    (2) the amount of salary expense not allowed for federal income tax purposes due to <br/>
<a id="pl.122.25"></a><var>122.25</var>claiming the work opportunity credit under section 51 of the Internal Revenue Code;<br/>
<a id="pl.122.26"></a><var>122.26</var>    (3) any dividend (not including any distribution in liquidation) paid within the <br/>
<a id="pl.122.27"></a><var>122.27</var>taxable year by a national or state bank to the United States, or to any instrumentality of <br/>
<a id="pl.122.28"></a><var>122.28</var>the United States exempt from federal income taxes, on the preferred stock of the bank <br/>
<a id="pl.122.29"></a><var>122.29</var>owned by the United States or the instrumentality;<br/>
<a id="pl.122.30"></a><var>122.30</var>    (4) amounts disallowed for intangible drilling costs due to differences between <br/>
<a id="pl.122.31"></a><var>122.31</var>this chapter and the Internal Revenue Code in taxable years beginning before January <br/>
<a id="pl.122.32"></a><var>122.32</var>1, 1987, as follows:<br/>
<a id="pl.123.1"></a><var>123.1</var>    (i) to the extent the disallowed costs are represented by physical property, an amount <br/>
<a id="pl.123.2"></a><var>123.2</var>equal to the allowance for depreciation under Minnesota Statutes 1986, section 
<statute_ref>290.09, <br/>
<a id="pl.123.3"></a><var>123.3</var>subdivision 7
</statute_ref>, subject to the modifications contained in subdivision 19e; and<br/>
<a id="pl.123.4"></a><var>123.4</var>    (ii) to the extent the disallowed costs are not represented by physical property, an <br/>
<a id="pl.123.5"></a><var>123.5</var>amount equal to the allowance for cost depletion under Minnesota Statutes 1986, section <br/>
<a id="pl.123.6"></a><var>123.6</var><statute_ref>290.09, subdivision 8</statute_ref>;<br/>
<a id="pl.123.7"></a><var>123.7</var>    (5) (4) the deduction for capital losses pursuant to sections 1211 and 1212 of the <br/>
<a id="pl.123.8"></a><var>123.8</var>Internal Revenue Code, except that:<br/>
<a id="pl.123.9"></a><var>123.9</var>    (i) for capital losses incurred in taxable years beginning after December 31, 1986, <br/>
<a id="pl.123.10"></a><var>123.10</var>capital loss carrybacks shall not be allowed;<br/>
<a id="pl.123.11"></a><var>123.11</var>    (ii) for capital losses incurred in taxable years beginning after December 31, 1986, <br/>
<a id="pl.123.12"></a><var>123.12</var>a capital loss carryover to each of the 15 taxable years succeeding the loss year shall be <br/>
<a id="pl.123.13"></a><var>123.13</var>allowed;<br/>
<a id="pl.123.14"></a><var>123.14</var>    (iii) for capital losses incurred in taxable years beginning before January 1, 1987, a <br/>
<a id="pl.123.15"></a><var>123.15</var>capital loss carryback to each of the three taxable years preceding the loss year, subject to <br/>
<a id="pl.123.16"></a><var>123.16</var>the provisions of Minnesota Statutes 1986, section 
         <statute_ref>290.16</statute_ref>, shall be allowed; and<br/>
<a id="pl.123.17"></a><var>123.17</var>    (iv) for capital losses incurred in taxable years beginning before January 1, 1987, <br/>
<a id="pl.123.18"></a><var>123.18</var>a capital loss carryover to each of the five taxable years succeeding the loss year to the <br/>
<a id="pl.123.19"></a><var>123.19</var>extent such loss was not used in a prior taxable year and subject to the provisions of <br/>
<a id="pl.123.20"></a><var>123.20</var>Minnesota Statutes 1986, section 
         <statute_ref>290.16</statute_ref>, shall be allowed;<br/>
<a id="pl.123.21"></a><var>123.21</var>    (6) (5) an amount for interest and expenses relating to income not taxable for federal <br/>
<a id="pl.123.22"></a><var>123.22</var>income tax purposes, if (i) the income is taxable under this chapter and (ii) the interest and <br/>
<a id="pl.123.23"></a><var>123.23</var>expenses were disallowed as deductions under the provisions of section 171(a)(2), 265 or <br/>
<a id="pl.123.24"></a><var>123.24</var>291 of the Internal Revenue Code in computing federal taxable income;<br/>
<a id="pl.123.25"></a><var>123.25</var>    (7) (6) in the case of mines, oil and gas wells, other natural deposits, and timber for <br/>
<a id="pl.123.26"></a><var>123.26</var>which percentage depletion was disallowed pursuant to subdivision 19c, clause (8), a <br/>
<a id="pl.123.27"></a><var>123.27</var>reasonable allowance for depletion based on actual cost. In the case of leases the deduction <br/>
<a id="pl.123.28"></a><var>123.28</var>must be apportioned between the lessor and lessee in accordance with rules prescribed <br/>
<a id="pl.123.29"></a><var>123.29</var>by the commissioner. In the case of property held in trust, the allowable deduction must <br/>
<a id="pl.123.30"></a><var>123.30</var>be apportioned between the income beneficiaries and the trustee in accordance with the <br/>
<a id="pl.123.31"></a><var>123.31</var>pertinent provisions of the trust, or if there is no provision in the instrument, on the basis <br/>
<a id="pl.123.32"></a><var>123.32</var>of the trust's income allocable to each;<br/>
<a id="pl.123.33"></a><var>123.33</var>    (8) (7) for certified pollution control facilities placed in service in a taxable year <br/>
<a id="pl.123.34"></a><var>123.34</var>beginning before December 31, 1986, and for which amortization deductions were elected <br/>
<a id="pl.123.35"></a><var>123.35</var>under section 169 of the Internal Revenue Code of 1954, as amended through December <br/>
<a id="pl.124.1"></a><var>124.1</var>31, 1985, an amount equal to the allowance for depreciation under Minnesota Statutes <br/>
<a id="pl.124.2"></a><var>124.2</var>1986, section 
         <statute_ref>290.09, subdivision 7</statute_ref>;<br/>
<a id="pl.124.3"></a><var>124.3</var>    (9) (8) amounts included in federal taxable income that are due to refunds of <br/>
<a id="pl.124.4"></a><var>124.4</var>income, excise, or franchise taxes based on net income or related minimum taxes paid <br/>
<a id="pl.124.5"></a><var>124.5</var>by the corporation to Minnesota, another state, a political subdivision of another state, <br/>
<a id="pl.124.6"></a><var>124.6</var>the District of Columbia, or a foreign country or possession of the United States to the <br/>
<a id="pl.124.7"></a><var>124.7</var>extent that the taxes were added to federal taxable income under subdivision 19c, clause <br/>
<a id="pl.124.8"></a><var>124.8</var>(1), in a prior taxable year;<br/>
<a id="pl.124.9"></a><var>124.9</var>    (10) (9) income or gains from the business of mining as defined in section 
         <statute_ref>290.05, <br/>
<a id="pl.124.10"></a><var>124.10</var>subdivision 1
         </statute_ref>, clause (a), that are not subject to Minnesota franchise tax;<br/>
<a id="pl.124.11"></a><var>124.11</var>    (11) (10) the amount of disability access expenditures in the taxable year which are not <br/>
<a id="pl.124.12"></a><var>124.12</var>allowed to be deducted or capitalized under section 44(d)(7) of the Internal Revenue Code;<br/>
<a id="pl.124.13"></a><var>124.13</var>    (12) (11) the amount of qualified research expenses not allowed for federal income <br/>
<a id="pl.124.14"></a><var>124.14</var>tax purposes under section 280C(c) of the Internal Revenue Code, but only to the extent <br/>
<a id="pl.124.15"></a><var>124.15</var>that the amount exceeds the amount of the credit allowed under section 
         <statute_ref>290.068</statute_ref>;<br/>
<a id="pl.124.16"></a><var>124.16</var>    (13) (12) the amount of salary expenses not allowed for federal income tax purposes <br/>
<a id="pl.124.17"></a><var>124.17</var>due to claiming the Indian employment credit under section 45A(a) of the Internal <br/>
<a id="pl.124.18"></a><var>124.18</var>Revenue Code;<br/>
<a id="pl.124.19"></a><var>124.19</var>    (14) (13) any decrease in subpart F income, as defined in section 952(a) of the <br/>
<a id="pl.124.20"></a><var>124.20</var>Internal Revenue Code, for the taxable year when subpart F income is calculated without <br/>
<a id="pl.124.21"></a><var>124.21</var>regard to the provisions of Division C, title III, section 303(b) of Public Law 110-343;<br/>
<a id="pl.124.22"></a><var>124.22</var>    (15) (14) in each of the five tax years immediately following the tax year in which <br/>
<a id="pl.124.23"></a><var>124.23</var>an addition is required under subdivision 19c, clause (12), an amount equal to one-fifth <br/>
<a id="pl.124.24"></a><var>124.24</var>of the delayed depreciation. For purposes of this clause, "delayed depreciation" means <br/>
<a id="pl.124.25"></a><var>124.25</var>the amount of the addition made by the taxpayer under subdivision 19c, clause (12). The <br/>
<a id="pl.124.26"></a><var>124.26</var>resulting delayed depreciation cannot be less than zero;<br/>
<a id="pl.124.27"></a><var>124.27</var>    (16) (15) in each of the five tax years immediately following the tax year in which an <br/>
<a id="pl.124.28"></a><var>124.28</var>addition is required under subdivision 19c, clause (13), an amount equal to one-fifth of the <br/>
<a id="pl.124.29"></a><var>124.29</var>amount of the addition;<br/>
<a id="pl.124.30"></a><var>124.30</var>(17) (16) to the extent included in federal taxable income, discharge of indebtedness <br/>
<a id="pl.124.31"></a><var>124.31</var>income resulting from reacquisition of business indebtedness included in federal taxable <br/>
<a id="pl.124.32"></a><var>124.32</var>income under section 108(i) of the Internal Revenue Code. This subtraction applies only <br/>
<a id="pl.124.33"></a><var>124.33</var>to the extent that the income was included in net income in a prior year as a result of the <br/>
<a id="pl.124.34"></a><var>124.34</var>addition under subdivision 19c, clause (16); and<br/>
<a id="pl.125.1"></a><var>125.1</var>(18) (17) the amount of expenses not allowed for federal income tax purposes due <br/>
<a id="pl.125.2"></a><var>125.2</var>to claiming the railroad track maintenance credit under section 45G(a) of the Internal <br/>
<a id="pl.125.3"></a><var>125.3</var>Revenue Code.<br/>
<a id="pl.125.4"></a><var>125.4</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.125.5"></a><var>125.5</var>December 31, 2013.<br/>
<br/>
<a id="bill.7.61.0"></a><a id="pl.125.6"></a><var>125.6</var>    Sec. 61. Minnesota Statutes 2012, section 290.01, subdivision 19f, is amended to read:<br/>
<a id="pl.125.7"></a><var>125.7</var>    Subd. 19f. <b>Basis modifications affecting gain or loss on disposition of property.</b><br/>
<a id="pl.125.8"></a><var>125.8</var>(a) For individuals, estates, and trusts, the basis of property is its adjusted basis for federal <br/>
<a id="pl.125.9"></a><var>125.9</var>income tax purposes except as set forth in paragraphs (e) and (f), (g), and (m). For <br/>
<a id="pl.125.10"></a><var>125.10</var>corporations, the basis of property is its adjusted basis for federal income tax purposes, <br/>
<a id="pl.125.11"></a><var>125.11</var>without regard to the time when the property became subject to tax under this chapter or to <br/>
<a id="pl.125.12"></a><var>125.12</var>whether out-of-state losses or items of tax preference with respect to the property were not <br/>
<a id="pl.125.13"></a><var>125.13</var>deductible under this chapter, except that the modifications to the basis for federal income <br/>
<a id="pl.125.14"></a><var>125.14</var>tax purposes set forth in paragraphs (b) to (j) (i) are allowed to corporations, and the <br/>
<a id="pl.125.15"></a><var>125.15</var>resulting modifications to federal taxable income must be made in the year in which gain <br/>
<a id="pl.125.16"></a><var>125.16</var>or loss on the sale or other disposition of property is recognized.<br/>
<a id="pl.125.17"></a><var>125.17</var>(b) The basis of property shall not be reduced to reflect federal investment tax credit.<br/>
<a id="pl.125.18"></a><var>125.18</var>(c) The basis of property subject to the accelerated cost recovery system under <br/>
<a id="pl.125.19"></a><var>125.19</var>section 168 of the Internal Revenue Code shall be modified to reflect the modifications in <br/>
<a id="pl.125.20"></a><var>125.20</var>depreciation with respect to the property provided for in subdivision 19e. For certified <br/>
<a id="pl.125.21"></a><var>125.21</var>pollution control facilities for which amortization deductions were elected under section <br/>
<a id="pl.125.22"></a><var>125.22</var>169 of the Internal Revenue Code of 1954, the basis of the property must be increased by <br/>
<a id="pl.125.23"></a><var>125.23</var>the amount of the amortization deduction not previously allowed under this chapter.<br/>
<a id="pl.125.24"></a><var>125.24</var>(d) For property acquired before January 1, 1933, the basis for computing a gain is <br/>
<a id="pl.125.25"></a><var>125.25</var>the fair market value of the property as of that date. The basis for determining a loss is <br/>
<a id="pl.125.26"></a><var>125.26</var>the cost of the property to the taxpayer less any depreciation, amortization, or depletion, <br/>
<a id="pl.125.27"></a><var>125.27</var>actually sustained before that date. If the adjusted cost exceeds the fair market value of the <br/>
<a id="pl.125.28"></a><var>125.28</var>property, then the basis is the adjusted cost regardless of whether there is a gain or loss.<br/>
<a id="pl.125.29"></a><var>125.29</var>(e) (d) The basis is reduced by the allowance for amortization of bond premium if <br/>
<a id="pl.125.30"></a><var>125.30</var>an election to amortize was made pursuant to Minnesota Statutes 1986, section 290.09, <br/>
<a id="pl.125.31"></a><var>125.31</var>subdivision 13, and the allowance could have been deducted by the taxpayer under this <br/>
<a id="pl.125.32"></a><var>125.32</var>chapter during the period of the taxpayer's ownership of the property.<br/>
<a id="pl.125.33"></a><var>125.33</var>(f) (e) For assets placed in service before January 1, 1987, corporations, partnerships, <br/>
<a id="pl.125.34"></a><var>125.34</var>or individuals engaged in the business of mining ores other than iron ore or taconite <br/>
<a id="pl.126.1"></a><var>126.1</var>concentrates subject to the occupation tax under chapter 298 must use the occupation <br/>
<a id="pl.126.2"></a><var>126.2</var>tax basis of property used in that business.<br/>
<a id="pl.126.3"></a><var>126.3</var>(g) (f) For assets placed in service before January 1, 1990, corporations, partnerships, <br/>
<a id="pl.126.4"></a><var>126.4</var>or individuals engaged in the business of mining iron ore or taconite concentrates subject <br/>
<a id="pl.126.5"></a><var>126.5</var>to the occupation tax under chapter 298 must use the occupation tax basis of property <br/>
<a id="pl.126.6"></a><var>126.6</var>used in that business.<br/>
<a id="pl.126.7"></a><var>126.7</var>(h) (g) In applying the provisions of sections 301(c)(3)(B), 312(f) and (g), and <br/>
<a id="pl.126.8"></a><var>126.8</var>316(a)(1) of the Internal Revenue Code, the dates December 31, 1932, and January 1, <br/>
<a id="pl.126.9"></a><var>126.9</var>1933, shall be substituted for February 28, 1913, and March 1, 1913, respectively.<br/>
<a id="pl.126.10"></a><var>126.10</var>(i) (h) In applying the provisions of section 362(a) and (c) of the Internal Revenue <br/>
<a id="pl.126.11"></a><var>126.11</var>Code, the date December 31, 1956, shall be substituted for June 22, 1954.<br/>
<a id="pl.126.12"></a><var>126.12</var>(j) (i) The basis of property shall be increased by the amount of intangible drilling <br/>
<a id="pl.126.13"></a><var>126.13</var>costs not previously allowed due to differences between this chapter and the Internal <br/>
<a id="pl.126.14"></a><var>126.14</var>Revenue Code.<br/>
<a id="pl.126.15"></a><var>126.15</var>(k) (j) The adjusted basis of any corporate partner's interest in a partnership is <br/>
<a id="pl.126.16"></a><var>126.16</var>the same as the adjusted basis for federal income tax purposes modified as required to <br/>
<a id="pl.126.17"></a><var>126.17</var>reflect the basis modifications set forth in paragraphs (b) to (j) (i). The adjusted basis <br/>
<a id="pl.126.18"></a><var>126.18</var>of a partnership in which the partner is an individual, estate, or trust is the same as the <br/>
<a id="pl.126.19"></a><var>126.19</var>adjusted basis for federal income tax purposes modified as required to reflect the basis <br/>
<a id="pl.126.20"></a><var>126.20</var>modifications set forth in paragraphs (e) and (f) and (g).<br/>
<a id="pl.126.21"></a><var>126.21</var>(l) (k) The modifications contained in paragraphs (b) to (j) (i) also apply to the basis <br/>
<a id="pl.126.22"></a><var>126.22</var>of property that is determined by reference to the basis of the same property in the hands <br/>
<a id="pl.126.23"></a><var>126.23</var>of a different taxpayer or by reference to the basis of different property.<br/>
<a id="pl.126.24"></a><var>126.24</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.126.25"></a><var>126.25</var>December 31, 2013.<br/>
<br/>
<a id="bill.7.62.0"></a><a id="pl.126.26"></a><var>126.26</var>    Sec. 62. Minnesota Statutes 2012, section 290.01, subdivision 29, is amended to read:<br/>
<a id="pl.126.27"></a><var>126.27</var>    Subd. 29. <b>Taxable income.</b> The term "taxable income" means:<br/>
<a id="pl.126.28"></a><var>126.28</var>(1) for individuals, estates, and trusts, the same as taxable net income;<br/>
<a id="pl.126.29"></a><var>126.29</var>(2) for corporations, the taxable net income less<br/>
<a id="pl.126.30"></a><var>126.30</var>(i) the net operating loss deduction under section 
         <statute_ref>290.095</statute_ref>;<br/>
<a id="pl.126.31"></a><var>126.31</var>(ii) the dividends received deduction under section 
         <statute_ref>290.21, subdivision 4</statute_ref>; and<br/>
<a id="pl.126.32"></a><var>126.32</var>(iii) the exemption for operating in a job opportunity building zone under section <br/>
<statute_ref><a id="pl.126.33"></a><var>126.33</var>469.317
         </statute_ref>; and.<br/>
<a id="pl.126.34"></a><var>126.34</var>(iv) the exemption for operating in a biotechnology and health sciences industry <br/>
<a id="pl.126.35"></a><var>126.35</var>zone under section 
<statute_ref>469.337</statute_ref>.<br/>
<a id="pl.127.1"></a><var>127.1</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.127.2"></a><var>127.2</var>December 31, 2015.<br/>
<br/>
<a id="bill.7.63.0"></a><a id="pl.127.3"></a><var>127.3</var>    Sec. 63. Minnesota Statutes 2012, section 290.015, subdivision 1, is amended to read:<br/>
<a id="pl.127.4"></a><var>127.4</var>    Subdivision 1. <b>General rule.</b> (a) Except as provided in subdivision 3, a person <br/>
<a id="pl.127.5"></a><var>127.5</var>that conducts a trade or business that has a place of business in this state, regularly has <br/>
<a id="pl.127.6"></a><var>127.6</var>employees or independent contractors conducting business activities on its behalf in this <br/>
<a id="pl.127.7"></a><var>127.7</var>state, or owns or leases real property that is located in this state or tangible personal <br/>
<a id="pl.127.8"></a><var>127.8</var>property, including but not limited to mobile property, that is present in this state is subject <br/>
<a id="pl.127.9"></a><var>127.9</var>to the taxes imposed by this chapter.<br/>
<a id="pl.127.10"></a><var>127.10</var>(b) Except as provided in subdivision 3, a person that conducts a trade or business <br/>
<a id="pl.127.11"></a><var>127.11</var>not described in paragraph (a) is subject to the taxes imposed by this chapter if the trade <br/>
<a id="pl.127.12"></a><var>127.12</var>or business obtains or regularly solicits business from within this state, without regard <br/>
<a id="pl.127.13"></a><var>127.13</var>to physical presence in this state.<br/>
<a id="pl.127.14"></a><var>127.14</var>(c) For purposes of paragraph (b), business from within this state includes, but is <br/>
<a id="pl.127.15"></a><var>127.15</var>not limited to:<br/>
<a id="pl.127.16"></a><var>127.16</var>(1) sales of products or services of any kind or nature to customers in this state who <br/>
<a id="pl.127.17"></a><var>127.17</var>receive the product or service in this state;<br/>
<a id="pl.127.18"></a><var>127.18</var>(2) sales of services which are performed from outside this state but the services <br/>
<a id="pl.127.19"></a><var>127.19</var>are received in this state;<br/>
<a id="pl.127.20"></a><var>127.20</var>(3) transactions with customers in this state that involve intangible property and <br/>
<a id="pl.127.21"></a><var>127.21</var>result in receipts attributed to this state as provided in section 
         <statute_ref>290.191, subdivision 5</statute_ref> or 6;<br/>
<a id="pl.127.22"></a><var>127.22</var>(4) leases of tangible personal property that is located in this state as defined in <br/>
<a id="pl.127.23"></a><var>127.23</var>section 
         <statute_ref>290.191, subdivision 5</statute_ref>, paragraph (g), or 6, paragraph (e); and<br/>
<a id="pl.127.24"></a><var>127.24</var>(5) sales and leases of real property located in this state.<br/>
<a id="pl.127.25"></a><var>127.25</var>(d) For purposes of paragraph (b), solicitation includes, but is not limited to:<br/>
<a id="pl.127.26"></a><var>127.26</var>(1) the distribution, by mail or otherwise, without regard to the state from which such <br/>
<a id="pl.127.27"></a><var>127.27</var>distribution originated or in which the materials were prepared, of catalogs, periodicals, <br/>
<a id="pl.127.28"></a><var>127.28</var>advertising flyers, or other written solicitations of business to customers in this state;<br/>
<a id="pl.127.29"></a><var>127.29</var>(2) display of advertisements on billboards or other outdoor advertising in this state;<br/>
<a id="pl.127.30"></a><var>127.30</var>(3) advertisements in newspapers published in this state;<br/>
<a id="pl.127.31"></a><var>127.31</var>(4) advertisements in trade journals or other periodicals, the circulation of which is <br/>
<a id="pl.127.32"></a><var>127.32</var>primarily within this state;<br/>
<a id="pl.127.33"></a><var>127.33</var>(5) advertisements in a Minnesota edition of a national or regional publication or a <br/>
<a id="pl.127.34"></a><var>127.34</var>limited regional edition of which this state is included of a broader regional or national <br/>
<a id="pl.128.1"></a><var>128.1</var>publication which are not placed in other geographically defined editions of the same issue <br/>
<a id="pl.128.2"></a><var>128.2</var>of the same publication;<br/>
<a id="pl.128.3"></a><var>128.3</var>(6) advertisements in regional or national publications in an edition which is not <br/>
<a id="pl.128.4"></a><var>128.4</var>by its contents geographically targeted to Minnesota, but which is sold over the counter <br/>
<a id="pl.128.5"></a><var>128.5</var>in Minnesota or by subscription to Minnesota residents;<br/>
<a id="pl.128.6"></a><var>128.6</var>(7) advertisements broadcast on a radio or television station located in Minnesota; or<br/>
<a id="pl.128.7"></a><var>128.7</var>(8) any other solicitation by telegraph, telephone, computer database, cable, optic, <br/>
<a id="pl.128.8"></a><var>128.8</var>microwave, or other communication system.<br/>
<a id="pl.128.9"></a><var>128.9</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.64.0"></a><a id="pl.128.10"></a><var>128.10</var>    Sec. 64. Minnesota Statutes 2012, section 290.07, subdivision 1, is amended to read:<br/>
<a id="pl.128.11"></a><var>128.11</var>    Subdivision 1. <b>Annual accounting period.</b> Net income and taxable net income <br/>
<a id="pl.128.12"></a><var>128.12</var>shall be computed upon the basis of the taxpayer's annual accounting period. If a taxpayer <br/>
<a id="pl.128.13"></a><var>128.13</var>has no annual accounting period, or has one other than a fiscal year, as heretofore defined,<br/>
<a id="pl.128.14"></a><var>128.14</var> the net income and taxable net income shall be computed on the basis of the calendar year. <br/>
<a id="pl.128.15"></a><var>128.15</var>Taxpayers shall employ the same accounting period on which they report, or would be <br/>
<a id="pl.128.16"></a><var>128.16</var>required to report, their net income under the Internal Revenue Code. The commissioner <br/>
<a id="pl.128.17"></a><var>128.17</var>shall provide by rule for the determination of the accounting period for taxpayers who file <br/>
<a id="pl.128.18"></a><var>128.18</var>a combined report under section 
         <statute_ref>290.17, subdivision 4</statute_ref>, when members of the group use <br/>
<a id="pl.128.19"></a><var>128.19</var>different accounting periods for federal income tax purposes. Unless the taxpayer changes <br/>
<a id="pl.128.20"></a><var>128.20</var>its accounting period for federal purposes, the due date of the return is not changed.<br/>
<a id="pl.128.21"></a><var>128.21</var>    A taxpayer may change accounting periods only with the consent of the <br/>
<a id="pl.128.22"></a><var>128.22</var>commissioner. In case of any such change, the taxpayer shall pay a tax for the period <br/>
<a id="pl.128.23"></a><var>128.23</var>not included in either the taxpayer's former or newly adopted taxable year, computed as <br/>
<a id="pl.128.24"></a><var>128.24</var>provided in section 
<statute_ref>290.32</statute_ref>.<br/>
<a id="pl.128.25"></a><var>128.25</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.128.26"></a><var>128.26</var>December 31, 2013.<br/>
<br/>
<a id="bill.7.65.0"></a><a id="pl.128.27"></a><var>128.27</var>    Sec. 65. Minnesota Statutes 2012, section 290.07, subdivision 2, is amended to read:<br/>
<a id="pl.128.28"></a><var>128.28</var>    Subd. 2. <b>Accounting methods.</b> Except as specifically provided to the contrary by <br/>
<a id="pl.128.29"></a><var>128.29</var>this chapter, net income and taxable net income shall be computed in accordance with <br/>
<a id="pl.128.30"></a><var>128.30</var>the method of accounting regularly employed in keeping the taxpayer's books. If no such <br/>
<a id="pl.128.31"></a><var>128.31</var>accounting system has been regularly employed, or if that employed does not clearly or <br/>
<a id="pl.128.32"></a><var>128.32</var>fairly reflect income or the income taxable under this chapter, the computation shall be <br/>
<a id="pl.129.1"></a><var>129.1</var>made in accordance with such method as in the opinion of the commissioner does clearly <br/>
<a id="pl.129.2"></a><var>129.2</var>and fairly reflect income and the income taxable under this chapter.<br/>
<a id="pl.129.3"></a><var>129.3</var>Except as otherwise expressly provided in this chapter, a taxpayer who changes the <br/>
<a id="pl.129.4"></a><var>129.4</var>method of accounting for regularly computing the taxpayer's income in keeping books <br/>
<a id="pl.129.5"></a><var>129.5</var>shall, before computing net income and taxable net income under the new method, secure <br/>
<a id="pl.129.6"></a><var>129.6</var>the consent of the commissioner.<br/>
<a id="pl.129.7"></a><var>129.7</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.129.8"></a><var>129.8</var>December 31, 2013.<br/>
<br/>
<a id="bill.7.66.0"></a><a id="pl.129.9"></a><var>129.9</var>    Sec. 66. Minnesota Statutes 2013 Supplement, section 290.0921, subdivision 3, <br/>
<a id="pl.129.10"></a><var>129.10</var>is amended to read:<br/>
<a id="pl.129.11"></a><var>129.11</var>    Subd. 3. <b>Alternative minimum taxable income.</b> "Alternative minimum taxable <br/>
<a id="pl.129.12"></a><var>129.12</var>income" is Minnesota net income as defined in section 
         <statute_ref>290.01, subdivision 19</statute_ref>, and <br/>
<a id="pl.129.13"></a><var>129.13</var>includes the adjustments and tax preference items in sections 56, 57, 58, and 59(d), (e), <br/>
<a id="pl.129.14"></a><var>129.14</var>(f), and (h) of the Internal Revenue Code. If a corporation files a separate company <br/>
<a id="pl.129.15"></a><var>129.15</var>Minnesota tax return, the minimum tax must be computed on a separate company basis. <br/>
<a id="pl.129.16"></a><var>129.16</var>If a corporation is part of a tax group filing a unitary return, the minimum tax must be <br/>
<a id="pl.129.17"></a><var>129.17</var>computed on a unitary basis. The following adjustments must be made.<br/>
<a id="pl.129.18"></a><var>129.18</var>(1) For purposes of the depreciation adjustments under section 56(a)(1) and <br/>
<a id="pl.129.19"></a><var>129.19</var>56(g)(4)(A) of the Internal Revenue Code, the basis for depreciable property placed in <br/>
<a id="pl.129.20"></a><var>129.20</var>service in a taxable year beginning before January 1, 1990, is the adjusted basis for federal <br/>
<a id="pl.129.21"></a><var>129.21</var>income tax purposes, including any modification made in a taxable year under section <br/>
<a id="pl.129.22"></a><var>129.22</var><statute_ref>290.01, subdivision 19e</statute_ref>, or Minnesota Statutes 1986, section 
<statute_ref>290.09, subdivision 7</statute_ref>, <br/>
<a id="pl.129.23"></a><var>129.23</var>paragraph (c).<br/>
<a id="pl.129.24"></a><var>129.24</var>For taxable years beginning after December 31, 2000, the amount of any remaining <br/>
<a id="pl.129.25"></a><var>129.25</var>modification made under section 
<statute_ref>290.01, subdivision 19e</statute_ref>, or Minnesota Statutes 1986, <br/>
<a id="pl.129.26"></a><var>129.26</var>section 
<statute_ref>290.09, subdivision 7</statute_ref>, paragraph (c), not previously deducted is a depreciation <br/>
<a id="pl.129.27"></a><var>129.27</var>allowance in the first taxable year after December 31, 2000.<br/>
<a id="pl.129.28"></a><var>129.28</var>(2) (1) The portion of the depreciation deduction allowed for federal income tax <br/>
<a id="pl.129.29"></a><var>129.29</var>purposes under section 168(k) of the Internal Revenue Code that is required as an <br/>
<a id="pl.129.30"></a><var>129.30</var>addition under section 
         <statute_ref>290.01, subdivision 19c</statute_ref>, clause (12), is disallowed in determining <br/>
<a id="pl.129.31"></a><var>129.31</var>alternative minimum taxable income.<br/>
<a id="pl.129.32"></a><var>129.32</var>(3) (2) The subtraction for depreciation allowed under section 
         <statute_ref>290.01, subdivision <br/>
<a id="pl.129.33"></a><var>129.33</var>19d
         </statute_ref>, clause (15) (14), is allowed as a depreciation deduction in determining alternative <br/>
<a id="pl.129.34"></a><var>129.34</var>minimum taxable income.<br/>
<a id="pl.130.1"></a><var>130.1</var>(4) (3) The alternative tax net operating loss deduction under sections 56(a)(4) and <br/>
<a id="pl.130.2"></a><var>130.2</var>56(d) of the Internal Revenue Code does not apply.<br/>
<a id="pl.130.3"></a><var>130.3</var>(5) (4) The special rule for certain dividends under section 56(g)(4)(C)(ii) of the <br/>
<a id="pl.130.4"></a><var>130.4</var>Internal Revenue Code does not apply.<br/>
<a id="pl.130.5"></a><var>130.5</var>(6) (5) The tax preference for depletion under section 57(a)(1) of the Internal <br/>
<a id="pl.130.6"></a><var>130.6</var>Revenue Code does not apply.<br/>
<a id="pl.130.7"></a><var>130.7</var>(7) The tax preference for intangible drilling costs under section 57(a)(2) of the <br/>
<a id="pl.130.8"></a><var>130.8</var>Internal Revenue Code must be calculated without regard to subparagraph (E) and the <br/>
<a id="pl.130.9"></a><var>130.9</var>subtraction under section 
<statute_ref>290.01, subdivision 19d</statute_ref>, clause (4).<br/>
<a id="pl.130.10"></a><var>130.10</var>(8) (6) The tax preference for tax exempt interest under section 57(a)(5) of the <br/>
<a id="pl.130.11"></a><var>130.11</var>Internal Revenue Code does not apply.<br/>
<a id="pl.130.12"></a><var>130.12</var>(9) (7) The tax preference for charitable contributions of appreciated property under <br/>
<a id="pl.130.13"></a><var>130.13</var>section 57(a)(6) of the Internal Revenue Code does not apply.<br/>
<a id="pl.130.14"></a><var>130.14</var>(10) For purposes of calculating the tax preference for accelerated depreciation or <br/>
<a id="pl.130.15"></a><var>130.15</var>amortization on certain property placed in service before January 1, 1987, under section <br/>
<a id="pl.130.16"></a><var>130.16</var>57(a)(7) of the Internal Revenue Code, the deduction allowable for the taxable year is the <br/>
<a id="pl.130.17"></a><var>130.17</var>deduction allowed under section 
<statute_ref>290.01, subdivision 19e</statute_ref>.<br/>
<a id="pl.130.18"></a><var>130.18</var>For taxable years beginning after December 31, 2000, the amount of any remaining <br/>
<a id="pl.130.19"></a><var>130.19</var>modification made under section 
<statute_ref>290.01, subdivision 19e</statute_ref>, not previously deducted is a <br/>
<a id="pl.130.20"></a><var>130.20</var>depreciation or amortization allowance in the first taxable year after December 31, 2004.<br/>
<a id="pl.130.21"></a><var>130.21</var>(11) (8) For purposes of calculating the adjustment for adjusted current earnings <br/>
<a id="pl.130.22"></a><var>130.22</var>in section 56(g) of the Internal Revenue Code, the term "alternative minimum taxable <br/>
<a id="pl.130.23"></a><var>130.23</var>income" as it is used in section 56(g) of the Internal Revenue Code, means alternative <br/>
<a id="pl.130.24"></a><var>130.24</var>minimum taxable income as defined in this subdivision, determined without regard to the <br/>
<a id="pl.130.25"></a><var>130.25</var>adjustment for adjusted current earnings in section 56(g) of the Internal Revenue Code.<br/>
<a id="pl.130.26"></a><var>130.26</var>(12) (9) For purposes of determining the amount of adjusted current earnings under <br/>
<a id="pl.130.27"></a><var>130.27</var>section 56(g)(3) of the Internal Revenue Code, no adjustment shall be made under section <br/>
<a id="pl.130.28"></a><var>130.28</var>56(g)(4) of the Internal Revenue Code with respect to (i) the amount of foreign dividend <br/>
<a id="pl.130.29"></a><var>130.29</var>gross-up subtracted as provided in section 
         <statute_ref>290.01, subdivision 19d</statute_ref>, clause (1), or (ii) the <br/>
<a id="pl.130.30"></a><var>130.30</var>amount of refunds of income, excise, or franchise taxes subtracted as provided in section <br/>
<statute_ref><a id="pl.130.31"></a><var>130.31</var>290.01, subdivision 19d
         </statute_ref>, clause (9).<br/>
<a id="pl.130.32"></a><var>130.32</var>(13) (10) Alternative minimum taxable income excludes the income from operating <br/>
<a id="pl.130.33"></a><var>130.33</var>in a job opportunity building zone as provided under section 
         <statute_ref>469.317</statute_ref>.<br/>
<a id="pl.130.34"></a><var>130.34</var>(14) Alternative minimum taxable income excludes the income from operating in a <br/>
<a id="pl.130.35"></a><var>130.35</var>biotechnology and health sciences industry zone as provided under section 
<statute_ref>469.337</statute_ref>.<br/>
<a id="pl.131.1"></a><var>131.1</var>Items of tax preference must not be reduced below zero as a result of the <br/>
<a id="pl.131.2"></a><var>131.2</var>modifications in this subdivision.<br/>
<a id="pl.131.3"></a><var>131.3</var><b>EFFECTIVE DATE.</b>The amendments striking clauses (1), (7), and (10), and <br/>
<a id="pl.131.4"></a><var>131.4</var>the renumbering of clauses are effective for taxable years beginning after December <br/>
<a id="pl.131.5"></a><var>131.5</var>31, 2013. The amendment striking clause (14) is effective for taxable years beginning <br/>
<a id="pl.131.6"></a><var>131.6</var>after December 31, 2015.<br/>
<br/>
<a id="bill.7.67.0"></a><a id="pl.131.7"></a><var>131.7</var>    Sec. 67. Minnesota Statutes 2012, section 290.0922, subdivision 3, is amended to read:<br/>
<a id="pl.131.8"></a><var>131.8</var>    Subd. 3. <b>Definitions.</b> (a) "Minnesota sales or receipts" means the total sales <br/>
<a id="pl.131.9"></a><var>131.9</var>apportioned to Minnesota pursuant to section 
         <statute_ref>290.191, subdivision 5</statute_ref>, the total receipts <br/>
<a id="pl.131.10"></a><var>131.10</var>attributed to Minnesota pursuant to section 
         <statute_ref>290.191</statute_ref>, subdivisions 6 to 8, and/or the <br/>
<a id="pl.131.11"></a><var>131.11</var>total sales or receipts apportioned or attributed to Minnesota pursuant to any other <br/>
<a id="pl.131.12"></a><var>131.12</var>apportionment formula applicable to the taxpayer.<br/>
<a id="pl.131.13"></a><var>131.13</var>(b) "Minnesota property" means total Minnesota tangible property as provided in <br/>
<a id="pl.131.14"></a><var>131.14</var>section 
         <statute_ref>290.191</statute_ref>, subdivisions 9 to 11, any other tangible property located in Minnesota, <br/>
<a id="pl.131.15"></a><var>131.15</var>but does not include: (1) the property of a qualified business as defined under section <br/>
<statute_ref><a id="pl.131.16"></a><var>131.16</var>469.310, subdivision 11
         </statute_ref>, that is located in a job opportunity building zone designated <br/>
<a id="pl.131.17"></a><var>131.17</var>under section 
         <statute_ref>469.314 </statute_ref>and (2) property of a qualified business located in a biotechnology <br/>
<a id="pl.131.18"></a><var>131.18</var>and health sciences industry zone designated under section 
<statute_ref>469.334</statute_ref>. Intangible property <br/>
<a id="pl.131.19"></a><var>131.19</var>shall not be included in Minnesota property for purposes of this section. Taxpayers who <br/>
<a id="pl.131.20"></a><var>131.20</var>do not utilize tangible property to apportion income shall nevertheless include Minnesota <br/>
<a id="pl.131.21"></a><var>131.21</var>property for purposes of this section. On a return for a short taxable year, the amount of <br/>
<a id="pl.131.22"></a><var>131.22</var>Minnesota property owned, as determined under section 
         <statute_ref>290.191</statute_ref>, shall be included in <br/>
<a id="pl.131.23"></a><var>131.23</var>Minnesota property based on a fraction in which the numerator is the number of days in <br/>
<a id="pl.131.24"></a><var>131.24</var>the short taxable year and the denominator is 365.<br/>
<a id="pl.131.25"></a><var>131.25</var>(c) "Minnesota payrolls" means total Minnesota payrolls as provided in section <br/>
<statute_ref><a id="pl.131.26"></a><var>131.26</var>290.191, subdivision 12
         </statute_ref>, but does not include: (1) the job opportunity building zone payroll <br/>
<a id="pl.131.27"></a><var>131.27</var>under section 
         <statute_ref>469.310, subdivision 8</statute_ref>, of a qualified business as defined under section <br/>
<statute_ref><a id="pl.131.28"></a><var>131.28</var>469.310, subdivision 11
         </statute_ref>, and (2) biotechnology and health sciences industry zone payrolls <br/>
<a id="pl.131.29"></a><var>131.29</var>under section 
<statute_ref>469.330, subdivision 8</statute_ref>. Taxpayers who do not utilize payrolls to apportion <br/>
<a id="pl.131.30"></a><var>131.30</var>income shall nevertheless include Minnesota payrolls for purposes of this section.<br/>
<a id="pl.131.31"></a><var>131.31</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.131.32"></a><var>131.32</var>December 31, 2015.<br/>
<br/>
<a id="bill.7.68.0"></a><a id="pl.131.33"></a><var>131.33</var>    Sec. 68. Minnesota Statutes 2012, section 290.095, subdivision 3, is amended to read:<br/>
<a id="pl.132.1"></a><var>132.1</var>    Subd. 3. <b>Carryover.</b> (a) A net operating loss incurred in a during the taxable year: <br/>
<a id="pl.132.2"></a><var>132.2</var>(i) beginning after December 31, 1986, shall be a net operating loss carryover to each of <br/>
<a id="pl.132.3"></a><var>132.3</var>the 15 taxable years following the taxable year of such loss; (ii) beginning before January <br/>
<a id="pl.132.4"></a><var>132.4</var>1, 1987, shall be a net operating loss carryover to each of the five taxable years following <br/>
<a id="pl.132.5"></a><var>132.5</var>the taxable year of such loss subject to the provisions of Minnesota Statutes 1986, section <br/>
<a id="pl.132.6"></a><var>132.6</var><statute_ref>290.095</statute_ref>; and (iii) beginning before January 1, 1987, shall be a net operating loss carryback <br/>
<a id="pl.132.7"></a><var>132.7</var>to each of the three taxable years preceding the loss year subject to the provisions of <br/>
<a id="pl.132.8"></a><var>132.8</var>Minnesota Statutes 1986, section 
<statute_ref>290.095</statute_ref>.<br/>
<a id="pl.132.9"></a><var>132.9</var>(b) The entire amount of the net operating loss for any taxable year shall be carried to <br/>
<a id="pl.132.10"></a><var>132.10</var>the earliest of the taxable years to which such loss may be carried. The portion of such loss <br/>
<a id="pl.132.11"></a><var>132.11</var>which shall be carried to each of the other taxable years shall be the excess, if any, of the <br/>
<a id="pl.132.12"></a><var>132.12</var>amount of such loss over the sum of the taxable net income, adjusted by the modifications <br/>
<a id="pl.132.13"></a><var>132.13</var>specified in subdivision 4, for each of the taxable years to which such loss may be carried.<br/>
<a id="pl.132.14"></a><var>132.14</var>(c) Where a corporation apportions its income under the provisions of section <br/>
<statute_ref><a id="pl.132.15"></a><var>132.15</var>290.191
         </statute_ref>, the net operating loss deduction incurred in any taxable year shall be allowed <br/>
<a id="pl.132.16"></a><var>132.16</var>to the extent of the apportionment ratio of the loss year.<br/>
<a id="pl.132.17"></a><var>132.17</var>(d) The provisions of sections 381, 382, and 384 of the Internal Revenue Code apply <br/>
<a id="pl.132.18"></a><var>132.18</var>to carryovers in certain corporate acquisitions and special limitations on net operating loss <br/>
<a id="pl.132.19"></a><var>132.19</var>carryovers. The limitation amount determined under section 382 shall be applied to net <br/>
<a id="pl.132.20"></a><var>132.20</var>income, before apportionment, in each post change year to which a loss is carried.<br/>
<a id="pl.132.21"></a><var>132.21</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.132.22"></a><var>132.22</var>December 31, 2013.<br/>
<br/>
<a id="bill.7.69.0"></a><a id="pl.132.23"></a><var>132.23</var>    Sec. 69. Minnesota Statutes 2013 Supplement, section 290.191, subdivision 5, is <br/>
<a id="pl.132.24"></a><var>132.24</var>amended to read:<br/>
<a id="pl.132.25"></a><var>132.25</var>    Subd. 5. <b>Determination of sales factor.</b> For purposes of this section, the following <br/>
<a id="pl.132.26"></a><var>132.26</var>rules apply in determining the sales factor.<br/>
<a id="pl.132.27"></a><var>132.27</var>    (a) The sales factor includes all sales, gross earnings, or receipts received in the <br/>
<a id="pl.132.28"></a><var>132.28</var>ordinary course of the business, except that the following types of income are not included <br/>
<a id="pl.132.29"></a><var>132.29</var>in the sales factor:<br/>
<a id="pl.132.30"></a><var>132.30</var>    (1) interest;<br/>
<a id="pl.132.31"></a><var>132.31</var>    (2) dividends;<br/>
<a id="pl.132.32"></a><var>132.32</var>    (3) sales of capital assets as defined in section 1221 of the Internal Revenue Code;<br/>
<a id="pl.132.33"></a><var>132.33</var>    (4) sales of property used in the trade or business, except sales of leased property of <br/>
<a id="pl.132.34"></a><var>132.34</var>a type which is regularly sold as well as leased; and<br/>
<a id="pl.133.1"></a><var>133.1</var>    (5) sales of debt instruments as defined in section 1275(a)(1) of the Internal Revenue <br/>
<a id="pl.133.2"></a><var>133.2</var>Code or sales of stock.<br/>
<a id="pl.133.3"></a><var>133.3</var>    (b) Sales of tangible personal property are made within this state if the property is <br/>
<a id="pl.133.4"></a><var>133.4</var>received by a purchaser at a point within this state, and the taxpayer is taxable in this state,<br/>
<a id="pl.133.5"></a><var>133.5</var> regardless of the f.o.b. point, other conditions of the sale, or the ultimate destination <br/>
<a id="pl.133.6"></a><var>133.6</var>of the property.<br/>
<a id="pl.133.7"></a><var>133.7</var>    (c) Tangible personal property delivered to a common or contract carrier or foreign <br/>
<a id="pl.133.8"></a><var>133.8</var>vessel for delivery to a purchaser in another state or nation is a sale in that state or nation, <br/>
<a id="pl.133.9"></a><var>133.9</var>regardless of f.o.b. point or other conditions of the sale.<br/>
<a id="pl.133.10"></a><var>133.10</var>    (d) Notwithstanding paragraphs (b) and (c), when intoxicating liquor, wine, <br/>
<a id="pl.133.11"></a><var>133.11</var>fermented malt beverages, cigarettes, or tobacco products are sold to a purchaser who is <br/>
<a id="pl.133.12"></a><var>133.12</var>licensed by a state or political subdivision to resell this property only within the state of <br/>
<a id="pl.133.13"></a><var>133.13</var>ultimate destination, the sale is made in that state.<br/>
<a id="pl.133.14"></a><var>133.14</var>    (e) Sales made by or through a corporation that is qualified as a domestic <br/>
<a id="pl.133.15"></a><var>133.15</var>international sales corporation under section 992 of the Internal Revenue Code are not <br/>
<a id="pl.133.16"></a><var>133.16</var>considered to have been made within this state.<br/>
<a id="pl.133.17"></a><var>133.17</var>    (f) Sales, rents, royalties, and other income in connection with real property is <br/>
<a id="pl.133.18"></a><var>133.18</var>attributed to the state in which the property is located.<br/>
<a id="pl.133.19"></a><var>133.19</var>    (g) Receipts from the lease or rental of tangible personal property, including finance <br/>
<a id="pl.133.20"></a><var>133.20</var>leases and true leases, must be attributed to this state if the property is located in this <br/>
<a id="pl.133.21"></a><var>133.21</var>state and to other states if the property is not located in this state. Receipts from the <br/>
<a id="pl.133.22"></a><var>133.22</var>lease or rental of moving property including, but not limited to, motor vehicles, rolling <br/>
<a id="pl.133.23"></a><var>133.23</var>stock, aircraft, vessels, or mobile equipment are included in the numerator of the receipts <br/>
<a id="pl.133.24"></a><var>133.24</var>factor to the extent that the property is used in this state. The extent of the use of moving <br/>
<a id="pl.133.25"></a><var>133.25</var>property is determined as follows:<br/>
<a id="pl.133.26"></a><var>133.26</var>    (1) A motor vehicle is used wholly in the state in which it is registered.<br/>
<a id="pl.133.27"></a><var>133.27</var>    (2) The extent that rolling stock is used in this state is determined by multiplying <br/>
<a id="pl.133.28"></a><var>133.28</var>the receipts from the lease or rental of the rolling stock by a fraction, the numerator of <br/>
<a id="pl.133.29"></a><var>133.29</var>which is the miles traveled within this state by the leased or rented rolling stock and the <br/>
<a id="pl.133.30"></a><var>133.30</var>denominator of which is the total miles traveled by the leased or rented rolling stock.<br/>
<a id="pl.133.31"></a><var>133.31</var>    (3) The extent that an aircraft is used in this state is determined by multiplying the <br/>
<a id="pl.133.32"></a><var>133.32</var>receipts from the lease or rental of the aircraft by a fraction, the numerator of which is <br/>
<a id="pl.133.33"></a><var>133.33</var>the number of landings of the aircraft in this state and the denominator of which is the <br/>
<a id="pl.133.34"></a><var>133.34</var>total number of landings of the aircraft.<br/>
<a id="pl.133.35"></a><var>133.35</var>    (4) The extent that a vessel, mobile equipment, or other mobile property is used in <br/>
<a id="pl.133.36"></a><var>133.36</var>the state is determined by multiplying the receipts from the lease or rental of the property <br/>
<a id="pl.134.1"></a><var>134.1</var>by a fraction, the numerator of which is the number of days during the taxable year the <br/>
<a id="pl.134.2"></a><var>134.2</var>property was in this state and the denominator of which is the total days in the taxable year.<br/>
<a id="pl.134.3"></a><var>134.3</var>    (h) Royalties and other income received for the use of or for the privilege of using <br/>
<a id="pl.134.4"></a><var>134.4</var>intangible property, including patents, know-how, formulas, designs, processes, patterns, <br/>
<a id="pl.134.5"></a><var>134.5</var>copyrights, trade names, service names, franchises, licenses, contracts, customer lists, or <br/>
<a id="pl.134.6"></a><var>134.6</var>similar items, must be attributed to the state in which the property is used by the purchaser. <br/>
<a id="pl.134.7"></a><var>134.7</var>If the property is used in more than one state, the royalties or other income must be <br/>
<a id="pl.134.8"></a><var>134.8</var>apportioned to this state pro rata according to the portion of use in this state. If the portion <br/>
<a id="pl.134.9"></a><var>134.9</var>of use in this state cannot be determined, the royalties or other income must be excluded <br/>
<a id="pl.134.10"></a><var>134.10</var>from both the numerator and the denominator. Intangible property is used in this state if <br/>
<a id="pl.134.11"></a><var>134.11</var>the purchaser uses the intangible property or the rights therein in the regular course of its <br/>
<a id="pl.134.12"></a><var>134.12</var>business operations in this state, regardless of the location of the purchaser's customers.<br/>
<a id="pl.134.13"></a><var>134.13</var>    (i) Sales of intangible property are made within the state in which the property is <br/>
<a id="pl.134.14"></a><var>134.14</var>used by the purchaser. If the property is used in more than one state, the sales must be <br/>
<a id="pl.134.15"></a><var>134.15</var>apportioned to this state pro rata according to the portion of use in this state. If the <br/>
<a id="pl.134.16"></a><var>134.16</var>portion of use in this state cannot be determined, the sale must be excluded from both the <br/>
<a id="pl.134.17"></a><var>134.17</var>numerator and the denominator of the sales factor. Intangible property is used in this <br/>
<a id="pl.134.18"></a><var>134.18</var>state if the purchaser used the intangible property in the regular course of its business <br/>
<a id="pl.134.19"></a><var>134.19</var>operations in this state.<br/>
<a id="pl.134.20"></a><var>134.20</var>    (j) Receipts from the performance of services must be attributed to the state where <br/>
<a id="pl.134.21"></a><var>134.21</var>the services are received. For the purposes of this section, receipts from the performance <br/>
<a id="pl.134.22"></a><var>134.22</var>of services provided to a corporation, partnership, or trust may only be attributed to a state <br/>
<a id="pl.134.23"></a><var>134.23</var>where it has a fixed place of doing business. If the state where the services are received is <br/>
<a id="pl.134.24"></a><var>134.24</var>not readily determinable or is a state where the corporation, partnership, or trust receiving <br/>
<a id="pl.134.25"></a><var>134.25</var>the service does not have a fixed place of doing business, the services shall be deemed <br/>
<a id="pl.134.26"></a><var>134.26</var>to be received at the location of the office of the customer from which the services were <br/>
<a id="pl.134.27"></a><var>134.27</var>ordered in the regular course of the customer's trade or business. If the ordering office <br/>
<a id="pl.134.28"></a><var>134.28</var>cannot be determined, the services shall be deemed to be received at the office of the <br/>
<a id="pl.134.29"></a><var>134.29</var>customer to which the services are billed.<br/>
<a id="pl.134.30"></a><var>134.30</var>    (k) For the purposes of this subdivision and subdivision 6, paragraph (l), receipts <br/>
<a id="pl.134.31"></a><var>134.31</var>from management, distribution, or administrative services performed by a corporation <br/>
<a id="pl.134.32"></a><var>134.32</var>or trust for a fund of a corporation or trust regulated under United States Code, title 15, <br/>
<a id="pl.134.33"></a><var>134.33</var>sections 80a-1 through 80a-64, must be attributed to the state where the shareholder of <br/>
<a id="pl.134.34"></a><var>134.34</var>the fund resides. Under this paragraph, receipts for services attributed to shareholders are <br/>
<a id="pl.134.35"></a><var>134.35</var>determined on the basis of the ratio of: (1) the average of the outstanding shares in the <br/>
<a id="pl.134.36"></a><var>134.36</var>fund owned by shareholders residing within Minnesota at the beginning and end of each <br/>
<a id="pl.135.1"></a><var>135.1</var>year; and (2) the average of the total number of outstanding shares in the fund at the <br/>
<a id="pl.135.2"></a><var>135.2</var>beginning and end of each year. Residence of the shareholder, in the case of an individual, <br/>
<a id="pl.135.3"></a><var>135.3</var>is determined by the mailing address furnished by the shareholder to the fund. Residence <br/>
<a id="pl.135.4"></a><var>135.4</var>of the shareholder, when the shares are held by an insurance company as a depositor for <br/>
<a id="pl.135.5"></a><var>135.5</var>the insurance company policyholders, is the mailing address of the policyholders. In <br/>
<a id="pl.135.6"></a><var>135.6</var>the case of an insurance company holding the shares as a depositor for the insurance <br/>
<a id="pl.135.7"></a><var>135.7</var>company policyholders, if the mailing address of the policyholders cannot be determined <br/>
<a id="pl.135.8"></a><var>135.8</var>by the taxpayer, the receipts must be excluded from both the numerator and denominator. <br/>
<a id="pl.135.9"></a><var>135.9</var>Residence of other shareholders is the mailing address of the shareholder.<br/>
<a id="pl.135.10"></a><var>135.10</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.70.0"></a><a id="pl.135.11"></a><var>135.11</var>    Sec. 70. Minnesota Statutes 2012, section 290.9728, subdivision 2, is amended to read:<br/>
<a id="pl.135.12"></a><var>135.12</var>    Subd. 2. <b>Taxable income.</b> For purposes of this section, taxable income means <br/>
<a id="pl.135.13"></a><var>135.13</var>the lesser of:<br/>
<a id="pl.135.14"></a><var>135.14</var>(1) the amount of the net capital gain of the S corporation for the taxable year, as <br/>
<a id="pl.135.15"></a><var>135.15</var>determined under sections 1222 and 1374 of the Internal Revenue Code, and subject to the <br/>
<a id="pl.135.16"></a><var>135.16</var>modifications provided in section 
         <statute_ref>290.01</statute_ref>, subdivisions 19e and subdivision 19f, in excess <br/>
<a id="pl.135.17"></a><var>135.17</var>of $25,000 that is allocable to this state under section 
         <statute_ref>290.17</statute_ref>, 
         <statute_ref>290.191</statute_ref>, or 
         <statute_ref>290.20</statute_ref>; or<br/>
<a id="pl.135.18"></a><var>135.18</var>(2) the amount of the S corporation's federal taxable income, subject to the <br/>
<a id="pl.135.19"></a><var>135.19</var>provisions of section 
         <statute_ref>290.01</statute_ref>, subdivisions 19c to 19f, that is allocable to this state under <br/>
<a id="pl.135.20"></a><var>135.20</var>section 
         <statute_ref>290.17</statute_ref>, 
         <statute_ref>290.191</statute_ref>, or 
         <statute_ref>290.20</statute_ref>.<br/>
<a id="pl.135.21"></a><var>135.21</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.135.22"></a><var>135.22</var>December 31, 2013.<br/>
<br/>
<a id="bill.7.71.0"></a><a id="pl.135.23"></a><var>135.23</var>    Sec. 71. Minnesota Statutes 2013 Supplement, section 297A.61, subdivision 3, as <br/>
<a id="pl.135.24"></a><var>135.24</var>amended by Laws 2014, chapter 150, article 2, section 1, is amended to read:<br/>
<a id="pl.135.25"></a><var>135.25</var>    Subd. 3. <b>Sale and purchase.</b> (a) "Sale" and "purchase" include, but are not limited <br/>
<a id="pl.135.26"></a><var>135.26</var>to, each of the transactions listed in this subdivision. In applying the provisions of this <br/>
<a id="pl.135.27"></a><var>135.27</var>chapter, the terms "tangible personal property" and "retail sale" include the taxable <br/>
<a id="pl.135.28"></a><var>135.28</var>services listed in paragraph (g), clause (6), items (i) to (vi) and (viii), and the provision <br/>
<a id="pl.135.29"></a><var>135.29</var>of these taxable services, unless specifically provided otherwise. Services performed by <br/>
<a id="pl.135.30"></a><var>135.30</var>an employee for an employer are not taxable. Services performed by a partnership or <br/>
<a id="pl.135.31"></a><var>135.31</var>association for another partnership or association are not taxable if one of the entities owns <br/>
<a id="pl.135.32"></a><var>135.32</var>or controls more than 80 percent of the voting power of the equity interest in the other <br/>
<a id="pl.135.33"></a><var>135.33</var>entity. Services performed between members of an affiliated group of corporations are not <br/>
<a id="pl.136.1"></a><var>136.1</var>taxable. For purposes of the preceding sentence, "affiliated group of corporations" means <br/>
<a id="pl.136.2"></a><var>136.2</var>those entities that would be classified as members of an affiliated group as defined under <br/>
<a id="pl.136.3"></a><var>136.3</var>United States Code, title 26, section 1504, disregarding the exclusions in section 1504(b).<br/>
<a id="pl.136.4"></a><var>136.4</var>    (b) Sale and purchase include:<br/>
<a id="pl.136.5"></a><var>136.5</var>    (1) any transfer of title or possession, or both, of tangible personal property, whether <br/>
<a id="pl.136.6"></a><var>136.6</var>absolutely or conditionally, for a consideration in money or by exchange or barter; and<br/>
<a id="pl.136.7"></a><var>136.7</var>    (2) the leasing of or the granting of a license to use or consume, for a consideration <br/>
<a id="pl.136.8"></a><var>136.8</var>in money or by exchange or barter, tangible personal property, other than a manufactured <br/>
<a id="pl.136.9"></a><var>136.9</var>home used for residential purposes for a continuous period of 30 days or more.<br/>
<a id="pl.136.10"></a><var>136.10</var>    (c) Sale and purchase include the production, fabrication, printing, or processing of <br/>
<a id="pl.136.11"></a><var>136.11</var>tangible personal property for a consideration for consumers who furnish either directly or <br/>
<a id="pl.136.12"></a><var>136.12</var>indirectly the materials used in the production, fabrication, printing, or processing.<br/>
<a id="pl.136.13"></a><var>136.13</var>    (d) Sale and purchase include the preparing for a consideration of food. <br/>
<a id="pl.136.14"></a><var>136.14</var>Notwithstanding section 
         <statute_ref>297A.67, subdivision 2</statute_ref>, taxable food includes, but is not limited <br/>
<a id="pl.136.15"></a><var>136.15</var>to, the following:<br/>
<a id="pl.136.16"></a><var>136.16</var>    (1) prepared food sold by the retailer;<br/>
<a id="pl.136.17"></a><var>136.17</var>    (2) soft drinks;<br/>
<a id="pl.136.18"></a><var>136.18</var>    (3) candy;<br/>
<a id="pl.136.19"></a><var>136.19</var>    (4) dietary supplements; and<br/>
<a id="pl.136.20"></a><var>136.20</var>    (5) all food sold through vending machines.<br/>
<a id="pl.136.21"></a><var>136.21</var>    (e) A sale and a purchase includes the furnishing for a consideration of electricity, <br/>
<a id="pl.136.22"></a><var>136.22</var>gas, water, or steam for use or consumption within this state.<br/>
<a id="pl.136.23"></a><var>136.23</var>    (f) A sale and a purchase includes the transfer for a consideration of prewritten <br/>
<a id="pl.136.24"></a><var>136.24</var>computer software whether delivered electronically, by load and leave, or otherwise.<br/>
<a id="pl.136.25"></a><var>136.25</var>    (g) A sale and a purchase includes the furnishing for a consideration of the following <br/>
<a id="pl.136.26"></a><var>136.26</var>services:<br/>
<a id="pl.136.27"></a><var>136.27</var>    (1) the privilege of admission to places of amusement, recreational areas, or athletic <br/>
<a id="pl.136.28"></a><var>136.28</var>events, and the making available of amusement devices, tanning facilities, reducing <br/>
<a id="pl.136.29"></a><var>136.29</var>salons, steam baths, Turkish baths, health clubs, and spas or athletic facilities;<br/>
<a id="pl.136.30"></a><var>136.30</var>    (2) lodging and related services by a hotel, rooming house, resort, campground, <br/>
<a id="pl.136.31"></a><var>136.31</var>motel, or trailer camp, including furnishing the guest of the facility with access to <br/>
<a id="pl.136.32"></a><var>136.32</var>telecommunication services, and the granting of any similar license to use real property in <br/>
<a id="pl.136.33"></a><var>136.33</var>a specific facility, other than the renting or leasing of it for a continuous period of 30 days <br/>
<a id="pl.136.34"></a><var>136.34</var>or more under an enforceable written agreement that may not be terminated without prior <br/>
<a id="pl.136.35"></a><var>136.35</var>notice and including accommodations intermediary services provided in connection with <br/>
<a id="pl.136.36"></a><var>136.36</var>other services provided under this clause;<br/>
<a id="pl.137.1"></a><var>137.1</var>    (3) nonresidential parking services, whether on a contractual, hourly, or other <br/>
<a id="pl.137.2"></a><var>137.2</var>periodic basis, except for parking at a meter;<br/>
<a id="pl.137.3"></a><var>137.3</var>    (4) the granting of membership in a club, association, or other organization if:<br/>
<a id="pl.137.4"></a><var>137.4</var>    (i) the club, association, or other organization makes available for the use of its <br/>
<a id="pl.137.5"></a><var>137.5</var>members sports and athletic facilities, without regard to whether a separate charge is <br/>
<a id="pl.137.6"></a><var>137.6</var>assessed for use of the facilities; and<br/>
<a id="pl.137.7"></a><var>137.7</var>    (ii) use of the sports and athletic facility is not made available to the general public <br/>
<a id="pl.137.8"></a><var>137.8</var>on the same basis as it is made available to members.<br/>
<a id="pl.137.9"></a><var>137.9</var>Granting of membership means both onetime initiation fees and periodic membership <br/>
<a id="pl.137.10"></a><var>137.10</var>dues. Sports and athletic facilities include golf courses; tennis, racquetball, handball, and <br/>
<a id="pl.137.11"></a><var>137.11</var>squash courts; basketball and volleyball facilities; running tracks; exercise equipment; <br/>
<a id="pl.137.12"></a><var>137.12</var>swimming pools; and other similar athletic or sports facilities;<br/>
<a id="pl.137.13"></a><var>137.13</var>    (5) delivery of aggregate materials by a third party, excluding delivery of aggregate <br/>
<a id="pl.137.14"></a><var>137.14</var>material used in road construction; and delivery of concrete block by a third party if the <br/>
<a id="pl.137.15"></a><var>137.15</var>delivery would be subject to the sales tax if provided by the seller of the concrete block. <br/>
<a id="pl.137.16"></a><var>137.16</var>For purposes of this clause, "road construction" means construction of:<br/>
<a id="pl.137.17"></a><var>137.17</var>    (i) public roads;<br/>
<a id="pl.137.18"></a><var>137.18</var>    (ii) cartways; and<br/>
<a id="pl.137.19"></a><var>137.19</var>    (iii) private roads in townships located outside of the seven-county metropolitan area <br/>
<a id="pl.137.20"></a><var>137.20</var>up to the point of the emergency response location sign; and<br/>
<a id="pl.137.21"></a><var>137.21</var>    (6) services as provided in this clause:<br/>
<a id="pl.137.22"></a><var>137.22</var>    (i) laundry and dry cleaning services including cleaning, pressing, repairing, altering, <br/>
<a id="pl.137.23"></a><var>137.23</var>and storing clothes, linen services and supply, cleaning and blocking hats, and carpet, <br/>
<a id="pl.137.24"></a><var>137.24</var>drapery, upholstery, and industrial cleaning. Laundry and dry cleaning services do not <br/>
<a id="pl.137.25"></a><var>137.25</var>include services provided by coin operated facilities operated by the customer;<br/>
<a id="pl.137.26"></a><var>137.26</var>    (ii) motor vehicle washing, waxing, and cleaning services, including services <br/>
<a id="pl.137.27"></a><var>137.27</var>provided by coin operated facilities operated by the customer, and rustproofing, <br/>
<a id="pl.137.28"></a><var>137.28</var>undercoating, and towing of motor vehicles;<br/>
<a id="pl.137.29"></a><var>137.29</var>    (iii) building and residential cleaning, maintenance, and disinfecting services and <br/>
<a id="pl.137.30"></a><var>137.30</var>pest control and exterminating services;<br/>
<a id="pl.137.31"></a><var>137.31</var>    (iv) detective, security, burglar, fire alarm, and armored car services; but not <br/>
<a id="pl.137.32"></a><var>137.32</var>including services performed within the jurisdiction they serve by off-duty licensed peace <br/>
<a id="pl.137.33"></a><var>137.33</var>officers as defined in section 
         <statute_ref>626.84, subdivision 1</statute_ref>, or services provided by a nonprofit <br/>
<a id="pl.137.34"></a><var>137.34</var>organization or any organization at the direction of a county for monitoring and electronic <br/>
<a id="pl.137.35"></a><var>137.35</var>surveillance of persons placed on in-home detention pursuant to court order or under the <br/>
<a id="pl.137.36"></a><var>137.36</var>direction of the Minnesota Department of Corrections;<br/>
<a id="pl.138.1"></a><var>138.1</var>    (v) pet grooming services;<br/>
<a id="pl.138.2"></a><var>138.2</var>    (vi) lawn care, fertilizing, mowing, spraying and sprigging services; garden planting <br/>
<a id="pl.138.3"></a><var>138.3</var>and maintenance; tree, bush, and shrub pruning, bracing, spraying, and surgery; indoor <br/>
<a id="pl.138.4"></a><var>138.4</var>plant care; tree, bush, shrub, and stump removal, except when performed as part of a land <br/>
<a id="pl.138.5"></a><var>138.5</var>clearing contract as defined in section 
         <statute_ref>297A.68, subdivision 40</statute_ref>; and tree trimming for <br/>
<a id="pl.138.6"></a><var>138.6</var>public utility lines. Services performed under a construction contract for the installation of <br/>
<a id="pl.138.7"></a><var>138.7</var>shrubbery, plants, sod, trees, bushes, and similar items are not taxable;<br/>
<a id="pl.138.8"></a><var>138.8</var>    (vii) massages, except when provided by a licensed health care facility or <br/>
<a id="pl.138.9"></a><var>138.9</var>professional or upon written referral from a licensed health care facility or professional for <br/>
<a id="pl.138.10"></a><var>138.10</var>treatment of illness, injury, or disease; and<br/>
<a id="pl.138.11"></a><var>138.11</var>    (viii) the furnishing of lodging, board, and care services for animals in kennels and <br/>
<a id="pl.138.12"></a><var>138.12</var>other similar arrangements, but excluding veterinary and horse boarding services.<br/>
<a id="pl.138.13"></a><var>138.13</var>    (h) A sale and a purchase includes the furnishing for a consideration of tangible <br/>
<a id="pl.138.14"></a><var>138.14</var>personal property or taxable services by the United States or any of its agencies or <br/>
<a id="pl.138.15"></a><var>138.15</var>instrumentalities, or the state of Minnesota, its agencies, instrumentalities, or political <br/>
<a id="pl.138.16"></a><var>138.16</var>subdivisions.<br/>
<a id="pl.138.17"></a><var>138.17</var>    (i) A sale and a purchase includes the furnishing for a consideration of <br/>
<a id="pl.138.18"></a><var>138.18</var>telecommunications services, ancillary services associated with telecommunication <br/>
<a id="pl.138.19"></a><var>138.19</var>services, and pay television services. Telecommunication services include, but are <br/>
<a id="pl.138.20"></a><var>138.20</var>not limited to, the following services, as defined in section 
         <statute_ref>297A.669</statute_ref>: air-to-ground <br/>
<a id="pl.138.21"></a><var>138.21</var>radiotelephone service, mobile telecommunication service, postpaid calling service, <br/>
<a id="pl.138.22"></a><var>138.22</var>prepaid calling service, prepaid wireless calling service, and private communication <br/>
<a id="pl.138.23"></a><var>138.23</var>services. The services in this paragraph are taxed to the extent allowed under federal law.<br/>
<a id="pl.138.24"></a><var>138.24</var>    (j) A sale and a purchase includes the furnishing for a consideration of installation if <br/>
<a id="pl.138.25"></a><var>138.25</var>the installation charges would be subject to the sales tax if the installation were provided <br/>
<a id="pl.138.26"></a><var>138.26</var>by the seller of the item being installed.<br/>
<a id="pl.138.27"></a><var>138.27</var>    (k) A sale and a purchase includes the rental of a vehicle by a motor vehicle dealer <br/>
<a id="pl.138.28"></a><var>138.28</var>to a customer when (1) the vehicle is rented by the customer for a consideration, or (2) <br/>
<a id="pl.138.29"></a><var>138.29</var>the motor vehicle dealer is reimbursed pursuant to a service contract as defined in section <br/>
<statute_ref><a id="pl.138.30"></a><var>138.30</var>59B.02, subdivision
         </statute_ref> 11.<br/>
<a id="pl.138.31"></a><var>138.31</var>    (l) A sale and a purchase includes furnishing for a consideration of specified digital <br/>
<a id="pl.138.32"></a><var>138.32</var>products or other digital products or granting the right for a consideration to use specified <br/>
<a id="pl.138.33"></a><var>138.33</var>digital products or other digital products on a temporary or permanent basis and regardless <br/>
<a id="pl.138.34"></a><var>138.34</var>of whether the purchaser is required to make continued payments for such right. Wherever <br/>
<a id="pl.138.35"></a><var>138.35</var>the term "tangible personal property" is used in this chapter, other than in subdivisions 10 <br/>
<a id="pl.139.1"></a><var>139.1</var>and 38, the provisions also apply to specified digital products, or other digital products, <br/>
<a id="pl.139.2"></a><var>139.2</var>unless specifically provided otherwise or the context indicates otherwise.<br/>
<a id="pl.139.3"></a><var>139.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.72.0"></a><a id="pl.139.4"></a><var>139.4</var>    Sec. 72. Minnesota Statutes 2012, section 297A.70, subdivision 10, is amended to read:<br/>
<a id="pl.139.5"></a><var>139.5</var>    Subd. 10. <b>Nonprofit tickets or admissions.</b> (a) Tickets or admissions to an event <br/>
<a id="pl.139.6"></a><var>139.6</var>are exempt if all the gross receipts are recorded as such, in accordance with generally <br/>
<a id="pl.139.7"></a><var>139.7</var>accepted accounting principles, on the books of one or more organizations whose primary <br/>
<a id="pl.139.8"></a><var>139.8</var>mission is to provide an opportunity for citizens of the state to participate in the creation, <br/>
<a id="pl.139.9"></a><var>139.9</var>performance, or appreciation of the arts, and provided that each organization is:<br/>
<a id="pl.139.10"></a><var>139.10</var>(1) an organization described in section 501(c)(3) of the Internal Revenue Code <br/>
<a id="pl.139.11"></a><var>139.11</var>in which voluntary contributions make up at least the following five percent of the <br/>
<a id="pl.139.12"></a><var>139.12</var>organization's annual revenue in its most recently completed 12-month fiscal year, or in <br/>
<a id="pl.139.13"></a><var>139.13</var>the current year if the organization has not completed a 12-month fiscal year:;<br/>
<a id="pl.139.14"></a><var>139.14</var>(i) for sales made after July 31, 2001, and before July 1, 2002, for the organization's <br/>
<a id="pl.139.15"></a><var>139.15</var>fiscal year completed in calendar year 2000, three percent;<br/>
<a id="pl.139.16"></a><var>139.16</var>(ii) for sales made on or after July 1, 2002, and on or before June 30, 2003, for the <br/>
<a id="pl.139.17"></a><var>139.17</var>organization's fiscal year completed in calendar year 2001, three percent;<br/>
<a id="pl.139.18"></a><var>139.18</var>(iii) for sales made on or after July 1, 2003, and on or before June 30, 2004, for the <br/>
<a id="pl.139.19"></a><var>139.19</var>organization's fiscal year completed in calendar year 2002, four percent; and<br/>
<a id="pl.139.20"></a><var>139.20</var>(iv) for sales made in each 12-month period, beginning on July 1, 2004, and each <br/>
<a id="pl.139.21"></a><var>139.21</var>subsequent year, for the organization's fiscal year completed in the preceding calendar <br/>
<a id="pl.139.22"></a><var>139.22</var>year, five percent;<br/>
<a id="pl.139.23"></a><var>139.23</var>(2) a municipal board that promotes cultural and arts activities; or<br/>
<a id="pl.139.24"></a><var>139.24</var>(3) the University of Minnesota, a state college and university, or a private nonprofit <br/>
<a id="pl.139.25"></a><var>139.25</var>college or university provided that the event is held at a facility owned by the educational <br/>
<a id="pl.139.26"></a><var>139.26</var>institution holding the event.<br/>
<a id="pl.139.27"></a><var>139.27</var>The exemption only applies if the entire proceeds, after reasonable expenses, are used <br/>
<a id="pl.139.28"></a><var>139.28</var>solely to provide opportunities for citizens of the state to participate in the creation, <br/>
<a id="pl.139.29"></a><var>139.29</var>performance, or appreciation of the arts.<br/>
<a id="pl.139.30"></a><var>139.30</var>(b) Tickets or admissions to the premises of the Minnesota Zoological Garden are <br/>
<a id="pl.139.31"></a><var>139.31</var>exempt, provided that the exemption under this paragraph does not apply to tickets or <br/>
<a id="pl.139.32"></a><var>139.32</var>admissions to performances or events held on the premises unless the performance or <br/>
<a id="pl.139.33"></a><var>139.33</var>event is sponsored and conducted exclusively by the Minnesota Zoological Board or <br/>
<a id="pl.139.34"></a><var>139.34</var>employees of the Minnesota Zoological Garden.<br/>
<a id="pl.140.1"></a><var>140.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.73.0"></a><a id="pl.140.2"></a><var>140.2</var>    Sec. 73. Minnesota Statutes 2013 Supplement, section 297A.75, subdivision 1, is <br/>
<a id="pl.140.3"></a><var>140.3</var>amended to read:<br/>
<a id="pl.140.4"></a><var>140.4</var>    Subdivision 1. <b>Tax collected.</b> The tax on the gross receipts from the sale of the <br/>
<a id="pl.140.5"></a><var>140.5</var>following exempt items must be imposed and collected as if the sale were taxable and the <br/>
<a id="pl.140.6"></a><var>140.6</var>rate under section 
         <statute_ref>297A.62, subdivision 1</statute_ref>, applied. The exempt items include:<br/>
<a id="pl.140.7"></a><var>140.7</var>    (1) building materials for an agricultural processing facility exempt under section <br/>
<statute_ref><a id="pl.140.8"></a><var>140.8</var>297A.71, subdivision 13
         </statute_ref>;<br/>
<a id="pl.140.9"></a><var>140.9</var>    (2) building materials for mineral production facilities exempt under section <br/>
<statute_ref><a id="pl.140.10"></a><var>140.10</var>297A.71, subdivision 14
         </statute_ref>;<br/>
<a id="pl.140.11"></a><var>140.11</var>    (3) building materials for correctional facilities under section 
         <statute_ref>297A.71, subdivision 3</statute_ref>;<br/>
<a id="pl.140.12"></a><var>140.12</var>    (4) building materials used in a residence for disabled veterans exempt under section <br/>
<statute_ref><a id="pl.140.13"></a><var>140.13</var>297A.71, subdivision 11
         </statute_ref>;<br/>
<a id="pl.140.14"></a><var>140.14</var>    (5) elevators and building materials exempt under section 
         <statute_ref>297A.71, subdivision 12</statute_ref>;<br/>
<a id="pl.140.15"></a><var>140.15</var>    (6) building materials for the Long Lake Conservation Center exempt under section <br/>
<a id="pl.140.16"></a><var>140.16</var><statute_ref>297A.71, subdivision 17</statute_ref>;<br/>
<a id="pl.140.17"></a><var>140.17</var>    (7) (6) materials and supplies for qualified low-income housing under section <br/>
<statute_ref><a id="pl.140.18"></a><var>140.18</var>297A.71, subdivision 23
         </statute_ref>;<br/>
<a id="pl.140.19"></a><var>140.19</var>    (8) (7) materials, supplies, and equipment for municipal electric utility facilities <br/>
<a id="pl.140.20"></a><var>140.20</var>under section 
         <statute_ref>297A.71, subdivision 35</statute_ref>;<br/>
<a id="pl.140.21"></a><var>140.21</var>    (9) (8) equipment and materials used for the generation, transmission, and <br/>
<a id="pl.140.22"></a><var>140.22</var>distribution of electrical energy and an aerial camera package exempt under section <br/>
<statute_ref><a id="pl.140.23"></a><var>140.23</var>297A.68
         </statute_ref>, subdivision 37;<br/>
<a id="pl.140.24"></a><var>140.24</var>    (10) (9) commuter rail vehicle and repair parts under section 
         <statute_ref>297A.70</statute_ref>, subdivision <br/>
<a id="pl.140.25"></a><var>140.25</var>3, paragraph (a), clause (10);<br/>
<a id="pl.140.26"></a><var>140.26</var>    (11) (10) materials, supplies, and equipment for construction or improvement of <br/>
<a id="pl.140.27"></a><var>140.27</var>projects and facilities under section 
         <statute_ref>297A.71, subdivision 40</statute_ref>;<br/>
<a id="pl.140.28"></a><var>140.28</var>(12) (11) materials, supplies, and equipment for construction or improvement of a <br/>
<a id="pl.140.29"></a><var>140.29</var>meat processing facility exempt under section 
         <statute_ref>297A.71, subdivision 41</statute_ref>;<br/>
<a id="pl.140.30"></a><var>140.30</var>(13) (12) materials, supplies, and equipment for construction, improvement, or <br/>
<a id="pl.140.31"></a><var>140.31</var>expansion of:<br/>
<a id="pl.140.32"></a><var>140.32</var>(i) an aerospace defense manufacturing facility exempt under section 
         <statute_ref>297A.71, <br/>
<a id="pl.140.33"></a><var>140.33</var>subdivision 42
         </statute_ref>;<br/>
<a id="pl.140.34"></a><var>140.34</var>(ii) a biopharmaceutical manufacturing facility exempt under section 
         <statute_ref>297A.71, <br/>
<a id="pl.140.35"></a><var>140.35</var>subdivision 45
         </statute_ref>;<br/>
<a id="pl.141.1"></a><var>141.1</var>(iii) a research and development facility exempt under section 
         <statute_ref>297A.71, subdivision <br/>
<a id="pl.141.2"></a><var>141.2</var>46
         </statute_ref>; and<br/>
<a id="pl.141.3"></a><var>141.3</var>(iv) an industrial measurement manufacturing and controls facility exempt under <br/>
<a id="pl.141.4"></a><var>141.4</var>section 
         <statute_ref>297A.71, subdivision 47</statute_ref>;<br/>
<a id="pl.141.5"></a><var>141.5</var>(14) (13) enterprise information technology equipment and computer software for <br/>
<a id="pl.141.6"></a><var>141.6</var>use in a qualified data center exempt under section 
         <statute_ref>297A.68, subdivision 42</statute_ref>;<br/>
<a id="pl.141.7"></a><var>141.7</var>(15) (14) materials, supplies, and equipment for qualifying capital projects under <br/>
<a id="pl.141.8"></a><var>141.8</var>section 
         <statute_ref>297A.71, subdivision 44</statute_ref>;<br/>
<a id="pl.141.9"></a><var>141.9</var>(16) (15) items purchased for use in providing critical access dental services exempt <br/>
<a id="pl.141.10"></a><var>141.10</var>under section 
         <statute_ref>297A.70, subdivision 7</statute_ref>, paragraph (c); and<br/>
<a id="pl.141.11"></a><var>141.11</var>(17) (16) items and services purchased under a business subsidy agreement for use or <br/>
<a id="pl.141.12"></a><var>141.12</var>consumption primarily in greater Minnesota exempt under section 
         <statute_ref>297A.68, subdivision 44</statute_ref>.<br/>
<a id="pl.141.13"></a><var>141.13</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.74.0"></a><a id="pl.141.14"></a><var>141.14</var>    Sec. 74. Minnesota Statutes 2013 Supplement, section 297A.75, subdivision 2, is <br/>
<a id="pl.141.15"></a><var>141.15</var>amended to read:<br/>
<a id="pl.141.16"></a><var>141.16</var>    Subd. 2. <b>Refund; eligible persons.</b> Upon application on forms prescribed by the <br/>
<a id="pl.141.17"></a><var>141.17</var>commissioner, a refund equal to the tax paid on the gross receipts of the exempt items <br/>
<a id="pl.141.18"></a><var>141.18</var>must be paid to the applicant. Only the following persons may apply for the refund:<br/>
<a id="pl.141.19"></a><var>141.19</var>    (1) for subdivision 1, clauses (1), (2), and (16) (15), the applicant must be the <br/>
<a id="pl.141.20"></a><var>141.20</var>purchaser;<br/>
<a id="pl.141.21"></a><var>141.21</var>    (2) for subdivision 1, clauses clause (3) and (6), the applicant must be the <br/>
<a id="pl.141.22"></a><var>141.22</var>governmental subdivision;<br/>
<a id="pl.141.23"></a><var>141.23</var>    (3) for subdivision 1, clause (4), the applicant must be the recipient of the benefits <br/>
<a id="pl.141.24"></a><var>141.24</var>provided in United States Code, title 38, chapter 21;<br/>
<a id="pl.141.25"></a><var>141.25</var>    (4) for subdivision 1, clause (5), the applicant must be the owner of the homestead <br/>
<a id="pl.141.26"></a><var>141.26</var>property;<br/>
<a id="pl.141.27"></a><var>141.27</var>    (5) for subdivision 1, clause (7) (6), the owner of the qualified low-income housing <br/>
<a id="pl.141.28"></a><var>141.28</var>project;<br/>
<a id="pl.141.29"></a><var>141.29</var>    (6) for subdivision 1, clause (8) (7), the applicant must be a municipal electric utility <br/>
<a id="pl.141.30"></a><var>141.30</var>or a joint venture of municipal electric utilities;<br/>
<a id="pl.141.31"></a><var>141.31</var>    (7) for subdivision 1, clauses (9), (12), (13), (14) (8), (11), (12), (13), and (17) (16), <br/>
<a id="pl.141.32"></a><var>141.32</var>the owner of the qualifying business; and<br/>
<a id="pl.141.33"></a><var>141.33</var>    (8) for subdivision 1, clauses (9), (10), (11), and (15) (14), the applicant must be the <br/>
<a id="pl.141.34"></a><var>141.34</var>governmental entity that owns or contracts for the project or facility.<br/>
<a id="pl.142.1"></a><var>142.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.75.0"></a><a id="pl.142.2"></a><var>142.2</var>    Sec. 75. Minnesota Statutes 2013 Supplement, section 297A.75, subdivision 3, is <br/>
<a id="pl.142.3"></a><var>142.3</var>amended to read:<br/>
<a id="pl.142.4"></a><var>142.4</var>    Subd. 3. <b>Application.</b> (a) The application must include sufficient information <br/>
<a id="pl.142.5"></a><var>142.5</var>to permit the commissioner to verify the tax paid. If the tax was paid by a contractor, <br/>
<a id="pl.142.6"></a><var>142.6</var>subcontractor, or builder, under subdivision 1, clauses (3) to (15) (13), or (17) (15), the <br/>
<a id="pl.142.7"></a><var>142.7</var>contractor, subcontractor, or builder must furnish to the refund applicant a statement <br/>
<a id="pl.142.8"></a><var>142.8</var>including the cost of the exempt items and the taxes paid on the items unless otherwise <br/>
<a id="pl.142.9"></a><var>142.9</var>specifically provided by this subdivision. The provisions of sections 
         <statute_ref>289A.40</statute_ref> and <br/>
<statute_ref><a id="pl.142.10"></a><var>142.10</var>289A.50
         </statute_ref> apply to refunds under this section.<br/>
<a id="pl.142.11"></a><var>142.11</var>    (b) An applicant may not file more than two applications per calendar year for <br/>
<a id="pl.142.12"></a><var>142.12</var>refunds for taxes paid on capital equipment exempt under section 
         <statute_ref>297A.68, subdivision 5</statute_ref>.<br/>
<a id="pl.142.13"></a><var>142.13</var>    (c) Total refunds for purchases of items in section 
<statute_ref>297A.71, subdivision 40</statute_ref>, must not <br/>
<a id="pl.142.14"></a><var>142.14</var>exceed $5,000,000 in fiscal years 2010 and 2011. Applications for refunds for purchases <br/>
<a id="pl.142.15"></a><var>142.15</var>of items in sections 
<statute_ref>297A.70, subdivision 3</statute_ref>, paragraph (a), clause (11), and 
<statute_ref>297A.71</statute_ref>, <br/>
<a id="pl.142.16"></a><var>142.16</var>subdivision 40, must not be filed until after June 30, 2009.<br/>
<a id="pl.142.17"></a><var>142.17</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.76.0"></a><a id="pl.142.18"></a><var>142.18</var>    Sec. 76. Minnesota Statutes 2012, section 297A.94, is amended to read:<br/>
<a id="pl.142.19"></a><var>142.19</var><b>297A.94 DEPOSIT OF REVENUES.</b><br/>
<a id="pl.142.20"></a><var>142.20</var>(a) Except as provided in this section, the commissioner shall deposit the revenues, <br/>
<a id="pl.142.21"></a><var>142.21</var>including interest and penalties, derived from the taxes imposed by this chapter in the state <br/>
<a id="pl.142.22"></a><var>142.22</var>treasury and credit them to the general fund.<br/>
<a id="pl.142.23"></a><var>142.23</var>(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic <br/>
<a id="pl.142.24"></a><var>142.24</var>account in the special revenue fund if:<br/>
<a id="pl.142.25"></a><var>142.25</var>(1) the taxes are derived from sales and use of property and services purchased for <br/>
<a id="pl.142.26"></a><var>142.26</var>the construction and operation of an agricultural resource project; and<br/>
<a id="pl.142.27"></a><var>142.27</var>(2) the purchase was made on or after the date on which a conditional commitment <br/>
<a id="pl.142.28"></a><var>142.28</var>was made for a loan guaranty for the project under section 
         <statute_ref>41A.04, subdivision 3</statute_ref>.<br/>
<a id="pl.142.29"></a><var>142.29</var>The commissioner of management and budget shall certify to the commissioner the date <br/>
<a id="pl.142.30"></a><var>142.30</var>on which the project received the conditional commitment. The amount deposited in <br/>
<a id="pl.142.31"></a><var>142.31</var>the loan guaranty account must be reduced by any refunds and by the costs incurred by <br/>
<a id="pl.142.32"></a><var>142.32</var>the Department of Revenue to administer and enforce the assessment and collection of <br/>
<a id="pl.142.33"></a><var>142.33</var>the taxes.<br/>
<a id="pl.143.1"></a><var>143.1</var>(c) The commissioner shall deposit the revenues, including interest and penalties, <br/>
<a id="pl.143.2"></a><var>143.2</var>derived from the taxes imposed on sales and purchases included in section 
         <statute_ref>297A.61, <br/>
<a id="pl.143.3"></a><var>143.3</var>subdivision 3
         </statute_ref>, paragraph (g), clauses (1) and (4), in the state treasury, and credit them <br/>
<a id="pl.143.4"></a><var>143.4</var>as follows:<br/>
<a id="pl.143.5"></a><var>143.5</var>(1) first to the general obligation special tax bond debt service account in each fiscal <br/>
<a id="pl.143.6"></a><var>143.6</var>year the amount required by section 
         <statute_ref>16A.661, subdivision 3</statute_ref>, paragraph (b); and<br/>
<a id="pl.143.7"></a><var>143.7</var>(2) after the requirements of clause (1) have been met, the balance to the general fund.<br/>
<a id="pl.143.8"></a><var>143.8</var>(d) The commissioner shall deposit the revenues, including interest and penalties, <br/>
<a id="pl.143.9"></a><var>143.9</var>collected under section 
         <statute_ref>297A.64, subdivision 5</statute_ref>, in the state treasury and credit them to the <br/>
<a id="pl.143.10"></a><var>143.10</var>general fund. By July 15 of each year the commissioner shall transfer to the highway user <br/>
<a id="pl.143.11"></a><var>143.11</var>tax distribution fund an amount equal to the excess fees collected under section 
         <statute_ref>297A.64, <br/>
<a id="pl.143.12"></a><var>143.12</var>subdivision 5
         </statute_ref>, for the previous calendar year.<br/>
<a id="pl.143.13"></a><var>143.13</var>(e) For fiscal year 2001, 97 percent; for fiscal years 2002 and 2003, 87 percent; and <br/>
<a id="pl.143.14"></a><var>143.14</var>For fiscal year 2004 and thereafter,
<statute_ref>72.43</statute_ref> percent of the revenues, including interest and <br/>
<a id="pl.143.15"></a><var>143.15</var>penalties, transmitted to the commissioner under section 
         <statute_ref>297A.65</statute_ref>, must be deposited by <br/>
<a id="pl.143.16"></a><var>143.16</var>the commissioner in the state treasury as follows:<br/>
<a id="pl.143.17"></a><var>143.17</var>(1) 50 percent of the receipts must be deposited in the heritage enhancement account <br/>
<a id="pl.143.18"></a><var>143.18</var>in the game and fish fund, and may be spent only on activities that improve, enhance, or <br/>
<a id="pl.143.19"></a><var>143.19</var>protect fish and wildlife resources, including conservation, restoration, and enhancement <br/>
<a id="pl.143.20"></a><var>143.20</var>of land, water, and other natural resources of the state;<br/>
<a id="pl.143.21"></a><var>143.21</var>(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and <br/>
<a id="pl.143.22"></a><var>143.22</var>may be spent only for state parks and trails;<br/>
<a id="pl.143.23"></a><var>143.23</var>(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and <br/>
<a id="pl.143.24"></a><var>143.24</var>may be spent only on metropolitan park and trail grants;<br/>
<a id="pl.143.25"></a><var>143.25</var>(4) three percent of the receipts must be deposited in the natural resources fund, and <br/>
<a id="pl.143.26"></a><var>143.26</var>may be spent only on local trail grants; and<br/>
<a id="pl.143.27"></a><var>143.27</var>(5) two percent of the receipts must be deposited in the natural resources fund, <br/>
<a id="pl.143.28"></a><var>143.28</var>and may be spent only for the Minnesota Zoological Garden, the Como Park Zoo and <br/>
<a id="pl.143.29"></a><var>143.29</var>Conservatory, and the Duluth Zoo.<br/>
<a id="pl.143.30"></a><var>143.30</var>(f) The revenue dedicated under paragraph (e) may not be used as a substitute <br/>
<a id="pl.143.31"></a><var>143.31</var>for traditional sources of funding for the purposes specified, but the dedicated revenue <br/>
<a id="pl.143.32"></a><var>143.32</var>shall supplement traditional sources of funding for those purposes. Land acquired with <br/>
<a id="pl.143.33"></a><var>143.33</var>money deposited in the game and fish fund under paragraph (e) must be open to public <br/>
<a id="pl.143.34"></a><var>143.34</var>hunting and fishing during the open season, except that in aquatic management areas or <br/>
<a id="pl.143.35"></a><var>143.35</var>on lands where angling easements have been acquired, fishing may be prohibited during <br/>
<a id="pl.143.36"></a><var>143.36</var>certain times of the year and hunting may be prohibited. At least 87 percent of the money <br/>
<a id="pl.144.1"></a><var>144.1</var>deposited in the game and fish fund for improvement, enhancement, or protection of fish <br/>
<a id="pl.144.2"></a><var>144.2</var>and wildlife resources under paragraph (e) must be allocated for field operations.<br/>
<a id="pl.144.3"></a><var>144.3</var>(g) The revenues deposited under paragraphs (a) to (f) do not include the revenues, <br/>
<a id="pl.144.4"></a><var>144.4</var>including interest and penalties, generated by the sales tax imposed under section <br/>
<statute_ref><a id="pl.144.5"></a><var>144.5</var>297A.62, subdivision 1a
         </statute_ref>, which must be deposited as provided under the Minnesota <br/>
<a id="pl.144.6"></a><var>144.6</var>Constitution, article XI, section 15.<br/>
<a id="pl.144.7"></a><var>144.7</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.77.0"></a><a id="pl.144.8"></a><var>144.8</var>    Sec. 77. Minnesota Statutes 2012, section 297B.09, is amended to read:<br/>
<a id="pl.144.9"></a><var>144.9</var><b>297B.09 ALLOCATION OF REVENUE.</b><br/>
<a id="pl.144.10"></a><var>144.10</var>    Subdivision 1. <b>Deposit of revenues.</b> (a) Money collected and received under this <br/>
<a id="pl.144.11"></a><var>144.11</var>chapter must be deposited as provided in this subdivision.<br/>
<a id="pl.144.12"></a><var>144.12</var>    (b) From July 1, 2007, through June 30, 2008, 38.25 percent of the money collected <br/>
<a id="pl.144.13"></a><var>144.13</var>and received must be deposited in the highway user tax distribution fund, 24 percent must <br/>
<a id="pl.144.14"></a><var>144.14</var>be deposited in the metropolitan area transit account under section 
<statute_ref>16A.88</statute_ref>, and 1.5 percent <br/>
<a id="pl.144.15"></a><var>144.15</var>must be deposited in the greater Minnesota transit account under section 
<statute_ref>16A.88</statute_ref>. The <br/>
<a id="pl.144.16"></a><var>144.16</var>remaining money must be deposited in the general fund.<br/>
<a id="pl.144.17"></a><var>144.17</var>    (c) From July 1, 2008, through June 30, 2009, 44.25 percent of the money collected <br/>
<a id="pl.144.18"></a><var>144.18</var>and received must be deposited in the highway user tax distribution fund, 27.75 percent <br/>
<a id="pl.144.19"></a><var>144.19</var>must be deposited in the metropolitan area transit account under section 
<statute_ref>16A.88</statute_ref>, 1.75 <br/>
<a id="pl.144.20"></a><var>144.20</var>percent must be deposited in the greater Minnesota transit account under section 
<statute_ref>16A.88</statute_ref>, <br/>
<a id="pl.144.21"></a><var>144.21</var>and the remaining money must be deposited in the general fund.<br/>
<a id="pl.144.22"></a><var>144.22</var>(d) From July 1, 2009, through June 30, 2010, 47.5 percent of the money collected <br/>
<a id="pl.144.23"></a><var>144.23</var>and received must be deposited in the highway user tax distribution fund, 30 percent <br/>
<a id="pl.144.24"></a><var>144.24</var>must be deposited in the metropolitan area transit account under section 
<statute_ref>16A.88</statute_ref>, 3.5 <br/>
<a id="pl.144.25"></a><var>144.25</var>percent must be deposited in the greater Minnesota transit account under section 
<statute_ref>16A.88</statute_ref>, <br/>
<a id="pl.144.26"></a><var>144.26</var>and 16.25 percent must be deposited in the general fund. The remaining amount must <br/>
<a id="pl.144.27"></a><var>144.27</var>be deposited as follows:<br/>
<a id="pl.144.28"></a><var>144.28</var>(1) 1.5 percent in the metropolitan area transit account, except that any amount in <br/>
<a id="pl.144.29"></a><var>144.29</var>excess of $6,000,000 must be deposited in the highway user tax distribution fund; and<br/>
<a id="pl.144.30"></a><var>144.30</var>(2) 1.25 percent in the greater Minnesota transit account, except that any amount in <br/>
<a id="pl.144.31"></a><var>144.31</var>excess of $5,000,000 must be deposited in the highway user tax distribution fund.<br/>
<a id="pl.144.32"></a><var>144.32</var>(e) From July 1, 2010, through June 30, 2011, 54.5 percent of the money collected <br/>
<a id="pl.144.33"></a><var>144.33</var>and received must be deposited in the highway user tax distribution fund, 33.75 percent <br/>
<a id="pl.144.34"></a><var>144.34</var>must be deposited in the metropolitan area transit account under section 
<statute_ref>16A.88</statute_ref>, 
<statute_ref>3.75 <br/>
<a id="pl.145.1"></a><var>145.1</var></statute_ref>percent must be deposited in the greater Minnesota transit account under section 
<statute_ref>16A.88</statute_ref>, <br/>
<a id="pl.145.2"></a><var>145.2</var>and 6.25 percent must be deposited in the general fund. The remaining amount must <br/>
<a id="pl.145.3"></a><var>145.3</var>be deposited as follows:<br/>
<a id="pl.145.4"></a><var>145.4</var>(1) 1.5 percent in the metropolitan area transit account, except that any amount in <br/>
<a id="pl.145.5"></a><var>145.5</var>excess of $6,750,000 must be deposited in the highway user tax distribution fund; and<br/>
<a id="pl.145.6"></a><var>145.6</var>(2) 0.25 percent in the greater Minnesota transit account, except that any amount in <br/>
<a id="pl.145.7"></a><var>145.7</var>excess of $1,250,000 must be deposited in the highway user tax distribution fund.<br/>
<a id="pl.145.8"></a><var>145.8</var>    (f) On and after July 1, 2011, (b) 60 percent of the money collected and received <br/>
<a id="pl.145.9"></a><var>145.9</var>must be deposited in the highway user tax distribution fund, 36 percent must be deposited <br/>
<a id="pl.145.10"></a><var>145.10</var>in the metropolitan area transit account under section 
         <statute_ref>16A.88</statute_ref>, and four percent must be <br/>
<a id="pl.145.11"></a><var>145.11</var>deposited in the greater Minnesota transit account under section 
         <statute_ref>16A.88</statute_ref>.<br/>
<a id="pl.145.12"></a><var>145.12</var>(g) (c) It is the intent of the legislature that the allocations under paragraph (f) (b)<br/>
<a id="pl.145.13"></a><var>145.13</var> remain unchanged for fiscal year 2012 and all subsequent fiscal years.<br/>
<a id="pl.145.14"></a><var>145.14</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.78.0"></a><a id="pl.145.15"></a><var>145.15</var>    Sec. 78. Minnesota Statutes 2012, section 297F.03, subdivision 2, is amended to read:<br/>
<a id="pl.145.16"></a><var>145.16</var>    Subd. 2. <b>Form of application.</b> Every application for a cigarette or tobacco products <br/>
<a id="pl.145.17"></a><var>145.17</var>license shall be made on a form prescribed by the commissioner and shall state the name <br/>
<a id="pl.145.18"></a><var>145.18</var>and address of the applicant; if the applicant is a firm, partnership, or association, the name <br/>
<a id="pl.145.19"></a><var>145.19</var>and address of each of its members; if the applicant is a corporation, the name and address <br/>
<a id="pl.145.20"></a><var>145.20</var>of each of its officers; the address of its principal place of business; the place where the <br/>
<a id="pl.145.21"></a><var>145.21</var>business to be licensed is to be conducted; and any other information the commissioner <br/>
<a id="pl.145.22"></a><var>145.22</var>may require for the administration of this chapter.<br/>
<a id="pl.145.23"></a><var>145.23</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.79.0"></a><a id="pl.145.24"></a><var>145.24</var>    Sec. 79. Minnesota Statutes 2012, section 297I.05, subdivision 14, is amended to read:<br/>
<a id="pl.145.25"></a><var>145.25</var>    Subd. 14. <b>Life insurance.</b> A tax is imposed on life insurance. The rate of tax equals <br/>
<a id="pl.145.26"></a><var>145.26</var>a percentage 1.5 percent of gross premiums less return premiums on all direct business <br/>
<a id="pl.145.27"></a><var>145.27</var>received by the insurer or agents of the insurer in Minnesota for life insurance, in cash or <br/>
<a id="pl.145.28"></a><var>145.28</var>otherwise, during the year. For premiums received after December 31, 2005, but before <br/>
<a id="pl.145.29"></a><var>145.29</var>January 1, 2007, the rate of tax is 1.875 percent. For premiums received after December <br/>
<a id="pl.145.30"></a><var>145.30</var>31, 2006, but before January 1, 2008, the rate of tax is 1.75 percent. For premiums <br/>
<a id="pl.145.31"></a><var>145.31</var>received after December 31, 2007, but before January 1, 2009, the rate of tax is 1.625 <br/>
<a id="pl.145.32"></a><var>145.32</var>percent. For premiums received after December 31, 2008, the rate of tax is 1.5 percent.<br/>
<a id="pl.145.33"></a><var>145.33</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.80.0"></a><a id="pl.146.1"></a><var>146.1</var>    Sec. 80. Minnesota Statutes 2012, section 412.131, is amended to read:<br/>
<a id="pl.146.2"></a><var>146.2</var><b>412.131 ASSESSOR; DUTIES, COMPENSATION.</b><br/>
<a id="pl.146.3"></a><var>146.3</var>The city assessor, if there is one, shall assess and return as provided by law all <br/>
<a id="pl.146.4"></a><var>146.4</var>property taxable within the city, if a separate assessment district, and the assessor of the <br/>
<a id="pl.146.5"></a><var>146.5</var>town within which the city lies shall not include in the return any property taxable in the <br/>
<a id="pl.146.6"></a><var>146.6</var>city. Any assessor may appoint a deputy assessor as provided in section 
         <statute_ref>273.06</statute_ref>. The <br/>
<a id="pl.146.7"></a><var>146.7</var>assessor may be compensated on a full-time or part-time basis at the option of the council <br/>
<a id="pl.146.8"></a><var>146.8</var>but the compensation shall be not less than $100 in any one year, if fixed on an annual <br/>
<a id="pl.146.9"></a><var>146.9</var>basis, or not more than $20 per day, if fixed on a per diem basis. If the compensation is <br/>
<a id="pl.146.10"></a><var>146.10</var>not fixed by the council the assessor shall be entitled to compensation at the rate of $20 <br/>
<a id="pl.146.11"></a><var>146.11</var>per day for each days service necessarily rendered, and mileage at the rate paid other city <br/>
<a id="pl.146.12"></a><var>146.12</var>officers for each mile necessarily traveled in going to and returning from the county seat of <br/>
<a id="pl.146.13"></a><var>146.13</var>the county to attend any meeting of the assessors of the county legally called by the county <br/>
<a id="pl.146.14"></a><var>146.14</var>auditor, and also for each mile necessarily traveled in making the return of assessment <br/>
<a id="pl.146.15"></a><var>146.15</var>to the proper county officer and in attending sectional meetings called by the county <br/>
<a id="pl.146.16"></a><var>146.16</var>assessor, except when mileage is paid by the county. In addition to other compensation, <br/>
<a id="pl.146.17"></a><var>146.17</var>the council may allow the assessor mileage at the same rate per mile as paid other city <br/>
<a id="pl.146.18"></a><var>146.18</var>officers for each mile necessarily traveled in assessment work.<br/>
<a id="pl.146.19"></a><var>146.19</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.81.0"></a><a id="pl.146.20"></a><var>146.20</var>    Sec. 81. Minnesota Statutes 2013 Supplement, section 423A.022, subdivision 3, <br/>
<a id="pl.146.21"></a><var>146.21</var>is amended to read:<br/>
<a id="pl.146.22"></a><var>146.22</var>    Subd. 3. <b>Reporting; definitions.</b> (a) On or before September 1, annually, the <br/>
<a id="pl.146.23"></a><var>146.23</var>executive director of the Public Employees Retirement Association shall report to the <br/>
<a id="pl.146.24"></a><var>146.24</var>commissioner of revenue the following:<br/>
<a id="pl.146.25"></a><var>146.25</var>    (1) the municipalities which employ firefighters with retirement coverage by the <br/>
<a id="pl.146.26"></a><var>146.26</var>public employees police and fire retirement plan;<br/>
<a id="pl.146.27"></a><var>146.27</var>    (2) the number of firefighters with public employees police and fire retirement plan <br/>
<a id="pl.146.28"></a><var>146.28</var>coverage employed by each municipality;<br/>
<a id="pl.146.29"></a><var>146.29</var>    (3) (2) the fire departments covered by the voluntary statewide lump-sum volunteer <br/>
<a id="pl.146.30"></a><var>146.30</var>firefighter retirement plan; and<br/>
<a id="pl.146.31"></a><var>146.31</var>    (4) (3) any other information requested by the commissioner to administer the police <br/>
<a id="pl.146.32"></a><var>146.32</var>and firefighter retirement supplemental state aid program.<br/>
<a id="pl.146.33"></a><var>146.33</var>    (b) For this subdivision, (i) the number of firefighters employed by a municipality <br/>
<a id="pl.146.34"></a><var>146.34</var>who have public employees police and fire retirement plan coverage means the number <br/>
<a id="pl.147.1"></a><var>147.1</var>of firefighters with public employees police and fire retirement plan coverage that were <br/>
<a id="pl.147.2"></a><var>147.2</var>employed by the municipality for not less than 30 hours per week for a minimum of six <br/>
<a id="pl.147.3"></a><var>147.3</var>months prior to December 31 preceding the date of the payment under this section and, if <br/>
<a id="pl.147.4"></a><var>147.4</var>the person was employed for less than the full year, prorated to the number of full months <br/>
<a id="pl.147.5"></a><var>147.5</var>employed; and (ii) the number of active police officers certified for police state aid receipt <br/>
<a id="pl.147.6"></a><var>147.6</var>under section 
<statute_ref>69.011, subdivisions 2</statute_ref> and 2b, means, for each municipality, the number of <br/>
<a id="pl.147.7"></a><var>147.7</var>police officers meeting the definition of peace officer in section 
<statute_ref>69.011, subdivision 1</statute_ref>, <br/>
<a id="pl.147.8"></a><var>147.8</var>counted as provided and limited by section 
<statute_ref>69.011, subdivisions 2</statute_ref> and 2b.<br/>
<a id="pl.147.9"></a><var>147.9</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.82.0"></a><a id="pl.147.10"></a><var>147.10</var>    Sec. 82. Minnesota Statutes 2012, section 469.176, subdivision 1b, is amended to read:<br/>
<a id="pl.147.11"></a><var>147.11</var>    Subd. 1b. <b>Duration limits; terms.</b> (a) No tax increment shall in any event be <br/>
<a id="pl.147.12"></a><var>147.12</var>paid to the authority:<br/>
<a id="pl.147.13"></a><var>147.13</var>(1) after 15 years after receipt by the authority of the first increment for a renewal <br/>
<a id="pl.147.14"></a><var>147.14</var>and renovation district;<br/>
<a id="pl.147.15"></a><var>147.15</var>(2) after 20 years after receipt by the authority of the first increment for a soils <br/>
<a id="pl.147.16"></a><var>147.16</var>condition district;<br/>
<a id="pl.147.17"></a><var>147.17</var>(3) after eight years after receipt by the authority of the first increment for an <br/>
<a id="pl.147.18"></a><var>147.18</var>economic development district;<br/>
<a id="pl.147.19"></a><var>147.19</var>(4) for a housing district, a compact development district, or a redevelopment <br/>
<a id="pl.147.20"></a><var>147.20</var>district, after 25 years from the date of receipt by the authority of the first increment.<br/>
<a id="pl.147.21"></a><var>147.21</var>(b) For purposes of determining a duration limit under this subdivision or subdivision <br/>
<a id="pl.147.22"></a><var>147.22</var>1e that is based on the receipt of an increment, any increments from taxes payable in the year <br/>
<a id="pl.147.23"></a><var>147.23</var>in which the district terminates shall be paid to the authority. This paragraph does not affect <br/>
<a id="pl.147.24"></a><var>147.24</var>a duration limit calculated from the date of approval of the tax increment financing plan or <br/>
<a id="pl.147.25"></a><var>147.25</var>based on the recovery of costs or to a duration limit under subdivision 1c. This paragraph <br/>
<a id="pl.147.26"></a><var>147.26</var>does not supersede the restrictions on payment of delinquent taxes in subdivision 1f.<br/>
<a id="pl.147.27"></a><var>147.27</var>(c) An action by the authority to waive or decline to accept an increment has no <br/>
<a id="pl.147.28"></a><var>147.28</var>effect for purposes of computing a duration limit based on the receipt of increment under <br/>
<a id="pl.147.29"></a><var>147.29</var>this subdivision or any other provision of law. The authority is deemed to have received an <br/>
<a id="pl.147.30"></a><var>147.30</var>increment for any year in which it waived or declined to accept an increment, regardless <br/>
<a id="pl.147.31"></a><var>147.31</var>of whether the increment was paid to the authority.<br/>
<a id="pl.147.32"></a><var>147.32</var>(d) Receipt by a hazardous substance subdistrict of an increment as a result of a <br/>
<a id="pl.147.33"></a><var>147.33</var>reduction in original net tax capacity under section 
         <statute_ref>469.174, subdivision 7</statute_ref>, paragraph <br/>
<a id="pl.147.34"></a><var>147.34</var>(b), does not constitute receipt of increment by the overlying district for the purpose of <br/>
<a id="pl.147.35"></a><var>147.35</var>calculating the duration limit under this section.<br/>
<a id="pl.148.1"></a><var>148.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.83.0"></a><a id="pl.148.2"></a><var>148.2</var>    Sec. 83. Minnesota Statutes 2012, section 469.176, subdivision 3, is amended to read:<br/>
<a id="pl.148.3"></a><var>148.3</var>    Subd. 3. <b>Limitation on administrative expenses.</b> (a) For districts for which <br/>
<a id="pl.148.4"></a><var>148.4</var>certification was requested before August 1, 1979, or after June 30, 1982 and before<br/>
<a id="pl.148.5"></a><var>148.5</var> August 1, 2001, no tax increment shall be used to pay any administrative expenses for <br/>
<a id="pl.148.6"></a><var>148.6</var>a project which exceed ten percent of the total estimated tax increment expenditures <br/>
<a id="pl.148.7"></a><var>148.7</var>authorized by the tax increment financing plan or the total tax increment expenditures <br/>
<a id="pl.148.8"></a><var>148.8</var>for the project, whichever is less.<br/>
<a id="pl.148.9"></a><var>148.9</var>(b) For districts for which certification was requested after July 31, 1979, and before <br/>
<a id="pl.148.10"></a><var>148.10</var>July 1, 1982, no tax increment shall be used to pay administrative expenses, as defined in <br/>
<a id="pl.148.11"></a><var>148.11</var>Minnesota Statutes 1980, section 
<statute_ref>273.73</statute_ref>, for a district which exceeds five percent of the <br/>
<a id="pl.148.12"></a><var>148.12</var>total tax increment expenditures authorized by the tax increment financing plan or the total <br/>
<a id="pl.148.13"></a><var>148.13</var>estimated tax increment expenditures for the district, whichever is less.<br/>
<a id="pl.148.14"></a><var>148.14</var>(c) (b) For districts for which certification was requested after July 31, 2001, no tax <br/>
<a id="pl.148.15"></a><var>148.15</var>increment may be used to pay any administrative expenses for a project which exceed <br/>
<a id="pl.148.16"></a><var>148.16</var>ten percent of total estimated tax increment expenditures authorized by the tax increment <br/>
<a id="pl.148.17"></a><var>148.17</var>financing plan or the total tax increments, as defined in section 
         <statute_ref>469.174, subdivision 25</statute_ref>, <br/>
<a id="pl.148.18"></a><var>148.18</var>clause (1), from the district, whichever is less.<br/>
<a id="pl.148.19"></a><var>148.19</var>(d) (c) Increments used to pay the county's administrative expenses under <br/>
<a id="pl.148.20"></a><var>148.20</var>subdivision 4h are not subject to the percentage limits in this subdivision.<br/>
<a id="pl.148.21"></a><var>148.21</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.84.0"></a><a id="pl.148.22"></a><var>148.22</var>    Sec. 84. Minnesota Statutes 2013 Supplement, section 469.1763, subdivision 2, <br/>
<a id="pl.148.23"></a><var>148.23</var>is amended to read:<br/>
<a id="pl.148.24"></a><var>148.24</var>    Subd. 2. <b>Expenditures outside district.</b> (a) For each tax increment financing <br/>
<a id="pl.148.25"></a><var>148.25</var>district, an amount equal to at least 75 percent of the total revenue derived from tax <br/>
<a id="pl.148.26"></a><var>148.26</var>increments paid by properties in the district must be expended on activities in the district <br/>
<a id="pl.148.27"></a><var>148.27</var>or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities <br/>
<a id="pl.148.28"></a><var>148.28</var>in the district or to pay, or secure payment of, debt service on credit enhanced bonds. <br/>
<a id="pl.148.29"></a><var>148.29</var>For districts, other than redevelopment districts for which the request for certification <br/>
<a id="pl.148.30"></a><var>148.30</var>was made after June 30, 1995, the in-district percentage for purposes of the preceding <br/>
<a id="pl.148.31"></a><var>148.31</var>sentence is 80 percent. Not more than 25 percent of the total revenue derived from tax <br/>
<a id="pl.148.32"></a><var>148.32</var>increments paid by properties in the district may be expended, through a development fund <br/>
<a id="pl.148.33"></a><var>148.33</var>or otherwise, on activities outside of the district but within the defined geographic area of <br/>
<a id="pl.148.34"></a><var>148.34</var>the project except to pay, or secure payment of, debt service on credit enhanced bonds. <br/>
<a id="pl.149.1"></a><var>149.1</var>For districts, other than redevelopment districts for which the request for certification was <br/>
<a id="pl.149.2"></a><var>149.2</var>made after June 30, 1995, the pooling percentage for purposes of the preceding sentence is <br/>
<a id="pl.149.3"></a><var>149.3</var>20 percent. The revenue derived from tax increments for the district that are expended on <br/>
<a id="pl.149.4"></a><var>149.4</var>costs under section 
         <statute_ref>469.176, subdivision 4h</statute_ref>, paragraph (b), may be deducted first before <br/>
<a id="pl.149.5"></a><var>149.5</var>calculating the percentages that must be expended within and without the district.<br/>
<a id="pl.149.6"></a><var>149.6</var>    (b) In the case of a housing district, a housing project, as defined in section 
         <statute_ref>469.174, <br/>
<a id="pl.149.7"></a><var>149.7</var>subdivision 11
         </statute_ref>, is an activity in the district.<br/>
<a id="pl.149.8"></a><var>149.8</var>    (c) All administrative expenses are for activities outside of the district, except that <br/>
<a id="pl.149.9"></a><var>149.9</var>if the only expenses for activities outside of the district under this subdivision are for <br/>
<a id="pl.149.10"></a><var>149.10</var>the purposes described in paragraph (d), administrative expenses will be considered as <br/>
<a id="pl.149.11"></a><var>149.11</var>expenditures for activities in the district.<br/>
<a id="pl.149.12"></a><var>149.12</var>    (d) The authority may elect, in the tax increment financing plan for the district, <br/>
<a id="pl.149.13"></a><var>149.13</var>to increase by up to ten percentage points the permitted amount of expenditures for <br/>
<a id="pl.149.14"></a><var>149.14</var>activities located outside the geographic area of the district under paragraph (a). As <br/>
<a id="pl.149.15"></a><var>149.15</var>permitted by section 
         <statute_ref>469.176, subdivision 4k</statute_ref>, the expenditures, including the permitted <br/>
<a id="pl.149.16"></a><var>149.16</var>expenditures under paragraph (a), need not be made within the geographic area of the <br/>
<a id="pl.149.17"></a><var>149.17</var>project. Expenditures that meet the requirements of this paragraph are legally permitted <br/>
<a id="pl.149.18"></a><var>149.18</var>expenditures of the district, notwithstanding section 
         <statute_ref>469.176, subdivisions 4b, 4c, and 4j</statute_ref>. <br/>
<a id="pl.149.19"></a><var>149.19</var>To qualify for the increase under this paragraph, the expenditures must:<br/>
<a id="pl.149.20"></a><var>149.20</var>    (1) be used exclusively to assist housing that meets the requirement for a qualified <br/>
<a id="pl.149.21"></a><var>149.21</var>low-income building, as that term is used in section 42 of the Internal Revenue Code; and<br/>
<a id="pl.149.22"></a><var>149.22</var>    (2) not exceed the qualified basis of the housing, as defined under section 42(c) of <br/>
<a id="pl.149.23"></a><var>149.23</var>the Internal Revenue Code, less the amount of any credit allowed under section 42 of <br/>
<a id="pl.149.24"></a><var>149.24</var>the Internal Revenue Code; and<br/>
<a id="pl.149.25"></a><var>149.25</var>    (3) be used to:<br/>
<a id="pl.149.26"></a><var>149.26</var>    (i) acquire and prepare the site of the housing;<br/>
<a id="pl.149.27"></a><var>149.27</var>    (ii) acquire, construct, or rehabilitate the housing; or<br/>
<a id="pl.149.28"></a><var>149.28</var>    (iii) make public improvements directly related to the housing; or<br/>
<a id="pl.149.29"></a><var>149.29</var>(4) be used to develop housing:<br/>
<a id="pl.149.30"></a><var>149.30</var>(i) if the market value of the housing does not exceed the lesser of:<br/>
<a id="pl.149.31"></a><var>149.31</var>(A) 150 percent of the average market value of single-family homes in that <br/>
<a id="pl.149.32"></a><var>149.32</var>municipality; or<br/>
<a id="pl.149.33"></a><var>149.33</var>(B) $200,000 for municipalities located in the metropolitan area, as defined in <br/>
<a id="pl.149.34"></a><var>149.34</var>section 
         <statute_ref>473.121</statute_ref>, or $125,000 for all other municipalities; and<br/>
<a id="pl.149.35"></a><var>149.35</var>(ii) if the expenditures are used to pay the cost of site acquisition, relocation, <br/>
<a id="pl.149.36"></a><var>149.36</var>demolition of existing structures, site preparation, and pollution abatement on one or <br/>
<a id="pl.150.1"></a><var>150.1</var>more parcels, if the parcel contains a residence containing one to four family dwelling <br/>
<a id="pl.150.2"></a><var>150.2</var>units that has been vacant for six or more months and is in foreclosure as defined in <br/>
<a id="pl.150.3"></a><var>150.3</var>section 
         <statute_ref>325N.10, subdivision 7</statute_ref>, but without regard to whether the residence is the owner's <br/>
<a id="pl.150.4"></a><var>150.4</var>principal residence, and only after the redemption period has expired.<br/>
<a id="pl.150.5"></a><var>150.5</var>    (e) For a district created within a biotechnology and health sciences industry zone <br/>
<a id="pl.150.6"></a><var>150.6</var>as defined in Minnesota Statutes 2012, section 
         <statute_ref>469.330, subdivision 6</statute_ref>, or for an existing <br/>
<a id="pl.150.7"></a><var>150.7</var>district located within such a zone, tax increment derived from such a district may be <br/>
<a id="pl.150.8"></a><var>150.8</var>expended outside of the district but within the zone only for expenditures required for the <br/>
<a id="pl.150.9"></a><var>150.9</var>construction of public infrastructure necessary to support the activities of the zone, land <br/>
<a id="pl.150.10"></a><var>150.10</var>acquisition, and other redevelopment costs as defined in section 
         <statute_ref>469.176, subdivision 4j</statute_ref>. <br/>
<a id="pl.150.11"></a><var>150.11</var>These expenditures are considered as expenditures for activities within the district. The <br/>
<a id="pl.150.12"></a><var>150.12</var>authority provided by this paragraph expires for expenditures made after the later of (1) <br/>
<a id="pl.150.13"></a><var>150.13</var>December 31, 2015, or (2) the end of the five-year period beginning on the date the district <br/>
<a id="pl.150.14"></a><var>150.14</var>was certified, provided that date was before January 1, 2016.<br/>
<a id="pl.150.15"></a><var>150.15</var>(f) The authority under paragraph (d), clause (4), expires on December 31, 2016. <br/>
<a id="pl.150.16"></a><var>150.16</var>Increments may continue to be expended under this authority after that date, if they are <br/>
<a id="pl.150.17"></a><var>150.17</var>used to pay bonds or binding contracts that would qualify under subdivision 3, paragraph <br/>
<a id="pl.150.18"></a><var>150.18</var>(a), if December 31, 2016, is considered to be the last date of the five-year period after <br/>
<a id="pl.150.19"></a><var>150.19</var>certification under that provision.<br/>
<a id="pl.150.20"></a><var>150.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.150.21"></a><var>150.21</var>and applies to all districts, regardless of when the request for certification was made.<br/>
<br/>
<a id="bill.7.85.0"></a><a id="pl.150.22"></a><var>150.22</var>    Sec. 85. Minnesota Statutes 2012, section 473.665, subdivision 5, is amended to read:<br/>
<a id="pl.150.23"></a><var>150.23</var>    Subd. 5. <b>Tax levy; surplus; reduction.</b> The corporation, upon issuing any bonds <br/>
<a id="pl.150.24"></a><var>150.24</var>under the provisions of this section, shall, before the issuance thereof, levy for each year, <br/>
<a id="pl.150.25"></a><var>150.25</var>until the principal and interest are paid in full, a direct annual tax on all the taxable property <br/>
<a id="pl.150.26"></a><var>150.26</var>of the cities in and for which the corporation has been created in an amount not less than <br/>
<a id="pl.150.27"></a><var>150.27</var>five percent in excess of the sum required to pay the principal and interest thereof, when <br/>
<a id="pl.150.28"></a><var>150.28</var>and as such principal and interest matures. After any of such bonds have been delivered to <br/>
<a id="pl.150.29"></a><var>150.29</var>purchasers, such tax shall be irrepealable until all such indebtedness is paid, and after the <br/>
<a id="pl.150.30"></a><var>150.30</var>issuance of such bonds no further action of the corporation shall be necessary to authorize <br/>
<a id="pl.150.31"></a><var>150.31</var>the extensions, assessments, and collection of such tax. The secretary of the corporation <br/>
<a id="pl.150.32"></a><var>150.32</var>shall forthwith furnish a certified copy of such levy to the county auditor or county <br/>
<a id="pl.150.33"></a><var>150.33</var>auditors of the county or counties in which the cities in and for which the corporation has <br/>
<a id="pl.150.34"></a><var>150.34</var>been created are located, together with full information regarding the bonds for which the <br/>
<a id="pl.150.35"></a><var>150.35</var>tax is levied, and such county auditor or such county auditors, as the case may be, shall <br/>
<a id="pl.151.1"></a><var>151.1</var>enter the same in the register provided for in section 
         <statute_ref>475.62</statute_ref>, or a similar register, and shall <br/>
<a id="pl.151.2"></a><var>151.2</var>extend and assess the tax so levied. If both cities are located wholly within one county, the <br/>
<a id="pl.151.3"></a><var>151.3</var>county auditor thereof shall annually extend and assess the amount of the tax so levied. If <br/>
<a id="pl.151.4"></a><var>151.4</var>the cities are located in different counties, the county auditor of each such county shall <br/>
<a id="pl.151.5"></a><var>151.5</var>annually extend and assess such portion of the tax levied as the net tax capacity of the <br/>
<a id="pl.151.6"></a><var>151.6</var>taxable property, not including moneys and credits, located wholly within the city in such <br/>
<a id="pl.151.7"></a><var>151.7</var>county bears to the total net tax capacity of the taxable property, not including moneys and <br/>
<a id="pl.151.8"></a><var>151.8</var>credits, within both cities. Any surplus resulting from the excess levy herein provided <br/>
<a id="pl.151.9"></a><var>151.9</var>for shall be transferred to a sinking fund after the principal and interest for which the tax <br/>
<a id="pl.151.10"></a><var>151.10</var>was levied and collected has been paid; provided, that the corporation may, on or before <br/>
<a id="pl.151.11"></a><var>151.11</var>October 15 in any year, by appropriate action, cause its secretary to certify to the county <br/>
<a id="pl.151.12"></a><var>151.12</var>auditor, or auditors, the amount on hand and available in its treasury from earnings, or <br/>
<a id="pl.151.13"></a><var>151.13</var>otherwise, including the amount in the sinking fund, which it will use to pay principal or <br/>
<a id="pl.151.14"></a><var>151.14</var>interest or both on each specified issue of its bonds, and the county auditor or auditors <br/>
<a id="pl.151.15"></a><var>151.15</var>shall reduce the levy for that year, herein provided for by that amount. The amount of <br/>
<a id="pl.151.16"></a><var>151.16</var>funds so certified shall be set aside by the corporation, and be used for no other purpose <br/>
<a id="pl.151.17"></a><var>151.17</var>than for the payment of the principal and interest of the bonds. All taxes hereunder shall <br/>
<a id="pl.151.18"></a><var>151.18</var>be collected and remitted to the corporation by the county treasurer or county treasurers, <br/>
<a id="pl.151.19"></a><var>151.19</var>in accordance with the provisions of law governing the collection of other taxes, and shall <br/>
<a id="pl.151.20"></a><var>151.20</var>be used solely for the payment of the bonds where due.<br/>
<a id="pl.151.21"></a><var>151.21</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.86.0"></a><a id="pl.151.22"></a><var>151.22</var>    Sec. 86. Minnesota Statutes 2012, section 477A.0124, subdivision 5, is amended to <br/>
<a id="pl.151.23"></a><var>151.23</var>read:<br/>
<a id="pl.151.24"></a><var>151.24</var>    Subd. 5. <b>County transition aid.</b> (a) For 2009 and each year thereafter, A county is <br/>
<a id="pl.151.25"></a><var>151.25</var>eligible to receive the transition aid it received in 2007.<br/>
<a id="pl.151.26"></a><var>151.26</var>    (b) In 2009 only, a county with (1) a 2006 population less than 30,000, and (2) <br/>
<a id="pl.151.27"></a><var>151.27</var>an average Part I crimes per capita greater than 3.9 percent based on factors used in <br/>
<a id="pl.151.28"></a><var>151.28</var>determining county program aid payable in 2008, shall receive $100,000.<br/>
<a id="pl.151.29"></a><var>151.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.87.0"></a><a id="pl.151.30"></a><var>151.30</var>    Sec. 87. Minnesota Statutes 2012, section 477A.014, subdivision 1, is amended to read:<br/>
<a id="pl.151.31"></a><var>151.31</var>    Subdivision 1. <b>Calculations and payments.</b> (a) The commissioner of revenue shall <br/>
<a id="pl.151.32"></a><var>151.32</var>make all necessary calculations and make payments pursuant to sections 
         <statute_ref>477A.013</statute_ref> and <br/>
<statute_ref><a id="pl.151.33"></a><var>151.33</var>477A.03
         </statute_ref> directly to the affected taxing authorities annually. In addition, the commissioner <br/>
<a id="pl.152.1"></a><var>152.1</var>shall notify the authorities of their aid amounts, as well as the computational factors used <br/>
<a id="pl.152.2"></a><var>152.2</var>in making the calculations for their authority, and those statewide total figures that are <br/>
<a id="pl.152.3"></a><var>152.3</var>pertinent, before August 1 of the year preceding the aid distribution year.<br/>
<a id="pl.152.4"></a><var>152.4</var>(b) For the purposes of this subdivision, aid is determined for a city or town based <br/>
<a id="pl.152.5"></a><var>152.5</var>on its city or town status as of June 30 of the year preceding the aid distribution year. If <br/>
<a id="pl.152.6"></a><var>152.6</var>the effective date for a municipal incorporation, consolidation, annexation, detachment, <br/>
<a id="pl.152.7"></a><var>152.7</var>dissolution, or township organization is on or before June 30 of the year preceding <br/>
<a id="pl.152.8"></a><var>152.8</var>the aid distribution year, such change in boundaries or form of government shall be <br/>
<a id="pl.152.9"></a><var>152.9</var>recognized for aid determinations for the aid distribution year. If the effective date for a <br/>
<a id="pl.152.10"></a><var>152.10</var>municipal incorporation, consolidation, annexation, detachment, dissolution, or township <br/>
<a id="pl.152.11"></a><var>152.11</var>organization is after June 30 of the year preceding the aid distribution year, such change in <br/>
<a id="pl.152.12"></a><var>152.12</var>boundaries or form of government shall not be recognized for aid determinations until <br/>
<a id="pl.152.13"></a><var>152.13</var>the following year.<br/>
<a id="pl.152.14"></a><var>152.14</var>(c) Changes in boundaries or form of government will only be recognized for the <br/>
<a id="pl.152.15"></a><var>152.15</var>purposes of this subdivision, to the extent that: (1) changes in market values are included <br/>
<a id="pl.152.16"></a><var>152.16</var>in market values reported by assessors to the commissioner, and changes in population,<br/>
<a id="pl.152.17"></a><var>152.17</var> and household size, and the road accidents factor are included in their respective <br/>
<a id="pl.152.18"></a><var>152.18</var>certifications to the commissioner as referenced in section 
         <statute_ref>477A.011</statute_ref>, or (2) an annexation <br/>
<a id="pl.152.19"></a><var>152.19</var>information report as provided in paragraph (d) is received by the commissioner on <br/>
<a id="pl.152.20"></a><var>152.20</var>or before July 15 of the aid calculation year. Revisions to estimates or data for use in <br/>
<a id="pl.152.21"></a><var>152.21</var>recognizing changes in boundaries or form of government are not effective for purposes <br/>
<a id="pl.152.22"></a><var>152.22</var>of this subdivision unless received by the commissioner on or before July 15 of the aid <br/>
<a id="pl.152.23"></a><var>152.23</var>calculation year. Clerical errors in the certification or use of estimates and data established <br/>
<a id="pl.152.24"></a><var>152.24</var>as of July 15 in the aid calculation year are subject to correction within the time periods <br/>
<a id="pl.152.25"></a><var>152.25</var>allowed under subdivision 3.<br/>
<a id="pl.152.26"></a><var>152.26</var>(d) In the case of an annexation, an annexation information report may be completed <br/>
<a id="pl.152.27"></a><var>152.27</var>by the annexing jurisdiction and submitted to the commissioner for purposes of this <br/>
<a id="pl.152.28"></a><var>152.28</var>subdivision if the net tax capacity of annexed area for the assessment year preceding the <br/>
<a id="pl.152.29"></a><var>152.29</var>effective date of the annexation exceeds five percent of the city's net tax capacity for the <br/>
<a id="pl.152.30"></a><var>152.30</var>same year. The form and contents of the annexation information report shall be prescribed <br/>
<a id="pl.152.31"></a><var>152.31</var>by the commissioner. The commissioner shall change the net tax capacity, the population, <br/>
<a id="pl.152.32"></a><var>152.32</var>the population decline, the commercial industrial percentage, and the transformed <br/>
<a id="pl.152.33"></a><var>152.33</var>population for the annexing jurisdiction only if the annexation information report provides <br/>
<a id="pl.152.34"></a><var>152.34</var>data the commissioner determines to be reliable for all of these factors used to compute city <br/>
<a id="pl.152.35"></a><var>152.35</var>revenue need for the annexing jurisdiction. The commissioner shall adjust the pre-1940 <br/>
<a id="pl.152.36"></a><var>152.36</var>housing percentage, the road accidents factor, and household size only if the entire area of <br/>
<a id="pl.153.1"></a><var>153.1</var>an existing city or town is annexed or consolidated and only if reliable data is available for <br/>
<a id="pl.153.2"></a><var>153.2</var>all of these factors used to compute city revenue need for the annexing jurisdiction.<br/>
<a id="pl.153.3"></a><var>153.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.88.0"></a><a id="pl.153.4"></a><var>153.4</var>    Sec. 88. Minnesota Statutes 2012, section 611.27, subdivision 13, is amended to read:<br/>
<a id="pl.153.5"></a><var>153.5</var>    Subd. 13. <b>Public defense services; correctional facility inmates.</b> All billings <br/>
<a id="pl.153.6"></a><var>153.6</var>for services rendered and ordered under subdivision 7 shall require the approval of the <br/>
<a id="pl.153.7"></a><var>153.7</var>chief district public defender before being forwarded on a monthly basis to the state <br/>
<a id="pl.153.8"></a><var>153.8</var>public defender. In cases where adequate representation cannot be provided by the district <br/>
<a id="pl.153.9"></a><var>153.9</var>public defender and where counsel has been appointed under a court order, the state <br/>
<a id="pl.153.10"></a><var>153.10</var>public defender shall forward to the commissioner of management and budget all billings <br/>
<a id="pl.153.11"></a><var>153.11</var>for services rendered under the court order. The commissioner shall pay for services <br/>
<a id="pl.153.12"></a><var>153.12</var>from county program aid retained by the commissioner of revenue for that purpose under <br/>
<a id="pl.153.13"></a><var>153.13</var>section 
         <statute_ref>477A.0124, subdivision 1</statute_ref>, clause (4), or
<statute_ref>477A.03, subdivision 2b</statute_ref>, paragraph (a).<br/>
<a id="pl.153.14"></a><var>153.14</var>    The costs of appointed counsel and associated services in cases arising from new <br/>
<a id="pl.153.15"></a><var>153.15</var>criminal charges brought against indigent inmates who are incarcerated in a Minnesota <br/>
<a id="pl.153.16"></a><var>153.16</var>state correctional facility are the responsibility of the state Board of Public Defense. In <br/>
<a id="pl.153.17"></a><var>153.17</var>such cases the state public defender may follow the procedures outlined in this section for <br/>
<a id="pl.153.18"></a><var>153.18</var>obtaining court-ordered counsel.<br/>
<a id="pl.153.19"></a><var>153.19</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.89.0"></a><a id="pl.153.20"></a><var>153.20</var>    Sec. 89. Minnesota Statutes 2012, section 611.27, subdivision 15, is amended to read:<br/>
<a id="pl.153.21"></a><var>153.21</var>    Subd. 15. <b>Costs of transcripts.</b> In appeal cases and postconviction cases where <br/>
<a id="pl.153.22"></a><var>153.22</var>the appellate public defender's office does not have sufficient funds to pay for transcripts <br/>
<a id="pl.153.23"></a><var>153.23</var>and other necessary expenses because it has spent or committed all of the transcript <br/>
<a id="pl.153.24"></a><var>153.24</var>funds in its annual budget, the state public defender may forward to the commissioner <br/>
<a id="pl.153.25"></a><var>153.25</var>of management and budget all billings for transcripts and other necessary expenses. The <br/>
<a id="pl.153.26"></a><var>153.26</var>commissioner shall pay for these transcripts and other necessary expenses from county <br/>
<a id="pl.153.27"></a><var>153.27</var>program aid retained by the commissioner of revenue for that purpose under section <br/>
<a id="pl.153.28"></a><var>153.28</var><statute_ref>477A.0124, subdivision 1</statute_ref>, clause (4), or
<statute_ref>477A.03, subdivision 2b</statute_ref>, paragraph (a).<br/>
<a id="pl.153.29"></a><var>153.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.7.90.0"></a><a id="pl.153.30"></a><var>153.30</var>    Sec. 90. <b>REVISOR'S INSTRUCTION.</b><br/>
<a id="pl.153.31"></a><var>153.31</var>The revisor of statutes shall make all necessary cross-reference changes in <br/>
<a id="pl.153.32"></a><var>153.32</var>Minnesota Statutes and Minnesota Rules consistent with the amendments and repealers in <br/>
<a id="pl.154.1"></a><var>154.1</var>this act. The revisor can make changes to sentence structure to preserve the meaning of <br/>
<a id="pl.154.2"></a><var>154.2</var>the text. The revisor shall make other changes in chapter titles; section, subdivision, part, <br/>
<a id="pl.154.3"></a><var>154.3</var>and subpart headnotes; and in other terminology necessary as a result of the enactment of <br/>
<a id="pl.154.4"></a><var>154.4</var>this act. The Department of Revenue shall assist in making these corrections.<br/>
<br/>
<a id="bill.7.91.0"></a><a id="pl.154.5"></a><var>154.5</var>    Sec. 91. <b> REPEALER.</b><br/>
<a id="pl.154.6"></a><var>154.6</var>(a) Minnesota Statutes 2012, sections 290.01, subdivision 19e; 290.0674, <br/>
<a id="pl.154.7"></a><var>154.7</var>subdivision 3; and 290.33, and Minnesota Rules, part 8007.0200, are repealed.<br/>
<a id="pl.154.8"></a><var>154.8</var>(b) Minnesota Statutes 2012, sections 16D.02, subdivisions 5 and 8; 16D.11, <br/>
<a id="pl.154.9"></a><var>154.9</var>subdivision 2; 270C.131; 270C.53; 270C.991, subdivision 4; 272.02, subdivisions 1, 1a, <br/>
<a id="pl.154.10"></a><var>154.10</var>48, 51, 53, 67, 72, and 82; 272.027, subdivision 2; 272.031; 273.015, subdivision 1; <br/>
<a id="pl.154.11"></a><var>154.11</var>273.03, subdivision 3; 273.075; 273.1383; 273.1386; 273.80; 275.77; 279.32; 281.173, <br/>
<a id="pl.154.12"></a><var>154.12</var>subdivision 8; 281.174, subdivision 8; 281.328; 282.10; 282.23; 287.20, subdivision 4; <br/>
<a id="pl.154.13"></a><var>154.13</var>287.27, subdivision 2; 290.01, subdivisions 4b and 20e; 295.52, subdivision 7; 297A.71, <br/>
<a id="pl.154.14"></a><var>154.14</var>subdivisions 4, 5, 7, 10, 17, 18, 20, and 32; 297F.08, subdivision 11; 297H.10, subdivision <br/>
<a id="pl.154.15"></a><var>154.15</var>2; 469.174, subdivision 10c; 469.175, subdivision 2b; 469.176, subdivision 1i; 469.177, <br/>
<a id="pl.154.16"></a><var>154.16</var>subdivision 10; 477A.0124, subdivisions 1 and 6; and 505.173, and Minnesota Rules, <br/>
<a id="pl.154.17"></a><var>154.17</var>parts 8002.0200, subpart 8; 8100.0800; 8130.7500, subpart 7; 8130.8900, subpart 3; and <br/>
<a id="pl.154.18"></a><var>154.18</var>8130.9500, subparts 1, 1a, 2, 3, 4, and 5, are repealed.<br/>
<a id="pl.154.19"></a><var>154.19</var>(c) Minnesota Statutes 2012, section 3.192, is repealed.<br/>
<a id="pl.154.20"></a><var>154.20</var>(d) Minnesota Statutes 2012, section 469.1764, and Minnesota Statutes 2013 <br/>
<a id="pl.154.21"></a><var>154.21</var>Supplement, section 469.340, subdivision 4, are repealed.<br/>
<a id="pl.154.22"></a><var>154.22</var>(e) Minnesota Statutes 2012, sections 289A.56, subdivision 7; 290.06, subdivisions <br/>
<a id="pl.154.23"></a><var>154.23</var>30 and 31; 297A.68, subdivision 38; 469.330; 469.331; 469.332; 469.333; 469.334; <br/>
<a id="pl.154.24"></a><var>154.24</var>469.335; 469.336; 469.337; 469.338; 469.339; 469.340, subdivisions 1, 2, 3, and 5; and <br/>
<a id="pl.154.25"></a><var>154.25</var>469.341, are repealed.<br/>
<a id="pl.154.26"></a><var>154.26</var><b>EFFECTIVE DATE.</b>Paragraph (a) is effective for taxable years beginning after <br/>
<a id="pl.154.27"></a><var>154.27</var>December 31, 2013.<br/>
<a id="pl.154.28"></a><var>154.28</var>Paragraph (b) is effective the day following final enactment.<br/>
<a id="pl.154.29"></a><var>154.29</var>Paragraph (c) is effective retroactively from April 1, 2014.<br/>
<a id="pl.154.30"></a><var>154.30</var>Paragraph (d) is effective the day following final enactment and any remaining <br/>
<a id="pl.154.31"></a><var>154.31</var>unexpended tax increments from a district subject to Minnesota Statutes, section 469.1764, <br/>
<a id="pl.154.32"></a><var>154.32</var>must be distributed as excess increments to the city, county, and school district under <br/>
<a id="pl.154.33"></a><var>154.33</var>Minnesota Statutes, section 469.176, subdivision 2, paragraph (c), clause (4), on or before <br/>
<a id="pl.154.34"></a><var>154.34</var>December 31, 2014.<br/>
<a id="pl.154.35"></a><var>154.35</var>Paragraph (e) is effective January 1, 2016.<br/>
<br/>
<a id="bill.8.0.0"></a>

<a id="bill.8.1.0"></a><a id="pl.155.3"></a><var>155.3</var>    Section 1. Minnesota Statutes 2012, section 270.87, is amended to read:<br/>
<a id="pl.155.4"></a><var>155.4</var><b>270.87 CERTIFICATION TO COUNTY ASSESSORS.</b><br/>
<a id="pl.155.5"></a><var>155.5</var>After making an annual determination of the equalized fair market value of the <br/>
<a id="pl.155.6"></a><var>155.6</var>operating property of each company in each of the respective counties, and in the taxing <br/>
<a id="pl.155.7"></a><var>155.7</var>districts therein, the commissioner shall certify the equalized fair market value to the <br/>
<a id="pl.155.8"></a><var>155.8</var>county assessor on or before June 30. The equalized fair market value of the operating <br/>
<a id="pl.155.9"></a><var>155.9</var>property of the railroad company in the county and the taxing districts therein is the value <br/>
<a id="pl.155.10"></a><var>155.10</var>on which taxes must be levied and collected in the same manner as on the commercial and <br/>
<a id="pl.155.11"></a><var>155.11</var>industrial property of such county and the taxing districts therein. If the commissioner <br/>
<a id="pl.155.12"></a><var>155.12</var>determines that the equalized fair market value certified on or before June 30 is in error, <br/>
<a id="pl.155.13"></a><var>155.13</var>the commissioner may issue a corrected certification on or before August 31. The <br/>
<a id="pl.155.14"></a><var>155.14</var>commissioner may correct errors that are merely clerical in nature until December 31.<br/>
<a id="pl.155.15"></a><var>155.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.8.2.0"></a><a id="pl.155.16"></a><var>155.16</var>    Sec. 2. Minnesota Statutes 2012, section 272.029, subdivision 4a, is amended to read:<br/>
<a id="pl.155.17"></a><var>155.17</var>    Subd. 4a. <b>Correction of errors.</b> If the commissioner of revenue determines that <br/>
<a id="pl.155.18"></a><var>155.18</var>the amount of production tax has been erroneously calculated, the commissioner may <br/>
<a id="pl.155.19"></a><var>155.19</var>correct the error. The commissioner must notify the owner of the wind energy conversion <br/>
<a id="pl.155.20"></a><var>155.20</var>system of the correction and the amount of tax due to each county and must certify the <br/>
<a id="pl.155.21"></a><var>155.21</var>correction to the county auditor of each county in which the system is located on or before <br/>
<a id="pl.155.22"></a><var>155.22</var>April 1 of the current year. The commissioner may correct errors that are merely clerical <br/>
<a id="pl.155.23"></a><var>155.23</var>in nature until December 31.<br/>
<a id="pl.155.24"></a><var>155.24</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.8.3.0"></a><a id="pl.155.25"></a><var>155.25</var>    Sec. 3. Minnesota Statutes 2012, section 273.01, is amended to read:<br/>
<a id="pl.155.26"></a><var>155.26</var><b>273.01 LISTING AND ASSESSMENT, TIME.</b><br/>
<a id="pl.155.27"></a><var>155.27</var>All real property subject to taxation shall be listed and at least one-fifth of the parcels <br/>
<a id="pl.155.28"></a><var>155.28</var>listed shall be appraised each year with reference to their value on January 2 preceding the <br/>
<a id="pl.155.29"></a><var>155.29</var>assessment so that each parcel shall be reappraised at maximum intervals of five years. All <br/>
<a id="pl.155.30"></a><var>155.30</var>real property becoming taxable in any year shall be listed with reference to its value on <br/>
<a id="pl.155.31"></a><var>155.31</var>January 2 of that year. Except as provided in this section and section 
         <statute_ref>274.01, subdivision <br/>
<a id="pl.155.32"></a><var>155.32</var>1
         </statute_ref>, all real property assessments shall be completed two weeks prior to the date scheduled <br/>
<a id="pl.156.1"></a><var>156.1</var>for the local board of review or equalization. No changes in valuation or classification <br/>
<a id="pl.156.2"></a><var>156.2</var>which are intended to correct errors in judgment by the county assessor may be made by <br/>
<a id="pl.156.3"></a><var>156.3</var>the county assessor after the board of review or the county board of equalization has <br/>
<a id="pl.156.4"></a><var>156.4</var>adjourned; however, corrections of errors for real or personal property that are merely <br/>
<a id="pl.156.5"></a><var>156.5</var>clerical in nature or changes that extend homestead treatment to property are permitted <br/>
<a id="pl.156.6"></a><var>156.6</var>after adjournment until the tax extension date for that assessment year. Any changes made <br/>
<a id="pl.156.7"></a><var>156.7</var>by the assessor after adjournment must be fully documented and maintained in a file in the <br/>
<a id="pl.156.8"></a><var>156.8</var>assessor's office and shall be available for review by any person. A copy of any changes <br/>
<a id="pl.156.9"></a><var>156.9</var>made during this period shall be sent to the county board no later than December 31 of <br/>
<a id="pl.156.10"></a><var>156.10</var>the assessment year. In the event a valuation and classification is not placed on any real <br/>
<a id="pl.156.11"></a><var>156.11</var>property by the dates scheduled for the local board of review or equalization the valuation <br/>
<a id="pl.156.12"></a><var>156.12</var>and classification determined in the preceding assessment shall be continued in effect and <br/>
<a id="pl.156.13"></a><var>156.13</var>the provisions of section 
         <statute_ref>273.13</statute_ref> shall, in such case, not be applicable, except with respect <br/>
<a id="pl.156.14"></a><var>156.14</var>to real estate which has been constructed since the previous assessment. Real property <br/>
<a id="pl.156.15"></a><var>156.15</var>containing iron ore, the fee to which is owned by the state of Minnesota, shall, if leased by <br/>
<a id="pl.156.16"></a><var>156.16</var>the state after January 2 in any year, be subject to assessment for that year on the value of <br/>
<a id="pl.156.17"></a><var>156.17</var>any iron ore removed under said lease prior to January 2 of the following year. Personal <br/>
<a id="pl.156.18"></a><var>156.18</var>property subject to taxation shall be listed and assessed annually with reference to its value <br/>
<a id="pl.156.19"></a><var>156.19</var>on January 2; and, if acquired on that day, shall be listed by or for the person acquiring it.<br/>
<a id="pl.156.20"></a><var>156.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.8.4.0"></a><a id="pl.156.21"></a><var>156.21</var>    Sec. 4. Minnesota Statutes 2012, section 273.13, subdivision 22, is amended to read:<br/>
<a id="pl.156.22"></a><var>156.22</var>    Subd. 22. <b>Class 1.</b> (a) Except as provided in subdivision 23 and in paragraphs (b) <br/>
<a id="pl.156.23"></a><var>156.23</var>and (c), real estate which is residential and used for homestead purposes is class 1a. In the <br/>
<a id="pl.156.24"></a><var>156.24</var>case of a duplex or triplex in which one of the units is used for homestead purposes, the <br/>
<a id="pl.156.25"></a><var>156.25</var>entire property is deemed to be used for homestead purposes. The market value of class 1a <br/>
<a id="pl.156.26"></a><var>156.26</var>property must be determined based upon the value of the house, garage, and land.<br/>
<a id="pl.156.27"></a><var>156.27</var>    The first $500,000 of market value of class 1a property has a net class classification<br/>
<a id="pl.156.28"></a><var>156.28</var> rate of one percent of its market value; and the market value of class 1a property that <br/>
<a id="pl.156.29"></a><var>156.29</var>exceeds $500,000 has a class classification rate of 1.25 percent of its market value.<br/>
<a id="pl.156.30"></a><var>156.30</var>    (b) Class 1b property includes homestead real estate or homestead manufactured <br/>
<a id="pl.156.31"></a><var>156.31</var>homes used for the purposes of a homestead by:<br/>
<a id="pl.156.32"></a><var>156.32</var>    (1) any person who is blind as defined in section 
         <statute_ref>256D.35</statute_ref>, or the blind person and <br/>
<a id="pl.156.33"></a><var>156.33</var>the blind person's spouse;<br/>
<a id="pl.156.34"></a><var>156.34</var>    (2) any person who is permanently and totally disabled or by the disabled person and <br/>
<a id="pl.156.35"></a><var>156.35</var>the disabled person's spouse; or<br/>
<a id="pl.157.1"></a><var>157.1</var>    (3) the surviving spouse of a permanently and totally disabled veteran homesteading <br/>
<a id="pl.157.2"></a><var>157.2</var>a property classified under this paragraph for taxes payable in 2008.<br/>
<a id="pl.157.3"></a><var>157.3</var>    Property is classified and assessed under clause (2) only if the government agency or <br/>
<a id="pl.157.4"></a><var>157.4</var>income-providing source certifies, upon the request of the homestead occupant, that the <br/>
<a id="pl.157.5"></a><var>157.5</var>homestead occupant satisfies the disability requirements of this paragraph, and that the <br/>
<a id="pl.157.6"></a><var>157.6</var>property is not eligible for the valuation exclusion under subdivision 34.<br/>
<a id="pl.157.7"></a><var>157.7</var>    Property is classified and assessed under paragraph (b) only if the commissioner <br/>
<a id="pl.157.8"></a><var>157.8</var>of revenue or the county assessor certifies that the homestead occupant satisfies the <br/>
<a id="pl.157.9"></a><var>157.9</var>requirements of this paragraph.<br/>
<a id="pl.157.10"></a><var>157.10</var>    Permanently and totally disabled for the purpose of this subdivision means a <br/>
<a id="pl.157.11"></a><var>157.11</var>condition which is permanent in nature and totally incapacitates the person from working <br/>
<a id="pl.157.12"></a><var>157.12</var>at an occupation which brings the person an income. The first $50,000 market value of <br/>
<a id="pl.157.13"></a><var>157.13</var>class 1b property has a net class classification rate of .45 percent of its market value. The <br/>
<a id="pl.157.14"></a><var>157.14</var>remaining market value of class 1b property has a class classification rate using the rates <br/>
<a id="pl.157.15"></a><var>157.15</var>for class 1a or class 2a property, whichever is appropriate, of similar market value.<br/>
<a id="pl.157.16"></a><var>157.16</var>    (c) Class 1c property is commercial use real and personal property that abuts public <br/>
<a id="pl.157.17"></a><var>157.17</var>water as defined in section 
         <statute_ref>103G.005, subdivision 15</statute_ref>, and is devoted to temporary and <br/>
<a id="pl.157.18"></a><var>157.18</var>seasonal residential occupancy for recreational purposes but not devoted to commercial <br/>
<a id="pl.157.19"></a><var>157.19</var>purposes for more than 250 days in the year preceding the year of assessment, and that <br/>
<a id="pl.157.20"></a><var>157.20</var>includes a portion used as a homestead by the owner, which includes a dwelling occupied <br/>
<a id="pl.157.21"></a><var>157.21</var>as a homestead by a shareholder of a corporation that owns the resort, a partner in a <br/>
<a id="pl.157.22"></a><var>157.22</var>partnership that owns the resort, or a member of a limited liability company that owns the <br/>
<a id="pl.157.23"></a><var>157.23</var>resort even if the title to the homestead is held by the corporation, partnership, or limited <br/>
<a id="pl.157.24"></a><var>157.24</var>liability company. For purposes of this paragraph, property is devoted to a commercial <br/>
<a id="pl.157.25"></a><var>157.25</var>purpose on a specific day if any portion of the property, excluding the portion used <br/>
<a id="pl.157.26"></a><var>157.26</var>exclusively as a homestead, is used for residential occupancy and a fee is charged for <br/>
<a id="pl.157.27"></a><var>157.27</var>residential occupancy. Class 1c property must contain three or more rental units. A "rental <br/>
<a id="pl.157.28"></a><var>157.28</var>unit" is defined as a cabin, condominium, townhouse, sleeping room, or individual camping <br/>
<a id="pl.157.29"></a><var>157.29</var>site equipped with water and electrical hookups for recreational vehicles. Class 1c property <br/>
<a id="pl.157.30"></a><var>157.30</var>must provide recreational activities such as the rental of ice fishing houses, boats and <br/>
<a id="pl.157.31"></a><var>157.31</var>motors, snowmobiles, downhill or cross-country ski equipment; provide marina services, <br/>
<a id="pl.157.32"></a><var>157.32</var>launch services, or guide services; or sell bait and fishing tackle. Any unit in which the <br/>
<a id="pl.157.33"></a><var>157.33</var>right to use the property is transferred to an individual or entity by deeded interest, or the <br/>
<a id="pl.157.34"></a><var>157.34</var>sale of shares or stock, no longer qualifies for class 1c even though it may remain available <br/>
<a id="pl.157.35"></a><var>157.35</var>for rent. A camping pad offered for rent by a property that otherwise qualifies for class 1c <br/>
<a id="pl.157.36"></a><var>157.36</var>is also class 1c, regardless of the term of the rental agreement, as long as the use of the <br/>
<a id="pl.158.1"></a><var>158.1</var>camping pad does not exceed 250 days. If the same owner owns two separate parcels that <br/>
<a id="pl.158.2"></a><var>158.2</var>are located in the same township, and one of those properties is classified as a class 1c <br/>
<a id="pl.158.3"></a><var>158.3</var>property and the other would be eligible to be classified as a class 1c property if it was <br/>
<a id="pl.158.4"></a><var>158.4</var>used as the homestead of the owner, both properties will be assessed as a single class 1c <br/>
<a id="pl.158.5"></a><var>158.5</var>property; for purposes of this sentence, properties are deemed to be owned by the same <br/>
<a id="pl.158.6"></a><var>158.6</var>owner if each of them is owned by a limited liability company, and both limited liability <br/>
<a id="pl.158.7"></a><var>158.7</var>companies have the same membership. The portion of the property used as a homestead <br/>
<a id="pl.158.8"></a><var>158.8</var>is class 1a property under paragraph (a). The remainder of the property is classified as <br/>
<a id="pl.158.9"></a><var>158.9</var>follows: the first $600,000 of market value is tier I, the next $1,700,000 of market value is <br/>
<a id="pl.158.10"></a><var>158.10</var>tier II, and any remaining market value is tier III. The class classification rates for class 1c <br/>
<a id="pl.158.11"></a><var>158.11</var>are: tier I, 0.50 percent; tier II, 1.0 percent; and tier III, 1.25 percent. Owners of real and <br/>
<a id="pl.158.12"></a><var>158.12</var>personal property devoted to temporary and seasonal residential occupancy for recreation <br/>
<a id="pl.158.13"></a><var>158.13</var>purposes in which all or a portion of the property was devoted to commercial purposes for <br/>
<a id="pl.158.14"></a><var>158.14</var>not more than 250 days in the year preceding the year of assessment desiring classification <br/>
<a id="pl.158.15"></a><var>158.15</var>as class 1c, must submit a declaration to the assessor designating the cabins or units <br/>
<a id="pl.158.16"></a><var>158.16</var>occupied for 250 days or less in the year preceding the year of assessment by January 15 of <br/>
<a id="pl.158.17"></a><var>158.17</var>the assessment year. Those cabins or units and a proportionate share of the land on which <br/>
<a id="pl.158.18"></a><var>158.18</var>they are located must be designated as class 1c as otherwise provided. The remainder of <br/>
<a id="pl.158.19"></a><var>158.19</var>the cabins or units and a proportionate share of the land on which they are located must be <br/>
<a id="pl.158.20"></a><var>158.20</var>designated as class 3a commercial. The owner of property desiring designation as class <br/>
<a id="pl.158.21"></a><var>158.21</var>1c property must provide guest registers or other records demonstrating that the units for <br/>
<a id="pl.158.22"></a><var>158.22</var>which class 1c designation is sought were not occupied for more than 250 days in the <br/>
<a id="pl.158.23"></a><var>158.23</var>year preceding the assessment if so requested. The portion of a property operated as a <br/>
<a id="pl.158.24"></a><var>158.24</var>(1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5) other <br/>
<a id="pl.158.25"></a><var>158.25</var>nonresidential facility operated on a commercial basis not directly related to temporary <br/>
<a id="pl.158.26"></a><var>158.26</var>and seasonal residential occupancy for recreation purposes does not qualify for class 1c.<br/>
<a id="pl.158.27"></a><var>158.27</var>    (d) Class 1d property includes structures that meet all of the following criteria:<br/>
<a id="pl.158.28"></a><var>158.28</var>    (1) the structure is located on property that is classified as agricultural property under <br/>
<a id="pl.158.29"></a><var>158.29</var>section 
         <statute_ref>273.13, subdivision 23</statute_ref>;<br/>
<a id="pl.158.30"></a><var>158.30</var>    (2) the structure is occupied exclusively by seasonal farm workers during the time <br/>
<a id="pl.158.31"></a><var>158.31</var>when they work on that farm, and the occupants are not charged rent for the privilege of <br/>
<a id="pl.158.32"></a><var>158.32</var>occupying the property, provided that use of the structure for storage of farm equipment <br/>
<a id="pl.158.33"></a><var>158.33</var>and produce does not disqualify the property from classification under this paragraph;<br/>
<a id="pl.158.34"></a><var>158.34</var>    (3) the structure meets all applicable health and safety requirements for the <br/>
<a id="pl.158.35"></a><var>158.35</var>appropriate season; and<br/>
<a id="pl.159.1"></a><var>159.1</var>    (4) the structure is not salable as residential property because it does not comply <br/>
<a id="pl.159.2"></a><var>159.2</var>with local ordinances relating to location in relation to streets or roads.<br/>
<a id="pl.159.3"></a><var>159.3</var>    The market value of class 1d property has the same class rates as class 1a property <br/>
<a id="pl.159.4"></a><var>159.4</var>under paragraph (a) a classification rate of one percent on the first $500,000 of market <br/>
<a id="pl.159.5"></a><var>159.5</var>value and a classification rate of 1.25 percent on the market value that exceeds $500,000.<br/>
<a id="pl.159.6"></a><var>159.6</var><b>EFFECTIVE DATE.</b>This section is effective beginning with assessment year 2014.<br/>
<br/>
<a id="bill.8.5.0"></a><a id="pl.159.7"></a><var>159.7</var>    Sec. 5. Minnesota Statutes 2013 Supplement, section 273.13, subdivision 25, is <br/>
<a id="pl.159.8"></a><var>159.8</var>amended to read:<br/>
<a id="pl.159.9"></a><var>159.9</var>    Subd. 25. <b>Class 4.</b> (a) Class 4a is residential real estate containing four or more <br/>
<a id="pl.159.10"></a><var>159.10</var>units and used or held for use by the owner or by the tenants or lessees of the owner <br/>
<a id="pl.159.11"></a><var>159.11</var>as a residence for rental periods of 30 days or more, excluding property qualifying for <br/>
<a id="pl.159.12"></a><var>159.12</var>class 4d. Class 4a also includes hospitals licensed under sections 
         <statute_ref>144.50</statute_ref> to 
         <statute_ref>144.56</statute_ref>, other <br/>
<a id="pl.159.13"></a><var>159.13</var>than hospitals exempt under section 
         <statute_ref>272.02</statute_ref>, and contiguous property used for hospital <br/>
<a id="pl.159.14"></a><var>159.14</var>purposes, without regard to whether the property has been platted or subdivided. The <br/>
<a id="pl.159.15"></a><var>159.15</var>market value of class 4a property has a class classification rate of 1.25 percent.<br/>
<a id="pl.159.16"></a><var>159.16</var>    (b) Class 4b includes:<br/>
<a id="pl.159.17"></a><var>159.17</var>    (1) residential real estate containing less than four units that does not qualify as class <br/>
<a id="pl.159.18"></a><var>159.18</var>4bb, other than seasonal residential recreational property;<br/>
<a id="pl.159.19"></a><var>159.19</var>    (2) manufactured homes not classified under any other provision;<br/>
<a id="pl.159.20"></a><var>159.20</var>    (3) a dwelling, garage, and surrounding one acre of property on a nonhomestead <br/>
<a id="pl.159.21"></a><var>159.21</var>farm classified under subdivision 23, paragraph (b) containing two or three units; and<br/>
<a id="pl.159.22"></a><var>159.22</var>    (4) unimproved property that is classified residential as determined under subdivision <br/>
<a id="pl.159.23"></a><var>159.23</var>33.<br/>
<a id="pl.159.24"></a><var>159.24</var>    The market value of class 4b property has a class classification rate of 1.25 percent.<br/>
<a id="pl.159.25"></a><var>159.25</var>    (c) Class 4bb includes nonhomestead residential real estate containing one unit, <br/>
<a id="pl.159.26"></a><var>159.26</var>other than seasonal residential recreational property, and a single family dwelling, garage, <br/>
<a id="pl.159.27"></a><var>159.27</var>and surrounding one acre of property on a nonhomestead farm classified under subdivision <br/>
<a id="pl.159.28"></a><var>159.28</var>23, paragraph (b).<br/>
<a id="pl.159.29"></a><var>159.29</var>    Class 4bb property has the same class rates as class 1a property under subdivision 22<br/>
<a id="pl.159.30"></a><var>159.30</var> a classification rate of one percent on the first $500,000 of market value and a classification <br/>
<a id="pl.159.31"></a><var>159.31</var>rate of 1.25 percent on the market value that exceeds $500,000.<br/>
<a id="pl.159.32"></a><var>159.32</var>    Property that has been classified as seasonal residential recreational property at <br/>
<a id="pl.159.33"></a><var>159.33</var>any time during which it has been owned by the current owner or spouse of the current <br/>
<a id="pl.159.34"></a><var>159.34</var>owner does not qualify for class 4bb.<br/>
<a id="pl.159.35"></a><var>159.35</var>    (d) Class 4c property includes:<br/>
<a id="pl.160.1"></a><var>160.1</var>    (1) except as provided in subdivision 22, paragraph (c), real and personal property <br/>
<a id="pl.160.2"></a><var>160.2</var>devoted to commercial temporary and seasonal residential occupancy for recreation <br/>
<a id="pl.160.3"></a><var>160.3</var>purposes, for not more than 250 days in the year preceding the year of assessment. For <br/>
<a id="pl.160.4"></a><var>160.4</var>purposes of this clause, property is devoted to a commercial purpose on a specific day <br/>
<a id="pl.160.5"></a><var>160.5</var>if any portion of the property is used for residential occupancy, and a fee is charged for <br/>
<a id="pl.160.6"></a><var>160.6</var>residential occupancy. Class 4c property under this clause must contain three or more <br/>
<a id="pl.160.7"></a><var>160.7</var>rental units. A "rental unit" is defined as a cabin, condominium, townhouse, sleeping room, <br/>
<a id="pl.160.8"></a><var>160.8</var>or individual camping site equipped with water and electrical hookups for recreational <br/>
<a id="pl.160.9"></a><var>160.9</var>vehicles. A camping pad offered for rent by a property that otherwise qualifies for class <br/>
<a id="pl.160.10"></a><var>160.10</var>4c under this clause is also class 4c under this clause regardless of the term of the rental <br/>
<a id="pl.160.11"></a><var>160.11</var>agreement, as long as the use of the camping pad does not exceed 250 days. In order for a <br/>
<a id="pl.160.12"></a><var>160.12</var>property to be classified under this clause, either (i) the business located on the property <br/>
<a id="pl.160.13"></a><var>160.13</var>must provide recreational activities, at least 40 percent of the annual gross lodging receipts <br/>
<a id="pl.160.14"></a><var>160.14</var>related to the property must be from business conducted during 90 consecutive days, <br/>
<a id="pl.160.15"></a><var>160.15</var>and either (A) at least 60 percent of all paid bookings by lodging guests during the year <br/>
<a id="pl.160.16"></a><var>160.16</var>must be for periods of at least two consecutive nights; or (B) at least 20 percent of the <br/>
<a id="pl.160.17"></a><var>160.17</var>annual gross receipts must be from charges for providing recreational activities, or (ii) the <br/>
<a id="pl.160.18"></a><var>160.18</var>business must contain 20 or fewer rental units, and must be located in a township or a city <br/>
<a id="pl.160.19"></a><var>160.19</var>with a population of 2,500 or less located outside the metropolitan area, as defined under <br/>
<a id="pl.160.20"></a><var>160.20</var>section 
         <statute_ref>473.121</statute_ref>, subdivision 2, that contains a portion of a state trail administered by the <br/>
<a id="pl.160.21"></a><var>160.21</var>Department of Natural Resources. For purposes of item (i)(A), a paid booking of five or <br/>
<a id="pl.160.22"></a><var>160.22</var>more nights shall be counted as two bookings. Class 4c property also includes commercial <br/>
<a id="pl.160.23"></a><var>160.23</var>use real property used exclusively for recreational purposes in conjunction with other class <br/>
<a id="pl.160.24"></a><var>160.24</var>4c property classified under this clause and devoted to temporary and seasonal residential <br/>
<a id="pl.160.25"></a><var>160.25</var>occupancy for recreational purposes, up to a total of two acres, provided the property is <br/>
<a id="pl.160.26"></a><var>160.26</var>not devoted to commercial recreational use for more than 250 days in the year preceding <br/>
<a id="pl.160.27"></a><var>160.27</var>the year of assessment and is located within two miles of the class 4c property with which <br/>
<a id="pl.160.28"></a><var>160.28</var>it is used. In order for a property to qualify for classification under this clause, the owner <br/>
<a id="pl.160.29"></a><var>160.29</var>must submit a declaration to the assessor designating the cabins or units occupied for 250 <br/>
<a id="pl.160.30"></a><var>160.30</var>days or less in the year preceding the year of assessment by January 15 of the assessment <br/>
<a id="pl.160.31"></a><var>160.31</var>year. Those cabins or units and a proportionate share of the land on which they are located <br/>
<a id="pl.160.32"></a><var>160.32</var>must be designated class 4c under this clause as otherwise provided. The remainder of the <br/>
<a id="pl.160.33"></a><var>160.33</var>cabins or units and a proportionate share of the land on which they are located will be <br/>
<a id="pl.160.34"></a><var>160.34</var>designated as class 3a. The owner of property desiring designation as class 4c property <br/>
<a id="pl.160.35"></a><var>160.35</var>under this clause must provide guest registers or other records demonstrating that the units <br/>
<a id="pl.160.36"></a><var>160.36</var>for which class 4c designation is sought were not occupied for more than 250 days in the <br/>
<a id="pl.161.1"></a><var>161.1</var>year preceding the assessment if so requested. The portion of a property operated as a <br/>
<a id="pl.161.2"></a><var>161.2</var>(1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5) other <br/>
<a id="pl.161.3"></a><var>161.3</var>nonresidential facility operated on a commercial basis not directly related to temporary and <br/>
<a id="pl.161.4"></a><var>161.4</var>seasonal residential occupancy for recreation purposes does not qualify for class 4c. For <br/>
<a id="pl.161.5"></a><var>161.5</var>the purposes of this paragraph, "recreational activities" means renting ice fishing houses, <br/>
<a id="pl.161.6"></a><var>161.6</var>boats and motors, snowmobiles, downhill or cross-country ski equipment; providing <br/>
<a id="pl.161.7"></a><var>161.7</var>marina services, launch services, or guide services; or selling bait and fishing tackle;<br/>
<a id="pl.161.8"></a><var>161.8</var>    (2) qualified property used as a golf course if:<br/>
<a id="pl.161.9"></a><var>161.9</var>    (i) it is open to the public on a daily fee basis. It may charge membership fees or <br/>
<a id="pl.161.10"></a><var>161.10</var>dues, but a membership fee may not be required in order to use the property for golfing, <br/>
<a id="pl.161.11"></a><var>161.11</var>and its green fees for golfing must be comparable to green fees typically charged by <br/>
<a id="pl.161.12"></a><var>161.12</var>municipal courses; and<br/>
<a id="pl.161.13"></a><var>161.13</var>    (ii) it meets the requirements of section 
         <statute_ref>273.112, subdivision 3</statute_ref>, paragraph (d).<br/>
<a id="pl.161.14"></a><var>161.14</var>    A structure used as a clubhouse, restaurant, or place of refreshment in conjunction <br/>
<a id="pl.161.15"></a><var>161.15</var>with the golf course is classified as class 3a property;<br/>
<a id="pl.161.16"></a><var>161.16</var>    (3) real property up to a maximum of three acres of land owned and used by a <br/>
<a id="pl.161.17"></a><var>161.17</var>nonprofit community service oriented organization and not used for residential purposes <br/>
<a id="pl.161.18"></a><var>161.18</var>on either a temporary or permanent basis, provided that:<br/>
<a id="pl.161.19"></a><var>161.19</var>    (i) the property is not used for a revenue-producing activity for more than six days <br/>
<a id="pl.161.20"></a><var>161.20</var>in the calendar year preceding the year of assessment; or<br/>
<a id="pl.161.21"></a><var>161.21</var>    (ii) the organization makes annual charitable contributions and donations at least <br/>
<a id="pl.161.22"></a><var>161.22</var>equal to the property's previous year's property taxes and the property is allowed to be <br/>
<a id="pl.161.23"></a><var>161.23</var>used for public and community meetings or events for no charge, as appropriate to the <br/>
<a id="pl.161.24"></a><var>161.24</var>size of the facility.<br/>
<a id="pl.161.25"></a><var>161.25</var>    For purposes of this clause:<br/>
<a id="pl.161.26"></a><var>161.26</var>    (A) "charitable contributions and donations" has the same meaning as lawful <br/>
<a id="pl.161.27"></a><var>161.27</var>gambling purposes under section 
         <statute_ref>349.12, subdivision 25</statute_ref>, excluding those purposes <br/>
<a id="pl.161.28"></a><var>161.28</var>relating to the payment of taxes, assessments, fees, auditing costs, and utility payments;<br/>
<a id="pl.161.29"></a><var>161.29</var>    (B) "property taxes" excludes the state general tax;<br/>
<a id="pl.161.30"></a><var>161.30</var>    (C) a "nonprofit community service oriented organization" means any corporation, <br/>
<a id="pl.161.31"></a><var>161.31</var>society, association, foundation, or institution organized and operated exclusively for <br/>
<a id="pl.161.32"></a><var>161.32</var>charitable, religious, fraternal, civic, or educational purposes, and which is exempt from <br/>
<a id="pl.161.33"></a><var>161.33</var>federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal <br/>
<a id="pl.161.34"></a><var>161.34</var>Revenue Code; and<br/>
<a id="pl.161.35"></a><var>161.35</var>    (D) "revenue-producing activities" shall include but not be limited to property or that <br/>
<a id="pl.161.36"></a><var>161.36</var>portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt <br/>
<a id="pl.162.1"></a><var>162.1</var>liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling <br/>
<a id="pl.162.2"></a><var>162.2</var>alley, a retail store, gambling conducted by organizations licensed under chapter 349, an <br/>
<a id="pl.162.3"></a><var>162.3</var>insurance business, or office or other space leased or rented to a lessee who conducts a <br/>
<a id="pl.162.4"></a><var>162.4</var>for-profit enterprise on the premises.<br/>
<a id="pl.162.5"></a><var>162.5</var>    Any portion of the property not qualifying under either item (i) or (ii) is class 3a. <br/>
<a id="pl.162.6"></a><var>162.6</var>The use of the property for social events open exclusively to members and their guests <br/>
<a id="pl.162.7"></a><var>162.7</var>for periods of less than 24 hours, when an admission is not charged nor any revenues are <br/>
<a id="pl.162.8"></a><var>162.8</var>received by the organization shall not be considered a revenue-producing activity.<br/>
<a id="pl.162.9"></a><var>162.9</var>    The organization shall maintain records of its charitable contributions and donations <br/>
<a id="pl.162.10"></a><var>162.10</var>and of public meetings and events held on the property and make them available upon <br/>
<a id="pl.162.11"></a><var>162.11</var>request any time to the assessor to ensure eligibility. An organization meeting the <br/>
<a id="pl.162.12"></a><var>162.12</var>requirement under item (ii) must file an application by May 1 with the assessor for <br/>
<a id="pl.162.13"></a><var>162.13</var>eligibility for the current year's assessment. The commissioner shall prescribe a uniform <br/>
<a id="pl.162.14"></a><var>162.14</var>application form and instructions;<br/>
<a id="pl.162.15"></a><var>162.15</var>    (4) postsecondary student housing of not more than one acre of land that is owned by <br/>
<a id="pl.162.16"></a><var>162.16</var>a nonprofit corporation organized under chapter 317A and is used exclusively by a student <br/>
<a id="pl.162.17"></a><var>162.17</var>cooperative, sorority, or fraternity for on-campus housing or housing located within two <br/>
<a id="pl.162.18"></a><var>162.18</var>miles of the border of a college campus;<br/>
<a id="pl.162.19"></a><var>162.19</var>    (5)(i) manufactured home parks as defined in section 
         <statute_ref>327.14, subdivision 3</statute_ref>, <br/>
<a id="pl.162.20"></a><var>162.20</var>excluding manufactured home parks described in section 
         <statute_ref>273.124, subdivision 3a</statute_ref>, and (ii) <br/>
<a id="pl.162.21"></a><var>162.21</var>manufactured home parks as defined in section 
         <statute_ref>327.14, subdivision 3</statute_ref>, that are described in <br/>
<a id="pl.162.22"></a><var>162.22</var>section 
         <statute_ref>273.124, subdivision 3a</statute_ref>;<br/>
<a id="pl.162.23"></a><var>162.23</var>    (6) real property that is actively and exclusively devoted to indoor fitness, health, <br/>
<a id="pl.162.24"></a><var>162.24</var>social, recreational, and related uses, is owned and operated by a not-for-profit corporation, <br/>
<a id="pl.162.25"></a><var>162.25</var>and is located within the metropolitan area as defined in section 
         <statute_ref>473.121, subdivision 2</statute_ref>;<br/>
<a id="pl.162.26"></a><var>162.26</var>    (7) a leased or privately owned noncommercial aircraft storage hangar not exempt <br/>
<a id="pl.162.27"></a><var>162.27</var>under section 
         <statute_ref>272.01, subdivision 2</statute_ref>, and the land on which it is located, provided that:<br/>
<a id="pl.162.28"></a><var>162.28</var>    (i) the land is on an airport owned or operated by a city, town, county, Metropolitan <br/>
<a id="pl.162.29"></a><var>162.29</var>Airports Commission, or group thereof; and<br/>
<a id="pl.162.30"></a><var>162.30</var>    (ii) the land lease, or any ordinance or signed agreement restricting the use of the <br/>
<a id="pl.162.31"></a><var>162.31</var>leased premise, prohibits commercial activity performed at the hangar.<br/>
<a id="pl.162.32"></a><var>162.32</var>    If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must <br/>
<a id="pl.162.33"></a><var>162.33</var>be filed by the new owner with the assessor of the county where the property is located <br/>
<a id="pl.162.34"></a><var>162.34</var>within 60 days of the sale;<br/>
<a id="pl.162.35"></a><var>162.35</var>    (8) a privately owned noncommercial aircraft storage hangar not exempt under <br/>
<a id="pl.162.36"></a><var>162.36</var>section 
         <statute_ref>272.01, subdivision 2</statute_ref>, and the land on which it is located, provided that:<br/>
<a id="pl.163.1"></a><var>163.1</var>    (i) the land abuts a public airport; and<br/>
<a id="pl.163.2"></a><var>163.2</var>    (ii) the owner of the aircraft storage hangar provides the assessor with a signed <br/>
<a id="pl.163.3"></a><var>163.3</var>agreement restricting the use of the premises, prohibiting commercial use or activity <br/>
<a id="pl.163.4"></a><var>163.4</var>performed at the hangar; and<br/>
<a id="pl.163.5"></a><var>163.5</var>    (9) residential real estate, a portion of which is used by the owner for homestead <br/>
<a id="pl.163.6"></a><var>163.6</var>purposes, and that is also a place of lodging, if all of the following criteria are met:<br/>
<a id="pl.163.7"></a><var>163.7</var>    (i) rooms are provided for rent to transient guests that generally stay for periods <br/>
<a id="pl.163.8"></a><var>163.8</var>of 14 or fewer days;<br/>
<a id="pl.163.9"></a><var>163.9</var>    (ii) meals are provided to persons who rent rooms, the cost of which is incorporated <br/>
<a id="pl.163.10"></a><var>163.10</var>in the basic room rate;<br/>
<a id="pl.163.11"></a><var>163.11</var>    (iii) meals are not provided to the general public except for special events on fewer <br/>
<a id="pl.163.12"></a><var>163.12</var>than seven days in the calendar year preceding the year of the assessment; and<br/>
<a id="pl.163.13"></a><var>163.13</var>    (iv) the owner is the operator of the property.<br/>
<a id="pl.163.14"></a><var>163.14</var>    The market value subject to the 4c classification under this clause is limited to <br/>
<a id="pl.163.15"></a><var>163.15</var>five rental units. Any rental units on the property in excess of five, must be valued and <br/>
<a id="pl.163.16"></a><var>163.16</var>assessed as class 3a. The portion of the property used for purposes of a homestead by the <br/>
<a id="pl.163.17"></a><var>163.17</var>owner must be classified as class 1a property under subdivision 22;<br/>
<a id="pl.163.18"></a><var>163.18</var>    (10) real property up to a maximum of three acres and operated as a restaurant <br/>
<a id="pl.163.19"></a><var>163.19</var>as defined under section 
         <statute_ref>157.15, subdivision 12</statute_ref>, provided it: (A) is located on a lake <br/>
<a id="pl.163.20"></a><var>163.20</var>as defined under section 
         <statute_ref>103G.005, subdivision 15</statute_ref>, paragraph (a), clause (3); and (B) <br/>
<a id="pl.163.21"></a><var>163.21</var>is either devoted to commercial purposes for not more than 250 consecutive days, or <br/>
<a id="pl.163.22"></a><var>163.22</var>receives at least 60 percent of its annual gross receipts from business conducted during <br/>
<a id="pl.163.23"></a><var>163.23</var>four consecutive months. Gross receipts from the sale of alcoholic beverages must be <br/>
<a id="pl.163.24"></a><var>163.24</var>included in determining the property's qualification under subitem (B). The property's <br/>
<a id="pl.163.25"></a><var>163.25</var>primary business must be as a restaurant and not as a bar. Gross receipts from gift shop <br/>
<a id="pl.163.26"></a><var>163.26</var>sales located on the premises must be excluded. Owners of real property desiring 4c <br/>
<a id="pl.163.27"></a><var>163.27</var>classification under this clause must submit an annual declaration to the assessor by <br/>
<a id="pl.163.28"></a><var>163.28</var>February 1 of the current assessment year, based on the property's relevant information for <br/>
<a id="pl.163.29"></a><var>163.29</var>the preceding assessment year;<br/>
<a id="pl.163.30"></a><var>163.30</var>(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used <br/>
<a id="pl.163.31"></a><var>163.31</var>as a marina, as defined in section 
         <statute_ref>86A.20, subdivision 5</statute_ref>, which is made accessible to <br/>
<a id="pl.163.32"></a><var>163.32</var>the public and devoted to recreational use for marina services. The marina owner must <br/>
<a id="pl.163.33"></a><var>163.33</var>annually provide evidence to the assessor that it provides services, including lake or river <br/>
<a id="pl.163.34"></a><var>163.34</var>access to the public by means of an access ramp or other facility that is either located on <br/>
<a id="pl.163.35"></a><var>163.35</var>the property of the marina or at a publicly owned site that abuts the property of the marina. <br/>
<a id="pl.163.36"></a><var>163.36</var>No more than 800 feet of lakeshore may be included in this classification. Buildings used <br/>
<a id="pl.164.1"></a><var>164.1</var>in conjunction with a marina for marina services, including but not limited to buildings <br/>
<a id="pl.164.2"></a><var>164.2</var>used to provide food and beverage services, fuel, boat repairs, or the sale of bait or fishing <br/>
<a id="pl.164.3"></a><var>164.3</var>tackle, are classified as class 3a property; and<br/>
<a id="pl.164.4"></a><var>164.4</var>(12) real and personal property devoted to noncommercial temporary and seasonal <br/>
<a id="pl.164.5"></a><var>164.5</var>residential occupancy for recreation purposes.<br/>
<a id="pl.164.6"></a><var>164.6</var>    Class 4c property has a class classification rate of 1.5 percent of market value, except <br/>
<a id="pl.164.7"></a><var>164.7</var>that (i) each parcel of noncommercial seasonal residential recreational property under <br/>
<a id="pl.164.8"></a><var>164.8</var>clause (12) has the same class rates as class 4bb property a classification rate of one percent <br/>
<a id="pl.164.9"></a><var>164.9</var>on the first $500,000 of market value and a classification rate of 1.25 percent on the market <br/>
<a id="pl.164.10"></a><var>164.10</var>value that exceeds $500,000, (ii) manufactured home parks assessed under clause (5), item <br/>
<a id="pl.164.11"></a><var>164.11</var>(i), have the same class rate as class 4b property a classification rate of 1.25 percent, and <br/>
<a id="pl.164.12"></a><var>164.12</var>the market value of manufactured home parks assessed under clause (5), item (ii), has the <br/>
<a id="pl.164.13"></a><var>164.13</var>same class rate as class 4d property have a classification rate of 0.75 percent if more than 50 <br/>
<a id="pl.164.14"></a><var>164.14</var>percent of the lots in the park are occupied by shareholders in the cooperative corporation <br/>
<a id="pl.164.15"></a><var>164.15</var>or association and a class classification rate of one percent if 50 percent or less of the lots <br/>
<a id="pl.164.16"></a><var>164.16</var>are so occupied, (iii) commercial-use seasonal residential recreational property and marina <br/>
<a id="pl.164.17"></a><var>164.17</var>recreational land as described in clause (11), has a class classification rate of one percent <br/>
<a id="pl.164.18"></a><var>164.18</var>for the first $500,000 of market value, and 1.25 percent for the remaining market value, (iv) <br/>
<a id="pl.164.19"></a><var>164.19</var>the market value of property described in clause (4) has a class classification rate of one <br/>
<a id="pl.164.20"></a><var>164.20</var>percent, (v) the market value of property described in clauses (2), (6), and (10) has a class<br/>
<a id="pl.164.21"></a><var>164.21</var> classification rate of 1.25 percent, and (vi) that portion of the market value of property in <br/>
<a id="pl.164.22"></a><var>164.22</var>clause (9) qualifying for class 4c property has a class classification rate of 1.25 percent.<br/>
<a id="pl.164.23"></a><var>164.23</var>    (e) Class 4d property is qualifying low-income rental housing certified to the assessor <br/>
<a id="pl.164.24"></a><var>164.24</var>by the Housing Finance Agency under section 
         <statute_ref>273.128, subdivision 3</statute_ref>. If only a portion <br/>
<a id="pl.164.25"></a><var>164.25</var>of the units in the building qualify as low-income rental housing units as certified under <br/>
<a id="pl.164.26"></a><var>164.26</var>section 
         <statute_ref>273.128, subdivision 3</statute_ref>, only the proportion of qualifying units to the total number <br/>
<a id="pl.164.27"></a><var>164.27</var>of units in the building qualify for class 4d. The remaining portion of the building shall be <br/>
<a id="pl.164.28"></a><var>164.28</var>classified by the assessor based upon its use. Class 4d also includes the same proportion of <br/>
<a id="pl.164.29"></a><var>164.29</var>land as the qualifying low-income rental housing units are to the total units in the building. <br/>
<a id="pl.164.30"></a><var>164.30</var>For all properties qualifying as class 4d, the market value determined by the assessor must <br/>
<a id="pl.164.31"></a><var>164.31</var>be based on the normal approach to value using normal unrestricted rents.<br/>
<a id="pl.164.32"></a><var>164.32</var>    (f) The first tier of market value of class 4d property has a class classification rate <br/>
<a id="pl.164.33"></a><var>164.33</var>of 0.75 percent. The remaining value of class 4d property has a class classification<br/>
<a id="pl.164.34"></a><var>164.34</var> rate of 0.25 percent. For the purposes of this paragraph, the "first tier of market value <br/>
<a id="pl.164.35"></a><var>164.35</var>of class 4d property" means the market value of each housing unit up to the first tier <br/>
<a id="pl.164.36"></a><var>164.36</var>limit. For the purposes of this paragraph, all class 4d property value must be assigned <br/>
<a id="pl.165.1"></a><var>165.1</var>to individual housing units. The first tier limit is $100,000 for assessment year 2014. <br/>
<a id="pl.165.2"></a><var>165.2</var>For subsequent years, the limit is adjusted each year by the average statewide change in <br/>
<a id="pl.165.3"></a><var>165.3</var>estimated market value of property classified as class 4a and 4d under this section for the <br/>
<a id="pl.165.4"></a><var>165.4</var>previous assessment year, excluding valuation change due to new construction, rounded to <br/>
<a id="pl.165.5"></a><var>165.5</var>the nearest $1,000, provided, however, that the limit may never be less than $100,000. <br/>
<a id="pl.165.6"></a><var>165.6</var>Beginning with assessment year 2015, the commissioner of revenue must certify the limit <br/>
<a id="pl.165.7"></a><var>165.7</var>for each assessment year by November 1 of the previous year.<br/>
<a id="pl.165.8"></a><var>165.8</var><b>EFFECTIVE DATE.</b>This section is effective beginning with assessment year 2014.<br/>
<br/>
<a id="bill.8.6.0"></a><a id="pl.165.9"></a><var>165.9</var>    Sec. 6. Minnesota Statutes 2013 Supplement, section 273.1325, subdivision 1, is <br/>
<a id="pl.165.10"></a><var>165.10</var>amended to read:<br/>
<a id="pl.165.11"></a><var>165.11</var>    Subdivision 1. <b>Computation.</b> The Department of Revenue must annually conduct <br/>
<a id="pl.165.12"></a><var>165.12</var>an assessment/sales ratio study of the taxable property in each county, city, town, and <br/>
<a id="pl.165.13"></a><var>165.13</var>school district in accordance with the procedures in subdivisions 2 and 3. Based upon the <br/>
<a id="pl.165.14"></a><var>165.14</var>results of this assessment/sales ratio study, the Department of Revenue must determine <br/>
<a id="pl.165.15"></a><var>165.15</var>an equalized net tax capacity for the various classes of taxable property in each taxing <br/>
<a id="pl.165.16"></a><var>165.16</var>district, the aggregate of which is designated as the adjusted net tax capacity. The adjusted <br/>
<a id="pl.165.17"></a><var>165.17</var>net tax capacity must be reduced by the captured tax capacity of tax increment districts <br/>
<a id="pl.165.18"></a><var>165.18</var>under section 
         <statute_ref>469.177, subdivision 2</statute_ref>, fiscal disparities contribution tax capacities under <br/>
<a id="pl.165.19"></a><var>165.19</var>sections 
         <statute_ref>276A.06</statute_ref> and 
         <statute_ref>473F.08</statute_ref>, and the tax capacity of transmission lines required to be <br/>
<a id="pl.165.20"></a><var>165.20</var>subtracted from the local tax base under section 
         <statute_ref>273.425</statute_ref>; and increased by fiscal disparities <br/>
<a id="pl.165.21"></a><var>165.21</var>distribution tax capacities under sections 
         <statute_ref>276A.06</statute_ref> and 
         <statute_ref>473F.08</statute_ref>. The adjusted net tax <br/>
<a id="pl.165.22"></a><var>165.22</var>capacities shall be determined using the net tax capacity percentages in effect for the <br/>
<a id="pl.165.23"></a><var>165.23</var>assessment year following the assessment year of the study. The Department of Revenue <br/>
<a id="pl.165.24"></a><var>165.24</var>must make whatever estimates are necessary to account for changes in the classification <br/>
<a id="pl.165.25"></a><var>165.25</var>system. The Department of Revenue may incur the expense necessary to make the <br/>
<a id="pl.165.26"></a><var>165.26</var>determinations. The commissioner of revenue may reimburse any county or governmental <br/>
<a id="pl.165.27"></a><var>165.27</var>official for requested services performed in ascertaining the adjusted net tax capacity. On <br/>
<a id="pl.165.28"></a><var>165.28</var>or before March 15 annually, the Department of Revenue shall file with the chair of the <br/>
<a id="pl.165.29"></a><var>165.29</var>Tax Committee of the house of representatives and the chair of the Committee on Taxes <br/>
<a id="pl.165.30"></a><var>165.30</var>and Tax laws of the senate a report of adjusted net tax capacities for school districts. <br/>
<a id="pl.165.31"></a><var>165.31</var>On or before June 15 30 annually, the Department of Revenue shall file its final report <br/>
<a id="pl.165.32"></a><var>165.32</var>on the adjusted net tax capacities for school districts established by the previous year's <br/>
<a id="pl.165.33"></a><var>165.33</var>assessments and the current year's net tax capacity percentages with the commissioner of <br/>
<a id="pl.165.34"></a><var>165.34</var>education and each county auditor for those school districts for which the auditor has the <br/>
<a id="pl.165.35"></a><var>165.35</var>responsibility for determination of local tax rates. A copy of the report so filed shall be <br/>
<a id="pl.166.1"></a><var>166.1</var>mailed to the clerk of each school district involved and to the county assessor or supervisor <br/>
<a id="pl.166.2"></a><var>166.2</var>of assessments of the county or counties in which each school district is located.<br/>
<a id="pl.166.3"></a><var>166.3</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2014.<br/>
<br/>
<a id="bill.8.7.0"></a><a id="pl.166.4"></a><var>166.4</var>    Sec. 7. Minnesota Statutes 2012, section 273.33, subdivision 2, is amended to read:<br/>
<a id="pl.166.5"></a><var>166.5</var>    Subd. 2. <b>Listing and assessment by commissioner.</b> The personal property, <br/>
<a id="pl.166.6"></a><var>166.6</var>consisting of the pipeline system of mains, pipes, and equipment attached thereto, of <br/>
<a id="pl.166.7"></a><var>166.7</var>pipeline companies and others engaged in the operations or business of transporting natural <br/>
<a id="pl.166.8"></a><var>166.8</var>gas, gasoline, crude oil, or other petroleum products by pipelines, shall be listed with and <br/>
<a id="pl.166.9"></a><var>166.9</var>assessed by the commissioner of revenue and the values provided to the city or county <br/>
<a id="pl.166.10"></a><var>166.10</var>assessor by order. This subdivision shall not apply to the assessment of the products <br/>
<a id="pl.166.11"></a><var>166.11</var>transported through the pipelines nor to the lines of local commercial gas companies <br/>
<a id="pl.166.12"></a><var>166.12</var>engaged primarily in the business of distributing gas to consumers at retail nor to pipelines <br/>
<a id="pl.166.13"></a><var>166.13</var>used by the owner thereof to supply natural gas or other petroleum products exclusively <br/>
<a id="pl.166.14"></a><var>166.14</var>for such owner's own consumption and not for resale to others. If more than 85 percent <br/>
<a id="pl.166.15"></a><var>166.15</var>of the natural gas or other petroleum products actually transported over the pipeline is <br/>
<a id="pl.166.16"></a><var>166.16</var>used for the owner's own consumption and not for resale to others, then this subdivision <br/>
<a id="pl.166.17"></a><var>166.17</var>shall not apply; provided, however, that in that event, the pipeline shall be assessed in <br/>
<a id="pl.166.18"></a><var>166.18</var>proportion to the percentage of gas actually transported over such pipeline that is not used <br/>
<a id="pl.166.19"></a><var>166.19</var>for the owner's own consumption. On or before August 1, the commissioner shall certify <br/>
<a id="pl.166.20"></a><var>166.20</var>to the auditor of each county, the amount of such personal property assessment against <br/>
<a id="pl.166.21"></a><var>166.21</var>each company in each district in which such property is located. If the commissioner <br/>
<a id="pl.166.22"></a><var>166.22</var>determines that the amount of personal property assessment certified on or before August <br/>
<a id="pl.166.23"></a><var>166.23</var>1 is in error, the commissioner may issue a corrected certification on or before October 1.<br/>
<a id="pl.166.24"></a><var>166.24</var> The commissioner may correct errors that are merely clerical in nature until December 31.<br/>
<a id="pl.166.25"></a><var>166.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.8.8.0"></a><a id="pl.166.26"></a><var>166.26</var>    Sec. 8. Minnesota Statutes 2012, section 273.37, subdivision 2, is amended to read:<br/>
<a id="pl.166.27"></a><var>166.27</var>    Subd. 2. <b>Listing and assessment by commissioner.</b> Transmission lines of less <br/>
<a id="pl.166.28"></a><var>166.28</var>than 69 kv, transmission lines of 69 kv and above located in an unorganized township, <br/>
<a id="pl.166.29"></a><var>166.29</var>and distribution lines, and equipment attached thereto, having a fixed situs outside the <br/>
<a id="pl.166.30"></a><var>166.30</var>corporate limits of cities except distribution lines taxed as provided in sections 
         <statute_ref>273.40 <br/>
</statute_ref><a id="pl.166.31"></a><var>166.31</var>and 
         <statute_ref>273.41</statute_ref>, shall be listed with and assessed by the commissioner of revenue in the <br/>
<a id="pl.166.32"></a><var>166.32</var>county where situated and the values provided to the city or county assessor by order. <br/>
<a id="pl.166.33"></a><var>166.33</var>The commissioner shall assess such property at the percentage of market value fixed by <br/>
<a id="pl.167.1"></a><var>167.1</var>law; and, on or before August 1, shall certify to the auditor of each county in which <br/>
<a id="pl.167.2"></a><var>167.2</var>such property is located the amount of the assessment made against each company and <br/>
<a id="pl.167.3"></a><var>167.3</var>person owning such property. If the commissioner determines that the amount of the <br/>
<a id="pl.167.4"></a><var>167.4</var>assessment certified on or before August 1 is in error, the commissioner may issue a <br/>
<a id="pl.167.5"></a><var>167.5</var>corrected certification on or before October 1. The commissioner may correct errors that <br/>
<a id="pl.167.6"></a><var>167.6</var>are merely clerical in nature until December 31.<br/>
<a id="pl.167.7"></a><var>167.7</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.8.9.0"></a><a id="pl.167.8"></a><var>167.8</var>    Sec. 9. Minnesota Statutes 2012, section 273.3711, is amended to read:<br/>
<a id="pl.167.9"></a><var>167.9</var><b>273.3711 RECOMMENDED AND ORDERED VALUES.</b><br/>
<a id="pl.167.10"></a><var>167.10</var>    For purposes of sections 
         <statute_ref>273.33</statute_ref>, 
         <statute_ref>273.35</statute_ref>, 
         <statute_ref>273.36</statute_ref>, 
         <statute_ref>273.37</statute_ref>, 
         <statute_ref>273.371</statute_ref>, and 
         <statute_ref>273.372</statute_ref>, <br/>
<a id="pl.167.11"></a><var>167.11</var>all values not required to be listed and assessed by the commissioner of revenue are <br/>
<a id="pl.167.12"></a><var>167.12</var>recommended values. If the commissioner provides recommended values, the values must <br/>
<a id="pl.167.13"></a><var>167.13</var>be certified to the auditor of each county in which the property is located on or before <br/>
<a id="pl.167.14"></a><var>167.14</var>August 1. If the commissioner determines that the certified recommended value is in <br/>
<a id="pl.167.15"></a><var>167.15</var>error the commissioner may issue a corrected certification on or before October 1. The <br/>
<a id="pl.167.16"></a><var>167.16</var>commissioner may correct errors that are merely clerical in nature until December 31.<br/>
<a id="pl.167.17"></a><var>167.17</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.8.10.0"></a><a id="pl.167.18"></a><var>167.18</var>    Sec. 10. Minnesota Statutes 2012, section 274.01, subdivision 1, is amended to read:<br/>
<a id="pl.167.19"></a><var>167.19</var>    Subdivision 1. <b>Ordinary board; meetings, deadlines, grievances.</b> (a) The town <br/>
<a id="pl.167.20"></a><var>167.20</var>board of a town, or the council or other governing body of a city, is the board of appeal <br/>
<a id="pl.167.21"></a><var>167.21</var>and equalization except (1) in cities whose charters provide for a board of equalization or <br/>
<a id="pl.167.22"></a><var>167.22</var>(2) in any city or town that has transferred its local board of review power and duties to <br/>
<a id="pl.167.23"></a><var>167.23</var>the county board as provided in subdivision 3. The county assessor shall fix a day and <br/>
<a id="pl.167.24"></a><var>167.24</var>time when the board or the board of equalization shall meet in the assessment districts <br/>
<a id="pl.167.25"></a><var>167.25</var>of the county. Notwithstanding any law or city charter to the contrary, a city board of <br/>
<a id="pl.167.26"></a><var>167.26</var>equalization shall be referred to as a board of appeal and equalization. On or before <br/>
<a id="pl.167.27"></a><var>167.27</var>February 15 of each year the assessor shall give written notice of the time to the city or <br/>
<a id="pl.167.28"></a><var>167.28</var>town clerk. Notwithstanding the provisions of any charter to the contrary, the meetings <br/>
<a id="pl.167.29"></a><var>167.29</var>must be held between April 1 and May 31 each year. The clerk shall give published and <br/>
<a id="pl.167.30"></a><var>167.30</var>posted notice of the meeting at least ten days before the date of the meeting.<br/>
<a id="pl.167.31"></a><var>167.31</var>    The board shall meet either at a central location within the county or at the office of <br/>
<a id="pl.167.32"></a><var>167.32</var>the clerk to review the assessment and classification of property in the town or city. No <br/>
<a id="pl.167.33"></a><var>167.33</var>changes in valuation or classification which are intended to correct errors in judgment by <br/>
<a id="pl.168.1"></a><var>168.1</var>the county assessor may be made by the county assessor after the board has adjourned <br/>
<a id="pl.168.2"></a><var>168.2</var>in those cities or towns that hold a local board of review; however, corrections of errors <br/>
<a id="pl.168.3"></a><var>168.3</var>that are merely clerical in nature or changes that extend homestead treatment to property <br/>
<a id="pl.168.4"></a><var>168.4</var>are permitted after adjournment until the tax extension date for that assessment year. The <br/>
<a id="pl.168.5"></a><var>168.5</var>changes must be fully documented and maintained in the assessor's office and must be <br/>
<a id="pl.168.6"></a><var>168.6</var>available for review by any person. A copy of the changes made during this period in <br/>
<a id="pl.168.7"></a><var>168.7</var>those cities or towns that hold a local board of review must be sent to the county board no <br/>
<a id="pl.168.8"></a><var>168.8</var>later than December 31 of the assessment year.<br/>
<a id="pl.168.9"></a><var>168.9</var>    (b) The board shall determine whether the taxable property in the town or city has <br/>
<a id="pl.168.10"></a><var>168.10</var>been properly placed on the list and properly valued by the assessor. If real or personal <br/>
<a id="pl.168.11"></a><var>168.11</var>property has been omitted, the board shall place it on the list with its market value, and <br/>
<a id="pl.168.12"></a><var>168.12</var>correct the assessment so that each tract or lot of real property, and each article, parcel, <br/>
<a id="pl.168.13"></a><var>168.13</var>or class of personal property, is entered on the assessment list at its market value. No <br/>
<a id="pl.168.14"></a><var>168.14</var>assessment of the property of any person may be raised unless the person has been <br/>
<a id="pl.168.15"></a><var>168.15</var>duly notified of the intent of the board to do so. On application of any person feeling <br/>
<a id="pl.168.16"></a><var>168.16</var>aggrieved, the board shall review the assessment or classification, or both, and correct <br/>
<a id="pl.168.17"></a><var>168.17</var>it as appears just. The board may not make an individual market value adjustment or <br/>
<a id="pl.168.18"></a><var>168.18</var>classification change that would benefit the property if the owner or other person having <br/>
<a id="pl.168.19"></a><var>168.19</var>control over the property has refused the assessor access to inspect the property and the <br/>
<a id="pl.168.20"></a><var>168.20</var>interior of any buildings or structures as provided in section 
         <statute_ref>273.20</statute_ref>. A board member <br/>
<a id="pl.168.21"></a><var>168.21</var>shall not participate in any actions of the board which result in market value adjustments <br/>
<a id="pl.168.22"></a><var>168.22</var>or classification changes to property owned by the board member, the spouse, parent, <br/>
<a id="pl.168.23"></a><var>168.23</var>stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle, aunt, nephew, <br/>
<a id="pl.168.24"></a><var>168.24</var>or niece of a board member, or property in which a board member has a financial interest. <br/>
<a id="pl.168.25"></a><var>168.25</var>The relationship may be by blood or marriage.<br/>
<a id="pl.168.26"></a><var>168.26</var>    (c) A local board may reduce assessments upon petition of the taxpayer but the total <br/>
<a id="pl.168.27"></a><var>168.27</var>reductions must not reduce the aggregate assessment made by the county assessor by more <br/>
<a id="pl.168.28"></a><var>168.28</var>than one percent. If the total reductions would lower the aggregate assessments made by <br/>
<a id="pl.168.29"></a><var>168.29</var>the county assessor by more than one percent, none of the adjustments may be made. The <br/>
<a id="pl.168.30"></a><var>168.30</var>assessor shall correct any clerical errors or double assessments discovered by the board <br/>
<a id="pl.168.31"></a><var>168.31</var>without regard to the one percent limitation.<br/>
<a id="pl.168.32"></a><var>168.32</var>    (d) A local board does not have authority to grant an exemption or to order property <br/>
<a id="pl.168.33"></a><var>168.33</var>removed from the tax rolls.<br/>
<a id="pl.168.34"></a><var>168.34</var>    (e) A majority of the members may act at the meeting, and adjourn from day to day <br/>
<a id="pl.168.35"></a><var>168.35</var>until they finish hearing the cases presented. The assessor shall attend, with the assessment <br/>
<a id="pl.168.36"></a><var>168.36</var>books and papers, and take part in the proceedings, but must not vote. The county assessor, <br/>
<a id="pl.169.1"></a><var>169.1</var>or an assistant delegated by the county assessor shall attend the meetings. The board shall <br/>
<a id="pl.169.2"></a><var>169.2</var>list separately, on a form appended to the assessment book, all omitted property added <br/>
<a id="pl.169.3"></a><var>169.3</var>to the list by the board and all items of property increased or decreased, with the market <br/>
<a id="pl.169.4"></a><var>169.4</var>value of each item of property, added or changed by the board, placed opposite the item. <br/>
<a id="pl.169.5"></a><var>169.5</var>The county assessor shall enter all changes made by the board in the assessment book.<br/>
<a id="pl.169.6"></a><var>169.6</var>    (f) Except as provided in subdivision 3, if a person fails to appear in person, by <br/>
<a id="pl.169.7"></a><var>169.7</var>counsel, or by written communication before the board after being duly notified of the <br/>
<a id="pl.169.8"></a><var>169.8</var>board's intent to raise the assessment of the property, or if a person feeling aggrieved by an <br/>
<a id="pl.169.9"></a><var>169.9</var>assessment or classification fails to apply for a review of the assessment or classification, <br/>
<a id="pl.169.10"></a><var>169.10</var>the person may not appear before the county board of appeal and equalization for a review <br/>
<a id="pl.169.11"></a><var>169.11</var>of the assessment or classification. This paragraph does not apply if an assessment was <br/>
<a id="pl.169.12"></a><var>169.12</var>made after the local board meeting, as provided in section 
         <statute_ref>273.01</statute_ref>, or if the person can <br/>
<a id="pl.169.13"></a><var>169.13</var>establish not having received notice of market value at least five days before the local <br/>
<a id="pl.169.14"></a><var>169.14</var>board meeting.<br/>
<a id="pl.169.15"></a><var>169.15</var>    (g) The local board must complete its work and adjourn within 20 days from the <br/>
<a id="pl.169.16"></a><var>169.16</var>time of convening stated in the notice of the clerk, unless a longer period is approved by <br/>
<a id="pl.169.17"></a><var>169.17</var>the commissioner of revenue. No action taken after that date is valid. All complaints <br/>
<a id="pl.169.18"></a><var>169.18</var>about an assessment or classification made after the meeting of the board must be heard <br/>
<a id="pl.169.19"></a><var>169.19</var>and determined by the county board of equalization. A nonresident may, at any time, <br/>
<a id="pl.169.20"></a><var>169.20</var>before the meeting of the board file written objections to an assessment or classification <br/>
<a id="pl.169.21"></a><var>169.21</var>with the county assessor. The objections must be presented to the board at its meeting by <br/>
<a id="pl.169.22"></a><var>169.22</var>the county assessor for its consideration.<br/>
<a id="pl.169.23"></a><var>169.23</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.8.11.0"></a><a id="pl.169.24"></a><var>169.24</var>    Sec. 11. Minnesota Statutes 2012, section 274.014, subdivision 3, is amended to read:<br/>
<a id="pl.169.25"></a><var>169.25</var>    Subd. 3. <b>Proof of compliance; transfer of duties.</b> (a) Any city or town that <br/>
<a id="pl.169.26"></a><var>169.26</var>conducts local boards of appeal and equalization meetings must provide proof to the <br/>
<a id="pl.169.27"></a><var>169.27</var>county assessor by December 1, 2006 February 15, 2015, and each year thereafter, that it <br/>
<a id="pl.169.28"></a><var>169.28</var>is in compliance with the requirements of subdivision 2. Beginning in 2006 2015, this <br/>
<a id="pl.169.29"></a><var>169.29</var>notice must also verify that there was a quorum of voting members at each meeting of the <br/>
<a id="pl.169.30"></a><var>169.30</var>board of appeal and equalization in the current year. A city or town that does not comply <br/>
<a id="pl.169.31"></a><var>169.31</var>with these requirements is deemed to have transferred its board of appeal and equalization <br/>
<a id="pl.169.32"></a><var>169.32</var>powers to the county beginning with the following year's assessment and continuing <br/>
<a id="pl.169.33"></a><var>169.33</var>unless the powers are reinstated under paragraph (c).<br/>
<a id="pl.169.34"></a><var>169.34</var>    (b) The county shall notify the taxpayers when the board of appeal and equalization <br/>
<a id="pl.169.35"></a><var>169.35</var>for a city or town has been transferred to the county under this subdivision and, prior to <br/>
<a id="pl.170.1"></a><var>170.1</var>the meeting time of the county board of equalization, the county shall make available to <br/>
<a id="pl.170.2"></a><var>170.2</var>those taxpayers a procedure for a review of the assessments, including, but not limited to, <br/>
<a id="pl.170.3"></a><var>170.3</var>open book meetings. This alternate review process shall take place in April and May.<br/>
<a id="pl.170.4"></a><var>170.4</var>    (c) A local board whose powers are transferred to the county under this subdivision <br/>
<a id="pl.170.5"></a><var>170.5</var>may be reinstated by resolution of the governing body of the city or town and upon proof <br/>
<a id="pl.170.6"></a><var>170.6</var>of compliance with the requirements of subdivision 2. The resolution and proofs must be <br/>
<a id="pl.170.7"></a><var>170.7</var>provided to the county assessor by December 1 February 15 in order to be effective for <br/>
<a id="pl.170.8"></a><var>170.8</var>the following year's assessment.<br/>
<a id="pl.170.9"></a><var>170.9</var>    (d) A local board whose powers are transferred to the county under this subdivision <br/>
<a id="pl.170.10"></a><var>170.10</var>may continue to employ a local assessor and is not deemed to have transferred its powers <br/>
<a id="pl.170.11"></a><var>170.11</var>to make assessments.<br/>
<a id="pl.170.12"></a><var>170.12</var><b>EFFECTIVE DATE.</b>This section is effective beginning with local boards of appeal <br/>
<a id="pl.170.13"></a><var>170.13</var>and equalization meetings held after December 31, 2014.<br/>
<br/>
<a id="bill.8.12.0"></a><a id="pl.170.14"></a><var>170.14</var>    Sec. 12. Minnesota Statutes 2013 Supplement, section 423A.02, subdivision 3, is <br/>
<a id="pl.170.15"></a><var>170.15</var>amended to read:<br/>
<a id="pl.170.16"></a><var>170.16</var>    Subd. 3. <b>Reallocation of amortization state aid.</b> (a) Seventy percent of the <br/>
<a id="pl.170.17"></a><var>170.17</var>difference between $5,720,000 and the current year amortization aid distributed under <br/>
<a id="pl.170.18"></a><var>170.18</var>subdivision 1 that is not distributed for any reason to a municipality must be distributed <br/>
<a id="pl.170.19"></a><var>170.19</var>by the commissioner of revenue according to this paragraph. The commissioner shall <br/>
<a id="pl.170.20"></a><var>170.20</var>distribute 50 percent of the amounts derived under this paragraph to the Teachers <br/>
<a id="pl.170.21"></a><var>170.21</var>Retirement Association, ten percent to the Duluth Teachers Retirement Fund Association, <br/>
<a id="pl.170.22"></a><var>170.22</var>and 40 percent to the St. Paul Teachers Retirement Fund Association to fund the unfunded <br/>
<a id="pl.170.23"></a><var>170.23</var>actuarial accrued liabilities of the respective funds. These payments must be made on July <br/>
<a id="pl.170.24"></a><var>170.24</var>15 each fiscal year. If the St. Paul Teachers Retirement Fund Association or the Duluth <br/>
<a id="pl.170.25"></a><var>170.25</var>Teachers Retirement Fund Association becomes fully funded, the association's eligibility <br/>
<a id="pl.170.26"></a><var>170.26</var>for its portion of this aid ceases. Amounts remaining in the undistributed balance account <br/>
<a id="pl.170.27"></a><var>170.27</var>at the end of the biennium if aid eligibility ceases cancel to the general fund.<br/>
<a id="pl.170.28"></a><var>170.28</var>    (b) In order to receive amortization aid under paragraph (a), before June 30 annually <br/>
<a id="pl.170.29"></a><var>170.29</var>Independent School District No. 625, St. Paul, must make an additional contribution of <br/>
<a id="pl.170.30"></a><var>170.30</var>$800,000 each year to the St. Paul Teachers Retirement Fund Association.<br/>
<a id="pl.170.31"></a><var>170.31</var>    (c) Thirty percent of the difference between $5,720,000 and the current year <br/>
<a id="pl.170.32"></a><var>170.32</var>amortization aid under subdivision 1a 1 that is not distributed for any reason to a <br/>
<a id="pl.170.33"></a><var>170.33</var>municipality must be distributed under section 
         <statute_ref>69.021, subdivision 7</statute_ref>, paragraph (d), as <br/>
<a id="pl.170.34"></a><var>170.34</var>additional funding to support a minimum fire state aid amount for volunteer firefighter <br/>
<a id="pl.170.35"></a><var>170.35</var>relief associations.<br/>
<a id="pl.171.1"></a><var>171.1</var><b>EFFECTIVE DATE.</b>This section is effective retroactively from June 1, 2013.<br/>
<br/>
<a id="bill.8.13.0"></a><a id="pl.171.2"></a><var>171.2</var>    Sec. 13. Minnesota Statutes 2013 Supplement, section 477A.14, subdivision 1, is <br/>
<a id="pl.171.3"></a><var>171.3</var>amended to read:<br/>
<a id="pl.171.4"></a><var>171.4</var>    Subdivision 1. <b>General distribution.</b> Except as provided in subdivisions 2 and 3, <br/>
<a id="pl.171.5"></a><var>171.5</var>40 percent of the total payment to the county shall be deposited in the county general <br/>
<a id="pl.171.6"></a><var>171.6</var>revenue fund to be used to provide property tax levy reduction. The remainder shall be <br/>
<a id="pl.171.7"></a><var>171.7</var>distributed by the county in the following priority:<br/>
<a id="pl.171.8"></a><var>171.8</var>(a) (1) 64.2 cents, for each acre of county-administered other natural resources land <br/>
<a id="pl.171.9"></a><var>171.9</var>shall be deposited in a resource development fund to be created within the county treasury <br/>
<a id="pl.171.10"></a><var>171.10</var>for use in resource development, forest management, game and fish habitat improvement, <br/>
<a id="pl.171.11"></a><var>171.11</var>and recreational development and maintenance of county-administered other natural <br/>
<a id="pl.171.12"></a><var>171.12</var>resources land. Any county receiving less than $5,000 annually for the resource <br/>
<a id="pl.171.13"></a><var>171.13</var>development fund may elect to deposit that amount in the county general revenue fund;<br/>
<a id="pl.171.14"></a><var>171.14</var>(b) from the funds remaining, (2) within 30 days of receipt of the payment to <br/>
<a id="pl.171.15"></a><var>171.15</var>the county, the county treasurer shall pay each organized township ten percent of the <br/>
<a id="pl.171.16"></a><var>171.16</var>amount received a township with land that qualifies for payment under section 
         <statute_ref>477A.12, <br/>
<a id="pl.171.17"></a><var>171.17</var>subdivision 1
         </statute_ref>, clauses (1), (2), and (5) to (7), ten percent of the payment the county <br/>
<a id="pl.171.18"></a><var>171.18</var>received for such land within that township. Payments for natural resources lands not <br/>
<a id="pl.171.19"></a><var>171.19</var>located in an organized township shall be deposited in the county general revenue fund. <br/>
<a id="pl.171.20"></a><var>171.20</var>Payments to counties and townships pursuant to this paragraph shall be used to provide <br/>
<a id="pl.171.21"></a><var>171.21</var>property tax levy reduction, except that of the payments for natural resources lands not <br/>
<a id="pl.171.22"></a><var>171.22</var>located in an organized township, the county may allocate the amount determined to be <br/>
<a id="pl.171.23"></a><var>171.23</var>necessary for maintenance of roads in unorganized townships. Provided that, if the total <br/>
<a id="pl.171.24"></a><var>171.24</var>payment to the county pursuant to section 
<statute_ref>477A.12</statute_ref> is not sufficient to fully fund the <br/>
<a id="pl.171.25"></a><var>171.25</var>distribution provided for in this clause, the amount available shall be distributed to each <br/>
<a id="pl.171.26"></a><var>171.26</var>township and the county general revenue fund on a pro rata basis; and<br/>
<a id="pl.171.27"></a><var>171.27</var>(c) (3) any remaining funds shall be deposited in the county general revenue fund. <br/>
<a id="pl.171.28"></a><var>171.28</var>Provided that, if the distribution to the county general revenue fund exceeds $35,000, the <br/>
<a id="pl.171.29"></a><var>171.29</var>excess shall be used to provide property tax levy reduction.<br/>
<a id="pl.171.30"></a><var>171.30</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2014.<br/>
<br/>
<a id="bill.8.14.0"></a><a id="pl.171.31"></a><var>171.31</var>    Sec. 14. <b>REVISOR'S INSTRUCTION.</b><br/>
<a id="pl.171.32"></a><var>171.32</var>The revisor of statutes shall change the terms "class rate" or "class rates" to <br/>
<a id="pl.171.33"></a><var>171.33</var>"classification rate" or "classification rates" or similar terms whenever they appear in <br/>
<a id="pl.171.34"></a><var>171.34</var>Minnesota Statutes when the terms are used to refer to the calculation of net tax capacity <br/>
<a id="pl.172.1"></a><var>172.1</var>in the property tax system. The revisor can make changes to sentence structure to preserve <br/>
<a id="pl.172.2"></a><var>172.2</var>the meaning of the text. The revisor shall make other changes in section and subdivision <br/>
<a id="pl.172.3"></a><var>172.3</var>headnotes and in other terminology as necessary as a result of the enactment of this <br/>
<a id="pl.172.4"></a><var>172.4</var>section. The Department of Revenue shall assist in making these corrections.<br/>
<br/>
<a id="bill.9.0.0"></a>

<a id="pl.172.7"></a><var>172.7</var><b>FRANCHISE; SALES AND USE</b><br/>

<a id="bill.9.1.0"></a><a id="pl.172.8"></a><var>172.8</var>    Section 1. Minnesota Statutes 2012, section 270C.34, subdivision 2, is amended to read:<br/>
<a id="pl.172.9"></a><var>172.9</var>    Subd. 2. <b>Procedure.</b> (a) A request for abatement of penalty under subdivision 1 or <br/>
<a id="pl.172.10"></a><var>172.10</var>section 
         <statute_ref>289A.60, subdivision 4</statute_ref>, or a request for abatement of interest or additional tax <br/>
<a id="pl.172.11"></a><var>172.11</var>charge, must be filed with the commissioner within 60 days of the date the notice was <br/>
<a id="pl.172.12"></a><var>172.12</var>mailed to the taxpayer's last known address, stating that a penalty has been imposed.<br/>
<a id="pl.172.13"></a><var>172.13</var>(b) If the commissioner issues an order denying a request for abatement of penalty, <br/>
<a id="pl.172.14"></a><var>172.14</var>interest, or additional tax charge, the taxpayer may file an administrative appeal as <br/>
<a id="pl.172.15"></a><var>172.15</var>provided in section 
         <statute_ref>270C.35</statute_ref> or appeal to Tax Court as provided in section 
         <statute_ref>271.06</statute_ref>.<br/>
<a id="pl.172.16"></a><var>172.16</var>(c) If the commissioner does not issue an order on the abatement request within <br/>
<a id="pl.172.17"></a><var>172.17</var>60 days from the date the request is received, the taxpayer may appeal to Tax Court as <br/>
<a id="pl.172.18"></a><var>172.18</var>provided in section 
         <statute_ref>271.06</statute_ref>.<br/>
<a id="pl.172.19"></a><var>172.19</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.9.2.0"></a><a id="pl.172.20"></a><var>172.20</var>    Sec. 2. Minnesota Statutes 2012, section 270C.56, subdivision 3, is amended to read:<br/>
<a id="pl.172.21"></a><var>172.21</var>    Subd. 3. <b>Procedure for assessment; claims for refunds.</b> (a) The commissioner <br/>
<a id="pl.172.22"></a><var>172.22</var>may assess liability for the taxes described in subdivision 1 against a person liable <br/>
<a id="pl.172.23"></a><var>172.23</var>under this section. The assessment may be based upon information available to the <br/>
<a id="pl.172.24"></a><var>172.24</var>commissioner. It must be made within the prescribed period of limitations for assessing <br/>
<a id="pl.172.25"></a><var>172.25</var>the underlying tax, or within one year after the date of an order assessing underlying <br/>
<a id="pl.172.26"></a><var>172.26</var>tax, or within one year after the date of a final administrative or judicial determination, <br/>
<a id="pl.172.27"></a><var>172.27</var>whichever period expires later. An order assessing personal liability under this section is <br/>
<a id="pl.172.28"></a><var>172.28</var>reviewable under section 
         <statute_ref>270C.35</statute_ref> and is appealable to Tax Court.<br/>
<a id="pl.172.29"></a><var>172.29</var>(b) If the time for appealing the order has expired and a payment is made by or <br/>
<a id="pl.172.30"></a><var>172.30</var>collected from the person assessed on the order in excess of the amount lawfully due <br/>
<a id="pl.172.31"></a><var>172.31</var>from that person of any portion of the liability shown on the order, a claim for refund <br/>
<a id="pl.172.32"></a><var>172.32</var>may be made by that person within 120 days after any payment of the liability if the <br/>
<a id="pl.172.33"></a><var>172.33</var>payment is within 3-1/2 years after the date the order was issued. Claims for refund under <br/>
<a id="pl.173.1"></a><var>173.1</var>this paragraph are limited to the amount paid during the 120-day period. Any amounts <br/>
<a id="pl.173.2"></a><var>173.2</var>collected under paragraph (c) after a claim for refund is filed in order to satisfy the unpaid <br/>
<a id="pl.173.3"></a><var>173.3</var>balance of the assessment that is the subject of the claim shall be returned if the claim is <br/>
<a id="pl.173.4"></a><var>173.4</var>allowed. There is no claim for refund available under this paragraph if the assessment has <br/>
<a id="pl.173.5"></a><var>173.5</var>previously been the subject of an administrative or Tax Court appeal, or a denied claim <br/>
<a id="pl.173.6"></a><var>173.6</var>for refund. The taxpayer may contest denial of the refund as provided in the procedures <br/>
<a id="pl.173.7"></a><var>173.7</var>governing claims for refunds under section 
         <statute_ref>289A.50, subdivision 7</statute_ref>.<br/>
<a id="pl.173.8"></a><var>173.8</var>(c) If a person has been assessed under this section for an amount for a given period <br/>
<a id="pl.173.9"></a><var>173.9</var>and the time for appeal has expired, regardless of whether an action contesting denial of a <br/>
<a id="pl.173.10"></a><var>173.10</var>claim for refund has been filed under paragraph (b), or there has been a final determination <br/>
<a id="pl.173.11"></a><var>173.11</var>that the person is liable, collection action is not stayed pursuant to section 
         <statute_ref>270C.33, <br/>
<a id="pl.173.12"></a><var>173.12</var>subdivision 5
         </statute_ref>, for that assessment or for subsequent assessments of additional amounts for <br/>
<a id="pl.173.13"></a><var>173.13</var>the same person for the same period and tax type.<br/>
<a id="pl.173.14"></a><var>173.14</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.9.3.0"></a><a id="pl.173.15"></a><var>173.15</var>    Sec. 3. Minnesota Statutes 2012, section 289A.18, subdivision 2, is amended to read:<br/>
<a id="pl.173.16"></a><var>173.16</var>    Subd. 2. <b>Withholding returns, entertainer withholding returns, returns for </b><br/>
<a id="pl.173.17"></a><var>173.17</var><b>withholding from payments to out-of-state contractors, and withholding returns </b><br/>
<a id="pl.173.18"></a><var>173.18</var><b>from partnerships and S corporations.</b> (a) Withholding returns for the first, second,<br/>
<a id="pl.173.19"></a><var>173.19</var> and third quarters are due on or before the last day of the month following the close of <br/>
<a id="pl.173.20"></a><var>173.20</var>the quarterly period. However, if the return shows timely deposits in full payment of <br/>
<a id="pl.173.21"></a><var>173.21</var>the taxes due for that period, the returns for the first, second, and third quarters may be <br/>
<a id="pl.173.22"></a><var>173.22</var>filed on or before the tenth day of the second calendar month following the period. The <br/>
<a id="pl.173.23"></a><var>173.23</var>return for the fourth quarter must be filed on or before the 28th day of the second calendar <br/>
<a id="pl.173.24"></a><var>173.24</var>month following the period. An employer, in preparing a quarterly return, may take credit <br/>
<a id="pl.173.25"></a><var>173.25</var>for deposits previously made for that quarter. Entertainer withholding tax returns are <br/>
<a id="pl.173.26"></a><var>173.26</var>due within 30 days after each performance. Returns for withholding from payments to <br/>
<a id="pl.173.27"></a><var>173.27</var>out-of-state contractors are due within 30 days after the payment to the contractor. Returns <br/>
<a id="pl.173.28"></a><var>173.28</var>for withholding by partnerships are due on or before the due date specified for filing <br/>
<a id="pl.173.29"></a><var>173.29</var>partnership returns. Returns for withholding by S corporations are due on or before the <br/>
<a id="pl.173.30"></a><var>173.30</var>due date specified for filing corporate franchise tax returns.<br/>
<a id="pl.173.31"></a><var>173.31</var>(b) A seasonal employer who provides notice in the form and manner prescribed <br/>
<a id="pl.173.32"></a><var>173.32</var>by the commissioner before the end of the calendar quarter is not required to file a <br/>
<a id="pl.173.33"></a><var>173.33</var>withholding tax return for periods of anticipated inactivity unless the employer pays wages <br/>
<a id="pl.173.34"></a><var>173.34</var>during the period from which tax is withheld. For purposes of this paragraph, a seasonal <br/>
<a id="pl.174.1"></a><var>174.1</var>employer is an employer that regularly, in the same one or more quarterly periods of each <br/>
<a id="pl.174.2"></a><var>174.2</var>calendar year, pays no wages to employees.<br/>
<a id="pl.174.3"></a><var>174.3</var><b>EFFECTIVE DATE.</b>(a) The amendments in paragraph (a) are effective for returns <br/>
<a id="pl.174.4"></a><var>174.4</var>due after January 1, 2016.<br/>
<a id="pl.174.5"></a><var>174.5</var>(b) The amendment adding paragraph (b) is effective for wages paid after December <br/>
<a id="pl.174.6"></a><var>174.6</var>31, 2015.<br/>
<br/>
<a id="bill.9.4.0"></a><a id="pl.174.7"></a><var>174.7</var>    Sec. 4. Minnesota Statutes 2012, section 296A.01, subdivision 16, is amended to read:<br/>
<a id="pl.174.8"></a><var>174.8</var>    Subd. 16. <b>Dyed fuel.</b> "Dyed fuel" means diesel motor fuel to which indelible dye <br/>
<a id="pl.174.9"></a><var>174.9</var>has been added, either before or upon withdrawal at a terminal or refinery rack, and which <br/>
<a id="pl.174.10"></a><var>174.10</var>may be sold for exempt purposes. The dye may be either dye required to be added per the <br/>
<a id="pl.174.11"></a><var>174.11</var>EPA or dye that meets other specifications required by the Internal Revenue Service or <br/>
<a id="pl.174.12"></a><var>174.12</var>the commissioner.<br/>
<a id="pl.174.13"></a><var>174.13</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.9.5.0"></a><a id="pl.174.14"></a><var>174.14</var>    Sec. 5. Minnesota Statutes 2013 Supplement, section 403.162, subdivision 5, is <br/>
<a id="pl.174.15"></a><var>174.15</var>amended to read:<br/>
<a id="pl.174.16"></a><var>174.16</var>    Subd. 5. <b>Fees deposited.</b> (a) The commissioner of revenue shall, based on <br/>
<a id="pl.174.17"></a><var>174.17</var>the relative proportion of the prepaid wireless E911 fee and the prepaid wireless <br/>
<a id="pl.174.18"></a><var>174.18</var>telecommunications access Minnesota fee imposed per retail transaction, divide the fees <br/>
<a id="pl.174.19"></a><var>174.19</var>collected in corresponding proportions. Within 30 days of receipt of the collected fees, <br/>
<a id="pl.174.20"></a><var>174.20</var>the commissioner shall:<br/>
<a id="pl.174.21"></a><var>174.21</var>(1) deposit the proportion of the collected fees attributable to the prepaid wireless <br/>
<a id="pl.174.22"></a><var>174.22</var>E911 fee in the 911 emergency telecommunications service account in the special revenue <br/>
<a id="pl.174.23"></a><var>174.23</var>fund; and<br/>
<a id="pl.174.24"></a><var>174.24</var>(2) deposit the proportion of collected fees attributable to the prepaid wireless <br/>
<a id="pl.174.25"></a><var>174.25</var>telecommunications access Minnesota fee in the telecommunications access fund <br/>
<a id="pl.174.26"></a><var>174.26</var>established in section 
         <statute_ref>237.52, subdivision 1</statute_ref>.<br/>
<a id="pl.174.27"></a><var>174.27</var>(b) The department commissioner of revenue may deduct and retain deposit in a <br/>
<a id="pl.174.28"></a><var>174.28</var>special revenue account an amount, not to exceed two percent of collected fees,. Money <br/>
<a id="pl.174.29"></a><var>174.29</var>in the account is annually appropriated to the commissioner of revenue to reimburse its <br/>
<a id="pl.174.30"></a><var>174.30</var>direct costs of administering the collection and remittance of prepaid wireless E911 fees <br/>
<a id="pl.174.31"></a><var>174.31</var>and prepaid wireless telecommunications access Minnesota fees.<br/>
<a id="pl.174.32"></a><var>174.32</var><b>EFFECTIVE DATE.</b>This section is effective retroactively from January 1, 2014.<br/>
<br/>
<a id="bill.9.6.0"></a><a id="pl.175.1"></a><var>175.1</var>    Sec. 6. Laws 2013, chapter 143, article 8, section 3, the effective date, is amended to <br/>
<a id="pl.175.2"></a><var>175.2</var>read:<br/>
<a id="pl.175.3"></a><var>175.3</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.175.4"></a><var>175.4</var>June 30, 2013, except for paragraph (p), which is effective the day following final <br/>
<a id="pl.175.5"></a><var>175.5</var>enactment.<br/>
<a id="pl.175.6"></a><var>175.6</var><b>EFFECTIVE DATE.</b>This section is effective retroactively from the day following <br/>
<a id="pl.175.7"></a><var>175.7</var>final enactment of Laws 2013, chapter 143, article 8, section 3.<br/>
<br/>
<a id="bill.9.7.0"></a><a id="pl.175.8"></a><var>175.8</var>    Sec. 7. <b> REPEALER.</b><br/>
<a id="pl.175.9"></a><var>175.9</var>Minnesota Rules, parts 8130.8900, subpart 3; and 8130.9500, subparts 1, 1a, 2, <br/>
<a id="pl.175.10"></a><var>175.10</var>3, 4, and 5, are repealed.<br/>
<a id="pl.175.11"></a><var>175.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>